EDF / 2018 Reference document

FINANCIAL STATEMENTS Notes to the consolidated financial statements

The final goodwill recorded on the operation on 31 December 2018, under the partial goodwill method and based on a 75.5% ownership percentage, is determined as follows:

(in millions of euros) Purchase price for the investment

1,960 1,960

Consideration transferred at 31 December 2018 (A)

Fair value of the Framatome assets acquired

645 645

Fair value of assets acquired and liabilities assumed (B)

1,315

FINAL GOODWILL (A)-(B)

5.2

ACQUISITION OF A 450MW OFFSHORE WIND PROJECT IN SCOTLAND

5.3

ACQUISITION BY EDISON

OF EDISON ENERGIE (FORMERLY GAS NATURAL VENDITA ITALIA)

The EDF group, via EDF Renewables in the United Kingdom, a joint subsidiary of EDF Energy and EDF Renewables, has bought the "Neart na Gaoithe (1) " wind farm project from global wind and solar developer Mainstream Renewable Power, following a competitive bidding process. This wind farm will generate up to 450 megawatts (MW) of renewable energy, enough to meet the annual electricity requirements of more than 375,000 homes (2) . Neart na Gaoithe is a fully consented offshore wind project located in the Firth of Forth off the east coast of Scotland. It covers 105km 2 , and has a 15-year Contract for Difference at €140/MWh (resulting from indexation of the tariff of £114.39/MWh set in 2012), and grid connection agreements in place. It also benefits from one of the best wind regimes in Europe. The commissioning of the wind farm is planned for 2023. The total investment required to deliver the project is around £1.8 billion. The project will be open to other investors in due course.

Following approval from the European Union, Edison finalised its acquisition of Edison Energie (formerly Gas Natural Vendita Italia (GNVI)) on 22 February 2018 and strengthened its position in the domestic market, increasing its customer base by 50% and expanding its presence throughout Italy. Edison Energie’s portfolio is located primarily in Southern Italy and the majority consists of gas customers. With this transaction, Edison has strengthened its position as a key national energy operator in the retail sector. The price paid to acquire the company was €193 million (see note 44.1.2.2 to the consolidated financial statements at 31 December 2017), and the goodwill recognised on this acquisition amounts to €80 million. Completion of the acquisition of Edison Energie paves the way for transfer to Edison of a contract for gas supplies from the Shah Deniz II field in Azerbaijan.

6.

Neart na Gaoithe is Gaelic for “Strength of the Wind”. (1) Based on the average domestic electricity consumption per home of 3,889kWh per the Energy Consumption in the UK report (published in July 2017) and the average load factor (2) for Renewable-UK offshore wind farms estimated at 37.2%.

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EDF I Reference Document 2018