EDF_REGISTRATION_DOCUMENT_2017

6.

FINANCIAL STATEMENTS Balance Sheet

30.3

FUND ASSETS

benefits earned under the special pension system (€10,845 million) and retirement gratuities (with target coverage of 100%) (€506 million).

Fund assets amount to €11,366 million at 31 December 2017 (€11,317 million at 31 December 2016) and are principally allocated to coverage of the past specific

Investments under the contracts concerned break down as follows:

31/12/2017

31/12/2016

(in millions of euros)

TOTAL FUND ASSETS

11,366 10,845

11,317 10,797

Assets funding special pension benefits

% Equities

30% 31% 70% 69%

Bonds and monetary instruments

Assets funding retirement gratuities

506

506

% Equities

32% 33% 68% 67%

Bonds and monetary instruments Assets funding other benefits

15

15

ACTUARIAL ASSUMPTIONS 30.4 The main actuarial assumptions used for provisions for post-employment benefits and long-term employee benefits under the IEG system are summarised below: the discount rate is 1.9% at 31 December 2017 (identical to the rate used at ■ 31 December 2016); the inflation rate is estimated at 1.5% at 31 December 2017 (identical to the ■ rate used at 31 December 2016); the average residual period of employment is 19.68 years; ■ the staff turnover rate is considered non-significant; ■ the “tarif agent” (special energy price for EDF employees) includes changes in ■ taxes based on that tariff; the expected return on fund assets covering past specific benefits under the ■ special pension system is 2.37% for 2017; the expected return on fund assets covering retirement gratuities is 1.99% ■ for 2017.

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. The obligations are based on wage increase assumptions that are differentiated by age group and employee category, leading to an average annual rise of 1.7% excluding inflation (3.2% including inflation).

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EDF I Reference Document 2017