EDF_REGISTRATION_DOCUMENT_2017

1.

PRESENTATION OF EDF GROUP Description of the Group's activities

Output of gas and hydrocarbons of Edison

2,073

4,143

4,001

2,000

4,000

1,924

Petrol and condensate out of Italy

1,500

3,000

Petrol and condensate out of Italy

1,980

Gas out of Italy

2,127

Gas out of Italy

1,000

2,000

1,403

1,636

Petrol and condensate in Italy

Petrol and condensate in Italy

500

1,000

2,163

Gas in Italy (1)

1,874

Gas in Italy (1)

521

437

0

0

2017

2017

2016

2016

Gas output In millions of cubic meters

Petrol and condensate output In millions of barrels

(1) Includes output from Croatia (Izabela gas field) imported into Italy since July 2014.

E2i holds 594MW of renewable assets (contributed 82% by Edison and 18% by EDF EN Italia) and transfers 100% of the energy generated to Edison, which uses it for integrated management of its production portfolio. EDF EN Services Italia SA, a company owned by Edison (30%) and EDF EN Services SA (70%), is responsible for operating and maintaining this platform. With the aim of developing its activities in the wind sector, at the end of 2016, E2i won a public auction for eight projects for the construction, reconstruction or extension of wind farms, for total installed capacity of 165MW, including 153MW with the guarantee of a subsidised tariff. In November, the European Investment Bank (EIB) provided Edison a line of credit totalling €150 million, with a maturity of 15 years and an availability period of 24 months, which finalised the financing for the eight E2i projects. Completion of the construction will enable E2i to increase its portfolio by more than 700MW of installed capacity. In November 2017, Eolo Energia Srl, owned by Edison Partecipazioni Energie Rinnovabili (51%) and E2i (49%), sold its 22.9% stake in Alerion (one of the leading wind power companies in Italy) within the context of a mandatory public tender offer launched by Fri-el Green Power for 100% of the Company's shares. An IPO was launched at the request of CONSOB, the Italian market regulator, due to tacit collusion. The sale price was €3.0/share vs. €2.46/share paid during the voluntary public tender offer launched by Eolo Energia at the end of 2016. In addition, outside of Edison and the partnership with F2i, EDF EN is present in Italy (see section 1.4.1.5.3 “EDF Énergies Nouvelles”). In order to streamline its generation fleet and increase the efficiency and flexibility of its portfolio, on 2 March 2017, Edison sold its 51% stake in Gever to Burgo, a company managing the Burgo paper mills and in July sold its 50% stake in Parco Eolico Castelnuovo. Internationally-speaking, Edison benefits from a well-established presence in Greece, where it is one of the main electricity operators in the country, through ElpEdison SA, with a 38% equity interest with Hellenic Petroleum, Hellenic Energy and Development (the Hellactor group) and Halcor. ElpEdison owns two CCGT plants: one in Thessaloniki (389MW) and one in Thisvi (410MW), built by Edison and selling electricity on the private users market. Finally, in Brazil, Ibiritermo, a 50%-owned subsidiary of Edison, operates a 226MW CCGT power plant.

In Italy and abroad, the Group’s gas production business through Edison increased by 7.7% compared with 2016, reaching 2.1Gm 3 . Production of oil and condensates fell by 3.4% in 2017 to reach 4 million barrels, including 1.9 million of barrels in Italy. Edison’s activities 1.4.5.2.3 Electricity generation business 1.4.5.2.3.1 At 31 December 2017, Edison's installed generation capacity in Italy was 6.4GW, with net electricity output of 19.7TWh for 2017, down by 3% compared with 2016. This was mainly due to decreased thermoelectric and hydropower output, as a result of the sale of the CCGT plants of Termica Milazzo in August 2016 and Gever in March 2017 and due to unfavourable weather conditions during the year. Edison’s generation fleet is currently made up of 89 hydropower plants, 18 thermal power plants, 33 wind farms, 5 photovoltaic plants and 1 biomass plant. Combined-Cycle Gas Turbines (CCGT) account for 84% of electricity generation, while hydropower accounts for 11% and combined wind and solar for 5%. Edison operates around 1,132MW of hydropower facilities with an output of 2.2TWh (down 11.3% compared with 2016) in line with the national average. Following the acquisition in 2016 of 100% of Alperia's hydropower facilities located on the Cellina River, in exchange for its equity interests in two hydropower joint ventures, Hydros (40%) and Sel Edison (42%), and the purchase of nine mini-hydropower plants in Piémont and Frioul - Vénétie Julienne, Edison strengthened its hydropower generation fleet in 2017. More specifically, the Company completed construction on a 4.2MW mini-hydropower plant in Pizzighettone on the Adda River and purchased Tavagnasco's 4.8MW plant in Piedmont. Edison's strategy to develop the mini-hydropower sector was also confirmed by the acquisition of 50.1% of Frendy Energy, a company listed on AIM (Alternative Investment Market) on the Milan stock exchange, which owns 15 power plants located mainly on irrigation canals in Piedmont and Lombardy. Following the acquisition of a controlling interest in the Company, Edison launched a tender offer in November to acquire the remaining 49.9% that was publicly traded which resulted in the acquisition in January 2018 of total stake of 72.9% in Frendy Energy. In the renewable energies sector, Edison also maintains a critical size, thanks to E2i Energie Speciali srl (E2i), a company created in 2014 in partnership with the F2i fund, which holds 70% of the capital, the 30% remaining being held by Edison Partecipazioni Energie Rinnovabili (EPER) which is itself 83.3% held by Edison and 16.7% by EDF Énergies Nouvelles.

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DF I Reference Document 2017