EDF / 2018 Reference document

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PRESENTATION OF EDF GROUP Description of the Group's activities

For example, residential customers can download the mobile application "EDF & MOI" and view the “e.quilibre” solution and receive assistance with reducing their energy consumption. Implemented in 2006, the energy savings certificates (CEEs) scheme was amended on 1 January 2018: the national obligation for the fourth period (2018-2020) was fixed at 1,600TWhc, of which 400TWhc for households in a situation of energy poverty. This is more than a two-fold increase compared with the previous period (2015-2017), which was fixed at 700TWhc, then increased to 850TWhc with the introduction of CEEs for “energy poverty households” on 1 January 2016. EDF fulfilled its obligations for the third period 2015-2017 and increased its supplies in 2018 for the 4 th period to cover its obligations for the year. The EDF group wants to be the reference partner for territories in the energy transition, to meet their needs for their energy efficiency projects for the production of local renewable energies as well as the eco-district development projects. It is a leading player in the development of electric mobility via its subsidiary IZIVIA. Lastly, customer satisfaction is a priority objective for EDF and it achieves good results in all segments: residential customers, companies and local authorities. This performance is the result of a culture of satisfaction which is translated into targets for each sales manager up to the highest level in addition to possibility for customers to seek support from the EDF mediator (mediateur.edf.fr) with regard to their complaints. Activity by customer category 1.4.2.2.2 Residential customers 1.4.2.2.2.1 At the end of December 2018, EDF had 24.5 million residential electricity sites and more than 1.4 million gas customers in France. For fiscal year 2018, the volume of its sales totalled 120.3TWh of electricity and 13.4TWh of natural gas. EDF innovates on a daily basis and the satisfaction of residential customers is a priority: after contacting EDF, about nine out of ten customers are satisfied with the manner in which they were dealt with, whatever the channel or reason why they contacted the Company. The annual report of the French national energy mediator published in May 2018, shows that EDF has the lowest rate of disputes, far behind its competitors (1) . The customer experience offered is both digital (customer space, chat, web call back, mobile application, digital solutions, social media, etc.) and human. 5,000 advisers, all based in France, are attentive to the needs of customers and offer them personalised advice. At end-October 2018, over 42,000 training hours were given to EDF advisers on commercial relation and sales. Energy supply EDF supplies electricity at the regulated sales tariff (TRV) and with a comprehensive range of market offers in electricity, complementary to the TRV. In 2018, EDF extended its range of market offers in electricity to offer even more choices to residential customers. The Vert Electrique Auto (Green electric car) tariff was thus launched in January. This offer of renewable electricity supply focuses in particular on for customers who recharge their electric or hybrid car at home. This tariff also facilitates recharging away from home, for hassle-free trips, with the “itinérance” (touring) solution offered by IZIVIA, a subsidiary of EDF. In October, EDF also launched “Digiwatt”, its first online electricity offer at -5% per kWh exclusive of tax compared to the regulated sales tariff. This innovative offer is designed for customers who wish to manage their relation with EDF independently, comfortably and at an attractive price. EDF also supplies 1.4 million customers with natural gas as part of market offerings. EDF's range of market offers in gas includes three offerings. The “Avantage Gaz” offer is based on a fixed price per kWh (exclusive of tax) for four years. “Avantage Gaz Durable” not only comes with all the benefits of “Avantage Gaz” but also offsets the carbon emissions of gas consumed and provides support to a biogas research programme in France. Lastly, “Avantage Gaz Connecté” gives customers the possibility of managing their heating remotely and enhancing their comfort with the purchase of a connected thermostat. Functionality and services EDF, in partnership with AXA, offers a comprehensive range of support services, called “Solution Dépannage Confiance” with three rapid repair options applying to external electricity and gas installations (electricity & gas option), electricity, gas & water installations and plumbing/locksmith problems (home option) and equipment (equipment option). Also in partnership with AXA, EDF offers Assurénergie which allows customers to benefit from a flat rate reimbursement to

enable them to pay their energy bills in the event of difficulties (loss of employment, inability to work, hospitalisation, invalidity or death). EDF offers a wide range of solutions to help its customers achieve energy savings. e.quilibre, the digital solution accessible to all of EDF's residential customers, allows customers to better understand and manage their energy consumption and in particular monitor their estimated energy consumption on a monthly basis, compare it with that of the previous year and with that of similar households or identify the electrical appliances that consume the most energy. Personalised advice to achieve energy savings on a day to day basis is also available on e.quilibre. Moreover, more than 10 million EDF customers with a Linky smart meter can, if they have given their consent, get news regarding their real consumption in TWh and in euros, by day or by 30 minutes. If they wish, they can also set a consumption target in euros and thus be alerted if it is exceeded. They can also access "Fil d'Actu" on the "EDF & MOI" app using this timeline they can access information to understand their consumption and save energy (weather impact, similar households, proportion of heating, adopted actions, etc). Electriscore, an online platform, helps Internet users, whether they are EDF residential customers or not, choose household appliances that minimise electricity consumption. In addition to these digital tools, EDF offers energy saving tips on its website (edf.fr) and runs a network of “EDF Home Solutions Partners” to help residential customers renovate their home energy use project. Residential customers also have access to loan solutions from Domofinance, EDF's finance partner, to renovate their home energy use. Lastly, EDF is investing in open innovation with EDF Pulse & You, a digital collaborative platform for co-construction with internet users and startups. Since its launch in March 2016, 6,000 Internet users have taken part in the development of innovative projects by testing new products and have made more than 90,000 contributions. Earning of energy savings certificates (CEE) Where Residential customers are concerned, the production of the CEE results from the energy renovation of the home, essentially based on a network of “EDF Home Solutions Partners” (see also section 1.5.6.1 “General regulations that are applicable to the environment, health, hygiene and safety”). All residential customers who made energy efficiency alterations to their home qualify for a direct cash bonus from EDF by visiting www.prime-energie.edf.fr and providing the information and documents required. Solidarity policy Solidarity is a core value of EDF, which has been pursuing a policy dedicated to economically disadvantaged customers for close on 30 years (see section 3.2.3.2 Together EDF Entreprises and EDF Collectivités have 1.5 million customers. Electricity sales in 2018 came to 163TWh at regulated sales tariffs or market prices and natural gas sales came to 17.7TWh. and business customers EDF Entreprises supports businesses and professionals so as to contribute to their energy performance, in particular by helping them reduce their energy bills and participate in the energy transition. This action is at the core of the EDF group’s strategy, which favours in particular the development of energy services. EDF Entreprises' products EDF Entreprises provides businesses and professionals with competitive tailor-made electricity and gas supply offers. Offers are varied depending on customer expectations and consumption patterns. The electricity offers provided by EDF Entreprises enable small businesses, very small businesses and professionals to optimise their energy supply through simple contractual arrangements. They allow customers that consume more to choose the length of their commitment at the offered prices, depending on their needs in terms of budget visibility. Lastly, EDF Entreprises is able to tailor solutions for the heaviest users depending on the structure of their consumption. EDF Entreprises also offers its business customers guaranteed prices over three-year periods to enable them to plan ahead. EDF Entreprises structures its products to encourage its customers to optimise consumption according to generation costs by offering different prices at peak and “Implementation of operational solutions”). Business customers 1.4.2.2.2.2

Source: 2017 annual report of the French national energy mediator. (1)

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I Reference Document 2018