EDF / 2018 Reference document

5.

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

The EDF group was able to meet its financing needs by conservative liquidity management, and has obtained financing on satisfactory terms. A range of specific levers are used to manage the Group’s liquidity risk:

active management and diversification of financing sources used by the Group: ■ the Group has access to short-term resources on various markets through programmes for French commercial paper (billets de trésorerie) and US commercial paper. For EDF, the ceilings for these programmes are €6 billion for its French commercial paper and $10 billion for its US commercial paper. At 31 December 2018, the amount of the Group’s commercial paper outstanding was €955 million for French commercial paper, and US$1,193 million for US commercial paper. EDF has access to the world’s main bond markets: the Euro markets through its EMTN programme, which currently has a ceiling of €45 billion, particularly for Euro and sterling issues; and the domestic markets used for stand-alone issues in US dollars (144A bonds), yen (Samurai bonds) and Swiss francs. The Group’s main borrowings at 31 December 2018 are as follows:

the Group’s cash pooling system, which centralises cash management for controlled ■ subsidiaries. The subsidiaries’ cash balances are made available to EDF SA in return for interest, so as to optimise the Group’s cash management and provide subsidiaries with a system that guarantees them market-equivalent financial terms; centralisation of financing for controlled subsidiaries at the level of the Group’s ■ Cash Management Department. Changes in subsidiaries’ working capital are financed by this department in the form of stand-by credit lines provided for subsidiaries, which may also be granted revolving credit from the Group. EDF SA and the investment subsidiary EDF Investissements Groupe (EDF IG), set up in partnership with the bank Natixis Belgique Investissements, also provide medium and long-term financing for EDF group operations outside France, arranged by EDF SA and EDF IG on a totally independent basis: each company sets its own terms, which are the same as the subsidiary would have in an arm’s-length market transaction;

Type of borrowing (in millions of currency units)

Nominal amount

Entity Issue date (1)

Maturity 01/2019 01/2019 01/2020 05/2020 10/2020 01/2021 04/2021 01/2022 03/2023 09/2024 10/2025 11/2025 10/2026 01/2027 03/2027 09/2028 04/2030 10/2030 07/2031 02/2033 06/2034 10/2036 09/2038 01/2039 11/2040 10/2041 01/2044 10/2045 10/2045 09/2048 09/2050 10/2056 01/2114

Currency

Rate

Bond Bond Bond

EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF

01/2009 01/2014 01/2010 05/2008 10/2015 01/2009 11/2013 01/2012 09/2012 09/2009 10/2015 11/2010 10/2016 01/2017 03/2012 09/2018 04/2010 10/2018 07/2001 02/2003 06/2009 10/2016 09/2018 01/2009 11/2010 10/2011 01/2014 10/2015 10/2015 09/2018 09/2010 10/2016 01/2014

2,000 1,250 1,400 1,200 1,500 2,000 1,400 2,000 2,000 2,500 1,250

USD USD USD EUR USD EUR EUR EUR EUR EUR USD EUR EUR JPY EUR USD EUR EUR GBP EUR GBP EUR USD USD EUR GBP USD USD USD USD GBP USD GBP

6.50% 2.15% 4.60% 5.38% 2.35% 6.25% 2.25% 3.88% 2.75% 4.63% 3.63% 4.00% 1.00% 1.09% 4.13% 4.50% 4.63% 2.00% 5.88% 5.63% 6.13% 1.88% 4.88% 6.95% 4.50% 5.50% 4.88% 4.75% 4.95% 5.00% 5.13% 4.99% 6.00%

Euro MTN

Bond

Euro MTN

Euro MTN (green bond)

Euro MTN Euro MTN Euro MTN

Bond (green bond)

Euro MTN

750

Euro MTN (green bond)

1,750

Bond

107,900

Euro MTN

1,000 1,800 1,500 1,000

Bond

Euro MTN Euro MTN Euro MTN Euro MTN Euro MTN Euro MTN

650 850

1,500

750 650

Bond Bond

1,750

Euro MTN Euro MTN

750

1,250 1,000 1,500 1,150 1,300 1,000 2,164 1,350

Bond Bond Bond Bond

Euro MTN Euro MTN

Bond

Date funds were received. (1)

300

EDF I Reference Document 2018