EDF / 2018 Reference document

FINANCIAL STATEMENTS Income Statement

INCOME STATEMENT

SALES NOTE 7

Sales are comprised of:

2018 2017 restated (1)

(in millions of euros)

Sales of energy and energy-related services

63,713

62,102

Other sales of goods and services

4,387

2,186

Trading SALES

876

604

68,976

64,892

The comparative figures at 31 December 2017 have been restated according to IFRS 15 (see note 2.1). (1)

After elimination of changes in foreign exchange rates and the scope of consolidation, sales in 2018 increase by 4% or €2.6 billion, principally in the France – Generation and Supply segment (+3.9% or +€0.9 billion), and Italy (+6.1% or +€0.5 billion), and in general across all segments (adjusted contribution figures). The rise in sales in the France – Generation and Supply segment in 2018 mainly reflects (i) higher net resales on the purchase obligation markets (neutral effect on the operating profit before depreciation and amortisation with the CSPE), largely due to a substantial volume effect, (ii) favourable price effects on market-price offers, (iii) and the higher energy savings certificate component of offers, in relation with the increase in the obligation cost. The marked increase in nuclear generation in 2018 (+14.1TWh) compared to 2017, which was adversely affected by several reactor outages, and the increase in hydropower generation (+9.2TWh net),

essentially reduced the Group’s net buyer position (in euros) on the markets compared to 2017. These factors are favourable for the operating profit before depreciation and amortisation but are not reflected in the change in sales between 2017 and 2018, as the Group was in a net buyer position (in euros) in both years. In Italy, sales increased due to a favourable volume movement on the business customer segment, and higher hydropower production following better hydrological conditions and very positive price effects on gas and exploration-production activities, driven by favourable changes in Brent and gas prices. The effect on other sales of goods and services of the first consolidation of Framatome, which was acquired at 31 December 2017, amounted to €1,904 million.

6.

FUEL AND ENERGY PURCHASES NOTE 8

Fuel and energy purchases comprise:

2018

2017 restated (1)

(in millions of euros)

Fuel purchases used – power generation

(12,337) (13,351) (7,724)

(12,167) (13,816) (7,441)

Energy purchases

Transmission and delivery expenses Gain/loss on hedge accounting

(18) 418

80

(Increase)/decrease in provisions related to nuclear fuels and energy purchases

443

(33,012)

(32,901)

FUEL AND ENERGY PURCHASES

The comparative figures at 31 December 2017 have been restated according to IFRS 15 (see note 2.1). (1)

Fuel purchases used include costs relating to raw materials for energy generation (coal, biomass, oil, propane, fissile materials, nuclear fuels and gas), purchases of services related to the nuclear fuel cycle, and costs associated with environmental schemes (mainly greenhouse gas emission rights and renewable energy certificates).

Energy purchases include energy generated by third parties, incorporating energy derived from cogeneration intended for resale.

OTHER EXTERNAL EXPENSES NOTE 9

Other external expenses comprise:

2018

2017

(in millions of euros) External services

(13,189) (3,504)

(11,678) (2,706)

Other purchases (excluding external services, fuel and energy)

Change in inventories and capitalised production

7,139

5,485

(Increase)/decrease in provisions on other external expenses

190

160

(9,364)

(8,739)

OTHER EXTERNAL EXPENSES

After elimination of changes in foreign exchange rates and the scope of consolidation (mainly concerning Framatome in 2018), other external expenses are stable compared to 2017.

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EDF I Reference Document 2018