EDF_REGISTRATION_DOCUMENT_2017

PRESENTATION OF EDF GROUP Description of the Group's activities

EDF Belgium As part of a long-term nuclear energy cooperation agreement with Electrabel, EDF holds 50% in undivided co-ownership of the Tihange 1 nuclear power plant, through its wholly-owned Belgian subsidiary, EDF Belgium. The capacity attributed to EDF represents 481MW (or 2% of Belgian generation capacity). Tihange 1 output, which is attributed to EDF Belgium is sold to EDF SA (via a long-term contract renewed at the end of 2015 for 10 additional years) which, in turn, resells the electricity to EDF Luminus at a market price. Belgium’s 2003 nuclear phase-out legislation originally provided for the closure of Tihange 1 on 1 October 2015. Nevertheless, it was finally decided to extend its operation upon 2025, following the adoption in 2012 by the Belgian government of the Equipment Plan, and the Law of 2013 amending the Law of 2003 pertaining to the timeframe for the phasing out of nuclear energy. This extension was the subject of an agreement concluded on 12 March 2014 between Electrabel, EDF and the Belgian State, defining its terms and conditions. The extension of the lifespan of Tihange 1 requires significant investment, with EDF’s share amounting to around €300 million, spread over the period from 2011 to 2020. Luminus At the end of 2017, the EDF group held 68.63% of the EDF Luminus company through its subsidiary EDF Belgium, with the remaining equity held by Belgian public shareholders. EDF Luminus is the second largest player in the Belgian energy market after Electrabel, and it holds a balanced upstream/downstream portfolio. The company, whose market share is close to 20%, possesses almost 10% of total Belgian generation capacity with 2.018MW installed at the end of 2017. The electricity generation of EDF Luminus reached 6.7TWh in 2017. The company has 1,800 employees, including the newly-acquired subsidiaries. As part of the Group’s CAP 2030 strategic plan, EDF Luminus has the ambition of developing its windfarm fleet and accelerating the deployment of its energy services in order to provide its customers with innovative and sustainable solutions, whilst pursuing its objective of reducing costs and rationalising its thermo-electrical generation fleet. EDF Luminus owns 10.2% (419MW) of Belgium’s Tihange 2 and 3 nuclear power plants (commissioned in 1983 and 1985 respectively) and the Doel 3 and 4 plants (commissioned in 1982 and 1985 respectively), which have a lifespan of 40 years. EDF Luminus also has 100MW drawing rights on the French Chooz B nuclear power plant, based on a band of guaranteed output according to the average availability of the French fleet. The Doel 3 and Tihange 2 nuclear reactors, which represent around 20% of the energy requirements in Belgium, and which had been at a standstill from 2012 to 2014, are again operational since the end of 2015. On 22 September 2017, Doel 3 was shut down to conduct a series of long-planned revisions. The inspection indicated that civil engineering work would be required for the facility's non-nuclear section, which would delay the restarting of Doel 3 until 15 April 2018. Within the overall framework of the agreement concluded on 30 November 2015 between the Belgian State and Electrabel for the extension of the two Doel 1 and Doel 2 power plants, an agreement was reached concerning the nuclear tax in Belgium for the years 2015 (200 million) and 2016 (130 million). The financial impact for the two Belgian subsidiaries of the EDF group was €34.5 million in 2015 and €18.4 million in 2016. A variable formula will apply from 2017 to 2019, with a minimum annual total of €150 million for the nuclear tax in Belgium. Apart from the drawing rights in the nuclear fleet, EDF Luminus also possesses a thermal fleet comprising several power plants (combined cycles and open cycles) for an installed capacity of 1,215MW. In a particularly unfavourable economic environment and in compliance with Belgian law that required the authorities be notified by 31 July 2016 of any possible permanent shutdown, the EDF Luminus Board of Directors validated a management proposal at its meeting of 24 June 2016 that such notification should be given for the following power plants: Seraing, Ham, Izegem and Angleur 3 with the actual shutdowns scheduled for 31 October 2017. On 13 January 2017, the Federal Minister of Energy announced a plan to renew the strategic reserve for electricity, increasing the volume to between 750MW and 900MW, in order to guarantee security of supply for Belgium, by making use of the generation units that were notified of their shutdown. Following exchanges with the European Commission, the plan's duration (one year) and volumes were reviewed. As a result, the Seraing gas power plants (485MW) owned by EDF Luminus and

Vilvoorde (265MW) owned by Energy Market were incorporated into the strategic reserve with effect from 1 November 2017 for one year at a price set by royal decree. Official notification of approval from the European Commission is expected in early 2018. Separately, EDF Luminus decided to postpone the final shutdown of the open cycles of Angleur 3 and Izegem until 31 October 2019 and has informed the competent authorities. These units are therefore available after 1 November 2017 and, as a result, are not eligible for the strategic reserve. However, a decision was also made at the end of October 2017 to shut down the Ham facility with immediate effect, as it had been notified to the authorities in 2016. EDF Luminus is moreover present in renewable energies with 7 hydropower plants and 31 onshore wind farms totalling 114 turbines spread across Wallonia and Flanders. Since the end of 2015, the Company has been the leader in onshore wind farms in Belgium and now has an installed capacity of 376MW. In 2017, EDF Luminus erected 28 wind turbines for a total capacity of 75.4MW. Sales and marketing Under its “Luminus” brand, EDF Luminus supplies electricity and gas to more than 1.7 million residential and business customers (in number of delivery points) in Belgium, with a net loss of 24,000 customers in B2C (business-to-customer) in 2017 compared with the net gain in electricity customers in 2016. Energy services The company is involved in the energy services segment for residential customers, through its subsidiaries Rami Services, Dauvister and Leenen, by providing these customers boiler installation and maintenance services, selling and managing a smart thermostat (Netatmo) as well as providing Comfort services in the event of unforseen damages to housing. At the end of 2017, the B2C portfolio for these last three services exceeded 167,000 contracts. With close to 70,000 services sold in 2017, sales more than tripled in comparison to 2014. As regards industrial customers, EDF Luminus, together with ATS, Vanparijs and Dauvister, offers comprehensive integrated electricity and heating solutions to industrial customers. In addition, its subsidiary EDF Luminus Solutions (co-owned with Dalkia (51%/49%)) is dedicated to energy efficiency services for such facilities such as administrative buildings, hospitals, schools, sports facilities, swimming pools and apartment complexes on the basis of an energy performance contract. In 2017, EDF Luminus pursued its strategy to expand into energy services by acquiring two companies: Newelec, which is in the same business as ATS but in Wallonia, and Insaver which provides installation services for photovoltaic panels, insulation and batteries to private users in Flanders. ATS also acquired Gezel II which provides HVAC services locally in the northwestern part of the country. Dauvister acquired the operating assets of Peterman Poelaert, a company specialised in boiler installation and replacement for industrial customers in Brussels and Brabant-wallon. The Netherlands Through a joint venture, Sloe Centrale BV, the EDF group and PZEM (formerly Delta) (each holding 50%) own an 870MW CCGT power plant in the southwest of the Netherlands, whose two 435MW units were commissioned in 2009. Thanks to its very high technical performance, the Sloe plant was called upon to operate in 2017 for 4,635 hours, an excellent performance under market conditions that were not very favourable to gas power plants. Switzerland The EDF group is present in Switzerland through its investments in Alpiq Holding SA (25%) and in hydraulic generation facilities in Le Châtelot (50%), Emosson (50%) and Mauvoisin (10%). Alpiq is a significant player in the European energy market, active in the generation, sale, and trading of energy as well as in energy services, and represents more than one third of Switzerland’s supply of electricity. At the end (1) of 2016, installed capacity was 5,940MW, broken down as follows: nuclear (795MW), thermal (2,160MW), hydropower (2,677MW) and other renewables (308MW). In 2016, its sales amounted to CHF 6,078 million (1) . In terms of sales, Alpiq is top-ranked among Swiss electricity companies. Alpiq’s activities rest primarily upon generation assets, which strongly exposes it to variations in market price. In order to address the new market environment which has been strongly degrading since 2011, the Alpiq group launched a significant cost

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2017 data not yet available at the date of publication of this document. (1)

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DF I Reference Document 2017