EDF / 2020 Universal Registration Document

6 FINANCIAL STATEMENTS

Notes to the consolidated financial statements

At 31 December 2019

Provisions in the balance sheet

Obligations

Fund assets

(in millions of euros)

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

31,776

(12,581)

19,195

Including: Pensions

24,463

(11,778)

12,685

Benefits in kind (electricity/gas)

4,876

-

4,876

Retirement gratuities

898

(787)

111

Other

1,539 1,534

(16)

1,523 1,534

Provisions for other long-term employee benefits at 31/12/2019 Including: Annuities following work-related accident and illness, and invalidity

-

1,290

- - -

1,290

Long service awards

214

214

Other

30

30

PROVISIONS FOR EMPLOYEE BENEFITS AT 31/12/2019

33,310

(12,581)

20,729

16.2.3

Fund assets

For France, fund assets, managed under an asset/liability model, amount to €13,470 million at 31 December 2020 (€12,581 million at 31 December 2019) and concern the coverage of retirement gratuities and the specific benefits of the special pension system.

They consist of insurance contracts with the following risk profile: 66% in a hedging pocket consisting of bonds, designed to replicate variations in ● the obligation caused by changes in interest rates; 34% in a growth asset pocket consisting of international equities. ●

Fund assets break down as follows:

31/12/2020

31/12/2019

(in millions of euros)

FUND ASSETS

13,470 12,671

12,581 11,778

Assets funding special pension benefits Including (%) Listed equity instruments (shares) Listed debt instruments (bonds) Including (%) Listed equity instruments (shares) Listed debt instruments (bonds) Assets funding retirement gratuities

34% 66%

31% 69%

784

787

37% 63%

34% 66%

Other fund assets

15

16

At 31 December 2020, the equities held as part of fund assets are distributed as follows: approximately 59% of the total are shares in North American companies; ● approximately 19% of the total are shares in European companies; ● approximately 22% of the total are shares in companies in the Asia-Pacific zone ● and emerging countries. This distribution is relatively stable compared to the distribution at 31 December 2019.

At 31 December 2020, the bonds held as part of fund assets are distributed as follows: approximately 70% of the total are AAA and AA-rated bonds; ● approximately 30% of the total are bonds with A, BBB and other ratings. ● Around 65% of bonds are sovereign bonds issued by Euro zone countries, and the balance mainly consists of bonds issued by financial and non-financial firms. The performance of pension fund assets in France is +11% in 2020.

16.2.4

Future Cash Flows

Cash flows related to future employee benefits are as follows:

Cash flow under year-end economic conditions

Amount covered by provisions (present value)

(in millions of euros)

Less than one year One to five years Five to ten years More than ten years

1,385 4,596 5,018

1,379 4,460 4,629

35,949 46,948

25,021 35,489

CASH FLOWS RELATED TO EMPLOYEE BENEFITS

At 31 December 2020, the average duration of employee benefit commitments in France is 20.6 years.

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EDF - UNIVERSAL REGISTRATION DOCUMENT 2020