Universal Registration Document 2021

5.1.4.1 Net indebtedness

Net indebtedness comprises total loans and financial liabilities, less cash and cash equivalents and liquid assets. Liquid assets are financial assets consisting of funds or securities with initial maturity of over three months that are readily convertible into cash and are managed according to a liquidity-oriented policy.

The Group’s net indebtedness was €42,988 million at 31 December 2021. It stood at €42,290 million at 31 December 2020.

(in millions of euros)	31/12/2021	31/12/2020	Variation	Variation (%)
Loans and other financial liabilities	Loans and other financial liabilities 31/12/2021 69,406	Loans and other financial liabilities 31/12/2020 65,591	Loans and other financial liabilities Variation 3,815	Loans and other financial liabilities Variation (%) 5.8
Derivatives used to hedge liabilities	Derivatives used to hedge liabilities 31/12/2021 (3,762)	Derivatives used to hedge liabilities 31/12/2020 (1,986)	Derivatives used to hedge liabilities Variation (1,776)	Derivatives used to hedge liabilities Variation (%) (89.4)
Cash and cash equivalents	Cash and cash equivalents 31/12/2021 9,919	Cash and cash equivalents 31/12/2020 6,270	Cash and cash equivalents Variation 3,649	Cash and cash equivalents Variation (%) 58.2
Debt and equity securities – liquid assets	Debt and equity securities – liquid assets 31/12/2021 (12,737)	Debt and equity securities – liquid assets 31/12/2020 (15,028)	Debt and equity securities – liquid assets Variation 2,292	Debt and equity securities – liquid assets Variation (%) 15.2
Net indebtedness of assets held for sale	Net indebtedness of assets held for sale 31/12/2021 -	Net indebtedness of assets held for sale 31/12/2020 (17)	Net indebtedness of assets held for sale Variation 17	Net indebtedness of assets held for sale Variation (%) n.a
(in millions of euros)NET INDEBTEDNESS*	31/12/2021 42,988	31/12/202042,290	Variation698	Variation (%)1.6

* Net indebtedness is not defined in the accounting standards and is not directly visible in the Group’s consolidated balance

Net debt was limited to €43.0 billion on a strong performance in terms of cash EBITDA (€17.1 billion), completed disposals (€2.8 billion) and a social hybrid bond issue (€1.2 billion).

Change in net indebtness between 31 December 2020 and 31 December 2021

December 2020 : (42. 3)

Group cash flow (-€1.5 billion)
EBITDA Cash : +17.1
△ WC : -1.5
Net investments ⁽¹⁾ : -15.7
Net financial expenses disbursed & dedicated assets : -1.1
Income tax paid : -2.3
Disposals : +2.8
Dividends ⁽²⁾ : -0.8

Hybrids ⁽³⁾: +0.9
Other : -0.1

December 2021 : (43.0)

NB: figures rounded up to the nearest whole number
(1) Net investments excluding Group disposals
(2) Dividends paid including hybrid bond remuneration
(3) Hybrid issue of €1.2bn and announced repayment of -€0.3bn.

5.1.4.2 Operating cash flow

The operating cash flow was -€213 million for 2021, compared to €661 million for 2020, a decrease of €874 million.

5.1.4.2.1 Cash EBITDA

EBITDA after adjustment for non-cash items amounted to €17,136 million, up by €634 million from 2020, principally due to the post-Covid business recovery, and :

the increase in Enedis’ gross margin delivery and non-delivery services;
business growth in Italy (thermal power generation, sales, gas optimisation, renewable energies and services).

5.1.4.2.2 Change in working capital

Working capital deteriorated by -€1,526 million in 2021. This change is mainly
explained by higher market prices in 2021, leading to an increase in margin calls in
the optimisation/trading activities (-€1,931 million) and in the Group’s operating
working capital, principally driven by price movements at the end of the year (-€1,805 million on the net amount of trading receivables/payables). Conversely, the
lower net expense for purchase obligations led to surplus CSPE compensation,
which reduced EDF’s receivable on the State (+€2,350 million impact on working
capital).