EDF / 2018 Reference document

5.

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

Net capex Net capital expenditure amounted to €15,575 million in 2018, up by €1,968 million (+14.5%) from 2017. Changes in the Group’s net capital expenditure over the period were as follows:

2018

2017

Variation Variation (%)

(in millions of euros)

France – Generation and supply activities

5,507 4,308 1,898

5,822 3,995

(315)

-5.4 +7.8

France – Regulated activities

313

EDF Renewables

756 352

1,142

n.a.

Dalkia

385 261

33

+9.4

Framatome

-

261 553 225

n.a.

United Kingdom

2,938

2,385

+23.2

Italy

407 199

182 309

n.a.

Other international

(110) (134) 1,968

-35.6 +69.1 +14.5

Other activities

(328)

(194)

15,575

13,607

NET CAPEX

n.a.: not applicable.

Capital expenditure is one of the components of net investments for which details are given in section 5.1.5.2 “Net indebtedness”. Acquisitions/disposals of equity investments, net of cash (acquised/transferred) New investments in 2018, net of cash acquired, were down by €1,979 million from 2017 to €484 million. This decrease is mainly explained by the acquisition in 2017 of 75.5% of Framatome for €1,868 million.

Disposals of investments, net of cash transferred, were down by €1,211 million to €1,261 million in 2018. This change primarily reflects the sale of 49.9% of CTE in 2017 for €1,282 million. Changes in financial assets The change in financial assets in 2018 was a decrease of -€2,367 million, principally corresponding to sales of liquid assets (other than dedicated assets). The change in financial assets in 2017 was an increase of +€1,885 million, principally corresponding to sales of liquid assets (other than dedicated assets).

Net cash flow from financing activities 5.1.5.1.3 (in millions of euros)

2018

2017

Variation Variation (%)

EDF capital increase

-

4,005

(4,005)

-

Transactions with non-controlling interests (1)

1,548 (511) (183)

481

1,067 (402)

n.a. n.a.

Dividends paid by parent company

(109) (183)

Dividends paid to non-controlling interests

-

-

Purchases/sales of treasury shares Cash flows with shareholders

(3)

(6)

3

-50.0 -79.7 +96.9 -54.9

851

4,188 2,901

(3,337)

Issuance of borrowings Repayment of borrowings

5,711

2,810 3,460 1,243

(2,844)

(6,304)

Issuance of perpetual subordinated bonds Redemptions of perpetual subordinated bonds Payments to bearers of perpetual subordinated bonds

1,243

- -

n.a. n.a.

(1,329)

(1,329)

(584)

(565)

(19) (13)

+3.4 -9.0 +0.9 n.a.

Funding contributions received for assets operated under concessions

131 351

144 348

Investment subsidies

3

Other cash flows from financing activities NET CASH FLOW FROM FINANCING ACTIVITIES

2,679 3,530

(3,476)

6,155 2,818

712

n.a.

Contributions via capital increases and reductions and acquisitions of additional interests in controlled companies. (1) : not applicable. n.a.

transactions with non-controlling interests, which increased by €1,067 million. In ■ 2018, these transactions include £701 million received for sale to Dalmore Capital Limited and Pensions Infrastructure Platform of a 49% stake in twenty-four UK wind farms (around 550MW), and €743 million corresponding to CGN’s contribution to the Hinkley Point C capital increases. In 2017, transactions with non-controlling interests included an amount of €501 million for CGN’s contribution to earlier capital increases at Hinkley Point C; EDF’s capital increase in 2017, amounting to €4,005 million. ■

Cash flows related to financing activities generated a net inflow of €3,530 million in 2018, up by €2,818 million from 2017. This change is primarily attributable to the following: issuance of a 3-tranches senior bond totalling €3.75 billion on 19 September 2018, ■ and a single-tranche €1 billion bond on 25 September;

296

EDF I Reference Document 2018