Présentation PowerPoint - EDF · ANNUAL RESULTS 2016 3 12.7 11.7 12.4 11.8 2015 2016 2015 2016 (1) Net investments excluding Linky, new developments and assets disposals (2) Linky

ANNUAL RESULTS 2016 2

22.1

21.4

2015 2016

(1) At constant scope, exchange and hypothesis of discount rates. Excluding change in operating expenses of service activities

(2) At 2016 scope and exchange rates. At constant pensions discount rate. Excluding change in operating expenses of service activities

In €bn

22,1

21,4

22,1

Reduction in OPEX: ~€0.3bn(2) from 2015 to 2016

TARGETS

Reduction in OPEX(1):

• €0.7bn in 2018 vs. 2015

• ≥ €1bn in 2019 vs. 2015

CONTINUED OPEX REDUCTIONS


12.711.7

12.411.8

2015 2016 2015 2016

(1) Net investments excluding Linky, new developments and assets disposals

(2) Linky is a project led by Enedis, independant subsidiary of EDF under the provisions of the French energy code

TOTAL INVESTMENTS,

NET OF DISPOSALS

NET INVESTMENTS EXCLUDING LINKY(2),

NEW DEVELOPMENTS AND DISPOSALS

NET INVESTMENTS UNDER CONTROL TARGET

~€10.5bn(1) in 2018

In €bn


Sale(1) of a 49.9% stake of RTE signed on 14 December 2016 with Caisse des Dépôts and CNP Assurances. Finalisation expected in H1 2017

Finalisation on 29 September 2016 of the sale to CGN of a 33.5% stake of NNB Holding Company (HPC) Limited, which owns 100% of NNB Generation Company HPC Limited, the company holding the HPC nuclear site license and responsible for construction and operation of new nuclear reactors

Sale of EDF Trading’s coal and freight activities signed with JERA Trading on 21 December 2016. Finalisation expected in H1 2017

Finalisation on 31 January 2017 of the disposal of the whole of EDF stake in EDF DÉMASZ to ENKSZ, a national public service company

Finalisation of the disposal of a portfolio of c.130 real estate and business assets to Tikehau IM

(1) Subject to approval from the relevant merger control authorities

(2) Impact on net financial debt

RAPID PROGRESS OF DISPOSAL PLAN TARGETAt least €10bn of asset disposals

between 2015 and 2020

Disposals signed or finalised since 1 January 2015: ~€6.7bn(2)


22.1

21.4

2015 2016


In €bn

21,4

Reduction in OPEX: ~€0.3bn(1) from 2015 to 2016

Reductions delivered in

particular in France, UK and

Italy

Cost-base adjustment in

support and commercial

functions, cost optimisation in

the French thermal generation

fleet, impact of performance

plans

OPEX CUT


In €m 2015 2016 ∆ ∆%

France – Generation and supply activities 5,660 5,692 32 +0.6

France – Regulated activities 3,367 3,301 (66) -2.0

United Kingdom 1,111 806 (305) -27.5

Italy 585 458 (127) -21.7

Other international 922 607 (315) -34.2

Other activities 773 952 179 +23.2

Net investments excluding Linky, new

developments and asset disposals12,418 11,816 (602) -4.8

Linky(1) 119 318 199 +167.2

New developments(2) 916 668 (248) -27.1

Asset disposals (781) (1,139) (358) +45.8

NET INVESTMENTS 12,672 11,663 (1,009) -8.0


(2) New developments: in particular UK NNB, EPR New Models and offshore wind

€11.7bn

Regulated, Linky(1), NNB, net renewables

39%

Unregulated

61%

NET INVESTMENTS UNDER CONTROL

2018 TARGET

~€10.5bn

Net investments


PROGRESS OF WCR(1) OPTIMISATION PLANS

RECEIVABLES: ~€270m

Optimisation of the billing and collection processes

INVENTORIES: ~€400m

Streamlining of coal inventories and spareparts management

Optimisation of certificates inventories (energy saving certificates and emissionsallowances)

GAINS ACHIEVED IN 2016CONTRIBUTION OF ALL GROUP ENTITIES

(2015 & 2016)

€1.4bn

France

42%

Other activities

24%

International

34%

€1.4bn achieved since plans kick off

(1) Working Capital Requirement

TARGET€1.8bn contribution over

2015-2018


In €m 2015 2016 ∆% ∆% Org.(1)

Sales 75,006 71,203 -5.1 -3.2

EBITDA 17,601 16,414 -6.7 -4.8

Net income excluding non-recurring items 4,822 4,085 -15.3

Net income – Group share 1,187 2,851 x 2.4

31/12/2015 31/12/2016

Net financial debt In €bn 37.4 37.4

Net financial debt/EBITDA ratio 2.1 2.3

(1) Organic change at constant scope and exchange rates

2016 KEY FIGURES


+0.95 -1.09

-1.20

-0.46 +0.28+0.83

2015 2016

United Kingdom

Non-recurring2016 items France -

Purchases/sales on markets(1) France –

Downstreammarket

conditions(1)

Other

France –Generation(1)

Opex(2)

In €bn

-0.50

(1) Estimated figures


17.6016.41

GROUP EBITDA

Mainly 2014 tariffadjustment

Mainly France: regulated activitiesand weather impact



(2) Regulated activities: Enedis, Électricité de Strasbourg and islands’ activities

(3) Other activities including EDF EN, Dalkia and EDF Trading

France – Generationand supply activities38%

UK10%

In €m 2015 2016 ∆ org.(1) ∆ % org.(1)

France – Generation and

supply activities6,936 6,156 (780) -11.2

France – Regulated

activities(2) 4,719 5,102 383 +8.1

United Kingdom 2,242 1,713 (276) -12.3

Italy 1,345 641 (681) -50.6

Other international 609 711 129 +21.2

Other activities(3) 1,750 2,091 385 +22.0

Total Groupe 17,601 16,414 (840) -4.8France – Regulatedactivities(2)

31%

OtherInternational

4%

Italy4%

Other6%

16,4 Mds€

Dalkia2%

EDF EN 5%

EBITDA: PERFORMANCE PLAN PARTLY MITIGATING THE REDUCTION IN NUCLEAR OUTPUT AND THE CHALLENGING MARKET CONDITIONS


-1.09+0.86 +0.20 +0.12

-1.20

+0.09

-0.50

+0.74

2015 2016

26 %

51 %

33 %32 %

In €bn




6.94

6.162014 tariffadjustment

Weather(+5.5TWh)

& leap year(3)

Tariffs

Generation(3)

Purchases/ sales on

markets(3)

Downstreammarket

conditions(3)

Opex(2) Other

Organic change: -11.2%(1)

EBITDA FRANCE –GENERATION AND SUPPLY ACTIVITIES

Mainly end of Green and Yellow tariffs, sharpcompetition and price effecton new commercial offers

O/w nuclear generation:

-€1.27m (-32.8TWh)


FRANCE NUCLEAR OUTPUT: SIGNIFICANT IMPACT OF THE OUTAGESFOR ADDITIONNAL CONTROLS

118.2 116.1

210.4205.2

306.3287.1

416.8

384.02016 cumulative output

2015 cumulative output

March June Sept. Dec.

In TWh

-2.5%

-6.3%

-1.8%

-7.9%


2016 cumulative output(1)

2015 cumulative output(1)

March June Sept. Dec.

+9.0%

31.4

34.2

24.025.5

38.9(2)

12.4 12.3

(1) Hydropower excluding French islands electrical activities, before deduction of pumped volumes

(2) Output after deduction of pumped volumes: 32.1TWh in 2015 and 35.8TWh in 2016

+8.9%

+6.3%

-0.8%

42.4(2)

20%

60%

100%

140%

180%

2015

2016

Normal hydro productibility levels

Seasonal mins. and maxs. between 2006and 2016

Dec.Sept.JuneMarch

In TWh

FRANCE HYDRO OUTPUT:BETTER HYDRO CONDITIONS COMPARED TO 2015


+0.12+0.14

+0.12

2015 2016

Organic change: +8.1%(1)

32 %

4.72

5.10

Weather and leap year(2)

Marketconditions(2)

Other(2)

EBITDA FRANCE – REGULATED ACTIVITIES

In particular decrease in purchase cost of network losses

In €bn




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)

In €m 2015 2016 ∆% ∆% Org.(1)

Sales(2) 1,116 1,169 +4.8 +0.3

EBITDA 818 861 +5.3 +6.1


(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

EDF ÉNERGIES NOUVELLES: SUCCESS OF THE DEVELOPMENT MODEL BASED ON ASSETS ROTATION, CONTINUED GROWTH IN RENEWABLE POWER OUTPUT


Higher nuclear output at 65.1TWh (+4.5TWh vs. 2015) due to excellent operating performance of the entire fleet

Negative impact of lower realised prices

Stable average number of product accounts of residential customers

Decrease in Opex: -3.6%(3)

In €m 2015 2016 ∆% ∆% Org.(1)

Sales(2) 11,622 9,267 -20.3 -9.0

Opex 2,492 2,024 -18.8 -3.6(3)

EBITDA 2,242 1,713 -23.6 -12.3




UNITED KINGDOM: VERY GOOD NUCLEAR PERFORMANCE AND OPEX CONTROL, PARTLY OFFSETTING DIFFICULT MARKET CONDITIONS


Electricity activity Decrease in power sales prices

Less favourable hydro conditions compared to 2015

Hydrocarbons activity Positive impact in 2015 of the arbitrage on the Libyan gas contract, with no equivalent in 2016

Improved supply conditions, in particular following the Libyan contract renegotiation

E&P business hit by decrease in Brent and gas prices

Ongoing decrease in Opex confirmed: -4.7%(3)

In €m 2015 2016 ∆% ∆% Org.(1)

Sales(2) 11,694 11,125 -4.9 -4.5

Opex 939 896 -4.6 -4.7(3)

EBITDA 1,345 641 -52.3 -50.6




ITALY: OPEX CONTROL ALLEVIATING IMPACTS OF CHALLENGING MARKET CONDITIONS AND OF THE POSITIVE GAS ARBITRAGE IN 2015


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

In €m 2015 2016 ∆%∆%

Org.(1)

Sales(2) 3,289 3,600 +9.5 +2.1

EBITDA 217 252 +16.1 +8.3



DALKIA EDF TRADING

In €m 2015 2016 ∆%∆%

Org.(1)

Sales(2) 662 1,008 +52.3 +58.2

EBITDA 495 729 +47.3 +56.8

DALKIA AND EDF TRADING: COMMERCIAL DEVELOPMENTAND FAVOURABLE MARKET POSITIONS

High volatility on European power and gas markets, in particular during H2 2016

Good performance in the LNG trading business


In €m 2015 2016 ∆%

EBITDA 17,601 16,414 -6.7

IAS 39 volatility 175 (262) na

Amortisation/depreciation expenses(1)

and provisions for renewal(9,111) (8,007) -12.1

Impairments and other operating income and expenses (4,385) (631) -85.6

EBIT 4,280 7,514 +75.6

(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)

EBIT LIFTED BY EXTENSION OF DEPRECIATION PERIOD OF NUCLEARPLANTS(1) AND BY LOWER IMPAIRMENTS


In €m 2015 2016

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

NON-RECURRING ITEMS NET OF TAX


In €m 2015 2016 ∆ %

EBIT 4,280 7,514 +75.6%

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) +187.4%

Share of net income from associates 192 218 +13.5%

Deducting net income from minority interests (214) (160) -25.2%

Net income – Group share 1,187 2,851 +140.2%

Excluding non-recurring items 3,635 1,234 -66.1%

Net income excluding non-recurring items 4,822 4,085 -15.3%

CHANGE IN NET INCOME


In €m 2015 2016

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 271 323

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)


(3) New developments: in particular UK NNB, EPR New Models and offshore wind

CHANGE IN CASH FLOW (1/2)


(1) Please refer to press releases published by EDF and the European Commission on 22 July 2015

In €m 2015 2016


European Commission decision on RAG(1) (906) -

Dedicated assets 217 10

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)

CHANGE IN CASH FLOW (2/2)


+13.1

(1.9)

(11.7) (1.0) +1.5

December2015

December2016

(37.4) (37.4)

(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

Operating cash flow ∆ WCR

Net investments(1)

Dividends and hybridbonds remuneration

Other

STABLE NET FINANCIAL DEBT

In particular weather

effect(2), CSPE collection

and tariff adjustments

Mainly forex effect and

partial disposal of CSPE

receivable

In €bn

Appendices


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 containedin this presentation, and none of EDF representatives shall bear any liability for any loss arising from any useof 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 documentpublication, which can be however inaccurate and are subject to numerous risks and uncertainties. There is no assurance that expectedevents will occur and that expected results will actually be achieved. Important factors that could cause actual results, performance orachievements of the Group to differ materially from those contemplated in this document include in particular the successfulimplementation 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’sactivities, 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 (Documentde référence) of EDF filed with the Autorité des marchés financiers on 29 April 2016 and in the EDF EMTN base prospectus dated 14September 2016 as supplemented on 3 October 2016, a second supplement dated 14 November 2016 and a third supplement dated 10January 2017 which are 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 presentationto reflect any unexpected events or circumstances arising after the date of this presentation.


TABLE OF CONTENTS

Consolidated financial statements P. 4

Financing and cash management P. 45

Strategy and investments P. 57

EDF Énergies Nouvelles P. 65

France P. 71

International and other activities P. 105

Markets P. 112

Appendices

Consolidated financial statements


SIMPLIFIED INCOME STATEMENTS

(1) Excluding non-recurring items & IAS 39 volatility

In millions of Euros 2015 2016Sales 75,006 71,203

Fuel and energy purchases (38,775) (36,050)

Other external expenses (9,526) (8,902)

Personnel expenses (12,529) (12,543)

Taxes other than income taxes (3,641) (3,656)

Other operating income and expenses 7,066 6,362

EBITDA 17,601 16,414

IAS 39 volatility 175 (262)

Net depreciation and amortisation (9,009) (7,966)

Net increases in provisions for renewal of property, plant and equipment operated under concessions (102) (41)

(Impairment)/reversals (3,500) (639)

Other income and expenses (885) 8

EBIT 4,280 7,514

Financial income (2,588) (3,333)

Income before taxes of consolidated companies 1,692 4,181

Net income – Group share 1,187 2,851

Net income excl. non-recurring items(1) 4,822 4,085


Financing & cash

management

Strategy &

investmentsEDF EN France

International & other activities

Markets


General background:

Segmental presentation compliant with IFRS 8, which requires to report financial information of operating segments as regularly reviewed by the Management Committee

Regulatory changes occurred late-2015 in France (end of Yellow and Green tariffs, transfer of customers to market based contracts)

Willingness to improve clarity on performance in France

Change in France segmental reporting, with no impact at Group level

Effective date: 31.12.2016, and 31.12.2015 data restated

New segmentation considered:

France segment split into two separate segments:

France – Generation and supply activities

France – Regulated activities

Insulary activities and ÉS (Electricité de Strasbourg) included in the segment “France – Regulated activities”, previously included respectively in the segments “France” and “Other activities”

NEW SEGMENTAL PRESENTATION OF EDF GROUP'S ACTIVITIES


Financing & cash

management

Strategy &



Markets


2015 RESTATED EBITDA BY REPORTING SEGMENT

2015 published EBITDA

by segment

2015 restated EBITDA

by segment

In millions of EurosFY 2015

published

EBITDA

France 11,517

United Kingdom 2,242

Italy 1,345

Other international 609

Other activities 1,888

TOTAL EBITDA 17,601

In millions of EurosFY 2015restated

EBITDA

France – Generation and supply activities 6,936

France – Regulated activities 4,719

United Kingdom 2,242

Italy 1,345

Other international 609

Other activities 1,750

TOTAL EBITDA 17,601


Financing & cash

management

Strategy &



Markets


CHANGE IN SALES(1) BY REPORTING SEGMENT

In millions of Euros 2015 2016 ∆% ∆% org.(2)

France – Generation and supply

activities37,327 35,191 -5.7 -5.7

France – Regulated activities 15,418 15,728 +2.0 +2.0

United Kingdom 11,622 9,267 -20.3 -9.0

Italy 11,694 11,125 -4.9 -4.5

Other International 5,827 5,286 -9.3 -6.8

Other activities 7,288 7,734 +6.1 +4.5

Inter-segment eliminations (14,170) (13,128) -7.4 -7.4

Group 75,006 71,203 -5.1 -3.2




Financing & cash

management

Strategy &



Markets


SALES(1) BY REPORTING SEGMENT


In millions of EurosTOTAL

GROUP

France –Generation and

supply activities

France –Regulated

United Kingdom

ItalyOther

InternationalOther

activities

Inter-segment

eliminations

2015

sales restated75,006 37,327 15,418 11,622 11,694 5,827 7,288 (14,170)

Forex (1,394) - - (1,313) (2) (63) (16) -

Scope 19 - - - (40) (78) 137 -

Organic growth (2,428) (2,136) 310 (1,040) (527) (399) 325 1,039

2016 sales 71,203 35,191 15,728 9,267 11,125 5,286 7,734 (13,128)


Financing & cash

management

Strategy &



Markets


CHANGE IN SALES(1)



(3) Including inter segments eliminations

75,006

70 239 71,203

-1,375-2,136

+310 -1,040-527

2015 2016

Organic change: -3.2%(2)

ItalyFrance – Generation

and supply

Scope& change

UK Other(3)

In millions of Euros

Mainly forex in UK

France Regulated

+964

End of Yellow and Green tariffs, market prices decrease and intense competition partially mitigated by 2014 tariff adjustment, tariffs increase and favourable weather


Financing & cash

management

Strategy &



Markets


CHANGE IN EBITDA BY REPORTING SEGMENT

In millions of Euros 2015 2016 ∆% ∆% org.(1)

France – Generation and supply activities 6,936 6,156 -11.2 -11.2

France – Regulated activities 4,719 5,102 +8.1 +8.1

United Kingdom 2,242 1,713 -23.6 -12.3

Italy 1,345 641 -52.3 -50.6

Other International 609 711 +16.7 +21.2

Other activities 1,750 2,091 +19.5 +22.0

Group 17,601 16,414 -6.7 -4.8



Financing & cash

management

Strategy &



Markets


EBITDA BY REPORTING SEGMENT

In millions of EurosGROUP TOTAL


supply activities

France –Regulated UK Italy

Other International

Otheractivities

2015 EBITDA 17,601 6,936 4,719 2,242 1,345 609 1,750

Forex (296) - - (253) - (14) (29)

Scope (51) - - - (23) (13) (15)

Organic growth (840) (780) 383 (276) (681) 129 385

2016 EBITDA 16,414 6 ,156 5,102 1,713 641 711 2,091


Financing & cash

management

Strategy &



Markets


CHANGE IN NET INCOME

In millions of Euros 2015 2016 ∆%

Income before taxes of consolidated companies 1,692 4,181 +147.1

Income tax (483) (1,388) +187.4

Share in income of associates and joint ventures 192 218 +13.5

Deducting net income from minority interests (214) (160) -25.2

Net income – Group Share 1,187 2,851 +140.2

Neutralisation of non-recurring items including IAS 39 volatility 3,635 1,234 -66.1

Net income excl. non-recurring items 4,822 4,085 -15.3


Financing & cash

management

Strategy &



Markets


FROM EBITDA TO OPERATING INCOME BY REPORTINGSEGMENT IN 2016

In millions of EurosTOTAL

GROUP


supply activities

France –Regulated UK Italy

Other

International

Other

activities

EBITDA 16,414 6,156 5,102 1,713 641 711 2,091

IAS 39 volatility (262) (93) 7 (65) (166) (36) 91

Net depreciation and amortisation (7,966) (2,681) (2,674) (1,069) (558) (378) (606)

Provisions for renewal (41) - (41) - - - -

(Impairment) / reversals (639) (65) - (81) (159) (194) (140)

Other operating income and expenses 8 (52) 1 (12) (13) 110 (26)

EBIT 7,514 3,265 2,395 486 (255) 213 1,410


Financing & cash

management

Strategy &



Markets


CHANGE IN OPEX(1) BY SEGMENT

(1) Opex (operational expenses) corresponding to the sum of personnel expenses and other external expenses



Financing & cash

management

Strategy &



Markets

In millions of Euros 2015 2016 ∆ ∆% ∆(2) ∆%(2)

France – Generation and supply

activities9,837 9,591 -246 -2.5 -93 -1.0

France – Regulated activities 4,950 4,951 +1 - -19 -0.4

United Kingdom 2,492 2,024 -468 -7.5 -87 -3.6

Italy 939 896 -43 -2.8 -44 -4.7

Other International 735 760 +25 +1.0 +7 +1.0

Other activities 3,102 3,223 +121 - -39 -1.3

Group 22,055 21,445 -610 -2.0 -275 -1.3


CHANGE IN IAS 39(1) VOLATILITY: BY REPORTING SEGMENT

In millions of Euros 2015 2016 ∆

France – Generation and supply activities 20 (93) -113

France – Regulated activities - 7 +7

United Kingdom (45) (65) -20

Italy 161 (166) -327

Other International (15) (36) -21

Other activities 54 91 +37

Group 175 (262) -437

(1) Net changes in fair value of energy and commodity derivatives, excluding trading activities


Financing & cash

management

Strategy &



Markets


CHANGE IN FINANCIAL RESULT


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)

80

+167+48

+119

Discount expenses (2,812) (3,417) -605

Other financial income and expenses 2,218 1,911 -307

Financial result (2,588) (3,333) -745


Financing & cash

management

Strategy &



Markets


FROM INTEREST CHARGES ON FINANCING ACTIVITIES TO NET FINANCIAL EXPENSES DISBURSED


Interest charges on financing activities (1,955) (1,907) +48

Accrued interest 17 113 +96

Other financial income and charges (including dividends)

686 657 -29

Net financial expenses disbursed (1,252) (1,137) +115


Financing & cash

management

Strategy &



Markets


SHARE IN NET INCOME OF ASSOCIATES AND JOINT VENTURES


RTE 457 403 -54

Alpiq (192) - +192

CENG (284) (485) -201

Other 211 300 +89

TOTAL 192 218 +26


Financing & cash

management

Strategy &



Markets


CHANGE IN NET INCOME FROM MINORITY INTERESTS


United Kingdom 231 111 -120

Italy 3 - -3

Other International (57) 25 +82

Other 37 24 -13

TOTAL 214 160 -54


Financing & cash

management

Strategy &



Markets


CHANGE IN NET FINANCIAL DEBTIn millions of Euros 2015 2016

EBITDA 17,601 16,414

Cancellation of non-monetary items included in EBITDA (1,610) (1,703)

Net financial expenses disbursed (1,252) (1,137)

Income taxes paid (1,508) (838)

Other elements o/w dividends received from associates and joint ventures 271 323

Funds from Operations (FFO) 13,502 13,059

Change in net WCR 132 (1,935)

Net investments(2) (12,672) (11,663)


European Commission decision on RAG (906) -

Allocation dedicated assets in France 217 10

Cash flow before dividends 273 (529)

Dividends paid in cash (2,337) (1,036)

o/w EDF SA (1,420) (165)

o/w remuneration of hybrid bonds (591) (582)

o/w others (326) (289)

Cash flow after dividends (2,064) (1,565)

Hybrid emission - -

Other monetary changes (278) 549

Including CSPE disposal - 644

Change in net financial debt at constant scope and exchange rate (2,342) (1,016)

Effects of change and exchange rates (951) 1,107

Other non-monetary changes 106 (121)

Change in net financial debt (3,187) (30)

Net Financial Debt – Opening balance 34,208 37,395

Net Financial Debt – Closing balance 37,395 37,425

(2) Including Linky and new developments net of disposals


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NET INVESTMENTS(1): CHANGE SINCE 2015

(1) Net investments including Linky, new developments and asset disposals

(2) Including new segmentation (including ES and EDF PEI)

-358-34 -747

+179 -49


12,67211,663

20162015

France

Disposal

27%

45%

28%

49%

31%

20%

49%

31%

International

In particular UK, Italy,

Poland and Asia

Othersactivities

International and other activities


France – Regulated activities(2)

Newdevelopments

and Linky

Mainly EDF EN

2016

11,663

20%

GroupRegulated

GroupMaintenance

Group development

€1.0bn decrease, in particular on International


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-265

+381 -1,776

11,663

-1,075

GROSS AND NET(1) 2016 INVESTMENTS



Gross financial

investmentsDisposals

Subsidies and

interest Other

Gross operating investments

Net investmentsGross investments

Including disposal

plan: -€1,139m

14,398

Maintenance

Development

Regulated

20%

49%

31%

40%

26%

34%

14,779 Maintenance

Development

Regulated


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GROSS OPERATING INVESTMENTS(1)

(1) Gross operating investments including Linky and new developments

(2) Enedis, Électricité de Strasbourg and island’s activities

2015

€14.8bn

11%

Italy

France regulated(2)

Other activities

4%

3%

United Kingdom

13%

€14.4bn

26%

3%

2016

Other International

EDF Énergies Nouvelles 40%



39%

Other activities

4%

Other International

5%

25%

France regulated(2)

4%Italy

12%United Kingdom

EDF ÉnergiesNouvelles

11%


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GROSS OPERATING INVESTMENTS FOR DEVELOPMENT(1)

(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

€4.9bn

Italy(3) & gas activities

12%

NuclearNew Build

34%

6%Energy Services

9%Other

39%

Renewables(2)

2015

36%

Other

5%Energy Services

7%

Italy(3) & gas activities

8%

NuclearNew Build

44%

Renewables(2)

€4.9bn

2016


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2016 CASH FLOW


16.413.1

-0.5

-1.7

-0.8-0.8

-1.9

-11.7

In billions of Euros

6,6

Non cashitems

Net financialexpenses and

other items WCR

Net investments(1)

CorporateTax paid

EBITDA Funds from Operations (FFO) Cash flow after

net investments


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SIMPLIFIED BALANCE SHEET

(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

ASSETS(In millions of Euros)

31/12/2015 31/12/2016

Fixed assets 149,439 147,626

O/w Goodwill 10,236 8,923

Inventories and trade

receivables36,973 37,397

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

assets)(2)

- 5,220

Total Assets 278,941 281,640

LIABILITIES(In millions of Euros)

31/12/2015 31/12/2016

Shareholders’ equity (Group Share) 34,749 34,438

Net income attributableto non-controlling interests 5,491 6,924

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 278,941 281,640


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GOODWILL

In millions of Euros 31/12/2015 31/12/2016 ∆

EDF Energy 9,163 7,818 -1,345(1)

Dalkia 455 496 +41

Other 618 609 -9

TOTAL 10,236 8,923 -1,313


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(1) Change mainly due to the depreciation in the pound sterling


34.7 34,7 34.4

+2.9 -2.6

-2.0 +1.9

-0.4

Capital increase(2)

GROUP SHAREHOLDERS’ EQUITY

(1) Including remuneration of hybrid bonds for -€582m

(2) The payment in new shares of part of the 2016 interim dividend resulted in two capital increases and two new emissions premium


Shareholders’ equity as of 31/12/2015

Shareholders’ equity as of 31/12/2016

Net income Group share

Net actuarial gains and

losses

Dividends(1)

Others


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GROUP PROVISIONS

31 December 2015 31 December 2016

In millions of Euros CurrentNon

CurrentTotal Current

NonCurrent

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 cores251 24,646 24,897 208 24,020 24,228

Provision for decommissioning excluding

nuclear facilities 75 1,447 1,522 63 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


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46,809 46,514

+734

-2,004 +2,667 -1,552

-2,044 +1,617

+287

GROUP NUCLEAR PROVISIONS

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

-1 423

Reductions

Allowances

Discount unwinding(1)

31/12/201631/12/2015

Foreignexchange

adjustments


Otherchanges(3)


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Extension of depreciation period

of the 900MW fleet(4) at 01.01.16

Net discount rate decrease(2)


FRANCE NUCLEAR PROVISIONS

1) Excluding Fessenheim

36,130

- 2,044 +1,502

+1,342 -897

Including: - P&L financial expenses: +€680m- Balance sheet asset effect: +€662m

Including provision for dismantling of units still in operation: -€451m

Discount

expenses of the

year

Extending the accounting

depreciation period of the

900MW(1)

Effect of a lower discount

rate

31/12/201631/12/2015

Other


36,033


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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

FRANCE NUCLEAR PROVISIONS: 2016 CHANGE

Decommissioning costs –plants in operation

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)

Three-yearly review of decommissioning costs on1st 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

Decommissioningcosts –closed plants

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

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

Costs on CIGEO storage project

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 2016

2) Lower provision for counterparty of underlying assets

3) GCR: Gas-cooled reactor

4) At the economic conditions of 2011


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FRANCE NUCLEAR PROVISIONS

In millions of Euros 31/12/2015Net

AllowancesDiscounting

Otherchanges

31/12/2016

Total provisions for back-end nuclear cycle 18,645 (953) 1,366 566 19,624

Provisions for management of spent fuel 10,391 (893) 637 523 10,658

Provisions for long-term management

of radioactive waste8,254 (60) 729 43 8,966

Total provisions for nuclear dismantling

and last cores17,485 (3) 816 (1,889) 16,409

Provisions for dismantling

power stations14,930 (3) 723 (1,528) 14,122

Provisions for last cores 2,555 0 93 (361) 2,287

TOTAL FRANCE NUCLEAR PROVISIONS 36,130 (956) 2,182(1) (1,323) 36,033


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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


DISCOUNT RATE OF NUCLEAR PROVISIONS IN FRANCE (1/3)

The discount rate determined under the Company’s usual method is4.2% at 31 December 2016, assuming inflation of 1.5%

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 29.1.5, “Discounting of provisions related to nuclear generation and sensitivity analyses”


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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


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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)


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FRANCE NUCLEAR PROVISIONS: SENSITIVITY ANALYSIS TO THE DISCOUNT RATE

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) 277 182 (195)

Long-term management of radioactive waste 8,966 (475) 534 381 (432)

Dismantling and last cores

Dismantling of nuclear plants 14,122 (586) 619 127 (138)

Last cores 2,287 (85) 90 - -

Total 36,033 (1,357) 1,470 690 (765)


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FINANCIAL IMPACTS OF EXTENDING THE AMORTISATION PERIOD TO 50 YEARS OF THE 900MW(1) FLEET

P&L

Balance sheet

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+0.5 +1.0

Net income +0.3 +0.7

Decrease in nuclear provisions as of 1st 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


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GROUP PROVISIONS FOR EMPLOYEE BENEFITS

(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)

22,492(1) 2249223461

22767

21775 21 96921,766(1)

+1,530

-561(3)

-694

-992-9 568(2)

-1 423

2016 net

expense

31/12/201631/12/2015

Change, scope and other

Employer’s contribution

to funds Benefits

paid


Actuarial

differences

52(2)

Provisions

22,334

Provisions

22,544Including :Change in interest rates on liabilities and assets: +€1,379mDecrease in the commitment in kind Energie France, in particular following the reform of the CSPE mechanism): -€1,742mDifferences in experience and differences in demographic assumptions: -€198m


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NET INVESTMENTS

In millions of Euros 2015 2016TFT (13,050) (13,329)

Investments activities

Tangible and intangible assets (14,789) (14,397)

Sales of tangible and untangible assets 964 508

Financial activities

Investment subsidies received 623 417

Funding contributions received for assets operated under concessions 152 143

TFT sections 650 1,613

Investments activities

Acquisitions of equity investments, net of cash acquired (162) (127)

Disposal of equity investments net of cash transferred 748 372

Financial activities

Transactions with non-controlling interests 64 1,368

Other (272) 53

Net investments published in financial communication (12,672) (11,663)

Including Linky (119) (319)

Including new developments(1) (916) (667)

Including asset disposals(2) 781 1 139

Net investmentsExcept Linky, new developments and disposals (12,418) (11,816)

(1) Including DSSA of EDF EN and CGN cash-in decreasing gross investments for New Nuclear in the UK

(2) O/w in 2015: real estate disposals, EDF Trading assets disposals, disposal of interests in Estag and Bert

2016: real estate disposals and CGN entry in the UK New Nuclear


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CHANGE IN WCR

In millions of Euros 2016

2014 regulated tariff adjustment (939)

CSPE one-time effect (829)

Climate impact (735)

Other (146)

WCR Optimisation Plan 714

Change in WFR 2016 au TFT (1,935)


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DISPOSAL PLAN

In millions of Euros 2015 2016 Total

Investing activities

Disposals of equity investments net of cash transferred 748 372 1,120

Net proceeds from sale of tangible and intangible assets 964 508 1,472

Financing activities

Transactions with non-controlling interests 64 1,368 1,432

Total disposals (TFT sections) 1,776 2,248 4,024

Including disposals out of plan(1) 995 1,109 2,104

Including disposals included in the disposal plan(2) 781 1,139 1,920

Total disposals (TFT sections) 1,776 2,248 4,024

Disposals included in the disposal plan(2) 781 1,139 1,920

Signed but not yet realised disposals in 2016 (RTE, DEMASZ, JERA) 4,752

Total disposal plan 6,672

(1) Including DSSA of EDF EN and CGN cash-in in deduction of gross investments for New Nuclear in the UK

(2) O/w in 2015: real estate disposals, EDF Trading assets disposals, disposal of interests in Estag and Bert

2016: real estate disposals and CGN entry in the UK New Nuclear


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NET INCOME EXCLUDING NON-RECURRING ITEMS(1)

In millions of Euros 2015 2016

Net income – Group share 1,187 2,851

Impairments -3,500 -639

Cigéo(2) provision storage -509 0

Decision on RAG(3) -354 0

Impairments on CENG and Alpiq in share in net income of associates and joint ventures(4) -467 -481

Other including tax effect and fair value adjustment(5) 1,195 -114

Net income 4,822 4,085

(1) Net income excluding non-recurring tiems is not defined in IFRS norms and does not appear directly in Group consolidated accounts. It corresponds to net income excluding non-recurring items

and fait value net change on energy derivatives and raw materials, trading business excluded, net of tax

(2) Figures net of tax. Please refer to note 3.8.1 of concolidated accounts as of 31.12.2016

(3) Figures net of tax. Please refer to note 3.8.3 of concolidated accounts as of 31.12.2016

(4) Please refer to note 23.2.3 of concolidated accounts as of 31.12.2016

(5) Fair value net change on energy derivatives and raw materials, trading business excluded


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Appendices

Financing and cash management


DEBT AND LIQUIDITY

In billions of Euros 31/12/2014 31/12/2015 31/12/2016

Net financial debt

Net financial debt/EBITDA

34.2

2.0x

37.4

2.1x

37.4

2.3x

Debt

Bonds

Average maturity of gross debt (in years)

Average coupon

43.6

13.2

3.29%

48.5

13.0

2.92%

51.9

13.42

2.73%

Liquidity

Gross liquidity

Net liquidity

28.5

19.3

33.7

22.9

36.9

23.4


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NET FINANCIAL DEBT

In millions of Euros 31/12/2014 31/12/2015 31/12/2016

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


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GROSS FINANCIAL DEBT AFTER SWAPS

Breakdown by type of rate Breakdown by currency

(1) Mainly HUF, CHF, PLN, BRL, CAD and JPY

Floating rate46%

Fixed rate54%

EUR 79%

GBP 14%

Other(1)

3%USD 4%

54%

46%

31/12/15

19%

75%

3%3%

31/12/15

31/12/16 31/12/16


Financing & cash

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-

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

EUR GBP USD CHF JPY Other

BREAKDOWN OF BOND DEBTS BY CURRENCYIn millions of Euros, before swaps

Of which (in €m eq.) 2017 2018 2019 2020

EUR 609 1,487 477 1,191

USD - - - -

JPY 1,654 - 3,059 2,692

CHF 649 - - -


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MAIN OUTSTANDING BONDS AS OF 31 DECEMBER 2016Issue date(1) Maturity Nominal amount

(millions of currency units)Currency Coupon

01/2014 01/2017 750 USD Libor USD 3M + 0.46

01/2014 01/2017 1,000 USD 1.15%

02/2008 02/2018 1,500 EUR 5.00%

01/2009 01/2019 2,000 USD 6.50%

01/2014 01/2019 1,250 USD 2.15%

01/2010 01/2020 1,400 USD 4.60%

05/2008 05/2020 1,200 EUR 5.38%

10/2015 10/2020 1,500 USD 2.35%

01/2009 01/2021 2,000 EUR 6.25%

11/2013 04/2021 1,400 EUR 2.25%

01/2012 01/2022 2,000 EUR 3.88%

09/2012 03/2023 2,000 EUR 2.75%

09/2009 09/2024 2,500 EUR 4.63%

10/2015 10/2025 1,250 USD 3.63%

11/2010 11/2025 750 EUR 4.00%

10/2016 10/2026 1,750 EUR 1.00%

03/2012 03/2027 1,000 EUR 4.13%

05/2008 05/2028 500 GBP 6.25%

04/2010 04/2030 1,500 EUR 4.63%

07/2001 07/2031 650 GBP 5.88%

02/2003 02/2033 850 EUR 5.63%

06/2009 06/2034 1,500 GBP 6.13%

10/2016 10/2036 750 EUR 1.88%

03/2012 03/2037 500 GBP 5.50%

01/2009 01/2039 1,750 USD 6.95%

01/2010 01/2040 850 USD 5.60%

11/2010 11/2040 750 EUR 4.50%

10/2011 10/2041 1,250 GBP 5.50%

01/2014 01/2044 1,000 USD 4.88%

10/2015 10/2045 1,500 USD 4.75%

10/2015 10/2045 1,150 USD 4.95%

09/2010 09/2050 1,000 GBP 5.13%

10/2016 10/2056 2,164 USD 4.99%

01/2014 01/2114 1,350 GBP 6.00%

Green Bond

Green Bond

Green Bond

(1) Date of funds reception


Financing & cash

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EDF, A BENCHMARK GREEN BONDS ISSUER WITH THE EQUIVALENT OF €4.5BN ISSUED IN 5 TRANCHES AND 3 CURRENCIES

Issue date(1) Maturity

(in years)

Nominal

amount (millions of

currency units)

Currency

Eligible investments in the use of funds

Allocated funds

as of 31/12/16Construction of new

renewable capacity by

EDF EN

Renovation and

modernization of existing

hydroelectric facilities in

metropolitan France

11/2013 7.5 1,400 EUR 100%

10/2015 10 1,250 USD 97.6%

10/2016 10 1,750 EUR -

01/2017 12 19,600 JPY -

01/2017 15 6,400 JPY -

(1) Date of funds reception


Financing & cash

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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 1st 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%

GREEN BONDS: A TOTAL OF 3.6MTCO2/YEAR AVOIDED BY THE FUNDS CONTRIBUTING TO 18 RENEWABLE PROJECTS

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

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

CO2 emissions

(in Mt/year)

Gross(1) Net(2) Gross(1) Net(2) Gross(1) Net(2)

Green Bond N.1 November 2013 €1.4bn €1.4bn 13 projects(3) 57% 1,755 976 7.0 4.1 3.3 1.8

Green Bond n°2

Octobre 2015$1.25bn $1,22bn 3 projects(3) 74% 1,109 814 4.3 3.1 3.0 2.1


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NON-FINANCIAL RATINGS: MAJOR ACHIEVEMENTS IN 2016 WITH ENTRY TO DJSI AND CDP "A" LIST

Entry into the 2 main international financial indices and reintegration of the Vigéo World index

Continuous progress in EDF’s non-financial rating by all agencies

EDF member of the FTSE4Good Index

Group admission confirmed in 2016

EDF= 2nd company in its sector

EDF rated 4.6/5 in 2016 (vs. 4.5/5 in 2015)

EDF rated 60/100 in 2016 (vs. 58/100 previously)

Overall Annual Score 2015 2016

Performance and transparency A- A

EDF joins the CDP "A" List in 2016 member of the CDLI France and Bénélux 2016 (Climate Disclosure Leadership Index)

2015 2016

EDF score 79% 87%

Average Electricity sector score 52% 52%

EDF member of all Euronext Vigeo indices: World 120, Europe 120, Eurozone 120 et France 20

EDF member of the STOXX ESG Leaders Index 2016/2017

EDF rated 78/100 in 2015 (vs. 76/100 in 2014)

EDF is one of the five global nuclear operators

meeting the stringent criteria developed and overseen

by the FTSE4Good Policy Committee

EDF enters the DJSI World Bronze Class and Industry Mover of the Sustainability Yearbook 2017


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COMPARATIVE DEBT RATINGS

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

Baa3

BBB+ A- A A+

Baa1

A3

A2

A1

EDF

Engie

E.ON

Iberdrola

Vattenfall

RWE

SSE

Moody’s

ratings

S&P ratings

EnelBaa2

BBBBBB-

S&P Ratings

Moody's Ratings

Fitch Ratings

EDF A- stable(1) A3 stable(2) A- stable(3)

Engie A- negative A2 stable n/a

E.ON BBB+ negative Baa1 negative BBB+ stable

Uniper BBB- stable n/a n/a

Enel BBB stable Baa2 stable BBB+ stable

RWE BBB- stable Baa3 negativeBBB watch

negative

Iberdrola BBB+ stable Baa1 positive BBB+ stable

SSE A- negative A3 stable BBB+ stable

Endesa BBB stable n/a BBB+ stable

Vattenfall BBB+ negative A3 negative BBB+ stable

Innogy BBB- positive n/a BBB+ stable


Financing & cash

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DEDICATED ASSETS

(1) The coverage ratio of the provisions is 105.4% excluding the statutory caps prescribed by Order N. 2007-243

8.2

14.3

14.9 4.0

5.20.5

9.8

15.8

14.15.6

4.30.5


Dedicated assetsin realisable value

Provisions

CSPE

receivable

Provisions for LT management of

radioactive waste


of nuclear plants

Provisions

23.523.6

CSPE

receivable

EDF Invest

Financial portfolio and liquid assetsProvisions for LT

management of radioactive waste

Provisions for last cores(1)


of nuclear plants

25.724.4

31/12/2015 31/12/2016

Provisions forlast cores(1)

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 H1 2017(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

EDF

Invest

Financial portfolio and liquid assets


Financing & cash

management

Strategy &



Markets

Dedicated assetsin realisable value


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 + 40.1% in total including RTE (impact of the CDC / CNP operation)

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

Shares and bond funds

EDF Invest(2) Shares and equity funds

CSPE receivable(3)

5,633

6,866

7,992

4,286

Portfolio breakdown as of 31 December 2016(4)

25,677(4)


Performance in 2016: +11.1%(1)

Cash

900

ListedFinancial 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


Financing & cash

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Appendices

Strategy & investments


INSTALLED CAPACITY AS OF 31 DECEMBER 2016

In GWe

Consolidated capacities of EDF group,

including shares in associates and

joint ventures

Associates and joint

ventures

Net consolidated capacities

of EDF group

Nuclear 75.2 54% 2.2 72.9 55%

Coal 10.6 8% 2.1 8.4 6%

Fuel oil 9.1 6% - 9.1 7%

Gas 13.4 10% 0.9 12.5 10%

Hydro 22.5 16% 1.1 21.4 16%

Other ren. 7.9 6% 0.1 7.8 6%

Total 138.7 100% 6.4 132.3 100%


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NET ELECTRICITY OUTPUT

In TWh 2015 2016

Nuclear 482.7 78% 453.6 78%

Coal/Fuel oil 37.9 6% 22.9 4%

CCGT 41.7 7% 46.9 8%

Hydro 43.5 7% 46.0 8%

Other Renewables 13.5 2% 14.5 2%

Group 619.3 100% 583.9 100%


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CO2 EMISSIONS

Net emissions

by segment

In kt In g/kWh

2015 2016 2015 2016

France – Generation

and supply activities5,345 9% 6,944 14% 12 16

France – Regulated

activities3,187 5% 3,197 7% 555 554

United Kingdom 16,878 29% 4,748 10% 203 65

Italy 7,079 12% 8,041 17% 346 304

Other International 20,213 34% 18,033 38% 550 459

Other activities 6,435 11% 6,737 14% 360 180

Group 59,137 100% 47,700 100% 95 77

Group’s emissions below the 100g/kWh threshold


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FLAMANVILLE 3 EPR

Construction progress as of 31 December 2016 Completion of the main civil engineering work

1st 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, turbo-generator unit…)

Main steps in 2017 Beginning of the system performance tests at end of 1st quarter

2017, in parallel of finalization of mechanical erection

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 1st semester 2017

Roadmap for the Flamanville 3 project, drawn

up in September 2015: Project cost set at €201510.5bn(1)

First fuel loading and start –up of the reactor expected

end 2018

Ramp up 2019: connection to the grid in the 2nd quarter

and then 100% capacity in the 4th quarter

One 1,650MW EPR under construction


Financing & cash

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(1) Excluding interim interests

(2) ASN: Autorité de Sûreté Nucléaire


CHINA TAISHAN 1 & 2 (EDF 30%)

Construction progress as of 31 December 2016

Unit 1

Finalization of emergency power supplies

System performance testing: cold functional testing, containment building and start of hot functional testing (operation of primary and secondary systems with nominal pressure and temperature values)

Ongoing safety review by the Chinese safety authority in order to authorize fuel loading

Unit 2

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

Next steps

Unit 1

End of hot functional testing, completion of trials on the pre-production (pressurizer, primary pump and internal vessel equipment ...)

Fuel reception and loading, physical tests on the core

Unit 2

End of electromechanical erection, system performance testing (cold functional testing and containment building, then hot functional testing)


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HINKLEY POINT C: FINAL CONTRACTS SIGNED

Construction phase follows as the final contracts are signed

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 2016. EDF’s share is 66.5% and CGN’s 33.5%

This signing kick-starts the nuclear new build programme in the UK. It marks a new chapter in the longstanding partnership between EDF and CGN, which also plans the development of nuclear power stations at Sizewell C and Bradwell B. 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

Project Update

Following the final investment decision the project has moved into the build phase for construction

The first nuclear safety concrete of the reactor building of Unit 1 (a major milestone for the construction) is scheduled for 2019 –this represents the start of construction from a regulatory perspective. The commissioning of HPC first unit is scheduled for end 2025

Following the final investment decision, a full review of the costs and schedule is in progress, taking into account the reassignment of the teams on the project, and in accordance with the project company's rules of governance


Financing & cash

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DUNKIRK LNG TERMINAL

EDF, via Dunkerque LNG (65% EDF, 25% Fluxys, 10% Total) commissioned the 1st January 2017 the terminal to import Liquefied Natural Gas (LNG) of Dunkirk, which provides three main services:

Reception of LNG tankers (at its pier, equipped with 5 unloading arms)

LNG storage (in 3 isothermal tanks totaling 600,000 m3)

Emission of gas via exchangers/re-gasifier to the transmission networks

The import and emission capacity is 13bcm/year (20% of the markets in France and Belgium), including 8bcm subscribed by EDF and 2bcm by TOTAL. The terminal is connected to the two French and Belgian networks, a unique example in Europe

Cost to completion of €1,2bn in line with budget

Commercial deliveries planned by customers according to their needs


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Appendices

EDF Énergies Nouvelles


EDF EN: NET INSTALLED CAPACITY AS OF 31 DECEMBER 2016

Source: EDF Énergies Nouvelles

Note: MWp: Megawatt peak (measure of the power under laboratory lighting and temperature conditions)

Wind installed (MW)

Solar installed (MWp)

Wind and solar under construction (MW)

Other technologies

Installed 208MW

Under construction 0 MW

Gross Net

Installed capacity: 9,614MW 6,263MW

Capacity under construction: 1,780MW 1,188MW

Total: 11,394MW 7,451MW

47MWp230MW

187MW

265MW74MWp

238MW12MWp

2,426MW89MWp

200MW

242MW146MW

265MW2MW

3MW

476MW23MWp

112MW106MW

109MWp18MW

818MW207MWp195MW

6MW

188MW

26MW60MWp71MW

54MW

27MW

217MW

66MW40MW


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EDF EN: A SIGNIFICANT PORTFOLIO OF RENEWABLE PROJECTS

Source: EDF, EDF Énergies Nouvelles

Note: pipelines are indicated for EDF EN and include capacity under construction

(1) Of which 1,009MW in China

924MW44MWp

2 828MW1 757MWp

300MW382MWp

299MW261MWp

871MW396MWp

194MW

398MW

204MW324MWp

1,250MW

3,498MW174MWp

150MW340MWp

700 MW

312MW360MWp

145MW

1,253MWp

10MW

43MW

12MW

100MWp

Wind Pipeline:

13.1GW(1)

PV Pipeline:

5.4GWp

A wind and solar pipeline of about 18.5GW


Financing & cash

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EDF EN: INSTALLED CAPACITY AND CAPACITY UNDER CONSTRUCTION, BY TECHNOLOGY, AS OF 31 DECEMBER 2016

(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

In MWGross(1) Net(2)

31/12/2015 31/12/2016 31/12/2015 31/12/2016

Wind 7,912 8,495 5,349 5,434

Solar 918 900 573 621

Hydro 77 63 74 60

Biogas 51 70 51 70

Biomass 66 66 58 58

Cogeneration 19 0 7 0

Other 20 20 20 20

Total installed capacity 9,063 9,614 6,132 6,263

Wind under construction 1,060 1,221 970 873

Solar under construction 330 560 151 316

Other under construction 19 0 19 0

Total capacity under construction 1,409 1,780 1,141 1,188


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In MW 2015 2016Portugal - 140

Belgium - 3

United States 395 548

Canada 149 90

Mexico - 120

Total wind 543 899

France + DOM(1) - 4

India - 50

Italia - 3

United States 58 1

Total solar 58 58

France - 14

Total hydro - 14

France 22 -

Total biogas 22 -

Total 623 971

EDF EN: NET CAPACITY SOLD

(1) French overseas departments


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EDF EN: OPERATION & MAINTENANCE(1)

(1) MW generated by renewable energy power plants that EDF EN operates and maintains (plant supervision, monitoring of production, preventive and corrective maintenance, etc.)

on its own behalf or for a third party

In MW 31/12/2015 31/12/2016 ∆MW ∆%

United States 8,973 7,966 -1,007 -11.2

Canada 1,682 1,577 -105 -6.2

Mexico 68 392 +324 x5.8

Total America 10,723 9,935 -788 -7.3

France 1,526 1,633 +107 +7.0

United Kingdom 395 451 +56 +14.2

Greece 170 194 +24 +14.1

Italy 599 697 +98 +16.4

Germany 400 400 - -

Poland 84 142 +58 +69.0

Belgium 18 41 +23 x2.3

Total Europe 3,192 3,558 +366 +11.5

Total O&M 13,915 13,493 -422 -3.0


Financing & cash

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Appendices

France


FRANCE: UPSTREAM/DOWNSTREAM BALANCE

Consolidatedfinancial statements

Financing & cash

management

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Markets

In TWh

481

-33

+5-5

+4

+2

-27

∆ 2016vs. 2015

-35

+36

-12-16

481

Nuclear

Hydropower(1)

Fossil-firedLT & structured sales

Purchase obligations

Net market sales

Structured sales,auctions and other(2)

ARENH supply

End-customers

∆ 2016vs. 2015

-27

OUTPUT/PURCHASES CONSUMPTION/SALES

430

12

42

384 320

390

122

NB: EDF excluding French islands electrical activities

(1) Hydro output after deduction of pumped volumes: 36TWh

(2) Including hydro pumped volumes of 7TWh


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 CreusotForge 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 led to 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 14 February 2017, 17 of the 18 reactors concerned by the issue of carbon segregation have been tested and granted approval to restart and are operating in complete safety. Tests are currently under way on the Civaux 1 reactor

(1) Please refer to the press release published by EDF on 21 October 2016

Consolidatedfinancial statements

Financing & cash

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Markets

Reactors affected by carbon segregation and controled

Reactors not affected by carbon segregation


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 files” 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 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 all the manufacturing records of all components used in the currently operating fleet. This programme runs until the end of 2017 for the detection and characterisation of the anomalies. EDF is closely monitoring this analysis process

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 3rd 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


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CHANGE IN LOAD FACTOR AND NUCLEAR OUTPUT

75.576.1

77.077.6 77.4

75.6 75.3

70.7

73.8

76.1

73.0 73.0

75.2 75.4

69.2

65

75

85

417421

427429 428

418 418

390

408

421

405 404

416 417

384

370

410

450

Annual load factorof nuclear fleet

Net output of PWR(1) fleet

Load factor (%) TWh

(1) Pressurized Water Reactor


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FRANCE NUCLEAR OUTPUT: OPERATING AND NUCLEARSAFETY INDICATORS

38

28

2015 2016

2.5

2.0

2015 2016

Number of automatic reactorshutdown

Unplanned outages (%)


Financing & cash

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Safety indicators at their best historical level


0

1

2

3

4

5

6

7

8

9

10-YEAR INSPECTIONS OF THE NUCLEAR FLEET(1)

(1) Forecast data as of 14 February 2017

(2) Of which 3rd 10-year inspection (1,300MW) of Paluel 2 starded in 2015 and 3rd 10-year inspection 900MW) of Gravelines 5 started in 2016

1,450 MW

1,300 MW

900 MW

Number of 10-year inspections

3rd 10-year inspections of 900MW reactors

4th 10-year inspections of 900MW reactors

4th 10-year inspections of 1,300MW reactors3rd 10-year inspections of 1,300MW reactors

2nd 10-year inspections of 1,450MW reactors


Financing & cash

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2016(2) 2017E(2) 2023E2022E2021E2020E2019E2018E 2026E2025E2024E 2027E


POTENTIAL HYDROPOWER CAPACITY(1)

1989: lowest potential hydropower capacity in the last 30 years1994: highest potential hydropower capacity in the last 30 years

(1) Potential hydropower capacity: maximum quality of power that can be produced from hydraulic sources (rain, snow) over a given period of time

In TWh

0

1

2

3

4

5

6

7

8

Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec.

1989 (30.5TWh) 1994 (53.2TWh) 2015 (34.5TWh) 2016 (39.8TWh)


Financing & cash

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ENEDIS(1): KEY FIGURES

(1) Enedis, independant subsidiary of EDF under the provisions of the French energy code; local data

(2) Including Linky

In millions of Euros 2015 2016 ∆%

Sales 13,548 13,835 +2.1

EBITDA 3,810 4,047 +6.2

Net income excl. non-recurring items 904 1,015 +12.3

Gross operating investments(2) 3,170 3,462 +9.2


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ENEDIS(1): QUALITY OF DISTRIBUTION IN FRANCE

Criteria B(2) excluding exceptional events and excluding RTE: +3 minutes vs. 2015

Criteria B(2) including all causes (TCC): -3 minutes vs. 2015

0

60

120

180

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Criteria B including all causes

Criteria B excl. exceptional events and excl. RTE

Cumulated average duration in minutes of outages

per low customers voltage

(1) Enedis, independant subsidiary of EDF under the provisions of the French energy code

(2) Cumulated average duration in minutes of outages per low customers voltage

In cumulated minutes


Financing & cash

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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 2014-2021

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)

Specific regulation over a 20-year period (Linky-dedicated RAB)

Pre-tax nominal return rate of 7.25% and 3% additional premium or 2% malus in return for an incentive regulation relative to the respect of the costs and the deadlines and the performance of the system

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 2016 Since the first pilots and the start of the general roll-out on 1st December 2015, the installation is continuing, in line

with the projected progress and cost path for tranche 1 of the Linky Programme

At end of 2016, the threshold of 2.5m installed meters was crossed, and nearly 44,000 concentrators were installed in the substations; The deployment started in about 1,400 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 15,000 meters/day at end of 2016, making it possible to reach the expected 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


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ELECTRICITY BUSINESS OF EDF IN FRANCE

(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

128.4 133.8 133.9

169.8150.8

39.4

55.6 70.4

146.6

Residentialcustomers

Local authorities, companies and professionals

(at historical tariffs)(3)


(not at historical tariffs and including transitional offer for 3.5TWh)

353.8319.9

Sales to end customers(1)(2)

355.0

2014 2015 2016

Portfolio change in particular due to the end of regulated tariffsabove 36kVA at end 2015

In TWh


Financing & cash

management

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Markets


164.0

0.48.9

EDF IN FRANCE: ELECTRICITY BUSINESS – HISTORICAL TARIFFS SPLIT BY COLOUR

(1) Rounded to the nearest tenth

(2) Including EDF’s own consumption

(3) Local Distribution Companies (LDCs)

(4) Of which Yellow tariff for 0.1TWh and Green tariff for 0.3TWh - tariffs lower than 36 kVA that persist beyond 2015

133.9

39.4

146.6

In TWh

Sales to end customers for 2016(1)(2)

Residential customers


(not at historical tariffs)

Local authorities, companies and professionals(at historical tariffs)

LDC(3) transfer price

Green and Yellow

tariffs(4)

Blue tariff


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CAPACITY MECHANISM IN FRANCE: STARTING ON 01.01.2017

Established by the NOME law, approved by the European Commissionon 8 November 2016

Final rules issued by order on 29 November 2016

Definition of the criterion of security of supply by the public authorities: 3h of shedding on average per year

Objective: to remunerate the means of generation and load shedding useful to security of supply

Operated by RTE

Definition of calculation methods and identifying peaks

Ex-post calculation of each supplier’s obligations and the actual availability of certified facilities

Issue of capacity certificates, controls and management of capacity registry and settlement of gaps

Provision of information on supply and demand for certificates

Sources : DGEC, RTE

Suppliers’ obligation Capacity (generation,

demand-side response)

Demand for capacitycertificates

Offer of capacity certificates

Calcul de l’obligation

Capacitycertification

Availabilitycommitment

Verificationof certificates held

vs. peak consumption

Control of effectivecapacity availability

Capacity matches peak demandSecurity of supply safeguarded

Trade of

certificates

Capacity price

3 hours

Loss of load

expectation

standard

Calculationof the obligation


Financing & cash

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Markets


Continuous over-the-counter exchanges

Capacity auctions organized by EPEX Spot

Delivery Y year Year + 1Year - 4 Year - 4

Certification of existing

capacities

Certification of new capacities (including

demand-side response)

Adjustments by operators, at progressive cost

Implementation by suppliers of peak-load shedding measures in their customer portfolio

Estimated amount of obligations of suppliers

RTE controls the effective

availability of the certified

capacity

RTE calculates the

final amount of

obligations

Financial

settlement if

capacity is

insufficient

Financial

settlement of

deviations for

capacity not

available

Year + 3

1 auction in year Y

15 auctions on the 4 years before the delivery year

1 auction in year

Y+1

1 auction at the

beginning Y + 3 Capacity

certificates

market for

year Y

Deadline for

transfer of

certificates

Sources : RTE

CAPACITY MECHANISM IN FRANCE: STANDARD CALENDAR


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CAPACITY MARKET IN 2017 AND IMPACT FOR EDF

First capacity auction 2017 organized by EPEX Spot on 15 December 2016

22.6GW of capacity certificates traded

Price of capacity: €10/kW (reference price for 2017)

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 pass-through of the cost of capacity to the different categories of end-customers


Financing & cash

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Markets

(1) Local Distribution Companies (LDCs)


12.44.0

40.8 41.5

H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017

ARENH: VOLUMES ALLOCATED TO ALTERNATIVE SUPPLIERS

Maximum total sales volume by EDF to competing suppliers (excluding network losses): 100TWh

Volumes sold in 2015: 16.4TWh

No volume sold in 2016

Forecasted volumes for 2017:

40.8TWh for H1

41.5TWh for H2

(1) 2017 volumes are subject to change during the year by application of legal, regulatory and contractual provisions (intra-annual window, cancellations, defaults, etc.)

(2) The total quantity of product sold for the second half of 2017 could change according to the demands that could take place at the subscription window of 16 May 2017

(1) (2)


Financing & cash

management

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REGULATED SALES TARIFFS IN FRANCE: CHANGE IN 2016

In 2016, tariffs (excluding taxes) changed on the 1st August:

-0.5% on average for residential customers and -1.5% on average for small companies (Blue tariff)

These changes include increasing network tariffs (TURPE) effective 1st August: + 1.1% for distribution

As of 31 December 2015 Yellow and Green regulated tariffs have ended for consumption sites that have subscribed a capacity strictly greater than 36 kVA

62

45

22.5

37

Average bill breakdown, VAT included (Blue residential customer)

Blue tariff, VAT excluded: -0.7%

Source: CRE deliberation report of the Committe of 13 July 2016, which has redefined 2015 levels

TURPE

€106.2/MWh €105.5MWh

+€0.5/MWh

-€1.2/MWhEnergy

component+

commercialisation

+ catch-up

€166/MWh

CSPE

TURPE

Generation and supply costs

Taxes

2015 2016


Financing & cash

management

Strategy &



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TARIFF ADJUSTMENT

In its judgment of 15 June 2016, the Council of State has:

canceled, for legal uncertainty, the Order of 28 July 2014 amending the Order of 26 July 2013 on regulated tariffs which foresaw a 5% average increase in Blue tariffs on 1 August 2014 and requested a corrective Order for the period concerned

canceled the Order of 30 October 2014 relating to the Residential and Green regulated tariffs set at an insufficient level to ensure that past tariff differentials were rectified and requested a corrective Order over the period concerned

The Ministers responsible for energy and the economy therefore published in the Official Journal of 2 October 2016 two corrective tariff orders fixing the retroactive increase of the Blue Residential and Green tariffs over the periods concerned

Sales: +€1,030m

EBITDA: +€872m(1)

Cash-in: +€196m

Financial

impacts 2016

Tariff

adjustment

(1) Including +€859m in the segment France – Generation and supply activities


Financing & cash

management

Strategy &



Markets


CSPE(1): NEW COMPENSATION MECHANISM

Evolution published in the Amending Finance Law 2015 and the Finance Law 2016; entry into forceof the new mechanism on 1 January 2016:

Public energy service charges (electricity and gas) integrated into the State budget are still calculated by the CRE and are divided into two accounts: an “Energy Transition” special allocation account and a “Public Energy Service” account of the General Budget

Publication by the CRE of its ruling of 13 July 2016 regarding actual 2015 charges, reforecasting of 2016 charges and forecasting of the 2017 charges

The reimbursement of the EDF compensation deficit as presented in the letter from the Ministers of 26 January 2016 was translated into the decree of 18 February 2016 and the orders of 13 May 2016and of 2 December 2016:

Confirmation of the receivable owed to EDF and recognized by the State of €5.9bn at the end of 2015, including the new deficits between 2013 and 2015 and the related interests, and of the reimbursement schedule for 2020

The annuity and related interests (1.72%) will be compensated in priority relative to other EDF charges,in accordance with Article R. 121-33 of the Energy Code

Compensation as from 1 January 2017 for the costs of managing the purchase obligation contracts,in accordance with the principle of full offsetting of the charges borne by the operators (Budget Lawfor 2017)

(1) Contribution au Service Public de l’Énergie - Public energy services charges


Financing & cash

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CSPE: STABILISATION AT €22.5/MWH FOR 2016 AND 2017 SUPPORTED BY THE FINANCING REFORM

The « CSPE » tax is no longer subject to an automatic annual increase. It was stabilizedfor 2016 and 2017 at €22.5/MWh

As of 2016, in addition to the CSPE tax, the mechanism is financed by a portion ofthe “domestic tax on natural gas consumption”.

In 2017, the “domestic tax on energy products” and the “domestic tax on coal, ligniteand coke” will also contribute to funding the mechanism

(1) Article 14 of the Amending Finance Law for 2015 included in Article 266 d C of Customs Code

13.516.5

19.522.5 22.5

01/01/2013 01/01/2014 01/01/2015 01/01/2016 01/01/2017

€/MWh (1) (1)


Financing & cash

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Markets


CSPE AT EDF

Article L121-6 of the Energy Code stipulates that the expenses attributable to the public service tasks assigned to the electricity operators are fully compensated by the State

In millions of Euros 2014 2015 2016

Purchase obligations(1) 3,905 66% 4,278 68% 4,472 69%

Other(2) 1,983 34% 2,042 32% 2,038 31%

Total CSPE EDF 5,888 100% 6,320 100% 6,510 100%

The public service costs in ZNI(3) depend on energy and fuel purchases, the cost of replacing old power plants and the volumes of purchase obligations

Rise in public service costs mainly due to a increase in purchase obligations costs related to the development of the renewable generation fleet in France, partly offset by lower expenses related to generation costs in ZNI(3)

(1) Purchases obligations include electricity generated from: hydropower (less than 12MW), biomass, wind power, PV power, cogeneration, recovery of household waste and energy

recovery, with the exception of ZNI(3)

(2) Additional generation costs and purchase obligations in ZNI(3), the TPN (First Necessity Tariff) and the FSL (Housing Solidarity Fund)

(3) ZNI: Zones non interconnectées corresponding to overseas departments and Corsica


Financing & cash

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€1,802M €1,519M €1,752M €1,727M

€3,330M €3,905M€4,278M €4,472M

2013 2014 2015 2016

€43.2/MWh€34.7/MWh

€38.6/MWh €36.7/MWh

CSPE: CHANGE IN PURCHASE OBLIGATIONS IN MAINLAND FRANCE FOR EDF

Principle: The compensation mechanism of public energy services charges(1) offsetsthe difference between the cost of purchase obligations in mainland France and market prices

(1) The compensation mechanism of public energy services charges also offsets tariff equalization costs in non-interconnected areas, and solidarity arrangements

(2) EDF SA excluding Island Electric Systems

€5,424M€5,132M

Additional cost of purchase obligations cost to be offset by the CSPE(2)

Cost of purchase obligations valued at market prices based on CRE methodology

Purchase obligations amount

Average spot price

€6,030M€6,199M


Financing & cash

management

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Markets


CSPE: IMPACT ON EDF GROUP FINANCIAL STATEMENTS

(1) CSPE receivable excluding coverage on dedicated assets

(2) Excluding the impact of the reclassification of €644m as financial debt (non-cash effect)

In millions of Euros 2014 2015 2016

Income statement

Extra-costs / losses

Impact on “Other Operating Income and Expenses”

EBITDA

Financial result (compensation for the cost of carry)

(5,888)

5,888

Neutral

93

(6,320)

6,320

Neutral

88

(6,510)

6,510

Neutral

100

Balance sheet

Working capital requirements

CSPE receivable (Other receivables)

CSPE debt (Other current liabilities)

CSPE Financial receivable(1)

2,057

(1,122)

5,144

1,643

( 1,258)

5,875

1,647

(1,255)

4,185

Cash flow

Cash-in on energy billed

Increase in WCR – CSPE receivable

Change in WCR – Receivables and Payables

5,195

699

561

6,108

230(2)

94(2)

6,357

(9)

(2)


Financing & cash

management

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CSPE: CRE DELIBERATION OF 13 JULY 2016

As part of the reform of the financing of CSPE charges, the CRE is responsible for evaluating these charges

The deliberation of 13 July 2016 established the charges borne by EDF, which are recorded under 2015 and forecast for 2016 and 2017

The CRE established a deficit of compensation for EDF for 2015 of -€7.2m(1)

Upward revision of the forecast of EDF’s charges for 2016, mainly attributable to lower electricity market prices

The forecast of EDF’s charges for 2016 were originally published by the CRE in its October 2015 deliberation and were established at €6,662.5m

Pursuant to Decree No 2016-158 of 18 February 2016, the CRE updated these forecasts in its deliberation on 13 July 2016. This new forecast is €7,072.7m

■ Forecasted EDF charges for 2017: €7,430.9m

(1) Detailed calculation according to the items in the CRE deliberation of 13 July 2016: Contributions collected in 2015 – Charges recorded in 2015 – Balances prior to 2015

– (EDF 2015 CTSS contributions – Charges recognized EDF 2015 gas social arrangements): 6,321.4 - 6,270.7 - 56.0 - (16.9 - 15) = -€7.2m


Financing & cash

management

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CSPE: FINANCE ACT FOR 2017 (ALL OPERATORS)

(1) Finance Act No. 2016-1917 of 29 December 2016 for 2017

(2) Decree of 2 December 2016, confirming the amount of the receivable owed to EDF at the end of 2015 at €5.9bn, and establishing the final repayment schedule of this

debt by 2020

Special Purpose

Account “Energy

Transition”

€6,983m

National budget

“Public Energy

Service”

€2,545m

Or €9,528m

2017 Finance Act(1)

Public service

charges forecast for

2017

€5,679m

Public service

charges forecast for

2017

€2,326m

CRE deliberation of13 July 2016

Or €8,005m

Annual

contribution to

deficit

repayment

€1,228m

Payment of

related interest

€99m

Decree of 2 December 2016(2)

Or €1,327m

Other

expenses

€76m

Other expenses budgeted by the State

Or €196m

Other

expenses

€120m


Financing & cash

management

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CSPE: PARTIAL DISPOSAL OF THE RECEIVABLEMECHANISM AND FINANCIAL IMPACTS FOR EDF

Effective disposal

On 22 December 2016, EDF completed a partial sale without recourse of the CSPE receivable for a total amount of €1,501 million (26.4% of the total receivable), in accordance with the ministerial letter of 7 November 2016

Disposal of the receivable under the Dailly mechanism (without recourse) banking accepted by the State with Natixis and Société Générale

The amount sold (€1,501m in book value) includes:

The entire component of the receivable not included in the Dedicated Assets (ie €629m as of 31/12/2016)

A portion of the receivable placed in the Dedicated Assets (€872m out of €5,056m as of 31/12/2016)

Capital gain generated on sale of approximately €37m

Financial impact of the partial disposal

Reduction of the financial debt in the amount of the receivable not placed in the Dedicated Assets

Reinvestment in the Dedicated Assets of the disposed Dedicated Assets component

From 2017, EDF will receive 73.6% (share of the not yet allocated receivable) of the repayment flows of the receivable, fully allocated to the Dedicated Assets


Financing & cash

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REGULATED ASSET BASE IN FRANCE

(1) CPI: Consumer price index covering all of France excluding tobacco of year Y-1

K: CRCP reconciliation term, within a range of +/-2% (CRCP: The CRCP mechanism (Compte de Régularisation des Charges et des Produits) corrects for the

differences between forecast and effective expenses and products, from one year to another)

(2) Excluding financial assets and assets under construction and after regulatory restatement of investment subsidies

Under TURPE 3, tariffs included only industrial D&A’s. Under Turpe 4, provision for renewal as well as all D&A’s are included

(3) Difference between NBV of fixed assets and the sum of specific concession accounts, provisions for renewal, investment subsidies and where appropriate, financial

loans

Distribution

TransmissionNBV of fixed assets(2)

= €13.6bn

NBV of fixed assets(2)

= €49.4bn

Regulated equity(3)

= €5.6bn

6.125 %

Tariff increase

+1.1% as 01/08/2016

+2.71% as 01/08/2017

Indexation

IPC + K(1)

+1.4% as 01/08/2016

+6.56% as 01/08/2017

Regulated Asset Base

as of 01/01/2017

Nominal remuneration rate

before corporate tax Change

2.5%

6.1%


Financing & cash

management

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TURPE 5(1) TRANSMISSION AND DISTRIBUTION: PLANNING

TURPE 5 preparation for the 2017-2021 period ahead of the end the late of TURPE 4:

Tariffs for the use of existing public power networks, known as "TURPE 4 HTB" for the transportation network and "TURPE 4 HTA/BT" for distribution networks, came into force on 1 August 2013 and 1 January 2014 respectively, for a duration of approximately 4 years

Publication by the CRE(2) of decisions draft on TURPE 5 HTB et HTA/BT:

The CRE published its decision of 17 November 2016, following the opinion of the Higher Council of Energy (CSE) on 10 November. They were published in the Official Journal of 28 January 2017

The decisions provide for the synchronized entry into force of TURPE 5 HTB and HTA / BT on 1 August 2017

Filing by EDF SA on 3 February of an application for annulment before the Conseil d'Etat against the deliberations of the CRE concerning TURPE 5 Distribution adopted on 17 November 2016 and 19 January 2017 and published in Official Journal of 28 January 2017

(1) TURPE: Tarif d’utilisation des réseaux publics d’électricité (public electricity network access tariff)

(2) CRE: Commission de Régulation de l’Energie

(3) DSO: distribution service operators ; TSO: transmission service operators

2nd public

consultation by the

CRE on the tariff

structure

Consultations by the CRE

on final tariff table, the

tariff level and the tariff

level and the authorised

DSO(3) and TSO(3)

revenues

1st public

consultation by the

CRE on the tariff

structure

22 July 2015 –

25 September 2015

24 May 2016 –

24 June 2016

17 November

2016

27 July 2016 –

16 September 2016

CRE decision on

TURPE after

consulting the

Supreme Council of

Energy

19 October2016

Deliberation of the

CRE on the draft

decision on the

TURPE

Transmission and

Distribution

28 January

2017

Publication of the

deliberations TURPE

5 HTB et TURPE 5

HTA/BT at the

Official Journal


Financing & cash

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TURPE 5: MAIN PRINCIPLES

TURPE 5 largely takes up the main principles of TURPE 4:

Remuneration of the Regulated Asset Basis (GRT(2) and GRD(2))

Remuneration of Regulated Equity (GRD(2))

Coverage of the amortisation trajectory (GRT(2) and GRD(2))

Coverage of the OPEX “system”: losses, system services and energy purchases (GRT(2) and/or GRD(2))

Incentive on the OPEX “activities”, mainly personnel expenses and procurement costs (GRT(2) and GRD(2))

The CRE has reinforced the incentive regulation mechanisms (quality of supply, level of requirements in terms of quality of services, performance of the controllable OPEX, etc.)

After the increase of 6.76% for transport and 2.71%(1) for distribution at 1 August 2017, the tariffs will be adjusted every year starting in 2018, on 1 August, according to the formula CPI + K:

CPI = Consumer Price Index for all of 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 year)

(1) Recourse underway

(2) GRT: Gestionnaire de Réseau de Transport; GRD: Gestionnaire de Réseau de Distribution


Financing & cash

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TURPE 5 HTB (TRANSPORT)

Source: French Energy Regulation Commission Average figures for 2017-2020

Compensation of current assets at 4.6%

RAB remunerated at 6.125%

Coverage of the RTE amortisation trajectory

Opex activities: CRE incentive based on RTE proposal

Opex system: cost coverage

Interconnections and CRCP

Capital charges adopted by the CRE

Total authorised revenue adopted by the

CRE4,298

1,809

397

997

1,889

861

890

57


Financing & cash

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TURPE 5 HTA/BT (DISTRIBUTION)

Source: French Energy Regulation Commission Average figures for 2017-2020

CPR remunerated at 4.1%

RAB remunerated at 2.6%

Coverage of the ENEDIS amortisation trajectory

Opex activities: CRE incentive based on ENEDIS proposal

Opex system: cost coverage

FPE, CRL, CRCP

Capital charges adopted by the CRE

Total authorised revenue adopted by the

CRE13,464

4,440

290

4,610

4,704

2,714

1,486

239


Financing & cash

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Markets



ENERGY SAVING CERTIFICATES SYSTEM

Response to new requirements of the European Directive on energy efficiency

Article 30 of the energy transition law

Implemented in 2006,

reworked on 1 January

2015

National obligation for the third period between 2015 and 2017 set at 700 TWhc

Doubled vs. the second period

Complemented by an additional obligation of 150TWhc to benefit households in situation of energy poverty over 2016-2017

The obligation of the 4th period (2018-2020) has not yet been published but is expected to increase very significantly

The Order draft provides for an almost doubling of the total obligation

Enhanced targets, new

ambitions

An obligation imposed on energy suppliers to achieve energy savings for customers

Electricity, gas, heating, refrigeration, domestic fuel and automotive fuel

Actively promote energy efficiency to their customers

Households, local authorities, business and professionals

Involved parties

One of the main energy efficiency policy instruments in France

Mechanism

EDF is the first supplier with the largest obligation and intervenes in several areas:

Financial Incentive for energy renovations in accommodation

Aids to control energy consumption

Financing national programs

Cost of production / supply of certificates passed on to final customers


Financing & cash

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ENERGY TRANSITION LAW FOR GREEN GROWTH FROM THE PPE TO EDF’S STRATEGIC PLAN

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(1)

Submitted to the Energy Minister within 6 months of the approval of the PPE(1)

The Minister verifies the compatibility of the Strategic Plan with the PPE(1), 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 GC’s opposition is validated by the Minister of Energy, no investment decision without revision of the Strategic Plan

End of the first PPE period

Approval of the PPE

(Decree of 27 October 2016)

October 2016 End 2018End April 2017

Submission of the Strategic Plan to the Minister for

approval

The Government Commissioner may use his right to veto

End 2023

End of the secondPPE period


Financing & cash

management

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(1) PPE: Programmation Pluriannuelle de l’Energie

Appendices



OTHER ACTIVITIES: VERY STRONG OPERATIONAL PERFORMANCE



(3) DSSA: Development and Sale of Structured Assets

In millions of Euros 2015 2016 ∆%∆%

Org.(1)

Sales(2) 7,288 7,734 +6.1% +4.5%

EBITDA 1,750 2,091 +19.5% +22.0%

220 249

495729

217

252

818

861

2015 2016

1,750

2,091

EDF Trading

Other (Gas busines, etc.)

+6.1%(1)

+56.8%(1)

+16.4%(1)

EDFÉnergies Nouvelles

Dalkia+8.3%(1)

EBITDA

EDF Énergies Nouvelles

Growth in generation thanks to substantial commissioning in 2015 and 2016

Particularly strong DSSA(3) activity

Dalkia

Sustained performance mainly driven by business development and the effect of performance plans

Unfavourable change gas price

EDF Trading

Stronger volatility in European electricity and gas markets, mainly in the second half of 2016

Good performance of LNG trading


Financing & cash

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OTHER INTERNATIONAL: STRONG PERFORMANCE IN ALL GEOGRAPHIC SECTORS



(3) Polish activities of EDF EN and Dalkia part of the “Other activities” segment

251 253

220 253

138205

2015 2016

609

711

Other (Hongrie, Azia, Brazil, etc.)

+46.4%(1)

+9.2%(1)

Belgium

Poland(3)

+19.1%(1)

EBITDA

Belgium

Increase in wind offshore capacities (+19%) and service business

Restart end 2015 of Doel 3 and Tihange 2 nuclearplants

Ongoing strong activity of ancillary services

Poland

Higher electricity and heat volumes thanks to the better availability of the Rybnik plant and favorable effect of fuel prices

Increase in heat tariffs and the connection of new customers

Other

Asia: end of Figlec concession in September 2015

Brazil: positive impact of annual PPA-price review, combined with positive market effect

In millions of Euros 2015 2016 ∆%∆%

Org.(1)

Sales(2) 5,827 5,286 -9.3% -6.8%

EBITDA 609 711 +16.7% +21.2%


Financing & cash

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UNITED KINGDOM: QUARTELY NUCLEAR OUTPUT

15.8

30.3

44.5

60.6

15.7

30.9

48.0

65.1

Q1 Q2 Q3 Q4

+2.0 %

+7.4 %

-0.6 %

+7.9 %



In TWh


Financing & cash

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UNITED KINGDOM: UPSTREAM/DOWNSTREAM ELECTRICITY BALANCE

(1) Including wind output and purchase obligations

65.1

2.75.3

5.7

Coal

Nuclear

Other(1)

GasRenewables

+4.5

-12.9

-0.1-0.9

+0.1

Output/Purchases -9.379.2

34.8

14.3

1.0

13.0

16.1

Centrica (20%)

SME & IC

Résidential

Structured Trades

-9.3Sales 79.2

Net wholesale Market & ECC

-4.9

-3

+0.9

-1.8

-0.5

∆ 2016vs 2015

∆ 2016vs 2015

In TWh


Financing & cash

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GREAT BRITAIN CAPACITY AUCTION RESULTS FOR EDF ENERGYResults from this year’s and previous capacity market auctions:

All capacity agreements for 1 year unless otherwise stated

1) Combined Cycle Gas Turbine

2) Open Cycle Gas Turbine

3) 3 year refurbishing agreements that were reverted to 1 year agreements

4) 15 year capacity agreement for new build battery

N/A: Not applicable

Nuclear CCGT(1)

Demand-

Side

Response

OCGT(2)Coal BatteryClearing price

£/kW/year

2014 Q-4 (2018/2019)

2016 Q-4 (2020/2021)

2015 Q-4 (2019/2020)

2017 Q-1 (2017/2018)Provisional results

All 16 units (7.9GW)


19.4 (2012/2013 prices)

18.0 (2014/2015 prices)

22.5 (2015/2016 prices)

7.0 (no indexation)



7 of 8 units(3)

(3.1GW)

3 of 8 units(1.3GW)

All 8 units (3.5GW)

0 unit

All 3 units(1.2GW)

All 3 units(1.2GW)

All 3 units(1.2GW)

All 3 units(1.2GW)

All 2 units(37MW)

All 2 units(38MW)

All 2 units(38MW)

All 2 units(37MW)

N/A

1 unit(4)

(47MW)

N/A

N/A

N/A

N/A

2 units(9.6MW)

N/A


Financing & cash

management

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EDISON: UPSTREAM/DOWNSTREAM ELECTRICITY AND GAS BALANCES

In TWh

11.6

28.0

51.6

0.5

14.6

6.8

7.3

6.5

8.1

16.8

3.6

70.8

Thermal

Wholesale & other

purchases

Hydro and renewable

End Clients

Wholesale markets & other

Domesticpurchases

LT imports & reserves

Domestic production

Wholesale markets &

other

Residentials & industrial

customers

Thermoelectric

IPEX

SalesOutput/Purchases

SalesOutput/ Purchases

+1.8

∆ 2016vs 2015

+1.8

∆ 2016vs 2015

∆ 2016vs 2015

∆ 2016vs 2015

91.2 91.2 21.9 21.9+4.3 +4.3

+2.7

-0.1

-0.8

+7.0

+0.3

-5.5

+2.6

+1.7

+2.2

+0.5

+1.6

0.0

Electricity(1) Gas

In Bcm

(1) Excluding trading volumes


Financing & cash

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Markets

Appendices

Markets


AVERAGE SPOT PRICES IN 2016

The coupling of the markets remains limited by the capacities available at the borders. The average price differences observed in the CWE region are less significant since the introduction of the flow-based

Price: average of the 2016 spot market prices for France (Epex), Germany (Epex), United Kingdom (N2EX), Spain (OMEL), Netherlands (APX), Belgium (Belpex) And Italy (GME)

€42.8/MWh

€36.7/MWh

€29.0/MWh

€32.2/MWh€49.1/MW

€39.7/MWh

€36.6/MWh

-€7.8/MWh(1)

€-6.6/MWh(1)

-€2.6/MWh(1)

-€1.7/MWh(1)

-€9.5/MWh(1)

-€8.1/MWh(1)

-€10.7/MWh(1)

1,600(2)

1,000(2) 1,800(2)

1,100(2)

3,100(2)

1,600(2)

1,600(2)

(3)

(3)

1,300(2)

(3)

Available

commercial

capacity

(1) Change compared to average prices in 2015

(2) Average annual NTC (Net Transfer Capacity) as calculated by RTE in January 2016 for 2017

(3) Implementation of the flow-based coupling mecanism from 21 May 2015 for all CWE (France, Benelux, Germany)


Financing & cash

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Markets


CROSS-BORDER ELECTRICITY TRADE BALANCE

Source: RTE, data for December 2016 estimated because not yet available

(1) Continental Western Europe (Germany, Belgium, France, Luxembourg and the Netherlands)

2015

2016France as an exporter

France as an importer

Positive trade balance for France on 2016 at about 40TWh, net down about 21TWh compared to 2015. This drop is mainly focused on the end of the year and is explained by the weakest avaibility of the nuclear fleet, due to complementary testing demanded the Nuclear Safety

Authority on some reactors, requiring the arrest of exports or even greater reliance on imports.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec


Financing & cash

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Markets

-1,0

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

In TWh


FRENCH POWER TRADE BALANCES AT ITS BORDERS

Source: RTE, data for December 2016 estimated because not yet available

1) Rounded to the nearest tenth

2) CWE flow-based coupling zone composed of Germany, Belgium, France, Luxembourg and the Netherlands, set up in May 2015

n/a: not available


Financing & cash

management

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Markets

2015 2016

In TWh(1) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total

CWE(2)

exports 3.9 7.1 7.6 3.7 22.4 1.8 5.6 2.2 n/a n/a

imports 5.7 3.5 2.0 4.4 15.7 4.9 2.0 3.3 n/a n/a

balance -1.8 3.6 5.6 -0.7 6.7 -3.1 3.6 -1.0 -4.8 -5.4

United Kingdom

exports 3.8 4.3 4.3 3.5 15.9 4.3 3.9 3.5 n/a n/a

imports 0.6 0.2 0.3 0.7 1.8 0.3 0.2 0.8 n/a n/a

balance 3.2 4.0 4.1 2.8 14.1 3.9 3.7 2.7 -0.3 10.0

Spain

exports 1.4 2.2 1.9 3.7 9.3 2.8 2.9 4.2 n/a n/a

imports 1.1 0.2 0.1 0.5 1.9 1.7 1.4 0.3 n/a n/a

balance 0.3 2.0 1.8 3.3 7.4 1.1 1.5 3.9 1.4 7.9

Italy

exports 5.8 4.2 4.2 5.7 20.0 6.1 4.6 4.2 n/a n/a

imports 0.2 0.1 - 0.1 0.4 - 0.1 0.2 n/a n/a

balance 5.6 4.2 4.2 5.6 19.6 6.1 4.5 4 2.0 16.6

Switzerland

exports 6.6 6.4 5.9 6.9 25.8 6.6 4.1 2.4 n/a n/a

imports 2.2 4.6 3,9 1.2 11.9 0.8 2.5 2.2 n/a n/a

balance 4.5 1.8 2.1 5.7 14.0 5.7 1.7 0.2 2.7 10.3

TOTAL

exports 21.5 24.3 24.1 23.6 93.4 21.5 21.2 16.6 12 71.2

imports 9.7 8.7 6.3 6.9 31.6 7.8 6.3 6.8 11 31.9

balance 11.8 15.5 17.7 16.6 61.8 13.7 14.9 9.8 1 39.3


FORWARD ELECTRICITY PRICES IN FRANCE, THE UK, ITALY AND GERMANY (Y+1) FROM 01/01/2015 TO 31/12/2016

20

25

30

35

40

45

50

55

60

65

70

Electricity - annual baseload contract France (EEX) Electricity - annual baseload contract Germany (EEX)

Electricity - annual baseload contrat 1-April UK in €/MWh Electricity - annual baseload contract Italy (EDF Trading)


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FORWARD ELECTRICITY PRICES IN FRANCE, THE UK, ITALY AND GERMANY (Y+2) FROM 01/01/2015 TO 31/12/2016

10

20

30

40

50

60

70

Electricity - annual baseload contract France (EEX) Electricity - annual baseload contract Germany (EEX)

Electricity - annual baseload contrat 1-April UK in €/MWh Electricity - annual baseload contract Italy (IPEX)


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-10

0

10

20

30

40

50

60

70

80

90

Spot spread

Forward spread

FRANCE/GERMANY SPREAD FROM 01/01/2015 TO 31/12/2016

Note: Over the observed period, the France/Germany spread reached its minimum on the 14 July 2015 at -€6,95/MWh, and its maximum on 7 November 2016 at €87,66/MWh

Daily spread in €/MWh over 5 rolling days


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0

20

40

60

80

100

120


2015 2016

FRANCE: BASELOAD ELECTRICITY SPOT PRICES

Source : EPEX

At €36.7/MWh, the average spot price in 2016 was down €1.7/MWh compared to 2015. The spot price started the year at a relatively low level, due to fuel prices and a relatively mild winter in 2015-2016. The price increases at the end of the year, in a context marked by a tense supply/demand balance, mitigated the year’s average drop.

Min base 2015 = €11.9 /MWh

Max base 2015 = €64.7/MWh

Max base 2016 = €125.7/MWh

Min base 2016 = €7.3/MWh

Daily average in €/MWh


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0

20

40

60

80

100

120

140

160

180

200


2015 2016

FRANCE: PEAKLOAD ELECTRICITY SPOT PRICES

Source : EPEX

Daily average in €/MWh

The average spot price for 2016 was €45.7/MWh, a €0.9/MWh drop compared to 2015. This drop was driven primarily by milder temperatures and a fall in fuel prices. The peak price had some spikes in November, due to low temperatures in that month, which, beyond a heavy reliance on thermal means using more expensive fossil fuels, also created tensions in the supply/demand balance.

Max peak 2015 = €77.5/MWh

Min peak 2015 = €19.1/MWh

Max peak 2016 = €189.2/MWh

Min peak 2016 = €8.1/MWh


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30

40

50

60

70

80

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16

COAL PRICES (Y+1) FROM 01/01/2016 TO 31/12/2016

In $/t

Forward prices for coal were up to more than $29/t, due to the drop in the offer from China and the rise in

demand from Asian countries, as well as the rise of the rouble in relation to the dollar.

The price for a tonne of coal for delivery in 2017 was $70.3/t at the end of 2016.


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20

40

60

Jan-16 Jan-16 Mar-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16

BRENT PRICES(1) FROM 01/01/2016 TO 31/12/2016

(1) Brent spot price (M+1)

Oil prices ended the year at $56.8/bbl, an increase of $19.6/bbl compared to the beginning of the year. The year

was marked by high price volatility, as the market reacted to geopolitical events and to meetings held by OPEC

and other producer countries on the concerted control of supply faced with sluggish demand.

In $/bbl


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11

14

17

20


GAS PRICES(1) (Y+1) FROM 01/01/2016 TO 31/12/2016

(1) Price of France PEG Nord gas

In €/MWh

The price of annual natural gas contract in France was €15.5/MWh on average, down 24% compared to the

previous period, due to the fall in the price of oil and the relatively high stock level at the European level.

It nevertheless ends the year up


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3

4

5

6

7

8

9


CO2 PRICES (Y+1) FROM 01/01/2016 TO 31/12/2016

In €/t

The price of the emission certificate for delivery in December 2017 was €6.6/t at end 2016,

down €1.6/t compared with begin of the year. This drop hides a contrasting trend over the course of the year.

The year was notably marked by discussions, eventually not followed up at this stage, on the possible

introduction of a floor price in France, and by the increased demand for thermal fires in Europe


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CLEAN DARK SPREAD(1) IN THE UK (DAY AHEAD)

(1) Spread of a coal-fired plant running at full capacity, including the cost of coal and CO2 emissions (excluding green certificates), assuming the market is efficient

In £/MWh

+ Electricity price

Market spread = – API 2 Price x market estimate of the coal volume / MWh of electricity– (EUA price + Governmental tax price) x market estimate of carbon emissions / MWh

of electricity


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12

17

22

27

32


183.6

74.2

53.8

137.8

176.6

84.3

60.2

169.9

Q1 Q2 Q3 Q4

147.0

104.1 100.0

125.0

143.8

106.699.1

133.1

Q1 Q2 Q3 Q4

FRANCE: ELECTRICTY AND GAS CONSUMPTION

(1) Source: RTE, November 2016 Monthly Overview of Electricity in France for 2015 and Q1, Q2, Q3 data – Q4 2016 data: RTE for October and November, ETR and Corsica for December 2016

(2) Source : Base Pégase, Direction générale de l'énergie et de matières premières (DGEMP), Ministry of Ecology, development and Sea, Smart GRT gaz and TIGF

In TWh

Electricity consumption in France rose (+1,4% vs. 2015) mainly due to wheather (spring and year-end colder than in 2015) and lip year effect

Gas demand significantly increased (+9% vs. 2015), mainly due to colder temperatures and to a lesser extent to the increased demand for gas-fired power stations from August

Electricity(1) Gas(2)


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83.3

71.470.2

77.8

82.9

70.868.9

77.8(1)

Q1 Q2 Q3 Q4

201.8

90.6

60.6

137.3

195.6

93.9

52.8

160.5(1)

Q1 Q2 Q3 Q4

UNITED KINGDOM: GAS AND ELECTRICITY CONSUMPTION

Source: BEIS (Historical data revised every quarter)

(1) Estimates from EDF Energy

In TWh

Electricity consumption was down by 0.8% (-2.3TWh) from 2015, driven by lower consumption and higher temperatures

Natural gas consumption in the United Kingdom was up by 2.5% (+12.5TWh) from 2015 due to a significant amount of coal capacity coming off the grid.

Electricity Gas2015

2016


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ITALY: ELECTRICITY AND GAS CONSUMPTION

Source: Terna data restated by Edison

Source: Ministry of Economic Development (MSE), Snam Rete Gas data restated by Edison on the basis of 1 Bcm = 10.76TWh

in TWh

Electricity consumption was down (-2.1%) due to exceptional temperatures in Q3 2015. The decrease in net imports was balanced by the increase in national generation (+1.2%), enhanced by increased thermal and wind generation

Gas demand increased by +5.2% due to increased thermal generation, linked to lower hydro and coal generation. Consumption in industrial markets also increased (+5%).

254.4

124.8 129.2

211.8

253.7

130.7 131.7

241.3

Q1 Q2 Q3 Q4

Electricity(1) Gas(2)2015

2016

79.2

75.9

78.278.5

73.9

80.0

77.9

Q1 Q2 Q3 Q4


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83.6


4

8

12

16

20

24

January February March April May June July August September October November December

Average observed 2015 temperatures

Average observed 2016 temperatures

Average normal temperatures

AVERAGE MONTHLY TEMPERATURES(1) IN FRANCE

Source: Météo France

(1) Data based on a basket of 32 cities

In °C

In 2016, the spring was colder and temperatures were warmer from August to October than in 2015.

The average temperature decreased by 0.5°C vs. 2015


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AVERAGE MONTHLY TEMPERATURES IN LONDON(1)

Source: Météo France

(1) Representative of EDF Energy

2

4

6

8

10

12

14

16

18

20

22

January February March April May June July August September October November December

2015 2016

In °C


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Appendices

Documents

Présentation PowerPoint - EDF · ANNUAL RESULTS 2016 3 12.7 11.7 12.4 11.8 2015 2016 2015 2016 (1) Net investments excluding Linky, new developments and assets disposals (2) Linky