SALES AND HIGHLIGHTS 2019 - edf.fr · SALES 9M 2019 6 HIGHLIGHTS AND DEPLOYMENT OF CAP 2030 (3/3)...

SALES 9M 2019 1

SALES AND HIGHLIGHTS

2019

THIRD QUARTER

SALES 9M 2019 2

DISCLAIMER

This presentation does not constitute an offer to sell securities in the United States or any other jurisdiction.

No reliance should be placed on the accuracy, completeness or correctness of the information or opinions contained in this presentation, and

none of EDF representatives shall bear any liability for any loss arising from any use of this presentation or its contents. The quarterly financial

information is not subject to an auditor’s report.

The present document may contain forward-looking statements and targets concerning the Group’s strategy, financial position or results. EDF

considers that these forward-looking statements and targets are based on reasonable assumptions as of the present document publication,

which can be however inaccurate and are subject to numerous risks and uncertainties. There is no assurance that expected events will occur

and that expected results will actually be achieved. Important factors that could cause actual results, performance or achievements of the Group

to differ materially from those contemplated in this document include in particular the successful implementation of EDF strategic, financial and

operational initiatives based on its current business model as an integrated operator, changes in the competitive and regulatory framework of

the energy markets, as well as risk and uncertainties relating to the Group’s activities, its international scope, the climatic environment, the

volatility of raw materials prices and currency exchange rates, technological changes, and changes in the economy.

Detailed information regarding these uncertainties and potential risks are available in the Universal Registration Document (URD) of EDF filed

with the Autorité des marchés financiers on 29 July 2019, which is available on the AMF's website at www.amf-france.org and on EDF’s website

at www.edf.fr.

EDF does not undertake nor does it have any obligation to update forward-looking information contained in this presentation to reflect any

unexpected events or circumstances arising after the date of this presentation.

SALES 9M 2019 3

(in millions of Euros)9M 2018

restated (1) 9M 2019 ∆% ∆% org.(2)

SALES 49,276 50,941 +3.4 +2.9

(1) The disposal of Edison's Exploration and Production (E&P) activity was classified as a discontinued operation within the meaning of IFRS 5 as of 1 January 2019. The 2018 published sales amount

was restated due to the impact linked to the Edison E&P activity presentation as a discontinued operation.

(2) Organic change at comparable scope and exchange rates.

KEY FIGURES AT 30 SEPTEMBER 2019

Organic growth of sales mainly driven by:

favourable market conditions for the Generation & supply activities in France

growth of Group energy services activities

good performance of EDF Trading and better use of the Group’s gas capacities

performance of activities in Belgium and Brazil

SALES 9M 2019 4

HIGHLIGHTS AND DEPLOYMENT OF CAP 2030 (1/3)

RENEWABLE ENERGIES

Record level of projects under construction by EDF Renewables: Start of construction for

2.4GW in 9 months bringing the total under construction at end-September 2019 to 4.7GW

gross (x2 vs. end-December 2018)

Wind power and Offshore

• Launch of the construction of the first French offshore wind farm in Saint-Nazaire

(480MW)

• Acquisition of a pipeline of 300MW wind projects under development in Germany

Solar: commissioning of 2 solar power plants in Egypt at Benban with a total installed

capacity of 130MWp, holding a 25-year power purchase agreement (PPA)

STORAGE AND ELECTRIC

MOBILITY PLANS

Acquisition of Pivot Power, a British company specialised in battery storage and

infrastructure for electric vehicle charging (portfolio of projects with a potential capacity of up

to 2GW)

Acquisition of PowerFlex Systems in the USA, a company combining solar energy

generation and storage with smart charging solutions for electric vehicle technology or

building load

Nissan and EDF Group partner to accelerate the adoption of Electric Vehicle and grid

integration across Europe (smart charging solutions)

SALES 9M 2019 5


CUSTOMERS AND SERVICES

Sales offensive

• 460,000 residential electricity customers under market offers signed-up in France

• More than 1.5 million residential gas customers in France

Dalkia: further commercial development with the renewal or the signature of new contracts

(power network at La Grande Motte and energy facilities for the Nouvelle Aquitaine Regional

Council)

Linky: installation of the 21 millionth smart meter at end-September

REGULATORY DEVELOPMENT

ARENH: volume ceiling maintained for 2020 and price unchanged at this stage

Energy saving certificates (CEE): 1 year extension until 2021 for the 4th period. Draft

decree from the French Ministry of Ecological and Solidarity Transition submitted to the

French State Council on 9 October 2019

Capacity mechanism in Great Britain: Positive decision by European Commission on

24 October 2019, with the British government reinstating the Capacity market

SALES 9M 2019 6


NUCLEAR

Nuclear output

• France: 288.2TWh, -1.8TWh vs. 9M 2018 due to a lower availability of the nuclear fleet

• United Kingdom: 36.8TWh, -9.1TWh vs. 9M 2018 mainly related to extended outages at

Hunterston B and Dungeness B

Taishan (EPR in China)

• Unit 2: commercial commissioning on 7 September 2019

• Unit 1: generation of more than 10TWh since the commissioning

Hinkley Point C(1): project completion cost revised to £21.5bn - £22.5bn(2)

Flamanville 3(3)

• Fuel loading planned for end-2022

• Estimated construction cost revised to €12.4bn(4)

• Start of the second hot functional test phase on site

Fessenheim(5): protocol agreement signature whereby the State will compensate EDF for the

early closure of Fessenheim. This compensation will comprise initial instatements for a total of

nearly €400m

(1) See press release of 25 September 2019.

(2) In 2015 sterling, excluding interim interest and excluding forex effect versus the reference exchange rate for the project of 1 sterling = 1.23 euro.

(3) See press release of 9 October 2019.

(4) In 2015 euros and excluding interim interest.

(5) See press release of 30 September 2019.

SALES 9M 2019 7

(3,301) (3,135)

18,942 20,079

11,57111,437

1,0901,163

2,760

2,903

2,290

2,346

6,466

6,392

5,736

5,659

1,667

1,9382,055

2,159

+1,080 -134 +15 +128 +28 -80 -208 +251 +182 +403

Inter-

segment

elimination

France –

Generation & supply activities

France –

Regulated activities

(In €m)

50,94149,276 (2)

GROUP SALES

Italy

Organic change: +2.9%(1)

France –

Production &

commercialisation

France –

Regulated

activities

United Kingdom

Other

international

Italy

Dalkia

Other activities

9M 2019 9M 2018restated(2)

31 %

49 %36 %

39 %

EDFRenewables

Dalkia

Framatome

EDF Renewables

Framatome


(2) The 2018 sales amount was restated due to the impact linked to the Edison E&P activity presentation as a discontinued operation.

Scope & forex & inter-

segment elimination

United Kingdom

Other international

Other activities

SALES 9M 2019 8

FRANCE NUCLEAR OUTPUT

112.9 111.8

202.6 203.7

290.0 288.2

2019 cumulated output

2018 cumulated output

9MH1

(in TWh)

+0.5%

-0.6%

Q1

-1.0%

SALES 9M 2019 9

2019 cumulative output(1) (2)

2018 cumulative output(1)

(1) Hydropower excluding French islands electrical activities, before deduction of pumped volumes.

(2) After deduction of pumped volumes, output amounts to 23.5TWh in 9M 2017, 32.7TWh in 9M 2018 and 23.0TWh in 9M 2019.

Normal hydro productibility levels

Seasonal mins. and maxs. between 2009and 2019

Dec.Sept.JuneMarch

(In TWh)

FRANCE HYDRO OUTPUT

Q1 H1 9M

2017 cumulative output(1)

-27.6% vs. 9M 2018

10.8

14.6

9.9

21.3

29.4

20.1

28.6

38.0

27.5

-32.2 %vs. Q1 2018

-31.6 % vs. H1 2018

40%

60%

80%

100%

120%

140%

160%

2018

2019

2017

Very

good

rainfall in

October

SALES 9M 2019 10

FRANCE UPSTREAM/DOWNSTREAM BALANCE

(in TWh)

368

-2

-1+1

-10

+3

-9

-15

-12

-0

+18

368

Nuclear

Hydropower(1)

Fossil-firedLT & structured purchases

Purchase obligations Net market sales

Structured sales,auctions and other(2)

ARENH supply

End customers

-9

OUTPUT/PURCHASES CONSUMPTION/SALES

41

57

27

288199

30

90

49

NB: EDF excluding French islands electrical activities.

(1) Hydro output after deduction of pumped volumes: 23.0TWh.

(2) Including hydro pumped volumes of 4.5TWh.

∆ 9M 2019vs. 9M 2018

∆ 9M 2019vs. 9M 2018

SALES 9M 2019 11

+ 48 + 126+ 588 - 73 +155 + 47 + 126 +120

9M 2018

Others(2)

Decrease in net sales:

- decrease in hydro generation

- increase in ARENH subscriptions

- decrease in volumes sold to end customers (excluding ARENH)

- price effect on capacity certificates sold on wholesale markets

Mainly:

- Positive price effects on energy and capacities

- LT contracts and participations evolution

Including:

- Increase in tariffs on 1 June 2019

- End of 2012-2013 tariff catch up on 1 August 2018

Intercompanytransactions (2)

Mainly price effect

18,942

Weather(2)Tariffs(2) (3)

Organic change: +5.7%(1)

FRANCE – GENERATION AND SUPPLY ACTIVITIES

20,079

Downstream market

conditions(2) (4)

(In millions of Euros)

ARENH and purchases/sales

on wholesale markets(2)

9M 2019

Resale ofpurchase

obligations(2)

Energy Savingcertificates

component (2)

(1) Organic change at constant scope and exchange rates.

(2) Estimated figures.

(3) Price effects on regulated sales tariffs customers, excluding the Energy Saving Certificates component in tariff stacking. Increase in tariffs on 1 June 2019 of +7.7%.

(4) Excluding the Energy Saving Certificates component in market offers.

SALES 9M 2019 12

-82 -91 +39

9M 2018 9M 2019

11,571 11,437

Weather(3)

(-2.0TWh)

Other(3)

FRANCE – REGULATED ACTIVITIES(1)

(in millions of Euros)

Tariffs(3)(4)

(TURPE)

Organic change: -1.2%(2)

(1) Regulated activities include Enedis, Électricité de Strasbourg and island activities.


(3) Estimated figures.

(4) Including upward adjustment of the tariffs of the low voltage customers domain ≤ 36 kVA of +1.16 % and indexation of TURPE 5 Distribution of +3.04% and TURPE 5 Transmission of 2.16% at 1 August 2019

(vs. respectively -0.21% and +3% in 2018).

Mainly distribution tariff optimisation by suppliers

SALES 9M 2019 13

(in millions of Euros) 9M 2018 9M 2019 ∆% ∆% org.(1)

SALES(3) 3,292 2,932 -11 -15

RENEWABLE ENERGIES

Growth driven by generation

Positive price impact (portfolio effect)

Generation down -0.6TWh vs. 9M 2018 to 10.7TWh, following 2018-2019 disposals calendar

Net installed capacity: 8.2GW (stable vs. end-2018)


(2) Group Renewables include EDF Renewables and Group hydro generation, as well as the renewable activities of EDF Luminus and Edison.

(3) For renewable energy generation optimised within a larger portfolio of generation assets, in particular relating to the French hydro fleet, sales are estimated, by convention, as the valuation of the

output generated at spot market prices (or at purchase obligation tariff) without taking into account hedging effects, and include the valuation of the capacity, if applicable.

(4) Hydro output after deduction of pumped volumes : 32.7TWWh in 9M 2018 and 23.0TWh in 9M 2019


SALES 1,090 1,163 +6.7 +1.4

GROUP RENEWABLES(2)

Hydro generation: 27.5TWh (4), -10.5TWh vs. 9M 2018, decrease linked to unfavourable hydrological conditions

EDF RENEWABLES

SALES 9M 2019 14


SALES 3,671 3,977 +8 +5

ENERGY SERVICES

Commercial growth, in particular in France

Positive effects of fuel price and price indices revision


(2) Group Energy Services include Dalkia, Citelum, CHAM and services activities of EDF Energy, Edison, Luminus and EDF SA. They consist in particular of street lighting, heating networks,

decentralised low-carbon generation based on local resources, energy consumption management and electric mobility.


SALES 2,760 2,903 +5.2 +4.6

GROUP ENERGY SERVICES(2)

Sustained growth of the services activities in the United Kingdom and in Belgium

DALKIA

SALES 9M 2019 15


SALES 2,290 2,346 +2.4 +1.2

SALES EDF group contribution 1,330 1,296 -2.6 -4.7

Growth in “Installed Base” services activities, in particular in Canada

Ramping up in the “Large Projects” activity linked to the construction of HPC, which istaking over from Taishan following the commissioning of its two EPR

Strategic and commercial developments

Signature in October with Rosatom of 2 contracts for the supply of main Instrumentation & Control system for the nuclear power plants of Hanhikivi-1 in Finland and of PAKS2 in Hungary

Closing on 1 October of FoxGuard Solutions acquisition, who is a specialist in cybersecurity and industrial computing in the USA

Signature in November with CNEIC/CJNF of a letter of intent concerning the supply of components for manufacturing fuel assemblies reloads in China

FRAMATOME


SALES 9M 2019 16

Decrease in nuclear output (-9.1TWh to 36.8TWh) due to the extension of the outages at Hunterston B and Dungeness B in 2019

Missing capacity revenue (following the suspension of the mechanism in November 2018 – Positive decision by the European Commission on 24 October 2019, with the British government reinstating the Capacity market)

Adverse impact of the standard variable tariff cap (SVT cap) since 1 January 2019

Resilience of the downstream business: BtoC customer portfolio stable and increase in volumes sold on the BtoB market


SALES 6,466 6,392 -1.1 -1.2


UNITED KINGDOM

SALES 9M 2019 17

Gas retail

Decrease in gas prices across all markets

Decrease in volume sold on the wholesale market partially offset by a rise involumes sold to B2B customers

Electricity activity

Higher volumes sold to the B2B and B2C customers

Positive price effect on the B2B and B2C segments

(1) The 2018 sales amount was restated due to the impact linked to the Edison E&P activity presentation as a discontinued operation.


ITALY

(in millions of Euros)9M 2018

restated (1) 9M 2019 ∆% ∆% org.(2)

SALES 5,736 5,659 -1.3 -3.6

SALES 9M 2019 18

Belgium (+€83m) (1)

Higher prices in electricity and gas partially offset by lower volumes sold to

residential segment due to a mild weather

Further development in renewables (503MW of wind installed capacity, +14.3%

vs. end-December 2018) and services activities

Brazil (+€144m) (1)

Positive effect of the evolution (without effect on EBITDA) of ICMS(2) tax revision

and of the contractual PPA tariff review for EDF Norte Fluminense electricity

sales, which occurred at the end of 2018

OTHER INTERNATIONAL


(2) Tax on Commerce and Services.


SALES 1,667 1,938 +16.3 +15.1

SALES 9M 2019 19

EDF Trading

Good performance since the beginning of the year thanks to volatility oncommodity market in a bearish price environment and benefiting from favourablepositions on the European power and gas market

Solid contribution from LNG trading and optimisation of activities and LPGactivities

Gas activities

Strong evolution in LNG activity linked to a better use of Group capacities


.

OTHER ACTIVITIES


SALES 2,055 2,159 +5.1 +8.9

o/w EDF Trading 832 846 +1.7 +6.7

SALES 9M 2019 20

• Payout ratio based on Net income

Excluding non-recurring items(4)

• French State committed to scrip for dividends relating to

FY2019 and FY2020

€16.0 - €16.7bn

~€1.1bn vs 2015DECREASE IN OPEX(2)

EBITDA(1)

CONFIRMATION OF 2019 GUIDANCE AND OF 2019-2020 AMBITIONS

TOTAL NET INVESTMENTS(3)

excluding acquisitions and “2019-2020 Group disposals”

45 - 50%DIVIDEND

2019

TARGETS

2019-20

AMBITIONS

>€600m (5)CASH FLOWexcluding HPC and Linky

€2bn to €3bn2019-2020 GROUP DISPOSALS

NET FINANCIAL DEBT / EBITDA(1) (3)≤2.7x

After IFRS 16 application Before IFRS 16 application

€15.3 - €16.0bn

>0

≤2.5x

(1) On the basis of the scope and exchange rates at 01/01/2019 and of an assumption of a 384-388TWh

range for France nuclear output.

(2) Sum of personnel expenses and other external expenses. At comparable scope, IFRS 16 standard and

exchange rates. At constant pension discount rates. Excluding change in operating expenses of service

activities.

(3) For 2020: in accordance with the chosen Group’s scenario regarding the Flamanville 3 project completion

costs and schedule, cf. press release of 9 October 2019.

(4) Adjusted for the remuneration of hybrid bonds accounted for in equity.

(5) The impact of IFRS 16 on cash-flow is derived from the increase in EBITDA, reduced by financial interests

on the IFRS 16 net financial debt.

2019: ~€15bn

2020: ~€15.5bn

SALES 9M 2019 21

SALES AND HIGHLIGHTS

2019

THIRD QUARTER

SALES AND HIGHLIGHTS 2019 - edf.fr · SALES 9M 2019 6 HIGHLIGHTS AND DEPLOYMENT OF CAP 2030 (3/3)...

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