HIGHLIGHTS 2019 THIRD QUARTER 1 SALES 9M 2019 DISCLAIMER This - - PowerPoint PPT Presentation

SALES 9M 2019

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SALES AND HIGHLIGHTS 2019

THIRD QUARTER

SALES 9M 2019

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DISCLAIMER

This presentation does not constitute an offer to sell securities in the United States or any other jurisdiction. No reliance should be placed on the accuracy, completeness or correctness of the information or opinions contained in this presentation, and none of EDF representatives shall bear any liability for any loss arising from any use of this presentation or its contents. The quarterly financial information is not subject to an auditor’s report. The present document may contain forward-looking statements and targets concerning the Group’s strategy, financial position or results. EDF considers that these forward-looking statements and targets are based on reasonable assumptions as of the present document publication, which can be however inaccurate and are subject to numerous risks and uncertainties. There is no 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

• perational initiatives based on its current business model as an integrated operator, changes in the competitive and regulatory framework of

the energy markets, as well as risk and uncertainties relating to the Group’s activities, its international scope, the climatic environment, the volatility of raw materials prices and currency exchange rates, technological changes, and changes in the economy. 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 29 July 2019, which is available on the AMF's website at www.amf-france.org and on EDF’s website at www.edf.fr. EDF does not undertake nor does it have any obligation to update forward-looking information contained in this presentation to reflect any unexpected events or circumstances arising after the date of this presentation.

SALES 9M 2019

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(in millions of Euros)

9M 2018 restated (1) 9M 2019 ∆% ∆% org.(2) SALES 49,276 50,941 +3.4 +2.9

(1) The disposal of Edison's Exploration and Production (E&P) activity was classified as a discontinued operation within the meaning of IFRS 5 as of 1 January 2019. The 2018 published sales amount was restated due to the impact linked to the Edison E&P activity presentation as a discontinued operation. (2) Organic change at comparable scope and exchange rates.

KEY FIGURES AT 30 SEPTEMBER 2019

Organic growth of sales mainly driven by: favourable market conditions for the Generation & supply activities in France growth of Group energy services activities good performance of EDF Trading and better use of the Group’s gas capacities performance of activities in Belgium and Brazil

SALES 9M 2019

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HIGHLIGHTS AND DEPLOYMENT OF CAP 2030 (1/3)

RENEWABLE ENERGIES

Record level of projects under construction by EDF Renewables: Start of construction for 2.4GW in 9 months bringing the total under construction at end-September 2019 to 4.7GW gross (x2 vs. end-December 2018) Wind power and Offshore

• Launch of the construction of the first French offshore wind farm in Saint-Nazaire

(480MW)

• Acquisition of a pipeline of 300MW wind projects under development in Germany

Solar: commissioning of 2 solar power plants in Egypt at Benban with a total installed capacity of 130MWp, holding a 25-year power purchase agreement (PPA)

STORAGE AND ELECTRIC MOBILITY PLANS

Acquisition of Pivot Power, a British company specialised in battery storage and infrastructure for electric vehicle charging (portfolio of projects with a potential capacity of up to 2GW) Acquisition of PowerFlex Systems in the USA, a company combining solar energy generation and storage with smart charging solutions for electric vehicle technology or building load Nissan and EDF Group partner to accelerate the adoption of Electric Vehicle and grid integration across Europe (smart charging solutions)

SALES 9M 2019

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HIGHLIGHTS AND DEPLOYMENT OF CAP 2030 (2/3)

CUSTOMERS AND SERVICES

Sales offensive

• 460,000 residential electricity customers under market offers signed-up in France
• More than 1.5 million residential gas customers in France

Dalkia: further commercial development with the renewal or the signature of new contracts (power network at La Grande Motte and energy facilities for the Nouvelle Aquitaine Regional Council) Linky: installation of the 21 millionth smart meter at end-September

REGULATORY DEVELOPMENT

ARENH: volume ceiling maintained for 2020 and price unchanged at this stage Energy saving certificates (CEE): 1 year extension until 2021 for the 4th period. Draft decree from the French Ministry of Ecological and Solidarity Transition submitted to the French State Council on 9 October 2019 Capacity mechanism in Great Britain: Positive decision by European Commission on 24 October 2019, with the British government reinstating the Capacity market

SALES 9M 2019

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HIGHLIGHTS AND DEPLOYMENT OF CAP 2030 (3/3)

NUCLEAR

Nuclear output

• France: 288.2TWh, -1.8TWh vs. 9M 2018 due to a lower availability of the nuclear fleet
• United Kingdom: 36.8TWh, -9.1TWh vs. 9M 2018 mainly related to extended outages at

Hunterston B and Dungeness B Taishan (EPR in China)

• Unit 2: commercial commissioning on 7 September 2019
• Unit 1: generation of more than 10TWh since the commissioning

Hinkley Point C(1): project completion cost revised to £21.5bn - £22.5bn(2) Flamanville 3(3)

• Fuel loading planned for end-2022
• Estimated construction cost revised to €12.4bn(4)
• Start of the second hot functional test phase on site

Fessenheim(5): protocol agreement signature whereby the State will compensate EDF for the early closure of Fessenheim. This compensation will comprise initial instatements for a total of nearly €400m

(1) See press release of 25 September 2019. (2) In 2015 sterling, excluding interim interest and excluding forex effect versus the reference exchange rate for the project of 1 sterling = 1.23 euro. (3) See press release of 9 October 2019. (4) In 2015 euros and excluding interim interest. (5) See press release of 30 September 2019.

SALES 9M 2019

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(3,301) (3,135) 18,942 20,079 11,571 11,437 1,090 1,163 2,760 2,903 2,290 2,346 6,466 6,392 5,736 5,659 1,667 1,938 2,055 2,159

+1,080

• 134

+15 +128 +28

• 80
• 208

+251 +182 +403

Inter- segment elimination

France – Generation & supply activities France – Regulated activities (In €m)

50,941 49,276 (2)

GROUP SALES

Italy

Organic change: +2.9%(1)

France – Production & commercialisation France – Regulated activities United Kingdom Other international Italy Dalkia Other activities

9M 2019 9M 2018

restated(2)

31 % 49 % 36 % 39 %

EDF Renewables Dalkia

Framatome EDF Renewables

Framatome

(1) Organic change at comparable scope and exchange rates. (2) The 2018 sales amount was restated due to the impact linked to the Edison E&P activity presentation as a discontinued operation.

Scope & forex & inter- segment elimination United Kingdom Other international Other activities

SALES 9M 2019

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FRANCE NUCLEAR OUTPUT

112.9 111.8 202.6 203.7 290.0 288.2

2019 cumulated output 2018 cumulated output

9M H1

(in TWh)

+0.5%

• 0.6%

Q1

• 1.0%

SALES 9M 2019

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2019 cumulative output(1) (2) 2018 cumulative output(1)

(1) Hydropower excluding French islands electrical activities, before deduction of pumped volumes. (2) After deduction of pumped volumes, output amounts to 23.5TWh in 9M 2017, 32.7TWh in 9M 2018 and 23.0TWh in 9M 2019.

Normal hydro productibility levels Seasonal mins. and maxs. between 2009 and 2019

Dec. Sept. June March

(In TWh)

FRANCE HYDRO OUTPUT

Q1 H1 9M 2017 cumulative output(1)

• 27.6%
• vs. 9M 2018

10.8 14.6 9.9 21.3 29.4 20.1 28.6 38.0 27.5

• 32.2 %
• vs. Q1 2018
• 31.6 %
• vs. H1 2018

40% 60% 80% 100% 120% 140% 160%

2018 2019 2017

Very good rainfall in October

SALES 9M 2019

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FRANCE UPSTREAM/DOWNSTREAM BALANCE

(in TWh)

368

• 2
• 1

+1

• 10

+3

• 9
• 15
• 12

+18

368

Nuclear Hydropower(1) Fossil-fired LT & structured purchases Purchase obligations Net market sales Structured sales, auctions and other(2) ARENH supply End customers

• 9

OUTPUT/PURCHASES CONSUMPTION/SALES

41 5 7 27 288 199 30 90 49

NB: EDF excluding French islands electrical activities. (1) Hydro output after deduction of pumped volumes: 23.0TWh. (2) Including hydro pumped volumes of 4.5TWh.

∆ 9M 2019

• vs. 9M 2018

∆ 9M 2019

• vs. 9M 2018

SALES 9M 2019

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+ 48 + 126 + 588

• 73

+155 + 47 + 126 +120

9M 2018

Others(2) Decrease in net sales:

• decrease in hydro

generation

• increase in ARENH

subscriptions

• decrease in volumes

sold to end customers (excluding ARENH)

• price effect on capacity

certificates sold on wholesale markets Mainly:

• Positive price

effects on energy and capacities

• LT contracts

and participations evolution Including:

• Increase in

tariffs on 1 June 2019

• End of 2012-

2013 tariff catch up on 1 August 2018 Intercompany transactions (2) Mainly price effect

18,942

Weather(2) Tariffs(2) (3)

Organic change: +5.7%(1)

FRANCE – GENERATION AND SUPPLY ACTIVITIES

20,079

Downstream market conditions(2) (4) (In millions of Euros) ARENH and purchases/sales

• n wholesale

markets(2)

9M 2019

Resale of purchase

• bligations(2)

Energy Saving certificates component (2)

(1) Organic change at constant scope and exchange rates. (2) Estimated figures. (3) Price effects on regulated sales tariffs customers, excluding the Energy Saving Certificates component in tariff stacking. Increase in tariffs on 1 June 2019 of +7.7%. (4) Excluding the Energy Saving Certificates component in market offers.

SALES 9M 2019

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• 82
• 91

+39

9M 2018 9M 2019

11,571 11,437

Weather(3) (-2.0TWh) Other(3)

FRANCE – REGULATED ACTIVITIES(1)

(in millions of Euros) Tariffs(3)(4) (TURPE)

Organic change: -1.2%(2)

(1) Regulated activities include Enedis, Électricité de Strasbourg and island activities. (2) Organic change at constant scope and exchange rates. (3) Estimated figures. (4) Including upward adjustment of the tariffs of the low voltage customers domain ≤ 36 kVA of +1.16 % and indexation of TURPE 5 Distribution of +3.04% and TURPE 5 Transmission of 2.16% at 1 August 2019 (vs. respectively -0.21% and +3% in 2018).

Mainly distribution tariff optimisation by suppliers

SALES 9M 2019

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9M 2018 9M 2019 ∆% ∆% org.(1) SALES(3) 3,292 2,932

• 11
• 15

RENEWABLE ENERGIES

Growth driven by generation

 Positive price impact (portfolio effect)  Generation down -0.6TWh vs. 9M 2018 to

10.7TWh, following 2018-2019 disposals calendar

Net installed capacity: 8.2GW (stable vs. end-2018)

(1) Organic change at comparable scope and exchange rates. (2) Group Renewables include EDF Renewables and Group hydro generation, as well as the renewable activities of EDF Luminus and Edison. (3) For renewable energy generation optimised within a larger portfolio of generation assets, in particular relating to the French hydro fleet, sales are estimated, by convention, as the valuation of the

• utput generated at spot market prices (or at purchase obligation tariff) without taking into account hedging effects, and include the valuation of the capacity, if applicable.

(4) Hydro output after deduction of pumped volumes : 32.7TWWh in 9M 2018 and 23.0TWh in 9M 2019

(in millions of Euros)

9M 2018 9M 2019 ∆% ∆% org.(1) SALES 1,090 1,163 +6.7 +1.4

GROUP RENEWABLES(2)

Hydro generation: 27.5TWh (4),

• 10.5TWh vs. 9M 2018, decrease

linked to unfavourable hydrological conditions

EDF RENEWABLES

SALES 9M 2019

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9M 2018 9M 2019 ∆% ∆% org.(1) SALES 3,671 3,977 +8 +5

ENERGY SERVICES

Commercial growth, in particular in France Positive effects of fuel price and price indices revision

(1) Organic change at constant scope and exchange rates. (2) Group Energy Services include Dalkia, Citelum, CHAM and services activities of EDF Energy, Edison, Luminus and EDF SA. They consist in particular of street lighting, heating networks, decentralised low-carbon generation based on local resources, energy consumption management and electric mobility.

(in millions of Euros)

9M 2018 9M 2019 ∆% ∆% org.(1) SALES 2,760 2,903 +5.2 +4.6

GROUP ENERGY SERVICES(2)

Sustained growth of the services activities in the United Kingdom and in Belgium

DALKIA

SALES 9M 2019

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9M 2018 9M 2019 ∆% ∆% org.(1) SALES 2,290 2,346 +2.4 +1.2 SALES EDF group contribution 1,330 1,296

• 2.6
• 4.7

Growth in “Installed Base” services activities, in particular in Canada Ramping up in the “Large Projects” activity linked to the construction of HPC, which is taking over from Taishan following the commissioning of its two EPR Strategic and commercial developments

 Signature in October with Rosatom of 2 contracts for the supply of main Instrumentation &

Control system for the nuclear power plants of Hanhikivi-1 in Finland and of PAKS2 in Hungary

 Closing on 1 October of FoxGuard Solutions acquisition, who is a specialist in cybersecurity

and industrial computing in the USA

 Signature in November with CNEIC/CJNF of a letter of intent concerning the supply of

components for manufacturing fuel assemblies reloads in China

FRAMATOME

(1) Organic change at constant scope and exchange rates.

SALES 9M 2019

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Decrease in nuclear output (-9.1TWh to 36.8TWh) due to the extension of the

• utages at Hunterston B and Dungeness B in 2019

Missing capacity revenue (following the suspension of the mechanism in November 2018 – Positive decision by the European Commission on 24 October 2019, with the British government reinstating the Capacity market) Adverse impact of the standard variable tariff cap (SVT cap) since 1 January 2019 Resilience of the downstream business: BtoC customer portfolio stable and increase in volumes sold on the BtoB market

(in millions of Euros)

9M 2018 9M 2019 ∆% ∆% org.(1) SALES 6,466 6,392

• 1.1
• 1.2

(1) Organic change at constant scope and exchange rates.

UNITED KINGDOM

SALES 9M 2019

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Gas retail

 Decrease in gas prices across all markets  Decrease in volume sold on the wholesale market partially offset by a rise in

volumes sold to B2B customers

Electricity activity

 Higher volumes sold to the B2B and B2C customers  Positive price effect on the B2B and B2C segments

(1) The 2018 sales amount was restated due to the impact linked to the Edison E&P activity presentation as a discontinued operation. (2) Organic change at constant scope and exchange rates.

ITALY

(in millions of Euros)

9M 2018 restated (1) 9M 2019 ∆% ∆% org.(2) SALES 5,736 5,659

• 1.3
• 3.6

SALES 9M 2019

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Belgium (+€83m) (1)

 Higher prices in electricity and gas partially offset by lower volumes sold to

residential segment due to a mild weather

 Further development in renewables (503MW of wind installed capacity, +14.3%

• vs. end-December 2018) and services activities

Brazil (+€144m) (1)

 Positive effect of the evolution (without effect on EBITDA) of ICMS(2) tax revision

and of the contractual PPA tariff review for EDF Norte Fluminense electricity sales, which occurred at the end of 2018

OTHER INTERNATIONAL

(1) Organic change at comparable scope and exchange rates. (2) Tax on Commerce and Services.

(in millions of Euros)

9M 2018 9M 2019 ∆% ∆% org.(1) SALES 1,667 1,938 +16.3 +15.1

SALES 9M 2019

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EDF Trading

 Good performance since the beginning of the year thanks to volatility on

commodity market in a bearish price environment and benefiting from favourable positions on the European power and gas market

 Solid contribution from LNG trading and optimisation of activities and LPG

activities

Gas activities

 Strong evolution in LNG activity linked to a better use of Group capacities

(1) Organic change at comparable scope and exchange rates. .

OTHER ACTIVITIES

(in millions of Euros)

9M 2018 9M 2019 ∆% ∆% org.(1) SALES 2,055 2,159 +5.1 +8.9

• /w EDF Trading

832 846 +1.7 +6.7

SALES 9M 2019

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• Payout ratio based on Net income

Excluding non-recurring items(4)

• French State committed to scrip for dividends relating to

FY2019 and FY2020

€16.0 - €16.7bn ~€1.1bn vs 2015

DECREASE IN OPEX(2) EBITDA(1)

CONFIRMATION OF 2019 GUIDANCE AND OF 2019-2020 AMBITIONS

TOTAL NET INVESTMENTS(3) excluding acquisitions and “2019-2020 Group disposals”

45 - 50%

DIVIDEND

2019 TARGETS 2019-20 AMBITIONS

>€600m (5)

CASH FLOW excluding HPC and Linky

€2bn to €3bn

2019-2020 GROUP DISPOSALS NET FINANCIAL DEBT / EBITDA(1) (3)

≤2.7x

After IFRS 16 application Before IFRS 16 application

€15.3 - €16.0bn >0 ≤2.5x

(1) On the basis of the scope and exchange rates at 01/01/2019 and of an assumption of a 384-388TWh range for France nuclear output. (2) Sum of personnel expenses and other external expenses. At comparable scope, IFRS 16 standard and exchange rates. At constant pension discount rates. Excluding change in operating expenses of service activities. (3) For 2020: in accordance with the chosen Group’s scenario regarding the Flamanville 3 project completion costs and schedule, cf. press release of 9 October 2019. (4) Adjusted for the remuneration of hybrid bonds accounted for in equity. (5) The impact of IFRS 16 on cash-flow is derived from the increase in EBITDA, reduced by financial interests

• n the IFRS 16 net financial debt.

2019: ~€15bn 2020: ~€15.5bn

SALES 9M 2019

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SALES AND HIGHLIGHTS 2019

THIRD QUARTER