EDF / 2018 Reference document

6.

FINANCIAL STATEMENTS Operating assets and liabilities, equity

23.2

CENG

CENG – financial indicators 23.2.1 The key financial indicators for CENG (on a 100% basis) are as follows:

31/12/2018

31/12/2017

(in millions of euros) Non-current assets Current assets TOTAL ASSETS

7,689 1,142 8,831 3,334 4,912

7,370

965

8,335 2,989 5,030

Equity

Non-current liabilities

Current liabilities

585

316

8,831 1,335

8,335 1,156

TOTAL EQUITY AND LIABILITIES

Sales

Operating profit before depreciation and amortisation

579 205

396

Net income (1)

(633)

Gains and losses recorded directly in equity

(123)

107

Dividends paid

-

-

Including 100% of impairment at 31 December 2017, amounting to €(982) million. (1)

Impairment 23.2.2 In 2017, impairment of €(491) million was recorded on the Group’s investment in CENG as a result of lower forward prices and long-term electricity prices. At 31 December 2018, the update of the impairment test for CENG assets indicated that the recoverable value of the investment was higher than the book value, mainly due to the new long-term price curves published by external organisations over the second half-year, and the effects of the tax reform. However, given the specific context of the asset explained below, there was no partial recovery of the impairment booked previously. Calculation of the value in use is sensitive to several assumptions, particularly concerning the long-term existence of New York State’s Zero Emission Credit (ZEC)

programme of subsidies for nuclear power plants, which provides additional income for the Ginna and Nine Mile Point plants. This programme is currently the subject of legal proceedings and its continuation could be called into question. In addition, there are uncertainties relating to several key assumptions for the valuation of the investment in CENG (e.g. the market environment, legal framework, changes in energy policies, and the Group’s lack of control over strategy-setting). The calculation of recoverable value for the CENG asset thus includes a specific risk premium. Under the terms of the agreement with Exelon, EDF has an option to sell its share in CENG to Exelon at fair value, exercisable between January 2016 and June 2022.

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EDF I Reference Document 2018