EDF / 2019 Universal registration document

1. The Group, its strategy and activities Description of the Group’s activities

Investment programme 1.3.4.2 In the short and medium term, the Group aims to:

acquisition in 2018 of the customer portfolio of Gas Natural (GNVI) and the service company Zephyro, as well as the launch of two new CCGT projects in Italy which has been announced in 2019; develop 10GW of new electricity storage facilities in the world by 2035, in ■ addition to the 5GW already operated by the Group, with the announcement on 27 March 2018 of the Electricity Storage Plan. EDF is also boosting its capacity for Research and Development and for innovation in this field in order to support the rapid development of storage technologies; become the leading electricity company in electric mobility from 2022 in four ■ large European markets (France, United Kingdom, Italy and Belgium), with the launch on 10 October 2018 of the Electric Mobility Plan, which is based on an ecosystem of innovative players through strategic partnerships. With respect to the here above Flamanville 3, Linky, Hinkley Point C and “ Grand Carénage ” projects, as well as the investments in renewable energies, the firm commitments made by the Group on the acquisitions of tangible and intangible assets are set out in note 49.1 of the appendix of consolidated financial statements at 31 December 2019. Lastly, as part of its CAP 2030 strategy, the Group will selectively target, in line with its policy and financial constraints, new development projects in addition to those already initiated, namely the EPR 2 project, British Nuclear New Builds, new renewable energy projects, as well as international equity investments. Given its financial constraints, the Group will whenever possible, use partnerships to finance its new projects. The Group is thus implementing an integrated model for the joint operational management of its portfolio of assets upstream (generation and procurement of energy and fuels) and downstream (wholesale and retail) to guarantee supply of energy to its customers through the best possible management of operational and market risks and with a view to maximising gross margin. Electricity generation activity 1.4.1 In mainland France, the electricity generation activities are split across the Nuclear and Thermal Fleet Department and the Renewable Energy Division. In addition to these two departments, the Engineering and New Nuclear Project Department is responsible for the development projects for the Group’s new nuclear generation assets, in France and abroad. Each of these three departments has all the expertise and performance drivers required to operate the leading European electricity generation fleet and ensure its development and sustainability, and offer their technical and industrial expertise to the whole Group in these three areas.

complete major industrial projects such as the Flamanville 3 EPR in France as well ■ as the smart meters in France (Linky, driven by Enedis), representing capital expenditure of respectively €12.4 billion  (1) and nearly €4.0 billion  (2) (see respectively sections 1.4.1.2.1 “Flamanville 3 EPR project” and 1.4.4.2.4 “Future challenges”); continue its investment in Nuclear New Build in the UK in order to deliver the ■ Hinkley Point C project for an estimated cost on completion of between £ 2015 21.5 and 22.5 billion  (3) for 100% of the project (see section 1.4.5.1.2.4 “Nuclear New Build Business”). The Group is also continuing its studies of the Sizewell C project; continue its “ Grand Carénage ” industrial programme for nuclear power in France ■ for an investment of about € 2013 45 billion over the period 2014-2025 (see section 1.4.1.1.2 “Operation and technical performance of the nuclear fleet”); intensify its investments in renewable energies in France and internationally, with ■ an average gross investment in renewables above €2 billion per year over the 2017-2020 period, and develop its installed capacities in solar power; the Group announced the launch on 11 December 2017 of the Solar Plan, to be mainly financed through partnerships; continue the turnover of Edison’s assets, which started, firstly, with the disposal ■ of its head office in Milan, the disposal of a portfolio of gas assets in 2017 and the project to sell its E&P business (in progress) and, secondly, with the

Description of the Group’s activities 1.4 The EDF group is an integrated energy company, active in all electricity businesses: nuclear, renewable and fossil-fuel generation, transmission (through RTE  (4) an entity accounted for using the equity method), distribution (through Enedis  (5) ), sales and marketing, efficiency and energy services, and energy trading. It is the leading player in the French electricity market and holds strong positions in Europe (mainly in the United Kingdom (UK), Italy and Belgium), which makes it one of the world’s leading electric energy companies and a renowned gas player. It is also present in the design and manufacture of equipment and fuel for nuclear reactors, and in related services (activity carried out by Framatome).

With a global installed generation capacity of 122.3GWe  (6) as at 31 December 2019, generating 557.6TWh worldwide, the Group has one of the largest generation fleets in the world. Among the ten largest global power suppliers, it produces the smallest amount of CO 2 per kilowatt-hour  (7) generated thanks to the share of nuclear, hydro and other renewable energies in its generation mix. The EDF group supplies energy and provides services to 38.9 million customer sites  (8) worldwide (of which 28.8 million in France) including: 33.6 million customers  (9) in electricity, of which 27.1 million in France; ■ 5.3 million customers  (10) in gas, of which 1.7 million in France. ■

(1) 2015 euro cost of the construction of Flamanville 3, excluding interim interest. Abnormal additional costs incurred in connection with non-current assets built by the Company will be expensed (see section 1.4.1.2.1). (2) The programme completion costs were reviewed downward, from €4.5 to €3.97 billion for the period 2014-2021, after taking into account prices of the latest contracts signed for equipment (meters and concentrators) and for installation services.

(3) Excluding interim interest and the currency effect compared with a benchmark project exchange rate of £1 = €1.23. (4) RTE, transmission network operator, independently managed within the meaning of the French Energy Code. (5) Enedis is an independently managed subsidiary within the meaning of the provisions of the Energy Code. (6) Figures calculated according to consolidation accounting rules, excluding Cottam. (7) Source: comparison based on data published by these ten groups. (8) As of 2018, customers are counted per site; a customer can have 2 delivery points: one for electricity and another one for gas. (9) The number of electricity sites at end-2018 was 34.7 million, of which 28.2 in France (EDF excluding ÉS and overseas departments). (10) The number of gas sites at the end-2018 was 5.1 million, of which 1.5 in France (EDF excluding ÉS and overseas departments).

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EDF | Universal registration document 2019

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