EDF_REGISTRATION_DOCUMENT_2017

6.

FINANCIAL STATEMENTS Income Statement

and the expected rate of return on assets covering the liability (dedicated ■ assets). The ceiling rate based on the TEC 30-year rate is 4.1% at 31 December 2017 (4.3% at 31 December 2016). The discount rate used at 31 December 2017 is 4.1% Analyses of sensitivity to 29.1.5.2 macro-economic assumptions Sensitivity to assumptions concerning costs, inflation rate, long-term discount rate, and disbursement schedules can be estimated through comparison of the gross amount estimated under year-end economic conditions with the present value of the amount.

Regulatory discount rate limit The discount rate applied must also comply with two regulatory limits. Under the amended decree of 23 February 2007 and the ministerial order of 21 March 2007, itself modified by the order of 29 December 2017, the discount rate must be lower than: a regulatory maximum, set until 31 December 2026 as the weighted average of ■ two terms, the first set at 4.3%, and the second corresponding to the arithmetic average over the 48 most recent months of the TEC 30-year rate plus 100 points. The weighting given to the first constant term of 4.3% reduces on a straight-line basis from 100% at 31 December 2016 to 0% at 31 December 2026;

31/12/2017

31/12/2016

Costs based on year-end economic conditions

Amounts in provisions at present value

Costs based on year-end economic conditions

Amounts in provisions at present value

(in millions of euros)

Spent fuel management

19,058

10,786

18,460

10,658

Waste removal and conditioning

1,203

726

-

-

Long-term radioactive waste management BACK-END NUCLEAR CYCLE EXPENSES

29,396 49,657 20,563 6,472 4,332 31,367

8,814

29,631 48,091 20,185 6,431 4,344 30,960

8,966

20,326 11,616 3,304 2,387 17,307

19,624 10,889 3,223 2,287 16,409

Decommissioning provisions for nuclear plants in operation Decommissioning provisions for shut-down nuclear plants

Provisions for last cores

DECOMMISSIONING AND LAST CORE EXPENSES

This approach can be complemented by estimating the impact of a change in the discount rate on the present value.

In application of Article 11 of the Decree of 23 February 2007, the following table reports these details for the main components of provisions for the back-end of the nuclear cycle, decommissioning of nuclear plants and last cores:

AT 31 DECEMBER 2017:

Sensitivity to discount rate

Amounts in provisions at present value

Balance sheet provisions

Pre-tax net income

+0.20%

-0.20%

+0.20%

-0.20%

(in millions of euros)

Back-end nuclear cycle expenses: Spent fuel management ■ Waste removal and conditioning ■

10,786

(221)

238

190

(206)

726

(22)

24

13

(14)

Long-term radioactive waste management ■ Decommissioning and last core expenses: Decommissioning of nuclear plants in operation ■ Decommissioning provisions for shut-down ■ nuclear plants

8,814

(497)

562

407

(464)

11,616

(477)

501

7

(7)

3,304 2,387 37,633

(125)

135

125

(135)

Last cores ■

(85)

90

-

-

(1,427)

1,550

742

(826)

TOTAL

AT 31 DECEMBER 2016:

Sensitivity to discount rate

Amounts in provisions at present value

Balance sheet provisions

Pre-tax net income

+0.20%

-0.20%

+0.20%

-0.20%

(in millions of euros)

Back-end nuclear cycle expenses: Spent fuel management ■

10,658

(211) (475)

227 534

182 381

(195) (432)

Long-term radioactive waste management ■ Decommissioning and last core expenses: Decommissioning of nuclear power plants ■

8,966

14,122 2,287 36,033

(586)

619

127

(138)

Last cores ■

(85)

90

-

-

(1,357)

1,470

690

(765)

TOTAL

364

EDF I Reference Document 2017