EDF / 2018 Reference document

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PRESENTATION OF EDF GROUP Description of the Group's activities

This activity is driven by commissioning new plants and choosing which facilities to operate on a case-by-case basis according to technology and region. The aim is to achieve maximum efficiency in every facility in conjunction with manufacturers throughout the expected or extended useful life of equipment. Accordingly, EDF Renewables recently set up a predictive maintenance oversight centre (e-Diagnostic Center) drawing on specific in-house expertise centralised and coordinated with the EDF group's R&D Department. It complements the facility remote monitoring and control system made up of three real-time oversight centres in Colombiers (France), Emden (Germany) and San Diego (California). Since 2017, EDF Renewables owns via its subsidiary REETEC GmbH a subsidiary specialising in the operation and maintenance of offshore wind farms, the German firm Offshore Wind Solutions GmbH (OWS). OWS operates and maintains the BARD Offshore 1 wind farm (400MW) located 95km off the German coast in the North Sea. EDF Renewables owns several European maintenance centres: in Italy, Poland, Belgium, Germany and France. These operation-maintenance units are designed to place technical teams as close to wind or solar farms as possible to ensure faster response times and thus operational performance. Decentralised Energy France The Group operates as an integrated player in decentralised solar photovoltaic power generation, involved in the design, construction, operation and maintenance of rooftop installations. EDF ENR, a wholly-owned subsidiary of the Group, markets and installs solar photovoltaic power solutions in France for residential and business customers and local authorities. After embracing self-consumption with the “Mon Soleil et Moi” (“My sun and me”) service aimed at residential households, the Company also launched the “Notre Soleil et Nous” (“Our sun and us”) service aimed at co-owners, social housing providers and all operators of apartment buildings wanting to generate and consume their own electricity. In addition, EDF Renewables Technologies, a wholly-owned subsidiary of EDF Renewables, is present in the upstream segment. It owns 100% of EDF ENR PWT (Photowatt brand) which designs and manufactures photovoltaic modules using crystalline silicon technology with various applications ranging from residential equipment to land-based solar farms. In early 2018 Photowatt announced a development project based on a new industrial model on the one hand and its applied R&D on the other hand. The new industrial model would specialise in the low-carbon production of high-tech silicon ingots and wafers. The generation capacity would gradually reach over 500MWp a year versus the current capacity of 50MWp of Photowatt's existing facility at Bourgoin-Jallieu (38) in the Auvergne-Rhône-Alpes region in France. Alongside this joint project, Photowatt would concentrate on its R&D activities, renamed Photowatt Lab, in conjunction with the EDF group's R&D Department and solar energy research centres such as INES or the Photovoltaic Institute of Ile-de-France region with a view to fostering the emergence of new technology in the field of photovoltaic cells and modules and testing it in pre-industrial conditions. United States Following the acquisition in 2016 of Global Ressources Options, Inc. (groSolar), which specialises in the installation and sale of photovoltaic plants for local authorities, service companies and industrial players, in 2018, EDF Renewables North America entered into a strategic partnership with EnterSolar, a leading supplier of solutions for the decentralised generation of solar energy for commercial and industrial (C&I) customers. This partnership concerns the EDF Renewables equity investment in EnterSolar to the tune of 50%. It will allow both companies to offer C&I customers the most comprehensive range of solutions for “behind the counter” decentralised electricity generation and to capitalise on the sharp growth in demand for decentralised generation solutions from the C&I sector. China In 2018, EDF Renewables together with Asia Clean Capital (ACC), one of the main developers in China of rooftop photovoltaic installations for local businesses and multinationals, launched a joint venture aimed at building and operating a portfolio of decentralised solar energy projects on rooftops in China. The joint venture will leverage the local reputation of ACC as a key decentralised solar

player in the country and the international expertise of EDF Renewables in decentralised solar power and in self-consumption solutions for industrial players. Storage sector In 2018, the Group launched an Electricity Storage Plan which provides for the installation of 10GW new storage facilities for electricity systems by 2035, to which EDF Renewables contributes. EDF Renewables, via its subsidiary EDF Renewables Technologies, is the controlling shareholder of EDF Store & Forecast, a wholly-owned Group subsidiary. EDF Store & Forecast, founded in March 2014, markets software solutions to forecast, plan and optimise automatic control of renewable energy generation and storage. In a context marked by the strong growth of renewable energy generation and by the closure of large-scale electrical facilities, battery storage technology, combined with a smart control system, helps smooth out the generation of electricity of the national grid. The storage system can be activated on the grid in order to respond quickly to fluctuations. In this context, through its subsidiaries, EDF Renewables develops innovative storage systems in the US, the United Kingdom and France. In 2015, EDF Renewables had announced the commissioning, by its EDF Renewables North American subsidiary, of an innovative storage system that combines an energy storage battery and a computerised monitoring software. The McHenry facility provides nearly 20MW of capacity (40MW of dynamic capacity) and helps monitor an energy reserve to stabilise the frequency of the electricity grid at a local level. In 2018, EDF Renewables commissioned the battery storage system with a capacity of 49MW located in the West Burton B plant in Nottinghamshire in the UK for which it had won a call for tenders in 2016. This facility is the most important project of the new frequency control system to be rolled out across the entire UK. The objective is to improve electricity grid stability and quickly respond to grid frequency fluctuations. In 2018, EDF Renewables also signed two twenty-year power purchase agreements in the US relating to the construction of the Big Beau Solar+Storage solar project, in California (see. section Solar photovoltaic power North America), and connected to the battery storage system of 40MW (160MWh). Lastly, in addition to the Toucan photovoltaic plant with battery storage (5MWp) in French Guiana in operation since 2015, the proposed Toucan 2 photovoltaic plant (5MWp) was chosen in 2017 under the CRE II call for tenders to build and operate photovoltaic facilities with a capacity of more than 100kWp with battery storage systems located in zones that are not interconnected (ZNI). With more than one hundred thousand photovoltaic modules, the future Toucan 2 plant will feature an electrical equipment remote control system developed by EDF Store & Forecast and EDF Renewables. IN FRANCE Presentation of the market in France 1.4.2.1 Demand 1.4.2.1.1 Domestic electricity consumption in France (including Corsica) for the 2018 financial year stood at 478TWh (1) , down by 0.8% in comparison with 2017, due in particular to milder temperatures. Competition 1.4.2.1.2 Since 1 July 2007, the French market for electricity and gas has fully opened-up each customer able to choose their energy supplier. Over the last three years, the number of active electricity suppliers in France excluding historical suppliers has practically doubled from 24 at end-2015 to 43 at 30 September 2018 according to the Energy Regulation Commission (CRE). As of 30 September 2018, according to the CRE, the electricity market shares in terms of sites of alternative suppliers, were 18.2% in the residential market, and 42.4% in the non-residential market, and a gas market share, in terms of the number of sites, of 28.5% and 43.2% respectively. SALES AND SUPPLY ACTIVITIES 1.4.2

Gross consumption; source: 2018 Electricity report published by RTE. (1)

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I Reference Document 2018