(in millions of euros) | Cumulative | Augmentations | Diminutions | Cumulative amount at 31/12/2020 |
|---|---|---|---|---|
Software | Software Cumulative 1,175 | Software Augmentations 283 | Software Diminutions 32 | Software Cumulative amount at 31/12/2020 1,426 |
Other | Other Cumulative 130 | Other Augmentations 12 | Other Diminutions 2 | Other Cumulative amount at 31/12/2020 140 |
Intangible assets | Intangible assets Cumulative 1,305 | Intangible assets Augmentations 295 | Intangible assets Diminutions 34 | Intangible assets Cumulative amount at 31/12/2020 1,566 |
Land and buildings | Land and buildings Cumulative 7,576 | Land and buildings Augmentations 344 | Land and buildings Diminutions 62 | Land and buildings Cumulative amount at 31/12/2020 7,858 |
Nuclear power plants* | Nuclear power plants* Cumulative 41,534 | Nuclear power plants* Augmentations 2,895 | Nuclear power plants* Diminutions 2,271 | Nuclear power plants* Cumulative amount at 31/12/2020 42,158 |
Machinery and plant other than networks | Machinery and plant other than networks Cumulative 8,997 | Machinery and plant other than networks Augmentations 638 | Machinery and plant other than networks Diminutions 327 | Machinery and plant other than networks Cumulative amount at 31/12/2020 9,308 |
EDF-owned networks | EDF-owned networks Cumulative 532 | EDF-owned networks Augmentations 31 | EDF-owned networks Diminutions - | EDF-owned networks Cumulative amount at 31/12/2020 563 |
Other | Other Cumulative 1,133 | Other Augmentations 143 | Other Diminutions 124 | Other Cumulative amount at 31/12/2020 1,152 |
Property, plant and equipment owned by EDF | Property, plant and equipment owned by EDF Cumulative 59,772 | Property, plant and equipment owned by EDF Augmentations 4,051 | Property, plant and equipment owned by EDF Diminutions 2,784 | Property, plant and equipment owned by EDF Cumulative amount at 31/12/2020 61,039 |
Land and buildings | Land and buildings Cumulative 6,618 | Land and buildings Augmentations 146 | Land and buildings Diminutions 10 | Land and buildings Cumulative amount at 31/12/2020 6,754 |
Machinery and plant other than networks | Machinery and plant other than networks Cumulative 1,084 | Machinery and plant other than networks Augmentations 33 | Machinery and plant other than networks Diminutions 13 | Machinery and plant other than networks Cumulative amount at 31/12/2020 1,104 |
Concession networks | Concession networks Cumulative 1,264 | Concession networks Augmentations 85 | Concession networks Diminutions 21 | Concession networks Cumulative amount at 31/12/2020 1,328 |
Other | Other Cumulative 10 | Other Augmentations 1 | Other Diminutions - | Other Cumulative amount at 31/12/2020 11 |
Property, plant and equipment operated under concessions | Property, plant and equipment operated under concessions Cumulative 8,976 | Property, plant and equipment operated under concessions Augmentations 265 | Property, plant and equipment operated under concessions Diminutions 44 | Property, plant and equipment operated under concessions Cumulative amount at 31/12/2020 9,197 |
Tangible assets in progress | Tangible assets in progress Cumulative 94 | Tangible assets in progress Augmentations 25 | Tangible assets in progress Diminutions 35 | Tangible assets in progress Cumulative amount at 31/12/2020 84 |
TOTAL DEPRECIATION, AMORTISATION AND IMPAIRMENT | TOTAL DEPRECIATION, AMORTISATION AND IMPAIRMENT Cumulative 70,147 | TOTAL DEPRECIATION, AMORTISATION AND IMPAIRMENT Augmentations 4,636 | TOTAL DEPRECIATION, AMORTISATION AND IMPAIRMENT Diminutions 2,897 | TOTAL DEPRECIATION, AMORTISATION AND IMPAIRMENT Cumulative amount at 31/12/2020 71,886 |
* The change in depreciation of nuclear power plants in 2020 is mainly explained by derecognition of assets related to Fessenheim following the plant’s permanent closure in the first half of 2020, and the effect of the change in real discount rate at 31 December 2020 on impairment of assets associated with the provisions on those plants.
Due to the integrated management and interdependence of the different generation facilities that make up EDF’s fleet (nuclear, thermal and hydropower plants), independently of their maximum technical capacities, EDF considers the entire fleet as a single CGU.
Even when there is no indication of any loss of value, an impairment test is performed due to the highly significant value of this CGU in the financial statements and its substantial exposure to market prices since the “yellow” and “green” regulated tariffs were discontinued on 1 January 2016.
The recoverable value of the generation fleet is estimated by discounting future cashflows under the Company’s usual methodology, described in note 1.6, over the assets’ useful life, using an after-tax WACC of 5.2% at 31 December 2020. For nuclear assets currently in operation, EDF’s benchmark model assumes that the useful life is 50 years, in line with its industrial strategy. It also incorporates the proposals for early shutdown of two 900MW nuclear reactors, as set out in France’s multi-year energy plan.
The impairment test takes into consideration the latest forecasts concerning Flamanville 3 (see note 2.2.1), which adjusted the project schedule, setting the fuel loading date in late 2022, and revised the estimated construction cost to €12.4 billion (in 2015 euros), an increase of €1.5 billion from the previous estimate, mainly caused by exceptional additional costs for repairing penetration welds. The test assumes that these additional costs will be mainly included in operating expenses.
The year-end impairment test, like the test at 30 June 2020, indicates that the recoverable value is lower than at 31 December 2019, but the headroom over the book value remains significant. As well as the unfavourable macro-economic environment (long-term and medium-term price scenarios, WACC), calculation of the recoverable value notably includes revised assumptions for electricity output and the higher cost of the Grand Carénage programme (particularly as a result of the Covid-19 pandemic), in line with announcements made by EDF, and conversely the favourable effects of the national recovery plan on generation taxes.
The key assumptions in the test still concern the useful life of nuclear assets, the long-term price scenario, the discount rate, changes in costs and investments, and the capacity revenue. Each of these assumptions was subjected to sensitivity analyses and the results did not call into question the existence of a positive difference between the book value and recoverable value.
