EDF_REGISTRATION_DOCUMENT_2017

6.

FINANCIAL STATEMENTS Income Statement

IMPAIRMENT/REVERSALS NOTE 13 IMPAIRMENT BY CATEGORY OF ASSET 13.1

Details of impairment recognised and reversed are as follows:

Notes

2017

2016

(in millions of euros)

Impairment of goodwill

18 19

-

-

Impairment of other intangible assets

(16)

(159) (480) (639)

Impairment of tangible assets and discontinued operations

21-22-46

(502) (518)

IMPAIRMENT NET OF REVERSALS

13.2

IMPAIRMENT TESTS ON

In 2016, the €(639) million of impairment recorded concerned: thermal assets: €(269) million (principally in Poland, but also in the United ■ Kingdom and France); some of Edison’s exploration and production fields and hydropower assets: ■ €(160) million; various CGUs of EDF Énergies Nouvelles (particularly a biogas plant in the ■ United States): €(127) million; other impairment on specific assets: €(83) million. ■ Impairment of €(481) million was also booked in respect of associates (see note 23). In 2017, impairment amounts to €(518) million. Details are given below.

GOODWILL, INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT

The following tables present the results of impairment tests carried out on the main goodwill, intangible assets with indefinite useful lives and other Group assets in 2017, and some of the key assumptions used. As reported in note 3.2, the Group finalised the acquisition of 75.5% of the capital of Framatome on 31 December 2017. The assets acquired, mainly goodwill, intangible assets and property, plant and equipment, were recorded at fair value at 31 December 2017.

MPAIRMENT OF GOODWILL AND INTANGIBLE ASSETS WITH INDEFINITE USEFUL LIVES

Impairment 2017 (in millions of euros)

Cash-Generating Unit or asset EDF Energy goodwill

Net book value (in millions of euros)

Growth rate to infinity

Operating segment

WACC after tax

United Kingdom

7,586

6.3%

-

- -

Italy

Edison brand Dalkia goodwill Dalkia brand

945 536 130

6.4% - 9.1%

2.0% 1.5% 1.5%

4.6% 5.1%

Other activities

-

Other impairment of goodwill

Specific assets – France

-

-

-

(16) (16)

IMPAIRMENT OF GOODWILL AND INTANGIBLE ASSETS WITH INDEFINITE USEFUL LIVES

IMPAIRMENT OF OTHER INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT

Impairment 2017 (in millions of euros)

Cash-Generating Unit or asset

Operating segment

Impairment indicators

WACC after tax

Coal-fired plants Gas storage Real estate asset

Fall in clean dark spreads and early shutdown decision Persistently low price volatility

United Kingdom

6.0%-6.3%

(246)

Edison assets (Power and E&P) EDF Énergies Nouvelles CGU Real estate assets Hydropower projects

Italy

Decline in the Euro-dollar exchange rate

4.8% - 10.3%

(150)

Other activities

3.8% - 13.0%

(29)

France – Specific assets

(57) (20)

Other impairment

(502)

IMPAIRMENT OF OTHER INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT

338

EDF I Reference Document 2017