Note 13 Financial result
| (in millions of euros) |
2021 |
2020 |
| Income from investments (1) |
Income from investments (1)2021 1,957 |
Income from investments (1)2020 1,782 |
| Income from other securities and receivables related to fixed assets (2) |
Income from other securities and receivables related to fixed assets (2)2021 905 |
Income from other securities and receivables related to fixed assets (2)2020 638 |
| Interest and similar income and expenses |
Interest and similar income and expenses 2021 (1,264) |
Interest and similar income and expenses 2020 (1,408) |
| ● Expenses on long-term financial liabilities after hedging |
● Expenses on long-term financial liabilities after hedging 2021 (1,635) |
● Expenses on long-term financial liabilities after hedging 2020 (1,717) |
| ● Other |
● Other 2021 371 |
● Other 2020 309 |
| Foreign exchange result |
Foreign exchange result 2021 (196) |
Foreign exchange result 2020 (232) |
| Gains and losses on sales of marketable securities |
Gains and losses on sales of marketable securities 2021 (239) |
Gains and losses on sales of marketable securities 2020 (106) |
| Increases/Decreases in provisions and transfers of charges: |
Increases/Decreases in provisions and transfers of charges: 2021 (2,628) |
Increases/Decreases in provisions and transfers of charges: 2020 (3,177) |
| ● Discount expense on employee benefits |
● Discount expense on employee benefits 2021 (292) |
● Discount expense on employee benefits 2020 (395) |
| ● Discount expense on nuclear provisions (3) |
● Discount expense on nuclear provisions (3) 2021 (2,090) |
● Discount expense on nuclear provisions (3) 2020 (3,558) |
| ● Provision on investment securities (4) |
● Provision on investment securities (4) 2021 (104) |
● Provision on investment securities (4) 2020 (49) |
| ● Reversals from provisions, impairment and transfers of charges |
● Reversals from provisions, impairment and transfers of charges 2021 282 |
● Reversals from provisions, impairment and transfers of charges 2020 535 |
| FINANCIAL RESULT |
FINANCIAL RESULT 2021 (1,465) |
FINANCIAL RESULT 2020 (2,503) |
(1) The change in dividends received principally concerns:
- EDF Holding SAS (the holding company which carries EDF Trading) (€603 million in 2021 and €443 million in 2020);
- C3 (the holding company which carries EDF Investissements Groupe) (€183 million in 2021 and €149 million in 2020);
- Enedis (€540 million in 2021 and €508 million in 2020);
- EDEV (€87 million in 2021 and €72 million in 2020);
- EDF Nam Theun Holding (€36 million in 2021 and €22 million in 2020);
- EDF PEI (€88 million in 2021 and €94 million in 2020);
- EDF Immo (€63 million in 2021 and €72 million in 2020);
- Framatome (€37 million in 2021 and €47 million in 2020);
- CTE (€130 million in 2021 and €184 million in 2020).
(2) In 2020, this item included income of €6 million for the cost of bearing the CSPE financial receivable. The CSPE receivable was fully repaid by the State in 2020.
(3) The lower discount expense on nuclear provisions in 2021 is explained by a 10bp decrease in the real discount rate in 2021, compared to a 20bp decrease in 2020, and also by the effect of extending the depreciation period of 1,300MW-series nuclear plants to 50 years (see note 2.1.1).
(4) The change is principally due to less favourable bond market trends in 2021 than 2020 (see note 18.1 (4)).
Note 14 Exceptional result
At 31 December 2021, the exceptional result is a net €1,765 million. The main items were the following:
- net gains of €1,070 million on sales of investment securities included in dedicated assets, undertaken in the course of operational portfolio management;
- income of €501 million corresponding to the settlement indemnity under the agreement signed by AREVA and EDF on 29 June 2021 (see note 2.1.5);
- as explained below, at 31 December 2020 EDF established a provision of €(538) million for tax litigation concerning the tax-deductibility of certain long-term liabilities following the Council of State’s decision of 11 December 2020. On 17 June 2021 the Versailles Administrative Court found against the Company and cancelled the first-instance judgements that had been in its favour. In execution of this decision, EDF paid €85 million in June 2021 for the years 2014 and 2015 and €374 million in July 2021 for the years 2008 to 2010. €459 million of the provision was thus reversed (see note 31 (1)) and the corresponding expense was recognised as a tax expense. After these payments and reassessment of the risk in 2021, the provision amounts to €69 million at 31 December 2021. It concerns the financial years 2012-2013 and the period 2016-2021. The Company has lodged an appeal against the decision of 17 June 2021 before the Council of State.
- increases to provisions for expenses relating to ongoing litigation proceedings;
- net reversals of €30 million from excess tax depreciation.
At 31 December 2020, the exceptional result was €425 million. The main items were the following:
- net gains of €780 million on sales of investment securities included in dedicated assets, undertaken in the course of operational portfolio management;
- net reversals of €175 million from excess tax depreciation;
- recognition of a provision for tax litigation of €(538) million following the Council of State’s decision of 11 December 2020. For the period 2008 to 2017, EDF was notified of proposed tax adjustments, notably concerning the tax- deductibility of certain long-term liabilities. As stated in the 2019 financial statements, this recurrent reassessment, which is applied for each year, represented a cumulative financial risk of some €556 million in income taxes at 31 December 2019. In two rulings made in 2017 and one in 2019, Montreuil Administrative Court recognised the tax-deductibility of these liabilities and validated the position taken by the Company. The Minister appealed against two of these rulings. In January 2020, the Versailles Administrative Appeal Court upheld EDF’s position for the year 2008, but the Minister again appealed. In a decision of 11 December 2020 the Council of State overturned the Versailles court’s decision and sent the case back before the same court.
