The financial result for 2019 corresponds to a financial expense of €361 million, with an improvement of €4,437 million from 2018. This change is explained by:
Income taxes amounted to -€1,581 million in 2019, corresponding to an effective tax rate of 24.71% (compared to an income of +€178 million in 2018 corresponding to an effective tax rate of -27.13%(1)). The €1,759 million increase in the Group’s tax charge between 2019 and 2018 essentially reflects the higher net income before taxes, which rose by €5,743 million (notably resulting from the increase in EBITDA and changes in unrealised gains and losses on EDF SA’s portfolio of financial assets), which generated an additional tax charge of €1,977 million in application of the French income tax rate of 34.43%.
After eliminating non-recurring items (mainly changes in unrealised gains and losses on EDF SA’s portfolio of financial assets, impairment and disposals), the effective tax rate for 2019 is 19.1%, compared to 22.6% (1) for 2018.
The Group’s share in net income of associates and joint ventures was a positive €818 million in 2019, compared to €569 million in 2018.
This +€249 million change is mainly explained by the increase in CENG’s net income.
The share in net income of associates in 2019 includes impairment totalling -€73 million. Details of this impairment are given in note 26 to the 2019 consolidated financial statements, “Investments in associates and joint ventures”.
The specific line “Net income of discontinued operations” comprises items from the income statement of Edison’s E&P operations for 2018 and 2019, and impairment on these assets recognised in those two periods (see note 19 to the 2019 consolidated financial statements).
Net income attributable to non-controlling interests amounted to €27 million in 2019, up by €13 million compared to 2018.
EDF net income totalled €5,155 million in 2019, an increase of +€3,978 million in comparison to 2018, notably due to improvement of the financial result.
The Group’s net income excluding non-recurring items(2) stood at €3,871 million in 2019, up by 57.9% compared to 2018.
| (in millions of euros) | 2019 | 2018 | Variation | Variation |
|---|---|---|---|---|
| Net cash flow from operating activities | Net cash flow from operating activities201914,022 | Net cash flow from operating activities201813,364 | Net cash flow from operating activitiesVariation658 | Net cash flow from operating activitiesVariation+4.9 |
| Net cash flow used in investing activities | Net cash flow used in investing activities2019(15,650) | Net cash flow used in investing activities2018(17,165) | Net cash flow used in investing activitiesVariation1,515 | Net cash flow used in investing activitiesVariation-8.8 |
| Net cash flow from financing activities | Net cash flow from financing activities20192,223 | Net cash flow from financing activities20183,530 | Net cash flow from financing activitiesVariation(1,307) | Net cash flow from financing activitiesVariation-37.0 |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS2019595 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS2018(271) | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTSVariation866 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTSVariationn.a . |
| Cash and cash equivalents – opening balance | Cash and cash equivalents – opening balance20193,290 | Cash and cash equivalents – opening balance20183,692 | Cash and cash equivalents – opening balanceVariation(402) | Cash and cash equivalents – opening balanceVariation-10.9 |
| Net increase (decrease) in cash and cash equivalents | Net increase (decrease) in cash and cash equivalents 2019595 | Net increase (decrease) in cash and cash equivalents 2018(271) | Net increase (decrease) in cash and cash equivalents Variation866 | Net increase (decrease) in cash and cash equivalents Variationn.a. |
| Effect of currency fluctuations | Effect of currency fluctuations 2019(5) | Effect of currency fluctuations 2018(95) | Effect of currency fluctuations Variation90 | Effect of currency fluctuations Variation-94.7 |
| Financial income on cash and cash equivalents | Financial income on cash and cash equivalents 201917 | Financial income on cash and cash equivalents 201813 | Financial income on cash and cash equivalents Variation4 | Financial income on cash and cash equivalents Variation+30.8 |
| Effect of reclassifications | Effect of reclassifications 201937 | Effect of reclassifications 2018(49) | Effect of reclassifications Variation86 | Effect of reclassifications Variationn.a. |
| CASH AND CASH EQUIVALENTS – CLOSING BALANCE | CASH AND CASH EQUIVALENTS – CLOSING BALANCE20193,934 | CASH AND CASH EQUIVALENTS – CLOSING BALANCE20183,290 | CASH AND CASH EQUIVALENTS – CLOSING BALANCEVariation644 | CASH AND CASH EQUIVALENTS – CLOSING BALANCEVariation+19.6 |
n.a: not applicable.
(1) The financial statements at 31 December 2019 apply IFRS 16 from 1 January 2019 (see note 2.1 to the 2019 consolidated financial statements).
(2) The published figures for 2018 have been restated due to the impact of presenting the E&P operations as discontinued operations.
(1) The published figures for 2018 have been restated due to the impact of presenting the E&P operations as discontinued operations.
(2) EDF net income excluding: non-recurring items, net changes in fair value on energy and commodity derivatives (excluding trading activities), and net changes in the fair value of debt and equity instruments, net of tax. Amount of non-recurring items, net changes in fair value on energy and commodity derivatives, excluding trading activities, and net changes in the fair value of debt and equity instruments, net of tax: -€986 million of impairment and other non-recurring items in 2019, compared to -€385 million in 2018; +€490 million of net changes in the fair value of energy and commodity derivatives, excluding trading activities, net of tax in 2019, compared to -€145 million in 2018; +€1,780 million of net changes in the fair value of debt and equity instruments in 2019, compared to -€745 million in 2018.
