Edf: 2023 Annual Results: Substantially higher nuclear power output in France – Good overall operational performance – New commercial policy – Net financial debt reduced – Trajectory 1.5°C validated by Moody’s

2023 ANNUAL RESULTSGood overall operational performanceNew commercial policyNet financial debt reducedTrajectory 1.5°C validated by Moody’sEBITDA: €39.9 bnEBIT: €13.2 bnNet income – Group share: €10.0 bnNet Financial Debt: €54.4 bn – NFD / EBITDA: 1.36xAdjusted Economic Debt: €86.3 bn – AED / adjusted EBITDA: 2.26xAdjusted economic debt / Adjusted EBITDA (Working capital requirement increased by €7.8 billion, comprising:The bond issues of 2023, totalling around €8 billion, the lower level of short-term debt, and early repayments of bank loans lengthened the maturity of the Group’s financial debt to 11 years at 31 December 2023 (versus 9.4 years at 31 December 2022).
EDF received the 2024 International Financing Review (IFR) “Corporate Issuer of the Year” award for its issues in 2023.                                                                                                                                           Financial results by segment:In 2022, the exceptional regulatory measures introduced by the French government to limit rises in sales prices to consumers had an adverse effect on EBITDA estimated at -€8.2 billion.
The lower nuclear output in 2022 had led to purchases of large volumes at very high market prices, but this effect was much smaller in 2023, generating a positive impact of €7.3 billion.
Also, the rise in prices had an impact of €12.1 billion for final consumers and €12.5 billion covered by the tariff shield. This effect is largely explained by the average forward market price for the past 2 years, which was €218/MWh in 2023 compared to €71/MWh in 2022, and an ARENH cropping price of €410/MWh in 2023, versus €257/MWh in 2022.change(in millions of euros)(in millions of euros)(2)   Including €(2,789) for redemption of hybrid notes in 2023 (€(267) million in 2022).Neither EDF nor any EDF affiliate is bound by a commitment or obligation to update the forward-looking information contained in this document to reflect any events or circumstances arising after the date of this presentation.

(1) Net financial debt is not defined in the accounting standards and is not directly visible in the Group’s consolidated balance sheet. It comprises total loans and financial liabilities, less cash and cash equivalents and liquid assets. Liquid assets are financial assets consisting of funds or securities with initial maturity of over three months that are readily convertible into cash and are managed according to a liquidity-oriented policy.((3) Indexed adjustment to the TURPE 6 distribution tariff: +2.26% at 1 August 2022 and +6.51% at 1 August 2023.(4) In application of decision 2022-296 of 17 November 2022 published by the French energy regulator(5) Group Energy Services comprises Dalkia, IZI Confort, IZI Solutions, Sowee, Izivia, and the service activities of EDF Energy, Edison, Luminus and EDF SA. The services consist in particular of heating networks, decentralised low-carbon generation using local resources, street lighting, energy consumption management and electric mobility.(6) For Edison’s scope.(7) Luminus and EDF Belgium.(8) For Luminus’ scope

(1) 40.9 M customers counted by point of delivery in France, the United Kingdom, Italy, and Belgium. One customer may have two points of delivery.(2)(3) Estimated nuclear generation by the plants currently in operation.(4) Excluding the island activities, before deduction of pumped-storage volumes. After deduction of pumped-storage volumes, total hydropower output was 33.0TWh in 2023 (25.0TWh in 2022).(5) The risks of deviations in components, equipment or equipment parts delivered by EDF’s service providers and suppliers could, after analysis and provided the deviations are confirmed, lead to justification or correction of deviations and the possibility of a delayed start-up date.(6) See the press release of 23 January 2024. Previously, production by Unit 1 was expected to start in June 2027 and the completion cost was £25-26 bn(7) See note 10.8 to the 2023 consolidated financial statements.(8) See the(9) Based on scope and exchange rates as at 1 January 2024 and French nuclear output of 315-345TWh in 2024 and 335-365TWh in 2025 and 2026 by the plants currently in operation.(10) Applying constant S&P ratio methodology.