EDF_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS Income Statement

OTHER INCOME AND EXPENSES NOTE 14 Other income and expenses amount to €1,363 million for 2017, mainly including a gain of €1,462 million on the sale of 49.9% of the Group’s investment in CTE (see note 3.4.1). Other income and expenses in 2016 mainly included income of €112 million resulting from the favourable outcome of a dispute with the Hungarian State. This

payment was ordered by the Hague Permanent Court of Arbitration following applications for compensation for loss of long-term power purchase agreements (PPAs) and reimbursement of stranded costs.

FINANCIAL RESULT NOTE 15

15.1

COST OF GROSS FINANCIAL INDEBTEDNESS

Details of the components of the cost of gross financial indebtedness are as follows:

2017

2016

(in millions of euros)

Interest expenses on financing operations

(1,869)

(1,907)

Change in the fair value of derivatives and hedges of liabilities Transfer to income of changes in the fair value of cash flow hedges

37 31 23

(11) 122 (31)

Net foreign exchange gain on indebtedness COST OF GROSS FINANCIAL INDEBTEDNESS

6.

(1,778)

(1,827)

DISCOUNT EFFECT 15.2 The cost of unwinding the discount primarily concerns provisions for the back-end of the nuclear cycle, decommissioning and last cores, and long-term and post-employment employee benefits.

This cost decreased in 2016, in line with the lower real discount rate (see note 29.1.5.1).

Details of the final discount effect are as follows:

2017 (884)

2016

(in millions of euros)

Provisions for long-term and post-employment employee benefits

(1,048) (2,278)

Provisions for the back-end of the nuclear cycle, decommissioning and last cores (1)

(1,968)

Other provisions and advances

(107)

(91)

(2,959)

(3,417)

DISCOUNT EFFECT

Including the effect of discounting the receivable corresponding to amounts reimbursable by the NLF – see note 36.3. (1)

15.3

OTHER FINANCIAL INCOME AND EXPENSES

Other financial income and expenses comprise:

2017

2016

(in millions of euros)

Financial income on cash and cash equivalents Gains/(losses) on available-for-sale financial assets

21

20

1,395

775 398 (46)

Gains/(losses) on other financial assets

295

Changes in financial instruments carried at fair value with changes in fair value included in income

(102)

Other financial expenses

(52) (41) 470 515

(263)

Foreign exchange gain/loss on financial items other than debts

43

Return on fund assets

547 437

Capitalised borrowing costs

2,501

1,911

OTHER FINANCIAL INCOME AND EXPENSES

Gains net of losses on available-for-sale financial assets include gains on disposals, interest income, and dividends.

In 2017, gains and losses on available-for-sale financial assets include net gains on sales of EDF’s dedicated assets, amounting to €985 million (€428 million in 2016).

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EDF I Reference Document 2017