Universal Registration Document 2020

Sale of 50% of the Scottish offshore wind farm Neart na Gaoithe (NnG) to ESB

On 28 November 2019 the EDF group announced the construction of the Scottish Neart na Gaoithe⁽¹⁾ (NnG) offshore wind farm project and a new partnership with theIrish electricity company ESB, which is taking a 50% stake in the project, acquired inMay 2018 from Mainstream Renewable Power.

The 450MW NnG project is part of EDF’s offshore wind power development strategy and confirms its position in carbon-free energy production in the United Kingdom, a country where EDF already has a strong footprint in both nuclear and renewable power.

This sale operation was completed on 4 December 2019 and accounted for a large share of EDF Renewables’ gains on sales of generation assets in 2019 (a total€560 million, recorded in other operating income and expenses). It also contributed a€1.2 billion reduction in the EDF group’s net indebtedness, due to the debt-reducing effect of loss of control over NnG.

Following this sale, the 50% holding in NnG, stated at fair value, is accounted for by the equity method.

Acquisition in renewable energies – acquisition of the LUXEL Group

On 28 March 2019, EDF Renewables acquired the Luxel Group, an independent photovoltaic energy operator in France which holds a portfolio of 1GWc, mainly comprising projects ready to be constructed or currently being developed, and a few power plants already in operation. This acquisition reinforced EDF Renewables' position in solar power in France, with a view to achieving the objectives in EDF’s Solar Plan.

Acquisition of Pivot Power

On 4 November 2019 the EDF group announced the acquisition of a British start-up called Pivot Power, specialising in battery storage and electric vehicle charging infrastructures. This move, is part of EDF’s electricity storage plan and will enable EDF, already the largest low-carbon electricity producer in the UK, to become a leader in battery storage there.

Pivot Power has an extensive portfolio of battery storage projects across more than 40 locations throughout the UK, with a total capacity of close to 2GW. There are plans to install batteries connected directly to the high-voltage transmission system. The first two storage projects located at Kemsley (Kent) and Cowley (Oxford), are under construction at 31 December 2020 and should be commissioned during 2021.

3.2 Discontinued operations

Accounting principles and methods

Assets that qualify as held for sale and related liabilities are disclosed separately from other assets and liabilities in the balance sheet.

When assets or groups of assets are classified as discontinued operations, income and expenses relating to these discontinued operations are disclosed in a single net amount after taxes in the income statement and net changes in cash and cash equivalents of discontinued operations are also reported separately in the cash flow statement.

Impairment is booked when the realisable value is lower than the net book value.

In accordance with IFRS 5:

for assets or groups of assets that are identified and classified as held for sale during the year, there is no change of presentation or retrospective restatement in prior year balance sheets;
assets or groups of assets that qualify as discontinued operations are restated in the income statement and the cash flow statement for the prior periods presented in the financial statements.

3.2.1 Assets held for sale and related liabilities

(in millions of euros)	31/12/2020	31/12/2019
ASSETS HELD FOR SALE	ASSETS HELD FOR SALE 31/12/2020 2,296	ASSETS HELD FOR SALE 31/12/2019 3,662
LIABILITIES RELATED TO ASSETS HELD FOR SALE	LIABILITIES RELATED TO ASSETS HELD FOR SALE 31/12/2020 108	LIABILITIES RELATED TO ASSETS HELD FOR SALE 31/12/2019 1,043

In application of IFRS 5, assets held for sale and related liabilities are shown below:

(in millions of euros)	31/12/2020	31/12/2019
Non-current non-financial assets⁽¹⁾	Non-current non-financial assets ⁽¹⁾ 31/12/2020 316	Non-current non-financial assets ⁽¹⁾ 31/12/2019 893
Non-current financial assets	Non-current financial assets 31/12/2020 1,811	Non-current financial assets 31/12/2019 1,925
Current non-financial assets⁽²⁾	Current non-financial assets ⁽²⁾ 31/12/2020 151	Current non-financial assets ⁽²⁾ 31/12/2019 784
Current financial assets	Current financial assets 31/12/2020 18	Current financial assets 31/12/2019 60
TOTAL ASSETS HELD FOR SALE	TOTAL ASSETS HELD FOR SALE 31/12/2020 2,296	TOTAL ASSETS HELD FOR SALE 31/12/2019 3,662

(in millions of euros)	31/12/2020	31/12/2019
Non-current non-financial liabilities⁽³⁾	Non-current non-financial liabilities ⁽³⁾31/12/2020 86	Non-current non-financial liabilities ⁽³⁾31/12/2019 711
Non-current financial liabilities	Non-current financial liabilities 31/12/2020 1	Non-current financial liabilities 31/12/2019 34
Current non-financial liabilities	Current non-financial liabilities 31/12/2020 21	Current non-financial liabilities 31/12/2019 298
Current financial liabilities	Current financial liabilities 31/12/2020 -	Current financial liabilities 31/12/2019 -
TOTAL LIABILITIES RELATED TO ASSETS HELD FOR SALE	TOTAL LIABILITIES RELATED TO ASSETS HELD FOR SALE31/12/2020108	TOTAL LIABILITIES RELATED TO ASSETS HELD FOR SALE31/12/20191,043

(1)Non-current non-financial assets comprise tangible assets and property, plant and equipment.

(2)Current non-financial assets comprise components of working capital and deferred taxes.

(3)Non-financial assets comprise provisions.

(1) Gaelic for “strength of the wind”.