Universal Registration Document 2022

The net values of property, plant and equipment used in generation and other tangible assets owned by the Group are as follows:

(in millions of euros)	31/12/2021	Increases	Decreases	Translation adjustments	Changes in the scope of consolidation ⁽¹⁾	Other movements ⁽²⁾	31/12/2022
Land and buildings	Land and buildings 31/12/2021 14,217	Land and buildings Increases 397	Land and buildings Decreases (97)	Land and buildings Translation adjustments (38)	Land and buildings Changes in the scope of consolidation ⁽¹⁾ -	Land and buildings Other movements ⁽²⁾ (25)	Land and buildings 31/12/2022 14,454
Nuclear power plants	Nuclear power plants 31/12/2021 79,536	Nuclear power plants Increases 3,309	Nuclear power plants Decreases (2,805)	Nuclear power plants Translation adjustments (546)	Nuclear power plants Changes in the scope of consolidation ⁽¹⁾ -	Nuclear power plants Other movements ⁽²⁾ 65	Nuclear power plants 31/12/2022 79,559
Fossil-fired & hydropower plants	Fossil-fired & hydropower plants 31/12/2021 17,365	Fossil-fired & hydropower plants Increases 542	Fossil-fired & hydropower plants Decreases (133)	Fossil-fired & hydropower plants Translation adjustments (102)	Fossil-fired & hydropower plants Changes in the scope of consolidation ⁽¹⁾ 28	Fossil-fired & hydropower plants Other movements ⁽²⁾ 5	Fossil-fired & hydropower plants 31/12/2022 17,705
Other installations, plant, machinery, equipment & other	Other installations, plant, machinery, equipment & other 31/12/2021 22,637	Other installations, plant, machinery, equipment & other Increases 2,798	Other installations, plant, machinery, equipment & other Decreases (422)	Other installations, plant, machinery, equipment & other Translation adjustments 58	Other installations, plant, machinery, equipment & other Changes in the scope of consolidation ⁽¹⁾ (562)	Other installations, plant, machinery, equipment & other Other movements ⁽²⁾ 36	Other installations, plant, machinery, equipment & other 31/12/2022 24,545
Right-of-use assets ⁽³⁾	Right-of-use assets ⁽³⁾31/12/2021 6,204	Right-of-use assets ⁽³⁾Increases 353	Right-of-use assets ⁽³⁾Decreases -	Right-of-use assets ⁽³⁾Translation adjustments (13)	Right-of-use assets ⁽³⁾Changes in the scope of consolidation ⁽¹⁾ (32)	Right-of-use assets ⁽³⁾Other movements ⁽²⁾ 98	Right-of-use assets ⁽³⁾ 31/12/2022 6,610
Assets in progress ⁽⁴⁾	Assets in progress ⁽⁴⁾31/12/2021 45,368	Assets in progress ⁽⁴⁾Increases 5,761	Assets in progress ⁽⁴⁾Decreases (40)	Assets in progress ⁽⁴⁾Translation adjustments (1,141)	Assets in progress ⁽⁴⁾Changes in the scope of consolidation ⁽¹⁾ (13)	Assets in progress ⁽⁴⁾Other movements ⁽²⁾ (48)	Assets in progress ⁽⁴⁾ 31/12/2022 49,887
Gross value	Gross value31/12/2021185,327	Gross valueIncreases13,160	Gross valueDecreases(3,497)	Gross valueTranslation adjustments(1,782)	Gross valueChanges in the scope of consolidation ⁽¹⁾(579)	Gross valueOther movements ⁽²⁾131	Gross value 31/12/2022 192,760
Land and buildings	Land and buildings 31/12/2021 (8,330)	Land and buildings Increases (483)	Land and buildings Decreases 84	Land and buildings Translation adjustments 23	Land and buildings Changes in the scope of consolidation ⁽¹⁾ 1	Land and buildings Other movements ⁽²⁾ 23	Land and buildings 31/12/2022 (8,682)
Nuclear power plants	Nuclear power plants 31/12/2021 (53,655)	Nuclear power plants Increases (3,056)	Nuclear power plants Decreases 2,707	Nuclear power plants Translation adjustments 352	Nuclear power plants Changes in the scope of consolidation ⁽¹⁾ -	Nuclear power plants Other movements ⁽²⁾ (1,729)	Nuclear power plants 31/12/2022 (55,381)
Fossil-fired & hydropower plants	Fossil-fired & hydropower plants 31/12/2021 (12,540)	Fossil-fired & hydropower plants Increases (639)	Fossil-fired & hydropower plants Decreases 131	Fossil-fired & hydropower plants Translation adjustments 105	Fossil-fired & hydropower plants Changes in the scope of consolidation ⁽¹⁾ 36	Fossil-fired & hydropower plants Other movements ⁽²⁾ (15)	Fossil-fired & hydropower plants 31/12/2022 (12,922)
Other installations, plant, machinery, equipment & other	Other installations, plant, machinery, equipment & other 31/12/2021 (10,358)	Other installations, plant, machinery, equipment & other Increases (2,011)	Other installations, plant, machinery, equipment & other Decreases 426	Other installations, plant, machinery, equipment & other Translation adjustments 19	Other installations, plant, machinery, equipment & other Changes in the scope of consolidation ⁽¹⁾ 38	Other installations, plant, machinery, equipment & other Other movements ⁽²⁾ (17)	Other installations, plant, machinery, equipment & other 31/12/2022 (11,903)
Right-of-use assets ⁽³⁾	Right-of-use assets ⁽³⁾31/12/2021 (2,059)	Right-of-use assets ⁽³⁾Increases (724)	Right-of-use assets ⁽³⁾Decreases -	Right-of-use assets ⁽³⁾Translation adjustments 4	Right-of-use assets ⁽³⁾Changes in the scope of consolidation ⁽¹⁾ 16	Right-of-use assets ⁽³⁾Other movements ⁽²⁾ 204	Right-of-use assets ⁽³⁾ 31/12/2022 (2,559)
Assets in progress ⁽⁴⁾	Assets in progress ⁽⁴⁾31/12/2021 (148)	Assets in progress ⁽⁴⁾Increases (93)	Assets in progress ⁽⁴⁾Decreases -	Assets in progress ⁽⁴⁾Translation adjustments (3)	Assets in progress ⁽⁴⁾Changes in the scope of consolidation ⁽¹⁾ 1	Assets in progress ⁽⁴⁾Other movements ⁽²⁾ 56	Assets in progress ⁽⁴⁾ 31/12/2022 (187)
Depreciation and impairment	Depreciation and impairment31/12/2021(87,090)	Depreciation and impairmentIncreases(7,006)	Depreciation and impairmentDecreases3,348	Depreciation and impairmentTranslation adjustments500	Depreciation and impairmentChanges in the scope of consolidation ⁽¹⁾92	Depreciation and impairmentOther movements ⁽²⁾(1,478)	Depreciation and impairment 31/12/2022 (91,634)
NET VALUE	NET VALUE31/12/202198,237	NET VALUEIncreases6,154	NET VALUEDecreases(149)	NET VALUETranslation adjustments(1,282)	NET VALUEChanges in the scope of consolidation ⁽¹⁾(487)	NET VALUEOther movements ⁽²⁾(1,347)	NET VALUE 31/12/2022 101,126

(1) Changes in the scope of consolidation essentially relate to EDF Renewables (€574 million) and Edison (€70 million).

(2) Other movements include the effect on assets associated with provisions and underlying assets of the €(1,956) million change in the real discount rate used to calculate provisions related to EDF’s nuclear generation (see note 15.1) and EDF Energy (€188 million) (see note 15.2).

(3) Right-of-use assets are detailed in note 10.4.

(4) Increases in assets in progress are stated net of the effects of newly-commissioned assets. Assets in progress are detailed in note 10.6.

The changes observed in property, plant and equipment used in generation owned by the Group include a €(1,282) million impact of translation adjustments, principally due to the depreciation of the pound sterling against the euro (€(1,427) million).

Depreciation periods of nuclear plants in France

As stated in note 1.3.4.1, the depreciation period of nuclear power plants currently in operation in France, i.e. thirty-two 900MW reactors, twenty 1300MW reactors and four 1450MW reactors, is 50 years for 900MW-series plants (since 1 January 2016) and 1300MW-series plants (since 1 January 2021), and 40 years for N4- series plants which do not yet fulfil the conditions for a longer depreciation period.

Under France’s multi-year energy programme (PPE, standing for programmation pluriannuelle de l’énergie) for the period 2019-2028, adopted in April 2020, twelve French nuclear reactors are to be shut down by 2035. As this includes the shutdowns of two 900MW reactors in 2027 and 2028 ahead of their fifth 10-year inspection, an early shutdown scenario for two 900MW reactors has been adopted. Its effects on nuclear provisions and depreciation in the Group’s financial statements are not significant.

Depreciation period of coal-fired plants in France

In view of France’s Energy and Climate law of 8 November 2019, the end of the depreciation period for the Cordemais coal-fired plant was brought forward to 2026, with a view to the plant continuing to operate as part of the Ecocombust project, after conversion to biomass. On 8 July 2021, EDF announced that it had decided to terminate the Ecocombust project, since the conditions for its continuation were not fulfilled. The Cordemais plant will remain in operation until 2024, perhaps even 2026, to meet the requirements of the electricity system as defined by RTE, in compliance with the Energy and Climate law which allows the plant to be used at full capacity for a maximum 750 hours a year. Decrees 2022- 123 of February 2022 and 2022-1233 of September 2022 took the exceptional step of raising the limit for greenhouse gas emissions by fossil-fired electricity generating installations, removing the cap on operation hours for 2022 and 2023 due to risks of pressure on the electricity system. The end of the depreciation period is currently unchanged at 2026, and the depreciation schedule takes account of the new operating rules.

10.4 Right-of-use assets

Accounting principles and methods

Under IFRS 16, a contract is, or contains, a lease if it confers the right to control the use of an identified asset for a period of time in exchange for a consideration.

Identified arrangements that do not have the legal form of a lease contract but nonetheless convey the right to control the use of an asset or group of specific assets to the purchaser are classified as leases by reference to IFRS 16.

Recognition of a lease contract as lessee under IFRS 16

The Group’s lease contracts as lessee essentially concern real estate assets (office and residential properties), industrial installations (land, wind farms) and to a lesser extent vehicles, IT and industrial equipment.

IFRS 16 requires leases to be recognised in the lessee’s balance sheet when the leased asset is made available, in the form of a “right-of-use” asset, presented in “Property, plant and equipment used in generation and other tangible assets owned by the Group, including right-of-use assets” with a corresponding financial liability associated with the lease commitment, presented in “Current and non-current financial liabilities”.

Upon initial recognition of a lease, the right of use and the lease liability are valued by discounting the future lease payments over the term of the lease, taking into consideration assumptions regarding the renewal or termination of leases if the relevant options are reasonably certain to be exercised.

As a rule, since the implicit interest rate in a lease is difficult to determine, the lessee’s incremental borrowing rate is used to discount the lease liability. This rate is based on zero-coupon EDF bond rates, adjusted for the currency risk, a country risk premium, the term of the lease contracts and the subsidiary’s credit risk at the date of initial recognition of the contract. In certain cases, it is based on a subsidiary’s specific incremental borrowing rate.