EDF / 2019 Universal registration document

6. Financial statements

Notes to the consolidated financial statements

The breakdown of provisions by company is shown below:

EDF

EDF Energy

Belgium

Total

Note 32.1

Note 32.2

(in millions of euros)

Provisions for spent fuel management

10,823

1,503

- -

12,326

Provisions for waste removal and conditioning

805

532

1,337

Provisions for long-term radioactive waste management PROVISIONS FOR THE BACK-END OF THE NUCLEAR CYCLE AT 31/12/2019 Provisions for the back-end of the nuclear cycle at 31/12/2018

10,531

1,053

7

11,591

22,159 21,295 16,937

3,088 2,576

7 6

25,254 23,877 27,609

Provisions for nuclear plant decommissioning

10,303

369

Provisions for last cores

2,624

1,892

-

4,516

PROVISIONS FOR DECOMMISSIONING AND LAST CORES AT 31/12/2019 Provisions for decommissioning and last cores at 31/12/2018 Details of nuclear provisions in France and the United Kingdom are provided in notes 32.1 and 32.2 respectively. In Belgium, the Belgian law of 11 April 2003 assigned management of provisions concerning the Belgian nuclear plants, and the funds that cover them, to Synatom (a subsidiary of the Engie Group). Luminus contributes via Synatom to these funds, to cover its share of plant decommissioning and back-end nuclear fuel expenses as a co-owner of 4 nuclear plants. These funding mechanisms are reflected through the following items in the consolidated financial statements: obligations presented in the liabilities in the form of provisions, amounting to ■ €259 million at 31 December 2019 (€209 million at 31 December 2018); a receivable representing the advance payments made to Synatom, recognised in ■ the consolidated balance sheet assets as financial assets carried at fair value (see note 39.3) at the value of €230 million at 31 December 2019 (€203 million at 31 December 2018). This receivable, which corresponds to the fair value of the share of funds held by Synatom on behalf of Luminus, is discounted by applying the same real discount rate used to determine the obligations they will cover.

19,561 18,511

12,195

369 301

32,125 27,144

8,332

32.1

Nuclear provisions in France

In France, the provisions established by EDF SA for the nuclear generation fleet result from the Law of 28 June 2006 on long-term management of radioactive materials and waste, and the associated implementing provisions concerning secure financing of nuclear expenses. In compliance with the accounting principles described in note 1.3.2.2: EDF books provisions to cover all obligations related to the nuclear facilities it ■ operates; EDF holds dedicated assets for secure financing of long-term obligations (see ■ note 48). The calculation of provisions incorporates a level of risks and unknowns as appropriate to the operations concerned. The valuation of costs carries uncertainty factors such as: changes in legislation, particularly regarding safety, security and environmental ■ protection, and financing of long-term nuclear expenses; changes in the regulatory decommissioning process and the time necessary for ■ issuance of administrative authorisation; future methods for storing long-lived radioactive waste and provision of storage ■ facilities by the French agency for radioactive waste management ANDRA (Agence nationale pour la gestion des déchets radioactifs); changes in certain financial parameters such as discount rates, notably in view of ■ the regulatory limits, inflation rates, or changes in the contractual terms of spent fuel management.

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EDF | Universal registration document 2019

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