EDF_REGISTRATION_DOCUMENT_2017

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

Net capex Net capital expenditure amounted to €13,607 million in 2017, down by €282 million (-2.0%) from 2016. Changes in the Group’s net capital expenditure over the period were as follows:

Variation (%)

2017

2016 Variation

(in millions of euros)

France - Generation and supply activities

5,813 3,995 2,386

5,745 3,770 1,911

68

+1.2 +6.0

France - Regulated activities

225 475

United Kingdom

+24.9 -55.2 -37.3 -41.0

Italy

182 309 922

406 493

(224) (184) (642) (282)

Other international

Other activities

1,564 13,889

13,607

-2.0

NET CAPEX

Capital expenditure is one of the components of net investments for which details are given in section 5.1.5.2 “Net indebtedness”. Acquisitions/disposals of equity investments, net of cash acquired/transferred New investments in 2017, net of cash acquired, increased by €2,336 million from 2016 to €2,463 million. The major investment was the acquisition of 75.5% of Framatome for €1,868 million.

Disposals of investments, net of cash transferred, were up by €2,100 million in 2017 to €2,472 million. The main disposal was the sale of 49.9% of CTE for €1,282 million. Changes in financial assets The change in financial assets in 2017 was an increase of +€1,885 million, principally corresponding to sales of liquid assets (other than dedicated assets). The overall change in financial assets in 2016 was -€2,913 million, mainly reflecting the acquisition of liquid assets and the assignment of the portion of the CSPE receivable that was not allocated to dedicated assets (see section 5.1.6.1.6 “Management of financial risk on EDF’s dedicated asset portfolio”).

5.

Net cash flow from financing activities 5.1.5.1.1.3

Variation (%)

2017

2016 Variation

(in millions of euros) EDF capital increase

4,005

-

4,005 (887)

+100.0

Transactions with non-controlling interests (1)

481

1,368 (165) (289)

-64.8 -33.9 -36.7

Dividends paid by parent company

(109) (183)

56

Dividends paid to non-controlling interests

106

Purchases/sales of treasury shares Cash flows with shareholders

(6)

(2)

(4)

+200.0 +359.2

4,188 2,901

912

3,276

Issuance of borrowings Repayment of borrowings

9,424

(6,523)

-69.2 +2.1 -2.9 +0.7 -16.5

(6,304)

(6,176)

(128)

Issuance of perpetual subordinated bonds

(565)

(582)

17

Funding contributions received for assets operated under concessions

144 348

143 417

1

Investment subsidies

(69)

Other cash flows from financing activities NET CASH FLOW FROM FINANCING ACTIVITIES

(3,476)

3,226 4,138

(6,702) (3,426)

-207.7

712

-82.8

Contributions via capital increases and reductions and acquisitions of additional interests in controlled companies. (1)

Cash flows related to financing activities generated a net inflow of €712 million in 2017, a decrease of €3,426 million from 2016. This change primarily reflects the following: EDF's capital increase of €4,005 million; ■ a decrease of €887 million from transactions with non-controlling investments. ■ In 2017 these transactions include an amount of €501 million for CGN's

contribution to the Hinkley Point C capital increases. In 2016, transactions with non-controlling interests included an amount of €830 million received on the sale to CGN of 33.5% of Hinkley Point C (HPC) Holding Co and 20% of Sizewell C Holding Co, and an amount of €469 million concerning CGN’s contribution to the capital increases by Hinkley Point C and Sizewell C.

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EDF I Reference Document 2017