E DF group is the world’s leading - EDF France · E DF group is the world’s leading ... by €1 billion between 2015 and 2019, ... aÊcompany with expertise in energy services

EDF group is the world’s leading electricity company and global leader for low-carbon energy production. Particularly well established in Europe, especially France, the UnitedÊKingdom, Italy and Belgium, as well as North and South America, the Group covers all businesses spanning the electricity value chain – from generation to distribution and including energy transmission and trading activities – to continuously balance supply. A marked increase inÊthe use of renewables is bringing change to its electricity generation operations, which are underpinned byÊa diversified and complementary energy mix founded on nuclear power capacity. EDF offers products and advice to help residential customers manage their electricity consumption, to support the energy and financial performance of its business customers, and to help local authorities find sustainable solutions.

BECAUSE OUR FUTURE IS ELECTRIC – ANDÊIT’S ALREADY HERE.

€71.2 billionSales

€16.4 billionEBITDA

€4.1 billionNet income

(Group share)

€14.4 billionGross operational

investments

584.7 TWhGroup

electricity generation

88% Group

carbon-free generation(1)

(1) Direct emissions excluding the life cycle analysis

of generating plant and fuel.

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“The Grand Carénage programme, Linky smart meters,

renewable energy and theÊHinkley PointÊC project –ÊtoÊquote just theseÊ– will

further entrench our position as an effi cient and responsible

electricity company championing low-carbon growth.”

O is for outlook

What is the outlook for 2017?

The company is forging ahead. We are feeling positive, even if 2017 will again be a difficult year. We will need to stay focused and continue our past efforts. Our perseverance will pay off starting in 2018, which will see an upswing.

T is for transformation

How is the Group’s transformation progressing?

Our transformation is at the same time cultural, technological, digital and operational. Despite the complexity, tangible progress has been made. We owe this to the engagement of our teams and our increasing openness to the outside world. This transformation is also stimulated by the partnerships formed with new stakeholders. This is crucial for the digital and energy transition of society and the economy. Our role is to make it easy for our customers to adopt consumption and production practices that are more autonomous, more efficient and better for the environment. EDF makes a twofold contribution to these profound changes in the way energy is used: commercially by launching innovative products and services, and industrially with its low-carbon generation mix underpinned by the complementary fit between nuclear and renewable energy. We are exporting this balanced mix to other countries that are committed to lowering their carbon dependency.

A is for advance We often read that EDF is confronting

a “wall” of investments. What is your response?

There are two ways of looking at investments: an “impenetrable” wall or a fabulous opportunity to advance. Of course, we believe in the latter. To remain competitive and ensure we successfully complete our CAP 2030 programme, EDF must invest. The Grand Carénage programme, Linky smart meters, renewable energy and the Hinkley Point C project – to quote just these – will further entrench our position as an efficient and responsible electricity company championing low-carbon growth. These investments will, in particular, provide access now and in the future to competitively priced electricity. Indeed, ours is among the cheapest in Europe.

I is for investments

Is EDF in a strong enough position to withstand these investments for the future?

If you are to invest, you need to have a good balance between debt and equity. EDF’s equity has been boosted by a €4 billion capital injection of which €3 billion was subscribed by the French government, by reducing our operating expenses by €1 billion between 2015 and 2019, and by the rapid progress in our non-strategic asset divestment programme, like the one implemented by French grid operator RTE. Moreover, we are on target with the rollout of our performance plan, and its smooth implementation further underpins our strategy.

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EXECUTIVE COMMITTEE

April 2017

Marc BenayounGroup Executive ViceÊPresident with responsibility for Gas and Italy, Deputy Director of Edison.

Jean-Bernard LévyChairman and Chief Executive Offi cer.

Antoine CahuzacGroup Senior Executive Vice President, Renewable Energies, Chief Executive Offi cer of EDF Énergies Nouvelles.

Henri LafontaineGroup Senior Executive ViceÊPresident, Customers, Services andÊRegional Action. He supervises Dalkia, Citelum. He also heads the Commercial Division.

Xavier GirreGroup Senior Executive ViceÊPresident, Group Finance.

Véronique LacourGroup Senior Executive ViceÊPresident in charge ofÊTransformation andÊOperational Effi ciency.

Philippe TorrionGroup Senior Executive ViceÊPresident, Innovation, Strategy and Planning. He supervises EDF Trading.

Pierre TodorovGroup Senior Executive ViceÊPresident, Group General Secretary.

Alexandre PerraExecutive Committee Secretary.Xavier Ursat

Group Senior Executive Vice President, New Nuclear Projects and Engineering. He supervises Sofi nel.

Dominique MinièreGroup Senior Executive Vice President, Nuclear and Thermal.

Simone RossiGroup Senior Executive ViceÊPresident, International Division.

Vincent de RivazGroup Senior Executive ViceÊPresident, Chief Executive Offi cer of EDF Energy.

Marianne LaigneauGroup Senior Executive ViceÊPresident,ÊHuman Resources.

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BOUCHAIN

EDF and GE commissioned theÊfi rst combined cycle natural gasÊpower plant equipped withÊthe 9HA turbine that hasÊaÊmaximum output of 605ÊMW. The benefi ts include performance unmatched anywhere in the world (61%Êoutput effi ciency) andÊCO2 emissions 55% lowerÊcompared to a conventional thermal powerÊplant.

77 grams of CO2/kWh emitted by EDF facilities worldwide in 2016. For the first time, EDF is awarded the maximum score of A by CDP Climate Change, providing recognition of EDF’s corporate responsibility.

RENEWABLE ENERGY + Catalan Wind Farm. Commissioning of the wind farm with 96ÊMW installed capacity in southeast France. This wind farm is equipped with “stealth” turbines, the fi rst solution in the world enabling the coexistence of wind turbines and weather radars. + Chile. Inauguration on 1ÊDecember 2016 of the Bolero Solar Park in the Atacama Desert, Chile, the most powerful the Group currently operates. Construction of the Santiago Solar Park launched. + French Guiana. Kick-offÊforÊtheÊ100%-renewable energy smart grid using hydropower and biomass toÊsupply electricity to remote villages.

TARGETED ACQUISITIONS Dalkia has gained a foothold on the US energy effi ciency market by opting for future-focused markets with: + Groom Energy Solutions, aÊcompany with expertise in energy services solutions for the mass retail, cold storage, hospitality and food & beverage sectors; and + GroSolar, a company specialising inÊthe sale and installation of solar systems for local authorities and commercial and industry customers.

Aerial view of the Bolero Park, Chile, equipped with photovoltaic panels.

37.1 million customers In 2016, more than 75% of customers signed a new contract with EDF, and customers declared they were either very satisfied (57%) or satisfied (90%) with EDF’s services. This level of satisfaction is reflected in the four customer relations awards earned by the Group.

3 million Linky smart meters installed by early 2017 by Enedis, EDF’s independent management subsidiary.

MAIN EVENTS

Captured from a drone,

the turbines of the Catalan

Wind Farm, near Perpignan, France,

managed by EDF Energies Nouvelles.

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ELECTRIC DAYS

On 24 and 25ÊJanuary 2017, EDF presented over 90Êinnovations in the form of demonstration trials and live sessions. Held in the Grande Halle de la Villette, in Paris, the event attracted 250Êexperts andÊ3,000Êrepresentatives of major account clients, startups, local offi cials, decision-makers and opinion leaders.

NUCLEAR + Hinkley PointÊC. EDF, the British Government and Chinese nuclear group CGN agreed on a way forward for the Hinkley PointÊC project. Included in the Group’s new fi nancial trajectory, this project is based on an electricity price guaranteed for thirty-fi ve years. + Areva NP. New ArevaÊNP, a future EDF subsidiary, will combine all nuclear reactor design and supply business together with equipment, fuel assemblies and installed base services.

NEW PRODUCTS AND SERVICES + Sowee. A connected station and energy service that is revolutionising comfort in the home. It includes a station coupled with an app to control power consumption and comfort, and also allows for the remote control of connected devices. + Mon Soleil et moi. Provided by EDF Energies Nouvelles Réparties, Mon Soleil et moi is a service that lets homeowners consume the electricity they produce with or without a storage battery. + Off Grid Electric, a Californian startup, and EDF have introduced a new off-grid solar power service to bring electricity to consumers inÊWest Africa. Initially introduced in Côte d’Ivoire, it comes in the form of a kit with solar panels and a battery.

SHAREHOLDERS’ EQUITY EDF has acquired new fi nancial resources to enable it to implement its energy transition strategy, fi nance its major projects and improve itsÊfi nancial fl exibility. + Capital increase. A €4Êbillion capital increase in March 2017 with preferential subscription rights for shareholders. The French State took up €3Êbillion of this capital increase. + Asset sales. In 2016, asset sales totalling €6.7Êbillion were signed or completed, that is, 67% of the target set for the 2015-2020 period. On 14ÊDecember 2016, Caisse des dépôts et consignations and CNP Assurances committed to acquiring 49.9% of the share capital in French grid operator Réseau de transport d’électricité (RTE).

Hinkley Point C worksite in Somerset, United Kingdom.

EDF’s Electric Days, a two-day event

in Paris, took visitors on trip to the heart

of innovation.

At the Electric Days, Futura (Pepper

robot)attracted visitors and predicted

the energy future in 2051.

384 TWhnuclear generation in France and 65.1 TWh in the United Kingdom, breaking EDF Energy’s previous record set in 2003.

MAIN EVENTS

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