EDF / 2018 Reference document

FINANCIAL STATEMENTS Operating assets and liabilities, equity

PROPERTY, PLANT AND EQUIPMENT USED IN GENERATION NOTE 22 AND OTHER TANGIBLE ASSETS OWNED BY THE GROUP NET VALUE OF PROPERTY, PLANT AND EQUIPMENT USED IN GENERATION 22.1 AND OTHER TANGIBLE ASSETS OWNED BY THE GROUP

The net value of property, plant and equipment used in generation and other tangible assets owned by the Group breaks down as follows:

31/12/2018

31/12/2017

(in millions of euros)

Property, plant and equipment

47,779 30,377

48,972 26,515

Property, plant and equipment in progress Finance-leased property, plant and equipment

96

135

PROPERTY, PLANT AND EQUIPMENT USED IN GENERATION AND OTHER TANGIBLE ASSETS OWNED BY THE GROUP

78,252

75,622

and also, since 1 January 2018, the elimination of internal balances on balance ■ sheet items and margins between Framatome and EDF SA in connection with the Flamanville 3 EPR project (€437 million, essentially consisting of advances and progress payments), giving a construction cost at historical value of €9,217 million in the financial statements at 31 December 2018, for target construction costs (excluding borrowing costs) announced on 25 July 2018 as €10.9 billion expressed in 2015 euros. The changes observed in property, plant and equipment (including assets in progress) also include a foreign exchange effect of €(129) million, mainly caused by the decline of the pound sterling against the Euro. In 2018, impairment recognised in respect of property, plant and equipment in progress and finance-leased, and other property, plant and equipment owned by the Group, amounts to €(19) million and €(219) million respectively.

At 31 December 2018, property, plant and equipment in progress owned by the Group mainly concerns the EPR reactors at Flamanville 3 (€12,479 million including capitalised borrowing costs of €2,622 million), Hinkley Point C (€7,502 million including capitalised borrowing costs of €108 million) and Sizewell (€133 million including capitalised borrowing costs of €1 million). The capitalised value of the Flamanville 3 EPR project in the financial statements at 31 December 2018 is €10,065 million excluding borrowing costs (€9,874 million in property, plant and equipment in progress and €191 million (1) in property, plant and equipment in operation). This includes the following, in addition to the construction cost: an inventory of spare parts and capitalised amounts totalling €328 million for ■ related projects (notably the initial comprehensive inspection and North Area development); €520 million of pre-operating expenses and other property, plant and equipment ■ related to the Flamanville project;

6.

(1) €241 million gross, less €50 million of depreciation.

22.2

MOVEMENTS IN PROPERTY, PLANT AND EQUIPMENT USED IN GENERATION AND OTHER TANGIBLE ASSETS OWNED BY THE GROUP (EXCLUDING ASSETS IN PROGRESS AND FINANCE-LEASED ASSETS)

Fossil-fired & hydropower

Other installations, plant, machinery, equipment & other

Land and buildings

Nuclear power plants

plants Networks

Total

(in millions of euros)

Gross value at 31/12/2017

13,019

68,890

20,837

17

18,765

121,528

Increases Decreases

610

3,336

187

- - - - -

1,857 (543)

5,990

(403)

(1,074)

(225)

(2,245)

Translation adjustments

(8)

(89)

(9)

(23)

(129)

Changes in the scope of consolidation (1)

(233)

-

(1,367)

(755)

(2,355)

Other movements (2)

(17)

327

22

36

368

12,968

71,390

19,445

17

19,337

123,157

GROSS VALUE AT 31/12/2018 Depreciation and impairment at 31/12/2017

(7,074)

(45,679)

(12,230)

(12)

(7,561) (1,246)

(72,556)

Net depreciation

(331)

(2,804)

(581) (154)

- - - -

(4,962)

Impairment net of reversals

-

-

(65) 501

(219) 1,913

Disposals

208

984

220

Translation adjustments

1

45

12 71 63

3

61

Changes in the scope of consolidation (1)

12 (7)

-

1

57

141 244

Other movements

230

-

(42)

DEPRECIATION AND IMPAIRMENT AT 31/12/2018

(7,191)

(47,224) 23,211

(12,599)

(11)

(8,353) 11,204 10,984

(75,378) 48,972

Net value at 31/12/2017 NET VALUE AT 31/12/2018

5,945 5,777

8,607 6,846

5 6

24,166

47,779

Changes in the scope of consolidation mainly concern assets related to the sale of the Dunkerk methane terminal (see note 3.3). (1) Other movements include the effect on assets associated with provisions and underlying assets of the €289 million change in the real discount rate used to (2) calculate provisions related to EDF’s nuclear generation (see note 29.1).

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EDF I Reference Document 2018