EDF / 2018 Reference document

6.

FINANCIAL STATEMENTS Cash flows and other information

Withdrawals from dedicated assets in 2018 totalled €403 million, equivalent to payments made in respect of the long-term nuclear obligations to be covered during the year (€378 million in 2017). Over a 10-year horizon, disbursements will be made to the following extent (at year-end economic conditions, i.e. in 2018 euros): 14% of provisions for long-term radioactive waste management; ■ 11% of provisions for decommissioning. ■

Over a 50-year horizon, disbursements will be made to the following extent (at year-end economic conditions, i.e. in 2018 euros): 35% of provisions for long-term radioactive waste management; ■ 93% of provisions for decommissioning. ■

The Group’s long-term nuclear obligations in France concerned by the regulations for dedicated assets related to nuclear generation are included in the EDF group’s consolidated financial statements at the following values:

31/12/2018

31/12/2017

(in millions of euros)

Provisions for spent fuel management – portion unrelated to the operating cycle as defined in the regulations

1,067 9,846

983

Provisions for long-term radioactive waste management

8,814

Provisions for waste removal and conditioning Provisions for nuclear plant decommissioning

751

726

15,985

14,920

Provisions for last cores – portion for future long-term radioactive waste management

518

467

28,167

25,910

PRESENT COST OF LONG-TERM NUCLEAR OBLIGATIONS

Because of changes (other than regulatory modifications) in the assumptions used to calculate long-term nuclear provisions, particularly the change in the discount rate, the required allocation to dedicated assets for 2018 is amounting to €1,337 million. The administrative authorities authorised EDF to spread this allocation as follows: €540 million in 2019 and 2020, and €257 million in 2021. Including the allocation to be made in 2019 for 2018, all other things being equal, the coverage rate at 31 December 2018 would be 100.2%. IN 2018 Following a ministerial letter of 31 May 2018 authorising EDF, subject to conditions, to increase the portion of unlisted assets in its dedicated assets, on 29 June 2018 the Board of Directors validated a new strategic allocation for dedicated assets (see note 45.2). The regulatory allocation to dedicated assets for 2017 amounted to €386 million and was made during 2018. EDF Invest continued over 2018 to build up a portfolio of infrastructures, real estate property and investment funds. Among its new investments, in November 2018 EDF Invest completed the purchase of a minority interest in six UK companies (Bicker Fen, Fallago Rig, Fenland, Glass Moor II, Green Rigg, Rusholme) from EDF Renewables. In December 2018, EDF Invest acquired EDF International’s minority interest in Nam Theun Power Company (NTPC), a hydroelectric dam in Laos, part of which was allocated to dedicated assets at that date. The rest will be allocated in 2019. CHANGES IN DEDICATED ASSETS 45.5

These new investments have been added to the infrastructures assets that are part of EDF Invest’s yield assets, alongside investments including CTE (the company that owns RTE), Terega (formerly TIGF), Porterbrook, Madrileña Red de Gas, Géosel, Thyssengas, Aéroports de la Côte d'Azur, Autostrade per l'Italia and Q-Park. Negative changes of €989 million in the fair value of the dedicated asset portfolio (investment funds and equities) were recognised in the financial result in 2018 in application of IFRS 9 (see note 15.3). Negative changes of €60 million in the fair value of the dedicated asset portfolio (bonds) were recognised in OCI in 2018 in application of IFRS 9 (see note 36.2). FRAMATOME AND SOCODEI The dedicated assets of Framatome and SOCODEI relating to Basic nuclear facilities (INB) in France have realisable values of €72 million and €47 million respectively and the degree of coverage of provisions according to the regulations is 92.8% for Framatome and 103.5% for SOCODEI (calculated using EDF group discount and inflation rates for nuclear provisions in France – see note 30). These two entities’ long-term nuclear obligations in France concerned by the regulations for dedicated assets are included in the EDF group’s consolidated financial statements at the amounts of €78 million for Framatome and €46 million for SOCODEI (see note 30). DEDICATED ASSETS OF 45.6

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EDF I Reference Document 2018