EDF / 2018 Reference document

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PRESENTATION OF EDF GROUP Description of the Group's activities

continuation of investigating quality discrepancies in some of the manufacturing ■ records for forged parts (the records are said to be “crossed” or “uncrossed”) at AREVA NP’s Creusot Forge plant. The comprehensive review of the manufacturing records of the components installed on the nuclear reactors in operation gives rise to a summary report for each reactor. This report is sent to the ASN for examination at the latest two months before the restart of the reactor following its planned statutory outage. As is the case before each restart of a reactor, the ASN then issues its decision on the authorisation to restart. End-2018, summary reports for the 58 reactors in operation were sent to the ASN within the prescribed time periods. At end-January 2019, 54 reactors had obtained the green light from the ASN to restart confirming the operational safety of the concerned components. Following the processing of these irregularities on forged parts, EDF, in accordance with the ASN's decision No. 2017-DC0664 of 15 December 2017, extended the quality review of documents to files on parts moulded at the Creusot Loire plant. None of the anomalies identified during the examination of the 504 manufacturing files concerned compromises the integrity of the equipment and their operational safety. A summary report was sent to the ASN at the end of 2018. As regards the specific case of No. 3 steam generator in Fessenheim 2, with regard to which an irregularity was found in 2016 in the forging record of the lower part and for which a comprehensive analysis report was sent to the ASN in early July 2017 with the results of the programme of additional tests conducted in autumn 2016, a meeting of the permanent experts’ group was held on 27 February 2018 resulting in a favourable opinion on returning the Fessenheim 2 steam generator in question to operation. On 12 March 2018, ASN lifted its suspension of the pressure test certificate of a steam generator installed on Fessenheim reactor 2, considering that the anomaly did not compromise its serviceability and that its compliance with the regulations was thus demonstrated. On 23 March, the Fessenheim site received criticality authorisation for reactor 2. It was returned to the network on 9 April 2018: examination and treatment of the damage to the thermal sleeves (mechanical ■ part under the vessel head of reactors) found at the end of 2017 on the Belleville 2 reactor. Following a study of the extent of the damage observed, a repair record was drawn up and implemented at Belleville 2. It therefore restarted on 12 April 2018 and checks were carried out on the other reactors of the Fleet during the planned unit outages. For certain 1,300MW reactors, inspections showed that repairs were necessary on the current unit outages, leading to extensions of these outages. Overall in year 2018, this had a total impact of about 10TWh. All reactors will have been checked by the end of April 2019; the early preventive cleaning of Dampierre 4 steam generators, for which ■ preventive inspections were carried out during the planned unit outage revealed that the clogging was worse than expected on spacer plates 5 of the 3 steam generators. EDF has also continued its structuring process to guarantee the compliance of the equipment of its nuclear facilities. EDF has thus presented to the ASN an action plan so as to prioritise and arrange for the treatment of anomalies taking into account safety issues. Its implementation involves all nuclear power plants and national engineering units. Investment programme for the existing nuclear fleet in France EDF’s industrial strategy is to operate the existing nuclear fleet well beyond 40 years under the best conditions of nuclear safety (integrating, in particular, post-Fukushima modifications), of environmental safety and protection, which requires to keep on performing significant maintenance operations over the

2014-2025 period. The “Grand Carénage” programme was implemented, so that the Group can integrate, with its industrial partners, the significant amount of work to be done on the fleet. On 22 January 2015, EDF’s Board of Directors approved in principle a major overhaul programme (the “Grand Carénage”) aimed at refurbishing the French nuclear fleet, enhancing reactor safety and, if conditions allow, continuing their operation. The authorised investment amount stood at a maximum of € 2013 55 billion (€60 billion in current euros) in total over the 2014-2025 period for the 58 reactors currently operating (1) . For the existing nuclear fleet, the programme covers both usual maintenance spending and investments required to extend the lifespan of equipment (replacement of the steam generators, VD4 900, VD3 1300). The optimisation work undertaken since (reductions and postponements) led to a downward revision of the overall cost of the programme to € 2013 45 billion (or €48 billion in current euros) over the 2014-2025 period. This revision is largely a result of continued optimisation efforts regarding the adopted technical solutions and component replacement strategies and greater precision in their application by integrating the capacities of the industrial base, which enabled certain expenses to be postponed. A date for the closure of the Fessenheim plant before its fourth 3.8 billion (or €4.7 billion in current euros) of spending was postponed to after 2025 for total savings of close to € 2013 10 billion (or €12 billion in current euros) from initial estimates. The contribution of postponements to this overall revision was therefore revised slightly up compared with 2017. Although additional savings have been identified regarding the ten-year inspections and the application of feedback from Fukushima (for a total of € 2013 6.2 billion or €7.2 billion in current euros), the replacement of steam generators and major components (for a total of € 2013 4 billion or €4.6 billion in current euros) and other engineering projects (for a total of € 2013 1.8 billion or €2.1 billion in current euros), they were offset by an increase of approximately €2 billion in current euros. Indeed from 2019 onward, usual maintenance spending, primarily due to better identification of expenses for regular inspections will be recognised as investments. In order to complete the programme, a separate entity was created, the “Grand Carénage”. The programme’s sponsor is the Nuclear and Thermal Fleet Department (DPNT) which approves the programme’s scope, currently broken down into 22 projects, and financial trajectory. The programme’s supervision is taken care of by the Nuclear Generation Division, which defines the content of the activities. Project management is handled by the Programme Director assisted by the project managers over the life of the project in all areas: deadlines, quality control, financial trajectory. The Board of Directors examines the main investments for each major category of projects whose chief characteristics are presented to it, approves contracts or deals above a predefined amount, and conducts the annual review of the programme’s implementation on the basis of indicators showing the extent of its physical and financial progress, what remains to be completed and the final costs. This industrial programme is being gradually implemented in compliance with the objectives of Energy transition for green growth Law, multi-year energy programmes and the opinions and orders of the ASN as well as the procedures for authorisation for reactors to run for more than 40 years (see section 1.4.1.1.5 “Preparing for the future of the nuclear fleet in France”). Under this programme, the planned renovation or replacement of major components of power stations such as generators, transformers or steam generators will continue. ten-year inspection was also taken into account. By dint of these industrial measures, around € 2013 euros) in costs was reduced and around € 2013 6 billion (or €7.5 billion in current

hT e figures presented by the French Cour des Comptes in its report of 10 February 2016 cover a longer time horizon, up to 2030, and included, beyond the investment, operating (1) and maintenance expenses. Both assessments are consistent, as stated by the Cour des Comptes in its report. Indeed, among the overall estimates calculated by the Cour des Comptes and amounting to close to €100 billion for the 2014-2030 period, the investment -expenditures estimated at €74.73 billion should be distinguished from the operating expenditures estimated at € 2013 25.16 billion. Within the € 2013 74.73 billion of investment expenses between 2014 and 2030, € 2013 55 billion are dedicated to the 2014-2025 period, which allows the two estimates established by the EDF group and the Cour des Comptes to be connected.

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I Reference Document 2018