Details of the change in equity between 1 January and 31 December 2021 are as follows:

Electricité de France (EDF or the “Company”) is a French société anonyme governed by French law, and registered in France (22-30, avenue de Wagram, 75008 Paris).

The consolidated financial statements reflect the accounting position of the Company and its subsidiaries (which together form the “Group”) and the Group’s interests in associates, joint arrangements classified as joint operations, and joint ventures, for the year ended 31 December 2021.

The Group is an integrated energy operator engaged in all aspects of the energy business: power generation (nuclear power, hydropower, wind and solar power, thermal energy, etc.), transmission, distribution, supply, trading, energy services, production of equipment and fuel assemblies, and reactor services.

The Group’s consolidated financial statements at 31 December 2021 were prepared under the responsibility of the Board of Directors and approved by the Directors at the Board meeting held on 17 February 2022. They will become final after approval at the General Shareholders’ Meeting to be held on 12 May 2022.

Pursuant to European regulation 1606/2002 of 19 July 2002 on the adoption of international accounting standards, the EDF group’s consolidated financial statements at 31 December 2021 are prepared under the presentation, recognition and measurement rules set out in the international accounting standards published by the IASB and approved by the European Union for application at 31 December 2021. These international standards are IAS (International Accounting Standards), IFRS (International Financial Reporting Standards), and SIC and IFRIC interpretations.

The Group has not opted for early application of standards and interpretations that were not yet mandatory in 2021.

The parent company’s functional currency is the Euro. The Group’s financial statements are presented in millions of euros.

The accounting and valuation methods applied by the Group in the consolidated financial statements at 31 December 2021 are identical to those used in the consolidated financial statements at 31 December 2020, with the exception of the changes presented below in notes 1.2.1, 1.2.2, 1.2.3 and 1.2.4. Information is also given on the standards, amendments and interpretations adopted by the European Union that are applicable from 1 January 2022 (note 1.2.5).

For purposes of clarity, the accounting principles and methods used are now described in individual notes to the financial statements.

These amendments were adopted on 13 January 2021 and have been applicable since 1 January 2021.

The principal interest rates concerned that are used by EDF are the Eonia, the Libor USD and the Libor GBP.

The modification of effective interest rates resulting from the reform is applied prospectively, there is no significant impact on profit and loss and the hedging relationships for the instruments concerned are continued.

This reform has no significant impact on the Group’s net income for 2021, and its effects are mainly operational (renegotiation of contracts, fallback provisions, information system upgrades).

Due to its long-term fixed-rate borrowing position (see note 18.3.3.3), the Group’s exposure is essentially concentrated in interest rate derivatives that are used to swap fixed-rate debt to floating rates. On these instruments, the reference rate curves for collateral agreements have been modified, replacing the Eonia by the Ester. Following adjustment of the value of the derivatives, receipt of cash compensation of €22 million was recognised.

The Group adhered to the ISDA Fallback protocol in November 2021 and the Libor GBP was replaced by the Sonia for all the derivatives concerned from 1 January 2022.

For the USD Libor, the transition operations will take place in line with the end date for its publication i.e. by 30 June 2023.

Application of the “Covid-19-Related Rent Concessions” amendment has been extended for one year (for payments up to 30 June 2022 at the latest). This allows lessees benefiting from “payment holidays” or temporary rent reductions as a direct result of the Covid-19 pandemic to record the impact directly in profit and loss.

This amendment has no impact on the Group’s financial statements.

In May 2021, the IASB approved the IFRIC's agenda decision concerning attribution of benefits earned under post-employment benefit plans.

This decision principally concerns retirement indemnities in France paid under the IEG (electricity and gas sector) benefit plans. The corresponding commitments amounted to €941 million at 31 December 2020 for the two segments "France – Generation and Supply activities" and "France – Regulated activities" (see note 16.2.2).

Modification of the benefit attribution method led to a €(67) million reduction before tax in benefit commitments at 1 January 2021, recognised in equity (“Other changes”).

In April 2021, the IASB confirmed the position taken by the IFRIC in March 2021 following its tentative agenda decision of December 2020 on recognition of configuration and customisation costs on a software provided under a SaaS (Software as a Service) contract. The matter was put on the agenda due to the diversity of practices observed. The IFRIC agenda decision states that in most cases, in application of IAS 38, these costs should be treated as expenses, not intangible assets, since the entity does not control the software and the configuration/customisation activities do not generate a resource that is controlled by the customer independently of the software.

In application of this decision, configuration and customisation costs for SaaS which were previously capitalised were restated at 1 January 2021, with a corresponding adjustment of €(88) million before tax to equity (in “Other changes”). Configuration and customisation costs incurred in 2021 on such contracts are included in “Other external expenses”.

From 1 January 2022, the proceeds from sales of items produced by an asset that has not yet been commissioned will no longer be deducted from the cost of the asset. These proceeds and the related costs will be included in profit and loss.

The Group will be concerned via its projects for construction of energy generation plants.

These amendments define the costs that must be taken into consideration when assessing whether a contract is onerous.

The Group does not anticipate any material impact as a result of application of these amendments.

The Group does not anticipate any material impact in connection with the following amendments:

▪“Annual improvements – 2018-2020 cycle”;

▪Amendments to IFRS 3 “Reference to the Conceptual Framework”.

The consolidated financial statements are prepared on a historical cost basis, with the exception of assets acquired and liabilities assumed through business combinations, and of certain financial instruments, which are stated at fair value.

An entity’s functional currency is the currency of the economic environment in which it primarily operates. In most cases, the local currency is the functional currency. But for some entities, a functional currency other than the local currency may be used when it reflects the currency used in the principal transactions.

The financial statements of foreign companies whose functional currency is not the Euro are translated as follows:

Translation adjustments affecting a monetary item that is an integral part of the Group’s net investment in a consolidated foreign company are included in consolidated equity until the disposal or liquidation of the net investment, at which date they are recognised as income or expenses in the income statement, in the same way as other exchange differences concerning the Company.

In application of IAS 21, transactions expressed in foreign currencies are initially translated and recorded in the functional currency of the entity concerned, using the rate in force at the transaction date.

At each reporting date, monetary assets and liabilities expressed in foreign currencies are translated at the closing rate. The resulting foreign exchange differences are taken to the income statement.

However, any payment or receipt of a non-monetary advance in a foreign currency is translated at the exchange rate of the transaction date, with no subsequent adjustment.

Assets and liabilities contributing to working capital used in the entity’s normal operating cycle are classified as current in the consolidated balance sheet. Other assets and liabilities are classified as current if they mature within one year of the closing date, and non-current if they mature more than one year after the closing date.

The income statement presents items by nature. The heading “Other income and expenses” presented below the operating profit before depreciation and amortisation comprises items of an unusual nature or amount.

The preparation of the financial statements requires the use of judgments, best estimates and assumptions in determining the value of assets and liabilities, income and expenses recorded for the period, considering positive and negative contingencies existing at year-end. The figures in the Group’s future financial statements could differ significantly from current estimates due to changes in these assumptions or economic conditions.

In a context characterised by volatility on the financial and energy markets, the parameters used to prepare estimates are based on macro-economic assumptions appropriate to the very long-term cycle of Group assets.

The principal operations for which the Group uses estimates and judgments are the following:

In the specific case of the depreciation period of its French nuclear power plants, the EDF group’s industrial strategy is to continue operation beyond 40 years, in optimum conditions as regards safety and efficiency.

The Group has therefore been making preparations for several years to extend the operation period, and making the necessary investments under its Grand Carénage industrial refurbishment programme which was approved in principle by the Board of Directors in January 2015.

The depreciation period of 900MW-series power plants was extended from 40 years to 50 years in 2016 (except for Fessenheim where both reactors were permanently shut down in the first half of 2020) since all the technical, economic and governance conditions were fulfilled.

On 23 February 2021, the Nuclear Safety Authority (Autorité de Sûreté Nucléaire (ASN)) issued a resolution on the conditions for continued operation of EDF’s 900MW reactors beyond their fourth 10-year inspection. The ASN considered that “the measures planned by EDF combined with those prescribed by ASN open the prospect of continued operation of these reactors for a further ten years following their fourth periodic safety review”. This resolution ends the "generic" phase of the review, which concerns the studies and modifications of facilities common to all the 900MW reactors, which all have a similar design model.

After the pilot reactor Tricastin 1 in December 2019, Bugey 2, Bugey 4 and Tricastin 2 reached the milestone of 40 years of operation, and were restarted after a successful fourth 10-year inspection during 2021. Three other 10-year inspections were in progress at 31 December 2021 (Dampierre 1, Bugey 5 and Gravelines 1). The fourth 10-year inspection of Dampierre 1 was completed on 5 February 2022.

The depreciation period of other series (1300MW and 1450MW), which are more recent, remained at 40 years until 31 December 2020.

In 2021, the technical, economic and governance conditions for extending the depreciation period of 1300MW-series plants were fulfilled, and consequently the Group proceeded to the corresponding change of estimate at 1 January 2021 for all its 1300MW power plants (see note 1.4.1, Extension to 50 years of the depreciation period of the 1300MW PWR series in France).

The depreciation period of the 1450MW series (the four reactors at Chooz and Civaux), which are much more recent, currently remains at 40 years as the conditions for extension are not yet fulfilled.

These depreciation periods take into account the date of recoupling with the network after the most recent 10-year inspection.

The measurement of provisions for the back-end of the nuclear cycle, decommissioning and last cores is sensitive to assumptions concerning technical processes, costs, inflation rates, long-term discount rates, the depreciation period of plants currently in operation and disbursement schedules.

These parameters are therefore re-estimated at each closing date to ensure that the amounts accrued correspond to the best estimate of the costs eventually to be borne by the Group.

The Group considers that the assumptions used at 31 December 2021 are appropriate and justified. However, any future change in assumptions could have a significant impact on the Group’s financial statements (see note 15).

For France, the main assumptions and sensitivity analyses relating to EDF's nuclear provisions are presented in note 15.1.1.5.

The calculation of provisions incorporates a level of risks and unknowns as appropriate to the operations concerned. The valuation of costs carries uncertainty factors such as:

The value of pensions and other long-term and post-employment benefit obligations is based on actuarial valuations that are sensitive to all the actuarial assumptions used, particularly concerning discount rates, inflation rates and wage increase rates.

The principal actuarial assumptions used to calculate these post-employment and long-term benefits at 31 December 2021 are presented in note 16. These assumptions are updated annually. The Group considers the actuarial assumptions used at 31 December 2021 appropriate and well-founded, but future changes in these assumptions could have a significant effect on the amount of the obligations and the Group’s equity and net income. Sensitivity analyses are therefore presented in note 16.

Impairment tests on goodwill and long-term assets are sensitive to the macro-economic and segment assumptions used – particularly concerning energy price movements – and medium-term financial forecasts. The Group therefore revises the underlying estimates and assumptions based on regularly updated information.

These assumptions, which are specific to Group companies, are presented in note 10.8.

In measuring the fair value of unlisted financial instruments (essentially energy contracts), the Group uses valuation models based on a certain number of assumptions subject to unforeseeable developments.

As explained in note 5.1, the quantities of energy supplied but not yet measured and billed are calculated at the reporting date based on consumption statistic models and selling price estimates. Determination of the unbilled portion of sales revenues at the year-end is sensitive to the assumptions used to prepare these statistics and estimates.

In view of the specific nature of French public electricity distribution concessions, the Group has opted to present its obligation to replace concession assets in the balance sheet at a value based on the amount of contractual commitments as calculated and disclosed to the concession-granting authorities in the annual business reports (see note 11). Measurement of the concession liabilities concerning assets to be replaced is notably subject to unforeseeable developments in terms of costs, the useful life of assets and disbursement dates.

The use of estimates and assumptions over recovery horizons is particularly important in the recognition of deferred tax assets.

The main restrictions that may limit the Group’s ability to access or use its assets or settle its liabilities concern the following items:

Certain shareholder agreements concerning companies controlled by the Group include clauses to protect minority shareholders, requiring approval from minority shareholders for certain particularly important decisions.

Finally, certain financing loans granted to Group entities contain early repayment clauses (see note 18.3.4), and certain items of cash and cash equivalents are subject to restrictions (see note 18.2).

The Group considers that all the technical, economic and governance conditions for bringing the depreciation period of 1300MW-series PWR plants in France into line with its industrial strategy are now fulfilled.

The studies and work already completed, particularly concerning replacement of components and controlled equipment ageing, have given the Group sufficient assurance of the 1300MW plants’ technical capacity to operate for at least 50 years. This is also supported by the international benchmark.

The Group has also made progress with the ASN on the question of the content of the fourth 10 year inspections of the 1300MW series (a project included in the Grand Carénage programme). These inspections use a work methodology with ambitions focusing particularly on safety, similar to the fourth 10 year inspections of the 900MW series and incorporating the lessons learned from that series. In December 2019, the ASN’s response to the Re-examination Orientation file for the fourth 10-year inspections of the 1300MW reactors gave general approval for the themes selected and commitments made by EDF for these inspections.

Most importantly, the ASN approval published in February 2021 for the generic aspects of the continued operation of 900MW reactors for ten years following their fourth 10-year inspection, and the industrial success of the initial fourth 10-year inspections for such reactors (after the pilot reactor Tricastin 1 in December 2019, Bugey 2 and Bugey 4 reached 40 years of operation and were restarted after a successful fourth 10-year inspection during the first half of 2021 followed by Tricastin 2 in the second half of 2021), reinforce EDF’s confidence that its inspection content for the 1300MW series is appropriate and well controlled.

Once its fourth 10-year inspections are completed, the 1300MW PWR plants will thus have reached a level of safety close to EPR safety level.

Also, extending operation of the 1300MW-series plants beyond 40 years offers high profitability even in low long-term price scenarios, and in a range of sensitivity scenarios.

Finally, operating the 1300MW-series plants for 50 years is consistent with France’s Energy and Climate law of 8 November 2019 (which sets a target of 50% nuclear for France’s electricity output by 2035), and the adoption decree of 21 April 2020 for France’s multi-year energy programme (Programmation Pluriannuelle de l’Energie (PPE)).A study for the energy future, Futurs énergétiques 2050, was conducted by France’s national grid operator RTE at the request of the French government, examining electricity mix scenarios to achieve carbon neutrality in France by 2050. The related progress report published in June 2021, and the key results published on 25 October 2021, indicate a significant need for carbon-free generation capacity. For all scenarios relating to the post-2035 period, the study includes the assumption that EDF’s existing nuclear power plant fleet will remain in operation beyond 50 years, and be shut down between 50 and 60 years of operation.

In view of all these factors, the Group considers that the best estimate for the depreciation period of the 1300MW-series plants is now 50 years. This accounting estimate does not predetermine the ASN’s future decisions to authorise continued operation, which will be given individually for each unit after each 10-year inspection, as currently applied and required by law.

The Group therefore changed the estimate at 1 January 2021 for all 1300MW power plants.

This change of accounting estimate is applied prospectively, and has the following consequences for the Group’s consolidated financial statements at 31 December 2021:

▪At 1 January 2021, due to timing differences in the payment schedules, provisions relating to nuclear power generation were reduced by €1,016 million (see note 15), including €848 million covered by dedicated assets. This reversal from provisions is principally allocated to the net book value of the assets in accordance with IFRIC 1 (€1,031 million, see note 10.3), with the balance allocated to profit and loss (€(15) million). It is largely taxable and generated a tax payment of €184 million;

▪In 2021:

▪the 10-year extension of the depreciation period and the reduction in the value of assets at 1 January in line with the decrease in nuclear provisions have led to a lower depreciation charge than for a 40 year depreciation period, estimated at €564 million for the year,

▪the decrease in nuclear provisions at 1 January 2021 led to a €33 million decrease in the cost of unwinding the discount,

▪the amounts of contributions received on jointly-operated power plants transferred to profit and loss decreased by €23 million.

In total, the various effects in 2021 lead to a €559 million increase in the income before taxes, and a €405 million increase in EDF net income.

The significant increase in 2021 in market prices for electricity and gas, which was particularly noticeable during the second half-year and even more pronounced in the final quarter, had various effects on the Group’s financial statements that affect the comparability of certain items, as highlighted in the notes. As an illustration, between 2020 and 2021 spot baseload electricity prices in France increased by an average 240%, and the forward annual contract baseload price increased by around 113%.

The principal items concerned include, but are not limited to, the following:

In the balance sheet:

In the income statement:

In general, the high level of prices had significant upward impacts on sales (see note 5.1.2) and fuel and energy purchases (see note 5.2). The trading margin included in sales benefited from the volatility and high energy prices.

However, the profitability of certain Group entities was penalised by electricity purchases made at very high prices on the markets late in the year, in response to their own supply-demand balance, as these prices could only partially be passed on through sale prices to final customers in 2021, depending on any regulatory systems applicable. This situation particularly affected the France- Generation and supply and United Kingdom segments, and to a lesser extent the Other international segment (Belgium), and France - regulated activities (cost of purchases to cover energy losses) (see note 5).

Note 23 presents the measures announced to date by the French and UK government to limit the impact of the market price rises for consumers in 2022.

The economic disruption caused by the Covid-19 pandemic in 2020 had significant repercussions for many of the Group’s activities in 2020, particularly nuclear power, worksites and services.

For the half-yearly closing at 30 June 2020, then the annual closing at 31 December 2020, in-depth analyses were conducted in the Group’s entities to prepare reliable estimates of the impacts of the pandemic on the Group’s financial statements, based on specific reporting and valuation principles explained in the 2020 half-year financial statements (see note 2.1) and 2020 annual financial statements (see note 1.4.1).

The impact of the Covid-19 pandemic on the Group’s operating profit before depreciation and amortisation was estimated at €(1,479) million at 31 December 2020 and mainly concerned:

▪the France - Generation and Supply segment €(872) million, due to lower nuclear power output, a decrease in demand, and recognition of impairment on trade receivables;

▪the France - Regulated activities segment €(237) million, reflecting lower delivery volumes and the downturn in network connection activity as site work was suspended or slowed down; and

▪the United Kingdom €(182) million, mainly due to the decline in demand.

Even though the Covid-19 pandemic continued to have effects during 2021, its impacts on the Group’s operating profit before depreciation and amortisation at 31 December 2021 are not very significant, diffuse and not easily traceable

Analyses conducted by different Group entities to estimate credit losses on trade receivables at 31 December 2020 led to a €223 million increase to impairment of trade receivables for 2020 resulting from the pandemic, recognised in “Other operating income and expenses” in the income statement. This amount was calculated under the principles presented in note 1.4.1.2 to the consolidated financial statements at 31 December 2020. It comprised €80 million concerning the France – Generation and Supply segment, €58 million for the France – Regulated activities segment, €68 million for the United Kingdom, and €13 million for Belgium.

The risk analyses were updated at 31 December 2021 in view of the recovery levels observed over the year, and this led to recovery of a total €115 million from impairment concerning the various operating segments.

The main significant events and transactions for the Group in 2021 and up to the date of approval of the consolidated financial statements are the following:

▪EDF submitted to the Indian nuclear operator NPCIL the French binding techno-commercial offer to build six EPRs at the Jaitapur site (see the Group press release of 23 April 2021);

▪EDF decided to move Dungeness B into the defueling phase (see the EDF Energy press release of 7 June 2021, and notes 7, 10.8, 15.2);

▪On 13 January 2022 EDF updated its estimated nuclear output in France for 2022 (see the Group press release of 13 January 2022, and note 23);

▪On 7 February 2022 EDF adjusted its estimated nuclear output in France for 2022 (see the Group press release of 7 February 2022, and note 23);

▪On 11 February 2022 EDF adjusted its estimated nuclear output in France for 2023 (see the Group press release of 11 February 2022, and note 23).

▪EDF launched an issue of a Euro-denominated perpetual social hybrid notes on 26 May 2021 with a total nominal amount of €1.25 billion (see the Group press release of 27 May 2021, and note 14.4);

▪EDF launched an issue of a senior green bond with a nominal amount of €1.75 billion euros on 23 November 2021 (see the Group press release of 24 November 2021 and note 18.3.2.2);

▪EDF announced the signature of a new credit facility indexed on social indicators, syndicated with 9 banks on 23 December 2021 (see the Group press release of 23 December 2021, and note 18.4).

▪Edison completed the acquisition of E2i (see the Edison press release of 16 February 2021, and notes 1.3.4.9 and 3.1);

▪EDF Renewables, Enbridge and wpd launched construction of the Calvados offshore wind farm (see the EDF Renewables press release of 22 February 2021, and note 12.3);

▪The EDF group won a 1.5GW offshore wind power project in New Jersey in the United States (see the Group and EDF Renewables press releases of 1 July 2021 and note 12.3);

▪For construction of France’s first offshore wind farm in Saint-Nazaire, production of components was finalised and offshore operations continued (see the Group and EDF Renewables press releases of 28 August 2021, and note 12.3);

▪EDF and Areva reached a settlement agreement (see the Group press release of 30 June 2021, and note 7);

▪EDF put an end to Ecocombust, a project to develop a new class B wood-based fuel (see the Group press release of 8 July 2021, and note 10.3);

▪Framatome announced the completion of its purchase of Rolls Royce Civil Nuclear I&C (see the Framatome press release of 8 November 2021, and note 3.1);

▪Exceptional measures were announced by the French Government (see the Group press release of 13 January 2022, and note 23);

▪EDF signed an exclusive agreement to acquire part of GE Steam Power’s nuclear activities (see the Group press release of 10 February 2022 and note 23).

Apart from the Covid-19 pandemic, the main significant events and transactions for the Group in 2020 were the following:

▪The Group readjusted the cost of the Grand Carénage programme to increase safety and extend the operating life of nuclear reactors beyond 40 years (see the press release of 29 October 2020 and note 10.6);

▪Hinkley Point C project update (see the press release of 27 January 2021 and note 10.6).

▪Disposals:

▪Edison completed the sale of Edison Exploration & Production SpA to Energean (see the Edison press release of 17 December 2020 and note 3.1).

The following main changes took place in the Group’s scope of consolidation during 2021:

On 16 February 2021, Edison announced the completion of the agreement signed on 14 January 2021 with F2i Fondi Italiani per le Infrastrutture to take over 70% of E2i Energie Speciali, a leading company in the Italian wind power sector that is already fully consolidated by Edison, which held the remaining stake of 30%, in application of a specific governance arrangement.

This acquisition increased the Group’s net indebtedness by €0.3 billion.

As it concerned a minority interest and there is no change of consolidation method, the €155 million difference between the sale price and the equity acquired has been charged to Equity (EDF share).

On 25 March 2021, Edison announced the closing of the agreement signed with Sval Energi on 30 December 2020 to sell 100% of Edison Norge AS (the hydrocarbon exploration and production activities in Norway).

The balance sheet items for all of Edison Norge’s operations were reclassified at 31 December 2020 as assets held for sale and related liabilities (see note 3.2).

This operation relates to the Group’s exit from hydrocarbons exploration and production, and followed a first sale by Edison Exploration & Production to Energean, completed in December 2020. The price was based on an enterprise value of $374 million and included a payment of $12.5 million receivable when the Dvalin gas field is commissioned.

The sale of Edison Norge reduced the EDF group’s net indebtedness by €0.3 billion and has no significant impact on the Group’s net income.

On 30 April 2021, Edison announced the closing of the agreement signed with 2i Rete Gas to sell 100% of Infrastrutture Distribuzione Gas (IDG) for €150 million, pursuant to an agreement signed on 14 January 2021.

IDG manages gas distribution networks and plants in 58 municipalities in Abruzzo, Emilia-Romagna, Lazio, Lombardy and Veneto, and is present in 17 minimum territorial areas (Atem) and has 152,000 customers.

The balance sheet items for all of IDG were reclassified at 31 December 2020 as assets held for sale and related liabilities (see note 3.2).

This transaction reduced the Group’s net indebtedness by €0.2 billion and has no significant impact on the Group’s net income.

These two disposals (Edison Norge and IDG) will support Edison’s plan for growth in strategic areas of business: production of renewable and low-carbon energies, energy efficiency, sustainable mobility and value-added services for customers.

Following receipt of the required regulatory approvals, Dalkia announced completion of the sale of 100% of Dalkia Wastenergy (formerly TIRU) to Paprec on 28 July 2021.

This transaction reduced the Group’s net indebtedness by €0.1 billion and has no significant impact on the Group’s net income.

On 9 August 2021, EDF announced completion of the sale of its 49.99% interest in Constellation Energy Nuclear Group, LLC (“CENG”) to its joint venture partner, Exelon Generation, LLC (“Exelon”). The sale followed a Put Agreement entered into by EDF and Exelon in April 20141, in which Exelon granted EDF the right to sell its interest to Exelon at fair market value. EDF exercised the put option in January 20202.

The sale price for EDF’s investment in CENG was $885 million (€750 million), and the transaction reduced the Group’s net indebtedness by the same amount.

This transaction has an impact of €(0.3) million on the Group’s net income.

On 9 April 2021, EDF announced the signature of a binding agreement with the investment fund EIG to sell its 1332MW Combined Cycle Gas Turbine power station and 49MW battery storage system at West Burton B in Nottinghamshire, and the West Burton C development project. On 31 August 2021, further to satisfaction of all necessary conditions precedent, the sale process was completed.

This transaction reduced the Group’s net indebtedness by €0.3 billion and has no significant impact on the Group’s net income.

On 9 November 2021, EDF’s subsidiary Pod Point, a UK company specialising in charging infrastructures for electric vehicles, was admitted to trading on the London Stock Exchange. Its IPO through new share issues raised £120 million. Following these operations EDF, as owner of more than 50%, retains control of Pod Point.

As this was a sale of a minority interest with no change of consolidation method, the non-significant difference between the sale price and the equity transferred was recognised as an increase to Equity (EDF share).

This transaction reduced the Group’s net indebtedness by €0.1 billion.

On 8 November 2021 Framatome completed the purchase of Rolls Royce Civil Nuclear Instrumentation and Control (I&C), for which the contract had been signed on 7 December 2020.

The acquisition of Rolls-Royce Civil Nuclear’s products and technologies (such as Spinline, Rodline and Hardline) will enable Framatome to capitalise on its engineering expertise, broaden its industrial footprint, strengthen its ability to serve customers and expand its nuclear I&C business across the world.

As control was acquired through this acquisition, the €92 million difference between the purchase price and the equity acquired was recognised as goodwill.

On 14 December 2021, Edison and Crédit Agricole Assurances completed the transaction signed on 3 December 2021. Crédit Agricole Assurances has thus become Edison’s long-term financial partner, acquiring 49% of Edison Renewables’ platform and participating in the development of its wind and photovoltaic production. The transaction valued Edison Renewables at more than €2 billion and followed the acquisition of 70% of the capital of E2i on 16 February 2021.

Edison retains full control over the company’s business and governance and will lead its development in renewable energies in line with the decarbonisation targets fixed by the Italian PNIEC (National Integrated Energy and Climate Plan) and the European Green Deal. Edison will continue to fully consolidate Edison Renewables, which has renewable energy assets with a total capacity of 1.1GW, including approximately 1,000MW of wind farms located in the windiest areas of the country.

As this was a sale of a non-controlling interest with no change of consolidation method, the €455 million difference between the sale price and the equity transferred was recognised as an increase to Equity (EDF share).

This transaction reduced the Group’s net indebtedness by €0.9 billion.

All the transactions completed as part of the disposal plan in 2021 reduced the Group’s net indebtedness by a total €2.8 billion.

The following changes in the Group’s scope of consolidation took place during 2020:

In application of IFRS 5, assets held for sale and related liabilities are shown below:

At 31 December 2021, assets held for sale and related liabilities concern the following:

▪the residual amount of assets corresponds to the price supplement for the Dvalin gas project (E&P in Norway) and Cassiopea (E&P in Italy);

▪the residual amount of liabilities corresponds to provisions on the Energian contract.

The decrease in assets held for sale and related liabilities is explained by:

▪the sale of Edison Norge in March 2021 (see note 3.1) which represented assets of €331 million and liabilities of €42 million at 31 December 2020;

▪the sale of Infrastrutture Distribuzione Gas (IDG), a fully-owned subsidiary of Edison (see note 3.1) which represented assets of €98 million and liabilities of €7 million at 31 December 2020;

▪the sale of the shares held in CENG (see note 3.1) in August 2021 which represented assets of €1,811 million at 31 December 2020.

In the 2020 financial statements, the line “Net income of discontinued operations” comprised Edison’s E&P operations (excluding the Algerian and Norwegian operations), and impairment recognised in respect of these assets.

As these E&P operations were sold in December 2020, no net income of discontinued operations is presented in 2021 except for the estimated adjustments to prices or warranties related to the sale transaction (see note 1.4.2 to the consolidated financial statements at 31 December 2020).

The principal profit and loss indicators for the E&P operations (excluding the Algerian and Norwegian operations) in 2020 and 2021 are as follows:

The Group’s business sectors are defined as follows:

The companies and subgroups included in the EDF Group consolidation are listed below.