EDF / 2018 Reference document

6.

FINANCIAL STATEMENTS Other information

Valuation of EDF's dedicated assets 38.2.3 Dedicated assets are classified in the balance sheet according to their accounting nature: investments, investment securities, and marketable securities. They are valued under the accounting principles presented in note 1.

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

Details of the portfolio at 31 December 2018 are as follows:

31/12/2018

31/12/2017

Net book value Realisable value

Net book value Realisable value

(in millions of euros)

Investment in CTE (the Company that owns RTE) (1)

2,705

2,738

2,705

2,705

Investment Securities (2) Other financial investments

20,136

20,830

17,825

19,717

2,156

2,385

2,063

2,314

Dedicated assets - Investments

24,997

25,953

22,593

24,736

CSPE receivable (3)

2,060

2,080

3,294

3,349

Total dedicated assets before hedging

27,057

28,033

25,887

28,085

Hedging instruments and other (2)

(369)

(344)

-

30

TOTAL DEDICATED ASSETS AFTER HEDGING (4) 28,115 EDF’s investment of 50.1% of CTE, the company that holds 100% of the shares in RTE. The realisable value of CTE at 31 December 2018 in the above table has (1) 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 €391 million of securities acquired in late December 2018 for which payment was made in early January 2019. (2) The receivable consisting of accumulated shortfalls in compensation at 31 December 2015, less the portion assigned on 22 December 2016 and reimbursements (3) received since then, in line with the repayment schedule. The realisable value of the CSPE receivable is estimated based on market rates. Limiting the value of certain investments in compliance with Article 16 of Decree 2007-243 concerning calculation of the regulatory realisable value of dedicated (4) assets has no effect at 31 December 2017 or 2018. 26,688 27,689 25,887

Net book value and fair value include unmatured accrued interest.

38.2.4

Coverage of long-term nuclear

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. ■

obligations At 31 December 2018, nuclear provisions are 98.3% covered by dedicated assets (108.5% 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.

The long-term nuclear obligations concerned by the regulations for dedicated assets related to nuclear generation are included in EDF’s 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 Provision for removal and conditioning of waste

8,814

751

726

Provisions for nuclear plant decommissioning

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 €540 million in 2019 and 2020, and €257 million in 2021. Including the allocation calculate long-term nuclear provisions, particularly the change in the discount rate, to be made in 2019 for 2018, all other things being equal, the coverage rate at the required allocation to dedicated assets for 2018 amounts to €1,337 million. The 31 December 2018 would be 100.2%. administrative authorities authorised EDF to spread this allocation as follows:

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EDF I Reference Document 2018