EDF / 2020 Universal Registration Document

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

31/12/2020

31/12/2019

Variation

Variation (%)

(in millions of euros)

Loans and other financial liabilities Derivatives used to hedge liabilities

65,591 (1,986) (6,270) (15,028)

67,380 (3,387) (3,934) (18,900)

(1,789) (1,401)

-2.7

-41.4 +59.4 -20.5 -34.6 +2.8

Cash and cash equivalents

2,336

Debt and equity securities – liquid assets Net indebtedness of assets held for sale

(3,872)

(17)

(26)

(9)

NET INDEBTEDNESS*

42,290

41,133

1,157

Net indebtedness is not defined in the accounting standards and is not directly visible in the Group’s consolidated balance sheet. *

Operating cash flow (1) 5.1.5.1.1 The operating cash flow (1) amounted to €3,236 million in 2020 compared to €4,138 million in 2019, a decrease of €902 million. Cash EBITDA 5.1.5.1.1.1 EBITDA adjusted for non-cash items amounted to €16,502 million, up by €1,709 million from 2019, mainly due to settlements of underlying positions on EDF Trading’s financial instruments, and to a lesser extent, to the higher gross margin on deliveries by Enedis.

This change was mainly due to the higher stocks of capacity certificates and energy savings certificates, and the increase in margin calls in the optimisation/trading activity in 2020. The difference between the 2019 and 2020 change in working capital (-€2,154 million) is essentially explained by the increase in stocks (-€898 million) and the increase in margin calls in the optimisation/trading activity (-€1,235 million). Net investments (excluding 2019-2020 5.1.5.1.1.3 disposals and the Hinkley Point C and Linky projects) Net investments including 2019-2020 disposals, and the Hinkley Point C and Linky projects amounted to €14.1 billion in 2020. Net investments (excluding 2019-2020 disposals and the Hinkley Point C and Linky projects) amounted to €11,570 million in 2020 compared to €11,433 million in 2019, an increase of €137 million. Details are as follows:

Change in working capital 5.1.5.1.1.2 Working capital deteriorated by -€1,679 million in 2020.

2020

2019*

Variation

Variation (%)

(in millions of euros)

France – Generation and supply France – Regulated activities

5,484 3,367

6,329 3,622 (276)

(845) (256) 1,089

-13.4

-7.0

EDF Renewables

812 180 219 732 531 207

+394.2

Dalkia

138 134 659 433 309

42 85 73 98

+30.4 +63.4 +11.1 +22.6 -33.0 -55.8

Framatome

United Kingdom

Italy

Other international

(102)

Other activities

38

86

(48) 137

NET INVESTMENTS +1.2 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 * consolidated financial statements). 11,570 11,433

Cash flow before the Hinkley Point C and 5.1.5.1.2 Linky projects The cash flow before the Hinkley Point C and Linky projects was amounting to -€134 million in 2020 (compared to €1,757 million in 2019). Asset disposals 5.1.5.1.2.1 Asset disposals generated €187 million in 2020, and principally concerned the sale of Edison’s Exploration & Production operations. Dedicated assets 5.1.5.1.2.2 In compliance with the French Law no. 2006-739 of 28 June 2006 on the sustainable management of radioactive materials and waste, EDF has built up a portfolio of dedicated assets for secure financing of its long-term nuclear obligations (see section 7.1.6). Overall, the changes in dedicated assets comprise: allocations to reach full coverage of obligations; reinvestment of financial income (dividends and interest) generated by these assets;

Net investments by the France – Generation and supply segment decreased by €845 million, due to lower nuclear maintenance expenses, lower investments in the Flamanville 3 project, and the acquisition of Framatome in 2019. Net investments by the France – Regulated activities segment, excluding Linky, were down by -€256 million as a result of the Covid-19 pandemic which led to postponement or cancellation of certain work, despite Enedis’ swift resumption of activity after the end of the first national emergency period. Net investments by EDF Renewables were up by €1,089 million. Investments in 2019 were reduced by the sale of the NnG wind farm, an operation with no equivalent in 2020. In the United Kingdom , net investments rose by €73 million despite the lower expenditure on nuclear maintenance work, and essentially concerned the acquisition of Pod Point in the electric mobility sector and the financing of the Sizewell and Bradwell nuclear projects. In Italy , net investments increased by €98 million, notably due to thermal power plant development projects.

(1) Excluding the 2019/2020 asset disposal plan and investments in the Hinkley Point C and Linky projects.

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EDF - UNIVERSAL REGISTRATION DOCUMENT 2020