Universal Registration Document 2021

• The Group’s other external expenses amounted to €8,595 million, an organic increase of €108 million (+1.3%) compared to 2020:
• in the France – Generation and supply segment, other external expenses registered an organic increase of €193 million (+8.3%). This increase mainly reflects the economic recovery for service activities, which were affected by the Covid-19 pandemic in 2020, and development of engineering projects;
• in the France – Regulated activities segment, other external expenses showed an organic decrease of €102 million (-6.4%) compared to 2020, reflecting a higher level of capitalised production, in line with the level of network connection activity;
• in the United Kingdom, there was an organic decrease of €191 million (- 22.8%) in other external expenses after expenses for permanently shut- down power plants (Dungeness B) were transferred to the Nuclear Liability Fund. Changes to the pension system negotiated in 2021 generated an exceptional contribution, and a reduction in expenses;
• EDF Renewables registered a €105 million (+17.7%) organic increase in other external expenses, principally due to growth in the distributed solar power business in the United States;
• Dalkia’s other external expenses showed an organic increase of €145 million (+8.4%), driven by the recovery of service activities and site work, which had been significantly affected by the Covid-19 pandemic in 2020.

• The Group’s personnel expenses for 2021 totalled €14,494 million, an organic increase of €495 million (+3.5%) from 2020:
• in the France – Generation and supply segment, personnel expenses registered an organic increase of €50 million (+0.8%) that mainly reflects the impact of higher salaries and pension expenses, which were partly offset by a decrease in workforce numbers;
• in the France – Regulated activities segment, there was an organic increase of €47 million (+1.5%) in personnel expenses. Price effects on salaries were partly offset by the decrease in workforce numbers;
• EDF Renewables registered a €55 million (+14.1%) organic increase in personnel expenses, principally explained by a rise in workforce numbers, notably due to growth in the development and construction businesses;

• Dalkia saw an organic increase of €85 million (+7.9%) in personnel expenses, essentially driven by recovery in the service activities which had been affected by the Covid-19 pandemic in 2020, and a workforce increase to support business growth;

• in the United Kingdom, personnel expenses rose by €67 million (+6.2%), largely due to the unfavourable impact of revised discount rates;

• Taxes other than income taxes amounted to €3,330 million in 2021, an organic decrease of €455 million (-12.0%) compared to 2020;
• in the France – Generation and supply segment, the €393 million (- 16.7%) organic decrease is mainly attributable to the lower generation taxes introduced under the national recovery plan;
• in the France – Regulated activities segment, the €138 million (-14.5%) organic decrease is also explained by lower generation taxes.

• Other operating income and expenses generated net income of €4,262 million in 2021, an organic decrease of €1,510 million (-26.1%) compared to 2020.
  • in the France – Generation and supply segment, the €2,104 million organic decrease (-49.8%) in the income generated by other operating income and expenses is primarily attributable to a decrease in CSPE compensation (neutral impact on EBITDA), due to the rise in spot market prices;
  • in the France – Regulated activities segment, the €214 million (+15.2%) organic increase in the income generated by other operating income and expenses mainly resulted from an increase in CSPE for SEI under the mechanism to compensate for additional costs in French islands.

5.1.3.2.2 Change in consolidated EBITDA and analysis by segment

n.a. : not applicable.

5.1.3.2.2.1 France – Generation and supply

The net impact on EBITDA of the 25.3TWh increase in nuclear output, combined with the 2.6TWh decline in hydropower output after the deduction of pumped volumes, is estimated at +€1,081 million.

Energy prices had a negative impact on EBITDA estimated at -€1,140 million, outages and extended outages at the end of the year having required purchases on the market at extremely high prices. In contrast, energy buybacks in 2020 were made at low prices.

The impacts on the downstream market were negative and estimated at - €249 million owing to a loss of customers, while capacity prices invoiced to customers had a favourable impact.

Furthermore, EBITDA benefitted from the reduction in production taxes as part of the recovery plan for an estimated €322 million.

5.1.3.2.2.2 France – Regulated activities

The substantial increase in EBITDA resulted primarily from an increase in distributed volumes, at 15.8TWh for an estimated €251 million, stemming from colder weather and following the impact of the health crisis in 2020. It also resulted from growth in the grid connection services activities, which made a positive contribution to EBITDA for an estimated €159 million.

The trend in prices had a positive effect estimated at €30 million, mainly owing to the positive trend in the TURPE ⁽¹⁾ indexation despite the negative effect of loss purchases against a backdrop of strong price increases on the market.

Furthermore, EBITDA benefitted from a €130 million reduction in production taxes as part of the recovery plan.

(1) Indexed adjustments to the TURPE 5 Distribution tariff: +2.75% and TURPE 5 Transmission: -1.08% at 1 August 2020 and TURPE 6 Distribution: +0.91% and TURPE 5 Transmission: +1.09% at 1 August 2021.