ANNUAL RESULTS 2020 slide image

ANNUAL RESULTS 2020

Strategy and investments ESG Renewables Regulated France Generation and supply Consolidated sales Operational data and markets FLAMANVILLE 3 EPR (1,650 MW) (2/2) CONTROLS ON THE MAIN PRIMARY CIRCUIT On 2 June 2020, ASN asked EDF to conduct fresh survey inspections of the Main Primary Circuit (Circuit Primaire Principal, CPP). EDF has drawn up a sample of welds that are representative of all Main Primary Circuit welds for this re-inspection. Work started on 24 February 2021 and is due to continue through to the second half of 2021. In a separate development, on 2 March 2021 EDF declared a significant event to ASN. This concerned the incomplete observance of the "break preclusion" referential in respect of the implantation of three nozzles on the main primary circuit (a nozzle allows to connect auxiliary circuits to the primary circuit). EDF and Framatome engineering teams are currently carrying out an instruction to identify, and then propose to ASN, documentary or corrective actions. If ASN accepts the proposal, no significant impact on the schedule or costs has been identified. SCHEDULE AND COSTS On 9 October 2019 (1), the Group submitted a new schedule and a new estimate of construction completion cost (2) for Flamanville 3 EPR and indicated that provisional schedule for implementing the repairing of the penetration welds, considering the agreement of the ASN, would mean the fuel being loaded at end-2022 and a revised construction completion cost of €12.4 billion (2). The additional costs with respect to the previous estimate of € 2015 1.5 billion have mostly been booked under “other income and expenses” (3) rather than as investments. For 2020, these additional costs booked as "other income and expenses" amounted to €397 million. At end-2020, the review of the impact of the first lockdown on the works indicated that the project no longer has any margins, either in terms of schedule or in terms of costs. Meeting these targets is dependent on a number of factors and technical issues, including ASN investigations. Furthermore, other risks may also emerge. The risk regarding the schedule and construction completion cost is therefore very high. (1) See press release of 9 October 2019 (2) In 2015 euros, excluding interim interest (see note 10 of the Groupe 2020 financial statements) (3) IAS 16 paragraph 22 on abnormal costs incurred in connection with assets constructed by the Company. These costs will affect the Group share of net income, without any impact on net income excluding non-recurring operations EDF SALES FIRST QUARTER 2021 19
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