EDF / 2020 Universal Registration Document

6 FINANCIAL STATEMENTS

Notes to the consolidated financial statements

10.8.1

Impairment by category of asset

Details of impairment recognised and reversed are as follows:

2020

Notes

2019*

(in millions of euros)

10.1 10.2

Impairment of goodwill

(31) (85)

(57) (47)

Impairment of other intangible assets

10.3-10.5

Impairment of tangible assets

(683) (799)

(299) (403)

IMPAIRMENT NET OF REVERSALS

* Restated for the impacts of IFRS 5 due to the change in scope of E&P operations (see note 1.4.2).

Impairment recognised at 31 December 2019 amounted to €(403) million and concerned: thermal assets in the United Kingdom (€127 million); ● various CGUs of Dalkia, particularly in Poland (€105 million); ● various CGUs of EDF Renewables, notably goodwill impairment for a German ● entity (€49 million); hydropower assets (€33 million) and energy service assets (€27 million) owned by ● Edison in Italy; and

other assets (total €62 million), including €24 million of projects stopped in ● France. Impairment of €73 million was also booked at 31 December 2019 in respect of associates (see note 12). Impairment recognised in 2020 amounts to €799 million. Details are given below.

10.8.2

Impairment test on goodwill, intangible assets and property, plant and equipment

The following tables present the results of impairment tests carried out on the main goodwill, intangible assets with indefinite useful lives and other Group assets in 2020, and some of the key assumptions used. For application of IFRS 16 at 1 January 2019, where relevant the Group adapted the impairment test methodology as appropriate to the specific features of each CGU.

IMPAIRMENT OF GOODWILL AND INTANGIBLE ASSETS WITH INDEFINITE USEFUL LIVES

WACC after tax

Growth rate to infinity

Cash-Generating Unit or asset

Impairment 2020 (in millions of euros)

Net book value (in millions of euros)

Operating segment

- (1)

United Kingdom

EDF Energy goodwill

7,569

6.0% 6.5% 6.1% 6.1% 4.3%

- - - - -

Italy

Edison brand

945

2.0% 0.5% 0.5% 1.4%

Framatome goodwill Framatome brand

1,332

Framatome

151 547

Dalkia goodwill

Goodwill of DES Groom an engineering subsidiary in the US (2)

26

6.1% 4.3%

1.5% 1.4%

(26)

Dalkia

Dalkia brand

141

-

Other impairment

(5)

IMPAIRMENT OF GOODWILL AND INTANGIBLE ASSETS WITH INDEFINITE USEFUL LIVES

(31)

The impairment test of EDF Energy goodwill covers the useful life of industrial assets, with no projection to infinity. (1) Impairment booked at 30 June 2020. (2)

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EDF - UNIVERSAL REGISTRATION DOCUMENT 2020