EDF_REGISTRATION_DOCUMENT_2017

PRESENTATION OF EDF GROUP Description of the Group's activities

Framatome's activities The main activities of the newly constituted Framatome group are:

The programme seeks to mark a turning point in engineering by: transform and simplify processes and methods to better grasp the complexity of ■ big industrial projects throughout their life cycle by applying systems engineering standards, among other methods; digitize processes using a data-centric approach based on an integrated, ■ collaborative and industrial high-performance information system within an extended enterprise model. Accordingly a call for tenders was issued at the end of 2017 to find a digital partner (software publisher and systems integrator) able to work on PLM (Plant Life Management) tools from 2018 and thereby support the digital transformation. Framatome 1.4.1.3 In accordance with the non-binding memorandum of understanding signed between EDF and AREVA SA on 30 July 2015 and updated on 28 July 2016, on 31 December 2017 EDF acquired 75.5% of the capital and voting rights of New NP, an entity spun out of the AREVA group and combining activities relating to nuclear reactor and equipment design and manufacturing, fuel assemblies and installed base services. The adjusted value of 100% of New NP equity was €2.47 billion excluding debt, equivalent to a forecast EBITDA multiple of 8x (1) . This figure may be adjusted upwards or downwards depending on the definitive financial statements at 31 December 2017 on which date the transaction will come into effect. Depending on whether certain performance targets measured after the effective transaction date are reached, a potential price earn-out of up to €245 million may also come into play. The contracts for the EPR Olkiluoto 3 project and the resources required to complete the project, as well as certain contracts relating to components forged in Le Creusot plant, will stay within AREVA NP, in AREVA SA’s scope. This signature took place following the positive opinion issued by the ASN on the commissioning of the Flamanville 3 EPR vessel. This follows on from the implementation and satisfactory conclusions of the quality audits carried out in the plants at Le Creusot, Saint-Marcel and Jeumont concerning contracts taken over by Framatome. For these contracts, in any case, EDF remains guaranteed by AREVA SA against residual risk resulting from these audits. Mitsubishi Heavy Industries LTD (MHI) and Assystem took equity stakes of 19.5% and 5% respectively on the effective date of the transaction between EDF and AREVA, i.e. 31 December 2017. New NP renamed Framatome in January 2018. Framatome is an SAS (simplified limited company) with a Management Board (comprising the Executive Chairman and the General Director of Framatome) and a Supervisory Board (comprising in view of the current shareholding of eight members nominated by EDF including the Board's Chairman, three Framatome employee representatives, two independent members, one representative of MHI, and one representative of the French government). Within and subject to the powers assigned to the partners, the Supervisory Board oversees the running of Framatome by the Management Board and its Executive Committee. Decisions by the Supervisory Board are taken by a simple majority of its members except for certain decisions requiring the affirmative vote of at least one EDF member, one MHI member and one independent member.

an industrial business consisting of designing, manufacturing and installing ■ nuclear power plant components for the existing fleet, for instance as part of managing large new reactor projects; a service business aimed at improving the availability and competitiveness of ■ nuclear facilities while enhancing the safety conditions of boilers by means among other things of instrumentation and control systems; a fuel assembly manufacturing business serving electricity companies and some ■ research reactors. These businesses are run via six business units located in France, Germany and the United States: the Engineering Design Authority unit develops, designs, certifies and licenses ■ boilers and provides related services; the Large Projects unit manages and undertakes the building of new nuclear ■ reactors from engineering to commissioning; the Installed Base unit provides maintenance and engineering services to existing ■ nuclear fleets and those under construction; the Fuel unit develops, designs, licenses and manufactures fuel assemblies and ■ components for PWRs, BWRs and research reactors and makes zirconium products; the Components unit designs and manufactures heavy and mobile nuclear power ■ plant components; the Instrumentation & Control unit designs and manufactures systems for the ■ safety of boilers in operation and new reactors. EDF was a big customer of Framatome before the acquisition that took effect on 31 December 2017 and will remain so afterwards. The EDF group turns to Framatome to manufacture its fuel assemblies and to maintain its power plants and purchase and install relevant equipment such as steam generators. Framatome also supplies boilers and instrumentation and control systems to EDF, from study to commissioning, for new reactors under construction, namely the Flamanville 3 and Hinkley Point C EPRs. Thermal generation in mainland France 1.4.1.4 EDF’s electricity generation from its thermal power plants in mainland France represented approximately 3.8% of its total electricity generation in 2017. During the same period, this fleet had a total installed operating capacity of 6,210MW. Thermal generation assets have a number of advantages: they are very responsive and flexible (quick to start up and power can be modulated), and they have relatively low investment costs and short construction times. Thermal generation assets are one of the key components of the energy mix to ensure the balance of generation and consumption in real time by accommodating fluctuations in electricity consumption and renewable energy generation (sun and wind power in particular). Together with some hydropower facilities (lakes, pumped storage plants), they are used to meet mid-merit and peak demand electricity requirements. The also help to regulate the system and thereby contribute to maintaining suitable voltage and frequency levels across the grid.

1.

Normalised pro forma EBITDA for the acquired activities, excluding major projects. (1)

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DF I Reference Document 2017