EDF / 2018 Reference document

FINANCIAL STATEMENTS Other information

Changes in dedicated assets in 2018 38.2.5 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 38.2). 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. These new investments have been added to the infrastructure 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

RELATED PARTIES NOTE 39

39.1

RELATIONS WITH SUBSIDIARIES

EDF's receivables (1)

EDF's liabilities (1)

Trade receivables

Net liabilities included in current account

Trade liabilities

Financial expenses

Financial income (excluding dividends)

Loans

(in millions of euros) Companies CTE (formerly C25)

6.

313 140 128

89

0 4 2

Framatome EDF Energy

449 135

EDF Renewables EDF Energy UK LTD EDF International

1,063

10

2

6,404

119

EDF Trading

1,195

1,143

5 2 4

Edison Enedis

70

502

88

1,643

Dalkia France Groupe PEI

1,325

143

34 18

788

Citelum

2

Current account (2)

3,213

Investment for agreement for liquidities of subsidiaries Group cash management agreement with subsidiaries (3) Tax consolidation agreement

1,331

(10)

8,250

(5)

1,507

Receivables and payables of more than €50 million. (1) Including €1,742 million concerning Enedis. (2) Including €2,993 million concerning C3, €2,084 million for EDF Trading and €979 million for EDEV. (3)

39.2

RELATIONS WITH THE FRENCH STATE AND STATE-OWNED ENTITIES

Relations with the French State 39.2.1 The French State holds 83.67% of the capital of EDF at 31 December 2018, and is thus entitled in the same way as any majority shareholder to control decisions that require approval by the shareholders. In accordance with the legislation applicable to all companies having the French State as their majority shareholder, EDF is subject to certain inspection procedures, in particular economic and financial inspections by the State, audits by the French Court of Auditors (Cour des Comptes) or Parliament, and verifications by the French General Finance Inspectorate (Inspection générale des finances). The public service contract between the French State and EDF was signed on 24 October 2005. This contract is intended to form the framework for public service

missions assigned to EDF by the lawmaker for an unlimited period. The Law of 9 August 2004 does not stipulate the duration of the contract. EDF, like other electricity producers, also participates in implementation of the multi-year energy programme established by the Decree of 27 October 2016, which defines objectives for generation and load shedding. Finally, the French State intervenes through the regulation of electricity and gas markets, particularly for authorisation to build and operate generation facilities, establishment of sales tariffs for customers that have stayed on the regulated tariffs, transmission and distribution tariffs, and also determination of the ARENH price in accordance with France’s Energy Code, and the system for compensation of public service charges.

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EDF I Reference Document 2018