Company Announcements

PRESS RELEASE 18 February 2022

2021 ANNUAL RESULTS

Financial targets achieved

Strong increase in EBITDA and Net Income compared to 2020 and 2019

Successful disposal and cost savings plans

Decrease in carbon intensity

2021 Financial Results

Sales                                                    €84.5bn +21.6% org.^{( 1)}
EBITDA                                                 €18.0bn       +11.3% org.⁽¹⁾
Net income excluding non-recurring items ⁽²⁾        €4.7bn     x2.4
Net income – Group share                              €5.1bn     ~ x8
Net debt/EBITDA                                         2.4x
Dividend per share                                                        €0.58 ⁽³⁾

2021 Highlights

2021 Achievements

• All financial targets achieved
• Strong EBITDA growth vs. 2020 and 2019
• Disposal and cost savings plans achieved one year ahead of schedule

Nuclear

• Nuclear power included in European Taxonomy ⁽⁴⁾
• Existing nuclear and “Grand Carénage”: Five fourth 10-year inspections completed and two in progress, extension of 1,300MW French nuclear fleet depreciation period to 50 years
• Flamanville 3: update of fuel loading target from end-2022 to Q2 2023 and construction costs from €12.4bn to €12.7bn ⁽⁵⁾
• Sizewell C: draft law introduced by the UK government on a funding scheme (Regulated Asset Base) of new nuclear projects
• Signature of an exclusive agreement with GE to acquire part of the GE Steam Power’s nuclear activities ⁽⁶⁾, excluding the American continent

Wind and solar renewables

• Increased production: 20.9TWh, +8.3% vs end-2020
• Acceleration in commissioning: 3.1GW gross (vs 2.5GW in 2020)
• Installed capacity growth: 12GW net at end-2021 (+13% vs end-2020)
• Substantial capacity under construction: 7.9GW gross at end-2021
• Projects pipeline: ~ 76GW (+27% vs end-2020)

Customers and services 

• 1.4 million residential electricity customers with market offers in France, up 40% vs end-2020 and consistent with the target of 3 million in 2023
• Strong growth in electric mobility: close to 200,000 charging points installed and managed at end-2021, mainly via Pod Point, leader in home charging in the UK with over 150,000 charging points
• Dalkia Electrotechnics/Citelum: winner of a 10-year public lighting contract for the city of Paris

Enedis

• Linky: successful roll-out of smart meters, final programme target achieved in terms of time, costs and performance

Italy

• Strategic repositioning of Edison: reorganisation of renewable assets ⁽⁷⁾ and refocus on core businesses

International

• Construction of the Nachtigal hydro powerplant (420MW) in Cameroon: progress on civil engineering and electro-mechanical works (more than half completed). Industrial commissioning planned for 2024

Environmental & social achievements and targets

• Carbon intensity: 48 gCO₂/kWh in 2021 vs. 51 gCO₂/kWh in 2020, level around 5x lower than the European average for utilities
• Gender equality: Women accounted for 29.8% of management committee members at Group’s entities in 2021 vs 28.7% in 2020, in line with Group targets

Outlook and Action plan

Announcements by the French President on 10 February 2022 in Belfort

• Support to the French nuclear sector
  • Launch of a construction program of 6 EPR2 reactors and potentially 8 more
  • Extended operations for all reactors, except for safety issues
  • Development of the French SMR programmes, including €500 million for NUWARD^TM
• Acceleration of renewable energy development (solar, offshore and onshore wind and hydro)
• Confirmation of the growing role of low-carbon electricity in France’s climate ambition, in a context of reduction in energy consumption

Exceptional regulatory measures to limit increase in tariffs in 2022 ⁽⁸⁾

• Additional allocation of 20TWh of ARENH volumes ⁽⁹⁾ for 2022
• 12-month postponement to February 2023 of part of the tariff increase relative to 2022 ⁽¹⁰⁾

Nuclear

• Outages or extended outages of nuclear reactors owing to the detection of defaults on the pipes of the safety injection system
• French nuclear output estimate updated ⁽¹¹⁾ to 295 - 315TWh for 2022 and 300 - 330TWh for 2023

2022

• EDF draws attention to the 2022 EBITDA. Starting from the 2021 actual of €18bn, this figure will include:
  • around €6bn improvement in price effect
  • around -€8bn related to exceptional regulatory measures ⁽¹²⁾
  • around -€11bn linked to nuclear output reduction
  • and other effects related to the Group's performance

These estimates, which are highly sensitive to market prices, are presented for illustrative purposes ⁽¹³⁾ and are based on information that the Group has currently available.

Launch of an action plan
As announced on January 13 2022 ⁽¹⁴⁾, EDF presented to its Board of Directors’ meeting on February 17 2022 an action plan aimed at strengthening its balance sheet structure in the context of the events of early 2022.
This plan aims at pursuing the Group's strategy, which is based on a balanced mix of nuclear and renewable energies, develops energy efficiency services and provides its customers with even more innovation.

In order to finance this strategy, EDF notified its intention to:

• Submit as soon as possible to the Board of Directors, and subject to market conditions, a proposed rights issue with preferential subscription rights leading to the issuance of approximately 510 million new shares for an amount of approximately €2.5 billion, including issue premium ⁽¹⁵⁾.
• Propose an option to receive a scrip dividend ⁽¹⁶⁾ for fiscal years 2022 and 2023.

The French State, EDF's largest shareholder, has indicated its position to the Board of Directors on the two points above, which will be communicated separately.

• Carry out additional disposals of around €3 billion ⁽¹⁷⁾ over 2022 - 2024.

AMBITIONS ⁽¹⁸⁾

2023 ambitions

Net financial debt / EBITDA                                                                ~3x   Adjusted net debt / adjusted EBITDA (19)                                                                 4.5x to 5x

Meeting on 17 February 2022 under the chairmanship of Jean-Bernard Lévy, EDF’s Board of Directors approved the consolidated financial statements at 31 December 2021.

Jean-Bernard Lévy, Chairman and Chief Executive Officer of EDF, commented:

"In 2021, EDF met its commercial, operational and financial targets. The EDF Group's EBITDA grew significantly and reached its highest level since 2015. The deployment of the CAP 2030 strategy was a major success in 2021, testifying to the skills and mobilisation of all men and women of Group.
The difficulties encountered at the beginning of 2022 have led EDF to implement an action plan aimed to continue this strategy in support of the energy transition and France's industrial and climate objectives for the 2030 and 2050 horizons."

Change in EDF Group results

(in millions of euros)	2020	2021	Change (%)	Organic change (%)
Sales	69,031	84,461	22.4	21.6
EBITDA	16,174	18,005	11.3	11.3
EBIT	3,875	5,225	34.8
Net income – Group share	650	5,113	~x8
Net income excl. non-recurring items (Erreur ! Signet non défini.)	1,969	4,717	x2.4

Change in EDF Group EBITDA

(in millions of euros)	2020	2021	Change (%)	Organic change (%)
France - Generation and supply activities	7,412	7,394	-0.2	-0.3
France - Regulated activities	5,206	5,992	15.1	15.1
EDF Renewables	848	815	-3.9	-3.7
Dalkia	290	378	30.3	31.7
Framatome	271	310	14.4	18.5
United Kingdom	823	- 21	-102.6	-108.0
Italy	683	1,046	53.1	53.0
Other international	380	267	-29.7	-22.9
Other activities	261	1,824	x7	x7
Total Group	16,174	18,005	11.3	11.3

Organic growth in EBITDA of 11.3% between 2020 and 2021 is mainly related to an increase in nuclear output in France. This trend was also driven by the extremely positive performance in the trading business, by the significant improvements in Italy and in the French regulated activities, and by the reduction in production tax. However, outages and extended outages of nuclear reactors at the end of the year in France required the purchase of volumes on the market against a backdrop of a sharp rise in electricity prices. This had a strongly unfavourable impact. The United Kingdom was negatively impacted by the decrease in nuclear output and the sharp decline in realised nuclear prices stemming from substantial buybacks at high market prices.

Operational performance

Nuclear output in France reached 360.7TWh, up 25.3TWh year on year. This change mainly reflects the following factors:

• improved availability of the fleet and lower modulation volumes, after 2020, impacted by the health crisis.

• despite the lack of 2021 production from the two Fessenheim reactors, which closed in first-half 2020

Hydro output in France totalled 41.8TWh ⁽¹⁾, down 2.9TWh compared with 2020.

In the United Kingdom, nuclear output was 41.7TWh, down 4.0TWh compare to 2020. This downturn resulted notably from more planned outages in 2021 than in 2020 and from the three-month extension of the Sizewell B outage. The Dungeness plant was closed definitively in June 2021 and the two Hunterston B reactors shut down permanently on 26 November 2021 and 7 January 2022 respectively.

In Belgium, the improved availability of thermal plants helped to increase the services provided to the electric system. Hydro generation benefited from extremely favourable conditions in 2021.
EDF Renewables output amounted to 17TWh (+1.6TWh), up 10.5% in organic terms, thanks to the commissioning of new capacity.

Disposal and cost savings plans achieved one year ahead of schedule

To offset the impacts of the health crisis on the Group’s financial situation, cost savings and disposal plans were launched mid-2020 with a view to reducing operating expenses⁽²⁾ by €500 million between 2019 and 2022 and generating approximately €3 billion in disposals⁽³⁾ between 2020 and 2022. At end-2021, €545 million in cost savings had been achieved. Asset disposals signed or completed at 31 December 2021 had a favourable effect of around €3 billion on net debt and around €3.7 billion on the Group’s economic debt ⁽⁴⁾.
These disposals are consistent with Group strategy and have helped to refocus on core businesses and to withdraw from carbonised activities (mainly the sales of the E&P business and of the IDG gas distribution network).
Both plans have exceeded their targets one year ahead of schedule.

Extension of 1,300MW French nuclear fleet depreciation period

The Group changed the depreciation period of its 1,300MW PWR plants in France on 1 January 2021, as the technical, economic and governance conditions had been met.
Since then, the provisions related to nuclear production decrease by €1,016 million. This decrease is largely taxed and generated a tax disbursement of €184 million.
The impact of the 50-year depreciation period extension on net income - Group share for this year is +€405 million.

Dividend proposed for 2021: €0.58 per share, or a pay-out rate
of 45%, with the option to pay in new shares

The EDF Board of Directors meeting on 17 February 2022 decided to propose to the General Meeting of Shareholders due to be convened to approve the accounts for the year ending 31 December 2021 on 12 May 2022 (hereinafter the General Meeting) the payment of a dividend of €0.58 per share in respect of 2021, corresponding to a 45% pay-out rate of current net profit⁽⁵⁾.
Taking account of the interim dividend of €0.30 per share paid in December 2021, the balance of the dividend to be paid in respect of 2021 is €0.28 per share for shares with the ordinary dividend and €0.338 per share for shares with the bonus dividend.
Pending approval by the General Meeting in accordance with Article L. 232-18 of the Code of Commerce and Article 25 of the Company’s Articles of Association, the EDF Board of Directors meeting of 17 February 2022 decided to propose to all shareholders the possibility of having the balance of the dividend due for the year ending 31 December 2021 paid in the form of new shares in the Company. If this option is exercised, the new shares will be issued at a price equal to 90% of the average of the first listed prices of the EDF share on the regulated Euronext Paris market over the 20 trading days preceding the General Meeting, less the amount of the balance of the dividend remaining to be paid for the year 2021, all rounded up to the next euro centime. The French State committed to scrip for the dividend relating 2021 year.
The EDF Board of Directors meeting of 17 February 2022 set the terms for settlement of the balance of the dividend for 2021 that shareholders will be asked to approve at the General Meeting:

• detachment of dividends (ordinary and bonus) on 18 May 2022;
• exercise period for the option for payment in new shares from 20 May to 7 June 2022 inclusive ⁽⁶⁾;
• dividend balance payment and settlement and delivery of shares on 13 June 2022.
  
  

Unless they have opted for payment in new shares between 20 May and 7 June 2022 inclusive, shareholders will receive the balance of their dividend in cash on the date of its payment, namely 13 June 2022.

Net income

The financial result totalled €360 million in 2021, up €2,942 million relative to 2020. This change is owing to several factors:

• a strong performance by dedicated assets, up €1,521 million vs 2020
• the decrease in discount expenses charges of €1,063 million, largely owing to a lesser decline in the net discount rate for nuclear provisions in France between 2021 and 2020 than between 2020 and 2019
• a €151 million decline in the cost of gross financial indebtedness, attributable to refinancing operations in an environment of low interest rates.
  
  

Restated for non-recurring items, the recurring financial loss came out at -€2,437 million compared with
-€3,705 million in 2020. In particular, the change in fair value of the dedicated assets portfolio is not included in the calculation of net income excluding non-recurring items.

Net income excluding non-recurring items amounted to €4,717 million at end-2021, up €2,748 million compared with end-2020. This change mainly reflects growth in EBITDA and that of the recurring financial loss in addition to less amortisation, linked to the extended depreciation period for 1,300MW plants.

Net income - Group share amounted to €5,113 million at end-2021, up €4,463 million. Apart from the considerable increase in net income excluding non-recurring items, the change includes the following after-tax items:

• the change in fair value of financial instruments for €1,152 million
• income of €362 million corresponding to a payment as part of an agreement signed between EDF and Areva on 29 June 2021
• additional costs relating to repair work on the main secondary circuit welds at the Flamanville 3 EPR, totalling -€410 million, or an additional charge of -€140 million compare to 2020
• costs related to the planned closure of Dungeness B, amounting to -€366 million. The latter includes the loss of value of the plant and the depreciation of fuel inventories and spare parts as well as the provisioning of penalties due under the capacity mechanism.

Cash flow and net financial debt

Group cash flow stood at -€1,525 million at the end of 2021, a significant improvement on 2020, when it came out at -€2,660 million ⁽⁷⁾. This trend mainly resulted from the strong growth in EBITDA and the amount of asset disposals completed in 2021, for a total €2,847 million.
Conversely, the working capital requirement (WCR) deteriorated by €1,526 million in 2021. The change in the WCR is mainly attributable to the deterioration in the WCR of the optimisation/trading activity and the increase in trade payables in an environment of high prices.
Net investments amounted to €15,725 million, an increase of €1,580 million versus 2020, a year marked by the health crisis.
Cash flow from operations ⁽⁸⁾ amounted to -€213 million, down €874 million compared with 2020.

	31/12/2020	31/12/2021
Net financial debt(9) (in billions of euros)	42.3	43.0
Net financial debt/EBITDA	2.61x	2.39x

Net debt was limited to €43.0 billion on a strong performance in terms of cash EBITDA (+€17.1 billion), completed disposals (+€2.8 billion) and a social hybrid bond issue (+€1.2 billion).

Main Group results by segment

France – Generation and supply activities 

(in millions of euros)	2020	2021	Organic change (%)
Sales (10)	28,361	33,182	17.0
EBITDA	7,412	7,394	-0.3

The net impact on EBITDA of the 25.3TWh increase in nuclear output, combined with the 2.6TWh decline in hydropower output after the deduction of pumped volumes, is estimated at +€1,081 million.

Energy prices had a negative impact on EBITDA estimated at -€1,140 million, outages and extended outages at the end of the year having required purchases on the market at extremely high prices. In contrast, energy buybacks in 2020 were made at low prices.

The impacts on the downstream market were negative and estimated at -€249 million owing to a loss of customers, while capacity prices invoiced to customers had a favourable impact.

Furthermore, EBITDA benefitted from the reduction in production taxes as part of the recovery plan for an estimated €322 million.

France – Regulated activities ⁽¹¹⁾

(in millions of euros)	2020	2021	Organic change (%)
Sales(1)	16,228	17,564	8.2
EBITDA	5,206	5,992	15.1

The substantial increase in EBITDA resulted primarily from an increase in distributed volumes, at 15.8TWh for an estimated €251 million, stemming from colder weather and following the impact of the health crisis in 2020. It also resulted from growth in the grid connection activities, which made a positive contribution to EBITDA for an estimated €159 million.

The trend in prices had a positive effect estimated at €30 million, mainly owing to the positive trend in the TURPE ⁽¹²⁾ indexation despite the negative effect of loss purchases against a backdrop of strong price increases on the market.

Furthermore, EBITDA benefitted from a €130 million reduction in production taxes as part of the recovery plan.

Renewable energies

EDF Renewables

(in millions of euros)	2020	2021	Organic change (%)
Sales (13)	1,582	1,767	12.3
EBITDA	848	815	-3.7
of which production EBITDA	904	877	- 3.1

The extreme cold snap in Texas in the first quarter had a significant negative impact on production EBITDA estimated at -€95 million. EDF Renewables was obliged to buy back energy at very high prices to meet its contractual commitments and had to book an impairment for one of its fleet assets, leading to a negative impact on net income.

The production EBITDA also benefits from an increase (+ 1.6 TWh) in volumes produced thanks to the capacities commissioned.

“Development & Sale of Structured Assets” made a favourable contribution to EBITDA, notably owing to disposals in the United States and Portugal.

Development costs increased, supporting the 27% growth in the portfolio of wind and solar projects of 73GW.

Group renewables excl. hydro France ⁽¹⁴⁾

(in millions of euros)	2020	2021	Change (%)	Organic change (%)
Sales (1)(2)	2,304	2,848	23.6	24.1
EBITDA	1,331	1,279	-3.9	-4.1
Net investments	-1,010	-1,351	33.8	-

EBITDA was impacted by the extreme cold snap in Texas in the first quarter. It was also adversely affected by the dip in wind generation in Belgium owing to unfavourable wind conditions. However, EBITDA benefited from an improved contribution of Edison wind generation in a favourable price environment.

Net investments rose slightly due in particular to the acquisition of 70% of E2i (Edison renewables platform) in 2021.

Energy Services

Dalkia

(in millions of euros)	2020	2021	Organic change (%)
Sales(15)	4,212	5,196	23.9
EBITDA	290	378	31.7

The strong EBITDA growth can be attributed primarily to the recovery in services and works following a first-half 2020 negatively impacted by the closure of numerous customer sites, the postponement of construction projects, and continued gains in performance in heating and cooling networks. It is also explained by a very good rebound in the works and energy efficiency activities in the UK.

Sales development remained strong, particularly in greening and operation and maintenance of heating networks, with contracts won in Issoire, Puteaux and Monplaisir (Angers) for exemple.

Group Energy Services ⁽¹⁶⁾

(in millions of euros)	2020	2021	Change (%)	Organic change (%)
Sales(1)	5,541	6,796	22.6	22.7
EBITDA	318	441	38.7	38.4
Net investments	- 438	- 447	2.0	-

The organic growth posted at Group level by Energy Services can be attributed to the recovery in business at Dalkia and Edison after the slowdown linked to the health crisis in 2020 and to the development of customer services in France.

Framatome 

(in millions of euros)	2020	2021	Organic change (%)
Sales(17)	3,295	3,362	1.9
EBITDA(18)	534	584	11.4
EBITDA EDF Group contribution	271	310	18.5

EBITDA rose sharply as a result of brisk activity at “Fuel” and “Primary Component” production plants and the lesser impact of the health crisis.

The “Installed base” activity, mainly in North America and France, also contributed favourably to EBITDA.

The action plan on structural costs also continues to contribute to EBITDA. 

Order intake amounted to around €3.7 billion at end-2021⁽¹⁹⁾, an improvement relative to 2020.

Framatome is developing its engineering expertise and expanding its Instrumentation and Control (I&C) capabilities with the acquisition of the I&C activity of Rolls-Royce ⁽²⁰⁾.

United Kingdom

(in millions of euros)	2020	2021	Organic change (%)
Sales (21)	9,041	10,114	8.4
EBITDA	823	- 21	-108.0

The extremely sharp decrease in EBITDA resulted mainly from a 4TWh downturn in nuclear output for an estimated -€198 million and from a substantial decrease in realised nuclear prices (-£12.6/MWh) stemming from a considerable volume of buybacks at high market prices, estimated at -€550 million.

Downstream activity was also impacted by the energy crisis in the United Kingdom. In particular, the contribution of the residential customer segment decreased as the rise in energy prices was not fully passed in 2021 on to customers with capped prices.

The acquisition of Green Network Energy’s customers on the one hand, the integration of Utility Point and Zog Energy clients’portfolio in accordance with the supplier of last-resort mechanism on the other hand, have required additional purchases.

Business in the industrial and commercial segment increased relative to 2020, the latter having been adversely affected by the health crisis.

Italy 

(in millions of euros)	2020	2021	Organic change (%)
Sales (1)	5,967	11,212	88.1
EBITDA	683	1,046	52.9

The electricity activities reported EBITDA growth, in particular thanks to the improved use of combined cycle gas turbines and of ancillary services in an environment of highly volatile market prices. The contribution from renewable energy generation also increased, especially wind power, against a backdrop of high prices.

Gas business benefited from the capital gain generated from the disposal of Infrastrutture Distribuzione Gas (IDG), the surge in activity (impact of the health crisis) in the industrial customer segments and a colder weather in 2021 than in 2020.

Ebitda also benefited from the growth of the services activities.

Other notable developments included the entry of a new financial partner, which acquired a 49% stake, in renewables platform: the aim being to develop new generation capacities.

Other international

(in millions of euros)	2020	2021	Organic change (%)
Sales(22)	2,420	3,353	28.1
EBITDA	380	267	-22.9
of which Belgium	247	125	-42.9
of which Brazil	115	143	32.2

In Belgium ⁽²³⁾, the decline in EBITDA resulted primarily from reduced wind farm production, linked to less favourable wind conditions compared with 2020, and purchases at high prices, particularly at the end of the year.

Net installed wind capacity increased to 591MW ⁽²⁴⁾, up 7.8% compared with end-2020. Nuclear output is increasing. The improved availability of thermal plants helped to increase the services provided to the electric system.

After the slowdown in 2020 owing to the health crisis, service activities returned to growth and downstream activities held up well against a backdrop that continued to suffer from intense competition and extensions to social tariffs.

Luminus finalised the acquisition of around 330,000 customers from Essent Belgium, the Belgian gas and electricity supplier ⁽²⁵⁾.

In Brazil, EBITDA increased in organic terms thanks to the increase in the price of the Power Purchase Agreement (PPA) relating to the EDF Norte Fluminense plant, by 28% in November 2020 and 7% in November 2021, as well as sales at high prices on the spot market.

        

Other activities

(in millions of euros)	2020	2021	Organic change (%)
Sales(26)	2,127	3,905	84.2
EBITDA	261	1,824	x7
of which gas activities	- 455	426	n.a
of which EDF Trading	633	1,200	89.6

The increased EBITDA of gas activities resulted mainly from the revaluation of long-term contracts (with no cash effect) in line with the substantial improvement in medium- and long-term USA-Europe spreads and an improvement in the operational margins of the Group’s gas businesses.

EDF Trading posted EBITDA of €1,200 million, up an organic 89.6% relative to 2020. This was an outstanding performance given the extreme volatility on the commodities markets.

The trend was also underpinned by the sale of real estate in France.

Main subsequent events ⁽²⁷⁾
after the third-quarter 2021 press release

Nuclear

• EDF updated its 2023 French nuclear output estimate (see 11 February 2022 press release).
• EDF Signed an Exclusive Agreement to Acquire Part of GE Steam Power’s Nuclear Activities (see 10 February 2022 press release).
• EDF adjusted its nuclear output estimates for France for 2022 (see 7 February 2022 press release).
• Exceptional measures announced by the French government (see 13 January 2022 press release).
• EDF updated its nuclear output estimates for France for 2022 (see 13 January 2022 press release).
• Review of the EPR at Flamanville (see 12 January 2022 press release).
• Nuclear reactors at Civaux and Chooz: replacements and preventive controls of parts of the piping of a safety system (see 15 December 2021 press release).
• EDF announced the creation of the International NUWARD™ Advisory Board (INAB), tasked with supplying advice on the development of the NUWARD™ small modular reactor (SMR) (see 2 December 2021 press release).
• EDF reasserted the role played by nuclear power in the ecological transition and announced the signature of several cooperation agreements at the World Nuclear Exhibition (see 1 December 2021 press release).
  
  

Renewables ⁽²⁸⁾

• EDF Renewables won a contract in Peru on the combined production and storage of solar electricity to supply the microgrid of the largest city in the world not connected to a power grid (see 16 December 2021 press release).
• The EDF Group announced the commissioning of the DONGTAI V offshore wind farm in China (see 9 December 2021 press release).
• Le Grand Belfort, in partnership with Hynamics, SMTC and RTTB, signed its first renewable hydrogen contract with a view to decarbonising public transport (see 3 December 2021 press release).
• EDF renewables commissioned the Dijon-Valmy solar plant in Bourgogne-Franche-Comté (see 25 November 2021 press release).

EDF Energy ⁽²⁹⁾

• Pivot Power initiated construction work on a battery storage site in the West Midlands to support a smarter and more flexible grid (see 7 December 2021 press release).
• EDF was selected by energy regulator OFGEM to service and supply the customers of Zog Energy Limited (see 3 December 2021 press release).
• EDF signed the largest agreement on offshore wind farms with RWE (see 30 November 2021 press release).
  
  

Sustainable financing

• EDF announced the signature of a new credit facility indexed on social indicators and syndicated with nine banks (see 23 December 2021 press release).
• EDF announced the success of its senior green bond issue for a nominal amount of €1.75 billion (see 23 November 2021 press release).

Edison ⁽³⁰⁾

• Edison: completion of an agreement with Crédit Agricole Assurances to step up the development of renewable energies in Italy (see 14 December 2021 press release).
• A university and three businesses (Edison, Eni and Snam) joined forces to carry out research on hydrogen, a vital resource in the fight against climate change (see 30 November 2021 press release).
• Edison and Crédit Agricole CIB implemented the first sustainable securitisation transaction in Italy (see 12 November 2021 press release).
  
  

Framatome ⁽³¹⁾

• Framatome and the Hungarian Ministry for Innovation and Technology joined forces for the future of nuclear energy (see 22 December 2021 press release).
• Framatome and Rosatom signed a long-term cooperation agreement (see 2 December 2021 press release).

Other

• A consortium comprising EDF, KEPCO and Kyushu Electric Power Co. won a power transmission contract with ADNOC and TAQA in the United Arab Emirates (see 23 December 2021 press release).
• EDF transferred real estate in Ile-de-France to a joint venture with Powerhouse Habitat (see 16 December 2021 press release).
• Result of the option for the payment of the interim dividend in shares in respect of 2021 (see 30 November 2021 press release).
• EDF will no longer request power cuts for its retail customers (see 12 November 2021 press release).

APPENDICES

Consolidated income statement

(in millions of euros)		2021	2020
Sales		84,461	69,031
Fuel and energy expenses		(44,299)	(32,425)
Other external expenses (1)		(8,595)	(8,461)
Personnel expenses		(14,494)	(13,957)
Taxes other than income taxes		(3,330)	(3,797)
Other operating income and expenses		4,262	5,783
Operating profit before depreciation and amortisation		18,005	16,174
Net changes in fair value on energy and commodity derivatives, excluding trading activities		(215)	(175)
Net depreciation and amortisation (2)		(10,789)	(10,838)
(Impairment)/reversals		(653)	(799)
Other income and expenses		(1,123)	(487)
Operating profit		5,225	3,875
Cost of gross financial indebtedness		(1,459)	(1,610)
Discount effect		(2,670)	(3,733)
Other financial income and expenses		4,489	2,761
Financial result		360	(2,582)
Income before taxes of consolidated companies		5,585	1,293
Income taxes		(1,400)	(945)
Share in net income attributable of associates and joint ventures		644	425
Net income of discontinued operations		(1)	(158)
CONSOLIDATED NET INCOME		4,828	615
EDF net income		5,113	650
EDF net income – continuing operations		5,114	804
EDF net income – discontinued operations		(1)	(154)
Net income attributable to non-controlling interests		(285)	(35)
Net income attributable to non-controlling interests – continuing operations		(285)	(31)
Net income attributable to non-controlling interests – discontinued operations		-	(4)
Earnings per share (EDF share) in euros:
Basic earnings per share		1.46	0.05
Diluted earnings per share		1.36	0.05
Earnings per share of continuing operations		1.46	0.10
Diluted earnings per share of continuing operations		1.36	0.10

(1)   Other external expenses are reported net of capitalised production costs.

(2)   Including net increases in provisions for renewal of property, plant and equipment operated under concessions.

Consolidated balance sheet

ASSETS (in millions of euros)		31/12/2021	31/12/2020
Goodwill		10,945	10,265
Other intangible assets		10,221	9,583
Property, plant and equipment operated under French public electricity distribution concessions		98,237	92,600
Property, plant and equipment operated under concessions for other activities		62,132	60,352
Property, plant and equipment used in generation and other tangible assets owned by the Group, including right-of-use assets		6,881	6,858
Investments in associates and joint ventures		8,084	6,794
Non-current financial assets		55,609	47,615
Other non-current receivables		2,092	2,015
Deferred tax assets		1,667	1,150
Non-current assets		255,868	237,232
Inventories		16,197	14,738
Trade receivables		22,235	14,521
Current financial assets		39,937	23,532
Current tax assets		544	384
Other current receivables		16,197	6,918
Cash and cash equivalents		9,919	6,270
Current assets		105,029	66,363
Assets held for sale		69	2,296
TOTAL ASSETS		360,966	305,891
EQUITY AND LIABILITIES (in millions of euros)		31/12/2021	31/12/2020
Capital		1,619	1,550
EDF net income and consolidated reserves		48,592	44,083
Equity (EDF share)		50,211	45,633
Equity (non-controlling interests)		11,778	9,593
Total equity		61,989	55,226
Provisions related to nuclear output - back-end of the nuclear cycle, plant decommissioning and last cores		62,067	58,333
Provisions for employee benefits		21,716	22,130
Other provisions		5,442	5,374
Non-current provisions		89,225	85,837
Special French public electricity distribution concession liabilities		48,853	48,420
Non-current financial liabilities		56,543	55,899
Other non-current liabilities		4,816	4,874
Deferred tax liabilities		2,401	3,115
Non-current liabilities		201,838	198,145
Current provisions		6,836	5,827
Trade payables		19,565	11,900
Current financial liabilities		45,014	17,609
Current tax liabilities		446	215
Other current liabilities		25,248	16,861
Current liabilities		97,109	52,412
Liabilities related to assets held for sale		30	108
TOTAL EQUITY AND LIABILITIES		360,966	305,891

Consolidated cash flow statement

(in millions of euros)		2021	2020
Operating activities:
Consolidated net income		4,828	615
Income of discontinued operations		(1)	(158)
Income of consolidated companies		4,829	773
Impairment/(reversals)		653	799
Accumulated depreciation and amortisation, provisions and changes in fair value		10,488	13,310
Financial income and expenses		(89)	785
Dividends received from associates and joint ventures		467	433
Capital gains/losses		(67)	(185)
Income taxes		1,401	945
Share in net income of associates and joint ventures		(644)	(425)
Change in working capital		(1,526)	(1,679)
Net cash flow from operations		15,512	14,756
Net financial expenses disbursed		(588)	(929)
Income taxes paid		(2,276)	(983)
Net cash flow from continuing operating activities		12,648	12,844
Net cash flow from operating activities relating to discontinued operations		-	98
Net cash flow from operating activities		12,648	12,942
Investment subsidies:
Acquisitions of equity investments, net of cash acquired		(165)	(126)
Disposals of equity investments, net of cash transferred		1,154	498
Investments in intangible assets and property, plant and equipment		(17,606)	(16,007)
Net proceeds from sale of intangible assets and property, plant and equipment		264	54
Changes in financial assets		1,776	2,718
Net cash flow from continuing investing activities		(14,577)	(12,863)
Net cash flow from investing activities relating to discontinued operations		-	(104)
Net cash flow from investing activities		(14,577)	(12,967)
Financing activities:
Transactions with non-controlling interests(1)		2,076	1,019
Dividends paid by parent company		(84)	-
Dividends paid to non-controlling interests		(163)	(267)
Purchases/sales of treasury shares		(3)	5
Cash flows with shareholders		1,826	757
Issuance of borrowings		6,943	6,601
Repayment of borrowings		(5,161)	(7,062)
Issuance of perpetual subordinated bonds		1,235	2,243
Payments to bearers of perpetual subordinated bonds		(547)	(501)
Funding contributions received for assets operated under concessions		677	534
Other cash flows from financing activities		3,147	1,815
Net cash flow from continuing financing activities		4,973	2,572
Net cash flow from financing activities relating to discontinued operation		-	19
Net cash flow from financing activities		4,973	2,591
Net cash flow from continuing operations		3,044	2,553
Net cash flow from discontinued operations		-	13
Net increase/(decrease) in cash and cash equivalents		3,044	2,566
CASH AND CASH EQUIVALENTS – OPENING BALANCE		6,270	3,934
Net increase/(decrease) in cash and cash equivalents		3,044	2,566
Effect of currency fluctuations		180	(162)
Financial income on cash and cash equivalents		38	35
Other non-monetary changes (3)		387	(103)
CASH AND CASH EQUIVALENTS – CLOSING BALANCE		9,919	6,270

(1) The published figures for the 2020 financial year include the reclassification of €79 million between “net financial expenses disbursed” and “changes in financial assets”.
(2) Contributions via capital increases, or capital reductions and acquisitions of additional interests or disposals of interests in controlled companies. In 2021, this item included €1,304 million related to CGN’s payment for the NNB Holding Ltd. (for Hinkley Point C project) and Sizewell C Holding Co, €865 million related to the sales of 49% of Edison Renewables, and €(276) million related to the acquisition of 70% of E2i Energie Speciali. In 2020, this item included an amount of €998 million relating to CGN’s payment for the capital increases by NNB Holding Ltd. (for the Hinkley Point project) and Sizewell C Holding Co.

(3) Other non-monetary changes include the 1 January 2021 reclassification of debit positions relating to margin calls on derivatives, previously netted within other financial liabilities for an amount of €281 million.        

As a key player in the energy transition, the EDF Group is an integrated energy company, active in all businesses: generation, transmission, distribution, energy trading, energy sales and energy services. EDF Group is a world leader in low-carbon energy, having developed a diverse production mix based mainly on nuclear and renewable energy (including hydropower). It is also investing in new technologies to support the energy transition. EDF’s 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 Group is involved in supplying energy and services to approximately 38.5 million customers (1), of whom 28.0 million in France(2). It generated consolidated sales of €84.5 billion in 2021. EDF is listed on the Paris Stock Exchange.

(1)   Since 2018, customers are counted per delivery site. A customer can have two delivery points: one for electricity and another for gas.
(2)   Including ÉS (Électricité de Strasbourg).

This presentation is for information purposes only and does not constitute an offer or solicitation to sell or buy instruments, part of the company or the assets described here, in the US or any other country.
The present document may contain forward-looking statements and targets concerning the Group’s strategy, financial position or results. While EDF believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions at the time they were made, these assumptions are fundamentally uncertain and imply a certain amount of risk and uncertainty which is beyond the control of EDF. As a result, EDF cannot guarantee that these assumptions will materialise. Future events and actual financial and other outcomes may differ materially from the assumptions used in these forward-looking statements, including, and not limited to, potential timing differences and the completion of transactions described therein.
Risks and uncertainties (notably linked to the economic, financial, competition, regulatory and climate backdrop) may include changes in economic and business trends, regulations, as well as those described or identified in the publicly-available documents filed by EDF with the French financial markets authority (AMF), including those presented in Section 2.2 “Risks to which the Group is exposed” of the EDF Universal Registration Document (URD) filed with the AMF on 15 March 2021 (under number D.21-0121), which may be consulted on the AMF website at www.amf-france.org or on the EDF website at www.edf.fr as well as the financial report as of 31 December 2021, which is also available on the EDF 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.

This press release is certified. Its authenticity can be checked on medias.edf.com

Only print this message if absolutely necessary.     EDF SA 22-30, avenue de Wagram 75382 Paris cedex 08 Share capital of €1,619,338,374 552 081 317 R.C.S. Paris   www.edf.fr		CONTACTS   Press: +33 (0) 1 40 42 46 37   Analysts and investors: +33 (0) 1 40 42 40 38

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(1) Hydro output excluding French island activities before deduction of the consumption of pumped volumes. After deduction of combined pumped-storage hydropower volumes, hydropower output stood at 35.9TWh in 2021 (38.5TWh in 2020).
(2) Sum of personnel expenses and other external expenses. At constant scope, accounting standards, exchange and pensions 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 (Standard and Poor’s definition).
(4) Net economic debt according to Standard and Poor’s definition.
(5) Adjusted for the remuneration of hybrid bonds booked as equity. 
(6) Subsequent to regulatory changes and the harmonisation of European standards on the payment process for optional dividends, the date of the end of the option period may vary from one financial intermediary to the next. For pure registered shareholders, BNP Paribas Securities Services, as the institution in charge of the securities service of the EDF company, has set this date at 3 June 2022 at the latest in order to supervise and centralise the responses of pure registered shareholders.

(7) Restated data: 2020 pro forma data includes the reclassification of Linky and HPC investments as net investments, and a reclassification between “Disbursed financial expenses” of +€79 million “Other non-monetary changes” of -€49 million and “Dedicated assets” of -€30 million.
(8) Cash flow generated by operations is not an aggregate defined by IFRS as a measure of financial performance, and is not directly comparable with indicators of the same name reported by other companies. This indicator, also known as Funds from Operations (“FFO”), incorporates net cash flow from operations, change in WCR after adjustment where relevant for the impact of non-recurring effects, net investments (excluding 2020-2021 disposals, Hinkley Point C and Linky), as well as other items including dividends received from associates and joint ventures.
(9) Net financial debt is not determined by accounting standards and is not directly visible in the Group’s consolidated balance sheet. It corresponds to loans and financial debt less cash and cash equivalents as well as liquid assets. Liquid assets are financial assets made up of funds or securities with an initial maturity of more than three months, easily convertible into cash, and managed under the framework of a liquidity target.
(10) Breakdown of sales across the segments before inter-segment eliminations.
(11) Regulated activities include Enedis, Électricité de Strasbourg and French islands electrical activities.
(12) Indexation of TURPE 5 Distribution of +2.75% and TURPE 5 Transport of -1.08% at 1 August 2020 and TURPE 6 Distribution of +0.91% and TURPE 5 Transport of +1.09% at 1 August 2021.

(13) Breakdown of sales across the segments before inter-segment eliminations.
(14) Hydro France EBITDA totalled €3,221m in 2021 and €531m in 2020. For the renewable energy generation activities optimised as part of a broader portfolio of generation assets, in particular relating to the French hydro fleet after deduction of pumped volumes, sales and EBITDA are estimated, by convention, as the valuation of the output generated at spot market prices (or at purchase obligation tariff) without taking into account hedging effects, and include the valuation of the capacity, if applicable.
(15) Breakdown of sales across the segments before inter-segment eliminations.
(16) Group Energy Services comprise Dalkia, Dalkia Electrotechnics, CHAM, SOWEE, IZI Solutions, IZI Solutions Renov, Izivia, EDEV, EDF China Holding, EDF Pulse Croissance and the 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.
.

(17) Breakdown of sales across the segments before inter-segment eliminations.
(18) Breakdown of EBITDA across the segments, before inter-segment eliminations.
(19) At Framatome scope.
(20) See press release 8 November 2021 press release.
(21) Breakdown of sales across the segments before inter-segment eliminations.
(22) Breakdown of sales across the segments before inter-segment eliminations.
(23) Luminus and EDF Belgium.
(24) Net capacity for Luminus. Gross installed wind capacity totalled 658MW at end-2021 (+11.9%).
(25) See the Luminus press release of 3 May 2021.
(26) Breakdown of sales across the segments before inter-segment eliminations.
(27) The full list of press releases is available on our website: www.edf.fr
(28) The full list of press releases is available on our website: www.edf-renouvelables.com
(29) The full list of press releases is available on our website: www.edfenergy.com
(30) A full list of Edison’s press releases is available on the website: www.edison.it
(31) The full list of press releases is available on our website: www.framatome.com

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(1) Organic change at comparable scope, standards and exchange rates vs 2020.
(2)   Net income excluding non-recurring items is not defined by IFRS, and is not readable directly in the consolidated income statement. It corresponds to net income excluding non-recurring items and net changes in fair value on Energy and Commodity derivatives, excluding trading activities, and excluding net changes in fair value of debt and equity securities, net of tax.
(3) The French State committed to scrip for the dividend relating 2021 year.
(4) According to the complementary delegated act of 02/02/2022 subject to definitive adoption in 2022.
(5) See 12 January 2022 press release. Cost in 2015 euros and excluding interest during the construction period.
(6) See 10 February 2022 press release.
(7) Purchase of remaining shares of the E2i holding company and investment by a new financial partner. Edison retains control over the new platform.
(8) See 13 January 2022 press release.
(9)  ARENH: Regulated access to historic nuclear power. Attribution of an additional 20TWh for the period from 1 April 2022 to 31 December 2022 at €46.2/MWh.
(10) For residential regulated tariffs customers and “blue professionals” and for all customers (both residentials and professionals) located in the non-interconnected zones (ZNIs).
(11) See 13 January 2022, 7 and 11 February 2022 press releases.
(12) This amount includes an estimate of the impact of the tariff postponement on the 2022 cashflow amounting to approximately €1.5bn, based on market prices at 31 December 2021.
(13) Based on the assumption of 2022 forward prices at 31 December 2021.
(14) See 13 January 2022 press release "Exceptional measures announced by the French government".
(15) Based on, purely for illustrative purposes, a reference share price of €8 per share and a discount in line with market practice.
(16) Target payout ratio of net income excluding non-recurring items (adjusted for the remuneration of hybrid bonds accounted for in equity) for 2022 and 2023 of 45-50%.
(17) Signed or completed disposals: impact on the Group’s economic debt reduction (S&P definition).
(18) Based on scope and exchange rates at 01/01/2022. At stable regulatory environment (ARENH ceiling at 100TWh), with the assumption of 31 December 2021 forward prices for 2023, and considering an assumption of French nuclear output for 2022 and 2023 as announced in the press releases of 7 and 11 February 2022.
(19) As per current S&P methodology.

Attachment

• PR FY1 2021 - Version DEF