EDF / 2018 Reference document

PRESENTATION OF EDF GROUP Group strategy

Development of renewable energies and New Nuclear

Transformation 1.3.2.4 Health and safety, digital and new work practices, responsibility and simplification, skills and the recognition model are the five major levers of the Group’s transformation. The Group adapts its managerial practices by streamlining its organisations and modus operandi, as illustrated by a number of concrete examples since 2016 (introduction of fixed numbers of working days for managers, boosting career paths and promoting internal mobility and promotional training, streamlining and simplification of Group policies, etc.) and other more recent examples, such as the digital signature of contracts and the simplification of financial reporting. In 2018, EDF also signed a new global agreement on Corporate Social Responsibility (“CSR agreement”) which includes improvements in favour of diversity and other societal improvements to the benefit of Group employees. Moreover, the promotion of innovation, based on experiments (“labs” and co-construction platforms with customers) and on an open innovation programme will contribute to this transformation. The creation of EDF Nouveaux Business, a department in charge of “new businesses”, has complemented the skills EDF is gradually developing in order to meet the challenges in this field. It will use the levers of incubation, investment in external start-ups (through the Electranova funds) and technological partnerships (see section 1.4.6.1.3 “EDF Pulse Expansion”). The digital transformation involves employees and internal modus operandi, customer relations and the management and design of industrial assets. The creation at end 2016 of a Transformation and Operational Efficiency Department, which combines the Group’s activities relating to information systems, purchasing, real estate and shared services, reflects the Group’s desire to speed up in this field. Since several years, the EDF group has placed the focus of digital transformation at the strategic level and has carried out an in-depth review of its internal organisation and training. In the field of data, the Group has adopted a data management policy and set up a “data analytics” plant for nuclear, thermal and renewable electricity generation, with the pooling of expertise, inaugurated in April 2018. Performance improvement has always been a priority for the EDF group. The current economic and financial context further increases the urge for such improvement. The Group is strengthening control of its costs to bring them into line with its environment. The approach is adjusted depending on the scopes involved (cross-disciplinary functions, operating entities, etc.) and a number of projects have already produced results in terms of reduction of operating expenses, optimisation of the working capital requirement and improved management (cash-based management, project management team, cyber-security management), with the aim of enhancing the competitiveness of support activities and giving businesses performance levers. Lastly, “Let's Talk Energy”, a collective intelligence initiative to support transformation, was initiated in the first half of the year to harness the intelligence of EDF employees towards the construction of the Group's medium and long term scenarios. In the context of the debate on energy in France, this initiative will be continuing (see section 3.2.5.5 “Listening to employees and talking about energy”). Sustainable development 1.3.2.5 As part of its CAP 2030 strategic plan, EDF has made a commitment to corporate responsibility, in connection with the UN's new sustainable development programme (2015-2030), through six Corporate Responsibility Goals (see section 3.1 “EDF's commitments in the area of sustainable development”). The Group has committed to presenting annual results that lay down a roadmap for the Group’s businesses and subsidiaries to serve a profitable and responsible development: climate change: going beyond the requirements of the +2°C goal set by COP 21 ■ by further reducing the Group’s CO 2 emissions, which are already at remarkably low levels compared to the Group’s main European counterparts;

At the same time, the EDF group is actively pursuing its development in renewable energies (with the objective of doubling the installed capacity of the Group's ENR and hydropower fleet from 28GW in 2014 to 50GW in 2030) and in New Nuclear. With regard to renewable energy, the new means developed will be essentially onshore and offshore wind power, solar energy and hydropower. In December 2017, EDF announced the Solar Plan: a development plan of solar energy, aimed at installing 30GW of solar power in France between 2020 and 2035. The development of these assets outside France is undertaken in line with the EDF group’s international strategy. In this respect, the Group strengthened in 2018 its integration in the renewable energy industry by developing new projects, not only in France, but also in the United States, the UK, Germany, Middle East, Brazil, Chile, India and China (see section 1.4.1.5.3 “EDF Renewables"). As regards New Nuclear, the main issues are: the commissioning of Flamanville 3 and of Taishan in China (the 1 st unit of which ■ was commissioned in December 2018); the building and operation of two EPR reactors at Hinkley Point, for which the ■ final contracts were signed on 29 September 2016 by EDF, CGN and the British Government; the integration of Framatome, 75.5% owned by EDF since 31 December 2017 ■ (see section 1.1 “History and development of the Company”); the preparation of the reactors of the future with the EPR 2 project (as a ■ follow-up to the New Model EPR project), conducted jointly with Framatome; in particular, the working programme with the French government, aimed at reaching the decision to launch, if appropriate, a programme to build new nuclear reactors in France; the development of the EPR for the export market (in particular, in India). ■ Development of a carbon-free hydrogen offer Lastly, EDF, actively involved in the hydrogen field, mainly with its R&D, is preparing to develop a competitive carbon-free hydrogen offer in the medium term, primarily for industrial and heavy mobility customers, which are sectors difficult to decarbonise. To this end, an industrial partnership and equity investment agreement was signed in 2018 with McPhy, a specialist in production equipment (by electrolysis), storage and distribution of hydrogen (investment of €16 million by “EDF Pulse Expansion”). International expansion 1.3.2.3 The EDF group wants to be a key player in the energy market in France and in its core countries in Europe (United Kingdom, Italy, Belgium) by playing a role in energy security, the enhancing of economic competitiveness and the European economy low carbon transition, in line with public policies. The Group is also expanding outside Europe, by pursuing three long-term objectives: to position itself through an industrial and commercial presence in cross ■ industries in three additional countries/geographical areas (including South America, Western and Central Africa, the Middle-East, India); to channel its investment choices with a view to contributing to the global energy ■ transition and develop new businesses on a commercial basis; to significantly increase its international business (outside Europe) by 2030. ■ EDF is thus deploying a targeted approach in geographic terms and steering its investment choices by giving priority to low carbon generation projects, in particular hydraulic, wind and solar generation projects as well as energy services and engineering activities. It is expanding storage capacities and developing gas production projects in areas where these are key factors for energy transition, in line with the Group's CO 2 path. Micro-grids, small adapted grids with a high renewable content for areas that are isolated, are also being explored in particular thanks to the MASERA demonstrator built in Singapore.

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EDF I Reference Document 2018