Electricite de France : The transcript of the Investors and Analysts conference (PDF - 373 KB)

EDF

ANNUAL RESULTS 2020

18 February 2021

ANNUAL RESULTS 2020

Jean-Bernard Lévy

Chairman and Chief Executive Officer

Ladies and gentlemen, good morning. Welcome to the presentation of our Group's results for the year 2020. All of us naturally would like to meet in the usual conditions. As you well know, the spread of the epidemic demands the greatest caution. So, we have chosen very simply to communicate remotely, and in spite of the circumstances, I know many of you will join our discussion and you have my heartfelt thanks.

STRONG MOBILISATION OF THE GROUP DURING THE HEALTH CRISIS

As was the case for all businesses and for each and every one of us, 2020 was very challenging. Faced with this trying period, EDF exhibited unfailing resilience and adaptability. Committed to the values of public service, EDF's strong workforce - 165,000 people - we all stepped up to the plate and I want to thank all of them sincerely.

Through the public health crisis, we continued to generate and distribute the electricity so essential to France and the countries where we operate, while keeping our employees safe and healthy. We quickly readjusted, and no one of our clients was deprived of electricity.

We stood alongside all our customers, including private homes, businesses, communities, and public services, in particular hospitals, and we delivered the highest standards of service. In response to a larger number of payment issues than usual, we also found personalised solutions for our customers.

At all levels of our organisation, our employees rallied around solidarity initiatives such as the donation of protective equipment or the setting up of an emergency solidarity fund in order to help healthcare personnel and the lowest income populations.

In order to relieve the cash position of many of our suppliers weakened by the crisis, more especially SMEs, we set up an accelerated payment procedure.

2020 KEY FIGURES

Our Group's resilience is also reflected in our financial results. Our EBITDA is solid amounting to €16.2 billion. The impact of the crisis we can say it had a moderate impact. The impact of the crisis is under control, amounting to €1.5 billion, less than 10% of the EBITDA. This demonstrates the robustness of our Group's fundamentals, and Xavier will come back to this point later.

We succeeded in making a profit. Our net income excluding non-recurring items is largely positive amounting to roughly €2 billion and net income Group share also remains positive. Net financial debt to EBITDA ratio is 2.6x. It decreased slightly compared to 2019. This figure is obviously on target with the guidance well below 3x. We are therefore able to maintain EDF's financial robustness even in these troubled times.

At the Annual Meeting, which we held on 17th of February, the Board of Directors decided to recommend the dividend amounting to €0.21 per share for Financial Year 2020, corresponding to 45% payout ratio; the payout of net income excluding non-recurring items. The French State already committed to opt for a scrip dividend payment.

The public health crisis should not overshadow the climate change emergency. The reduction of carbon emissions throughout the world is central to our strategy.

2030 STRATEGIC TARGETS UPGRADE

The post-COVID recovery will rely on the building of a low-carbon world. This is now the common thread of French and European stimulus strategies and the USA just re-joined the Paris Accord.

A carbon-neutral world is the keystone of EDF's raison d'être, adopted at the General Meeting of Shareholders in May. The raison d'être is to build a net zero energy future with electricity and innovative solutions and services, to help save the planet, and drive well-being and economic development.

The raison d'être has prompted us to raise some of the strategic targets that we had set out in CAP 2030. In the area of energy services, we are seeking to help our customers, achieve carbon neutrality with the objective of reducing their carbon emissions by 15 million tonnes in France by 2030. This ambition will be achieved through the development of innovative services across the Group, both in France and abroad, which are expected to bring in sales to deliver to the level of €10 billion by 2030.

Regarding the generation of decarbonised electricity, we are raising our net installed renewable capacity target from 50 to 60 GW, almost double - even slightly above double - the amount in 2015.

With the argument of decarbonisation, we are raising the profile of France's nuclear industry on the international market. We intend to start new EPR projects and prepare for the sale of France's small modular reactors. On a global scale, we have set a hydro capacity target: 1.5 to 2 GW of net new capacity in hydro around the world by 2030.

We will also be leveraging on our position as a leader on the off-grid market in Africa, and we aim to have sold 1 million solar kits by 2030, and hence providing around 5 million people with access to electricity.

ENVIRONMENTAL AND SOCIAL COMMITMENTS STRENGTHENED IN 2020 (1/2)

The achievement of carbon neutrality requires the preservation of natural resources as well as responsible and mutually supportive inclusive growth. Advocated by our raison d'être, this is central to our policy of societal and environmental responsibility.

2020 will obviously have been an exceptional year for our environmental commitments. While EDF already emits five times less carbon per kilowatt hour generated than the European average, we are continuing to reduce our carbon intensity, which are our direct emissions in proportion to the electricity output. We are now aiming for 35 grammes per kilowatt hour generated by 2030. Obviously, this will be among the best performance throughout the industry.

In 2020, we undertook to completely phase out the use of coal in all parts of the world where we operate by 2030. We have also raised our target for the reduction of direct carbon emissions from 40%to 50% and for the first time ever we have also decided to reduce our indirect carbon emissions with challenging targets: -8% by 2023 and -28% by 2030.

This is because the achievement of carbon neutrality requires us to reduce all carbon emissions across Scope 1, Scope 2, and Scope 3. We are, we believe, one of the few players to set ourselves such an ambitious goal.

I'm particularly proud of the fact that our carbon reduction targets have obtained the prestigious and demanding Science Based Targets initiative certification. This commendation bears testimony to the fact that our targets aligned with the curtailment of global warming to, as they say, 'well below 2 degrees.'

ENVIRONMENTAL AND SOCIAL COMMITMENTS STRENGTHENED IN 2020 (2/2)

On a societal level, maybe I can highlight two advancements.

First, the number of women sitting on the Group's management committees is constantly increasing in 2020. It was well above the CAC 40 average and has already exceeded the level we were aiming to reach in the next three years, we have now 29% of women sitting on the Group's management committees. So, we have now to revise our 2023 target upwards, and this is in progress.

We are proud also to be France's leading hirer of apprentices. One apprentice in 100 in France works for EDF. We are adding a new target whereby one apprentice in three will come from priority districts and revitalised rural areas.

I would now like to highlight some noteworthy facts of the past year. Our achievements are numerous.

RENEWABLES: STRONG ACCELERATION IN GROWTH (1/3)

The renewable sector is growing faster from year to year. 2020 saw significant progress in capacities under construction and in capacities already commissioned, respectively by +56% and +32%. This shows our ability to keep tight control over our projects.

Whether prospective, whether under development or secured, our pipeline of projects is very well stocked. 60 GWs; already a sign of further growth in the years to come.

RENEWABLES: STRONG ACCELERATION IN GROWTH (2/3)

2020 was an important year for offshore wind power with the start of construction on the Fécamp wind farm, close to the Northern Coast of France and we also acquired projects amounting to 1 GW close to Ireland.

As for on-land wind capacity, we have started building the biggest project of this type in the Middle

East. It is called Dumat. It is in Saudi Arabia. We also commissioned close to 1.5 GW of capacity, primarily in the United States.

In the solar sector, I am pleased with the fact that for the Al Dhafra solar projects in the United Arab Emirates, the biggest in the world with a capacity of 2 GW, EDF has been awarded this project in a consortium with other players.

In India, we have strengthened our position; 1.3 GW of new solar projects, not to mention our longstanding market, our number one market, the United States, where last year we acquired an additional 4.5 GW worth of solar projects.

In the Solar Plan in France, which is a key priority, we just reached our target of 30% market share in the latest tender organised by the regulator and we now have a portfolio of more than 3 GW of projects under development, secured, or under construction. We are also the clear number one on the rooftop solar market in our home country.

RENEWABLES: STRONG ACCELERATION IN GROWTH (3/3)

In the hydro sector, I take great pride in the completion of Romanche-Gavet. Maybe some of you saw it on the movie a few minutes ago. It is now completed. The biggest hydro project in France. It will now deliver 40% more generation capacity than the previous facility and it showcases our expertise when it comes to landscaping our structures to blend in with their surroundings as well as protecting biodiversity.

In Cameroon, Nachtigal dam project is moving towards its commissioning date in 2024. One third of the civil works are completed. The rollout of our storage plan, Plan Stockage, looks promising.

Approximately 1 GW of projects have already been completed or secured. In 2020, we were awarded projects in the USA and in Israel, among others.

We also launched the construction of battery storage facilities with a capacity of 100 MW in the United Kingdom, and we commissioned a hybrid Toucan plant in French Guiana.

NUCLEAR: MAJOR CONTRIBUTION TO LOW-CARBON GENERATION

When it comes to nuclear, the other cornerstone of decarbonised electricity generation, I would first like to highlight the extraordinary resilience of France's nuclear fleet. Thanks to the quick and remarkable adaptation of our maintenance programmes, the required amount of power was generated throughout the sanitary crisis and throughout the winter.

Our workforce quickly adjusted to new working conditions and our Grand Carénage programme cleared very important milestones, including very recently the completion of the fourth ten-year outage at Bugey 2. This is the second in the 900 MW reactor series.

On the Flamanville 3 site, our workforce is preparing for repair work on penetration welds. In the United Kingdom, all key milestones of the Hinkley Point C project were achieved while complying strictly with the new health precautions. This is illustrated by the installation of the common raft on reactor number two, followed by the installation of the first containment ring on reactor number one.

I'm extremely pleased by the start of the discussions with the UK government on the funding of two new EPR units in Sizewell C. This initiative highlights the importance that the UK attaches to nuclear as part of its climate-change goals.

In order to successfully meet the challenges of nuclear in France and in the export markets, in 2019 we launched the Plan Excell. The Excell Plan seeks to restore the industrial excellence which used to be the hallmark of France's nuclear industry. We have embarked on the second phase of this plan, which revolves around 21 new commitments for mid '21.

CUSTOMERS AND SERVICES: EDF BECOMES A MAJOR PLAYER IN MARKET OFFERINGS IN FRANCE

In the area of customers and services, I'm pleased to note that the energy we have poured into winning market share is bearing fruit. Nearly 1 million residential customers have chosen one of our market based offerings for the supply of electricity. This is due to the quality of our customer service and our range of offerings is constantly expanding.

We have now become also a major player on the heat pump market with our new IZI by EDF platform.

Sales increased by a factor of five from the first to the second half of the year. We are consolidating our positions on the resident market in Belgium through Luminus, which is planning to acquire a portfolio of 360,000 customers. And also, in the UK with the takeover of a portfolio consisting of Green Networks Energy's customers also in the range of 350,000.

Dalkia is a brilliant example of our knowhow in the area of energy efficiency and is reporting new wins, some of them in the sector of renewable heating networks.

With regard to electric mobility, we will change scale in 2020. EDF Group now has more than 100,000 charging stations in Europe. In France, our subsidiary IZIVIA has become a leader in the public charging sector; number one on that sector with 26% market share.

In the promising sector of decarbonised hydrogen, we've seen in 2020 the merits of our strategy with the first success of our subsidiary called Hynamics. In Auxerre, Hynamics will be building a hydrogen production and distribution facility for public transport operators. In Germany, Hynamics will be building one of the most powerful electrolyser networks in Europe; 30 MW for industrial purposes and this will be powered by an offshore wind farm.

ENEDIS: LEADER AT THE HEART OF THE ENERGY TRANSITION IN EUROPE

A few words about Enedis. The rollout of the Linky smart metre is nearing completion. Almost 30 million meters were installed by the end of 2020, meaning that we are almost one year ahead in the rollout schedule.

In spite of the sanitary crisis, the connection of our customers went ahead at a sustained pace and maintenance continued to be performed on the distribution network. So, all praise also to the Enedis employees for succeeding in the public service commitments.

In 2020, Enedis was once again a major contributor to the penetration of electric mobility across our regions, and to the integration of more and more renewables into the grid. A clear illustration of Enedis's central role in the energy transition is Enedis's human and industrial project for the period of 2022 to 2025, which was launched in the middle of 2020.

So, this ends the first part of my presentation, I will now hand over to Xavier Girre, our Chief Financial Officer. And Xavier will walk you through our results in more detail. Please, Xavier.

Xavier Girre

Group Senior Executive VP - Finance

Good morning, everybody. I'm very happy to be with you this morning and I will now present you our 2020 financial results in more detail.

2020 KEY FIGURES

Looking at the key figures, sales amounted to circa €69 billion, a 3.4% organic decrease versus 2019. EBITDA came to circa €16.2 billion, down 2.7% in organic terms. Net recurring income stood at circa €2 billion. Net income Group share amounted to circa €0.7 billion. I will come back to this specific items later on in the presentation. Net financial debt raised by about €1.2 billion to €42.3 billion. And finally, net financial debt to EBITDA ratio stood at 2.61x at end of 2020.

COVID 19 IMPACTS

Let's now focus on the COVID impact. At ETBIDA level, the COVID impact came out at circa €1.5 billion. This can be split as follows.

First, nuclear activity in France was impacted by €0.7 billion. This was mostly a consequence of an extensive modulation to adapt production to the drop in power consumption and of extended outages caused by sanitary restrictions on site. H1 and H2 ended up almost equally impacted.

Second, customers and services were impacted by €0.6 billion. This was linked to a drop in power consumption, a slowdown in projects and services deployment in support of the customers and an increase in customers' credit risk. H1 was impacted by €0.5 billion as the peak of the lockdown did materialise, whereas H2 was only marginally impacted by €0.1 billion.

Last, regulated activities were impacted almost exclusively in H1 by €0.2 billion as a consequence of lower distributed volumes and less grid-connection works.

In a nutshell, two thirds of the €1.5 billion COVID impact on EBITDA related to H1 and only one third to H2, the second semester experiencing a clear activity and performance recovery.

To mitigate these impacts, we reacted quickly by setting a medium term action plan that was announced in July 2020. This plan consists of a €0.5 billion OpEx reduction, excluding inflation, by 2022 compared to 2019, and of circa €3 billion disposals over the period '20 to '22. This plan is underway.

The OpEx reduction at the end of 2020 versus 2019 amounted to €0.2 billion, excluding inflation, and the disposal signed or closed at the end of 2020 amounted to circa €0.5 billion, including the signing of the Edison's Norwegian E&P assets on the 30th of December 2020.

As a whole, the Group's revised guidance was slightly exceeded, and adjusted from the COVID impact, Group's ETBIDA would have increased by more than 6% compared to 2019, in line with the initial EBITDA guidance for the year.

REVISED TARGETS SLIGHTLY EXCEEDED (EBITDA ≥ €16BN AND NET FINANCIAL DEBT/EBITDA < 3X)

INITIAL TARGETS EXCL. COVID ACHIEVED

Let me now walk you through the Group's EBITDA in more detail. This slide shows its evolution by segment. Slide 20.

GROUP EBITDA BY SEGMENT

As you can see, the EBITDA slightly decreased by 2.7% mainly in the following three segments. First, France - Generation and supply activities impacted by lower nuclear output. Second, EDF Renewables showed a decrease of €0.3 billion, mostly due to the one-off positive impact of NnG offshore wind farm, 50% disposal in 2019. And third, the other activities are impacted by additional provisions in the LNG business for some long term contracts.

On the opposite, the following segments recorded a positive EBITDA growth versus 2019 despite the impact of the COVID crisis: France regulated activities with an increase in tariffs; United Kingdom with nuclear realised prices; Italy with good performance in renewable and gas activities; and finally, Other International with a more favourable PPA indexation in Brazil.

GROUP EBITDA - SYNTHESIS

This slide presents another view of the variation of the EBITDA, grouping the main effects together. Two main negative impacts excluding COVID. The 'Development and Sale of Structured Assets' activity of EDF Renewables decreased by €0.3 billion in 2020, as 2019 was positively impacted by the sale of 50% of the NnG Scottish offshore wind farm project. The lower generation in France and the UK, primarily due to extended outages not related to COVID for -€0.3 billion.

These negative effects were counterbalanced by some positive ones, mostly expected and shared with you one year ago. The most impactful one was the favourable energy price effects in France, including the catch-up on tariffs, and in the UK through nuclear realised prices as well as favourable tariff revision for Enedis. These three elements represented a total close to +€1.7 billion.

FRANCE NUCLEAR OUTPUT

Nuclear output in France came to 335.4TWh, down 44TWh compared to 2019. Main reasons.

First the COVID Impact was estimated at approximately 33TWh. Second, the extended outages at Flamanville 1 & 2 and Paluel 2 contributed to the decrease in nuclear output by an amount of circa 19TWh. Third, the closure of the two reactors of Fessenheim representing a loss of around 10TWh.

Finally, planning optimisation performed across the fleet helped mitigate those effects by around 14TWh. This outages rescheduling was greatly implemented to preserve security of supply during winter.

FRANCE HYDRO OUTPUT

French hydro output was up by 12.6%. This was made possible thanks to a high level of storage at the end of 2019, and to normal hydro conditions in 2020 vs below average in 2019. It is worth noting that the level of "lake France" was up 16% at end of 2020 compared to historical levels.

FRANCE - GENERATION & SUPPLY ACTIVITIES EBITDA

EBITDA for France - Generation & Supply activities was down organically by 2.7% to €7.4 billion.

Adjusted from the Covid effect, the EBITDA would have increased by 8.8% all other things being equal. The overall energy volume effect represents a decrease of €209 million. Nuclear output was down by an estimated -11TWh due to other non-COVID factors and hydro output was up by +5.1TWh.

The most favourable driver is the increase in energy prices, representing a +€748 million, due to the tariff increases in June 2019 and February 2020. The latter including half of the tariff catch-up in 2019.

Overall, for downstream, the increase was estimated at €182 million. Two opposite and distinct effects here: on the one hand the erosion of market share represented a decrease of 12.3TWh; on the other hand, EBITDA benefitted from higher capacity revenues, driven by a price effect from June. Operating expenses were down by €148 million.

Last, the negative impact of the sanitary crisis was estimated at circa €0.9 billion. This was related to a loss of 33TWh of nuclear output as already explained, to the decrease in electricity consumption for an estimated 8TWh, and to an increase in the risk of bad debt for €0.1 billion.

FRANCE - REGULATED ACTIVITIES EBITDA

Regulated activities EBITDA reached €5.2 billion, up 2.1% in organic terms compared to 2019. Adjusted from the COVID effect, the increase would have reached close to 7% all other things being equal. These figures confirm ENEDIS business model resilience.

It reflects a contrasted trend throughout the year: H1 was a negative 4.6%, while H2 showed a recovery with a +6.6% growth compared to the same period in 2019. The change in prices had a positive effect of circa €0.4 billion, in line with the favourable TURPE 5 indexation that took place on

1 August 2019 and 2020.

The climate, 6.8 TWh less distributed volumes, and climatic hazards, on the contrary less impacting than last year, had together an estimated unfavourable impact of circa €0.1 billion. The decline in distributed volumes, about -8.4TWh excluding climate effects, and network connection services reflects the impact of the health crisis. This was estimated around €0.2 billion euros.

Let me remind you that new regulated tariff TURPE 6 will start on August 1st, 2021, for a period of four years. The remuneration of the assets that Enedis is operating remains stable at 2.5% pre-tax, whereas the remuneration of the regulated equity has been revised downward to 2.3% to reflect the decrease of the income tax rate and the drop in the risk-free rate. The catch-up mechanism was confirmed, as well as the incentive regulation.

Enedis has also launched an industrial and human project for 2020 to 2025 period. To give you an accurate view on Enedis's business model, projects and value drivers, we have extended the appendices and I invite you to refer to them.

RENEWABLE ENERGIES

Although EDF Renewables EBITDA decreased by 23% in organic terms, the key points here are resilience and growth. Resilience, because COVID impacts are non-material on EBITDA as most of the revenues are secured by long-term contracts. And growth, because EBITDA from production, increased by 4.7% in organic terms, benefitting from new installed capacities.

Distributed Solar & Maintenance Operation activities, mainly in the US, contributed positively to the EBITDA. Let me highlight that Renewables reached a record level of projects, with 8GW of gross capacity under construction at the end of 2020. It breaks down into 2.5GW of onshore wind, 1.6GW of offshore wind and 3.9GW of solar.

This confirms our strong ambition which is doubling of net capacity between 2020 and 2024, backed by an extended pipeline and strong expertise as developed also in the appendices.

ENERGY SERVICES

Let's now move to Energy Services. Dalkia's EBITDA decreased by 17.5% in organic terms, to €290 million. Adjusted from the COVID effect, the decrease would have been limited to 6%. The Group

EBITDA in these services business reached €318 million.

The COVID impact consisted of reduction in sales volumes of energy and services, due to the closure of many customer sites and the postponement of construction works. Increased competitiveness, in line with the operational performance plan, controlled overheads and new or renewed commercial contracts had a favourable effect on the EBITDA. Conversely, occasional difficulties with UK contracts penalised financial performance.

FRAMATOME

As regards Framatome, EBITDA was up by 0.8% in organic terms to €534 million, despite the effects of the health crisis, including the margin realised with EDF Group entities. Framatome's contribution to the Group's EBITDA amounted to €271 million, up 4.7% in organic terms compared to 2019. Adjusted from the COVID effect, the increase would have been of around 23%.

The growth in EBITDA mainly reflects the good performance of the Fuel business thanks to a better sales product mix. Fuel plants were running all year even during the first lockdown. EBITDA also benefited from the continuation of the plan to reduce operating costs and overheads.

One of the main achievements for Framatome in 2020 was also the signature of an agreement with Rolls-Royce with a view to acquire its Civil Nuclear Instrumentation and Control business, which would allow to strengthen its engineering expertise and global command control capabilities. Order intake amounted to €2.9 billion in 2020.

UNITED KINGDOM

EBITDA in the United Kingdom amounted to €823 million, up by 9.8% in organic terms. Adjusted from the COVID effect, the increase would have reached +33%. The health crisis had an overall negative impact on EBITDA of €182 million, mainly due to a drop in consumption of 12% of industrial and professional customers, and increased collection risks on trade receivables.

EBITDA was penalised by the decline in nuclear output in 2020 but benefited from the increase in nuclear realised prices. As for supply, residential customer margins improved despite a declining customer portfolio and in an environment that remains highly competitive.

Let me highlight two additional elements. First, Pod Point deployed around 35,000 charging points in the UK in 2020. This is clearly a great achievement, and in order for Pod Point to continue to develop its business model, EDF and its minority partner Legal & General are considering all the funding optionsto support Pod Point's strategy and allow it to be in the most favourable position to continue to fuel its growth. Second, EDF Energy took over last month the 360,000 customers from Green Network Energy.

ITALY

In Italy, EBITDA recorded an organic increase of 8.4% to €683 million. The resilience in front of the

COVID epidemic was primarily linked to the strong upstream and downstream integration business in Italy. Adjusted from the COVID effect, the increase would have been of around 18%.

The fall in demand from industrial clients and decrease in services due to the health crisis impacted

EBITDA for Italy by an estimated €60 million. EBITDA for the electricity activities was up, thanks in

particular to a stronger contribution from renewable production. EBITDA for gas activities was also up, benefitting from better optimisation of medium and long-term gas supply contracts.

Finally, supply activities benefitted from improved margins on electricity sales to residential and industrial customers and growth in services to residential customers.

The completed sale of most of the E&P activities, excluding Algeria and Norway, to Energean and the forthcoming disposal of Edison's Norwegian E&P activities to Sval Energi enable a refocusing of the Group's Italian strategic activities, also consistently with the priorities of Italy's National Climate and

Energy Plan.

OTHER INTERNATIONAL

As regards the Other International segment, EBITDA was up 20.9% organically to €380 million.

Adjusted from the COVID effect, the increase would have been of around 29%. In Belgium, EBITDA was up by 18.9% in organic terms to €247 million. The health crisis had an unfavourable impact on

EBITDA of circa €26 million due to a decline in consumption and service activities and to an increased collection risks of trade receivables.

EBITDA growth was driven by better output of the nuclear fleet back to a normal level, and more favourable pricing than in 2019. Overall, 2020 benefitted from a strong performance in wind farm generation, +26%, thanks to favourable wind conditions and new installed capacity. Net installed wind capacity increased to 548MW, up 13.5% vs end-2019.

Let me also mention that a few weeks ago Luminus signed an agreement with E.ON to purchase its Belgian subsidiary, Essent Belgium, supplying electricity and gas to more than 330,000 customers. This would comfort the number two position of Luminus in Belgium.

In Brazil, EBITDA was up 16.7% in organic terms to €115 million, mainly due to the revaluation in 2019 and 2020 of the Power Purchase Agreement (PPA) for the EDF Norte Fluminense power plant.

OTHER ACTIVITIES

The EBITDA of Other activities declined by 44.8% organically to €261 million.

The gas business was affected by provisions for onerous contracts in LNG activities recorded mainly because of the downward revision of medium- and long-term spreads between the USA and Europe.

EDF Trading's EBITDA amounted to €633 million, down 11.2% in organic terms compared to an exceptional year in 2019. Trading activities remained strong, generating a solid 2020 result in a context of high volatility.

EBIT

Let's now move to the other items of the P&L. EBIT for the year was down by €2.9 billion, to €3.9 billion. This development can first be explained by the decrease in EBITDA of €0.5 billion. Volatility on commodities had a year-on-year unfavourable impact of €0.8 billion. This element recorded the net changes in fair value on energy and commodity derivatives, excluding trading activities, on contracts which do not qualify as hedge accounting, primarily in relation to Edison's gas positions.

The net depreciation and amortisation raised by €0.8 billion. This can be explained by a volume effect related to newly commissioned equipment in the French nuclear fleet, for €0.4 billion, a volume effect in other segments of the Group, mainly in regulated activities and in the UK nuclear fleet, and, to a lesser degree, by the accelerated depreciation of the French coal-fired fleet from 1 June 2019, for €0.1 billion.

Impairments increased by €0.4 billion, with an impact for the existing nuclear fleet in the UK for €0.6 billion. Other operating income and expenses increased by €0.3 billion, mainly for the preparation of repairs of secondary circuit welds in Flamanville 3 for €0.4 billion.

FINANCIAL RESULT

The financial result for 2020 resulted in a financial expense of €2.6 billion, a deterioration of €2.2

billion from 2019. This change can be explained mainly by first, a decrease in the cost of gross financial debt of €0.2 billion due to debt repayments and issuances at more favourable rates.

Second, a negative change of €0.6 billion in the discount effect, mainly due to a decrease in the discount rate used for nuclear provisions in France of 20 basis points in real terms in 2020 which compares to a 10 bps decrease in 2019. The impact is €0.6 billion. At end of 2020 the real discount rate was 2.1%.

A €1.8 billion decrease in other financial income and expenses, of which €1.3 billion due to the fair value adjustment of financial assets held in the dedicated assets portfolio. The financial assets portfolio performed well in 2020, despite the health crisis, with a strong recovery in the second half of the year. However, the performance was not as strong as in 2019. The overall performance of our portfolio of dedicated assets was of +5.9% in 2020 versus +13.5% in 2019.

NET INCOME - GROUPE SHARE

Net Income - Group Share came to €0.65 billion euros vs. €5.2 billion in 2019. As detailed previously, the EBIT and financial result represented a combined decrease of €5.1 billion compared to 2019. Tax charge followed the evolution of EBITDA and financial result, and included a provision following a tax reassessment on nuclear provisions. Adjusted from non-recurring items, the effective tax rate was similar in 2020 vs 2019.

The Group's share in net income of associates was a positive €0.4 billion in 2020, compared to €0.8 billion in 2019. This negative €0.4 billion variation can be explained mainly by the decrease in CENG's net income, which was driven by a positive fair value adjustment of financial assets in 2019. The

Group's net income excluding non-recurring items stood at €2 billion in 2020.

NON-RECURRING ITEMS NET OF TAX

Just a quick word, as usual, on the post-tax effects of non-recurring items. In 2020, they stood at a negative €1.3 billion vs a positive €1.3 billion in 2019. Impairment losses have been recorded on some specific assets for a total amount of €0.8 billion vs €0.9 billion in 2019. The main element here was a €0.4 billion depreciation of the existing nuclear fleet in the United Kingdom.

Net changes in fair value of financial instruments are accounted for in non-recurring income and represented €0.9 billion post tax in 2020 vs €1.8 billion in 2019. Other elements, including commodities volatility, represented €1.3 billion euros post tax in 2020 vs +€0.4 billion in 2019.

CHANGE IN CASH FLOW

Looking now at the cash flow. Operating cash flow, excluding Linky and HPC, stood at €3.2 billion, down €0.9 billion from 2019. Group cash-flow established at -€2.7 billion. EBITDA adjusted for non- cash items amounted to €16.5 billion, up by €1.7 billion from 2019, mainly due to settlements of underlying positions on EDF Trading's financial instruments.

Working capital deteriorated by €2.2 billion in 2020 compared to 2019. The difference is essentially explained by the increase in stocks of capacity certificates for €0.5 billion, and the margin calls situation and external receivables and debt in the optimisation and trading activity.

The net investments excluding disposals, HPC and Linky, increased slightly to €11.6 billion. Disposals, with cash impact in 2020, meaning closed transactions and not only signed ones, generated €0.2 billion of proceeds in 2020 vs €0.5 billion in 2019. The cash flow excluding Linky and HPC amounted to circa -€0.1 billion, close to zero despite the COVID crisis.

As you know, we are currently in a very particular period, as EDF is financing the construction of very large assets on its balance sheet for a long period without getting cash against it. If I analyse a bit further 2020 cash flow, I notice that we have invested €0.7 billion in Linky, €1.9 billion for HPC and almost €0.5 billion for Flamanville 3, on top of €0.4 billion costs registered in P&L. Excluding these long term yet non-cash generating projects, 2020 Group cash flow is clearly positive.

On top of that, studies and engineering costs concerning Sizewell C and EPR 2 represented almost €0.3

billion. For these two projects the Group intends to get prepayments post FID during the construction period and does not intend to bear Sizewell C on its balance sheet. You can refer to the appendices for more details.

NET TOTAL INVESTMENTS INCLUDING ACQUISITIONS, EXCLUDING DISPOSAL PLAN

As just detailed, the total of net investments amounts to €14.1 billion, an increase by €0.1 billion compared to 2019, with two main trends: the increase of more than €1 billion in renewables net investments, linked to the proceeds in 2019 of the partial disposal of NnG in the UK, and a reduction of investments at Flamanville 3 in relation to the new scheduling, and knowing that abnormal costs linked with the weldings were accounted for in the P&L. Please, let me remind you that 94% of the

Group's investments contribute to climate change mitigation actions.

NET DEBT

Let's now review the evolution of the net financial debt. This slide summarises the evolution of the cash-flow of minus €2.7 billion that we have just reviewed. It does also include the positive impact ofthe hybrid issuance for €2.1 billion. As a consequence, the net financial debt established at €42.3

billion at the end of 2020.

To put in a nutshell my key messages. We have precisely analysed the impact of the COVID and given to you detailed analyses since June 2020. We have immediately reacted by setting and implementing an ambitious action plan based on cost cutting and disposal of non-strategic assets in order to maintain our ability to finance our CAP 2030 strategy. And third point, excluding COVID impact we have reached the goals previously set.

To help you understand always better our company and value drivers, we have significantly enriched the appendices we provide you with. You'll find there in particular this year detailed strategic and ESG goals, updated and detailed slides about our Renewables business, and new and detailed slides about Enedis. This ends my presentation. And let me now hand over to Jean-Bernard Lévy.

Jean-Bernard Lévy

Chairman and Chief Executive Officer

Okay. Just a few words for year 2021. We have set an EBITDA target higher than €17 billion and the net financial debt to EBITDA ratio of less than 3x. We also confirm our medium term objectives as already announced in July. We are aiming to reduce our operating expenses by €500 million, excluding inflation, by the end of 2022, when compared to the end of 2019.

And two, we will dispose assets for approximately €3 billion over the period of 2020 to 2022. By the end of 2022, we are aiming for a net financial debt to EBIDTA ratio of around 3x. Target dividend payout will be in the range of 45% to 50%. The scrip dividend option will be available to all shareholders in 2021. The French government has committed to maintain this option.

The achievement of these targets will obviously depend on the evolution of the sanitary restrictions.

2020 was a challenging year due to the upheaval caused by the pandemic. 2021 looks like it will be just as intense. Most importantly, I hope it will create a fresh impetus for EDF.

In spite of the current uncertainties, my ambitions for EDF remain unchanged. We have everything it takes to play a leading role in the energy transition, to be France's and Europe's champion of a low carbon economy and the vector of sustainable growth for our country and for Europe.

We have a clear and robust strategy which is well aligned with the main challenges of our society. We have a skilled and committed workforce. We have the undeniable ability to change and innovate.

However, this ambition will not become reality without massive investment in new generation facilities in networks, in new customer services, in technology and in innovation. We need structural reforms that will provide us with the means to fulfil our ambitions.

First of all, I think that the reform of the ARENH system. The ARENH is a mechanism that in its present form makes EDF's strategic and financial equation inextricable and which puts EDF on a downward slope. I will say it again: in its present form the ARENH mechanism is an unjustifiable poison which inevitably puts EDF in greater debt.

We are asking for a stable and fair regulation that will adequately remunerate us for the nuclear power we generate while guaranteeing competitive electricity prices for French consumers to enjoy. We have to accept that if, and if only the ARENH reform meets our requirements, we will have to reorganise our activities while ensuring that the integrated EDF Group has the means to develop in all sectors of the energy transition.

Simultaneously, we need to protect the nation's hydro assets and to avoid reducing their value in terms of energy, farming, environment, irrigation, and tourism. A solution is emerging which could help to achieve this goal.

I'm convinced that we can resolve the EDF equation by keeping an integrated Group. For several decades, this integrated characteristic has been one of the keys to the economic, environmental, human, and industrial success of France's energy model. It needs to be sustained. The French State shares these views and continues to support EDF, like it has always done. I hope that a solution will emerge very soon because time is passing. For 2021 and '22, we have what we need to stay the course while waiting for the indispensable reform to be implemented.

Thank you for your attention and now Xavier and I will take questions that you may have over our Internet networks. Thank you very much.

QUESTIONS AND ANSWERS

Vincent Ayral (JP Morgan): Hi, good morning and thank you for the presentation. Indeed, recognising the clear effort to provide clarity on the COVID impacts through the year. So, thank you for that.

A couple of questions at first. Obviously we have to go through Hercule and a final point which was made. Indeed, time is running. From a practical point of view, what would be technically a type of ultimate deadline to get an agreement if Hercule were to be implemented before the elections? I think that's a key question for us to understand.

There are technicalities to get the bill from Parliament [?] and everything. It's just for us to be able to understand basically how much time is left for an agreement to be reached before complementation before the election. Similarly, on Hercule, if you could give a bit of colour on the quasi-régie type of status.

And the second question is regarding the EBITDA guidance. If it's possible to provide us with a bit of a bridge to get to '21 guidance. I notice that the French nuclear target was not upgraded. The 2020 target was at a very, very conservative level and went up materially through the year. So, could we expect a bit of a try [?] there.

And the second thing there is below ETBIDA, obviously there's been a change in law on the nuclear discount ceiling rates. And what are you expecting in terms of - to apply basically in terms of a nuclear discount rate in 2021, and for the years after? In effect, you have the ability here to potentially increase your earnings by €0.25, 40% to 50%, and to avoid segregating €5 billion of cash in the dedicated assets. So, this matters, especially if Hercule doesn't happen. Thank you.

Jean-Bernard Lévy (EDF): Thank you very much. I will take the first series of questions and Xavier will take the second series of questions. Regarding your first question. Obviously the negotiations are in the hands of the European Commission and the hands of the French government and we are not part of the negotiations. It's a matter of a regulation and so no company should be part of these negotiations.

Quite clearly we are supporting, we are assisting, we are giving information to the French government and trying to understand where this could lead to. It is obvious that there is a political agenda in France and that many people will object to the ability of reform. If a reform is agreed - if an acceptable reform is agreed, what is the likelihood of such a reform to be implemented before elections in 2022? And I am not the one in charge of the agenda on the French parliament.

This is also obviously in the hands of both the government and the parliament, and to me what is important is that, as I have said, and I'm happy to repeat, we have secured 2021 and 2022 in such a way that we can implement our CAP 2030 strategy in '21 and in '22 in the current circumstances.

Of course, except if there is another major sanitary crisis. But let's take that away. Let's put it on the side. In the current sanitary situation, we have '21 and '22 in front of us in order to follow up with our CAP 2030 strategy. And indeed, we have slightly enhanced some of the 2030 or 2023 targets that we had said earlier on, and we did discuss that in the presentation.

So, that's where we are today. We have secured '21 and '22 and we are hoping for a green light towards an acceptable solution from the negotiators as soon as possible.

On the quasi-régie, which I don't know how to say in English, there is a 2016 directive from the EU that under certain conditions allow for business and activity to be managed as if - quasi is a bit like 'as if'; quasi in English - as if it was a State business, but it is not a State business, but it has to follow certain guidelines.

It has to follow certain guidelines that show that it is almost like a State business. It is almost like a business directly managed by the State. So, there have been discussions on putting our hydro system, the EDF part of the hydro French system under the quasi-régie agreement, and we believe that from these discussions that it looks doable that under certain conditions and maybe some of them still have to be detailed that the EDF hydro system - what we call EDF Hydro - could maybe be managed within the integrated Group EDF as a quasi-régie and that would be an exception to the competition on hydro concessions that is supposed to be implemented due to directive that dates back 20 years ago.

So, what we would implement is an application of a recent directive about five years ago that would enable to resolve this long lasting situation where the EU directive would directly create an immense loss of value for the community of users, for consumers, for companies. An immense loss of value both in France and in the EU due to the very negative effects of the dismantling of several sets of dams that goes through valleys and which can only be optimised with a single operator.

So, this is something we are supporting. And it looks like the discussions between the French State and Brussels are coming to some kind of an agreement in principle, although we are not aware that this part of discussion is closed. We are just aware that this is making progress.

Xavier, for the EBITDA guidance in '21, and the discount rates on our liabilities.

Xavier Girre (EDF): Yeah, thank you, Jean-Bernard. So, as regards the EBITDA guidance, maybe some major bricks to take into consideration. First, the French nuclear output that we expect as we've said between 330 and 360 TWh. So, let's say an additional 10 TWh, roughly speaking, if you consider the median of this range. So, this could bring an additional €0.5 billion.

Then another significant brick linked to the regulated business with the indexations on the tariffs and the roll out of Linky for maybe an additional brick around €0.6 billion.

Third block obviously is linked to the more back to normal situation regarding the downstream and service businesses which could be estimated at circa €0.4 billion.

And finally, the special tax relief allowed by the French government stimulus package, which is estimated to bring an additional €0.3 billion EBITDA.

On the downside, power prices, both in France and in the UK and combined with possibly lower capacity price in France, would have an unfavourable impact of circa €0.8 billion in '21 compared to '20.

So, as a sum of all these bricks, you find an additional €1 billion EBITDA consistent with our guidance, higher than €17 billion. And of course, as highlighted in the communication, of course this is subject to additional reinforced sanitary restriction impacts.

As regards the discount rate, I will not give you our prospect, but I could highlight the fact that we have adjusted the methodology of calculation of this discount rate taking into consideration the new regulation of the ceiling of the discount rate. So, from now on from 2020 on, this discount rate is calculated on the basis of the ultimate forward rate; the curve of the ultimate forward rate.

This gave 2.1% net in 2020 and we show here also that the regulatory ceiling reached 2.7%. In fact, 2.66% in 2020. So, this is how now the discount rate will be calculated for the years to come.

Emmanuel Turpin (Société Générale): Good morning, everybody. I will start with a first question on full year '21. Thank you very much, Xavier, for the blocks on EBITDA. I guess I'd love a little bit more detail on the negative block of power prices. You mentioned France and UK and you mentioned assumptions and capacity payments. So, I guess part of this 0.8 is very visible on your forward hedges on parties assumptions based on some other market development. I'd love to have some views, maybe between France and UK on this 0.8.

Still on guidance. You do not provide guidance for ordinary net earnings and we've got a consensus expectation at around €2.3 billion, which is on the basis of what you reported for net earnings 2020 at almost €2 billion on your guidance for EBITDA. It looks easily achievable. Do you feel comfortable with that consensus expectation?

And then turning to, of course, the pillars of the investment case, which is Hercule and regulation. I totally understand that as management of EDF you cannot provide probabilities or even views about the conclusion of the discussions, but on a technical point, for these hydro concessions, you believe they are achievable to be putting a quasi-régie. Is there anything in the EU directives that would change the pricing regime for this hydro business, as we read some press articles saying that there may be some regulated price for hydro under a quasi-régie. Could they still function under a merchant framework and indeed is this what you have in mind?

And Secondly, we had numerous speeches from government representatives in front of parliament recently insisting that a reform was absolutely necessary. So, echoing your view. At the same time this they said that a positive conclusion was not insured and if there was no positive conclusion there will need to be a Plan B. Today has the government asked the management of EDF or the Board of EDF to start working on a Plan B or are you still just full steam ahead on Plan A? Thank you very much.

Xavier Girre (EDF): Thank you, Emmanuel. So, as regards the price, some elements. First as regards France, and you'll see that also in the appendices, the price that has been identified for 2020 is €46 per MWh average hedged price and €45 per MWh for '21.

And as regards the UK, we see also a downward trend as regards our hedged price in '21 compared to 2020. Third point in this price trend between '20 and '21 is the capacity, and in particular they were two auctions in 2020, which is the first time, and you will not have this effect for '21. And as regards the price of the capacity we see there are six remaining auctions in 21' for '22 that will take place in '21.

As regards the consensus, you have certainly noticed that we are already in 2020 very well in line with the consensus, and as regards '21 consensus; yes, I feel comfortable with this consensus.

Jean-Bernard Lévy (EDF): On the second part of your question, Emmanuel, I would say question 2.1. Yes, indeed we are working on the assumption and once it is in the quasi-régie, the output generation coming from our hydro dam will remain in the world of merchant pricing and will not enter the world of regulated pricing.

And secondly, we are working hard in order to try and support the negotiations on what one could call 'Plan A', and this is on the top of our mind right now. We are working very hard on what is quite acomplex set of negotiations, and I think the government is supporting that we put our best efforts in trying to support these tough negotiations and get something done as soon as possible. Thank you.

Olivier Van Doosselaere (Exane): Yes. Good morning everyone and thank you also from my side for taking this question. I have three. First one would actually be coming back to Hercule again and the discussions with the European Commission. I wonder if you could help us understand a little bit where you actually see the grey zone in terms of getting a possible agreement on the structure because from the outside it looks like, as you mentioned, you would like an integrated EDF structure, and Mr. Lévy.

I think you mentioned in the Senate that you would like EDF Green to sit underneath EDF Blue, whilst it actually looks like European Commission would like a separation between the two.

So, it could seem uncontainable if you want. Unless there is a grey zone where actually there is the way to get some form of integrated structure while there would be some form also of separation between the two. I wonder if you could help us understand a bit where the grey zone might be.

And then second question just come the working capital which was quite negative in 2020. I was wondering if you would expect some of that to reverse. And then the third question is on what is actually happening in Edison. So, we are indeed seeing quite a move in terms of the structure of the Edison portfolio. You have actually put some of your own renewables assets in Italy back into Edison.

I was wondering, could that be the preparation of something that might change in terms of your approach to how Edison fits in the Group? Or should we not look too much into what's happening over there? Thank you.

Jean-Bernard Lévy (EDF): Thank you, Olivier. I will take your first and third question and I will let working capital matters in the hands of Xavier, who's got all the expertise and more.

On the first point, as I have said, we are trying to find an agreement and from what I know of the negotiations between the European Union and the French government, we believe that, as we said, for instance, on the quasi-régie, some progress has been made. However, we believe from what we have today that there are some very important pending issues that if not properly resolved would mean that there is no acceptable solution.

So, these are matters of great importance in the ability to reach an agreement that I will now very quickly list. The first one is the price of the generation that we would sell. As you know it was thought at one point in time that maybe there would be a corridor, there would be a floor, there would be a cap, and the price would go between the floor and the cap according to market rules.

And indeed, the French government organised a consultation on this principle back in 2020. It looks like the price will now be a set price, a fixed price, a single price, that will be indexed - sort of CPI-based indexation. But right now, the matter regarding the price as far as EDF is aware is spending and this of course is of the utmost importance.

Also, of utmost important is the legal robustness of the mechanism that would be implemented. I don't need to expand on this. And also of utmost important is how we can continue to manage EDF as an integrated Group, and I think there is there also a very clear understanding that in no way with the potential reform be any first step into splitting EDF or privatising any key asset or anything that would mean that EDF - which has a very solid and well balanced entity managing both generation, networks, decentralised energy, and assets, and of course, selling to a variety of clients - that there is no way that this would be taken apart.

So, I think when you look at this you understand that there are still some key things to be discussed before we look at what's been achieved and say, 'Okay, do we go for it? Is it acceptable?' This is not the time right now for us to make such a judgement; to me personally to make such a judgement because the discussions are still open on many of these matters.

Your third question is regarding Edison. I'm quite happy to say that over the years I think we are transforming Edison into a company which is more and more core to EDF's activities. We have been selling non-essential assets. To give a few examples, we were having something which is not our business which is oil and gas exploration and operations of oil and gas assets. And this is not part of what EDF wants to do. And by the way, even more so with our raison d'être. So, we've been selling these assets and we have also sold some non-essential assets like for instance some gas distribution networks from gas pipes that were legacy asset from the old Edison a long time ago. And on the other hand, we've been acquisitive in Edison.

We have been acquisitive in terms of renewables generation. We've been acquisitive in terms of efficiency services for various categories of clients. We are building more decarbonised energy assets. We have been acquiring a portfolio of clients like the former gas natural clients that we acquired maybe two or three years ago.

So, Edison today looks much more like EDF in France or in the UK in terms of its portfolio of assets, and we believe that Edison is absolutely core to the growth of our CAP 2030 strategy and I'm quite happy that the Edison performance, which has been also released in detail this morning, is really excellent and I want to comment my Italian colleagues from reaching such good numbers.

Xavier Girre (EDF): As regards the working capital, there are three main elements to analyse the delta in the working capital requirement in 2020. First, trading activity with margin calls for €0.6 billion. Second, increasing the stock of capacity certificates for €0.5 billion and energy saving certificate for €0.2 billion. So as a whole, €0.7 billion.

And third, €0.5 billion linked to the CSPE compensation for public energy service charges. As the generation of our renewables has increased more than anticipated in 2020, and spot prices have decreased considerably during the sanitary crisis. And increasing the amount, it will be temporarily supported by EDF.

Peter Bisztyga (Bank of America): Good morning. So, I was wondering first of all if you could clarify whether, and indeed how, you would expect to deliver the investment required for your more ambitious 2030 targets, particularly the 60 GW renewables targets, if the talks over reform of a nuclear tariff are not successful.

And then my second question was just to clarify something about your EBITDA guidance. So, would you still expect to achieve a €17 billion EBITDA if nuclear output ended up at the bottom end of your 330 to 360 TWh range?

And then a final question just on bad debts. I was just wondering if you're seeing any worsening in the retail bad debt situation in the UK over the last two or three months? Thank you.

Jean-Bernard Lévy (EDF): I'll take the first question and maybe Xavier will take the third question, and we will both sing the same song regarding the second question, which is that yes, indeed we are confirming €17 billion as a minimum in our EBITDA in 2021 in case we are on the low part of the 330 to 360 TWh range for nuclear generation in 2021.

Regarding your first question. It's, I think, quite clear. As we are, we believe we can reach 60 GW. If we manage to get our new organisation with a split between the P&L that is dedicated to nuclear and thermal and another P&L dedicated to decentralised low carbon electricity. We believe that this decentralised low carbon electricity part of the integrated EDF Group will have more ability to raise money, for instance from the stock market, or to have its own P&L in order to accelerate in generation of renewables.

And we believe that there are so many opportunities all around the world, including in France, that we could quite easily continue to be acquiring more capacity, winning competitive situations, and not selling as many of what we build as we have sold in the previous years.

And that would mean that in that part of the future EDF Group, of the integrated Group, what is today a 60 GW target would become 100 GW target. We would grow it by close to 70% due to the change in the speed of renewables implementation that would be allowed by the reform.

Xavier Girre (EDF): As regards the bad debt, of course, as a consequence of the COVID crisis, the risk of unpaid bills increased in 2020 as we already communicated in H1. We've set specific operational plans to monitor the level of this bad debt. It's under control. It's included in our 2020 numbers. The level of bad debt increased by around €160 million in 2020 at Group level compared to 2019 with a COVID impact which is in the range of €80 million for France,€67 million for the UK, €9 million, for Italy and €13 million for Luminus.

Sam Arie (UBS): Hi, thank you. Good morning, everybody. It's been a really helpful presentation this morning and all your comments in particular on the process with Europe are much appreciated. I think I just wanted two sort of broad follow-ups to that whole discussion. And the first is if an agreement on the new regulation comes and the second is if it doesn't.

So firstly, if we do get a final agreement and you do the restructuring and maybe the quasi-régie for the hydro as you discussed. Does this basically secure the future of EDF in your view or are the other steps still necessary? For example, you just talked about maybe accessing the stock market for the EDF Green subsidiary. I'm interested if that appears to you as necessary or whether that would be a sort of optional additional step.

And relatedly, the press talked in the past about delisting the EDF parent Group and squeezing out the minorities. I just wonder if that is in anyway necessary for the future of EDF. So, that's my first question if you get the agreement.

And secondly if for any reason the agreement doesn't come, doesn't get over the line before the election, and perhaps the outcome is delayed a year or two, then can I just ask what your thoughts are about the fallback? You said you're okay for 2021 and 2022, but what would be the approach beyond that? Would you have to scale back the CapEx plan somehow and how easily can you do that?

Thank you.

Jean-Bernard Lévy (EDF): Thank you very much. You're getting me into a lot of scenarios. What I can say is that we're working on the scenario which has been described at length whereby the future EDF has the quasi-régie, which means that some of its activities which are today partly owned by non-State investors, non-State shareholders become fully owned by the State and that would include both the nuclear and thermal businesses and the quasi-régie by itself.

On the other hand, the decentralised low carbon electricity assets would be listed with the mother company keeping, and probably through some very strong legal legislative restrictions, keeping a very strong majority position in this low carbon decentralised electricity asset which we call 'Vert'. This is what we are working on. We are not today working on any situation where all the current EDF activities - which you guys are representing - the non-French State shareholding of all of them would move into French State full ownership. We're not working on that.

On the second part of the of your question, which is the 23, 24 and so on outlook. One can have many various scenarios regarding what happens if in a few weeks or months we consider that we have to postpone what has been discussed. Nobody is, I think, able to forecast what will be the outcome of the political elections in France in 2022. So, we have to be prepared for an energy policy, an EDF strategy policy from the French shareholder, to be reviewed at that point in time. And we of course will be working on such scenarios as time comes.

Right now, we are happy to say that with the current situation, with the plans that we implemented very soon after the beginning of the pandemic, and which we released in July last year, we are happy to say that we are sort of secured or safe to the end of 2022 and that will give us time to prepare for what we will be able to design together with the French government in due time.

Arthur Sitbon (Morgan Stanley): Thank you for taking my question. Arthur Sitbon here. I was wondering if you could share your thoughts on the recent developments of competition in the renewables industry. We've seen an increasing competition, especially in offshore wind in recent offshore wind auctions. So, if you have any thoughts on that, that would be helpful. Thank you very much.

Jean-Bernard Lévy (EDF): That's a good question. Indeed, we have seen recently a very competitive situation for quite an extensive set of opportunities which was presented by the Crown Estate in the United Kingdom for some offshore wind property or potential property that has been awarded and EDF has not been successful.

We have looked at it with our usual very strict financial constraints. We have bid in order to be able to generate value. We have value creation targets which we are not playing with. We have a very strong discipline in that matter. And very often we are able to reconcile our value creation objectives with a tender, competitive situation, and as such we have recently been awarded some new offshore developments in several countries.

And this offshore business, which is growing very fast, we are one of the major players. Now, the way that the tender was organised by the Crown Estate was very complex and was very long term. If you win, you're allowed to prepare for a bid which would be placed maybe by 2026/2027. Maybe. And you have permitting questions. You have pricing uncertainties. You're not even sure you will get anything but in the meantime you have to pay a lot of money to the owner which is the Crown Estate for you to be allowed at one point in time to bid into a tender in several years.

So, a lot of complexity. And to us, not a success, but we are very proud that we know that we can walk away even if the fruit ahead of you - even if it is ten years ahead of you - the fruit looks very attractive.

But if the road to get there is expensive and risky, we are proud that we have the ability to walk away and this is what we did.

That's it, I guess, my friends, for this conference, for this Investor meeting. Thank you, all of you, for attending, for your very precise questions, for following EDF so closely. I wish all of you a good day and more importantly, a good health. Thank you.