EDF / 2020 Universal Registration Document

6 FINANCIAL STATEMENTS

Notes to the consolidated financial statements

14.3 Dividends

The interim dividend for 2019 decided by EDF’s Board of Directors on 19 November 2019 was €0.15 per share. It was paid out in the form of new shares (scrip option) or cash on 17 December 2019 and amounted to a total of €458 million. The French government opted for the scrip interim dividend for 2019. The cash dividend paid to shareholders who did not take the scrip option amounted to €27 million.

In the context of the Covid-19 pandemic, in response to the imperative needs for solidarity and responsibility to all the Company’s stakeholders, it was decided at the General Shareholders’ Meeting of 7 May 2020 that the interim dividend would be the only dividend for 2019. In addition, EDF did not distribute an interim dividend in respect of the 2020 financial year.

14.4

Perpetual subordinated bonds

Accounting principles and methods Perpetual subordinated bonds (“hybrid” bond issue) The perpetual subordinated bonds issued by the Group incorporate options for redemption at the initiative of EDF. These options may be exercised after a minimum period that depends on the specific terms of each issue, and subsequently at each coupon date or in the event of highly specific circumstances. The annual yield is fixed and reviewable based on contractual clauses that vary according to the specific terms of the issuance. There is no obligation for EDF to make any payment, due to the existence of contractual clauses entitling it to defer payment indefinitely.

However, those clauses stipulate that any deferred payments must be made in the event of a dividend distribution. All these features give EDF an unconditional right to avoid paying out cash or another financial asset for the principal or interest. Consequently, in compliance with IAS 32, these bonds are recorded as equity instruments and any payment made is treated in the same way as dividends.

14.4.1

Outstanding perpetual subordinated bonds at 31 December 2020

At 31 December 2020, perpetual subordinated bonds carried in equity amounted to €11,290 million (less net-of-tax transaction costs) (€9,209 million at 31 December 2019). Issues of perpetual subordinated bonds were recorded in equity at 31 December 2020 at the total net value of €2,081 million (see note 14.4.2).

Interest paid by EDF to the bearers of perpetual subordinated bonds issued totalled €501 million in 2020 and €589 million in 2019. The resulting cash payout is reflected in a corresponding reduction in Group equity. In January 2021, EDF paid interest of around €276 million to the bearers of perpetual subordinated bonds.

Perpetual subordinated bonds in the accounts of EDF

(in millions of currency units) Entity

Issue

Nominal amount

Currency

Redemption option

Coupon

EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF EDF

01/2013 01/2013 01/2013 01/2014 01/2014 01/2014 01/2014 10/2018 11/2019 09/2020 09/2020

1,250 1,250 2,098 1,500

EUR GBP USD USD EUR EUR GBP EUR EUR EUR EUR

12 years 13 years 10 years 10 years 8 years 12 years 15 years 6 years 8 years 6.5 years 10 years

5.38% 6.00% 5.25% 5.63% 4.13% 5.00% 5.88% 4.00% 3.00% 2.88% 3.38%

267

1,000

750

1,250

500 850

1,250

361

EDF - UNIVERSAL REGISTRATION DOCUMENT 2020