Quarterly Financial Information at 30 September 2017
Sales down slightly
Growth in renewable generation
Disposal plan execution confirmed
Key figures
- Group sales : €49.7bn, -3.2% org.(1)
-1.3% org. excl. tariff adjustment(2) - Electricity Output
- Nuclear France: 283.3TWh, -1.3%
- Nuclear United Kingdom: 48.7TWh, +0.7%
- Hydropower France: 28.6TWh, -16.4%
- At least €10 bn disposal plan between 2015 and 2020. 80% of the target already reached
- Sale of all of EDF Polska’s assets to PGE
- Sale of real estate assets to Tikehau Capital
- Disposal of some Edison gas assets
Institutional environment
- Key decisions at national and european levels
- New energy mix trajectory(3) expected by mid-2018 as part of the multiannual energy programme (PPE); 2025 deadline extended.
- Government action plan to accelerate the development of renewable energies (during the first quarter of 2018).
- Agreement on the reform of the European carbon market (EU ETS).
Highlights
- New developments in renewable energies, in particular in solar and growing economies
- Notably in Brazil (350MW of wind and solar), Egypt (100MWac), India (87MWc of solar and 164MW of wind) and in offshore (innovative project off the coast of Blyth in the United Kingdom)
- Customers solutions : development and innovation
- New green energy supply offers. Extension of the Sowee offer with the supply of green energy and the remote control of electric heating
- Expected expansion of Edison's customer portfolio(4) (~+50%, ~500,000 customers)
- Creation of EDF Nouveaux Business
2017 targets(5)
- Nuclear output: 383 - 387TWh
- EBITDA(6) : €13.4 - 14.0bn
- Net financial debt/EBITDA(6,7): ~ 2.5x
- Payout ratio of Net income excl. non-recurring items(8) : 55% to 65%
2018 targets(9)
- Operating expenses(10): -€0.8 bn compared to 2015
- EBITDA(6) : €14.6 - 15.3 bn
- Net investments(11): ~€11bn
- Cash flow(6,12): ~ 0
- Net financial debt/EBITDA(6,7): ≤ 2.7x
- Asset disposals nearly complete at end 2018: ~€10bn
- Payout ratio of Net income excl. non-recurring items(8) : 50%
Targets beyond 2018 confirmed(13)
- 2019 operating expenses(10): Reduction ≥ €1bn compared to 2015
- Asset disposals in 2015-2020: at least €10bn
- Payout ratio of Net income excluding non-recurring items(8) : 45% to 50%
(1) Organic change at comparable scope and exchange rate; including -1.9% impact related to the regularization of regulated sales tariffs for the period starting from 1 August 2014 to 31 July 2015 following the French State Council’s decision of 15 June 2016
(2) Adjustment of the regulated sales tariffs for the period from 1 August 2014 to 31 July 2015 following the French State Council’s decision of 15 June 2016
(3) Meeting of the Council of Ministers of the French Republic on 7 November 2017
(4) See press release of 13 October 2017. Subject to European Competition clearance
(5) Please refer to the press release “2017 targets update” of 27 October 2017
(6) At 2016 exchange rate
(7) At an assumed discount rate on nuclear provisions of 4.1% for 2017 and 3.9% for 2018
(8) Adjusted for interest payments on hybrid bonds booked in equity
(9) Please refer to the press release “2018 targets update” of 13 November 2017
(10) Sum of personnel expenses and other external expenses. At constant scope and exchange rates. At constant pension discount rates. Excluding changes in operating expenses for the service activities
(11) Net investments excluding Linky, new developments and asset disposals. Linky is a project handled by Enedis, a subsidiary fully independent from EDF as defined by the French Energy Code
(12) 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; the 2018 cash flow target aims for a slightly positive result or close to balance
(13) Please refer to the press release of 28 July 2017
NB: see press release in the PDF file opposite
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