EDF / 2018 Reference document

PRESENTATION OF EDF GROUP Description of the Group's activities

operation upon 2025, following the adoption in 2012 by the Belgian government of the Equipment Plan, and the Law of 2013 amending the Law of 2003 pertaining to the timeframe for the phasing out of nuclear energy. This extension was the subject of an agreement concluded on 12 March 2014 between Electrabel, EDF and the Belgian State, defining its terms and conditions. The extension of the lifespan of Tihange 1 requires significant investment, with EDF’s share amounting to around €300 million, spread over the period from 2011 to 2020. Luminus At the end of 2018, the EDF group held 68.63% of the EDF Luminus company through its subsidiary EDF Belgium, with the remaining equity held by Belgian public shareholders. EDF Luminus is the second largest player in the Belgian energy market after Electrabel, and it holds a balanced upstream/downstream portfolio. The company, whose market share is close to 20%, possesses almost 10% of total Belgian generation capacity with 2,129MW installed at the end of 2018. The electricity generation of EDF Luminus reached 5.2TWh in 2018. The company has 2,000 employees, including the newly-acquired subsidiaries. As part of the Group’s CAP 2030 strategic plan, EDF Luminus has the ambition of developing its wind farm fleet and accelerating the deployment of its energy services in order to provide its customers with innovative and sustainable solutions, whilst pursuing its objective of reducing costs and rationalising its thermo-electrical generation fleet. EDF Luminus owns 10.2% (419MW) of Belgium’s Tihange 2 and 3 nuclear power plants (commissioned in 1983 and 1985 respectively) and the Doel 3 and 4 plants (commissioned in 1982 and 1985 respectively), which have a lifespan of 40 years. EDF Luminus also has 100MW drawing rights on the French Chooz B nuclear power plant, based on a band of guaranteed output according to the average availability of the French fleet. In 2018 most of these plants experienced extended unplanned outages: Tihange 2 has been down since August 2018 to test for possible concrete ■ degradation; Tihange 3 has been down since May 2018 due to concrete degradation; ■ Doel 3 was shut down in 2017 and only brought back online in August 2018 ■ after civil engineering works; Doel 4 was shut down from August to late December 2018. ■ Apart from the drawing rights in the nuclear fleet, EDF Luminus also possesses a thermal fleet comprising several power plants (combined cycles and open cycles) for an installed capacity of 1,208MW. The Seraing steam gas turbine met its strategic reserve obligation for the period from November 2017 to the end of October 2018. The plant came back online after the strategic reserve mechanism was not renewed. Separately, EDF Luminus decided to postpone the final shutdown of the open cycles of Angleur 3 and Izegem until 31 October 2019 and has informed the competent authorities. EDF Luminus also brought the Ham plant back online on 22 October 2018 in order to help secure Belgium's electricity supply for the 2018/2019 winter. EDF Luminus is moreover present in renewable energies with 7 hydropower plants and 52 onshore wind farms totalling 189 turbines spread across Wallonia and Flanders. Since the end of 2015, the company has been the leader in onshore wind farms in Belgium and now has an installed capacity of 438.5MW. In 2018, EDF Luminus erected 24 wind turbines for a total capacity of 62.8MW. It also bought MegaWindy CVBA, an onshore wind farm operator in Flanders. MegaWindy owns land titles which should allow for the development of around 40MW in power. Sales and marketing Under its “Luminus” brand, EDF Luminus supplies electricity and gas to around 1.7 million residential and business customers (number of delivery points) in Belgium, with a net loss of 25,000 customers in B2C (business-to-customer) in 2018. Energy services The company is involved in the energy services segment for residential customers, through its subsidiaries Rami Services, Dauvister, Leenen and Insaver, by installing and maintaining boilers, selling and managing a smart thermostat (Netatmo),

installing solar panels and providing Comfort services in the event of unforeseen damage to housing. At the end of 2018, the B2C portfolio for these last three services exceeded 175,000 contracts due to a sharp increase in sales in 2018. For its industrial customers, EDF Luminus together with ATS, Vanparijs, Dauvister and Newelec, offers comprehensive integrated electricity and heating solutions to industrial customers. In addition, its subsidiary EDF Luminus Solutions (in which EDF Luminus and Dalkia own a 51% and 49% stake respectively) is dedicated to energy efficiency services for facilities such as administrative buildings, hospitals, schools, sports facilities, swimming pools and apartment complexes on the basis of an energy performance contract. In 2018, EDF Luminus pursued its strategy to expand into energy services by acquiring HVAC firms such as M. Lemaitre SA (via Newelec) and Holding Léonard SPRL (via Dauvister). Gezel II, a subsidiary of ATS, acquired Acar NV, a heating firm, in order to broaden its market reach. EDF Luminus also set up Demainvest SA with SOGEPA (the Wallonia public investment fund) to undertake energy efficiency and renewable energy projects at firms in receivership in which SOGEPA holds a stake as well as in business districts. In 2018, under its "Plan Lumières 4.0", SOFICO (the Wallonia infrastructure investment fund) awarded the PPP contract to replace the lights on the highways in Wallonia to the LuWa consortium made up of Citelum, EDF-Luminus, CFE and DIF. The project to refit Wallonia's highway network with “smart” LED lights will take 20 years to complete. The Netherlands Through a joint venture, Sloe Centrale BV, the EDF group and PZEM (formerly Delta) (each holding 50%) own an 870MW CCGT power plant in the southwest of the Netherlands, whose two 435MW units were commissioned in 2009. Thanks to its very high technical performance, the Sloe plant was called upon to operate in 2018 for 4,923 hours, an excellent performance under market conditions that were not very favourable to gas power plants. Switzerland The EDF group is present in Switzerland through its investments in Alpiq Holding SA (25%), a listed company, and in hydropower facilities in Le Châtelot (50%), Emosson (50%) and Mauvoisin (10%). Alpiq is a significant player in the European energy market, active in the generation, sale and trading of energy, and supplies more than one third of Switzerland’s electricity. At the end of 2018, installed capacity was 6,100MW, broken down as follows: nuclear (738MW), thermal (2,333MW), hydropower (2,701MW) and other renewables (328MW). In 2018, its sales amounted to CHF 5,186 million. In terms of sales, Alpiq is top-ranked among Swiss electricity companies. In accordance with its terms, the current consortium agreement between Alpiq's founding shareholders, entered into in 2005, will expire in September 2020 following its termination by EDF. Germany EDF Deutschland GmbH, a wholly-owned subsidiary of EDF International S.A.S. based in Berlin, is in charge of the Group's activities in Germany. This entails concentrating on new energy business models and innovative solutions to facilitate Germany's energy shift (Energiewende). EDF Deutschland also represents the Group in leading German political and economic circles. The EDF group also has storage for natural gas in salt cavities located in Etzel in Lower Saxony. The aboveground facilities are operated through a 50/50 joint-venture with EnBW (see section 1.4.6.2.2 “Gas assets and projects”). Via its subsidiary EDF Gas Deutschland, EDF also holds a 16% stake in BEP gas pipelines (Bunde-EtzelPipelinegesellschaft). The Group owns 50% of a run-of-river hydropower plant located in Iffezheim on the Rhine River (148MW, 5 turbines, extension work on this plant was completed in 2013). EDF Deutschland increased its stake in ubitricity from 11.67% to 18.21%. The Berlin startup markets a smart electric vehicle charging solution which will enhance the range of electric mobility services offered by the EDF group.

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I Reference Document 2018