EDF / 2018 Reference document

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

5.1.5 Cash flow 5.1.5.1

CASH FLOW AND NET INDEBTEDNESS

2018

2017 Variation Variation (%)

(in millions of euros)

Net cash flow from operating activities Net cash flow used in investing activities Net cash flow from financing activities

13,364

11,663

1,071

+14.6 +46.5

(17,165)

(11,713)

(5,452)

3,530 (271) 3,692 (271)

712 662

2,818 (933)

n.a. n.a.

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

Cash and cash equivalents – opening balance Net increase (decrease) in cash and cash equivalents

2,893

799

+27.6

662 (13)

(933)

n.a. n.a.

Effect of currency fluctuations

(95)

(82)

Financial income on cash and cash equivalents

13

21

(8)

-38.1

Effect of reclassifications

(49)

129

(178) (401)

n.a.

3,290

3,692

-10.9

CASH AND CASH EQUIVALENTS – CLOSING BALANCE

n.a.: not applicable.

5.

Net cash flow from operating activities 5.1.5.1.1 (in millions of euros)

2018

2017 Variation Variation (%)

Income before taxes of consolidated companies

473 598

3,401

(2,928)

-86.1 +15.4 +32.1 +59.3 -63.0 -68.7 +8.6 -12.2 -49.5 +14.6 -4.6

(Impairment)/reversals

518

80

Accumulated depreciation and amortisation, provisions and changes in fair value

13,180

9,980

3,200

Financial income and expenses

729 387

764 243

(35) 144

Dividends received from associates and joint ventures

Capital gains/losses

(1,014)

(2,739)

1,725

Change in working capital

462

1,476

(1,014)

Net cash flow from operations Net financial expenses disbursed

14,815 (1,062)

13,643 (1,209)

1,172

147 382

Income taxes paid

(389)

(771)

13,364

11,663

1,701

NET CASH FLOW FROM OPERATING ACTIVITIES

a decrease in capital gains (+€1,725 million compared to 2017, essentially ■ reflecting the sale of 49.9% of CTE for €1,462 million in 2017). Net cash flow used in investing activities 5.1.5.1.2 The net cash outflow for investing activities in 2018 amounted to €17,165 million, compared to €11,713 million in 2017. The following table sets forth the breakdown of the net cash flow used in investing activities between purchases and disposals of property, plant and equipment and intangible assets, acquisitions and disposals of companies net of cash acquired/transferred, and the change in financial assets:

The net cash flow from operating activities amounted to €13,364 million in 2018, up by €1,701 from 2017. This change primarily includes a €1,172 million increase in the net cash flow from operations, resulting from: the change in the pre-tax income of consolidated companies after correction for ■ impairment, depreciation, provisions and changes in fair value, which totalled €14,251 million in 2018 against €13,899 million in 2017, an increase of €352 million; the smaller change in working capital (-€1,041 million compared to 2017); ■

2018

2017 Variation Variation (%)

(in millions of euros)

Investments in intangible assets and property, plant and equipment Net proceeds from sale of intangible assets and property, plant and equipment

(16,186)

(14,747)

(1,439)

+9.8 -46.4 +14.5 -80.3 -49.0

611

1,140

(529)

Net capex

(15,575)

(13,607)

(1,968)

Acquisitions of equity investments, net of cash acquired Disposals of equity investments, net of cash transferred

(484) 1,261

(2,463)

1,979

2,472 1,885

(1,211) (4,252) (5,452)

Changes in financial assets

(2,367) (17,165)

n.a.

(11,713)

+46.5

NET CASH FLOW USED IN INVESTING ACTIVITIES

n.a.: not applicable.

295

EDF I Reference Document 2018