EDF / 2018 Reference document

PRESENTATION OF EDF GROUP Description of the Group's activities

Regarding power generation, Edison aims to increase its renewable energy ■ generation by promoting specific capital investments in hydroelectricity and the development of wind and solar projects to optimise its electricity generation portfolio in Italy and to reduce its carbon emissions. Moreover, it intends to make the most of its high-efficiency and low carbon thermal power plants alongside renewable means of generation. The company is looking to concentrate its resources on its most efficient assets and develop new high-efficiency gas power plants if the country's energy goals enable favourable market conditions; Regarding gas, Edison is the EDF group's gas platform. Drawing on a varied and ■ extensive skill set under EDF's supervision, Edison manages all of EDF's gas activities and resources in an integrated model in conjunction with EDF Trading,

which optimises its assets and undertakes short-term transactions in the European and United Kingdom wholesale markets. With effect from 1 August 2017, EDF entrusted Edison, through a contract for services, of the asset management and the development of its upstream activities (including gas and LNG supply, contract management and medium-long term optimisation, transport and storage). Beyond optimising its current portfolio, Edison also aims to contribute to the growth of the Italian gas market to improve its own competitiveness and that of the EDF group, and to enhance flexibility and security of supply; Regarding Exploration and Production (E&P), in 2018 Edison streamlined its ■ operations into a new entity, Edison Exploration & Production.

1.

Edison's business 1.4.5.2.3

2018 Installed capacity and output of Edison in Italy

Other renewables (6) 1.0TWh (5%)

Other renewables (3) 675MW (11%)

Hydropower (5) 3.1TWh (16%)

Hydropower (2) 1,014MW (16%)

,

19.7 TWh .

6,306 MW

Thermal (1) 4,617MW (73%)

Thermal (4) 15.6TWh (79%)

Installed capacity

Output

Italy was 18.8TWh (2) which accounted for around 7% of net Italian electricity generation. National demand for gas was 72.1Gm³, down by 3.4% in comparison with 2017 due to an 8.1% decrease in the use of gas for electricity production linked to an increase in net electricity imports and higher hydraulic production. Residential consumption fell by 1% as a result of higher end-of-autumn temperatures. Natural gas imports in Italy represented 93% of the country’s demand, and Edison made 22% of these imports, i.e. 14.6Gm 3 .

In 2018 Italian energy consumption amounted to 321.9TWh, only 0.4% higher than in 2017. Net output of 280.2TWh covered 87% of national consumption, compared with 89% the previous year, with net imports of 43.9TWh (16.3% up from 2017) making up for the difference. Compared with 2017, lower thermal power output (185TWh in 2018, down by 15.3TWh), solar power output and wind power output (40.2TWh in 2018 vs 41.6TWh in 2017) were partially offset by higher hydroelectric production (49.3TWh in 2018 vs 37.56TWh in 2017) as a result of more favorable weather conditions. Based on power generation data for 2017 (1) , Edison is the third-largest producer at the national level, after Enel and Eni. In 2018 its net power output in

ata published by the AEEG (ARERA report, vol. 1, p. 48, fig 2.1); 2018 data will be released in mid-2019. (1) See detailed output data (excluding energy efficiency services) in the chart below. (2)

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EDF I Reference Document 2018