EDF / 2019 Universal registration document

1. The Group, its strategy and activities Group strategy

thanks to its expertise, Dalkia helped its customers save 6.7TWh in 2019. To ■ date, Dalkia operates 340 heating and cooling networks: in 2019, Dalkia’s actions averted the emission of 4.3 million tonnes of CO 2 . Very low-carbon generation: nuclear 1.3.3.3 and renewable energies The commitment made by all countries at the COP21 aims to keep the rise in temperatures well below 2°C. It triggered a collective movement to act differently. In its 2019 report on “Nuclear Power in a Clean Energy System”, the International Energy Agency (IEA) stated that nuclear power is an indispensable tool for keeping global warming below 2°C compared to the pre-industrial period: without nuclear power, the IEA’s experts believe that achieving the objectives of the Paris Agreement will be much more costly and will require insurmountable efforts from the international community. Because 97% of electricity in France is carbon-free thanks to nuclear and renewable energies, EDF is playing a leading role in achieving this objective by accelerating the development of renewable energies while guaranteeing the safety, performance and competitiveness of existing nuclear facilities and Nuclear New Build investments. EDF’s ambition to achieve a very low-carbon generation goal starts with the consolidation of its hydropower and nuclear asset base: EDF regularly invests in hydropower concessions in order to combine economic, ■ energy and environmental performance, and proposes solutions to strengthen hydropower generation; EDF is investing in order to continue operating the nuclear fleet in France and the ■ United Kingdom under the best possible safety conditions, as well as in preparation for the decommissioning of the nuclear fleet and waste management operations. At the same time, the EDF group is actively pursuing its development in renewable energies (with the objective of doubling the installed capacity of the Group’s ENR and hydropower fleet from 28GW in 2014 to 50GW in 2030) and in Nuclear New Build. With regard to renewable energy, the new means developed will be essentially onshore and offshore wind power, solar energy and hydropower. The development of these assets outside France is undertaken in line with the EDF group’s international strategy. International expansion 1.3.3.4 To deal with the challenges of demographics, urbanisation and air pollution, many countries are looking for solutions that can improve the situation. EDF, which operates on all continents, supports this energy transition by exporting its expertise in nuclear power, renewable energies and energy services. The EDF group wants to be a key player in the energy market in France and in its core countries in Europe (United Kingdom, Italy, Belgium) by playing a role in energy security, the enhancing of economic competitiveness and the European economy low- carbon transition, in line with public policies. EDF is also expanding outside Europe, thanks to a targeted approach in geographic terms and steering its investment choices by giving priority to low-carbon generation projects, in particular hydraulic, wind and solar generation projects as well as energy services and engineering activities. It is expanding storage capacities and developing gas production projects in areas where these are key factors for energy transition, in line with the Group’s commitments to low CO 2 emissions. Transformation 1.3.3.5 Health and safety, digital and new work practices, responsibility and simplification, skills and the recognition model are the five major levers of the Group’s transformation. The Group adapts its managerial practices by empowering the teams, streamlining its organisations and modus operandi, as illustrated by a number of concrete examples since 2016 (introduction of fixed numbers of working days for managers, boosting career paths and promoting internal mobility and promotional training, streamlining and simplification of Group policies, etc.) and other more recent examples, such as the digital signature of contracts and the simplification of financial and non-financial reporting. In 2018, EDF also signed a new global agreement on Corporate Social Responsibility (“CSR agreement”) which includes improvements in favour of diversity and to the benefit of Group employees. In 2019, a new management-labour dialogue approach was adopted, simplified and set up, in accordance with new legal requirements (see section 3.3.3.1.7 “A renewed social dialogue”).

Strategy and organisation 1.3.3.1 Pursuant to the CAP 2030 strategy, and in line with the guidelines adopted by the French authorities for the PPE, EDF group is mobilised to meet all aspects of the challenges of energy transition, in all territories in which it operates. In France, this ambition requires an overall reform of the electricity market and of the conditions for obtaining a fair return on nuclear assets. In this context, the French government launched a consultation on adopting a new regulatory framework to replace the ARENH (see section 2.2.1 “Market regulation, political and legal risks - 1B Evolution of the regulatory framework”) and has requested the Group’s Executive Management to reflect on a new organisation in connection with this reform. This possible change in the Group’s organisation, which is envisaged only if the regulatory framework reform projects are carried out, could lead in particular to a spin-off of the downstream and services activities, the renewable energies and distribution activities, which would be grouped together in a structure in which a minority interest would be listed (called “GREEN”), and which would be majority-owned and controlled by the parent company (called “BLUE”), which would itself directly operate all nuclear activities, as well as EDF hydropower fleet. The respective scopes of these entities have by no means been conclusively determined at this stage and will be clarified in due course if this reorganisation project (“HERCULE” project) is actually undertaken. In any event, the HERCULE project should maintain BLUE and GREEN as two integrated entities within the Group. This possible change in the Group’s organization, which is exclusively subject to the successful completion of the project to review the regulatory framework, would aim at strengthening the Group’s investment and financing capacities to enable it to be the leader in the energy transition, while safeguarding an integrated Group. Discussions are currently underway on this subject, and are conditional on the reform of the nuclear regulatory framework. Proximity to customers and local 1.3.3.2 communities Increasingly, individuals, businesses and cities want to change the way they light, heat, produce, consume and travel. This momentum, an aggregate of individual initiatives and public decisions, is gradually expanding everywhere. EDF’s goal is to assist customers and local areas to achieve CO 2 neutrality with accessible and innovative carbon-free and energy-efficient solutions. In doing so, EDF relies on its customer portfolio in key European countries (France, UK, Belgium and Italy) with an unparalleled customer relationship and an enhanced range of services and supply offers: EDF positions itself as a major player in energy efficiency and carbon-reduction ■ services by working to replace fossil fuels with new efficient uses of electricity (electric mobility, heat pumps, low-carbon housing, carbon-free hydrogen, etc.). Dalkia develops, implements and manages innovative energy solutions that are more environmentally friendly and more economical. EDF supports the development of carbon-free and decentralised electricity generation capacities, such as the “My Sun and me” ("Mon Soleil et moi") self-consumption offer, and innovative solutions to help customers and local areas consume better and less, and contributes to the development of smart cities; in 2019, EDF continued to innovate by proposing new offers, accelerated its ■ development of services for individuals and businesses, and stepped up its energy services activities for businesses and communities. These are the actions EDF takes to maintain its customers’ confidence in an increasingly competitive environment: with the launch of “My Zen days” (" Mes jours Zen ") in 2019, EDF expanded its range of electricity market offers for individual customers, comprising Electric Green ( Vert Electrique ), Weekend Electric Green ( Vert Electrique Week-end ), Auto Electric Green ( Vert Electrique Auto ) and Digiwatt. “My Zen days” is a range of offers aimed at customers who want electricity prices that are adapted to their consumption practices; after Ding Done in Belgium (Luminus), Hoppy in GB (EDF Energy) and Assistenza ■ Casa in Italy (Edison), the launch of the first service platform, IZI by EDF, positions the Group to become the preferred partner offering peace of mind for the French in their homes and businesses. The digital platform IZI by EDF puts individuals and businesses in touch with independent tradesmen and building professionals to carry out minor works or renovation projects. EDF also launched “My sustainable heating” (" Mon chauffage durable "), a complete offer for replacing fossil fuel boilers (oil, gas,...) with heat pumps, in order to reduce French consumers’ energy bill and CO 2 emissions; in 2019, EDF created its Hynamics subsidiary to provide a competitive, ■ carbon-free hydrogen offer, primarily for industrial and heavy mobility customers, which are difficult sectors to decarbonise;

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EDF | Universal registration document 2019

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