EDF / 2020 Universal Registration Document

1 THE GROUP, ITS STRATEGY AND ACTIVITIES Description of the Group’s activities service offering : Edison’s goal is to strengthen its position on the Italian market by means of an innovative offering, in particular through the development of energy services designed to the end market, in particular for domestic consumers and industrial, services, and public administration customers. This aim draws on the brand’s strong positioning, a diversified offering, and on synergies resulting from the strategy of organic growth of its gas and electricity customer portfolio for the residential and industrial segments;

gas : Edison is the EDF group’s gas platform. Thanks to skills being brought ● together, since 2017 the company has had a service agreement with EDF enabling it to provide integrated management of all assets and develop EDF’s upstream gas business (in particular the supply of gas and LNG, contract management, medium to long-term optimisation, transport, and storage). The Group also benefits from EDF Trading, responsible for asset optimisation, as well as from short-term operations dealing with interventions on wholesale markets on the continent and in the UK. Over and above optimising the Group’s gas business portfolio, Edison contributes to reducing its emissions for maritime and road transport, with the construction of a supply chain for marketing small-scale LNG.

Edison’s business 1.4.5.2.3 Installed capacity and output of Edison in Italy (1) – 2020

Installed capacity In MW

Electricity Output In TWh

In 2020, electricity and gas consumption on the Italian market were affected by the restrictions imposed due to the health crisis, mainly during the first half of the year. Italian energy consumption amounted to 302.8TWh, 5.3% lower than in 2019. Net output of 273.1TWh (1) covered 90% of national consumption, compared with 88% the previous year, thanks to net imports decreasing significantly by 5.9TWh (-15.6% compared to 2019). Thermal power production, which amounted to 175.4TWh in 2020 (11.9TWh less than in 2019) recorded the largest decrease, followed by wind power production (18.5TWh, down 7.4% on 2019). However, other renewable energy sources performed well, with a 9.6% increase in solar power compared to 2019 (25.5TWh). Based on power generation data for 2019 (2) , Edison is the third-largest producer at the national level, after Enel and Eni. In 2020 its net power output in Italy was 18.8TWh (3) which accounted for around 6.9% of net Italian electricity generation.

National demand for gas was 70.7 billion cubic metres, down by 4.1% in comparison with 2019 due to a 5% decrease in the use of gas for electricity production. In spite of the sharp drop in March, April, and May due to Covid-19 prevention measures applied to non-essential sectors, industrial consumption fell less, recording a drop of around 5.8%. Domestic consumption dropped by around 0.6 billion cubic metres compared to 2019; however, the drop in consumption recorded in the first two months of the year was compensated for by higher consumption in the fourth quarter due to colder weather. Gas imports to Italy accounted for 93% of national demand. Edison carried out 18.6% of these imports, a total of 12.3 billion cubic metres. By the end of 2019, the capacity market was established in Italy, with the launch of two consignment auctions in 2022 and 2023. Edison won 2.8GW of existing capacity for both years, and a total of 1.4GW of new capacity benefiting from a fixed contribution of €75,000/MW for 15 years. Thanks to its contribution to the capacity market, Edison’s margins will increase appreciably and become more foreseeable.

(1) Excl. pumping. (2) Data published by ARERA (ARERA report, vol. 1, p. 89, fig. 2.1); 2020 data will be released in mid-2021. (3) See detailed output data (including energy efficiency services) in the chart below.

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EDF - UNIVERSAL REGISTRATION DOCUMENT 2020

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