EDF_REGISTRATION_DOCUMENT_2017

6.

FINANCIAL STATEMENTS Cash flows and other information

Structured entities – Investment funds The investment funds held by the Group (see note 1.3.2.9) reported in the table under “Available-for-sale financial assets” are located in France and owned by EDF. The Group has not given these funds any financial support. The value of the assets of these investment funds amounts to €3,294 million at 31 December 2017 (€1,548 million at 31 December 2016). The funds mainly consist of 12 listed funds with total value of €2,906 million (at 31 December 2016, 9 listed funds with total value of €1,297 million).

On 31 March 2017, EDF finalised the sale of a 49.9% stake in CTE, the company which has held 100% of the shares of RTE since December 2016. Since completion, EDF’s entire investment in CTE, i.e. 50.1%, has been allocated to dedicated assets (see note 3.4.1). For the unlisted asset portfolio, EDF Invest continued over 2017 to build up a portfolio of infrastructures, real estate property and investment funds. On 26 July 2017 EDF Invest completed the acquisition by the consortium consisting of Allianz (60%), EDF Invest (20%) and the investment fund DIF (20%), of 6.94% of the capital of Autostrade per l’Italia, one of Europe’s largest motorway concession operators. In June and September 2017, EDF Invest, together with Beni Stabili, the Italian subsidiary of Foncière des Régions, and Predica, acquired a non-controlling interest in Central Sicaf, which manages a portfolio of offices and technical premises that are all leased to Telecom Italia and were previously owned 100% by Beni Stabili. In October 2017, EDF Invest, together with KKR Infrastructure, finalised the acquisition of a minority interest in the Dutch carpark operator Q-Park NV, one of Europe’s largest carpark operators. In December 2017, EDF Invest acquired 50% of the Ecowest real estate development in Levallois-Perret, which is leased principally to L’Oreal’s Luxury division. These investments are allocated to EDF Invest’s Infrastructures pocket, alongside other investments including TIGF, Porterbrook, MRG, Géosel, CTE (the company that owns RTE) Aéroports de la Côte d’Azur and Thyssengas. A total of €985 million in net gains on disposals from the financial portfolio was recorded in the financial result in 2017 (€428 million in 2016). The difference between the fair value and acquisition cost of diversified bond and equity investments included in equity was a positive €2,118 million before taxes at 31 December 2017 (€1,984 million at 31 December 2016). The Group’s assessment of the value of the dedicated asset portfolio did not lead to recognition of any impairment in 2017.

47.4

CHANGES IN DEDICATED ASSETS

IN 2017

At 31 December 2017, the degree of coverage of provisions by dedicated assets was 108.5% applying the regulatory calculations. The regulatory limit on the realisable value of certain investments (decree 2007-243) has no effect at 31 December 2017. At 31 December 2016, provisions were 99.8% covered by dedicated assets applying the regulatory calculations. Without application of the regulatory limits set by Decree 2007-243, the provision coverage rate was 105.4%. Withdrawals from dedicated assets totalled €378 million, equivalent to the payments made in respect of the long-term nuclear obligations to be covered in 2017 (€377 million in 2016). The regulatory allocation to dedicated assets (required by Article 2-IV of decree 2007-243, amended) for 2016, amounting to €1,095 million, was made during the first half of 2017 in compliance with the ministerial letter of 10 February 2017 (no allocations were made in 2016). The regulatory allocation to dedicated assets for 2017 amounts to €386 million and will be made during 2018. 2017 was a remarkable year for the equity markets, which were boosted by simultaneous worldwide economic growth and monetary policies that remained generous, and the financial portfolio achieved excellent results, outperforming its strategic benchmark index. This good performance was primarily driven by prudent positioning in terms of sensitivity and exposure to government bonds in core Euro zone countries, as long rates on government bonds rose slightly. The credit portfolio also outperformed its benchmark, particularly thanks to subordinated bank notes. The very slight overexposure on equities maintained over the year was beneficial, and so were the active management approaches selected.

47.5

PRESENT COST OF LONG-TERM

NUCLEAR OBLIGATIONS The Group’s long-term nuclear obligations in France concerned by the regulations for dedicated assets related to nuclear generation are included in the EDF group’s consolidated financial statements at the following values:

31/12/2017

31/12/2016

(in millions of euros)

Provisions for spent fuel management – portion unrelated to the operating cycle as defined in the regulations

983

820

Provisions for long-term radioactive waste management (1)

8,814

8,966

Provisions for waste removal and conditioning Provisions for nuclear plant decommissioning

726

-

14,920

14,122

Provisions for last cores – portion for future long-term radioactive waste management

467

450

PRESENT COST OF LONG-TERM NUCLEAR OBLIGATIONS 24,358 At 31 December 2016, provisions for long-term radioactive waste management included the provision for waste removal and conditioning which amounted to (1) €581 million. 25,910

47.6

DEDICATED ASSETS OF

Framatome and 114.7% for SOCODEI (calculated using EDF group discount and inflation rates for nuclear provisions in France – see note 30). These two entities’ long-term nuclear obligations in France concerned by the regulations for dedicated assets are included the EDF group’s consolidated financial statements at the amounts of €81 million for Framatome and €43 million for SOCODEI (see note 30).

FRAMATOME AND SOCODEI

The dedicated assets of Framatome and SOCODEI relating to Basic nuclear facilities (INB) in France have realisable values of €84 million and €49 million respectively and the degree of coverage of provisions according to the regulations is 103.9% for

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EDF I Reference Document 2017