EDF / 2018 Reference document

5.

THE GROUP’S PERFORMANCE IN 2018 AND FINANCIAL OUTLOOK Operating and financial review

5.1.4

ANALYSIS OF THE BUSINESS AND THE CONSOLIDATED INCOME STATEMENTS

FOR 2017 AND 2018 Presentation and analysis of the consolidated income statements for 2017 and 2018 is shown at two levels of analysis for Sales and EBITDA: a first focusing on the Group, then a second reporting on the different business segments (France – Generation and supply activities, France – Regulated activities, EDF Renewables (1) , Dalkia, Framatome (2) , United Kingdom, Italy, Other international and Other activities). EBIT (operating profit) and net income are analysed from a general standpoint.

In 2018, for strategic reasons, the Group has modified its segment reporting and now presents EDF Renewables and Dalkia separately (they were previously included in the “Other activities” segment). The segments used by the Group are presented in note 6.1 to the 2018 consolidated financial statements.

2018

2017 (1) 64,892 (32,901) (8,739) (12,456) (3,541)

(in millions of euros)

Sales

68,976 (33,012) (9,364) (13,690) (3,697)

Fuel and energy purchases Other external purchases

Personnel expenses

Taxes other than income taxes

Other operating income and expenses

6,052

6,487

Operating profit before depreciation and amortisation (EBITDA)

15,265

13,742

Net changes in fair value on Energy and Commodity derivatives, excluding trading activities

(224)

(355)

Net depreciation and amortisation

(9,006)

(8,537)

Net increases in provisions for renewal of property, plant and equipment operated under concessions

(50)

(58)

(Impairment)/reversals

(598) (105) 5,282

(518) 1,363 5,637

Other income and expenses Operating profit (EBIT)

Cost of gross financial indebtedness

(1,716) (3,486)

(1,778) (2,959)

Discount effect

Other financial income and expenses

393

2,501

Financial result

(4,809)

(2,236)

Income before taxes of consolidated companies

473 149 569

3,401 (147)

Income taxes

Share in net income of associates and joint ventures

35

GROUP NET INCOME

1,191 1,177

3,289 3,173

EDF net income

Net income attributable to non-controlling interests EARNINGS PER SHARE (EDF SHARE) (IN EUROS) Earnings per share

14

116

0.20 0.20

0.98

Diluted earnings per share 0.98 The figures published at 31 December 2017 have been restated to reflect the impact of application of IFRS 15 on sales. However, no restatements have been (1) made for the first application of IFRS 9 from 1 January 2018, in accordance with the simplified approach allowed by IFRS 9.

Sales 5.1.4.1 Consolidated sales were up by 6.3% corresponding to an organic increase of 4.0%. Change in Group sales 5.1.4.1.1

Variation (%)

Organic growth (%)

2018

2017 (1) 64,892

Variation

(in millions of euros)

Sales

68,976

4,084

+6.3

+4.0

The figures published at 31 December 2017 have been restated to reflect the impact of application of IFRS 15 standard on sales. (1)

Sales amounted to €68,976 million in 2018, up by €4,084 million (+6.3%) from changes in the scope of consolidation (+€1,713 million), which mainly concerned 2017. Excluding the effects of exchange rates (-€203 million), principally the decline the acquisition of Framatome and the sale of the assets of EDF Polska, consolidated in the pound sterling, the US dollar and the Brazilian real against the Euro, and sales showed organic growth of 4.0%.

EDF Renewables, ex EDF Énergies Nouvelles. (1) Framatome has been included in the consolidation since 31 December 2017. Its total net income for 2018 is included in the effect of changes in the scope of consolidation. (2)

288

EDF I Reference Document 2018