EDF / 2020 Universal Registration Document

6 FINANCIAL STATEMENTS

Notes to the consolidated financial statements

16.3

United Kingdom

The United Kingdom segment chiefly comprises EDF Energy.

16.3.1

Breakdown of obligations by type of beneficiary

31/12/2020

31/12/2019

(in millions of euros)

Current employees

5,702 4,415

5,202 4,488 9,690

Retirees

OBLIGATIONS

10,117

16.3.2

Funds assets

Pension obligations in the United Kingdom are partly covered by external funds with a present value of €11,406 million at 31 December 2020 (€10,712 million at 31 December 2019).

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.

These assets break down as follows:

31/12/2020

31/12/2019

(in millions of euros)

BEGG pension fund EEGSG pension fund EEPS pension fund

8,585 1,585 1,236

8,144 1,493 1,075

FUND ASSETS

11,406

10,712

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

11% 61%

11% 57%

Real estate properties

6% 4%

7% 2%

Cash and cash equivalents

Other

18%

23%

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 71% of all these bonds are sovereign bonds, mainly issued by the United Kingdom. The balance mainly consists of bonds issued by financial and non-financial firms. The portion of sovereign bonds issued by the United Kingdom was 1 percentage point higher than at 31 December 2019.

At 31 December 2020, the equities held as part of fund assets are distributed as follows: approximately 60% of the total are shares in North American companies; ● approximately 23% of the total are shares in European companies; ● approximately 17% of the total are shares in companies in the Asia-Pacific zone ● and emerging countries.

16.3.3

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

409

440

1,742 2,419 9,640

1,690 2,130 5,857

CASH FLOWS RELATED TO EMPLOYEE BENEFITS

14,210

10,117

The contribution to funds for 2021 is estimated at approximately €298 million (€288 million contributed by the employer and €10 million by the employees). The average weighted duration of funds in the United Kingdom is 23.5 years at 31 December 2020.

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EDF - UNIVERSAL REGISTRATION DOCUMENT 2020