EDF / 2019 Universal registration document

6. Financial statements Financial statements

Other operating expenses Note 12

Other operating expenses amount to €2,241 million in 2019 (€1,743 million year, and the net book value of assets demolished or scrapped. The change in other in 2018) and notably include losses on non-recoverable receivables, royalties on operating expenses in 2019 is attributable in particular to the rise in costs software, costs relating to energy savings certificates used or consumed over the associated with energy savings certificates.

Financial result Note 13

a breakdown of the “Interest and similar income and expenses” is provided to ■ show the cost of debt; gains and losses on sales of marketable securities are reported as a net result, ■ due to their relative financial importance; reversals from provisions, impairment and transfers of charges are included in the ■ increases/decreases to provisions and transfers of charges due to their similar natures.

EDF has changed the presentation of its financial result to make it clearer and more intelligible. This change is applied retrospectively to the comparative figures for 2018, with the following consequences: unrealised and realised gains and losses are all reported on a single line “Foreign ■ exchange result”, to provide an overall view in line with the changes in ANC 2015 regulations on forward instruments and hedging operations;

2019

2018

(in millions of euros)

Income from investments  (1)

1,427

2,804

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

757

607

Interest and similar income and expenses:

(1,483)

(1,590)

Expenses on long-term financial liabilities after hedging ■

(1,822)

(1,887)

Other ■

339

297

Foreign exchange result

(145)

312

Gains and losses on sales of marketable securities

(70)

(135)

Increases/Decreases in provisions and transfers of charges:

(2,187)

(3,754)

Discount expense on employee benefits ■ Discount expense on nuclear provisions  (3) ■ Provision on investment securities  (4) ■

(614)

(574)

(1,988)

(2,365)

550 485

(604)

Reversals from provisions, impairment and transfers of charges: ■

301

FINANCIAL RESULT

(1,701)

(1,756)

The change in dividends received principally concerns: (1) - Enedis (€556 million in 2019 and €513 million in 2018);

- C3 (the holding company which carries EDF Investissements Groupe) (€156 million in 2019 and €116 million in 2018); - EDF Holding (the holding company which carries EDF Trading) (€581 million in 2018, no equivalent in 2019); - PEI (€88 million in 2019 and €92 million in 2018); - EDF Immo (€241 million in 2019 and €130 million in 2018); - CTE (€157 million in 2019 and 2018); - EDEV (€38 million in 2019 and €926 million in 2018 including €740 million from the sale of Dunkerque LNG);

- Dalkia (€90 million in 2018, no equivalent in 2019); - Framatome (€36 million in 2019, no equivalent in 2018). In 2019, this item includes income of €24 million (€46 million in 2018) for the cost of bearing the CSPE financial receivable. (2) In 2019, the discount expense on nuclear provisions decreased, because the year-on-year decrease in the real discount rate was smaller than the previous year (3) (the rate was 2.3% at 31 December 2019, 2.4% at 31 December 2018 and 2.6% at 31 December 2017). The change is principally due to favourable financial market trends in 2019, compared to unfavourable trends in 2019, mainly at the end of the year. (4)

Exceptional result Note 14

At 31 December 2019, exceptional items result in net income of €547 million. The main items are the following: net gains of €619 million on sales of investment securities included in dedicated ■ assets, undertaken as part of operational portfolio management; net reversals of €144 million from excess tax depreciation. ■

At 31 December 2018, exceptional items resulted in net income of €939 million. The main items were 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. ■

422

EDF | Universal registration document 2019

www.edf.fr