EDF / 2019 Universal registration document

6. Financial statements

Notes to the consolidated financial statements

In 2019, gross changes in fair value recorded in OCI with recycling principally concern EDF (€293 million, including €161 million for dedicated assets). In 2018, gross changes in fair value recorded in OCI with recycling principally concern EDF (€(115) million, including €(60) million for dedicated assets). No significant impairment was recorded in 2019. Dedicated assets 39.2.1 Liquid assets 39.2.2

Diversified bond investments and equities included in EDF’s dedicated assets are recorded as “debt and equity securities”. The general management policy for dedicated assets is presented in note 48.

Liquid assets are financial assets consisting of funds or interest rate instruments with initial maturity of over three months that are readily convertible into cash, and are managed according to a liquidity-oriented policy. EDF’s monetary UCITS, included in liquid assets, amount to €409 million at 31 December 2019 (€2,863 million at 31 December 2018).

39.3

Loans and financial receivables

Loans and financial receivables consist of the following:

31/12/2019

31/12/2018

(in millions of euros)

Loans and financial receivables – amounts receivable from the NLF

13,303

9,220 2,060 2,669

Loans and financial receivables – CSPE* Loans and financial receivables – other LOANS AND FINANCIAL RECEIVABLES

684

2,904

16,891

13,949

Including €684 million allocated to dedicated assets at 31 December 2019 (€2,060 million at 31 December 2018). *

At 31 December 2019 loans and financial receivables mainly include: amounts representing reimbursements receivable from the NLF and the British ■ government for coverage of long-term nuclear obligations, totalling €13,303 million at 31 December 2019 (€9,220 million at 31 December 2018), discounted at the same rate as the provisions they finance. The increase in the NLF receivable in 2019 is a corollary of the increase in provisions following changes to the cost estimates as explained in note 32.2; the receivable corresponding to the balance of the shortfall in the Contribution to ■ the Public Electricity Service (CSPE) at 31 December 2017 and the costs of bearing that shortfall. Reimbursements of principal and interest during 2019 amounted to €1,399 million, in line with the schedule published in the ministerial orders of 13 May 2016 and 2 December 2016, made in application of

Article R. 121-31 of the French Energy Code. This CSPE receivable is allocated in its entirety to dedicated assets; other loans and financial receivables notably include: ■ the overfunding of EDF Energy’s EEGSG and BEGG pension schemes by ■ €1,246 million, compared to €937 million at 31 December 2018; an amount of €230 million representing the advance payments made by ■ Luminus to Synatom to cover long-term nuclear obligations (€203 million at 31 December 2018). In Luminus’ financial statements these amounts are discounted at the same rate as the provisions they fund. This receivable is equal to the fair value of the amounts held by Synatom on behalf of Luminus as fund assets.

39.4

Change in financial assets other than derivatives

The variation in financial assets is as follows:

39.4.1

At 31 December 2019

Net increases

Changes in fair value

Discount effect

Changes in scope

Translation adjustments

31/12/2019

31/12/2018

Other

(in millions of euros)

Instruments at fair value through OCI with recycling Instruments at fair value through OCI with no recycling Instruments at fair value through profit and loss

22,938

445

468

-

-

50

18

23,919

413

39

(48)

-

10

1

37

452

20,160

(1,079)

2,792

-

(30)

-

(57)

21,786

Loans and financial receivables

13,949

(1,754)

-

378

194

657

3,467

16,891

The net decrease in loans and financial receivables includes the €(1,376) million change in the CSPE receivable. Other changes in loans and financial receivables principally correspond to the changes in the financial asset that corresponds to the receivable representing amounts reimbursable by the Nuclear Liabilities Fund (NLF) and the British

government (€13,303 million at 31 December 2019 compared to €9,220 million at 31 December 2018), and the surplus funding of EDF Energy’s EEGSG and BEGG pension schemes (€1,246 million at 31 December 2019, compared to €937 million

at 31 December 2018).

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EDF | Universal registration document 2019