EDF / 2018 Reference document

FINANCIAL STATEMENTS Income Statement

OTHER INCOME AND EXPENSES NOTE 14

Other income and expenses amount to €(105) million for 2018, mainly including a bonuses in France, and €(15) million resulting from the adjustment of EDF Energy’s gain of €755 million on the sale of Dunkerque LNG and an allocation of guaranteed minimum pension scheme (see note 31.3.1).

€(737) million to provisions for onerous contract associated with the long-term contract with Dunkerque LNG, giving a net impact of €18 million (see note 3.3). Other income and expenses also include €(36) million of exceptional solidarity

Other income and expenses amounted to €1,363 million for 2017, mainly including a gain of €1,462 million on the sale of 49.9% of the Group’s investment in CTE.

FINANCIAL RESULT NOTE 15

15.1

COST OF GROSS FINANCIAL INDEBTEDNESS

Details of the components of the cost of gross financial indebtedness are as follows:

2018

2017

(in millions of euros)

Interest expenses on financing operations

(1,769)

(1,869)

Change in the fair value of derivatives and hedges of liabilities Transfer to income of changes in the fair value of cash flow hedges

(93) 102

37 31 23

Net foreign exchange gain on indebtedness COST OF GROSS FINANCIAL INDEBTEDNESS

44

(1,716)

(1,778)

6.

DISCOUNT EFFECT 15.2 The effect of unwinding the discount primarily concerns provisions for the back-end of the nuclear cycle, decommissioning and last cores, and long-term and post-employment employee benefits.

The increase in the discount effect at 31 December 2018 reflects a decrease in the real discount rate used for nuclear provisions in France that was more pronounced in 2018 than 2017 (see note 29.1)

Details of the final discount effect are as follows:

2018 (875)

2017 (884)

(in millions of euros)

Provisions for long-term and post-employment employee benefits

Provisions for the back-end of the nuclear cycle, decommissioning and last cores (1)

(2,480)

(1,968)

Other provisions and advances

(131)

(107)

(3,486)

(2,959)

DISCOUNT EFFECT

Including the effect of discounting the receivable corresponding to amounts reimbursable by the NLF – see note 36.3. (1)

15.3

OTHER FINANCIAL INCOME AND EXPENSES

Other financial income and expenses comprise:

2018

2017

(in millions of euros)

Financial income on cash and cash equivalents

13

21

Gains/(losses) on other financial assets (including loans and financial receivables)

254 496

295

Gains/(losses) on debt and equity securities

-

Changes in financial instruments carried at fair value through profit and loss

(995)

(102) 1,395

Gains/(losses) on available-for-sale financial assets

-

Other financial expenses

(261)

(52) (41) 470 515

Foreign exchange gain/loss on financial items other than debts

(91) 475 502 393

Return on fund assets

Capitalised borrowing costs

2,501

OTHER FINANCIAL INCOME AND EXPENSES

In application of the simplified approach allowed by IFRS 9, the comparative figures of €494 million on debt securities, and net gains of €2 million on sales (including for the first year of application have not been restated. Consequently, in 2018, €(12) million on dedicated assets). “gains/(losses) on debt and equity securities” include dividends and interest income

361

EDF I Reference Document 2018