EDF_REGISTRATION_DOCUMENT_2017

6.

FINANCIAL STATEMENTS Cash flows and other information

Operating lease commitments as lessee 44.1.1.3 At 31 December 2017, operating lease commitments as lessee break down as follows:

31/12/2017 31/12/2016

Maturity

Total 4,238

< 1 year

1-5 years

> 5 years

Total 3,631

(in millions of euros)

748

1,923

1,567

OPERATING LEASE COMMITMENTS AS LESSEE

The Group is bound as lessee by irrevocable operating lease contracts, principally for

to renegotiation at intervals defined in the contracts. Operating leases mainly

premises, equipment, land and vehicles used in the course of its business and concern EDF, EDF Énergies Nouvelles and Enedis. maritime freight contracts for trading activities. The corresponding rents are subject

Investment commitments given 44.1.2 At 31 December 2017, details of investment commitments are as follows:

31/12/2017 31/12/2016

Maturity

< 1 year

1-5 years

> 5 years

Total

Total

(in millions of euros)

Commitments related to acquisition of tangible and intangible assets

15,827

6,798

8,224

805

17,351

Commitments related to acquisition of financial assets Other commitments related to investments TOTAL INVESTMENT COMMITMENTS GIVEN (1)

569 826

390 411

173 415

6

406 848

-

17,222 18,605 Including commitments given by controlled entities to joint ventures, amounting to €428 million at 31 December 2017 (€548 million at 31 December 2016). (1) 7,599 8,812 811

Commitments related to acquisition of tangible and intangible fixed assets 44.1.2.1 The commitments related to acquisition of tangible and intangible fixed assets are as follows:

31/12/2017

31/12/2016

(in millions of euros)

EDF

4,689 6,428 2,383 1,242

7,556 5,837 2,621

EDF Energy

Enedis

EDF Énergies Nouvelles

977

Framatome Other entities

562 523

-

360

15,827

17,351

TOTAL

The main share purchase commitments that cannot be valued concern EDF Luminus. EDF Luminus signed an amendment to the shareholder pact on 26 October 2015 defining a liquidity clause for the investments held by its minority shareholders, which could, in certain conditions under the control of EDF, result in sale of their shares through an IPO, or purchase of their shares by the Group at market value. This liquidity clause is valid at all times from 1 July 2018 to 31 December 2025. Regarding the investment in EDF Investissements Groupe (EIG), C3 (a fully-owned EDF subsidiary) and NBI (Natixis Belgique Investissement, a subsidiary of the Natixis group) amended the agreements for their investment in EIG on 12 February 2014. C3 now has a call option to buy EIG shares held by NBI at a fixed price, exercisable at any time until May 2021. Meanwhile, NBI has a put option to sell EDF all of its EIG shares for a fixed amount of cash, exercisable subject to certain conditions between February 2019 and May 2020. Due to their features, in compliance with IAS 32, NBI’s put option and C3’s call option are considered as derivatives and their net value is included in the positive or negative fair value of trading derivatives. At 31 December 2017, the fair value of these trading derivatives is not significant.

The decrease in commitments given by EDF for acquisition of tangible and intangible assets mainly reflects the elimination of what are now intragroup transactions due to the acquisition of Framatome, and progress on the Flamanville 3 EPR project. The increase in commitments given by EDF Energy concerns the signature of new contracts for construction of the Hinkley Point C reactor. Commitments related to acquisition 44.1.2.2 of financial assets The increase in commitments related to acquisition of financial assets at 31 December 2017 principally results from the acquisition of Gas Natural Vendita Italia (GNVI). On 13 October 2017 Edison and Gas Natural Fenosa signed a binding agreement for the acquisition by Edison of GNVI and the Shah Deniz II gas contract. Edison will acquire 100% of the capital of GNVI, a subsidiary of Gas Natural Fenosa which supplies natural gas and electricity across Italy. The purchase price is set at €193 million corresponding to an Enterprise Value of €263 million after debt repayment and provisions. The acquisition of Gas Natural Vendita Italia is subject to European Competition authority clearance, which was obtained on 6 February 2018, and the transaction should be finalised during the first half-year of 2018. As part of the agreement and subject to completion of the acquisition of Gas Natural Vendita Italia, Edison will also acquire a 11TWh long-term gas supply contract from the Shah Deniz II field. Gas imports from Shah Deniz II are expected to start at the end of 2020 once the Trans Adriatic Pipeline (TAP) is completed.

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EDF I Reference Document 2017