EDF_REGISTRATION_DOCUMENT_2017

1.

PRESENTATION OF EDF GROUP Description of the Group's activities

in July 2017, the first turbine (nonnuclear steam) was launched during hot ■ functional testing; in October 2017, the first fuel assemblies were put into the spent fuel pool; ■ in the beginning of 2018, attention will turn to receiving permission to load the ■ fuel from the Chinese nuclear safety regulator. For unit 2, leak tests and the passivation of the reactor building pool took place in February 2017. The Taishan EPR project will continue in 2018 with the end of startup testing for unit 1 and the last of the assemblies for unit 2 with the aim of completing all system performance testing before the end of the year. CGN, the majority shareholder, announced on 9 March 2018 that the commercial operations of Taishan first reactor were not expected to start before the end of 2018. ew Model EPR 1.4.1.2.3.3 In 2017 the work undertaken by EDF and AREVA NP-Framatome on the New Model EPR project led to the finalising of the technical configuration intended to play a role in the renewal of the nuclear fleet currently operating in France and ultimately to expand the French nuclear industry’s export offers. This “EPR2” technical configuration integrated feedback from EPR projects currently underway, especially in terms of constructability and industrialisation. It was drawn up with the aim of reducing the risk profile of the first pair of units (FOAK or "First Of A Kind" risk). It will also benefit from exchanges with nuclear safety regulators as part of the ASN's examination of the Security Options File ("Dossier d'options de sûreté") submitted to it in 2017. It confirms three aspects of the model's competitiveness: the incorporation, long before the reactor development phase, of industrial ■ aspects to take full advantage of the nuclear sector’s industrial base; the transformation of the methods and tools to enhance the effectiveness of the ■ engineering teams and the control of the management of the technical configuration of the reactor during the different phases of its development; the optimisation of some of the EPR’s technical options. ■ Creation of Edvance 1.4.1.2.3.4 In accordance with the memorandum signed by EDF and AREVA SA on 30 July 2015, a dedicated company owned 80% by EDF and 20% by AREVA NP (now Framatome) grouping together the activities of EDF and Framatome in the field of new nuclear islands was set up to optimise the design and construction of nuclear islands and the command-control of new projects in France and abroad. Edvance seeks to set a global standard in nuclear engineering, to help improve the French nuclear industry competiveness, to make new nuclear build projects more efficient and more tightly executed and thereby safer, to keep up the critical expertise of the New Nuclear industry, and to support the international development of the nuclear industry and the domestic renewal of the French nuclear fleet. Since its operational launch on 1 July 2017, Edvance has contributed to the design of the new EPR2 reactor that will replace existing reactors in France, and in 2018 it will contribute to Flamanville 3, HPC and international projects. Edvance's development strategy is divided into two main phases: in 2018 take over the activities from certain business lines under EDF (CNEN (National Nuclear Equipment Centre), SEPTEN (Thermal and Nuclear Studies and Projects Service) and CEIDRE (Centre for Expertise and Inspection in the Areas of Construction and Operation)), Sofinel and Framatome (with staff made available), and over two years embark on a transforming in order to live up to its ambition and build its own unique corporate culture. SWITCH (the digital transformation of 1.4.1.2.4 nuclear engineering) Launched in July 2017, the four-year programme feeds into EDF's CAP 2030 strategy, under sections related to managing current new nuclear projects, extending the operating life of the fleet in operation, expanding abroad and embracing digital transformation. It is a multifunctional programme involving EDF's engineering expertise and the UK arm of Nuclear New Build as well as Framatome.

Progress of on site implementation Work has entered the final phase. In 2017 new stages were reached:

at end 2017 94% of electromechanical equipment was assembled. The last of ■ the equipment will be assembled in the first half of 2018 after which it will be a matter of finishing off installations as the tests unfold; the testing milestones announced in September 2015 were reached on schedule ■ followed by interim milestones announced in October 2017: nuclear circuit cleaning, which consists of thoroughly rinsing the primary ■ coolant system and marks the beginning of the system performance testing period. The flushing ran from 15 March 2017 to 2 August 2017, “cold functional” testing which consists of running several tests including ■ testing for leaks in the primary coolant system at a pressure of over 240 bars, higher than its operating pressure. These tests began on 18 December 2017 and ended on 6 January 2018 with the hydro testing of the primary coolant system. Work is now focused on finishing off installations and speeding up testing. Finishing off the basic systems now consists of completing final assemblies, checks and unit tests before entering the hot functional testing phase. Finishing off the buildings consists of meeting the construction standards of power plants in operation (painting, filling, cleaning) before handing over to the EPR operational teams. The second priority is to speed up testing in line with safety and quality standards and on schedule so as to be ready by the start date. EDF is optimising the series of system performance tests by means of an innovative project to digitize procedures and test data management first launched in early 2017 and now fully operational. The project draws on links with other EPRs being built around the world, in particular by sharing test results and by having test providers on temporary assignment operate between sites. Progress on other “New Nuclear” projects 1.4.1.2.3 Hinkley Point C EPR 1.4.1.2.3.1 The final contracts regarding Hinkley Point C were signed on 29 September 2016 after the Final Investment Decision authorised by the EDF SA Board of Directors on 28 July 2016. HPC is owned by EDF (66.5%) and CGN (33.5%). EDF also signed two other agreements with CGN concerning studies on two nuclear construction projects in the UK, Sizewell C and Bradwell B. EDF owns 30% of TNPJVC (Taishan Nuclear Power Joint Venture Company Limited), which was set up to build and operate two EPR nuclear reactors in Taishan, in the province of Guangdong in China. CGN holds a 51% stake and Yudean a 19% stake. In 2017, unit 1 passed several important milestones in the commissioning schedule, while multiple mass assemblies continued on unit 2. EDF continued to provide technical support to the Taishan project, while simultaneously incorporating feedback from these activities. For unit 1, the main achievements in 2017 were as follows: in January 2017 the source changeover tests (excluding specific tests during hot ■ functional testing) were completed; in March-August 2017, all tests required to validate hot functional testing were ■ carried out; in April 2017, fuel was delivered on site and the containment building leak test ■ was successfully carried out with the help of the General Technical Division ("DTG"); Nuclear New Build (NNB) will be the project owner. See section 1.4.5.1.2.5 “Nuclear New Build Division”. Taishan EPR 1.4.1.2.3.2

30

DF I Reference Document 2017