EDF / 2018 Reference document

FINANCIAL STATEMENTS Cash flows and other information

Operating commitments received 46.2.1 Operating commitments received by the Group at 31 December 2018 comprise the following:

31/12/2018

31/12/2017

Maturity

< 1 year

1-5 years

> 5 years

Total

Total

(in millions of euros)

Operating lease commitments as lessor

678

124

399

154

780

Operating sale commitments (1) Operating guarantees received

7,004 1,791

1,745 1,014

4,224

1,035

6,748 1,483

591

186

Other operating commitments received OPERATING COMMITMENTS RECEIVED

66

17

35

14

46

9,539 9,057 Commitments at 31 December 2017 have been restated by €5,422 million in application of IFRS 15. They mainly concerned other commitments received by (1) Framatome and EDF Renewables for sales of goods and services. 2,900 5,249 1,389

Operating lease commitments as lessor 46.2.1.1 The Group benefits from commitments as lessor in operating leases amounting to €678 million. Most of these commitments derive from contracts classified as operating leases under IFRIC 4, “Determining whether an arrangement contains a lease”. They mainly concern the Asian Independent Power Projects (IPPs) and real estate leases. Operating sale commitments 46.2.1.2 Operating sale commitments received principally concern firm orders made through contracts recorded on a percentage-of-completion basis at Framatome (construction and engineering contracts) and EDF Renewables (agreements for operation services, maintenance services, and development and sale of structured assets).

Operating guarantees received 46.2.1.3 Operating guarantees received primarily concern EDF and relate to guarantees received from suppliers, particularly in connection with deliveries under the ARENH system. Electricity supply commitments 46.2.1.4 In the course of its business, the EDF group has signed long-term contracts to supply electricity as follows: long-term contracts with a number of European electricity operators, for a ■ specific plant or for a defined group of plants in the French nuclear generation fleet, corresponding to installed power capacity of 3.5GW; in execution of France’s NOME Law on organisation of the French electricity ■ market, EDF has a commitment to sell some of the energy generated by its existing nuclear power plants to other suppliers. This covers volumes of up to 100TWh each year until 31 December 2025.

6.

46.2.2

Investment commitments received

31/12/2018

31/12/2017

Maturity

< 1 year

1-5 years > 5 years

Total

Total

(in millions of euros)

183

49

16

118

214

INVESTMENT COMMITMENTS RECEIVED

Under the terms of the agreement signed with Exelon on 29 July 2013 and finalised on 1 April 2014, EDF has an option to sell its share in CENG to Exelon at fair value, which can be exercised between January 2016 and June 2022. Due to its features, this commitment has nil value at 31 December 2018.

46.2.3

Financing commitments received

31/12/2018

31/12/2017

Maturity

< 1 an 1-5 years > 5 years

Total

Total

(in millions of euros)

30

6

4

20

72

FINANCING COMMITMENTS RECEIVED

CONTINGENT LIABILITIES NOTE 47 In addition to the matters reported in note 4.3, the principal contingent liabilities at 31 December 2018 are the following.

Montreuil Administrative Court issued two rulings that recognised the tax-deductibility of these liabilities and validated the position taken by the Company. For the years 2012 to 2015, the French tax authorities notified the Company of certain recurrent tax reassessments concerning the Contribution sur la Valeur ajoutée des Entreprises (tax on corporate value added), and questioned the deductibility of long-term provisions. EDF International Following the tax inspections of EDF International for the years 2009 to 2014, the French tax authorities questioned the valuation of the bond convertible into shares issued to refinance the acquisition of British Energy. The total amount concerned is

47.1 EDF

TAX INSPECTIONS

For the period 2008 to 2015, EDF was notified of proposed tax adjustments, notably concerning the tax-deductibility of certain long-term liabilities. This recurrent reassessment, which is applied for each year, represents a cumulative financial risk of some €563 million in income taxes at 31 December 2018. In September 2017 the

421

EDF I Reference Document 2018