Investor Presentation European Deal Roadshow

Transcription

1 Investor Presentation European Deal Roadshow

2 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, for example, the Group s strategy, financial position or results, which do not constitute a guarantee of future performance or results of the company. EDF considers that these forward-looking statements and targets are based on reasonable assumptions, which can be however inaccurate and are subject to numerous risks and uncertainties, many of which are outside the control of the company, and as a result of which actual results may differ materially from expected results. 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, the climatic environment, the volatility of raw materials prices and currency exchange rates, the strengthening of safety regulations, technological changes, changes in the general economic and political conditions in the countries where the Group operates, and risk and uncertainties relating to the consequences of the nuclear accident in Japan. Detailed information regarding these uncertainties and potential risks are available in the reference document (Document de référence) of EDF filed with the Autorité des marchés financiers on April 10, 2012, which is available on the AMF's website at and on EDF s website at EDF does not undertake, nor does it have any obligation to provide updates of the information contained in this presentation. This presentation and the information contained herein are not being issued and may not be distributed in the United States of America, Canada, Japan or Australia. This presentation does not constitute an offer to sell securities, or a solicitation of an offer to buy securities, in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the Securities Act ). The securities of Electricité de France SA described herein have not been and will not be registered under the Securities Act, or the laws of any State, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable State laws. Electricité de France SA does not intend to register any portion of the offering in the United States or conduct a public offering of securities in the United States. This presentation is for distribution only to persons who (i) have professional experience in matters relating to investments which fall within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the Financial Promotion Order ), (ii) are persons falling within Article 49(2)(a) to (d) ( high net worth companies, unincorporated associations etc ) of the Financial Promotion Order, (iii) are outside the United Kingdom, or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as relevant persons ). This document is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this document relates is available only to relevant persons and will be engaged in only with relevant persons. This presentation has been prepared on the basis that any offer of the notes in any Member State of the European Economic Area ( EEA ) which has implemented the Prospectus Directive (2003/71/EC) (each, a Relevant Member State ) will be made pursuant to an exemption under the Prospectus Directive, as implemented in that Relevant Member State, from the requirement to publish a prospectus for offers of notes. Accordingly any person making or intending to make any offer in that Relevant Member State of notes which are the subject of the offering contemplated in this presentation may only do so in circumstances in which no obligation arises for Electricité de France SA or any of the bookrunners to publish a prospectus pursuant to Article 3 of the Prospectus Directive or supplement a prospectus pursuant to Article 16 of the Prospectus Directive, in each case, in relation to such offer. Neither the Electricité de France SA nor the bookrunners have authorised, nor do they authorise, the making of any offer of the notes in circumstances in which an obligation arises for the Electricité de France SA or any bookrunners to publish or supplement a prospectus for such offer. 2

3 Table of contents General presentation 4 EDF Group: Financial highlights and credit profile 15 French tariff equation 25 Nuclear provisions and dedicated assets 31 Strategy and investments 35 Transaction structure 43 3

4 EDF overview A worldwide leader in the power & renewable sector; #1 nuclear operator Recognized operational excellence and experience in its core businesses Low-carbon strategy driven by nuclear and renewable (100%-owned EDF Energies Nouvelles, leader in hydro-generation) Diversified and low cost generation mix; limited commodity risk exposure vs. peers Around 70% of EDF business is regulated (networks) or with high visibility (tariffs, PPA ) Supportive legal framework for nuclear energy in EDF key markets (France, UK) Strong French State support with c.84% shareholding and legal requirement to maintain at least a 70% ownership Reinforced financial solidity with the strongest balance sheet in the sector and a very strong liquidity position (A+ S&P / Aa3 - Moody s / A+ Fitch) 4

5 EDF: a defensive business mix & shareholding A EDF: a 75% low carbon energy mix Gas (fossil-fired, CCGT and cogeneration) 8% Renewables 3% B EDF 2020: a 75% carbon-free electricity producer Thermal 25% Coal 18% 135 GW Nuclear 55% ~160 GW Nuclear 50% Hydro 16% Renewables 25% Projections for 2020 installed capacity o/w France 65 % o/w International 35% C and high visibility on many EDF s activities % 2011 EBITDA Others 33% Renewables (PPAs) 7% 14.8bn Networks (Regulated tariffs) 20% French Generation (Regulated or Price formula) 40% D EDF is a listed company with the State as major shareholder French state 84.44% *by law, the French State must own at least 70% of EDF Institutional and retail investors 13.65% EDF Employees 1.84% Treasury shares 0.07% 5

6 Successful business streamlining since 2010 Improving operating and financial performance Creating the ground for sustainable improved performance Replacement of large components in France Preparing for life extension of nuclear power plants in the UK (1) (7-year extension already achieved) New investment methodology with stricter investment criteria Addressing partnership issues to build an industrial group Disposal of EDF s stake in EnBW Preservation of Group s interest in CENG, disposal of EXC shares 100% control of EDF Energies Nouvelles Control of Edison: 99.5% as of September 2012 Increasing visibility Delivering despite adverse environment 2010: EBITDA +5.2% - Net income (2) +11.3% 2011: EBITDA +6.6% - Net income (2) +13.4% 2012: Objectives reiterated (3) Agreement with French State on the repayment of the CSPE deficit 6 (1) An average of 7 years on AGR nuclear plants, compared with the expected shutdown date when British Energy was acquired in January 2009 (2)Excluding non-recurring items (3) Group has found an agreement with the French State on the repayment of the CSPE deficit on 14 January 2013, but the discussions are still ongoing for it to have an impact on the Group net financial debt.

7 Agreement on the repayment of the CSPE historical deficit Remuneration of the CSPE receivable until 2018 Recognition by the French State of its obligation to compensate EDF for the CSPE deficit and related financing costs amounting to 4.9bn at year-end 2012 Commitment on a repayment schedule clearing the CSPE receivable by 2018 Interest payment on the CSPE receivable of 100 bps over the 5-year French State bond yields i.e. c.1.7% as of 14/01/2013 Positive impact on earnings for FY 2012 Recognition of past financing costs generating a financial income before tax of 0.6bn in 2012 Further discussions to relief the Group net financial debt as part of balance sheet efforts 7

8 Significant balance sheet optimisation achieved over the past 3 years Longer debt maturity at a lower cost Lower average coupon: from 4.4% end of 2009 to 3.8% as of September 30, 2012 Longer average maturity: from 7.4 years end of 2009 to 8.6 years as of September 30, 2012 RTE included in the dedicated assets improving nuclear liabilities coverage without earnings dilution Portfolio rationalisation while keeping a highly regulated profile EDF committed to sustainable dividend policy 8

9 EDF contemplates issuance of inaugural hybrid bond Hybrid issuance in EUR, GBP, USD Hybrid issuance to reinforce EDF capital structure and supporting the Group s target of keeping the best rating in the industry Hybrid s characteristics fit EDF s balance sheet s optimisation strategy 100% equity treatment under IFRS 50% equity credit under rating agencies methodology Current market conditions are attractive for the issuance of such type of instrument Diversifying EDF s investor base Improving financial structure 9

10 Hybrids bring flexibility over the investment cycle EDF Group bears financing for investments ensuring significant growth EDF s non contributive capital employed stands at c. 11bn as of 30 June 2012 Flamanville 3 Dunkirk LNG terminal Renewable projects Hybrid equity characteristics enable to smooth capital needs during the project inception phase Hybrid is an efficient ALM tool aligned with EDF s industrial strategy 10

11 Hybrid as a dynamic funding policy tool A total of 6 billion bonds issued since January 2012 Bond redemption peak over 2013 and 2014 Breakdown of bonds by currency In millions of euros before swaps (as of 5 September 2012) CHF EUR GBP USD JPY Other Strengthening seniority of existing bond holders 11

12 Comparative debt ratings: EDF is leading its peers Moody s ratings Aa3 A1 A2 A3 Baa1 Enel RWE SSE Vattenfall E.ON GDF Suez Iberdrola BBB+ A- A A+ S&P ratings EDF Ratings S&P Ratings Moody s Ratings Fitch EDF A+ stable (1) Aa3 neg A+ stable GDF Suez A stable A1 negative n/a E.ON A - stable A3 stable A stable Enel Iberdrola Scottish & Southern BBB+ negative BBB stable Baa2 negative Baa1 negative BBB+ neg. CW BBB+ negative A - negative A3 stable A- stable RWE BBB+ stable A3 negative A- stable Endesa BBB+ negative Baa2 negative BBB+ neg. CW Vattenfall A- stable A2 negative A- stable Ratings S&P Ratings Moody s Ratings Fitch EDF short term A-1 P-1 F1 Source: Bloomberg, as of 14 January 2013 Leading position as an integrated utility in France (Generation and Supply) High share of domestic regulated earnings Cash flow predictability and low exposure to volatile commodities and wholesale markets Good liquidity management and capital market access Commitment: best rating in the industry 12 (1) Downgrade to A+ on 17 January 2012, following the downgrade of France

13 Indicative Terms All Tranches FINANCIAL PERFORMANCE A/Reg S Tranche EUR PerpNC7 EUR PerpNC12 GBP PerpNC13 USD PerpNC10 Issuer Ratings Maturity Electricité de France SA Issuer senior ratings: Aa3 / A+ / A+ Instrument ratings: A3 / BBB+ / A- (expected) Perpetual First Call Date [Jan] 2020 [Jan] 2025 [Jan] 2026 [Jan] Reduction in S&P Equity Credit Interest Rate and Step-Up Optional Interest Deferral Special Event Call Options Ranking At first call date Until 1 st Call Date: fixed Thereafter: resettable to mid-swaps + [x]% + step-up Interest reset periods equivalent to non-call periods (i.e. NC7 resets every 7 years) 25 bps at the later of 2023 and the first call date; additional 75 bps 20 years after the first call date Cumulative and compounding optional deferral Deferred interest repayable within 10 business days following certain distribution and other payments on equity or parity securities Tax deductibility / Accounting / Rating Agency / Minimal amount outstanding (all at 101% of par), Gross-Up (at par) Subordinated, senior only to ordinary shares and actions de préférence

14 Next steps What we have to achieve Group Review EDF cost and capex trajectory (1) France Tariff equation in France ARENH formula ERDF International Right decision on New Nuclear Build in the UK in a tougher environment Europe Weaker power and gas demand across Europe Fiscal pressure Italy Edison s renegotiations on gas supply contracts 14 to deliver sustainable growth Average annual growth of EBITDA (2) : 4%-6% Growth of net income excluding non-recurring items: 5%-10% Net financial debt/ebitda (3) < 2.5x Dividend at least stable Beyond 2012 Assumption : stable 2013 EBITDA, growth resuming in 2014 Target of dividend at least stable over the period (1) Excluding capex and opex related to nuclear safety (2) CAGR at constant scope and exchange rates (3) Group has found an agreement with the French State on the repayment of the CSPE deficit on 14 January 2013, but the discussions are still ongoing for it to have an impact on the Group net financial debt.

15 Investor Presentation European Deal Roadshow EDF Group: Financial highlights and credit profile

16 EDF Group: Financial highlights and credit profile EDF : A leading international utility Europe Other continents ~13% (1) Luminus NORTH AMERICA EDF Energies Nouvelles EDF Trading TWh Global generation ~80% nuclear ~8% fossil fired ~7% renewables (2) ~5% gas ~61.5% (1) ~4% (1) 37.7 million customers 14.8bn EBITDA (2011) (2) Including hydropower Other businesses 16 (1) In % of Group EBITDA : Edison is consolidated at 48.96% in 2011

17 Consolidated EDF Group: Financial accounts highlights First half and 2012 credit profile Cash flow statements 17 In millions of euros H restated H EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) 8,675 9,075 Cancellation of non-cash items included in EBITDA (1,411) (783) Net financial expenses disbursed (1,007) (814) Income taxes paid (582) (892) Other elements Funds From Operations (FFO) 5,965 6,586 Change in net Working Capital Requirements (855) (2,458) Gross CAPEX (4,883) (6,233) Net proceeds from sale of assets Free Cash Flow 305 (1,756) Dedicated assets (210) (366) Other net financial investments 3,610 (583) Dividends paid in cash (1,239) (1,187) Other changes (225) 164 Monetary change in net financial debt 2,241 (3,728) Effects of change in scope 2,582 (2,292) Effects of currency fluctuations 413 (452) Other non-monetary changes (53) 41 Change in net financial debt 5,183 (6,431) Net Financial Debt Opening balance 34,389 33,285 Net Financial Debt Closing balance 29,206 39,716

18 EDF Group: Financial highlights and credit profile WCR increase during H1 2012: billion In millions of euros Decrease in payables* 157 Increase in receivables* 687 Increase in CSPE deficit** 1,304 Others 310 A typical increase in WCR should be corrected before the end of Excluding Optimisation and Trading activities ** Expenses Collected CSPE

19 Consolidated EDF Group: Financial accounts highlights First half and 2012 credit profile EDF Group simplified balance sheets In millions of euros 31/12/2011 restated 30/06/ /12/2011 restated 30/06/2012 Fixed assets 128, ,923 O/w Goodwill 11,648 10,655 Inventories and trade receivables 34,489 34,416 Other assets 52,287 55,231 Cash and equivalents and other liquid 16,184 19,185 assets (1) Shareholders equity (Group Share) 28,483 29,147 Non-controlling interests 4,189 5,756 Specific concession liabilities 41,769 42,074 Provisions 58,018 60,114 Financial liabilities (1) 49,469 58,901 Other liabilities 49,897 49,764 Assets held for sale (excluding cash and liquid assets) Liabilities linked to assets held for sale (excluding financial liabilities) Total Assets 231, ,756 Total Liabilities 231, , (1) Including companies held for sale and loans to RTE

20 EDF Group: Financial highlights and credit profile Change in net financial debt in H marked by the consolidation of Edison in billions of euros Free Cash Flow after Capex +0.4 Dedicated assets +1.2 Dividends paid in cash +2.4 Edison +0.6 Acquisitions/ disposals +0.5 Forex -0.5 Other CSPE (1) Main developments under way: Major projects excluding renewable energies: 9.1bn Renewable energies: 2.1bn December 2011 June (1) Receivables

21 Financing EDF Group: and Financial cash management highlights and credit profile Net financial debt calculation In millions of euros 30/06/ /12/ /06/2012 Financial debt (current and non-current) 46,803 50,034 60,050 Derivatives used to hedge debt 138 (834) (1,149) Net financial debt of companies held for sales 46,941 49,200 58,901 Cash and cash equivalents (5,693) (5,743) (4,920) Liquid financial assets* (excluding derivatives used to hedge operations) Net financial debt related to non- current assets classified as held for sale (12,042) (10,424) (14,265) Net financial debt 29,206 33,285 39, *Including loan to RTE

22 EDF Group: Financial highlights and credit profile An Active Asset/Liability Management Policy As of 30 June 2012 Asset-Liability duration (1) A targeted adequacy between cash flows and debt, as well as an objective to increase the average debt maturity Cash Flow exposure with debt by currency (1) Other (2) 4% Gross financial debt : Net financial debt : 60.0bn 39.7bn GBP 25% Average coupon : 4.1% Average maturity : 8.6 years Fixed rate / Floating rate : 79% / 21 % USD 11% EUR 60% 22 (1) Group financial debt after swaps as of 30 June ) Mainly CHF and JPY

23 EDF Group: Financial highlights and credit profile A strong liquidity position As of 30 June 2012 Liquidity position : 27.1bn Liquidity position excluding credit lines of 18.0bn, o/w (as of 31 December 2011) Available syndicated and bilateral credit facilities of 9.1bn (as of 30 June 2012) Financial debt 1 year : 14.7bn Breakdown of the liquidity position as of 30 June 2012 In billion of euros 4.9 Cash & cash equivalents 27.4% Net liquidity : 12.5bn Liquid assets 72.6%

24 Financing EDF Group: and Financial cash management highlights and credit profile Major existing bond issues Bond Date Maturity Currency Nominal Bond Date Maturity Currency Nominal E /27 mar-12 mar-27 EUR D USD /20 jan.-10 jan.-20 USD E /22 jan.-12 jav.-22 EUR D USD /40 jan.-10 jan.- 40 USD E /25 nov.-10 nov.-25 EUR D USD /14 jan.-09 jan.-14 USD E /40 nov.-10 nov.-40 EUR D USD /19 jan.-09 jan.-19 USD E /30 apr.-10 apr.-30 EUR D USD /39 jan.-09 jan.-39 USD E /24 sep.-09 sep.-24 EUR E /14 (retail) jul.-09 jul.-14 EUR D CHF /17 mar-10 sep.-17 CHF E /15 jan.-09 jan.-15 EUR D CHF mar-09 mar-17 CHF E /21 jan.-09 jan.-21 EUR D3CHF dec.-08 dec.-13 CHF E /13 nov.-08 jan.-13 EUR D2CHF nov.-08 dec.-13 CHF E /20 may-08 may-20 EUR D1CHF nov.-08 dec.-13 CHF E73 BIS 5 02/18 jan.-08 feb.-18 EUR D CHF jun-06 jan.-13 CHF E /13 oct.-03 nov.-13 EUR E /33 feb.-03 feb.-33 EUR D JPY jul.-09 oct.-14 JPY E /16 oct.-01 oct.-16 EUR D JPY /16 jul.-09 jul.-16 JPY E77 JPYL3 07/13 jul-08 jul.-13 JPY E /37 mar.-12 mar.-37 GBP E /41 jan.-12 oct.-41 GBP E /41 oct.-11 oct.-41 GBP E /50 sep.-10 sep.-50 GBP E /34 may-09 jun.-34 GBP E /22 dec.-08 dec.-22 GBP E /28 may-08 may-28 GBP E /31 jul.-01 jul.-31 GBP

25 Investor Presentation European Deal Roadshow French tariff equation

26 France - Supply French tariff equation Tariff equation Average bill breakdown including VAT Blue residential tariff (1 January 2013) 142.5/MWh Other taxes CSPE TURPE 44.0 Generation and commercial costs

27 French tariff equation French tariff increases in 2012 Tariff increases are made once a year: In 2012, the following increases went into effect on 23 July 2.0% for households and companies (blue tariff) 2.0% for other professional clients (yellow and green tariffs) These hikes include delivery increases (TURPE) effective 1 August 2012: 1.80% for distribution and 2.79% for transmission +2.0% + 1.9/MWh +2.0% + 1.7/MWh +2.0% + 1.3/MWh 95.5/MWh 97.4/MWh 84.4/MWh 86.1/MWh + 0.8/MWh + 0.6/MWh 63.3/MWh + 0.3/MWh 64.6/MWh TURPE Energy + supply + 1.1/MWh + 1.1/MWh + 0.9/MWh Blue 2011 tariff 2012 Yellow 2011 tariff 2012 Green 2011 tariff 2012 Higher share of energy and supply component on residential customers and small businesses 27

28 French tariff equation ARENH volumes allocated to competitors In TWh 2011 ARENH ( 40/MWh) ARENH ( 42/MWh) ARENH ( 42/MWh) 30.5 H2 volumes supplied H1 volumes supplied H2 volumes supplied Maximum total volume of EDF s sales to competing suppliers: 100 TWh (1) Volumes allocated equivalent to 85% of supplies Option for the same volumes for the first six months of (1) Determined by law

29 French tariff equation CSPE: Evolution of the contribution CSPE (Contribution to electricity public service): Charged to end users via an "other services" line on their electricity bill Collected by network operators and electricity suppliers Periodically amended: "Barring a decree setting the amount of the contribution due for a given year prior to 31 December of the previous year, the amount proposed by the Energy Regulation Commission (CRE) French regulator, in accordance with the preceding paragraph, enters into force on 1 January, within the limit however of an increase of 0.003/KWh with respect to the amount applied before this date". 13.5/MWh 4.5/MWh 7.5/MWh 9/MWh 10.5/MWh 1 January 1 August 1 July January

30 French tariff equation Significant progress over the past 2 years 2010: Ceiling removed on the CSPE and a decree sets an annual increase of 3/MWh 11 CSPE deficit in billion euros and CSPE in /MWh 9 13, : Sharp increase of the deficit linked to wind and solar power output rise 7 4,5 4,5 8,1* 9,8* : French Energy Regulator (CRE) deems as well-founded EDF s requests to be compensated for the financial costs related to the CSPE deficit January 2013: EDF and the French State reach an agreement allowing the repayment of 4.9bn CSPE receivable CSPE Charges CSPE Revenue CSPE mechanism deficit CSPE in /MWh 30 * Average CSPE over the period: 7.5/MWh on January 2011 rising to 9/MWh on 1 August 2011 and to 10.5/MWh on 1 July 2012.

31 Investor Presentation European Deal Roadshow Nuclear provisions and dedicated assets

32 Nuclear provisions and dedicated assets Group nuclear provisions: 38.6 billion In millions of euros EDF Group scope Changes over period (669) (753) Other changes Translation Reductions Allowances Discounting adjustments 38,673 38,555 (456) 31/12/ /06/

33 Nuclear provisions and dedicated assets Dedicated assets: 16.5bn, or 88% coverage of liabilities Provisions at 30 June 2012: m Last core: management of spent fuel Cost of dismantling "first generation" power plants m: Dedicated assets at 30 June RTE Cost of dismantling pressurized water reactors (PWR) Other dedicated assets LT management of radioactive waste The coverage rate is 88%, the Law requires a coverage rate of at least 75% and sets an objective of 100% from June 2016

34 Nuclear provisions and dedicated assets EDF s dedicated assets Cover decommissioning costs of nuclear plants and storage and long-term management of radioactive waste Date of incorporation of the portfolio extended in June 2016 Portfolio composition at 30/06/2012 In millions of euros 50% of RTE shares 16,466 Shares and equity funds Good half-year performance RTE shares affected to the portfolio have fully played their role as a damper on overall performance Shares and bond funds H Performance (1) 5.10% 34 (1) Half-year performance, including RTE and before tax. Excluding RTE, the portfolio performance is 5.01%, compared with a benchmark of 5.44%

35 Investor Presentation European Deal Roadshow Strategy & investments

36 Strategy & investments A 10-year investment programme including a portion planned prior to Fukushima Safety improvements already accounted for in the extension of the operational lifespan (beyond 40 years) of plants will be pushed forward by 5-10 years on average (depending on the technical requirements) including: Additional resources for electricity and water supplies Emergency power removal systems in the event of multiple failures Improving filtration of radioactive materials in the event of a serious incident Already planned New A total of approx. 10bn (1) New improvements: Increasing protection of sites beyond their design specifications (earthquake, floods) Core" materials that can withstand the severity of this type of earthquake or flood Additional crisis resources in the event all reactors at one site are affected: Local resources (crisis centre) National resources (Rapid Response Nuclear Task Force, or FARN) 36 Roll-out schedule whose effectiveness depends on the capacities of the industrial sector (1) Estimate in constant euros

37 Strategy & investments RTE Reference scenario of the French generation mix for 2030 (report of 22 July 2011) Net capacity in GW Mix in % Stability of nuclear and hydro capacities Reduction in coal and oil capacities Strong increase in photovoltaic and wind capacities 8,7% ,2% GW 39,3% 6,5% 15,2% 9,2% 5,4% GW End 14,4% ,8% 20,3% 37 Nuclear Hydro Coal/Oil CCGT Decentralized thermal energy Wind Photovoltaic Other Nuclear Conventional thermal energy Other Hydro Renewables

38 Strategy & investments An update on the Flamanville 3 EPR project Significant milestones have been reached (as of November 12) More than 93% of civil engineering has been completed 36 % of electromechanical assemblies in place Intake canal of the pumping station came on stream Full cost for the construction has increased by 2bn to 8bn (1) First 3 rd generation nuclear power station to be build in France Development of the boiler design, additional engineering studies, integration of new regulatory requirements Technical contingencies (replacement of 45 consoles) Production of the first kws still schedule for (1) On a constant currency basis

39 Strategy & investments China (TNPJVC) Taishan 1 & 2 (EDF 30%) 2 EPRs under construction Construction in progress at end-september 2012: 39 Installation of the 2nd reactor building in September End of the major civil engineering works on the reactor buildings Steam generators to be positioned in reactor 1

40 Strategy & investments New Nuclear project in the UK Important milestones reached: July 2011: "Nuclear Site License" for Hinkley Point deemed admissible by the Nuclear Safety Authority November 2011: Building permits declared admissible by the Infrastructure Planning Commission (IPC) December 2011: Agreement through the Safety Authority on design in the process of certification of the EPR design February 2012: First agreements with suppliers: Kier BAM for the work of site preparation, Areva for the supply of boilers and systems, instrumentation and control systems Bridgewater College for training May 2012: presentation by the British government's bill on energy including establishing "contracts for difference" (1) June 2012: Selection of the joint venture Bouygues TP / Laing O'Rourke as "preferred bidder" for the civil works of Hinkley Point December 2012: Planning Inspectorate makes recommendations on EDF Energy s new nuclear project December 2012: Government meets commitment for Energy s Bill second reading before Christmas 40 (1) Contractual mechanism to encourage investment in low-co 2 energy

41 Renewable energies EDF EN Installed capacity and capacity under construction by type, at end-june 2012 in MW Gross at 31/12/2011 at 30/06/2012 at 31/12/2011 at 30/06/2012 Net Wind 3, , , ,804.9 Solar Hydro Biogas Biomass Cogeneration Total installed capacity 4, , , ,396.2 Wind under construction 1, , ,240.9 Solar under construction Other under construction Total capacity under construction 1, , , ,486.8 Total 5, , , ,

42 Edison Gas contracts Gas contract renegotiations (Qatar, Libya, Algeria) Russian contract renegotiated in 2011 Renegotiations on Libyan and Qatari contracts should materialize by H and in 2013 for the contract with Algeria Total volume of Long term gas contracts 14.4 bcm/year Edison + EDF 2011 gas uses (bcm) 7.6 Edison EDF Group (without Edison) ,000 gas customers in Italy at end-june 2012 Before transaction After transaction 42

43 Investor Presentation European Deal Roadshow Transaction structure

44 Transaction structure Indicative Terms All Tranches FINANCIAL PERFORMANCE A/Reg S Tranche EUR PerpNC7 EUR PerpNC12 GBP PerpNC13 USD PerpNC10 Issuer Call Options [Jan] 2020, and every interest payment date thereafter [Jan] 2025, and every interest payment date thereafter [Jan] 2026, and every interest payment date thereafter [Jan] 2023, and every interest payment date thereafter Reduction in S&P Equity Credit [Jan] 2020 [Jan] 2025 [Jan] 2026 [Jan] 2023 Interest Rate (Initial interest rate, reset, and step-ups) Until [Jan] 2020: [ ]% fixed, payable annually in arrear (equivalent to 7-year midswaps + [x]%) Thereafter: reset every 7 years to a new fixed rate of 7-year mid-swaps + [x]% + step-up Until [Jan] 2025: [ ]% fixed, payable annually in arrear (equivalent to 12-year mid-swaps + [x]%) Thereafter: reset every 12 years to a new fixed rate of 12-year midswaps + [x]% + step-up Until [Jan] 2026: [ ]% fixed, payable semi-annually in arrear (equivalent to 13-year mid-swaps + [x]%) Thereafter: reset every 13 years to a new fixed rate of 13-year midswaps + [x]% + step-up Until [Jan] 2023: [ ]% fixed, payable semi-annually in arrear (equivalent to US$ 10-year midswaps + [x]%) Thereafter: reset every 10 years to a new fixed rate of US$ 10-year mid-swaps + [x]% + step-up Step-up 25 bps in 2023 and additional 75 bps in year bps in 2025 and additional 75 bps in year bps in 2026 and additional 75 bps in year bps in 2023 and additional 75 bps in year Issuer: Electricité de France SA Ratings: Issuer senior ratings: Aa3 / A+ / A+. Instrument ratings: A3 / BBB+ / A- (expected) Maturity: Perpetual Optional Interest Deferral: Cumulative and compounding optional deferral; deferred interest repayable within 10 business days following certain distribution and other payments on equity or parity securities ( pusher on deferred interest ) Special Event Call Options: Tax deductibility / Accounting / Rating Agency / Minimal amount outstanding (all at 101% of par), Gross-Up (at par) Ranking: Subordinated, senior only to ordinary shares and actions de préférence Exchange / Variation: Yes, but subject to the terms of the exchange or variation not being prejudicial to the interests of the noteholders

45 Transaction structure EDF Dividend History EDF: Consistent Payment of Common Dividends FINANCIAL PERFORMANCE 2010 EDF Hybrid: Any Deferred Interest must be Settled Upon Common Dividend Payment (and other events) EDF exercises its option to defer the coupon payment (cumulative and compounding) EDF must settle deferred interest (and additional interest) on hybrid in cash Dividend per share ( ) EDF does any of the following: Redemption of the Notes Declaration or discretionanry payment on any equity securities (e.g. dividends) or any parity securities Acquisition, redemption or purchase of equity or parity securities Liquidation or sale of the whole business The dividend distribution policy is determined by EDF s Board of Directors, and typically comprises an interim dividend paid in December of the same fiscal year with an additional dividend paid in early June of the following year For fiscal year 2012 (paid in 2013) the dividend will at least be stable with the one paid in 2012 for year 2011 ( 1.15 per share) The company has the option to defer coupon payments at any interest payment date. However, once shareholders resolve to pay a dividend at the Annual Meeting, all deferred coupon payments must be settled in cash. A discretionary payment on parity securities or a redemption or repurchase of junior or parity securities would also trigger the settlement of deferred coupon payments 45

46 Transaction structure FINANCIAL PERFORMANCE 2010 Recent Corporate Utility Hybrids Issuer EDF Indicative Terms Veolia Environnement SSE BG Energy RWE Alliander Suez Environnement Issue Date [Jan] 2013 Jan 2013 Sep 2012 Jun 2012 Mar 2012 Nov-2010 Sept 2010 Currency / Size / benchmarks 1bn 400m 750m US$ 700m 500m 600m US$ 500m 750m US$ 1,000m (incl. US$500m tap in Jun 2012) 500m 750m Issuer Rating* Aa3 / A+ / A+ Baa1 / BBB+ A3 / A- / A- A2 / A / A A3 / BBB+ / A- Aa3 / A+ A3 Instrument Rat.* [A3 / BBB+ / A-] (expected) Baa3 / BBB- Baa2 / BBB Baa1 / BBB+ / BBB+ Baa2 / BBB- / BBB A3 / A- Baa2 Maturity Date Perpetual Perpetual Perpetual 2072 : Perpetual / US$: 2072 Perpetual Perpetual Issuer Call Options Special Event Call Options Interest Rate (Initial interest rate, reset, and step-ups) Optional Interest Deferral :NC7: 2020, and on any IPD thereafter NC12: 2025, and on any IPD thereafter 2018 and every 5 yrs thereafter : 2026, any IPD thereafter Tax / Accounting / Rating Agency / Minimal amount outstanding, at 101 Gross-Up at par NC7 [ ] % / NC12 [ ]% / NC13: [ ]% Yr 7/12/13+: Reset every 7/12/13 years 25 bps step-up at the first call date or (if later) year 10 & additional 75bps 20 years after the first call date Cumulative and compounding Tax / Accounting / Rating Agency / Minimal amount outstanding, at 101 to first step-up date, at par thereafter Gross-Up at par 4.45% ( ) / 4.85% ( ) Yr 5+: Reset every 5 yrs 25bps step-up in yr 10 & additional 75bps in yr 25 Cumulative and compounding Pusher / Stopper Pusher on deferred interest Pusher on deferred interest Ranking Subordinated, senior only to ordinary shares and actions de préférence Subordinated, senior only to ordinary shares and actions de préférence 2017, 2022 and on any reset date thereafter Gross-Up / Minimal amount outstanding, at par Tax / Accounting / Rating Agency, at % (,US$) Yr5+: Reset every 5yrs 25bps step-up in yr 10 & additional 75bps in yr 25 Cumulative and compounding Pusher on deferred interest Subordinated, senior only to common equity 2017, 2022 and on any IPD thereafter Gross-Up / Minimal amount outstanding, at par Tax / Rating Agency, at 101 to first step date, par thereafter 6.500% (,, US$) Yr5.5: Reset at 5-yr ms Yr10.5+: Floating rate 6m/ 12m (US$/ & ) 25bps step-up in yr 10.5 & additional 75bps in yr 25.5 Cumulative and compounding : 2019, 2024 and on any IPD thereafter US$: 2017, 2022 and on any IPD thereafter Gross-Up at par Tax / Accounting make-whole to first step date Rating Agency at 101 Minimal amount outstanding at 101 to first step date 7.000% (US$, ) : Yr7+: Reset every 5 yrs 25bps step-up in yr 12 & additional 75bps in yr 27 US$: Yr5.5+: Reset every 5yrs 25bps step-up in yr 10.5 & additional 75bps in yr 25.5 Cumulative (not compounding) Pusher on deferred interest Pusher on deferred interest Subordinated, senior only to common equity Subordinated, senior only to common equity and German preference shares 2015, 2020 and any IPD thereafter Gross-Up / Tax / Accounting / Minimal amount outstanding at make-whole until step-up date Rating Agency at 101 until step-up date 4.875% Yr 5: Reset at 5-yr ms Yr10: Reset at 12mE; 100bps step-up in yr 10 Cumulative and compounding Pusher on interest, 6-m lookback Subordinated, senior only to common equity 2015, 2020 and on any IPD thereafter Gross-Up at par Tax / Accounting / Rating Agency / Minimal amount outstanding at 101 until step-up date 4.82% Yr 5: Reset at 5-yr ms Yr 10: Reset at 3mE 100bps step-up in yr 10 Cumulative and compounding Pusher on interest, 6-m look-back Subordinated, senior only to common equity, actions de preference and more junior subordinated instruments Listing Euronext Paris Euronext Paris London London Luxembourg Euronext Amsterdam Euronext Paris Reduction in S&P Equity Credit After year 7,12,13 After year 5 After year 5 After year 5.5 : After year 7 US$: After year 5.5 NA NA 46 *A security rating is not a recommendation to buy, sell or hold securities and should be evaluated independently of any other rating. The rating is subject to revision or withdrawal at any time by the assigning organization.

47 Investor presentation European deal roadshow