EDF / 2018 Reference document

6.

FINANCIAL STATEMENTS Other information

36.3

OTHER TYPES OF COMMITMENT

Financing commitments 36.1.4 These are commitments by EDF to its subsidiaries, in 2018 mainly €2,060 million to EDF Trading, €980 million to EDF Renewables, €929 million to Edison, €805 million to EDF International, €800 million to Enedis and €750 million to EDF Energy.

Electricity supply commitments 36.3.1 In the course of its business, EDF 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. 36.3.2 Gas purchase commitments are given by EDF in connection with its expanding gas supply business. Gas purchases for supply, delivery and storage are mostly undertaken through long-term contracts and forward purchases from EDF Trading. Under the contract with the Dunkerque LNG methane terminal, EDF benefits from approximately 61% of the terminal’s regasification capacities until 2037, in return for payment of an annual premium of approximately €150 million. A provision for onerous contracts has been recorded in connection with this contract – see note 2.1. Gas purchases and related services

36.2

COMMITMENTS RECEIVED

Operating commitments 36.2.1 These commitments mainly comprise: operating lease commitments received as lessor; ■ operating guarantees received; ■ operating sale commitments, essentially concerning engineering services for HPC; ■ personnel secondment commitments to Edvance. ■ Financing commitments 36.2.2 These commitments correspond to the total value of credit lines available to EDF from various banks.

CONTINGENT LIABILITIES NOTE 37 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 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.

litigations EDF is party to a number of labour lawsuits, primarily regarding working hours. EDF estimates that none of these lawsuits, individually, is likely to have a significant impact on its financial results or financial position. However, because they relate to situations that could concern a large number of EDF’s employees, any increase in such litigations could have a potentially negative impact on EDF’s financial position (although the risk has been mitigated by the signature of the agreement on fixed numbers of working days in 2016).

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EDF I Reference Document 2018