EDF_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS Income Statement

Future Cash Flows 31.2.6 Cash flows related to future employee benefits are as follows:

Amount covered by provisions (present value)

Cash flow in year-end economic conditions

(in millions of euros) Less than one year One to five years Five to ten years More than ten years

1,480 5,583 5,383

1,467 5,260 4,621

40,829 53,275

21,353 32,701

CASH FLOWS RELATED TO EMPLOYEE BENEFITS

At 31 December 2017, the average duration of employee benefit commitments in France is 19.2 years.

31.2.7

Actuarial assumptions

31/12/2017

31/12/2016

(in%)

Discount rate/rate of return on assets (1)

1.90% 1.50% 1.70%

1.90% 1.50%

Inflation rate

Wage increase rate (2) 1.70% The interest income generated by assets is calculated using the discount rate. The difference between this interest income and the return on assets is recorded in (1) equity. Excluding inflation. (2)

6.

In France, the discount rate used for employee benefit obligations is determined by applying the yield rate on high-quality corporate bonds based on their duration to maturities corresponding to the future disbursements resulting from these obligations. For longer durations, the calculation also takes into consideration data from a wider selection of corporate bonds adjusted for comparability with the high-quality bonds, since 2017 saw a reduction in the number of such bonds with these durations.

Changes at 31 December 2017 in the economic and market parameters used have led the Group to set the discount rate at 1.90% at 31 December 2017 (identical to the rate at 31 December 2016). The inflation rate used to calculate provisions for employee benefits is derived from an internally-determined inflation curve by maturity which is used in the Group as a benchmark for Euro zone countries. The inflation rate determined in this way at 31 December 2017 is an average 1.50% (identical to the rate at 31 December 2016).

Sensitivity analysis 31.2.8 Sensitivity analyses on the amount of the obligation are as follows:

31/12/2017

(in%)

Impact of a 25bp increase or decrease in the discount rate Impact of a 25bp increase or decrease in the wage increase rate Impact of a 25bp increase or decrease in the inflation rate

-4.6% / +5.0% +3.8% / -3.8% +4.7% / -4.4%

31.3

UNITED KINGDOM

The United Kingdom segment chiefly comprises EDF Energy, whose principal employee benefits are described in note 1.3.22.

31.3.1

Details of the change in the net liability

Obligations

Fund assets

Net liability

(in millions of euros)

Balances at 31/12/2016 Net expense for 2017 Actuarial gains and losses

8,891

(9,248)

(357)

511 194

(249) (558) (286)

262

(364) (286)

Employer’s contributions to funds Employees’ contributions to funds

-

14

(14) 338 333

- -

Benefits paid

(338) (316) 8,956

Translation adjustment

17

(9,684)

(728)

BALANCES AT 31/12/2017

Including:

- - -

- - -

-

Provisions for employee benefits Non-current financial assets

182

(910)

371

EDF I Reference Document 2017