EDF / 2018 Reference document

6.

FINANCIAL STATEMENTS Income Statement

IMPAIRMENT/REVERSALS NOTE 13 IMPAIRMENT BY CATEGORY OF ASSET 13.1

Details of impairment recognised and reversed are as follows:

Notes

2018

2017

(in millions of euros)

Impairment of goodwill

18 19

-

-

Impairment of other intangible assets

(52)

(16)

Impairment of tangible assets and discontinued operations

21-22-43

(546) (598)

(502) (518)

IMPAIRMENT NET OF REVERSALS

13.2

IMPAIRMENT TESTS ON

In 2017, the €(518) million of impairment recorded concerned: thermal assets: €(188) million in the United Kingdom; ■ some of Edison’s exploration and production fields: €(150) million; ■

GOODWILL, INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT

other impairment on specific assets: €(131) million (notably concerning real ■ estate assets in the United Kingdom and France, and hydropower projects in France); various CGUs of EDF Renewables (particularly a specialist battery company in the ■ United States): €(29) million. Impairment of €(618) million was also booked at 31 December 2017 in respect of associates (see note 23). In 2018, impairment amounts to €(598) million. Details are given below.

The following tables present the results of impairment tests carried out on the main goodwill, intangible assets with indefinite useful lives and other Group assets in 2018, and some of the key assumptions used. As reported in note 3.11.2, the Group finalised allocation of the purchase price paid for 75.5% of the capital of Framatome on 31 December 2018. The assets acquired, mainly goodwill, intangible assets and property, plant and equipment, were recorded at fair value at the acquisition date of 31 December 2017. The work done for the impairment tests applied at 31 December 2018 did not indicate that these amounts required adjustment.

IMPAIRMENT OF GOODWILL AND INTANGIBLE ASSETS WITH INDEFINITE USEFUL LIVES

Impairment 2018 (in millions of euros)

Cash-Generating Unit or asset EDF Energy goodwill British Energy brand

Net book value (in millions of euros)

Growth rate to infinity

Operating segment

WACC after tax

7,604 34

- (34)

United Kingdom

6.3%

-

6.5%(distribution) – 8.9%(exploration- production)

Italy

Edison brand Dalkia goodwill Dalkia brand

945 550 130

2.0% 1.7% 1.7%

- - -

4.4% 4.9%

Dalkia

(34)

IMPAIRMENT OF GOODWILL AND INTANGIBLE ASSETS WITH INDEFINITE USEFUL LIVES

IMPAIRMENT OF OTHER INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT

Impairment 2018 (in millions of euros)

Cash-Generating Unit or asset

Operating segment

Impairment indicators

WACC after tax

CCGT

Fall in clean spark spread and temporary suspension of the capacity market mechanism Fall in clean dark spread and temporary suspension of the capacity market mechanism Decline in the long-term outlook for Brent oil prices, and production profiles for each field

(106)

United Kingdom

Coal-fired plants

6.3%

(16)

6.9% – 10.4% depending on the country 4.2% – 6.4%

Italy

E&P Edison assets

(308) (103)

EDF Renewables Other impairment

EDF Renewables CGU

(31)

(564)

IMPAIRMENT OF OTHER INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT

358

EDF I Reference Document 2018