EDF : EDF : 2012 Full Year Results : Strong results and commitments delivered

EDF : EDF : 2012 Full Year Results : Strong results and commitments delivered

    14 February 2013

                            2012 full-year results

                   Strong results and commitments delivered

  Confirmation of the solidity of EDF's integrated and diversified business

  *EBITDA: €16.1 billion, +7.7% of which 4.6% organic growth

  *Net income excluding non-recurring items: €4.2 billion, +16.9% 

  *Net income - Group share:€3.3 billion, + 5.3%

  *Allocation in 2013 of  the CSPE receivable  to dedicated assets,  bringing 
    coverage of eligible provisions to 100% starting as early as 2013^[1]
  *Net financial debt/EBITDA: 2.4x^[2] 
  *Proposed dividend of €1.25/share for  the 2012^[3] financial year, i.e.  a 
    payout ratio of 55% of net income excluding non-recurring items

2013: a decisive year

  *Launch of "Spark": plan targeting savings of €1 billion as soon as 2013

  *EBITDA: between 0% and 3% in organic growth excluding Edison

  *Edison:  expectation  for  recurring  EBITDA  in  line  with  2012,   with 
    fluctuation in results  possible in  2013-2014 linked  to calendar  effect 
    from the renegotiation of gas supply contracts

  *Net investments stable at €12 billion

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

  *Payout ratio: between 55%  and 65% of  net income excluding  non-recurring 

Henri Proglio, Chairman and CEO of EDF  said: "EDF's results were up in  2012, 
underscoring a  third consecutive  year  of progress  during which  the  Group 
delivered on its commitments. The Group will invest €12 billion across all its
businesses as part of its resolute commitment to rising to the challenges that
lie ahead  in 2013.  These investments  will enable  the Group  to respond  to 
industrial  issues,  while  continuing  to  improve  the  company's  financial 
structure, which goes hand in hand in ensuring the long-term health of the EDF
industrial model, a model that has once again proven its relevance."

EDF's Board of  Directors met on  13 February 2013  under the chairmanship  of 
Henri Proglio  and  approved the  financial  statements and  the  consolidated 
accounts for the financial year ending on 31 December 2012.

                   Change in EDF Group's full-year results

                      2011 restated  2012    Change vs. 2011   Organic growth
in millions of euros                          restated (%)          (%)
Sales                    65,307     72,729        +11.4             +5.8
EBITDA                   14,939     16,084        +7.7             +4.6
EBIT                      8,452     8,245        ( 2.4)
Net income - Group
share                     3,148     3,316         +5.3
Net income excluding
non-recurring items       3,607     4,216         +16.9

Restated data: in the 2012 consolidated accounts, data for 2011 were  restated 
for the impact of the implementation of the IAS 19 option (SoRIE method).

                          31/12/2011   31/12/2012    31/12/2012
                                     (pro forma^[4])
Net financial debt           33.3         39.2          41.6
(in billions of euros)
Net financial debt/EBITDA    2.2x         2.4x          2.6x

                            Strong results in 2012

In 2012,  the Group  recorded an  increase  in its  operating results  amid  a 
deteriorated  economic  and  energy  environment  similar  to  that  of  2011, 
underscoring the solidity  of its integrated  and diversified business  model. 
All commitments were delivered, with, in particular, an EBITDA up 4.6%^[5] due
to the strong performance from France (organic growth of 8%), from Italy  with 
arbitrations obtained  on Edison's  gas supply  contracts (organic  growth  of 
23.1%) and, to a lesser extent,  from the Other activities segment  reflecting 
the strong growth of EDF Energies Nouvelles.

On the back of the good  performance of EDF Energy's generation fleet,  EBITDA 
in the United Kingdom was up  7.5% in organic terms excluding the  anticipated 
effect of  the fair-value  adjustment related  to the  acquisition of  British 
Energy. EBITDA for the Other International segment was down 19.5%, due to  the 
unfavourable impact of economic conditions and regulatory constraints.

While in  2011  the  sharp increase  in  nuclear  output in  France  offset  a 
substantial fall  in hydropower  output, 2012  was marked  by an  increase  in 
outage extensions on  account of technical  incidents and additional  controls 
and works. The drop in output from 16.2 TWh to 404.9 TWh was offset,  however, 
by an increase  in hydropower      (+7.7 TWh) and  fossil-fired (+3.1  TWh) 
output and by purchases on the wholesale markets.
In  2013,  the  planned  outages  schedule  will  be  busier  (seven   10-year 
inspections) than in 2012 (six 10-year inspections). However, the strengthened
management of planned outage  durations enables the Group  to target a  rising 
nuclear output to a range of between 410 TWh and 415 TWh.

In the United Kingdom, EDF  Energy's nuclear output was  the best in the  last 
seven years with 60 TWh (+4.2 TWh  compared with 2011). Similar to the  French 
nuclear fleet, 2013 will be marked by  a higher number of planned outages  but 
EDF Energy's  ambition  is nevertheless  to  replicate this  strong  operating 

The Synergies & Transformation programme is ongoing with gains of €878 million
in 2012, bringing savings to date to  63% of the total target of €2.5  billion 
by 2015.

                        Strategic development in 2012

In 2012,  EDF  Group  continued  its strategic  development  with  a  view  to 
improving its growth profile.

As such, EDF took exclusive control of Edison,  on 24 May 2012, as part of  an 
agreement reached with its Italian  partners, which bolstered the Group's  gas 
strategy and strengthened its role as a major player in Italy. After the  2012 
mandatory public offer, the Group holds  99.5% of the voting rights and  97.4% 
of Edison's share capital at  31 December 2012, for a  total cash out of  €969 

In 2012, EDF Energies Nouvelles won  offshore wind energy calls for tender  in 
Saint-Nazaire,  Courseulles-sur-Mer  and  Fécamp  in  France.  These  projects 
represent close to  1,500MW in new  capacity, which will  be installed  after 
2015 and go hand  in hand with EDF's  ambitious industrial strategy that  will 
lead to the  creation of around  7,500 direct and  indirect jobs. In  December 
2012, EDF  Energies Nouvelles  committed to  acquiring 20%  of the  32  French 
on-shore wind farms previously operated  by Iberdrola, with a total  installed 
capacity of 321.4 MW.

EDF also completed the buyback of EnBW's minority shareholdings in the  Polish 
companies ERSA and Kogeneracja (32.45%  and 15.59%, respectively), as set  out 
in the  contract  for  the  sale  of  EDF's stake  in  EnBW  to  the  Land  of 
Bade-Wurtemberg on 6 December 2010. With this deal, EDF Group now holds 97.36%
of ERSA (the remaining  2.64% being held by  the company's employees) and  50% 
plus one share in Kogeneracja.

On 1 April 2012, Electricité de  Strasbourg acquired a 100% stake in  Enerest, 
which holds the "Gaz  de Strasbourg" brand, the  historic gas supplier of  the 
Strasbourg economic zone.

              Net income excluding non-recurring items up 16.9%

Net income - Group share stands at €3,316 million, up 5.3% compared with  2011 
The Group's net income excluding  non-recurring items reached €4,216  million, 
up 16.9%, compared with  2011 restated. It includes  financial income of  €629 
million due to  the recognition of  financing costs from  the cumulative  CSPE 
receivable at end-2012.
Non-recurring items after tax in 2012 had an unfavourable impact on net income
- Group share for €900 million  (notably, impairments on Alpiq and CENG).  The 
tax expense increased from €1,336 million  in 2011 to €1,586 million in  2012, 
as a result of the  increase in income before tax  and the higher tax rate  in 
France. The  effective tax  rate rose  to 32.5%  in 2012  from 28.6%  in  2011 

                              Dividend for 2012

In its meeting held on 13 February  2013, EDF's Board of Directors decided  to 
propose at  the Shareholders'  Meeting taking  place on  30 May  2013 a  total 
dividend of €1.25 per share, corresponding to a 55% payout ratio of net income
excluding non-recurring items,  in line with  the published target  of 55%  to 
65%. The remaining dividend to be paid  is €0.68 per share, given the  payment 
of an interim dividend of €0.57 in  December 2012. Subject to approval at  the 
Shareholders' Meeting, each shareholder will be  offered to opt for a  payment 
in new EDF stock for an amount of €0.10 per share on the remaining dividend to
be paid.

                       Continued operating investments

Net investments reached €11.8 billion^[6] for a published target of €12
billion, which was €1.2 billion higher than in 2011.

In  France,  the   Group's  investments   continue  in   ERDF  networks   with 
approximately €3 billion, up 13% and  in nuclear maintenance with nearly  €2.7 
billion, up 32% compared with 2011.
Unregulated activities  account  for  nearly  70%  of  the  Group's  operating 
investments and are equally split between maintenance and development.
In 2012, the Group invested nearly €3.9 billion versus €3.3 billion in 2011 in
development, including 28% in  EDF Energies Nouvelles and  36% in Nuclear  New 

In 2013, the Group is targeting stable net investments compared with 2012.

                      Financial debt objective delivered

At 30 June 2012, the Group reached  a net financial debt/EBITDA of 2.5x,  i.e. 
the maximum  amount set  by the  Group,  and indicated  that it  was  pursuing 
efforts to find a solution to the question of the CSPE deficit.
On 14 January 2013, the Group announced that it had reached an agreement  with 
the French State for paying  back the receivable from  the CSPE deficit at  31 
December 2012 (approximately €4.3  billion) and financial  costs borne by  the 
Group (approximately  €0.6  billion).  This receivable  totalling  about  €4.9 
billion, in accordance with this  agreement, will be paid  back in full by  31 
December 2018,  following a  gradual  debt repayment  schedule and  will  bear 
interest at market rates.

The Group obtained the authorisation to allocate the entire receivable to  the 
dedicated assets^[7], which will be  used in securing financing for  long-term 
nuclear expenses. In compliance  with regulations, this  was delivered by  the 
French Ministry of Finance and the Economy  as well as the French Ministry  of 
Ecology, Sustainable Development and Energy on 8 February 2013. 

Following this allocation, the coverage ratio of commitments will exceed  100% 
starting in 2013, which is  well before the 30 June  2016 deadline set out  in 
law. Accordingly, EDF was  able to subtract around  €2.4 billion in  financial 
assets from its dedicated assets portfolio and thus is able to reduce its  net 
financial debt by the same amount.
Net financial debt at 31 December 2012, pro forma, stood at €39.2 billion. The
€5.9 billion increase from  31 December 2011 was  attributable to the  Group's 
ongoing development  in terms  of operating  investments and  the takeover  of 
Edison (total impact of €3.3 billion  in 2012). The net financial  debt/EBITDA 
pro forma ratio restated is 2.4x, in line with targets announced.

In 2012, the Group issued several bonds  with an average maturity of 10  years 
for €4 billion,  a 15-year bond  for €1 billion  and a 25-year  bond for  £500 
million. These issuances  are an  integral part  of the  financial policy  EDF 
began two years ago aiming to extend the average maturity of the Group's gross
debt and to reduce the average coupon.  The average maturity was 8.5 years  at 
31 December 2012 versus 9.2^[8] years at 31 December 2011, accounting for  the 
consolidation of Edison, whose average debt maturity is 1.8 years. The average
coupon dropped to 3.7% in 2012 from 4.3% in 2011.

The Group continued its balance sheet optimisation efforts in early 2013  with 
the launch of a record-setting hybrid debt issuance for the equivalent of €6.2
billion in three  currencies - euros,  sterling and US  dollars. This type  of 
issuance is an ideal asset-liability  management tool given the long  duration 
of EDF's assets and the long lead times of its industrial projects. The  gross 
average coupon of these hybrid issues came out to 5.25% and 3.7% after  taxes, 
well below the Group's cost of capital. This issuance will be booked  directly 
in equity in the Group's 2013 consolidated accounts. Consequently, the related
cost will not impact the Group's net income excluding non-recurring items, but
will be directly booked as equity.

                           2013 financial outlook:
                        a decisive year for the Group

When it released  its third  quarter sales, the  Group announced  that it  was 
working  on  the  assumption  that  its  2013  EBITDA  would  be  stable  amid 
deteriorating business conditions. In 2013, the Group aims to deliver:

  *EBITDA: between 0% and 3% organic growth excluding Edison

  *Edison:  expectation  for  recurring  EBITDA  in  line  with  2012,   with 
    fluctuation in results possible in  2013-2014 linked to a calendar  effect 
    from the renegotiation of gas supply contracts

  *Net financial debt/EBITDAratio: between 2x and 2.5x

  *Dividend: payout ratio  of between  55% and  65% of  net income  excluding 
    non-recurring items

These objectives integrate the impact of the "Spark" savings programme, which
will result in a 5% drop in the Group's external costs as early as 2013, for a
total of €1 billion.

EDF Group is continuing its efforts to resolve a number of structural topics
for the financial equation of the Group in 2013 and will present a detailed
review of its medium-term financial trajectory before the end of the year.

                       Group's main results by segment

In 2012, the Group  generated 53.8% of  its sales and 61.7%  of its EBITDA  in 
France activities. Activities  outside of  France accounted for  46.2% of  its 
sales and 38.3% of its EBITDA.

           France: 8% EBITDA growth, driven by regulated activities

in millions of euros   2011 restated*  2012  Organic growth (%)
Sales                      37,171     39,120        +5.2
EBITDA                     9,196      9,930         +8.0
o/w unregulated EBITDA     6,116      6,209          
o/w regulated EBITDA       3,080      3,721          

*Data restated for the impact of the IAS 19 option (SoRIE method).
In France,  sales reached  €39.1 billion,  reflecting organic  growth of  5.2% 
compared with 2011.  EBITDA stood at  €9,930 million, i.e.  organic growth  of 

In the regulated activities segment^[9],  EBITDA rose to €3,721 million,  i.e. 
organic growth of 20.8%.  The increase came  from a volume  effect due to  the 
weather and the  network component  of tariffs (TURPE).  Average outage  times 
(excluding RTE) were close to those in 2011 (75 minutes), despite an  increase 
in major weather events.

In the unregulated activities segment, EBITDA expanded to €6,209 million, i.e.
organic growth of 1.5%,  reflecting the drop in  nuclear output to 404.9  TWh. 
This was partly offset by the increase in hydropower output. EBITDA also  grew 
because of  favourable  effects  related  to  the  end  of  certain  long-term 
contracts, such as Eurodif,  the end of  TaRTAM and, to  a lesser extent,  the 
increase in regulated sales tariffs. 

                              Outside of France

          United Kingdom: nuclear output at highest level in 7 years

in millions of euros              2011 restated* 2012  Organic growth (%)
Sales                                 8,568      9,739        +6.4
EBITDA before fair value impact**     1,820      2,089        +7.5
EBITDA                                1,942      2,054       (1.5)

*Data restated for the impact of the IAS 19 option (SoRIE method)
**From acquisition of British Energy

In the United Kingdom, sales totalled €9,739 million in 2012, a gain of  13.7% 
compared with  2011  representing  organic  growth  of  6.4%.  It  includes  a 
favourable forex effect for €626 million compared with 2011.
EBITDA of €2,054 million, a 5.8% increase on 2011 includes a favourable  forex 
effect (+€142  million) between  2011  and 2012.  EBITDA was  marginally  down 
(1.5%) in organic terms compared with 2011,  due to the end of the  favourable 
effect of the  fair value revaluation  related to the  acquisition of  British 
Energy (-€35 million  in 2012 vs.  +€122 million in  2011). Restated for  this 
impact, EBITDA organic  growth in  the United  Kingdom would  have been  7.5%. 
Operating performance  was  marked by  both  a  4.2 TWh  increase  in  nuclear 
generation bringing  output to  60.0 TWh  (+7.5%), which  stands as  the  best 
performance in the past seven  years, and a 37%  jump in output by  coal-fired 
plants. Lastly,  amid a  highly-competitive market,  EDF Energy  retained  its 
market share for  electricity while the  gas volumes sold  in the B2C  segment 
expanded 20% due to cold weather.
This excellent  performance  by the  generation  fleet, combined  with  rising 
wholesale prices, produced a favourable volume effect on margins, despite  the 
increased cost of regulatory programmes promoting energy efficiency.

In December 2012, EDF Energy announced it was extending the lifespan by  seven 
years of the Hunterston B  and Hinkley Point B  plants to 2023. As  previously 
announced, EDF Energy's  goal is to  be granted extensions  for the  operating 
life of AGRs by an average of seven years and twenty years for Sizewell B (PWR
technology). Moreover,  in  the  accounts,  the  lifespan  extensions  of  AGR 
reactors (Advanced Gas-Cooled Reactor) had a positive effect on Group EBIT via
a drop in amortisation/depreciation of €225 million compared with 2011.

    Italy: favourable impact of gas contract renegotiation and arbitration

in millions of euros 2011   2012  Organic growth (%)
Sales                6,552 10,098       +10.8
EBITDA                592  1,019        +23.1

The Italy segment primarily includes EDF Fenice and Edison, in which EDF now
holds 97.4% of the capital^[10], which has been fully-consolidated since EDF
took control on 24 May 2012.

In Italy, sales generated by the  Group amounted to €10,098 million, up  54.1% 
and 10.8% in organic growth. Edison  sales increased in organic terms by  €721 
million.  Sales  in  electricity  activities  benefited  from  a  price  hike, 
partially offset by  a negative volume  effect from end-customers  and on  the 
wholesale markets. Regarding the hydrocarbon business, sales grew as commodity
prices and  overall  volumes  increased:  volumes  sold  were  higher  on  the 
wholesale, industrial and residential markets and generation volumes increased
in E&P related to commissioning of facilities in 2011.

The EBITDA  of the  Italy reporting  segment stood  at €1,019  million,  72.1% 
higher than in 2011 and 23.1% in organic growth.
Edison's contribution to Group EBITDA rose to €918 million in 2012 versus €480
million in 2011, i.e. organic growth  of €148 million, i.e. +30.8%. EBITDA  of 
the electricity business declined, mostly because of shrinking unit margins on
the end-customer market. However,  the contribution of hydrocarbon  activities 
to EBITDA was up markedly versus 2011,  notably the E&P segment grew by  34.5% 
mainly in Egypt and Italy. In addition, arbitrations on long-term natural  gas 
contracts in September and  October 2012 with Rasgas  (Qatar) and ENI  (Libya) 
were favourable for Edison and boosted EBITDA by €680 million. However,  these 
activities continue to  be heavily  penalised by  falling gas  margins on  the 
end-customer segment. In the  fourth quarter of 2012,  the new round of  price 
revisions began  with the  biggest  gas suppliers  (Gazprom, Rasgas,  ENI  and 
Sonatrach) in order to restore profitability to these contracts.

Other International: unfavourable impact of economic and regulatory conditions

in millions of euros 2011  2012  Organic growth (%)
Sales                7,501 7,976        +5.5
EBITDA               1,280 1,067       (19.5)

Sales in the  Other International  segment came  out to  €7,976 million,  i.e. 
organic growth of 5.5%. EBITDA stood at €1,067 million, down 19.5% in  organic 
EBITDA in Poland was hit by  falling electricity margins, which were  affected 
by increasing  fuel prices  and  the drop  in  cogeneration and  green  energy 
support certificates.
Belgium had  unfavourable effects  from new  regulatory mechanisms  that  took 
effect in the first half of 2012, and outages at Doel 3 and Tihange 2.
In other countries (Asia, United States, Brazil, etc.), EBITDA was down  under 
the effect of a maintenance outage in  two gas turbines in Brazil and  falling 
nuclear output in the United States combined with shrinking margins  resulting 
from the development of shale gas.

        Other activities: good performance from EDF Energies Nouvelles

in millions of euros 2011  2012  Organic growth (%)
Sales                5,515 5,796        +2.8
EBITDA               1,929 2,014        +4.7

Sales from the Other activities  segment reached €5,796 million, i.e.  organic 
growth of 2.8%.
EBITDA rose to €2,014 million, up 4.7% in organic terms.
EDF Trading's EBITDA fell 20.1%, due  to less favourable market conditions  in 
North America compared with 2011.
EDF Energies Nouvelles' EBITDA progressed  by 20.6% in organic terms  compared 
with 2011, with 1,550 MW in commissioned capacity. With 4,208 MW in  installed 
capacity, EDF Energies Nouvelles also exceeded its 2012 target of 4,200 MW.
EDF Energies Nouvelles' EBITDA growth came as a result of wind and solar power
business and commissioning of  new capacities in 2012  as well as a  full-year 
effect  of  commissioning  in  2011  and  favourable  weather  conditions.  In 
addition, business  was strong  in 2012  for Development-Sales  of  Structured 
Assets with a 26% increase compared with 2011.


  *Authorisation of  the  allocation  of the  CSPE  receivable  to  dedicated 

In a letter of understanding dated 8 February 2013, the Group was authorised
to allocate the entire receivable to assets dedicated to financing long-term
nuclear expenses. In accordance with regulations, this allocation received the
authorisation of the French Ministry of Finance and the Economy and the French
Ministry of Ecology, Sustainable Development and Energy. The dedicated assets
are a reserve fund set up by the Group to cover its long-term nuclear
commitments, in accordance with conditions set out by law.

  *TIGF: Total enters exclusive talks  with the consortium comprised of  EDF, 
    SNAM and GIC

On 5 February 2013 EDF, Snam and  GIC announced that they had begun  exclusive 
negotiations with Total to acquire TIGF, its gas transport and storage network
in the southwest of France. The consortium, comprised of Snam, the Italian gas
transport and storage  operator (45%), GIC,  the Singaporean sovereign  wealth 
fund (35%)  and EDF  (20%  via its  dedicated  assets fund),  brings  together 
industrial expertise  and financial  capacity. The  consortium's offer  values 
TIGF at €2.4 billion.

  *Decision by Centrica to abandon the EPR construction project in the United

On 4 February  2013, Centrica announced  its decision to  end its  partnership 
with EDF in  building the EPR  nuclear plants in  the United Kingdom,  through 
exercising its option to  sell its 20% holding  in Nuclear New Build  Holdings 
(NNBH) in the UK to  EDF Energy. EDF, which already  held 80% of NNBH via  EDF 
Energy, now holds 100%  of the capital  of this company.  The strike price  of 
this option was insignificant for the Group.
EDF  has  continued  talks  with  the  British  government  with  a  view   to 
establishing the sales prices of  carbon-free electricity. Once this price  is 
set, the Group is  confident that the Hinkley  Point EPR project will  attract 
substantial investor interest, which will  allow the project to move  forward. 
Centrica is still partnered with EDF (20%) for existing nuclear facilities  in 
the United Kingdom and has maintained its commercial contracts for electricity

  *EDF raises over €6 billion with its first hybrid issues 

On 24 January 2013, EDF successfully  launched a hybrid issuance totalling  $3 
billion that  added to  issues in  EUR and  GBP on  22 January.  These  issues 
enabled the  Group to  raise a  total of  about €6.2  billion in  these  three 
currencies, which stands as the largest hybrid corporate issuance ever carried
- USD 3 billion with a coupon of 5.25%, with a 10-year first call date
- EUR 1.25 billion with a coupon of 4.25%, with a 7-year first call date
- EUR 1.25 billion with a coupon of 5.375%, with a 12-year first call date
- GBP 1.25 billion with a coupon of 6%, with a 13-year first call date
These issues attracted substantial  interest from institutional investors  and 
were oversubscribed several  times over.  Strong demand came  from the  United 
States, Asia, the United Kingdom and Continental Europe, enabling the Group to
increase the geographical diversification of its investor base.

  *Agreement on the recovery of the deficit related to the CSPE

On 14 January 2013, EDF and the French State reached an agreement whereby EDF
will receive full compensation for having borne the cumulated financial
deficits related to the Contribution to Electricity Public Service (CSPE)
mechanism. Pursuant to the agreement, the State will pay EDF the amount of the
receivable from the CSPE deficit at 31 December 2012 (approximately €4.3
billion) and costs borne by the Group (approximately €0.6 billion). In
accordance with the terms of the agreement, the receivable (totalling
approximately €4.9 billion) will be paid gradually according to a schedule and
paid in full before 31 December 2018. The outstanding receivable will bear
interest at market rates. Subsequent to this agreement, the Group recognised
financial income of around €0.6 billion, equivalent to the total financial
costs incurred to 31 December 2012.

  *Sale of Exelon shares

EDF Group announced on  10 January 2013 the  disposal, generating proceeds  of 
$470 million, at  year-end 2012 of  its entire, non-strategic,  1.6% stake  in 
Exelon's share capital  for an average  price of $34.70/share,  i.e. an  18.6% 
premium on its last share price ($29.26) on the NYSE (EXC.N) at closing on  10 
January 2013.

  *Suspension of the supercritical coal plant project in Poland

On 18 December 2012, EDF Group suspended its plans for building a coal-fired,
supercritical plant totalling
900 MW in Poland. The project will be subject to a number of conditions before
being restarted, such as obtaining CO[2] emissions permits, which were
expected to be delivered at the outset of the project as well as developments
in the regulation on coal and biomass co-combustion. EDF Group remains
committed in Poland through its electricity generation and cogeneration via
the cooperation agreement on nuclear energy signed with Polska Grupa
Energetyczna (PGE), the leading electricity company in Poland.

  *EDF and ENEL ending nuclear cooperation

On 4 December 2012, EDF and ENEL announced they were ending their  cooperation 
and, as  a  result, are  renouncing  their  respective options  in  the  other 
partner's programmes, with ENEL abandoning its 12.5% stake in the  Flamanville 
3 EPR project. Consequently, EDF  refunded, at end-2012, ENEL's investment  in 
the Flamanville 3 EPR  project, i.e. around €613  million, plus penalties.  In 
return, EDF will regain all  of the rights to  the Flamanville 3 EPR  project, 
including all future revenue from electricity sales.

ENEL's withdrawal from the Flamanville 3 EPR project also means that the early
access option-backed contracts granted to  ENEL for EDF projects, under  which 
ENEL received  1,200  MW  for  payment  in  2012,  will  be  terminated.  This 
termination will be a gradual process -  ENEL will receive 800 MW in 2013  and 
320 MW in  2014, under  the terms defined  in these  contracts. The  knowledge 
transfer agreements from which ENEL benefited are also being terminated.

  *EDF Energy announces operating  life of Hunterston B  and Hinkley Point  B 
    nuclear plants to be extended 

EDF Energy announced, on 4 December 2012, it will extend the operating life of
two of  its  nuclear  power stations  by  seven  years. Hinkley  Point  B  and 
Hunterston B nuclear  power stations  are now expected  to remain  operational 
until at least 2023, generating enough  low carbon electricity for around  two 
million homes. The decision follows the five-year extensions to Heysham 1  and 
Hartlepool announced in 2010  subsequent to extensive  reviews of the  plants' 
safety and ongoing work with the independent nuclear regulator in the UK.

EDF Energy expects to obtain seven-year  life extensions, on average, for  its 
Advanced Gas-cooled Reactor stations and  a 20-year extension for Sizewell  B, 
the only Pressurised Water Reactor in  the UK. This would increase the  amount 
of CO[2] avoided by 340 million tonnes. This is equivalent to removing all the
cars from UK roads for nearly five years.

  *FlamanvilleEPR: cost revision, still on schedule

On 3 December 2012,  EDF announced that the  cost of building the  Flamanville 
EPR was increased  by €2  billion in constant  euros, with  production of  the 
first kWhs still scheduled for 2016. The experience gained since the launch of
the EPR site at Flamanville, along  with everything that has been achieved  so 
far and  the organisation  set  up, provides  better  visibility on  the  full 
spectrum of industrial  and financial parameters,  especially regarding  civil 
engineering. Since the estimated cost was revised in July 2011 to €6  billion, 
significant milestones  have been  reached  at the  Flamanville EPR  with  the 
completion of 94% of the civil  engineering and 39% of the  electro-mechanical 
equipment in place, as well as the intake canal of the pumping station  coming 
on stream at  the start  of November  2012. The  cost update  also factors  in 
additional costs as well as  technical contingencies, such as the  replacement 
of 45 consoles and the  knock-on effects of this  in terms of work  scheduling 
and the financial impact of extending the construction deadlines.

  *Decision by  the  French State  Council  (Conseil d'Etat)  on  electricity 
    distribution tariffs

EDF recognised, on 29  November 2012, the French  State Council's decision  to 
overturn the TURPE 3 (Tarif d'Utilisation des Réseaux Publics d'Electricité).
EDF does not believe this decision  will have significant consequences on  the 
Group's results.
Additional  information  to   be  made  available   before  June  2013   after 
consultation with the CRE will clarify how this decision will be implemented.

  *EDF: interim dividend of €0.57/share for the 2012 financial year

EDF SA's Board of Directors, met on 22 November 2012 under the Chairmanship of
Henri Proglio, decided to pay a cash interim dividend for 2012 financial year.
This interim dividend had an ex date of 12 December 2012 and a payment date of
17 December 2012.
It amounts to €0.57 per share, which represents half of the total dividend
paid for 2011.

    All communication documents for the Group's full-year 2012 results are
                                available at:


                        Upcoming Group communications:


                       - Q1 2013 sales, 30 April 2013


                     - Shareholders' Meeting, 30 May 2013



                               Change in sales

in millions of euros    2011   2012  Organic growth (%)
France                 37,171 39,120        +5.2
United Kingdom         8,568  9,739         +6.4
Italy                  6,552  10,098       +10.8
Other International    7,501  7,976         +5.5
Other activities       5,515  5,796         +2.8
Total excluding France 28,136 33,609        +6.5
Total Group            65,307 72,729        +5.8

                               Change in EBITDA

in millions of euros   2011 restated  2012  Organic growth (%)
France                     9,196     9,930         +8.0
United Kingdom             1,942     2,054        (1.5)
Italy                       592      1,019        +23.1
Other International        1,280     1,067        (19.5)
Other activities           1,929     2,014         +4.7
Total excluding France     5,743     6,154        (0.9)
Total Group               14,939     16,084        +4.6

Consolidated income statement

(in millions of Euros)                                       2011*      2012
Sales                                                          65,307   72,729
Fuel and energy purchases                                  (30,195)  (37,098)
Other external expenses                                       (9,931) (10,087)
Personnel expenses                                           (10,802) (11,624)
Taxes other than income taxes                                 (3,101)  (3,287)
Other operating income and expenses                             3,661    5,451
Operating profit before depreciation and amortisation          14,939   16,084
Net changes in fair value on Energy and Commodity               (116)     (69)
derivatives, excluding trading activities
Net depreciation and amortisation                             (6,285)  (6,849)
Net increases in provisions for renewal of property,            (221)    (164)
plant and equipment operated under concessions  
(Impairment) / reversals                                        (640)    (752)
Other income and expenses                                         775      (5)
Operating profit                                                8,452    8,245
Cost of gross financial indebtedness                          (2,271)  (2,443)
Discount effect                                               (3,064)  (3,285)
Other financial income and expenses                             1,555    2,366
Financial result                                              (3,780)  (3,362)
Income before taxes of consolidated companies                   4,672    4,883
Income taxes                                                  (1,336)  (1,586)
Share in income of associates                                      51      260
Group net income                                             3,387    3,557
EDF net income                                                  3,148    3,316
Net income attributable to non-controlling interests              239      241
Earnings per share
Earnings per share (EDF share) in Euros                             -
Earnings per share                                               1.70     1.80
Diluted earnings per share                                       1.70     1.80

*Figures for 2011 have been restated for the impact of the change in
accounting method for actuarial gains and losses on post-employment benefits.

Consolidated balance sheets

ASSETS                                                  31.12.2011* 31.12.2012
(in millions of euros)
Goodwill                                                     11,648     10,412
Other intangible assets                                       4,702      7,625
Property, plant and equipment operated under French          45,501     47,222
public electricity distribution concessions
Property, plant and equipment operated under                  6,022      7,182
concessions for other activities
Property, plant and equipment used in generation and         60,445     67,838
other tangible assets owned by the Group
Investments in associates                                     7,544      7,555
Non-current financial assets                                 24,260     30,471
Deferred tax assets                                           3,159      3,487
Non-current assets                                          163,281    181,792
Inventories                                                  13,581     14,213
Trade receivables                                            20,908     22,497
Current financial assets                                     16,980     16,433
Current tax assets                                              459        582
Other receivables                                            10,309      8,486
Cash and cash equivalents                                     5,743      5,874
Current assets                                               67,980     68,085
Assets classified as held for sale                              701        241
Total assets                                                231,962    250,118

*Figures for 2011 have been restated for the impact of the change in
accounting method for actuarial gains and losses on post-employment benefits.

Consolidated balance sheets

EQUITY AND LIABILITIES                                  31.12.2011* 31.12.2012
(in millions of euros)
Capital                                                         924        924
EDF net income and consolidated reserves                     27,559     24,934
Equity (EDF share)                                           28,483     25,858
Equity (non-controlling interests)                           4,189      4,854
Total equity                                                 32,672     30,712
Provisions related to nuclear generation- Back-end          37,198     39,185
nuclear cycle, plant decommissioning and last cores
Provisions for decommissioning of non-nuclear                   809      1,090
Provisions for employee benefits                             14,611     19,540
Other provisions                                              1,338      1,873
Non-current provisions                                       53,956     61,688
Special French public electricity distribution               41,769     42,551
concession liabilities 
Non-current financial liabilities                            42,688     46,980
Other non-current liabilities                                 4,989      4,218
Deferred tax liabilities                                      4,479      5,601
Non-current liabilities                                     147,881    161,038
Current provisions                                            4,062      3,894
Trade payables                                               13,681     14,643
Current financial liabilities                                12,789     17,521
Current tax liabilities                                         571      1,224
Other current liabilities                                    19,900     21,037
Current liabilities                                          51,003     58,319
Liabilities related to assets classified as held for            406         49
Total equity and liabilities                                231,962    250,118

*Figures for 2011 have been restated for the impact of the change in
accounting method for actuarial gains and losses on post-employment benefits.

Consolidated cash flow statements

(in millions of euros)                                         2011*     2012
Operating activities:
Income before taxes of consolidated companies                   4,672    4,883
Impairment (reversals)                                            640      752
Accumulated depreciation and amortisation, provisions and       7,210    9,197
change in fair value
Financial income and expenses                                   1,117      944
Dividends received from associates                                334      201
Capital gains/losses                                            (737)    (443)
Change in working capital                                     (1,785)  (2,390)
Net cash flow from operations                                  11,451   13,144
Net financial expenses disbursed                              (1,623)  (1,634)
Income taxes paid                                             (1,331)  (1,586)
Net cash flow from operating activities                         8,497    9,924
Investing activities:
Investments, net of cash acquired/transferred                   3,624       20
Investments in intangible assets and property, plant and     (11,134) (13,386)
Net proceeds from sale of intangible assets and property,         497      748
plant and equipment
Changes in financial assets                                       222  (1,792)
Net cash flow used in investing activities                    (6,791) (14,410)
Financing activities:
Transactions with non-controlling interests                   (1,324)  (1,038)
Dividends paid by parent company                              (2,122)  (2,125)
Dividends paid to non-controlling interests                     (261)    (230)
Purchases/sales of treasury shares                               (14)     (15)
Cash flows with shareholders                                  (3,721)  (3,408)
Issuance of borrowings                                          5,846   12,431
Repayment of borrowings                                       (4,071)  (4,869)
Funding contributions received for assets operated under          194      190
Investment subsidies                                              161      313
Other cash flows from financing activities                      2,130    8,065
Net cash flow from financing activities                       (1,591)    4,657
Net increase/(decrease) in cash and cash equivalents              115      171
Cash and cash equivalents - opening balance                     5,567    5,743
Net increase/(decrease) in cash and cash equivalents              115      171
Effect of currency fluctuations                                    54     (44)
Financial income on cash and cash equivalents                      44       38
Effect of reclassifications                                      (37)     (34)
Cash and cash equivalents - closing balance                     5,743    5,874

*Figures for 2011 have been restated for the impact of the change in
accounting method for actuarial gains and losses on post-employment benefits.

Change in net financial debt

In millions of euros                                          2011*     2012
EBITDA                                                        14,939   16,084
Cancellation of non-monetary items included in EBITDA        (2,040)   (715)
Net financial expenses disbursed                             (1,623)  (1,634)
Income taxes paid                                            (1,331)  (1,586)
Other items                                                    336      165
Net cash flow from operations                                 10,281   12,314
Change in net working capital                                (1,121)  ( 2,390)
Net operating investments (Gross Capex less disposals)       (10,637) (12,638)
Free cash flow                                               (1,477)  (2,714)
Allocation to dedicated assets, France                        (315)    (737)
Net financial investments                                     3,277   (1,021)
Dividends paid                                               (2,383)  (2,355)
Other changes                                                   8       365
(Increase)/decrease in net indebtedness, excluding the
impact of changes in scope of consolidation and exchange      (890)   (6,462)
Effect of changes in scope of consolidation                   2,607   (1,870)
Effect of change in exchange rates                            (516)    (137)
Effect of other non-monetary changes                           (97)     179
(Increase)/Decrease in net indebtedness                       1,104   (8,290)
Net financial debt, opening balance                           34,389   33,285
Net financial debt, closing balance                           33,285   41,575

*Figures for 2011 have been restated for the impact of the change in
accounting method for actuarial gains and losses on post-employment benefits.

EDF group, one of the leaders in the European energy market, is an integrated
energy company active in all areas of the business: generation, transmission,
distribution, energy supply and trading. The Group is the leading electricity
producer in Europe. In France, it has mainly nuclear and hydropower generation
facilities where 95.9% of the electricity output is CO2-free

EDF's transmission and distribution subsidiaries in France operate 1,285,000
km of low and medium voltage overhead and underground electricity lines and
around 100,000 km of high and very high voltage networks. The Group is
involved in supplying energy and services to approximately 28.6 million
customers in France. The Group generated consolidated sales of €72.7 billion
in 2012, of which 46.2% outside of France. EDF is listed on the Paris Stock
Exchange and is a member of the CAC 40 index



                                            Carole Trivi : +33(1) 40 42 44 19

22-30, avenue de Wagram - 75382 Paris       Analysts and investors
cedex 08                                    Kader Hidra & Carine de Boissezon:
SA with share capital of €924,433,331 -     +33(1) 40 42 45 53
552 081 317 R.C.S. Paris                    David Newhouse (US investors):
www.edf.fr                                  +33(1) 40 42 32 45


This press release  does not  constitute an offer  to sell  securities in  the 
United States  or  any other  jurisdiction.  This press  release  may  contain 
forward-looking statements and  targets concerning, for  example, the  Group's 
strategy, financial position or results,  which do not constitute a  guarantee 
of future performance  or results  of the  company. EDF  considers that  these 
forward-looking statements and  targets are based  on reasonable  assumptions, 
which can  be  however  inaccurate  and are  subject  to  numerous  risks  and 
uncertainties, many of which are outside the control of the company, and as  a 
result of which actual  results may differ  materially from expected  results. 
Important factors that could cause actual results, performance or achievements
of the Group  to differ materially  from those contemplated  in this  document 
include  in  particular  the  successful  implementation  of  EDF   strategic, 
financial and operational initiatives based  on its current business model  as 
an integrated operator, changes in the competitive and regulatory framework of
the energy markets, as well as risk and uncertainties relating to the  Group's 
activities, the climatic environment, the  volatility of raw materials  prices 
and  currency  exchange  rates,  the  strengthening  of  safety   regulations, 
technological  changes,  changes  in   the  general  economic  and   political 
conditions  in  the  countries  where   the  Group  operates,  and  risk   and 
uncertainties relating to the consequences  of the nuclear accident in  Japan. 
Detailed information  regarding these  uncertainties and  potential risks  are 
available in the reference document (document de référence) of EDF filed  with 
the Autorité des Marchés  Financiers on 10 April  2012, which is available  on 
the AMF's website at www.amf-france.org  and on EDF's website at  www.edf.com. 
EDF does not undertake, nor does it have any obligation to provide updates  of 
the information contained in this press release.

[1]30 June 2016 deadline set out by the NOME law from December 2010
[2]Pro forma data after allocation of the CSPE receivable to dedicated assets
on 13/02/2013 and the  subtraction of €2.4 billion  from the dedicated  assets 
portfolio bringing  the coverage  rate  to 100%  of  EDF's long  term  nuclear 
obligations starting as early as 2013
[3]0,68/share remaining to be paid  after an interim dividend of  €0.57/share 
was paid on 17 December 2012
[4]Pro forma data after allocation of the CSPE receivable to dedicated assets
on 13/02/2013 and the  subtraction of €2.4 billion  from the dedicated  assets 
portfolio bringing  the coverage  rate  to 100%  of  EDF's long  term  nuclear 
obligations starting as early as 2013
[5]Organic growth
[6]Excluding Linky and strategic operations
[7]Reserve  fund  set  up  by  the  Group  to  cover  its  long-term  nuclear 
commitments, in accordance with conditions set by law
[8]Calculation of the average maturity on the basis of quarterly flows
[9]ERDF and French islands activities
[10]And 99.5% of the voting rights

EDF FY results


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Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.

Source: EDF via Thomson Reuters ONE
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