EDF_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS Other information

Details of the portfolio at 31 December 2017 are as follows:

31/12/2017

31/12/2016

Net book value

Realisable value

Net book value

Realisable value

Investments - CTE (the Company that owns RTE) (1)

2,705

2,705

3,905

3,905

Investment Securities ■

17,825

19,717

13,917

16,027

Other financial investments ■ Dedicated assets - Investments

2,063

2,314

1,291

1,477

22,593

24,736

19,113

21,409

CSPE receivable (2)

3,294

3,349

4,184

4,288

Total dedicated assets before hedging

25,887

28,085

23,297

25,697

Hedging instruments and other

-

30

(20)

(20)

TOTAL DEDICATED ASSETS AFTER HEDGING (3) 25,677 In 2017, EDF’s investment of 50.1% of CTE (formerly C25), the Company that holds 100% of the shares in RTE. In 2016, 75.93% of EDF’s investment in CTE (1) (see note 2.4). The receivable consisting of accumulated shortfalls in compensation at 31 December 2015, less the portion assigned on 22 December 2016 and reimbursements (2) received in 2017, in line with the repayment schedule. The realisable value of the CSPE receivable is estimated based on market rates. Limiting the value of certain investments in compliance with Article 16 of Decree 2007-243 concerning calculation of the regulatory realisable value of dedicated (3) 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. 25,887 28,115 23,277

Net book value and fair value include unmatured accrued interest.

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 2.4). 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.

6.

Changes in dedicated assets in 2017 38.2.4 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.

38.3

PRESENT COST OF LONG-TERM

NUCLEAR OBLIGATIONS The long-term nuclear obligations concerned by the regulations for dedicated assets related to nuclear generation are included in EDF’s 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

Provision for removal and conditioning of waste 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

461

EDF I Reference Document 2017