EDF_REGISTRATION_DOCUMENT_2017

PRESENTATION OF EDF GROUP Research & development, patents and licences

the Île-de-France Photovoltaic Institute (IPVF), which is an institute for energy ■ transition (ITE) dedicated to developing ground breaking technologies in the photovoltaic field, brings together EDF, Total, Air Liquide, Riber, Jobin Yvon, the CNRS and École polytechnique in a partnership which is supported by the French State within the framework of ITE funding by the Commissariat-General for Investment (CGI). The R&D sites house two joint research units with the CNRS: the Institute for Mechanical Science and Industrial Applications (formerly Laboratory for the Mechanics of Ageing Industrial Structures, LaMSID) and the Institute for Research & Development on Photovoltaic Energy (IRDEP), as well as an international R&D centre, the Materials Ageing Institute (MAI). To carry out its research, EDF continues to invest in powerful and recognised means of digital simulation. It is developing cutting-edge computing code and resources that are among the best in industry. Its current capacity is 1,800 Teraflops. In addition, the Group benefits from unique experimental resources; these include specific analytical loops to study chemicals/corrosion, failure, aero-acoustics, etc.; loops focusing on components and processes; resources for on site test interventions; and resources dedicated to the characterisation of materials and their ageing. Two recent flagship installations are noted below: Concept Grid: a scaled-down electricity grid for the purpose of trialling and ■ testing the insertion of the innovative hardware and “intelligent” systems that together make up a smart grid, prior to them being installed on the grid itself. Concept Grid is designed to prepare future developments of the grid by studying the integration of new components and equipment from the world of information and communication technology to facilitate demand-side management. It is also intended to facilitate the integration of decentralised production, by studying the behaviour of production resources on the electricity system, and electricity storage applications. Concept Grid provides the missing link between a conventional research laboratory, in which innovations are tested in conditions that are not entirely representative of reality, and the actual grid, where quality of service considerations restrict experimentation; VeRcors: construction of a model reactor building to 1/3 scale in order to study ■ how double containment buildings age. This model was completed in 2016 and the initial tests have been conducted. Due to its reduced thickness, it enables the Group’s researchers to analyse then predict the effects of ageing of the concrete enclosures of reactor buildings and to check the solidity of this type of structure over time. It is used in conjunction with several digital models, which make it possible to model concrete ageing phenomena. In terms of innovation, the R&D plays a leading role in guiding and supporting the Group in the innovation dynamic, established in the context of its “CAP 2030” strategy. To that end, through its Innovation Hub, R&D develops services supporting innovation and explores new avenues of business development. The two ultimate objectives of this Innovation Hub are as follows: support, boost and enhance the value of innovation within the Group: 'innovate ■ now'; this involves supporting the divisions and R&D in the implementation of innovation processes, growth and entrepreneurship; help to anticipate and explore models that break with the norm 'venture forth'; ■ These new models may tomorrow constitute new business lines for the Group, whether they are new services or new technological solutions. These initiatives rely heavily on open and collaborative innovation, notably through the animation of a network of external partners and connections with French and international eco-systems. This network (start-up, incubator, major groups) is consolidating processes of valorisation and protection of internal innovation and ■ boosting the 'time to business' through actions aiming to accelerate/promote the industrialisation phase; development of collaborative innovation notably through SME partners and ■ start-ups proposing value added solutions for the Group's divisions. The objective harnessed in an effort to face the challenges of the Group. In 2017, the actions were based around the following priorities:

for EDF is to detect, assess and propose high value external innovations to the Group's divisions. R&D validated more than fifty demonstration projects this year. More broadly, the innovation dynamic relies on a network of partners. Partnerships have been entered into with incubators/accelerators like Paris&Co, Numa and EDF is a member of the Scientipôle and Incuballiance associations. Framework agreements with junior entrepreneurs (HEC, ESSEC, ESCP, etc.) have been launched, to carry out market studies. Agreements are being negotiated with networks of international experts to assess our technologies; internal and external optimisation and dissemination of innovation. R&D ■ contributes directly to creating value for innovation, externally through its contributions within the framework of the EDF Pulse competition, events such as Vivapolis. R&D also contributes to the development of new business, notably through entrepreneurship in connection with the New Business Executive Management (see section 1.4.6.1.3 "New EDF Business"). EDF also has a stake in the Amorçage Technologique Investissement fund (ATI) managed by CEA Investissement. This is directed at new French companies working in technological innovation for energy, the environment, micro-technologies and nanotechnologies. Lastly, EDF has taken six stakes in venture capital funds in France, North America and China in order to provide access to a global pool of start-ups and innovations: Robolution Capital, a fund focusing on robotics, launched in March 2014; ■ Chrysalix, a Canadian fund dedicated to cleantech venture capital, in ■ December 2011; Tsing capital, the first Chinese fund to be devoted to cleantech venture capital, in ■ December 2011; DBL Investors in the USA, a fund set up in 2008; ■ Mc Rock, a Canadian venture capital firm that specialises in the Industrial ■ Internet of Things (IIoT), in 2015; Partech, a transatlantic venture capital firm specialising in information and ■ communication technologies, in 2017. 1.6.2 EDF R&D’s work serves all the Group’s divisions. For each of them, it offers technological solutions or innovative business and economic models designed to improve their performance, and prepare the Group’s future in the longer term by means of medium and long-term anticipation initiatives. It is one of the factors in EDF becoming a global industrial group providing low-carbon electricity systems. EDF’s R&D performs work for Enedis on the networks under a services agreement, which defines obligations that guarantee the protection of commercially sensitive information and compliance with the principle of the independent management of the distributor. As the energy sector undergoes profound change, the goal of EDF R&D may be defined in terms of three strategic avenues: developing and experimenting with new energy services for clients, preparing the electricity systems of the future and, moreover, consolidating and developing competitive, low-carbon production mixes. R&D also engages in research into information technology to support these three strategic avenues. This research is in turn structured around five major areas: complex systems, the management and the processing of large volumes of data, the Internet of Things, cyber security and the simulation of physical problems. Research in this field has a twofold purpose: improving divisional performance through advanced simulation technologies; ■ facilitating the emergence of new opportunities for business lines through ■ innovative uses of new information and communications technologies. R&D PRIORITIES

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EDF I Reference Document 2017