Quarterly Financial Information - 1st quarter 2019

Quarterly Financial Information at 31 March 2019
Sales up 1.7% ⁽¹⁾
Confirmation of 2019 targets and 2019-2020 ambitions

Group sales: €21.0bn, +1.7% org. ⁽¹⁾

Highlights

• New developments in renewable energies
  • Record level of EDF Renewables’ portfolio of projects under construction: 1.2GW gross put into construction in the first quarter, i.e. 3.5GW gross at the end of March (including 1.4GW in solar)
  • Solar power:
    • Acceleration of the Solar Power Plan in France: acquisition on 1 April 2019 of LUXEL Group, which holds a 1GWp portfolio (of which ~90MWp in operation)
    • Acquisition in China of a majority stake in a 77MWp rooftop photovoltaic assets portfolio
    • Award of a 20-year electricity purchase contract for a 60MWp solar plant near Athens
  • Offshore China: agreements to build and operate two 500MW offshore wind farms with Chinese electricity company China Energy Investment Corporation (CEI)
• Innovation at the service of customers
  • Launch of Hynamics, a subsidiary to produce and market low-carbon hydrogen for:
    • industrial clients: installation, operation and maintenance of hydrogen production plants
    • public and professional mobility providers: service stations to provide hydrogen to recharge fleets of commercial vehicles
• New nuclear
  • Taishan 2: end of fuel loading on 16 April 2019
• Financial structure
  • Agreement to sell EDF’s 25% stake in Alpiq
  • Signing of a €300 million sustainable revolving credit facility indexed on ESG criteria

Operational data

Electricity generation

• Nuclear France: 111.8TWh, -1.0%
• Nuclear United Kingdom: 12.6TWh, -16.4%
• Group Renewables: 15.7TWh, -23.7%
  of which Hydropower France ⁽²⁾: 9.9TWh, -32.2%

2019 targets ⁽³⁾, including IFRS 16 impact

• EBITDA ⁽⁴⁾: €16.0 - 16.7bn
• Reduction in operating expenses ⁽⁵⁾: ~ €1.1 bn vs. 2015
• Cash flow ⁽⁶⁾: excluding HPC and Linky >€600m

2019-2020 ambitions ⁽³⁾, including IFRS 16 impact

• Total net investments ⁽⁷⁾: excluding acquisitions and "Group 2019-2020 disposals”: ~ €15 bn/year
• Group 2019-2020 disposals: €2 to 3bn
• Net financial debt/EBITDA ⁽⁴⁾: ≤ 2.7x
• Dividend: target payout ratio of Net income excluding non-recurring items ⁽⁸⁾: 45 – 50%
  With the French State committed to scrip for the balance of the 2018 dividend and dividends relating to 2019 and 2020 full year

NB: see the whole press release in the PDF file opposite

Footnotes to the first page
(1) Organic change at comparable scope and exchange rates.
(2) Hydropower, excluding island activities before deduction of pumped volumes. For information, after deduction of pumped-storage hydropower volumes: 12.8TWh in Q1 2018 and 8.3TWh in Q1 2019.
(3) At constant legal and regulatory framework in France.
(4) On the basis of the scope and exchange rates at 1 January 2019 and of an assumption of a 395TWh France nuclear output. At prevailing price conditions beginning of February 2019 (around €50/MWh) for the unhedged 2020 France volumes.
(5) Sum of personnel expenses and other external expenses. At comparable scope and exchange rates. At constant pension discount rates. Excluding change in operating expenses of the service activities.
(6) The impact of IFRS 16 on cash-flow is derived from the increase in EBITDA, decreased by financial interests on the IFRS 16 net financial debt
(7) In accordance with the Group’s anticipations regarding the Flamanville 3 project completion costs and schedule. A detailed update of the schedule and construction cost of the Flamanville EPR will be given after the ASN ruling has been published.
(8) Adjusted for the remuneration of hybrid bonds accounted for in equity.