As the coverage of provisions by dedicated assets was above 100% at 31 December 2021 (109.3%), EDF had no obligation to add to the dedicated asset portfolio in 2022, and no allocation was made during the year (in 2021, there was also no such obligation and no allocation to dedicated assets was made).
In 2022, the markets were affected by strong inflationary pressure and the realisation by the central banks and the markets that bold measures, particularly interest rate rises, would be necessary to prevent de-anchoring of inflation expectations. The issue was exacerbated by the war in Ukraine and the disruption it caused to energy supplies for Europe. This situation initially affected bond instruments, which ended the year on a record low with -18.5% on government bonds (FTSE EMU Government Bond Index (EGBI)). Credit instruments also suffered significantly (the FTSE EuroBIG Corporate index fell by -14.5%) under the double effect of higher interest rates and wider spreads. However, despite the partial currency hedge set up by the Group, the rise of the dollar limited the decline in the Euro value of assets expressed in dollars. The equity markets declined, but for the time being have only echoed the rise in real interest rates, apparently without responding to the risk to profits in a depressed economic environment. The markets seem to be counting on the central banks to succeed in containing inflation without creation a recession, and this situation will need to be closely monitored in 2023.
Negative changes in the fair value of the dedicated asset portfolio (investment funds, equities) amounting to €(3,096) million were recognised in the financial result in 2022 (see note 8.3), compared to positive changes amounting to €2,739 million in 2021. Negative changes in the fair value of the bonds in the dedicated asset portfolio amounting to €(875) million were recognised in OCI in 2022 (see note 18.1.2), compared to negative changes amounting to €(244) million in 2021.
In 2022, EDF Invest continued to extend its portfolio of unlisted assets, purchasing minority stakes in telecoms infrastructures (Norlys Fiber, a fibre optics network in Denmark), digital infrastructures (DataBank, a group of data centres in the United States), and shares in diversified unlisted investment funds. EDF Invest also sold its entire interest in Thyssengas (a gas network in Germany) and part of its stake in the Transport Stockage Hydrocarbures/Géosel group (salt cavern oil storage in France) and 50% of the MiRose wind farms in the US.
Withdrawals from dedicated assets in 2022 totalled €416 million, equivalent to payments made in respect of the long-term nuclear obligations to be covered during the year (€389 million in 2021).
EDF’s dedicated assets are included in the Group’s consolidated financial statements at the following values:
| 31/12/2022 | 31/12/2021 | ||||
|---|---|---|---|---|---|
| (in millions of euros) | Consolidated balance sheet presentation | Book value | Realisable value | Book value | Realisable value |
| Yield assets (EDF Invest) | 6,477 | 8,772 | 5,626 | 7,908 | |
| CTE | Investments in associates (1) | 1,766 | 3,791 | 1,478 | 3,343 |
| Other associates | Investments in associates (2) | 2,268 | 2,495 | 2,567 | 2,923 |
| Other unlisted assets | Debt and equity securities and other net assets (3) | 2,422 | 2,465 | 1,581 | 1,642 |
| Derivatives | Fair value of derivatives | 21 | 21 | - | - |
| Growth assets | 12,251 | 12,251 | 15,320 | 15,320 | |
| Equities (investment funds) | Debt securities | 11,625 | 11,625 | 14,815 | 14,815 |
| Unlisted equity funds (EDF Invest) | Debt securities | 553 | 553 | 519 | 519 |
| Derivatives | Fair value of derivatives | 73 | 73 | (14) | (14) |
| Fixed-income assets | 12,881 | 12,881 | 14,226 | 14,226 | |
| Bonds | Debt securities | 11,264 | 11,264 | 13,007 | 13,007 |
| Unlisted debt funds (EDF Invest) | Debt securities | 215 | 215 | 199 | 199 |
| Cash portfolio | Debt securities | 1,414 | 1,414 | 1,016 | 1,016 |
| Derivatives | Fair value of derivatives | (12) | (12) | 4 | 4 |
| TOTAL EDF DEDICATED ASSETS | 31,609 | 33,904 | 35,172 | 37,454 | |
(1) The Group’s investment of 50.1% of CTE, the Company that holds 100% of the shares in RTE. The CTE shares are included at their equity value in the consolidated financial statements (book value in the table). The realisable value of CTE in the above table has been determined by an independent assessor, in the same way as for EDF Invest’s other assets.
(2)I ncluding the value of the share in equity of the controlled companies owning these investments.
(3) Including debt and equity securities amounting to €2,299 million and the value of the share in equity of other controlled companies.
