5.1.4.2.2 Change in consolidated EBITDA and analysis by segment

(1) The financial statements at 31 December 2019 apply IFRS 16 from 1 January 2019. In accordance with the new standard’s transition provisions, the comparative figures have not been restated.
(2) The published figures for 2018 have been restated due to the impact of presenting the E&P operations as discontinued operations.

5.1.4.2.2.1 France – Generation and supply activities

EBITDA for the France – Generation and supply activities segment amounted to €7,615 million, corresponding to an organic increase of €1,019 million (+16.1%) from 2018.

This substantial increase is mainly due to favourable energy price effects totalling an estimated +€2,230 million, which is related to the positive market price movements and the +7.7% (excluding taxes) rise in regulated sales tariffs on 1 June 2019.

The decrease in generation, mainly, of nuclear power (-13.7TWh) and hydropower (-5.8TWh after pumping) had an unfavourable effect estimated at -€899 million.

The erosion of market shares and the end of the tariff catch-up component in regulated tariffs, which had a favourable effect in 2018 with no equivalent in 2019, had an estimated -€211 million unfavourable effect on EBITDA.

Operating expenses⁽¹⁾ were cut by €342 million (-3.9%) through control of purchases and payroll costs. These measures are being implemented across all entities: they notably helped lower support function costs and adjust selling costs, as well as reduce operating costs for the nuclear, hydropower and thermal power plant fleet.

A number of other factors, principally changes in nuclear provisions and employee benefit commitments, had a total effect of -€443 million on EBITDA. The lower volumes of nuclear fuel consumed due to lower production levels had a small favourable impact.

5.1.4.2.2.2 France – Regulated activities

EBITDA for the France – Regulated activities segment stood at €5,101 million, with an organic increase of €18 million (+0.4%) from 2018.

Price changes had a positive effect of +€65 million: indexed adjustments to the TURPE 5 distribution and transmission tariffs⁽²⁾ on 1 August 2019 were partly counterbalanced by the tariff optimisation operated by suppliers.

Business growth in network connection services is continuing, and made a positive contribution estimated at +€25 million to EBITDA in 2019.

The rise in EBITDA also benefited from the decrease in operating expenses⁽³⁾ (+€83 million).

However, the unfavourable climate effect over the entire year and the exceptional weather events in the second half of the year affected EBITDA to the extent of approximately -€95 million.

Other factors had a combined estimated negative impact of -€60 million on EBITDA.

5.1.4.2.2.3 EDF Renewables

EDF Renewables’ contribution to Group EBITDA for 2019 was €1,193 million. The organic year-on-year growth of +€287 million (+33.5%) was driven by development and sales of structured assets, and essentially reflects the sale to the Irish electricity company ESB of 50% of the Neart na Gaoithe (NnG) Scottish offshore wind farm project.

EBITDA from generation was affected by the disposals that took place in late 2018 and early 2019, and stood at €917 million, an organic decline of -0.9% compared to 2018 despite a positive price effect (portfolio effect).

At 31 December 2019, net installed capacities totalled 8.1GW compared to 8.3GW at 31 December 2018. Excluding transfers of assets inside the EDF group, capacities increased by +0.6GW (+7.8%). The gross portfolio of projects under construction reached a record level of 5.0GW with 3.4GW for wind power (including 0.9GW for offshore wind farms in France and Scotland) and 1.5GW for solar power.

Development and support function costs were on the rise, in order to keep pace with business growth together with expansion into new areas, and to support innovative and digitalisation projects.

5.1.4.2.2.4 Dalkia

Dalkia’s EBITDA for 2019 amounted to €349 million, reflecting an organic growth of €14 million (+4.8%). This increase was driven by improved competitivity resulting from the operational performance plan, and good control of overheads.

The rise in EBITDA also reflects Dalkia’s dynamic sales activity with in particular the renewal of many contracts (80% were renewed during the year). Dalkia signed and renewed a large number of contracts, including energy performance and heat network contracts in France (a new 26-site multiservice contract with Safran, and a new 15.5-year public service delegation for urban heating in Grande Île at Vaulx-en-Velin and Villeurbanne).

Sales of energy saving certificates improved compared to 2018.

(1) Sum of personnel expenses and other external expenses. Based on comparable scope, standard and exchange rates and constant discount rates for pensions. Excluding changes in operating expenses of the service activities.
(2) Indexed adjustments of TURPE 5 distribution tariff of +3.04% on 1 August 2019 (-0.21% on 1 August 2018) and of the TURPE 5 transmission tariff of +2.16% at 1 August 2019 (+3.0% at 1 August 2018).
(3) Sum of personnel expenses and other external expenses. Based on comparable scope, standard and exchange rates, and constant discount rates for pensions. Excluding changes in operating expenses of the service activities.