EDF_REGISTRATION_DOCUMENT_2017

6.

FINANCIAL STATEMENTS Other information

RELATED PARTIES NOTE 39

39.1

RELATIONS WITH SUBSIDIARIES

EDF's receivables (1)

EDF's liabilities (1)

Net liabilities included in current account Trade liabilities

Financial income (excluding dividends)

Trade receivables

Financial expenses

Loans

(in million of euros) Companies CTE (formerly C25)

249 123 128

99

0

Framatome EDF Energy

461 144

4

EDF Energies Nouvelles EDF Energy UK LTD

985

33

1,425 4,309

8

EDF International

78

EDF Trading

1,054

1,276

6 2 0

Edison Enedis Dalkia

70

83

1,879

1,223

113

28 19

Groupe PEI

858

51

Current account (2)

3,036

Investment for agreement for liquidities of subsidiaries Group cash management agreement with subsidiaries (3) (see note 22) Tax consolidation agreement

892

(8)

7,985

(2)

1,560

Receivables and payables of more than €50 million. (1) Including €1,943 million concerning Enedis. (2) Including €2,943 million concerning C3, €1,822 million for EDF Trading and €758 million for EDF International. (3)

39.2

RELATIONS WITH THE FRENCH STATE AND STATE-OWNED ENTITIES

Relations with the French state 39.2.1 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, EDF 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.

Relations with public sector entities 39.2.2 EDF’s relations with public sector entities mainly concern the two entities belonging to the former AREVA group (Orano and Framatome). EDF took over Framatome at 31 December 2017 (see note 2.2). 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 2.2.2. Front-end of the cycle: Several important agreements were negotiated between EDF and Orano: for supplies of natural uranium: an AREVA Mines (now Orano Mining) contract ■ 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).

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EDF I Reference Document 2017