EDF / 2019 Universal registration document

6. Financial statements

Notes to the consolidated financial statements

At 31 December 2019, EDF Energy’s EEGSG and BEGG pension schemes (see note 1.3.21.2.2) were overfunded to the extent of €1,246 million compared to €937 million at 31 December 2018. The surplus funding, which has increased due to the good performance by fund assets, is recognised in balance sheet assets as “non-current financial assets”.

EDF Energy also recorded a €224 million provision in respect of its EEPS pension scheme at 31 December 2019, compared to €146 million at 31 December 2018.

34.3.2

Post-employment benefit and other long-term employee benefit expenses

2019

2018

(in millions of euros)

Current service cost

(230)

(258)

Past service cost

- -

(15)

Actuarial gains and losses – other long-term benefits Net expenses recorded as operating expenses

-

(230)

(273)

Interest expense (discount effect)

(243)

(232)

Return on fund assets

263

248

Net interest expense included in financial result

20

16

EMPLOYEE BENEFIT EXPENSES RECORDED IN THE INCOME STATEMENT

(210)

(257)

Actuarial gains and losses – post-employment benefits

(873)

518

Actuarial gains and losses on fund assets

998 125

(463)

Actuarial gains and losses Translation adjustments

55 (6)

47

GAINS AND LOSSES ON EMPLOYEE BENEFITS RECORDED DIRECTLY IN EQUITY

172

49

34.3.3

Breakdown of obligations by type of beneficiary

31/12/2019

31/12/2018

(in millions of euros)

Current employees

5,202 4,488 9,690

4,948 3,300 8,248

Retirees

OBLIGATIONS

34.3.4

Fund assets

The investment strategy applied in these funds is a liability driven investment strategy. The allocation between growth and back-to-back is regularly reviewed by the trustees, at least after every actuarial valuation, to ensure that the funds’ overall investment strategy remains coherent in order to achieve the target coverage level required.

Pension obligations in the United Kingdom are partly covered by external funds with a present value of €10,712 million at 31 December 2019 (€9,039 million at 31 December 2018).

These assets break down as follows:

31/12/2019

31/12/2018

(in millions of euros)

BEGG pension fund EEGSG pension fund EEPS pension fund

8,144 1,493 1,075

6,963 1,267

809

FUND ASSETS

10,712

9,039

Comprising (%) Listed equity instruments (shares) Listed debt instruments (bonds)

11% 57%

9%

61%

Real estate properties

7% 2%

8% 3%

Cash and cash equivalents

Other

23%

19%

357

EDF | Universal registration document 2019