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PRESS RELEASE
16 February 2018 |
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2017 annual
results
2017 financial targets achieved. 2018 targets
confirmed
Performance plan in advance
2017 key figures |
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Highlights |
EBITDA €13.7bn
-14.8% organic[1]
-10.0% excluding regulated tariff adjustment[2] in
France |
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-
Strengthening of the balance
sheet and deployment of the performance plan
-
Capital increase and 2015-2017 dividends in
shares: ~€9bn;
-
Asset disposals of €6.2bn over 2017 fiscal year:
80% of the
2015-2020 target reached at the half-way mark (i.e. €8.1bn);
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Reduction of Opex7 and optimisation of the WCR:
targets reached one year early.
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Acceleration in wind and solar
energy
-
Growth in net installed capacity (+23%, i.e.
+1.6GW)[3] to 8.8GW,
and in generated electricity (+13% to 13.8TWh)[4];
-
EDF EN's portfolio of projects under
construction: 1.9GW gross;
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EDF EN's pipeline: 22.5GW (+22%);
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Acquisition of Futuren (onshore wind power) and
OWS (maintenance in offshore wind power);
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EDF's Solar Plan in France: 30GW over the period
2020-2035.
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Strategic priorities
confirmed
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Signing of the acquisition of Gas Natural
Vendita Italia in Italy (expected closing date at the end of
February 2018) and acquisition of Imtech in the United
Kingdom;
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Commercial offensive: new offers "Vert
Electrique" and rapid adjustment of commercial costs in a context
of heightened competition in France.
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Strengthening of the French
nuclear industry
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Acquisition of Framatome - refocused as a
designer & supplier of nuclear steam supply systems;
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Resumption of the manufacturing of forged
components at the Creusot site approved by the ASN;
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Creation of Edvance: bringing together of EDF
and Framatome's engineering teams in order to improve efficiency
and increase competitiveness;
-
Progress on track on the Flamanville 3
project.
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First political and regulatory
changes
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Implementation of the capacity market in France
in 2017 and authorisation received by the European Commission in
Italy and in Belgium in 2018;
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Simplification announced of the regulatory
framework for the development of renewable energies in
France;
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Reform of the European Union's CO2
emissions trading (scheme ETS);
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In France, postponement of the 2025 target on
reducing the share of nuclear power ahead of the PPE (multi-year
energy plan).
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Net income excluding non-recurring
items[5]
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€2.8bn
-31.0% |
Net income - Group share |
€3.2bn
+11.3% |
Net financial
debt[6]
€33.0bn
Net financial debt/EBITDA 2.4x
Proposed dividend for 2017: €0.46/share
i.e. a payout ratio of 60% |
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Electricity Output
Nuclear France: 379.1TWh
Nuclear United Kingdom: 63.9TWh
Hydropower France: 37.1TWh
EDF Énergies Nouvelles: 12.6TWh |
-1.3%
-1.8%
-12.5%
+10.9% |
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Performance
plan
Operating expenses[7]
-€0.7bn compared to 2015
initial target reached one year early
WCR optimisation plan €1.9bn compared to 2015
target exceeded one year early
Assets disposal plan realised (2015-2017) ~€8.1bn[8]
more than 80% of target reached at the half-way mark
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2018 targets confirmed
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Operating expenses7: -€0.8bn compared to
2015
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EBITDA[9]:
€14.6 - 15.3bn
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Cash flow9,[10]
excluding Linky[11], new
developments and 2015-20 assets disposal plan: ~0
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Assets disposal plan since 2015
~€10bn[12]
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Net investments excluding Linky11, new
developments and 2015-20 assets disposal plan: ~€11bn
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Total net investments excluding acquisitions and
2015-20 assets disposal plan <= €15bn
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Net financial debt/EBITDA9:
<= 2.7x
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Target payout ratio of net income excluding
non-recurring items[13]:
50%
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EDF's Board of Directors meeting
on 15 February 2018, under the chairmanship of Jean-Bernard Lévy,
approved the consolidated financial statements at 31 December
2017.
Jean-Bernard Lévy, EDF's Chairman
and CEO, stated: "In line
with our forecasts, the 2017 results demonstrate EDF's solidity,
once again profitable, in a difficult market context. Continuing
the deployment of its CAP 2030 strategy and the successful
execution of its performance plan, the Group strengthened its
balance sheet and reduced its financial debt by €4.4bn in 2017. We
are beginning an unprecedented acceleration in renewable energies
with the launch of EDF's Solar Plan, at the same time that we are
strengthening our commercial initiatives. Supported by our staff
dedicated to working in the service of the energy transition and by
a newly reorganized nuclear industry, EDF now enjoys a solid basis
to achieve the rebound expected in 2018."
Change in EDF
group's results
(in millions of Euros) |
2016 |
2017 |
Change
(%) |
Organic change
(%)1 |
Organic change (%)
Excluding tariff adjustment2 in
France |
Sales |
71,203 |
69,632 |
-2.2 |
-1.0 |
+0.4 |
EBITDA |
16,414 |
13,742 |
-16.3 |
-14.8 |
-10.0 |
EBIT |
7,514 |
5,637 |
-25.0 |
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Net income - Group share |
2,851 |
3,173 |
+11.3 |
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Net income excluding non-recurring
items3 |
4,085 |
2,820 |
-31.0 |
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Change in EDF
group's EBITDA
(in millions of Euros) |
2016 |
2017 |
Organic change (%)1 |
Organic change (%)
Excluding tariff adjustment2 in
France |
France -
Generation and supply activities |
6,156 |
4,876 |
-20.8 |
-7.9 |
France -
Regulated activities |
5,102 |
4,898 |
-4.0 |
-3.8 |
United
Kingdom |
1,713 |
1,035 |
-33.3 |
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Italy |
641 |
910 |
+42.1 |
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Other
activities |
2,091 |
1,566 |
-24.7 |
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of which EDF Énergies Nouvelles |
861 |
751 |
-14.8 |
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of which Dalkia |
252 |
259 |
-1.6 |
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of which EDF Trading Group |
729 |
358 |
-46.8 |
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Other
international |
711 |
457 |
-17.9 |
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Total Group |
16,414 |
13,742 |
-14.8 |
-10.0 |
The results of the 2017 fiscal
year are in line with expectations, despite the decline in nuclear
and hydropower output in France and the unfavourable price
conditions in almost all geographic areas where the Group is
active. Actions undertaken to optimize operations and accelerate
cost reductions have helped generate an EBITDA of €13.7 billion, in
line with the initial targets.
EBITDA for the France - Generation and supply activities segment
amounted to €4,876 million. Restated for the impact of the tariff
adjustment[14], which
took place in 2016, EBITDA was down 7.9% in organic terms. This
change is mainly due to the decline in nuclear and hydropower
output, to the impact of the purchases of the volumes required to
cover the ARENH subscriptions in a tense market environment, and,
to a lesser extent, to the unfavourable conditions in the
downstream market.
EBITDA for France - Regulated
activities[15] amounted
to €4,898 million. Restated for the impact of the tariff
adjustment14 which took
place in 2016, EBITDA was down 3.8% in organic terms. This change
is attributable to the downward trend in volumes delivered by
Enedis, the impact of storms and hurricanes and the positive
factors in 2016 that had no equivalent in 2017.
In the United Kingdom, EBITDA was
down 33.3% in organic terms to €1,035 million, mainly due to the
significant impact of lower realised nuclear prices.
In Italy, EBITDA recorded an
organic increase of 42.1% to €910 million due in particular to
favourable trends in electricity sale prices and to the
optimisation of the gas-fired generation fleet. The performance of
the exploration-production activities for hydrocarbons, in a
context of higher Brent oil and gas prices and higher output after
a new platform came online, also contributed to this positive
development in EBITDA.
EDF Énergies Nouvelles'
performance benefitted from an 11% increase in renewable power
output in connection with an increase of 1.6GW in net installed
capacities to 7.8 GW. EBITDA stood at €751 million, down
14.8 % in organic terms, due to lower asset rotation activity
than in 2016. EBITDA from generation rose by 8.5% organically to
€741 million.
EBITDA for the Other international
segment stood at €457 million, an organic decrease of 17.9%,
attributable essentially to the drop in electricity prices and to
lower power generation in Belgium. The unfavourable revision of the
index of the price of the Power Purchase Agreement in Brazil also
contributed to the decrease.
Operating
performance
In France, nuclear output stood at
379.1TWh, a decrease of -1.3% (4.9TWh) compared to 2016.
In 2017, nuclear generation was
affected by technical unavailabilities (in particular the extended
unplanned outages at Flamanville 1 and Cattenom 1) and by the
extension of outages to conduct maintenance work on several
reactors. The provisional shutdown of the four Tricastin reactors,
as requested by the ASN, also led to a drop in output of 6TWh over
the final quarter.
Hydropower output stood at
37.1TWh[16], down by
5.3TWh from 2016 due to particularly unfavourable hydrological
conditions, 2017 being the driest year since 2011.
Dispatch of thermal generation
facilities increased in relation with lower nuclear and hydro
output. Their output, up 4.1TWh compared to 2016, reached
16.1TWh.
In the United Kingdom, nuclear
output stood at 63.9TWh, confirming the good operating performance
by the fleet. The slight decrease of 1.2TWh compared to the record
high level in 2016, was due in particular to a low level of planned
outages in 2016 and to the extended outage at Sizewell B at the end
of 2017.
EDF Énergies Nouvelles output
reached 12.6TWh, an increase of 11% over 2016.
In France, heightened competition
led to a drop in market share of residential customers to 85.5%,
representing a net loss of around one million customers. Market
share in the business customers segment held up more robustly, and
now stands at 64.6%, thanks in particular to the winning back of
previous customers. The EDF group has put into place a response
plan with the launching of new offers (in particular the "Vert
électrique") and the rapid adjustment of commercial costs. In
Europe, the Group is resisting well in the residential customers
segment, in particular in the United Kingdom, Belgium and Italy,
where the acquisition currently in progress of GNVI will provide a
growth driver starting in 2018.
Dalkia's sales growth (+6.1% in
organic change) was notably driven by the development of activities
in heating and cooling networks, new contracts in the industry and
abroad, and the acquisition of Imtech in the United Kingdom.
Moreover, the share of renewable and recovery energies in the
energy mix represents 37%, i.e. +8% compared to 2016. Citelum
signed numerous agreements in 2017, notably with the city of Dijon,
Mexico City and the city of Albuquerque. Fenice renewed its
agreement with Fiat for five years, renewable one time.
Net income
The financial result was up by
€1,097 million compared to 2016, thanks in particular to an
increase in capital gains on the sales of dedicated assets and to
lower unwinding costs attributable primarily to a decrease in the
discount rate on nuclear provisions in France at 31 December 2017
compared to the preceding financial year-end (-0.1% in the real
rate), which was less marked than the decrease recorded at 31
December 2016 (-0.2%).
Net income excluding non-recurring
items stood at €2,820 million in 2017, down by 31.0% from 2016.
This includes the drop in EBITDA, which was partially offset by the
improvement of the financial result and by the drop in corporate
income tax.
The Group's share of net income
totalled €3,173 million in 2017, up €322 million compared to 2016
(+11.3%), thanks in particular to the positive effect of the
capital gain recorded for the sale of 49.9% of CTE[17].
Performance plan
in advance
2017 was marked by the significant
progress made in the deployment of the performance plan announced
in April 2016. Firstly, operating expenses[18] were
reduced by €431 million in 2017 compared to 2016, i.e. a cumulative
reduction of approximately €706 million between 2015 and 2017. All
segments contributed to this financial result, with, in particular,
a decrease in 2017 of 5.2% in operating expenses in the France -
Generation and supply activities segment, notably thanks to a
decrease in costs for support functions and to the adjustment of
the costs of the commercial functions. Italy recorded a drop of
4.1%, and Belgium 3.0%.
Optimisation plans had a positive
impact of €431 million on the working capital requirement in 2017,
representing a cumulated optimisation of €1.9 billion over the
period 2015-2017, which allowed the target to be exceeded one year
early.
The disposal plan was carried out
with success, with €8.1 billion in disposals over the 2015-2017
period, i.e. more than 80% of the 2020 target has been reached at
the half-way point.
Proposed dividend
for 2017: €0.46/share, i.e. a payout ratio of 60%
with an option of payment in new shares
At its 15 February 2018 meeting,
EDF's Board of Directors decided to propose the payment of a €0.46
per share dividend for the 2017 fiscal year at the General
shareholder's meeting of 15 May 2018. This would correspond to a
payout ratio of 60% of net income excluding non-recurring
items[19].
When subtracting the interim
dividend of €0.15 per share paid out in December 2017, the balance
of the dividend to be paid out on the 2017 financial year comes to
€0.31 per share for shares receiving the ordinary dividend.
Subject to approval at the
Shareholders' Meeting, in accordance with Article L. 232-18 of the
French Commercial Code and Article 25 of the Company's articles of
association, EDF's Board of Directors decided on 15 February 2018
to offer each shareholder the option of being paid in new EDF
stocks on the remaining dividend to be paid for the year exercice
ending at 31 December 2017. In case the option is exercised, the
new shares will be issued at a price equal to 90% of the average of
opening prices of the EDF share on the Euronext Paris regulated
market over the twenty trading days preceding the day of the
Shareholders' Meeting, reduced by the amount of the balance of the
dividend to be paid for the 2017 financial year, rounded up to the
nearest euro cent.
On 15 February 2018, EDF's Board
of Directors set the terms of payment of the balance of the
dividend for the 2017 financial year which will be submitted for
approval during the General meeting of shareholders to be held on
15 May 2018:
-
ordinary and loyalty dividend ex-date on 25 May
2018;
-
exercise period for payment in new shares from
25 May to 11 June 2018 inclusive;
-
payment date of the balance of the dividend and
settlement/delivery of the shares on 19 June 2018.
Cash flow and Net
financial debt
Total net investments including
acquisitions but excluding the disposal plan reached €16 billion.
Taking into account the significant asset disposals in 2017 (€6,193
million in 2017 compared to €1,139 in 2016), the total net
investments and acquisitions amounted to €9,810 million in 2017,
compared to €11,663 million in 2016. Moreover, total net
investments excluding Linky[20], new
developments[21] and the
disposal plan amounted to €11,968 million, up slightly by 1.3%
compared to 2016, in line with the acceleration of investments in
renewable energies.
Cash flow after net investments
stood at €1,853 million, a significant improvement of €2,392
million, despite the drop in EBITDA, thanks mainly to the assets
disposals in 2017 and to the inflow of most of the tariff
adjustment, which took place in 2016[22]. Group
cash flow[23] amounted
to -€209 million, up €1,356 million despite the allocation of
dedicated assets of €1,095 million requested by a ministerial
letter of 10 February 2017.
|
31/12/2016 |
31/12/2017 |
Net financial debt[24] (in billions of Euros) |
37.4 |
33.0 |
Net financial debt/EBITDA: |
2.3x |
2.4x |
The Group's net financial debt
reached €33.0 billion at the end of 2017. It was €37.4 billion at
31 December 2016. This improvement is mainly attributable to the
capital increase of €4 billion and to asset disposals carried out
in 2017. The ratio of net financial debt/EBITDA stood at 2.4x at 31
December 2017.
Outlook
The Group is continuing the
deployment of its strategic plan and confirms its 2018
targets[25]:
-
Operating
expenses[26]: €800
million reduction compared to 2015
-
EBITDA[27]:
between €14.6 and €15.3 billion
-
Cash flow27,[28] excluding
Linky[29], new
developments and 2015-20 assets disposal plan: slightly positive or
close to balance
-
Assets disposal plan:
around €10 billion over 2015-2018[30]
-
Net investments excluding
Linky29, new
developments and 2015-20 assets disposal plan: around €11
billion
-
Total net investments
excluding acquisitions and 2015-20 assets disposal plan: around €15
billion
-
Net financial
debt/EBITDA27: less than
or equal to 2.7x
-
Target payout ratio, based on
net income excluding non-recurring items[31]:
50%
In 2019, in a context marked by an
expected decline in nuclear generation in France compared to 2018,
the measures to reduce operating expenses26 will be
increased, with the target being revised upwards to €1.1 billion
compared to 2015.
The 2019 target payout ratio of
the net income excluding non-recurring items31 is
confirmed at 45%-50%.
Main Group results
by segment
France -
Generation and supply activities
(in millions of Euros) |
2016 |
2017 |
Organic change
(%)[32] |
Organic change
(%)
Excluding tariff adjustment[33] |
Sales |
35,191 |
35,606 |
+1.2 |
+4.1 |
EBITDA |
6,156 |
4,876 |
-20.8 |
-7.9 |
Sales in France - Generation and
supply activities amounted to €35,606 million. Restated for the
impact of the tariff adjustment33 which took
place in 2016, sales were up 4.1% in organic terms. EBITDA stood at
€4,876 million. Restated for the impact of the tariff
adjustment33 which
amounted to €859 million, EBITDA was down -7.9% in organic
terms.
The lower level of nuclear power
and hydropower output compared to 2016 had an unfavourable impact
estimated at -€504 million.
EBITDA also declined by around
€311 million in 2017 due to the net effect of operations on the
wholesale markets, particularly for additional purchases while
prices were high, required to cover 2017 ARENH subscriptions. These
purchases were also to make up for lower nuclear power output due
to additional controls in connection with the carbon segregation
issue, in particular during the first half of the year. This effect
was partly counterbalanced in the second half-year of 2017 as
purchases had been made at particularly high prices in the final
quarter of 2016 due to lower nuclear plant availability.
Heightened competition, reflected
in a net loss of around one million residential customers, and
negative price effects on new offers also had an estimated net
effect of -€341 million on EBITDA.
Tariff changes, excluding
remuneration of capacity in the tariff "stacking" calculation, led
to an estimated decrease of -€363 million[34] compared
to 2016.
The introduction of the capacity
mechanism had a favourable +€580 million estimated impact on EBITDA
for 2017. The capacity price is included in regulated tariffs and
market-price offers, and excess capacities are sold off on the
wholesale markets.
The weather, which was generally
milder than in 2016 with a particularly cold spell early in 2017,
and the "leap year effect" of 2016 had a negative effect estimated
at -€186 million in 2017.
Under the EDF group's performance
plan, operating expenses[35] were
brought down by an estimated €494 million (-5.2%) through actions
to improve operating performance and control of payroll costs.
These measures are being applied across all entities, notably
through cost-cutting in support functions and adjustment of the
costs of commercial activities.
France - Regulated
activities[36]
(in millions of Euros) |
2016 |
2017 |
Organic change
(%)[37] |
Organic change
(%)
Excluding tariff adjustment[38] |
Sales |
15,728 |
15,896 |
+1.1 |
+1.3 |
EBITDA |
5,102 |
4,898 |
-4.0 |
-3.8 |
Sales for the France - Regulated
activities segment amounted to €15,896 million. Restated for the
impact of the tariff adjustment38 for
Électricité de Strasbourg which took place in 2016, it was up 1.3%
in organic terms.
EBITDA stood at €4,898 million.
Without the impact of regulated sales tariff adjustment, EBITDA
registered an organic decline of -3.8%, including the unfavourable
€42 million[39] effect of
a decline in volumes delivered by Enedis[40]. Demand
was down 0.4TWh (i.e. -0.2%). As a reminder, the impacts related to
the drop in demand are eligible for the tariff rectification
mechanism (CRCP).
2017 was also marked by
exceptionally fierce storms in mainland France, with an estimated
negative impact
of -€60 million corresponding to the operating expenses incurred
for work and power cut indemnities. The hurricanes on St Martin and
St Barthélémy generated costs estimated at -€23 million.
All these unfavourable factors
were only partially offset by tariff increases for Enedis
associated with the introduction of the TURPE 5 tariff from 1
August 2017 (raising delivery tariffs on the distribution network
by +2.71%) amounting to an estimated +€102 million.
The residual decrease of €168
million in EBITDA is essentially caused by the existence of
favourable developments in 2016 that had no equivalent in 2017,
principally concerning the island activities.
United
Kingdom
(in millions
of Euros) |
2016 |
2017 |
Organic change (%) |
Sales |
9,267 |
8,688 |
-0.8 |
EBITDA |
1,713 |
1,035 |
-33.3 |
The United Kingdom's contribution
to Group sales amounted to €8,688 million in 2017, down 0.8% in
organic terms compared to 2016. EBITDA stood at €1,035 million,
down by 33.3% in organic terms from 2016.
EBITDA was penalised by the effect
of the downturn in realised prices for nuclear power (-12%).
Nuclear generation output amounted to 63.9TWh confirming the good
operating performance by the fleet, after an exceptional 2016.
The number of residential customer
accounts declined only slightly compared to end 2016, indicating
resilience in a highly competitive market. Moreover, consumption
was lower in connection with rising energy efficiency.
In addition, the Infrastructure and Projects
Authority (IPA) guarantee, granted under the framework of the
HPC project, was formally cancelled on 5 February 2018 on EDF's
request.
Italy
(in millions
of Euros) |
2016 |
2017 |
Organic change (%) |
Sales |
11,125 |
9,940 |
-10.6 |
EBITDA |
641 |
910 |
+42.1 |
Sales in Italy amounted to €9,940
million, down 10.6% organically from 2016, due on one hand to the
drop in Electricity activities caused by lower volumes sold, and on
the other by the "derivatives" component of hedges, the latter not
significantly affecting the margin. EBITDA recorded an organic
increase of 42.1% to €910 million.
EBITDA for the electricity activities showed organic growth of
€26 million or +10.0% from 2016. It benefited from favourable
trends in sale prices and optimisation of the gas-fired plants'
generation capacities.
EBITDA for the hydrocarbon activities registered organic growth of
€96 million or +19.7% compared to 2016. It benefited from
favourable movements in Brent oil and gas prices, and higher output
after a new platform came online in Egypt. Maintenance costs for
the exploration-production activity were also optimised.
EBITDA also benefited from the
positive effect of the sale of the Milan headquarters for around
€100 million[41].
Other
activities
(in millions
of Euros) |
2016 |
2017 |
Organic change (%) |
Sales
of which EDF Énergies Nouvelles
of which Dalkia |
7,734
1,169
3,600 |
7,813
1,280
4,051 |
-1.0
+3.6
+6.1 |
EBITDA
of which EDF Énergies Nouvelles
of which Dalkia |
2,091
861
252 |
1,566
751
259 |
-24.7
-14.8
-1.6 |
Sales in Other
activities amounted to €7,813 million, down 1.0% in organic
terms compared to 2016. EBITDA recorded an organic decrease of
24.7% to €1,566 million.
EDF Énergies
Nouvelles' contribution to consolidated EBITDA totalled €751
million, corresponding to an organic decrease of €127 million
(-14.8%) from 2016, due to lower sales of assets than in 2016 which
registered a high level of such operations. However, production
(including Futuren) showed strong growth of close to +11% (+1.2TWh)
and contributed €741 million to 2017 EBITDA. Sales of assets
covered the structure and development costs. Against this
background, the net installed capacity was up by +1.6GW to 7.8GW at
31 December 2017. The portfolio of projects under construction by
EDF Énergies Nouvelles totalled 1.9GW, a significant share of 0.9GW
concerning solar power projects.
Dalkia's
EBITDA was €259 million, corresponding to an organic decrease of €4
million (-1.6%). Conclusions and renewals of a large number of
commercial contracts, favourable trends in the indexes for revising
service prices, and the positive effect of rising energy prices all
made positive contributions to EBITDA. However, financial
performance is penalised by a one-off operating issue on a contract
led by a subsidiary.
EBITDA at EDF
Trading amounted to €358 million in 2017, an organic decline of
46.8% after an exceptional 2016, characterized by a sharp rise in
electricity prices and volatility in Europe at the end of the year,
as well as the difficult market conditions in North America. A
reorganisation is currently underway in that region. As part of a
new strategic partnership, the EDF Group and JERA joined their coal
negotiation and trading activities in April 2017 in a joint venture
in which EDF Trading holds a 33% stake.
Other
international
(in millions
of Euros) |
2016 |
2017 |
Organic change (%) |
Sales
of which Belgium
of which Brazil |
5,286
3,203
488 |
4,822
3,375
453 |
+0.5
+4.7
-14.3 |
EBITDA
of which Belgium
of which Brazil |
711[42]
205
190 |
457[43]
145
150 |
-17.9
-30.2
-28.4 |
Sales in Other international
amounted to €4,822 million, up 0.5% in organic terms over 2016.
EBITDA recorded an organic decrease of 17.9% to €457 million.
In Belgium,
EBITDA was down organically by 30.2% to €145 million mainly as a
result of the downturn in electricity prices and lower nuclear
power generation due in particular to the maintenance programme and
unplanned outages at Doel 3. Wind power continued to grow as
installed capacities were increased, reaching 376MW
at 31 December 2017 (+25% compared with 31 December 2016).
Brazil's
EBITDA was negatively affected by the annual revision of the Power
Purchase Agreement (PPA) price with Norte Fluminense, after an
exceptional year in 2016. This was partly offset by optimisation
actions on the markets as spot prices were high while unplanned
unavailability was at its lowest point, and also by a steady
decrease in operating expenses.
2017 also saw the sale of
EDF Polska's assets, on 13 November
2017[44].
Significant
events[45]
since the 2017 third quarter press release
Major events
-
The EDF group launched the Solar Power Plan to
develop 30GW of solar capacity in France by 2035 (see press release
of 11 December 2017).
-
EDF confirmed its 2017 EBITDA target (see press
release of 15 December 2017).
-
Nuclear industry:
-
Framatome announced it was continuing to ramp up
production at its Le Creusot site. (see press release of 25 January
2018).
-
Framatome announced that it will acquire
Schneider Electric's nuclear instrumentation and control business
(see press release of 18 January 2018).
-
EDF completed the cold functional test phase for
the Flamanville EPR (see press release of 8 January 2018).
-
New NP, a subsidiary of AREVA NP, became
Framatome, a company whose capital is owned by the
EDF group (75.5%), Mitsubishi Heavy Industries (MHI 19.5%) and
Assystem (5%), (see press release
of 4 January 2018 available on the website
http://www.framatome.com).
-
On 31 December 2017, EDF completed the
acquisition of a 75.5% stake in Framatome (formerly New NP) (see
press release of 2 January 2018).
-
Edison sold its Milan headquarters (see Edison
press release of 21 November 2017 available on the website
www.edison.it).
New investments, partnerships and
investment projects
Development of renewable energies,
EDF Énergies Nouvelles[46]
-
On 14 February 2018, EDF Énergies Nouvelles and
ACC Announced China Joint Venture (Distributed solar energy).
-
On 31 January 2018, EDF Énergies Nouvelles
commissioned a 200MW wind farm in the United States.
-
On 15 January 2018, EDF Énergies Nouvelles
commissioned a new 115MWp solar power plant in Chile.
-
On 11 January 2018, EDF Énergies Nouvelles
commissioned a 224MW wind farm in Canada.
-
On 8 January 2018, EDF Énergies Nouvelles
announced that Photowatt[47] has
embarked on a new project of industrial development and
innovation.
-
On 14 December 2017, EDF Renewable Energy, a
North American subsidiary of EDF Énergies Nouvelles, and
Kimberly-Clark announced the commercial operation of the Rock Falls
wind farm in the United States.
-
On 30 November 2017, EDF Renewable Energy, a
North American subsidiary of EDF Énergies Nouvelles, signed an
agreement with Google to supply 200MW of wind energy in the United
States.
Development of energy services
Sustainable development
-
On 15 January 2018, the EDF group launched "Vert
Électrique Auto", using an roaming solution offered by Sodetrel, a
subsidiary of EDF.
-
On 11 December 2017, the EDF group announced
that it will convert its entire fleet to electric vehicles by
2030.
-
On 11 December 2017, industrial issuers of €26
billion of "green bonds" announced their commitment to further
developing one of the most dynamic segments of sustainable finance
today, the green bond market.
Other significant events
-
On 6 February 2018, the EDF group won its first
nuclear waste treatment contract with SOGIN[48].
-
On 19 January 2018, riding the wave of success
in Côte d'Ivoire, EDF and OGE embarked on the off-grid market in
Ghana.
APPENDICES :
Consolidated income
statement
|
(in millions of Euros) |
|
2017 |
2016 |
|
Sales |
|
69,632 |
71,203 |
Fuel and energy purchases |
|
(37,641) |
(36,050) |
Other external expenses |
|
(8,739) |
(8,902) |
Personnel expenses |
|
(12,456) |
(12,543) |
Taxes other than income taxes |
|
(3,541) |
(3,656) |
Other operating income and expenses |
|
6,487 |
6,362 |
Operating profit before
depreciation and amortisation |
|
13,742 |
16,414 |
Net changes in fair value on Energy and
Commodity derivatives,
excluding trading activities |
|
(355) |
(262) |
Net depreciation and amortisation |
|
(8,537) |
(7,966) |
Net increases in provisions for renewal of
property, plant and equipment operated under concessions |
|
(58) |
(41) |
(Impairment)/reversals |
|
(518) |
(639) |
Other income and expenses |
|
1,363 |
8 |
Operating profit |
|
5,637 |
7,514 |
Cost of gross financial indebtedness |
|
(1,778) |
(1,827) |
Discount effect |
|
(2,959) |
(3,417) |
Other financial income and expenses |
|
2,501 |
1,911 |
Financial result |
|
(2,236) |
(3,333) |
Income before taxes of
consolidated companies |
|
3,401 |
4,181 |
Income taxes |
|
(147) |
(1,388) |
Share in net income of associates and joint
ventures |
|
35 |
218 |
GROUP NET INCOME |
|
3,289 |
3,011 |
EDF net income |
|
3,173 |
2,851 |
Net income attributable to
non-controlling interests |
|
116 |
160 |
|
|
|
|
Earnings per share (EDF share) in Euros: |
|
|
|
Earnings per share |
|
0.98 |
1.15 |
Diluted
earnings per share |
|
0.98 |
1.15 |
Consolidated balance
sheet
ASSETS
(in millions of Euros) |
|
31/12/2017 |
31/12/16 |
Goodwill |
|
10,036 |
8,923 |
Other
intangible assets |
|
8,896 |
7,450 |
Property, plant and equipment operated under French public
electricity distribution concessions |
|
54,739 |
53,064 |
Property, plant and equipment operated under concessions for other
activities |
|
7,607 |
7,616 |
Property, plant and equipment used in generation and other tangible
assets owned by the Group |
|
75,622 |
70,573 |
Investments in associates and joint ventures |
|
7,249 |
8,645 |
Non-current financial assets |
|
36,787 |
35,129 |
Other
non-current receivables |
|
2,168 |
2,268 |
Deferred tax assets |
|
1,220 |
1,641 |
Non-current assets |
|
204,324 |
195,309 |
Inventories |
|
14,138 |
14,101 |
Trade
receivables |
|
23,411 |
23,296 |
Current financial assets |
|
24,953 |
29,986 |
Current tax assets |
|
673 |
183 |
Other
current receivables |
|
9,561 |
10,652 |
Cash
and cash equivalents |
|
3,692 |
2,893 |
Current assets |
|
76,428 |
81,111 |
Assets
classified as held for sale |
|
- |
5,220 |
TOTAL ASSETS |
|
280,752 |
281,640 |
|
|
|
|
|
EQUITY AND LIABILITIES
(in millions of Euros) |
|
31/12/2017 |
31/12/16 |
Capital |
|
1,464 |
1,055 |
EDF
net income and consolidated reserves |
|
39,893 |
33,383 |
Equity (EDF share) |
|
41,357 |
34,438 |
Equity
(non-controlling interests) |
|
7,341 |
6,924 |
Total equity |
|
48,698 |
41,362 |
Provisions related to nuclear generation - back-end of the
nuclear cycle, plant decommissioning and last cores |
|
46,410 |
44,843 |
Other
provisions for decommissioning |
|
1,977 |
1,506 |
Provisions for employee benefits |
|
20,630 |
21,234 |
Other
provisions |
|
2,356 |
2,155 |
Non-current
provisions |
|
71,373 |
69,738 |
Special French public electricity distribution concession
liabilities |
|
46,323 |
45,692 |
Non-current financial liabilities |
|
51,365 |
54,276 |
Other
non-current liabilities |
|
4,864 |
4,810 |
Deferred tax liabilities |
|
2,362 |
2,272 |
Non-current liabilities |
|
176,287 |
176,788 |
Current provisions |
|
5,484 |
5,228 |
Trade
payables |
|
13,994 |
13,031 |
Current financial liabilities |
|
11,142 |
18,289 |
Current tax liabilities |
|
187 |
419 |
Other
current liabilities |
|
24,960 |
24,414 |
Current liabilities |
|
55,767 |
61,381 |
Liabilities related to assets classified as held for sale |
|
- |
2,109 |
TOTAL EQUITY AND LIABILITIES |
|
280,752 |
281,640 |
Consolidated cash flow
statement
(in millions of Euros) |
|
2017 |
2016 |
Operating activities: |
|
|
|
Income before taxes of consolidated
companies |
|
3,401 |
4,181 |
Impairment/(reversals) |
|
518 |
639 |
Accumulated depreciation and amortisation, provisions and changes
in fair value |
|
9,980 |
9,814 |
Financial income and expenses |
|
764 |
948 |
Dividends received from associates and joint ventures |
|
243 |
330 |
Capital gains/losses |
|
(2,739) |
(877) |
Change
in working capital |
|
1,476 |
(1,935) |
Net cash flow from
operations |
|
13,643 |
13,100 |
Net
financial expenses disbursed |
|
(1,209) |
(1,137) |
Income
taxes paid |
|
(771) |
(838) |
Net cash flow from operating activities |
|
11,663 |
11,125 |
Investing activities: |
|
|
|
Acquisitions of equity investments, net of cash acquired |
|
(2,463) |
(127) |
Disposals of equity investments, net of cash transferred |
|
2,472 |
372 |
Investments in intangible assets and property, plant and
equipment |
|
(14,747) |
(14,397) |
Net
proceeds from sale of intangible assets and property, plant and
equipment |
|
1,140 |
508 |
Changes in financial assets |
|
1,885 |
(2,913) |
Net cash flow used in investing
activities |
|
(11,713) |
(16,557) |
Financing activities: |
|
|
|
EDF Capital increase |
|
4,005 |
- |
Transactions with non-controlling interests |
|
481 |
1,368 |
Dividends paid by parent company |
|
(109) |
(165) |
Dividends paid to non-controlling interests |
|
(183) |
(289) |
Purchases/sales of treasury shares |
|
(6) |
(2) |
Cash flows with
shareholders |
|
4,188 |
912 |
Issuance of borrowings |
|
2,901 |
9,424 |
Repayment of borrowings |
|
(6,304) |
(6,176) |
Payments to bearers of perpetual subordinated bonds |
|
(565) |
(582) |
Funding contributions received for assets operated under
concessions |
|
144 |
143 |
Investment subsidies |
|
348 |
417 |
Other cash flows from financing
activities |
|
(3,476) |
3,226 |
Net cash flow from financing activities |
|
712 |
4,138 |
Net increase/(decrease) in cash and cash
equivalents |
|
662 |
(1,294) |
|
|
|
|
CASH AND CASH EQUIVALENTS - OPENING
BALANCE |
|
2,893 |
4,182 |
Net
increase/(decrease) in cash and cash equivalents |
|
662 |
(1,294) |
Effect
of currency fluctuations |
|
(13) |
102 |
Financial income on cash and cash equivalents |
|
21 |
20 |
Effect
of reclassifications |
|
129 |
(117) |
CASH AND CASH EQUIVALENTS - CLOSING BALANCE |
|
3,692 |
2,893 |
A key
player in energy transition, the EDF Group is an integrated
electricity company, active in all areas of the business:
generation, transmission, distribution, energy supply and trading,
energy services. A global leader in low-carbon energies, the Group
has developed a
diversified generation mix based on nuclear power, hydropower, new
renewable energies and thermal energy. The Group is involved in
supplying energy and services to approximately 35.1 million
custumers accounts, 26.5 million of which are in France. The Group
generated consolidated sales of €70 billion in 2017. EDF is listed
on the Paris Stock Exchange.
This press release is certified. You can check that it is
authentic at medias.edf.com
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
certainty that the forecast events will take place or that the
expected results will actually be achieved. Important factors that
could cause actual results, performance or achievements of the
Group to differ materially from those contemplated in this document
include in particular the successful implementation of EDF
strategic, financial and operational initiatives based on its
current business model as an integrated operator, changes in the
competitive and regulatory framework of the energy markets, as well
as risk and uncertainties relating to the Group's activities, its
international scope, the climatic environment, the volatility of
raw materials prices and currency exchange rates,
technological changes, changes in the general economic
situation.
Detailed information regarding these uncertainties
and potential risks are available in the reference document
(Documentde référence) of EDF filed with the Autorité des marchés
finaciers on 6 March 2017, wich is available on the AMF's
website at www.amf-france.org and on EDF
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.
|
Only print what you
need.
EDF SA
French société anonyme
with a share capital of €1,463,719,402
Registered head office: 22-30, avenue de Wagram
75382 Paris cedex 08
552 081 317 RCS Paris
www.edf.fr |
|
CONTACTS
Press: +33(0) 1 40 42 46 37
Analysts and investors: +33(0) 1 40 42 40
38
|
[1] Organic
change at comparable scope and exchange rate
[2] Excluding
the impact related to the positive effect in 2016 of the regulated
sales tariff adjustment for the period from 1 August 2014 to 31
July 2015 following the French State Council's decision of 15 June
2016
[3] Capacity
representing the share owned by the Group
[4] Generation
by entities accounted for using the full consolidation method
[5] Net income
excluding non-recurring items is not defined by IFRS, and is not
directly visible in the consolidated income statement. It
corresponds to the Group net income excluding non-recurring items
and net changes in fair value on Energy and Commodity derivatives,
excluding trading activities, net of tax
[6] Net
financial debt is not defined in the accounting standards and is
not directly visible in the Group's consolidated balance sheet. It
comprises total loans and financial liabilities, less cash and cash
equivalents and liquid assets. Liquid assets are financial assets
consisting of funds or securities with initial maturity of over
three months that are readily convertible into cash and are managed
according to a liquidity-oriented policy
[7] Sum of
personnel expenses and other external expenses. At comparable
consolidation scope and exchange rates. At constant pension
discount rates. Excluding change in operating expenses of the
service activities
[8] Impact on
net financial debt
[9] At
comparable exchange rates and "normal" weather conditions, on the
basis of a nuclear output in France assumption of >395TWh. At
constant pension discount rates
[10] Excluding
eventual interim dividend for the 2018 fiscal year
[11] Linky is a
project led by Enedis, an independent EDF subsidiary as defined in
the French Energy Code
[12] Disposals
signed or realised
[13] Adjusted
for the remuneration of hybrid bonds accounted for in equity
[14] Favourable
effect in 2016 of the regulated sales tariff adjustment for the
period from 1 August 2014 to 31 July 2015 following the French
State Council's decision of 15 June 2016
[15] Regulated
activities: Enedis, Électricité de Strasbourg and island
activities. Enedis is an independent EDF subsidiary as defined in
the French Energy Code.
[16] After
deduction of pumped volumes, hydropower production stood at 30.0TWh
for 2017 (35.8TWh for 2016)
[17] Capital
gain before taxes; CTE, the entity holding 100% of RTE shares
[18] Sum of
personnel expenses and other external expenses. At comparable
consolidation scope and exchange rates. At constant pension
discount rates. Excluding change in operating expenses of the
service activities
[19] Adjusted
for the remuneration of hybrid bonds accounted for in equity
[20] Linky is a
project led by Enedis, an independent EDF subsidiary as defined in
the French Energy Code
[21] New
developments: in particular the UK NNB projects, offshore wind
power and the acquisition of Framatome
[22] Favourable
effect in 2016 of the regulated sales tariff adjustment for the
period from 1 August 2014 to 31 July 2015 following the French
State Council's decision of 15 June 2016
[23] Cash flow
after dividends without taking into consideration the capital
increase
[24] Net
financial debt is not defined by accounting standards and is not
directly visible in the Group's consolidated income statement. It
comprises total loans and financial liabilities, less cash and cash
equivalents and liquid assets. Liquid assets are financial assets
consisting of funds or securities with initial maturity of over
three months that are readily convertible into cash and are managed
according to a liquidity-oriented policy
[25] See EDF
press release dated 13 November 2017
[26] Sum of
personnel expenses and other external expenses. At comparable
consolidation scope and exchange rates. At constant pension
discount rates. Excluding change in operating expenses of the
service activities
[27] At
comparable exchange rates and "normal" weather conditions, on the
basis of a nuclear output in France assumption of >395TWh. At
constant pension discount rates
[28]
Excluding eventual interim dividend for the 2018 fiscal year
[29] Linky is a
project led by Enedis, an independent EDF subsidiary as defined in
the French Energy Code
[30] Disposals
signed or realised
[31] Adjusted
for the remuneration of hybrid bonds accounted for in equity
[32] Organic
change at comparable scope and exchange rate
[33] Excluding
the impact related to the positive effect in 2016 of the regulated
sales tariff adjustment for the period from 1 August 2014 to 31
July 2015 following the French State Council's decision of 15 June
2016
[34] Tariffs
excluding the incorporation of the cost of capacity obligation in
the tariff "stacking" - tariff changes of -0.5% and -1.5% at 1
August 2016 respectively on the "blue" residential and
non-residential tariffs, and +1.7 % at 1 August 2017 on both
segments
[35] Sum of
personnel expenses and other external expenses. At comparable
consolidation scope and exchange rate. At constant pension discount
rates. Excluding change in operating expenses of the service
activities
[36] Regulated
activities include Enedis, ÉS and island activities
[37] Organic
change at comparable scope and exchange rate
[38] Excluding
the impact related to the positive effect in 2016 of the regulated
sales tariff adjustment for the period from 1 August 2014 to 31
July 2015 following the French State Council's decision of 15 June
2016
[39] Including
the impacts of weather changes and the "leap year effect"
[40] Enedis is
an independent EDF subsidiary as defined in French Energy Code
[41] In line
with the Group's practice
[42] 2016
EBITDA, including the activities of EDF Demasz in Hungary, sold on
31 January 2017
[43] 2017
EBITDA, including the activities of EDF Polska in Poland, sold on
13 November 2017
[44] See the
EDF press release of 14 November 2017
[45] The
complete list of press releases is available on the website:
www.edf.fr
[46] A full
list of EDF Énergies Nouvelles' press releases is available from
the website www.edf-energies-nouvelles.com
[47] Photowatt
is a subsidiary of EDF Énergies Nouvelles established in France. It
is a European company specialized in the manufacture of
photovoltaic cells and modules
[48] SOGIN
(Societe Gestione Impianti Nucleari) is Italy's public entity
tasked with the dismantling of nuclear facilities and the
management of radioactive waste in Italy
EDF PR FY2017
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: EDF via Globenewswire