EDF / 2018 Reference document

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PRESENTATION OF EDF GROUP Description of the Group's activities

In the medium power segment, EDF relies on its historic partnerships with China (CGN) and Japan (MHI). The Group intends to take advantage of market opportunities, with two medium power technologies (UK HPR1000 with CGN and ATMEA1 with MHI). For the UK HPR1000 technology, EDF and CGN are collaborating through a joint venture (GNS) for the certification of this technology by the British safety authority For all these new development projects outside France and the UK, the EDF group aims to position itself as a technology supplier and an industrial partner. It could in this respect be exposed to risks related to the management of the projects but without impacting on its balance sheet as an equity investor. The digital transformation of nuclear 1.4.1.2.3 engineering (SWITCH programme) Launched in July 2017, this programme feeds into EDF's CAP 2030 strategy, under sections related to managing current new nuclear projects, extending the operating life of the fleet in operation, expanding abroad and embracing digital transformation. It is a multifunctional programme involving all EDF players in the nuclear sector, including Framatome. The programme seeks to mark a turning point in engineering by: transforming and simplifying processes and methods to better grasp the ■ complexity of large-scale industrial projects throughout their lifecycle by applying systems engineering standards, among other methods; digitise processes using a data-centric approach based on an integrated, ■ collaborative and industrial high-performance information system within an extended enterprise model. In this context, the call for tenders launched in 2017 led to the selection in the 2 nd quarter of 2018 of Dassault Systèmes as supplier of the PLM (Product Lifecycle Management) solution and Cap Gemini as integrator covering PLM (Plant Life Management) tools. The SWITCH programme entered into its operational phase in the 4 th quarter of 2018 with the launch of transformation works covering the scopes including ESPN (nuclear pressure equipment), RTI (engineering technical baseline), EPR 2 and HPC. Framatome 1.4.1.3 Framatome is a major international player in the nuclear energy market, whose activities cover the design and manufacture of the nuclear steam supply system, as well as the design, supply and installation of equipment, instrumentation and control (I&C) systems and fuel. Framatome supports its customers through to the commissioning of their power plants and offers all related services. With over 14,000 employees worldwide, Framatome's expertise helps its customers improve the safety and performance of their nuclear plants and achieve their economic and societal goals. Framatome has a significant industrial presence in France (17 sites), Germany (4 sites), the United States (7 sites) and China (8 sites). The company also has an industrial or sales presence in South Africa, Argentina, Brazil, Bulgaria, Canada, South Korea, Spain, Hungary, Japan, Czech Republic, United Kingdom, Russia, Slovakia, Kazakhstan, Sweden and Ukraine. Framatome, owned by EDF (75.5%), Mitsubishi Heavy Industries (MHI - 19.5%) and Assystem (5%), has been included in the consolidated financial statements of the EDF group since 31 December 2017. Framatome's strategy, market 1.4.1.3.1 and commercial opportunities Framatome's strategy is based on its core business i.e. nuclear steam supply systems, and aims to offer safe and competitive solutions, industrialise them and carry out the projects as part of an industrial sector. Framatome supports its development by leveraging five strategic axes: proven and sustainable expertise, performance in delivering, agile organisation, safe and competitive solutions and international development.

The company's customer base includes leading international energy players and it works on over 250 reactors in the world. With Framatome's experience in reactors of all types of technologies it can meet the specific needs of its customers worldwide. With a current global fleet of 450 reactors representing close to 392GWe in service in 32 countries (1) , and new forthcoming nuclear capacities, the nuclear market offers opportunities in the field of fuel, modernisation and services. Framatome's goal is to expand its market share through a differentiated offer and export partnerships. Framatome's activities 1.4.1.3.2 With an experience built up over 60 years in the design and construction of nuclear plants, Framatome is present at every stage of the process, across all types of reactor technologies. With its highly skilled engineers and operators, the company has completed more than 90 nuclear power plant projects around the world to date. ngineering Framatome's experts are specialised in the design of the principal items of equipment making up nuclear steam supply systems, and that includes mechanics and metallurgy, neutronics, the scientific calculation work, fluid mechanics and risk and nuclear safety analysis. Framatome's engineering services include the heart of the power plant, referred to as the “nuclear island”, and the main components of the reactor’s primary circuit such as steam generators, pumps, pressurisers, as well as the nuclear reactor pressure vessel itself. Its specialists and technicians are actively involved in major new nuclear power plant construction projects such as the new EPR reactors. Equipment manufacturing Framatome components equip more than 100 power plants in 11 countries. At its plants in Le Creusot, Saint Marcel and Jeumont, in France, Framatome's manufacturing plants produce the key equipment for nuclear steam supply systems for electrical utilities all over the world to equip new-build power plants or to replace items of equipment at power plants in operation. The company manufactures advanced technology heavy equipment (reactor pressure vessels, steam generators, etc.) and mobile components (reactor coolant pumps and control rod drive mechanisms). Since 1970, around 10,000 components have been produced at its manufacturing sites by Framatome's forge workers, machinists, materials technicians, mechanical test technicians, boilermakers and welders. In 2018, the company continued to increase production at its Le Creusot plant in Burgundy, which specialises in the manufacture of heavy components for the nuclear industry, after receiving the green light at the end of January from the French nuclear safety authority (ASN) and EDF to resume the manufacture of forged components for the French nuclear fleet. The Le Creusot plant will also supply the main forged components for new construction projects abroad, in particular for the EPR reactor project of Hinkley Point C in the UK, as well as parts for replacement components intended for French reactors. Instrumentation & control systems Framatome designs, manufactures and installs safe nuclear instrumentation solutions and instrumentation & control systems for plants in operation and new builds. Its solutions range from safety instrumentation & control systems to automation systems for normal operation, from nuclear instrumentation to lifecycle solutions, from simulators and global I&C engineering expertise to human-machine interface design and human factors engineering. Framatome has installed over 300 complete instrumentation and instrumentation & control systems on reactors of all types worldwide. In 2018, Framatome finalised the modernisation of the digital instrumentation & control system of the Borssele plant in the Netherlands, operated by EPZ (Elektriciteits-Productiemaatschappij Zuid-Nederland). The project started in 2014 and included the installation of a new reactor control and limitation system to monitor the operation of the plant. Framatome also provides for reactor 3 of the Chinese plant of Tianwan, a complete instrumentation & control (I&C) system, based on its proven TELEPERM XS platform, the corresponding instrumentation, I&C electrical supply cabinets and operational I&C system.

Source: CEA – Élecnuc – 2018 Edition, figures at 31 December 2017 (http://www.cea.fr/english/Documents/scientific-and-economic-publications/Elecnuc-2018.pdf) (1)

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I Reference Document 2018