EDF_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS Other information

36.3

OTHER TYPES OF COMMITMENT

Financing commitments 36.1.4 These are commitments by EDF to its subsidiaries, in 2017 mainly €2,060 million to EDF Trading, €1,637 million to EDF Energies Nouvelles, €953 million to EDF Energy, €929 million to Edison, and €800 million to Enedis.

Electricity supply commitments 36.3.1 In the course of its business, EDF has signed long-term contracts to supply electricity as follows: long-term contracts with a number of European electricity operators, for a ■ specific plant or for a defined group of plants in the French nuclear generation fleet, corresponding to installed power capacity of 3.5GW; in execution of France’s NOME Law on organisation of the French electricity ■ market, EDF has a commitment to sell some of the energy generated by its existing nuclear power plants to other suppliers. This covers volumes of up to 100TWh each year until 31 December 2025. 36.3.2 Gas purchase commitments are given by EDF in connection with its expanding gas supply business. Gas purchases for supply, delivery and storage are mostly undertaken through long-term contracts and forward purchases from EDF Trading. In 2011, EDF signed a capacity subscription contract for the Dunkirk methane terminal, which began commercial operations in early January 2017. Gas purchases and related services

36.2

COMMITMENTS RECEIVED

Operating commitments 36.2.1 These commitments mainly comprise: operating lease commitments received as lessor; ■ operating guarantees received; ■ operating sale commitments, essentially concerning engineering services ■ for HPC; personnel secondment commitments to EDVANCE. ■ Financing commitments 36.2.2 These commitments correspond to the total value of credit lines available to EDF from various banks. 36.2.3 Investment commitments received at 31 December 2016 primarily included an amount of €2,566 million for the future sale of 49.9% of the subsidiary RTE via the new company CTE (formerly C25). This operation was finalised in 2017 (see note 2.4). Investment commitments Personal Training Account ( Compte Personnel de Formation or CPF) French Law 2014-288 of 5 mars 2014, which took effect from 1 January 2015, reformed the system for in-service training, replacing the former Individual training entitlement (droit individuel à la formation or DIF) by the Personal Training Account (Compte Personnel de Formation or CPF). The CPF is a “universal” system that relates to the person, not the work contract. It concerns all EDF’s employees, whether full or part-time, on permanent or fixed-term contracts, and there is no requirement concerning the length of service. It represents a progressive “capital” of training time entitlement, capped at 150 hours. Tax inspections Following inspections of previous years’ accounts, the French tax authorities disputed the tax-deductibility of the provision for annuities following work-related accidents and illness paid by the Company. As this issue related to the special gas and electricity (IEG) statutes, it also concerned RTE, Enedis and Électricité de Strasbourg as well as other entities. In two rulings of 22 November 2017, the Council of State definitively validated the Company’s position and recognised the tax-deductible nature of these provisions, putting an end to all the related litigations. CONTINGENT LIABILITIES NOTE 37

6.

For the period 2008 to 2015, EDF was notified of proposed tax adjustments, notably concerning the tax-deductibility of certain long-term liabilities. This recurrent reassessment, which is applied for each year, represents a cumulative financial risk of some €536 million in income taxes at 31 December 2017. In September 2017 the Montreuil Administrative Court issued two rulings that recognised the tax-deductibility of these liabilities and validated the position taken by the Company. For the years 2012 and 2015, the French tax authorities notified the Company of certain recurrent tax reassessments concerning the Contribution sur la Valeur ajoutée des Entreprises (tax on corporate value added), and questioned the deductibility of long-term provisions. Labour litigation EDF is party to a number of labour lawsuits, primarily regarding working hours. EDF estimates that none of these lawsuits, individually, is likely to have a significant impact on its financial results or financial position. However, because they relate to situations that could concern a large number of EDF’s employees in France, any increase in such litigations could have a potentially negative impact on EDF’s financial position (although the risk has been mitigated by the signature of the agreement on fixed numbers of working days in 2016).

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EDF I Reference Document 2017