EDF_REGISTRATION_DOCUMENT_2017

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PRESENTATION OF EDF GROUP Description of the Group's activities

Research & Development 1.4.5.3.4.5 EDF has an R&D and Innovation team (EDF Innovation Lab) located in Silicon Valley, which assists with the development of EDF in the United States and contributes to innovation within the Group (see section 1.6.3 “International business and partnerships”). In 2016, this team identified the company Off Grid Electric (OGE), EDF’s partner in the supply of competitive off-grid solar energy in the Ivory Coast (see section 1.4.5.3.9 “Off-grid energy”). Citelum in North America 1.4.5.3.4.6 Citelum, an EDF subsidiary in the field of urban street lighting, is also present in the United States (see section 1.4.6.1.2 “Citelum”). On 21 November 2017, the Company signed its first contract with the city of Albuquerque to convert more than 20,000 streetlights to LED, implement an Internet of Things (IoT) architecture and deploy a central management system. Through this contract, Citelum USA is committed to reducing energy consumption and maintenance costs for a 15-year period, as well as providing better lighting and services. South America 1.4.5.3.5 In South America, the EDF group is present in the Brazilian and Chilean markets, and is extending its ambitions in certain countries in the region, in which it is prospecting for development opportunities. Brazil 1.4.5.3.5.1 Since April 2014, the Group has held 100% of EDF Norte Fluminense, following the buyback of the 10% equity interest held by Petrobras in the share capital of EDF Norte Fluminense. The company, which built and has operated since the end of 2004 the Combined-Cycle Gas plant of Norte Fluminense, with installed capacity of 827MW, located in the region of Macaé, has a supply contract for 725MW to the Light distribution company over a 20-year period. In 2017, the power plant's generation increased to 5.45TWh. When Brazil's market conditions and electricity grid permit, the remaining balance is sold on the open electricity market. In 2017, EDF Norte Fluminense sold 285GWh, between own generation (209GWh) and other energy transactions. In addition to these sales on the national market, 22GWh were generated and exported to Argentina. EDF Norte Fluminense has an additional solar power plant, intended for industrial consumption, comprising 1,764 photovoltaic modules which generated 302MWh in 2017, helping to reduce its CO 2 emissions by around 116 tonnes. In addition, on 11 December 2014, through its subsidiary EDF Norte Fluminense, EDF acquired a 51% stake in Compagnie Énergétique de Sinop (CES), which is responsible for the construction and future operation of Sinop’s hydropower facilities of an installed capacity of 400MW. The two other shareholders are Eletronorte (24.5%) and CHESF (24.5%), subsidiaries of the Eletrobras group. Construction of the dam began in spring 2014 and commissioning for commercial operations is scheduled for the end of 2018. The EDF group has an industrial role in both the construction and the future operation of the dam. At the end of October 2017, close to 94% of the construction on the electricity generation factory (civil engineering work, supply and erection of the electromechanical equipment) was completed. In line with the CAP 2030 strategic plan, the EDF Énergies Nouvelles subsidiary is accelerating its development in Latin America and notably in Brazil, where it entered the solar energy market with the two-stage acquisition from Canadian Solar Inc. of the Pirapora I (399MWc) solar project in the north of the state of Minas Gerais. EDF Énergies Nouvelles has been present in the country since February 2015, following the acquisition of more than half of the portfolio of Ventos da Bahia (see section 1.4.1.5.3 “EDF Énergies Nouvelles”). EDF is also present in Brazil via Edison, of which the 50%-held subsidiary Ibiritermo operates a CCGT of 226MW in the state of Minas Gerais, as well as via Citeluz, a subsidiary of Citelum created in 1999 and specialising in street lighting. EDF's main competitors in Brazil are ENGIE, Neoenergia, CPFL, ENEL and EDP.

Chile 1.4.5.3.5.2 Since 2013, EDF is jointly developing with its Chilean partner Andes Mining & Energy (AME) and the American company Cheniere, a gas to power project combining the design, construction, and operation of a CCGT-type power plant with a power output of around 600MW, a storage infrastructure and an LNG Floating Storage Regasification Unit (FSRU). Via its subsidiary EDF Chile, created in 2014 for this purpose, the Group has a 45% shareholding in the two project companies (Penco-Lirquén LNG terminal and El Campesino power plant), alongside BiobioGenera (45%), of which AME is the controlling shareholder and the company Cheniere owns 10%. This “gas to power” project is part of Chile's energy policy, aimed at a balanced mix of gas, hydraulic and renewable energy generation. The project nonetheless suffered a setback when the Chilean Supreme Court, in a decision on 30 January 2017, revoked the permit for the Penco Lirquen regasification terminal. At this stage, various measures have been taken to further the Group's expansion into electricity generation in Chile, including re-starting the process to obtain a permit. In addition, El Campesino power plant signed an agreement to acquire ESSA, the owner of a 750MW generation asset, which is expected to be finalised in the first half of 2018. The EDF Énergies Nouvelles subsidiary is also present in Chile with the solar power plant of Boléro (146MWc), located in the Atacama desert and inaugurated in December 2016, and the Santiago Solar photovoltaic project (115MWc), 50/50 jointly owned with Andes Mining Energy (AME). EDF Énergies Nouvelles is also pursuing its development in wind-farms with the Cabo Leones project of 115MW (see section 1.4.1.5.3 “EDF Énergies Nouvelles”). The principal competitors of EDF on this market are Endesa, AES Gener, Colbun and Engie. Furthermore, other players such as Mainstream, WPD and Gas Natural Fenosa also show ambitions in the electricity generation segment, essentially of renewable origin. Lastly, Citelum, a wholly-owned subsidiary of the EDF group, is also present in the country, in the street lighting market. (see section 1.4.6.1.2 “Citelum”). Asia-Pacific 1.4.5.3.6 The EDF group’s activities in the Asia-Pacific region are focused on China and fast developing countries. The presence in the sectors of electricity generation, networks and services constitutes an industrial challenge for the Group. In nuclear power, in addition to the project to build and operate two EPR reactors in Taishan, new projects should provide the Group with access to technological innovation and enable it to exploit its industrial expertise. EDF’s objective is, thus, to maintain its competitive and technological advantages in the international arena focused on the global nuclear programme, the equipping of emerging countries, and the perspective of the French fleet renewal. Activities in China 1.4.5.3.6.1 The EDF group has been present in China for more than 30 years through its advisory services in nuclear, thermal and hydraulic technologies. Today, it is one of China’s most significant foreign investors in electricity generation, with investments in coal-fired thermal power plants that have a total installed capacity of 2,000MW (1) . With the Taishan project Phase I (two 1,750MW reactors), EDF also became an investor with a 30% stake in an electricity generation project involving an EPR-type nuclear power plant. Lastly, the EDF group has been involved in renewable electricity generation in China since 2016 and is developing partnerships which open up new prospects for investment in the nuclear industry, renewable energies, energy services and engineering. Citelum subsidiary is also present in this country for public lighting, through the contract signed with Kunming city.

Share in the capacity corresponding to EDF’s stake. (1)

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DF I Reference Document 2017