EDF / 2020 Universal Registration Document

6 FINANCIAL STATEMENTS

Notes to the consolidated financial statements

Allocations to dedicated assets in 2020 totalled €797 million (€540 million in 2019), comprising €299 million in the form of asset contributions and €498 million in cash, in compliance with EDF’s obligation for 2020 under the regulatory framework (see note 15.1.2.1). The first half of 2020 saw an unprecedented situation on the financial markets. The equity markets rose significantly until mid-February, then the spread of the Covid-19 pandemic drew them into their sharpest downturn in more than 30 years. The lowest point was on 20 March but ultimately there was a strong recovery until the end of the half-year, largely stimulated urgent intervention by the central banks. Over this first half-year the portfolio registered negative changes in fair value, but the situation gradually improved and the year 2020 ended with good performances for all assets – particularly thanks to the exceptional budget and monetary measures taken to support the economy. The US Federal Bank once again adopted a zero-rate policy, and the ECB introduced a quantitative easing programme on an unprecedented scale, involving assets of much lower quality than in previous quantitative easing campaigns. Consequently,

contrary to expectations in the early part of the year, government bond yields declined significantly (-0.4% on the Bund 10-year yield to -0.58%, and -0.9% on BTP Italian government bonds to +0.52%). The year ended on a positive note as political uncertainties were lifted with the US Presidential elections, and most importantly a last-minute deal for Brexit. Positive changes in the fair value of the dedicated asset portfolio (investment funds, equities) amounting to €1,218 million were recognised in the financial result in 2020 (see note 8.3), compared to positive changes amounting to €2,545 million in 2019. Positive changes in the fair value of the bonds in the dedicated asset portfolio amounting to €62 million were recognised in OCI in 2020 (see note 18.1.2), compared to positive changes amounting to €162 million in 2019. Withdrawals from dedicated assets in 2020 totalled €431 million, equivalent to payments made in respect of the long-term nuclear obligations to be covered during the year (€442 million in 2019).

Valuation of EDF’s dedicated assets 15.1.2.4 EDF’s dedicated assets are included in the Group’s consolidated financial statements at the following values:

31/12/2020

31/12/2019

Book value 4,677 1,378 1,974 1,309

Realisable value

Book value 4,304 1,417 1,563 1,334

Realisable value

Consolidated balance sheet presentation

(in millions of euros)

Yield assets (EDF Invest)

6,420 2,788 2,252 1,364

6,080 2,926 1,777 1,387

Investments in associates (1) Investments in associates (2)

CTE

Other associates

Debt and equity securities and other net assets (3)

Other unlisted assets

Derivatives

Fair value of derivatives

16

16

(10)

(10)

Growth assets

13,692 13,174

13,692 13,174

13,300 12,978

13,300 12,978

Equities (investment funds)

Debt securities Debt securities

Unlisted equity funds (EDF Invest)

330 188

330 188

276

276

Derivatives

Fair value of derivatives

46

46

Fixed-income assets

13,736 12,371

13,736 12,371

12,240 11,225

12,244 11,225

Bonds

Debt securities Debt securities Debt securities

Unlisted debt funds (EDF Invest)

155

155

142 188 684

142 188 688

Cash portfolio

1,185

1,185

CSPE receivable (4)

Loans and financial receivables

-

-

Derivatives

Fair value of derivatives

25

25

1

1

TOTAL EDF DEDICATED ASSETS 32,105 33,848 29,844 31,624 The Group’s investment of 50.1% of CTE, the company that holds 100% of the shares in RTE. The CTE shares are included at their equity value in the consolidated (1) financial statements (book value in the table). The realisable value of CTE in the above table has been determined by an independent assessor, in the same way as for EDF Invest’s other assets. Including the value of the share in equity of the controlled companies owning these investments. (2) Including debt and equity securities amounting to €1,183 million and the value of the share in equity of other controlled companies. (3) The receivable consisting of accumulated shortfalls in compensation at 31 December 2015, less the portion assigned on 22 December 2016 and reimbursements (4) received since then. This receivable was fully reimbursed at 31 December 2020 in line with the repayment schedule.

377

EDF - UNIVERSAL REGISTRATION DOCUMENT 2020