Universal Registration Document 2022

Note 11 Financial result

(1) The change in dividends received principally concerns:

Enedis (€907 million in 2022 and €540 million in 2021);
Dortgaz (€163 million in 2022 and €2 million in 2021);
Manostock (€109 million in 2022 and €30 million in 2021);
CTE (€179 million in 2022 and €130 million in 2021);
Framatome (€61 million in 2022 and €37 million in 2021);
EDF PEI (€100 million in 2022 and €88 million in 2021);
EDF Immo (€73 million in 2022 and €63 million in 2021);
EDF Nam Theun Holding (€42 million in 2022 and €36 million in 2021);
EDEV (€49 million in 2022 and €87 million in 2021);
C3 (the holding company which carries EDF Investissements Groupe) (€98 million in 2022 and €183 million in 2021);
EDF Holding SAS (the holding company which carries EDF Trading) (€445 million in 2022 and €603 million in 2021).

(2) The positive discount effect on nuclear provisions in 2022 is explained by a 50bp increase in the real discount rate in 2022, after a 10bp decrease in 2021. It amounts to

anet €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 discountrate in 2022, which were recorded in the income statement for provisions not backed by assets (see note 26 (1)). At 31 December 2021, the €(1,474) million cost of unwinding the discount on nuclear provisions was complemented by an unfavourable effect of €(617) million relatingto discount rates.

(3) The change is due to very unfavourable financial market trends compared to 2021.

(4) At 31 December 2022, impairment of €2,650 million was recognised in respect of the investment held in EDF International (see note 16.1 (4)).

(5)See note 25 (1).

Note 12 Exceptional result

At 31 December 2022, the exceptional result is a net €536 million. The main items were the following:

net gains of €296 million on sales of investment securities included in dedicated assets, undertaken in the course of operational portfolio management;
net reversals of €56 million from excess tax depreciation;
a reversal of €135 million from provisions for ongoing tax litigation, including €69 million for amounts disbursed by EDF in 2022 in connection with the outcome of the existing dispute concerning the tax-deductibility of certain long-term liabilities for the financial years 2012-2013 and the period 2016- 2019. The corresponding expense is recognised as an income tax expense (see note 13.2). The Company lodged a further appeal before the Council of State, which was deemed admissible in late 2022. EDF is now waiting for a hearing date to be set.

At 31 December 2021, the exceptional result was a net €1,765 million. The main items were the following:

net gains of €1,070 million on sales of investment securities included in dedicated assets, undertaken in the course of operational portfolio management;
income of €501 million corresponding to the settlement indemnity under the agreement signed by AREVA and EDF on 29 June 2021;
a reversal of €459 million from provisions for ongoing tax litigation. This followed the initial establishment of the €(538) million provision at 31 December 2020 after a Council of State decision of 11 December 2020 concerning the tax-deductibility of certain long-term liabilities. On 17 June 2021 the Court dealing with the matter found against the Company and cancelled the first-instance judgements that had been in its favour. In execution of this decision, EDF paid €374 million in July 2021 for the years 2008 to 2010, having already paid €85 million in June 2021 for the years 2014 and 2015. €459 million of the provision was thus reversed and the corresponding expense was recognised as a tax expense. At 30 June 2021, the provision thus amounted to €79 million and concerned the financial years 2012-2013 and the period 2016-2021. At 31 December 2021, it amounted to €69 million due to re-estimation of the risk for 2021;
increases to provisions for expenses relating to ongoing Competition Authority (ADLC) litigation proceedings (see note 29.1 (1));
net reversals of €30 million from excess tax depreciation.

(in millions of euros)		2022		2021
Income from investments ⁽¹⁾	Income from investments ⁽¹⁾	Income from investments ⁽¹⁾2022 2,429	Income from investments ⁽¹⁾	Income from investments ⁽¹⁾2021 1,957
Income from other securities and receivables related to fixed assets	Income from other securities and receivables related to fixed assets	Income from other securities and receivables related to fixed assets 2022 876	Income from other securities and receivables related to fixed assets	Income from other securities and receivables related to fixed assets 2021 905
Interest and similar income and expenses	Interest and similar income and expenses	Interest and similar income and expenses2022(1,512)	Interest and similar income and expenses	Interest and similar income and expenses2021(1,264)
Expenses on long-term financial liabilities after hedging	Expenses on long-term financial liabilities after hedging (1,740)	Expenses on long-term financial liabilities after hedging 2022	Expenses on long-term financial liabilities after hedging (1,624)	Expenses on long-term financial liabilities after hedging 2021
Other	Other 228	Other 2022	Other 360	Other 2021
Foreign exchange result	Foreign exchange result	Foreign exchange result 2022 (173)	Foreign exchange result	Foreign exchange result 2021 (196)
Gains and losses on sales of marketable securities	Gains and losses on sales of marketable securities	Gains and losses on sales of marketable securities 2022 (104)	Gains and losses on sales of marketable securities	Gains and losses on sales of marketable securities 2021 (239)
Increases/Decreases in provisions and transfers of charges:	Increases/Decreases in provisions and transfers of charges:	Increases/Decreases in provisions and transfers of charges:2022(4,785)	Increases/Decreases in provisions and transfers of charges:	Increases/Decreases in provisions and transfers of charges:2021(2,628)
Discount expense on employee benefits	Discount expense on employee benefits (419)	Discount expense on employee benefits 2022	Discount expense on employee benefits (292)	Discount expense on employee benefits 2021
Discount expense on nuclear provisions ⁽²⁾	Discount expense on nuclear provisions ⁽²⁾ 813	Discount expense on nuclear provisions ⁽²⁾ 2022	Discount expense on nuclear provisions ⁽²⁾ (2,090)	Discount expense on nuclear provisions ⁽²⁾ 2021
Provision on investment securities in dedicated assets ⁽³⁾	Provision on investment securities in dedicated assets ⁽³⁾ (1,661)	Provision on investment securities in dedicated assets ⁽³⁾ 2022	Provision on investment securities in dedicated assets ⁽³⁾ (104)	Provision on investment securities in dedicated assets ⁽³⁾ 2021
Impairment of marketable securities ⁽³⁾	Impairment of marketable securities ⁽³⁾ (710)	Impairment of marketable securities ⁽³⁾ 2022	Impairment of marketable securities ⁽³⁾ (16)	Impairment of marketable securities ⁽³⁾ 2021
Provision on investment securities ⁽⁴⁾	Provision on investment securities ⁽⁴⁾ (2,812)	Provision on investment securities ⁽⁴⁾ 2022	Provision on investment securities ⁽⁴⁾ 3	Provision on investment securities ⁽⁴⁾ 2021
Provision for foreign exchange losses ⁽⁵⁾	Provision for foreign exchange losses ⁽⁵⁾ (312)	Provision for foreign exchange losses ⁽⁵⁾ 2022	Provision for foreign exchange losses ⁽⁵⁾ (233)	Provision for foreign exchange losses ⁽⁵⁾ 2021
Reversals from provisions, impairment and transfers of charges	Reversals from provisions, impairment and transfers of charges 222	Reversals from provisions, impairment and transfers of charges 2022	Reversals from provisions, impairment and transfers of charges 167	Reversals from provisions, impairment and transfers of charges 2021
FINANCIAL RESULT	FINANCIAL RESULT	FINANCIAL RESULT2022(3,269)	FINANCIAL RESULT	FINANCIAL RESULT2021(1,465)

Universal Registration Document 2022

Introduction

Note 11 Financial result

Note 12 Exceptional result