EDF_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS Cash flows and other information

Unlisted assets (EDF Invest) 47.2.2 The assets managed by EDF Invest consist of unlisted securities related to investments in infrastructures, real estate, and private equity funds. At 31 December 2017, the assets managed by EDF Invest represent a realisable value of €5,408 million, particularly including: 50.1% of the Group’s shares in CTE, the joint venture that owns RTE, in ■ compliance with Decree 2016-1781 of 19 December 2016 amending the Decree of 23 February 2007. These shares amount to €2,705 million at 31 December 2017 (€3,905 million for 75.93% of the shares in CTE, at 31 December 2016) (see note 3.4.1); the Group’s investment in TIGF, Porterbrook, Autostrade and Q-Park presented in ■ available-for-sale financial assets in the consolidated balance sheet; the Group’s investments in Madrileña Red de Gas (MRG), Géosel, Thyssengas, ■ Aéroports de la Côte d’Azur and Central Sicaf presented in investments in associates in the consolidated balance sheet.

The Group thus takes a 5-year period as the basis for assessment of prolonged decline compared to historical value. This period is at the low end of the range of statistical estimates concerning stock markets. Also, based on statistical observations of the asset/liability management model used for this portfolio, the Group considers impairment of dedicated assets to be significant when the value is 40% or more below the portfolio’s historical value. In parallel to these general criteria for impairment, in the course of operational asset monitoring the Group exercises judgement through long-term, specific management rules defined and supervised by its governance bodies (maximum investment ratios, volatility analyses and assessment of individual fund manager quality).

47.3

VALUATION OF EDF’S DEDICATED ASSETS

The following table shows a breakdown of dedicated assets by nature:

31/12/2017 Realisable value

31/12/2016 Realisable value

6.

Book value 9,942 9,282

Book value 8,010 6,866

Consolidated balance sheet presentation

(in millions of euros)

Equities

9,942 9,282

8,010 6,866

Debt instruments

Cash portfolio

104

104

900

900

Dedicated assets – equities and debt instruments

Available-for-sale financial assets

19,328 19,328 15,776

15,776

Derivatives

Fair value of derivatives

30

30

(18)

(18)

Other

Available-for-sale financial assets

-

-

-

-

Diversified equity and bond investments

19,358 19,358 15,758

15,758

CSPE receivable (1)

Loans and financial receivables

3,294

3,349

4,185

4,288

Derivatives

Fair value of derivatives

-

-

(2)

(2)

CSPE receivable after derivatives

3,294 1,241

3,349 2,705

4,183 1,852

4,286 3,905

CTE (2)

Investments in associates (3) Investments in associates (3)

Other associates

893

944

487

537

Available-for-sale financial assets and other net assets (5)

Other assets (5)

1,716 3,850 26,502

1,759 5,408 28,115

1,191 3,530 23,471

1,191 5,633

Unlisted assets (EDF Invest) TOTAL DEDICATED ASSETS (4)

25,677 The receivable consisting of accumulated shortfalls in compensation at 31 December 2015, less the portion assigned on 22 December 2016 and reimbursements (1) received in 2017, in line with the repayment schedule. The realisable value of the CSPE receivable is estimated based on market rates. In 2017, the Group’s investment of 50.1% of CTE (formerly C25), the company that holds 100% of the shares in RTE. In 2016, 75.93% of the Group’s investment (2) in CTE. The CTE shares are included at their equity value in the consolidated financial statements (book value in the table). The realisable value shown in this table is based on the sale transaction price of 31 March 2017 (see note 3.4.1). Including the value of the share in equity of the controlled companies owning these investments. (3) Limiting the value of certain investments in compliance with Article 16 of Decree 2007-243 concerning calculation of the regulatory realisable value of dedicated (4) assets, has no effect at 31 December 2017. By limiting the value of certain investments in compliance with Article 16 of Decree 2007-243 concerning calculation of the amount of the regulatory realisable value of dedicated assets, the regulatory realisable value was reduced to €24,312 million at 31 December 2016. Including the value of the share in equity of other controlled companies. (5)

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EDF I Reference Document 2017