EDF / 2018 Reference document

RISK FACTORS AND CONTROL FRAMEWORK Dependency factors

EDF does not consider itself to be dependent on the GE Group, which is subject to competition with regard to most of its activities. EDF has nonetheless sought to maintain its interests in the nuclear field following the purchase by General Electric of ALSTOM’S Energy division. The main challenge for EDF is twofold: ensure, at an acceptable cost and until the end of each unit’s lifespan, the ■ industrial capacity necessary to maintain under operational conditions and extend the lifespan of the nuclear generation fleet operated by EDF in France and the United Kingdom including the Flamanville 3 and Hinkley Point C EPR reactors; ensure the availability for future EDF nuclear projects of turbine offers under ■ excellent technical and economic conditions.

Preservation of these strategic interests relies on framework agreements and the creation of the joint GEAST nuclear subsidiary dedicated to nuclear power plant machine room activities. The agreement between the French State, ALSTOM and General Electric (GE) signed on 21 June 2014 provides for a joint venture between GE and ALSTOM (GEAST), of which ALSTOM will hold 50% of the stake less one vote. GEAST is expected to develop ALSTOM’s nuclear activities on an exclusive and worldwide basis, as well as ALSTOM’s steam (non-nuclear) business in France alone. The French State holds a “golden share” in the joint venture, is represented therein by a director and has veto rights on certain governance issues. In 2018, GE acquired ALSTOM's shares in GEAST at ALSTOM's request. It is now a wholly owned subsidiary of GE. The rights of the State and the associated governance procedures remain unchanged. A steering committee with which EDF is associated monitors GEAST's activities and the proper implementation of these agreements.

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EDF I Reference Document 2018