EDF Half-Year Report 2023

Financial performance

Sales: €75.5 bn: organic increase of +14.4% vs. H1 2022
EBITDA: €16.1 bn: x6 organic increase vs. H1 2022
Net income – Group share: €5.8 bn
Net financial debt: €64.8 bn vs. €64.5 bn at end-2022

The strong growth in the Group’s results is due to a good operational performance in a favourable price environment and after a year 2022 marked by an exceptional regulation with no equivalent in 2023.

Net income
The financial result for the first half of 2023 is an expense of €1.5 billion, an improvement of €1.4 billion over the
first half of 2022 explained by:

• a clear €5 billion improvement in other financial income and expenses, mainly thanks to the good
  performance by the dedicated asset portfolio: its 5.5% return reflects trends on the financial markets in the
  first half of 2023 (vs -8.9% in H1 2022);
• a €2.5 billion increase in the cost of unwinding the discount, principally owing to stability in the real discount
  rate applied for nuclear provisions in first-half 2023 after the positive impact of a 30bp rate increase in firsthalf 2022;
• a €1.1 billion rise in the cost of gross financial indebtedness in a period of significant interest rate
  increases, and a volume effect related to financial debt, which is expected to stabilise in 2023

Cash flow

Group cash flow for the first half of 2023 amounted to -€1.6 billion. The €2.4 billion improvement compared to the
first half of 2022 was well below the €13.4 billion increase in EBITDA and the €18.8 billion increase in cash
EBITDA, as a result of the deterioration in working capital:

• During the first half of 2022, working capital improved by €6.8 billion thanks to reversals of high underlying positions in the trading activity following rising volatility in 2021, and surplus CSPE compensation in a high market price environment.
• In the first half of 2023, in contrast, working capital deteriorated by €8 billion, including €4.3 billion attributable to the trading activity in a context of decreasing volatility, and €3.3 billion due to the CSPE compensation shortfall of the receivable generated by France’s tariff cap by less revenues from the purchase obligation in a context of lower prices.

Net investments in the first half of 2023 reached €9.1 billion, up slightly by €0.7 billion due notably to the HPC
project, extensive maintenance work on the nuclear fleet, and growth in network activities