| (in millions of euros) | 2022 | 2021 | Variation | Variation (%) |
|---|---|---|---|---|
| Cost of gross financial indebtedness | Cost of gross financial indebtedness 2022(1,730) |
Cost of gross financial indebtedness 2021(1,459) |
Cost of gross financial indebtedness Variation(271) |
Cost of gross financial indebtedness Variation (%)18.6 |
| Discount effect | Discount effect 2022174 |
Discount effect 2021(2,670) |
Discount effect Variation2,844 |
Discount effect Variation (%)n.a |
| Other financial income and expenses | Other financial income and expenses 2022(1,997) |
Other financial income and expenses 20214,489 |
Other financial income and expenses Variation(6,486) |
Other financial income and expenses Variation (%)n.a |
| FINANCIAL RESULT | FINANCIAL RESULT2022(3,553) | FINANCIAL RESULT2021360 | FINANCIAL RESULTVariation(3,913) | FINANCIAL RESULTVariation (%)N.A |
n.a: not applicable.
The financial result for 2022 was an expense of €3,553 million, a decrease of €3,913 million from 2021 with several contributing factors:
The income tax receivable amounts to €3,926 million at 31 December 2022, corresponding to an effective tax rate of 17.13% (compared to an expense of - €1,400 million at 31 December 2021, corresponding to an effective tax rate of 25.09%).
The €5,326 million change between the tax expense for 2021 and tax receivable in 2022 essentially reflects the €28,501 million decrease in the Group’s pre-tax income, generating additional tax income of €7,359 million.
The tax receivable also reflects the unfavourable effect in 2022 of certain rulings given in tax litigations, the windfall taxes introduced for electricity-producing companies, impairment booked during the year, and the absence of any favourable effect equivalent to the impact of asset revaluations for tax purposes in Italy in 2021.
It also includes the unfavourable effect of non-recognition of deferred tax assets in France, which is partly offset by the favourable effect of deferred tax assets recognised in the United States.
In contrast to 2021, the Group was not subject to any rise in the normative tax rate in the countries where it does business.
After elimination of non-recurring items (principally impairment, variations in unrealised gains and losses on the financial asset portfolio and commodities, and tax litigation), the effective tax rate is 18.0% at 31 December 2022, compared to 21.3% at 31 December 2021.
The Group’s net income excluding non-recurring items (1) stood at -€12,662 million in 2022, down by €17,379 million compared to 2021. This change principally reflects the decline in EBITDA, which was partly limited by the higher financial result (excluding non-recurring items) and an income tax receivable (see note 19.1 to the 2022 consolidated financial statements, “Net income excluding non-recurring items”).
EDF net income for 2022 totalled -€17,940 million, down by €23,053 million. In addition to the significant decrease in the net income excluding non-recurring items, this change includes the following principal items after tax:
(1) EDF net income excluding non-recurring items, net changes in the fair value of energy and commodity derivatives (excluding trading activities), and net changes in the fair value of debt and equity instruments, net of tax.
