Quarterly Financial Information - 9 months 2020

Financial information at 30 september 2020 :
Organic decrease in revenues of 1.8% in Q3 and continued growth of renewables — 2020 nuclear output re-estimated to 325-335TWh and annual financial targets confirmed ⁽¹⁾ — Balance sheet strengthened through the issue of hybrid bonds and convertible green bonds

Sales 2020 :
€48.8bn, - 4,0 % org. ⁽²⁾ at the end of September
€14.1bn, - 1,8 % org. in the 3^rd quarter

Highlights

1/ Growth in renewables

⮞ Solar:

• India: 3 calls for tenders for photovoltaic projects awarded to EDEN Renewables for a total of 1,350MW in Rajasthan.
• United States: acquisition of the 4.5GW Geenex pipeline of solar projects (20 projects ranging from 20MW to more than 400MW).
• France: 105MW of solar projects awarded in the latest CRE solar call for tenders.

⮞ Wind:

• Saudi Arabia: construction launch of the Dumat Al Jandal wind farm (400MW) in partnership with Masdar.
• Morocco: start of construction of the first phase (87MW) of the Taza wind farm.

⮞ Storage:

• Signing of a storage contract with CleanPowerSF in California. 4-hour, 50 MW battery storage system coupled with the 100MW Maverick 6 solar project.

⮞ Hydropower:

• Commissioning of the new Romanche-Gavet hydropower plant, the largest hydropower construction in France (97MW).

2/ Nuclear: increase of the 2020 nuclear output target and deployment of the excell plan

• Estimated nuclear output in France for 2020 increased to 325-335TWh.
• Readjustment of the cost of the Grand Carénage program to €49.4 billion, compared to €48.2 billion in current euros ⁽³⁾ for the 2014-2025 period.
• Deployment of the first phase of the nuclear industry excellence plan. Launch of the second phase including 25 new commitments.

3/ Customers and services

⮞ Continued good sales performance in France:

• Residential customers: slowdown in net customer losses, -664,000 ⁽⁴⁾ at the end of September 2020 vs. -883,000 at the end of September 2019.
• More than 875,000 residential customers have now signed up for an EDF’s electricity market offering (+59% vs. end-2019).

⮞ Electric mobility:

• Izivia has been selected by the PSA group to equip its sites with charging infrastructures for electric vehicles.
• Pod Point charging points installed: c. 30,000 for residential customers since the beginning of the year.

⮞ Dalkia :

• Signature of a five-year multi-technical contract with the Louvre museum in Paris (heating, ventilation, air conditioning, etc).

⮞ E2m aggregator:

• New offer: “Optimus Flex” to increase the flexibility of decentralised resources.

4/ Enedis resilience and resumption of works in 3^rd quarter

• Launch of the 2020-2025 industrial and human enterprise project: performance, customer proximity and innovation.
• Linky: 28.5 million smart meters installed (i.e. more than 80% of the programme).
• Alex storm: strong mobilization of Enedis and FIRE ⁽⁵⁾ teams to restore service for customers.
• TURPE 6 ⁽⁶⁾ : launch of the public consultation by the French regulator (to take effect on 1^st August 2021).

5/ International development, despite the health crisis

• Hynamics: participation in the construction of a 30MW electrolyser to produce green hydrogen from offshore wind energy in Germany (Westküste100 project).
• Construction of the Nachtigal dam in Cameroon: nearly one third of civil engineering work completed.

6/ Financial structure and sustainable finance

• Issuance of green convertible bonds (OCEANE): nominal amount of €2.4 billion and gross annual negative yield of -1.68%. Allocation of funds to projects as defined in the Green Bond Framework.
• Issuance of 2.1 billion euros of hybrid bonds.
• Signing of a €200 million credit line indexed to ESG criteria

2020 target

⮞ EBITDA ⁽⁷⁾: €15.2 – 15.7bn

2020-22 ambitions

⮞ Reduction in operating expenses ⁽⁸⁾: €500m between 2019 and 2022

⮞Group disposals 2020-2022 ⁽⁹⁾: ~ €3bn

⮞ Net financial debt/EBITDA ⁽⁷⁾: < 3x in 2020, ~ 3x in 2021 and in 2022

(1) Subject to additional reinforced sanitary restrictions impacts.
(2) Organic change at comparable scope, accounting standards and exchange rates.
(3) See press release of 29/10/2020.
(4) In number of delivery sites.
(5) FIRE: Rapid Intervention Electricity Task Force.
(6) Tariffs for Using the Public Electricity Transmission and Distribution Networks.
(7) On the basis of scope and exchange rates as at 1 January 2020 and nuclear output assumption in France of around 325-335TWh in 2020 and between 330TWh and 360TWh each year in 2021 and 2022.
(8) Sum of personnel expenses and other external expenses. At constant scope, accounting standards, exchange and pensions discount rates, and excluding inflation. Excluding costs of sales from energy services activities, and Framatome’s nuclear engineering services and specific projects such as Jaitapur.
(9) Signed or completed disposals: impact on Group’s economic debt.