EDF / 2018 Reference document

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ENVIRONMENTAL AND SOCIETAL INFORMATION – HUMAN RESOURCES Further human resources considerations

A fair and competitive global 3.4.3.1 compensation policy Total compensation policy is guided by four principles that are reviewed by the Group Human Resources Division: competitiveness with the external market; ■ consistency and internal equity; ■ financial sustainability; ■ communication. ■ It is based on fixed compensation and individual and/or collective variable compensation which serves to recognise the achievement of objectives, connected to the companies’ economic results. There is a direct and visible link between the employee’s contribution and the related compensation. The Group’s companies guarantee the meeting of the minimum legal or professional requirements in each country and the absence of discrimination. In the “communication” section, each employee receives information on the compensation rules and arrangements with the utmost transparency in accordance with the principles detailed above. Each EDF group employee must have visibility on their total compensation. Accordingly, in France, EDF, Dalkia and Enedis have offered each of their employees a full individual review of their annual compensation and its components. Variable compensation plans to boost performance Within the Group, most employees have individual or collective performance-based variable compensation. The terms and conditions of this variable compensation differ from one Group company to another, based on historical agreements and the applicable regulations. At EDF Energy (in the United Kingdom), variable compensation for individual performance applies to 20% of employees, however more than half of EDF Energy’s employees receive a bonus for their collective performance. At Dalkia (France) performance-based variable compensation was reviewed and recognises individual and collective performance for managers. At Edison (Italy), all employees, excluding executives, benefit from collective performance-based compensation schemes, based on profitability and productivity criteria (Premio di Risultato & Premio di Produttivita). At EDF Luminus (Belgium), managers and most non-managers are eligible for individual and collective performance-based compensation schemes. The China Division also introduced performance-based individual variable compensation for employees based in Beijing, designed to stimulate and recognise performance. At EDF, all employees may receive performance-related variable compensation. For projects and their management, compensation is based on collective performance alone. In 2017, the variable share represented 2% of average basic pay. For managers the average figure is 8% of the annual salary, so the Company is on a par with other major French companies. For managers, the variable share is based on both individual and collective targets whose weighting increases with the position within the Company. EDF and Enedis pay special attention to the professional training of their managers on issues of compensation. In France, EDF and Enedis employees benefit from a profit-sharing scheme, introduced more than 20 years ago in the case of EDF and for Enedis when it became a subsidiary. Most of the Group’s European subsidiaries have similar schemes. EDF and Enedis employees can choose either to receive payment and/or to invest it into either the Group Corporate Savings Plan or the Group Collective Retirement Saving Plan (see below). In a restrictive economic environment, the policy of an employer contribution for sums invested has been maintained The EDF and Enedis profit-sharing agreements are three-yearly and require the profit-sharing amount payable to be set based on the meeting of national objectives

reflecting the different components of the companies’ performances (economic, business lines, social and environmental). The most recent EDF three-year agreement (signed in 2016 for the 2017-2019 period) aims to better link profit sharing to EDF performance. It includes the following five national performance criteria: development of Group cash flow, which is more directly linked to employee activity than EBITDA, electricity generation, customer satisfaction, online -health and safety training of employees and a sustainable development/digital criterion (reduction of printed paper and increase in teleconferencing). A comprehensive employee savings policy The Group corporate savings plan It is open to employees of EDF and of the Group’s French companies in which EDF owns directly or indirectly at least 40% of the share capital and which have signed up for the Group Corporate Savings Plan. Five varied mutual funds, including a socially-responsible investment fund, a solidarity mutual fund and the “EDF Share” fund, are open to subscriptions. The EDF group Corporate Savings Plan totalled €4.7 billion at the end of 2018. Profit-sharing, as well as individual payments and transfers from the Time Savings Accounts that employees make to the Group Corporate Savings Plan, are matched by the Company under conditions negotiated within each company. Collective Retirement Savings Plan The EDF group Collective Retirement Savings Plan is open to employees of EDF and of the Group’s French companies in which EDF owns directly or indirectly at least 40% of the share capital which have signed up for the Collective Retirement Savings Plan. Two mutual investment funds are offered to employees: a solidarity mutual fund and the “Cap Horizons” umbrella fund, offering targeted management of the savings invested depending on retirement age. The EDF group’s Collective Retirement Savings Plan totalled approximately €819 million at the end of 2018. Profit-sharing, as well as individual payments and transfers from the Time Savings Account that employees make to the Collective Retirement Savings Plan, are matched by the Company under conditions negotiated within each company. Time Savings Account Time Savings Account agreements have been signed within the Group’s principal French subsidiaries, specifically EDF and Enedis. As at 31 December 2018, the total number of hours saved in the time savings account by EDF employees was valued at €754.8 million, and at €209 million for Enedis employees. This negotiated scheme enables employees who want to take leave to receive compensation corresponding to the saved time. It is also possible to monetise the time saved based on the current Time Savings Account agreement or make transfers to the Group Corporate Savings Account and the Collective Retirement Savings Plan. Employee shareholding On 31 December 2018, current and former employees of the EDF group held a total of 34,679,546 EDF shares, i.e., 1.15% of the share capital, rounded up to 1.2%. This number includes 30,453,101 shares (representing 1.01% of the capital) based on the definition of employee shareholdings under Article L. 225-102 of the French Commercial Code (shares held by EDF’s or EDF group’s employees and former employees through the “Actions EDF” FCPE). This number includes, secondly, nearly 4,226,445 shares, i.e. 0.14% of capital, held directly or indirectly, without a non-transferability period or after the non-transferability periods, by current or former employee shareholders. Most of the shares held by employees are held via the Group Corporate Savings Plan. In accordance with the law, the dilution of the State’s stake in the EDF capital triggers the obligation to carry out an offer of EDF shares reserved for employees (ORS), and, under certain conditions, for retired and former employees.

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EDF I Reference Document 2018