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).
EDF’s dedicated assets are included in the Group’s consolidated financial statements at the following values:
| 31/12/2020 | 31/12/2019 | ||||
|---|---|---|---|---|---|
(in millions of euros) | Consolidated balance sheet presentation | Book value | Realisable value | Book value | Realisable value |
Yield assets (EDF Invest) | Yield assets (EDF Invest)
| Yield assets (EDF Invest) 31/12/20204,677 | Yield assets (EDF Invest) 31/12/2019 6,420 | 4,304 | 6,080 |
| CTE | CTE
Investments in associates(1) | CTE 31/12/20201,378 | CTE 31/12/2019 2,788 | 1,417 | 2,926 |
| Other associates | Other associates
Investments in associates(2) | Other associates 31/12/20201,974 | Other associates 31/12/2019 2,252 | 1,563 | 1,777 |
| Other unlisted assets | Other unlisted assets
Debt and equity securities and other net assets(3) | Other unlisted assets 31/12/20201,309 | Other unlisted assets 31/12/2019 1,364 | 1,334 | 1,387 |
| Derivatives | Derivatives
Fair value of derivatives | Derivatives 31/12/202016 | Derivatives 31/12/2019 16 | (10) | (10) |
Growth assets | Growth assets
| Growth assets 31/12/202013,692 | Growth assets 31/12/2019 13,692 | 13,300 | 13,300 |
| Equities (investment funds) | Equities (investment funds)
Debt securities | Equities (investment funds) 31/12/202013,174 | Equities (investment funds) 31/12/2019 13,174 | 12,978 | 12,978 |
| Unlisted equity funds (EDF Invest) | Unlisted equity funds (EDF Invest)
Debt securities | Unlisted equity funds (EDF Invest) 31/12/2020330 | Unlisted equity funds (EDF Invest) 31/12/2019 330 | 276 | 276 |
| Derivatives | Derivatives
Fair value of derivatives | Derivatives 31/12/2020188 | Derivatives 31/12/2019 188 | 46 | 46 |
Fixed-income assets | Fixed-income assets
| Fixed-income assets 31/12/202013,736 | Fixed-income assets 31/12/2019 13,736 | 12,240 | 12,244 |
| Bonds | Bonds
Debt securities | Bonds 31/12/202012,371 | Bonds 31/12/2019 12,371 | 11,225 | 11,225 |
| Unlisted debt funds (EDF Invest) | Unlisted debt funds (EDF Invest)
Debt securities | Unlisted debt funds (EDF Invest) 31/12/2020155 | Unlisted debt funds (EDF Invest) 31/12/2019 155 | 142 | 142 |
| Cash portfolio | Cash portfolio
Debt securities | Cash portfolio 31/12/20201,185 | Cash portfolio 31/12/2019 1,185 | 188 | 188 |
| CSPE receivable(4) | CSPE receivable (4)
Loans and financial receivables | CSPE receivable (4)31/12/2020- | CSPE receivable (4)31/12/2019 - | 684 | 688 |
| Derivatives | Derivatives
Fair value of derivatives | Derivatives 31/12/202025 | Derivatives 31/12/2019 25 | 1 | 1 |
| TOTAL EDF DEDICATED ASSETS | TOTAL EDF DEDICATED ASSETS
| TOTAL EDF DEDICATED ASSETS31/12/2020 32,105 | TOTAL EDF DEDICATED ASSETS 31/12/2019 33,848 | 29,844 | 31,624 |
(1) 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 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.
(2) Including the value of the share in equity of the controlled companies owning these investments.
(3) Including debt and equity securities amounting to €1,183 million and the value of the share in equity of other controlled companies.
(4) The receivable consisting of accumulated shortfalls in compensation at 31 December 2015, less the portion assigned on 22 December 2016 and reimbursements received since then. This receivable was fully reimbursed at 31 December 2020 in line with the repayment schedule.
