E.D.F. ANNUAL RESULTS 2020
DISCLAIMER
This presentation does not constitute an offer to sell securities in the United States or any other jurisdiction.
No reliance should be placed on the accuracy, completeness or correctness of the information or opinions contained in this presentation, and none of EDF representatives shall bear any liability for any loss arising from any use of this presentation or its contents.
The present document may contain forward-looking statements and targets concerning the Group's strategy, financial position or results. EDF considers that these forward-looking statements and targets are based on reasonable assumptions as of the present document publication, which can be however inaccurate and are subject to numerous risks and uncertainties. There is no assurance that expected events will occur and that 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, 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, and changes in the economy ; and this year, more particularly the effects of the health crisis and the pace of business recovery in the various countries where the Group is present.
Detailed information regarding these uncertainties and potential risks are available in the Universal Registration Document (URD) of EDF filed with the Autorité des marchés financiers on 13 March 2020, which is available on the AMF's website atwww.amf-france.org and on EDF's website atwww.edf.fr, as well as in the 2020 half-year financial report available on EDF's website.
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.
2
ANNUAL RESULTS 2020
Jean-Bernard Lévy
Chairman and Chief Executive Officer
STRONG MOBILISATION OF THE GROUP DURING THE HEALTH CRISIS
EDF MOBILISED TO ENSURE CONTINUITY OF SERVICE
Robust arrangements made to ensure continuity of service
Digital response: c.70,000 employees connected at the same time from home
Strong health procedures put in place to protect employees and contractors
EDF SOLIDARITY
Acceleration of payments to micro, small and medium-size suppliers in France during the first period of health emergency
Payment arrangements granted to its small business customers in France in accordance with government measures
4
2020 KEY FIGURES
In €m
2019 restated (1)
2020
∆%
∆% Org.(2)
Sales
71,347
69,031
-3.2
-3.4
EBITDA
16,723
16,174
-3.3
-2.7
Net income excluding non-recurring items
3,871
1,969
-49.1
Net income - Group share 5,155 | 650 -87.4 |
31/12/2019
31/12/2020
Net financial debt (in €bn)
41.1
42.3
Net financial debt/EBITDA ratio (1)
2.46x
2.61x
(1) The 2019 published data (except NFD) has been restated for the impact related to the change in scope from the E&P disposal.
(2) Organic change at comparable scope, standards and exchange rates.
(3) Payout ratio based on net income excluding non-recurring items, adjusted for the remuneration of hybrid bonds accounted for in equity.
PROPOSED DIVIDEND
€0.21 per share
PAYOUT RATIO OF 45% (3)The French State has committed to scrip dividend
5
2030 STRATEGIC TARGETS UPGRADE
To build a net zero energy future with electricity and innovative solutions and services, to help save the planet and drive wellbeing and economic development
A global leader in the generation of
CO2-neutral electricity
50% CO2 eq DIRECT EMISSIONS vs 2017
60GW NET,
>x2 NEW RENEWABLES CAPACITIES (INCL.HYDRO) VS. 2015
INITIATING NEW
EPRs & 1 SMR
Scope: (1) Customers, Services & Territories sector's activities. EDF estimate, including CO2 savings linked mainly to heating and cooling networks, the development of the electric vehicle and energy saving certificates; (2) EDF estimate: France, UK , Italy and Belgium (Residential); (3) Group; (4) Excluding priority countries in Europe (France, Italy, UK and Belgium)
6
4 goals in line with the Raison d'Être
275 (2) (European average in 2019)
CO2 intensity (g/kWh)
2019
2020
2030
2050
(1) Corporate Social Responsibility commitments
Reflected in 16 assessed CSR (1)commitments
(2) Average 2019 carbon intensity of power producers in Europe according to EEA
(3) vs. 2019
WELL BELOW 2°
7
Percentage of women %
GENDER EQUALITY
GROWING WOMEN PRESENCE
in management committees of Group's entities
In 2020, EDF exceeded its 2023 target 3 years ahead of plan (1)
20
28.7
(2)
CAC 40
EDF 2020
EDF 2023
(1)Initial target fixed by EDF for 2023 was 28%
(2) Average in 2019 for CAC 40 companies according to a study by
France Invest and BCG on gender diversity published in March 2020
INCLUSION
APPRENTICESHIP
France's leading recruiter of apprentices (6,800 expected in 2021)
1 apprentice out of 100 works for EDFGroup's ambition:
1 apprentice out of 3 from Priority Districts and Revitalised Rural Areas
NB : EDF measures its ESG ('Environmental, Social and Governance') performance with 18 other quantitative KPIs, the results of which are verified by independent third-party bodies and published in the Statement on Non-Financial Performance.
8
9
(1)
HNIIGVHEALUEVÉELLEVOÉF DECMOISMEMSISESNIOSNEIRNVGICE
Capacités mises en service (1)
Capacity(cGoWmmbriusstsio) ned (1)
(GW gross)
+2.4
2019
2020
Wind and solar capacities.
1
2 FORTSEH ARUPGMINECNRTEAATSIOENINDES CAPACICTAÉPSAECNITCYOUNNSDTERRUCTION Capacités en construction en fin d'année (1) CONSTRUCTION Capacity under c(oGnWstrburcuttiso)n at year-end (1) (GW gross) 8.0 5.1 End-2019 End-2020 |
(3) Start of land identification and preliminary studies
(2) Pipeline excluding capacity under construction. All the projects in prospection phase included in the pipeline, starting 2020
(4) Sufficient land securisation and start of technical studies
UN VAASTLEARPGOERTPEIPFELUIINLELE DE
PROJETS
Portefeuille de projets (1)(2)
Pipeline of proje(cGtsWunbdruetrsd)evelopment (1)(2)
(GW gross)
End-2020
Prospection phase (3)Under development (4)Secured (5)
3
(5) Securing a power purchase agreement (following a call for tenders, auction, OTC negotiation)
OFFSHORE WIND ACHIEVEMENTS
Construction launch of a 500MW wind farm in France at Fécamp, commissioning planned in 2023
First projects in China 302MW in operation and 200MW under construction
Other construction in progress ~1GW
- Saint-Nazaire, 480MW, France, commissioning planned in 2022
-Neart-Na-Gaoithe, 450MW, Scotland, commissioning planned for 2023
Development of a 1GW project in Ireland
STRENGTHENING IN ONSHORE WIND
Construction launch of a 400MW wind farm in Saudi Arabia (commissioning planned in 2022)
Commissioning of 1.4GW (o/w 1GW in the USA)
ACCELERATION IN SOLAR
Major successes
2GW in the United Arab Emirates, the world's largest solar project to date
1.3GW in India ~200MW in France
Commissioning of ~1GW
400MW in the United Arab Emirates, 500MW in the USA
Acquisition of a 4.5GW pipeline of projects in the USA
SOLAR PLAN IN FRANCE
~2.5GW of ground-based projects in development at end-2020 ~0.5GW of secured projects at end-2020 ~0.3GW under construction at end-2020
Construction launch for the first floating photovoltaic power plant CRE tender # 4.8: market share of ~30% reached
DEVELOPMENT IN HYDRO POWER
MODERNISATION OF ROMANCHE-GAVET PLANT IN FRANCE
Commissioning of the new power plant (97 MW) and power output increased by 40%
INTERNATIONAL HYDRO POWER
PROJECTS AND POWER PLANT CONSTRUCTIONS
Nachtigal construction (420MW) in Cameroon, nearly 37% of the civil engineering work carried out, consortium including EDF (commissioning planned in 2024)
Mpatamanga project (350MW) in Malawi: prequalification of the consortium including EDF, as exclusive developer
ENGINEERING ASSISTANCE FOR PSHP (1) PROJECTS
Hatta (250MW) in United Arab Emirates: construction kicked-off, supervised by EDF
(1) Pumped-storage hydropower plant.
(2) Storage for network services
(3) Storage for generation optimisation
IMPLEMENTATION OF THE STORAGE PLAN
CONSTRUCTION OF 100MW IN THE UNITED KINGDOM
First two projects (2) of Pivot Power
SIGNATURE OF A PPA FOR A 180MW STORAGE SYSTEM PROJECT IN THE USA
Chuckwalla: Storage system (3) coupled with a 200MW solar power plant, to deliver 180MW over four hours
TENDER AWARDED FOR 90MW IN ISRAEL
Storage systems (3) coupled with 230MW solar projects, to deliver 90MW over four hours
COMMISSIONING IN FRANCE
Toucan 2, photovoltaic plant coupled with a smart storage system (3) in French Guiana
~ 1GW PROJECTS BUILT OR SECURED AT END-2020
NUCLEAR: MAJOR CONTRIBUTION TO LOW-CARBON GENERATION
(1) Estimated figures
NUCLEAR OUTPUT
FRANCE
Nuclear output of 335.4TWh in 2020, down -44TWh, of which ~-33TWh (1) due to the Covid-19 health crisis
Rescheduling outages during the health crisis to optimise the generation
Closing of the two Fessenheim reactors
Lifetime extension of the 900MW fleet beyond 40 years: public consultation on the draft ASN opinion finalised in January 2021
UK
Nuclear output of 45.7TWh in 2020, down -5.3TWh (2)
Final shutdown of Hunterston B and Hinkley Point B planned by 2022
FRAMATOME
Signing of an agreement to acquire the Instrumentation & Control activity of Rolls-Royce
EXECUTION OF THE EXCELL PLAN aiming for excellence in the French nuclear industry, finalisation of first deployment phase and beginning of the second phase.
(2) 50% reduction of Sizewell B output, -2.1TWh between May and September at the request of National Grid.
MAJOR PROJECTS (3)
FLAMANVILLE 3
Preparing to upgrade penetration welding works
authorised by ASN (authorisation for these penetration
welding upgrade still pending)
On-site acceptance of initial fuel assemblies following
ASN and French High official for defence and security
(HFDS) authorisations
HINKLEY POINT C
Main operational milestones reached on schedule Review of planning and costs (4)
SIZEWELL C
UK Government decision to enter talks with EDF on the funding of two new EPRs
DEVELOPMENT OF SMR
Development of a Small Modular Reactor (SMR)
NUWARD™ (5)
(3) See Appendices
(4) See press release of 27 January 2021. Unit 1 expected to begin generating electricity in June
2026 rather than end-2025 and project completion costs estimated at £2015 22 to 23bn (versus
£201521.5 to 22.5bn).
(5) Joint development by CEA, EDF, Naval Group and TechnicAtome
CUSTOMERS AND SERVICES: EDF BECOMES A MAJOR PLAYER IN MARKET OFFERINGS IN FRANCE
BROAD AND INNOVATIVE RANGE OF OFFERS
COMMERCIAL PERFORMANCE
Nearly 1 million residential electricity customers with market offers in France, up nearly 80% vs end-2019
Average basket growth for service and gas contracts for 1,000 electricity contracts:
- residential customers +16% vs 2019 - business customers +19% vs 2019
BROADENED OFFERING
Launch of the "Flexible Contract" adapting to the needs of business customers (< 36 kVA)
CUSTOMER TAKEOVER IN THE UK (1)
Green Network Energy: portfolio of 360,000 customers
BELGIUM: SIGNATURE OF A BINDING AGREEMENT FOR A CUSTOMER PORTFOLIO ACQUISITION
Portfolio of nearly 330,000 customers (Essent Belgium) (2)
SERVICE GROWTH & LOW CARBON ACTIVITIES
ELECTRIC MOBILITY
Over 100,000 charging points at end-2020 (10x increase vs 2019) and 5,000 smart charging points
- Acquisition of Pod Point in February 2020 in the UK (around 90,000 charging points as of end 2020)
- Izivia, leader in public electric charging in France with a 26% market share (3)
DALKIA: KEY SUCCESSES
Commercial achievements in the development of renewable heat networks and energy savings in all sectors of activity. Energy performance contract won with the Centre Hospitalier de Pontoise and 90% of renewable energy for the Montargis heating network
IZI BY EDF
Local service platform: broader range in energy renovation and electric mobility
Heat pump commercialisation: 5x increase in heat pump sales between the first and the second semester of the year
HYDROGEN
First contracts awarded to Hynamics (Electrolyser project and green hydrogen production and distribution station)
(1) Customers take-on awarded by Ofgem (the UK regulatory authority) after auction, following Green
Network Energy ceasing to trade
(2) See Luminus Press release on 5 February 2021
(3) Source Elexent Consulting Agency
ENEDIS: LEADER AT THE HEART OF THE ENERGY TRANSITION IN EUROPE
ENEDIS
LINKY PROGRAMME
TARIFFS
Over 30 million smart meters rolled out by January 2021, in line with the 2021 target
40,000 remote operations a day
Decision by the French Regulator on the new TURPE 6 (1) tariff, which will come into force on 1 August 2021 for a four-year period: stability of the remuneration model
GRID CONNECTIONSELECTRIC MOBILITY ACROSS FRANCE
Business resilient despite the COVID-19 crisis
Over 200 projects developed via partnerships (including bus depots, boat charging at wharves, and rapid car charging)
Electrification of the Enedis vehicle fleet
Continued momentum in customer connections: more than 350,000 connections in 2020, of which 30,000 "small producer" connected solar facilities, as well as 900MW of photovoltaic and 700MW of wind power plants
LAUNCH OF THE 2020-2025 HUMAN AND INDUSTRIAL PROJECT
Co-built with 20,000 employees and stakeholders aiming to make Enedis the preferred public service of the French people to serve the ecological transition
(1) Tariff for use of public electricity transmission and distribution networks. French regulator deliberation on 21 January 2021.
ANNUAL RESULTS 2020
Xavier Girre
Group Senior Executive VP- Finance
2020 KEY FIGURES
In €m
2019 restated (1)
2020
∆%
∆% Org.(2)
Sales
71,347
69,031
-3.2
-3.4
EBITDA
16,723
16,174
-3.3
-2.7
Net income excluding non-recurring items
3,871
1,969
-49.1
Net income - Group share 5,155 | 650 -87.4 |
31/12/2019
31/12/2020
Net debt (in €bn)
41.1
42.3
Net debt/EBITDA ratio (1)(3)
2.46x
2.61x
(1) The 2019 published data (except NFD) has been restated for the impact related to the change in scope from the E&P disposal.
(2) Organic change at comparable scope, standards and exchange rates.
(3) Payout ratio based on net income excluding non-recurring items, adjusted for the remuneration of hybrid bonds accounted for in equity.
PROPOSED DIVIDEND
€0.21 per share
PAYOUT RATIO OF 45% (3)The French State has committed to scrip dividend
COVID 19 EBITDA IMPACTS (1)
-€0.7
bn
-€0.6
bn
CUSTOMERS & SERVICES
-0.5
CONSUMPTION DECREASE, INCREASE IN BAD DEBTS, POSTPONEMENT OF ON-SITE CONSTRUCTION WORKS AND SERVICES
-€0.2
bn
ACTION PLAN UNDERTAKEN
OPERATING EXPENSES REDUCTION (2)
compared to 2019
GROUP DISPOSALS 2020 (3)
2020 ACTUAL
2022 AMBITIONS
H1
H2
(1) Estimated figures. See note 1.4. "Comparability of financial years (including Covid health crisis effects)" on the Group's audited financial statements at 31/12/2020. By convention, no price effect in the context of the health crisis has been attributed to the Covid-19 crisis.
(2) Sum of personnel expenses and other external expenses. At constant scope, standards, exchange rates and pension discount rates and excluding inflation. Excluding sales costs of energy service activities and nuclear engineering services of Framatome and in particular projects such as Jaitapur.
(3) Signed or completed disposals: impact on Group's economic debt. Also take into account the binding disposal agreement for the E&P activity of Edison Norge in Norway, signed the 30 December 2020 (closing in the H1 2021)
REVISED (1) TARGETS SLIGHTLY EXCEEDED (EBITDA ≥ €16bn AND NET FINANCIAL DEBT / EBITDA < 3x) INITIAL TARGETS (3) EXCL. COVID ACHIEVED
EBITDA @ €16.2bn, GROWING IF COVID EFFECT EXCLUDED
(2)
1.5 | |
16.7 | 16.2 |
Covid-19
EBITDA
2019
2020
(1) See press releases on 30 July 2020, 13 November 2020 and 16 December 2020
(2) Estimated figures. See note 1.4. "Comparability of financial years (including Covid health crisis effects)" on the Group's audited financial statements at 31/12/2020
ORGANIC CHANGE OF -2.7% AND ORGANIC GROWTH EXCLUDING COVID OF +6.2% (5)
MAINLY THANKS TO PRICE EFFECTS
(3) February 2020 targets. EBITDA range: €17.5 - 18 billion and NFD/EBITDA ~2,6x
(4) Guidance withdrawn between April and July 2020
(5) Organic change at comparable scope, standards and exchange rates, excluding Covid effects.
GROUP EBITDA BY SEGMENT
In €m
ORGANIC CHANGE: -2.7% (1)
16,723 (2)
505 339 593
Scope & forex
772 256 349
1,193
2019 restated
-99
-203
France -
Generation & supply activities
+105
-274
+76
+50
+71
-61
-226
+12
16,174
France -
Regulated activities
EDF Renewables
Dalkia
Framatome
United Kingdom
Italy
Other international
Other activities
261 380 683
Other activities Other international Italy
823 271 290
United Kingdom
Framatome Dalkia
848
EDF Renewables
France - Regulated activities
France - Generation and supply activities
(1) Organic change at comparable scope, standards and exchange rates.
(2) The 2019 published data has been restated for the impact related to the change in scope from the E&P disposal.
2020
GROUP EBITDA - SYNTHESIS (1)
In €m
ORGANIC CHANGE: -2.7%(2)
Organic change excluding Covid: +6.2%(2)(4)
2019 restated
(1) Estimated figures
(2) Organic change at comparable scope, standards and exchange rates.
(3) The 2019 published data has been restated for impact related to the change in scope from the E&P disposal.
(4) Estimated figures. See note 1.4. "Comparability of financial years (including Covid health crisis effects)" on the
Group's audited financial statements at 31/12/2020.
(5) Development and sale of structured assets
2020
(6) Mainly price effects partially offset by a lower volume effect (demand and customer losses)
FRANCE NUCLEAR OUTPUT
(1)
Estimated figures
FRANCE HYDRO OUTPUT
(in TWh)
(1)
2019 cumulative output
2020 cumulative output (1)
+ 12.6%
vs end-Dec. 2019
(1) Hydropower excluding electrical activities on French islands, before deduction of pumped volume consumption.
(2) Production after deduction of pumped volume consumption: 33.4TWh in 2019, and 38,5TWh in 2020.
FRANCE - GENERATION AND SUPPLY ACTIVITIES EBITDA
In €m
7,615
Organic Change excl. Covid : +8.8 % (1)(2)
Energy volume effect (2)
-209
Downstream final customers (2)
Energy price effect (2)(3)
o/w:
Lower nuclear output: ~-11TWh (2) (o/w : Fessenheim ~-10TWh, outage deferrals
~+14TWh and
extended outages
~-16TWh)
Better Hydro output: +5.1TWh (4)
o/w:
Increase in regulated tariff (energy component) of:
• +7.7% at 1 June 2019
• +3.0% at 1 February 2020 including half of 2019 tariff catch-up
2019
(1) Organic change at comparable scope, standards and exchange rates.
(2) Estimated figures.
(3) Including favourable price effects on energy purchasing.
(4) After deduction of pumped volumes.
ORGANIC CHANGE: -2.7%(1)
+182
+148
-200
Other effects (2)
o/w
(+) Capacity price
(-) Customer losses: -12.3TWh (including customers on regulated tariffs)
-872
Covid-19 effect (2)(6)
o/w:
Lower nuclear output: ~-33TWh (2) ~-€0.6bn
Consumption decrease ~-8 TWh ~-€0.2bn
Bad debt risks increase ~-€0.1bn
7,412
2020
(5) At constant scope, standards, exchange rates and pension discount rates. Excluding service activities costs of sales.
(6) Estimated figures. See note 1.4. "Comparability of financial years (including Covid health crisis effects)" on the Group's audited financial statements at 31/12/2020
FRANCE - REGULATED ACTIVITIES (1) EBITDA
In €m
Organic Change excl. Covid : +6.7 % (1)(2)
+391
5,101
Enedis(3) Tariff price effects (incl. TURPE) (4)(6)
Weather and climatic contingencies (4)(8)
o/w decrease in:
grid connections
distributed volumes excl. weather (-8.4 TWh (4))
2019
(1) Regulated activities include Enedis, ÉS and island activities.
-91
(2) Organic change at comparable scope, standards and exchange rates.
(3) Enedis, independent subsidiary of EDF as defined in the French Energy Code.
(4) Estimated figures.
ORGANIC CHANGE: +2.1%(2)
-28
Opex (4)(7)
(5) Estimated figures. See note 1.4. "Comparability of financial years (including Covid health crisis effects)" on the Group's audited financial statements at 31/12/2020
+70
-237
Other (4)
Covid-19 effects (4)(5)
5,206
2020
(6) Indexation of the TURPE 5 Distribution of +3.04% and +2.75% and of TURPE 5 Transmission of
+2.16% and -1.08% respectively on 01/08/2019 and 01/08/2020.
(7) At constant scope, standards, exchange rates and pension discount rates. Excluding service activities costs of sales.
(8) Climatic contingencies include the Opex additional costs to bring back into service structures affected by a climatic event and long outage indemnities paid to customers
RENEWABLE ENERGIES
EDF RENEWABLES
∆%
∆%
In €m
2019
2020
Org.(1)
EBITDA
1,193
848
-28.9
-23.0
o/w generation EBITDA
917
904
-1,4
+4.7
GROUP RENEWABLES (3)
∆%
∆%
In €m
2019
2020
Org.(1)
EBITDA (3) | 2,166 1,862 -14.0 -12.3 |
Net investments
(404)
(1,311)
x3.2
Covid-19 effects non-material
Lower DSSA activity contribution: exceptional level in 2019 linked to the partial disposal of an offshore farm in Scotland
Electricity output: 15.4TWh, generating an organic increase in EBITDA of 4.7% thanks especially to additional capacities commissioned at end-2019 and in 2020
Growth in the Distributed Solar & Operation / Maintenance activities
Increase in development costs supporting business growth
(1) Organic change at comparable scope, standards and exchange rates. The gap with non-organic growth reflects intra-group assets transfers.
(2) Hydro generation after deduction of pumped volume consumption
EBITDA
- Hydro France: hydro generation growth of 5.1TWh (2) (+15.3% vs 2019). Unfavourable effect of market spot prices conditions (-€7.3/MWh) (3)
- RE: Full year effect of commissionings
Net investments
-
Very sharp increase in net investments in the absence of significant disposal transaction
GROUP RENEWABLES RECORD LEVEL
OF PROJECTS UNDER CONSTRUCTION TO 8GW GROSS
AT END-DECEMBER 2020 (2.5GW WIND, 1.6GW OFFSHORE WIND,
3.9GW SOLAR)
(3)For the optimised renewable electricity generation activities within a larger portfolio of generation assets, in particular relating to France's hydropower fleet, sales and EBITDA are estimated, by convention, as the valuation of the output generated at market prices (or the purchase obligation tariff), without taking into account hedging effects, and taking into account the valuation of the capacity, if applicable.
ENERGY SERVICES
DALKIA
∆%
∆%
In €m
2019
2020
Org.(1)GROUP ENERGY SERVICES (3)
∆%
∆%
In €m
2019
2020
Org.(1)
EBITDA
349
290
-16.9
-17.5
EBITDA
431
318
-26.2
-23.9
Net investments
(330)
(438)
+33
Organic decrease mainly linked to Covid-19 crisis impact on energy and services sales volumes (-€40m) (2): closure of customer sites and postponements of construction works in the first semester in France and abroad
Occasional difficulties in service contracts in the United Kingdom
Commercial successes in health, industry and housing
SIGNATURE WITH THALES ALENIA SPACE OF A 15-YEAR
ENERGY EFFICIENCY CONTRACT FOR THE CANNES-
MANDELIEU SPACE CENTRE
EBITDA - Covid-19 crisis impacts on Dalkia's and Edison's activities
Net investments
-
Change mainly reflecting the Pod Point acquisition in the United Kingdom partially offset by the lower investments due to postponements of construction works related to the health crisis
(2) Estimated figures
(3)The Group Energy services include Dalkia, Citelum, CHAM, and the service businesses of EDF Energy, Edison, Luminus and EDF SA. These notably comprise urban lighting, heating grids, decentralised low-carbon productionusing local resources, consumption management, and electric mobility.
27
FRAMATOME
In €m
2019
2020
∆%
∆% Org.(1)
EBITDA
527
534
+1.3
+0.8
EBITDA EDF group contribution 256 271 +5.9 | 4.7 |
Good performance with an EBITDA growth of nearly 5%
Resilience of the "Fuel" activity in France, Germany and USA, and better product mix than in 2019, which led to a rebound in EBITDA
Implementation of measures in response to the health crisis and further action plan on overheads costs
Covid-19 crisis impact (-€47m) (2) mainly affects "Installed Base" business and plants of "Projects and Component
Manufacturing" businesses
(1) Organic change at comparable scope, standards and exchange rates.
(2) Estimated figures.
UNITED KINGDOM
In €m
2019
2020
∆%
∆% Org.(1)
EBITDA
772
823
+6.6
+9.8
Improvement in EBITDA despite the Covid-19 crisis' effects (-€182m) (2) mainly linked to the B2B consumption decrease and bad debt risks on trade receivables. Or an improvement in EBITDA of +33,4 % excluding Covid-19 crisis' effects
Generation
- Decrease in nuclear output (-5.3TWh (3)) to 45.7TWh, due to Hinkley Point B graphite inspection outage. Hunterston B back to service in September 2020. Dungeness B still offline
- Higher nuclear realised prices (+10.3£/MWh)
Supply
-
Gross margin increase on B2C customers (thanks to a better customer mix) despite the decrease in residential customers portfolio in a highly competitive environment
(1) Organic change at comparable scope, standards and exchange rates.
(2) Estimated figures.
(3) Sizewell B output was reduced by 50% between May and September at the request of National Grid. The 2.1TWh loss output has been financially compensated in EBITDA.
(4) Customers take-on awarded by Ofgem (the UK regulatory authority) after auction, following Green Network Energy ceasing to trade .
ITALY
In €m
2019 restated (1)
2020
∆%
∆% Org.(2)
EBITDA
593
683
+15.2
+8.4
EBITDA improvement despite the Covid-19 crisis impact (-€60m) (3) mainly linked to drop in power and gas volumes, especially in B2B segment and service activities decrease
Electricity business
-
Better contribution of renewable energies generation (hydro and wind power)
- Performance of ancillary services (4) related in particular to a good optimisation of the fleet's flexibility
Gas business
-
Best optimisation thanks to supply contracts flexibility by gas pipeline in a market price volatility context
Downstream businesses
-
Margins improvement on electricity sales to residential and business customers and growth in services to residential customers. On the other hand, the mild weather at the beginning of the year had an unfavourable effect on gas margins
FINALISATION OF E&P ACTIVITY DISPOSAL IN DECEMBER 2020 & SIGNATURE OF A BINDING AGREEMENT FOR THE E&P DISPOSAL IN NORWAY, EDISON NORGE
(1)The 2019 published data has been restated for the impact related to the change in scope from the E&P disposal (excluding Norway and Algeria).
(2) Organic change at comparable scope, standards and exchange rates. The gap with non-organic growth reflects intra-group assets transfers.
(3) Estimated figures
(4) Mercato dei Servizi di Dispacciamento
OTHER INTERNATIONAL |
In €m |
EBITDA |
2019 | 2020 | ∆% | ∆% Org.(1) | |
339 | 380 | +12.1 | +20.9 | |
o/w Belgium (2) | 206 | 247 | +19.9 | +18.9 |
o/w Brazil | 126 | 115 | -8.7 | +16.7 |
Belgium (2)
- EBITDA growth despite the Covid-19 crisis' impact (-€26m) (3) linked to the consumption decrease, the decline in service activities and the bad debt risks on trade receivables
- Nuclear generation back to normal in 2020 and very favourable price effects
- Wind: generation growth of +26% driven by an increase in installed capacity to 548MW (4) (+13.5% vs end-2019) and favourable wind conditions
Brazil
- Good operational performance, continuity of operations with few impacts from the health crisis
- Indexation increases of EDF Norte Fluminense's electricity PPA tariff
- Unfavourable forex effect (depreciation of the BRL against Euro)
BINDING AGREEMENT SIGNED FOR THE PORTFOLIO ACQUISITION (5) OF C.330,000 CUSTOMERS (ESSENT BELGIUM - GAS AND ELECTRICITY) IN BELGIUM
(1) Organic change at comparable scope, standards and exchange rates.
(2) Luminus and EDF Belgium.
(3) Estimated figures.
(4) Net capacity at Luminus scope. 588MW in gross capacity (+13.3% growth).
(5) See Luminus Press release on 5 February 2021
OTHER ACTIVITIES | ||||
2019 | 2020 | ∆% | ∆% Org.(1) | |
In €m | ||||
EBITDA | 505 | 261 | -48.3 | -44.8 |
o/w Gas activities | (333) | (455) | -36.6 | -36.6 |
o/w EDF Trading | 733 | 633 | -13.6 | -11.2 |
Gasactivities
-
Significant provision for onerous contracts mainly in view of the downward revision of medium-term and long-term Europe/USA spreads
EDF Trading
-
Sustained performance of trading activities after an exceptional year in 2019. Good performance linked to high volatility and hedging services activities as well as LNG activities and LPG trading activities. Non-material Covid-19 crisis impacts
(1)Organic change at comparable scope, standards and exchange rates.
GROUP EBIT
2019 restated (1) | 2020 | ∆ | |
In €m | |||
EBITDA | 16,723 | 16,174 | (549) |
Commodities volatility | 642 | (175) | (817) |
Amortisation/depreciation expenses and provisions for renewal | (10,020) | (10,838) | (818) |
Impairments and other operating income and expenses | (588) | (1,286) | (698) |
EBIT | 6,757 | 3,875 | (2,882) |
(1)The 2019 published data has been restated for the impact of the change in the scope of the E&P disposal.
FINANCIAL RESULT
In €m
2019 restated (1)
2020
∆
Cost of gross financial debt
(1,806)
(1,610)
+196
Discount expenses
(3,161)
(3,733)
(572)
Other financial income and expenses
4,603
2,761
(1,842)
o/w net change in fair value of debt and equity instruments of dedicated assets
2,545
1,218
(1,327)
Financial result
(364)
(2,582)
(2,218)
Excluding non-recurring items before tax (o/w change in IFRS 9 fair value of financial instruments)
(2,586)
(1,123)
1,463
Financial result excl. non-recurring items
(2,950)
(3,705)
(755)
INCREASE IN DISCOUNT EXPENSES MAINLY DUE TO A DECREASE IN THE DISCOUNT RATE FOR NUCLEAR PROVISIONS IN FRANCE OF 20 BPS IN 2020 VS 10 BPS IN 2019
GOOD PERFORMANCE OF DEDICATED ASSETS IN A DETERIORATED FINANCIAL MARKET ENVIRONMENT
(1)The 2019 published data has been restated for the impact of the change in the scope of the E&P disposal.
NET INCOME
Net income - Group share 5,155 | 650 -87.4 |
2019 restated (1) | 2020 | ∆% | |
In €m | |||
EBIT | 6,757 | 3,875 | -42.7 |
Financial result | (364) | (2,582) | |
Income tax | (1,532) | (945) | |
Share of net income from associates and joint-ventures | 818 | 425 | |
Net income of discontinued operations | (497) | (158) | |
Deducting net income from minority interests | (27) | 35 | |
Excluding non-recurring items | (1,284) | 1,319 | |
o/w change in IFRS 9 fair value of financial instruments, net of tax | 1,780 | 873 |
Net income excl. non-recurring items 3,871 | 1,969 -49.1 |
(1)The 2019 published data has been restated for the impact of the change in the scope of the E&P disposal.
NON-RECURRING ITEMS NET OF TAX
In €m | 2019 restated (1) | 2020 |
Impairments | (883) | (844) |
o/w E&P | (500) | (114) |
o/w United Kingdom existing nuclear fleet | (96) | (402) |
Change in IFRS 9 fair value of financial instruments | 1,780 | 873 |
Others, including commodities volatility (IFRS 9) | 387 | (1,348) |
o/w exceptional additional costs related to the penetration welds of Flamanville 3 | - | (270) |
o/w tax litigation in France and tax rate changes in the United Kingdom | - | (658) |
Total non-recurring items net of tax | 1,284 | (1,319) |
(1)The 2019 published data has been restated for the impact of the change in the scope of the E&P disposal.
CHANGE IN CASH FLOW
In €m | 2019 restated (1) | 2020 |
EBITDA | 16,723 | 16,174 |
Non-cash items | (1,930) | 328 |
EBITDA Cash | 14,793 | 16,502 |
∆ WCR | 475 | (1,679) |
Net investments (excluding Group assets disposal plan, HPC et Linky (2)) | (11,433) | (11,570) |
Other items o/w dividends received from associates and group ventures | 303 | (17) |
Cash flow generated by operations | 4,138 | 3,236 |
Group assets disposal plan | 531 | 187 |
Income tax paid | (915) | (983) |
Net financial expenses disbursed | (802) | (1,008) |
Dedicated assets | (394) | (798) |
Dividends paid in cash (including hybrid bonds remuneration) | (801) | (768) |
Group Cash flow excluding Linky (2) and HPC | 1,757 | (134) |
Linky (2) and HPC | (2,582) | (2,575) |
Group cash flow | (825) | (2,709) |
(1) The 2019 published data has been restated for the impact of the change in the scope of the E&P disposal.
(2) Linky is a project led by Enedis, independent subsidiary of EDF under the provisions of the French energy code.
NET TOTAL INVESTMENTS INCLUDING ACQUISITIONS, EXCLUDING DISPOSAL PLAN
EDF RENEWABLES (2)
FRANCE - REGULATED ACTIVITIES
1%
2019
(1) The 2019 published data has been restated for the impact of the change in the scope of the E&P disposal (see Appendix E&P on slide 102).
6%
(2) (2)% of net investments for EDF Renewables due to the debt deconsolidation associated to the offshore wind projects NnG following the disposal of 50% of the shares
2020
NET DEBT
In €bn
CHANGE €(1.2)bn
(41.1)
-2.6
+2.1
+16.5
(42.3)
-0.6
-1.0
-0.7
+0.2
-1.0
-0.8
-11.6
-1.7
Dividends (2)Net financial expenses disbursed
EBITDA
Cash
∆ WCRNet investments (1)Income tax paid
Group cash flow: €(2.7)bn
Dedicated assets and others
DisposalsLinky (3) & HPC
Hybrid issuance
Including technical effects:
• Forex: +€0.4 bn
Others
• Change in fair value of financial instruments -€0.5 bn
• Lease debt IFRS 16 : -€0.6 bn
• Océane - equity component: +€0.2 bn
December 2019
December 2020
NB: figured rounded up to the nearest whole number.
(1) Net investments excluding Linky, HPC and disposals.
(2) Dividends paid including hybrid bonds remuneration.
(3) Linky is a project led by Enedis, independent subsidiary of EDF under the provisions of the French energy code.
ANNUAL RESULTS 2020
Jean-Bernard Lévy
Chairman and Chief Executive Officer
2021 GUIDANCE AND MEDIUM-TERM OUTLOOK (1)
SUBJECT TO ADDITIONAL REINFORCED SANITARY RESTRICTIONS IMPACTS
TARGETS 2021 | EBITDA (1) > €17bn NET DEBT / EBITDA (1) < 3x |
AMBITIONS 2022 | OPERATING EXPENSES (2) reduction between 2019 and 2022 €500m GROUP DISPOSALS 2020-2022 (3) ~ €3bn NET DEBT / EBITDA (1) ~ 3x |
‒ TARGET PAYOUT RATIO OF NET INCOME EXCLUDING NON-RECURRING ITEMS (4) FOR 2021 AND 2022 ‒ THE FRENCH STATE HAS COMMITTED TO SCRIP FOR THE DIVIDEND RELATING FY2021
45 - 50%
(1) On the basis of the scope and exchange rates at 01/01/2021.
(2) Sum of personnel expenses and other external expenses. At constant scope, standards, exchange rates and pension discount rates and excluding inflation. Excluding sales costs of energy service activities and nuclear engineering services of Framatome and in particular projects such as Jaitapur.
(3) Signed or completed disposals: impact on Group's economic debt.
(4) Adjusted for the remuneration of hybrid bonds accounted for in equity.
ANNUAL RESULTS 2020
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EDF - Électricité de France SA published this content on 04 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 March 2021 09:54:05 UTC.
