EDF_REGISTRATION_DOCUMENT_2017

PRESENTATION OF EDF GROUP Legislative and regulatory environment

Coal and freight trading In April 2017, EDF Trading concluded the sale of its coal and freight business to JERA. EDFT now holds a 33% financial stake of JERA Trading, one of the largest coal traders globally. EDF Energy Services EDF Energy Services is EDF Trading’s dedicated customer platform in North America and provides comprehensive risk management services to large C&I businesses, power generators and retail energy providers. It offers all environmental products, natural gas and electricity to a portfolio of large C&I customers and is ranked in the top 10 of suppliers in North America. Additionally, it has supply agreements with retail energy aggregators who supply residential and small commercial customers Equity interests 1.4.6.4 EDF Trading Logistics 1.4.6.4.1 With a fuel oil supply volume of approximately 1 million tonnes and 2.8 million tonnes of coal delivered in 2017, EDF Trading Logistics acts as EDF’s vehicle for fuel oil purchases. It organises fuel oil and coal supply logistics operations for all of the EDF group’s thermal plants in mainland France, Corsica and France’s overseas departments, in close collaboration with EDF Trading, and controls the coal terminals in the ports of Le Havre and Saint Nazaire. In addition, EDF Trading Logistics provides the Group its expertise in regard to managing risks relating to the transport of fuel oil (hazardous materials), an activity that has received ISO 14001 certification, and in the management of environmental crises arising from this activity. Other equity interests 1.4.6.4.2 As well as interests in local distribution companies or LDCs (SMEG, Enercal, Électricité de Mayotte, EDSB), the EDF group has industrial subsidiaries and EDF group entities are subject to a wide variety of regulations in the conduct of their business activities. In particular, EDF is subject to the European legislation on the electricity and gas markets, which has been transposed into French law, as well as to the applicable environmental, nuclear power, health and safety regulations. The following review of legal and regulatory provisions is not designed to be an exhaustive description of all such provisions that are applicable to the EDF group. 1.5.1 As of 31 December 2017, the French State held 83.50% of EDF’s share capital and 83.60% of EDF’s voting rights and, pursuant to Article L. 111-67 of the French Energy Code, must at all times hold at least 70% of EDF’s capital. As an undertaking in which the French State holds a majority share, EDF is subject to the provisions of Order no. 2014-948 of 20 August 2014 on the governance and equity transactions of companies with a public shareholding and its Application Decree no. 2014-949 of the same date. The French Government Shareholding Agency (APE), which was founded by Decree no. 2004-963 of 9 September 2004, fulfils the State’s remit in its capacity as EDF’s shareholder and, in this respect, proposes and implements the State’s decisions and guidelines, in consultation with the ministers concerned. In accordance with the legislation that applies to all undertakings of which the State is a majority shareholder, EDF may have to undergo certain State audit procedures, in particular through an economic and financial evaluation assignment, pursuant to Decree no. 55–733 of 26 May 1955 on State economic and financial evaluation and Decree no. 53–707 of 9 August 1953 on State evaluation of national public EDF AS A PUBLIC UNDERTAKING 1.5

throughout the US and Canada. EDF Energy Services is the first generation services provider for third-party power stations in the US, dispatching over 30,000MW of generation output across 115 power stations and dozens of Load Demand Response customers. Some of these customers are European entities or are present in Europe, allowing EDF to serve their needs on a global scale. In 2017, EDF Energy Services expanded its business footprint and its customer base. It is now licensed to do business in every deregulated power market and most gas markets. It has developed a digital, integrated platform to enable its customers to access information relating to their energy consumption more efficiently and to scale their operations for future growth. EDF Energy Services also launched its first electric vehicle charging station at the University of Notre Dame campus in Indiana, and signed two new agreements to holdings. These companies contribute, within their specific field of activities (generation, fuel, engineering) to the Group's missions, and more specifically, to those of generation and engineering: namely to ensure the short- and medium-term performance of EDF's portfolio of generation assets in France. These companies include SAE, which specialises in fuel transport and trading operations on behalf of the EDF group; SHEMA, which specialises in hydropower generation by small power plants; and SOCODEI, a wholly-owned subsidiary of EDF specialising in the treatment and packaging of low- and intermediate-level radioactive waste. In continental Europe outside France, EDF has launched a strategic review of its energy generation assets based on fossil fuels. For recent changes in the dedicated asset portfolio, see section 5.1.6.1.6 “Management of financial risk on EDF SA's dedicated asset portfolio”. undertakings and certain organisations, the purpose of which has an economic or social component. EDF also has to undergo the audit procedures performed by the French General Accounting Office (Cour des Comptes) and Parliament. Thus, in addition to the control performed by the Statutory Auditors, the Company’s accounts and management and, where applicable, those of its directly-held majority subsidiaries, fall under the control of the French General Accounting Office, in accordance with Articles L. 111-4, L. 133-1 and L. 133-2 of the French Code of Financial Jurisdictions. Moreover, the Legislative Decree of 30 October 1935 allows the Minister for the Economy to have EDF audited by the General Finance Inspection Office. Lastly, the disposal of EDF shares by the State, or the dilution of the State’s stake in EDF’s capital, is subject to a specific procedure under Order no. 2014-948 of 20 August 2014 on the governance and equity transactions of companies with a public shareholding. Among other things, this Order simplified the previously applicable rules that resulted from the so-called “privatisation” Laws no. 86–793 of 2 July 1986, no. 86–912 of 6 August 1986 and no. 93–923 of 19 July 1993. manage battery projects.

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LEGISLATIVE AND REGULATORY ENVIRONMENT

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PUBLIC SERVICE IN FRANCE

Statutory definition of public service in France Articles L. 121-1 et seq. of the French Energy Code outline the framework for the public electricity sector (see section 1.5.3.2 “French Legislation: Energy Code” below for a description of this regulation).

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EDF I Reference Document 2017