Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
2012
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 contained in this presentation, and none of EDF representatives shall bear any liability for any loss arising from any use of this presentation or its contents.
The present document may contain forward-looking statements and targets concerning the Groups strategy, financial position or results. EDF considers that these forward-looking statements and targets are based on reasonable assumptions, which can be however inaccurate and are subject to numerous risks and uncertainties, 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 Groups activities, its international scope, 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. Detailed information regarding these uncertainties and potential risks are available in the reference document (Document de rfrence) of EDF filed with the Autorit des marchs financiers on April 5, 2013, which is available on the AMF's website at www.amf-france.org and on EDFs website at www.edf.com. EDF does not undertake nor does it have any obligation to update forward-looking information contained in this presentation to reflect any unexpected events or circumstances arising after the date of this presentation.
2
Before Starting
The 2012 Facts & Figures contains the following new items:
An updated strategy part A dedicated sustainable development part A focus on Edisons activities in the financial section
To help you understand the terms used, you will find a glossary at the end of the document Moreover, you will find throughout the document some Did you know? take-away boxes, which enlighten a specific concept Many other information are available in our reference document, which you can download under: http://shareholders-and-investors.edf.com/news-and-publications/reference-documents-45430.html
To help you navigate through this document, hypertext links haven been incorporated
A click on the EDF logo will bring you back to the main table of contents (p.5)
Within the document, a title bar indicates in which part of the document you are in. A click on the arrow with the name of the part will bring you back to the beginning of this part:
Generation
Networks
Gas
Table of contents
The EDF Group
EDFs strategy within the energy sector EDF main businesses EDF Group corporate responsibility approach and process
6 42
51
146 158
Financials
Market data Appendices
202
213
5
2012
The EDF Group
EDF strategy
Corporate responsibility
Financials
Market data
Appendices
23
Country profiles
29
Country profiles
EDF at a glance
An integrated model optimizing the whole value chain
Worldwide leader in the electricity sector, #1 nuclear operator Operational excellence and valuable experience across the electricity value chain (generation, networks, supply and optimization / trading) A reinforced financial solidity with the highest credit rating in the industry, backed by a very strong liquidity position
Strong ties to the French State (~85% ownership) Much of EDF business is regulated (networks) or highly visible (tariffs, PPA) A lower exposure to commodity price risks compared to its peers
Country profiles
Excellent nuclear performance in the UK (+7.5 %) and sharp rise in hydropower production (+28.7%) that partially offset the lower nuclear output in France (-3.8%) Record of renewable plants commissioning: +1,550 MW Improvement of the operational performance of distribution in France
2 Financial structure consistent with the industrial model CSPE: agreement on the recovery deficits and allocation to dedicated assets Successful inaugural hybrid bond issuance under the ongoing debt management 3 Industrial and responsible priorities Finalization of Edison takeover allows for major positions in the Italian energy market and an international gas platform for the Group Over 6,000 new hires in 2012, including 2,000 positions created
9
Country profiles
ARENH formula(1)
ERDF(2)
(1) Regulated access to historical nuclear electricity. See page 29 for more details (2) EDF 100% owned distribution business in France
10
Country profiles
22%
9% 31%
Shape factor
38/MWh
8% 3% 27%
Baseload
2010
2011
2012
Generation component accounts for less than 30% of total selling price and is stable in real terms
(1) As of 1 January 2013 average annual consumption of 4.843 MWh / year annual bill of 693 including tax
11
Country profiles
ARENH formula
Definition of the ARENH formula in 2013 to boost visibility
Price of ARENH set consistently with the TaRTAM at 40/MWh in July 2011, then 42/MWh at 1 January 2012 Principles of the NOME law of December 2010
Convergence of the baseload power component of tariffs towards ARENH in 2015 The price of ARENH must reflect the economic conditions of nuclear generation, i.e. the total current economic cost of the existing nuclear fleet evaluated by the Cour des Comptes(1) to be 54.22010/MWh on 2011-2025 The current level of 42/MWh does not reflect the total economic cost of generated MWh
12
Country profiles
of Hinkley Point C
Strengthened organisation implemented
Hinkley Point C site Shovel ready Agreement with the local authorities
of EDFs organisation for building and operating the HPC site (Nuclear Site License)
second reading
Objective: Commercial close: conclude negotiations on the CfD(1) by the end of 2013 Financial close: make an investment decision as soon as possible after the commercial close
(1) The Contract for Difference is a contractual mechanism encouraging investments in energy sources with low CO 2 emissions
13
Country profiles
French State Council overruling of electricity distribution tariffs for the period 2009-2013 (TURPE 3) because of inadequate methodology for calculating tariff
CRE
consultation of 13 February 2013 has confirmed a negative impact of only 62m for the new TURPE 3
dimension
14
Country profiles
Financials (2012)
Sales: 72.7bn EBITDA: 16.1bn Net financial debt: 39.2bn(2) Ratings: A+ stable(3) (S&P) / Aa3 neg (Moodys)/ A+ stable (Fitch) / AA+ (JCR)
GW(1)
installed worldwide
~1.4 M km of networks, both for Transmission and Distribution through its affiliated companies ~160,000 employees
o/w ~ 38,000 o/w ~ 38,000 o/w ~ 15,000 in French distribution in French generation and engineering in EDF Energy
Vigeo: overall score of 55/100 FTSE4Good: integration of EDF to the index in March 2012
(1) Net generation capacity (2) Pro-forma after allocation of the CSPE deficit to dedicated assets on 13 February 2013 and subtraction of 2.4bn from dedicated assets portfolio, enabling 100% coverage of the EDF nuclear liabilities that are eligible for dedicated assets (3) Downgrade from AA- to A+ on 18 January 2012 following France downgrade
15
Country profiles
Marianne LAIGNEAU
Group Senior Executive Vice President , Human Resources
A graduate of the Ecole Normale Suprieure de Svres, the Ecole Nationale dAdministration (Condorcet Promotion) and the Institut dEtudes Politiques in Paris, she also holds an aggregation in Classics and a Masters Degree in French Literature. She joined the Council of State in 1992 and became Counselor in 2007. In December 2010, she has been appointed Group Senior Executive Vice President Human Resources, after having been Corporate Secretary from June 2007 to December 2009 and General Counsel from January 2005 to December 2009.
HENRI LAFONTAINE
Group Senior Executive Vice President, Customers / Optimization / Trading and the Island Energy Systems
A graduate from Suplec, mathematical master, Henri Lafontaine joined EDF in 1983 where he occupied a variety of positions in France at the Directorate of Distribution and International as the CEO of EDENOR. Since September 2012, he is Group Senior Executive Vice President in charge of Customers, Optimization and Trading as well as Island Energy Systems. He is also a non-executive director in several companies: EDFI, EDF Energy, Fenice, EDF Luminus, Electricit de Strasbourg.
Pierre LEDERER
CEO special advisor
A graduate of Physical Science and Mathematics, Pierre Lederer joined EDF in 1974. He was appointed Chief of the General Economic Studies Department in 1992, Director of Strategy in 1996, and Director of "Strategy-ValorisationOptimization" at the Thermal Generation of the Group in 1999. In 2000, he joined the Executive Management Board of EnBW and became Vice President in 2007. In February 2009, Pierre Lederer was appointed Senior Executive Vice President of EDF S.A., in charge of Customers, Optimization and Trading. He also supervises the Continental Europe zone.
16
Country profiles
Thomas PIQUEMAL
Group Senior Executive Vice President, Finance
A graduate of ESSEC. After holding several positions at the investment bank Lazard Frres, he became in January 2009 Senior Executive Vice President in charge of Finance of Veolia Environment and joined the Groups Executive Committee. He joined the EDF Group in December 2009, as Group Senior Executive Vice president, Finance. He also supervises the North America zone. In 2008, Thomas Piquemal co-founded the Acadmie Christophe Tiozzo, whose mission is to promote the social and professional integration of young people from deprived areas.
Vincent de RIVAZ
Chief Executive of EDF Energy
A graduate of the Ecole Nationale Suprieure dHydraulique de Grenoble, he held various positions within the Group, especially regarding international development. In mid-2003, he created EDF Energy and has since been Chief Executive Officer. He supervises the United Kingdom area. He was named National Ambassador by HRH the Prince of Wales, in July 2009, for his significant contribution to the Princes Business in the Community projects.
Alain TCHERNONOG
General Secretary
A PhD in Law and a graduate of the Institut dAdministration dEntreprises, he held various positions in different companies. In March 2007, he became Coporate Secretary of Veolia Environnement. In December 2009, he was appointed Coporate Secretary of the EDF Group. He is charge of legal departments, risk, security and sustainable development, information systems and shared services.
17
Country profiles
IPO(1) in 2005 and creation of RTE to guarantee non-discriminatory access to the market
1946
1963
Launch of the commercialscale nuclear program
1990
1999
2004 2005
Development in France
Development of the French industrial base, including Hydro and Nuclear facilities
Disposal of EnBW and of the UK networks Buy-out of EDF Energies nouvelles Edisons takeover
International Development
Start of the international development, first in South America, then in Europe with the UK (from 1998 onwards), Germany (2001) and Italy (2005)
18
Country profiles
USA
Constellation Energy Nuclear Group
Belgium
EDF Belgium EDF Luminus
642.6 TWh
Global generation 2012
~75.5% Nuclear ~8.9% Fossil fired (excluding gas) ~9.1% Renewables(1) ~6.5% Combined cycle gas and cogeneration
United Kingdom
EDF Energy
Slovakia
Groupe SSE(2)
Spain
Elcogaz
Hungary
Be ZRt EDF Dmasz ZRt
39.3 million of
Laos
NPTC
Customers
Austria
Switzerland
Alpiq
ESTAG
16.1bn
Other activities (main subsidiaries)
EDF EN Tiru Electricit de Strasbourg Dalkia EDF Trading
EBITDA 2012
Vietnam
MECO
Brasil
Norte Fluminense
France
EDF RTE ERDF Island Energy Systems
Italy
Edison Fenice
France 62% United Kingdom 13% Italy 6% Other International 7% Other activities 12%
(1) Including hydropower (2) On 24 May 2013, EDF and EPH has signed definitive agreement for the sale of 49% of Stredoslovenska Energetika A.S. (SSE). The contemplated transaction will be submitted for authorization to a general meeting of shareholders of SSE. Closing is expected during second semester of 2013 following receipt of antitrust clearance
19
Country profiles
Men and women play a key role in the Groups Performance: focus on training
A landmark investment to provide to all employees of the Group professionalization programs and in order to ensure the transmission of necessary skills for the industrial Group project: 82% of employees in the Group attended at least one training course in 2012 (average of 58h training received by employee trained)
7.3% of the payroll was allocated for training (almost 550m), as much as for R&D activities
A pioneer Group-level agreement Corporate Social Responsibility (signed in 2004) A strong commitment for the health and safety of employees and subcontractors to reduce, by 15% per year, the number of accidents over the next five years
1st prize of the Trophe de la rputation in the category Responsabilit sociale , award handed out by Syntec Council in Public Relations and La Tribune (April 2013)
20
Country profiles
159,740 employees in the Group of which 41,228 women (26%) More than 16% of the France workforce(1) could retire by 2016, in particular in generation engineering and distribution staff, which represent two-third of the employees in this scope Until 2014, the Group will maintain a level of recruitment that is adapted to these stakes and reaffirms its commitment to work-study trainees, which is a source of diversity and competencies. In 2012, over 12,500 people were recruited in the Group, almost half of which at EDF SA and ERDF EDF remains the benchmark employer on technical profiles
6th of the Universum engineer rating 2012 1st of the TNS Sofres engineer rating 2012 1st employer of Randstad Awards 2012 (energy sector)
Other 10%
EDF SA 43%
159,740 employees
Development of international scope and employer brand Over 6,700 work-study trainees at Group level in 2012 Development of managerial training by the Groups Management University (UGM)
Over 3,000 managers or leaders followed the UGM 3,500 managers or leaders have been involved in managerial assistance programs in their units
ERDF 24%
Percentages calculated based on the number of employees
First internal opinion survey in the Group, My EDF: 90,000 employees answered for the first time in 2012
(1) EDF SA and ERDF
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Country profiles
Networks France (inc.SEI(2)) EDF SA: 99.8 GW EDF Energy: 14.2 GW Edison: 7.7 GW Fenice: 0.5 GW EDF Luminus: 2.0 GW EDF Belgium: 0.5 GW CENG: 1.9 GW Other: 6.4 GW (o/w Poland, Slovakia(5), Hungary) Other activities: 6.7 GW o/w EDF EN: 4.2 GW
Supporting activities
RTE(3) (100%): ERDF (100%): 1.3 M km EDF SA : ~29 M more than 100,000km
EDF Energy : ~5.8 M Edison: ~1.5 M EDF Luminus: ~1.7 M
Other activities
22
Country profiles
(1) The President of the Audit Committee satisfies the criteria of skills (art. L.823-19 C. Com.) and independence(code Afep-Medef) (2) The President of the Committee satisfies the independence criteria (code Afep-Medef)
23
Country profiles
EDF: a listed company with the French State as the major shareholder
(1/2)
Share information
Common shares # of shares # of shares outstanding Number of treasury shares French security identification N (ISIN code) 1,848,866,662 1,846,705,329 2,161,333
1.85%
Treasury shares
0.12%
13.59%
FR0010242511 CAC 40, Euro Stoxx Utilities, Dow Jones Euro Stoxx 50, Euronext 100, FTS Euro First Paris (Reuters: EDF.PA , Bloomberg : EDF FP)
French State
84.44%
Main index
Listing
By Law, the French State must hold at least 70% of EDFs share capital
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Country profiles
EDF: a listed company with the French State as the major shareholder
(2/2)
EDFs CEO is proposed by the board members, and appointed by decree of the President of France upon proposal by the Board of Directors (Law of 26 July 1983) In accordance with article 13 of the French Constitution, the CEO and Chairman is appointed based on the candidates interviews and the opinion of the permanent committees of the French National Assembly and Senate. The Board of Directors is composed of 18 members, one third of whom are State representatives Any decision related to financials, investments, acquisitions and disposals must be approved by the Government (Decree of 9 August 1953) Numerous controls of financials by different authorities: State Comptroller, Cour des Comptes (Government auditing agency), Inspection des Finances The French State Holdings Agency (APE) represents the State as a shareholder Main contractual agreements are reviewed by the specific Market Commission (Decree of 18 September 1948)
EDF has to abide by listed companies laws and specific standards of a public sector entity Internal rules of its board of Directors are similar to those of listed companies In accordance with law of 27 January 2011 relating to the balanced representation of women and men on Boards of Directors and Supervisory Boards, the proportion of directors of each gender appointed by EDFs Shareholders Meeting may not be less than 20% from 2014, then 40% from 2017. In 2012, EDFs Board is composed of 4 women, representing 22% EDF decided in December 2008 to refer to the AFEP- MEDEF Code of October 2008 (revised in April 2010) as its corporate governance code:
Annual report on the evolution of the board's functioning entrusted to an external firm every three years. Regular update of the Board of Directors rules of procedure
The Board has appointed all the appropriate committees EDF is compliant with internal control procedures COSO EDF publishes an annual report on sustainable development
25
Country profiles
The French State Shareholding Agency (APE) is a national department joined controlled by the Minister for the Economy and Finance and the Minister of Industrial Renewal. It performs the function of the state shareholder ensuring the management of its financial interests. As such, it proposes and implements the decisions and policies of the French State with the related ministries Its main objectives consist of:
Reviewing the appropriateness and financial health of the company Representing the French Government as a shareholder Helping for the good relationship between the company and the French government
As a result, the APE has expressed the following requirements to public sector enterprises. They have to:
Appoint specific point of contacts to be special correspondents with the APE Prepare a scorecard reporting for the APE on the main financials and qualitative data Organize regular meetings, at least once a year to present the strategy and finance of the company Inform the APE for any investment operation, or any specific audit missions
26
Country profiles
The ASN (French nuclear safety authority), in charge of control of the safety of nuclear facilities in France. The ASN carries out:
On-site regulatory inspections, randomly or scheduled (approx. 400 per year) 10-year safety reviews, a necessary step in extending the life of power plants In charge of post Fukushima additional safety assessments
The CRE (French Energy Regulatory Commission) ensures the proper functioning of the electricity and gas market for the end-customers in compliance with the energy policy. The regulation fields include:
Energy networks
Access to regulated networks and their operation and development Independence of network operators
Energy markets
Monitor retail markets (for instance, making proposals for regulated tariffs evolution)
27
Country profiles
EDF could be submitted to State audit procedures, in particular through economic and financial evaluation assessment and through checks by the General Finance Inspection Office (Inspection General de Finance) The companys accounts and management, and where applicable, those of its directly-held majority subsidiaries are under the control of the Cour des Comptes(1) EDF also has to undergo the audit procedures performed by the Parliament EDF is subject to the law of 26 July 1983 related to the democratization of the public sector which deals with companies in which the State hold directly more than 50% of capital (and second-tier companies and beyond, EDF subsidiaries subject to certain conditions): this law contains in particular dispositions about governance, committee composition, Board composition, nomination of corporate officers, compensation, etc.
28
Country profiles
EDF is active on the whole electricity value chain, from generation to sales and optimization / trading. The activities can be split:
into deregulated activities, through EDF SA (generation + sales, optimization and trading) into regulated activities, through ERDF (distribution) and RTE (Transmission). EDF activities in Island Energy Systems (Corsica, French overseas departments and collectivities) are managed by the Island Energy Systems Division
Hydropower(2)(3)
Fossil-fuel fired Other renewables Total
20,410
16,222 12 99,774 TWh
20.4
16.3 0.0 100 % 86.8
EDF owns the largest nuclear fleet worldwide, the largest European electricity generation fleet, and is committed to operational performance and safety In addition, EDF has an extensive experience in hydropower, conventional fuels and renewables (strengthened by the buy out of EDF Energies Nouvelles) RTE(1) and ERDF are 100% subsidiaries of EDF, but are operationally independent (legal unbundling), as requested by the EU legislation EDF also plays a holding role, by controlling 100% of EDF International (controlling the greatest part of EDF stakes in international subsidiaries) as well as interests in various companies, including:
Nuclear
404.9
Hydropower(3)(4)
Fossil-fuel fired Other renewables Total
42.0
19.0 0.5 466.4
9.0
4.1 0.1 100
EDEV (including EDF EN, LNG Dunkerque, Electricit de Strasbourg) Dalkia (energy services provider) EDF Trading (market operator for the Group)
(1) RTE is consolidated under the equity method (3) Including Rance river tidal power plant (240 MW)
(2) Including Corsica and overseas. Excluding EDF EN (4) Hydropower generation including pumped storage consumption
29
Country profiles
Nationalization of the electricity and gas sectors pursuant to the Law of 8 April 1946 From February 1999, progressive opening of the electricity market under the impetus of European regulation, first for B2B consumers (total liberalization in July 2004), then for B2C consumers from 2007 onwards As at 31 December 2012, EDF had a market share of approx. 80% in the electricity business (B2B and B2C). According to the Commission de Rgulation de lEnergie (CRE), the electricity market shares of competitors were, in 2012, 6.9% on residential sites and 7.6% on non-residential sites while their gas market shares on residential sites were 11.3% and 22.8% on non-residential sites
To improve and foster competition on the French market, implementation of a new law: the NOME Law of 7 December 2010 (came into force on 1 July 2011)
The Law guarantees EDF competitors an access to the historical nuclear generation capacity (ARENH), provided they supply only their French end users
30
Country profiles
31
Country profiles
Main entity: EDF Energy, one of the UKs largest energy companies and the UKs largest producer of low-carbon electricity The company is organized into the following three business units:
Nuclear Generation (15 reactors on 8 nuclear power stations, 8.7 GW of capacity, 20% owned by Centrica) Nuclear New Build (in charge of EDF Energys new nuclear project in the UK) Energy Sourcing and Customer Supply (operating conventional power stations, wind farms, and managing customer needs)
5.6 %(1)
UK market:
Environment marked by strong Government drive to decarbonise the economy (-80% CO2 emissions by 2050 vs. 1990) and electricity supply, while ensuring security of supply and affordability Highly competitive B2C and B2B markets with unregulated, volatile prices and dual-fuel offerings playing a major role in B2C Coal and gas currently playing the largest roles in electricity generation Need for new generation capacity to come online around the turn of the decade as significant amount of aging and environmentally restricted capacity will be retired Ongoing implementation of the Electricity Market Reform, with the objective of promoting investments in low-carbon generation (carbon price support implemented from Apr 2013; Energy Bill containing a contract for difference mechanism, a capacity mechanism and an emission performance standard expected to receive Royal Assent during 2013)
Output (TWh)
60.0 0.3 22.7 0.4 83.4
bn
EBITDA 2012 2.1
(1)Based on March 2013 data from the Department of Energy & Climate Change
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Country profiles
Major nuclear operator in the UK, leading the way in Nuclear New Build
Almost 9GW of existing nuclear capacity with a clear aim of life extension (currently an average expectation of 7 years beyond agreed lifetimes at acquisition for AGRs and 20 years for Sizewell B PWR) Aim to build up to 4 EPRs*: a twin at Hinkley Point and a twin at Sizewell Key role in discussions on the Electricity Market Reform
Onshore: on target to have >500 MW of capacity in operation by end 2013; to be further increased in the future Offshore: 1st project (Teesside, 62 MW) to be completed in H1 2013; JV with Eneco for Navitus Bay project (50% of ~1.1GW)
West Burton B 1,300 MW CCGT power plant; first two units commissioned with final unit to follow later in 2013 Constructing a short-cycle gas storage facility, two cavities completed and gas plant to start operation by the end of Q2 2013
Focus on re-gaining customer trust through fair value, better service and simplicity Customer systems renewal to deliver cost savings and improved service Focus on sustainable margins in both B2B and B2C Organic growth strategy in B2C to achieve economies of scale
Continued delivery of synergies from the acquisition of British Energy Major change programs under way
33
Country profiles
Potential gas hub for Europe, securing gas supply Strategic geographical position of Italy for the development in the Mediterranean area EDF owns 100% of Fenice since 2001 and 99.48% of Edison ordinary shares since September 2012
Major player in the Italian market for electricity and gas: the EDF Group can benefit, for the implementation of its gas strategy, from the skills developed by Edison on the entire gas value chain from generation to supply Recognition of Edisons skills in Exploration - Production (oil and gas), in Italy and abroad Access to LNG terminals (Rovigo) and import pipelines (ITGI/Galsi), as a complement to EDFs other ownerships (South Stream, Dunkirk)
Offer of energy and environmental services: heat or electricity generation, operation and maintenance of energy assets, solid and liquid industrial waste treatments and environmental engineering (main customer: Fiat)
(1) Dalkia (through Siram) and EDF EN are also active in the Italian market (2) Data consolidated at 100% for full-year 2012 of Edison Group (excluding Edipower) (3) At the EDF Group level
34
Country profiles
A region that includes important interconnections with the French/German power markets Key area in the European natural gas market due to its many facilities for import and transit, and the Zeebrugge hub
Company
EDF Belgium
Main activities
Electricity generation
Technical data
Installed capacity: Installed capacity: 481 MW 2,038 MW
Main entities: EDF Belgium and EDF Luminus (former SPE); Sloe Centrale B.V. (the Netherlands)
419 MW
1,429 MW 73 MW 117 MW
EDF Belgium 100% EDF-owned Owns 50% (481 MW) of the Tihange 1 nuclear power EDF Luminus EDF majority shareholder (63.5%), through EDF Belgium 12% of Belgian installed capacity Total generation in 2012 of 5,358 GWh 2012 market share: 20% of end-customer sales EDF Luminus owns 10.2% (418.5 MW) in nuclear power plants Tihange 2 and 3 and Doel 3 and 4 Sloe Centrale B.V. CCGT: 2 units of 435 MW 50% partnership with Delta B.V.
The Netherlands
Electricity generation
EBITDA 2012(3) : 31% of Other International EBITDA 2012 total generation(3): 10 TWh
(1) Excluding 100MW of drawing rights in the Chooz B power plant, owned by the EDF Group (2) Data at 100% (3) EDF Belgium + EDF Luminus + Sloe
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Country profiles
EDF Inc almost 2 GW of nuclear through 49.99% stake in CENG EDF Trading North America contractual management of 26 GW of generation Unistar Nuclear Energy (UNE), 100%-controlled by EDF, works on new developments in nuclear EDF Renewable Energy (formerly enXco): 1,697 MW net of wind capacity, solar and biogas and 143 MWc of solar capacity under construction EDF EN Canada: 23 MW of solar and 218 MW of wind and 162 MW under construction EDF EN Mexico: 89.5 MW of installed capacity. The construction of 324 MW of wind started in 2012
Storage: approx. 50 bcf storage capacity rights in 23 separate sites in the US and in Canada
Transmission: 7.6 bcf transported daily in North America
Coal: Rights of way on several terminals (East Coast and Gulf) Crude oil: In 2012, EDF Trading has created a new business line linked to crude oil logistics. EDF Trading plans to expand its activity in 2013 Wholesale load: 674 MW in power load auctions Retail load: 2,345 MW, including Champion Environmental commodities: active trader of RECs(1), biogas, weather derivatives and emissions
EDF Renewable Services (formerly enXco Service Corp): management of wind turbines and solar panels as a senior operator and on behalf of third parties for a total capacity of more than 7 GW of wind and solar, 3 GW of new capacity earned run in 2012
36
Country profiles
EDFT Stockage de gaz EDFT Coal terminal (through rights) EDFT Retail load
San Diego, CA
EDF RE Biogas EDF RE Developed Wind / EDF EN Developed Wind EDF RE Developed solar / EDF EN Canada solar EDF RE O & M (eSC)
Houston, TX
37
Country profiles
The United States is the largest energy market in the world and has a highly fragmented industry structure Power prices are low due to low gas prices from recently developed shale gas production and reduced energy demand as a result of the economic recession Poor visibility on the future energy policy with PTCs renewal one year but should expire at the end of 2013
Only Ontario and Alberta have opened electricity markets. British Columbia is likely the next large market to open Growth is driven by Provincial carbon / renewable policies, but also tar sands developments in Alberta (the largest growing power market in Canada) Ontario and Quebec are the largest renewable energy markets. Ontario policies in favor of solar and wind energy were solidified with the re-election of the Liberal Party during provincial elections
Environmental regulations
29 States and the District of Columbia have a Renewable Electricity Standard, requiring a percentage of an electric providers energy sales or installed capacity to come from renewable sources Within the next two years, the US Environmental Protection Agency (EPA) is expected to release final versions of major rules addressing emissions of ozone, particulate matters, mercury, coal ash, as well as environmental impacts of cooling water intake structures EPA regulations covering SOx and Nox expected to start in January 2012 are being delayed by litigation With respects to carbon emissions, there is currently insufficient momentum in the US to support the implementation of emission reduction policies (except California ,which has implemented its Cap & Trade CO2 emission permits and has announced to link its market to the Quebec market system)
(1) Production Tax Credit = tax credit to support wind energy production
High electricity price for commercial and industrial customers combined with favorable banking makes wind competitive without subsidies Federal Government set goal of 7.5% of energy generation to be sourced from renewables by 2017 Installed wind capacity has more than doubled in 2012 reaching 89.5 MW, with the commissioning of several big projects in Oaxacas area
38
Country profiles
Assets
Country Company Main activities
Poland Poland Poland Poland EDF Wybrzeze EDF Rybnik EDF Krakow Kogeneracja
Electricity and heat generation Electricity generation Electricity and heat generation Electricity and heat generation
Technical data
Electrical capacity: Thermal capacity: Electrical capacity: Electrical capacity: Thermal capacity: Electrical capacity: Thermal capacity: Electrical capacity: Thermal capacity: 333 MW 1,199 MWth 1,775 MW 460 MW 1,118 MWth 363 MW 1,124 MWth 221 296 MW MWth
Electricity generation, cogeneration 4 main subsidiaries: EDF Rybnik, EDF Wybrzeze, EDF Krakow, Kogeneracja (owned at 50 % and one share) EDF's acquisition of EnBW interests in Poland has finalized on 16 February 2012. It led to the (indirect) acquisition by EDF International of 32.45% stake in EDF Rybnik, 15.59% in the Kogeneracja cogeneration and 25% stake in the shared service center EDF Polska CUW
Hungary
Poland
2 main subsidiaries: BE ZRt (Electricity and heat generation) and DEMASZ ZRt (Electricity and gas distribution & sales)
Hungary
Zielona Gora Electricity and heat (owns at generation 98.4% by Kogeneracja) BE ZRt
Electricity and heat generation
Slovakia
49% holding in Stredoslovenska Energetika (SSE) (Electricity and gas distribution & sales)(1)
Hungary
Electricity distribution EDF Group DMSZ ZRt & sales Electricity distribution & sales
Customers(approx.) : 770,000 Supply: 3.2 TWh Distribution: 4.4 TWh Delivery Points: ~ 775,000 Customers(approx.) : 630,000 Supply: 4.9 TWh Delivery Points: 722,000
Slovakia
SSE Group
39
Country profiles
EDF in Poland: a strong position in the 5th keymarket of the Group EDF Wybrzeze
Employees: ~3,500
Heat and/or electricity generation companies Trading (electricity, coal) EDF Group representation in Poland
Zielona Gora
Kogeneracja
PEC Tarnobrzeg
EDF Group is planning to improve the environmental standards of its plants in Poland
40
Country profiles
China
Key points
Map of operations
BUGET Gas & Engineering EDF: 20% DSPC Project SAN MEN XIA II 2 x 600 MW thermal SC EDF: 35% SZPC 3,060 MW thermal EDF: 19.6%
EDF Group is the largest foreign investor in the Chinese electricity sector
EDF has signed partnerships for developing nuclear power, coal-fired and hydropower facilities, electricity distribution and energy efficiency
First foreign company to invest in a Chinese nuclear power project (TNPJVC, 2009), at 31 December 2012, EDF owns 30% of TNPJVC, which aims to finance, construct, commission and operate two EPR nuclear power plants (2 x 1,750 MW) The reactor dome for the second unit was installed in September 2012. The reactor dome for the first unit was successfully installed in October 2011. Safety report has been sent to the Chinese Safety Authority in December 2012. 2013 will see further electro-mechanical assembly and the beginning of start-up trials Stakes in companies operating coal-fired power plants with a total installed capacity of 4,980 MW in Guangxi (Laibin B), Shandong (SZPC), et Henan (DSPC) Gas sector: At 31 December 2012, EDF is still a shareholder with a 20% stake in Buget, but has taken the decision to withdraw
(1) Data at 100%
Beijing FIGLEC Project LAIBIN B 2x360 MW thermal EDF: 100% + SYNERGIE in charge of operation and maintenance EDF: 85%
TNPJVC TAISHAN 1&2 EPR 2 x 1,750 MW nuclear JV EDF 30% , CGNPC 70%
Assets
Country Company name (stake) Asset Installed capacity(1)
41
2012
EDF strategy
Corporate responsibility
Financials
Market data
Appendices
48
49
43
EDFs strategy
Growing needs in energy and electricity, even with ambitious demand side management targets:
Energy demand x 1,5 Electricity demand x 2 44 By 2050, global GDP will be mutiplied by 4 12 20 20 Gtoe 000 TWh 2012 2050 2012 2050
Developing countries: 85 % of demand growth by 2035 Demography: 7 billion people in 2010, +2 billions by 2050 Economic catch-up Urbanization: today 50 % of the world population live in cities (vs. 70 % in 2050). Within the next 20 years, 10 mega-cities will reach 7 millions and more of inhabitants every year
India
Brazil
China
France
Japan
Russia
USA
In OECD countries, growing need for affordable energy costs to support competitiveness, industrialization and employment
Sources : IEA, ETP 2010, scenario +4
44
EDFs strategy
Security of supply: growing oil and gas imports weighing on external trade balances and the 3rd oil shock
In 2011, oil at record price for the last 100 years (Brent at USD111/bbl on annual average, in constant $). The resources exist (approx. 250 years of oil and gas including non-conventional), but with rising extracting costs. Scarcity is more economical and geopolitical than physical. Doubling of oil costs in Europe, China and Japan versus the average of the last 20 years.
France: overall energy bill is EUR 68bn in 2012 = the amount of the trade deficit
60 %
40 % 20 % 0% Gas exports 20 % 20 % China USA India
40 %
60 %
80 %
45
EDFs strategy
Climate change: a major issue in which the power sector plays a major role as its CO2 emissions represent 40% of the global energy sectors emissions
Without rapid changes temperature will rise by 5 to 7C Electricity sector is both part of the issue and part of the solution: Coal and gas provide 60% of the global power output and emit 40% of global energy related emissions. At the same time, CO2 free technologies already exist in the power sector (hydro, nuclear, renewable energies, etc.) CO2 free electricity can substitute fossil energy (transport, etc.)
CO2 emissions if the total fossiles fuels reserves are burned (oil, coal, gas) from 2012 CO2 emissions between 2000 and 2050 in order to limit the increase in temperature by +2C in 2100 CO2 emissions between 2000 and 2010
2860 Gt 1400 Gt
400 Gt
46
Local:
High expectations: need to expand and enhance the networks, quality of service, demand side management and environmental friendly districts, electric mobility, local generation of power and heat Urbanization trend: need to develop sustainable cities and smart power systems
Global:
Natural resources prices (coal, oil, etc.) are set on a global basis Industrial context and technologies: China manufactures 80% of global PV panels and represents half of the global new nuclear build. Within the next 20 years, half of the new hydro dams will be built in China and Brazil.
EDFs strategy
Leader and modern public service provider across the electricity value chain Leader in CO2 free energies Industrial know-how and complex systems management skills Building the future through investment in R&D and innovation
EDF: 73% CO2 free generation mix(1)
Competitive generation mix 10% 53% 17% 4% Nuclear Hydro Renewables Coal/Fuel Gas 16%
Low CO2 emissions: carbon factor for EDF at 117g CO2/kWh vs. 338g CO2/kWh for the European average(2)
Low exposure to commodities risk versus peers
(1) Net capacity (2) 2011 figures for European carbon factor (source: PWC - November 2012); 2012 figures for EDF Group
48
EDFs strategy
Strategic vision
Industrial view for the electricity value chain Integrated view of the overall power system
EDF cares about the countries interests in which the Group operates and the specific rules in place
Sustained relationships with local partners
49
EDFs strategy
Enhance its position in Europe: France, United Kingdom, Italy, Poland, and Belgium
Operate in key countries: where new technologies are being developed, in line with the future of EDFs activities and as a function of their geostrategic importance Develop opportunistically EDFs activities in specific countries
Build the future for our clients with an edge through innovation and with driven high quality teams
50
2012
EDF strategy
Corporate responsibility
Financials
Market data
Appendices
117
126
141
52
Generation
Networks
Gas
94
Thermoelectric plants
109
53
Generation
Nuclear
Thermoelectric plants
78
79 86
54
Long-term provisions
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
EDF: The worlds leading nuclear power plant operator, with 1,550 reactor years of experience Generating energy at competitive cost, not influenced by fossil fuel prices, with no CO2 emissions
3 EPR reactors
under construction
The new EPR will use 22% less fuel than the currently used PWR One EPR unit being built in France, two in China and projects under study in the UK
1,550 reactor-years
of experience operating the French fleet
55
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
Flamanville
74.8%(1) of French power generation in 2012 58 reactors in operation 19 sites 3 series of the same Pressurized Water Reactors (PWR) technology:
Nogent Seine
St Laurent Chinon Civaux Bugey Dampierre Belleville Fessenheim
900 MW 1,450 MW
1,300 MW 20 reactors 26 GW
Blayais
Golfech
just a nuclear operator, EDF is an architectassembler, meaning that it is responsible for the design, schedule
and building of the reactors with the benefit of running its fleet safely
900 MW 1,300 MW 1,500 MW EPR
56
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
Primary system
Secondary system
Cooling system
57
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
An average age of 27 years 44 GW commissioned between 1980 and 1990 out of a total installed capacity of 63 GW in France Technical standardization and constant improvement of safety EDF, architect-assembler, owner and operator of its plants
Investment program for replacing large components after 30 years of operation (2010-2020)
Obsolescence of some large components that must be replaced after approximately 30 years of operation (international benchmark)
With a view to operating facilities beyond 40 years
Consistency of the target with the global trends observed for similar technologies (PWR)
EDF proposes a re-evaluation of specific safety standards to the ASN in order to achieve an implementation during the 4th 10-year visit for the 900 MW and the 3rd 10-year visit for the 1,300 MW plants
58
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
The French regulatory framework: safety re-evaluation every 10 years to strengthen the power plant conception
Implementation of a safety standard and an improvement program during the 10-year visit for each series, after the French Nuclear Safety Authority (ASN) approval Systematic re-evaluation of the safety requirements with the national feedback and the development of scientific and technical knowledge
Reinforcing current protection of facilities and certain materials against earthquakes and floods Reinforcement of back-up water and electricity supplies Implementation of the Force dAction Rapide Nuclaire (FARN Nuclear Rapid Action Force) to bring, within 24 hours, human and material needs on any site in critical situation
To implement post-Fukushima measures With an eye to the future major maintenance works
59
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
Planned outage
For refueling, maintenance, repairs Duration: variable, between 30 and 100 days
Generation
Planned outage
900 MW:
Ordinary shutdown for refueling only (ASR): unloading spent fuel and refueling fresh fuel Standard period 35 days Partial inspection for refueling and maintenance (PI): refueling and maintenance. Standard period 60 days, varying according to programs for maintenance work
10-year inspections: standard period 100 days, varying according to programs for safety upgrades and maintenance work
Regulatory obligations (safety tests and various controls), adapting safety to latest standards, maintenance work and changes 60
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
8
7 6 5 4 3
900 MW
1,300 MW
2
1 0
2011 2012 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E
61
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
50000
40000
Allemagne
Germany
30000
Spain
20000
France UK
10000
Italie
Italy
0 1
Jan.
Feb.
Mar.
Apr. June
5
July
Aug. Sept.
8
Oct.
10
Nov.
11
Dec.
12
62
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
A minimum number of outages during winter Necessary balance between 12-month and 18-month production cycles
Year 2012 / Number of PWR units in planned outage/week(1)
20 18 16 14 12
10
8 6 4 2 0
0
(1) At a specific instant t
10
20
30
40
50
63
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
95
427
428
418 418 408 421
85
417 77.0 77.6 77.4 75.6 75.3 75.5 76.1 76.1 73.8 73.0 401
421
75
72.8
74.1
405
400
70.7
395
65
390
55
2000 2002 2004 2006 2008 2010 2012 350 2000 2002 2004 2006 2008 2010 2012
64
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
82.8
83.4
78.0
78.5
79.7
represents the available energy as a percentage of the maximum energy that could be generated if the installed capacity were operated year-round
The
Ku,
or utilization factor
is the energy generated as a percent of energy available and reflects environmental and social constraints, supply of system services and optimization
95.4 90.6
The multiplication of the Kd and the Ku leads 94.1 94.5 91.8 to the , or load factor, defined as the generated energy compared to the maximum theoretical energy
Kp
85
2002 2004 2006 2008 2010 2012
Kp = Kd x Ku
65
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
PWR US fleet operates purely under base-load generation French fleet operates with seasonality of outages
75
- 2 pts: fuel management method (fuel cycle) - 2 pts: solicitation method (load monitoring in France)
65
1990 1995 2000 2005 2008
66
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
30
32
The number of automatic outages is a key indication of safety. It measures the quality and seriousness with which operations are conducted. The results of EDFs fleet have been among the best in the world over the last five years
Contractors
0.9 0,9
H.Sv/tr 0.67
10
EDF
5
0,7 0.7
4.2 2.7
Thanks to initiatives jointly-led by EDF and its suppliers, all employees benefit from the same safety level which is constantly improving
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
0.5 0,5
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
(1) Number of accidents with work stoppage per 1 million hours worked
67
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
Pursuing replacement of large components (steam generators, alternators stators, main transformers) Reinforcing industrial management of planned outages to reduce outage extensions
Improving the reliability of equipment through preventative maintenance to reduce unplanned unavailability
68
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
69
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
Corrective measures
Corrective measures prioritized according to the component's criticality
Life cycle management Life cycle management adapted to the component's criticality
(1) AP913 is an equipment reliability process description established by the French Institute of Nuclear Power Operations (INPO)
70
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
Objective: reduce the time for outage extension periods via continuous management of the critical activities of the outage and a reactive response to technical alerts
71
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
Hunterston B Torness
Generated c.17%(1) of UK output in 2012 8 nuclear power stations 15 reactors in operation 2 technologies (AGR and PWR), with a total capacity of 8.7 GW
Hartlepool
Heysham 1 & 2
An AGR has a graphite moderator helping to control the reaction. The reactor is
encased in a steel-lined pre-stressed concrete pressure vessel several meters thick which also acts as a biological shield. The steam generator in which water is heated is situated inside the pressure vessel. An AGR uses enriched uranium dioxide encased in a stainless steel pin for its fuel and CO2 as its coolant
A PWR is contained inside a steel pressure vessel filled with pressurized water
which acts as the coolant and moderator. The fuel used is enriched uranium dioxide and is contained in zirconium alloy tubes
72
(1) Source: Department of Energy & Climate Change Energy Trends, March 2013
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
80%
78%
Kd (availability factor)
70%
60%
63%
53%
50% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
2007
Output (TWh) Kd (%) 51.9 67%
2008
40.2 53%
2009
55.1 72%
2010
48.3 63%
2011
55.8 73%
2012
60.0 78%
+4.2 TWh in 2012 (compared to 2011), in accordance with the objective of achieving a nuclear output higher than 55 TWh
73
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
Strong improvement of the operational performance, with an output of 60 TWh in 2012 (+4.2 TWh yoy), in accordance with the performance objective of achieving a nuclear output higher than 55 TWh
Adequacy of each station confirmed at each statutory outage - Office for Nuclear Regulation (ONR) has to provide consent to restart after each outage Periodic safety review (PSR) undertaken every 10 years, also requiring ONR acceptance Following events in Japan
EDF Energy has completed evaluations required by WANO, responded to the ONR recommendations and responded to the EU Stress Test EDF Energy concluded, with agreement from the ONR, that the fleet of existing stations is safe to continue operations. However the Stress Test examinations and subsequent work has identified some areas for improvement and opportunities for resilience enhancements have been identified and additional safety investment to implement these is planned over the next few years
Life extension subject to review of safety, technical and economic factors Target to extend the lives of the AGR by an average of 7 years, and Sizewell B by 20 years Life Extension of 7 years for Hinkley Point B and Hunterston B confirmed in 2012
74
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
Heysham 2
Torness Dungeness Sizewell
We expect to achieve an average of seven years life extensions across the AGR fleet (relative to scheduled closure dates at acquisition in 2009)
Period to Scheduled Closure Date (at acquisition in 2009) Extensions since 2009
We now expect an average of seven-year life extensions across the AGR fleet and 20 years for Sizewell B
Note - The 7 year average is referenced against the plant lives at acquisition in 2009 Hartlepool / Heysham 1 have already been extended by 5 years in 2010 and Hunterston - Hinkley by 7 years in 2012
2055
75
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
Nov-05
May-06
Nov-06
May-07
Nov-07
May-08
Nov-08
May-09
Nov-09
May-10
Nov-10
May-11
Nov-11
May-12
Nov-12
Good
1.50
1.00
0.50
0.00 Dec-02
Dec-04
Dec-06
Dec-08
Dec-10
Dec-12
76
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
Key Objectives
Excellence in Safety Safety is over-riding priority Achieve sustainable output of >55 TWh per annum; key focus areas identified Maintain adequate investments in plant including that necessary to support life extensions and post-Fukushima enhancements Maintain and develop skilled workforce to support UK new build program
Zero harm Seek opportunities to further enhance output sustainably Deliver life extensions of an average of 7 years for the AGRs and 20 years for Sizewell B Closely aligns with the UK ambition to achieve secure, affordable and low carbon electricity
77
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
Post-Fukushima
France United Kingdom USA
The NRC(2) set 5 years(2012-2016) to introduce all the Fukushima lessons to the safety standard, with 7 short-term priorities : crisisresponse systems in the event of an external attacks and electricity outages, venting for BWR, surveillance of the pools, crisis response teams, management procedures for serious accidents Transmission of preliminary reports 14 September 2011: EDF submits to the French Nuclear Safety Authority (ASN) the 19 reports on Additional Safety Assessments From 15 April 2011 to 31 July 2011 + EDF Energy submits 8 additional safety reports to the ONR(1) on 31/10/2011
3 January 2012: ASN submits to the Government its opinion about the Additional Safety Assessments in which it considers that the facilities examined show a sufficient level of safety, and that it will not thus request the immediate shutdown of any of them. At the same time, the ASN considers that continuing to operate facilities requires an increase in their robustness as soon as possible; to an extent beyond that set down in the existing safety margins, to cope with extreme situations . Reinforcing current protection of facilities and certain materials against earthquakes and floods Reinforcement of back-up water and electricity supplies Implementation of the Force dAction Rapide Nuclaire (FARN Nuclear Rapid Action Force) to bring, within 24 hours, human and material needs on any site in critical situation
According to the ONR(1) Neither the reviews undertaken by the Licensees for the stress tests, nor the earlier national reviews has indicated any fundamental weaknesses in the definition of design basis events or the safety systems related To the stress tests to withstand them for UK NPPs
A preliminary campaign of reinforced control against external aggression (earthquakes, floods, tornadoes) permits to avoid immediate shutdowns but some tests are still ongoing
Implementation of prescriptions
For the entire fleet, preparation for emergency have been stepped up to reflect a better understanding of the evolution of serious and the availability of emergency equipment
The US nuclear industry anticipated and reinforced its intervention/assistance tools immediately, with the support of the INPO(3) and the EPRI(4). All the procurements have been arranged at the end of 2012. The industry also decided and implemented two regional rapid action centers
(3) Institute of Nuclear Power Operations (4) Electric Power Research Institute
78
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
Safety:
Accident probability reduction (factor 10) External hazard protection (aircraft shell) Evolutionary design (core catcher) Annual generation boosted over 36% Thermal efficiency improvement (+ 3 pts) Increased availability (91%) 40% cut in present exposure Very important reduction of radioactive waste and gaseous and liquid discharges
Performance:
Radiation protection:
Environment:
79
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
94% of civil engineering completed 39% of electro-mechanical assembly completed Turbo-alternator unit components being achieved A full-scale simulator has been brought into service Pumping station operational
New supports for the polar bridge of the reactor building installed Installation of reactor dome expected for summer 2013 Proceedings with the French nuclear safety authority (ASN):
81
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
Flamanville 3 EPR: a first of a kind achievement, the feedback of which will benefit other projects
Close cooperation with Areva teams on the French and Finnish EPRs
Organization designed to encourage Flamanville 3 feedback for the other projects, of which Taishan, and reciprocally An in-depth analysis of Flamanville 3 to improve scheduling for next EPRs:
82
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
China TNPJVC
Taishan 1 & 2 (EDF 30%)
Two 1,750 MW EPRs under construction 16,000 people involved Construction work carried out at 31 December 2012
Unit 1: end of welding work on main primary circuit, civil engineering on reactor building and adjacent auxiliary buildings complete; installation of first parts of turbo-alternator Group and first condenser
Unit 2: dome of the reactor building installed, main bridge in the machine room installed Common areas: commissioning of water demineralization station
83
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
26 November 2012: Office for Nuclear Regulation granted a Nuclear Site Licence for Hinkley Point C 13 December 2012: Health & Safety Executive issued a Design Acceptance Confirmation and the Environment Agency issued a Statement of Design Acceptability of the EPR Pressurised Water Reactor 4 February 2013: Centrica announced its decision not to participate in UK Nuclear New Build. This decision does not affect the continuing partnership between the two companies in the Nuclear Generation business 13 March 2013: Environment Agency granted the three main environmental permits required for operating the proposed site at Hinkley Point C 19 March 2013: The Secretary of State for Energy and Climate Change approved the Development Consent Order giving the planning permission to EDF to build a new nuclear power station at Hinkley Point C Final Investment Decision to be made following conclusion of discussions with the UK Government on Contracts for Difference
United States
84
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
In the UK, Contracts for Difference can provide the certainty investors need to build new low carbon plants
Illustrative Impact CfD on Revenues for Low Carbon Generators (/MWh) starting 2018 Introduction Generator pays difference
Reduce market volatility and risks for investors Offers a fair deal for consumers
Not a new mechanism
IPPs in the 1990s Used extensively during the Pool Common in commodities trading
2010
2015
2020
2025
2030
2035
85
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
In France, EDFs provisions are calculated in accordance with the law of 28 June 2006 and relevant expenses are estimated based on the economic conditions of the year-end We may distinguish between two categories of provisions:
Another way to look at it from a financial point of view is to separate them based on the necessity to cover the provisions with dedicated assets
Indeed, only provisions for decommissioning, for long-term radioactive waste management and a part of provisions for last cores are to be covered by dedicated assets (see financial section for more information on dedicated assets) The rest of the provisions (mainly provisions for spent fuel management) are part of the operating cycle and are not subject to the dedicated assets constitution
86
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
Final shutdown
Phase 1
The first phase consists of unloading the fuel and draining all systems (after which 99.9% of on-site radioactivity has been eliminated), followed by decommissioning (dismantling of decommissioned non-nuclear installations)
Phase 2
Partial dismantling
The second phase consists in dismantling all equipment and buildings (with the exception of the reactor building), the packing and shipment of all waste to accredited storage and disposal facilities and monitoring of the reactor building
Full dismantling
Phase 3
This final phase involves the full dismantling of the reactor building and of materials and equipment that are still radioactive, as well as the removal of waste produced in this phase 3
The duration and complexity of the three phases may vary according to the actual scope of the work that needs to be done
87
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
Chooz
Brennilis
Chinon
Bugey
Creys Malville
Chinon A1 (70 MW): 1963-1973 Chinon A2 (200 MW): 1965-1985 Chinon A3 (480 MW): 1966-1990 Saint-Laurent A1 (480 MW): 1969-1990 Saint-Laurent A2 (515 MW): 1971-1992 Bugey 1 (540 MW): 1972-1994
88
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
An OECD-NEA study published in late 2003 listed all costs, in USD (as of 1 July 2001) reported by various PWR operators worldwide, with the following results:
- Sweden: 93 USD / kW - Spain: 166 USD / kW - Belgium: 212 USD / kW - France: 225 USD / kW (with USD 0.85 = 1 EUR) - Japan: 405 USD / kW - United States: 256 to 420 USD / kW - Germany: 270 USD / kW - Switzerland: 234 USD / kW
Excluding extreme values (Sweden and Japan), reported costs are within the same order of magnitude, with France 10 to 15% below average, which can be explained by the series effect that may be reasonably expected for the PWR fleet EDF believes that the international benchmark published by the Cour des Comptes(1) in January 2012 strongly underestimates the correction on the management of spent fuels and for the cost difference between the type of plants (especially UK reactors, which are more costly to dismantle), thus inflating its estimate of the dismantling costs
89
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
A direct comparison of nuclear provisions (dismantling and downstream cycle) in EDFs accounts with German plant operators provisions is hindered by the important provisions aggregation reported by German plant operators German plant operators higher level of dismantling provisions, when compared to their installed base, may be due to several factors :
The effect of discounting, as the French fleet is younger: a 10-year time lag lowers provisions by 25%
Differences in scope: in Germany, dismantling costs include the costs of building and operating an on-site spent fuel storage building
The effect of greater volumes and standardization of processes and a lower dismantling cost for PWR reactors than for all the other types of reactors
Structural differences in organization and industrial choices (German reactors are of various types and are run in a decentralized manner, in contrast to the integrated and standardized fleet in France)
EDFs specific factors explain why its nuclear provisions are lower than some other operators
90
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
Turbine Condensor
Alternator
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
Evacuation and storage of radioactive waste from the dismantling of nuclear facilities
Evacuation and storage of radioactive waste from the treatment of spent fuel in La Hague
Long-term warehousing and direct storage not recyclable on an industrial scale in existing facilities EDF share of evaluation costs and costs of coverage, closure and supervision of storage centers:
Existing centers for very low-level, low-level and intermediate-level radioactive waste
Centers need to be created for long-lived low-, medium- and high-level radioactive waste (HL/IL-LL)
92
Generation
Nuclear
Existing Nuclear UK
Safety
Long-term provisions
Cigo, proposed facility for reversible deep-storage of radioactive nuclear waste in France
The law dated 28 June 2006 on the sustainable management of radioactive waste and other substances lays down the principle of a reversible storage facility located in a deep geological layer for the long-term management of final radioactive waste (HL/IL-LL). ANDRA is in charge of designing, building and operating the future storage facility EDF is responsible for managing the radioactive waste its nuclear plants create and works in close collaboration with ANDRA in order to implement a storage solution that is safe and cost effective. This cooperation is spelled out in an agreement signed between ANDRA, EDF, AREVA and the CEA in early 2012 The public debate on a storage facility in the French departments of Meuse and Haute-Marne (Cigo) is taking place over a period spanning from 15 May to 15 October 2013
Publication of the report and a summary of the public debate on 12 December 2013 2015: ANDRA submits request for authorisation to build Cigo 2019: Construction of Cigo facilities (excluding prep work) begins 2025: ANDRA commissions Cigo, subject to the authorisation of the French Nuclear Safety Authority (ASN)
Provisional timeframe:
An update on the full cost of the project is expected before the end of 2013
93
Generation
Nuclear
Thermoelectric plants
105
94
Generation
Key highlights
Hydropower
Other renewables
Europes leading hydropower producer In France, EDF operates 435 hydropower plants and manages the water reservoirs held by its 239 large dams. In Italy EDF owns 47 hydro plants Architect and lead contractor on international hydro projects As of 31 December 2012, EDF holds 40 % of Nam Theun 2 Power Company (NTPC), owner of the hydro plants complex of Nam Theun 2 (for a total of 1,070 MW) Feasibility studies conducted in Brazil (5 facilities complex for a total capacity of about 10,682 MW) A major player in the green energies market EDF EN among the world top 10 leaders in wind and solar EDF EN is expanding in Europe, North America and Africa 2012 was a record year for the commissioning of about 1,550 MW of new wind and solar capacity Wind power and solar photovoltaic: supporting a growing industry Wind offshore in France: in April 2012, three of the French governments four wind power projects were awarded to the consortium headed by EDF EN in the first tenders for offshore wind power launched in 2011 (1,500 MW)
36
35
34
26
#5
25 25 24 19 15 14 13 11
Hydro Renewables
10 9
95
Generation
Key highlights
Hydropower
Other renewables
301 MW
90 MW
MW Hydro MW Other renewables
303 MW
56 MW
1,361 MW 935 MW
301 MW
6 MW
(1) Including EDF EN small hydro Note: These figures are consolidated Sources: EDF, EDF EN
96
Generation
Key highlights
Hydropower
Other renewables
Vietnam
(1) Including French Islands activities and excluding Rance tidal power plant (2) The EDF EN figure does include the whole worldwide installed capacity (3) On 24 May 2013, EDF and EPH has signed definitive agreement for the sale of 49% of Stredoslovenska Energetika A.S. (SSE). The contemplated transaction will be submitted for authorization to a general meeting of shareholders of SSE. Closing is expected during second semester of 2013 following receipt of antitrust clearance Note: these figures are including minority financial participations
97
Generation
Key highlights
Hydropower
Other renewables
Benefits of hydropower
Speed, availability and flexibility Renewable energy: annual savings of 13 million ToE (tons of oil equivalent) Water storage capacity (peak energy, cold source for thermal and nuclear generation) Able to provide system services to the network (adjustment of frequency and voltage)
(1) Gross hydro production of 41.2 TWh, of which 6.7 TWh of pumped storage consumption
98
Generation
Key highlights
Hydropower
Other renewables
Run-of-river
Pondage water
Average size water reserve (daily or weekly) Generation is concentrated at peak hours
Reservoirs
Large storage capacity Influence on downstream plants, which calls for management of valley stations Development of management strategy: trade-off between immediate gain and future gain to maximize the asset's value
Water is pumped from a downstream reservoir to an upstream reservoir to create a reserve during off-peak hours Water is turbined from the upstream reservoir to the downstream reservoir during periods of high demand Grand-Maison, Revin, Montezic, Super Bissorte, La Coche, Le Cheylas
99
Generation
Key highlights
Hydropower
Other renewables
Tidal
Tidal
0.2
Run-of-river Reservoirs
0.5
Run-of-river
Reservoirs
3.6
8.8
17.1
15.8
Pondage
3.1
Pumped storage
4.3
20% of the overall EDF generation capacity in France
(1) Excluding Corsica and the French Overseas departments, 400 MW in 2012
1.1
8.8
10% of the average EDF output in France
100
Generation
Key highlights
Hydropower
Other renewables
23 TWh gap between highest and lowest annual output potential over the past 23 years (1989-2012)
1989-30.5 TWh 1989-30,5 TWh
4,0 4.0
3.0 3,0
2,0 2.0
1.0 1,0 0.0 0,0
Maximum potential hydropower capacity: maximum quality of power that can be produced from hydraulic sources (rain, snow, tides) over a given period of time
101
Generation
Key highlights
Hydropower
Other renewables
Generation
Key highlights
Hydropower
Other renewables
A 250m investment 93 MW capacity Construction begun in 2011; plant set to come on line in 2017 155 GWh potential output gain A 60-year concession
103
Generation
Key highlights
Hydropower
Other renewables
On 22 April 2010, the Ministry of Ecology, Energy and Sustainable Development and Sea announced the scope of the renewal of hydroelectric concessions EDF currently holds the majority of the hydropower concessions in France 10 concessions, corresponding to a total power of 5,300MW and representing some 20% of the French hydropower fleet (of which 4,300 MW held by EDF), are concerned To put together these valley concessions, the French government decided that half of EDF concessions (2,150 MW and about 3.5 TWh) are to be renewed early. Outgoing operators will receive compensation for the lost income stemming from the early termination of the concession, in accordance with the terms of the concession agreement EDF is preparing to submit its best offer for each concession, combining improved energy efficiency, attention to the environment (water resource, aquatic environment,) , compensation of the government and local authorities through fees and land development, while ensuring the safety and the social aspect of the operation
In November 2012, a fact-finding parliamentary mission was created to study the award of hydropower concessions. The Rapporteur of this mission is expected to release his findings during the first semester 2013
104
Generation
Key highlights
Hydropower
Other renewables
1999
2000
2002
2004
2006
2008
2011
2012
Creation of ENR, a joint venture with EDF in distributed energies 500M capital increase to finance the plan to expand in solar energy
Acquisition of EnXco in the United States EDF raises its stake in SIIF Energies to 50%
EDF acquires full ownership of EDF Energies Nouvelles shares EDF EN and its local partners were the successful bidders for three off-shore wind power farms. Implementation in South Africa, Morocco, Israel and Poland
105
Generation
Key highlights
Hydropower
Other renewables
Gross
at 31/12/2011 3,521.5 413.5 84.2 60.3 26.0 19.2 at 31/12/2012 4,680.3 497.3 84.2 64.9 26.0 19.2 at 31/12/2011 2,789.5 340.6 77.1 59.5 18.2 6.7
Net
at 31/12/2012 3,629.2 409.6 81.4 63.0 18.2 6.7
4,124.7
1,490.1 287.1 4.3
5,371.9
1,113.4 170.4 45.1
3,291.6
892.2 153.5 3.2
4,208.1
577.8 164.2 43.8
1,781.5 5,906.2
1,328.9 6,700.8
1,048.9 4,340.5
785.8 4,993.9
106
Generation
Key highlights
Hydropower
Other renewables
Tender in French off-shore windfarms: success of the consortium led by EDF EN on 3 sites out of 4
Best industrial program (40% of the score)
Three out of four projects won by the consortium led by EDF EN (up to 1,500 MW)
Le Trport(1) (Seine-Maritime) 600 to 750 MW Fcamp (Seine-Maritime) 480 to 500 MW
Over 7,000 direct and indirect jobs Direct drive turbine of 6 MW Alstom
The most comprehensive technical and environmental studies (20% of the score)
Extensive wind studies and extensive geotechnical investigations Long involvement with local stakeholders
Electricity tariffs corresponding to the Groups investment criteria (40% of the score) Investment post-2015 and commercial operation in 2017 at the earliest
Brest
Saint-Nazaire
107
Generation
Key highlights
Hydropower
Other renewables
Tender in Moroccan and South African wind: EDF EN selected as preferred bidder
Morocco: Tazas project (150 MW) Competitive mix of Alstom 3 MW turbines Support of the Alstom experienced and effective local structure Very competitive investment and excellent wind conditions Partnership with Mitsui 20-year PPA with ONE being finalized South Africa: Chaba (20.6 MW), Waainek (23.3 MW) and Grassridge (59.8 MW) 3 MW Vestas turbines Projects carried out via the local developer Innowing, EDF EN 80%-owned subsidiary PPA guaranteed by South Africans State Commissioning expected by 2015
Generation
Nuclear
Thermoelectric plants
112
116
109
Generation
Thermoelectric plants
Overview
Focus on France
Focus on international
Fossil Fired Generation is likely to remain the number one source of electricity generation in the world
In TWh
Biomass
Other renewables Oil 0
Source: IEA 2010 report
2,000
4,000
6,000
8,000
10,000
110
Generation
Thermoelectric plants
Overview
Focus on France
Focus on international
EDF experience in fossil-fired generation is reflected by existing assets and current investments in France and abroad
An important part of the energy mix for the Group (25% of the installed capacity) variable between the countries (12% of installed capacity of EDF in France and c.80% in Italy) Development of plants / IPPs in Asia (China, Vietnam), South America (Brazil) and Europe Development of gas thermoelectric plants: construction of CCGTs (4 in France and 3 in the UK)
~ 38(1) GW
Installed worldwide
Development of more efficient combined cycle gas plants (reducing by 50% the CO 2 emissions by kWh produced, three times less of nitrogen oxide and very little sulfur and dust) Engagement in the supercritical coal technology with better environmental performances (JV in China with Sanmenxia 2 supercritical power plant)
~ 23 GW
made up of fuel-fired and coal plants
Investment in a new generation combined cycle gas in Bouchain with GE Flex Efficiency turbine (efficiently raised by 61% and maximal power reached in 30 minutes) Target of increasing responsiveness and flexibility of fossil-fired plants to compensate for the volatility of generation from renewable energies
~ 15 GW
made up of gas-fired plants (incl. cogeneration)
(1) Net generation capacity
111
Generation
Thermoelectric plants
Overview
Focus on France
Focus on international
350
Europe (2011)(1)
300
250
EDF Group (2012)
(1) European carbon factor of the main electricity producers (source: PWC study November 2012)
112
Generation
Thermoelectric plants
Overview
Focus on France
Focus on international
Gennevilliers
1
2 1 2 2
4 3 4
Bouchain
2
La Maxe
Paris
1 2 3 3 1 2 1 3 4
Vaires /Marne
4
Four c.600 MW units Fuel oil-fired plants Four c.600 MW units Four c.700 MW units
Brennilis Cordemais
Blnod
Montereau
2
Arrighi
Vitry / Seine
Aramon
510 MW of CCGT under construction (Bouchain in 2015) Combustion turbines 13 turbines totaling 1,862 MW
Martigues
113
Generation
Thermoelectric plants
Overview
Focus on France
Focus on international
12 10 8 6 4 2
400
200 0
1990
2000
2010
2016
2020
CO2
114
Generation
Thermoelectric plants
Overview
Focus on France
Focus on international
Repowering of the first 465MW production unit of a Combined Cycle Gas (CCGT) plant on 31 August 2012 A second unit commissioned on 7 June 2013 Repowering:
Combining a combustion turbine and an exhaust-recovery boiler Half the CO2 emissions Four-fold reduction in nitrogen oxide emissions Little dust, very little sulfur oxide 57% efficiency vs. 37% for old facilities
The site, with the two units, is the most powerful CCGT by repowering in France with 930 MW
Investment for the two Combined Cycle Gas: 500m 15% less expensive than building a new facility
115
Generation
Thermoelectric plants
Overview
Focus on France
Focus on international
Italy CCGT Tarente (96) & Piombino (2000) Spain IGCC Puertollano (99) Mexico CCGT Altamira 2 CCGT Rio Bravo 2-3-4 CCGT Saltillo (2001 to 2005)
China Coal Laibin (2000) Shandong (Heze & Liaocheng) (2003-04) partnership Sanmenxia (since 2009) Vietnam CCGT Phu My (2005)
Ivory Coast TAC Azito (1998) Egypt GAZ Suez & Port Sad (2003)
Lebanon Beddawi & Zahrani (98) Saoudi Arabia Subsidiary creation EDF Saudi Arabia (2010)
Generation
Networks
Gas
117
Networks
Overview
Focus on transmission
Electricity transmission
France: via RTE, with 100,000 km of lines and more than 2,600 substations and 46 cross-border interconnections Engineering projects outside France led by EDF in Vietnam and Senegal
Electricity distribution
France: via ERDF, lectricit de Strasbourg, EDF IES (in France), with ~1.3 million km of lines Hungary and Slovakia(1): through Group subsidiaries which own high, medium and low voltage grids Increasing use of delegated management partnerships (e.g agreement signed with the Russian power distributor MRSK and with the Chinese State Grid) Evolving business model to take into account various new decentralized generation solutions and allow consumers to manage their consumption more closely
(1) On 24 May 2013, EDF and EPH have signed a definitive agreement for the disposal of EDF's minority stake of 49% in Stredoslovensk Energetika a.s. (SSE). The contemplated transaction will be submitted for authorization to a general meeting of shareholders of SSE. Closing is expected during second semester of 2013 following receipt of antitrust clearance.
118
Networks
Overview
Focus on transmission
Multi-year predefined tariffs over 4 years (from 1 August 2009 until 31 July 2013 for the TURPE 3) General principle is to cover costs and to give a return on capital invested: cost + type regulation Rate of return is computed on Regulated Asset Base (RAB) at a nominal pre-tax rate equal to 7.25% (for Transmission & Distribution) Incentive regulation on 4 items: manageable costs, network loss purchase, quality of supply (distribution) and quality of service A regulatory account, the Compte de Rgulation des Charges et Produits (income and expenditure adjustment account), measures and compensates ex-post, differences between actual outcomes and forecast on which the TURPE is determined by the CRE. CRPC in particular protects ERDF and RTE against volume risk Evolutions between TURPE 2 and TURPE 3
Extension of CRCP scope and annual indexation Incentive regulation (bonus/malus) on 4 items: manageable costs, quality of supply, quality of service and network loss purchase
119
Networks
Overview
Focus on transmission
November 2012: cancellation by the French State Council (Conseil dEtat) of TURPE 3 distribution
February 2013: CREs proposal for new TURPE 3 distribution to be implemented in June
June 2013: CREs consultation on TURPE 4 distribution 1st January 2014: expected implementation of TURPE 4 distribution 1st August 2013: TURPE 4 transmission implementation
1st June 1st August 1st January 2014
Transmission
120
Networks
Overview
Focus on transmission
Remuneration of RAB
and WCR) =
Regulatory Asset Base (RAB) 11.7bn at the end of 2012
+
Industrial Depreciation
Each year
+
Regulatory rate of return
RAB beginning of the year remunerated at 7.25% Work in progress remunerated at a rate of 4.6%
Operating Expenses
121
Networks
Overview
Focus on transmission
11.2bn at 01/01/2011
10.7bn at 01/01/2010 Fixed assets (excluding work in progress(1))
+
Industrial depreciation 0.6bn
+
Operating expenses 3.0bn
Revenues from regulated tariffs 4.0bn 3.8bn in 2009 4.0bn in 2010 3.9bn in 2011
122
Networks
Overview
Focus on transmission
Yearly indexation TURPE 3 (HCPI-X+ K). Tariff is adjusted each year on the implementation date of TURPE 3 (after an initial increase of 2.0% on 1 August 2009) Transmission:
2.5% increase on 1 August 2010, then 2.56% increase on 1 August 2011, then 2.79% on 1 August 2012 Yearly indexation on 1 August based on the formula: HCPI - X + K
HCPI = harmonized consumer price index of Year N-1 -X = 0.4% (cost factor: tariff-based costs evolve faster than inflation) K = CRCP reconciliation term
Yearly indexation TURPE 4 (CPI+ K). Tariff is adjusted each year on the implementation date of TURPE 4 (after an initial increase of 2.4% expected on 1 August 2013) Transmission:
CPI = Consumer Price Index in France excluding tobacco of Year Y-1 K = CRCP reconciliation term
123
Networks
Overview
Focus on transmission
Electricity transmission
7.25%
nominal before taxes
2.4% on 1 August 2013 Inflation (CPI) + CRCP on 1 August each following year 2014-2016
124
Networks
Overview
Zoom transmission
Other 0.33bn
Delta = - 0.09bn
Delta = + 0.34bn
(1) Excl. Work in progress (1.1bn) remunerated at a rate of 4.8% and 1976 appraisal difference
125
Generation
Networks
Gas
126
Optimization principles
Supply in France
The main role of the optimizer is to ensure the balancing between sources and uses of energy in France The objective is to secure and maximize the gross electricity margin of the generation-supply entity through the optimal use of upstream or downstream asset flexibility and by seeking the best purchasing and sales opportunities on wholesale markets:
Upstream resources: generation fleet, long-term electricity purchasing contracts, bilateral purchasing agreements, purchases on wholesale markets, purchase obligations from decentralized producers Downstream commitments: long-term supply contracts, bilateral sales agreements, sales to end users, sales on wholesale markets
The goal of the optimizer is to optimize costs and inventories, resorting to the wholesale market (through EDF Trading)
The supply-demand balance is forecast over different time horizons To face the volume risk and the main critical situations, sufficient margins in terms of capacity must always be available
127
Optimization principles
Supply in France
United Kingdom
Belgium
NA
Optimization principles
Supply in France
Peak facilities
The optimizer schedules the operation of generation facilities, ranking according to their merit order, until the estimated demand is met
Must-run generation
Combustion turbines Reservoir hydro facilities Thermal power (oil and coal)
Nuclear power
Hydro ( et run-of-river Thermique flamme (fioul, charbon CCG) & pondage facilities) & Purchase obligations (wind, )
The merit order is a way of ranking available sources of energy, especially electrical generation, in ascending order of their shortrun marginal costs of generation, so that those with the lowest marginal costs are the first ones to be brought online to meet demand, and the plants with the highest marginal costs are the last to be brought on line
129
Optimization principles
Supply in France
Before the market, each producer determines the resources required to meet a given level of demand It classifies its available generation facilities from the least expensive to the most expensive It then determines the marginal cost of purchases/sales on the market to meet the supply-demand balance of its own portfolio:
Nuclear
Charbon Coal
Gas
80,000
130
Optimization principles
Supply in France
Structural diagram:
The objective is to make the Producer, the Optimizer and the Supplier responsible for their own activities within an explicit mandate There is a joint objective, to maximize the gross margin, driven primarily by the Optimizer
Producer Optimizer Supplier
Gross Electricity Margin Supply/Generation Responsibilities Ensuring the availability of generation facilities Controlling maintenance operating costs Responsibilities Optimizing the Upstream/Downstream balance Maximising the consolidated gross margin Managing risks Responsibilities Maximizing supply margins Guaranteeing market shares
131
Optimization principles
Supply in France
Its best estimate of the availability of generation facilities Complete transparency on its constraints and costs
Its best estimate of the development of its customer portfolio and volumes consumed by its customers Full transparency on products sold to its clients, including embedded optionalities with the associated risks
Economic signals so that each entity will manage their portfolios in order to maximize gross margin
132
Optimization principles
Supply in France
Thermo-sensitivity of consumption: temperature has a strong influence on demand in winter, one degree less equals to 2,300 MW of higher consumption in France
Variations in water levels major variation in generation potential year on year (typically c.15 TWh between a dry year and a rainy year) Unplanned unavailability of generation facilities (nuclear power, fossil-fired power, ...) Mandatory purchases from smaller producers (decentralized): strong fluctuation in contribution of renewable energies (up to~ 2,600 MW from one day to another on the French wind power generation) Sales on the wholesale markets: optionalities at the hand of EDF counterparties
133
Optimization principles
Supply in France
The optimizer balances the difference by transacting on the wholesale market, when there is a difference between the sum of the upstream and downstream positions It is possible to transact different products over different time periods
Medium term: purchases or sales of annual products for the year Y+1/Y+2/Y+3 Short term: same principle with purchases/sales today for the next day (spot) or over the next few hours of the day Intermediate products (quarterly products over two to three coming quarters and weekly products over two to three coming weeks) also exist
The optimizer can directly contact its potential counterparties or go through the organized markets
OTC (over the counter) bilateral agreements: direct trade with counterparty Regulated exchanges: pooling of supply and demand by a market organizer and settlement of trades (Epexspot in France, Belpex in Belgium, etc.)
The optimizer for France has access to the market exclusively via EDF Trading
134
Optimization principles
Supply in France
France: upstream/downstream electricity balance in 2012 (excluding French electrical islands business)
In TWh
Output/Purchases
Sales
521
Net market purchases Purchase obligations LT & structured purchases Fossil-fired Hydropower Nuclear 405 25 36 15 5 35
+13
+18 +3 -3 +3 +8
521
61 NOME supply 27 55
+13
+30 -13 -11
Endcustomers
378
+7
(1)VPP: capacity auctions, now ended, resulting from a commitment by EDF to the European Union in the context of EDFs acquisiti on of EnBW shares, to encourage competition on the French market
135
Optimization principles
Supply in France
81.9 59.9
2.1
178.6
136
Optimization principles
Supply in France
Wholesale markets
118.2
Wholesale markets
-7.3
Wholesale markets and VPP sales -25.4 2.2 55.2 Structured sales
33
Structured sales
ARENH sales
Downstream portfolio managed by optimisation business unit (via EDF Trading for the wholesale market interface)
(1) VPP: capacity auctions, now ended, resulting from a commitment by EDF to the European Union in the context of EDFs acquisition of EnBW shares, to encourage competition on the French market
137
Optimization principles
Supply in France
Tariffs in France
The tariff structure includes a range of regulated electricity tariffs, depending on the type of consumers: blue for residential and small professionals, yellow and green for companies The evolution of tariffs is determined by the Economy and Energy ministers, after consultation with the CRE (Commission for the Regulation of Electricity) The tariff is called integrated as it covers all the following elements:
The supply portion (approx. 60% excl. taxes for residential customers), which can be split into the energy portion ( baseload + shape factor), based on generation costs, and into commercial costs (client management and marketing) The network portion (approx. 40% excl. taxes for residential customers), including the cost of using the public transmission network operated by RTE and the public distribution network mainly operated by ERDF (95% of volume is distributed by ERDF). The network cost portion is based on the tariff for use of the public electricity transmission and distribution networks (TURPE)
Since 1 July 2007, all customers in France can freely choose their electricity supplier
Average bill breakdown including VAT Blue residential tariff (1 January 2013) 143.5/MWh Average bill breakdown excluding VAT Yellow tariff (1 January 2013) 104.5/MWh Taxes (5%) CSPE (13%) TURPE (33%)
Average bill breakdown excluding VAT Green tariff (1 January 2013) 80.0/MWh
Taxes (3%) CSPE (16%) TURPE (22%) Generation and supply costs (59%)
53.0
51.0
Optimization principles
Supply in France
Source: Insee (1) Local Distribution Companies (LDC) (2) The CRE delivered an unfavorable opinion on the 2% tariff increase applied on all three tariffs (blue, yellow and green) in summer 2012, the increase not being high enough to cover the costs as requested by law
139
Optimization principles
Supply in France
30.8
H2 2011 volumes supplied
30.2
H1 2012 volumes supplied
30.6
H2 2012 volumes supplied
32.9
H1 2013 volumes supplied(1)
Maximum total volume of EDFs sales to competing suppliers (excepting network losses): 100 TWh(2)
Volumes allocated equivalent to 85% of delivery in 2012 Option for the volumes for the second semester of 2013: 33.5 TWh
Can be amended by competitors until 15 May 2013, under certain conditions. Otherwise, cancellation and replacement of initial H2 volumes by extending the yearly sales to H1 2014
140
Generation
Networks
Gas
141
Gas
EDF strategy
Gas-fired plants do emit two times less CO2 than coal-fired plants Gas consumption is currently moderated by the economic difficulties, especially in Europe where consumption decreased in 2012 Long-term trend will therefore depend primarily on economic parameters and implementation of European energy policies (renewable energy, greenhouse gas emissions, energy efficiency), and should be moderate until 2035 notably due to higher needs for electricity output But given current depletion of European reserves, Europe will rely increasingly on imports in the future
Rule-of-thumb:
gas-fired plants emit approx. 2 plants
times less
Indigenous gas production of European countries (UK, Netherlands) will continue to decline
Shale gas in the US has been a game changer for the demand-supply balance triggering a drastic reduction in LNG imports and the emergence of LNG export projects
Europe has more limited shale gas reserves, which are also likely to be more difficult to extract and expensive to produce. Initial exploration results in Poland have been disappointing. Other European countries (France, Bulgaria) decided to implement a moratorium on the application of hydraulic fracturing Europe will indeed have to fulfill its supply needs by increasing its imports, which will be in competition with growing consumption of emerging markets. Furthermore, the access to reliable gas sourcing emphasizes the importance to develop new pipeline and LNG regasification infrastructures
Gas
EDF strategy
Storage
Transport / Distribution
Trading
Supply
Sign partnerships with oil and gas companies built mainly on Edisons expertise
Control the cost of flexibility Develop importation infrastructures (LNG and Examples: pipelines) to have direct Hill Top Farm storage access to gas sources expansion (in the UK) avoiding dependency, and Italian storage expansion anticipate future needs and projects Examples: (San Potito Cotignola, South Stream project Palazzo Moroni) Dunkirk LNG Etzel storage (in Germany)
Dual offer (electricity and gas) to our domestic customers In 2012, 246 TWh of gas sold to end-users
Offer
a dual offer electricity / gas to final customers Supply EDFs gas-fired power plants Benefit from arbitrage opportunities
143
Gas
EDF strategy
France: in 2012, EDF marketed 20.9 TWh, giving a market share of 4.3% on over 880,000 sites. At the end of 2012, EDF supplied gas to about 780,000 residential customers In 2012, EDFs gas sales business in France was strengthened through the acquisition of Enerest, the main distributor of natural gas in Strasbourg and the Bas-Rhin region, purchased in April 2012 by lectricit de Strasbourg, a wholly owned subsidiary of EDF. Enerest totaled more than 100,000 customers and supplied 5.2TWh of gas
Italy: 584,000 sites and ~178 TWh, or 21% market share United Kingdom: ~2 millions customers and 31.1 TWh Belgium: ~558,000 customers and 17.2 TWh, or around 20% market share
(1) Sales of the EDF companies, EDF Energy, Edison, EDF Luminus, Estag (Austria) at 100%, i.e., not corrected for interest percentage (including non-controlling interests). The gas business of EDF Trading is not taken into account in this figure.
144
Gas
EDF strategy
Dunkirk terminal
Foundation stone laid on 5 October 2012 The Dunkirk methane terminal, in operation at end-2015, will be made up of the following facilities:
Overall terminal capacity will be 13 bcm / year, representing 20% of France LNG import capacities. EDF will be one of the main users of this terminal
145
2012
EDF strategy
Corporate responsibility
Financials
Market data
Appendices
Monitoring and certifications Extra-financial rating: a constant source of improvement for the Group
147
Corporate Responsibility
A strong undertaking
Strategy implementation
Commitments
Commitments associated with objectives developed from works carried out with all Groups divisions and subsidiaries Approval by EDF Executive Committee Project submitted in Ethics Committee of EDF Board of Directors Method presented and discussed with the EDF Group SD Panel(1) bringing together qualified personalities and experts from the civil society Presentation during EDF Shareholders Annual Meeting on 30 May 2013
(1) Sustainable Development panel: it provides advice and a critical assessment of the Groups commitments to sustainable dev elopment and their implementation.
148
Corporate Responsibility
A strong undertaking
Strategy implementation
Commitments
149
Corporate Responsibility
A strong undertaking
Strategy implementation
Commitments
Responsible employer
Responsible partner
150
Corporate Responsibility
A strong undertaking
Strategy implementation
Commitments
Remain the leading main energy provider in terms of the development of low-carbon energies
Upholding of direct CO2 emissions (g/kWh) within the 150 g/kWh limit(3)
108.9
99.6
117.0
2011
2012
(1) Recognized worldwide, the FTSE4Good Index Series was created by FTSE and aims to promote investments in companies that respect ambitious sustainable development objectives
(3) The European carbon factor of the main electricity producers was 338 g CO 2/kWh in 2011 (Study by PricewaterhouseCoopers in November 2012)
2011
2012 2,705 3,231 4,345
Solar Solaire
Electricit de Strasbourg
(4) Subsidiaries included in the consolidated scope and selling energy to residential customers
151
Corporate Responsibility
A strong undertaking
Strategy implementation
Commitments
A responsible employer
Significantly reduce the number of accidents among employees and our subcontractors
Dividing by 2 in 5 years accident frequency experienced by Group employees resulting in sick leave
3.9 3.8 76%
Maintain performance and professional excellence of the teams through training and supporting diversity
Over 75% of Group employees receive, each year, at least one training
82%
Target: 1.9
2011
2012
2011
2012
2017
No tolerance for breach of human rights, fraud and corruption, for all Group companies and their suppliers
13 companies that have included in 2015 an ethics/SD clause in their longterm purchasing contracts(1) 13 companies awarded the United Nations Global Compact Advanced Level
2012 result 2012 result: 3 companies (EDF, EDF Energy, EDF Luminus) 1 company was awarded the United Nations Global Compact Advanced Level since 2011: EDF 3 Group companies have signed the Global Compact (EDF, ERDF, Edison)
152
Corporate Responsibility
A strong undertaking
Strategy implementation
Commitments
A responsible partner
Promote transparency and dialogue on sensitive issues
8 companies having set up a formal space for dialogue with stakeholders by 2015
2012 result: 3 companies EDF: Sustainable Development Committee France EDF Energy: Stakeholder Advisory Panel Edison: Social Committee Since 2005, EDF has set up a panel of stakeholders at Group level: the Sustainable Development Panel
134,500
2011 2012
9,000
2,000 2,000
EDFSA EDF
EDF Energy
EDF Luminus
DEMASZ
153
Corporate Responsibility
A strong undertaking
Strategy implementation
Commitments
Water supply, a worldwide challenge, a strong interdependence between power generation and the other water users at local level, a multiple footprint
Hydro generation Cooling water for thermal generating facilities (classic and nuclear) and water needs for industrial uses Water users & stakeholders (minimum flow requirement - regulatory requirement-, fish-ways or fish ladders, irrigation, drinking water, river traffic, levels required for tourism, fishing and leisure, )
Water risk management within the EDF Group: today EDF manages 75% of stored surface water in France
Water policy, with the creation of a Water Coordinator (management of the water resource at national level and for the all EDF generation fleet) and a Water strategic committee, along with administrative authorities EDF Groups ISO 14001 certification: each management level conducts analyses of environmental impacts, including on water
Implementation of research programs on hydro dams behavior in tropical areas Participation in the WBCSD particularly in the topic of implementation of a water risk assessment tool for energy operators Participation in the World Energy Council (Water for Energy) and in the World Water Council (EDF commitments taken at the 6th World Water Forum)
154
Corporate Responsibility
A strong undertaking
Strategy implementation
Commitments
1.
Invest in all the necessary resources to develop methods and tools to evaluate the water footprint of electricity production activities Manage the water footprint of electricity production activities Create value locally and take into account the objective of the water footprint minimisation, from the design phase of power plants
155
2. 3.
Corporate Responsibility
A strong undertaking
Strategy implementation
Commitments
Indicators selected according to their relevance to the challenges facing the Group and its major issues
An important covering rate of the Statutory auditors work important among the highest of the CAC 40 and SBF 120
Covering work Reasonable assurance Moderate assurance CO2 Workforce Environment Social 2012 50% 63% 42% 53%
(1) 30% of the companies of the CAC 40 under mix assurance have been submitted at one or several reservations
156
Corporate Responsibility
A strong undertaking
Strategy implementation
Commitments
Extra-financial rating: EDF Groups integration inside the FTSE4Good index in 2012
Extra-financial rating: a constant source of improvement for the Group acknowledgement and promotion of the quality of the work and the high level of industrial management of the Group the opportunity to improve the Group's actions thanks to external assessment
EDF joins the FTSE4Good Index Index FTSE4Good integration in March 2012 and permanence in 2013: The EDF Group is now one of five nuclear operators globally meeting the stringent criteria developed and overseen by the FTSE4Good Policy Committee EDF has improved its rating versus 2011 on both transparency and performance
2011 Transparency Performance 62 D 2012 87 B
EDF is listed in the ASPI Eurozone index since 2005 and is part of 2 of the 3 new indices created by Vigeo in 2012 9th of the Electricity & Gas Utilities sector in 2012
2012
Financials
EDF strategy
Corporate responsability
Financials
Market data
Appendices
Financials
Historical financials
Since 2010, streamlining of the Group
Focus on Edison
172 180 188 195 160 166
159
Financials
Historical financials
CSPE
4,677
34% 37% 41% 39% 38% 38%
4,392
4,216
3,558
3,105
3,607
France
66%
63%
59%
61%
62%
62%
2007
2008
2009
2012
2007
2008
2009
2010
(1)
2011
2012
2009
2010
2011
Buy-out of EDF EN
2012
Buy-out of Edison
(1) EBITDA adjusted, excluding EnBW, the British networks and the Eggborough plant in the UK, and including RTE under the equity method NB: the data presented are pro forma data from one year to another but are not retreated consistently throughout all years
160
Financials
Historical financials
CSPE
7,490
9,703
11,777
10,274 11,134
13,386
34,389 33,285
39,175
39%
47%
39%
35%
34%
38% 16,269
24,476
2.5
2.2 (2)
2.2
2.4
2007
2008
2009
2010
(2)
2011
2012
(adjusted)
2007
2008
2009
2010
2011
2012
(3)
(1) Pro forma gross Capex (2) EBITDA Adjusted, excluding EnBW, the British distribution networks and the Eggborough plant in the UK, and including RTE under the equity method (3) Pro-forma after allocation of the CSPE deficit to dedicated assets on 13 February 2013 and subtraction of 2.4bn from dedicated assets portfolio, enabling 100% coverage of EDF nuclear liabilities that are eligible for dedicated assets
161
Financials
Historical financials
CSPE
0.68
Final dividend
50%
54%
54%
54%
60%
55%
45%
50%
54%
54%
56%
1.28
1.28
1.15
1.15
1.15
0.57 Interim dividend
2007
2008
2009
2010
2011
2012
2007
2008
2009
2010
2011
2012
162
Financials
Historical financials
CSPE
2011(1) 65,307 (30,195) (9,931) (10,802) (3,101) 3,661 14,939 (116) (6,506) 135 8,452 (3,780) 4,672 3,148 3,607
2012 72,729 (37,098) (10,087) (11,624) (3,287) 5,451 16,084 (69) (7,013) (757) 8,245 (3,362) 4,883 3,316 4,216
Sales Fuel and energy purchases Other external expenses Personnel expenses Taxes other than income taxes Other operating income and expenses EBITDA Net changes in fair value on Energy & Commodity derivatives, excluding trading activities Net depreciation and amortization & increases in provisions for renewal (Impairment) / reversals EBIT Financial result Income before taxes of consolidated companies Group Net income EDF current Net income(2)
(1) Data restated for the impact of the IAS 19 option (SoRIE method) (2) Excluding non-recurring items & IAS 39 volatility
163
Financials
Historical financials
CSPE
In millions of euros
Fixed assets o/w Goodwill Inventories and trade receivables Other assets Cash and equivalents and other liquid assets(2) Assets held for sale
(excluding cash and liquid assets)
Shareholders equity (Group Share) Net income attributable to non-controlling interests Specific concession liabilities
Provisions Financial liabilities(3) Other liabilities Liabilities linked to assets held for sale
(excluding financial liabilities)
Total Assets
231,962
250,118
Total Liabilities
(1) Data restated for the impact of the IAS 19 option (SoRIE method) (2) Including companies held for sale and loan to RTE and companies in joint-venture (3) Including hedging instruments and financial liabilities related to companies held for sale
164
Financials
Historical financials
CSPE
4.6%(2)
(2,040) (1,623)
(1,331) 336 10,281 (1,014) (1,009) (10,564)
(715) (1,634)
(1,586) 165 12,314 (2,304) (1,426) (11,808) 19.8%
Cash Flow
(1,297)
(1,798)
n/a
(1) Data restated for the impact of the IAS 19 option (SoRIE method) (2) Organic growth at constant scope and exchange rates (3) Excluding EDF EN subsidies receivables (4) Net investment excluding Linky and strategic operations
165
Financials
Historical financials
CSPE
Current situation
Disposal of EDFs stake in EnBW Debt reduction: -7.3bn
100% control of Unistar, sale of Exelon shares Risk reduction: put option terminated Preservation of Groups interest in CENG
OPAES(1): 100% control of EDF Energies Nouvelles Successful industrial integration: success of the tender in
French off-shore wind farms, on 3 sites out of 4
Financials
Historical financials
CSPE
+876
+88
Other
11,808
11,808
10,564
International & Other activities
+280
United Kingdom France
31%
Unregulated France
40%
29%
28%
30%
GroupRegulated
2011
2012
2012
167
Financials
Historical financials
CSPE
Gains achieved in 2011 and 2012 secure 63% of a total target of roughly 2.5bn
Around 705 million in gains made in 2011 Around 878 million in gains in 2012 divided as follows:
Generation 40%
48%
Distribution 28%
878m
878m
Synergies(1) 10%
(1) Gains coming from Operational Excellence and Synergies recorded in Purchase Gains
168
Financials
Historical financials
CSPE
EBITDA growth excluding Edison(1) Net financial debt / EBITDA Payout ratio of net income excluding non-recurring items
Financials
Historical financials
CSPE
A savings plan on top of prior initiatives launched under the Groups Synergies and Transformation plan A shared goal: continuously striving to improve Group performance Spark 2013: -5% on all Group purchases
170
Financials
Historical financials
CSPE
At least 1.7bn
EBITDA(1) Impact of gas contract renegotiations
2013
2014
171
Financials
Historical financials
Focus on Edison
CSPE
Edison takeover
As of 31/12/2012, EDF held 97.4% of Edison share capital and 99.48% of Edison ordinary shares
On 24 May 2012, EDF took exclusive control of Edison Spa for 784m(1)
Acquisition of 50% of TdE (0.89 euro par share) Ownership of 80.64% of Edison ordinary shares
July 2012: mandatory tender offer on the remaining ordinary shares (i.e. 19.3%) at 0.89/share Possibility to convert saving shares into ordinary shares
Since 6 September 2012, following the mandatory tender offer, EDF has held 99.48% of Edisons ordinary shares
As a result of the mandatory tender offer, the Italian stock exchange decided to delist Edisons ordinary shares with effect from 11 September 2012
(1) At the same time, Delmi acquired Edisons 50% stake in Edipower for 684 million
172
Financials
Historical financials
Focus on Edison
CSPE
1,471(1)
488 (88)
2009
2010
2011
2012
(1) Edipower consolidated line by line (2) Edipower recorded among discontinued operations
173
Financials
Historical financials
Focus on Edison
CSPE
11.5
0.5 1.7
7.7
0.5 1.4
Renewables Hydro Thermoelectric 5.8
Total installed capacity (including 0.4GW in Greece) Net power generation in Italy (excluding Edipower)
9.3
o/w Hydro
o/w Renewables Net power generation abroad
3.9 TWh
0.9 TWh 1.9 TWh 870,000
2011
2012
Sites served
Following the sale of Edipower, 2012 Edison installed capacity decreased by 3.8 GW, from 11.5 to 7.7 GW. In 2012, the Group produced 24.4 TWh of electricity
In 2012, Edison electricity generation in Italy represented about 8% of the total national generation
(1) Calculated as Edison net generation of electric power in Italy over total Italian net generation (284.8 TWh)
174
Financials
Historical financials
Focus on Edison
CSPE
Edison is the 3rd Italian operator in the wind sector with 471 MW of installed capacity in 2012 Wind installed capacity in 2012 (MW) and main competitors in Italy
Market share
Toscana
Wind
2 MW
1,062(2)
716 471 386 343 328 292
13%
Wind
116 MW Molise Wind
9%
6% 5% 4% 4% 3%
50 MW Photovoltaic 1 MW Puglia
Wind 84 MW
Basilicata Wind 12 MW
(1)Edison S.p.A. and Edison Energie Speciali (100%-owned by Edison S.p.A.), excluding hydro plants (2) As of 31/03/2013 including the acquisition of GDF wind plants Source: companies websites
175
Financials
Historical financials
Focus on Edison
CSPE
Law No. 134/2012 regulates the timing and criteria for hydroelectric concessions renewal:
Award for consideration of the concession for a period ranging between 20 and 30 years, based on the size of the investments deemed necessary
Public call for tender 5 years before the expiry of the concession. For concessions that have already expired and those expiring on or before 31 December 2017, the new concession will begin starting on 1 January 2016 and, under any circumstances, no later than 31 December 2017
The outgoing concession holder shall receive a consideration for the transfer of the business operations
The Ministry of Economic Development (MSE) is working on the implementation decree on tendering criteria and
procedures for the renewal of concessions
Edison is currently participating to the consultation process with MSE and getting ready to participate to the tender
process
A significant amount of concessions, in terms of MW, will expire in 2015 and 2017
176
Financials
Historical financials
Focus on Edison
CSPE
1,809 Kbbl
1,737 Kbbl 584,000
2.8
0.2
+10%
3.1
o/w 1.8 from Abu Qir
0.3 1.9 0.3 0.6
Following Edisons takeover, EDF Group benefits from Edisons competences in the hydrocarbon sector. Over the years, Edison has developed across the value chain from E&P to the end-customers supply
(1) P1 + 50% P2 (2) Calculated as Edisons gas sales in Italy over total Italian demand (74.2 bcm)
1.7
0.4 0.5
2011
Oil production abroad Oil production in Italy
2012
Gas production abroad Gas production in Italy
177
Financials
Historical financials
Focus on Edison
CSPE
E&P
Hydrocarbon reserves at the end of 2012: ~50 bcm Hydrocarbon production in 2012: 3.1 bcm
E&P engineering track record with operator experience in expansion zones Significant growth potential through exploration in core zones and to a lesser extent in new zones
GAS STORAGE
Cellino: 0.12 bcm of working gas Collalto: 0.8 bcm of working gas San Potito-Cotignola: 0.89 bcm of working gas
TERMINAL LNG
1 LNG terminal: Edison owns a 7.3% share in Adriatic LNG Terminal, which operates the Rovigo offshore regasification terminal (8 bcm/year). Edison owns 80%, i.e. 6.4 bcm/year, of the terminals capacity, fueled with Qatari gas. The other shareholders are ExxonMobil Italiana Gas (70.7%) and Qatar Terminal Company Limited (22%)
178
Financials
Historical financials
Focus on Edison
CSPE
Total volume of long term gas contracts 14.4 bcm/year (annual contracted quantities)
Russian contract renegotiated in 2011 Qatar and Libya contracts renegotiated in 2012 (+680m on EBITDA 2012) Positive arbitration on Sonatrach Algerian gas contract completed on 24 April 2013 A new round of prices revision started in end-2012 to restore the profitability of these contracts affected by lower gas prices
The risk linked to the arbitration process (being the decision linked to a third party) is itself a catalyst for the parties to find a mutual agreement.
Renegotiations status Contract Qatar Volume (bcm/year) 6.4 Expiration 2034 Renegotiations / arbitrations 2012 680 347 62 n/c
179
EBITDA impact in m
Libya
Russia Algeria
4.0
2.0 2.0
2026
2019 2019
2012
2011 Arbitration on first round completed on 24 April 2013 200 300
Financials
Historical financials
CSPE
+0.1
Other
+2.4
Dividends paid in cash
Edison
Dedicated assets(1)
39.2
33.3
December 2011
(1) Pro-forma after allocation of the CSPE deficit to dedicated assets on 13 February 2013 and subtraction of 2.4bn from dedicated assets portfolio, enabling 100% coverage of the EDF nuclear liabilities that are eligible for dedicated assets
Financials
Historical financials
CSPE
31/12/2010
31/12/2011
31/12/2012 (1)
34.4
2.2x
47.8 35.5
8.9 4.4 %
33.3
2.2x
50.0 37.5 9.2 4.3 %
39.2
2.4x
59.9 43.9
8.5 3.7 %
Gross financial debt o/w bonds Average maturity gross debt (in years) Average coupon
Liquidity
25.2 17.9
24.9 17.1
27.2 13.8
(1) Pro-forma after allocation of the CSPE deficit to dedicated assets on 13 February 2013 and subtraction of 2.4bn from dedicated assets portfolio, enabling 100% coverage of the EDF nuclear liabilities that are eligible for dedicated assets
181
Financials
Historical financials
CSPE
(1) Pro-forma after allocation of the CSPE deficit to dedicated assets on 13 February 2013 and subtraction of 2.4bn from dedicated assets portfolio, enabling 100% coverage of the EDF nuclear liabilities that are eligible for dedicated assets
182
Financials
Historical financials
CSPE
GBP 23%
Net financial debt(2): 39.2bn Average coupon: 3.7 % Average maturity: 8.5 years
EUR 62%
(1) Mainly HUF, CHF, PLN and BRL (2) Pro-forma after allocation of the CSPE deficit to dedicated assets on 13 February 2013 and subtraction of 2.4bn from dedicated assets portfolio, enabling 100% coverage of the EDF nuclear liabilities that are eligible for dedicated assets
183
Financials
Historical financials
CSPE
Lower average coupon: from 4.4% end of 2009 to 3.8% as of 30 September 2012 Longer average maturity: from 7.4 years end of 2009 to 8.6 years as of 30 September 2012
RTE included in the dedicated assets improving nuclear liabilities coverage without earnings dilution Portfolio rationalization while keeping a highly regulated profile
184
Financials
Historical financials
CSPE
January 2013: inaugural hybrid bond issuance in 3 currencies (, , $) that allowed the Group to strengthen its capital structure over the investment cycle in a flexible and cost efficient way
Diversification of the Group funding sources on the capital markets Possibility for the Group to raise the equivalent of approximately 6.2 billion in total across all three currencies
Amount (in bn)
3 1.25
Currency
Dollar Euro
Coupon
5.25 % 4.25 %
1.25
1.25
Euro
Sterling
5.375 %
6.0 %
12(2)
13(2)
(1) Separate offering under Rule 144A / Regulation S (2) Under its Regulation S EMTN program
185
Financials
Historical financials
CSPE
Of which (in m)
5,000 5 000
2015 1,918 2 25
4 000 4,000
$ CHF
3,000 3 000
2,000 2 000
1,000 1 000
Other Autres
(1) As of 31 December 2012
CHF
EUR
GBP
USD
JPY
186
Financials
Historical financials
CSPE
Ratings S&P
A+ stable A negative A- stable BBB stable BBB stable A- negative BBB+ stable BBB+ negative A- stable
Ratings Moodys
Aa3 negative A1 negative A3 negative Baa2 negative Baa1 negative A3 stable Baa1 stable n/a A2 negative
Ratings Fitch
A+ negative n/a A stable BBB+ negative BBB+ negative A- stable A- stable BBB+ negative A- stable
Moodys ratings
A1
A2 SSE
Enel Iberdrola
A3
SSE
E.ON
RWE
Baa1
RWE Iberdrola
Endesa Vattenfall
Baa2
Enel
Ratings S&P Ratings Moodys
P-1
Ratings Fitch
F1
BBB
BBB+
A-
A+
A-1
S&P ratings
Source: rating agencies and Bloomberg, as of 15 July 2013
187
Financials
Historical financials
CSPE
+ 408
Other change
40,504
31 December 2011
31 December 2012
188
Financials
Historical financials
CSPE
These costs are determined in constant euros (i.e. the cost as if the payment was made today)
These costs are positioned in time on the basis of a timetable set by the company
The costs are then provisioned on the basis of year-end discounted values
Cost Nominal discount rate Cost in current euros that will be paid at T (i.e., the inflated cost) Cost in constant euros that will be paid at T
31,382m
Provisioned value
Time
65,873m
189
Financials
Historical financials
CSPE
The discount rate is based on the yield of a sovereign bond (French OAT) of the same duration as the liability in question, plus the average spread of a selection of companies with the same rating as the company carrying the liability 23 February 2007 executive order and 21 March 2007 ministerial order pertaining to the funding of nuclear liabilities states that the discounting rate used by EDF may not exceed a ceiling that is equal to the arithmetic average over the past 48 months of the 30-year constant maturity rate (TEC 30), on the closing date of the financial year under review, + 1 point
190
Financials
Historical financials
CSPE
2,393
Cash
953
7,343
Underweight on European peripheral debts Importance of cash and underweight on equities at the start of year Better assets diversification than the benchmark and less volatility Shares and bond funds
17,626
6,937
(1) Full-year performance, including RTE and before tax Excluding RTE, the portfolio performance is 11.1% and excluding cash 12.0%, compared with a benchmark of 12.6%
191
Financials
Historical financials
CSPE
A portfolio of dedicated assets was set up with a value equivalent to at least 75% of provisions in mid-2011 and a projected 100% by mid-2016 Effective mid-2016, the portfolios realisation value must be at least equal to the amount of the provisions covered In the event that it is not, the administrative authority may order corrective measures
This Executive Order contains a precise list of assets that are eligible for the portfolio of dedicated assets and their maximum authorised portion, and excludes certain categories of assets It specifies the nuclear costs on which basis the amount of dedicated assets is set and establishes a regulatory ceiling on the discounting rate of liabilities, and a grace period that is based on economic conditions and markets situation and which may not exceed three years
This authorises EDF to include RTE shares in its portfolio of dedicated assets
Financials
Historical financials
CSPE
20.1
Last cores(1)
20.1 17.6
RTE RTE
0.4
2.4
CSPE receivable
2.4
Provision for dismantling
4.9
12.6
Other dedicated assets
15.2
LT management of radioactive waste
12.8
Provisions at 31/12/2012
The coverage rate is 88% at end-2012. After allocation of the CSPE deficit to dedicated assets on 13 February 2013, coverage rate of EDF nuclear liabilities is more than 100%, thus enabling the subtraction of 2.4bn of dedicated assets
(1) Part of the provision for the last cores on future long-term management costs for radioactive waste
193
Financials
Historical financials
CSPE
406 405 1
294 215 79
TOTAL NUCLEAR
29,243
(600)
1,729
1,010
31,382
194
Financials
Historical financials
CSPE
In 2012, 1,083,000 households (mainland France, Corsica and overseas departments) benefited from a basic necessity tariff (TPN). A decree of 6 March 2012 introduced automatic attribution of social electricity tariffs (financed by the CSPE) 190,000 households in 2012 for the Housing Solidarity Fund (FSL)
Additional generation costs in non-interconnected regions (Corsica and the overseas departments and territories) not covered by the energy share of regulated tariffs
Electricity is sold in non-interconnected regions at the same price as mainland France despite significantly higher generation costs Originally designed for cogeneration units, they have now been extended to output volumes of electricity generated using renewable energy sources (mainly wind and solar power)
195
Purchase obligations
Financials
Historical financials
CSPE
Charged to end-users via an "other services" line on their energy bill Collected by network operators and electricity suppliers Periodically amended: "Barring a decree setting the amount of the contribution due for a given year prior to 31 December of the previous year, the amount proposed by the CRE (French Energy Regulatory Commission), in accordance with the preceding paragraph, enters into force on 1 January, within the limit however of an increase of 0.003/KWh with respect to the amount applied before this date". Increase of 1 January 2012 was splitted in two: 0.0015/KWh in July 2011 and 0.0015/KWh in July 2012
13.5
/MWh
1 January
2010
31 July 2011
1 July 2012
1 January
2013
196
Financials
Historical financials
CSPE
In the French overseas departments and Corsica, the CSPE varies with energy and fuel purchases and the cost of replacing old power plants The rise in the CSPE is linked to purchase obligations, which take into account the rapid expansion of wind and PV power and the decline in wholesale electricity prices
(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 Corsica and the French overseas departments (2) Additional production costs and purchase obligations in Corsica and the overseas departments, the TPN (First Necessity Tariff) and the FSL
197
Financials
Historical financials
CSPE
3,155m 2,244m
CSPE
919m
CSPE
1,541m
CSPE
1,599m
CSPE
CSPE
1,785m
2008
1,281m
2009
1,591m
2010
1,784m
2011
2,044m
2012
198
(1) CSPE also offsets generation costs and purchase obligations in Corsica and French overseas departments and first necessity tariff (TPN) (2) EDF SA excluding Island Electric Systems (3) Change in purchase obligations: + 913m of solar and +258m wind and -185m cogeneration vs. 2011
Financials
Historical financials
CSPE
The deficit will be paid back independently of the CSPEs future flows. However, the existing mechanism for calculating the CSPE remains in place and will contribute to paying back the deficit
In the event the CSPE surplus is bigger than expected, the deficit will be paid back faster than planned
199
Financials
Historical financials
CSPE
Offset of certain expenses to certain public services is booked under other operating income and expenses in EBITDA for 4,687m The compensation of carry costs for past deficit booked under financial products for +629m
Balance Sheet
Booked under working capital in the other receivables category for 997m (invoicing delays) Increases net financial debt by 5,247m The deficit recognized by the State booked under financial receivables for 4,879m (4,250m+ 629m)
200
Financials
Historical financials
CSPE
2010
2011
2012
P&L Extra-costs / losses Impact on other operating income and expenses (2,605) 2,605 (3,556) 3,556 (4,687) 4,687
EBITDA
Pre-tax result impact
Neutral
Neutral
Neutral
Neutral
Neutral
629
Balance sheet
Working capital requirements (other creditors) Debt (CSPE on supply energy but not billed; other creditors) Financial debt 2,812 (344) 3,821 (579) 997 (747) 4,879
Cash flow
Cash in energy billed Increase in WCR 1,637 968 2,547 1,009 3,261 1,426
201
2012
Market data
EDF strategy
Corporate responsability
Financials
Market data
Appendices
148 380 53 97 115 5 298 28 54 572 80 303 37 94 67 620 0% 25% 50% 75% 100%
Ptrole Oil
Coal Charbon
France
Finland Finlande
Spain Espagne
(1) Danemark*
Autres Other
203
EDF strategy
Corporate responsability
Financials
Market data
Appendices
France
United Kingdom
360 350 340 330 320 310
2008
2009
2010
2011
2012
Italy
350 340 330 320 310 2008 Source: UCTE 2009 2010 2011 2012 150 145 140 135 130 2008 Source: UCTE 2009
Poland
2010
2011
2012
204
EDF strategy
Corporate responsability
Financials
Market data
Appendices
European energy market remains split into "electricity plates" - average price in 2012
Available commercial capacity MW 55.2/MWh 48.0/MWh
2,400(3) 2,400(3)
+0.2/MWh(1)
-4.0/MWh(1)
47.0/MWh
1,200(2) 1,800(2) 1,800(2) 2,800(2)
42.6/MWh
-2.4/MWh(1)
4,300(2) 2,400(2)
-8.5/MWh(1)
46.9/MWh
1,200(2) 1,200(2)
-2.0/MWh(1)
Price: average spot price (base 2012) for France (Epex), Germany (Epex), the UK (EDFT), Spain (OMEL), the Netherlands (APX), Belgium (Belpex) and Italy (Ipex)
1,400(2)
47.2/MWh
75.5/MWh
+3.3/MWh(1)
-2.7/MWh(1)
(1) 2011 Average price (2) Annual Net Total Capacity calculated by RTE in December 2012 for 2013 (3) Source ENTSOE
205
EDF strategy
Corporate responsability
Financials
Market data
Appendices
2,000
Enhancement
Baixas Sta Llogaia: 1,200 MW (RTE REE Project INELFE) Golfe de Gascogne (RTE REE): 1,200 MW Piedmont Savoy (RTE - TERNA): 1,200 MW Eleclink (Eurotunnel - Star Capital): 1,000 MW
2,000
France Italy
2,600
1,200 +600
3,400
1,200 +600
Enhancement
Source: RTE
EDF strategy
Corporate responsability
Financials
Market data
Appendices
Level of demand Availability of the generation fleet and management of the demand Fossil-fired prices Countrys energy mix
Except during the cold snap when the prices reached more than 100/MWh
Strong decrease due to lower temperatures and lower demand
janv. Jan.
fvr. Feb.
mars Mar
avr. Apr.
mai May
juin June
Spot 2011
juil. July
Spot 2012
aot Aug.
sept. Sept.
oct. Oct.
nov. Nov.
dc. Dec.
207
EDF strategy
Corporate responsability
Financials
Market data
Appendices
65
Spread Fr-Ger Spread Fr-All France France Germany Allemagne
Released by the European Commission of the report about nuclear fleet safety
15,00
60 60
55 55
12,00 12
50 50
45 45
9,00 9
Increase of gas prices Largest decline in Germany due to strong renewable output Increase of coal prices
6,00 6
3,00 3
40 40
Reversal of the France-Germany spread
0 0,00
35 35
Jan. 2012 Feb. 2012 Mar 2012 Apr. 2012 May 2012 June 2012 July 2012 Aug. 2012 Sept. 2012 Oct. 2012 Nov. 2012 Dec. 2012
-3 -3,00
208
EDF strategy
Corporate responsability
Financials
Market data
Appendices
Forward electricity prices in France, the UK, Italy and Germany (Y+1) in 2012
In /MWh
Electricity annual base base contract France (EPEX) Electricit - contrat annuel France (EPEX) Electricity annual base base contract UK (ICE) Electricit - contrat annuel UK (ICE)
77
72 67 62 57 52 47 42
Electricity annual base base contract Germany (EPEX) Electricit - contrat annuel Allemagne (EPEX) Electricity annual base base contract Italy (IPEX) Electricit - contrat annuel Italie (IPEX)
209
EDF strategy
Corporate responsability
Financials
Market data
Appendices
Forward electricity prices in France, the UK, Italy and Germany (Y+2) in 2012
In /MWh
Electricit - contrat annuel baseFrance France (Powernext) Electricity annual base contract (EPEX)
Electricity annual base contract (ICE) Electricit - contrat annuel baseUK R-U (ICE)
79 74 69 64 59 54 49 44
Electricity annual base contract (EPEX) Electricit - contrat annuel baseGermany Allemagne (EEX)
Electricity annual base contract (IPEX) Electricit - contrat annuel baseItaly Italie (EDF-T)
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Financial Calendar
8 July 2013
Dividend payment
30 July 2013
7 November 2013
13 February 2014
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ANDRA: The French law of 30 December 1991 established a public industrial and commercial body, the National Agency for the Management of Nuclear Waste (Agence nationale pour la gestion des dchets radioactifs ANDRA), responsible for the long-term management of radioactive waste. The Agency, which reports to the Ministers of Industry, Research and the Environment, established the storage centers based in the Aube region of France for the long-term management of short-life waste APE: The French Government Shareholding Agency (APE) is a national organization within the Ministry of Economy. Its mission is to act as a shareholder for the French Government in order to develop its assets and maximize the value of its stakes Architect-Assembler: For EDF, the architect-assembler has control over: the design and operation of its power plants; the organization of development projects; the schedule for completion and costs of construction; relations with the Nuclear Safety Authority; and the integration of feedback from operational experience. EDFs role as architect-assembler ensures control over its industrial policy with respect to the design, construction and operation of its fleet of power plants
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Clean Dark Spread: difference between power price and variable generation cost (mainly coal cost and CO2 cost) Combined-Cycle Gas Turbine (CCGT): The most recent technology for generating electricity in a natural gas-fired plant. A combined cycle is made up of one or more combustion turbines and a steam turbine allowing for an improved yield. The syngas is routed to the combustion turbine, which generates electricity and very hot exhaust gases (effluents). The heat from the exhaust gases is recovered by a boiler, thus producing steam. Part of the steam is then recovered by the steam turbine to generate electricity
Cogeneration: Generation technique for combined electricity and heat generation. The advantage of cogeneration is the ability to capture the heat produced by the fuel whereas in traditional electricity generation this heat is lost. This process also allows the same facility to meet the heating (hot water or steam) and electricity needs of both industrial and local authority customers. This system improves the energy efficiency of the generation process and reduces fuel use by an average of 20%
CRE (Commission de Rgulation de lEnergie): Created on 30 March 2000. The CRE, an independent body, regulates the process to open the energy market opening. It ensures that all of the generators and eligible customers have non-discriminatory access to the network. Within its jurisdiction, this body supervises and authorizes, settles any disputes and, if required, imposes sanctions Distribution Networks: Downstream of the transmission network, medium- and low-tension distribution networks serve end-users (individuals, Groups, SMEs, SMIs, etc.) Electricity supply: Can be broken down into four types of consumption: basic (or ribbon) supply is: the basic (or ribbon) supply of electricity generated and consumed throughout the year; semi-basic supply is the electricity generated and consumed over the winter period; peak supply corresponds to periods of the year when electricity generation or supply is in heavy; demand; lace supply is a complement to ribbon supply EPIC: Industrial and Commercial state-owned Company EPR (European Pressurized Reactor): The latest generation of reactors currently under construction (known as generation 3), it is the result of Franco-German cooperation, and offers advanced safety, environmental and technical performance
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ETS: Emission Trading System Fuel cycle: The nuclear fuel cycle encompasses all industrial operations in France and abroad which enable the supply of the fuel to generate energy in a reactor, then to unload and process it. The cycle can be broken down into three stages: 1) upstream: the processing of concentrates from uranium ore, the conversion, enrichment and production of fuel (which takes more than two years); 2) the core of the cycle corresponding to the use of fuel in the reactor: receipt, loading, operation and discharging (which takes three to five years); 3) downstream: pool storage, reprocessing of spent fuel in reactors of recoverable material, vitrification of highly radioactive waste, then temporary storage of the waste before storage Greenhouse emissions: Gas that retains a portion of the solar radiation in the atmosphere and for which an increase in emissions due to human activity (man-made emissions) causes an increase in the earths average temperature and plays an important role in climate change. The Kyoto Protocol and amended EC Directive 2003/87/EC of 13 October 2003 cover the six following principal greenhouse gases: carbon dioxide (CO2), methane (CH4), nitrogen protoxide (N2O), hydrofluorocarbons (HFC), perfluorated hydrocarbons (PFC) and sulfur hexafluoride (SF6). For the period from 2005-2007, carbon dioxide was the subject in Europe of measures to reduce emissions with the application of national plans for the allocation of greenhouse gas quotas. For the 2008-2012 periods, the scope of gases is expanding. In the long term, the gases listed in Appendix II of the aforementioned directive will be covered, as will any other gaseous atmospheric component, whether natural or man-made, that absorbs and reflects infrared radiation (amended directive, adopted but not published to date) Hydropower Generation: Maximum power energy that can be produced from hydraulic sources in normal conditions Interconnection: Electricity transmission infrastructure that allows for exchanges of energy between different countries, by connecting the transmission network of one country to that of a neighboring country LDC: Local Distribution Companies that provide for distribution of gas and electricity power to the end-customers on a delimited geographical area LNG (Liquefied Natural Gas): Natural gas turned into liquid form by reducing its temperature to 162C allowing for a reduction by 600 in its volume
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MEDEF: French companies association Metering: A system allowing for the recording, at a given network connection point, of the volumes of electricity transmitted or distributed (power, frequency, active and reactive energy) Midstream: All assets of the gas business, allowing for its availability, transportation and management. These might be infrastructures (gas pipelines, storage facilities, LNG terminals, etc.) or contractual (rights relating to predetermined capacity, procurement contracts, etc.). The midstream segment includes the trading and negotiating activities National Quota Allocation Plan: This plan defines the total quantity of greenhouse gas emission quotas that the French state plans to grant for the quotas exchange system for each multi-year period (NAP1 2005-2007, NAP2 2008-2012) and the allocation method used to allocate quotas to the industrial facilities in question
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Plant availability: Fraction of power available, out of theoretical maximum energy, counting only technical non-availability. The availability coefficient (Kd) is defined as the ratio between annual actual generation capacity (or amount producible annually) and maximum theoretical generation capacity, where maximum theoretical generation capacity = installed capacity x 8,760 hr. The Kd, which counts only technical non-availability, i.e., scheduled shutdowns, unplanned outages and testing periods, characterizes a plants industrial performance. For EDFs nuclear fleet in France, the maximum theoretical generation capacity is of 553 TWh (63.1 GW X 8,760 hr) PPA: Price Purchase Agreement PWR: Pressurized Water Reactors constitute a large majority of all nuclear power plants in 2011. In a PWR, the primary coolant (water) is pumped under high pressure to the reactor core where it is heated by the energy generated by the fission of atoms. The heated water then flows to a steam generator where it transfers its thermal energy to a secondary system where steam is generated and flows to turbines which, in turn, spins an electric generator. In contrast to a boiling water reactor (BWR), pressure in the primary coolant loop prevents the water from boiling within the reactor Renewable energies: Energies for which generation does not require extinction of the initial resource. They largely derive from geothermal, water, air, fire and solar sources. They include hydro, wind, solar (the energy produced by marine waves and currents), geothermal (energy derived from the heat below the earths magma) energies, and bio-mass (energy derived from living matter, particularly wood and organic waste). They often include energy from the incineration of household or industrial waste RTE: RTE is the operator of the French electricity transmission system. A public service company, RTE operates, maintains and develops the high and very high voltage network SOx: Sulfur Oxide Storage: Storage consists in placing packages of radioactive waste in a facility, ensuring their long-term management, i.e., under safe conditions allowing for long-term risks control
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Storage center: Low or medium-level short-life radioactive waste, from nuclear plants, the Hague or Centraco facilities, are sent to ANDRAs Soulaines storage center in the Aube region, which has been operational since 1992. This center has capacity of 1,000,000 m3, and acceptance capacity of approximately 60 years. Very low-level short-life radioactive waste is sent to ANDRAs Morvilliers storage center (also in the Aube region). This center was commissioned in October 2003 and has an operating life of about 30 years Transmission networks: Network providing for the transmission of electrical power at high and very high voltages from the generating sites to the distribution networks or industrial sites directly connected to it; this includes the major interconnection transmission network (400,000 volts and 225,000 volts) and the regional distribution networks (225,000 volts, 150,000 volts, 90,000 volts and 63,000 volts) Waste: The nuclear generation of 1 MWh of electricity (equivalent to the monthly consumption of two households) produces around 11g of total waste across all categories. Short-life waste represents more than 90% of the total, but contains only 0.1% of the radioactivity of waste
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