EDF / 2018 Reference document

FINANCIAL STATEMENTS Income statement

FINANCIAL RESULT NOTE 13

2018

2017

(in millions of euros)

Income from investments (1)

2,804

1,828

Income from other securities and receivables related to fixed assets (2)

607

496

Interest and similar income and expenses (3)

(948)

(1,325)

Reversal of provisions and impairment and transfers of charges (4)

315

948

Foreign exchange result

(330) 1,239

(172) 2,256

Gains ■ Losses ■

(1,569)

(2,428)

Result on sales of marketable securities

(135)

(140)

Net income ■ Net charges ■

7

18

(142)

(158)

Financial amortisation, provisions and impairment (5) , including:

(4,069)

(2,623)

Discount expense on employee benefits ■ Discount expense on nuclear provisions ■

(574)

(585)

(2,365)

(1,881)

Provision on investment securities - dedicated assets (6) ■

(618)

(28)

(1,756)

(988)

FINANCIAL RESULT

The change in dividends received principally concerns: (1) - Enedis (€513 million in 2018 and €659 million in 2017); - C3 (the holding company which carries EDF Investissements Groupe) (€116 million in 2018 and €334 million in 2017); - EDF International (€200 million in 2017, no equivalent in 2018), - EDF Holding (the holding company which carries EDF Trading) (€581 million in 2018, no equivalent in 2017); - PEI (€92 million in 2018 and €101 million in 2017); - EDF Immo (€130 million in 2018 and €234 million in 2017); - CTE (€157 million in 2018, €60 million in 2017); - EDEV (€926 million in 2018 (including €740 million from the sale of Dunkerque LNG – see note 2.1) and €123 million in 2017); - Dalkia (€90 million in 2018 and €13 million in 2017).

6.

In 2018, this item includes income of €46 million (€64 million in 2017) for the cost of bearing the CSPE financial receivable. (2) The decrease essentially results from changes in the unrealised foreign exchange gain or loss on currency instruments (€456 million). (3) This change mainly reflects a reversal from provisions for unrealised foreign exchange losses on perpetual bonds and long-term bonds issued by EDF, amounting (4) to €524 million and recognised at 31 December 2017, with no equivalent in 2018 (see note 27). The change mainly reflects the effect of discounting provisions for the back-end of the nuclear cycle, decommissioning and last cores, amounting to €(484) million. (5) In 2018, the discount expense on nuclear provisions increased, because the 2017/2018 decrease in the real discount rate was larger than for the comparative period 2016/2017 (the rate was 2.4% at 31 December 2018, 2.6% at 31 December 2017 and 2.7% at 31 December 2016). The change is principally due to unfavourable financial market trends in 2018. (6)

EXCEPTIONAL RESULT NOTE 14

At 31 December 2018, exceptional items result in net income of €939 million. The main items are the following: net gains of €846 million on sales of investment securities included in dedicated ■ assets, undertaken as part of operational portfolio management; net reversals of €65 million from excess tax depreciation. ■

At 31 December 2017, exceptional items resulted in net income of €1,232 million. The main items are the following: a net gain of €388 million on the sale of the CTE investment securities upon ■ completion of the RTE operation; net gains of €872 million on sales of investment securities included in dedicated ■ assets, undertaken as part of operational portfolio management; net reversals of €62 million from excess tax depreciation. ■

457

EDF I Reference Document 2018