EDF / 2018 Reference document

FINANCIAL STATEMENTS Cash flows and other information

the Group’s investment in Terega, Porterbrook, Autostrade per l’Italia, Q-Park ■ and companies that own wind farms in the United Kingdom (Bicker Fen, Glass Moor II, Green Rigg, Rusholme), which are presented in debt and equity securities in the consolidated balance sheet; the Group’s investments in Madrileña Red de Gas (MRG), Géosel, Thyssengas, ■ Aéroports de la Côte d’Azur, Central Sicaf, Fallago Rig, Fenland, Ecowest SCI A and B and Nam Theun Power Company, which are presented in investments in associates in the consolidated balance sheet.

At 31 December 2018, the assets managed by EDF Invest represent a total realisable value of €5,680 million, including €5,356 million of yield assets. Yield assets particularly include: 50.1% of the Group’s shares in CTE, the joint venture that owns RTE, in ■ compliance with Decree 2016-1781 of 19 December 2016 amending the Decree of 23 February 2007. These shares amount to €2,738 million at 31 December 2018 (€2,705 million at 31 December 2017) (see note 3.11.3);

45.3

VALUATION OF EDF'S DEDICATED ASSETS

EDF’s dedicated assets are included in the Group’s consolidated financial statements at the following values:

31/12/2018 Realisable value

31/12/2017 Realisable value

Consolidated balance sheet presentation

Book value 3,919 1,406 1,167

Book value 3,652 1,241

(in millions of euros)

Yield assets (EDF Invest)

5,356 2,738 1,234

5,210 2,705

Investments in associates (1) Investments in associates (2)

CTE

Other associates

893

944

Debt and equity securities and other net assets (3)

Other unlisted assets

1,346

1,384

1,518

1,561

6.

Growth assets

10,108

10,108

10,099

10,099

Equities (4)

Debt securities Debt securities

9,844

9,844

9,942

9,942

Unlisted equity funds (EDF Invest)

219

219

127

127

Derivatives

Fair value of derivatives

45

45

30

30

Fixed-income assets

12,205 10,010

12,225 10,010

12,751

12,806

Bonds

Debt securities Debt securities Debt securities

9,282

9,282

Unlisted debt funds (EDF Invest)

105

105

71

71

Cash portfolio (5) CSPE receivable (6)

30

30

104

104

Loans and financial receivables

2,060 26,232

2,080 27,689

3,294 26,502

3,349

TOTAL EDF DEDICATED ASSETS 28,115 The Group’s investment of 50.1% of CTE, the company that holds 100% of the shares in RTE. The CTE shares are included at their equity value in the (1) consolidated financial statements (book value in the table). The realisable value of CTE at 31 December 2018 in the above table has been determined by an independent assessor, in the same way as for EDF Invest’s other assets. The realisable value of CTE at 31 December 2017 was based on the sale transaction price of 31 March 2017. Including the value of the share in equity of the controlled companies owning these investments. (2)

Including debt and equity securities amounting to €1,221 million and the value of the share in equity of other controlled companies. (3) Including €391 million of securities acquired in late December 2018 for which payment took place in early January 2019. (4)

After deduction of the €391 million of liabilities on securities acquired in late December 2018 for which payment took place in early January 2019. (5) The receivable consisting of accumulated shortfalls in compensation at 31 December 2015, less the portion assigned on 22 December 2016 and reimbursements (6) received since then, in line with the repayment schedule. The realisable value of the CSPE receivable is estimated based on market rates.

45.4

COVERAGE OF LONG-TERM

Structured entities – Investment funds The investment funds held by the Group (see note 1.3.2.9) reported in the table under “Debt and equity securities” are located in France and owned by EDF. The Group has not given these funds any financial support. The value of the assets of these investment funds amounts to €4,898 million at 31 December 2018 (€3,294 million at 31 December 2017). The funds mainly consist of 11 listed funds with total value of €4,340 million (at 31 December 2017, 12 listed funds with total value of €2,906 million).

NUCLEAR OBLIGATIONS At 31 December 2018, by the regulatory calculations provisions are 98.3% covered by dedicated assets. The regulatory limit on the realisable value of certain investments (decree 2007-243) has no effect at 31 December 2018. At 31 December 2017, by the regulatory calculations provisions were 108.5% covered by dedicated assets. The regulatory limit on the realisable value of certain investments (decree 2007-243) also had no effect at 31 December 2017. The coverage of nuclear provisions at 31 December 2018 complies with the ministerial decision of 28 December 2018 which extended the scope of provisions to be covered by dedicated assets. Following that ministerial decision, €298 million of provisions previously considered to belong to the operating cycle as defined by the regulations were transferred to long-term provisions, with an effect of -1.05% on the coverage rate.

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EDF I Reference Document 2018