EDF_REGISTRATION_DOCUMENT_2017

6.

FINANCIAL STATEMENTS Income Statement

AT 31 DECEMBER 2016

Fund assets

Provisions in the balance sheet

Obligations

(in millions of euros)

Provisions for post-employment benefits at 31/12/2016

31,876 (11,566)

20,310

comprising: Pensions

24,976 (10,810)

14,166

Benefits in kind (electricity/gas)

4,695

-

4,695

Retirement gratuities

913

(741)

172

Other

1,292 1,497

(15)

1,277 1,497

Provisions for other long-term employee benefits at 31/12/2016 comprising: Annuities following work-related accident and illness, and invalidity

-

1,252

- - -

1,252

Long service awards

213

213

Other

32

32

33,373 (11,566)

21,807

PROVISIONS FOR EMPLOYEE BENEFITS AT 31/12/2016

31.2.4

Breakdown of obligations by type of beneficiary

31/12/2017

31/12/2016

(in millions of euros) Current employees

18,577 14,124 32,701

19,918 13,455 33,373

Retirees

OBLIGATIONS

Fund assets 31.2.5 For France, fund assets, managed under an asset/liability model, amount to €11,621 million at 31 December 2017 (€11,566 million at 31 December 2016) and concern the coverage of retirement gratuities (with target coverage of 100%) and the specific benefits of the special pension system.

They consist of insurance contracts with the following risk profile: 69% in a hedging pocket consisting of bonds, designed to replicate variations in ■ the obligation caused by changes in interest rates; 31% in a growth asset pocket consisting of international equities. ■

Fund assets break down as follows:

31/12/2017

31/12/2016

(in millions of euros) FUND ASSETS

11,621 10,859

11,566 10,810

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

31% 69%

31% 69%

747

741

32% 68%

33% 67%

Listed debt instruments (bonds)

Other fund assets

15

15

At 31 December 2017, the equities held as part of fund assets are distributed as follows: approximately 53% of the total are shares in North American companies; ■ approximately 24% of the total are shares in European companies; ■ approximately 23% 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 2016.

At 31 December 2017, the bonds held as part of fund assets are distributed as follows: approximately 90% of the total are AAA and AA-rated bonds; ■ approximately 10% of the total are bonds with A, BBB and other ratings. ■ Around 84% of bonds are sovereign bonds issued by Euro zone countries, and the balance mainly consists of bonds issued by financial and non-financial firms. This distribution is relatively stable compared to the distribution at 31 December 2016. The performance of pension fund assets in France is +3.1% in 2017.

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EDF I Reference Document 2017