Edf: ROBUST 2019 ANNUAL RESULTS ALL FINANCIAL TARGETS ACHIEVED
STRONG GROWTH IN EBITDA AND NET INCOME
ROBUST 2019 ANNUAL
RESULTSALL FINANCIAL TARGETS
ACHIEVEDSTRONG GROWTH IN EBITDA
AND NET INCOME
| |
2019 Financial Results (1) |
Highlights |
|
| |
Sales EBITDATarget
of €16.0 - 16.7bn |
€71.3bn+3.5% org.(2) €16.7bn +8.4% org.(2)
|
|
Customers, Services and Regions
- Renewed and innovative range of offers in France
- Successful market offers: more than 550,000 residential
electricity customers in France
- More than 1.5 million residential gas customers in France
- Italy: successful integration of Gas Natural Vendita
Italia
Acceleration of developments in renewable energies
- Doubling of construction starts (wind and solar) to 4.4GW
- Offshore:
- Major successes in France and the United Kingdom: more than 2GW
in development or under construction
- EDF is the leader in France with 4 out of 7 calls for tenders
won
Deployment of the three major plans
- Successful launch of the solar plan (3)
- c. 2,000 ha of land secured (x7 vs. 2017)
- Storage Plan (3) deployment
- Acquisition of the developer Pivot Power in the United
Kingdom (potential portfolio of 2GW of capacity)
- Electric Mobility Plan (4)
- Marketing of electric mobility solutions in the Group’s four
core target countries
- Acquisition of Pod Point, leader in the installation and
operation of charging stations in the United kingdom
Nuclear:
- Taishan EPR in China: commissioning of unit 2
- Success of the first VD4 900: restart of Tricastin 1 after ASN
authorisation
- Consultation initiated by the French government on a new
regulatory framework for existing nuclear
- Excell: launch of the nuclear industry excellence plan
- Flamanville EPR : definition of the scenario for upgrading
the main secondary system penetration welds ([5])
Enedis
- 116 concession contracts renewed in 2019, i.e.170 end 2019
- Linky: 7.7 million smart meters installed over the year
bringing the total to 23.4 million at the end of 2019
- Acceleration of connections for renewable installations
International
- Commissioning of the Sinop dam in Brazil (400MW)
- Start of construction of the Nachtigal dam in Cameroon
(420MW)
- Good performance of Luminus in Belgium
|
|
| |
Net income excluding non-recurring items
(6) |
€3.9bn +57.9% |
|
| |
Net income – Group share |
€5.2bn x4.4 |
|
| |
OPEX reductions (7)
€1.2bn vs 2015 Target of ~ €1.1bn
Total net investments (8)
€13.9bn Target of ~ €15bn
Cash Flow excluding HPC and Linky
€1.8bn 2019 target > €0.6bn
Net financial debt/EBITDA
2.46x 2019 target ≤ 2.7x
Proposed dividend
€0.48/share i.e. a payout ratio of
45% (9) |
|
|
2020 targets 2020-2021
Ambitions |
- EBITDA ([10]) €17.5 – 18.0bn
- OPEX (7) stable in €2019
- Total net investments excluding acquisitions and “2019-2020
Group disposals”: ~ €15.5bn/year
- 2019 - 2020 Group disposals ([11]): €2 to 3 bn
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|
àNet financial debt/EBITDA (10): ~ 2.6x in 2020
≤ 2.7x in 2021àDividend: Target payout ratio of Net income
excluding non-recurring items (9): 45 – 50%
The French State has committed to scrip for the
balance of the 2019 dividend and dividends relating to FY2020
|
EDF’s Board of Directors meeting on 13
February 2020, under the chairmanship of Jean-Bernard Lévy,
approved the consolidated financial statements at 31 December
2019.
Jean-Bernard Lévy, EDF’s Chairman and
CEO, stated: “The rebound first seen in 2018 was confirmed and
enhanced by our performance in 2019. EDF is a profitable company,
which has achieved its financial targets. The unwavering commitment
of Group’s employees enabled us to further deploy our CAP 2030
strategy at a rapid pace, whilst making disciplined investments and
reducing operational costs. We are forging ahead in all renewable
energies, moving ahead with our commercial offensive in France and
making strong progress with the implementation of our Solar,
Electricity Storage and Electric Mobility plans and we are
investing in nuclear existing assets and projects. By capitalizing
on our expertise and our transformation capacity, we are determined
to play a leading role to meet the French and European objective of
becoming carbon neutral.”
Change in EDF group’s
results
|
(in millions of euros) |
2018 (12) restated |
2019 (1) |
Change (%) |
Organic change (%) |
|
Sales |
68,546 |
71,317 |
+4.0 |
+3.5 |
|
EBITDA |
14,898 |
16,708 |
+12.1 |
+8.4 |
|
EBIT |
5,454 |
6,760 |
+23.9 |
|
|
Net income – Group share |
1,177 |
5,155 |
x4.4 |
|
|
Net income excluding non-recurring items(6) |
2,452 |
3,871 |
+57.9 |
|
Change in EDF group's
EBITDA
|
(in millions of euros) |
2018 (12)
restated |
2019 (1) |
Organic change (%) |
| France
– Generation and supply activities |
6,327 |
7,615 |
+16.1 |
| France
– Regulated activities |
4,916 |
5,101 |
+0.4 |
| EDF
Renewables |
856 |
1,193 |
+33.5 |
|
Dalkia |
292 |
349 |
+4.8 |
|
Framatome |
202 |
256 |
+3.0 |
| United
Kingdom |
783 |
772 |
-4.6 |
|
Italy |
424 |
578 |
+20.8 |
| Other
international |
240 |
339 |
+36.3 |
|
Other activities |
858 |
505 |
-26.2 |
|
Total Group |
14,898 |
16,708 |
+8.4 |
2019 EBITDA grew strongly compared to
2018. It benefitted from better price conditions in France and the
United Kingdom and a strong performance from EDF Renewables,
notably in its “Development and Sale of Structured Assets”
operations. On the other hand, it was adversely affected by a
decline in nuclear generation in France and the United Kingdom, and
by poor hydropower conditions in France.
Operating
performance
Nuclear output in France stood at
379.5TWh, down 13.7TWh compared to 2018 due in particular to a
lower availability of the fleet caused by an increase in the
extension of outages during a heavy campaign of ten-year
inspections.Hydraulic output in France amounted to
39.7TWh (1), down 14.7% (-6.8TWh) compared to 2018, due to
very unfavourable hydraulic conditions over the first nine months
of the year.In the United Kingdom, nuclear output
amounted to 51.0TWh, a decrease of 8.1TWh compared to 2018. This
decline is attributable to the extension of the Hunterston B and
Dungeness B outages.In Italy, wind generation and
ancillary services were up significantly.
In Belgium, both nuclear and wind
generation increased.
EDF Renouvelables' output amounted to
14.7TWh. As expected, it was down slightly (-0.3TWh) compared to
2018 due to sales made in late 2018 and early 2019 (-3.1TWh
compared to 2018). The gross portfolio of projects under
construction doubled by the end of December 2019. It reached a
record level of 5.0GW, with 3.4GW of wind power (including 0.9GW of
offshore wind power in France and Scotland) and 1.5GW in
solar.
Net income
The financial result represented an
expense of €361 million in 2019, an improvement of
€4,437 million compared to 2018, mainly due to the positive
change in fair value of the portfolio of dedicated assets (€3.5
billion). The latter reflects the good performance of the equity
and bond markets in 2019. As a reminder, this change in fair value
is not included in the calculation of net income excluding
non-recurring items.Net income excluding
non-recurring items amounted to €3,871 million at the end of
December 2019, up by €1,419 million compared to 2018 thanks in
particular to a strong operating performance and a lower drop in
discount rates compared to 2018 (-10 bps at 2.3% in real figures at
the end of 2019 against -20 bps at 2.4% in real figures at the end
of 2018).Net income - Group share amounted to
€5,155 million at the end 2019, driven in particular by the
improvement in the financial result.
Proposed dividend for 2019:
€0.48/share, i.e. a payout ratio of 45%, with an option of payment
in new shares
At its 13 February 2020
meeting, EDF’s Board of Directors decided to propose to the
Ordinary Shareholders' Meeting, convened to approve the accounts
for the financial year ending 31 December 2019 and to be
held on 7 May 2020 (hereafter the “Shareholders'
Meeting”), the payment of a dividend of €0.48 per share for 2019.
This would correspond to a payout ratio of 45% of net income
excluding non-recurring items ([2]).
When subtracting the interim dividend of
€0.15 per share paid out in December 2019, the balance of the
dividend to be paid out on the 2019 financial year comes to €0.33
per share for shares receiving the ordinary dividend and to €0.38
per share for loyalty shares.
Subject to approval at the Shareholders’
Meeting, in accordance with Article L. 232-18 of the French
Commercial Code and Article 25 of the Company’s articles of
association, EDF’s Board of Directors decided on
13 February 2020 to offer each shareholder the option of
being paid in new EDF stocks on the remaining dividend to be paid.
In case the option is exercised, the new shares will be set at a
price equal to 90% of the average of opening prices of the EDF
share on the Euronext Paris regulated market over the twenty
trading days preceding the day of the Shareholders’ Meeting, less
the amount of the balance of the dividend to be paid for the 2019
financial year, rounded up to the nearest cent.
On 13 February 2020, EDF’s Board of
Directors set the terms of payment of the balance of the dividend
for the 2019 financial year which will be submitted for approval
during the Shareholders’ Meeting:
- ordinary and loyalty dividend ex-date on 14 May
2020;
- exercise period for payment in new shares from 18 May
to 04 June 2020 inclusive;
- payment date of the balance of the dividend and
settlement/delivery of the shares on 10 June
2020.
If the option of payment in new shares
is not exercised between 18 May and 4 June 2020
inclusive, the shareholder will receive the balance of the dividend
in cash on the payment date, i.e. 10 June 2020.
Cash flow and Net financial
debt
Excluding HPC and Linky, cash flow was
positive at €1.8 billion, exceeding the target of €0.6 billion.
This result reflects the good EBITDA performance, the control of
net investments and the positive contribution of the working
capital requirement notably thanks to trading
activities.Total net investments, excluding
2019-2020 Group acquisitions and disposals, amounted to
€13,927 million in 2019, in line with the ambitions set by the
Group.Cash flow generated from
operations ([3]) amounted to €4,175 million, an increase
of €1,177 million compared to 2018.Group cash
flow (4) amounted to -€791 million, down €190 million
compared to 2018.
|
|
31/12/2018 |
31/12/2019 (5) |
|
Net financial debt (6) (in billions of euros) |
33.4 |
41.1 |
|
Net financial debt/EBITDA (7) |
2.24x |
2.46x |
The Group's net financial debt amounted
to €41.1 billion at the end of December 2019, an increase of €7.7
billion over one year. This increase is mainly attributable the
impact of IFRS16 (€4.5 billion at 1 January 2019 and approximately
€0.4 billion in rental debt change over the year), the effect of
the buyback of hybrid securities (€1.1 billion) and other
effects (exchange rate for €0.3 billion and change on
financial instruments for €0.6 billion). The other factors
contributing to the increase in debt were investments in the HPC
and Linky programs, which represent €2.6 billion. The net financial
debt to EBITDA ratio stood at 2.46, which was below the target of
2.7.
Main Group results by
segment
France – Generation and supply
activities
|
(in millions of euros) |
2018 |
2019 (8) |
Organic change (%) |
|
Sales
(9) |
26,096 |
27,870 |
+6.5 |
|
EBITDA |
6,327 |
7,615 |
+16.1 |
Sales in France - Generation and supply
activities in 2019 amounted to €27,870 million, up 6.5% in organic
terms compared to 2018.
EBITDA amounted to €7,615 million,
corresponding to an organic increase of +16.1% over
2018.
This substantial increase was in
particular due to favourable energy price effects totalling an
estimated €2,230 million, which relate to the positive market
price movements and the +7.7% (excluding taxes) rise in regulated
sales tariffs on 1 June 2019.
The decrease in generation, mainly of
nuclear power (-13.7TWh) and hydropower (-5.8TWh after pumping),
had an unfavourable effect estimated at -€899 million.
The erosion of market share and the end
of the tariff catch-up component in regulated tariffs on
1 August 2018 had an unfavourable effect estimated at -€211
million.
Operating expenses (10) were cut by
€342 million (-3.9%) through control of purchases and payroll
costs. These measures are being implemented across all entities:
they notably helped lower support function costs and adjust selling
costs, as well as reduce operating costs for the nuclear,
hydropower and thermal power plant fleet.
A number of other factors, principally
changes in nuclear provisions and employee benefit commitments, had
a total effect of -€443 million on EBITDA. The lower volumes of
nuclear fuel consumed due to lower production levels had a small
favourable impact.
France – Regulated
activities (11)
|
(in millions of euros) |
2018 |
2019 (12) |
Organic change (%) |
|
Sales (13) |
16,048 |
16,087 |
+0.2 |
|
EBITDA |
4,916 |
5,101 |
+0.4 |
Sales in France - Regulated activities
amounted to €16,087 million in 2019, up 0.2% in organic terms
compared to 2018.
EBITDA stood at €5,101 million, an
organic increase of 0.4% compared to 2018.
Price changes had a positive effect of
+€65 million: the indexed adjustments to the TURPE 5 distribution
and transmission tariffs (14) on 1 August 2019 were partially
counterbalanced by the tariff optimisation carried out by
suppliers.
Business growth in grid connection
services continued, and made a positive contribution to EBITDA
estimated at +€25 million.
The evolution of EBITDA was also driven
by the decrease in operating expenses (15) (+€83
million).
However, the unfavourable weather effect
over the entire year and the compensation for electricity cuts
related to exceptional weather events in the second half of the
year affected EBITDA to the extent of approximately
-€95 million.
Other factors had a combined negative
impact of -€60 million on EBITDA.
Renewable
Energies
EDF Renewables
|
(in millions of euros) |
2018 |
2019 (16) |
Organic change (%) |
|
Sales (17) |
1,505 |
1,565 |
+2.9 |
|
EBITDA |
856 |
1,193 |
+33.5 |
|
of which EBITDA from generation |
903 |
917 |
-0.9 |
Sales in EDF Renewables amounted to
€1,565 million in 2019, up 2.9% in organic terms compared to
2018.
EBITDA stood at €1,193 million, an
organic increase of 33.5% compared to 2018.
This strong growth was driven by
Development and Sale of Structured Assets operations in 2019, with
€560 million in capital gains recorded in EBITDA, compared to €192
million in 2018. This increase is attributable for the most part to
the sale of 50% of the Neart na Gaoithe (18) (NnG) Scottish
offshore wind farm project to the Irish electricity company
ESB.
EBITDA from generation was negatively
affected by the disposals that took place in late 2018 and early
2019, and stood at €917 million, an organic decline of -0.9%
compared to 2018, despite a positive price effect (portfolio
effect).
Development and support function costs
were on the rise, in order to keep pace with business growth
together with expansion into new areas, and to support innovative
projects and digitalisation efforts.
At the end of 2019, net installed
capacity was 8.1GW compared to 8.3GW at the end of 2018. Excluding
transfers of assets within the EDF group, capacities increased by
+0.6GW (+7.3%).
Group Renewables ([19])
|
(in millions of euros) |
2018 |
2019 (1) |
Change (%) |
Organic change (%) |
|
Sales (2) |
4,422 |
4,184 |
-5 |
-8 |
|
EBITDA |
2,133 |
2,166 |
+2 |
-2 |
|
Net investments |
1,220 |
404 |
|
|
EBITDA of all Group Renewables amounted
to €2,166 million in 2019, down in organic terms by 2% due to
particularly unfavourable hydro conditions over the first nine
months of 2019.
Net investments were down due to the
effect of the increase in DSSA activities (20).
Energy
Services
Dalkia
|
(in millions of euros) |
2018 |
2019 (21) |
Organic change (%) |
|
Sales (22) |
4,189 |
4,281 |
+1.6 |
|
EBITDA |
292 |
349 |
+4.8 |
Dalkia’s sales in 2019 amounted to
€4,281 million, up 1.6% in organic terms compared to
2018.
EBITDA stood at €349 million, an organic
increase of 4.8% compared to 2018.
The increase in EBITDA reflected
Dalkia’s dynamic sales activity, with in particular the renewal of
numerous contracts (80% were renewed during the year). Dalkia
signed or renewed a number of contracts in France, including energy
performance and heat network contracts (a new 26-site multiservice
contract with Safran, and a new 15.5-year public service delegation
for urban heating in Grande Île at Vaulx-en-Velin and
Villeurbanne). Dalkia also pursued its plan to improve operating
performance and control overheads.
Sales of energy saving certificates
improved compared to 2018.
Group Energy
Services (23)
|
(in millions of euros) |
2018 |
2019 (24) |
Change (%) |
Organic change (%) |
|
Sales (2) |
5,569 |
5,788 |
+4 |
+2 |
|
EBITDA |
355 |
430 |
+21 |
+2 |
|
Net investments |
520 |
330 |
|
|
EBITDA in Group Energy Services amounted
to €430 million in 2019, i.e. an increase of 2% in organic terms,
driven by Dalkia’s performance.
The decrease in net investments reflects
essentially the acquisition of Zephyro in 2018 by Edison and lower
net investments from Dalkia, in particular in
networks.
Framatome
|
(in millions of euros) |
2018 |
2019 (25) |
Organic change (%) |
|
Sales
(26) |
3,313 |
3,377 |
+0.6 |
|
EBITDA (27) |
465 |
527 |
+3.0 |
|
EBITDA EDF group contribution |
202 |
256 |
+3.0 |
Framatome’s sales in 2019 amounted to
€3,377 million, up 0.6% in organic terms compared to
2018.
Framatome's EBITDA was €527 million
(including the margin realised with other EDF group entities),
corresponding to an organic increase of 3.0%. Framatome’s
contribution to the Group’s EBITDA amounted to €256 million,
an organic increase of 3.0% compared to 2018. The change takes into
account an expense of €42 million recorded in 2018 in
connection with the revaluation of inventories undertaken to
determine Framatome's acquisition balance sheet on 31 December
2017.
Order intake amounted to 3.3 billion in
2019 (of which more than 60% outside the Group).
In a highly competitive market,
Framatome’s “Installed Base” and “Instrumentation & Control”
businesses registered better performances in the United States and
Germany (80% exports). “Installed Base” business was affected by
rising execution costs on certain French and export
projects.
Profitability of the “Components
manucfacturing” business improved thanks to a step-up in production
of equipment to replace steam generators, and equipment for new
projects.
The “Fuel” business benefited from
well-maintained production levels, and fuel assembly deliveries for
the Taishan EPRs in China.
There was growth in the “Large projects”
business as the Hinkley Point C EPR project in United Kingdom was
ramping up (with no impact on Group EBITDA), compensating for the
decline in business activity after the Taishan EPRs commissioning
in China.
Framatome’s EBITDA also benefited from
the continuation of its overhead cost reduction plan.
United
Kingdom
|
(in millions of euros) |
2018 |
2019 (28) |
Organic change (%) |
|
Sales (29) |
8,970 |
9,574 |
5.9 |
|
EBITDA |
783 |
772 |
-4.6 |
In the United Kingdom, sales in 2019
amounted to €9,574 million, an organic increase of
5.9%.
EBITDA dropped to €772 million, an
organic decrease of 4.6% compared to 2018.
EBITDA in the United Kingdom was
impacted by the downturn in nuclear power generation and the
introduction at 1 January 2019 of a cap on residential tariffs for
electricity and gas (the Standard Variable Tariff). These
unfavourable factors were partly counterbalanced by an increase in
capacity revenue (€309 million ([30]) in 2019) following
reinstatement of the capacity market in October 2019, and the
higher realised prices for nuclear power (circa
+£4/MWh).
Nuclear output in 2019 amounted to
51TWh, a decrease of 8.1TWh compared to 2018. The downturn is
explained by the extensions of the Hunterston B and Dungeness B
outages in 2019.
Despite intense competitive pressure,
the residential customer portfolio increased slightly (+2% compared
to 2018), notably due to the transfer of Toto Energy’s ([31])
customer base with the business customer segment also performing
well with increased margins.
Italy
|
(in millions of euros) |
2018 restated
(32) |
2019 (33) |
Organic change (%) |
|
Sales (2) |
8,077 |
7,567 |
-8.1 |
|
EBITDA |
424 |
578 |
20.8 |
In Italy, sales amounted to €7,567
million in 2019, down 8.1% in organic terms compared to 2018.
EBITDA recorded an organic increase of 20.8% to €578
million.
EBITDA for the electricity activities
was up, essentially due to the good performance of electricity
ancillary services, hydropower generation and new wind farms
generation (+165MW).
EBITDA for gas activities was also up,
as a result of better optimisation of long-term gas supply
contracts by pipeline in 2019. In 2018, the EBITDA was affected by
tensions over supplies and purchases at high prices.
The contribution by the supply
activities was lower than in 2018 due to smaller margins on the
residential customer segment for both electricity and
gas.
In service activities, the results were
affected by favourable non-recurring items in 2018 and by a slight
decline in key account customers.
Other
international
|
(in millions of euros) |
2018 |
2019 (34) |
Organic change (%) |
|
Sales (35) |
2,411 |
2,690 |
+10.9 |
|
EBITDA |
240 |
339 |
+36.3 |
Sales in Other international amounted to
€2,690 million, up 10.9% in organic terms over 2018. EBITDA
recorded an organic increase of 36.3% to €339 million.
In Belgium (36), EBITDA showed
organic growth of €54 million (+38.6%). The principal factor in
this growth was the return of nuclear plant availability, which had
been very low in 2018, and the increase in wind power generation.
Gross wind power capacities were up, reaching 519MW (i.e. +18.0%
vs. 2018). Retail activities remained resilient despite a strongly
competitive environment.
EBITDA in Brazil also showed organic
growth of €48 million (+60.0%), largely due to the +16% adjustment
to the Power Purchase Agreement (PPA) price in November 2018
attached to the Norte Fluminense plant. Furthermore, this growth
reflected a good operating performance with a record level of
availability, a smaller maintenance programme than in 2018 and
better gas supply conditions.
Other
activities
|
(in millions of euros) |
2018 |
2019 (37) |
Organic change (%) |
|
Sales (38) |
2,601 |
2,728 |
+6.8 |
|
EBITDA |
858 |
505 |
-26.2 |
|
Including EDF Trading Group |
633 |
733 |
+17.9 |
Sales in the Other activities segment
amounted to €2,728 million, up 6.8% in organic terms over 2018.
EBITDA recorded an organic decrease of 26.2% to €505
million.
A capital gain on a real estate sale in
2018, for which there was no equivalent in 2019, also affected the
evolution of this segment’s EBITDA.
Gas activity is impacted by a provision
for onerous contracts booked in view of the downward revision of
medium-term and long-term spreads. However, there was a high level
of gas activities in 2019 thanks to growing competitivity in
European of gas-fired generation, and better use of the Group’s
capacities.
EBITDA at EDF Trading amounted to €733
million in 2019, an organic increase of 17.9% compared to 2018.
This rise follows the increase in the Group’s trading activities
over the entire year, which was driven by high volatility on the
commodities markets in a downtrending environment and favourable
positions on the electricity and gas markets in Europe, together
with a good level of business in the United States. Thanks to the
joint-venture formed the 2 April 2019 with JERA, trading and
optimisation activities on LNG (Liquefied Natural Gas)
internationally and LPG (Liquefied Petroleum Gas) activities also
contributed to this performance.
Main
events (39)since
the 2019 third quarter press release
Major
Events
- The EDF Group acquired Pod Point, one of the UK’s
largest electric vehicle charging companies (see press release of
13 February 2020).
- Masdar and EDF Group concluded shareholder agreement to
establish energy services company (see press release of 16 January
2020).
- EDF unveiled "Excell", an excellence plan for the
nuclear industry (see press release of 13 December
2019).
- The EDF Group steps up the pace in French wind and
solar powers (see press release of 9 December 2019).
- The EDF group launched the construction of Neart na
Gaoithe 450 MW offshore wind farm along with new Irish partner,
ESB. (see press release of 28 November 2019).
- The EDF Group becomes a premium partner and official
supplier of electricity and gas for the Paris 2024 games (see press
release of 19 November 2019).
New investments, partnerships
and investment projects
EDF Renewables (40)
- The EDF group moved into Ireland by acquiring 50% of
the Codling offshore wind project (see press release of 11 February
2020).
- EDF, Meridiam and Biokala have signed a concession
contract with the Côte d’Ivoire Government for the largest biomass
power plant in West Africa (see press release of 9 December
2019).
- EDF Renewables will become a strategic shareholder of
KarmSolar, a developer and supplier of solar power in Egypt (see
press release of 25 November 2019).
Nuclear industry
EDF and Véolia announced the creation of
Graphitech (see press release of 10 December
2019).
Group disposal
EDF notified the exercise of its put
option on its participation in CENG (see press release of
20 November 2019).
Financial structure
- EDF announced the final results of its tender offer for
US dollar-denominated hybrid notes (see press release of
31 December 2019).
- Share repurchase program reassignment of self-detained
shares to a new purpose (see press release of
24 December 2019).
- EDF announced the final results of its tender offer for
euro- denominated hybrid notes and the early participation results
of its tender offer for US dollar-denominated hybrid notes (see
press release of 12 December 2019).
- EDF raised 1.25 billion euros at 30 years as part of
its EMTN program (see press release of 3 December
2019).
- EDF raised US $ 2 billion at 50 year as part of its
EMTN program (see press release of 28
November).
- EDF priced its 500 million euros hybrid note offering
(see press release of 26 November 2019). Successful pricing of a
new 500 million euros hybrid offering Ongoing tender offer to
purchase notes for cash announced earlier on 26 November
2019 (1)
(1) See press release dated 26 November 2019, available
on the Company’s website.
Other significant
event
Results of the option to receive the
2019 interim dividend in shares (see press release of 16 December
2019).
APPENDICES
Consolidated income
statement
|
(in millions of euros) |
|
2019 (1) |
2018 (2) |
|
Sales |
|
71,317 |
68,546 |
| Fuel
and energy purchases |
|
(35,091) |
(33,056) |
| Other
external expenses |
|
(8,619) |
(9,262) |
|
Personnel expenses |
|
(13,793) |
(13,642) |
| Taxes
other than income taxes |
|
(3,798) |
(3,690) |
| Other
operating income and expenses |
|
6,692 |
6,002 |
|
Operating profit before depreciation and
amortisation |
|
16,708 |
14,898 |
| Net
changes in fair value on energy and commodity derivatives,
excluding trading activities |
|
642 |
(224) |
| Net
depreciation and amortisation |
|
(9,994) |
(8,775) |
| Net
increases in provisions for renewal of property, plant and
equipment operated under concessions |
|
(8) |
(50) |
|
(Impairment)/reversals |
|
(403) |
(290) |
| Other
income and expenses |
|
(185) |
(105) |
|
Operating profit |
|
6,760 |
5,454 |
| Cost
of gross financial indebtedness |
|
(1,806) |
(1,712) |
|
Discount effect |
|
(3,161) |
(3,464) |
| Other
financial income and expenses |
|
4,606 |
378 |
|
Financial result |
|
(361) |
(4,798) |
|
Income before taxes of consolidated companies |
|
6,399 |
656 |
| Income
taxes |
|
(1,581) |
178 |
| Share
in net income of associates and joint ventures |
|
818 |
569 |
| Net
income of discontinued operations |
|
(454) |
(212) |
|
CONSOLIDATED NET INCOME |
|
5,182 |
1,191 |
|
EDF net income |
|
5,155 |
1,177 |
| Net
income of continuing operations |
|
5,597 |
1,384 |
| Net
income of discontinued operations |
|
(442) |
(207) |
|
Net income attributable to non-controlling
interests |
|
27 |
14 |
| Net
income of continuing operations |
|
39 |
19 |
| Net
income of discontinued operations |
|
(12) |
(5) |
| |
|
|
|
|
Earnings per share (EDF share) in euros: |
|
|
|
| Basic
earnings per share |
|
1.50 |
0.20 |
|
Diluted earnings per share |
|
1.50 |
0.20 |
|
Earnings per share of continuing operations |
|
1.65 |
0.27 |
|
Diluted earnings per share of continuing operations |
|
1.65 |
0.27 |
- The financial statements at 31 December 2019
apply IFRS 16 from 1 January 2019 (using the
modified retrospective approach). In accordance with the new
standard’s transition provisions, the comparative figures have not
been restated.
- The published figures for 2018 have been restated
due to the impact of presenting Edison’s E&P operations as
discontinued operations.
Consolidated balance sheet
|
ASSETS(in millions of
euros) |
|
31/12/2019 (1) |
31/12/2018 |
| Goodwill |
|
10,623 |
10,195 |
| Other
intangible assets |
|
9,350 |
9,918 |
|
Property, plant and equipment operated under French public
electricity distribution concessions |
|
58,413 |
56,515 |
|
Property, plant and equipment operated under concessions for other
activities |
|
6,860 |
7,339 |
|
Property, plant and equipment used in generation and other tangible
assets owned by the Group, including right-of-use assets |
|
89,099 |
78,252 |
|
Investments in associates and joint ventures |
|
6,414 |
8,287 |
|
Non-current financial assets |
|
46,219 |
37,104 |
| Other
non-current receivables |
|
1,930 |
1,796 |
|
Deferred tax assets |
|
557 |
978 |
|
Non-current assets |
|
229,465 |
210,384 |
|
Inventories |
|
14,049 |
14,227 |
| Trade
receivables |
|
15,606 |
15,910 |
| Current
financial assets |
|
29,401 |
31,143 |
| Current
tax assets |
|
286 |
869 |
| Other
current receivables |
|
6,881 |
7,346 |
| Cash
and cash equivalents |
|
3,934 |
3,290 |
|
Current assets |
|
70,157 |
72,785 |
| Assets
classified as held for sale |
|
3,662 |
- |
|
TOTAL ASSETS |
|
303,284 |
283,169 |
(1) The financial statements
at 31 December 2019 apply IFRS 16 from
1 January 2019 (using the modified retrospective
approach). In accordance with the new standard’s transition
provisions, the comparative figures have not been
restated.
|
EQUITY AND LIABILITIES(in millions of
euros) |
|
31/12/2019 (1) |
31/12/2018 |
|
Capital |
|
1,552 |
1,505 |
| EDF net
income and consolidated reserves |
|
44,914 |
42,964 |
|
Equity (EDF share) |
|
46,466 |
44,469 |
| Equity
(non-controlling interests) |
|
9,324 |
8,177 |
|
Total equity |
|
55,790 |
52,646 |
|
Provisions related to nuclear generation – back-end of the
nuclear cycle, plant decommissioning and last cores |
|
55,583 |
49,204 |
| Other
provisions for decommissioning |
|
1,573 |
2,033 |
|
Provisions for employee benefits |
|
20,539 |
17,627 |
| Other
provisions |
|
3,065 |
2,908 |
|
Non-current provisions |
|
80,760 |
71,772 |
| Special
French public electricity distribution concession liabilities |
|
47,465 |
46,924 |
|
Non-current financial liabilities |
|
57,002 |
52,129 |
| Other
non-current liabilities |
|
4,928 |
4,896 |
|
Deferred tax liabilities |
|
2,295 |
1,987 |
|
Non-current liabilities |
|
192,450 |
177,708 |
| Current
provisions |
|
5,556 |
6,010 |
| Trade
payables |
|
12,867 |
13,421 |
| Current
financial liabilities |
|
18,535 |
17,167 |
| Current
tax liabilities |
|
433 |
205 |
| Other
current liabilities |
|
16,610 |
16,012 |
|
Current liabilities |
|
54,001 |
52,815 |
|
Liabilities related to assets classified as held for sale |
|
1,043 |
- |
|
TOTAL EQUITY AND LIABILITIES |
|
303,284 |
283,169 |
(1)The financial statements at
31 December 2019 apply IFRS 16 from
1 January 2019 (using the modified retrospective
approach). In accordance with the new standard’s transition
provisions, the comparative figures have not been
restated.
Consolidated cash flow
statement
|
(in millions of euros) |
|
2019 (1) |
2018 (2) |
|
Operating activities: |
|
|
|
|
Income before taxes |
|
5,983 |
473 |
|
Income before taxes of discontinued
operations |
|
(416) |
(183) |
|
Income before taxes of consolidated companies |
|
6,399 |
656 |
|
Impairment/(reversals) |
|
403 |
290 |
|
Accumulated depreciation and amortisation, provisions and changes
in fair value |
|
8,328 |
12,957 |
|
Financial income and expenses |
|
97 |
718 |
|
Dividends received from associates and joint ventures |
|
349 |
387 |
|
Capital gains/losses |
|
(508) |
(1,014) |
| Change
in working capital |
|
452 |
470 |
|
Net cash flow from operations |
|
15,520 |
14,464 |
| Net
financial expenses disbursed |
|
(798) |
(1,048) |
| Income
taxes paid |
|
(922) |
(309) |
|
Net cash flow from continuing operating
activities |
|
13,800 |
13,107 |
|
Net cash flow from operating activities relating to
discontinued operations |
|
222 |
257 |
|
Net cash flow from operating activities |
|
14,022 |
13,364 |
|
Investing activities: |
|
|
|
| Acquisitions of equity investments, net
of cash acquired |
|
(456) |
(484) |
| Disposals of equity investments, net of
cash transferred |
|
293 |
1,261 |
|
Investments in intangible assets and property, plant and
equipment |
|
(16,709) |
(16,016) |
| Net
proceeds from sale of intangible assets and property, plant and
equipment |
|
94 |
577 |
|
Changes in financial assets |
|
1,294 |
(2,367) |
|
Net cash flow from continuing investing
activities |
|
(15,484) |
(17,029) |
|
Net cash flow from investing activities
relating to discontinued operations |
|
(166) |
(136) |
|
Net cash flow from investing activities |
|
(15,650) |
(17,165) |
|
Financing activities: |
|
|
|
| Transactions with non-controlling
interests (3) |
|
1,055 |
1,548 |
|
Dividends paid by parent company |
|
(58) |
(511) |
|
Dividends paid to non-controlling interests |
|
(155) |
(183) |
|
Purchases/sales of treasury shares |
|
(14) |
(3) |
|
Cash flows with shareholders |
|
828 |
851 |
|
Issuance of borrowings |
|
9,080 |
5,711 |
|
Repayment of borrowings |
|
(6,976) |
(2,724) |
|
Issuance of perpetual subordinated bonds |
|
493 |
1,243 |
|
Redemptions of perpetual subordinated bonds |
|
(1,280) |
(1,329) |
|
Payments to bearers of perpetual subordinated bonds |
|
(589) |
(584) |
|
Funding contributions received for assets operated under
concessions |
|
143 |
131 |
|
Investment subsidies |
|
543 |
351 |
|
Other cash flows from financing activities |
|
1,414 |
2,799 |
|
Net cash flow from continuing financing
activities |
|
2,242 |
3,650 |
|
Net cash flow from financing activities relating to
discontinued operations |
|
(19) |
(120) |
|
Net cash flow from financing activities |
|
2,223 |
3,530 |
| Net
cash flow from continuing operations |
|
558 |
(272) |
| Net
cash flow from discontinued operations |
|
37 |
1 |
|
Net increase/(decrease) in cash and cash
equivalents |
|
595 |
(271) |
|
CASH AND CASH EQUIVALENTS - OPENING BALANCE |
|
3,290 |
3,692 |
| Net increase/(decrease) in cash and
cash equivalents |
|
595 |
(271) |
| Effect
of currency fluctuations |
|
(5) |
(95) |
|
Financial income on cash and cash equivalents |
|
17 |
13 |
| Effect
of reclassifications |
|
37 |
(49) |
|
CASH AND CASH EQUIVALENTS - CLOSING BALANCE |
|
3,934 |
3,290 |
- The financial statements at 31 December 2019
apply IFRS 16 from 1 January 2019 (using the
modified retrospective approach). In accordance with the new
standard’s transition provisions, the comparative figures have not
been restated.
- The published figures for 2018 have been restated
due to the impact of presenting Edison’s E&P operations as
discontinued operations.
- Contributions via capital increases, or capital
reductions and acquisitions of additional interests or disposals of
interests in controlled companies. In 2019, this item includes
an amount of €968 million relating to CGN’s payment for the
NNB Holding Ltd. and Sizewell C Holding Co capital increases
(€743 million at 31 December 2018). In 2018 it
also included an amount of €797 million relating to the sale
of 49% of EDF Renewables’ wind farms.
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 quarterly
financial information is not subject to an auditor’s
report.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.Detailed information regarding
these uncertainties and potential risks are available in EDF’s
Universal Reference Document (URD) filed with the Autorité des
marchés financiers on 29 July 2019, which is available on the
AMF's website at www.amf-france.org and on EDF’s website at
www.edf.com.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.
This press release is certified.
Check its authenticity on medias.edf.com
([1]) After deduction of
pumped-storage hydropower volumes, hydropower production stood at
33.4TWh for 2019 (39.2TWh for 2018).
([2]) Adjusted for interest
payments on hybrid issues booked in equity.
([3]) The statements as of 31
December 2019 have been prepared in accordance with IFRS 16. The
comparative data has not been restated.
([4]) Cash flow after
dividends. The statements as of 31 December 2019 have been prepared
in accordance with IFRS 16. The comparative data has not been
restated and the impact would have amounted to +€609 million on the
Group's cash flow.
([5]) Net financial debt
increased by €4.5 billion in connection with the implementation of
IFRS 16 on 1 January 2019.
- [6]) Net financial debt is not defined
in the accounting standards and is not directly visible in the
Group’s consolidated balance sheet. 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.
- [7]) The comparative figures for 2018
(excluding EFN) have been restated to reflect the impact of the
presentation of the E&P activities that are being
sold.
([8]) The statements as of 31
December 2019 have been prepared in accordance with IFRS 16. The
comparative data has not been restated. The impact on EBITDA would
have been €291 million at 31 December 2018.
([9]) Breakdown of sales across
the segments, before inter-segment eliminations.
([10]) Sum of personnel
expenses and other external expenses. At comparable scope, standard
and exchange rates. At constant pension discount rates. Excluding
change in operating expenses of the service activities.
([11]) Regulated activities
including Enedis, Électricité de Strasbourg and island
activities.
([12]) The statements as of 31
December 2019 have been prepared in accordance with IFRS 16. The
comparative data has not been restated. The impact on EBITDA would
have been +€167 million at 31 December 2018.
([13]) Breakdown of sales
across the segments, before inter-segment eliminations.
([14]) Indexed adjustments of
TURPE 5 distribution tariff of +3.04% on 1 August 2019 (-0.21% on 1
August 2018) and of the TURPE 5 transmission tariff of +2.16% at 1
August 2019 (+3.0% at 1 August 2018).
([15]) Sum of personnel
expenses and other external expenses. At comparable scope, standard
and exchange rates. At constant pension discount rates. Excluding
change in operating expenses of the service activities.
([16]) The statements as of 31
December 2019 have been prepared in accordance with IFRS 16. The
comparative data has not been restated. The impact on EBITDA would
have been €56 million at 31 December 2018.
([17]) Breakdown of sales
across the segments, before inter-segment eliminations.
([18]) The capital gain recorded
also includes the revaluation of securities retained following the
loss of control of the company.
([19]) For the renewable energy
generation optimized within a larger portfolio of generation
assets, in particular relating to the French hydro fleet after
deduction of pumped volumes, sales and EBITDA are estimated, by
convention, as the valuation of the output generated at spot market
prices (or at purchase obligation tariff) without taking into
account hedging effects, and include the valuation of the capacity,
if applicable.
([20]) The change in net
investments also includes the outflow of debt associated with the
NnG project as a result of the disposal.
([21]) The statements as of 31
December 2019 have been prepared in accordance with IFRS 16. The
comparative data has not been restated. The impact on EBITDA would
have been €41 million at 31 December 2018.
([22]) Breakdown of sales
across the segments, before inter-segment eliminations.
([23]) Group Energy Services include
Dalkia, Citelum, CHAM and service activities of EDF Energy, Edison,
Luminus and EDF SA. They consist in particular of street lighting,
heating networks, decentralised low-carbon generation based on
local resources, energy consumption management and electric
mobility.
([24]) The statements as of 31
December 2019 have been prepared in accordance with IFRS 16. The
comparative data has not been restated and the impact on EBITDA
would have been €58 million at 31 December 2018.
([25]) The statements as of 31
December 2019 have been prepared in accordance with IFRS 16. The
comparative data has not been restated. The impact on EBITDA would
have been €44 million at 31 December 2018.
([26]) Breakdown of sales
across the segments, before inter-segment eliminations.
([27]) Breakdown of EBITDA
across the segments, before inter-segment eliminations.
([28]) The statements as of 31
December 2019 have been prepared in accordance with IFRS 16. The
comparative data has not been restated and the impact on EBITDA
would have been €18 million at 31 December 2018.
([29]) Breakdown of sales
across the segments, before inter-segment eliminations.
([30]) Including revenue for
the 4th quarter of 2018.
([31]) This transfer was decided
by Ofgem, the British regulator for gas and electricity markets,
when Toto Energy lost its licence.
- [32]) The disposal of Edison's
Exploration and Production (E&P) business was classified as a
discontinued operation within the meaning of IFRS 5 as of 1 January
2019. The comparative figures for 2018 have been
restated.
- [33]) The statements as of 31 December
2019 have been prepared in accordance with IFRS 16. The comparative
data has not been restated. The impact on EBITDA would have been
€21 million at 31 December 2018.
- [34]) The statements as of 31 December
2019 have been prepared in accordance with IFRS 16. The comparative
data has not been restated and the impact on EBITDA would have been
€9 million at 31 December 2018.
([35]) Breakdown of sales
across the segments, before inter-segment eliminations.
([36]) Luminus and EDF
Belgium.
([37]) The statements as of 31
December 2019 have been prepared in accordance with IFRS 16. The
comparative data has not been restated and the impact on EBITDA
would have been -€130 million at 31 December 2018.
([38]) Breakdown of sales
across the segments, before inter-segment eliminations.
([39]) The complete list of
press releases is available on the EDF website: www.edf.fr
([40]) La liste exhaustive des
communiqués de presse d’EDF Renouvelables est disponible sur le
site internet : www.edf-renouvelables.com
Footnotes to the first and
second pages([1]) The
statements as of 31 December 2019 have been prepared in accordance
with IFRS 16 as of 1 January 2019 (use of the modified
retrospective method). The comparative data has not been restated,
in accordance with the interim provisions of the standard.
([2]) Organic change at
comparable scope, standard and exchange rates.
([3]) The EDF group
pursues a development model based on partnerships. Not all of these
projects will be fully consolidated.
([4]) EDF’s
Electric Mobility Plan comes in addition to the specific
investments made in this area by Enedis, an independent EDF
subsidiary as defined in the French Energy Code.
([5]) See press release of 9
October 2019. Estimated cost of construction revised to €12.4bn in
2015 euros and excluding interest during the period of
construction.
([6]) 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, and excluding net changes in fair
value of debt and equity securities, net of tax.
([7]) Sum of personnel
expenses and other external expenses. At comparable scope, standard
and exchange rates. At constant pension discount rates. Excluding
change in operating expenses of the service activities.
([8]) Total net
investments excluding acquisitions and “2019-2020 Group
disposals”.
([9]) Payout ratio of net
income excluding non-recurring items adjusted for the remuneration
of hybrid bonds accounted for in equity.
([10]) On the basis of the
scope and exchange rates at 01/01/2019 and of an assumption of a
375-390TWh range for French nuclear generation for 2020.
([11]) The target includes
the execution of the CENG shares put-option in 2020. Closing may be
postponed to 2021, depending on the timing of regulatory
approvals.
([12]) The comparative figures
for 2018 have been restated to reflect the impact of the
presentation of Edison’s E&P activities that are being
sold.
- PR FY 2019- VDEF certified