EDF / 2020 Universal Registration Document

6 FINANCIAL STATEMENTS Notes to the financial statements

38.2.5

Changes in dedicated assets in 2020

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. 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). At 31 December 2020, dedicated assets registered an overall performance of €1,364 million, comprising €584 million in financial result and €780 million in exceptional result. This is principally explained by dividends and interest received (€727 million), increases to provisions on bonds and investment funds due to unfavourable market trends (€(168) million), and gains on sales of investment securities (€780 million).

In April 2020, EDF Invest acquired a minority interest in Energy Assets Group (EAG) in the United Kingdom (smart meters), and minority interests in real estate assets (offices in France and healthcare properties in Europe). In December 2020 EDF SA acquired investments in wind and solar power plants in the United States, Canada and Portugal from EDF Renewables. All these investments were allocated to dedicated assets in 2020, in addition to the €113 million allocation during the first half-year corresponding to the balance of the investment in the MiRose and Red Pine wind farms acquired from EDF Renewables in 2019. 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 38.1). 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 by urgent intervention by the central banks.

Related parties Note 39

39.1

Relations with subsidiaries

EDF’s receivables (1)

EDF’s liabilities (1)

Net liabilities included in current account

Financial income (excluding dividends)

Operating receivables

Operating liabilities

Financial expenses

Loans

(in millions of euros)

Companies ATMEA

137

CTE (formerly C25)

126 144

132 451 137

Framatome EDF Energy

63

2

EDF Renouvelables

2,083

18

EDF Energy UK Ltd. EUR EDF International

10,877

199

EDF Trading

1,230

1,369

5 2 6

Edison Nouveau

Enedis

931

97

1,810

Dalkia France

1,331

137

35 15

Groupe PEI

643

Citelum

59 80

3 1

EDF Luminus

Edvance

58

56

C77

155

Current accounts (2)

1,450

Investment agreement for liquidities of subsidiaries Group cash management agreement with subsidiaries (3)

1,985

(7)

11,436

Tax consolidation agreement

1,216

Receivables and payables of more than €50 million. (1) Including €548 million concerning Sofilo and €418 million concerning PEI. (2) Including €5,225 million concerning C3, €1,577 million concerning EDF Trading and €1,058 million concerning EDF Energy. (3)

481

EDF - UNIVERSAL REGISTRATION DOCUMENT 2020