EDF_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS Cash flows and other information

RELATED PARTIES NOTE 48

Details of transactions with related parties are as follows:

Associates and joint ventures

French State or State-owned entities (1) (2)

Joint operations

Group Total 31/12/2016

31/12/2017

31/12/2016

31/12/2017

31/12/2016

31/12/2017

31/12/2016

31/12/2017

(in millions of euros)

Sales

580

547

-

-

1,549 2,313 1,163

1,328 2,418 1,065

2,129 6,134 1,176

1,875 6,073 1,073

Energy purchases External purchases

3,817

3,651

4 4

4 4

9

4

Financial assets

238 729

106 575

- - -

- - - -

-

-

238

106

Other assets

596

754

1,325

1,329

Financial liabilities Other liabilities

-

-

-

-

-

-

1,282

1,106

1

552

880

1,835

1,986

Excluding tax and social liabilities and the CSPE receivable. (1) As a result of the Group’s acquisition of Framatome on 31 December 2017 (see note 3.2), income and expense items between the Group and Framatome are still (2) partly reported in Related Parties for 2017, whereas assets and liabilities are eliminated at the year-end.

48.1

TRANSACTIONS

Relations with Engie 48.2.2 The common service function shared by EDF and Engie, respectively the electricity distribution and gas distribution subsidiaries Enedis and GRDF, is defined by Article L. 111-71 of the French Energy Code. Its missions in the electricity and gas distribution sector are building structures, site project management, network operation and maintenance, and metering operations. This service is not a legal entity in its own right. 48.2.3 The EDF group’s relations with public sector entities mainly concern the two entities belonging to the former AREVA group (Orano and Framatome). The EDF group took over Framatome (see note 3.2) at 31 December 2017, and relations with that company continued up to that date. Transactions with Orano concern: the front-end of the nuclear fuel cycle (uranium supplies, conversion and ■ enrichment services); the back-end of the nuclear fuel cycle (transportation, storage, processing and ■ recycling services for spent fuel). Transactions with Framatome are described in note 3.2. Front-end of the cycle Several important agreements were negotiated between EDF and Orano: for supplies of natural uranium: AREVA Mines (now Orano Mining) contracts ■ covering the period 2021-2030; for fluoration: a contract covering the period 2019-2030; ■ for enrichment of natural uranium into uranium 235: an AREVA NC (now Orano ■ Cycle) contract for the period 2019-2030. As part of the plan to construct two EPRs in the United Kingdom at the Hinkley Point site, on 29 September 2016 EDF and AREVA (Orano) signed a uranium contract with AREVA Mines (Orano Mining), and a conversion contract and enrichment contract with AREVA NC (Orano Cycle). Back-end of the cycle Relations between EDF and AREVA (Orano) concerning transportation, processing and recycling of spent fuels are described in note 29.1.1. Relations with Framatome In December 2014, EDF and Framatome signed a contract for supplies of enriched-uranium fuel assemblies over the period 2015-2021. Another agreement with Framatome was signed for the supply of initial core assemblies for the Flamanville 3 EPR. Relations with public sector entities

WITH ENTITIES INCLUDED IN THE SCOPE OF CONSOLIDATION

6.

Transactions with the principal associates (CTE, (the company that owns RTE), CENG, Taishan and Alpiq) are presented in note 23. Transactions with other associates, joint ventures, and partner entities in joint arrangements with the Group mainly consist of sales and purchases of energy.

48.2

RELATIONS WITH

THE FRENCH STATE AND STATE-OWNED ENTITIES Relations with the French State 48.2.1 The French State holds 83.50% of the capital of EDF at 31 December 2017, and is thus entitled in the same way as any majority shareholder to control decisions that require approval by the shareholders. In accordance with the legislation applicable to all companies having the French State as their majority shareholder, the EDF group is subject to certain inspection procedures, in particular economic and financial inspections by the State, audits by the French Court of Auditors (Cour des comptes) or Parliament, and verifications by the French General Finance Inspectorate (Inspection générale des finances). The public service contract between the French State and EDF was signed on 24 October 2005. This contract is intended to form the framework for public service missions assigned to EDF by the lawmaker for an unlimited period. The Law of 9 August 2004 does not stipulate the duration of the contract. EDF, like other electricity producers, also participates in the multi-annual energy program established in the Decree of 27 October 2016, which defines objectives for generation and load shedding. Finally, the French State intervenes through the regulation of electricity and gas markets, particularly for authorisation to build and operate generation facilities, establishment of sales tariffs for customers that have stayed on the regulated tariffs, transmission and distribution tariffs, and also determination of the ARENH price in accordance with France’s Energy Code, and the level of the Contribution to the Public Electricity Service.

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EDF I Reference Document 2017