Mitsubishi Heavy Industries and EDF Sign Memorandum of Understanding on Collaboration in Civil Nuclear Power Businesses

Publish on 07/07/2016

Paris/Tokyo, June 28, 2016 – Mitsubishi Heavy Industries, Ltd. (MHI) and EDF, a leading French utility, have agreed a significant step to forge a strategic and global collaborative relationship in the civil nuclear power fields.

A memorandum of understanding (MOU) was signed at the World Nuclear Exhibition (Paris) by the top representatives of the two companies: Shunichi Miyanaga, President & CEO of MHI, and Jean-Bernard Levy, Chairman & CEO of EDF.

The agreement signed today is a strategic move to strengthen the links between the French and Japanese nuclear power industries, recognizing the strategic interest to combine in certain fields of civil nuclear energy the strengths of EDF and MHI. Specifically, EDF and MHI intend to enhance their strategic cooperation by establishing general objectives and principles related to:

  • an updated cooperation framework regarding the ATMEA joint venture, including the involvement of EDF in ATMEA’s business operations,
  • with mutual support to be brought for the smooth execution of ATMEA1 projects, in particular in Turkey and Vietnam,
  • the potential participation of MHI as a partner in the French nuclear landscape reorganization with the acquisition of a minority equity interest in AREVA NP,
  • potential broader range of collaborative ties leveraging the respective technologies and special expertise in the global market.

EDF is the world’s largest operator of nuclear power plants (NPP) benefiting from a broad experience in project development and international cooperation, and has outstanding expertise in the field of the 'nuclear industry' and has been developing nuclear power plants in France and abroad on the basis of the EDF group’s integrated organization, engineering skills and lessons learned. The company has constructed and operates 58 NPPs in France and operates 15 NPPs in the UK. Abroad EDF is also playing a leading role in various new nuclear projects.


EDF Group appointment: Fabrice FOURCADE is appointed Senior Vice President to work with the Senior Executive Officer for China

Publish on 14/04/2016

Taking effect as of 1 June 2016, Fabrice FOURCADE has been appointed to the role of Senior Vice President, to work with Hervé MACHENAUD, EDF's Senior Executive Officer in China. He is set to take up his position at the Delegation before the end of 2016.

Fabrice FOURCADE, 50, is currently Senior Vice President of Cap 2030, reporting directly to Jean-Bernard LEVY, Chairman and Chief Executive Officer of EDF.

He started his career in Germany at an artificial intelligence research laboratory and went on to join EDF in 1992. As a research engineer and later at the head of a research group, his fields of activity were economic studies and mathematics applied to electricity system optimisation. Within the Strategy Division, upon French market deregulation, he took charge of the team responsible for tariff negotiations with the government and electricity pricing strategy. In 2001, he was responsible for the development of electricity, gas and services offers for key accounts within the Customer branch of EDF, before being appointed Senior Vice President, Key Accounts in 2003. In 2007 he became Chief Executive Officer, Dunkerque LNG, the EDF subsidiary tasked with developing the Dunkirk LNG terminal. From 2010 to 2014 he coordinated the commercial activities of EDF in the Ile de France region.

A graduate of the École Normale Supériere of Fontenay-aux-Roses, Fabrice FOURCADE holds a degree in civil engineering from the École Nationale des Ponts et Chaussées and an Agrégation teaching qualification in mathematics.

Flamanville EPR: Advancement of Reactor Vessel Testing Programme

Publish on 14/04/2016

AREVA, together with EDF, has recommended to the French Nuclear Safety Authority (ASN) to adapt the testing programme of the Flamanville 3 EPR reactor vessel head and bottom as decided at the end of 2015.

Initial analyses conducted on two parts similar to those at Flamanville 3 have shown that the carbon segregation phenomena extend beyond mid-thickness on one of them. As specified in the initial strategy approved by the ASN, the material sampling and related tests will be extended to three-fourths of the thickness of the part concerned.

The purpose of these initial analyses is also to better specify the variability of the main manufacturing parameters of the different parts. AREVA and EDF have therefore proposed extending the testing programme to include a third part to strengthen the robustness of the demonstration.

These adaptations to the testing programme will double the number of samples analysed. A total number of 1200 material samples will be taken to consolidate the representative nature of the three forged parts tested, both for carbon content and required mechanical properties.

The ASN has approved this addition to the testing programme, which will continue through the end of 2016, when the final report will be submitted.

EDF and AREVA have reaffirmed their confidence in their ability to demonstrate the quality and safety of the reactor vessel for the start-up of the Flamanville 3 reactor planned for the last quarter of 2018. The assembly and testing activities are going ahead at the construction site in line with the announced schedule.

2015 full-year results: all targets reached

Publish on 29/02/2016

2015 full-year results: all targets reached
Strong operating performance
in adverse market conditions
2018 ambition reiterated

  • EBITDA: € 17.6 bn, +3.9% organic growth excluding 2012 tariff catch-up, in line with the upgraded target of at least 3% growth
  • net income excluding non-recurring items : €4.8 bn, stable compared to 2014
  • net income - Group share: €1.2 bn compared to €3.7 bn in 2014 due mainly to impairments announced in December 2015
  • good performance in nuclear generation
    • France : 416.8 TWh, exceeding the 410-415 TWh target
    • United Kingdom: 60.6 TWh, highest nuclear output in past 10 years
  • ngoing control on Opex: -1.4% compared to 2014
  • continued development of the Group in renewable energies
    • +1 GW of net capacity installed by EDF Énergies Nouvelles
    • success of the second Green Bond: $1.25bn dedicated to renewable energy projects
  • net financial debt / EBITDA: 2.1 x in line with the target of 2-2.5 x
  • dividend proposed for 2015: €1.10/share with the option for a payment in new shares, equivalent to a 56% payout ratio after deduction of Cigéo extra-cost

Financial perspectives

  • lEBITDA4: €16.3 – €16.8 billion
  • net financial debt / EBITDA: between 2x and 2.5x
  • lay-out ratio of net income excluding non-recurring items: 55% to 65%

2018 positive cash flow ambition confirmed

Board of Directors’ meeting held on 9 December 2015

Publish on 12/12/2015

During its meeting held on 9 December 2015, EDF group’s Board of Directors reviewed the 2015 activity as well as the 2016 budget and the 2017-2019 Medium-Term Plan.

1. 2015 objectives: EBITDA organic growth upgraded to at least 3%

The strong operating performance – including a French nuclear output of at least 415 TWh, good control of operational expenditures, and the favourable outcome for Edison of the arbitration on the ENI contract, enable the Group to upgrade its EBITDA growth objective.
The Group now expects at least 3% organic growth of its 2015 EBITDA vs. 0 to 3% growth previously.
Objectives pertaining to the net financial debt /EBITDA ratio – between 2 x and 2.5 x – and to the payout ratio of net income excluding non-recurring items – between 55% and 65% – remain unchanged.

2. 2018 ambition: the Group confirms its ambition to be cash-flow positive after dividends in 2018 and a maximum amount of net investments excluding new developments at €10.5 bn in 2018

The Board of Directors approved the budget and reviewed the Group Medium-Term Plan. It took note, in the context of the unfavourable regulatory and market environments, of the additional cost-control measures that will be implemented to allow room for manoeuvre enabling the Group to pursue its strategic ambition.
Operational expenditures are now expected to decrease every year of the plan to come at €700 m below the 2015 cost base.
Furthermore, investments associated to new developments will be financed by reallocating the proceeds from assets disposal, the value of which will be optimised throughout the duration of the plan.

3. The Group will book additional impairments in the second half of 2015 amounting to around €2.3 bn

Finally, following the strategic review of fossil-fired generation assets in Continental Europe announced in July 2015 and the preparation of the Group’s Medium Term Plan, the Board of Directors also reviewed the analysis associated to asset impairment tests in view of the 2015 financial statements closing.
The outcome of this work will lead the Group to book additional impairments in the second half of 2015 amounting to around €2.3 bn (after tax and minority interests). These impairments are mainly related to the UK, Italy, Poland and EDF’s participation in CENG in the United States. They have no impact on the Group cash flow or on the net income excluding non-recurring items used in calculating the dividend.

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