At 31 December 2021
| 2021 | |||||
|---|---|---|---|---|---|
| (in millions of euros) | Notes | Gross value | Income taxes | Non-controlling interests | EDF net income |
| Net income | 5,113 | ||||
| Changes in the fair value of debt and equity instruments (1) | 8.3 | (2,804) | 776 | 3 | (2,025) |
| Net changes in fair value on Energy and Commodity derivatives, excluding trading activities | 6 | 215 | (66) | - | 149 |
| Impairment (2) | 872 | (177) | (87) | 608 | |
| impairment of fixed assets | 10.8.1 and 10.8.2 | 653 | (177) | (87) | 389 |
| impairment of investments in associates and joint ventures | 12.3 | 219 | - | - | 219 |
| Other items | 1,054 | (152) | (30) | 872 | |
| other operating income and expenses | 7 | 1,123 | (220) | (30) | 873 |
| tax revaluation of assets in Italy | - | (103) | - | (103) | |
| increase in the income tax rate in the UK | 9.2 | - | 359 | - | 359 |
| recognition of deferred tax assets in the United States | 9.2 | - | (191) | - | (191) |
| other | (69) | 3 | - | (66) | |
| NET INCOME EXCLUDING NON-RECURRING ITEMS | 4,717 | ||||
(1) Including fair value hedges of dedicated assets and changes in the fair value of debt and equity instruments comprised in investments in associates and joint ventures.
(2) In 2021, impairment includes €(445) million concerning assets of the Dungeness power plant.
Net indebtedness comprises total loans and financial liabilities, less cash and cash equivalents and liquid assets. Liquid assets are financial assets consisting of funds or interest rate instruments with initial maturity of over three months that are readily convertible into cash and are managed according to a liquidity-oriented policy.
Net indebtedness are as follows:
| (in millions of euros) | Notes | 31/12/2022 | 31/12/2021 |
|---|---|---|---|
| Loans and other financial liabilities |
Loans and other financial liabilities Notes18.3.2 |
Loans and other financial liabilities 31/12/2022 96,053 |
Loans and other financial liabilities 31/12/202169,406 |
| Derivatives used to hedge liabilities |
Derivatives used to hedge liabilities Notes18.7.1 |
Derivatives used to hedge liabilities 31/12/2022 (2,024) |
Derivatives used to hedge liabilities 31/12/2021(3,762) |
| Cash and cash equivalents |
Cash and cash equivalents Notes18.2 |
Cash and cash equivalents 31/12/2022 (10,948) |
Cash and cash equivalents 31/12/2021(9,919) |
| Debt and equity securities – liquid assets |
Debt and equity securities – liquid assets Notes18.1.2 |
Debt and equity securities – liquid assets 31/12/2022 (18,507) |
Debt and equity securities – liquid assets 31/12/2021(12,737) |
| Derivatives hedging liquid assets |
Derivatives hedging liquid assets Notes18.7.1 |
Derivatives hedging liquid assets 31/12/2022 (74) |
Derivatives hedging liquid assets 31/12/2021- |
| NET INDEBTEDNESS |
NET INDEBTEDNESSNotes
|
NET INDEBTEDNESS 31/12/2022 64,500 |
NET INDEBTEDNESS31/12/202142,988 |
The Group’s net indebtedness amounts to €64,500 million at 31 December 2022 (€42,988 million at 31 December 2021).
In accordance with EDF’s raison d’être: “To build a net zero energy future with electricity and innovative solutions and services, to help save the planet and drive well-being and economic development” and its CAP 2030 strategy, the Group has defined 16 Corporate Social Responsibility (CSR) commitments focusing on four issues – Carbon neutrality and the climate, Preserving the planet’s resources, Well-being and solidarity, and Responsible development. The commitments are transposed into the functions and investment projects with the help of an assessment grid.
These commitments and their implementation in the Group are also managed and monitored by several governance bodies, under the supervision of the Board of Directors (see section 3.5.2 of the 2022 Universal Registration Document “CSR governance bodies”).
On 10 December 2021 the European Union adopted Article 8 of European regulation 2020-852 which aims to classify economic activities based on their contribution to the achievement of environmental objectives. This “Taxonomyregulation” is part of the European strategy to promote emergence of sustainable finance that contributes to attainment of carbon neutrality by 2050, particularly by encouraging capital inflows into sustainable investments. It was supplemented by a specific Delegated Act for nuclear and gas activities, published on 2 February 2022 and applicable from 2022. The information and indicators contained in this regulation (proportion of sales, capital expenditure and operating expenditure associated with eligible activities and aligned with the European taxonomy) are described in section 3.8.4 of the 2022 Universal Registration Document, “Details on the taxonomy”. See note 20.4 below presents the amount of taxonomy-aligned CAPEX.
The Group’s financial statements incorporate issues relating to climate change and sustainable development at different levels, as summarised below. Those issues are taken into consideration through the Group’s investment and divestment strategy, introduction of sustainable financing, specific expenditure incurred in response to environmental challenges, particularly under applicable laws and regulations, and also through the valuation methods used for the Group’s assets and liabilities.
