EDF_REGISTRATION_DOCUMENT_2017

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

Income taxes 5.1.4.5 Income taxes amounted to €147 million in 2017, €1,241 million less than in 2016. This decrease reflects the Group's lower consolidated income before taxes in 2017, but also results from sales of investments that benefit from reduced-rate taxation, the favourable outcome in France of challenges to the 3% contribution on dividend distributions, and the lower corporate income tax rates in the United States and Belgium. Share in net income of associates and 5.1.4.6 joint ventures The Group’s share in net income of associates and joint ventures was a positive €35 million in 2017, compared to €218 million in 2016. This change results primarily from the smaller contribution from RTE after 49.9% of the Company was sold on 31 March 2017. The share in net income of associates in 2017 includes impairment totalling €618 million. Details of this impairment are given in note 23 to the 2017 consolidated financial statements “Investments in associates and joint ventures”.

Net income attributable 5.1.4.7

to non-controlling interests Net income attributable to non-controlling interests amounted to €116 million in 2017, €44 million less than in 2016. This change is essentially explained by the decrease in Centrica’s revenues from nuclear generation activities in the United Kingdom , due to lower market prices for electricity. EDF net income 5.1.4.8 EDF net income totalled €3,173 million for 2017, up by €322 million (+11.3%) from 2016. Net income excluding non-recurring 5.1.4.9 items The Group’s net income excluding non-recurring items (1) stood at €2,820 million for 2017, down by 31.0% from 2016.

5.

Group net income excluding non-recurring items and net changes in fair value on Energy and Commodity derivatives, excluding trading activities, net of tax. (1) Non-recurring items and net changes in fair value on Energy and Commodity derivatives, excluding trading activities, net of tax: +€617 million for miscellaneous risks and impairment in 2017 (including a €1,289 million gain on the sale of 49.9% of CTE), compared to -€1,039 million in 2016; -€264 million of net changes in fair value on Energy and Commodity derivatives, excluding trading activities, net of tax in 2017, compared to -€195 million in 2016.

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EDF I Reference Document 2017