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Friday, 28 July 2017

EDF : 2017 half-year results in line with expectations Excellent execution of the performance plan Outlook confirmed

EDF    

Published: 07:20 CEST 28-07-2017 /GlobeNewswire /Source: EDF / : EDF /ISIN: FR0010242511


 

 

 

 

PRESS RELEASE

28 July 2017

 

 

 

2017 half-year results in line with expectations

Excellent execution of the performance plan

Outlook confirmed

 

Key figures of the 2017 half-year results

 

Main events

 

EBITDA

 

€7.0bn
-20.6% org.
[1]

 

  • Renewable energies:
    • Takeover of FUTUREN (onshore wind power)
    • 2.4GW under construction by EDF EN, of which 0.9GW solar power
    • EDF EN gross installed capacity greater than 10GW[2]
  • Energy services:
    • Acquisition of Imtech in the United Kingdom
  • Success of the €4bn capital increase
  • Finalisation of the sale of 49.9% of CTE, which holds 100% of RTE shares 
  • Nuclear France: output in line with forecasts given the outages of reactors for additional controls started in 2016 following the quality control audit of the Creusot Forge plant
  • New nuclear:
    • Approval of the Flamanville 3 vessel: draft opinion of the French Nuclear Safety Agency (ASN) specifying that the composition of the steel of the vessel head and bottom is not likely to call into question its commissioning under certain conditions and in particular the replacement of the vessel head by the end of 2024 (see press release of 29 June 2017). System performance tests are under way
    • Hinkley Point C: update of project costs to £19.6bn (in 2015 sterling)[3] (see press release of 3 July 2017)
    • Creation of EDVANCE: bringing together EDF and AREVA NP's engineering teams (see press release of 17 May 2017)
    • Signature of binding agreements with strategic investors for the acquisition of an equity stake in NEW NP (see press release of 10 July 2017)

Net income excluding non-recurring items

 

€1.4bn
-53.8%

Net income - Group share 

€2.0bn
-3.7%

Net financial debt

€31.3bn
-€6.2 bn

 

 

Electricity Output

Nuclear France: 197.2TWh

Nuclear United Kingdom: 32.2TWh

Hydropower France: 21.3TWh

EDF EN: 6.4TWh

 

-3.9%

+4.2%

-16.5%

+5.0%

 

 

Performance plan

Operating expenses[4]

 

Working Capital Requirement

 

Disposals signed or realised

Net investments[5]

 

~70% total
of the target 2018 vs. 2015

~90% total
of the target 2015-2018

~80% total
of the target 2015-2020

-€0.3bn vs. H1 2016

 

2017 targets confirmed

-  Nuclear output:   390 - 400TW

  • EBITDA[6]:   €13.7bn - €14.3 bn
  • Net financial debt/EBITDA[7]:   <= 2.5x
  • Payout ratio of Net income excluding non-recurring items[8]:   55% to 65%

 

2018 targets confirmed

  • Operating expenses4:   -€0.7 bn compared to 2015
  • EBITDA[9]:   >= €15.2 bn
  • Net investments5:   ~ €10.5 bn
  • Cash flow9,[10]>= 0
  • Net financial debt/EBITDA7,9:   <= 2.5x
  • Payout ratio of Net income excluding non-recurring items850%

Targets beyond 2018 confirmed

  • 2019 operating expenses4:   Reduction >= €1 bn

   compared to 2015

-  Asset disposals in 2015-2020:   at least €10 bn

- Payout ratio of Net income excl. non-recurring items8:  45% to 50%

 


EDF's Board of Directors meeting on 27 July 2017, under the chairmanship of Jean-Bernard Lévy, approved the consolidated financial statements at 30 June 2017.

 

Jean-Bernard Lévy, EDF's Chairman and CEO, stated:

"In an unfavourable market context and in line with its forecasts, the Group is continuing to implement its performance plan and maintains its annual objectives. Based on its strengthened balance sheet, EDF is deploying its CAP 2030 strategy. The first half of 2017 was marked by an acceleration in the area of renewable energies, with, in particular, the takeover of Futuren and the increase in installed net capacity. The reorganisation of the French nuclear sector has also reached essential and positive milestones in recent months. I would like to thank our teams for their daily efforts to make EDF the leader in low-carbon growth."

 

 

Change in EDF group's half-year results

 

In millions of euros

H1 2016

H1 2017

Change
(%)

Organic change (%)

Sales

36,659

35,723

-2.6

-1.1

EBITDA

8,944

6,996

-21.8

-20.6

EBIT

4,512

3,882

-14.0

 

Net income - Group share

2,081

2,005

-3.7

 

Net income excluding non-recurring items[11]

2,968

1,370

-53.8

 

 

Change in EDF group's half-year EBITDA

 

In millions of euros

H1 2016

H1 2017

Organic change (%)

France - Generation and supply activities

3,450

2,453

-28.9

France - Regulated activities

2,791

2,400

-14.0

United Kingdom

1,118

627

-34.4

Italy

328

426

+28.4

Other International

363

275

-21.5

Other activities

894

815

-9.4

Total Group

8,944

6,996

-20.6

 


In a context of unfavourable market conditions and a decline in nuclear generation in France, the financial results for the first half of 2017 were down. During this period, the Group continued to deploy its transformation plan in accordance with the CAP 2030 strategy. In particular, it successfully carried out a share capital increase of €4 billion in 2017. The asset disposal plan continued to be implemented and reached a total of approximately €8.0 billion[12] in disposals signed or realised for a target of at least €10 billion between 2015 and 2020.

The actions undertaken within the framework of the performance plan have resulted in a significant reduction in operating expenses[13] by 2.2% (-€225 million) compared to the first half of 2016, representing a total of approximately 70% of the target of -€700 million in savings between 2015 and 2018. The efforts to optimise the working capital requirement, estimated at €200 million, have allowed more than 90% of the target of €1.8 billion optimisation to be reached over the period 2015-2018.

EBITDA of the France - Generation and supply activities segment amounted to €2,453 million, corresponding to an organic decline of 28.9%, due mainly to a drop in nuclear and hydropower generation and unfavourable market conditions.

EBITDA of the France - Regulated activities[14] segment recorded an EBITDA of €2,400 million, down 14.0% in organic terms due to unfavourable weather and storm effects and to favourable events in 2016 with no equivalent in 2017.

In the United Kingdom, EBITDA was down organicaly 34.4% to €627 million, mainly due to the significant impact of lower realised nuclear prices.

In Italy, EBITDA recorded an organic increase of 28.4% to €426 million due to favourable developments in electricity sales prices and an increase in hydrocarbon exploration and production activities driven by higher Brent and gas prices.

EBITDA of the Other International segment was down in organic terms by 21.5%, in Belgium due mainly to lower generation, and in Brazil due to the annual tariff review.

In the Other activities segment, EBITDA benefited from a 5% increase in renewable energy output and from an increase of 0.8GW in EDF Énergies Nouvelles' net installed capacity. Activity in Development and Sales of Structured Assets was down, however, after a high volume of operations in the first half-year of 2016. This led to a drop in EBITDA of 9.4% in the segment in the first half of 2017.

The financial result improved by €236 million compared to the first half of 2016, due in particular to an increase in capital gains on the disposal of dedicated assets, a reduction in the cost of debt and lower unwinding costs related to the discount rate.

The Group's net income excluding non-recurring items stood at €1,370 million for first-half 2017, a decrease of 53.8% compared to first-half 2016.

The Group's share of net income totalled €2,005 million in the first half of 2017, relatively stable compared to the first half of 2016 (-3.7%), the positive effect of the capital gain recorded for the sale of 49.9% of CTE[15] and the improvement of the financial result offsetting overall the decline in EBITDA.

The Group continued to ensure the control and selectivity of net investments excluding Linky[16], new developments[17] and assets disposals, which totalled €4,913 million, including the investment in Futuren. This corresponds to a decrease of €252 million, thanks in particular to the rationalisation of the thermal power plant fleet and efforts made across all of the operational segments. Total net investments amounted to €1,480 million in the first half of 2017, compared to €5,569 million in the first half of 2016, taking into account the sale of 49.9% of CTE15.

Operating cash flow amounted to €4,156 million in the first half of 2017 compared to €7,959 million in the first half of 2016, a decrease of €3,803 million. This change was due primarily to the decrease of €1,948 million in EBITDA and to the increase in the income taxes paid.

Cash flow after net investments was up significantly to €3,158 million thanks primarily to the sale of 49.9% of CTE15 and to a favourable change in the working capital requirement. Group cash flow[18] amounted to +€1,482 million. It incorporates the payment in shares of the majority of the final dividend for 2016 and regulatory allocation[19] to the dedicated assets.

 

 

31/12/2016

30/06/2017

Net financial debt[20] (in billions of euros)

37.4

31.3

Net financial debt/EBITDA

2.3x

2.2x[21]

 

The Group's net financial debt amounted to €31,268 million at 30 June 2017. It was €37,425 million at 31 December 2016. This improvement is mainly attributable to the capital increase of €4 billion and to asset disposals carried out in the first half of 2017. The ratio of net financial debt/EBITDA was 2.2x at 30 June 2017, in line with Group's target for 2017 of less than 2.5x.

 


 

Main Group results by segment

 

France - Generation and supply activities 

 

 

H1 2016

H1 2017

Organic change (%)

Sales

18,683

18,564

-0.6

EBITDA

3,450

2,453

-28.9

 

Sales in the first half of 2017 in the France - Generation and supply segment amounted to €18,564 million, corresponding to a decline of €119 million (-0.6%) compared to the first half of 2016.

EBITDA was down 28.9% organically to €2,453 million in an unfavourable market environment.

In the first half of 2017, the decrease in nuclear output and hydropower output compared to the first half of 2016 had an unfavourable impact on EBITDA estimated at -€514 million.

EBITDA was also affected by negative market conditions and ARENH subscriptions in November 2016 (40.7TWh for the first half of 2017) for an estimated total of -€504 million. Tariff changes, excluding the incorporation of the capacity payment in the tariff "stacking" calculation, led to an estimated decrease of -€221 million compared to the first half of 2016.

Intense competition and negative price effects on new offers also affected downstream market conditions, with a net unfavourable impact estimated at -€191 million.

The weather effect, in particular in January 2017, as well as the leap year in 2016, had a negative effect estimated at -€183 million in comparison to the same period in 2016.

The introduction of the capacity mechanism[22] had a favourable +€286 million estimated impact on EBITDA for the first half of 2017.

Under the EDF group's performance plan, operating expenses[23] were brought down by an estimated €272 million
(-6.0%) through operating performance action on purchases and control of staff costs. These measures are being applied across all entities, cutting the costs of support functions and commercial activities, and optimising costs for the hydropower, nuclear and thermal fleets.

Nuclear output reached 197.2TWh at the end of June 2017, a level in line with forecasts.

The 8.0TWh (-3.9%) year-on-year decrease is essentially explained at the fact that Gravelines 5 and Fessenheim 2 were offline for the whole period for checks in connection with the Creusot Forge manufacturing records, and also by completion of tests on the steam generators concerned by the carbon segregation issue during the first quarter of 2017.

The unplanned reactor outages at Flamanville 1 and Cattenom 1 were largely counterbalanced by higher dispatch of the reactors in operation.

Based on nuclear power output at 30 June, and the restart of operations by the Bugey 5 and the Gravelines 5 reactors, the Group confirms its nuclear output target of 390-400TWh for 2017.

Hydropower output[24] stood at 21.3TWh[25], down by 4.2TWh compared to the first half of 2016 due to less favourable hydrological conditions.

Thermal generation facilities, particularly gas-fired plants, were used more extensively. Their output, up 3.6TWh compared to the first half of 2016, reached 7.8TWh.

 

 

France - Regulated activities

 

 

H1 2016

H1 2017

Organic change (%)

Sales

8,125

8,174

+0.6

EBITDA

2,791

2,400

-14.0

 

Sales in the first half of 2017 in the France - Regulated activities segment amounted to €8,174 million, an organic increase of €49 million (+0.6%) compared to the first half of 2016.

EBITDA was down organically by €391 million (-14.0%) with in particular an unfavourable volume effect estimated at €-91 million linked to weather effects, overruns in subscribed capacity due to the significant cold spell in January 2017 and the leap year effect in 2016. Exceptionally forceful gales in mainland France were another significant factor in the first half-year of 2017, with an estimated negative impact of -€62 million on operating expenses and indemnities for power cuts. All these unfavourable elements were only partially offset by tariff rises (estimated at +€50 million). In addition, positive factors in 2016 that had no equivalent in 2017 also adversely affected EBITDA (-€240 million).

 

 

 


 

United Kingdom 

 

In millions of euros

H1 2016

H1 2017

Organic change (%)

Sales

4,988

4,427

-1.8

EBITDA

1,118

627

-34.4

 

The United Kingdom contributed €4,427 million to Group sales in the first half of 2017, down €561 million. EBITDA amounted to €627 million, down 34.4% in organic terms compared to June 2016.

EBITDA was mainly affected by the decline in the energy margin mainly due to lower realised nuclear prices. The drop in consumption from residential customers following milder weather also had an impact on EBITDA.  However, the number of customer accounts is quasi stable.

Nuclear output amounted to 32.2TWh, +1.3TWh compared to June 2016, thanks to good operational performance driven by favourable scheduling of the refuelling operations during the first half of 2017 and good availability of the nuclear fleet.

 

 

 

Italy 

 

In millions of euros

H1 2016

H1 2017

Organic change (%)

Sales

5,561

4,968

-10.8

EBITDA

328

426

+28.4

 

In Italy, sales for the first half of 2017 amounted to €4,968 million, an organic decrease of 10.8% over the first of half 2016, without having a significant effect on the margin. EBITDA recorded an organic increase of 28.4% to €426 million.

EBITDA for the Electricity activities was up, essentially reflecting favourable trends in average electricity sale prices. Also, the good performance in thermal power generation made up for the lower hydropower generation.

EBITDA for the Hydrocarbon activities recorded organic growth, principally driven by favourable movements in Brent oil and gas prices, and better optimisation of maintenance costs for the exploration-production activity. The downstream margin is improving.

 

 


 

Other International 

 

In millions of euros

H1 2016

H1 2017

Organic change (%)

Sales

2,708

2,537

-2.8

EBITDA

363[26]

275

-21.5

 

Sales in the Other International segment amounted to €2,537 million, down by 2.8% in organic terms compared to the first half of 2016. EBITDA recorded an organic decrease of 21.5% to €275 million.

In Belgium, EBITDA recorded an organic decrease of 40.4% to €69 million. This decline was attributable to the downturn in electricity sale prices and lower nuclear generation due to the maintenance programme. Unfavourable weather factors (winds, water) also contributed to the decline in renewable energy generation. Service activities were up and installed wind power capacity continued to increase to reach 309MW at the end of June 2017 (+3% compared with 31 December 2016).

In Poland[27], EBITDA totalled €133 million, corresponding to an organic growth of 2.4%, thanks to the increase in heat volumes and energy savings certificates, combined with the fall in the price of coal consumed. EDF Polska's assets are currently held for sale[28].

After an exceptional year in 2016, Brazil's EBITDA has been negatively affected by the downward revision of the annual PPA (power purchase agreement) price.

 


 

Other activities

 

In millions of euros

H1 2016

H1 2017

Organic change (%)

Sales

3,528

3,811

+6.8

EBITDA

894

815

-9.4

 

Sales in the Other activities segment amounted to €3,811 million, up 6.8% in organic terms over 2016. EBITDA recorded an organic decrease of 9.4% to €815 million.

EDF Énergies Nouvelles' contribution to consolidated EBITDA totalled €451 million, corresponding to an organic decrease of €113 million (-20.4%) from the first half of 2016. The net installed capacity was up by 0.8GW to reach 6.7GW at 30 June 2017. Generation continued its organic growth, rising by 5.0% over the first half of 2017. The portfolio of projects under construction by EDF Énergies Nouvelles increased significantly to 2.4GW gross at the end of June 2017 (of which 0.9GW in solar power). The significant volume of operations relating to the Development and Sales of Structured Assets activity in the first half of 2016 in Europe (Portugal, Greece), which had no equivalent in 2017, had a negative impact on EBITDA.

Dalkia's EBITDA was €155 million, corresponding to a year-on-year organic increase of €12 million (+8.9%), notably thanks to conclusion or renewal of a large number of commercial contracts, such as the energy management of municipal buildings in Valence, France, over a period of seven years, or the recovery of heat from the PSA site in Charleville-Mézières over 25 years. EBITDA of the first half of 2017 benefited from the favourable trends in the indexes for revising service prices and the positive effect of rising energy prices.

EBITDA at EDF Trading amounted to €187 million in the first half of 2017, an organic increase of 3.2% compared to first-half 2016. This increase resulted from a good performance in January, partly counterbalanced by unfavourable market conditions in particular on seasonal gas contracts in North America.

 


 

Main events[29]

since the 2017 first quarter press release

 

Major Events

  • EDF partially waived one of the conditions precedent contained in the NEW NP acquisition agreement (see press release of 12 July 2017)
  • Binding agreements were signed with strategic investors for the acquisition of an equity stake in NEW NP (see press release of 10 July 2017)
  • Clarifications were made to the Hinkley Point C project: update of project costs (see press release of 3 July 2017)
  • Approval of the Flamanville 3 vessel: draft opinion of the French Nuclear Safety Agency (ASN) specifying that the composition of the steel of the vessel head and bottom is not likely to call into question its commissioning under certain conditions and in particular the replacement of the vessel head by the end of 2024 (see press release of 29 June 2017)
  • EDF announced the signing of an agreement with PGE for the sale of EDF Polska's assets (see press release of 19 May 2017 and note 2.5.2 to the condensed consolidated half-year financial statements at 30 June 2017)
  • EDF's Board of Directors approved the creation of EDVANCE, a significant milestone in the reconstruction of the French nuclear industry (see press release of 17 May 2017)

 

New investments, partnerships and investment projects

Development of renewable energies, EDF Énergies Nouvelles[30]

  • On 20 July 2017, EDF Énergies Nouvelles announced the success of its simplified tender offer for FUTUREN (see note 3.1 to the condensed consolidated half-year financial statements at 30 June 2017)
  • On 13 July 2017, EDF Énergies Nouvelles acquired a group of wind power projects in the United Kingdom with capacity of over 600MW
  • On 5 July 2017, EDF Énergies Nouvelles acquired OWS, an offshore wind farm operations and maintenance specialist
  • On 22 June 2017, EDF Énergies Nouvelles announced the strengthening of its positions in the Auvergne-Rhône-Alpes region
  • On 21 June 2017, EDF Énergies Nouvelles signed a Power Purchase Agreement for a 100MW wind project in the United States
  • On 19 June 2017, EDF Énergies Nouvelles announced that it would undertake a new solar project (115MWp) in Brazil
  • The EDF group, together with EDF ENR, consolidated and diversified its position in the self-consumption market in France (see press release of 7 June 2017)
  • Finalisation of the financing of Phase 3 of the 800MW Mohammed bin Rashid Al Maktoum Solar Park (see press release of 14 June 2017)

 

Development of energy services

  • On 6 June 2017, EDF Energy Services acquired Imtech, a leading engineering services company and provider of technical services to construction, industrial, commercial and public sector clients in the UK and Ireland (see note 22.1.2 of the Annex to the condensed consolidated half-year financial statements at 30 June 2017)
  • EDF is aiming to double its sales by 2025 in energy services for businesses and local authorities (see press release of 20 June 2017)
  • On 11 May 2017, Sowee launched its first connected charging station for electric vehicles

 

Sustainable development

  • EDF received the ISO 14001 certification from AFNOR Certification for the fifth time (see press release of 23 June 2017)
  • EDF signed an innovative bilateral Revolving Credit Facility with an interest rate that depends on its sustainability rating (see press release of 22 May 2017)

 

Other significant events

 

  • New Leadership roles announced at EDF Energy (see press release of 27 July 2017)
  • Results of the option for the payment of the balance of the dividend to be paid for 2016 (see press release on 28 June 2017 and notes 17.1 and 17.2 of the annex to the condensed consolidated financial statements at 30 June 2017)
  • Jean-Bernard Lévy, EDF's Chairman and CEO, made several appointments within the Executive Committee, which took effect on 17 July 2017 (see press release of 12 June 2017)

 

Innovation

  • EDF and CEA consolidated their R&D collaboration in the areas of nuclear, digital technology and energy transition (see press release of 19 June 2017)

 


 

APPENDICES :

Consolidated income statement

 

 

(in millions of euros)

 

H1 2017

H1 2016

Sales

 

35,723

36,659

Fuel and energy purchases

 

(19,345)

(18,764)

Other external expenses

 

(3,733)

(3,991)

Personnel expenses

 

(6,286)

(6,333)

Taxes other than income taxes

 

(2,687)

(2,727)

Other operating income and expenses

 

3,324

4,100

Operating profit before depreciation and amortisation

 

6,996

8,944

Net changes in fair value on energy and commodity derivatives, excluding trading activities

 

(196)

(77)

Net depreciation and amortisation

 

(4,212)

(3,916)

Net increases in provisions for renewal of property, plant and equipment operated under concessions

 

(41)

(15)

(Impairment)/reversals

 

(32)

(300)

Other income and expenses

 

1,367

(124)

Operating profit

 

3,882

4,512

Cost of gross financial indebtedness

 

(879)

(953)

Discount effect

 

(1,283)

(1,367)

Other financial income and expenses

 

1,174

1,096

Financial result

 

(988)

(1,224)

Income before taxes of consolidated companies

 

2,894

3,288

Income taxes

 

(712)

(960)

Share in net income of associates and joint ventures

 

(93)

(162)

GROUP NET INCOME

 

2,089

2,166

EDF net income

 

2,005

2,081

Net income attributable to non-controlling interests

 

84

85

 

 

 

 

Earnings per share (EDF share) in Euros:

 

 

 

Earnings per share

 

0.66

0.88

Diluted earnings per share

 

0.66

0.88

 


Consolidated balance sheet

 

ASSETS

(in millions of euros)

 

30/06/2017

31/12/2016

Goodwill

 

8,750

8,923

Other intangible assets

 

7,630

7,450

Property, plant and equipment operated under French public electricity distribution concessions

 

53,682

53,064

Property, plant and equipment operated under concessions for other activities

 

7,604

7,616

Property, plant and equipment used in generation and other tangible assets owned by the Group

 

71,187

70,573

Investments in associates and joint ventures

 

6,995

8,645

Non-current financial assets

 

37,040

35,129

Other non-current receivables

 

2,164

2,268

Deferred tax assets

 

1,955

1,641

Non-current assets

 

197,007

195,309

Inventories

 

13,692

14,101

Trade receivables

 

21,500

23,296

Current financial assets

 

29,381

29,986

Current tax assets

 

552

183

Other current receivables

 

10,174

10,652

Cash and cash equivalents

 

3,804

2,893

Current assets

 

79,103

81,111

Assets classified as held for sale

 

1,781

5,220

TOTAL ASSETS

 

277,891

281,640

 

 

 

 

 

 


 

EQUITY AND LIABILITIES

(in millions of euros)

 

30/06/2017

31/12/2016

Capital

 

1,444

1,055

EDF net income and consolidated reserves

 

38,308

33,383

Equity (EDF share)

 

39,752

34,438

Equity (non-controlling interests)

 

7,086

6,924

Total equity

 

46,838

41,362

Provisions related to nuclear generation - back-end of the nuclear cycle, plant decommissioning and last cores

 

44,954

44,843

Provisions for decommissioning of non-nuclear facilities

 

1,516

1,506

Provisions for employee benefits

 

21,258

21,234

Other provisions

 

1,970

2,155

Non-current provisions

 

69,698

69,738

Special French public electricity distribution concession liabilities

 

46,013

45,692

Non-current financial liabilities

 

51,669

54,276

Other non-current liabilities

 

4,836

4,810

Deferred tax liabilities

 

2,927

2,272

Non-current liabilities

 

175,143

176,788

Current provisions

 

5,632

5,228

Trade payables

 

10,983

13,031

Current financial liabilities

 

14,486

18,289

Current tax liabilities

 

164

419

Other current liabilities

 

24,155

24,414

Current liabilities

 

55,420

61,381

Liabilities related to assets classified as held for sale

 

490

2,109

TOTAL EQUITY AND LIABILITIES

 

277,891

281,640

 


Consolidated cash flow statement

 

 

(In millions of euros)

 

H1 2017

H1 2016

Operating activities:

 

 

 

Income before taxes of consolidated companies

 

2,894

3,288

Impairment/(reversals)

 

32

300

Accumulated depreciation and amortisation, provisions and changes in fair value

 

4,420

4,308

Financial income and expenses

 

429

462

Dividends received from associates and joint ventures

 

76

210

Capital gains/losses

 

(2,039)

(447)

Change in working capital

 

482

(1,720)

Net cash flow from operations

 

6,294

6,401

Net financial expenses disbursed

 

(828)

(800)

Income taxes paid

 

(827)

638

Net cash flow from operating activities

 

4,639

6,239

 

Investing activities:

 

 

 

Acquisitions of equity investments, net of cash acquired

 

(115)

(62)

Disposals of equity investments, net of cash transferred (1)

 

1,822

284

Investments in intangible assets and property, plant and equipment

 

(6,535)

(6,577)

Net proceeds from sale of intangible assets and property, plant and equipment

 

487

79

Changes in financial assets

 

(3,276)

(584)

Net cash flow used in investing activities

 

(7,617)

(6,860)

Financing activities:

 

 

 

EDF capital increase

 

4,005

-

Transactions with non-controlling interests (2)

 

224

2

Dividends paid by parent company

 

(75)

(81)

Dividends paid to non-controlling interests

 

(102)

(119)

Purchases/sales of treasury shares

 

-

4

Cash flows with shareholders

 

4,052

(194)

Issuance of borrowings

 

1,870

638

Repayment of borrowings

 

(2,132)

(1,019)

Payments to bearers of perpetual subordinated bonds

 

(394)

(401)

Funding contributions received for assets operated under concessions

 

66

69

Investment subsidies

 

344

405

Other cash flows from financing activities

 

(246)

(308)

Net cash flow from financing activities

 

3,806

(502)

Net increase/(decrease) in cash and cash equivalents

 

828

(1,123)

 

 

 

 

CASH AND CASH EQUIVALENTS - OPENING BALANCE

 

2,893

4,182

Net increase/(decrease) in cash and cash equivalents

 

828

(1,123)

Effect of currency fluctuations

 

(33)

(99)

Financial income on cash and cash equivalents

 

11

7

Effect of reclassifications

 

105

17

CASH AND CASH EQUIVALENTS - CLOSING BALANCE

 

3,804

2,984

 


 

A key player in energy transition, the EDF Group is an integrated electricity company, active in all areas of the business: generation, transmission, distribution, energy supply and trading, energy services. A global leader in low-carbon energies, the Group has developed a

diversified generation mix based on nuclear power, hydropower, new renewable energies and thermal energy. The Group is involved in supplying energy and services to approximately 37.1 million customers, 26.2 million of which are in France. It generated consolidated sales of €71 billion in 2016. EDF is listed on the Paris Stock Exchange.

 

Disclaimer

 

This presentation does not constitute an offer to sell securities in the United States or any other jurisdiction.

No reliance should be placed on the accuracy, completeness or correctness of the information or opinions contained in this presentation, and none of EDF representatives shall bear any liability for any loss arising from any use of this presentation or its contents.

The present document may contain forward-looking statements and targets concerning the Group's strategy, financial position or results. EDF considers that these forward-looking statements and targets are based on reasonable assumptions as of the present document publication, which can be however inaccurate and are subject to numerous risks and uncertainties. There is no certainty that the forecast events will take place or that the expected results will actually be achieved. Important factors that could cause actual results, performance or achievements of the Group to differ materially from those contemplated in this document include in particular the successful implementation of EDF strategic, financial and operational initiatives based on its current business model as an integrated operator, changes in the competitive and regulatory framework of the energy markets, as well as risk and uncertainties relating to the Group's activities, its international scope, the climatic environment, the volatility of raw materials prices and currency exchange rates,  technological changes, changes in the general economic situation.

Des informations détaillées sur ces risques potentiels et incertitudes sont disponibles dans le Document de Référence d'EDF déposé auprès de l'Autorité des marchés financiers le 6 mars 2017 (consultable en ligne sur le site internet de l'AMF à l'adresse www.amf-france.org ou celui d'EDF à l'adresse www.edf.fr).

EDF does not undertake nor does it have any obligation to update forward-looking information contained in this presentation to reflect any unexpected events or circumstances arising after the date of this presentation.

 

 

 

 

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EDF SA

22-30, avenue de Wagram

75382 Paris cedex 08

Capital de 1,443,677,137 euros

552 081 317 R.C.S. Paris

 

www.edf.fr

 

 

CONTACTS

 

Press: +33(0) 1 40 42 46 37

 

Analysts and investors: +33(0) 1 40 42 40 38

 

 



[1] Organic change at comparable scope and exchange rate

[2] Net installed capacity: 6.7GW

[3] Excluding interim interest and excluding foreign exchange compared to a reference exchange rate for the project of 1 sterling = 1.23 euros ; net of action plans

[4] Sum of personnel expenses and other external expenses. At comparable consolidation scope and exchange rates. At constant pensions discount rates. Excluding change in operating expenses of service activities

[5] Net investments excluding Linky, new developments and disposals. Linky is a project led by Enedis, an independent EDF subsidiary as defined in the French Energy Code

[6] At 2016 exchange rate

[7] At 2016 exchange rate and at an assumed discount rate on nuclear provisions of 4.1% for 2017 and 3.9% for 2018

[8] Adjusted for the remuneration of hybrid bonds accounted for in equity

[9] At 2016 exchange rate and assumption for 2018 power prices in France on volumes not hedged as of 31.12.2016 >= €36/MWh

[10] At 2016 exchange rate. Cash flow excluding Linky, new developments and asset disposals, with an assumed discount rate on nuclear provisions of 4.1% for 2017 and 3.9% for 2018, excluding interim dividend for 2018, which will be decided in the second half of 2018

[11] Net income excluding non-recurring items is not defined by IFRS, and is not directly visible in the consolidated income statement. It corresponds to the Group net income excluding non-recurring items and net changes in fair value on Energy and Commodity derivatives, excluding trading activities, net of tax.

[12] Impact on net financial debt

[13] Sum of personnel expenses and other external expenses. At comparable consolidation scope and exchange rates. At constant pension discount rates. Excluding change in operational expenditures of service activities

[14] Regulated activities: Enedis, Électricité de Strasbourg and island activities. Enedis is an independent EDF subsidiary as defined in the French Energy Code

[15] The company that holds 100% of RTE's shares (an independent EDF subsidiary as defined in the French Energy Code)

[16] Linky is a project led by Enedis, an independent EDF subsidiary as defined in the French Energy Code

[17] New developments: in particular the UK NNB and offshore wind farm projects

[18] Cash flow after dividends without taking into consideration the capital increase

[19] Allocation to the dedicated assets of €1,095 million in compliance with the ministerial letter of 10 February 2017

[20] Net financial debt is not defined by accounting standards and is not directly visible in the Group's consolidated income statement. It 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

[21] The ratio at 30 June 2017 is calculated based on cumulative EBITDA for the second half-year of 2016 and the first half-year of 2017

[22] The introduction of the capacity mechanism on 1 January 2017 affected tariffs, purchases and sales on the wholesale markets and market price offers

[23] At comparable consolidation scope and exchange rate. At constant pension discount rates. Excluding change in operational expenditures of service activities

[24] Hydropower, excluding island activities before deduction of pumped volumes

[25] After deduction of pumped-storage hydropower volumes: 22.1TWh in H1 2016 and 17.6TWh in H1 2017

[26] EBITDA of the first half of 2016, including the activities of EDF Demasz in Hungary, sold on 31 January 2017

[27] EDF EN and Dalkia's activities in Poland are incorporated in the "Other activities" segment

[28] EDF Polska assets currently held for sale, see press release published by EDF on 19 May 2017

[29] For more details see Section 2 of the Half-year Management Report at 30 June 2017, the full list of press releases is available on the website: www.edf.fr

[30]  A full list of press releases is available from the EDF Énergies Nouvelles website: www.edf-energies-nouvelles.com

 




EDF PR H1 2017



This announcement is distributed by Nasdaq Corporate Solutions (One Liberty Plaza, 165 Broadway, New York, NY 10006. Tel: +1 212 401 8700. www.nasdaqomx.com) on behalf of NASDAQ OMX Corporate Solutions clients. Source: EDF, 22-30, avenue de Wagram, PARIS FR-75008, France
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