EDF / 2020 Universal Registration Document

5 THE GROUP’S FINANCIAL PERFORMANCE AND OUTLOOK Review of the financial situation and results 2020

Sales 5.1.4.1 Sales amounted to €69,031 million in 2020, a decrease of €2,316 million (-3.2%).

3.4%. The impacts of the Covid-19 pandemic had an unfavourable effect on Group

Excluding the effect of movements in exchange rates (-€338 million) and changes in sales estimated at -€2,306 million. the scope of consolidation (+€417 million), sales registered an organic decrease of Change in Group sales 5.1.4.1.1

2020

2019*

Variation

Variation (%) Organic variation (%)

(in millions of euros)

Sales -3.4 The published figures for 2019 have been restated for the impact of the change in the scope of the E&P disposal (see note 1.4.2 to the 2020 consolidated financial * statements). 69,031 71,347 (2,316) -3.2

Change in sales by segment 5.1.4.1.2 The following table shows a breakdown of sales by segment, excluding inter-segment eliminations.

Organic variation (%)

2020

2019 (1)

Variation Variation (%)

(in millions of euros)

France – Generation and supply (2) France – Regulated activities (3)

28,361 16,228

27,870 16,087

491 141

+1.8 +0.9 +1.1 -1.6 -2.4 -5.6 -21.5 -10.0 -22.0

+0.7 +0.9 +7.6 -9.3 -3.1 -2.0 -21.7

EDF Renewables

1,582 4,212 3,295 9,041 5,967 2,420 2,127

1,565 4,281 3,377 9,574 7,597 2,690 2,728

17

Dalkia

(69) (82)

Framatome

United Kingdom

(533)

Italy

(1,630)

Other international

(270) (601)

-5.1

Other activities

-20.8

Inter-segment eliminations

(4,202) 69,031

(4,422) 71,347

220

-5.0 -3.2

-4.2

GROUP SALES -3.4 The published figures for 2019 have been restated for the impact of the change in the scope of the E&P disposal (see note 1.4.2 to the 2020 consolidated financial (1) statements). Generation, supply and optimisation in mainland France, and sales of engineering and consulting services. (2) Regulated activities comprise distribution in mainland France, which is carried out by Enedis, EDF’s island activities and the activities of Électricité de Strasbourg. In (3) mainland France, distribution network activities are regulated via the network access tariff TURPE (Tarifs d’Utilisation des Réseaux Publics d’Électricité). Enedis is an independent EDF subsidiary as defined in the French Energy Code. (2,316)

France – Generation and supply 5.1.4.1.2.1 Sales by the France – Generation and supply segment amounted to €28,361 million, an increase of €491 million (+1.8%) and an organic increase of €206 million (+0.7%) from 2019. The impact of the Covid-19 crisis is estimated at -€1,083 million. Energy sales decreased by -€708 million despite a positive energy price effect amounting to +€1,215 million that could not compensate for the -€1,923 million volume effect associated with the substantial decrease in nuclear output. Downstream market conditions had a positive effect estimated at +€487 million on the change in sales. This increase primarily results from the larger tariff adjustment than in 2019 (+€256 million), the increase in ESC costs in the bids (+€80 million), and the capacity invoiced to final customers (+€60 million). Resales of electricity subject to purchase obligations were down by -€97 million, mainly as a result of lower spot market prices in the first half of the year, partly offset by a rise in capacity prices (the effect on EBITDA was neutral because expenses relating to purchase obligations are covered by the CSPE mechanism). Capacity auction sales had a positive impact, as due to a change in regulations these sales concerned one more delivery year than in 2019 (see section 5.1.4.2.2.1 "France generation and supply"). A number of other factors, including the results of sales subsidiaries, also contributed to the favourable change in sales.

Electricity generation Nuclear output in France came out at 335.4TWh, down by 44.1TWh vs. 2019, of which roughly 33TWh (1) related to the health crisis. The health crisis extended the duration of outages owing to the introduction of health restrictions and called for a complete reorganisation of the outages schedule. In addition, 2020 was marked by the extension of the outages of Flamanville 1 and 2, and of Paluel 2. The two reactors at Fessenheim were shut down definitively in 2020, following the decision of an early closure of the plant by the French government (2) . Gross hydropower generation stood at 44.7TWh (3) , up by 12.6% (+5.0TWh) vs. 2019. This increase is explained by hydrological conditions that were slightly better than the historical average in 2020, whereas they were much lower than average in 2019 (see section 2.4 “Weather conditions: temperatures and rainfall”). Thermal generation facilities were used to produce 8.8TWh, -1.0TWh less than in 2019.

(1) Figures are estimates. See note 1.4 “Comparability (including the effect of the Covid-19 pandemic)” in the Group’s audited financial statements at 31 December 2020. (2) Under the terms of the protocol signed between EDF and the State, an amount of €370m has been received in 2020 as initial payments corresponding to the anticipation of expenditure related to the closure of the plant. (3) After deduction of pumped-storage hydropower volumes, hydropower production stood at 38.5TWh for 2020 (33.4TWh for 2019).

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EDF - UNIVERSAL REGISTRATION DOCUMENT 2020