EDF_REGISTRATION_DOCUMENT_2017

1.

PRESENTATION OF EDF GROUP Description of the Group's activities

In addition the Group, through its subsidiary, EDF Énergies Nouvelles, owns two wind farms, of 48MW in Linowo and 58MW in Rzepin (see section 1.4.1.5.3 “EDF Énergies Nouvelles”). In October 2015, DK Energy Polska, a subsidiary of Dalkia SA in Poland, acquired 100% of the shares of Zaklady Energetyki Cieplnej Katowice SA (ZEC), a company which is mainly specialised in the generation and distribution of heat in the region of Katowice (Upper Silesia) and a leader in the area of mine gas recycling. This acquisition was intended to serve as a base for the development in the Polish market of the Dalkia offer in energy services for industrial businesses and local communities (heating networks and energy-efficiency) and to develop the use of mine gas as a substitute for coal. Russia The EDF group is present in Russia in the energy services sector, via the local subsidiary sold by Fenice to Dalkia, newly renamed DK Energy Russia (see section 1.4.6.1.1 “Dalkia”). Southern Europe 1.4.5.3.3 Spain At 31 December 2017, the EDF group held 31.48% of the capital of Elcogas, a 320MW power plant of the ICCG type (Integrated Combined-Cycle Gasification), alongside Endesa Generación (40.99%) and Iberdrola Generación (12.0%). Since the profitability of the power plant was no longer assured, it was disconnected from the network in 2016 and a process of dismantling, which is likely to take place over a period of around three years, is on-going. Elcogas signed a put option agreement over land and certain facilities with Papetier Ence group. The Ence group has until June 2018 to exercise this option for the purpose of developing and building a 50MW biomass power plant on the site. The Group is also present on the Spanish market through the local subsidiary Fenice (EDF Fenice Iberica, see section 1.4.5.2.2 “EDF group's activities in Italy”) and the Citelum subsidiary (see section 1.4.6.1.2 “Citelum”). The 2017 sale of renewable assets owned by EDF EN in Spain should be noted (see section 1.4.1.5.3. “EDF Énergies Nouvelles ”). EDF Trading operates in this market from its trading platform in London (see section 1.4.6.3 “Optimisation and trading: EDF Trading”). Lastly, since 2015, EDF Invest has held a minority stake in Madrileña Red de Gas, the operator of the main gas distribution network in the Madrid region (see section 5.1.3.3.2 “New investments and partnerships”). North America 1.4.5.3.4 The EDF group operates throughout the North American continent, with a strong presence in the United States. It has more than 5.3GW of installed capacity in North America. It also manages, on behalf of third parties, around 36GW of installed capacity under operation and investments in nuclear generation, related to its 49.99% stake in CENG ■ (“Constellation Energy Nuclear Group”), a joint venture with the Exelon group (leading American nuclear operator) in three nuclear power plants. CENG has installed capacity of 4GW (i.e. 2GW consolidated by EDF group). These three facilities are operated by Exelon; renewable energies, with a net capacity of 4GW, mainly located in the United ■ States through EDF Renewable Energy, a wholly-owned American subsidiary of EDF Énergies Nouvelles. Equally, EDF Renewable Services (a wholly-owned subsidiary of EDF Renewable Energy) manages close to 10GW in North America through operation and maintenance contracts on its own account or on behalf of third parties; trading, throughout the entire value chain in North American gas -and electricity ■ markets through EDF Trading North America, and the supply of energy management products in the US and Canada through EDF Energy Services (a wholly-owned subsidiary of EDF Trading North America); maintenance or optimisation services contracts. EDF’s activities in North America mainly include:

reduction plan as well as profound restructuring measures. These measures include the opening up of its energy services business to investors (made up of Digital & Commerce, Industrial Engineering and Building Technology & Design) as well as an ambitious programme of disposals, including Swissgrid, AVAG and AEK, which contributed to reducing the net indebtedness of the Group to less than CHF 1 billion, with the cash flow originating from operational activities. Germany In 2016, jointly with the Dutch infrastructure fund DIF, EDF Invest took a 50% equity stake in Thyssengas, the gas transmission network operator in West Germany. The EDF group also has storage for natural gas in salt cavities located in Etzel. The aboveground facilities are operated through a 50/50 joint-venture with EnBW (see section 1.4.6.2.2 “Gas assets and projects”). Via its subsidiary EDF Gas Deutschland, EDF also holds a 16% stake in BEP gas pipelines (Bunde-Etzel- Pipelinegesellschaft). The Group owns 50% of a run-of-river hydropower plant located in Iffezheim on the Rhine River (148MW, 5 turbines, extension work on this plant was completed in 2013). EDF Deutschland holds an 11.67% stake in the Berlin-based start-up ubitricity, which provides recharging solutions for electric vehicles. In Germany, EDF EN developed, built and then resold more than 100MW onshore (build & sale), and now has a development pipeline of around 100MW. EDF EN also holds a 72% stake in REETEC, a service provider for onshore and offshore wind power based in Bremen. In July 2017, via REETEC, EDF EN acquired the German company, Off-shore Wind Solutions GmbH (OWS), specialising in the offshore operation and maintenance of wind farms. Since July 2017, EDF EN also owns an 87.5% stake in Futuren, a French company specialising in onshore wind farms in France, Germany, Morocco and Italy. In Germany, Futuren operated 139MW and manages 357MW on behalf of third parties (see section 1.4.1.5.3 “EDF EN”). EIFER, a research centre which reports to EDF's R&D department, is based in Karlsruhe and has more than 110 employees. Its work focuses on the optimisation of energy resources and decentralised generation (integration of renewables), energy in cities and local communities as well as energy conservation and the environment (electro-mobility, Power-to-Gas, Smart Cities). Electranova Capital holds a stake of around 13.4% in Sunfire, a Dresden-based company which develops high-temperature electrolysers (Power-to-Gas and Power-to-Liquids). Lastly, EDF Trading actively participates on commodities market in Germany, especially the intraday and gas markets. Central and Eastern Europe 1.4.5.3.2 Poland On 13 November 2017, EDF finalised the sale of EDF Polska's assets (cogeneration and electricity generation) to PGE Polska Grupa Energetyczna SA after obtaining all the regulatory approvals and authorisations required under the sales contract signed between EDF and PGE on 19 May 2017. This sale includes the Rybnik power plant, coal cogeneration power plants in Krakow, Czechnica, Gdansk, Gdynia and Wroclaw as well as gas cogeneration power plants in Torun, Zawidawie and Zielona Gora, representing total installed capacity of 4.4GWth and 1.4GWe respectively. It also includes heating networks in Czechnica, Torun, Zawidawie and Zielona Gora. The Wroclaw power plant as well as the power plants and heating networks in Czechnica, Zawidawie and Zielona Gora are indirectly owned (50% +1 share) via Kogeneracja. The transaction was made based on EDF Polska being valued at around 6.1 billion zlotys on a full consolidation basis (i.e. close to €1.4 billion). It has contributed to a decrease in EDF group's net indebtedness in the amount of €1.0 billion. This transaction is part of a plan to sell at least €10 billion of assets, undertaken by the Group in 2015-2020. This transaction will also reduce EDF group's carbon footprint by around 23%. EDF group is present in Poland, through its subsidiaries EDF Énergies Nouvelles, DK Energy Polska and Fenice Poland, and intends to remain the Polish government's partner in the development of the country's energy mix and its nuclear programme.

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DF I Reference Document 2017