EDF / 2020 Universal Registration Document

6 FINANCIAL STATEMENTS

Notes to the consolidated financial statements

Property, plant and equipment and intangible assets Note 10 (excluding French public electricity distribution concession assets)

Details of property, plant and equipment and intangible assets (excluding French electricity distribution concession assets) are as follows:

Assets in progress*

Assets in progress*

31/12/2020

Notes

31/12/2019

(in millions of euros)

10.1 10.2

Goodwill

10,265

n.a.

10,623

n.a.

Other intangible assets

9,583

1,581

9,350

1,415

Property, plant and equipment used in generation and other tangible assets owned by the Group, including right-of-use assets

10.3 10.4

92,600

39,460

89,099

34,755

Right-of-use assets

4,116

n.a.

4,333

n.a.

Property, plant and equipment operated under concessions other than French electricity distribution concessions TOTAL PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS (EXCLUDING FRENCH ELECTRICITY DISTRIBUTION CONCESSION ASSETS)

10.5

6,858

574

6,860

1,155

119,306

41,615

115,932

37,325

* Assets in progress are presented in note 10.6. n.a.: not applicable.

10.1

Goodwill

Accounting principles and methods Determination of goodwill In application of IFRS 3, “Business combinations”(see note 3), goodwill is the difference between: the sum of the following items: ● the acquisition-date fair value of the price paid to acquire control, ❯ the value of non-controlling interests in the entity acquired, and ❯ for acquisitions achieved in stages, the acquisition-date fair value of the ❯ Group’s share in the acquired entity before it acquired control; and the net value of the assets acquired and liabilities assumed, measured at fair ● value at the acquisition date. When this difference is negative it is immediately included in net income.

The fair values of assets and liabilities and the resulting goodwill are finalised within twelve months of the acquisition. Measurement and presentation of goodwill Goodwill on acquisition of subsidiaries is disclosed separately in the balance sheet. Impairment on this goodwill is reported under the heading “Impairment” in the income statement. After initial recognition, goodwill is carried at cost less any impairment recognised. Goodwill on acquisition of associates and joint ventures is included in the investment’s net book value. Impairment on this goodwill is included under the heading “Share in income of associates and joint ventures”. Goodwill is not amortised, but impairment tests are carried out as soon as there is an indication of possible loss of value, and at least annually, as described in note 10.8.

In 2020, goodwill primarily related to Framatome (€1,332 million) and EDF Energy (€7,569 million). The breakdown by operating segment is presented in note 4.1. Changes in goodwill in 2020 and 2019 were as follows:

31/12/2020

31/12/2019

(in millions of euros)

Net book value at opening date

10,623

10,195

Acquisitions

139

66

Disposals

-

-

Impairment (note 10.8) Translation adjustments

(31)

(57) 392

(439)

Other changes

(27)

27

NET BOOK VALUE AT CLOSING DATE

10,265 11,032

10,623 11,418

Gross value at closing date

Accumulated impairment at closing date

(767)

(795)

The changes in goodwill in 2020 primarily related to: the acquisition of Pod Point by EDF Energy for €74 million, a company specialising ● in charging for electric vehicles in the United Kingdom; the first consolidation of Energy2market for €37 million; ● translation adjustments of €(439) million, principally due to the pound sterling’s ● depreciation against the euro.

The changes in goodwill in 2019 primarily related to: the acquisition of Foxguard by Framatome, acquisition of service entities in ● Belgium, and the first consolidation of the Cyclife subsidiaries in the United Kingdom and Sweden; translation adjustments of €392 million, principally due to the pound sterling’s rise ● against the euro.

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EDF - UNIVERSAL REGISTRATION DOCUMENT 2020