EDF_REGISTRATION_DOCUMENT_2017

6.

FINANCIAL STATEMENTS Income Statement

At 31 December 2017, EDF Energy’s EEGSG and BEGG pension schemes (see note 1.3.22.2.2) were overfunded to the extent of €910 million compared to €568 million at 31 December 2016.

This excess funding, which has increased due to the good performance by fund assets, is recognised in balance sheet assets as “non-current financial assets”.

31.3.2

Post-employment benefit and other long-term employee benefit expenses

2017 (267)

2016 (224)

(in millions of euros) Current service cost

Past service cost

- -

40

Actuarial gains and losses – other long-term benefits Net expenses recorded as operating expenses

-

(267) (244)

(184) (302)

Interest expense (discount effect)

Return on fund assets

249

294

Net interest expense included in financial result

5

(8)

EMPLOYEE BENEFIT EXPENSES RECORDED IN THE INCOME STATEMENT

(262) (194)

(192)

Actuarial gains and losses – post-employment benefits

(1,349)

Actuarial gains and losses on fund assets

558 364 (17) 347

1,717

Actuarial gains and losses Translation adjustments

368

(5)

363

GAINS AND LOSSES ON EMPLOYEE BENEFITS RECORDED DIRECTLY IN EQUITY

31.3.3

Breakdown of obligations by type of beneficiary

31/12/2017

31/12/2016

(in millions of euros) Current employees

5,412 3,544 8,956

5,195 3,696 8,891

Retirees

OBLIGATIONS

Fund assets 31.3.4 Pension obligations in the United Kingdom are partly covered by external funds with a present value of €9,685 million at 31 December 2017 (€9,248 million at 31 December 2016). 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:

31/12/2017

31/12/2016

(in millions of euros) BEGG pension fund EEGSG pension fund EEPS pension fund

7,597 1,283

7,454 1,059

804

735

9,684

9,248

FUND ASSETS

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

27% 50%

27% 52%

Real estate properties

7% 1%

6% 3%

Cash and cash equivalents

Other

15%

12%

At 31 December 2017, the equities held as part of fund assets are distributed as follows: approximately 28% of the total are shares in North American companies; ■ approximately 48% of the total are shares in European companies; ■ approximately 24% 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 65% of the total are AAA and AA-rated bonds; ■ approximately 35% of the total are bonds with A, BBB and other ratings. ■ Around 65% 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 3% lower than at 31 December 2016.

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EDF I Reference Document 2017