EDF_REGISTRATION_DOCUMENT_2017

5.

THE GROUP'S PERFORMANCE IN 2017 AND FINANCIAL OUTLOOK Operating and financial review

5.1

OPERATING AND FINANCIAL REVIEW

KEY FIGURES 5.1.1 Pursuant to European regulation no. 1606/2002 of 19 July 2002 on the adoption of international accounting standards, the EDF group’s consolidated financial statements for the year ended 31 December 2017 are prepared under the international accounting standards published by the IASB and approved by the European Union for application at 31 December 2017. These international standards are IAS (International Accounting Standards), IFRS (International Financial Reporting Standards), and SIC and IFRIC interpretations.

The Group’s accounting policies are presented in note 1 to the consolidated financial statements for the year ended 31 December 2017. The figures presented in this document are taken from the EDF group’s consolidated financial statements at 31 December 2017. The Group’s key figures for 2017 are shown in the following tables.

EXTRACT FROM THE CONSOLIDATED INCOME STATEMENT

Organic growth (%)

Variation (%)

2017

2016 Variation

(in millions of euros)

Sales

69,632 13,742

71,203 16,414

(1,571) (2,672) (1,877)

-2.2

-1.0

Operating profit before depreciation and amortisation (EBITDA)

-16.3 -25.0 -18.7 +11.3 -31.0

-14.8 -23.2 -15.5 +13.7

Operating profit (EBIT)

5,637 3,401 3,173 2,820

7,514 4,181 2,851 4,085

Income before taxes of consolidated companies

(780)

EDF net income

322

Net income excluding non-recurring items (1) -29.3 Net income excluding non-recurring items is not defined by IFRS, and is not directly visible in the consolidated income statement. It corresponds to the net income (1) excluding non-recurring items and the net change in fair value on energy and commodity derivatives, excluding trading activities, net of tax (see section 5.1.4.9 “Net income excluding non-recurring items”). (1,265)

FROM EDF NET INCOME TO NET INCOME EXCLUDING NON-RECURRING ITEMS (in millions of euros)

2017

2016

EDF net income

3,173

2,851

Gain on sale of 49.9% of the Group’s investment in CTE (1)

(1,289)

-

Other items, including net changes in fair value on energy and commodity derivatives, excluding trading activities

(94)

233

Impairment

1,030 2,820 (565) 2,255

1,001 4,085 (582) 3,503

NET INCOME EXCLUDING NON-RECURRING ITEMS Payments to bearers of perpetual subordinated bonds

NET INCOME EXCLUDING NON-RECURRING ITEMS, ADJUSTED FOR PAYMENTS ON HYBRID BONDS The Company that holds 100% of RTE (an independent EDF subsidiary as defined in the French Energy Code). (1)

EXTRACT FROM THE CONSOLIDATED BALANCE SHEET (in millions of euros)

31/12/2017

31/12/2016

Non-current assets

156,899 37,549 63,649 22,655

147,626 37,397 66,238 25,159 5,220 (1) 281,640 34,438 45,692 74,966 61,230 56,281 2,109 (2) 281,640 6,924

Inventories and trade receivables

Other assets

Cash and cash equivalents, other liquid assets, and loans to joint ventures

Assets held for sale TOTAL ASSETS Equity (EDF’s share)

-

280,752 41,357

Equity (non-controlling interests)

7,341

Special concession assets

46,323 76,857 55,670 53,204

Provisions

Loans and other financial liabilities

Other liabilities

Liabilities related to assets classified as held for sale

-

280,752

TOTAL EQUITY AND LIABILITIES

Including €104 million of financial assets impacting net indebtedness (see below). (1) Including €1,458 million of financial liabilities impacting net indebtedness (see below). (2)

260

EDF I Reference Document 2017