2016 half-year results stable

2016 half-year results stable
Extension of the depreciation period of the 900MW fleet to 50 years¹
Very good performance in renewable energies
2016 financial targets maintained

• EBITDA: €8.9 billion, nearly stable (-0.7% organic variation) in challenging market conditions in France and the UK
• Net income excluding non-recurring items²: €3.0 billion, +1.4%
  o +€0.3 billion from the positive effect of the extension to 50 years of the accounting depreciation period of the PWR³ 900MW series¹
• Net income – Group share: €2.1 billion, -17.2%, essentially in relation to asset impairments
• Nuclear output:
  o France: 205.2TWh, down 2.5% due in particular to additional inspections resulting in the extension of certain planned outages
  o United Kingdom: 30.9TWh, up 1.8%, good operational performance
• Renewable energies:
  o More than 6TWh generated by EDF Énergies Nouvelles, +16%
  o 1.6GW of capacity under construction
• Net financial debt⁴/EBITDA ratio: 2.1x, stable vs. 31/12/2015

Outlook

As announced on 19 July 2016, the Group maintains its financial objectives for 2016, taking into account in particular the expected tariff adjustment and the revision of the nuclear output targets in connection with the outage extensions now planned in order to conduct additional inspections:

• EBITDA: €16.3 – 16.8 billion
• Net financial debt/EBITDA ratio: between 2x and 2.5x
• Payout ratio of Net income excluding non-recurring items⁵: 55% to 65%

The ambition of a positive cash flow in 2018 after dividends, excluding Linky, new developments and asset disposals is maintained.

EDF’s Board of Directors meeting on 28 July 2016, under the chairmanship of Jean-Bernard Lévy, approved the condensed consolidated half-year financial statements at 30 June 2016.

Jean-Bernard Lévy, EDF Chairman and Chief Executive Officer, stated:
“In a context of increased competition and in an environment marked in recent months by a significant drop in electricity prices on the wholesale market, the Group posted good operational results and is able to confirm its financial objectives for 2016. Thanks to the hard work of our teams, nearly 75% of customers previously subscribed to Green and Yellow regulated tariffs chose EDF, which remains the largest supplier of electricity to businesses and local authorities in France. EDF also recorded this half-year very good growth in the area of renewable energies, consistent with the Group’s CAP 2030 strategy: EDF EN output in TWh is up 16% compared to the same period in 2015, while French hydropower generation has increased 6.5%. These solid results confirm EDF's leadership in renewable energies in Europe.”

¹Excluding Fessenheim
²Net income excluding non-recurring items and excluding net changes in fair value of energy and commodity derivatives, excluding trading activities net of tax
³Pressurized Water Reactor
⁴Net financial debt comprises total loans and financial debt, less cash and cash equivalents and liquid assets. Liquid assets are financial assets consisting of funds or securities with an initial maturity of over three months, easily convertible into cash, and managed as part of an objective to maintain liquidity. It also takes into account the Group’s loan to RTE
⁵Adjusted for interest payments on hybrid issues booked in equity