EDF / 2019 Universal registration document

5. The Group’s financial performance and outlook Operating and financial review in 2019

Operating and financial review in 2019 5.1

Key figures 5.1.1 Pursuant to European regulation no. 1606/2002 of 19 July 2002 on the adoption of international accounting standards, the EDF group’s consolidated financial statements for the year ended 31 December 2019 are prepared under the international accounting standards published by the IASB and approved by the European Union for application at 31 December 2019. These international standards are IAS (International Accounting Standards), IFRS (International Financial Reporting Standards), and SIC and IFRIC interpretations. The Group’s accounting policies are presented in note 1 to the consolidated financial statements for the year ended 31 December 2019. The figures presented in this document are taken from the EDF group’s consolidated financial statements at 31 December 2019.

Since 1 January 2019, the Group has applied IFRS 16 “Leases” under the modified retrospective approach. Restatement of comparative figures for the impacts of application of IFRS 16 is not required. Consequently, the financial statements at 31 December 2019 are prepared with no prior year restatements (see note 2.1 to the 2019 consolidated financial statements). The sale of Edison’s Exploration and Production (E&P) operations was classified as a discontinued operation as defined by IFRS 5 from 1 January 2019. As a result, the net income of discontinued operations is reported on a specific line of the income statement for the periods published. The impact of application of IFRS 5 on the figures published in 2018 is presented in note 2.3 to the 2019 consolidated financial statements. The Group’s key figures for 2019 are shown in the following tables:

EXTRACT FROM THE CONSOLIDATED INCOME STATEMENT

Organic growth (%)

2019  (1)

2018  (2)

Variation Variation (%)

(in millions of euros)

Sales

71,317 16,708

68,546 14,898

2,771 1,810 1,306 5,743 3,978 1,419

+4.0

+3.5 +8.4

Operating profit before depreciation and amortisation (EBITDA)

+12.1 +23.9

Operating profit (EBIT)

6,760 6,399 5,155 3,871

5,454

+25.4

Income before taxes of consolidated companies

656

n.a. n.a.

n.a. n.a.

EDF net income

1,177 2,452

Net income excluding non-recurring items  (3)

+57.9

+60.8

not applicable. n.a.: The financial statements at 31 December 2019 apply IFRS 16 from 1 January 2019. In accordance with the new standard’s transition provisions, the comparative (1) figures have not been restated. The published figures for 2018 have been restated due to the impact of presenting the E&P operations as discontinued operations. (2) Net income excluding non-recurring items is not defined by IFRS, and is not directly visible in the Group’s consolidated income statement. It corresponds to the (3) Group’s share of net income (EDF net income) excluding non-recurring items, net changes in the fair value of energy and commodity derivatives (excluding trading activities), and net changes in the fair value of debt and equity instruments, net of tax (see section 5.1.4.10 “Net income excluding non-recurring items”).

FROM EDF NET INCOME TO NET INCOME EXCLUDING NON-RECURRING ITEMS

2019

2018

(in millions of euros)

EDF net income

5,155

1,177

Other, including net changes in fair value on energy and commodity derivatives, excluding trading activities and changes in the fair value of debt and equity instruments

(2,167)

777 498

Impairment

883

Including impairment booked by Edison related to the sale of E&P operations (in application of IFRS 5)

500

228

NET INCOME EXCLUDING NON-RECURRING ITEMS

3,871

2,452

Payments to bearers of perpetual subordinated bonds

(589)

(584)

NET INCOME EXCLUDING NON-RECURRING ITEMS, ADJUSTED FOR PAYMENTS ON HYBRID BONDS

3,282

1,868

244

EDF | Universal registration document 2019

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