- 1Q 2017 Sales - Investor Presentation. June 2017

Transcription

1 - 1Q 2017 Sales - Investor Presentation June 2017

2 Q SALES 2

3 DISCLAIMER This presentation does not constitute an offer to sell securities in the United States or any other jurisdiction. No reliance should be placed on the accuracy, completeness or correctness of the information or opinions contained in this presentation, and none of EDF representatives shall bear any liability for any loss arising from any use of this presentation or its contents. The present document may contain forward-looking statements and targets concerning the Group s strategy, financial position or results. EDF considers that these forward-looking statements and targets are based on reasonable assumptions as of the present document publication, which can be however inaccurate and are subject to numerous risks and uncertainties. There is no assurance that expected events will occur and that expected results will actually be achieved. Important factors that could cause actual results, performance or achievements of the Group to differ materially from those contemplated in this document include in particular the successful implementation of EDF strategic, financial and operational initiatives based on its current business model as an integrated operator, changes in the competitive and regulatory framework of the energy markets, as well as risk and uncertainties relating to the Group s activities, its international scope, the climatic environment, the volatility of raw materials prices and currency exchange rates, technological changes, and changes in the economy. Detailed information regarding these uncertainties and potential risks are available in the reference document (Document de référence) of EDF filed with the Autorité des marchés financiers on 6 March 2017, 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 update forward-looking information contained in this presentation to reflect any unexpected events or circumstances arising after the date of this presentation. Q SALES 3

4 KEY ACHIEVEMENTS IN PERFORMANCE PLAN CAPITAL INCREASE Final gross proceeds: 4,018m resulting in the issuance of 633 million new shares Market subscription rate: 185.9% Use of proceeds: Finance the Group s development operations during the period, in line with the CAP 2030 strategy Strengthen the Group s financial flexibility DISPOSAL PLAN Sale on 31 March 2017 to Caisse des Dépôts and CNP Assurances of a 49.9% stake in the company holding owning 100% of RTE Valuation of RTE: 8.2bn, with a potential value complement for EDF of up to 100m Sale of EDF Trading s coal and freight assets to JERA Trading, with EDF receiving on 4 April 2017 a 33% stake in JERA Trading Disposal on 31 January 2017 of the whole of EDF s stake in EDF DEMASZ to ENKSZ Q SALES 4

5 FINANCIAL HIGHLIGHTS 2016 DIVIDEND Proposal of a 0.90 dividend per share for 2016 at AGM on 18 May interim dividend paid in October 2016 Option to receive the dividend in new shares confirmed by the French State Ex-dividend date for final dividend of 0.40: 6 June 2017 Payment date and settlement of shares: 30 June 2017 LONG-TERM FINANCING 137bn or 1.1bn raised in January 2017, through a series of Samurai senior bond issues, ranging from 10 to 20 years First public Samurai Green Bonds, with the issuance of two green tranches totalling 26bn (or ~ 210m) dedicated to the financing of renewable investments Total Green Bonds issued to date by EDF group: ~ 4.5bn Q SALES 5

6 OPERATING HIGHLIGHTS SALES PERFORMANCE Group sales: 21.1bn, flat in organic terms compared to Q France Generation & supply activities: +1.7% in particular due to ARENH sales Dalkia: +15.4% benefitting mostly from favourable price effects Italy: -10.4% penalised by realised gas price level OPERATING PERFORMANCE Nuclear generation France: -7.6TWh in line with expectations considering outages for additional controls initiated in 2016 United Kingdom: +0.3TWh Q SALES 6

7 GROUP SALES STABLE IN ORGANIC TERMS (1) In m Organic change: +0.0% (1) 21, Scope, forex and inter-segment operations (2) France - Generation and supply activities France - Regulated activities United Kingdom Italy Other activities Other international 21,128 Mainly UK forex O/w Dalkia (+ 155m) Q Q (1) Organic change at constant scope and exchange rates financial information reflecting the new segmental reporting since (2) As of 2016, breakdown of sales across the segment, before inter-segment eliminations Q SALES 7

8 FRANCE GENERATION AND SUPPLY ACTIVITIES In m Organic change: +1.7% (1) , ,354 Weather (+0.8TWh) and 2016 leap year Tariffs Downstream market conditions ARENH sales Net sales on markets (2) Other 6.16 Competition (-3.4TWh) offset by positive volume and price effects Mainly generation and ARENH supply O/w purchase obligations (+ 159m) Q Q (1) Organic change at constant scope and exchange rates - financial information reflecting the new segmental reporting since (2) Excluding additional required energy purchases on markets Q SALES 8

9 FRANCE: UPSTREAM/DOWNSTREAM BALANCE In TWh OUTPUT/PURCHASES Q vs. Q CONSUMPTION/SALES Q vs. Q Purchase obligations LT & structured purchases Fossil-fired Hydropower (1) Net market sales ARENH supply Structured sales, auctions and other (2) Nuclear End-customers 97-2 NB: EDF excluding French islands electrical activities (1) Hydro output after deduction of pumped volumes: 9TWh (2) Including hydro pumped volumes of 2TWh Q SALES 9

10 FRANCE NUCLEAR OUTPUT: IN LINE WITH EXPECTATIONS CONSIDERING OUTAGES FOR ADDITIONAL CONTROLS INITIATED IN H Monthly nuclear output (in TWh) Cumulative nuclear output (in TWh) H H2 Nuclear shortfall 2016 vs % % % % Jan. Feb. March April May June July August Sept. Oct. Nov. Dec. Jan. Feb. March April 2017 nuclear output target confirmed: TWh Q SALES 10

11 FRANCE HYDRO OUTPUT: HYDRO CONDITIONS BELOW AVERAGE In TWh 2016 cumulative output (1) 2017 cumulative output (1) 12.3 (2) 10.8 (2) -17.0% % Normal hydro productibility levels Seasonal mins. and maxs. between 2007 and % % % % % 60% 2017 January February March April 20% March June Sept. Dec. (1) Hydropower excluding French islands electrical activities, before deduction of pumped volumes (2) Output after deduction of pumped volumes: 10.4TWh in Q and 8.9TWh in Q Q SALES 11

12 2017 TARGETS & 2018 ROAD MAP CONFIRMED NUCLEAR OUTPUT EBITDA (1) 2017 NET FINANCIAL DEBT/EBITDA (2) PAYOUT RATIO OF NET INCOME EXCLUDING NON-RECURRING ITEMS (3) TWh 13.7bn 14.3bn 2.5x 55% to 65% 2018 OPEX (4) NET INVESTMENTS EXCLUDING LINKY, NEW DEVELOPMENTS AND ASSET DISPOSALS EBITDA (5) CASH FLOW (5)(6) NET FINANCIAL DEBT/EBITDA (5)(6) PAYOUT RATIO OF NET INCOME EXCLUDING NON-RECURRING ITEMS (3) - 0.7bn vs ~ 10.5bn 15.2bn 0 2.5x 50% (1) At 2016 exchange rate (2) At 2016 exchange rate and at an assumed discount rate on nuclear provisions of 4.1% in 2017 (3) Adjusted for the remuneration of hybrid bonds accounted for in equity (4) At constant scope, exchange and hypothesis of pensions discount rates. Excluding change in operating expenses of service activities (5) At 2016 exchange rate and assumption for 2018 power prices in France on volumes not hedged as of : 36/MWh (6) At 2016 exchange rate. Cash flow excluding Linky, new developments and asset disposals, with an assumed discount rate on nuclear provisions of 4.1% in 2017 and 3.9% in 2018, excluding interim dividend for fiscal year 2018, which will be decided in H Q SALES 12

13 BEYOND 2018 OPEX REDUCTION (1) in 2019 vs At least 1bn BEYOND 2018 ASSET DISPOSALS OVER PAYOUT RATIO OF NET INCOME EXCLUDING NON- RECURRING ITEMS (2) At least 10bn 45% to 50% (1) At constant scope, exchange and hypothesis of pensions discount rates. Excluding change in operating expenses of service activities (2) Adjusted for the remuneration of hybrid bonds accounted for in equity Q SALES 13

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15 Strategy Consolidated sales & investments EDF EN France International & other activities Markets CHANGE IN SALES BY REPORTING SEGMENT In millions of Euros Q Q % % org. (1) France Generation and supply activities 11,166 11, France Regulated activities 4,784 4, United Kingdom 2,929 2, Italy 3,119 2, Other International 1,546 1, Other activities 1,999 2, Inter-segment operations (2) (4,101) (4,073) Group 21,442 21, (1) Organic change at constant scope and exchange rates financial information reflecting the new segmental reporting since (2) As of 2016, breakdown of sales across the segments, before inter-segment eliminations Q SALES 15

16 Consolidated sales FLAMANVILLE 3 EPR Construction progress as of 31 March 2017 Completion of the main civil engineering work 1 st milestone of the new roadmap achieved on 15 March 2016, with finalisation of the primary coolant system, and the installation and assembly of the large components (all four steam generators, reactor vessel, pressurizer and reactor coolant pumps) Transfer of the control room to the teams that will operate the reactor Progress of electromechanical erection exceeded 80% Start of plant system test (pumping station, fuel building, turbogenerator unit ) Main steps in 2017 Beginning of the system performance tests on 15 March 2017, in parallel of finalization of mechanical erection Strategy & investments Opinion of ASN (2) on the results of the test programme aiming at proving the serviceability of bottom head and closure head of the reactor pressure vessel, expected at the end of 1 st semester 2017 EDF EN France Markets International & other activities One 1,650MW EPR under construction Roadmap for the Flamanville 3 project, drawn up in September 2015: Project cost set at bn (1) First fuel loading and start up of the reactor expected end 2018 Ramp up 2019: connection to the grid in the 2 nd quarter and then 100% capacity in the 4 th quarter (1) Excluding interim interests (2) ASN: Autorité de Sûreté Nucléaire Q SALES 16

17 Consolidated sales CHINA TAISHAN 1 & 2 (EDF 30%) Construction progress as of 31 March 2017 Unit 1 Finalization of electromechanical erection and system performance testing underway Containment building of reactor building, hydropower test of the primary circuit carried out in 2016 Hot functional testing (i.e. operation with nominal pressure and temperature values) Increase in pressure and temperature of the primary circuit, reactor protections testing realised, internal structures nn vibration testing realised Unit 2 Next steps Unit 1 Unit 2 Fuel delivery on site Ongoing safety review by the Chinese safety authority in order to authorise fuel loading Continuation of electromechanical erection, end of secondary circuit assembly, realization of the modifications of the command control to bring it to the level of the unit 1 End of hot functional testing and fuel loading Start-up in the second half of 2017 (1) Strategy & investments End of electromechanical erection, system performance testing Start-up in the first half of 2018 (1) (1) Source: CGN press release of 20 February 2017 ( Construction Progress of Taishan Nuclear Power Generating Units ) EDF EN France Markets International & other activities Q SALES 17

18 Consolidated sales Strategy & investments EDF EN France Markets International & other activities UK NUCLEAR NEW BUILD: FIRST NUCLEAR SAFETY CONCRETE GOAL ACHIEVED AT HINKLEY POINT C EDF signed contracts with the UK Government and Chinese partner CGN in London on 29 September 2016, sealing the final investment decision taken by the EDF Board on 28 July EDF s share is 66.5% and CGN s 33.5% First Nuclear Safety Concrete achieved at end March 2017 Currently 1,600 people working on site each day Update for Sizewell and Bradwell projects For Sizewell, EDF is reviewing feedback from the second stage consultation completed February 2017 For Bradwell, the UK government confirmed on 10 January 2017 that the nuclear regulator has been asked to begin the GDA for the UK HPR1000 nuclear technology Q SALES 18

19 Consolidated sales Strategy & investments EDF EN France Markets International & other activities SHARE CAPITAL INCREASE: OPERATION S RESULTS 632,741,004 shares to be issued 4,018m Subscription on an irreductible basis Subscription on a reductible basis Rights exercised Subscribed shares Granted shares Rate subscription 2,080M 624M i.e. 3,964m 624M i.e. 3,964m 98.7% Requested shares Granted shares Rate subscription 146M i.e. 929m 8M i.e. 53m 1.3% Total Demand/ Rate subscription 4,893m / 121.8% Total market demand / Rate subscription 1,893m / 185.9% Q SALES 19

20 Consolidated sales Strategy & investments EDF EN France Markets International & other activities EDF EN: NET INSTALLED CAPACITY AS OF 31 MARCH MW 23MWp 112MW 2,426MW 89MWp 354MW 230MW 188MW 242MW 170MW 834MW 207MWp 179MW 187MW 6MW 47MWp 27MW 265MW 74MWp 217MW 6MW 3MW 54MW 106MW 238MW 12MWp 109MWp 18MW 72MW 78MWp 14MW 267MW 66MW 40MW Wind installed (MW) Solar installed (MWp) Wind and solar under construction (MW) Gross Net Installed capacity: 9,803MW 6,345MW Capacity under construction: 1,845MW 1,297MW Total: 11,648MW 7,642MW Other technologies Installed 208MW Under construction 25MW Source: EDF Énergies Nouvelles Note: MWp: Megawatt peak (measure of the power under laboratory lighting and temperature conditions) Q SALES 20

21 Consolidated sales Strategy & investments EDF EN France Markets International & other activities EDF EN: INSTALLED CAPACITY AND CAPACITY UNDER CONSTRUCTION, BY TECHNOLOGY, AS OF 31 MARCH 2017 In MW Gross (1) Net (2) 31/12/ /03/ /12/ /03/2017 Wind 8,495 8,613 5,434 5,498 Solar Hydro Biogas Biomass Cogeneration Other Total installed capacity 9,614 9,803 6,263 6,345 Wind under construction 1,221 1, Solar under construction Other under construction Total capacity under construction 1,780 1,845 1,188 1,297 (1) Gross capacity: total capacity of the facilities in which EDF Énergies Nouvelles has a stake (2) Net capacity: capacity corresponding to EDF Énergies Nouvelles stake Q SALES 21

22 Consolidated sales Strategy & investments ELECTRICITY BUSINESS OF EDF IN FRANCE EDF EN France Markets International & other activities In TWh Sales to end customers (1)(2) Local authorities, companies and professionals (not at historical tariffs and including transitional offer for 3.5TWh) Local authorities, companies and professionals (at historical tariffs) (3) Residential customers Q Q Q Decrease in portfolio volume at end-march 2017 vs. end-march 2016 of -2.5TWh (1) Rounded to the nearest tenth (2) Including EDF s own consumption (3) Blue professional tariff, LDC (Local Distribution Companies) at transfer price and Yellow and Green tariffs, below 36kVA from 2016 Q SALES 22

23 Consolidated sales Strategy & investments ELECTRICITY BUSINESS OF EDF IN FRANCE HISTORICAL TARIFFS SPLIT BY COLOUR In TWh Sales to end customers for Q (1)(2) Local authorities, companies and professionals (not at historical tariffs) EDF EN France Markets International & other activities LDC (3) transfer price Green and Yellow tariffs (4) Local authorities, companies and professionals (at historical tariffs) Blue tariff Residential customers 45.8 (1) Rounded to the nearest tenth (2) Including EDF s own consumption (3) Local Distribution Companies (LDCs) (4) Of which Yellow tariff for 0.03TWh and Green tariff for 0.07TWh - tariffs lower than 36kVA that persist beyond 2015 Q SALES 23

24 Consolidated sales Strategy & investments EDF EN France Markets International & other activities FRENCH NUCLEAR FLEET: FULLY SAFE OPERATION OF THE STEAM GENERATORS CONFIRMED BY THE FRENCH NUCLEAR SAFETY AUTHORITY (ASN) When a higher-than-expected carbon concentration was discovered in some parts of the pressure vessel of the Flamanville EPR reactor (carbon segregation), EDF and AREVA conducted analyses to identify the risk of such a phenomenon on forged parts installed on the current nuclear fleet These analyses revealed that this risk could affect 46 steam generators manufactured by Creusot Forge and Japan Casting Forging Corporation, installed on 18 generation units The first measurements demonstrated the existence of margins allowing for the safe operation of the reactors To reinforce this safety demonstration, EDF carried out in-depth controls during the planned outages of the relevant reactors, which required the outages to be extended. These controls were of two types: Tests using ultrasound to check for the absence of metallurgical defects Measurements of surface carbon levels at different areas of the bottoms of each steam generator These inspections allowed the restart of the reactors equipped with steam generator bottoms made by Creusot Forge, or 6 generation units (1) On 7 October 2016, EDF submitted to the ASN a technical report supporting the fully safe operation of the steam generators manufactured by JCFC, which are used in ten 900MW reactors. This generic demonstration was approved by the ASN on 5 December 2016 On 17 January 2017, the ASN issued a statement regarding the last two reactors of the 1,450MW fleet that were still to be controlled: the ASN approved the safety demonstration regarding the steam generators of Civaux 2 As of 1 st March 2017, the 18 reactors concerned by the issue of carbon segregation have been tested and granted approval to restart and are operating in complete safety Reactors not affected by carbon segregation Reactors affected by carbon segregation and controled (1) Please refer to the press release published by EDF on 21 October 2016 Q SALES 24

25 Consolidated sales Strategy & investments EDF EN France Markets International & other activities FRENCH NUCLEAR FLEET: QUALITY ASSURANCE ANOMALIES IN AREVA S MANUFACTURING FILES AREVA s quality control audit has highlighted irregularities in parts of the manufacturing tracking records for the parts forged in the Creusot Forge factory, in regards to either manufacturing parameters or test results. The affected files had been marked at the time with one or two bars, hence the name barred folders Informed of the issue starting in April 2016, EDF is closely monitoring AREVA s analysis of all records used for the identification and characterisation of the barred files for the parts intended for the French nuclear fleet. For each of these files, EDF is also carrying out its own independent analysis The French Nuclear Safety Authority is regularly informed of these analyses Mid-October 2016, EDF informed the ASN that it has completed the characterisation of the barred folders relating to the reactors in operation and confirmed that the 88 identified irregularities have no impact on the safety of reactors in question Regarding the Fessenheim 2 reactor, the noted irregularity involves the forging file for the lower part of a steam generator. In order to undertake additional investigations, EDF shut down this reactor on 13 June 2016 in advance of its planned outage. AREVA submitted to the ASN, and started in September, a programme of additional tests on the steam generator. The results, transmitted by AREVA to the ASN on 6 January 2017, confirm the integrity of the steam generator and its ability to operate safely. The issue is currently being investigated by the ASN Beyond the barred folders, AREVA has launched an analysis programme on around 9,000 manufacturing records, including 1,600 manufacturing records of components used in the currently operating fleet One of these irregularities concerns the manufacturing file of a new steam generator, not yet installed and initially intended for Gravelines reactor 5. The reactor, shut down since 9 April 2016 for its 3 rd ten-year inspection, will be able to operate in all safety with original steam generators after a procedure which has been approved by the Nuclear Safety Authority Q SALES 25

26 Consolidated sales Strategy & investments CAPACITY MARKET IN 2017 AND IMPACT FOR EDF First capacity auction 2017 organised by EPEX Spot on 15 December GW of capacity certificates traded Price of capacity: 10/kW (reference price for 2017) EDF EN France Markets International & other activities On 27 April 2017, a 2 nd capacity auction for remaining 2017 volumes cleared at 10.4/kW EDF certified 76GW capacity for 2017 EDF, both a capacity-holding operator and a entity subject to capacity obligations as supplier, holds a positive net position which it can sell on the market Financial impact for EDF Only part of the certified capacity value can be recovered ARENH volumes subscribed by alternative suppliers or included in EDF's supply offers including Blue tariffs, Exeltium, LCD (1) tariffs, are delivered with certificates of capacity 2017 EBITDA impact will be linked to the timing of the capacity cost pass-through to the different categories of end-customers, in principle in The pass-through of capacity costs in regulated tariffs should take place as part of the next tariff movement, as its principle was enacted by the CRE s decision of 13 July 2016 (1) Local Distribution Companies (LDCs) Q SALES 26

27 Consolidated sales LINKY (1) SMART METERS DEPLOYMENT The project Roll-out since the end of 2015 with a goal of 34 millions meters (ie 90% of the fleet) installed by 2021 Investment amount estimated at 4.5bn over the deployment period Economic equilibrium based on gains made possible by the Linky project (reduction of non technical losses, reduction in the number of technical and meter-reading, optimization of network management, MDE (2) gains, etc.) The tariff framework of the project (3) Strategy & investments Specific regulation over a 20-year period (Linky-dedicated RAB) Pre-tax nominal return rate of 7.25% and 3% additional premium with penalties in return for an incentive regulation relative to the respect of the costs and the deadlines and the performance of the system (the penalties may not lead to a total pre-tax nominal compensation rate of less than 5.25% ) Application of a tariff difference on Linky revenues until 2021, accompanied by a compensation for the costs of financial carry, and totally cleared by 2030 Roll-out at end March 2017 EDF EN France Markets International & other activities Since the first pilots and the start of the general roll-out on 1 st December 2015, the installation is continuing, in line with the projected progress and cost path At end of March 2017, around 3.65 million clients are equipped with installed meters, and nearly 60,000 concentrators were installed in the substations. The deployment started in about 2,150 towns, in all regions of France The rhythm of installation of the Linky meters has risen from less than 3,000 meters/day in early 2016 to around 17,000 meters/day at end of March 2017, in line with the increase in the number of installers and the expected installation rate (1) Linky is a project of Enedis, independant subsidiary of EDF under the provisions of the French Energy Code (2) MDE: Demand-side management (3) CRE s ruling of 17 July 2014 Q SALES 27

28 Consolidated sales Strategy & investments EDF EN France Markets International & other activities TURPE 5 HTA/BT (DISTRIBUTION): KEY FEATURES TURPE 5 HTA/BT largely takes up the main principles of TURPE 4 HTA/BT: Remuneration of the Regulated Asset Basis (2.6% from a 51bn grid RAB and 10.25% from a 1.6bn (1) Linky RAB) Remuneration of Regulated Equity (4.1% from 5.8bn (1) ) Coverage of the amortisation trajectory (on the basis of an Enedis proposal, 2.5bn except Linky and 0.16bn Linky (1) ) System OPEX: coverage of system services and energy purchases, incentive on losses Incentive on business OPEX, mainly personnel expenses and procurement costs The CRE reinforced the incentive regulation mechanisms (quality of supply, level of requirements in terms of quality of services, performance of the controllable OPEX, incentive on losses) After the increase of 2.71% (2) on 1 st August 2017, the tariffs will be adjusted every year starting 2018, on 1 st August, according to the formula CPI + K: CPI = Consumer Price Index for all France, excluding tobacco, in year N-1 K = annual clearance term of the CRCP (within a limit of +/-2%; the uncleared amounts, where applicable, being pending appeal to the following years) Source: Commission de Régulation de l Énergie. Chiffres moyens sur (1) Planned average figures for the TURPE 5 tariff period ( ) (2) Four actions for annulment were filed against the decision on the TURPE HTA-BT with the State Council by Enedis, EDF, the Minister for Energy and the trade union CFE-Energies Q SALES 28

29 Consolidated sales TURPE 5 HTA/BT (DISTRIBUTION): TOTAL AUTHORISED REVENUE In millions of euros Strategy & investments EDF EN France Markets International & other activities Equity charges Linky 326 Equity charges except Linky 4,114 Capital charges approved by CRE 4,440 Business opex: CRE incentive on Enedis (1) proposal 4,704 System opex: cost coverage Linky CRL and CRCP clearance Total authorised revenue approved by CRE 4,610 (290) 13,464 Source: Commission de Régulation de l Énergie. Chiffres moyens sur (1) Enedis, independent subsidiary of EDF under the provisions of the French Energy Code Q SALES 29

30 Consolidated sales Strategy & investments International & EDF EN France Markets other activities ENERGY TRANSITION LAW FOR GREEN GROWTH FROM THE PPE (1) TO EDF S STRATEGIC PLAN October 2016 April 2017 End 2018 End 2023 Approval of the PPE (Decree of 27 October 2016) Submission of the Strategic Plan to the Minister for Energy (Board of 6 April 2017) (2) Further information request of the Minister for Energy (Letter of 21 April 2017) End of the first PPE period End of the second PPE period Strategic Plan (PSE) Obligation imposed on EDF as a producer of more than one third of national electricity output Proposes changes in generation facilities to meet the objectives of the first period of the PPE Submitted to the Energy Minister within six months of the approval of the PPE The Minister verifies the compatibility of the Strategic Plan with the PPE, if incompatibilities exist, obligation to draft a new Strategic Plan Obligation for EDF to report annually on the implementation of the PSE strategic plan to Parliament Government Commissioner s right to veto The Government Commissioner has the right to oppose any investment decision incompatible with the objectives of the StrategicPlan or with the PPE in the absence of a Strategic Plan If the Government Commissioner s opposition is validated by the Minister of Energy, no investment decision without revision of the Strategic Plan (1) PPE: Programmation Pluriannuelle de l État (2) Please refer to the press release published by EDF on 6 April 2017 Q SALES 30

31 Consolidated sales Strategy & investments EDF EN France Markets International & other activities PROJECT TO EXTEND HYDROPOWER CONCESSIONS The French State has the option to extend certain current hydropower concessions in exchange for the realisation, by the existing concessionaire, of additional investment needed to achieve energy policy objectives (1) The State notified to the European Commission (General Division Growth - "GROW") on 12 April 2017 a project for the extension of the concessions of the Truyère and Lot valleys in return for investments. These concessions, currently operated by EDF, provide: the best opportunity for a rapid increase in hydroelectric generation capacity in France, and the possibility of creating a STEP (pumped storage plant) enabling the mass storage of electrical energy necessary for the development of intermittent renewable energy sources This extension would therefore address security of supply requirements by by increasing the flexibility of the existing fleet Two-stage review of the extension project by the European Commission services 1. General Division GROW: review under concessions law 2. General Division Competition - COMP : review under European competition law, with respect to State aid rules and within the framework of the 22 October 2015 formal notice by DG COMP (2) (1) A provision of the law No of 17 August 2015 relating to the Energy Transition for Green Growth ( Loi TECV ) (2) The notification of this project does not suspend the formal notice procedure under Article 106/102 TFUE Q SALES 31

32 Investor Presentation Delivering on Cap 2030

33 AGENDA INVESTMENT HIGHLIGHTS CAP 2030 STRATEGY: TRANSFORMATION WELL ADVANCED KEY LEVERS FOR GROWTH Delivering on CAP

34 TRANSFORMATION OF THE GROUP UNDERWAY TO GROW IN A NEW MARKET ENVIRONMENT CAP 2030: ADDRESSING KEY CUSTOMER S DEMAND UNIQUE EXPERTISE IN NUCLEAR POWER 1 LEADERSHIP POSITION IN THE RENEWABLE INDUSTRY 2 GROWING REGULATED NETWORKS PROVIDING PREDICTABLE RETURNS 3 LEADING ENERGY SUPPLIER WITH INNOVATIVE SERVICES SOLUTIONS TOP 5 STRONGEST BRAND IMAGE IN FRANCE (1) 4 STRENGTHENED FINANCIAL PROFILE TO DELIVER CAP 2030 STRATEGY AND ATTRACTIVE SHAREHOLDER REMUNERATION 5... AND TAKE FULL BENEFIT FROM MARKET RECOVERY (1) Source: IPSOS study The Most Influential Brands in France 2016 Delivering on CAP

35 EDF S VISION ON CURRENT GLOBAL ENERGY CHALLENGES Global commitment to reduce CO 2 emissions New consumption trends Public opinion favoring clean energies ENERGY WILL BE LOW-CARBON Digitization New entrants Global growth New business models CUSTOMERS ARE MORE PROACTIVE Increasing decentralized power generation solutions Cost reduction of renewable energy technologies New services to support new usages Continued innovation and competitive low-carbon energy as key success factors Delivering on CAP

36 EDF ADDRESSES KEY CUSTOMER S DEMAND WITH CAP 2030 LOW-CARBON GENERATION Largest low-carbon generation fleet Attractive and balanced generation mix Intensified renewable energy growth RENEWABLES Renewables NETWORKS PROXIMITY TO CUSTOMERS AND LOCAL COMMUNITIES Decentralization Digitization Services Increased share of regulated / long-term contracted generation NUCLEAR Innovation Transformation Nuclear & International CUSTOMERS Customers Being an efficient, responsible company leading low-carbon growth to address the global energy transition challenges Delivering on CAP

37 INNOVATION AND DIGITIZATION AT THE HEART OF EDF TRANSFORMATION R&D projects (e.g. floating offshore, solar PV cost and integration) Smart grid Storage: Battery-based solutions (e.g. EDF Store & Forecast) E-Monitoring RENEWABLES NETWORKS Linky Smart Meter Storage flexibility EPR New Model Digitization (reactor simulator) R&D on Small Modular Reactor Renewables NUCLEAR INNOVATION & TRANSFORMATION Nuclear CUSTOMERS Customers E-quilibre Sowee Decentralized solutions Solar self-consumption offering (Mon Soleil&Moi) Annual R&D budget: above 600m Skills development: ~ 85% of employees receive training every year A top 5 preferred employer for engineers (1) (1) Source: Universum "Engineers" ranking Delivering on CAP

38 SIX AMBITIOUS CORPORATE SOCIAL RESPONSIBILITY GOALS SET THE ROADMAP FOR THE GROUP TO DELIVER CAP 2030 A commitment to change and to working as closely as possible with customers and regions, at the heart of the energy transition and climate issues At the core of the strategic reviews, they will be assessed and reported every year by the company from 2017 Climate change People development Fuel poverty Energy efficiency Dialogue & Consultation Biodiversity To go beyond the requirements of the 2 C trajectory set by COP21, by drastically reducing our CO 2 emissions To adopt the best practices followed by industrial groups in terms of human development: health and safety, gender equality and internal career advancement To offer all vulnerable people information about and support with energy use and energy benefits To innovate through digital energy efficiency solutions to enable all customers to use energy better To systematically organise a process of transparent and open dialogue and consultation for every new project around the world To launch a positive approach to biodiversity, not limited to understanding and reducing the impacts of our activities in the long run but having a positive effect on biodiversity Delivering on CAP

39 THE GROUP PROACTIVELY MANAGES THIS TRANSFORMATION WITH CLEARLY IDENTIFIED TARGETS BY 2020 Over 2.0bn gross investments p.a. on period c.30% expected increase in wind and solar net capacity (1) 16.8GW pipeline (2) c.25% increase in O&M activities RENEWABLES NETWORKS #1 electricity distribution network in Europe ~3% CAGR (3)(4) of ENEDIS (5) ~90% Linky (6) investment achieved 3 EPR commissioned (9) and 2 under construction Profitable investment in the existing fleet (10) Enhanced nuclear expertise with the AREVA NP acquisition NUCLEAR in 2020 FINANCIAL PROFILE CUSTOMERS 4bn capital increase achieved Consolidation of the current subscribers base of 37m customers Strong brand image in France and strong customer satisfaction Continuous effort to offer innovative customer solutions: Sowee, Alexa 1bn opex reduction (7) 10bn disposal plan (8) >50% of the capex invested in regulated, Linky, NNB and net renewables activities in 2020 (1) Net capacity in operation for EDF EN (2) Pipeline as of 31/12/2016, excluding capacity under construction. Total pipeline including capacity under construction: 18.5GW (3) 2017E-20E CAGR of projected capital charge as per CRE s decision of 17 November 2016; excluding Linky. Growth profile of capital charge: possible proxy for the growth profile of Enedis EBITDA (4) CAGR: Compounded annual Growth Rate (5) Enedis, independent subsidiary of EDF under the provisions of the French energy code Delivering on CAP 2030 (6) Linky is a project led by Enedis. As per CRE s decision of 17 July (7) 1bn over At constant scope, exchange, and assumptions of pension discount rates. Excluding change in operating expenses of service activities (8) 10bn asset disposal over (9) Subject to ASN approval for Flamanville (10) ASN position on generic program expected before

40 PROVEN TRACK RECORD IN OPERATING NUCLEAR POWER 1 FINANCIAL PROFILE EDF existing fleet Unique operational experience 72 GW Continuous reduction of unplanned outages (1) in France Unplanned outage ratio divided by 2 since reactors France / 63.1GW 15 reactors UK / 8.9GW Sound management of planned outages periods in France Best UK output ever achieved through synergetic benefits of French / UK nuclear expertise Outage extension ratio divided by 2 since 2013 UK load factor increased by 10pts since 2009 acquisition Largest nuclear operator worldwide with ~18% (2) of global nuclear installed capacity Mature assets offering strong margin upside with power price recovery (1) Unplanned outages exclude by definition outages for regulatory reasons such as outages following le Creusot issues (2) Based on IAEA: International Atomic Energy Agency Delivering on CAP

41 1 GRAND CARÉNAGE: LIFETIME EXTENSION BEYOND 40 YEARS (1) GIVES VISIBILITY AND ENHANCES RETURN The grand carénage covers all investments for French nuclear fleet A well-defined and controlled programme FINANCIAL PROFILE This extensive investment programme includes Maintenance capex Refurbishing or replacement of all large components (including steam generators) Ten-year safety inspections, particularly fourth ten-year inspection (VD4) of 900MW and 1300MW fleet, as well as the post Fukushima additional capex, allowing the existing fleet to reach the highest international safety standards Programme cost under control: total investment costs over decreased from 55bn (2) to 45bn (2), mainly through project optimisation and smoother capex phasing Programme on time 3 years after inception Approved by EDF board ASN position on generic programme well underway (1) First unit s 50-year lifetime extension work: completion expected for 2019 (3) More than 3/4 of the fourth ten-year safety inspection for the 900MW reactors expected to be completed by 2025 Positive benchmark is 60 years lifetime approval in the US for similar PWR (4) technology reactors (1) ASN position expected before 2020 (2) In 2015 euros (3) First 900MW reactors life extension, subject to ASN approval (4) Pressurised Water Reactor (PWR) Delivering on CAP

42 UNIQUE GLOBAL POSITIONING IN NUCLEAR NEW-BUILD 1 World nuclear capacity expected to expand over the next quarter century Unique positioning on global new nuclear build growth FINANCIAL PROFILE 600GW NEW Nuclear Development 3 EPR reactors in operation before 2020 Today, nuclear represents ~11% of global output 400GW In 2040, IEA (1) expects ~12% of global output China / Taishan France / Flamanville UK / Hinkley Point e 350GW to be built 150GW to be decommissioned Hot tests Commercial operation expected in H for 1 st unit and in H for 2 nd unit (2) Beginning of system performance tests end Q Fuel loading and start up of the reactor expected at the end of 2018 EDF will leverage on accumulated experience, including Areva NP expertise, for further international opportunities (India, South Africa ) Final contracts signed Commissioning of the first reactor expected in 2025 (1) IEA; International Energy Agency (2) Source: CGN Power press release, 20 February 2017 Delivering on CAP

43 2 EDF S LEADERSHIP IN RENEWABLES ACTIVITIES IS A STRONG PLATFORM FOR GROWTH Global presence in 22 countries FINANCIAL PROFILE 27.0GW 0.6GW BALANCED CAPACITY MIX WITH 30.4GW IN OPERATION 7.8GW renewables and 22.6GW hydro operating assets 1.3GW under construction 3.6GW 0.4GW 0.05GW 31.7 GW HYDROPOWER: DNA OF EDF Leader in Europe with a growing development pipeline Capacity by Technology Solar 0.8GW Other 0.6GW SELECTIVE GROUP INVESTMENT PLAN Over 2bn gross investments p.a. and increasing over time Wind 7.4GW 31.7 GW Hydro 22.9GW Key figures at 31 December All capacity figures are net figures, corresponding to EDF Group s stake in each asset. Includes net installed power generation capacity and net power generation capacity under construction. In addition, renewables activities comprise 2.9GWth of renewable heat capacity (located mainly in France and operated by Dalkia) Delivering on CAP

44 2 EDF EN A DEDICATED PLATFORM TO BENEFIT FROM RENEWABLES CAPACITY GROWTH Net installed capacity x 2.3 since 2010 Significant increase in total output ~85% of long-term contracted generation revenues (2) FINANCIAL PROFILE x2.3 x1.9 Merchant 15% Long-term contracted 85% 6.3GW 11.3TWh 2.7GW 6.1TWh ~14 average remaining years of contract (3) INTEGRATED OPERATOR ALONG THE VALUE CHAIN Development, Construction and Operation O&M (13.5GW under management) DSSA (1) >20 years 10% 1-5 years 1% 6-10 years 18% LEADING POSITION IN WIND 11.5GW developed and built over the last 15 years years 36% years 35% (1) Development and sale of structured assets (DSSA) (2) Based on estimations at 31 December 2016 of revenues from fully consolidated assets. Includes regulated, quasi-regulated and long-term contracted assets (3) Based on estimations at 31 December 2016 of revenues from fully consolidated assets. Revenues from assets with a strict regulated or commercial PPA Delivering on CAP

45 EDF EN DEMONSTRATING STRONG TRACK RECORD IN PROJECTS DEVELOPMENT LEADING TO HIGH VALUE CREATION 2 Operational excellence with a strong focus on efficiency and availability......and a selective development policy to deliver significant EBITDA growth FINANCIAL PROFILE LEADING O&M SERVICE PROVIDER 9.0GW 13.5GW DEVELOPMENT POLICY Rigorous country analysis Stringent initial project selection % + Advanced engineering capabilities to estimate projects returns CONTINUOUS IMPROVEMENT IN LOAD FACTORS Wind 31% 25% > 97% Solar 16% 13% STRONG TRACK RECORD OF DELIVERING EBITDA GROWTH Unique procurement process with indepth due diligence of supply chain Strict investment decision processes Delivering on CAP

46 2 SIGNIFICANT INVESTMENT PLAN IN NEW RENEWABLES, SUPPORTED BY A SOLID PIPELINE LARGE AND VISIBLE PIPELINE SUCCESSFUL ASSET ROTATION FINANCIAL PROFILE BY TECHNO- LOGY BY AREA CURRENT EDF EN PIPELINE (1) Offshore Wind 9% Onshore Wind 62% RoW 15% Latin America 7% Asia 9% 16.8 GW 16.8 GW Solar 29% North America 34.5% Europe 34.5% Focus on emerging countries offering grid parity EDF EN NET CAPACITY SOLD 0.5 GW 0.7 GW 0.6 GW 1.0 GW Increase financial flexibility through management of net investments DSSA (2) EBITDA / Generation EBITDA ratio in = c. 45% (1) Pipeline (gross capacity) at 31 December 2016 excluding capacity under construction (2) Development and sale of structured assets (DSSA) Delivering on CAP

47 3 ENEDIS: HIGH VISIBILITY ON GROWTH AND RETURNS FROM REGULATED ACTIVITIES FINANCIAL PROFILE LEADING DISTRIBUTION PLAYER IN EUROPE New ~36m Nuclear delivery points 378 New TWh Nuclear electricity distributed #1 electricity distribution network in Europe 1.3m New Nuclear kms of lines New Nuclear employees c.38,700 Total Gross Capex (excl. Linky) Regulated Asset Base (excl. Linky) Expected growth in capital charge under TURPE 5 (1) CRE S DECISION OF 17 NOV bn +2.3% CAGR E 3.5bn 49.4bn +2.2% CAGR E 52.7bn 3.9bn +2.8% CAGR E 4.3bn 2017E 2020E 2017E 2020E 2017E 2020E All investments eligible for tariff coverage under TURPE 5 Tariff evolution +2.71% on average as of August 2017 Inflation in following years Enedis, independent subsidiary of EDF under the provisions of the French energy code (1) Growth profile of capital charge: possible proxy for the growth profile of Enedis EBITDA Delivering on CAP

48 3 LINKY: PREDICTABLE REGULATED RETURNS AND POSITIVE CASH FLOWS FROM 2022 FINANCIAL PROFILE AT THE HEART OF NEW NETWORK SERVICES FOR BETTER PERFORMANCES 2.5m New smart meters Nuclear deployed at end m New smart meters Nuclear by 2021 New Nuclear ~ 4.5bn investments over A specific 20-year New tariff regulation Nuclear model with dedicated RAB SIGNIFICANT LINKY EBITDA CONTRIBUTION FROM 2022 Linky Total Gross Capex in bn A 2016A 2017E 2018E 2019E 2020E Linky Return 7.25% pre-tax nominal return rate + 3% additional premium (1) Linky is a project led by Enedis, independent subsidiary of EDF under the provisions of the French energy code Source: CRE decisions of 17 July 2014 and of 17 November 2016 (1) +3% / -2% incentive premium / penalties depending on cost control, fulfilment of deadlines and system performance, during the deployment phase Delivering on CAP

49 LEADING ENERGY SUPPLIER IN KEY EUROPEAN MARKETS 4 FINANCIAL PROFILE 70% market share for electricity (320TWh sold in 2016) 5.7% market share for gas (27.7TWh sold in 2016) ~26.2m customer accounts (excl. overseas and Corsica) One of the leading UK suppliers 5.5m customer accounts Developing new products and energy services to compete in a rapidly evolving market New Strong Nuclea brands r New ~37 Nuclea million customers r DIVERSIFIED CUSTOMER BASE Retail B2B Local authorities Leader in the B2B market 1.0m delivery points ~20% market share of sales to end customers 1.7m delivery points Delivering on CAP

50 4 CONTINUOUS INNOVATION TO BEST SERVE OUR CUSTOMERS Strong customer satisfaction in France (1) Continuous innovation at the center of EDF s offering FINANCIAL PROFILE LARGE COMPANIES 80.0% 85.4% SOWEE A device and app specially designed to manage energy consumption, optimise comfort and remotely control everyday Smart devices 64.0% 72.8% Offers the ability to control central heating to the nearest euro or degree SME An innovative product that is designed to continue to evolve, with ever more functionalities LOCAL AUTHORITIES WEIGHTED AVERAGE 86.4% 86.4% 79.6% 82.8% ALEXA CONNECTED HOME First energy supplier to offer this service to customers Opportunity for customers to control their energy account, through Alexa voice service Open up new, simple and easy ways for customers to interact with their energy Collaboration with Amazon illustrative of the Group s commitment to making energy easy and putting customers in control Innovating for improving customer relationship (1) BSM (Baromètre de Satisfaction Marché) published and measured by IFOP in 2016 Delivering on CAP

51 4 DIGITIZATION AND DECENTRALIZATION, CORE SOLUTIONS OF EDF S COMPREHENSIVE ENERGY SERVICES Strong position in energy services in France: Dalkia, Group platform for developing and managing innovative solutions, which are more ecological and economical for sustainable growth of cities and business Active across the energy value chain: from decentralised generation to technical demand side management 353 Heating and cooling networks managed 2,100 French industrial sites 82,000 energy facilities managed Dalkia key figures 2m homes serviced on heating FINANCIAL PROFILE Strong focus on innovation Dalkia energy savings centres ( DESC ), to save energy by remotely managing clients heating, air conditioning and domestic hot water installations CO 2 savings (in million tons) Energy savings (in TWh) Storage of renewable and thermal energy (e.g. Brest) to offset variations in heating demands OTHER AREAS OF EXPERTISE AND GROWTH Sustainable mobility (Sodetrel) Public lighting (Citelum) Waste-to-energy (Tiru) EDF aims at developing significant positions in energy services, leveraging on skills and expertise of Group entities: Dalkia, Fenice, Tiru Delivering on CAP

52 CONTINUOUS OPEX REDUCTION TO INCREASE PROFITABILITY 5 In bn Expected Opex (1) trajectory FINANCIAL PROFILE bn (1) vs bn vs bn vs New 1bn SAVINGS Nuclear in 2019 vs (1) At constant scope, exchange rates and pensions discount rates. Excluding change in opex of services activities Delivering on CAP

53 PROGRESS OF WCR (1) OPTIMISATION PLANS 5 Gains achieved in 2016 Contribution of all Group entities (2015 & 2016) FINANCIAL PROFILE RECEIVABLES: ~ 270m Optimisation of the billing and collection processes Other activities 24% France 42% INVENTORIES: ~ 400m Streamlining of coal inventories and spare parts management Optimisation of certificates inventories (energy saving certificates and emissions allowances) International 34% 1.4bn achieved since plans kick off Target 1.8bn Contribution over (1) Working Capital Requirement Delivering on CAP

54 NET INVESTMENTS UNDER CONTROL 5 Net investments excluding Linky, new developments and asset disposals FINANCIAL PROFILE in bn Target ~ 10.5bn In Delivering on CAP

55 INVESTMENTS PRIORITIES TO CAPTURE GROWTH AND PREDICTABLE RETURNS net investments (1) FINANCIAL PROFILE Regulated, Linky (2), NNB, net renewables 50% (1) Net investments including Linky, new developments and disposals (2) Linky is a project led by Enedis, independent subsidiary of EDF under the provisions of the French energy code Delivering on CAP

56 5 MAIN INVESTMENTS VALUE CREATION WELL DEFINED INVESTMENT STRATEGY EXISTING NUCLEAR LIFE EXTENSION Strict investment criteria to ensure profitable growth Set of hurdle rates specific to each segment Life extension consistent with Grand Carénage A strategic investment programme Expected increased IRR (1) by 10Y life extension (exc. Fessenheim) Exposed to market prices Partly mitigated by regulated tariffs FINANCIAL PROFILE NEW NUCLEAR BUILD Hinkley Point C Total cost of the project: 18bn nominal of which EDF share of equity contribution is 12bn IRR at c.9% Contracted selling price over 35 Y RENEWABLES (EXC. OFFSHORE) On-shore wind and PV Diversified development pipeline (2/3 Wind 1/3 Solar, 1/3 Europe, 1/3 US, 1/3 other countries) Historical IRR spread: ~ bps above WACC (2),(3) 85% contracted revenues (3) ENEDIS INVESTMENTS (EXC. LINKY) Enedis investments excluding Linky net investments of 12bn TURPE 5 HTA/BT regulation with 4,1% remuneration of Regulated Equity and 2,6% remuneration on Regulated Asset Basis (RAB) 6.7% remuneration on new investments Regulated LINKY Linky 4.5bn for the deployment period Fully regulated over 20 years: Linky-dedicated RAB Revenues differed until 2022 remunerated at 4,6% Pre-tax nominal return rate of 7.25% with up to 3% incentives / -2% penalties (4) Regulated (1) IRR computed on the cash-flows of a 50Y life fleet (excluding Fessenheim) comparing to a 40Y life fleet (2) Average performance based on a review of all projects over 50m CAPEX until mid-2016 (3) Scope EDF EN. Based on estimations at 31 December 2016 of revenues from fully consolidated assets. Includes regulated, quasi-regulated and long-term contracted assets (4) Incentives/penalties during the deployment phase. Delivering on CAP

57 2020 DISPOSAL PROGRAM WELL UNDER WAY 5 FINANCIAL PROFILE HPC STAKE Sale of 33.5% stake on HPC project to CGN for ~ 0.8bn Finalised HUNGARY Sale of 100% of EDF DÉMASZ to ENKSZ on 31 January 2017 for ~ 400m Finalised REAL ESTATE ASSETS Disposal of a portfolio of c.130 real estate and business assets to Tikehau IM Finalised RTE Sale (1) of a 49.9% stake of RTE to Caisse des Dépôts and CNP Assurances Finalisation expected in H TRADING COAL AND FREIGHT Sale of EDF Trading s coal and freight activities to JERA Trading Finalisation expected in H (1) Subject to approval from the relevant merger control authorities (2) Impact on net financial debt Disposals signed or finalised since 1 January 2015: ~ 6.7bn (2) Delivering on CAP bn New Nuclear Disposal program over by

58 5 FRENCH NUCLEAR PROVISIONS COVERED BY DEDICATED ASSETS FUND FINANCIAL PROFILE Decommissioning cost confirmed by external audit (1) FRENCH NUCLEAR PROVISIONS Proven know-how in dismantling PWR reactors: Chooz A plant decommissioning well under way 50 years life extension of the 900MW fleet, and future extension of the more recent reactor series of the French fleet is a key part of the Group s industrial strategy Anticipated change in discount rate provides visibility: The new proposed formula would likely lead to a discount rate of 4.1% at end-2017, and 3.9% at end-2018 (2) GOOD PERFORMANCE OF THE DEDICATED ASSETS FUND Coverage ratio of EDF nuclear liabilities eligible for dedicated assets: % (3) (pro-forma post closing of RTE transaction) as of 31 December 2016 Performance of the Dedicated Assets fund: 5.3% on average per year since 2006 (1) French Department of Energy and Climate (DGEC) commissioned an audit on dismantling costs for the existing nuclear fleet and published the results in January This audit, executed by an external firm, broadly confirmed EDF's estimate for decommissioning costs including in terms of international benchmarking. Please refer to the release from the French Ministry for Ecology, Sustainable Development and Energy from 15 January 2016, regarding external audit on dismantling costs for the existing fleet. (2) Under the new formula, the regulatory limit will gradually migrate from its level at 31 December 2016 (4.3%) until by 2026 it is equal to the average constant 30-year rate over the four most recent years, plus 100 base points (3) As of 31 December 2016, the regulatory coverage ratio for nuclear liabilities eligible for EDF's dedicated assets is 99.8%, and, everything else being equal, would reach 105.3% after finalizing the sale of a portion of the C25 shares planned for H Delivering on CAP

59 5 ACTION PLAN TO DELIVER THE GROUP STRATEGY FINANCED BY SEVERAL MEASURES FINANCIAL PROFILE Strategy FINANCED BY SEVERAL MEASURES Ambitions Current energy price market Well-defined investment strategy Customers needs Digitization environment 4bn capital increase Scrip dividend in 2015, 2016 and 2017 Asset disposal program Opex reduction, Capex optimisation and improvement of Working Capital Provide long-term growth prospects to the Group A development based on a significant proportion of regulated and quasiregulated revenues Higher influence of international business Strengthened balance sheet with A credit rating and stable outlook secured Transformation of the Group Delivering on CAP

60 2017 AND 2018 GROUP EBITDA TARGETS bn bn 14.3bn bn (1) Performance plan Capacity markets Gradual improvement of nuclear generation in France 2016 non-recurring positive impacts Wholesale purchases to balance unavailability of the fleet and ARENH demand Market conditions which remain challenging Performance plan Higher nuclear generation Improved market conditions in France and United Kingdom Development of service activities Growth in renewable business (1) At 2016 exchange rate and assumption for 2018 power prices in France on volumes not hedged as of : 36/MWh Delivering on CAP

61 2017 & 2018 TARGETS NUCLEAR OUTPUT EBITDA (1) 2017 NET FINANCIAL DEBT/EBITDA (2) PAYOUT RATIO OF NET INCOME EXCLUDING NON- RECURRING ITEMS (3) TWh 13.7bn 14.3bn 2.5x 55% to 65% 2018 OPEX (4) NET INVESTMENTS EXCLUDING LINKY, NEW DEVELOPMENTS AND ASSET DISPOSALS EBITDA (5) CASH FLOW (5)(6) NET FINANCIAL DEBT/EBITDA (5)(6) - 0.7bn vs ~ 10.5bn 15.2bn 0 2.5x (1) At 2016 exchange rate (2) At 2016 exchange rate and at an assumed discount rate on nuclear provisions of 4.1% in 2017 (3) Adjusted for the remuneration of hybrid bonds accounted for in equity (4) At constant scope, exchange and hypothesis of pensions discount rates. Excluding change in operating expenses of service activities (5) At 2016 exchange rate and assumption for 2018 power prices in France on volumes not hedged as of : 36/MWh PAYOUT RATIO OF NET INCOME EXCLUDING NON- RECURRING ITEMS (3) (6) At 2016 exchange rate. Cash flow excluding Linky, new developments and asset disposals, with an assumed discount rate on nuclear provisions of 4.1% in 2017 and 3.9% in 2018, excluding interim dividend for fiscal year 2018, which will be decided in H Delivering on CAP % 61

62 BEYOND 2018 OPEX REDUCTION (1) in 2019 vs At least 1bn 1 Md BEYOND 2018 ASSET DISPOSALS OVER At least 10bn PAYOUT RATIO OF NET INCOME EXCLUDING NON- RECURRING ITEMS (2) 45% to 50% Potential additional upsides + Upside from recovery in European and French power prices Continued investment-fuelled growth on regulated activities and renewables Supportive regulatory developments (introduction of a carbon price floor, ARENH reform, others) (1) At constant scope, exchange and hypothesis of pensions discount rates. Excluding change in operating expenses of service activities (2) Adjusted for the remuneration of hybrid bonds accounted for in equity Delivering on CAP

63 Delivering on CAP 2030 Appendices

64 APPENDICES ACQUISITION OF AREVA NP NEW BUILD: FLAMANVILLE 3 EPR PROJECT NEW BUILD: HINKLEY POINT C NEW BUILD: CHINA TAISHAN 1 & 2 EDF ENERGIES NOUVELLES, A LEADING RENEWABLES PLAYER EDF ENERGIES NOUVELLES: A SUSTAINABLE BUSINESS MODEL WITH OVER 2.8GW SOLD SINCE 2013, DSSA IS AT THE CORE OF EDF EN S BUSINESS MODEL FOCUS ON FRENCH OFFSHORE WIND NEW BUSINESSES ENERGY STORAGE AND DISTRIBUTED SOLAR FRENCH HYDROPOWER A DIVERSIFIED & FLEXIBLE FLEET EDF TRADING, INTERFACE BETWEEN EDF AND THE ENERGY WHOLESALE MARKET Delivering on CAP

65 ACQUISITION OF AREVA NP TO SUPPORT EDF S GLOBAL NUCLEAR STRATEGY IMPROVING THE COMPETITIVENESS OF THE FRENCH NUCLEAR INDUSTRY KEY TERMS OF THE TRANSACTION Securing core activities of the Grand Carénage Areva NP is one of EDF s key contractors on the investment program Experience and feedback sharing to reduce industrial risk Improving control over new nuclear build Design synergies via integration of engineering know-how in a dedicated platform (NICE JV) Improving international offering competitiveness Development of EPR NM for new wave of French nuclear reactors EDF to have an exclusive control on NEW AREVA NP Equity value for 100% of 2.5bn + potential price complements up to 325m Implied forecasted EBITDA multiple of 8.0x (1) Expected completion date in Q4 2017, subject to: Outcome of the tests on the primary coolant system of the Flamanville 3 reactor Quality audits at the Creusot, Saint-Marcel and Jeumont plants Approval from the relevant merger control authorities (1) Normalised 2017 EBITDA pro forma of the acquired scope, excluding large projects Delivering on CAP

66 EDF ENERGIES NOUVELLES, A LEADING RENEWABLES PLAYER WITH STRONG TRACK RECORD EDF Group s platform for the development of new renewables Strengthened positioning in offshore wind Entry into Morocco, and South Africa Entry into Brazil and Chile First merchant solar PV project Entry into China Strong development in distributed solar PV (US: grosolar acquisition, France: Mon Soleil & Moi offering launched) EDF Group takes 100% of EDF EN Entry into Mexico and Israel Strong development of Operation & Maintenance activities Entry into India EDF EN commissioned its first PV + storage project (Toucan, French Guyana) EDF Energies Nouvelles scope includes all non-hydro renewables activities of the Group, except some assets in Italy (Edison), Belgium (EDF Luminus) and in the UK (50% held by EDF Energy) Delivering on CAP

67 EDF EN: A SUSTAINABLE BUSINESS MODEL, LEVERAGING KEY COMPETITIVE ADVANTAGES KEY COMPETITIVE ADVANTAGES Extensive and diversified international footprint EDF brand name, with dynamic and flexible structure leveraging on local Group synergies Integrated O&M skills and capabilities: operational excellence Development Construction Generation Asset rotation Operations & Maintenance SUPPORTING A MODEL GEARED TOWARDS SUSTAINABLE GROWTH Partnerships bringing strong development opportunities and local market knowledge, with reduced balance sheet impact An intensified development phase starting 2017, with gradually growing CAPEX and a robust pipeline A generator aiming to gradually grow installed capacity and output A strong ability to maximise value from selective asset rotation to cover corporate and development costs An integrated player, active across the entire value chain, with the ability to develop highly competitive projects with high returns Delivering on CAP

68 WITH OVER 2.8GW SOLD SINCE 2013, DSSA (1) IS AT THE CORE OF EDF EN S BUSINESS MODEL EDF EN has an excellent DSSA track record DSSA is a self-funding and Value accretive business model CONSISTENT ROTATION OF OPERATIONAL ASSETS (EDF EN NET CAPACITY SOLD) 0.5 GW DSSA EBITDA / Generation EBITDA ratio in = c. 45% 0.7 GW 0.6 GW 1.0 GW DSSA ACTIVITIES ARE AN IMPORTANT PART OF EDF EN S BUSINESS MODEL DSSA consists of the disposal of certain fully-structured projects (typically in operation and financed) Allows the execution of additional market opportunities with superior returns CUMULATIVE ASSET ROTATION 2013 TO DATE RoW 3% 2.8 GW North America 74% Europe 23% KEY BENEFITS OF DSSA Immediate value crystallization : Realize premium on capex Balance portfolio through asset rotation Increase financial flexibility through management of net investments Increased competitiveness due to lower financing costs due to participation of a co-investor (1) Development and sale of structured assets (DSSA) Delivering on CAP

69 FOCUS ON FRENCH OFFSHORE WIND SUCCESSFUL VALUE CREATION THROUGH A STRATEGIC PARTNERSHIP IN THE 3 FIRST FRENCH OFFSHORE WIND PROJECTS Eolien Maritime France portfolio 3 offshore wind projects in France Over 1.4GW of combined capacity Highly valuable partnership with Enbridge Total investment costs of c. 6bn Efficiency increases with economies of scale Optimised financial structure Partnering up to share funding, development and construction risks Equity method Wind farms Alstom production facility Project / contractor facility A Maintenance centre B Logistical hubs Brest Saint-Nazaire (480MW) Rennes A Cherbourg B B Courseulles-sur-Mer (450MW) Nantes Fécamp (498MW) Le Havre Paris 70% Fécamp 30% Innovation Floating offshore 50% 50% 85% 100% Courseulles- Sur-Mer Saint-Nazaire 15% Innovative pilot awarded in France in Nov 2016 Floating foundations allow for higher load factors as they can be placed in particularly windy areas previously untapped Contract awarded to EDF EN for the installation of three 8-MW turbines on floating foundations in the Faraman area (off Fos-sur-mer) Delivering on CAP

70 NEW BUSINESSES ENERGY STORAGE AND DISTRIBUTED SOLAR EDF Store & Forecast Develops and markets software solutions to forecast and plan real time control for renewable energy production Key storage projects Toucan Project (French Guyana) 2MW / 4.5MWh storage 20-year project life Commissioned Dec McHenry (Illinois, US) 20MW stand-alone storage (grid frequency control) Commissioned Jan Mafate (Réunion Island) ENERGY STORAGE 100% solar PV micro grid project with battery + hydrogen storage West Burton B (Nottinghamshire, UK) 49MW battery storage contract with National Grid DISTRIBUTED SOLAR Provides a wide range of photovoltaic installations for homeowners and professionals supporting decentralized generation Two main business units EDF ENR (France) c. 210 employees / 55m in revenues Net installed capacity of 54MWp Self-consumption offering Mon Soleil et Moi : allows residential customers to track their energy production and consumption and choose to store the excess electricity in their home storage system grosolar (US) c. 55 employees / 64m in revenues Developed 150MWp Development, sale & installation of PV plants for utilities, corporations, and industries Delivering on CAP

71 FRENCH HYDROPOWER A DIVERSIFIED & FLEXIBLE FLEET Net Renewables Capacity in France THE MAIN SOURCE OF RENEWABLE POWER IN FRANCE Hydro 20.8GW 21.9 GW Other Renewables 1.1GW 433 plants in France, average age of 72 years Covering the different kinds of hydropower facilities: Run-of-river / Pondage water / Reservoirs (lake-supplied) / Pumped storage / Tidal power UNIQUE STORAGE VALUE, CRITICAL FOR THE ELECTRICITY SYSTEM Estimated weekly flexibility needs (1) +55% Today 2030 Hydropower France provides ~14GW of storage Reservoirs: 8.8GW Pumped storage: 4.2GW o including the 1.8GW Grand Maison facility, the largest European storage asset Only sizeable & cost competitive electricity storage technology AMONG THE MOST FLEXIBLE AND REACTIVE GENERATION MEANS Response time to reach full capacity of dispatchable units In ~2 minutes 0 GW 14G W Allows quick adjustments to within-day fluctuations in the supply-demand balance Consumption peaks Non forecasted loss of generation capacity Hydropower is the most significant contributor to ancillary services (1) Source: RTE (Bilan prévisionnel 2014) Delivering on CAP

72 EDF TRADING, INTERFACE BETWEEN EDF AND THE ENERGY WHOLESALE MARKET INTERFACE A WHOLESALE ENERGY MARKET SPECIALIST Interface between EDF and the energy wholesale market providing optimisation and risk management services as well as access to new markets Operating across all energy commodities and managing assets along the entire value chain from production, shipping, transportation to storage and supply Seeking arbitrages and optimising supply strategies EDF Trading EBITDA in m CREATING VALUE FOR EDF AS WELL AS FOR THIRD PARTIES CUSTOMERS Seeking arbitrage and optimising supply strategies Providing single and multi-product energy solutions for large commercial and industrial consumers, power generators and retail energy suppliers Well positioned, extensive geographic footprint and scale of activity One of the largest marketer of gas and electricity in North America One of the largest wholesale energy market traders in Europe Top 10 retail supplier to large commercial and industrial users in North America Delivering on CAP

73

74 2016 KEY FIGURES In m % % Org. (1) Sales 75,006 71, EBITDA 17,601 16, Net income excluding non-recurring items 4,822 4, Net income Group share 1,187 2,851 x /12/ /12/2016 Net financial debt In bn Net financial debt/ebitda ratio (1) Organic change at constant scope and exchange rates ANNUAL RESULTS

75 PERFORMANCE PLAN IN LINE WITH ANNOUNCED TRAJECTORY OPEX Reduction in OPEX (1) : - 0.3bn vs CAPEX Net investments (2) : 11.8bn, - 0.6bn vs Working Capital Requirement Positive impact from optimisation plans: 0.7bn Disposal Plan ~ 6.7bn (3) of disposals signed or closed (1) Sum of personnel expenses and other external expenses. At 2016 scope and exchange rates. At constant pensions discount rate. Excluding change in operating expenses of service activities (2) Net investments excluding Linky, new developments and asset disposals. Linky is a project led by Enedis, independant subsidiary of EDF under the provisions of the French energy code (3) Impact on net financial debt ANNUAL RESULTS

76 NET INVESTMENTS UNDER CONTROL In m % France Generation and supply activities 5,660 5, France Regulated activities 3,367 3,301 (66) -2.0 Net investments Regulated, Linky (1), NNB, net renewables 39% United Kingdom 1, (305) Italy (127) Other international (315) Other activities bn Net investments excluding Linky, new developments and asset disposals 12,418 11,816 (602) TARGET ~ 10.5bn Linky (1) New developments (2) (248) Asset disposals (781) (1,139) (358) Unregulated 61% NET INVESTMENTS 12,672 11,663 (1,009) -8.0 (1) Linky is a project led by Enedis, independant subsidiary of EDF under the provisions of the French energy code (2) New developments: in particular UK NNB, EPR New Models and offshore wind ANNUAL RESULTS

77 GROUP EBITDA In bn Non-recurring France 2016 items Generation (1) France - Purchases/sales on markets (1) France Downstream market conditions (1) United Kingdom Opex (2) Other Mainly 2014 tariff adjustment Mainly France: regulated activities and weather impact (1) Estimated figures (2) At 2016 scope and exchange rates. At constant pensions discount rate. Excluding change in operating expenses of service activities ANNUAL RESULTS

78 EBITDA: PERFORMANCE PLAN PARTLY MITIGATING THE REDUCTION IN NUCLEAR OUTPUT AND THE CHALLENGING MARKET CONDITIONS In m org. (1) % org. (1) France Generation and supply activities 6,936 6,156 (780) France Regulated activities (2) 4,719 5, United Kingdom 2,242 1,713 (276) Italy 1, (681) Other international EDF EN 5% Other International 4% Italy 4% UK 10% Dalkia 2% Other 6% 16,4 Mds France Generation and supply activities 38% Other activities (3) 1,750 2, Total Groupe 17,601 16,414 (840) -4.8 France Regulated activities (2) 31% (1) Organic change at constant scope and exchange rates (2) Regulated activities: Enedis, Électricité de Strasbourg and islands activities (3) Other activities including EDF EN, Dalkia and EDF Trading ANNUAL RESULTS

79 EBITDA FRANCE GENERATION AND SUPPLY ACTIVITIES In bn Organic change: -11.2% (1) tariff adjustment Weather (+5.5TWh) & leap year (3) Tariffs O/w nuclear generation: m (-32.8TWh) Generation (3) Purchases/ sales on markets (3) Downstream market conditions (3) Opex (2) Other 51 % 6.16 Mainly end of Green and Yellow tariffs, sharp competition and price effect on new commercial offers 26 % 32 % 33 % (1) Organic change at constant scope and exchange rates (2) At 2016 scope and exchange rates. At constant pensions discount rate. Excluding change in operating expenses of service activities (3) Estimated figures ANNUAL RESULTS

80 EBITDA FRANCE REGULATED ACTIVITIES In bn Organic change: +8.1% (1) Weather and leap year (2) Other Market (2) conditions (2) 5.10 In particular decrease in purchase cost of network losses 32 % (1) Organic change at constant scope and exchange rates (2) Estimated figures ANNUAL RESULTS

81 EDF ÉNERGIES NOUVELLES: SUCCESS OF THE DEVELOPMENT MODEL BASED ON ASSETS ROTATION, CONTINUED GROWTH IN RENEWABLE POWER OUTPUT In m % % Org. (1) Sales (2) 1,116 1, EBITDA Positive impact of net installed capacity in 2015 (1GW): 9% increase in output to 11.3TWh, mainly from wind and in North America Particularly strong DSSA (3) activity, especially in the United States and in Europe (France, Portugal, Greece) Significant portfolio of projects under construction (1.8GW), of which ~50% in new geographical locations (India, China, Brazil, Chile) (1) Organic change at constant scope and exchange rates (2) As of 2016, breakdown of sales across the segments, before inter-segment eliminations. The 2015 figures have been restated in this regard (3) Development and Sale of Structured Assets ANNUAL RESULTS

82 DALKIA AND EDF TRADING: COMMERCIAL DEVELOPMENT AND FAVOURABLE MARKET POSITIONS DALKIA EDF TRADING In m % % Org. (1) Sales (2) 3,289 3, EBITDA In m % % Org. (1) Sales (2) 662 1, EBITDA Favourable weather conditions Negative impact of gas price decrease Strong commercial dynamic in France in the network, industrial and service activities Successful implementation of performance plans High volatility on European power and gas markets, in particular during H Good performance in the LNG trading business (1) Organic change at constant scope and exchange rates (2) As of 2016, breakdown of sales across the segments, before inter-segment eliminations. The 2015 figures have been restated in this regard ANNUAL RESULTS

83 EBIT LIFTED BY EXTENSION OF DEPRECIATION PERIOD OF NUCLEAR PLANTS (1) AND BY LOWER IMPAIRMENTS In m % EBITDA 17,601 16, IAS 39 volatility 175 (262) na Amortisation/depreciation expenses (1) and provisions for renewal (9,111) (8,007) Impairments and other operating income and expenses (4,385) (631) EBIT 4,280 7, (1) Extension to 50 years of the accounting depreciation period of the PWR 900MW series excluding Fessenheim (please refer to the press release published by EDF on 29 July 2016) ANNUAL RESULTS

84 NON-RECURRING ITEMS NET OF TAX In m Impairments (3,195) (1,001) o/w thermal assets and Edison E&P (2,179) (315) o/w CENG (271) (462) Cigéo storage provision (1) (509) - European Commission decision on RAG (2) (354) - Other, including IAS 39 volatility 423 (233) Total non-recurring items net of tax (3,635) (1,234) (1) Please refer to EDF press release published on 15 January 2016 (2) Please refer to press releases published by EDF and the European Commission on 22 July 2015 ANNUAL RESULTS

85 CHANGE IN NET INCOME In m % EBIT 4,280 7, % Financial result (2,588) (3,333) +28.8% o/w impact of discount unwinding (2,812) (3,417) +21.5% Income tax (483) (1,388) % Share of net income from associates % Deducting net income from minority interests (214) (160) -25.2% Net income Group share 1,187 2, % Excluding non-recurring items 3,635 1, % Net income excluding non-recurring items 4,822 4, % ANNUAL RESULTS

86 CHANGE IN CASH FLOW (1/2) In m EBITDA 17,601 16,414 Non cash items and change in accrued trading income (1,610) (1,703) Net financial expenses disbursed (1,252) (1,137) Income tax paid (1,508) (838) Other items o/w dividends received from associates and joint-ventures Operating cash flow 13,502 13,059 WCR 132 (1,935) o/w impact of tariff adjustments (1), VAT included 775 (697) Net investments (12,672) (11,663) o/w Linky (2), new developments (3) and asset disposals (254) 153 Cash flow after net investments 962 (539) (1) Tariff adjustment of 2012 (impacting 2015 and 2016) and of 2014 (impacting 2016) (2) Linky is a project led by Enedis, independant subsidiary of EDF under the provisions of the French energy code (3) New developments: in particular UK NNB, EPR New Models and offshore wind ANNUAL RESULTS

87 CHANGE IN CASH FLOW (2/2) In m Cash flow after net investments 962 (539) European Commission decision on RAG (1) (906) - Dedicated assets Cash flow before dividends 273 (529) Dividends paid in cash (1,746) (454) Interest payments on hybrid issues (591) (582) Group cash flow (2,064) (1,565) (1) Please refer to press releases published by EDF and the European Commission on 22 July 2015 ANNUAL RESULTS

88 STABLE NET FINANCIAL DEBT In bn (11.7) (1.0) +1.5 (37.4) (37.4) Dividends and hybrid bonds remuneration Other (1.9) Operating cash flow WCR Net investments (1) Mainly forex effect and partial disposal of CSPE receivable In particular weather effect (2), CSPE collection and tariff adjustments December 2015 December 2016 (1) Net investments including Linky, new developments and asset disposals. Linky is a project led by Enedis, independant subsidiary of EDF under the provisions of the French energy code (2) With no significant impact on Group cash flow ANNUAL RESULTS

89 FRANCE NUCLEAR GENERATION: 2017 OUTLOOK Ongoing outages at Bugey 5, Fessenheim 2, Gravelines 5 (3 rd ten-year visit), Paluel 2 (3 rd ten-year visit) Volume of planned outages for maintenance taking into account continued work under the Grand carénage industrial programme 2017 nuclear output target: TWh ANNUAL RESULTS

90 Appendices

91 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities Markets CHANGE IN OPEX (1) BY SEGMENT In millions of Euros % (2) % (2) France Generation and supply activities 9,837 9, France Regulated activities 4,950 4, United Kingdom 2,492 2, Italy Other International Other activities 3,102 3, Group 22,055 21, (1) Opex (operational expenses) corresponding to the sum of personnel expenses and other external expenses (2) At 2016 scope and exchange rates. At constant pensions discount rate. Excluding change in operating expenses of service activities ANNUAL RESULTS

92 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities Markets CHANGE IN FINANCIAL RESULT In millions of Euros Cost of gross financial debt o/w interest expenses on financing operations o/w net foreign exchange gain on debt and other (1,994) (1,955) (39) (1,827) (1,907) Discount expenses (2,812) (3,417) -605 Other financial income and expenses 2,218 1, Financial result (2,588) (3,333) -745 ANNUAL RESULTS

93 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities SHARE IN NET INCOME OF ASSOCIATES AND JOINT VENTURES Markets In millions of Euros RTE Alpiq (192) CENG (284) (485) -201 Other TOTAL ANNUAL RESULTS

94 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities Markets GROSS AND NET (1) 2016 INVESTMENTS In millions of Euros Development 14,398 34% ,776 Gross financial investments Disposals Including disposal plan: - 1,139m -1,075 Subsidies and interest -265 Other 11,663 20% Development Maintenance 40% 14,779 49% Maintenance Regulated 26% 31% Regulated Gross operating investments Gross investments Net investments (1) Net investments including Linky, new developments and asset disposals ANNUAL RESULTS

95 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities Markets GROSS OPERATING INVESTMENTS (1) Other International 5% Italy EDF Énergies Nouvelles 11% 4% Other activities 4% France Generation and supply activities 39% Other International EDF Énergies Nouvelles Italy 3% 11% 3% Other activities 4% France Generation and supply activities 40% United Kingdom 12% 14.8bn United Kingdom 13% 14.4bn France regulated (2) 25% 2015 France regulated (2) 26% 2016 (1) Gross operating investments including Linky and new developments (2) Enedis, Électricité de Strasbourg and island s activities ANNUAL RESULTS

96 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities GROSS OPERATING INVESTMENTS FOR DEVELOPMENT (1) Markets Energy Services 6% Italy (3) & gas activities 12% Other 9% 4.9bn Renewables (2) 39% Italy (3) & gas activities 8% Energy Services 7% Other 5% 4.9bn Renewables (2) 36% Nuclear New Build 34% Nuclear New Build 44% (1) Corresponding to gross operating investments on Group existing or new assets, enabling mainly an improvement of technical performance or increased generation capacity of the Group, as opposed to maintenance investments which enable maintaining generation assets or portfolio of the entity (2) Renewables including hydro power (3) Italy excluding renewables ANNUAL RESULTS

97 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities Markets SIMPLIFIED BALANCE SHEET ASSETS (In millions of Euros) 31/12/ /12/2016 LIABILITIES (In millions of Euros) 31/12/ /12/2016 Fixed assets 149, ,626 O/w Goodwill 10,236 8,923 Shareholders equity (Group Share) 34,749 34,438 Inventories and trade receivables 36,973 37,397 Net income attributable to non-controlling interests 5,491 6,924 Other assets 69,536 66,238 Cash and equivalents and other liquid assets (1) 22,993 25,159 Assets held for sale (excluding cash and liquid - 5,220 assets) (2) Total Assets 278, ,640 Specific concession liabilities 45,082 45,692 Provisions 75,327 74,966 Financial liabilities (3) 60,388 61,230 Other liabilities 57,904 56,281 Liabilities linked to assets held for sale (excluding financial liabilities) (4) - 2,109 Total Liabilities 278, ,640 (1) Including assets held for sale and loan to RTE (2) Including 104m of financial assets affecting financial debt (3) Including hedging derivatives and financial debt related to companies held for sale (4) Including 1,458m of financial liabilities impacting net financial debt ANNUAL RESULTS

98 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities Markets GROUP PROVISIONS 31 December December 2016 In millions of Euros Current Non Current Total Current Non Current Total Provisions for back-end nuclear cycle 1,733 20,179 21,912 1,463 20,823 22,286 Provisions for nuclear decommissioning and last cores Provision for decommissioning excluding nuclear facilities ,646 24, ,020 24, ,447 1, ,506 1,569 Provisions for employee benefits 1,033 21,511 22,544 1,100 21,234 22,334 Other provisions 2,262 2,190 4,452 2,394 2,155 4,549 Total Provisions 5,354 69,973 75,327 5,228 69,738 74,966 ANNUAL RESULTS

99 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities Markets GROUP NUCLEAR PROVISIONS In millions of Euros +734 Allowances -2,004 +2,667 Reductions Discount unwinding (1) -1,552 Foreign exchange adjustments -2,044 +1,617 Extension of depreciation period of the 900MW fleet (4) at Net discount rate decrease (2) 46,809 46, Other changes (3) /12/ /12/2016 1) Expenditures in the income statement. O/w: France: cost of discount unwinding for + 1,502m, and effect of change in the discount rate for the provisions not related to an asset: + 680m; United Kingdom: cost of discount unwinding: + 475m 2) Effect of a lower net discount rate for changes in asset-backed provisions (matching assets and underlying assets): France + 662m (20 bp decrease, 2.7% vs. 2.9%), UK + 955m (30 bp decrease, 2.7% vs. 3.0%) having as a matching provision a variation in the receivable corresponding to amounts reimbursable by the Nuclear Liabilities Fund (NLF) and by the British government 3) Other changes: in particular assessments related to the revision of the cost estimate of the PWR fleet in operation. Provision for decommissioning for - 451m; provision for long-term management of MAVL waste: + 162m 4) Excluding Fessenheim ANNUAL RESULTS

100 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities Markets FRANCE NUCLEAR PROVISIONS In millions of Euros 36,130-2,044 +1,502 Extending the accounting depreciation period of the 900MW (1) Discount expenses of the year +1, Effect of a lower discount rate Other 36,033 Including: - P&L financial expenses: + 680m - Balance sheet asset effect: + 662m Including provision for dismantling of units still in operation: - 451m 31/12/ /12/2016 1) Excluding Fessenheim ANNUAL RESULTS

101 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities Markets FRANCE NUCLEAR PROVISIONS: 2016 CHANGE Decommissioning costs plants in operation 2015 Conclusions of the external audit commissioned by the DGEC on the cost of dismantling published in January 2016 (1), stating that the overall audit confirms EDF's estimate of the cost of decommissioning its nuclear fleet 2016 Extensive revision of the cost estimate for the decommissioning of the plants in operation, taking into account the DGEC audit recommendations Limited changes of the cost estimate and related provisions: - 0.5bn (2) Decommissioning costs closed plants Three-yearly review of decommissioning costs on 1 st generation closed plants performed, allowing the integration of feedback of current work Update on the GCR (3) plants industrial decommissioning scenario Update on provisions for a net amount of 0.3bn Update of the evaluation of the decommissioning costs of the 1st generation plants These annual studies confirm the changes previously made and do not lead to a significant change in the provisions Costs on CIGEO storage project Cost of the Cigéo project set at 25bn (4) by the Ministerial Order (1), which substitutes the 2005 estimated benchmark cost of 20.8bn on which EDF group used to rely 0.8bn increase in provision Continuation of the design studies (ANDRA) Application for the construction of the facilities in 2018 (approval to be received in 2021) 1) Please refer to the release from the French Ministry for Ecology, Sustainable Development and Energy from 15 January ) Lower provision for counterparty of underlying assets 3) GCR: Gas-cooled reactor 4) At the economic conditions of 2011 ANNUAL RESULTS

102 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities Markets FRANCE NUCLEAR PROVISIONS In millions of Euros 31/12/2015 Net Allowances Discounting Other changes 31/12/2016 Total provisions for back-end nuclear cycle 18,645 (953) 1, ,624 Provisions for management of spent fuel 10,391 (893) ,658 Provisions for long-term management of radioactive waste 8,254 (60) ,966 Total provisions for nuclear dismantling and last cores Provisions for dismantling power stations 17,485 (3) 816 (1,889) 16,409 14,930 (3) 723 (1,528) 14,122 Provisions for last cores 2, (361) 2,287 TOTAL FRANCE NUCLEAR PROVISIONS 36,130 (956) 2,182 (1) (1,323) 36,033 NB: Regarding the allocation to Dedicated Assets for nuclear provisions coverage, please refer to the slide Dedicated Assets on P.55 (1) Cost of unwinding the discount: + 1,502m; impact of actual discount rate change for provisions with no asset on the balance sheet: + 680m ANNUAL RESULTS

103 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities DISCOUNT RATE OF NUCLEAR PROVISIONS IN FRANCE (1/3) The discount rate determined under the Company s usual method is 4.2% at 31 December 2016, assuming inflation of 1.5% Markets December 2015 December 2016 Nominal discount rate 4.5% 4.2% Regulatory ceiling rate (1) 4.6% 4.3% Inflation 1.6% 1.5% The decrease in the actual discount rate from 2.9% to 2.7% resulted in an increase in nuclear provisions of 1,342m in 2016, including 680m in financial expenses and 662m in an increase in the value of assets on the balance sheet (1) Calculation under current scheme For more details, please refer to the 2016 consolidated accounts, section , Discounting of provisions related to nuclear generation and sensitivity analyses ANNUAL RESULTS

104 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities DISCOUNT RATE OF NUCLEAR PROVISIONS IN FRANCE (2/3) The discount rate applied for nuclear provisions in France must comply with two regulatory limits. Since 2015 (Order of 24 March 2015), the discount rate applied must be lower than: a regulatory maximum equal to the arithmetic average over the 120 most recent months of the constant 30-year rate (TEC 30 years), observed on the last date of the period concerned, plus one point and the expected rate of return on assets covering the liability (dedicated assets) The French Ministers of Economy and Finance, and of Environment, Energy and Sea, announced their decision to change the calculation formula for the regulatory limit on discount rates with effect from 2017 this decision will be set out in an amendment to the ministerial order of 21 March 2007, itself modified by the order of 24 March 2015 this amendment comes after joint work by the nuclear operators and public authorities to establish a formula for a maximum discount rate, taking into account the long time horizons of nuclear liabilities and prudential objectives for secure financing of long-term nuclear expenses Under the new formula, the regulatory limit will gradually migrate from its level at 31 December 2016 (4.3%) until by 2026 it is equal to the average constant 30-year rate (TEC 30 years) over the four most recent years, plus 100 base points Regarding the evolution of rates, the new formula should mean that future years see smoother changes in the regulatory limit than under the previous formula Markets ANNUAL RESULTS

105 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities DISCOUNT RATE OF NUCLEAR PROVISIONS IN FRANCE (3/3) Markets The new proposed formula for the limit would likely lead to a discount rate of 4.1% at end-2017, and 3.9% and end-2018 All things being equal, such a change would generate an increase in provisions estimated at: 735m at 31/12/2017 (including 588m for provisions covered by dedicated assets) 1,470m at 31/12/2018 (including 1,176m for provisions covered by dedicated assets) This increase in nuclear provisions, in particular those subject to dedicated assets, does in no way prejudge the direct transposition onto the Group s Net financial debt of the dates under consideration, given that the amount to be allocated for each year may vary, particularly depending on: the profitability of the dedicated assets and the resulting coverage rate (no need to allocate once the coverage rate has reached 110%) the period within which the allocation is made, the regulations allowing ministers to set a maximum period of 3 years to make the allocation (Article 14 of the amended decree of 23 February 2007 and Article L594-5 of the French Environmental Code) ANNUAL RESULTS

106 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities FRANCE NUCLEAR PROVISIONS: SENSITIVITY ANALYSIS TO THE DISCOUNT RATE Markets Sensitivity to the discount rate Provisions (discounted value) On balance sheet provisions On pre-tax earnings In millions of Euros +0.20% -0.20% +0.20% -0.20% Front-end nuclear Management of nuclear fuel 10,658 (211) (195) Long-term management of radioactive waste 8,966 (475) (432) Dismantling and last cores Dismantling of nuclear plants 14,122 (586) (138) Last cores 2,287 (85) Total 36,033 (1,357) 1, (765) ANNUAL RESULTS

107 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities Markets FINANCIAL IMPACTS OF EXTENDING THE AMORTISATION PERIOD TO 50 YEARS OF THE 900MW (1) FLEET P&L Extending the accounting depreciation period of the 900MW fleet (1) reduces assets depreciation charges and the cost of unwinding the discount. For 2016, impacts are estimated as follows: (In billions of Euros) 30/06/16 31/12/16 Depreciation charges and cost of unwinding the discount Net income Balance sheet Decrease in nuclear provisions as of 1 st January 2016: 2.0bn, including 1.7bn in the scope of the Dedicated Assets (1) Excluding Fessenheim (2) Pro forma after disposal in 2017 of 49.9% of the entity owning RTE ANNUAL RESULTS

108 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France GROUP PROVISIONS FOR EMPLOYEE BENEFITS International & other activities Markets In millions of Euros Provisions 22, (2) +1, net expense 22,492 (1) (3) Actuarial -694 differences Employer s contribution to funds Benefits paid (2) Change, scope and other Including : Change in interest rates on liabilities and assets: + 1,379m Decrease in the commitment in kind Energie France, in particular following the reform of the CSPE mechanism): - 1,742m Differences in experience and differences in demographic assumptions: - 198m 21,766 (1) Provisions 22,334 31/12/ /12/2016 (1) Net liabilities (2) Non-current financial asset (3) Actuarial gains and losses arising from differences in non-current financial assets ( -516m) and other actuarial gains and losses ( -45m) ANNUAL RESULTS

109 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities Markets DEBT AND LIQUIDITY In billions of Euros 31/12/ /12/ /12/2016 Net financial debt Net financial debt/ebitda 2.0x 2.1x 2.3x Debt Bonds Average maturity of gross debt (in years) Average coupon % % % Liquidity Gross liquidity Net liquidity ANNUAL RESULTS

110 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities Markets NET FINANCIAL DEBT In millions of Euros 31/12/ /12/ /12/2016 Financial debt 55,652 64,183 65,195 Derivatives used to hedge debt (3,083) (3,795) (3,965) Cash and cash equivalents (4,701) (4,182) (2,893) Liquid financial assets available for sale (12,990) (18,141) (22,266) Loans to RTE (670) (670) - Net financial debt reclassified (IFRS 5) - - 1,354 Net financial debt 34,208 37,395 37,425 ANNUAL RESULTS

111 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities Markets GROSS FINANCIAL DEBT AFTER SWAPS Breakdown by type of rate Breakdown by currency 46% 31/12/15 19% 3% 3% 31/12/15 Floating rate 46% 54% Other (1) 3% USD 4% GBP 31/12/16 14% Fixed rate 54% 31/12/16 EUR 79% 75% (1) Mainly HUF, CHF, PLN, BRL, CAD and JPY ANNUAL RESULTS

112 Consolidated financial statements Financing & cash management BREAKDOWN OF BOND DEBTS BY CURRENCY In millions of Euros, before swaps Strategy & investments EDF EN France International & other activities Markets Of which (in m eq.) EUR 609 1, ,191 USD JPY 1,654-3,059 2,692 CHF EUR GBP USD CHF JPY Other ANNUAL RESULTS

113 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities EDF, A BENCHMARK GREEN BONDS ISSUER WITH THE EQUIVALENT OF 4.5BN ISSUED IN 5 TRANCHES AND 3 CURRENCIES Markets Eligible investments in the use of funds Issue date (1) Maturity (in years) Nominal amount (millions of currency units) Currency Construction of new renewable capacity by EDF EN Renovation and modernization of existing hydroelectric facilities in metropolitan France Allocated funds as of 31/12/16 11/ ,400 EUR 100% 10/ ,250 USD 97.6% 10/ ,750 EUR - 01/ ,600 JPY - 01/ ,400 JPY - (1) Date of funds reception ANNUAL RESULTS

114 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities Markets GREEN BONDS: A TOTAL OF 3.6MTCO2/YEAR AVOIDED BY THE FUNDS CONTRIBUTING TO 18 RENEWABLE PROJECTS Green Bond N.2 ($1.25bn-Oct. 2015): $1,220m allocated to the construction of 6 wind projects in the United States at end December 2016 Of which 1 project was already partially funded by the 1 st EDF Green Bond Share of Green Bond funded capacity ownded by EDF at the end December 2016: Green Bond N.1 (November 2013): 53% Green Bond N.2 (October 2015): 55% Funds raised Funds allocated Projects having received GB funding Share funded by the GB Gross total capacity of GB funded projects (in MW) Expected output (in TWh/year) Expected avoided CO 2 emissions (in Mt/year) Gross (1) Net (2) Gross (1) Net (2) Gross (1) Net (2) Green Bond N.1 November bn 1.4bn 13 projects (3) 57% 1, Green Bond n 2 Octobre 2015 $1.25bn $1,22bn 3 projects(3) 74% 1, The detailed list of projects will be published in the 2016 EDF reference document (1) Sum of the gross impacts of each project funded by the corresponding Green Bond (2) Sum of the impacts of each project weighted by the share of total investment funded by the corresponding Green Bond (3) Of which one project received funding from both Green Bonds ANNUAL RESULTS

115 Moody s ratings Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities Markets COMPARATIVE DEBT RATINGS A1 S&P Ratings Moody's Ratings Fitch Ratings EDF A- stable (1) A3 stable (2) A- stable (3) A2 Engie Engie A- negative A2 stable n/a A3 Vattenfall EDF SSE E.ON BBB+ negative Baa1 negative BBB+ stable Uniper BBB- stable n/a n/a Baa1 Iberdrola E.ON Enel BBB stable Baa2 stable BBB+ stable RWE BBB- stable Baa3 negative BBB watch negative Baa2 Enel Iberdrola BBB+ stable Baa1 positive BBB+ stable SSE A- negative A3 stable BBB+ stable Baa3 BBB- RWE BBB BBB+ A- A A+ S&P ratings Endesa BBB stable n/a BBB+ stable Vattenfall BBB+ negative A3 negative BBB+ stable Innogy BBB- positive n/a BBB+ stable Sources: rating agencies (1) Update of the rating and outlook of EDF Group by S&P on 21 September 2016 (2) Update of the rating and outlook of EDF Group by Fitch on 28 September 2016 (3) Update of the rating and outlook of EDF Group by Moody s on 26 October 2016 ANNUAL RESULTS

116 Consolidated financial statements Financing & cash management Strategy & investments EDF EN France International & other activities Markets DEDICATED ASSETS In billions of Euros Provisions for last cores (1) Provisions for dismantling of nuclear plants CSPE receivable EDF Invest Provisions for last cores (1) Provisions for dismantling of nuclear plants CSPE receivable EDF Invest Provisions for LT management of radioactive waste Financial portfolio and liquid assets Provisions for LT management of radioactive waste Financial portfolio and liquid assets Provisions Dedicated assets Provisions in realisable value 31/12/ /12/2016 Dedicated assets in realisable value As of 31 December 2016, the regulatory coverage ratio for nuclear liabilities eligible for EDF's dedicated assets is 99.8%, and, everything else being equal, would reach 105.3% after finalising the sale of a portion of the C25 shares planned for H (1) Regulatory obligation to allocate 1,095m to dedicated assets EDF will, in the month following the closing of the financial statements, allocate this amount to the dedicated assets, in compliance with the letter of 10 February 2017 from the French Ministers of Economy and Finance, and of Environment, Energy and Sea (1) The coverage ratio of the provisions is 105.4% excluding the statutory caps prescribed by Order N ANNUAL RESULTS

117 Consolidated financial statements EDF DEDICATED ASSETS PERFORMANCE Financial portfolio performance of +6.2% in 2016, close to its benchmark (+6.8%) Markets volatility with a supportive year-end that has offset a difficult start. The performance reflects prudent management, notably underweighting emerging equities at the beginning of the year, in a context of geopolitical changes especially in the United Kingdom, in the United States and in Italy which were unfavorable to active fund management EDF Invest posted a 2016 performance of + 7.9% excluding RTE and % in total including RTE (impact of the CDC / CNP operation) Financing & cash management Strategy & investments EDF EN In December 2016, EDF and the consortium CDC / CNP signed an agreement for the sale of 49.9% of the share capital of RTE, highlighting a revaluation of RTE. The other 50.1% will remain allocated to dedicated assets In addition, EDF Invest continues to grow, notably with the 50/50 acquisition with the DIF fund of Thyssengas (the third gas transport operator in Germany) and with Atlantia of a controlling interest in the Côte d'azur Airports A portion of the CSPE (5) receivable was sold in December 2016, including a portion allocated to dedicated assets; the proceeds from the sale of this share ( 894m) were reinvested in the dedicated assets France Portfolio breakdown as of 31 December 2016 (4) In millions of Euros EDF Invest (2) CSPE receivable (3) 4,286 5,633 Cash 900 International & other activities 25,677 (4) Shares and equity funds 7,992 Shares and bond funds 6,866 Performance in 2016: +11.1% (1) Markets Listed Financial Portfolio (1) Full-year performance before tax, including revaluation of RTE. The performance of dedicated assets excluding RTE was +5.7% (2) Including a 75.9% stake in company C25 (holding 100% of RTE shares) for a realization value of 3,905m (3) CSPE receivable after hedging, including a revaluation of 103m as a result of the gain on the portion sold (4) In realisable value (5) Share of 26.4% of the CSPE receivable sold for a total sale price of 1,538m ANNUAL RESULTS