EDF / 2020 Universal Registration Document

6 FINANCIAL STATEMENTS Notes to the financial statements

Provisions for employee benefits Note 30

Changes in provisions for employee benefits were as follows:

Increases

Decreases

31/12/2020

31/12/2019

Operating (1) (2)

Financial (3)

Operating (2) (4)

Financial (5)

(in millions of euros)

Provisions for post-employment benefits Provisions for long-term benefits PROVISIONS FOR EMPLOYEE BENEFITS

10,411

695 103

382

(715)

(212)

10,561

1,019

13

(80)

-

1,055

11,430

798

395

(795)

(212)

11,616

Including a past service cost of €485 million, amortisation of actuarial losses amounting to €303 million, and unvested benefits of €10 million. (1) See notes 6 and 11.2. (2) See note 13. (3) Including €(771) million for employers’ contributions and €(24) million for actuarial gains. (4) For the expected return on fund assets. (5)

Details of changes in the provisions:

Unrecognised actuarial gains and losses

Provision in the balance sheet

Obligations net of fund assets

Unrecognised past service cost

Obligations Fund assets

(in millions of euros)

BALANCE AT 31/12/2019

30,539 (12,315)

18,224

(29)

(6,765)

11,430

Net expense for 2020

880

(212)

668

10

279

957

Unrecognised actuarial gains and losses

2,229

(1,136)

1,093

- - -

(1,093)

- -

Contributions to funds

-

-

-

- -

Benefits paid

(1,230)

459

(771)

(771)

BALANCE AT 31/12/2020

32,418 (13,203)

19,214

(19)

(7,579)

11,616

The actuarial gains and losses on obligations generated over 2020 amount to €2,229 million, and mainly reflect changes in the discount rate and inflation rate (€1,903 million), and €326 million of losses due to experience adjustments.

Post-employment and long-term employee benefit expenses:

31/12/2020

31/12/2019

(in millions of euros)

Current service cost (1)

485 395

409 614

Interest expenses (discount effect) (2) Expected return on fund assets

(212)

(271)

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

185

99

Change in actuarial gains and losses – long-term benefits

94

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

957

993

including: Operating expenses (3)

774 183

651

Financial expenses 342 The higher past service cost compared to 2019 essentially results from changes in actuarial assumptions at 31 December 2019, principally the decrease in the (1) discount rate (-1.0%). The interest expenses (discount effect) of €395 million are €219 million lower in 2020 than 2019, as a result of the decrease in the discount rate between (2) 1 January 2019 (2.3%) and 1 January 2020 (1.3%). In 2020, this amount corresponds to operating increases of €798 million net of reversals for actuarial gains and losses (€24 million). (3)

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EDF - UNIVERSAL REGISTRATION DOCUMENT 2020