EDF / 2020 Universal Registration Document

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

Operating profit (EBIT) 5.1.4.3 The Group’s consolidated EBIT for 2020 amounted to €3,875 million, down by €2,882 million (-42.7%) from 2019, with an organic decrease of €2,810 million (-41.6%).

2020

2019 (1)

Variation

Variation (%)

(in millions of euros)

EBITDA

16,174

16,723

(549)

-3.3

Net changes in fair value on Energy and Commodity derivatives, excluding trading activities

(175)

642

(817) (818) (396) (302)

-127.3

Net depreciation and amortisation (2)

(10,838)

(10,020)

+8.2

(Impairment)/reversals

(799) (487)

(403) (185)

+98.3

Other income and expenses

+163.2

EBIT -42.7 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). Including net increases to provisions for replacement of concession assets. (2) 3,875 6,757 (2,882)

Net changes in fair value on Energy and 5.1.4.3.1 Commodity derivatives, excluding trading activities The net changes in fair value on Energy and Commodity derivatives, excluding trading activities, fell from €642 million in 2019 to -€175 million in 2020, a change of €817 million that is in line with EDF Trading’s operations on behalf of EDF entities and Edison’s gas positions. Net depreciation and amortisation 5.1.4.3.2 Net depreciation and amortisation increased by €818 million compared to 2019. The France – Generation and supply segment registered a €566 million increase in net depreciation and amortisation. This rise is essentially explained by the commissioning of new facilities in the nuclear fleet, and to a lesser degree by accelerated depreciation of the coal-fired fleet from 1 June 2019. The France – Regulated activities segment registered a €114 million increase in net depreciation and amortisation, principally attributable to investments in connections and network reinforcements. Net depreciation and amortisation in the United Kingdom rose by €113 million in 2020, notably due to accelerated depreciation of Hunterston B, Dungeness and Hinkley Point B.

Impairment/reversals 5.1.4.3.3 In 2020, impairment amounted to €799 million, and mainly related to impairment of nuclear activities in the United Kingdom. Other income and expenses 5.1.4.3.4 In 2020, other income and expenses amounted to -€487 million, of which -€405 million concerned the France – Generation and supply segment, principally for repair work to containment penetration welds at the Flamanville 3 site (1) . In 2019, other income and expenses amounted to -€185 million. This particularly included the expense for the preferential employee shareholding offer which took place during the first half of 2019 (see note 15 to the 2019 consolidated financial statements) and restructuring provisions in certain Group entities.

Financial result 5.1.4.4

2020

2019*

Variation

Variation (%)

(in millions of euros)

Cost of gross financial indebtedness

(1,610) (3,733)

(1,806) (3,161)

196

-10.9 +18.1 -40.0

Discount effect

(572)

Other financial income and expenses

2,761

4,603 (364)

(1,842) (2,218)

Financial result

(2,582)

n.a

: not applicable n.a 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).

(1) Recognised in accordance with IAS 16.22 concerning abnormal costs incurred in connection with self-constructed assets. These costs affect the EDF net income but have no impact on net income excluding non-recurring items.

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EDF - UNIVERSAL REGISTRATION DOCUMENT 2020