EDF / 2020 Universal Registration Document

5 THE GROUP’S FINANCIAL PERFORMANCE AND OUTLOOK Review of the financial situation and results 2020 Net indebtedness 5.1.5.1 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 was €42,290 million at 31 December 2020. It stood at €41,133 million at 31 December 2019.

5.1.5

Cash flow and net indebtedness

For details of the cash flows in the cash flow statement, see the 2020 consolidated financial statements and the relevant notes:. consolidated Cash Flow Statement; note 10.6 “Assets in progress” and note 10.7 “Investments in intangible assets and property, plant and equipment”; note 13 “Working capital”; note 19 “Financial indicators” and note 19.2 “Net indebtedness”.

2020

2019 (1)

Variation

Variation (%)

(in millions of euros)

Operating profit before depreciation and amortisation (EBITDA)

16,174

16,723 (1,930) 14,793

(549)

-3.3

Cancellation of non-monetary items included in EBITDA

328

Cash EBITDA

16,502 (1,679)

Change in working capital

475

Net investments (2) (excluding 2019-2020 disposals and the Hinkley Point C and Linky projects) Other items including dividends received from associates and joint ventures

(11,570)

(11,433)

(17)

303

3,236

4,138

(902)

-21.8

Operating cash flow (3)

Asset disposals

187

531

Income taxes paid

(983)

(915) (802) (394) (801) 1,757

Net financial expenses disbursed

(1,008)

Dedicated assets

(798) (768) (134)

Dividends paid in cash

Cash flow before the Hinkley Point C and Linky projects

Hinkley Point C and Linky projects

(2,575) (2,709)

(2,582)

(825)

Group cash flow (4)

Issues of hybrid notes and OCEANE bonds

2,243

493

Redemption of hybrid notes Other monetary changes

-

(1,618)

(49)

(470)

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

(515)

(2,420)

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

445

(341)

(1,077) (1,147)

(5,039) (7,800)

(Increase)/decrease in net indebtedness of continuing operations (Increase)/decrease in net indebtedness of discontinued operations (5)

(10)

55

Net indebtedness at beginning of year NET INDEBTEDNESS AT END OF YEAR

41,133 42,290

33,388

41,133 The published figures for 2019 (except NFD) 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 (1) consolidated financial statements). Net investments are operating investments and financial investments for growth, net of disposals. They also include net debts acquired or transferred in (2) acquisitions or disposals of securities, investment subsidies received, and non-Group partner investments. They do not include the 2019-2020 disposals or investments in the 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 (3) 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 disposals and investments in the 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 directly comparable with indicators of the same name (4) reported by other companies. It is equal to the operating cash flow defined in note (2) above less asset disposals, income taxes paid, net financial expenses

disbursed, net allocations to dedicated assets, dividends paid in cash and investments in the Hinkley Point C and Linky projects. This corresponds to the net indebtedness of Edison’s discontinued E&P operations that are currently in the process of sale. (5)

283

EDF - UNIVERSAL REGISTRATION DOCUMENT 2020