Universal Registration Document 2022

5.1.3.1.1.5 Framatome

Framatome’s sales amounted to €4,122 million in 2022, an organic increase of 16.8% compared to 2021.

A significant portion of sales are made with the Group, and this rise in sales is explained by higher levels of business with the Group.

5.1.3.1.1.6 United Kingdom

Sales by the United Kingdom segment in 2022 totalled €16,098 million, an organic increase of €6,203 million (+61.3%) compared to 2021.

This increase is mainly attributable to the impact of rising energy prices, and higher nuclear output, which rose by 1.9TWh to 43.6TWh due to good fleet availability and a lighter maintenance schedule, despite the closure of Hunterston B in January and Hinkley Point B in August 2022.

5.1.3.1.1.7 Italy

The Italy segment’s sales totalled €29,302 million in 2022, with organic growth of €17,952 million (+160.1%) compared to 2021.

In the gas activities, sales were up significantly as a result of rising prices on all markets (although the effect on the margin was limited), and higher sales volumes.

In the electricity activities, sales growth was also attributable to the very significant increase in market prices, with a limited impact in EBITDA.

5.1.3.1.1.8 Other international

The Other international segment principally covers operations in Belgium, the United States, Brazil and Asia (China, Vietnam and Laos). Sales by this segment in 2022 amounted to €5,659 million, an organic increase of €1,936 million (+57.7%) compared to 2021.

In Belgium ⁽¹⁾, sales registered organic growth of €1,918 million (+76.6%) from 2021, resulting from higher electricity and gas prices and an increase in volumes sold to customers. The customer portfolio grew slightly despite intense competition on the market. Greater use was made of the thermal generation fleet, leading to an increase in electricity system services. The wind power fleet is expanding, and net installed capacity totalled 620MWh at 31 December 2022. However, hydropower performance was affected by drought conditions.

In Brazil, there was an organic decrease of €43 million (-6.9%) in sales, principally due to lower export sales. The foreign exchange effect was favourable in 2022 (the Brazilian real rose against the euro).

In Vietnam, sales showed an organic increase of €67 million (+34.0%), in keeping with the rise in gas prices (on a pass-through basis, so there is no impact oin EBITDA).

5.1.3.1.1.9 Other activities

Other activities comprise, among other entities, EDF Trading and the gas activities.

Sales by this segment amounted to €19,724 million in 2022, an organic increase of €16,033 million compared to 2021.

• sales by the gas activities amounted to €12,410 million, an organic increase of €10,550 million from 2021, essentially explained by the favourable effect of wholesale market prices for gas (+€6,945 million) and the higher volumes sold (+€5,464 million);
• EDF Trading’s sales totalled €7,038 million, an organic increase of €5,457 million explained by the business performance in Europe and the United States in a context of high market volatility on all the commodity markets.

5.1.3.2 EBITDA

The Group’s consolidated EBITDA for 2022 amounted to -€4,986 million, an organic decrease of 128.2% from 2021. Despite a significant increase in sales supported by electricity and gas prices, EBITDA was down significantly in 2022. In France, this decrease is essentially explained by the decline in nuclear output linked to the phenomenon of stress corrosion, by the impact of the exceptional regulatory measures to limit price increases for consumers in 2022, and to a lesser extent, by the drop in hydropower output. These developments obliged the Group to purchase electricity at a time when market prices were very high. However, EBITDA benefited from an exceptional performance of EDF Trading in a highly volatile market environment, and better nuclear output in the United Kingdom.

5.1.3.2.1 Change in Group EBITDA and analysis

• The Group’s fuel and energy purchases amounted to €121,010 million in 2022, an organic increase of €76,627 million (+173%) compared to 2021.
  • in the France – Generation and supply segment, fuel and energy purchases registered an organic increase of €42.2 billion due to large-scale energy purchases made at high prices to compensate for the lower levels of nuclear and hydropower output, and purchases to provide alternative suppliers with additional ARENH volumes;
  • in the United Kingdom, the organic increase of €5,029 million (+63.4%) in fuel and energy purchases principally reflects the impact of rising market prices on energy purchases;
  • in Italy, the organic increase of €17,675 million (+191%) in fuel and energy purchases essentially reflects higher wholesale prices and volumes for gas.
• The Group’s other external expenses amounted to €9,420 million for 2022, an organic increase of €722 million (+8.4%) from 2021.
  • in the France – Generation and supply segment, other external expenses registered an organic increase of €216 million (+8.6%). This increase mainly reflects purchases associated with the growth in service activities for final customers, development of engineering projects, and the general increase in prices;
  • in the France – Regulated activities segment, the organic growth of €57 million (+3.8%) reflects the higher level of capitalised production, in line with grid connection activities;
  • in the United Kingdom, there was an organic decrease of €99 million (-14.8%) in other external expenses, mainly explained by the transfer to the Nuclear Liability Fund of expenses for permanently shutdown power plants (Dungeness B and Hunterston B);
  • EDF Renewables registered a €115 million (+16.7%) organic increase in other external expenses, principally due to growth in the project portfolio;
  • Dalkia’s other external expenses showed an organic increase of €174 million (+9.4%), reflecting sustained business site work in the United Kingdom and France.
• The Group’s personnel expenses for 2022 totalled €15,236 million, an organic increase of €615 million (+4.2%) from 2021.
  • in the France – Generation and supply segment, personnel expenses registered an organic increase of €158 million (+2.6%) principally resulting from wage negotiations, partly counterbalanced by the positive effect of the higher discount rate applied to pensions for employee benefits;
  • in the France – Regulated activities segment, personnel expenses were up slightly by +€18 million (organic increase of 0.6%), due to the volume effect of workforce numbers, limited by the discount rate effect;
  • EDF Renewables registered a €90 million (+20.5%) organic increase in personnel expenses that is explained by a rise in workforce numbers, notably associated with growth in the development and construction businesses, and also by wage inflation, observed principally in the United States and Brazil;
  • Dalkia saw an organic increase of €94 million (+8.1%) in its personnel expenses, resulting from a workforce increase linked to growth in the services and site work businesses, and a wage inflation environment;
  • in the United Kingdom, there was an organic decrease of €114 million (-9.7%) in personnel expenses, explained by the transitional payment for the employee pensions reform in 2021 which had no equivalent in 2022, and the decrease in the workforce in 2022.
• Taxes other than income taxes amounted to €3,163 million for 2022, corresponding to an organic decrease of €205 million (-6.2%) compared to 2021.
  • in the France – Generation and supply segment, the €263 million (-13.4%) organic decrease is mainly attributable to lower value added taxes given the segment’s results.
• Other operating income and expenses generated a net expense of €367 million in 2022, an organic decrease of €3,968 million (-93.1%) compared to 2021.
  • in the France – Generation and supply segment, the -€3,429 million organic decrease in other operating income and expenses is primarily attributable to lower CSPE compensation (neutral impact in EBITDA), associated with the rise in spot market prices;
  • in the France – Regulated activities segment, the +€63 million (+3.9%) organic increase in other operating income and expenses mainly resulted from an increase in CSPE compensation for the island energy systems under the mechanism to compensate for additional costs in the French islands;
  • EDF Renewables registered an organic decrease of €129 million (-35.8%) in other operating income and expenses, mainly reflecting the lower impact of disposal operations.