EDF / 2019 Universal registration document

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

for the most critical operations, stricter qualification criteria and record-keeping ■ systems will be used, thereby guaranteeing the quality of parts; the senior officer in charge of manufacturing standards, training and qualification ■ will investigate malfunctions and will ensure that best practices are implemented by EDF, Framatome and the nuclear industry as a whole; these guiding principles have been transposed into Framatome’s strategic plan ■ with a view to improving the quality of its manufacturing process. 2. Boosting skills: EDF will consolidate the initiatives taken by the business alongside GIFEN with ■ the founding of a University specifically dedicated to nuclear disciplines; a knowledge management system will be used to capitalise on the industry’s ■ knowledge and disseminate this knowledge within EDF’s engineering centres; diversified career paths will be established within EDF and the industry as a ■ whole, as well as between the manufacturing, construction and operations disciplines; the nuclear industry will establish a specific plan for the hiring and training of ■ welders, who will be qualified to meet the industry’s standards. 3. Tighter governance of major nuclear projects: For each major project, EDF’s Chairman and Chief Executive Officer will chair a Strategic Committee whose role will be to review the project’s initial data, to set its objectives, costs and timeframes, to review the associated financial commitments and to approve key contracts. The Board of Directors will be regularly briefed on the progress of these major projects. Framatome 1.4.1.3 Framatome is a key player in nuclear energy, acclaimed for its innovative solutions and high added value technologies for the nuclear fleet worldwide. Benefiting from its global expertise and backed by sound references, the company designs, maintains, and installs components and fuel, as well as instrumentation & control systems for nuclear power plants. With a workforce of some 14,000 employees, Framatome is able to supply its clients with an increasingly clean, safe, and cheap low-carbon energy mix on a daily basis. Framatome is jointly owned by Groupe EDF (75.5%), Mitsubishi Heavy Industries (MHI – 19.5%), and Assystem (5%). Framatome has a significant industrial presence in France (17 sites), Germany (4 sites), the United States (8 sites) and China (9 sites). The company also has an industrial or sales presence in South Africa, Argentina, Brazil, Bulgaria, Canada, South Korea, Spain, Finland, Hungary, Japan, Czech Republic, United Kingdom, Russia, Slovakia, Kazakhstan, Sweden and Ukraine. Framatome’s strategy, market and commercial 1.4.1.3.1 opportunities Framatome’s strategy is based on its core business i.e. nuclear steam supply systems, and aims to offer safe and competitive solutions, industrialise them and carry out the projects as part of an industrial sector. The company’s customer base includes leading international energy players and it works on over 300 reactors in the world. With Framatome’s experience in reactors of all types of technologies it can meet the specific needs of its customers worldwide. With a current global fleet of 450 reactors representing close to 396GWe in service in 31 countries  (2) , and new forthcoming nuclear capacities, the nuclear market offers opportunities in the field of fuel, modernisation and services. Framatome’s goal is to expand its market share through a differentiated offer and export partnerships. Framatome’s activities 1.4.1.3.2 With an experience built up over 60 years in the design and construction of nuclear plants, Framatome is present at every stage of the process, across all types of reactor technologies. With its highly skilled engineers and operators, the company has completed more than 90 nuclear power plant projects around the world to date.

EDF is also participating in the call for tenders initiated in Saudi Arabia by K.A. CARE (King Abdullah City for Atomic and Renewable Energy) for a construction project relating to two EPR reactors. EDF made a successful bid in the first phase of the consultation process known as FEED (Front End Engineering and Design), and is currently taking part in the development phase of the project; this should result in a formal call for tender process, currently expected in late 2020. In the medium power segment, EDF relies on its historic partnerships with China (UK HPR1000 with CGN) and Japan (ATMEA with MHI). For the UK HPR1000 technology, EDF and CGN are collaborating through a joint venture (GNS with 66.5% to CGN and 33.5% to EDF) for the certification of this Chinese-based technology by the British safety authority. In the small power segment, in 2019 progress was made in the development of a pressurised water solution in the 300-400MW range, intended mainly for the export market with a view to replacing the oldest fossil fuel-fired plants that will be decommissioned in the coming decades. This product, known as NUWARD TM , is being developed with the CEA, Naval Group and TechnicAtome, and is also a potential source of cooperation with foreign partners. Exploratory discussions have begun to this end with US firm Westinghouse. The digital transformation of nuclear 1.4.1.2.3 engineering (SWITCH programme) Launched in July 2017, this programme feeds into EDF’s CAP 2030 strategy, under sections related to managing current new nuclear projects, extending the operating life of the fleet in operation, expanding abroad and embracing digital transformation. It is a multifunctional programme involving all EDF players in the nuclear sector, including Framatome. The programme seeks to mark a turning point in engineering through two axes: transforming and simplifying processes and methods to better grasp the ■ complexity of large-scale industrial projects throughout their lifecycle by applying systems engineering standards, among other methods; digitise processes using a data-centric approach based on an integrated, ■ collaborative and industrial high-performance information system within an extended enterprise model. In this context, the call for tenders launched in 2017 led to the selection in the 2nd quarter of 2018 of Dassault Systèmes as supplier of the PLM ( Product Lifecycle Management ) solution and Cap Gemini as integrator covering PLM ( Plant Life Management ) tools. The SWITCH programme has entered its operational phase; several projects are currently being carried out, in particular in ESPN (nuclear pressure equipment), RTI (engineering technical baseline), EPR 2, and HPC. In this regard, the first ESPN and RTI services were made available to users in September 2019. Excell 1.4.1.2.4 In December, EDF unveiled “excell”, a plan that will drive the nuclear industry to achieve the highest standards of craftsmanship, quality and excellence  (1) . The execution of this plan will be overseen by a senior officer in charge of manufacturing standards, training and qualification, reporting directly to EDF’s Chairman and Chief Executive Officer. Excell will start being rolled out in 2020. The plan will rest on three cornerstones: 1. Enhancement of manufacturing quality: an in-depth overhaul of the customer-supplier relationship seeking a more ■ balanced risk sharing, as well as the establishment of contracts that align with manufacturing standards. The choice of suppliers will put stronger emphasis on quality requirements. Suppliers will also be more actively involved in the drafting of specifications and the assessment of manufacturability; a new supplier qualification scheme will be implemented for the construction of ■ new reactors, making expectations more stringent and potentially extending to level-2 sub-contractors and beyond;

(2) Source: CEA – Élecnuc – 2019 Edition, figures at 31 December 2018 (http://www.cea.fr/english/Documents/scientific-and-economic-publications/Elecnuc-2019.pdf). (1) See EDF’s press release of 13 December 2019 “EDF unveils excell, an excellence plan for the nuclear industry”.

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EDF | Universal registration document 2019