EDF / 2019 Universal registration document

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

dividends paid by the parent company, which were down by €453 million. ■ In 2019, dividends paid comprised a cash dividend of €(31) million and an interim dividend of €(27) million. In 2018, dividends paid comprised a cash dividend of €(60) million and an interim dividend of €(451) million; issuance of perpetual subordinated bonds, which decreased by €750 million. This ■ change reflects the issuance of a €500 million hybrid bond on 26 November 2019, and a €1.25 billion “reset perpetual 6 year non-call hybrid note” on 25 September 2018; issues (see section 5.1.6.1.1.2) and redemption of bonds, which were down by ■ €883 million compared to 2018.

Net indebtedness 5.1.5.2 Net indebtedness comprises total loans and financial liabilities, less cash and cash equivalents and liquid assets. Liquid assets are financial assets consisting of funds or securities with initial maturity of over three months that are readily convertible into cash and are managed according to a liquidity-oriented policy. The Group’s net indebtedness stood at €41,133 million in 2019 and include IFRS 16 from 1 January 2019 for €4,492 million. It stood at €33,388 million at 31 December 2018.

2019  (1)

2018  (2)

Variation

Variation (%)

(in millions of euros)

Operating profit before depreciation and amortisation (EBITDA)

16,708 (1,943) 14,765

14,898 (1,245) 13,653

1,810

+12.1

Cancellation of non-monetary items included in EBITDA

Cash EBITDA

Change in working capital

452

470

Net investments  (3) (excluding 2019-2020 asset disposals, Hinkley Point C and Linky projects) Other items including dividends received from associates and joint ventures

(11,345)

(11,508)

303

383

Operating cash flow  (4)

4,175

2,998 1,937 (309)

1,177

+39.3

Asset disposals

531

Income taxes paid

(922) (798) (394) (801) 1,791

Net financial expenses disbursed

(1,048)

Dedicated assets

(501)

Dividends paid in cash

(1,278)

Operating cash flow before Hinkley Point C and Linky projects

1,799

Hinkley Point C and Linky projects

(2,582)

(2,400)

Group Cash flow  (5)

(791)

(601) 1,243

Issuance of perpetual subordinated bonds Redemptions of perpetual subordinated bonds

493

(1,618)

(1,329)

Other monetary changes

(470)

(22)

(Increase)/decrease in net indebtedness, excluding the impact of changes in exchange rate

(2,386)

(709)

Effect of change in exchange rates Effect of other non-monetary changes

(341)

96

(5,039) (7,766)

121

(Increase)/decrease in net indebtedness of continuing operations (Increase)/decrease in net indebtedness of discontinued operations  (6)

(492)

21

119

Net indebtedness at beginning of period NET INDEBTEDNESS AT END OF PERIOD

33,388 41,133

33,015

33,388 The statements as of 31 December 2019 have been prepared in accordance with IFRS 16 (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) Net investments are operating investments and financial investments for growth, net of disposals. They also include net debts acquired or transferred in (3) acquisitions or disposals of securities, investment subsidies received and non-Group partner investments. They do not include the 2019-2020 asset disposals, Hinkley Point C and Linky projects. Operating cash flow is not an aggregate defined by IFRS as a measure of financial performance, and is not directly comparable with indicators of the same name (4) reported by other companies. This indicator, also known as Funds From Operations (“FFO”), is equivalent to net cash flow from operating activities, changes in working capital after adjustment where relevant for the impact of non-recurring effects, net investments (excluding 2019-2020 asset disposals, Hinkley Point C and Linky projects) and other items including dividends received from associates and joint ventures. Group cash flow is not an aggregate defined by IFRS as a measure of financial performance, and is not comparable with indicators of the same name reported by (5) other companies. It is equivalent to the operating cash flow less asset disposals, income taxes paid, net financial expenses disbursed, dedicated assets, dividend paid in cash, Hinkley Point C and Linky projects. This corresponds to the net indebtedness of Edison’s E&P operations (discontinued operations). (6)

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EDF | Universal registration document 2019

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