Details of the portfolio at 31 December 2021 are as follows:
| 31/12/2021 | 31/12/2020 | |||
|---|---|---|---|---|
| (in millions of euros) | Net book value | Realisable value | Net book value | Realisable value |
| Investment in CTE (the company that owns RTE) (1) | 2,705 | 3,343 | 2,705 | 2,788 |
| Other investment securities | 24,944 | 29,741 | 24,195 | 27,148 |
| Other financial investments and shareholder loans | 3,839 | 4,330 | 3,136 | 3,421 |
| Dedicated assets – Investments | 31,488 | 37,414 | 30,036 | 33,357 |
| Marketable securities | 50 | 50 | 260 | 262 |
| Dedicated assets – Marketable securities | 50 | 50 | 260 | 262 |
| Total dedicated assets before hedging | 31,538 | 37,464 | 30,296 | 33,619 |
| Hedging instruments and other | 16 | (10) | 48 | 229 |
| TOTAL DEDICATED ASSETS AFTER HEDGING (2) | 31,554 | 37,454 | 30,344 | 33,848 |
(1) EDF’s investment of 50.1% of CTE, the company that holds 100% of the shares in RTE. The realisable value of CTE presented in the above table has been determined by an independent assessor, in the same way as for EDF Invest’s other assets.
(2) Limiting the value of certain investments in compliance with Article 16 of Decree 2007-243 concerning calculation of the regulatory realisable value of dedicated assets has no effect at 31 December 2021 or 2020.
Net book value and fair value include unmatured accrued interest.
At 31 December 2021, by the regulatory calculations provisions are 109.3% covered by dedicated assets. The regulatory caps on the realisable value of certain investments set in the Environment Code were respected at 31 December 2021.
At 31 December 2020, by the regulatory calculations provisions were 103.6% covered by dedicated assets and also respected these regulatory caps on realisable value.
The long-term nuclear obligations concerned by the regulations for dedicated assets related to nuclear generation are included in EDF’s financial statements at the following values:
| (in millions of euros) | 31/12/2021 | 31/12/2020 |
|---|---|---|
| Provisions for spent fuel management – portion unrelated to the operating cycle as defined in the regulations |
Provisions for spent fuel management – portion unrelated to the operating cycle as defined in the regulations 31/12/2021 1,726 |
Provisions for spent fuel management – portion unrelated to the operating cycle as defined in the regulations 31/12/20201,297 |
| Provisions for long-term radioactive waste management |
Provisions for long-term radioactive waste management 31/12/2021 14,233 |
Provisions for long-term radioactive waste management 31/12/202013,300 |
| Provisions for nuclear plant decommissioning |
Provisions for nuclear plant decommissioning 31/12/2021 17,730 |
Provisions for nuclear plant decommissioning 31/12/202017,489 |
| Provisions for last cores – portion for future long-term radioactive waste management |
Provisions for last cores – portion for future long-term radioactive waste management 31/12/2021 587 |
Provisions for last cores – portion for future long-term radioactive waste management 31/12/2020590 |
| PRESENT COST OF LONG-TERM NUCLEAR OBLIGATIONS |
PRESENT COST OF LONG-TERM NUCLEAR OBLIGATIONS 31/12/2021 34,276 |
PRESENT COST OF LONG-TERM NUCLEAR OBLIGATIONS31/12/202032,676 |
As the coverage of provisions by dedicated assets was above 100% at 31 December 2020 (103.6%), EDF had no obligation to add to the dedicated asset portfolio in 2021, and no allocation was made in 2021 (compared to allocations of €797 million in 2020 in compliance with EDF’s regulatory obligation for 2020). The coverage rate of provisions at 31 December 2021 is 109.3%.
2021 was another extremely favourable year on the equity markets. The economic environment remained very dynamic despite concerns triggered by the emergence of several variants of the Covid-19 virus. Vaccination campaigns in the developed countries limited the pandemic’s impact on economic activity and contributed to the equity market performance.
Equity indexes rose significantly over the year, driven by a very good performance on the US market, then the European market, while other zones were less dynamic. More unusually, the biggest rises were registered by mega-caps, which progressed in all zones except the emerging countries.
As the economy recovered, the bond markets suffered due to rising rates. German 10-year rates, for example, rose by +0.4% to -0.2% and American rates rose by +0.6% to 1.5%. However, this rise remained moderate compared to the increase in inflation. The central banks still managed to reassure the markets by stressing that this development was temporary, which meant that monetary support policies would only be withdrawn gradually.
EDF Invest continued to extend its portfolio of unlisted assets in smart meters via an additional investment in Energy Assets Group (C72) in the United Kingdom (the percentage ownership remains unchanged), in the French telecommunications sector via acquisition of a minority shareholding (as part of a consortium) in the fibre optics operator Orange Concessions (C71), in real estate in France and Germany via acquisition of minority shareholdings (92 France, C79, C82, C84) and shares in diversified unlisted investment funds.
At 31 December 2021, dedicated assets registered an overall performance of €1,834 million, comprising €764 million in financial result and €1,070 million in exceptional result. This is principally explained by dividends and interest received (€856 million), increases to provisions on bonds and investment funds due notably to unfavourable market trends (€(85) million), and gains on sales of investment securities (€1,070 million).
