EDF / 2020 Universal Registration Document

1 THE GROUP, ITS STRATEGY AND ACTIVITIES Description of the Group’s activities

Stages of the nuclear fuel cycle in France

Upstream To ensure the continuity and security of the supply of its reactors in France and the UK, EDF retains overall control of all operations at each stage of the cycle, through a portfolio of contacts and by stockpiling at different stages of the front-end stage of the fuel cycle (natural uranium, fluorinated enriched or unenriched uranium, and warehousing of new assemblies). Orano is, in this respect, an important supplier (see section 2.2.4, “Operating Performance – 4E Operational continuity of supply chains and contractual relations”). Natural uranium supply EDF’s uranium supplies are guaranteed by long-term contracts for periods of up to 20 years with a policy of diversification in terms of sources and suppliers. Indexation formulas for portfolio contracts of natural uranium supply include fixed prices (base prices whether inflated or not) and variable prices (indexed according to market price indexes) and are sometimes limited by floor and ceiling prices. Consequently, the effects of fluctuations in market prices of natural uranium on supply costs are limited. Where necessary, the Group implements a strategy of currency hedging for its uranium supplies. EDF is making sure to implement best practices in mineral extraction so as to contribute to making overall progress in this sector. Since 2011, EDF has conducted mine audits based on a method drawn up collaboration with the World Nuclear Association (WNA) (see section 3.4.2.3.3 “Coal and uranium supply chain”). Fluorination (or conversion) EDF’s needs are covered by Orano in France, as well as other international producers such as Cameco in Canada, Converdyn in the United States and Tenex in Russia.

Enriching natural uranium into uranium 235 EDF meets its enrichment needs through global enrichers Orano (France), Urenco (UK, Germany, the Netherlands, the United States) and Tenex (Russia), primarily through fixed-price contracts. Enriched reprocessed uranium Since the 1990s, reprocessing has made it possible to recycle within the reactors uranium from processing spent fuel, which represents approximately 95% of the spent fuel mass. Reprocessing was suspended in 2013, pending the availability of a new industrial scheme. In 2018, the Board of Directors approved the restart of a robust, competitive and efficient sector, with the first assemblies planned to be loaded in 2023, subject to technical changes made and the necessary authorisations obtained from the safety authority. The corresponding contracts were signed with the respective suppliers in 2018. Pending the effective restart of the sector, the reprocessed uranium is stored in a stable form. Fuel assembly manufacturing EDF has two sources of fuel assemblies: one is internal, via its Framatome subsidiary, while the other is external, the main external supplier being Westinghouse. The first fuel assemblies were delivered for the Flamanville 3 EPR reactor in 2020; these deliveries will continue in 2021.

Fuel supply of the two EDF reactors at Hinkley Point (United Kingdom)

In September 2016, EDF, Orano and Framatome entered into an agreement providing for the supply of uranium, conversion and enrichment services, and assembly manufacturing for the fuel supply of the Hinkley Point C reactors.

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EDF - UNIVERSAL REGISTRATION DOCUMENT 2020