EDF : FY2013 results up - Proposed cash dividend of €1.25/share - 2014-2018 vision

2013 full-year results up, driven by
good operating and financial performance

Strengthened financial structure

2014-2018 vision

• Group EBITDA: €16.8bn, +5.5% in organic growth^[1] 

• Strong growth in low-carbon energies 

  • Hydro and other renewable output in France: +22.5% vs. 2012 

  • Highest hydro output in over 10 years in France 

  • Highest nuclear output in past 8 years in the United Kingdom and stable output in France  

• Net income - Group share: €3,517m, +7.4% 

• Net income excluding non-recurring items: €4,117m vs. €4,175m in 2012 

• Spark: €1.3bn in cost savings at end-December; initial target: €1bn 

• Net financial debt/EBITDA: 2.1x vs. 2.4x^[2] at 31 December 2012  

• Proposed cash dividend for 2013: €1.25/share, a payout ratio of 56.5%, within the range of 55% to 65% of net income excluding non-recurring items 

Financial targets for 2014:

• Group EBITDA  excluding Edison: organic growth of at least 3% 

• Edison EBITDA: expectation for recurring EBITDA of €1bn and at least €600m in 2014 before effects of gas contract renegotiations  

• Net financial debt/EBITDA: between 2x and 2.5x  

• Payout ratio of net income excluding non-recurring items post hybrid^[3]: 55% to 65% 

2014-2018 vision:

• Cash-flow after dividends^[4]: positive in 2018 

EDF's Board of Directors, meeting on 12 February 2014 under the chairmanship of Henri Proglio, approved the consolidated financial statements for the financial year ending 31 December 2013.

Henri Proglio, Chairman and CEO of EDF said: "With rising results in line with targets, EDF continued to advance in 2013. Good operating performance was highlighted by strong growth in renewable energies, of nearly 23% in France, resulting in an improvement in the Group's overall output. This year, 6,000 new hires joined the Group and €12 billion were invested in all our businesses, attesting to our contribution to industrial growth in France. With a strengthened financial structure, the Group will fully play its role as a major industrial company in Europe for the years to come."

Change in EDF Group's full-year results

Change in EDF Group EBITDA

Amid an environment where the economic recovery is still uncertain and an energy sector affected by the impact of overcapacity, particularly in Europe, EDF Group met all the targets that it had set itself for 2013. It demonstrated its leadership in low-carbon energy thanks to its nuclear output as well as its hydropower output and other renewable energies, which, the latter two combined, increased 18.2% at the Group level compared with 2012. As a result, the Group reduced its CO₂ emissions to 116g/KWh, which is well below the long-term commitment of remaining under 150g/KWh taken at the last Shareholders' Meeting.
Group EBITDA was up 5.5% to €16,765 million in organic terms. With 9.4% organic growth, business in France was lifted by favourable operating conditions due to a positive weather effect and excellent hydro conditions as well as good control of operating expenses related to the Spark programme. In the United Kingdom, EBITDA recorded organic growth of 4.1%, excluding the effect of the fair-value adjustment related to the acquisition of British Energy, and it achieved the best nuclear output in the past eight years (60.5 TWh).

In Italy, Edison's EBITDA was in line with the €1 billion target announced at 2013 half-year results, on the back of the successful outcomes of gas contract renegotiations and arbitrage; however, the performance of Edison continues to be affected by low margins in gas activities.

The Other International and Other Activities segments generated overall EBITDA that was down by 0.75% in organic terms, due mainly to unfavourable economic and regulatory conditions in Belgium and Poland. However, at more than 23%, the organic growth of EDF Energies Nouvelles' EBITDA was very strong and resulted from record commissioning in 2012.

Operating performance: excellent renewable output in France
and nuclear output in the United Kingdom

Hydropower output in France reached the highest it has been in over ten years, at 42.6 TWh up by 23.1% compared with 2012 due to exceptional hydro conditions. At end-2013, hydro reservoir levels were comparable to the historical average. Combined with other renewable energies in France, the increase in output was 22.5% compared with last year.

In France, nuclear output was stable in 2013, at 403.7 TWh (-1.2 TWh compared with 2012) given the effect of the leap year in 2012, but remains below the 405-410 TWh range that the Group announced in the third quarter. On the whole, compared with 2012, the Group once again improved the control of unplanned thanks to the large component replacement programme. However, despite a slight improvement, planned outage extensions were still longer than expected in the second half of the year. Furthermore, despite good availability of the nuclear fleet in the month of December, temperatures remained unseasonably warm over nearly the entire month, which, combined with high wind output, resulted in less demand for the fleet.
In 2014, EDF intends to ramp up the action plan started in 2013 aiming to better control outage durations. Consequently, with the same volume of planned outages as in 2013, the Group is targeting nuclear output of between 410 and 415 TWh in 2014.

The output of fossil-fired plants rose to 15.6 TWh, up 0.7 TWh compared with 2012, as coal-fired plants were used to a greater extent than 2012.

Total output in mainland France rose to close to 462 TWh in 2013, up 7.5 TWh compared with 2012.

Spark: €1.3bn in savings generated

The organic increase of operating expenses of around €225 million was mainly due to increased headcount in France.

Net income - Group share up 7.4%

Net income - Group share rose to €3,517 million, up by 7.4% compared with 2012, driven by the Group's operating and financial performance.

The financial result increased by 7.3% in 2013 to -€3,089 million versus -€3,334 million in 2012 due, in particular, to lower discount expenses as the change in the discount rate of nuclear provisions in France in 2012 had no equivalent in 2013.

Net income - Group share integrates non-recurring items totalling -€600 million due to impairments on Alpiq and Benelux, in particular, compared with -€900 million in 2012. Restated for these items, net income excluding non-recurring items came out to €4,117 million in 2013 compared with €4,175 million last year.

Proposed cash dividend for 2013: €1.25/share

EDF's Board of Directors, meeting on 12 February 2014, decided to propose to the Shareholders' Meeting to be held on 15 May 2014 the payment of a cash dividend of €1.25/share for the 2013 financial year, resulting in a 56.5% payout ratio of net income excluding non-recurring items, in line with the target of 55% to 65% set by the Group.

Registered shares dating from 31 December 2011 which remained, at all times, registered in this form and in the name of the same shareholder until the dividend payment date will benefit from a 10% increase. This increase is limited to 0.5% of the share capital per shareholder. The loyalty dividend comes out to €1.375/share.

Given the payment of an interim dividend of €0.57/share paid in December 2013, the remaining dividend to be paid is €0.68/share for shares benefiting from the ordinary dividend and €0.805/share for shares eligible to the loyalty dividend.

The proposed dividend payment date is 6 June 2014, the ex date is therefore set for 3 June 2014.

The Group's net investment reached €12,206 million in line with the range of €12bn-12.5bn announced in July 2013, 47% of which was allocated to maintenance, 25% to development and 28% to regulated activities.

Net investments in France were up 10.2%, mainly in nuclear maintenance.

As in 2012, the Group allocated more than one-third of its gross development investment to renewable energies, primarily at EDF Energies Nouvelles whose gross investments reached €1,450 million. As a consequence, the Group issued its first ever "Green Bond" in November 2013 for €1.4 billion with a maturity of 7.5 years and a coupon of 2.25% in order to finance EDF Energies Nouvelles' new development projects that comply with environmental, social and societal eligibility criteria vetted by the rating agency Vigeo. At 31 December 2013, nearly €192 million were allocated to projects hence selected by EDF Energies Nouvelles.

For 2014, the Group expects to invest between €13 and €13.5 billion.

Strengthened financial structure and target met

Net financial debt stood at €35.5 billion at 31 December 2013, down €3.7 billion compared with 31 December 2012. The Net financial debt/EBITDA ratio came out to 2.1x at 31 December 2013, in line with the target of 2x to 2.5x that the Group had set.

Operating cash flow of nearly €13 billion was an increase of 5.4% compared with 2012 and covered, notably, net investments of €12.2 billion.

In January 2014, the Group deployed the second phase of its multi-annual hybrid funding programme and raised €4 billionequivalent in three currencies and four tranches. This issuance contributes to aligning the Group's hybrid funding with its capital needs for future growth.

EDF also continued its active funding policy aiming to extend the average maturity of its debt by issuing a senior 100-year bond in sterling for £1.35 billion and a senior bond in dollars of $4.7 billion in five tranches of which $700 million maturing in 100 years.

With these operations, the average maturity of Group debt increased to 12.2 years and the average coupon stood at 3.8% compared with 8.5 years and 3.7%, respectively at end-2012.

2014 outlook

2013 was a decisive year for EDF and was highlighted by the success of a number of operations defining for the Group's future. These operations included the allocation of the CSPE receivable to dedicated assets, the clarification of the tariff equation in France, the success of the Spark cost-savings programme and, lastly, the agreement on the main commercial terms of the investment contract related to Hinkley Point C (HPC) in the United Kingdom.

In addition, the Group entered into advanced discussions for the acquisition of all assets and activities of Dalkia Group in France (including Citelum and its subsidiaries). This operation will enable EDF Group to significantly develop its presence in energy services, particularly those provided to local authorities. It will also offer the Group substantial synergies due to the complementary nature of the businesses and expertise of EDF Group and Dalkia.

In 2014, several priorities remain to be addressed. On the one hand, the distribution tariffs (TURPE 4) with the aim of enhancing the visibility of the regulation model. Likewise, the Group noted that in a letter dated 12 November 2013 to the President of the French Energy Regulation Commission, the government expressed its willingness to present a draft law in the near future that would secure the legal framework for the distribution tariff calculation.

On the other hand, the government announced that a decree will be issued regarding the ARENH formula by the end of the first quarter of 2014.

The Group announced the following financial targets for 2014:

• Group EBITDA excluding Edison: organic growth of at least 3% 

• Edison EBITDA: expectation for recurring EBITDA of €1bn and at least €600m in 2014 before effects of gas contract renegotiations   

• Net financial debt/EBITDA: between 2x and 2.5x  

• Payout ratio of net income excluding non-recurring items post hybrid^[14]: 55% to 65% 

2014 - 2018 vision

In July 2011, when the Group announced its 2011-2015 outlook, it declared its goal of diversifying its energy mix and its geographic presence. It estimated its upper-end net investment target of €15 billion in 2015 on the basis of existing and identified projects.

Over the 2014-2018 period, the Group will deliver major industrial projects, some of which are in the advanced stages, like the LNG terminal in Dunkirk or the Flamanville 3 EPR with commissioning expected in 2015 and 2016, respectively. The Group also intends to continue its investments in the French distribution networks and in renewable energies, in line with its strategy of an integrated electricity company.

At the same time, the Group continues to improve and bolster the monitoring of cost controls. EDF launched, in 2011, the Group Synergies and Transformation (STG) programme focusing on ways to improve performance such as purchasing and synergy development, with the goal of generating gains of €2.5 billion by 2015 compared with 2010. These efforts have been pursued through the Spark programme, which was launched in 2013. Savings had already reached €1.3 billion at end-2013, well above the target. Going forward, the Group intends to consolidate the efficiency and the best practices that have been developed in the past three years. In particular, it plans to implement a new Operational Cost Control programme that will enable the Group to strengthen methods and processes for monitoring and optimising costs.

Therefore, the Group now anticipates that net investments will peak in 2015 at €14 billion, and should decline as new assets become operational.

Taking into account this action plan over 2014-2018, the Group plans for its cash flow after dividends, excluding Linky, to be positive in 2018.

Main Group results by segment

France: strong performance driven by favourable operating conditions

*Data restated for impact of IAS 19 revised
In France, sales rose to €40,210 million, organic growth of 2.8% compared with 2012. EBITDA increased by 9.4% in organic terms and reached €10,778 million on the back of good operating conditions.

In the generation and supply activities (unregulated), EBITDA rose to €6,705 million, an organic increase of 8.9% thanks to a positive weather effect, as temperatures were consistently cold in the first half-year, combined with more favourable market conditions than in 2012 as well as excellent hydro conditions. These two factors contributed €591 million to EBITDA growth. This growth was also attributable to the increase in the energy component of regulated sales tariffs.
EBITDA was hit by the cost of the end of free allocation of CO₂ allowances and increased headcount in 2013.

The transmission portion of distribution tariffs was a small contributor to EBITDA growth. When the Conseil d'Etat invalidated TURPE 3 in November 2012, TURPE 3 bis and ter took its place, leading to a 2.5% drop in tariffs between 1 June and 31 July 2013 then a 2.1% increase between 1 August and 31 December 2013, respectively. After initiating a deliberation on 9 July 2013 on two tariff methods for the next TURPE 4 distribution tariffs, the CRE published its decision in December 2013, which led to a tariff increase of 3.6% from 1 January 2014.

Outside of France

United Kingdom: excellent performance of nuclear output

* Data restated for the impact of IAS 19 revised
**From acquisition of British Energy

In the United Kingdom, the segment's sales rose to €9,782 million, reflecting organic growth of 5.1% compared with 2012. EBITDA recorded organic growth of 2% to €1,992 million. It includes an unfavourable exchange rate effect of €92 million.
EBITDA also includes the negative impact of the fair value revaluation related to the acquisition of British Energy
(-€77 million compared with -€35 million in 2012). Restated for this impact, it increases by 4.1% in organic terms.

EBITDA growth reflects the excellent operating performance of nuclear output in 2013, which reached an eight-year high (60.5 TWh) and was lifted by favourable market conditions. It was also due to good control over operating expenses.

The segment's EBITDA was, however, penalised by the negative impact related to the end of the free allocation of CO₂ allowances.

Italy: Edison's EBITDA in line with 2013 targets

The Italy segment includes, mainly, EDF Fenice and Edison, which has been fully consolidated since the takeover was finalised on 24 May 2012
*Data restated for the impact of IAS 19 revised
In Italy, sales rose to €12,875 million, reflecting organic growth of 2.6%. EBITDA reached €1,098 million, an organic drop of 5.8% amid depressed demand on electricity and gas markets.

Edison's EBITDA totalled €1,007 million, in line with the 2013 target of €1 billion announced by the Group when half-year results were published, thanks to the successful renegotiations of gas contracts with Algeria and Qatar.

In the electricity activities, EBITDA was higher due to sales on the wholesale markets, favourable hydro conditions and optimisation of the generation fleet.

In the hydrocarbon activities, EBITDA was impacted by contracting gas margins due to falling market prices. The decline in EBITDA was only partially offset by the favourable outcome of arbitration on the long-term gas contract in Algeria last April and the renegotiations of contracts with Algeria and Qatar in July 2013.

Edison reiterates a recurring EBITDA of €1 billion, which may vary according to the timing of renegotiations of gas procurement contracts. Indeed, the Group is continuing its second round of price revisions on gas from Libya and Russia, the finalisation of which is expected in 2014/2015. Excluding the positive effect of these renegotiations, the Group is targeting an EBITDA of at least €600 million in 2014.

Other International: unfavourable economic and regulatory conditions

*Data restated for the impact of IAS 19 revised
Sales in the Other International segment reached €7,841 million, reflecting slight organic growth of 0.2% compared with 2012. EBITDA increased by 9.8% in organic terms at €1,128 million.

EBITDA in Belgium was down on account of a fall in electricity and gas tariffs on the B2C market.

In Poland, EBITDA was hit by the unfavourable regulatory environment regarding support of cogeneration and biomass. However, this was offset by the suspension of the supercritical coal plant, where costs in 2012 for this project were not repeated in 2013.

Lastly, EBITDA from Other International benefited in 2013 from a capital gain from the Group's sale of its minority stake in SSE, the number two distributor and provider of electricity in Slovakia.

Other Activities: Robust growth of EDF Energies Nouvelles' output

* Data restated for the impact of IAS 19 revised and for the change in the presentation of EDF Energies Nouvelles' Development and Sale of
Structured Assets activities
Sales generated by the Other Activities segment were up in organic terms by 4.4% to €4,886 million. EBITDA fell by 6.3% in organic terms to €1,769 million.

EBITDA from EDF Energies Nouvelles jumped 23.3% in organic terms due to a sharp increase in output (+31.3% compared with 2012) as substantial new capacities came on line in 2012 in Canada and the United States mainly.
Following the issuance of EDF's Green Bond in November 2013, four projects developed by EDF Energies Nouvelles have already been selected and were funded at 31 December 2013 totalling €192 million. Three of these projects are onshore wind farms in the United States, France and Canada with the fourth being a biogas facility in the United States.  

The EBITDA of EDF Trading recorded a slight drop of 1.9% in organic terms.

Other Activities in the segment saw their EBITDA decline by 32.1% in organic terms which stands in contrast to 2012 when it benefited from property transactions and the renegotiation of insurance contracts that had no equivalent in 2013.

Moreover, Dalkia's EBITDA included, in 2013, an unfavourable scope effect related to the planned disposal of Dalkia International due to the application of IFRS 5. The contractual documentation is slated to be signed pending the recommendation of the staff representatives, which is expected in the first quarter of 2014. The transaction is subject to the approval of the relevant competition authorities.

Highlights subsequent to the third quarter 2013 release

Successful hybrid bond issue and senior bond issuance in dollars and sterling

On 17 January 2014, EDF (A+ S&P / Aa3 Moody's / A+ Fitch) successfully priced a 100-year £1.35 billion bond issuance in sterling, closing the series of issues launched on 13 January 2014, which included the multi-currency hybrid bonds and the senior dollar issuance. Indeed, the Group successfully raised approximately €4 billion equivalent in hybrid bond issuance in four tranches and three currencies, thus beginning the second phase of its multi-annual hybrid funding programme. Taking advantage of excellent market conditions in early 2014, EDF also priced $4.7 billion in issuance in five tranches on the US bond market.

EDF Energies Nouvelles acquires a wind energy project with 300 MW in potential capacity in New Mexico

On 9 January 2014, EDF Energies Nouvelles announced the acquisition of Roosevelt, a wind energy project with potentially up to 300 MW in capacity in the United States. The Roosevelt wind farm is the first project undertaken by EDF Renewable Energy, the US subsidiary of EDF Energies Nouvelles, in the state of New Mexico. The Roosevelt project is strategically located close to two wind farms already in operation and another four projects under development in Texas. Initially developed by Infinity Wind Power, the future Roosevelt wind farm is due to be commissioned in December 2015. The power generated by the first 250 MW tranche will be sold pursuant to a 20-year fixed price power purchase agreement.

Agreement signed to create a joint venture in nuclear energy in Saudi Arabia

During the visit of the President of the French Republic François Hollande on 30 December in Riyadh, EDF signed an agreement to create a joint venture with GEHC (Global Energy Holding Company) whose first goal will be to carry out feasibility studies in light of the Saudi nuclear programme, based on the French EPR technology.
EDF and AREVA signed two sets of agreements aimed at supporting the Saudi nuclear energy program. The two companies signed memorandums of understanding with five Saudi industrial partners. These agreements aim to develop the industrial and technical skills of local companies. A second series of agreements signed with four Saudi universities will contribute to the development of nuclear expertise in the country.

EDF extends the maturity of its €4 billion syndicated loan facility by 3 years

On 16 December 2013, EDF successfully signed with 23 European and international banks an amendment to the agreement to its €4 billion, 5-year syndicated loan facility dated 22 November 2010. It extends the maturity of the facility by 3 years from November 2015 to November 2018 whilst reducing the spread from 35 to 20 bps per annum. The amendment also reinstates the two one-year extension options exercisable at the request of EDF and at the discretion of the banks.

EDF Energies Nouvelles expands its presence in India

On 5 December 2013, EDF Energies Nouvelles rolled out its operations in a new country with a partnership with Indian company ACME Cleantech Solutions Limited to create a joint venture based in India. EDF Energies Nouvelles holds a 25% stake in the company, ACME Solar Energy Private Limited, which will focus on the development, construction and operation of solar power projects in India. Positioned primarily in the photovoltaic power market, ACME Solar Energy Private Limited has already begun construction of a 30 MWp solar power plant in Madhya Pradesh in the centre of India and has a portfolio of 200 MWp of projects at various stages of completion. India presents considerable potential for EDF Energies Nouvelles to expand its solar energy operations. The country has a high level of sunshine and a recurring shortage of electricity generation.

EDF Energies Nouvelles and wpd offshore submit bids for two new projects alongside Alstom

On 29 November 2013, the European consortium comprising EDF Energies Nouvelles and wpd offshore, announced that they have submitted two bids for the Tréport and Ile d'Yeu/Ile de Noirmoutier projects. These two offers fall within the framework of the second call for tenders for French offshore wind energy projects, representing total new capacity of 1,000 MW to be installed by 2023. This could reinforce the ambitious plan already taking place with Alstom, partner for the turbines.

EDF and EPH complete the transaction for the sale of 49% of Stredoslovenská Energetika a.s. (SSE) in Slovakia

On 27 November 2013, EDF and Energetický a prumyslový holding, a.s. (EPH), completed the transaction for the sale of EDF's minority stake of 49% in Stredoslovenská Energetika a.s. (SSE) to EPH. This announcement follows the approval by the SSE general shareholders meeting and the antitrust authorities' clearance. The transaction values EDF's 49% stake in SSE at approximately €400 million.

EDF: distribution of a cash interim dividend of €0.57 per share for FY 2013

On 27 November 2013, EDF SA's Board of Directors met under the Chairmanship of Henri Proglio, and decided to pay a cash interim dividend for the 2013 fiscal year amounting to €0.57 per share. This interim dividend had an ex date of 12 December 2013 and a payment date of 17 December 2013.

EDF announces the disposal of its entire stake in Veolia environnement

On 26 November 2013, EDF announced the disposal of its entire non-strategic stake in Veolia Environnement (VIE.PA) representing 4.01% of the share capital of the Euronext Paris and NYSE-listed company. The disposal was completed at a selling price of €11.90 per share or a 2.3% discount to Veolia Environnement's closing price as of 26 November, resulting in gross cash proceeds for EDF of approximately €262.1 million.

EDF Energies Nouvelles commissions a biomass plant in the United States

On 22 November 2013, EDF Energies Nouvelles announces the commissioning of the Pinelands (South Carolina) power plant by its US subsidiary EDF Renewable Energy. This biomass plant, which generates renewable energy from wood waste, reflects EDF Energies Nouvelles' intention of expanding in several sustainable forms of energy, alongside its core wind and solar energy activities. With 35.6 MW in installed capacity, the Pinelands power plant consists of two facilities with identical capacity located in Dorchester and Allendale, densely wooded counties in South Carolina. The Pinelands power plant, which has been interconnected to the Santee Cooper transmission system adjacent to the sites, will supply the electricity generated under 30-year Power Purchase Agreements.

Successful launch of EDF's first Green Bond

On 20 November 2013, EDF (A+ S&P / Aa3 Moody's / A+ Fitch) launched the first Green Bond in euros by a large corporate issuer. With a maturity of 7.5 years, denominated in euros, a total amount of €1.4 billion and an annual coupon of 2.25%, this issue was twice oversubscribed and was a great success among institutional investors.

APPENDICES

1. Change in recognition and measurement methods of the gains related to employee benefits 

The IAS 19 standard was revised in June 2011. The new version, which became mandatory on 1 January 2013, introduces the following changes for valuation and recognition of the EDF group's provisions for employee benefits:

• Immediate recognition of the unvested past service cost, 

• Inclusion of the administrative and financial costs of employee benefit plans in the current service cost, with a corresponding reversal from the provisions previously established for those costs, 

• Inclusion in the financial result of a "net interest expense", equivalent to the interest expense on obligations net of income from fund assets, which is now determined using the same discount rate as the rate applied to measure obligations. The differential between the discount rate for obligations and the actual rate of return on fund assets is recorded directly in equity. 

The Group decided in 2012 to stop using the "corridor" method and now recognises all actuarial gains and losses in full under the "SoRIE" method.

In compliance with IAS 8, this change of method is applied retrospectively.

2. Change in EDF Energies Nouvelles' DSSA^[21] activities presentation 

From 2013 and for the comparative periods presented, disposals of generation assets by EDF Energies Nouvelles are now recorded at net value (sale price less the associated cost of construction) in "Other operating income and expenses". Previously, the proceeds of these sales were included in "Sales revenues" (for sales proceeds) and the construction costs were included in "Other external expenses" (for construction costs).

This change of presentation has no impact on EBITDA, nor on Group net income and standardises the presentation used in the Group's income statement for asset disposal operations by EDF Energies Nouvelles (facilities under construction and facilities in operation).

Consolidated Income Statement

1. Figures for 2012 have been restated for the impact of retrospective application of IAS 19 revised and the change in presentation of disposals of generation assets by EDF Énergies Nouvelles as part of its Development and Sale of Structured Assets business. 

Consolidated balance sheets

1. The figures published for 2012 have been restated for the impact of retrospective application of IAS 19 revised.
    

Consolidated balance sheets

1. The figures published for 2012 have been restated for the impact of retrospective application of IAS 19 revised.
    

Consolidated cash-flow statements

1. The figures published for 2012 have been restated for the impact of retrospective application of IAS 19 revised. 

2. Contributions via capital increases or reductions and acquisitions of additional interests in controlled companies.  

EDF Group, one of the leaders in the European energy market, is an integrated energy company active in all areas of the business:
generation, transmission, distribution, energy supply and trading. The Group is the leading electricity producer in Europe. In France, it has mainly nuclear and hydropower generation facilities where 95.9% of the electricity output is CO₂-free.
EDF's transmission and distribution subsidiaries in France operate 1,285,000 km of low and medium voltage overhead and underground
electricity lines and around 100,000 km of high and very high voltage networks. The Group is involved in supplying energy and services
to approximately 28.5 million customers in France. The Group generated consolidated sales of €75.6 billion in 2013, of which 46.8%
outside of France. EDF is listed on the Paris Stock Exchange and is a member of the CAC 40 index.

Disclaimer

This press release 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 press release, and none of EDF representatives shall bear any liability for any loss arising from any use of this press release 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, which can be however inaccurate and are subject to numerous risks and uncertainties. Important factors that could cause actual results, performance or achievements of the Group to differ materially from those contemplated in this document include in particular the successful implementation of EDF strategic, financial and operational initiatives based on its current business model as an integrated operator, changes in the competitive and regulatory framework of the energy markets, as well as risk and uncertainties relating to the Group's activities, its international scope, the climatic environment, the volatility of raw materials prices and currency exchange rates, technological changes, changes in the general economic.
Detailed information regarding these uncertainties and potential risks are available in the reference document (Document de référence) of EDF filed with the Autorité des marchés financiers on April 5, 2013, which is available on the AMF's website at www.amf-france.org and on EDF's website at www.edf.com. EDF does not undertake nor does it have any obligation to update forward-looking information contained in this press release to reflect any unexpected events or circumstances arising after the date of this press release.
[1] At constant scope and exchange rates       
[2] Pro forma after the effects of the agreement on the CSPE receivable reached in early 2013
[3] Net income excluding non-recurring items adjusted for interest payments on hybrid bonds booked as equity
[4] Excluding Linky
[5] EPS = (Net income-Group share - payments on hybrid) / average number of outstanding shares. In 2013, payments on hybrid issues totalled €103m
[6] Development and Sale of Structured Assets
[7] Advanced Gas-Cooled Reactor ("AGR")
[8] Final decision subject to obtaining required authorisations
[9] Pressurised Water Reactor (PWR)

[10] Excluding Dalkia, at constant scope, exchange rates and methods
[11]11 Investments excluding Linky and strategic operations
[12] Pro forma after the effects of the agreement on the CSPE receivable reached in early 2013
[13] Hybrid issues booked as equity due to their characteristics and in compliance with IFRS
[14] Net income excluding non-recurring items adjusted for interest payments on hybrid bonds booked as equity
[15] ERDF and French islands activities
[16] Excluding RTE
[17] £89.5/MWh if an investment decision is made on the Sizewell C project. In this case, the Sizewell C project will pay the Hinkley Point C project the equivalent of £3/MWh, as Sizewell C will be more cost efficient due to experience gained from Hinkley Point C construction
[18] The "IRR" of a project is a standard measure used by investors to evaluate the profitability of a project
[19] This transaction stipulates that the operational management of CENG reactors shall be delegated to Exelon and that the Group shall receive an exceptional dividend of $400m (around €300m) and will benefit from a put option on Exelon at the fair value of EDF's stake in CENG, which can be exercised from January 2016 to June 2022
[20] Vigeo is a European leader in ESG rating (Environmental, Social and Governance)
[21] Development and Sale of Structured Assets

EDF
22-30, avenue de Wagram - 75382 Paris cedex 08

SA au capital de 924 433 331 euros - 552 081 317 R.C.S. Paris

www.edf.fr

David Newhouse (US Investors) : +33(1) 40 42 32 45