2019 Group Annual Results

ROBUST 2019 ANNUAL RESULTS
ALL FINANCIAL TARGETS ACHIEVED
STRONG GROWTH IN EBITDA AND NET INCOME

2019 Financial Results ⁽¹⁾

Sales: €71.3bn, +3.5% org.⁽²⁾
EBITDA: €16.7bn, +8.4% org.⁽²⁾ - Target of €16.0 - 16.7bn
Net income excluding non-recurring items ⁽⁵⁾ : €3.9bn, +57.9%
Net income – Group share: €5.2 bn, x4.4
OPEX reductions ⁽⁶⁾: €1.2bn vs 2015 - Target of ~ €1.1bn
Total net investments ⁽⁷⁾: €13.9bn - Target of ~ €15bn
Cash Flow excluding HPC and Linky: €1.8bn - 2019 target > €0.6bn
Net financial debt/EBITDA: 2.46x - 2019 target = 2.7x
Proposed dividend: €0.48/share, i.e. a payout ratio of 45% ⁽⁸⁾

Highlights

Customers, Services and Regions

• Renewed and innovative range of offers in France
• Successful market offers: more than 550,000 residential electricity customers in France
• More than 1.5 million residential gas customers in France
• Italy: successful integration of Gas Natural Vendita Italia

Acceleration of developments in renewable energies

• Doubling of construction starts (wind and solar) to 4.4GW
• Offshore:
  - Major successes in France and the United Kingdom: more than 2GW in development or under construction
  - EDF is the leader in France with 4 out of 7 calls for tenders won

Deployment of the three major plans

• Successful launch of the solar plan ⁽³⁾
  - c. 2,000 ha of land secured (x7 vs. 2017)
• Storage Plan ⁽³⁾ deployment
  - Acquisition of the developer Pivot Power in the United Kingdom (potential portfolio of 2GW of capacity)
• Electric Mobility Plan ⁽⁴⁾
  - Marketing of electric mobility solutions in the Group’s four core target countries
  - Acquisition of Pod Point, leader in the installation and operation of charging stations in the United kingdom

Nuclear

• Taishan EPR in China: commissioning of unit 2
• Success of the first VD4 900: restart of Tricastin 1 after ASN authorisation
• Consultation initiated by the French government on a new regulatory framework for existing nuclear
• Excell: launch of the nuclear industry excellence plan
• Flamanville EPR: definition of the scenario for upgrading the main secondary system penetration welds ⁽⁵⁾

Enedis

• 116 concession contracts renewed in 2019, i.e. 170 end 2019
• Linky: 7.7 million smart meters installed over the year bringing the total to 23.4 million at the end of 2019
• Acceleration of connections for renewable installations

International

• Commissioning of the Sinop dam in Brazil (400MW)
• Start of construction of the Nachtigal dam in Cameroon (420MW)
• Good performance of Luminus in Belgium

2020 targets

• EBITDA ⁽⁹⁾: €17.5 – 18.0bn
• OPEX ⁽⁶⁾: stable in €2019
• Total net investments excluding acquisitions and “2019-2020 Group disposals”: ~ €15.5bn/year
• 2019 - 2020 Group disposals ⁽¹⁰⁾: €2 to 3 bn

2021 Ambitions

• Net financial debt/EBITDA ⁽⁹⁾: ~ 2.6x in 2020, = 2.7x in 2021
• Dividend: Target payout ratio of Net income excluding non-recurring items ⁽⁸⁾: 45 – 50%
  The French State has committed to scrip for the balance of the 2019 dividend and dividends relating to FY2020

EDF’s Board of Directors meeting on 13 February 2020, under the chairmanship of Jean-Bernard Lévy, approved the consolidated financial statements at 31 December 2019.

Jean-Bernard Lévy, EDF’s Chairman and CEO, stated: “The rebound first seen in 2018 was confirmed and enhanced by our performance in 2019. EDF is a profitable company, which has achieved its financial targets. The unwavering commitment of Group’s employees enabled us to further deploy our CAP 2030 strategy at a rapid pace, whilst making disciplined investments and reducing operational costs. We are forging ahead in all renewable energies, moving ahead with our commercial offensive in France and making strong progress with the implementation of our Solar, Electricity Storage and Electric Mobility plans and we are investing in nuclear existing assets and projects. By capitalizing on our expertise and our transformation capacity, we are determined to play a leading role to meet the French and European objective of becoming carbon neutral.”

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

Footnotes

(1) The statements as of 31 December 2019 have been prepared in accordance with IFRS 16 as of 1 January 2019 (use of the modified retrospective method). The comparative data has not been restated, in accordance with the interim provisions of the standard.
(2) Organic change at comparable scope, standard and exchange rates.
(3) The EDF group pursues a development model based on partnerships. Not all of these projects will be fully consolidated.
(4) EDF’s Electric Mobility Plan comes in addition to the specific investments made in this area by Enedis, an independent EDF subsidiary as defined in the French Energy Code.
(5) See press release of 9 October 2019. Estimated cost of construction revised to €12.4bn in 2015 euros and excluding interest during the period of construction.
(6) Net income excluding non-recurring items is not defined by IFRS, and is not directly visible in the consolidated income statement. It corresponds to the Group net income excluding non-recurring items and net changes in fair value on Energy and Commodity derivatives, excluding trading activities, and excluding net changes in fair value of debt and equity securities, net of tax.
(7) Sum of personnel expenses and other external expenses. At comparable scope, standard and exchange rates. At constant pension discount rates. Excluding change in operating expenses of the service activities.
(8) Total net investments excluding acquisitions and “2019-2020 Group disposals”.
(9) Payout ratio of net income excluding non-recurring items adjusted for the remuneration of hybrid bonds accounted for in equity.
(10) On the basis of the scope and exchange rates at 01/01/2019 and of an assumption of a 375-390TWh range for French nuclear generation for 2020.
(11) The target includes the execution of the CENG shares put-option in 2020. Closing may be postponed to 2021, depending on the timing of regulatory approvals.