Universal Registration Document 2021

5.1.4.2.3 Net investments

Net investments by the France – Generation and supply segment decreased by €146 million, notably due to lower nuclear maintenance expenses and schedule adjustments on the Flamanville 3 project.

Net investments by the France – Generation and supply segment decreased by €146 million, notably due to lower nuclear maintenance expenses and schedule adjustments on the Flamanville 3 project.

Net investments by the France – Regulated activities segment (including Linky), were up by €569 million due to a noticeable rise in the number of connections, and the deferral to 2021 of certain work initially scheduled for 2020, as a result of the Covid-19 pandemic.

In the United Kingdom, net investments rose by €428 million due to the higher investments in the HPC project (+€477 million).

In Italy, net investments increased by €379 million, particularly due to acquisitions in the renewable energies sector, and development projects for new-generation thermal power plants.

The increase in net investments by the Other International segment is principally attributable to Luminus’ acquisition of Essent.

5.1.4.3 Group cash flow

Group cash flow for 2021 amounted to -€1,525 million, a clear improvement from 2020 when it was -€2,660 million.

5.1.4.3.1 Asset disposals

Asset disposals generated €2,847 million in 2021. They include the sale of E&P operations in Norway, the sale of the IDG gas distribution network and 49% of the renewables platform in Italy, the sale of the 49.99% stake in CENG in the United States, the sale of the West Burton B plant and the Pod Point IPO in the United Kingdom, as well as the sale of Dalkia Wastenergie and some real estate assets in France.

5.1.4.3.2 Dedicated assets

In compliance with the French Law no. 2006-739 of 28 June 2006 on the sustainable management of radioactive materials and waste, EDF has built up a portfolio of dedicated assets for secure financing of its long-term nuclear obligations (see section 5.1.5.1.6).

Overall, the changes in dedicated assets comprise :

• allocations to reach full coverage of obligations;
• allocations to reach full coverage of obligations;
• withdrawals of assets corresponding to the costs incurred over the period to meet long-term nuclear obligations falling within the scope of the Law of 28 June 2006;
• exceptional withdrawals proposed to the governance bodies in charge of managing dedicated assets when the value of the portfolio exceeds the amount of the obligations to be financed; such withdrawals must be validated by these bodies

The net change of -€501 million in dedicated assets in 2021 corresponds to the second and third of these categories.

5.1.4.3.3 Dividends paid in cash

The net change of -€501 million in dedicated assets in 2021 corresponds to the second and third of these categories.

• the 2020 dividend (€36 million) and the interim 2021 dividend (€48 million) paid by EDF SA ⁽¹⁾;
• payments made in 2021 to bearers of perpetual subordinated bonds for the “hybrid note” issues (€547 million);
• dividends paid by Group subsidiaries to their minority shareholders (€163 million).

5.1.4.4 Effect of change in exchange rates

The foreign exchange effect (mainly the rise of the pound sterling and the US dollar against the euro ⁽²⁾) had an unfavourable impact of €515 million on the Group’s net indebtedness in 2021.

5.1.4.5 Other non-monetary changes

Other non-monetary changes had an effect of €1,150 million in 2021, compared to -€1,126 million in 2020, and mainly comprise changes in the fair value of debt instruments and new leases (IFRS 16).

(1) The French State has opted for a scrip dividend for 2021 and 2022

(2) The pound sterling rose by 0% against the Euro, from €1.112/£1 at 31 December 2020 to €1.190/£1 at 31 December 2021; the US dollar rose by 8.3% against the Euro, from €0.815/$1 at 31 December 2020 to €0.883/$1 at 31 December 2021.