Universal Registration Document 2022

16.5 Investment securities portfolio

	At start of year			At year-end
(in millions of euros)	Gross book value	Net book value	Fair value	Gross book value	Net book value	Fair value
VALUE OF INVESTMENT SECURITIES	25,201	24,944	29,741	25,215	23,297	25,495

The net value of the investment securities portfolio at 31 December 2022 comprises €23,297 million of dedicated assets (see note 26.6.5).

16.6 Treasury shares

A share repurchase programme was authorised by the General Shareholders’ Meeting of 6 May 2021 for a duration of 18 months, within the limit of 10% of the total number of shares making up the Company’s capital. This programme was implemented in 2021 for market-making purposes through the liquidity contract.

(in millions of euros)	31/12/2021	Increase	Decrease	31/12/2022
Gross value	Gross value 31/12/2021 14	Gross value Increase -	Gross value Decrease (7)	Gross value 31/12/2022 7
Impairment	Impairment 31/12/2021 (2)	Impairment Increase -	Impairment Decrease 2	Impairment 31/12/2022 -
TREASURY SHARES, NET	TREASURY SHARES, NET31/12/202112	TREASURY SHARES, NETIncrease-	TREASURY SHARES, NETDecrease(5)	TREASURY SHARES, NET 31/12/2022 7

At 31 December 2022, a total 888,511 treasury shares are included in “Investment securities” at the net value of €7 million.

16.7 Financial loans and receivables related to investments

This item consists mainly of loans to subsidiaries:

	Liquidity			Gross value at 31/12/2022	Gross value at 31/12/2021
(in millions of euros)	< 1 year ⁽¹⁾	1-5 years ⁽²⁾	> 5 years ⁽³⁾	Gross value at 31/12/2022	Gross value at 31/12/2021
Receivables related to investments	2	-	49	51	51
Loans to subsidiaries and other financial assets ⁽⁴⁾	18,458	9,924	5,825	34,207	23,829
FINANCIAL LOANS AND RECEIVABLES RELATED TO INVESTMENTS	18,460	9,924	5,874	34,258	23,880

(1) Including €9.94 billion concerning EDF International, €5.1 billion concerning EDF Trading and €1.05 billion concerning EDF Renewables, corresponding to maturities of drawings on credit lines.

(2) Including €5.66 billion concerning EDF International and €2.3 billion concerning EDF Renewables, corresponding to maturities of drawings on credit lines, and €1 billion to Enedis corresponding to maturities of loans and drawings on credit lines.

(3) Including €2.36 billion concerning Enedis, corresponding to maturities of loans and drawings on credit lines, €1.5 billion concerning EDF Energy corresponding to maturities of loans, and €1 billion concerning EDF Renewables, corresponding to maturities of drawings on credit lines.

(4) The changes are principally explained by loans to subsidiaries in 2022: €2.6 billion to EDF International, €2.2 billion to EDF Trading, €2 billion to Enedis, €2 billion to EDF Energy and €1.5 billion to EDF Renewables.

Note 17 Inventories and work-in-progress

Accounting principles and methods

The initial cost of inventories includes all direct material costs (including the effect of hedging), labour costs and a share of indirect production costs.

Inventory consumption is generally valued under the weighted average unit cost method. Consumption of greenhouse gas emission rights and Energy Savings Certificates is valued under the FIFO (first in first out) method.

Inventories are carried at the lower of historical cost or net realisable value.

Nuclear fuel and materials

Inventory accounts include:

nuclear materials, whatever their form during the fuel fabrication cycle;
fuel components in the warehouse or in the reactor.

The stated value of nuclear fuel and materials and work-in-progress is determined based on direct processing costs including materials, labour and subcontracted services (fluoration, enrichment, fabrication).

In application of the concept of “loaded fuel” as defined in the ministerial order of 21 March 2007, the cost of inventories for fuel loaded in the reactors but not yet irradiated includes expenses for spent fuel management

and long-term radioactive waste management. The corresponding amounts are taken into account in the relevant provisions.

Nuclear fuel consumption is determined by component (natural uranium, fluoration, enrichment, fuel assembly fabrication) as a proportion of the expected output when the fuel is loaded in the reactor. These quantities are valued by applying the weighted average cost of inventories to each component. Inventories are periodically corrected in view of forecast spent quantities based on neutronic measurements and physical inventories.

Other operating inventories

Other operating inventories comprise:

fossil fuels required for operation of fossil-fired power plants;
operating materials and equipment such as spare parts supplied under a maintenance programme (excluding capitalised strategic safety spare parts);
greenhouse gas emission rights and Energy Savings Certificates acquired for the generation cycle (see note 6);
gas stocks, valued at weighted average cost, including direct and indirect purchase costs, especially transport costs;
certificates issued under capacity mechanisms (capacity guarantees in France) (see note 3.1).