EDF / 2019 Universal registration document

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

In view of the difference within these systems between the power generation costs and the sale price at the equalised tariff, EDF is applying demand-side management (DSM) strategies in these territories together with institutional players such as government departments, municipalities, the Energy Regulation Commission (CRE), the French Agency for Environment and Energy Management (ADEME), local institutions… Changes and outlook Investments to modernise and reinforce the electricity generation fleet In accordance with the territorial PPEs, the EDF group has undertaken to replace the main power plants which are at the end of their useful lives. The new power plants will be constructed and operated by the EDF subsidiary PEI (Production Électrique Insulaire). The construction sites for four motor power plants were completed successfully between 2012 and 2015, for a total net capacity of close to 746MW: Port-Est in La Réunion, Bellefontaine B in Martinique, Pointe-Jarry in Guadeloupe and Lucciana B in Haute-Corse. These new generation resources, equipped with innovative technologies, allow the Group to deliver better industrial and environmental results and contribute to satisfying a part of the emerging electricity demands in these regions. Two more plants are in the works in Corsica and French Guiana. EDF PEI is currently a partner in a photovoltaic plant with battery storage project in French Guiana, and in a wind power plant with battery storage project in Martinique (commissioned in 2019). EDF PEI is also strenghthening its renewable energy presence thanks to common projects with EDF Renewables. The extension of the Saint-Barthélemy power plant (two new generators of 16MW) and the renewal of the power plant on Saint-Pierre-et-Miquelon (21MW) have respectively been operational since 2014 and 2015. The Saint-Martin power plant was delivered in end June 2016 for an installed capacity of 40MW. Investments in electricity networks The continued growth in consumption in these regions despite the energy efficiency actions undertaken, as well as the development of renewable energies and the growing number of generation facilities coming online, have led the EDF group to continue the development and reinforcement of the electricity networks. In total, EDF invested over €270 million in Production activities (including EDF PEI) and Networks in 2019. A commitment to projects devoted to a better integration of renewable energies in the electricity generation mix and to optimising the management of electrical systems France’s Energy Transition Act establishes 2030 as the target date for energy autonomy for French overseas departments, and 2050 as the target date for Corsica. The EDF group supports the emergence and development of electricity generation methods based on renewable energies adapted to IES. The methods favoured are those that provide abundant and guaranteed energy at competitive generation costs, but also sustainable in the long term, in such a way as to position them as credible alternatives to thermal generation: biomass, marine and river energies, waste recovery, biogas. EDF also contributes to making advances in technical capacities relating to the insertion of intermittent renewable energies into IES by suggesting improvements to their technical specifications, making the grid more resistant to power disruptions, and developing smart metering systems. EDF is also spearheading three 5MW battery projects, intended as a means of offsetting supply/demand fluctuations, out of a series of power storage projects selected by the CRE in 2018. Work is also ongoing to create micro-networks 100% powered by renewable energies in certain isolated zones. In 2017, an innovative system combining photovoltaic, digital monitoring and storage was installed on the island of Sein, allowing for a 100% renewable electrical supply several hours each day, while part of Mafate on the island of Réunion receives solar power and is equipped with a battery and a hydrogen fuel cell. Several other projects are planned, especially for

remote communes in the interior of Guiana (Maripasoula, Papaicthon, Saint Georges de l’Oyapock). Energy efficiency is a crucial energy transition lever in the island systems. EDF contributes to the elaboration and implementation of the demand side management (DSM) territorial strategy, one of the main tools of which are public grants for equipment (over €600 million validated by the CRE for 2019-2023). EDF actively promotes DSM operations financed by these grants for all types of customers, particularly through the Agir Plus label. EDF has committed to deploy 1.2 million digital meters in the overseas departments (excluding Mayotte) and Corsica by end-2023. This represents an investment of €268 million. These digital meters will introduce much more modern customer relations and amplify the energy transition levers. At end-2019, over 300,000 meters were installed. Électricité de Strasbourg 1.4.4.4 Électricité de Strasbourg (ÉS) is an Alsatian energy producer which is committed to the long-term energy and economic performance of its territory via its four activities: the distribution of electricity, supply of energies, energy services and the production of renewable energies. This portfolio of activities makes it possible for the ÉS group to better provide support to its customers in the energy transition. ÉS also provides services to Local Distribution Companies ( entreprises locales de distribution , or LDCs) in eastern France. The ÉS group is 88.64% owned by EDF, and the remaining shares are owned by the public and its employees. Its shares are traded on Euronext Paris. Distribution 1.4.4.4.1 Strasbourg Électricité Réseaux is an independently managed subsidiary responsible for public electricity distribution network management. Strasbourg Électricité Réseaux operates, maintains, develops and renews an electricity network of over 15,000 kilometres in the 400 Alsatian municipalities that chose ESR to operate their electricity distribution grids under concession agreement. These concession agreements were renewed between 1993 and 2001 for a term of 40 years. The territory serviced covers three quarters of the Bas-Rhin department and includes more than 560,000 points of delivery for low and high-voltage (A and B) power, as well as connections with the Enedis network and two other downstream network operators. In order to comply with recent developments in the French Energy Code, ÉS engaged in a process to create subsidiaries for its distribution activities at 1 May 2017. Sales and marketing 1.4.4.4.2 ÉS Énergies Strasbourg is the sales and marketing subsidiary of the ÉS group. At end-2019, ÉS Énergies Strasbourg supplied power to more than 550,000 electricity customers (including renewable), and over 113,000 gas customers, to both residential and business customers (services and industrial sectors) or to local authorities. In addition to supplying electricity and gas, ÉS Énergies Strasbourg offers related services such as electricity, gas and plumbing corrective maintenance and digital services designed to help customers better manage their consumption. For its residential customers, ÉS Énergies Strasbourg has continued the implementation of support services in renovation and construction of the home, via a portal enabling customers to be in direct contact with a network of local partners. For its part, ÉS Énergies Strasbourg is active in the development of solar power and the promotion of alternative soft mobility, for instance in electric vehicle recharging infrastructure. Energy services 1.4.4.4.3 ÉS Services Énergétiques, an energy services subsidiary owned 50-50 by ÉS and Dalkia, is engaged in the design and operation of heating networks, energy renovation of buildings, and the technical management and optimisation of energy installations. It also carries out design, build, and operation works in electrical engineering, and industrial and road lighting, as well as work in engineering and mass catering.

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EDF | Universal registration document 2019