EDF / 2018 Reference document

1.

PRESENTATION OF EDF GROUP Group strategy

human development: incorporating the best practices of industrial groups in the ■ field of human development: health & safety, gender equality and internal promotions; energy poverty: offering all fragile populations information and solutions to ■ support them in their energy consumption and help them assert their rights; energy efficiency: innovating through digital energy efficiency solutions so that ■ customers can optimise their consumption; dialogue and consultation: organising systematically and worldwide an initiative ■ of dialogue and consultation which is transparent and open for each new project; biodiversity: launching a positive approach to biodiversity, not merely being ■ aware of or decreasing the impacts of our activities, in order to have a positive effect. Research & Development to support 1.3.2.6 energy transition Research & Development (R&D) has a crucial role to play in developing low carbon solutions, all the while reinforcing the safe and economically efficient operation of existing and future facilities. See section 1.6 “Research & development, patents and licences”. CAP 2030 success factors 1.3.2.7 CAP 2030 enables the Group to develop a portfolio of assets focused on low carbon, renewable and nuclear energy, services for customers, decentralised energy solutions. The key success factors of CAP 2030 are: the expansion of the range of offers and exemplary customer relations; ■ the management of major projects, in particular the new models for nuclear ■ reactors, the “Grand Carénage” programme or the development of Nuclear New Build in the United Kingdom; the selectiveness of investments in projects; ■

cost control; ■ the transformation of the Group’s modus operandi and the commitment of all. ■ In this context, the implementation of the Group's performance plan announced on 22 April 2016 is well under way at end-2018: a reduction in operating expenses (1) of €0.96 billion from 2015 to 2018, with ■ target savings of €1.1 billion from 2015 to 2019; an asset disposal plan of approximately €10 billion between 2015 and 2020, ■ already achieved in 2018; strengthening of the balance sheet via a capital increase totalling €4.0 billion ■ and the option of dividend payment in shares in respect of financial years 2015-2016-2017, chosen by the State in particular (cumulative €5 billion). The Group is pursuing its investment programme in line with its CAP 2030 strategy (see section 1.3.3 “Investment Policy”). Moreover, the Group is continuing the work on its modus operandi through its transformation programme, “accountability, simplification and innovation/digital technology”: structuring of the Group's operations into 20 Business Units, and overhauling of ■ management indicators; professionalisation of project managers, with the setting up of an external ■ certification programme; simplification of some processes: purchasing, training, reporting, etc.; ■ development of innovation, with the creation of new services in start-up mode ■ supported and financed by “EDF Pulse Expansion” (see section 1.4.6.1.3 “EDF Pulse Expansion”), support for participative innovation, with more than 30 places of innovation throughout the Group and the internal and external EDF Pulse Awards; deployment of a digital strategy: cultural transformation with the new season of ■ the “Y Project” (participation of 30 young people), increasing use of collaborative tools and structuring to harness data to support customers, and to optimise maintenance and operating costs.

At comparable scope and exchange rates. At constant pension discount rates. Excluding change in the operating expenses of the service activities. (1)

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EDF I Reference Document 2018