EDF / 2020 Universal Registration Document

6 FINANCIAL STATEMENTS Notes to the financial statements

Balance sheet Gross values of intangible and tangible fixed assets Note 16

Gross value at 31/12/2020

Gross value at 31/12/2019

Increases

Decreases

(in millions of euros)

Software

2,109

309

34

2,384

Other

282

5

2

285

Intangible assets

2,391

314

36

2,669

Land

117

4

2

119

Buildings

11,613 61,160 13,410

450

68

11,995 63,437 13,407

Nuclear power plants (1)

4,027

1,750

Machinery and plant other than networks

314

317

EDF-owned networks

1,071 1,722

54

-

1,125 1,738

Other

151

135

Property, plant and equipment owned by EDF (2)

89,093

5,000

2,272

91,821

Land

48

-

-

48

Buildings

10,248

550 158 156

12 14 22

10,786

Machinery and plant other than networks

1,669 3,019

1,813 3,153

Concession networks

Other

20

-

-

20

Property, plant and equipment operated under concessions (3)

15,004 17,756

864

48

15,820 17,431

Tangible assets (4) Intangible assets (4)

5,056

5,381

926

578

315

1,189 3,020

Advances and progress payments on orders

3,030

-

10

Assets in progress

21,712

5,634

5,706 8,062

21,640

TOTAL INTANGIBLE AND TANGIBLE FIXED ASSETS (5) 131,950 The change in the amount of nuclear power plants in 2020 is mainly explained by derecognition of assets related to Fessenheim following permanent closure of (1) the plant in the first half of 2020. Property, plant and equipment owned by EDF include the €1,224 million impact of 35 back-up diesel facilities commissioned in 2019, and the €645 million impact (2) of a further 20 back-up diesel facilities commissioned in 2020, in line with the timetable approved by the ASN. Property, plant and equipment operated under concessions concern the Island Energy Systems public electricity distribution concessions, and hydropower (3) concessions. The newly-commissioned Romanche-Gavet hydropower plant in the Isère region of south-east France is included in this category at the amount of €408 million (see note 2.3). Investments during the year mainly concern equipment for existing power plants under the Grand Carénage programme. Intangible assets in progress include (4) studies currently being conducted for the EPR 2 project, amounting to €538 million at 31 December 2020 (see note 3.1). The estimated impact of the Covid-19 pandemic on investments for the year is €(113) million. The capitalised value of the Flamanville 3 EPR project in the financial statements at 31 December 2020 is €11,830 million * (€11,570 million in tangible assets in (5) progress and €260 million in assets commissioned). In addition to the construction cost, this amount includes an inventory of spare parts and capitalised amounts totalling €466 million for related projects (notably the initial comprehensive inspection and North Area development), and €691 million of pre-operating expenses and other tangible assets related to the Flamanville project, giving a total construction cost at historical value of €10,672 million. Depreciation and amortisation recognised at 31 December 2020 in respect of assets in operation amounts to €78 million. In its report of July 2020 on EPR technology, the French Court of Auditors (Cour des Comptes) stated that by its calculations, in addition to the construction cost of €12.4 billion (in 2015 euros) announced by EDF, there will be further costs that could reach €6.7 billion (in 2015 euros), including €4.2 billion of interest expenses which are not capitalised under French GAAP. As stated above, other capitalised project costs amount to €1.2 billion at 31 December 2020. The additional costs resulting from the necessary repairs to the main secondary circuit welds at the Flamanville 3 EPR are abnormal costs that cannot be included in the production cost of an asset. They are recorded in expenses at the amount of €409 million in 2020, comprising €383 million of services and other purchases used (see note 8 (3)) and €26 million of personnel expenses (see note 10). 128,200 11,812

* Interest is not capitalised in the parent company financial statements.

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EDF - UNIVERSAL REGISTRATION DOCUMENT 2020