Good afternoon, this is the conference operator. Welcome to the EDF first half 2024 results Q&A session conference call. Anyone who wishes to ask a question may press star one on their touchtone telephone. At this time, I would like to turn the conference over to Mr. Xavier Girre, CFO of EDF Group. Please go ahead, sir. Thank you very much. Good afternoon or good morning, everybody. I'm very pleased to welcome you to this call, and together with my team, we will be happy to answer your questions. Just a few words as an introduction. 2023 was an exceptional year, with an EBITDA at EUR 39.9 billion and the net financial debt that reduced by more than EUR 10 billion. 2024 had a very strong start, with an EBITDA at EUR 18.7 billion, a EUR 2.6 billion increase compared to H1 2023, stabilization of the level of the net financial debt, and a net debt to EBITDA ratio at 1.28 x. This is the result of a strong operational performance, with an increase by 19 TWh of the nuclear output in France, notably thanks to the efficient treatment of the stress corrosion. As of today, 50 out of the 56 reactors of the fleet have been controlled and treated when necessary, which is a great performance of the teams. As a consequence, we expect the nuclear output in France to be in the upper end of the 315-345 TWh range for 2024. Hydraulic output has been exceptional this year, this half year. Thanks to this, EDF reached the lowest ever carbon intensity of 29 grams of CO2 per kWh, with electricity output of 259 TWh available on demand. The regular divergence of Flamanville 3 in the very coming weeks will bring additional low carbon capacity to our energy mix. As regards Group's EBITDA, with some additional details, the rapid market price downturn has already begun, and France's EBITDA was impacted by an estimated EUR -8.1 billion in H1. This effect should continue and we be significant as well in the second half of the year. It was counterbalanced in H1 2024, thanks to the impact of the lower prices on net market purchases for EUR +7.8 billion. Indeed, nuclear output in H1 2023 was notably impacted by the treatment of stress corrosion. As nuclear output improved in H2 2023, this positive relative effect should be limited in H2 2024. Those effects were expected, and I can confirm, therefore, what I said for 2024 as a whole when presented our year-end results, meaning that we expect to deliver strong EBITDA for the full year 2024, though significantly lower than last year's. As we get the cash flow, some details. Net investments reached EUR 11.1 billion, EUR 1.9 billion more than in first half 2023, due notably to new nuclear projects, including Hinkley Point C, network development and reinforcement, and nuclear fleet maintenance. The acquisition of the nuclear activities of GE Steam Power, Arabelle Solutions, and Assystem 5% stake in Framatome also had a EUR 0.9 billion effect on the rise in the investments. The rise in net investment will continue in the second half of the year. As we get financing, the bond issuances during the first half of 2024, totaling around EUR 5.5 billion, the lower level of short-term debt and early repayments of bank loans extended the maturity of the group's financial debt to 12.1 years at end June 2024, versus 11 years at end 2023. It made it possible to control financing costs in a time of rising interest rates. Maintaining the sustainability of our leverage is a key target. Here, I can confirm the ambition communicated six months ago, i.e., a net financial debt to EBITDA ratio of less than 2.5 x, and an adjusted economic debt to adjusted EBITDA ratio of less than 4 x at end 2026. Some other points, as regards our strategy. First, we are definitely focusing and investing in skills for tomorrow. This year, close to 20,000 men and women will join the company to participate to the energy transition journey, including 9,500 work study trainings and interns, promoting a good gender balance and diversity and bringing young people into the workforce. Second, on the business side, our new commercial policy is bearing fruit. Letters of intent, representing more than 10 TWh per year, have already been signed with industrial partners, and more than 2,200 contracts with 4 and 5-year horizons have been signed with firms of all sizes, covering nearly 13 TWh for 2028. As a whole, we are definitely confident in the strength of the group to have a key role in the energy transition, and the Ambitions 2035 strategic plan for the company's development, performance and transformation commented by our CEO this morning, will help EDF build the electricity system of the future. I thank you, and now the floor is yours. We are all ready to answer your questions. Thank you. This is the conference operator. We will now begin the question and answer session. Just a quick reminder, anyone who has a question may press star and one at this time. The first question is from Alessandra Mac Donald of BlackRock. Please go ahead. Hi there. Good morning. Thank you for the call and the brief presentation. I just wanted to confirm with you, given where leverage was at the end of H1, is it fair to assume that you will meet your leverage target to the below 2.5 x also in 2024? The second question I had regards the expired hydro concession. I just wanted to know if discussions have started with the government and, you know, where, where are you on that? Similar question, but on the remuneration framework for the new nuclear reactors, again, if there has been any development there, in terms of what should we expect for the future remuneration? That's it. Thank you very much. Thank you very much for your questions. First, as regards our leverage, our goal clearly is set for the midterm, meaning 2026. Clearly, we intend to be significantly lower, 2.5 net financial debt to EBITDA in 2026. That's why we've maintained this guidance. And for this year, 2024 also. I remind you that at the end of this half year, our net financial debt to EBITDA ratio is 1.28. Second, as regards hydro concession, I mean, for the time being, as you may know, there is a new fully operating government in France, so discussions and reflections will of course go on afterwards. But for the time being, there is nothing new about this matter. As regards your third question concerning the new nuclear fleet project for France. Definitely this is a key project for France, which is, of course, being worked upon during all this half year and which is going on. During this half year we've achieved key milestones, in particular, the maturity of the design has been recognized after an independent review, which is of course a key milestone, as you can imagine. Second, we are working on the costing and working on the financing also with the French government, and work is going on about that. This is, of course, a key point which will be a key condition for this project in the months and years to come. The next question is from Ivan Pavlovic of Natixis CIB. Please go ahead. Yes, thank you very much for holding this session and taking my question. I would ask 2, please. The first one is on the EBITDA guidance. I think going back to the 2023 results presentation, there was a sort of implicit guidance on a level of EUR 30 billion in 2024. I just wanted to know whether you confirm this guidance. My second question will be back to the regulatory environment and on the post ARENH mechanism. Just wanted to know whether the mechanism had been enacted thus far, and also, if you had any comment to share on the report recently available by the French Senate, which advocates the extensive use of CFDs rather than market-based bilateral contracting. Thank you very much. Thank you very much. First, as regards EBITDA, we didn't give any guidance for 2024. I explained in February how we see 2024, and I just confirm that today, so mid-year, we see 2024 exactly in the same terms as we saw it at the beginning of the year. Meaning that, we expect to deliver a very strong EBITDA for this year, 2024, but nevertheless a lower one than last year, which was really exceptionally high, as you remember, with a EUR 39.9 billion. And this is due to, of course, two key elements. On the one hand, the continuous improvement of our performance, in particular as regards our nuclear generation in France. As we also explained this morning and wrote in our written communications, we intend to reach the very top end of our range, so 15-34 TWh this year. Due also to the very strong performance of all the different businesses. On the other hand, the downward trend of the market prices is significant, very significant, and it's only starting, in fact, and so that's why, as a whole, we see for 2024, a lower EBITDA than last year. As regards post ARENH mechanism, I mean, today, I mean, there is no need for specific decision or specific act to be taken. What we are doing is to deliver our commercial policy. And which is definitely successful. I mean, we have already signed letter of intent as regards industrial partnerships for 10 TWh more or less, and also midterm contracts representing today 13 TWh. So this is currently being implemented, and this shows that I mean these offers are consistent with the needs of our customers. They are competitive and they give visibility also to these customers. The next question is from Michael Charlton of Banco Santander. Please go ahead. Hi. Thanks very much indeed for taking the call. Just a couple of questions. One is on the interconnector with Germany. There seems to be a substantial price differential between the two, between. I'm sorry, we don't hear you very much. Could you please speak a bit louder or, I mean, we don't hear you very much? Yeah, sorry about that. Can you hear me a little bit better now? Oh, yeah, this is much better. Thank you. Okay. Sorry about that. No, it's just about the interconnector with Germany. There seems to be an issue with the interconnectors leading to a sort of something like a EUR 10 per MWh price differential. Is there any news on when that might be fixed? Because I think that could be sort of an earnings driver for you going forward. And then in the presentation that you gave this morning, you showed the 4 - 5 year forward prices in France coming down quite substantially. Do you think these are realistic? I mean, I know that TTF forwards are down significantly, but CO2 prices are trending back upwards. Just wondering whether you feel that, you know, we should be concerned about these sort of 4-5 year forward prices eventually flowing through into your earnings? Thank you. Thank you very much for your two questions. I mean, first, when we look at forward prices for the next four years, 4-5 years, as you referred to, till 2029, they are in the range of EUR 60-65 per MWh. So I mean, after a significant drop compared to last year's forwards, they tend to stabilize. Of course, this is changing day after day, but this is the current, this is the current view. What's here the key point? The key point is that, I mean, the demand remains quite weak, and in the meantime, you have more and more supply, and of course, as a consequence, this gives quite low prices, as we get forward market prices. So this is what we, of course, what we see from the market, and this is what we take into consideration in our midterm trajectory. And definitely, we consider that our strategic plan, Ambitions 2035, is enabling us to sustain our financial situation, to sustain our balance sheet, in order to invest consistently with our ambitions. Meaning that we have to transform our company, we have to improve our efficiency, we have to master our costs, and we need, of course, also a stable regulation, which gives visibility to decarbonize and competitive supplies. So, and so this is exactly where we are today, and as you see, the prices that we offer in our midterm contracts are also very consistent with that. As regards the interconnection with Germany and the spread between German and French price, you noticed it very rightly. I mean, it was more like EUR 20 some weeks ago. It's more in the range of EUR 10 during this day. Difficult to say, of course, if this will be very lasting or not. What I can tell you today is that, as far as EDF is concerned, we are today a significant exporter. We export more like 12-15 GWh per day, which is very significant. As a whole, during the half year, we exported more than 40 TWh. And this shows that our energy system, electric system, in France, is competitive today. Okay, thanks very much. The next question is from James Sparrow of BNP Paribas. Please go ahead. Yeah, hi, everyone. Thanks for taking my call. A couple of questions. First of all, just around Flamanville, I just wondered if you could sort of talk us through the timeline from here and maybe give an indication if there will be some sort of production contribution to 2024 results. Then the second question is, I appreciate it's a much harder one around politics and sort of the absence of the government, but obviously, government funding for any new nuclear is crucial to you. So just wonder whether there are any sort of, you know, red lines that you don't think the government would cross, regardless what shape or form it would be, and say, maybe is it just your kind of leverage target. That you see as something that is absolutely vital, regardless of who's running the country, and what sort of intervention they might try and put at the expense of EDF. But I'd say, I do appreciate that's a very difficult one to answer, but any color you can kind of give around the political situation would be very helpful. Thank you. Thank you very much. First, as regards Flamanville 3, I mean, the divergence is imminent, so to say. Then the connection is expected a few weeks afterwards. As regards commercial generation, it should be very minimal for 2024. Considering, as you know, that there is a ramp-up phase, and so this is where we are today. So it's, of course, a great moment, being on the eve of this divergence and connection. But the impact as regards financial impact on the P&L and on the EBITDA is, of course, mostly expected from 2025. Second, as regards the new nuclear funding program, I can confirm to you, and to be very clear, that we have very, very good, very positive discussions with the French administration. I mean, it's very clear that that financing such strategic systemic infrastructure for a country requires some support, either in the pre-financing phase, during the construction period, or, and, or, in the operation period, via contract for difference or other mechanisms. So there are different options as regards the modalities. There is no question about the principle. I mean, as regards the principle, it's very clear that such a program requires that kind of support. Now, of course, we have, and we are currently working jointly with the French state in order to finalize what would be the proposal put forward. In the same time, of course, the costing is currently also being finalized, and it's once all that will have been finalized that everything will be ready for a final investment decision. The next question is from Prithvi Vatsa of Bank of America. Please go ahead. Thank you for taking my question. And congratulations on a strong H1 result. So most of my questions were previously answered, but I was just curious to understand on the debt leverage target. So, like, how much is that moved by the EBITDA generation, and how much is evolving due to the net debt increase? And what is your guidance for net debt issue, debt issuance for 2024 and 2025? And the last question is, you know, on the construction of new nuclear plants, why is the cost ever-increasing for the construction of new nuclear plants? Historically, EDF was able to build new nuclear or nuclear plants at a fairly competitive prices. Why is that always increasing from early 2000s? Thank you. Thank you very much. First, as regards the net financial debt to EBITDA ratio guidance, I mean, as you highlighted, I mean, of course, there is some difference between 1.28 and 2.5, and as I said, I mean, we expect to be lower than that in 2026. And in order to answer precisely to your question, I mean, what we see in the years to come, the potential and relative reduction of the EBITDA due to the market price trends, and of course, this is very sensitive to this ratio. The between debt and EBITDA, this is EBITDA, which is expected as being moving more significantly than debt. As regards to debt, of course, we are very focused on controlling it, mastering it, optimizing it, because of course, it's a key to our sustainability and to our rating, and definitely, we definitely consider as a key goal to at least maintain our current ratings. Secondly, as regards issuances, I mean, as you certainly have already noticed, we are always very both opportunistic and also forward-looking as we get our issuances. And we want to, in this frame, we want to go on issuing on a regular basis, in different currencies. We already did that during the first half of the year. We intend to go on during the second half of the year, of course, depending on the market conditions, in order to diversify our investors' portfolio. In the years to come. We have to issue significant amounts, more or less in the same range as last year. Meaning between EUR 7 billion and EUR 10 billion per year, more or less, considering both senior and hybrid issuances. And everything being in this global frame, optimized, taking into consideration relative costs and market conditions. Third question you raised concerning the cost of our nuclear project. You're absolutely right to pinpoint that, because for us, this is our first strategic and industrial goal, which is to master, to control the cost of our nuclear project. It was very difficult for Flamanville 3. It is also difficult for HPC, and we are learning from these experiences. So, where are we today? First, as you certainly have in mind, I mean, this project, in particular Flamanville 3, were started at the time when the design was not absolutely finalized. Second, the negotiations with the suppliers were not finalized neither. Third, there were some exceptional events, so of course, this is very difficult to, to avoid, as the Fukushima event concerning Flamanville, which it had some impact because it occurred in 2011, and Flamanville was already being built at that time, or as regards HPC, the Brexit, which had also some significant impacts on the, on the works. And fourth, it's very important, to, to reorganize, to strengthen, to deliver, to, to develop partnerships within the whole industry, in nuclear industry field, in the field nuclear. Because during the last 20-30 years, there were no significant nuclear projects, and so that's why it was so important to re-strengthen this nuclear industry. So taking into consideration these lessons, definitely we have already taken some significant steps. First, we've launched what we've called an excellence program with the whole nuclear industry. So not only within EDF, but with the whole nuclear industry, because we have many suppliers and partners, in order to optimize consistency of the organizations, in order to reduce costs, in order to increase visibility for everybody. Second, we have reorganized our nuclear businesses internally, also in order to be more efficient and to learn from each project. So, for example, we are also mixing teams between HPC and French nuclear teams in order to have French engineers or technicians going to HPC and being able, afterwards, to deliver properly also the future EPR2 program in France. So clearly, this is a key point. It's a key point to our financial situation for the years to come, but it's also a key point for our in between program. And that's why this is really one which is very, very high in our priority list. As a reminder, if you wish to register for a question, please press star and one on your telephone. The next question is from Andrew Moulder of CreditSights. Please go ahead. Yeah, great, thank you. And thank you, Xavier, for doing the call. I mean, can I just say that this live call is so much better than a simultaneous translation of the results earlier on? So thank you for doing that. Most of my questions have actually been asked, but I did have a couple of things I just wanted to clear up. You talked about issuance for this year in the sort of EUR 7 billion-EUR 10 billion range. My understanding was that it was probably gonna be closer to the EUR 10 billion because I think you still have some bank facilities to be repaid after the funding of the 2022 losses. So could you just confirm where you are actually on those bank facilities? Have they all been repaid? My second question, on the, on the call this morning, you talked about or, or your CEO talked about a public policy statement coming out in the autumn, and I just want to know, you know, when we get this public policy statement in France, do you expect that, that will clarify the, the issue of the nuclear funding for, for the new nuclear reactors, in France? And my final question, you were asked earlier about the contribution of Flamanville 3. Again, looking at the, the website there, it looks like you're expecting generation from Flamanville 3, in a normal year of about 13 TWh. And I just wondered, when do you expect the, that you will get the full 13 TWh from Flamanville 3 into your nuclear output? Perhaps my final question, I just really kind of wanted to know why you're not upgrading your nuclear output figures, for sort of particularly for 2026. I mean, you're keeping it the same as 2025. That seems a little bit pessimistic to me. I just wonder, what would it take for you to upgrade those figures? Thank you. Thank you very much. First, as regards our bank term loans, we negotiated EUR 16 billion in 2020, in 2022, or 2023, in 2022, and now we have repaid EUR 7.8 billion out of that. Second, as regards the reference to public policy statement, I mean, it's not reference to public policy statement. It means that, I mean, during the next months, there are key matters that are very important to us and which have some roots in regulation. We can refer to, of course, hydro business organization. We can refer to tax frame, we can refer to financing of new nuclear assets in France, EPR 2. So all these points are absolutely key. So that's why we highlighted this morning that going on these points and getting a decision on these points and right decisions is, of course, key for EDF, but also for the whole industry, implied. Third, as regards Flamanville 3, I mean this. As regards Flamanville 3, yes, I mean, you're quite right. I mean, what we expect is not exactly 13 TWh, but rather 11-12. So I mean, it's exactly in the same range, so no, no, no key question about that. Of course, this will be achieved progressively, as I explained. I mean, I cannot give you a precise date. You have to keep in mind, so that nevertheless that it will take some time. Because first, you have this ramp-up during this post connection, you have a ramp-up period. Then you will have the more or less 18 months during a first cycle, as we call it. And then you have a first complete visit, as we call it also. Which means some maintenance plant maintenance to be done as usual. I mean, this is absolutely usual. And then, of course, afterwards, you have also so a full operation for the reactor. So I will not give you a specific date, but it's important to keep in mind that this will come progressively. Also, to take also in your assessments, this first visit, complete visit, which is expected more or less 18 months after full operations. As regards your fourth question, nuclear target for 2026. I mean, of course, I mean, going on improving our nuclear generation is a key target for us. And you can, you can be sure that we are very much focused on that, with the whole management team, and definitely it's a key target for us. And that's why we are very happy to tell you today that for 2024, we'll be at the very end, high end of the range. As regards the years to come, in particular, you asked me about 2026. It's very important also to keep in mind that the industrial program, the maintenance program, is very heavy for the years to come also. Because you have, of course, the fourth tenth visit for the 900 MW reactors, which are going on, and then we will enter in the fifth tenth visit for these older reactors. And we are also entering in the fourth ten visits for the 1,300 MW reactors. So when you add all these fully planned maintenance programs, which are key in order to extend the life duration of these reactors, of course, this is very demanding. That's why it's important also not to overpromise, of course. Nevertheless, be absolutely convinced that we are very much focusing on that, and that of course, we are looking for improving on a regular basis, step after step after step, step by step, the nuclear generation in France. Great, thank you. Could I just follow up with maybe one more question? Just a very small one. On the call this morning, I think your CFO said that, or sorry, your CEO said that EPR first building is supposed to start in 2027. I'm not sure if I heard that correctly when he said it, but is that true, that you actually expect to start building these new French reactors in 2027? I mean, the question was about what's called the first concrete of Penly. So Penly will be the place where the first EPR2 will be play- it will be built in France. And the question that was raised was, do you, do you confirm your intention to, to build, or to start building the first concrete for Penly in 2027? And the answer that was given was, I mean, there is no reason for for changing anything, but it's not the key point today. The key point today, as we highlighted, and as our CEO stressed, is to of course go on finalizing design, costing, and financing in order to have a very clear frame on the basis of which the final investment decision will be taken and can be taken and will be taken. And then, of course, we will be, of course, very much, we'll be ready to start groundwork. So it's very important to focus first on the current milestones: design, costing, financing, and of course we are all dedicated to that. Right. Thank you. Mr. Girre, this was the last question. Back to you for any closing remarks you may have. I thank you for your presence. I thank you also for your questions. I thank you for your interest for our company. I mean, be sure that we are all dedicated with all the management team of EDF to be able to deliver our strategic program on Ambitions 2035, meaning to deliver the best services to our customers to maximize our decarbonated commendable generation, to optimize the networks, to increase flexibility, and also to boost performance and to transform the company in order to be more and more efficient. We are all committed to that, and very happy to do that in order to give EDF the ability to be a clear leader in the energy transition for the years to come. So I thank you for that, and see you later. So now we can close the call. Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones. Thank you.