EDF_REGISTRATION_DOCUMENT_2017

1.

PRESENTATION OF EDF GROUP Group strategy

It is also increasing its innovation efforts to meet the expectations of its customers and offer solutions and services adapted to the new consumption patterns and based on increasingly digital means of communication. Lastly, the EDF group, as a part of CAP 2030, has made a commitment to six corporate responsibility goals (see section 3.1.2 "Corporate social responsibility goals"). Very low carbon generation: 1.3.2.2 nuclear and renewable energies To remain the leader in very low carbon electricity generation, the EDF group is intensifying the development of renewable energies while ensuring the safety, performance and competitiveness of the existing nuclear facilities and new nuclear investments. In fact, EDF’s nuclear facilities are already giving France a major lead compared to its neighbours in terms of curbing greenhouse gas emissions, while still ensuring lower electricity costs. Achieving the very low carbon generation goal starts with the consolidation of the hydropower and nuclear asset base: EDF regularly invests in hydropower concessions in order to combine economic, ■ energy and environmental performance, and will propose solutions to strengthen hydropower generation; EDF is investing in order to obtain approval to extend, under the highest safety ■ conditions, the operating life of the French nuclear facilities beyond 40 years, now that its economic and carbon competitiveness has been demonstrated. In this context, EDF’s Board of Directors approved the principle of the “Grand Carénage” on 22 January 2015 (see section 1.4.1.1.2 “Operation and technical performance of the nuclear fleet” – “Investment programme for the existing nuclear installed base in France”). Furthermore, on 28 July 2016 the Board of Directors approved the extension to 50 years of the amortisation period of the PWR 900MW series (excluding Fessenheim) in France, without prejudice to the decisions authorising the continuation of the operation, which will be made on a unit-by-unit basis by the French Nuclear Safety Authority (ASN) after each ten-year inspection. These decisions are consistent with the multi-year energy plan; investments are also being made to extend the operating life of the entire UK nuclear fleet by an average of eight years compared with its initial service life; as a responsible electricity producer, the EDF group will also carry on investing in ■ the preparations for the decommissioning of the nuclear fleet and for the waste management in France and the United Kingdom. The EDF group will continue new developments, balanced between new nuclear projects and renewable energies. The main issues concerning new nuclear projects are: the commissioning of Flamanville 3 and Taishan; ■ the building and operation of two EPR reactors at Hinkley Point, for which the ■ final contracts were signed on 29 September 2016 by EDF, CGN and the British Government; the acquisition by EDF of the exclusive control of the activities of AREVA NP ■ corresponding to the design and supply of nuclear boilers and fuel assemblies performed by the company now named Framatome, 75.5% owned by EDF (see section 1.1 "History and development of the Company"); the preparation of the reactors of the future with the EPR 2 project (as a ■ follow-up of the New Model EPR project), conducted jointly with Framatome; the development of the activities of Edvance (see section 1.4.1.2.3.4 “Creation ■ of Edvance”); the development of the EPR for the export market (with, in particular, decisions ■ taken in India).

With regard to renewable energy, the new means developed will be essentially onshore and offshore wind power, solar energy and hydropower. In December 2017, EDF announced the Solar Plan: a development plan of solar energy, aimed at installing 30GW of solar power in France between 2020 and 2035. The development of these assets outside France is undertaken in line with the EDF group’s international strategy. In this respect, the Group strengthened in 2017 its integration in the renewable energy industry by developing new projects, not only in France, but also in the United States, the UK, Germany, Middle East, Brazil, Chile, India and China (see section 1.4.1.5.3 “EDF Énergies Nouvelles”). In line with the very low carbon generation priority, EDF supports the need to implement measures to increase the price of CO 2 in order to guarantee, if possible at the European level, a CO 2 price that is sufficient and consistent with the energy transition goals. The UK and the Netherlands have adopted these pricing measures and the French government supports the principle. EDF believes that such measures should be applied to all electricity generation sectors to be fully effective. They will constitute an incentive for economic and financial operators to invest in the cheapest ways to reduce carbon emissions and help give full value to non-polluting assets. International expansion 1.3.2.3 The EDF group wants to be a key player in the energy market in France and in its core countries in Europe (United Kingdom, Italy, Belgium) by playing a role in energy security, the enhancing of economic competitiveness and the European economy low carbon transition, in line with public policies. The Group is also expanding outside Europe, by pursuing three long-term objectives: to make some non-European countries core countries for the Group, to channel its investment choices to contribute to the global energy transition, and to triple (between 2015 and 2030) the share of the "Grand International" in the Group's business. EDF is thus deploying a targeted approach in geographic terms and is giving priority to low carbon hydraulic, wind and solar generation projects as well as energy services and engineering activities. Gas-to-power infrastructure projects are also being developed where they are a key component of the energy transition. With respect to new nuclear, EDF will draw on the breadth of its experience and the expertise of Framatome to develop new opportunities in the international market (India, South Africa, etc.). Transformation 1.3.2.4 Health and safety, digital and new work practices, responsibility and simplification, skills and the recognition model are the five major levers of the Group’s transformation. The Group adapts its managerial practices by streamlining its organisations and modus operandi. For example, in 2016, two labour agreements were signed by EDF SA concerning both the introduction of a fixed number of working days for managers and an “expertise” agreement aimed at boosting the careers of employees and promoting internal mobility and promotional training. The Group has streamlined and simplified its policies, bringing them down from 200 to 40 while making them simpler to apply. Moreover, the promotion of innovation, based on experiments (“labs” and co-construction platforms with customers) and on an open innovation programme will contribute to this transformation. The creation of EDF Nouveaux Business, a department in charge of “new businesses”, has complemented the skills EDF is gradually developing in order to meet the challenges in this field. It will use the levers of incubation, investment in external start-ups (through the Electranova funds) or technological partnerships (see section 1.4.6.1.3 “EDF Nouveaux Business”). The digital transformation involves employees and internal modus operandi, customer relations and the management and design of industrial assets. The creation at end 2016 of a Transformation and Operational Efficiency Department, which combines the Group’s activities relating to information systems, purchasing, real estate and shared services, reflects the Group’s desire to speed up in this field.

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EDF I Reference Document 2017