EDF / 2020 Universal Registration Document

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

At 31 December 2020, the residual maturities of financial liabilities (including interest payments) are as follows under IFR 9 (valued on the basis of exchange and interest rates at 31 December 2020):

Hedging instruments*

Guarantees given on borrowings

31 December 2020 (in millions of euros)

Debt

Interest rate swaps

Currency swaps

2020

13,386 22,355 73,234

(318)

(362)

51

2021 - 2024 2025 and later

(1,069) (1,179) (2,566)

(1,334) (5,356) (7,052)

495 403 949

TOTAL

108,975

debt repayment (Principal)

64,371 44,604

interest

Data on hedging instruments include both assets and liabilities. *

analyses of liquidity requirements were updated during the crisis of March and at 30 June 2020, indicating potentially higher requirements due to the consequences of the Covid-19 pandemic. EDF decided to transfer securities under repurchase agreements during the crisis in March, creating substantial liquidities. These agreements were gradually terminated from the summer onwards. At 31 December 2020, the amount of the Group’s commercial paper outstanding was €2,071 million for French commercial paper, and US$263 million for US commercial paper. EDF has access to the world’s main bond markets: the Euro markets through its EMTN programme, which currently has a ceiling of €45 billion, particularly for Euro and sterling issues; and the domestic markets used for stand-alone issues in US dollars (144A bonds), yen (Samurai bonds) and Swiss francs. Details of the Group’s main borrowings at 31 December 2020 are provided in note 18.3.2.2 to the 2020 consolidated financial statements. At 31 December 2020, EDF SA has an overall amount of €10,344 million in available credit facilities (syndicated credit and bilateral lines): the syndicated credit line amounts to €4 billion and expires in December 2025. No drawings had been made on this syndicated credit line at 31 December 2020; bilateral lines represent an available amount of €5,944 million, with expiry dates extending to June 2024. The level of this available financing is very frequently reviewed to ensure the Group has sufficient backup credit facilities; the amount available from the credit lines with the European Investment Bank is €400 million. Four of the five credit lines were fully drawn at 31 December 2020 for amounts of €500 million, €225 million, €500 million and €250 million. Edison has a credit line with the European Investment Bank for €689 million (available amount €400 million) and a credit line with a pool of banks for €130 million, which was drawn to the extent of €100 million at 31 December 2020.

The EDF group was able to meet its financing needs by conservative liquidity management and has obtained financing on satisfactory terms. A range of specific levers are used to manage the Group’s liquidity risk: the Group’s cash pooling system, which centralises cash management for controlled subsidiaries. The subsidiaries’ cash balances are made available to EDF SA in return for interest, so as to optimise the Group’s cash management and provide subsidiaries with a system that guarantees them market-equivalent financial terms; centralisation of financing for controlled subsidiaries at the level of the Group’s Cash Management Department. Changes in subsidiaries’ working capital are financed by this department in the form of stand-by credit lines provided for subsidiaries, which may also be granted revolving credit from the Group. EDF SA and the investment subsidiary EDF Investissements Groupe (EDF IG), set up in partnership with the bank Natixis Belgique Investissements, also provide medium and long-term financing for EDF group operations outside France, arranged by EDF SA and EDF IG on a totally independent basis: each company sets its own terms, which are the same as the subsidiary would have in an arm’s-length market transaction; active management and diversification of financing sources used by the Group: the Group has access to short-term resources on various markets through programmes for French commercial paper and US commercial paper. For EDF, the ceilings for these programmes are €6 billion for the NEU CP programmes and $10 billion for its US commercial paper; transfer of bond liabilities to banking counterparties under cash repurchase agreements;

Credit rating 5.1.6.1.2 At 31 December 2020, the financial ratings agencies Standard & Poor’s, Moody’s and Fitch Ratings attributed the following long-term and short-term ratings to EDF group entities:

Company

Agency

Long-term rating

Short-term rating

Standard & Poor’s Moody’s Fitch Ratings

BBB+, stable outlook A3, negative outlook A-, negative outlook Baa2, negative outlook

A-2 P-2 F2

EDF

EDF Trading EDF Energy

Moody’s

n. a.

Standard & Poor’s Standard & Poor’s Moody’s

BB+, stable outlook

B

BBB-, stable outlook Baa3, positive outlook

A-3 n. a.

Edison

n. a.: not applicable.

286

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EDF - UNIVERSAL REGISTRATION DOCUMENT 2020