EDF_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS Income Statement

INCOME STATEMENT

SALES NOTE 7

Sales are comprised of:

2017

2016

(in millions of euros)

Sales of energy and energy-related services

66,835

68,128 2,051 1,024 71,203

Other sales of goods and services

2,193

Trading SALES

604

69,632

After elimination of changes in foreign exchange rates and the scope of consolidation, the downturn observed in 2017 (-1.0%) is principally attributable to lower sales in Italy, partly offset by higher sales in France. In Italy, sales declined due to the lower volumes of electricity and gas sold, especially on the wholesale markets, although there was no significant impact on the margin.

In France, generation and supply activities registered a rise in sales in 2017 reflecting high ARENH subscriptions in 2017 (82.1TWh) whereas 2016 had no subscriptions. This rise is partly offset by the effects of retroactive adjustments to regulated sales tariffs for the period 1 August 2014 to 31 July 2015, recorded in 2016 in the amount of €1,030 million, which had no equivalent in 2017.

6.

FUEL AND ENERGY PURCHASES NOTE 8

Fuel and energy purchases comprise:

2017

2016

(in millions of euros)

Fuel purchases used – power generation

(12,473) (16,723) (8,968)

(12,639) (14,805) (9,017)

Energy purchases

Transmission and delivery expenses Gain/loss on hedge accounting

80

(110)

(Increase)/decrease in provisions related to nuclear fuels and energy purchases

443

521

(37,641)

(36,050)

FUEL AND ENERGY PURCHASES

Fuel purchases used include costs relating to raw materials for energy generation (coal, biomass, oil, propane, fissile materials, nuclear fuels and gas), purchases of services related to the nuclear fuel cycle, and costs associated with environmental schemes (mainly greenhouse gas emission rights and renewable energy certificates).

Energy purchases include energy generated by third parties, incorporating energy derived from cogeneration intended for resale. The increase in energy purchases is principally explained by the sourcing of ARENH subscriptions in France as nuclear power output was declining. This increase was partly counterbalanced by a decline in purchases in Italy, in line with the change in sales.

OTHER EXTERNAL EXPENSES NOTE 9

Other external expenses comprise:

2017

2016

(in millions of euros) External services

(11,678) (2,706)

(11,177) (2,486)

Other purchases (excluding external services, fuel and energy)

Change in inventories and capitalised production

5,485

4,728

(Increase)/decrease in provisions on other external expenses

160

33

(8,739)

(8,902)

OTHER EXTERNAL EXPENSES

After elimination of changes in foreign exchange rates and the scope of consolidation, other external expenses declined by around -3.1% from 2016, mainly in the France – Generation and Supply segment.

335

EDF I Reference Document 2017