Interest expenses on financing operations increased by €446 million; this is explained in equal proportions by an interest rate effect as rates were rising, and a volume effect due to the Group’s higher net indebtedness.
The effect of winding the discount primarily concerns provisions for the back-end of the nuclear cycle, decommissioning and last cores, and long-term and post-employment employee benefits.
Details of the final discount effect are as follows:
| (in millions of euros) | 2022 | 2021 |
|---|---|---|
| Provisions for long-term and post-employment employee benefits (1) | Provisions for long-term and post-employment employee benefits (1)2022 (663) |
Provisions for long-term and post-employment employee benefits (1)2021 (498) |
| Provisions for the back-end of the nuclear cycle, decommissioning and last cores (2) | Provisions for the back-end of the nuclear cycle, decommissioning and last cores (2)2022 770 |
Provisions for the back-end of the nuclear cycle, decommissioning and last cores (2)2021 (2,109) |
| Other provisions and advances | Other provisions and advances 2022 67 |
Other provisions and advances 2021 (63) |
| DISCOUNT EFFECT | DISCOUNT EFFECT 2022 174 |
DISCOUNT EFFECT 2021 (2,670) |
(1) See note 16.1.3.
(2)I ncluding the effect of discounting the receivable corresponding to amounts reimbursable by the NLF (see note 18.1.3).
The increase in 2022 in the discount effect on provisions for long-term and post-employment employee benefits of 2022 is explained by the higher discount rate applicable at 1 January 2023 (in France: +1.6%, against -0.4% at 1 January 2022).
The positive discount effect on nuclear provisions at 31 December 2022 is explained by a 50 base point increase in the real discount rate in France in 2022, after a 10 base point decrease in 2021. In France, the discount effect was a positive net €813 million, principally comprising the €1,830 million cost of unwinding the discount, and the positive €2,548 million effects of the change in the real discount rate in 2022, which were recorded in the income statement for provisions not backed by assets (see note 15.1).
Other financial income and expenses comprise:
| (in millions of euros) | 2022 | 2021 |
|---|---|---|
| Financial income on cash and cash equivalents | Financial income on cash and cash equivalents 2022 95 |
Financial income on cash and cash equivalents 2021 38 |
| Gains/(losses) on other financial assets (including loans and financial receivables) | Gains/(losses) on other financial assets (including loans and financial receivables) 2022 311 |
Gains/(losses) on other financial assets (including loans and financial receivables) 2021 312 |
| Gains/(losses) on debt and equity securities | Gains/(losses) on debt and equity securities 2022 345 |
Gains/(losses) on debt and equity securities 2021 673 |
| Changes in financial instruments carried at fair value through profit and loss | Changes in financial instruments carried at fair value through profit and loss 2022 (3,272) |
Changes in financial instruments carried at fair value through profit and loss 2021 2,683 |
| Other financial expenses | Other financial expenses 2022 (433) |
Other financial expenses 2021 (217) |
| Foreign exchange gain/loss on financial items other than debts | Foreign exchange gain/loss on financial items other than debts 2022 75 |
Foreign exchange gain/loss on financial items other than debts 2021 120 |
| Return on fund assets | Return on fund assets 2022 419 |
Return on fund assets 2021 319 |
| Capitalised borrowing costs | Capitalised borrowing costs 2022 463 |
Capitalised borrowing costs 2021 561 |
| OTHER FINANCIAL INCOME AND EXPENSES | OTHER FINANCIAL INCOME AND EXPENSES 2022 (1,997) |
OTHER FINANCIAL INCOME AND EXPENSES 2021 4,489 |
“Gains/(losses) on debt and equity securities” in 2022 principally include:
In 2022, other financial income and expenses include changes in fair value on financial instruments, amounting to €(3,272) million in a context of falling markets, including €(3,096) million on dedicated assets.
In 2021, other financial income and expenses include changes in fair value on financial instruments, amounting to €2,683 million in a context of bullish markets, including €2,739 million on dedicated assets.
