Quarterly financial information - 1st quarter 2017

Quarterly financial information

• First quarter 2017 sales at €21.1 billion, stable in organic terms¹
• Nuclear output at a level consistent with 2017 target
  o France: 108.5TWh, i.e. -7.6TWh compared to the first quarter 2016, in line with expectations taking into account the outages for additional controls started in 2016
  o United Kingdom: 16.0TWh, i.e. +0.3TWh compared to the first quarter 2016, high performance level maintained
• The Group’s strategic developments
  o Acceleration of the strategic allocation of capital to renewable energies:
  - Start of exclusive negotiations in view of acquiring a majority stake in Futuren², the onshore wind energy specialist, by EDF Énergies Nouvelles
  - Alliance with the consortium led by Masdar to develop the third phase of an 800MW solar park in Dubai
  - Commissioning of projects: 189MW gross principally in India (wind and solar) over the first quarter, 98MW of wind in the United Kingdom announced in april
  - Start of construction of new projects: 242MW, mainly located in the USA
  o Energy services, development of Dalkia’s business:
  - Maintenance and management contract renewed for the cooling and ventilation of the European body for nuclear research based in Geneva (CERN³)
  - Extension of the heat network of Limoges city (France)
  - Acquisition of Froid Climatisation Service 84 entity, cooling and air treatment specialist located in South-East of France
  o Key milestones in new nuclear in line with timetable:
  - Flamanville 3: system performance tests launched
  - Taishan: start of primary coolant system loading for hot functional testing, and start of First-Plant-Only-Test (testing on the internal structures vibrations)
• Significant progress in the performance plan
  o Capital increase with preferential subscription rights for a total amount of approximately €4 billion. Subscription rate of the market share of 185.9%
  o Disposal plan:
  - Sales of 49.9% of RTE to Caisse des Dépôts and CNP Assurances realised
  - Sales of EDF Trading’s coal and freight assets to JERA Trading, with EDF receiving a 33.3% stake in JERA Trading
  - Sales of the whole of EDF's stake in EDF DÉMÁSZ Zrt, its Hungarian subsidiary, to ENKSZ realised
• Financial highlights
  o Dividend: €0.90 per share proposed for 2016
  - Final dividend to be distributed of €0.40 per share, with the option to receive it in new shares, taking into account the interim dividend of €0.50 per share paid on 31 October 2016
  - Confirmation by the French State of the option to receive the dividend in new share
  - Ex-dividend date on 6 June 2017 and payment of dividend balance and settlement of shares on 30 June 2017
  o Issuance of Samurai Bonds for ¥137bn (€1.1bn) including two green tranches totalling ¥26bn (~€210m) dedicated to the financing of renewable investments. Green Bonds issued to date by EDF group amount to around €4.5bn
• 2017 targets confirmed
  o Nuclear output: 390 - 400TWh
  o EBITDA⁴: €13.7 to €14.3 billion
  o Net financial debt/EBITDA5: ≤ 2.5x
  o Payout ratio of Net income excluding non-recurring items⁶: 55% to 65%

2018 targets and beyond maintained

• 2018 targets
  - OPEX⁷: -€0.7 billion compared to 2015
  - EBITDA⁸: ≥ €15.2 billion
  - Net investment excluding Linky, new developments and disposals: around €10.5 billion
  - Cash flow ^8,9: ≥ 0
  - Net financial debt/EBITDA^8,9: ≤ 2.5x
  - Payout ratio of Net income excluding non-recurring items¹⁰: 50%
• Beyond 2018
  - Reduction in OPEX⁷: ≥ €1 billion in 2019 vs. 2015
  - Asset disposals over 2015-2020: at least €10 billion
  - Payout ratio of Net income excluding non-recurring items¹⁰: 45% to 50%

⁽¹⁾ Organic change at comparable scope and exchange rates
⁽²⁾ Futuren is present in France, Germany, Morocco and Italy and owns 389MW of gross wind energy capacity and operates 357MW for third parties. The company is also developing wind energy projects representing over 168MW in capacity.
⁽³⁾ Conseil Européen pour la Recherche Nucléaire
⁽⁴⁾ At 2016 exchange rate
⁽⁵⁾ At 2016 exchange rate and at an assumed discount rate on nuclear provisions of 4.1% in 2017
⁽⁶⁾ Adjusted for the remuneration of hybrid bonds accounted for in equity
⁽⁷⁾ At constant scope, exchange and hypothesis of pensions discount rates. Excluding change in operating expenses of service activities
⁽⁸⁾ At 2016 exchange rate and assumption for 2018 power prices in France on volumes not hedged as of 31/12/2016 ≥ €36/MWh
⁽⁹⁾ At 2016 exchange rate. Cash flow excluding Linky, new developments and asset disposals, with an assumed discount rate on nuclear provisions of 4.1% in 2017 and 3.9% in 2018, excluding interim dividend for fiscal year 2018, which will be decided in H2 2018
⁽¹⁰⁾ Adjusted for the remuneration of hybrid bonds accounted for in equity