EDF / 2019 Universal registration document

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

Net capex Net capital expenditure amounted to -€16,615 million in 2019, up by €1,176 million (+7.6%) from 2018. Changes in the Group’s net capital expenditure over the period were as follows:

2019

2018

Variation

Variation (%)

(in millions of euros)

France – Generation and supply activities

(6,074) (4,601) (1,598)

(5,507) (4,308) (1,898)

(567) (293)

+10.3 +6.8 -15.8 -30.1 -20.3 +13.9

France – Regulated activities

EDF Renewables

300 116

Dalkia

(269) (208)

(385) (261)

Framatome

53

United Kingdom

(3,345)

(2,938)

(407)

Italy

(286) (223)

(271) (199)

(15) (24)

+5.5

Other international

+12.1

Other activities

(11)

328

(339)

n.a.

NET CAPEX

(16,615)

(15,439)

(1,176)

+7.6

not applicable. n.a.:

Capital expenditure is one of the components of net investments for which details are given in section 5.1.5.2.1.2 “Net investments (excluding 2019-2020 disposals, Hinkley Point C and Linky projects)”. Acquisitions/disposals of equity investments, net of cash acquired/transferred New investments in 2019, net of cash acquired, amounted to €456 million and chiefly concerned acquisition of companies by EDF Renewables.

Disposals of investments, net of cash transferred, were down by €968 million from 2018 to €293 million in 2019. This change primarily reflects the sale of Dunkerque LNG in 2018. Changes in financial assets The change in financial assets in 2019 was an increase of +€1,294 million, principally corresponding to sales of liquid assets (other than dedicated assets). The change in financial assets in 2018 was a decrease of -€2,367 million, principally corresponding to acquisitions of liquid assets (other than dedicated assets).

Net cash flow from financing activities 5.1.5.1.3

2019  (1)

2018  (2)

Variation

Variation (%)

(in millions of euros)

Transactions with non-controlling interests  (3)

1,055

1,548 (511) (183)

(493)

-31.8 -88.6 -15.3

Dividends paid by parent company

(58)

453

Dividends paid to non-controlling interests

(155)

28

Purchases/sales of treasury shares Cash flows with shareholders

(14) 828

(3)

(11) (23)

n.a. -2.7

851

Issuance of borrowings Repayment of borrowings

9,080

5,711

3,369

+59.0

(6,976)

(2,724)

(4,252)

n.a.

Issuance of perpetual subordinated bonds Redemptions of perpetual subordinated bonds Issuance of perpetual subordinated bonds

493

1,243

(750)

-60.3 -3.7 +0.9 +9.2 +54.7 -49.5 -38.6

(1,280)

(1,329)

49 (5) 12

(589)

(584)

Funding contributions received for assets operated under concessions

143 543

131 351

Investment subsidies

192

Other cash flows from financing activities

1,414 2,242

2,799 3,650

(1,385) (1,408)

NET CASH FLOW FROM CONTINUING FINANCING ACTIVITIES NET CASH FLOW FROM FINANCING ACTIVITIES RELATING TO DISCONTINUED OPERATIONS

(19)

(120) 3,530

101

-84.2 -37.0

NET CASH FLOW FROM FINANCING ACTIVITIES

2,223

(1,307)

not applicable. n.a.: The financial statements at 31 December 2019 apply IFRS 16 from 1 January 2019 (see note 2.1 to the 2019 consolidated financial statements). (1) The published figures for 2018 have been restated due to the impact of presenting the E&P operations as discontinued operations. (2) Contributions via capital increases and reductions and acquisitions of additional interests in controlled companies. (3)

Cash flows related to financing activities generated a net inflow of €2,223 million in 2019, down by €1,307 million from 2018. This change is primarily attributable to the following: transactions with non-controlling interests, which decreased by €493 million. ■ In 2019, these transactions include €951 million corresponding to CGN’s

contribution to the Hinkley Point C capital increases. In 2018, transactions with non-controlling interests included £701 million received for the 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;

263

EDF | Universal registration document 2019