EDF / 2019 Universal registration document

6. Financial statements

Notes to the consolidated financial statements

At 31 December 2019, property, plant and equipment in progress owned by the Group mainly concerns investments for the EPR reactors at Flamanville 3 (€13,653 million including capitalised borrowing costs of €3,028 million), and Hinkley Point C (€10,942 million including capitalised borrowing costs of €318 million). The capitalised value of the Flamanville 3 EPR project in the financial statements at 31 December 2019 is €10,833 million excluding borrowing costs (€10,645 million in property, plant and equipment in progress and €188 million  (1) in property, plant and equipment in operation). This includes the following, in addition to the construction cost: an inventory of spare parts and capitalised amounts totalling €422 million for ■ related projects (notably the initial comprehensive inspection and North Area development); €611 million of pre-operating expenses and other property, plant and ■ equipment related to the Flamanville project; and the elimination of internal balances on balance sheet items and margins ■ between Framatome and EDF SA in connection with the Flamanville 3 EPR project (€476 million, essentially consisting of advances and progress payments),

giving a construction cost at historical value of €9,800 million in the consolidated financial statements at 31 December 2019, and a construction cost at completion (excluding borrowing costs) of £12.4 billion (in 2015 euros), as announced on 9 October 2019. Property, plant and equipment in progress increased by €4,378 million as the level of investment in 2019 was significantly higher than the amount of assets brought into service during the year (see note 25.2). Investments in property, plant and equipment and intangible assets during 2019 mainly concern: the France – Generation and Supply segment for €5,689 million, primarily ■ investments made under the “ Grand Carénage ” programme, investments for Flamanville 3, and investments in hydropower generation; the United Kingdom segment for €3,381 million, where investments principally ■ related to nuclear power generation; the EDF Renewables segment for €1,721 million, which saw a significant rise in ■ wind and solar capacities under construction in France and North America, and in emerging countries.

(1) €252 million gross, less €64 million of depreciation.

25.2

Movements in property, plant and equipment used in generation and other tangible assets owned by the Group (excluding assets in progress and right-of-use assets)

Other installations, plant, machinery, equipment & other

Fossil-fired & hydropower plants

Land and buildings

Nuclear power plants

Total

(in millions of euros)

Gross value at 31/12/2018

12,968

71,390

19,445

19,354

123,157

Increases Decreases

824 (76)

3,999

394

2,375 (447)

7,592

(1,225)

(127)

(1,875)

Translation adjustments

52 26

563

162

293

1,070

Changes in the scope of consolidation  (1)

-

(1,419)

(178)

(1,571)

Other movements  (2)

3

486

31

(81)

439

GROSS VALUE AT 31/12/2019

13,797 (7,191)

75,213

18,486

21,316 (8,364)

128,812 (75,378)

Depreciation and impairment at 31/12/2018

(47,224)

(12,599)

Net depreciation

(350)

(3,115)

(609) (131)

(1,286)

(5,360)

Impairment net of reversals

(23)

-

(110)

(264) 1,713 (554)

Disposals

59 (7) (8)

1,129 (290)

122

403

Translation adjustments

(151)

(106)

Changes in the scope of consolidation  (1)

-

630 (27)

149 141

771 271

Other movements  (2)

2

155

DEPRECIATION AND IMPAIRMENT AT 31/12/2019

(7,518)

(49,345)

(12,765)

(9,173) 10,990 12,143

(78,801)

Net value at 31/12/2018

5,777 6,279

24,166 25,868

6,846 5,721

47,779 50,011

NET VALUE AT 31/12/2019

Changes in the scope of consolidation essentially relate to reclassification of the E&P operations as assets held for sale. (1) Other movements include the effect on assets associated with provisions and underlying assets of the €336 million change in the real discount rate used to (2) calculate provisions related to EDF’s nuclear generation (see note 32.1).

334

EDF | Universal registration document 2019

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