EDF: The curtain goes up

Last Friday the Board of Directors unveiled a new plan which aims to adapt the group to a low power price environment. Most of the announced measures were already well known by investors except 1/ the EUR300m increase in the costs cutting programme, 2/the EUR4bn capital increase o/w the French government is likely to finance EUR3bn and 3/ the delay in the final decision on Hinkley Point. Others indications (assets rotation programme, life-time extension of nuclear sites in the group’s accounts, cut in net capex) were almost already integrated into our model. Our model still gives us a EUR13.5 FV. Buy.