investor presentation – european deal roadshow · 2018. 2. 27. · investor presentation –...

Investor Presentation – European Deal Roadshow

DisclaimerThis 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 anyloss arising from any use of this presentation or its contents. The present document may contain forward-looking statements and targets concerning, for example, the Group’s strategy, financial positionor results, which do not constitute a guarantee of future performance or results of the company. EDF considers that these forward-looking statements and targets are based on reasonable assumptions,which can be however inaccurate and are subject to numerous risks and uncertainties, many of which are outside the control of the company, and as a result of which actual results may differ materiallyfrom expected results. Important factors that could cause actual results, performance or achievements of the Group to differ materially from those contemplated in this document include in particular thesuccessful 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 theenergy markets, as well as risk and uncertainties relating to the Group’s activities, the climatic environment, the volatility of raw materials prices and currency exchange rates, the strengthening of safetyregulations, technological changes, changes in the general economic and political conditions in the countries where the Group operates, and risk and uncertainties relating to the consequences of thenuclear accident in Japan.

Detailed information regarding these uncertainties and potential risks are available in the reference document (Document de référence) of EDF filed with the Autorité des marchés financiers on April 10,2012, which is available on the AMF's website at www.amf-france.org and on EDF’s website at www.edf.com.

EDF does not undertake, nor does it have any obligation to provide updates of the information contained in this presentation.

This presentation and the information contained herein are not being issued and may not be distributed in the United States of America, Canada, Japan or Australia.

2

This presentation does not constitute an offer to sell securities, or a solicitation of an offer to buy securities, in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The securities of Electricité de France SA described herein have not been and will not be registered under the Securities Act, or the laws of any State, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable State laws. Electricité de France SA does not intend to register any portion of the offering in the United States or conduct a public offering of securities in the United States.

This presentation is for distribution only to persons who (i) have professional experience in matters relating to investments which fall within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the “Financial Promotion Order”), (ii) are persons falling within Article 49(2)(a) to (d) (“high net worth companies, unincorporated associations etc”) of the Financial Promotion Order, (iii) are outside the United Kingdom, or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as “relevant persons”). This document is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this document relates is available only to relevant persons and will be engaged in only with relevant persons.

This presentation has been prepared on the basis that any offer of the notes in any Member State of the European Economic Area (“EEA”) which has implemented the Prospectus Directive (2003/71/EC) (each, a “Relevant Member State”) will be made pursuant to an exemption under the Prospectus Directive, as implemented in that Relevant Member State, from the requirement to publish a prospectus for offers of notes. Accordingly any person making or intending to make any offer in that Relevant Member State of notes which are the subject of the offering contemplated in this presentation may only do so in circumstances in which no obligation arises for Electricité de France SA or any of the bookrunners to publish a prospectus pursuant to Article 3 of the Prospectus Directive or supplement a prospectus pursuant to Article 16 of the Prospectus Directive, in each case, in relation to such offer. Neither the Electricité de France SA nor the bookrunners have authorised, nor do they authorise, the making of any offer of the notes in circumstances in which an obligation arises for the Electricité de France SA or any bookrunners to publish or supplement a prospectus for such offer.

Table of contents

� General presentation 4

� EDF Group: Financial highlights and credit profile 15

� French tariff equation 25

3

French tariff equation 25

� Nuclear provisions and dedicated assets 31

� Strategy and investments 35

� Transaction structure 43

EDF overview

� A worldwide leader in the power & renewable sector; #1 nuclear operator

� Recognized operational excellence and experience in its core businesses

� Low-carbon strategy driven by nuclear and renewable (100%-owned EDF Energies Nouvelles, leader in hydro-generation)

� Diversified and low cost generation mix; limited commodity risk exposure vs. peers

4

� Around 70% of EDF business is regulated (networks) or with high visibility (tariffs, PPA…)

� Supportive legal framework for nuclear energy in EDF key markets (France, UK)

� Strong French State support with c.84% shareholding and legal requirement to maintain at least a 70% ownership

� Reinforced financial solidity with the strongest balance sheet in the sector and a very strong liquidity position (A+ S&P / Aa3 - Moody’s / A+ Fitch)

EDF 2020: a 75% carbon-free electricity producerEDF 2020: a 75% carbon-free electricity producerA B

Thermal25%

Projections for 2020 installed capacity

EDF: a defensive business mix & shareholding

Renewables25%

~160 GWNuclear50%

o/w France 65 %

o/w International 35%

EDF: a 75% low carbon energy mixEDF: a 75% low carbon energy mix

Renewables3%

Gas (fossil-fired,CCGT and cogeneration)

8%

Coal18%

Nuclear55%

Hydro16%

A

135 GW

5

… and high visibility on many EDF’s activities… and high visibility on many EDF’s activities

Others33%

French Generation(Regulated or Price formula)40%

Renewables(PPAs)7%

Networks (Regulated tariffs)20%

% 2011 EBITDA

C

€14.8bn

EDF is a listed company with the Stateas major shareholderEDF is a listed company with the Stateas major shareholderD

Institutional and retail investors13.65%

French state84.44%

Treasury shares0.07%

EDF Employees1.84%

*by law, the French State must own at least 70% of EDF

Successful business streamlining since 2010

Addressing partnership issues to

Improving operating and financial performance

� Disposal of EDF’s stake in EnBW

� Preservation of Group’s interest in CENG, disposal of EXC shares

� Creating the ground for sustainable improved performance

� Replacement of large components in France

� Preparing for life extension of nuclear power plants in the UK(1)

(7-year extension already achieved)

� New investment methodology with stricter investment criteria

6

Addressing partnership issues to build an industrial group

Increasing visibility

� Preservation of Group’s interest in CENG, disposal of EXC shares

� 100% control of EDF Energies Nouvelles

� Control of Edison: 99.5% as of September 2012

� Delivering despite adverse environment

� 2010: EBITDA +5.2% - Net income (2)+11.3%

� 2011: EBITDA +6.6% - Net income (2)+13.4%

� 2012: Objectives reiterated (3)

� Agreement with French State on the repayment of the CSPE deficit

(1) An average of 7 years on AGR nuclear plants, compared with the expected shutdown date when British Energy was acquired in January 2009(2)Excluding non-recurring items(3) Group has found an agreement with the French State on the repayment of the CSPE deficit on 14 January 2013, but the discussions are still ongoing for it to have an impact on the Group net financial debt.

Agreement on the repayment of the CSPE historical d eficit

� Remuneration of the CSPE receivable until 2018

� Recognition by the French State of its obligation to compensate EDF for the CSPE deficit and related financing costs amounting to €4.9bn at year-end 2012

� Commitment on a repayment schedule clearing the CSPE receivable by 2018

� Interest payment on the CSPE receivable of 100 bps over the 5-year French State bond yields i.e. c.1.7% as of 14/01/2013

7

c.1.7% as of 14/01/2013

� Positive impact on earnings for FY 2012

� Recognition of past financing costs generating a financial income before tax of €0.6bn in 2012

� Further discussions to relief the Group net financial debt as part of balance sheet efforts

Significant balance sheet optimisation achieved ove r the past 3 years

� Longer debt maturity at a lower cost

� Lower average coupon: from 4.4% end of 2009 to 3.8% as of September 30, 2012

� Longer average maturity: from 7.4 years end of 2009 to 8.6 years as of September 30, 2012

8

� RTE included in the dedicated assets improving nuclear liabilities coverage without

earnings dilution

� Portfolio rationalisation while keeping a highly regulated profile

EDF committed to sustainable dividend policyEDF committed to sustainable dividend policy

EDF contemplates issuance of inaugural hybrid bond

� Hybrid issuance in EUR, GBP, USD

� Hybrid issuance to reinforce EDF capital structure and supporting the Group’s target of keeping the best rating in the industry

� Hybrid’s characteristics fit EDF’s balance sheet’s optimisation strategy

� 100% equity treatment under IFRS

9

� 100% equity treatment under IFRS

� 50% equity credit under rating agencies methodology

� Current market conditions are attractive for the issuance of such type of instrument

� Diversifying EDF’s investor base

Improving financial structureImproving financial structure

Hybrids bring flexibility over the investment cycle

� EDF Group bears financing for investments ensuring significant growth

� EDF’s non contributive capital employed stands at c. €11bn as of 30 June 2012

� Flamanville 3

� Dunkirk LNG terminal

10

� Renewable projects

� …

� Hybrid equity characteristics enable to smooth capital needs during the project inception phase

Hybrid is an efficient ALM tool aligned with EDF’s industrial strategy Hybrid is an efficient ALM tool aligned with EDF’s industrial strategy

Hybrid as a dynamic funding policy tool

Breakdown of bonds by currencyIn millions of euros before swaps (as of 5 September 2012)

4 000

5 000

6 000

7 000

� A total of €6 billion bonds issued since January 2012

� Bond redemption peak over 2013 and 2014

11

0

1 000

2 000

3 000

4 000

CHF EUR GBP USD JPY Other

Strengthening seniority of existing bond holdersStrengthening seniority of existing bond holders

Comparative debt ratings: EDF is leading its peersRatings

S&PRatings Moody’s Ratings Fitch

EDF A+ stable(1) Aa3 neg A+ stable

GDF Suez A stable A1 negative n/a

E.ON A - stable A3 stable A stable

EnelBBB+

negativeBaa2

negativeBBB+

neg. CW

Iberdrola BBB stableBaa1

negativeBBB+

negative

Scottish & Southern A - negative A3 stable A- stable

RWE BBB+ stable A3 negative A- stable

EndesaBBB+

Baa2 negativeBBB+

A3

A2

A1

Aa3EDF

GDF Suez

E.ON

Vattenfall

RWE

SSEMoo

dy’s

rat

ings

12

EndesaBBB+

negativeBaa2 negative

BBB+ neg. CW

Vattenfall A- stable A2 negative A- stable

Ratings S&P Ratings Moody’s Ratings Fitch

EDF short term A-1 P-1 F1

Source: Bloomberg, as of 14 January 2013

(1) Downgrade to A+ on 17 January 2012, following the downgrade of France

BBB+ A- A A+

E.ON

Iberdrola

RWE

S&P ratings

EnelBaa1

� Leading position as an integrated utility in France (Generation and Supply)� High share of domestic regulated earnings� Cash flow predictability and low exposure to volatile commodities and wholesale markets� Good liquidity management and capital market access

Commitment: best rating in the industryCommitment: best rating in the industry

FINANCIAL PERFORMANCE 2010 Indicative Terms All Tranches

Tranche EUR PerpNC7 EUR PerpNC12 GBP PerpNC13 USD PerpN C10

Issuer Electricité de France SA

RatingsIssuer senior ratings: Aa3 / A+ / A+

Instrument ratings: A3 / BBB+ / A- (expected)

Maturity Perpetual

First Call Date [Jan] 2020 [Jan] 2025 [Jan] 2026 [Jan] 2023

144A/Reg S

13

Reduction in S&P Equity Credit

At first call date

Interest Rate and Step-Up

Until 1st Call Date: fixed

Thereafter: resettable to mid-swaps + [x]% + step-up

� Interest reset periods equivalent to non-call periods (i.e. NC7 resets every 7 years)

� 25 bps at the later of 2023 and the first call date; additional 75 bps 20 years after the first call date

Optional Interest Deferral� Cumulative and compounding optional deferral

� Deferred interest repayable within 10 business days following certain distribution and other payments on equity or parity securities

Special Event Call OptionsTax deductibility / Accounting / Rating Agency / Minimal amount outstanding (all at 101% of par), Gross-Up (at par)

Ranking Subordinated, senior only to ordinary shares and actions de préférence

Next steps

…in a tougher environment…

What we have to achieve…

� Europe� Weaker power and gas demand across Europe

� Fiscal pressure

� Group� Review EDF cost and capex trajectory(1)

� France� Tariff equation in France

� ARENH formula

� ERDF

� International� Right decision on New Nuclear Build in the UK

14

…in a tougher environment…

…to deliver sustainable growth.

� Fiscal pressure

� Italy� Edison’s renegotiations on gas supply contracts

� 2012� Average annual growth of EBITDA(2) : 4%-6%

� Growth of net income excluding non-recurring items: 5%-10%

� Net financial debt/EBITDA (3) < 2.5x

� Dividend at least stable

� Beyond 2012� Assumption : stable 2013 EBITDA, growth resuming in 2014

� Target of dividend at least stable over the period(1) Excluding capex and opex related to nuclear safety(2) CAGR at constant scope and exchange rates(3) Group has found an agreement with the French State on the repayment of the CSPE deficit on 14 January 2013, but the discussions are still ongoing for it to have an impact on

the Group net financial debt.

Investor Presentation – European Deal RoadshowEDF Group: Financial highlights and credit profile

EDF : A leading international utility

EuropeEurope Other continentsOther continents

Luminus

~13%(1)

NORTH AMERICAEDF Energies Nouvelles

EDF Trading

628.2 TWhGlobal generation~80% nuclear~8% fossil fired~7% renewables(2)

~5% gas

37.7 million

628.2 TWhGlobal generation~80% nuclear~8% fossil fired~7% renewables(2)

~5% gas

37.7 million

EDF Group: Financial highlights and credit profile

16 (1) In % of Group EBITDA : Edison is consolidated at 48.96% in 2011

Other businessesOther businesses

~61.5%(1)

~4%(1)

37.7 millioncustomers

€14.8bnEBITDA (2011)

37.7 millioncustomers

€14.8bnEBITDA (2011)

(2)Including hydropower

Cash flow statements

Consolidated accounts – First half 2012

In millions of euros H1 2011 restated H1 2012

EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) 8,675 9,075Cancellation of non-cash items included in EBITDA (1,411) (783)Net financial expenses disbursed (1,007) (814)Income taxes paid (582) (892)Other elements 290 -Funds From Operations (FFO) 5,965 6,586Change in net Working Capital Requirements (855) (2,458)Gross CAPEX (4,883) (6,233)


17

Gross CAPEX (4,883) (6,233)Net proceeds from sale of assets 78 349Free Cash Flow 305 (1,756)Dedicated assets (210) (366)Other net financial investments 3,610 (583)Dividends paid in cash (1,239) (1,187)Other changes (225) 164Monetary change in net financial debt 2,241 (3,728)Effects of change in scope 2,582 (2,292)Effects of currency fluctuations 413 (452)Other non-monetary changes (53) 41Change in net financial debt 5,183 (6,431)Net Financial Debt – Opening balance 34,389 33,285Net Financial Debt – Closing balance 29,206 39,716

WCR increase during H1 2012: + € 2.5 billionIn millions of euros

157

687

Decrease in payables*

Increase in receivables*


18•Excluding Optimisation and Trading activities•** Expenses –Collected CSPE

A typical increase in WCR should be corrected before the end of 2012A typical increase in WCR should be corrected before the end of 2012

1,304

310

Increase in CSPE deficit**

Others

EDF Group simplified balance sheets

Consolidated accounts – First half 2012

In millions of euros31/12/2011

restated 30/06/2012

Fixed assets 128,318 136,923

O/w Goodwill 11,648 10,655

Inventories and trade receivables

34,489 34,416

Other assets 52,287 55,231

31/12/2011 restated 30/06/2012

Shareholders’ equity (Group Share) 28,483 29,147

Non-controlling interests 4,189 5,756

Specific concession liabilities 41,769 42,074

Provisions


19 (1) Including companies held for sale and loans to RTE

Other assets 52,287 55,231

Cash and equivalents and other liquid assets(1)

16,184 19,185

Assets held for sale (excluding cash and liquid assets)

684 1

Total Assets 231,962 245,756

Provisions 58,018 60,114

Financial liabilities(1) 49,469 58,901

Other liabilities 49,897 49,764

Liabilities linked to assets held for sale (excluding financial liabilities)

137 -

Total Liabilities 231,962 245,756

Change in net financial debt in H1 2012 marked by t he consolidation of Edison

Dedicated assets

+0.4Dividends

paid in cash

+1.2+1.8

Free CashFlow after

Edison

+2.4Acquisitions/

disposals

+0.6

CSPE(1)

Main developments

Other

-0.5

Forex

+0.5

in billions of euros

4.5


20 (1) Receivables

December 2011

33.3

June 2012

39.7

Flow afterCapex

Main developments under way:Major projects excluding renewableenergies: €9.1bnRenewableenergies: €2.1bn

11.2

Net financial debt calculation

Financing and cash management

In millions of euros 30/06/2011 31/12/2011 30/06/2012

Financial debt (current and non-current) 46,803 50,034 60,050

Derivatives used to hedge debt 138 (834) (1,149)

Net financial debt of companies held for sales 46,941 49,200 58,901


21 *Including loan to RTE

Cash and cash equivalents (5,693) (5,743) (4,920)

Liquid financial assets* (excluding derivatives used to hedge operations)

(12,042) (10,424) (14,265)

Net financial debt related to non- current assets classified as held for sale

- 252 -

Net financial debt 29,206 33,285 39,716

Cash Flow exposure with debt by currency(1)Cash Flow exposure with debt by currency(1)

An Active Asset/Liability Management Policy

Asset-Liability duration(1)Asset-Liability duration(1)

Other(2)

4%� A targeted adequacy between cash flows and

debt, as well as an objective to increase the average debt maturity

As of 30 June 2012


22(1) Group financial debt after swaps as of 30 June 20122) Mainly CHF and JPY

EUR 60%

GBP 25%

USD 11%

� Gross financial debt : €60.0bn

� Net financial debt : €39.7bn

� Average coupon : 4.1%

� Average maturity : 8.6 years

� Fixed rate / Floating rate : 79% / 21 %

Breakdown of the liquidity position as of 30 June 2012Breakdown of the liquidity position as of 30 June 2012� Liquidity position : €27.1bn

� Liquidity position excluding credit lines of €18.0bn , o/w (as of 31 December 2011)

� Available syndicated and bilateral credit facilities of €9.1bn (as of 30 June 2012)

A strong liquidity position

Cash & cashequivalents

27.4%

As of 30 June 2012


4.9

In billion of euros

23

� Financial debt 1 year : €14.7bn

� Net liquidity : €12.5bn 13.1Liquid assets

72.6%

4.9

Major existing bond issues

Financing and cash managementEDF Group: Financial highlights and credit profile

Bond Date Maturity Currency Nominal Bond Date Maturity Curr ency NominalE11 4.125 03/27 mar-12 mar-27 EUR 1 000 000 000 D USD4.60 01/20 jan.-10 jan.-20 USD 1 400 000 000 E10 3.875 01/22 jan.-12 jav.-22 EUR 2 000 000 000 D USD5.60 01/40 jan.-10 jan.- 40 USD 850 000 000 E06 4.00 11/25 nov.-10 nov.-25 EUR 750 000 000 D USD5.50 01/14 jan.-09 jan.-14 USD 1 250 000 000 E07 4.50 11/40 nov.-10 nov.-40 EUR 750 000 000 D USD6.50 01/19 jan.-09 jan.-19 USD 2 000 000 000 E05 4.625 04/30 apr.-10 apr.-30 EUR 1 461 300 000 D USD6.95 01/39 jan.-09 jan.-39 USD 1 750 000 000 E04 4.625 09/24 sep.-09 sep.-24 EUR 2 492 000 000 E01 4.50 07/14 (retail) jul.-09 jul.-14 EUR 3 268 926 000 D CHF2.25 09/17 mar-10 sep.-17 CHF 400 000 000 E80 5.125 01/15 jan.-09 jan.-15 EUR 1 382 850 000 D CHF4.00 0317 mar-09 mar-17 CHF 300 000 000 E81 6.25 01/21 jan.-09 jan.-21 EUR 2 000 000 000 D3CHF3.375 1213 dec.-08 dec.-13 CHF 350 000 000 E78 5.625 01/13 nov.-08 jan.-13 EUR 1 395 450 000 D2CHF3.375 1213 nov.-08 dec.-13 CHF 100 000 000

24

E78 5.625 01/13 nov.-08 jan.-13 EUR 1 395 450 000 D2CHF3.375 1213 nov.-08 dec.-13 CHF 100 000 000 E74 5.375 05/20 may-08 may-20 EUR 1 200 000 000 D1CHF3.375 1213 nov.-08 dec.-13 CHF 900 000 000 E73 BIS 5 02/18 jan.-08 feb.-18 EUR 1 500 000 000 D CHF3.00 0113 jun-06 jan.-13 CHF 300 000 000 E59 4.625 11/13 oct.-03 nov.-13 EUR 500 000 000 E56 5.625 02/33 feb.-03 feb.-33 EUR 850 000 000 D JPY 1.63 1014 jul.-09 oct.-14 JPY 45 000 000 000 E44 5.5 10/16 oct.-01 oct.-16 EUR 800 000 000 D JPY 2.0 07/16 jul.-09 jul.-16 JPY 44 100 000 000

E77 JPYL3 07/13 jul-08 jul.-13 JPY 40 000 000 000 E12 5.50 03/37 mar.-12 mar.-37 GBP 500 000 000 E08 5.50 10/41 jan.-12 oct.-41 GBP 250 000 000 E08 5.50 10/41 oct.-11 oct.-41 GBP 1 250 000 000 E06 5.125 09/50 sep.-10 sep.-50 GBP 985 000 000 E82 6.125 06/34 may-09 jun.-34 GBP 1 500 000 000 E79 6.875 12/22 dec.-08 dec.-22 GBP 400 000 000 E76 6.250 05/28 may-08 may-28 GBP 500 000 000 E41 5.875 07/31 jul.-01 jul.-31 GBP 650 000 000

Investor Presentation – European Deal RoadshowFrench tariff equation

Tariff equation

France - Supply

13.5

32.0Other taxes

CSPE

Average bill breakdown including VATBlue residential tariff (1 January 2013)

€142.5/MWh

French tariff equation

26

53.0

44.0

13.5CSPE

TURPE

Generation and commercial costs

French tariff increases in 2012� Tariff increases are made once a year:

In 2012, the following increases went into effect on 23 July� 2.0% for households and companies (blue tariff)� 2.0% for other professional clients (yellow and green tariffs)� These hikes include delivery increases (TURPE) effective 1 August 2012: 1.80% for distribution and 2.79% for

transmission+2.0%

+€1.9/MWh+2.0%

+€1.7/MWh

€86.1/MWh€84.4/MWh

+2.0%+€1.3/MWh


27

2011 2012

Higher share of energy and supply component on residential customers and small businessesHigher share of energy and supply component on residential customers and small businesses

2011 20122011 2012

TURPE

Energy + supply

Blue tariff

+€0.8/MWh

+€1.1/MWh

Yellow tariff

Green tariff

+€0.6/MWh +€0.3/MWh

+€1.1/MWh +€0.9/MWh

€95.5/MWh €97.4/MWh €86.1/MWh€84.4/MWh €64.6/MWh€63.3/MWh

ARENH volumes allocated to competitors


2011 ARENH (€40/MWh)


In TWh

30.530.8 30.2


28

� Maximum total volume of EDF’s sales to competing suppliers: 100 TWh (1)

� Volumes allocated equivalent to 85% of supplies� Option for the same volumes for the first six months of 2013

(1) Determined by law

H2 volumes supplied

H2 volumes supplied

H1 volumes supplied

CSPE: Evolution of the contribution� CSPE (Contribution to electricity public service):

� Charged to end users via an "other services" line on their electricity bill

� Collected by network operators and electricity suppliers

� Periodically amended: "Barring a decree setting the amount of the contribution due for a given year prior to 31 December of the previous year, the amount proposed by the Energy Regulation Commission (CRE) French regulator, in accordance with the preceding paragraph, enters into force on 1 January, within the limit however of an increase of €0.003/KWh with respect to the amount applied before this date".

€13.5/MWh€13.5/MWh


29

1 January

20112010 2012

1 August 1 July

2013

1 January

€4.5/MWh€4.5/MWh€7.5/MWh€7.5/MWh

€9/MWh€9/MWh€10.5/MWh€10.5/MWh

€13.5/MWh€13.5/MWh

Significant progress over the past 2 years

� 2010: Ceiling removed on the CSPE and a decree sets an annual increase of €3/MWh

� 2011-2012: Sharp increase of the deficit linked to wind and solar power output rise

CSPE deficit in billion euros and CSPE in €/MWhCSPE deficit in billion euros and CSPE in €/MWh

4,5 4,5

8,1*9,8*

13,5

5

7

9

11


30

� 2012: French Energy Regulator (CRE) deems as well-founded EDF’s requests to be compensated for the financial costs related to the CSPE deficit

� 14January 2013: EDF and the French State reach an agreement allowing the repayment of €4.9bn CSPE receivable 2009 2010 2011 2012 2013

- 5

- 3

- 1

1

3

CSPE Charges CSPE Revenue CSPE mechanism deficit CSPE in €/MWh

* Average CSPE over the period: €7.5/MWh on January 2011 rising to€9/MWh on 1 August 2011 and to €10.5/MWh on 1 July 2012.

Investor Presentation – European Deal RoadshowNuclear provisions and dedicated assets

Group nuclear provisions: €38.6 billionNuclear provisions and dedicated assets

In millions of euros

(669) +213 + 779 (753)

EDF Group scopeChanges over period

Other changesTranslation Reductions

+ 312

32

38,673 38,555

30/06/2012

(456)

31/12/2011

Translation adjustmentsDiscountingAllowancesReductions

Dedicated assets: €16.5bn, or 88% coverage of liabi lities

Cost of dismantling "first generation" power plants

Cost of dismantling pressurized

1.71.7

9.99.9

0.40.4

€16.466m: Dedicated assets at 30 June 2012

RTE

Provisions at 30 June 2012: €18.713m

2.4

Last core: management of spent fuel

Nuclear provisions and dedicated assets

33

Cost of dismantling pressurizedwater reactors (PWR)

LT management of radioactive waste

9.99.9

6.76.7

14.1 Other dedicated assets

The coverage rate is 88%, the Law requires a coverage rate of at least 75% and sets an objective of 100% from June 2016The coverage rate is 88%, the Law requires a coverage rate of at least 75% and sets an objective of 100% from June 2016

EDF’s dedicated assets

� Cover decommissioning costs of nuclear plants and storage and long-term management of radioactive waste

� Date of incorporation of the portfolio extended in June 2016

50% of RTE shares

Shares and equity funds

16,466

In millions of euros

Portfolio composition at 30/06/2012

Nuclear provisions and dedicated assets

34

� Good half-year performance

� RTE shares affected to the portfolio have fully played their role as a damper on overall performance

(1) Half-year performance, including RTE and before tax. Excluding RTE, the portfolio performance is 5.01%, compared with a benchmark of 5.44%

Shares and bond funds

H1 2012

Performance(1) 5.10%

Investor Presentation – European Deal RoadshowStrategy & investments

New improvements:

� Increasing protection of sites beyond their design specifications (earthquake, floods)

A 10-year investment programme including a portion planned prior to FukushimaSafety improvements already accounted for in the ex tension of the operational lifespan (beyond 40 years) of plants will be pushed forward by 5-10 yea rs on average (depending on the technical requirements) including:

� Additional resources for electricity and water supplies

� Emergency power removal systems

Strategy & investments

36

design specifications (earthquake, floods)

� “Core" materials that can withstand the severity of this type of earthquake or flood

� Additional crisis resources in the event all reactors at one site are affected:

� Local resources (crisis centre)

� National resources (Rapid Response Nuclear Task Force, or FARN)

(1) Estimate in constant euros

Roll-out schedule whose effectiveness depends on th e capacities of the industrial sector

� Emergency power removal systems in the event of multiple failures

� Improving filtration of radioactive materials in the event of a serious incident

NewAlreadyplanned

A total of approx. €10bn(1)A total of approx. €10bn(1)

RTE Reference scenario of the French generation mix f or 2030 (report of 22 July 2011)

Stability of nuclear and hydro capacities

Strong increase in photovoltaic and wind capacities

Reduction in coal and oilcapacities

165.4 GW

Net capacity in GW Mix in %

65 25 4 6 7 32 18 72030

39,3%30,2%

8,7%


37

124.3GW

63 25 14 4 8 6 1 32011

Nuclear Hydro Coal/OilCCGT Decentralized thermal energy WindPhotovoltaic Other

End 2010 50,8%

20,3%

14,4%

5,4%

9,2%

Nuclear HydroConventional thermal energy RenewablesOther

15,2%6,5%

An update on the Flamanville 3 EPR project

� Significant milestones have been reached (as of November 12)

� More than 93% of civil engineering has been completed

� 36 % of electromechanical assemblies in place

� Intake canal of the pumping station came on stream

� Full cost for the construction has increased by €2bn to €8bn(1)


38

� Full cost for the construction has increased by €2bn to €8bn(1)

� First 3rd generation nuclear power station to be build in France

� Development of the boiler design, additional engineering studies, integration of new regulatory requirements

� Technical contingencies (replacement of 45 consoles)

� Production of the first kWs still schedule for 2016

(1) On a constant currency basis

China (TNPJVC)

Taishan 1 & 2 (EDF 30%)

� 2 EPRs under construction

� Construction in progress at end-September 2012:


39

� Installation of the 2nd reactor building in September

� End of the major civil engineering works on the reactor buildings

� Steam generators to be positioned in reactor 1

New Nuclear project in the UKImportant milestones reached:� July 2011: "Nuclear Site License" for Hinkley Point deemed

admissible by the Nuclear Safety Authority

� November 2011: Building permits declared admissibleby the Infrastructure Planning Commission (IPC)

� December 2011: Agreement through the Safety Authorityon design in the process of certification of the EPR design

� February 2012: First agreements with suppliers:


40

� February 2012: First agreements with suppliers:Kier BAM for the work of site preparation, Areva for the supply of boilers and systems, instrumentation and control systems Bridgewater College for training

� May 2012: presentation by the British government's bill on energy including establishing "contracts for difference"(1)

� June 2012: Selection of the joint venture Bouygues TP / Laing O'Rourke as "preferred bidder" for the civil works of HinkleyPoint

� December 2012: Planning Inspectorate makes recommendations on EDF Energy’s new nuclear project

� December 2012: Government meets commitment for Energy’s Bill second reading before Christmas

(1) Contractual mechanism to encourage investment in low-CO2 energy

EDF EN – Installed capacity and capacity under construction by type, at end -June 2012

Renewable energies

Gross Netat 31/12/2011 at 30/06/2012 at 31/12/2011 at 30/06/2012

Wind 3,521.5 3,520.7 2,789.5 2,804.9

Solar 413.5 492.2 340.6 422.7

Hydro 84.2 84.2 77.1 81.4

Biogas 60.3 64.2 59.5 62.4

Biomass 26.0 26.0 18.2 18.2

in MW

41

Biomass 26.0 26.0 18.2 18.2

Cogeneration 19.2 19.2 6.7 6.7

Total installed capacity 4,124.7 4,206.4 3,291.6 3,396.2

Wind under construction 1,490.1 2,199.2 892.2 1,240.9

Solar under construction 287.1 203.2 153.5 200.8

Other under construction 4.3 46.4 3.2 45.1

Total capacity under construction 1,781.5 2,448.9 1,048.9 1,486.8

Total 5,906.2 6,655.3 4,340.5 4,883.0

Gas contracts

� Gas contract renegotiations (Qatar, Libya, Algeria) � Russian contract renegotiated in 2011

� Renegotiations on Libyan and Qatari contracts should materialize by H2 2012 and in 2013 for the contract with Algeria

� Total volume of Long term gas contracts 14.4 bcm/year

EdisonEdison

42

Edison + EDF 2011 gas uses (bcm)

8 8

7.615.2

Before transaction After transaction

Edison

EDF Group (without Edison)

534,000 gas customers in Italy at end-June 2012

534,000 gas customers in Italy at end-June 2012

Investor Presentation – European Deal RoadshowTransaction structure

FINANCIAL PERFORMANCE 2010

Indicative Terms All TranchesTranche EUR PerpNC7 EUR PerpNC12 GBP PerpNC13 USD PerpNC10

Issuer Call Options[Jan] 2020, and every interest payment date thereafter

[Jan] 2025, and every interest payment date thereafter



Reduction in S&P Equity Credit [Jan] 2020 [Jan] 2025 [Jan] 2026 [Jan] 2023

Interest Rate

(Initial interest rate, reset, and step -ups)

Until [Jan] 2020 : [ ]% fixed, payable annually in arrear (equivalent to € 7-year mid-swaps + [x]%)

Thereafter : reset every 7 years

Until [Jan] 2025 : [ ]% fixed, payable annually in arrear (equivalent to €12-year mid-swaps + [x]%)

Thereafter: reset every 12 years to a new fixed rate of € 12-year mid-

Until [Jan] 2026 : [ ]% fixed, payable semi-annually in arrear (equivalent to £ 13-year mid-swaps + [x]%)

Thereafter : reset every 13 years to a new fixed rate of £ 13-year mid-

Until [Jan] 2023 : [ ]% fixed, payable semi-annually in arrear (equivalent to US$ 10-year mid-swaps + [x]%)

Thereafter : reset every 10 years to

144A/Reg S

Transaction structure

44

� Issuer: Electricité de France SA

� Ratings: Issuer senior ratings: Aa3 / A+ / A+. Instrument ratings: A3 / BBB+ / A- (expected)

� Maturity: Perpetual

� Optional Interest Deferral: Cumulative and compounding optional deferral; deferred interest repayable within 10 business days following certain distribution and other payments on

equity or parity securities (“pusher on deferred interest”)

� Special Event Call Options: Tax deductibility / Accounting / Rating Agency / Minimal amount outstanding (all at 101% of par), Gross-Up (at par)

� Ranking: Subordinated, senior only to ordinary shares and actions de préférence

� Exchange / Variation: Yes, but subject to the terms of the exchange or variation not being prejudicial to the interests of the noteholders

step -ups) Thereafter : reset every 7 years to a new fixed rate of € 7-year mid-swaps + [x]% + step-up

a new fixed rate of € 12-year mid-swaps + [x]% + step-up

a new fixed rate of £ 13-year mid-swaps + [x]% + step-up

Thereafter : reset every 10 years to a new fixed rate of US$ 10-year mid-swaps + [x]% + step-up

Step-up25 bps in 2023 and additional 75 bps in year 2040

25 bps in 2025 and additional 75 bps in year 2045




EDF Dividend History

EDF exercises its option to defer the coupon payment (cumulative and compounding)

EDF does any of the following:

EDF: Consistent Payment of Common Dividends

EDF must settle deferred interest (and additional interest) on hybrid in cash

EDF Hybrid: Any Deferred Interest must be Settled Upon Common Dividend Payment (and other events)

0.79 €

1.16 €

1.28 € 1.28 €

1.15 € 1.15 € 1.15 €

0.60 €

0.80 €

1.00 €

1.20 €

1.40 €


45

EDF does any of the following:– Redemption of the Notes– Declaration or discretionanry

payment on any equity securities (e.g. dividends) orany parity securities

– Acquisition, redemption or purchase of equity or parity securities

– Liquidation or sale of the whole business

• The company has the option to defer coupon payments at any interest payment date.

• However, once shareholders resolve to pay a dividend at the Annual Meeting, all deferred coupon payments must be settled in cash.

• A discretionary payment on parity securities or a redemption or repurchase of junior or parity securities would also trigger the settlement of deferred coupon payments

0.00 €

0.20 €

0.40 €

2005 2006 2007 2008 2009 2010 2011

Dividend per share (€)

• The dividend distribution policy is determined by EDF’s Board of Directors, and typically comprises an interim dividend paid in December of the same fiscal year with an additional dividend paid in early June of the following year

• For fiscal year 2012 (paid in 2013) the dividend will at least be stable with the one paid in 2012 for year 2011 (€1.15 per share)


Recent Corporate Utility HybridsIssuer EDF Indicative Terms Veolia Environnement SSE BG Energy RWE Alliander Suez Environnement

Issue Date [Jan] 2013 Jan 2013 Sep 2012 Jun 2012 Mar 2012 Nov-2010 Sept 2010

Currency / Size • € / £ benchmarks• € 1bn• £ 400m

• € 750m• US$ 700m

• € 500m• £ 600m• US$ 500m

• £750m• US$ 1,000m (incl. US$500m tap

in Jun 2012)• €500m • €750m

Issuer Rating* Aa3 / A+ / A+ Baa1 / BBB+ A3 / A- / A- A2 / A / A A3 / BBB+ / A- Aa3 / A+ A3

Instrument Rat.* [A3 / BBB+ / A-] (expected) Baa3 / BBB- Baa2 / BBB Baa1 / BBB+ / BBB+ Baa2 / BBB- / BBB A3 / A- Baa2

Maturity Date Perpetual Perpetual Perpetual 2072 £: Perpetual / US$: 2072 Perpetual Perpetual

Issuer Call Options

• €:NC7: 2020, and on any IPD thereafter• €NC12: 2025, and on any IPD thereafter• £: 2026, any IPD thereafter

2018 and every 5 yrs thereafter2017, 2022 and on any reset date thereafter

2017, 2022 and on any IPD thereafter

• £: 2019, 2024 and on any IPD thereafter

• US$: 2017, 2022 and on any IPD thereafter

2015, 2020 and any IPD thereafter

2015, 2020 and on any IPD thereafter

Special Event Call Options

• Tax / Accounting / Rating Agency / Minimal amount outstanding, at 101

• Gross-Up at par

• Tax / Accounting / Rating Agency / Minimal amount outstanding, at 101 to first step-up date, at par thereafter

• Gross-Up / Minimal amount outstanding, at par

• Tax / Accounting / Rating Agency, at

• Gross-Up / Minimal amount outstanding, at par

• Tax / Rating Agency, at 101 to first step date,

• Gross-Up at par• Tax / Accounting – make-whole

to first step date• Rating Agency at 101• Minimal amount outstanding at

• Gross-Up / Tax / Accounting / Minimal amount outstanding at make-whole until step-up date

• Rating Agency at 101

• Gross-Up at par• Tax / Accounting /

Rating Agency / Minimal amount outstanding at 101 until step-up date


46

thereafter• Gross-Up at par

Rating Agency, at 101

101 to first step date, par thereafter

• Minimal amount outstanding at 101 to first step date

• Rating Agency at 101 until step-up date

101 until step-up date

Interest Rate(Initial interest rate, reset, and step-ups)

• €NC7 [ ] % / €NC12 [ ]% / £NC13: [ ]%• Yr 7/12/13+: Reset every 7/12/13 years• 25 bps step-up at the first call date or (if

later) year 10 & additional 75bps 20 years after the first call date

• 4.45% (€) / 4.85% (£)• Yr 5+: Reset every 5 yrs• 25bps step-up in yr 10 &

additional 75bps in yr 25

• 5.625% (€,US$)• Yr5+: Reset every

5yrs• 25bps step-up in yr

10 & additional 75bps in yr 25

• 6.500% (€, £, US$)• Yr5.5: Reset at 5-yr ms• Yr10.5+: Floating rate

6m/ 12m (US$/ € & £)• 25bps step-up in yr

10.5 & additional 75bps in yr 25.5

• 7.000% (US$, £)• £:

– Yr7+: Reset every 5 yrs– 25bps step-up in yr 12 &

additional 75bps in yr 27• US$:

– Yr5.5+: Reset every 5yrs– 25bps step-up in yr 10.5 &

additional 75bps in yr 25.5

• 4.875% • Yr 5: Reset at 5-yr ms• Yr10: Reset at 12mE;• 100bps step-up in yr 10

• 4.82%• Yr 5: Reset at 5-yr ms• Yr 10: Reset at 3mE• 100bps step-up in yr 10

Optional Interest Deferral

Cumulative and compoundingCumulative and compounding

Cumulative and compounding

Cumulative and compounding

Cumulative (not compounding) Cumulative and compoundingCumulative and compounding

Pusher / Stopper Pusher on deferred interest Pusher on deferred interestPusher on deferred interest

Pusher on deferred interest Pusher on deferred interestPusher on interest, 6-m look-back

Pusher on interest, 6-m look-back

RankingSubordinated, senior only to ordinary shares and actions de préférence

Subordinated, senior only to ordinary shares and actions de préférence

Subordinated, senior only to common equity


Subordinated, senior only to common equity and German preference shares


Subordinated, senior only to common equity, actions de preference and more junior subordinated instruments

Listing Euronext Paris Euronext Paris London London Luxembourg Euronext Amsterdam Euronext Paris

Reduction in S&P Equity Credit

After year 7,12,13 After year 5 After year 5 After year 5.5• £: After year 7• US$: After year 5.5

NA NA

*A security rating is not a recommendation to buy, sell or hold securities and should be evaluated independently of any other rating. The rating is subject to revision or withdrawal at any time by the assigning organization.

Investor presentation – European deal roadshow

investor presentation – european deal roadshow · 2018. 2. 27. · investor presentation –...

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