EDF / 2019 Universal registration document

6. Financial statements Financial statements

The actuarial gains and losses on obligations generated over 2019 amount to €3,887 million, and are mainly associated with changes in the discount rate and inflation rate (€4,244 million), the impact of the law on social security system

funding for 2020 (€(267) million), the updating of the wage law (€(125) million)

and experience adjustments of €16 million.

POST-EMPLOYMENT AND LONG-TERM EMPLOYEE BENEFIT EXPENSES:

31/12/2019

31/12/2018

(in millions of euros)

Current service cost  (1)

409 614

529 574

Interest expenses (discount effect) Expected return on fund assets

(271)

(267)

Amortisation of unrecognised actuarial gains and losses – post-employment benefits

99

241 (16)

Change in actuarial gains and losses – long-term benefits

132

Effect of plan curtailment or settlement Past service cost – vested benefits Past service cost – unvested benefits

- -

- -

10

10

NET CHARGES RELATED TO POST-EMPLOYMENT BENEFITS AND LONG-TERM BENEFITS

993

1,071

including:

Operating expenses  (2) Financial expenses

651 342

764

307 The lower past service cost compared to 2018 essentially results from changes in actuarial assumptions, principally the decrease in the wage increase rate (-0.1%) (1) and the rise in the discount rate (+0.4%). In 2019, this amount principally corresponds to operating increases of €674 million net of reversals for actuarial gains and losses (€(23) million). (2)

30.1

Provisions for post-employment benefits

Details of these provisions are shown below:

Increases

Decreases

31/12/2019

31/12/2018

Operating Financial

Operating Financial

(in millions of euros)

Provisions for post-employment benefits

10,304

534

592

(748)

(271)

10,411

comprising: Pensions

7,358

293

456

(590)

(260)

7,257

CNIEG expenses

453

7

10 95 13 18

(13)

- -

457

Benefits in kind (energy) Retirement gratuities

1,888

157

(122)

2,018

(5)

36 41

(1)

(11)

32

Other benefits

611

(22)

-

648

Unrecognised past service cost

Unrecognised actuarial gains and losses

Provision in the balance sheet

Obligations

Fund assets

(in millions of euros)

Provisions for post-employment benefits at 31/12/2019

29,519

(12,314)

(29)

(6,765)

10,411

comprising: Pensions

22,576

(11,764)

- - -

(3,556)

7,257

CNIEG expenses

457

- -

-

457

Benefits in kind (energy) Retirement gratuities

4,847

(2,829)

2,018

602

(534)

(13) (16)

(23)

32

Other benefits

1,037

(16)

(357)

648

440

EDF | Universal registration document 2019

www.edf.fr