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6.

FINANCIAL STATEMENTS Notes to the consolidated financial statements

Previously, the 49.9% share of CTE’s balance sheet items due to be sold was classified as assets and liabilities held for sale at 31 December 2016. Following this operation, EDF’s 50.1% investment in CTE, stated at historic value, is accounted for under the equity method and entirely allocated to the dedicated asset portfolio. assets to PGE On 13 November 2017, EDF finalised the disposal of EDF Polska’s assets (heat and electricity cogeneration, and electricity generation) (1) to PGE Polska Grupa Energetyczna SA (2) . This operation followed the issuance of all regulatory approvals and authorisations required under the sale agreement signed between EDF and PGE on 19 May 2017. The transaction was based on a valuation of approximately 6.1 billion zlotys (€1.4 billion (3) ) (4) for 100% of EDF Polska. It contributes to a €1.0 billion reduction in the EDF group’s net indebtedness. This transaction has no significant effect on the Group’s income statement. The EDF Polska business assets concerned were classified as assets and liabilities held for sale at 31 December 2016. 3.4.3 On 31 January 2017, EDF and ENKSZ finalised the sale of the total capital of EDF Démász, following approval of the operation by the Hungarian energy sector regulator and the French Ministry for the Economy. The transaction valued EDF’s 100% stake in EDF Démász at approximately €400 million, and had no significant effect on the Group’s income statement. trading business Following the contractual agreements signed on 21 December 2016 with JERA Trading Singapore (“JERA TS”), in April 2017 EDF Trading acquired one third of the shares in the new trading company (“JERA Trading”), to which it sold several assets related to its coal business during the year 2017, with further sales due to take place in the near future. This operation has no significant effect on the Group’s income statement at 31 December 2017. Completion of the sale of EDF Polska’s 3.4.2 Sale of 100% of EDF Démász Zrt. EDF Trading and JERA: Sale of the coal 3.4.4 ISSUE On 20 January 2017, EDF raised ¥137 billion, i.e. around €1.1 billion, through 4 senior bond issues on the Japanese market (“Samurai bonds”) with maturities of 10 years and more: ¥107.9 billion bond, with a 10-year maturity and a fixed coupon of 1.088%; ■ ¥19.6 billion green bond, with a 12-year maturity and a fixed coupon of ■ 1.278%; ¥6.4 billion green bond, with a 15-year maturity and a fixed coupon of 1.569%; ■ ¥3.1 billion bond, with a 20-year maturity and a fixed coupon of 1.870%. ■ ¥137 BILLION SAMURAI BOND 3.5

With the issuance of two green tranches totalling ¥26 billion dedicated to financing its renewable investments, EDF opened the Samurai green bond market, continuing its active contribution to the development of green bonds as financing instruments for the energy transition.

3.6

UNCONSTITUTIONALITY OF THE 3% CONTRIBUTION ON DIVIDEND DISTRIBUTIONS

The contribution on dividend distributions introduced in France in 2012, amounting to 3% of the amounts distributed, is a tax on companies that make cash distributions. After legal challenges, the Constitutional Council ruled on 6 October 2017 that this contribution was unconstitutional because it is contrary to the principle of equality before the law and public charges, since it created differences in tax treatment on the sole basis of the origin (and nature) of the profits distributed. The EDF group filed claims for refunds of €220 million for the years 2013 to 2017, and in 2017 it recognised a tax receivable of €255 million for the companies concerned, including €35 million of interest on arrears. At 31 December 2017, the Group received a partial refund of these claims from the state, totalling €235 million.

3.7

SIGNIFICANT EVENTS AND TRANSACTIONS OF 2016

3.7.1

Extension to 50 years of the

depreciation period of the 900MW PWR series in France (5)

In 2016, the Group considered that all the technical, economic and governance conditions necessary to bring the depreciation periods of its 900MW PWR power plants in France into line with its industrial strategy were fulfilled. In view of studies and work completed, particularly concerning replacement of components and controlled equipment ageing, the Group had sufficient assurance of the plants’ technical capacity to operate for at least 50 years. This was also confirmed by the international benchmark. The Group also made progress with the Nuclear Safety Authority (Autorité de sûreté nucléaire (ASN)) on the question of the content of the fourth 10-year inspections of this series as part of the Grand carénage overhaul programme. Although some points remained to be finalised, the components of these inspections were in a convergence process with the ASN. This was demonstrated by the Re-examination Orientation File response sent by the ASN to EDF in April 2016, in which the ASN stated its agreement with the Company’s chosen themes and commitments for these inspections. This was an important step in the process, giving EDF secure grounds for industrial preparations for the 10-year inspections. Once its fourth 10-year inspections are completed, the 900MW PWR series will have reached a level of safety that is both as close as possible to EPR safety level and one of the highest worldwide.

The transaction concerned the Rybnik generation plant, the coal cogeneration plants of Krakow, Czechnica, Gdansk, Gdynia, Torun and Wroclaw, and the gas fired cogeneration (1) plants of Zawidawie and Zielona Gora. These power plants have a total installed capacity of 4.4GWhth and 1.4GWhe. The transaction also included the heat distribution networks of Czechnica, Torun, Zawidawie and Zielona Gora. The Wroclaw plant, the cogeneration plants and heat distribution networks of Czechnica, Zawidawie and Zielona Gora were held indirectly through a 50% + 1 share stake via Kogeneracja. PGE is owned 58% by the Polish state and is the country’s largest electricity producer. (2) As of 31 December 2016. (3) Representing 4.9 billion zlotys (approximately €1.1 billion) after deduction of minority interests. (4) Except for Fessenheim (5)

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