EDF / 2020 Universal Registration Document

6 FINANCIAL STATEMENTS

Notes to the consolidated financial statements

Sale of 50% of the Scottish offshore wind farm Neart na Gaoithe (NnG) to ESB

EDF, already the largest low-carbon electricity producer in the UK, to become a leader in battery storage there. Pivot Power has an extensive portfolio of battery storage projects across more than 40 locations throughout the UK, with a total capacity of close to 2GW. There are plans to install batteries connected directly to the high-voltage transmission system. The first two storage projects located at Kemsley (Kent) and Cowley (Oxford), are under construction at 31 December 2020 and should be commissioned during 2021.

On 28 November 2019 the EDF group announced the construction of the Scottish Neart na Gaoithe (1) (NnG) offshore wind farm project and a new partnership with the Irish electricity company ESB, which is taking a 50% stake in the project, acquired in May 2018 from Mainstream Renewable Power. The 450MW NnG project is part of EDF’s offshore wind power development strategy and confirms its position in carbon-free energy production in the United Kingdom, a country where EDF already has a strong footprint in both nuclear and renewable power. This sale operation was completed on 4 December 2019 and accounted for a large share of EDF Renewables’ gains on sales of generation assets in 2019 (a total €560 million, recorded in other operating income and expenses). It also contributed a €1.2 billion reduction in the EDF group’s net indebtedness, due to the debt-reducing effect of loss of control over NnG. Following this sale, the 50% holding in NnG, stated at fair value, is accounted for by the equity method. Acquisition in renewable energies – acquisition of the LUXEL Group On 28 March 2019, EDF Renewables acquired the Luxel Group, an independent photovoltaic energy operator in France which holds a portfolio of 1GWc, mainly comprising projects ready to be constructed or currently being developed, and a few power plants already in operation. This acquisition reinforced EDF Renewables’ position in solar power in France, with a view to achieving the objectives in EDF’s Solar Plan. Acquisition of Pivot Power On 4 November 2019 the EDF group announced the acquisition of a British start-up called Pivot Power, specialising in battery storage and electric vehicle charging infrastructures. This move, is part of EDF’s electricity storage plan and will enable

3.2

Discontinued operations

Accounting principles and methods Assets that qualify as held for sale and related liabilities are disclosed separately from other assets and liabilities in the balance sheet. When assets or groups of assets are classified as discontinued operations, income and expenses relating to these discontinued operations are disclosed in a single net amount after taxes in the income statement and net changes in cash and cash equivalents of discontinued operations are also reported separately in the cash flow statement. Impairment is booked when the realisable value is lower than the net book value. In accordance with IFRS 5: for assets or groups of assets that are identified and classified as held for ● sale during the year, there is no change of presentation or retrospective restatement in prior year balance sheets; assets or groups of assets that qualify as discontinued operations are ● restated in the income statement and the cash flow statement for the prior periods presented in the financial statements.

3.2.1

Assets held for sale and related liabilities

31/12/2020

31/12/2019

(in millions of euros)

ASSETS HELD FOR SALE

2,296

3,662 1,043

LIABILITIES RELATED TO ASSETS HELD FOR SALE

108

In application of IFRS 5, assets held for sale and related liabilities are shown below:

31/12/2020

31/12/2019

(in millions of euros)

Non-current non-financial assets (1) Non-current financial assets Current non-financial assets (2)

316

893

1,811

1,925

151

784

Current financial assets

18

60

TOTAL ASSETS HELD FOR SALE

2,296

3,662

31/12/2020

31/12/2019

(in millions of euros)

Non-current non-financial liabilities (3)

86

711

Non-current financial liabilities Current non-financial liabilities Current financial liabilities

1

34

21

298

-

-

TOTAL LIABILITIES RELATED TO ASSETS HELD FOR SALE

108

1,043

Non-current non-financial assets comprise tangible assets and property, plant and equipment. (1) Current non-financial assets comprise components of working capital and deferred taxes. (2) Non-financial assets comprise provisions. (3)

(1) Gaelic for “strength of the wind”.

314

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EDF - UNIVERSAL REGISTRATION DOCUMENT 2020