Universal Registration Document 2021

 5.2 Post balance sheet events

• • Exceptional regulatory measures to limit tariff increases in 2022 ⁽¹⁾
    • Additional allocation of 20TWh of ARENH volumes ⁽²⁾ for 2022;
    • 12-month postponement to February 2023 of part of the price increase relative to 2022 ⁽³⁾.
  • Nuclear
    • Outages or extended outages of nuclear reactors owing to the detection of defaults on pipes in the safety injection system;
    • French nuclear output estimate updated to 295 -315TWh for 2022 ⁽⁴⁾ and 300 -330TWh for 2023 ⁽⁵⁾.
  • Signature of an exclusive agreement with GE to acquire part of GE Steam Power’s nuclear activities ⁽⁶⁾, excluding the American
  • Announcements by the French President on 10 February 2022 in Belfort
    • Support to the French nuclear sector:
    • – launch of a construction program of 6 EPR2 reactors and potentially 8 more
    • – extended operations for all reactors except for safety issues
    • – development of the French SMR programme, including €500 million for NUWARD^TM
    • Acceleration in renewable energy development (solar, offshore and onshore wind and hydro);
    • Confirmation of the growing role of low-carbon electricity in France’s climate ambition, in a context of reduction in energy consumption.
  • 2022
    • EDF draw attention to the 2022 EBITDA. Starting from a 2021 base of €18bn, this figure will include:
    • – around €6bn improvement in price effect,
    • – around -€8bn related to exceptional regulatory measures ⁽⁷⁾,
    • – around -€11bn linked to nuclear output reduction,
    • – and other effects due to the Group’s performance,

These estimates, which are highly sensitive to market prices, are presented for illustrative purposes ⁽⁸⁾ and are based on current information that the Group has currently available.

• Launch of an action plan

As announced on 13 January 2022 ⁽⁹⁾, EDF presented to its Board of Directors’ meeting on 17 February 2022 an action plan aimed at strengthening its balance sheet structure in the context of the events of early 2022.

This plan aims at pursuing the Group’s strategy, which is based on a balanced mix of nuclear and renewable energies, develops energy efficiency services and provides its customers with even more innovation.

In order to finance this strategy, EDF notified its intention to:

• Submit as soon as possible to the Board of Directors, and subject to market conditions, a proposed rights issue with preferential subscription rights leading to the issuance of approximately 510 million new shares for an amount of approximately €2.5 billion, including issue premium ⁽¹⁰⁾;

• Propose an option to receive a script dividend ⁽¹¹⁾ for fiscal years 2022 and 2023;

The French State, EDF’s largest shareholder, has indicated its position to the Board of Directors on the two points above, which will be communicated separately.

• Carry out additional disposals of around €3 billion ⁽¹²⁾ over 2022 -2024.

5.3 Subsequent events to closing of accounts

After the accounts were closed, the financial ratings were updated by the rating agencies (see update in section 5.1.5.1.2).On 12 March 2022, the Government published the decree(13) and orders relating to the additional allocation of 20 TWh of ARENH volumes for 2022. The impact on the Group's 2022 EBITDA outlook has been updated accordingly (see EDF's press release of 14 March 2022). Following the publication of the ARENH decree and orders, EDF is studying all possibilities to preserve its interests.In addition, the Ukrainian conflict and related geopolitical tensions could have consequences of all kinds for the Group (see Chapter 2, section 2.2 "Risks to which the Group is exposed").

(1) See the press release of 13 January 2022 and note 23 to the 2021 consolidated financial statements.

(2) ARENH: Regulated access to historic nuclear power. Attribution of an additional 20TWh for the period 1 April to 31 December 2022 at €46.2/MWh.

(3) For regulated sales tariffs to residential customers, “blue” tariffs and all customers (both residential professional) located in non-interconnected zones.

(4) See the press release of 13 January 2022 and 7 February 2022.

(5) See the press release of 11 February 2022.

(6) See the press release of 10 February 2022.

(7) This amount includes an estimate of the impact of the tariff postponement on the 2022 cashflow amounting to approximately €1.5bn, based on market prices at 31 December 2021.

(8) Base on the assumption of 31 December 2021 forward prices for 2022.

(9) See the press release of 13 January 2022“Exceptional measures announced by the French government”.

(10) Base on, purely for illustrative purpose, a reference share price of €8 per share and a discount in line with market practice.

(11) Target payout ratio of net income excluding non-recurring items (adjusted for the remuneration of hybrid bonds accounted for in equity) for 2022 and 2023 of 45-50%.

(12) Signed or completed disposals: impact on the Group’s economic debt reduction (S&P definition).

(13) Decret no 2022-342 dated 11 March 2022.