EDF / 2019 Universal registration document

6. Financial statements Financial statements

Provisions for risks Note 27

Increases

Decreases

31/12/2019

31/12/2018

Operating  (3)

Financial

Utilisations  (1) (3)

Reversals (3)

Financial

Other

(in millions of euros)

Provisions for unrealised exchange losses  (2) Provisions for losses on contracts Provisions for other risks PROVISIONS FOR RISKS

767

108

-

(107)

-

768

1,446

427 229 656

39

(285) (216) (501)

(11) (40) (51)

- -

- - -

1,616

331

-

304

2,544

147

(107)

2,688

The €285 million of reversals from provisions for losses on contracts mainly relate to the long-term contract with Dunkerque LNG (€184 million). (1) The €768 million of provisions for unrealised exchange losses at 31 December 2019 mainly concern losses on hybrid bonds. (2) See notes 6 and 11.2. (3)

Provisions related to nuclear generation – Back-end of the Note 28 nuclear cycle, plant decommissioning and last cores

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 authorisations; 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. Details of changes in provisions for the back-end of the nuclear cycle, decommissioning and last cores are as follows:

The provisions established by EDF 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 1.15: 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 38). The calculation of provisions incorporates a level of risks and unknowns that depend on the operations concerned. The valuation of costs also carries uncertainty factors such as:

Other changes  (2)

Increases

Decreases

31/12/2019

31/12/2018

Operating  (3)

Financial  (1)

Utilisation  (3)

Reversals  (3)

(in millions of euros)

Provisions for spent fuel management Provisions for removal and conditioning of waste Provisions for long-term radioactive waste management Provisions for the back-end of the nuclear cycle Provisions for nuclear plant decommissioning Provisions for decommissioning and last cores TOTAL PROVISIONS RELATED TO NUCLEAR GENERATION Provisions for last cores

10,698

535

515

(823)

(67)

(35)

10,823

751

29

36

(29)

-

18

805

9,846

160

650

(232)

-

107

10,531

21,295

724

1,201

(1,084)

(67)

90

22,159

15,985

105

694

(141)

- -

294

16,937

2,526

-

97

-

1

2,624

18,511

105

791

(141)

-

295

19,561

39,806 41,720 (1) The discount effect comprises the €1,543 million cost of unwinding the discount, and the effects of the change of real discount rate in 2019, recognised via the income statement for provisions with no related assets (€449 million) (cost of unwinding the discount). (2) Other changes mainly include the effects of the change of real discount rate at 31 December 2019 for provisions with related assets (€361 million). (3) See notes 6 and 11.2. 829 1,992 (1,225) (67) 385

433

EDF | Universal registration document 2019