Universal Registration Document 2020

At 31 December 2020, assets held for sale and related liabilities concern the following:

• the sale in progress of Edison’s Norwegian E&P operations (see note 1.4.2);
• the sale in progress of Infrastrutture Distribuzione Gas (IDG), a fully-owned subsidiary of Edison.

The IDG assets held for sale and related liabilities amount to €98 million and€7 million respectively at 31 December 2020.

In September 2020, Edison began discussions with 2i Rete Gas for the sale of its subsidiary IDG, which manages the gas networks and distribution plants for58 towns in the Abruzzo region. These discussions led to signature of an agreement in January 2021. Finalisation of the sale, which is subject to approval under anti trust regulations, is expected to rake place in the first half of 2021 (see the Edison press release of 14 January 2021).

• the sale in progress of the investment in CENG.

The shares held in CENG are included in assets held for sale at the value of €1,811 million at 31 December 2020 (€1,925 million at 31 December 2019).

CENG owns five nuclear reactors across three nuclear power plants located in the states of New York and Maryland, with total capacity of 4,041MW (company-owned capacity). EDF has held a 49.99% share since 2014, alongside Exelon which controlsCENG.

Pursuant to the agreements concluded with Exelon in 2014 ⁽¹⁾, EDF notified Exelon on 20 November 2019 that it had decided to exercise its put option on 49.99% of the shares of CENG.

This put option was exercisable by EDF from 1 January 2016 to 30 June 2022. The sale price for the CENG shares will be based on their fair value, determined under the contractual provisions of the put option agreement.

This sale of the CENG shares is part of the disposal plan concerning non-core assets announced by Group.

Although completion of this operation is conditional on obtaining the required regulatory approvals and will take several months, in view of the terms of the contractual agreements, the Group is engaged in an irrevocable process. Authorisation was received from the FERC (Federal Energy Regulatory Commission)on 30 July 2020.

The sale process is still ongoing at 31 December 2020. Valuations were exchanged in the second half of 2020 but no final price has yet been agreed by the parties. At this stage, the Group’s valuation for the put option does not indicate any significant risk of additional impairment.

The decrease in assets held for sale and related liabilities is explained by:

• the sale of Edison’s E&P operations (excluding the Algerian and Norwegian operations) in December 2020 (see note 1.4.2) which represented assets of€1,129 million and liabilities of €910 million at 31 December 2020;
• reclassification of the Algerian E&P assets and liabilities as continuing operations, which represented assets of €84 million and liabilities of €5 millionat 30 June 2020.

3.2.2 Net income of discontinued operations

The line “Net income of discontinued operations” comprises Edison’s E&P operations (excluding the Algerian and Norwegian operations), and impairment recognised in respect of these assets.

The principal profit and loss indicators for the E&P operations (excluding theAlgerian and Norwegian operations) in 2019 and 2020 are as follows:

3.3 Scope of consolidation at 31 December 2020

The Group’s business sectors are defined as follows:

• “Generation/Supply” (G): generation of nuclear energy, thermal energy, and renewable energies (wind, photovoltaic and hydro) and energy sales to industry, local authorities, small businesses and private customers. This segment also includes trading activities;
• “Distribution” (D): management of the low and medium-voltage public electricity distribution networks;
• “Transmission” (T): operation, maintenance and development of the high-voltage and very-high-voltage electricity transmission networks;
• “Reactors and Services (Framatome)” (R): services and production of equipment and fuel for nuclear reactors;
• “Services and other activities” (O): energy services (district heating, thermal energy services, etc.) for industry and local authorities. This activity also includesEDF Invest’s holding companies and entities that are classified as dedicated assets.

The companies and subgroups included in the EDF group consolidation are listed below.