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FACTS & FIGURES

2012

Disclaimer
This presentation does not constitute an offer to sell securities in the United States or any other jurisdiction.

No reliance should be placed on the accuracy, completeness or correctness of the information or opinions contained in this presentation, and none of EDF representatives shall bear any liability for any loss arising from any use of this presentation or its contents.
The present document may contain forward-looking statements and targets concerning the Groups strategy, financial position or results. EDF considers that these forward-looking statements and targets are based on reasonable assumptions, which can be however inaccurate and are subject to numerous risks and uncertainties, many of which are outside the control of the company, and as a result of which actual results may differ materially from expected results. Important factors that could cause actual results, performance or achievements of the Group to differ materially from those contemplated in this document include in particular the successful implementation of EDF strategic, financial and operational initiatives based on its current business model as an integrated operator, changes in the competitive and regulatory framework of the energy markets, as well as risk and uncertainties relating to the Groups activities, its international scope, the climatic environment, the volatility of raw materials prices and currency exchange rates, the strengthening of safety regulations, technological changes, changes in the general economic. Detailed information regarding these uncertainties and potential risks are available in the reference document (Document de rfrence) of EDF filed with the Autorit des marchs financiers on April 5, 2013, which is available on the AMF's website at www.amf-france.org and on EDFs website at www.edf.com. EDF does not undertake nor does it have any obligation to update forward-looking information contained in this presentation to reflect any unexpected events or circumstances arising after the date of this presentation.
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Before Starting

2012 Facts & figures news

The 2012 Facts & Figures contains the following new items:

An updated strategy part A dedicated sustainable development part A focus on Edisons activities in the financial section

To help you understand the terms used, you will find a glossary at the end of the document Moreover, you will find throughout the document some Did you know? take-away boxes, which enlighten a specific concept Many other information are available in our reference document, which you can download under: http://shareholders-and-investors.edf.com/news-and-publications/reference-documents-45430.html

Get the most of this document!

To help you navigate through this document, hypertext links haven been incorporated

A click on the EDF logo will bring you back to the main table of contents (p.5)

Within the document, a title bar indicates in which part of the document you are in. A click on the arrow with the name of the part will bring you back to the beginning of this part:

EDF main businesses

Generation

Networks

Optimization - Trading - Supply

Gas

Table of contents
The EDF Group
EDFs strategy within the energy sector EDF main businesses EDF Group corporate responsibility approach and process
6 42

51
146 158

Financials
Market data Appendices

202
213
5

FACTS & FIGURES

2012
The EDF Group

The EDF Group

EDF strategy

EDF main businesses

Corporate responsibility

Financials

Market data

Appendices

The EDF Group


Overview of the EDF Group
8

A state-owned listed company

23

Country profiles

29

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

EDF at a glance
An integrated model optimizing the whole value chain

Worldwide leader in the electricity sector, #1 nuclear operator Operational excellence and valuable experience across the electricity value chain (generation, networks, supply and optimization / trading) A reinforced financial solidity with the highest credit rating in the industry, backed by a very strong liquidity position

Strong defensive characteristics in a difficult economic environment


Strong ties to the French State (~85% ownership) Much of EDF business is regulated (networks) or highly visible (tariffs, PPA) A lower exposure to commodity price risks compared to its peers

Well positioned to thrive in a low carbon world

A low-carbon strategy driven by nuclear and renewables

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

The key factors for success in 2012


1 Demonstration of the integrated and diversified model strength D

Excellent nuclear performance in the UK (+7.5 %) and sharp rise in hydropower production (+28.7%) that partially offset the lower nuclear output in France (-3.8%) Record of renewable plants commissioning: +1,550 MW Improvement of the operational performance of distribution in France

2 Financial structure consistent with the industrial model CSPE: agreement on the recovery deficits and allocation to dedicated assets Successful inaugural hybrid bond issuance under the ongoing debt management 3 Industrial and responsible priorities Finalization of Edison takeover allows for major positions in the Italian energy market and an international gas platform for the Group Over 6,000 new hires in 2012, including 2,000 positions created
9

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

The Groups economic equation: key topics in 2013

Tariff equation in France

ARENH formula(1)

New Nuclear Build in the United Kingdom

ERDF(2)
(1) Regulated access to historical nuclear electricity. See page 29 for more details (2) EDF 100% owned distribution business in France

10

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

Tariff equation in France


Tariff structure in France not commensurate with increasing investments in generation fleet Average bill breakdown including VAT Blue residential tariff in France 143/MWh(1)
Other taxes (VAT + TCFE + CTA) CSPE TURPE Supply costs Shape factor Baseload power 2.2bn Capex for maintaining generation fleet in bn2012 Generation component (baseload + shape factor) of residential blue tariff in 2012/MWh 3.3bn

22%
9% 31%

Shape factor

38/MWh

Tariff (excl.tax) =97/MWh

8% 3% 27%

Baseload

2010

2011

2012

Generation component accounts for less than 30% of total selling price and is stable in real terms
(1) As of 1 January 2013 average annual consumption of 4.843 MWh / year annual bill of 693 including tax

11

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

ARENH formula
Definition of the ARENH formula in 2013 to boost visibility

Price of ARENH set consistently with the TaRTAM at 40/MWh in July 2011, then 42/MWh at 1 January 2012 Principles of the NOME law of December 2010

Convergence of the baseload power component of tariffs towards ARENH in 2015 The price of ARENH must reflect the economic conditions of nuclear generation, i.e. the total current economic cost of the existing nuclear fleet evaluated by the Cour des Comptes(1) to be 54.22010/MWh on 2011-2025 The current level of 42/MWh does not reflect the total economic cost of generated MWh

Completion of changes by end-2013


(1) Government Audit Body

12

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

Making the right decision on Nuclear New Build in the UK


Major progress on the Hinkley Point C project in 2012 Main phases accomplished leading to investment decision
By EDF
Negotiations with the main suppliers

By the UK government and regulators


Certification by the nuclear safety authority

of Hinkley Point C
Strengthened organisation implemented
Hinkley Point C site Shovel ready Agreement with the local authorities

of EDFs organisation for building and operating the HPC site (Nuclear Site License)

of the design of the EPR (Design Acceptance Certificate)

Recommendation for the building permit obtained from the

Secretary of State for Energy and Climate Change on March 19


Publication of the Energy law and vote upon

second reading

Objective: Commercial close: conclude negotiations on the CfD(1) by the end of 2013 Financial close: make an investment decision as soon as possible after the commercial close
(1) The Contract for Difference is a contractual mechanism encouraging investments in energy sources with low CO 2 emissions

13

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

Issues faced by the distributor

French State Council overruling of electricity distribution tariffs for the period 2009-2013 (TURPE 3) because of inadequate methodology for calculating tariff
CRE

consultation of 13 February 2013 has confirmed a negative impact of only 62m for the new TURPE 3

Need for consistency of dimensions of ERDF model


Contractual Tariff

dimension

dimension Redefining an economic vision for ERDFs compensation

14

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

EDF Group key figures


Operational figures (2012)

Financials (2012)

~39.3 million clients worldwide (gas and electricity) 139.5


o/w

Sales: 72.7bn EBITDA: 16.1bn Net financial debt: 39.2bn(2) Ratings: A+ stable(3) (S&P) / Aa3 neg (Moodys)/ A+ stable (Fitch) / AA+ (JCR)

GW(1)

installed worldwide

74.7 GW nuclear 37.9 GW thermal plants 26.9 GW hydropower and renewable

~1.4 M km of networks, both for Transmission and Distribution through its affiliated companies ~160,000 employees
o/w ~ 38,000 o/w ~ 38,000 o/w ~ 15,000 in French distribution in French generation and engineering in EDF Energy

Environmental and social responsibility (2012)


Vigeo: overall score of 55/100 FTSE4Good: integration of EDF to the index in March 2012

(1) Net generation capacity (2) Pro-forma after allocation of the CSPE deficit to dedicated assets on 13 February 2013 and subtraction of 2.4bn from dedicated assets portfolio, enabling 100% coverage of the EDF nuclear liabilities that are eligible for dedicated assets (3) Downgrade from AA- to A+ on 18 January 2012 following France downgrade

15

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

The EDF Executive Committee (1/2)


Henri PROGLIO
Chairman and CEO A graduate from HEC, Henri Proglio has been appointed Chairman and CEO of EDF in November 2009, after being a non-executive director since September 2004. Before that, he was Chairman and CEO of Veolia Environnement from 2003 to November 2009. He is also a non-executive director in other CAC 40 Groups. On top of that, he is a member of Committee for Atomic Energy, of the Committee for Transparency and Information on Nuclear Safety as well as Chairman of the association Electra.

Marianne LAIGNEAU
Group Senior Executive Vice President , Human Resources

A graduate of the Ecole Normale Suprieure de Svres, the Ecole Nationale dAdministration (Condorcet Promotion) and the Institut dEtudes Politiques in Paris, she also holds an aggregation in Classics and a Masters Degree in French Literature. She joined the Council of State in 1992 and became Counselor in 2007. In December 2010, she has been appointed Group Senior Executive Vice President Human Resources, after having been Corporate Secretary from June 2007 to December 2009 and General Counsel from January 2005 to December 2009.

HENRI LAFONTAINE
Group Senior Executive Vice President, Customers / Optimization / Trading and the Island Energy Systems

A graduate from Suplec, mathematical master, Henri Lafontaine joined EDF in 1983 where he occupied a variety of positions in France at the Directorate of Distribution and International as the CEO of EDENOR. Since September 2012, he is Group Senior Executive Vice President in charge of Customers, Optimization and Trading as well as Island Energy Systems. He is also a non-executive director in several companies: EDFI, EDF Energy, Fenice, EDF Luminus, Electricit de Strasbourg.

Pierre LEDERER
CEO special advisor

A graduate of Physical Science and Mathematics, Pierre Lederer joined EDF in 1974. He was appointed Chief of the General Economic Studies Department in 1992, Director of Strategy in 1996, and Director of "Strategy-ValorisationOptimization" at the Thermal Generation of the Group in 1999. In 2000, he joined the Executive Management Board of EnBW and became Vice President in 2007. In February 2009, Pierre Lederer was appointed Senior Executive Vice President of EDF S.A., in charge of Customers, Optimization and Trading. He also supervises the Continental Europe zone.
16

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

The EDF Executive Committee (2/2)


Herv MACHENAUD
Group Senior Executive Vice President, generation and engineering A former student of the Ecole Polytechnique technical school (1968), engineer of the Ecole des Ponts et Chausses and a graduate of the Institut dEtudes Politiques in Paris. After a variety of assignments at the Ivory Coast Ministry of Planning and for the World Bank, he joined EDF in 1982, where he was among other in charge of the Groups French and International nuclear programs, as well as of the development of the Group in Asia-Pacific. Since 2009, he is Group Senior Executive Vice President, Generation. He also supervises the Asia-Pacific zone.

Thomas PIQUEMAL
Group Senior Executive Vice President, Finance

A graduate of ESSEC. After holding several positions at the investment bank Lazard Frres, he became in January 2009 Senior Executive Vice President in charge of Finance of Veolia Environment and joined the Groups Executive Committee. He joined the EDF Group in December 2009, as Group Senior Executive Vice president, Finance. He also supervises the North America zone. In 2008, Thomas Piquemal co-founded the Acadmie Christophe Tiozzo, whose mission is to promote the social and professional integration of young people from deprived areas.

Vincent de RIVAZ
Chief Executive of EDF Energy

A graduate of the Ecole Nationale Suprieure dHydraulique de Grenoble, he held various positions within the Group, especially regarding international development. In mid-2003, he created EDF Energy and has since been Chief Executive Officer. He supervises the United Kingdom area. He was named National Ambassador by HRH the Prince of Wales, in July 2009, for his significant contribution to the Princes Business in the Community projects.

Alain TCHERNONOG
General Secretary

A PhD in Law and a graduate of the Institut dAdministration dEntreprises, he held various positions in different companies. In March 2007, he became Coporate Secretary of Veolia Environnement. In December 2009, he was appointed Coporate Secretary of the EDF Group. He is charge of legal departments, risk, security and sustainable development, information systems and shared services.

17

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

EDF since 1946


Opening of the French market, first for B2B (2000 to 2004), then for B2C from 2007

Structural changes in the EDF Group

Nationalization of the electricity and gas sectors

Creation of EDF as an EPIC by the Law of 8 April 1946

On 20 November 2004, EDF becomes a French SA

IPO(1) in 2005 and creation of RTE to guarantee non-discriminatory access to the market

1946

1963
Launch of the commercialscale nuclear program

1990

1999

2004 2005

2009 2010 2011 2012

Development in France

Development of the French industrial base, including Hydro and Nuclear facilities
Disposal of EnBW and of the UK networks Buy-out of EDF Energies nouvelles Edisons takeover

Acquisition of British Energy

International Development

Start of the international development, first in South America, then in Europe with the UK (from 1998 onwards), Germany (2001) and Italy (2005)

(1) Initial Public Offering

18

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

EDF global footprint


Netherlands
Sloe Centrale BV

Poland (main subsidiaries)


EDF Wybrzeze EDF Rybnik EDF Krakow Kogeneracja

USA
Constellation Energy Nuclear Group

Belgium
EDF Belgium EDF Luminus

Did you know?


China
Figlec SZPC DSPC

642.6 TWh
Global generation 2012
~75.5% Nuclear ~8.9% Fossil fired (excluding gas) ~9.1% Renewables(1) ~6.5% Combined cycle gas and cogeneration

United Kingdom
EDF Energy

Slovakia
Groupe SSE(2)

Spain
Elcogaz

Hungary
Be ZRt EDF Dmasz ZRt

39.3 million of
Laos
NPTC

Customers

Austria

Switzerland
Alpiq

ESTAG

16.1bn
Other activities (main subsidiaries)
EDF EN Tiru Electricit de Strasbourg Dalkia EDF Trading

EBITDA 2012
Vietnam
MECO

Brasil
Norte Fluminense

France
EDF RTE ERDF Island Energy Systems

Italy
Edison Fenice

% of 2012 EBITDA Group


France 62% United Kingdom 13% Italy 6% Other International 7% Other activities 12%

(1) Including hydropower (2) On 24 May 2013, EDF and EPH has signed definitive agreement for the sale of 49% of Stredoslovenska Energetika A.S. (SSE). The contemplated transaction will be submitted for authorization to a general meeting of shareholders of SSE. Closing is expected during second semester of 2013 following receipt of antitrust clearance

19

The EDF Group

Overview of the EDF Group

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Country profiles

Remain a benchmark employer (1/2)


Being an industrial Group with a strong technological expertise, long-term activities and missions of general interest, EDF is keen to invest in a lasting way into the competencies and the performance of its staff

82% of Group employees attended at least one training course in 2012

Men and women play a key role in the Groups Performance: focus on training

A landmark investment to provide to all employees of the Group professionalization programs and in order to ensure the transmission of necessary skills for the industrial Group project: 82% of employees in the Group attended at least one training course in 2012 (average of 58h training received by employee trained)
7.3% of the payroll was allocated for training (almost 550m), as much as for R&D activities

Being a benchmark employer in terms of employee commitment and social performance


A pioneer Group-level agreement Corporate Social Responsibility (signed in 2004) A strong commitment for the health and safety of employees and subcontractors to reduce, by 15% per year, the number of accidents over the next five years

1st prize of the Trophe de la rputation in the category Responsabilit sociale , award handed out by Syntec Council in Public Relations and La Tribune (April 2013)

20

The EDF Group

Overview of the EDF Group

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Remain a benchmark employer (2/2)

Having both a strong local presence and an international profile


159,740 employees in the Group of which 41,228 women (26%) More than 16% of the France workforce(1) could retire by 2016, in particular in generation engineering and distribution staff, which represent two-third of the employees in this scope Until 2014, the Group will maintain a level of recruitment that is adapted to these stakes and reaffirms its commitment to work-study trainees, which is a source of diversity and competencies. In 2012, over 12,500 people were recruited in the Group, almost half of which at EDF SA and ERDF EDF remains the benchmark employer on technical profiles
6th of the Universum engineer rating 2012 1st of the TNS Sofres engineer rating 2012 1st employer of Randstad Awards 2012 (energy sector)

Edison 2% EDF EN 2% EDF Energy 9% Dalkia International 10%

Other 10%

EDF SA 43%

159,740 employees

Development of international scope and employer brand Over 6,700 work-study trainees at Group level in 2012 Development of managerial training by the Groups Management University (UGM)
Over 3,000 managers or leaders followed the UGM 3,500 managers or leaders have been involved in managerial assistance programs in their units

ERDF 24%
Percentages calculated based on the number of employees

Managing change smoothly and accountably

Did you know?


In France, one-third of employees are in distribution, one-third in generation and engineering

First internal opinion survey in the Group, My EDF: 90,000 employees answered for the first time in 2012
(1) EDF SA and ERDF

21

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

Presence across the whole electricity value chain


Electric capacity(1) Transmission Distribution Supply (# customers electricity and gas)

Did you know?


EDF is also active in third-party management, in contractual engineering through partnerships: in the networks business (e.g. with MRSK in Russia), in the optimization activities (e.g. 26 GW optimized by EDF Trading in the US), in the O&M business (e.g. EDF Renewable Energy in the US) In power generation (e.g. Nam Theun Dam in Laos)

Networks France (inc.SEI(2)) EDF SA: 99.8 GW EDF Energy: 14.2 GW Edison: 7.7 GW Fenice: 0.5 GW EDF Luminus: 2.0 GW EDF Belgium: 0.5 GW CENG: 1.9 GW Other: 6.4 GW (o/w Poland, Slovakia(5), Hungary) Other activities: 6.7 GW o/w EDF EN: 4.2 GW
Supporting activities

RTE(3) (100%): ERDF (100%): 1.3 M km EDF SA : ~29 M more than 100,000km
EDF Energy : ~5.8 M Edison: ~1.5 M EDF Luminus: ~1.7 M

United Kingdom Italy


Other International

Belgium United States Other

Demasz (100%): 32,000 km SSE(5) (49%): 33,400 km(4)

Demasz: ~770,000 SSE(5): ~630,000(4)

Other activities

Trading activities: EDF Trading Energy services: Dalkia, Fenice


(1) Consolidated data (2) Island Energy Systems (3) RTE is consolidated under the equity method (4) Data at 100% (5) On 24 May 2013, EDF and EPH has signed definitive agreement for the sale of 49% of Stredoslovenska Energetika A.S. (SSE). The contemplated transaction will be submitted for authorization to a general meeting of shareholders of SSE. Closing is expected during second semester of 2013 following receipt of antitrust clearance

22

The EDF Group

Overview of the EDF Group

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Country profiles

EDF SA governance in 2012


Audit Committee (6 members selected by the Board)
The President(1) is a member of the Board appointed by the Shareholders AGM; 2 members represent the State while 3 members are elected by employees

Board of Directors (18 members)


6 Directors appointed by the Shareholders AGM, 6 Directors representing the State 6 Directors elected by employees

Ethics Committee (6 members selected by the Board)


The President(2) is a member of the Council elected by the Shareholders AGM; 1 member is an administrator representing the State and 4 are administrators elected by the employees

Nuclear Commitments Monitoring Committee (5 membres selected by the Board)


The President(2) is a member of the Board appointed by the Shareholders AGM; 2 members represent the State and 2 are elected by employees

Nominations and compensation committee (3 members selected by the Board)


The President(2) and one member are appointed by the Shareholders AGM; 1 member represents the State During the Shareholders AGM. During the 30 May 2013 AGM, it has been decided that the committee must include an administrator representing the employees

Strategy Committee (8 members selected by the Board)


The President(2) is the Chief Executive Officer; an other member is appointed by the Shareholders AGM; 3 Members represent the State and 3 are elected by employees

(1) The President of the Audit Committee satisfies the criteria of skills (art. L.823-19 C. Com.) and independence(code Afep-Medef) (2) The President of the Committee satisfies the independence criteria (code Afep-Medef)

23

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

EDF: a listed company with the French State as the major shareholder
(1/2)

Shareholders as of 31 December 2012


EDF employees Institutional and retail investors

Share information
Common shares # of shares # of shares outstanding Number of treasury shares French security identification N (ISIN code) 1,848,866,662 1,846,705,329 2,161,333

1.85%

Treasury shares

0.12%

13.59%

FR0010242511 CAC 40, Euro Stoxx Utilities, Dow Jones Euro Stoxx 50, Euronext 100, FTS Euro First Paris (Reuters: EDF.PA , Bloomberg : EDF FP)

French State

84.44%

Main index
Listing

By Law, the French State must hold at least 70% of EDFs share capital
24

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

EDF: a listed company with the French State as the major shareholder
(2/2)

EDF as a state-owned company: legal and contractual framework

EDF as a listed company: corporate governance

EDFs CEO is proposed by the board members, and appointed by decree of the President of France upon proposal by the Board of Directors (Law of 26 July 1983) In accordance with article 13 of the French Constitution, the CEO and Chairman is appointed based on the candidates interviews and the opinion of the permanent committees of the French National Assembly and Senate. The Board of Directors is composed of 18 members, one third of whom are State representatives Any decision related to financials, investments, acquisitions and disposals must be approved by the Government (Decree of 9 August 1953) Numerous controls of financials by different authorities: State Comptroller, Cour des Comptes (Government auditing agency), Inspection des Finances The French State Holdings Agency (APE) represents the State as a shareholder Main contractual agreements are reviewed by the specific Market Commission (Decree of 18 September 1948)

EDF has to abide by listed companies laws and specific standards of a public sector entity Internal rules of its board of Directors are similar to those of listed companies In accordance with law of 27 January 2011 relating to the balanced representation of women and men on Boards of Directors and Supervisory Boards, the proportion of directors of each gender appointed by EDFs Shareholders Meeting may not be less than 20% from 2014, then 40% from 2017. In 2012, EDFs Board is composed of 4 women, representing 22% EDF decided in December 2008 to refer to the AFEP- MEDEF Code of October 2008 (revised in April 2010) as its corporate governance code:

Annual report on the evolution of the board's functioning entrusted to an external firm every three years. Regular update of the Board of Directors rules of procedure

The Board has appointed all the appropriate committees EDF is compliant with internal control procedures COSO EDF publishes an annual report on sustainable development

25

The EDF Group

Overview of the EDF Group

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Country profiles

EDFs interface with the French State Shareholding Agency (APE)

The French State Shareholding Agency (APE) is a national department joined controlled by the Minister for the Economy and Finance and the Minister of Industrial Renewal. It performs the function of the state shareholder ensuring the management of its financial interests. As such, it proposes and implements the decisions and policies of the French State with the related ministries Its main objectives consist of:

Reviewing the appropriateness and financial health of the company Representing the French Government as a shareholder Helping for the good relationship between the company and the French government

As a result, the APE has expressed the following requirements to public sector enterprises. They have to:

Appoint specific point of contacts to be special correspondents with the APE Prepare a scorecard reporting for the APE on the main financials and qualitative data Organize regular meetings, at least once a year to present the strategy and finance of the company Inform the APE for any investment operation, or any specific audit missions

26

The EDF Group

Overview of the EDF Group

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Other main regulatory entities with an impact on EDF in France

The ASN (French nuclear safety authority), in charge of control of the safety of nuclear facilities in France. The ASN carries out:

On-site regulatory inspections, randomly or scheduled (approx. 400 per year) 10-year safety reviews, a necessary step in extending the life of power plants In charge of post Fukushima additional safety assessments

The CRE (French Energy Regulatory Commission) ensures the proper functioning of the electricity and gas market for the end-customers in compliance with the energy policy. The regulation fields include:

Energy networks

Access to regulated networks and their operation and development Independence of network operators

Energy markets

Monitor deals on energy markets and CO2

Monitor retail markets (for instance, making proposals for regulated tariffs evolution)
27

The EDF Group

Overview of the EDF Group

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Country profiles

Other control procedures involving EDF

EDF could be submitted to State audit procedures, in particular through economic and financial evaluation assessment and through checks by the General Finance Inspection Office (Inspection General de Finance) The companys accounts and management, and where applicable, those of its directly-held majority subsidiaries are under the control of the Cour des Comptes(1) EDF also has to undergo the audit procedures performed by the Parliament EDF is subject to the law of 26 July 1983 related to the democratization of the public sector which deals with companies in which the State hold directly more than 50% of capital (and second-tier companies and beyond, EDF subsidiaries subject to certain conditions): this law contains in particular dispositions about governance, committee composition, Board composition, nomination of corporate officers, compensation, etc.

(1) Government Audit Body

28

The EDF Group

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France country profile


Key points

Installed capacity and generation (2012)(2)


MW Nuclear 63,130 % 63.3

EDF is active on the whole electricity value chain, from generation to sales and optimization / trading. The activities can be split:

into deregulated activities, through EDF SA (generation + sales, optimization and trading) into regulated activities, through ERDF (distribution) and RTE (Transmission). EDF activities in Island Energy Systems (Corsica, French overseas departments and collectivities) are managed by the Island Energy Systems Division

Hydropower(2)(3)
Fossil-fuel fired Other renewables Total

20,410
16,222 12 99,774 TWh

20.4
16.3 0.0 100 % 86.8

EDF owns the largest nuclear fleet worldwide, the largest European electricity generation fleet, and is committed to operational performance and safety In addition, EDF has an extensive experience in hydropower, conventional fuels and renewables (strengthened by the buy out of EDF Energies Nouvelles) RTE(1) and ERDF are 100% subsidiaries of EDF, but are operationally independent (legal unbundling), as requested by the EU legislation EDF also plays a holding role, by controlling 100% of EDF International (controlling the greatest part of EDF stakes in international subsidiaries) as well as interests in various companies, including:

Nuclear

404.9

Hydropower(3)(4)
Fossil-fuel fired Other renewables Total

42.0
19.0 0.5 466.4

9.0
4.1 0.1 100

EDEV (including EDF EN, LNG Dunkerque, Electricit de Strasbourg) Dalkia (energy services provider) EDF Trading (market operator for the Group)

Key figures (2012)


bn Unregulated Regulated EBITDA (2012) 6.2 3.7

(1) RTE is consolidated under the equity method (3) Including Rance river tidal power plant (240 MW)

(2) Including Corsica and overseas. Excluding EDF EN (4) Hydropower generation including pumped storage consumption

29

The EDF Group

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Market development in France

Brief history of French market liberalization:


Nationalization of the electricity and gas sectors pursuant to the Law of 8 April 1946 From February 1999, progressive opening of the electricity market under the impetus of European regulation, first for B2B consumers (total liberalization in July 2004), then for B2C consumers from 2007 onwards As at 31 December 2012, EDF had a market share of approx. 80% in the electricity business (B2B and B2C). According to the Commission de Rgulation de lEnergie (CRE), the electricity market shares of competitors were, in 2012, 6.9% on residential sites and 7.6% on non-residential sites while their gas market shares on residential sites were 11.3% and 22.8% on non-residential sites

To improve and foster competition on the French market, implementation of a new law: the NOME Law of 7 December 2010 (came into force on 1 July 2011)

The Law guarantees EDF competitors an access to the historical nuclear generation capacity (ARENH), provided they supply only their French end users

Total power cannot exceed 100 TWh(1), for a period of 15 years


The ARENH price is set by decree by the Economy and Energy ministers following a legal opinion from the CRE for the first 3 years, and by CRE decision by 2014 at the latest An indexation formula is still to be enacted and should cover all the costs of EDFs historical nuclear plants All existing tariffs should converge towards ARENH prices by 2015, and industrial tariffs should be suppressed The ARENH price as at 1 January 2012 has been set at 42/MWh
(1) Excluding supply of technical losses

30

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Overview of the EDF Group

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Country profiles

Energy Savings Certificates system


CEE ( Certificats dEconomie dEnergies ): a political initiative to encourage energy efficiency in France
Created by the POPE law of 13/07/2005 and in effect since 2006, in addition to the Thermal Regulation of buildings, performance standards for equipment, and financial incentives (sustainable development tax credits, Eco-PTZ, etc.)

Mandatory system for energy suppliers in France:


Over a three-year period (2nd period: 2011-2013, currently) Supporting customers (or third parties) in energy efficiency renovation (insulation, efficient boilers or heat pumps) in exchange for a Government-approved Energy Savings Certificate In the form of a payment to customers who have improved their home energy efficiency (subsidized loans, Habiter Mieux from the ANAH, commercial incentives, etc.) or indirectly (via a professional training body such as FEEBAT, etc.) Otherwise, a fine of 20/MWh cumac(1) is assessed

(1) Aggregate present value, over the period

31

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

United Kingdom country profile


Key points

Market position (2012)


Electricity Supply: 51.6 TWh Gas Supply: 31.1 TWh 16.3 %(1)

Main entity: EDF Energy, one of the UKs largest energy companies and the UKs largest producer of low-carbon electricity The company is organized into the following three business units:
Nuclear Generation (15 reactors on 8 nuclear power stations, 8.7 GW of capacity, 20% owned by Centrica) Nuclear New Build (in charge of EDF Energys new nuclear project in the UK) Energy Sourcing and Customer Supply (operating conventional power stations, wind farms, and managing customer needs)

5.6 %(1)

Key figures (2012)


Capacity (MW)
Nuclear Gas Coal Renewables Total 8,741 1,306 3,987 116 14,150

UK market:

Environment marked by strong Government drive to decarbonise the economy (-80% CO2 emissions by 2050 vs. 1990) and electricity supply, while ensuring security of supply and affordability Highly competitive B2C and B2B markets with unregulated, volatile prices and dual-fuel offerings playing a major role in B2C Coal and gas currently playing the largest roles in electricity generation Need for new generation capacity to come online around the turn of the decade as significant amount of aging and environmentally restricted capacity will be retired Ongoing implementation of the Electricity Market Reform, with the objective of promoting investments in low-carbon generation (carbon price support implemented from Apr 2013; Energy Bill containing a contract for difference mechanism, a capacity mechanism and an emission performance standard expected to receive Royal Assent during 2013)

Output (TWh)
60.0 0.3 22.7 0.4 83.4

bn
EBITDA 2012 2.1

(1)Based on March 2013 data from the Department of Energy & Climate Change

32

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

Strategy for EDF Group in the UK

Major nuclear operator in the UK, leading the way in Nuclear New Build

Almost 9GW of existing nuclear capacity with a clear aim of life extension (currently an average expectation of 7 years beyond agreed lifetimes at acquisition for AGRs and 20 years for Sizewell B PWR) Aim to build up to 4 EPRs*: a twin at Hinkley Point and a twin at Sizewell Key role in discussions on the Electricity Market Reform

Considerable investments in wind projects

Onshore: on target to have >500 MW of capacity in operation by end 2013; to be further increased in the future Offshore: 1st project (Teesside, 62 MW) to be completed in H1 2013; JV with Eneco for Navitus Bay project (50% of ~1.1GW)
West Burton B 1,300 MW CCGT power plant; first two units commissioned with final unit to follow later in 2013 Constructing a short-cycle gas storage facility, two cavities completed and gas plant to start operation by the end of Q2 2013

Other ongoing projects


Profitable growth downstream


Focus on re-gaining customer trust through fair value, better service and simplicity Customer systems renewal to deliver cost savings and improved service Focus on sustainable margins in both B2B and B2C Organic growth strategy in B2C to achieve economies of scale

Group synergies and transformation at the heart of EDF business model


Continued delivery of synergies from the acquisition of British Energy Major change programs under way

33

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

Italy - country profile


Key points The Italian market is the 4th electricity market and the 3rd gas market in Europe

Edison market shares (2012)


Edison Elec. Generation / National Elec. Generation: 7.9 % 22.5 TWh Sales Gas Edison / Demand 21.3 % gas Italy: 15.8 bcm

Potential gas hub for Europe, securing gas supply Strategic geographical position of Italy for the development in the Mediterranean area EDF owns 100% of Fenice since 2001 and 99.48% of Edison ordinary shares since September 2012

Main entities(1): Edison and Fenice

Key figures (2012)


Installed capacity (GW)(2) Thermoelectric plants Hydroelectric plants Wind power TOTAL Edison 5.8 GW 1.4 GW 0.5 GW 7.7 GW Fenice 0.5 GW 0.003 GW 0.5 GW

Key points Edison:

Major player in the Italian market for electricity and gas: the EDF Group can benefit, for the implementation of its gas strategy, from the skills developed by Edison on the entire gas value chain from generation to supply Recognition of Edisons skills in Exploration - Production (oil and gas), in Italy and abroad Access to LNG terminals (Rovigo) and import pipelines (ITGI/Galsi), as a complement to EDFs other ownerships (South Stream, Dunkirk)

Key points Fenice:

Offer of energy and environmental services: heat or electricity generation, operation and maintenance of energy assets, solid and liquid industrial waste treatments and environmental engineering (main customer: Fiat)

EBITDA (Millions of euros) Dec. 2011 Dec. 2012

Edison 480 918(3)

Fenice 112 101

(1) Dalkia (through Siram) and EDF EN are also active in the Italian market (2) Data consolidated at 100% for full-year 2012 of Edison Group (excluding Edipower) (3) At the EDF Group level

34

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

Benelux - area profile


Key points A strategic area for EDF:

Key figures (2012)


Country
Belgium

A region that includes important interconnections with the French/German power markets Key area in the European natural gas market due to its many facilities for import and transit, and the Zeebrugge hub

Company
EDF Belgium

Main activities
Electricity generation

Technical data
Installed capacity: Installed capacity: 481 MW 2,038 MW

Main entities: EDF Belgium and EDF Luminus (former SPE); Sloe Centrale B.V. (the Netherlands)

o/w Nuclear(1): Belgium


EDF Luminus Electricity generation o/w Thermoelectric: o/w Hydro: o/w Renewables: Delivery points: approx. 1.7 million

419 MW
1,429 MW 73 MW 117 MW

EDF Belgium 100% EDF-owned Owns 50% (481 MW) of the Tihange 1 nuclear power EDF Luminus EDF majority shareholder (63.5%), through EDF Belgium 12% of Belgian installed capacity Total generation in 2012 of 5,358 GWh 2012 market share: 20% of end-customer sales EDF Luminus owns 10.2% (418.5 MW) in nuclear power plants Tihange 2 and 3 and Doel 3 and 4 Sloe Centrale B.V. CCGT: 2 units of 435 MW 50% partnership with Delta B.V.

Electricity & gas sales

The Netherlands

Sloe Centrale B.V.

Electricity generation

Installed capacity: 870 MW(2)

EBITDA 2012(3) : 31% of Other International EBITDA 2012 total generation(3): 10 TWh

(1) Excluding 100MW of drawing rights in the Chooz B power plant, owned by the EDF Group (2) Data at 100% (3) EDF Belgium + EDF Luminus + Sloe

35

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

North America activities profile


North American activities - Generation

North American activities - Gas

Generation and development


EDF Inc almost 2 GW of nuclear through 49.99% stake in CENG EDF Trading North America contractual management of 26 GW of generation Unistar Nuclear Energy (UNE), 100%-controlled by EDF, works on new developments in nuclear EDF Renewable Energy (formerly enXco): 1,697 MW net of wind capacity, solar and biogas and 143 MWc of solar capacity under construction EDF EN Canada: 23 MW of solar and 218 MW of wind and 162 MW under construction EDF EN Mexico: 89.5 MW of installed capacity. The construction of 324 MW of wind started in 2012

Storage: approx. 50 bcf storage capacity rights in 23 separate sites in the US and in Canada
Transmission: 7.6 bcf transported daily in North America

North American activities - Other


Coal: Rights of way on several terminals (East Coast and Gulf) Crude oil: In 2012, EDF Trading has created a new business line linked to crude oil logistics. EDF Trading plans to expand its activity in 2013 Wholesale load: 674 MW in power load auctions Retail load: 2,345 MW, including Champion Environmental commodities: active trader of RECs(1), biogas, weather derivatives and emissions

Operation and Maintenance for third parties:

EDF Renewable Services (formerly enXco Service Corp): management of wind turbines and solar panels as a senior operator and on behalf of third parties for a total capacity of more than 7 GW of wind and solar, 3 GW of new capacity earned run in 2012

(1) Renewable Energy Certificate

36

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

Map of EDF Group North American operations:


EDF Inc, CENG, EDF Trading North America and EDF Renewable Energy
CENG nuclear assets EDFT Gas transmission EDFT Power transmission EDFT Generation asset optimization EDFT Gas asset management EDFT LNG re-gas capacity

Baltimore, MD Chevy, Chase, MD

EDFT Stockage de gaz EDFT Coal terminal (through rights) EDFT Retail load

San Diego, CA

EDF RE Biogas EDF RE Developed Wind / EDF EN Developed Wind EDF RE Developed solar / EDF EN Canada solar EDF RE O & M (eSC)

Houston, TX

R&D and Innovation

A strong and diversified presence in North America


Wind, solar and O&M projects in United States are under EDF Renewable Energy. Mexico and Canada are under EDF Energies Nouvelles brand

37

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

North America: market characteristics


US Market Outlook

Canadian Market Outlook

The United States is the largest energy market in the world and has a highly fragmented industry structure Power prices are low due to low gas prices from recently developed shale gas production and reduced energy demand as a result of the economic recession Poor visibility on the future energy policy with PTCs renewal one year but should expire at the end of 2013

Only Ontario and Alberta have opened electricity markets. British Columbia is likely the next large market to open Growth is driven by Provincial carbon / renewable policies, but also tar sands developments in Alberta (the largest growing power market in Canada) Ontario and Quebec are the largest renewable energy markets. Ontario policies in favor of solar and wind energy were solidified with the re-election of the Liberal Party during provincial elections

Environmental regulations

29 States and the District of Columbia have a Renewable Electricity Standard, requiring a percentage of an electric providers energy sales or installed capacity to come from renewable sources Within the next two years, the US Environmental Protection Agency (EPA) is expected to release final versions of major rules addressing emissions of ozone, particulate matters, mercury, coal ash, as well as environmental impacts of cooling water intake structures EPA regulations covering SOx and Nox expected to start in January 2012 are being delayed by litigation With respects to carbon emissions, there is currently insufficient momentum in the US to support the implementation of emission reduction policies (except California ,which has implemented its Cap & Trade CO2 emission permits and has announced to link its market to the Quebec market system)
(1) Production Tax Credit = tax credit to support wind energy production

Mexican Market Outlook

High electricity price for commercial and industrial customers combined with favorable banking makes wind competitive without subsidies Federal Government set goal of 7.5% of energy generation to be sourced from renewables by 2017 Installed wind capacity has more than doubled in 2012 reaching 89.5 MW, with the commissioning of several big projects in Oaxacas area

38

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

Central and Eastern Europe zone profile


Key points

Assets
Country Company Main activities
Poland Poland Poland Poland EDF Wybrzeze EDF Rybnik EDF Krakow Kogeneracja
Electricity and heat generation Electricity generation Electricity and heat generation Electricity and heat generation

Three main countries: Poland, Hungary and Slovakia Poland


Technical data
Electrical capacity: Thermal capacity: Electrical capacity: Electrical capacity: Thermal capacity: Electrical capacity: Thermal capacity: Electrical capacity: Thermal capacity: 333 MW 1,199 MWth 1,775 MW 460 MW 1,118 MWth 363 MW 1,124 MWth 221 296 MW MWth

Electricity generation, cogeneration 4 main subsidiaries: EDF Rybnik, EDF Wybrzeze, EDF Krakow, Kogeneracja (owned at 50 % and one share) EDF's acquisition of EnBW interests in Poland has finalized on 16 February 2012. It led to the (indirect) acquisition by EDF International of 32.45% stake in EDF Rybnik, 15.59% in the Kogeneracja cogeneration and 25% stake in the shared service center EDF Polska CUW

Hungary

Poland

2 main subsidiaries: BE ZRt (Electricity and heat generation) and DEMASZ ZRt (Electricity and gas distribution & sales)
Hungary

Zielona Gora Electricity and heat (owns at generation 98.4% by Kogeneracja) BE ZRt
Electricity and heat generation

Slovakia

Electrical capacity: Thermal capacity:

405 MW 1,267 MWth

49% holding in Stredoslovenska Energetika (SSE) (Electricity and gas distribution & sales)(1)

Hungary

Electricity distribution EDF Group DMSZ ZRt & sales Electricity distribution & sales

Customers(approx.) : 770,000 Supply: 3.2 TWh Distribution: 4.4 TWh Delivery Points: ~ 775,000 Customers(approx.) : 630,000 Supply: 4.9 TWh Delivery Points: 722,000

Slovakia

SSE Group

2012 EBITDA Poland, Hungary, Slovakia: 32 % of Other International EBITDA


(1) On 24 May 2013, EDF and EPH has signed definitive agreement for the sale of 49% of Stredoslovenska Energetika A.S. (SSE). The contemplated transaction will be submitted for authorization to a general meeting of shareholders of SSE. Closing is expected during second semester of 2013 following receipt of antitrust clearance.

39

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

EDF in Poland: a strong position in the 5th keymarket of the Group EDF Wybrzeze

Installed capacity in 2012: ~3,150 MWe and ~4,000 MWth

Cergia EDF Polska

Employees: ~3,500

Heat and/or electricity generation companies Trading (electricity, coal) EDF Group representation in Poland

Zielona Gora

Kogeneracja

PEC Tarnobrzeg
EDF Group is planning to improve the environmental standards of its plants in Poland

EDF Energia EDF Paliwa EDF Rybnik


EDF Krakw

40

The EDF Group

Overview of the EDF Group

A state-owned listed companies

Country profiles

China
Key points

Map of operations
BUGET Gas & Engineering EDF: 20% DSPC Project SAN MEN XIA II 2 x 600 MW thermal SC EDF: 35% SZPC 3,060 MW thermal EDF: 19.6%

EDF Group is the largest foreign investor in the Chinese electricity sector

EDF has signed partnerships for developing nuclear power, coal-fired and hydropower facilities, electricity distribution and energy efficiency
First foreign company to invest in a Chinese nuclear power project (TNPJVC, 2009), at 31 December 2012, EDF owns 30% of TNPJVC, which aims to finance, construct, commission and operate two EPR nuclear power plants (2 x 1,750 MW) The reactor dome for the second unit was installed in September 2012. The reactor dome for the first unit was successfully installed in October 2011. Safety report has been sent to the Chinese Safety Authority in December 2012. 2013 will see further electro-mechanical assembly and the beginning of start-up trials Stakes in companies operating coal-fired power plants with a total installed capacity of 4,980 MW in Guangxi (Laibin B), Shandong (SZPC), et Henan (DSPC) Gas sector: At 31 December 2012, EDF is still a shareholder with a 20% stake in Buget, but has taken the decision to withdraw
(1) Data at 100%

Beijing FIGLEC Project LAIBIN B 2x360 MW thermal EDF: 100% + SYNERGIE in charge of operation and maintenance EDF: 85%

TNPJVC TAISHAN 1&2 EPR 2 x 1,750 MW nuclear JV EDF 30% , CGNPC 70%

Assets
Country Company name (stake) Asset Installed capacity(1)

China China China

SZPC (19.6%) DSPC (35%) Figlec (100%)

4 coal-fired power plants San Men Xia 2 (coal) Laibin B (coal)

3,060 MW 2 x 600 MW 2 x 360 MW

41

FACTS & FIGURES

2012

EDFs strategy within the energy sector

The EDF Group

EDF strategy

EDF main businesses

Corporate responsibility

Financials

Market data

Appendices

EDFs strategy within the energy sector


Energy sector challenges EDFs positionning to address these challenges EDFs strategic vision
44

48

49

43

EDFs strategy

Energy sector challenges

EDFs positioning to address these challenges

EDFs strategic vision

Energy sector long-term challenges (1/3)

Growing needs in energy and electricity, even with ambitious demand side management targets:
Energy demand x 1,5 Electricity demand x 2 44 By 2050, global GDP will be mutiplied by 4 12 20 20 Gtoe 000 TWh 2012 2050 2012 2050

Demand driven by:


Developing countries: 85 % of demand growth by 2035 Demography: 7 billion people in 2010, +2 billions by 2050 Economic catch-up Urbanization: today 50 % of the world population live in cities (vs. 70 % in 2050). Within the next 20 years, 10 mega-cities will reach 7 millions and more of inhabitants every year

Energy consumption (toe/pers./y) in 2009 Africa

India

Brazil

China

France

Japan

Russia

USA

In OECD countries, growing need for affordable energy costs to support competitiveness, industrialization and employment
Sources : IEA, ETP 2010, scenario +4

44

EDFs strategy

Energy sector challenges

EDFs positioning to address these challenges

EDFs strategic vision

Energy sector long-term challenges (2/3)

Security of supply: growing oil and gas imports weighing on external trade balances and the 3rd oil shock

In 2011, oil at record price for the last 100 years (Brent at USD111/bbl on annual average, in constant $). The resources exist (approx. 250 years of oil and gas including non-conventional), but with rising extracting costs. Scarcity is more economical and geopolitical than physical. Doubling of oil costs in Europe, China and Japan versus the average of the last 20 years.

France: overall energy bill is EUR 68bn in 2012 = the amount of the trade deficit

Rising energy dependency everywhere but in the United States


Oil and gas imports dependency in major countries
Gas imports 100 % 80 % European Union 2010 2035

60 %
40 % 20 % 0% Gas exports 20 % 20 % China USA India

40 %

60 %

80 %

100 % Oil imports

Sources: IEA, World Energy Outlook (WEO) 2012

45

EDFs strategy

Energy sector challenges

EDFs positioning to address these challenges

EDFs strategic vision

Energy sector long-term challenges (3/3)

Climate change: a major issue in which the power sector plays a major role as its CO2 emissions represent 40% of the global energy sectors emissions

Without rapid changes temperature will rise by 5 to 7C Electricity sector is both part of the issue and part of the solution: Coal and gas provide 60% of the global power output and emit 40% of global energy related emissions. At the same time, CO2 free technologies already exist in the power sector (hydro, nuclear, renewable energies, etc.) CO2 free electricity can substitute fossil energy (transport, etc.)

CO2 emissions if the total fossiles fuels reserves are burned (oil, coal, gas) from 2012 CO2 emissions between 2000 and 2050 in order to limit the increase in temperature by +2C in 2100 CO2 emissions between 2000 and 2010

2860 Gt 1400 Gt

400 Gt

CO2 free electricity: one response to fight climate change

Sources: IEA, World Energy Outlook (WEO) 2012,

46

EDFs EDFs strategy strategy within the energy sector

Energy sector challenges

EDFs positioning to address positionning to address these challenges these challenges

EDFs strategic vision

Global and local perspective on electricity

Local:

High expectations: need to expand and enhance the networks, quality of service, demand side management and environmental friendly districts, electric mobility, local generation of power and heat Urbanization trend: need to develop sustainable cities and smart power systems

Global:

Natural resources prices (coal, oil, etc.) are set on a global basis Industrial context and technologies: China manufactures 80% of global PV panels and represents half of the global new nuclear build. Within the next 20 years, half of the new hydro dams will be built in China and Brazil.

Need for a global and local perspective on electricity


47

EDFs strategy

Energy sector challenges

EDFs positioning to address these challenges

EDFs strategic vision

EDF well positioned to address these challenges


Leader and modern public service provider across the electricity value chain Leader in CO2 free energies Industrial know-how and complex systems management skills Building the future through investment in R&D and innovation
EDF: 73% CO2 free generation mix(1)
Competitive generation mix 10% 53% 17% 4% Nuclear Hydro Renewables Coal/Fuel Gas 16%

Low CO2 emissions: carbon factor for EDF at 117g CO2/kWh vs. 338g CO2/kWh for the European average(2)
Low exposure to commodities risk versus peers

(1) Net capacity (2) 2011 figures for European carbon factor (source: PWC - November 2012); 2012 figures for EDF Group

48

EDFs strategy

Energy sector challenges

EDFs positioning to address these challenges

EDFs strategic vision

Strategic vision

Industrial view for the electricity value chain Integrated view of the overall power system

EDF cares about the countries interests in which the Group operates and the specific rules in place
Sustained relationships with local partners

49

EDFs strategy

Energy sector challenges

EDFs positioning to address these challenges

EDFs strategic vision

Ambitions and strategic priorities

To be a global electricity player servicing its clients

Enhance its position in Europe: France, United Kingdom, Italy, Poland, and Belgium
Operate in key countries: where new technologies are being developed, in line with the future of EDFs activities and as a function of their geostrategic importance Develop opportunistically EDFs activities in specific countries

Build the future for our clients with an edge through innovation and with driven high quality teams

50

FACTS & FIGURES

2012

EDF main businesses

The EDF Group

EDF strategy

EDF main businesses

Corporate responsibility

Financials

Market data

Appendices

EDF main businesses


Generation Networks - Transmission & Distribution Optimization - Trading - Supply (Focus on France) Gas
53

117

126

141

52

EDF main businesses

Generation

Networks

Optimization - Trading - Supply

Gas

EDF main businesses


Generation
Nuclear Hydropower & Renewables
54

94

Thermoelectric plants

109

53

EDF main businesses

Generation

Nuclear

Hydropower & renewables

Thermoelectric plants

EDF main businesses


Generation
Nuclear
Key points Nuclear Existing Nuclear France Existing Nuclear UK Safety Nuclear New Build
55 56 72

78
79 86
54

Long-term provisions

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

Nuclear: a unique expertise

EDF: The worlds leading nuclear power plant operator, with 1,550 reactor years of experience Generating energy at competitive cost, not influenced by fossil fuel prices, with no CO2 emissions

Did you know?


EDF existing fleet

58 reactors in France, 15 reactors in the UK, 5 reactors in the US


Did you know?

Assets in France, the UK, the US and China


EDF is building new reactors

New nuclear development

3 EPR reactors
under construction

The new EPR will use 22% less fuel than the currently used PWR One EPR unit being built in France, two in China and projects under study in the UK

Did you know? A strong experience

1,550 reactor-years
of experience operating the French fleet
55

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

EDF French nuclear fleet

Gravelines Penly Paluel Chooz Cattenom

Flamanville

74.8%(1) of French power generation in 2012 58 reactors in operation 19 sites 3 series of the same Pressurized Water Reactors (PWR) technology:

Nogent Seine
St Laurent Chinon Civaux Bugey Dampierre Belleville Fessenheim

900 MW 1,450 MW

34 reactors 31 GW 4 reactors c.6 GW

1,300 MW 20 reactors 26 GW

(1) Source : RTE

Blayais
Golfech

St Alban Cruas Tricastin

Did you know?


The whole fleet in operation today has been built using the same technology (PWR). This standardization allows for operational synergies and greater efficiency. Moreover, more than being

just a nuclear operator, EDF is an architectassembler, meaning that it is responsible for the design, schedule
and building of the reactors with the benefit of running its fleet safely
900 MW 1,300 MW 1,500 MW EPR
56

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

PWR operating principles


Reactor building
(nuclear zone)

Turbine hall building


(non nuclear zone)

Primary system

Secondary system

Cooling system

57

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

The strengths of EDF nuclear fleet in France (1/2)

Key points of EDF nuclear fleet in France


An average age of 27 years 44 GW commissioned between 1980 and 1990 out of a total installed capacity of 63 GW in France Technical standardization and constant improvement of safety EDF, architect-assembler, owner and operator of its plants

Investment program for replacing large components after 30 years of operation (2010-2020)

Obsolescence of some large components that must be replaced after approximately 30 years of operation (international benchmark)
With a view to operating facilities beyond 40 years

Extending operations beyond 40 years

Consistency of the target with the global trends observed for similar technologies (PWR)
EDF proposes a re-evaluation of specific safety standards to the ASN in order to achieve an implementation during the 4th 10-year visit for the 900 MW and the 3rd 10-year visit for the 1,300 MW plants

58

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

The strengths of the EDF nuclear fleet in France (2/2)

The French regulatory framework: safety re-evaluation every 10 years to strengthen the power plant conception

Implementation of a safety standard and an improvement program during the 10-year visit for each series, after the French Nuclear Safety Authority (ASN) approval Systematic re-evaluation of the safety requirements with the national feedback and the development of scientific and technical knowledge

Following Fukushima, increase of the installations protections against critical situations:


Reinforcing current protection of facilities and certain materials against earthquakes and floods Reinforcement of back-up water and electricity supplies Implementation of the Force dAction Rapide Nuclaire (FARN Nuclear Rapid Action Force) to bring, within 24 hours, human and material needs on any site in critical situation

Reinforcement of the operational teams on the nuclear sites:


To implement post-Fukushima measures With an eye to the future major maintenance works

59

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

The French nuclear fleet: operating cycle


Cycle
Generation
Length can vary by ten days from one cycle to the next

Planned outage
For refueling, maintenance, repairs Duration: variable, between 30 and 100 days

Generation

Planned outage

The refueling cycle of nuclear reactors

Types of planned outages


Two types of programmed shutdowns are alternated at the end of each generation cycle:

900 MW:

28 reactors in 12-month cycle 6 reactors in 18-month cycle

Ordinary shutdown for refueling only (ASR): unloading spent fuel and refueling fresh fuel Standard period 35 days Partial inspection for refueling and maintenance (PI): refueling and maintenance. Standard period 60 days, varying according to programs for maintenance work

1,300 MW: 1,450 MW:

20 reactors in 18-month cycle

4 reactors in 18-month cycle

10-year inspections: standard period 100 days, varying according to programs for safety upgrades and maintenance work

Regulatory obligations (safety tests and various controls), adapting safety to latest standards, maintenance work and changes 60

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

Average of six 10-year inspections per year in France


9

Average of six 10-year inspections over the period


1,450 MW

8
7 6 5 4 3
900 MW

1,300 MW

2
1 0
2011 2012 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E

One 10-year inspection = about 100 outage days(1)


(1) This length varies according to the works and maintenance program and the series in question

61

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

French consumption pattern is particularly seasonal and thermosensitive


which creates special demand on the nuclear fleet
2012 monthly consumption in main European countries
In GWh
60000

Consumption pattern with high seasonal variations

50000

Between 32 and 35 TWh / month during the summer

40000

Allemagne
Germany
30000

Between 40 and 55 TWh / month during the winter

Espagne France R-U

Spain
20000

France UK
10000

France is highly sensitive to temperature changes. 1C variation in temperature in France:

Italie

Italy

In winter 2,300 MW In summer 500 MW

0 1

Jan.

Feb.

Mar.

Apr. June
5

July

Aug. Sept.
8

Oct.

10

Nov.

11

Dec.

12

Source: European Network of Transmission System Operators for Electricity ENTSO-E

62

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

A seasonal schedule of outages


A minimum number of outages during winter Necessary balance between 12-month and 18-month production cycles
Year 2012 / Number of PWR units in planned outage/week(1)
20 18 16 14 12
10

8 6 4 2 0

0
(1) At a specific instant t

10

20

30

40

50
63

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

Change in load factor and nuclear output


Annual Kp (load factor) of nuclear fleet
Kp (%)

Net nuclear output (PWR fleet)


In TWh 450
429

95

427

428
418 418 408 421

85
417 77.0 77.6 77.4 75.6 75.3 75.5 76.1 76.1 73.8 73.0 401

421

75

72.8

74.1

405

400
70.7

395

65

390

55
2000 2002 2004 2006 2008 2010 2012 350 2000 2002 2004 2006 2008 2010 2012

64

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

Availability of French nuclear fleet since 2002


Kd and winter Kd (%) 100 95 90 85 80 75 70 2002 2004 2006 2008 2010 2012
82.5 82.7 90.1 92.5 94.8 92.9 90.1 89.9 86.8 92.4 94.6

Did you know?


92.3 91.5

The Kd, or availability factor


Kd Winter Kd(1)
80.7

82.8

83.4

83.6 80.2 79.2

78.0

78.5

79.7

represents the available energy as a percentage of the maximum energy that could be generated if the installed capacity were operated year-round

The

Ku,

or utilization factor

(1) Kd from 1 December (N) to 14 February (N+1)

Ku (%) 100 97 94 91 88 92.0 92.0 93.0 93.1 92.7 94.5

is the energy generated as a percent of energy available and reflects environmental and social constraints, supply of system services and optimization

95.4 90.6

The multiplication of the Kd and the Ku leads 94.1 94.5 91.8 to the , or load factor, defined as the generated energy compared to the maximum theoretical energy

Kp

85
2002 2004 2006 2008 2010 2012

Kp = Kd x Ku
65

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

Comparison between EDF and PWR US fleet Kd


Availability
95 USA (69 PWR) 85 EDF (58 PWR)

Kd includes the impact of technical unavailability (planned and unplanned outages)

PWR US fleet operates purely under base-load generation French fleet operates with seasonality of outages

Key structural discrepancy - 6 points


75

- 2 pts: fuel management method (fuel cycle) - 2 pts: solicitation method (load monitoring in France)

65
1990 1995 2000 2005 2008

- 2 pts: regulation and safety specificities

66

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

Continuous improvement in operating conditions


Number of automatic reactor stoppages
80 60 40 20 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 69 61 58 56 53 31 41 40

30

32

The number of automatic outages is a key indication of safety. It measures the quality and seriousness with which operations are conducted. The results of EDFs fleet have been among the best in the world over the last five years

Average annual collective dose / reactor


1.1 1,1

Accident frequency rate(1)


15

Contractors
0.9 0,9

H.Sv/tr 0.67

10

EDF
5

0,7 0.7

4.2 2.7
Thanks to initiatives jointly-led by EDF and its suppliers, all employees benefit from the same safety level which is constantly improving
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

0.5 0,5
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

(1) Number of accidents with work stoppage per 1 million hours worked

67

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

Operating performance: the drivers

Pursuing replacement of large components (steam generators, alternators stators, main transformers) Reinforcing industrial management of planned outages to reduce outage extensions

Improving the reliability of equipment through preventative maintenance to reduce unplanned unavailability

68

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

Replacement of large components to continue


Replaced at end 2012 Steam generators (3 SG / 900 MW-reactor) Alternator stators Main transformers (3 units / reactor) 22 of the 900 MW-reactors 31 reactors Priority replacements 4 reactors by 2014 of which 3 in 2013 19 reactors until 2017 of which 4 in 2013

Programme ramped up starting in 2012: 4 reactors / year on average until 2020

69

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

Reducing the unplanned unavailability rate: the AP 913 approach(1)


Identification of critical components Preventative maintenance Preventative maintenance and monitoring programs adapted to the component's criticality

Classification of components according to fault causes:


Output loss > 20 % Immediate automatic reactor outage, etc.

Corrective measures
Corrective measures prioritized according to the component's criticality

Continuous performance monitoring


Integrated IT system to monitor equipment reliability

Life cycle management Life cycle management adapted to the component's criticality

(1) AP913 is an equipment reliability process description established by the French Institute of Nuclear Power Operations (INPO)

70

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

Reinforcing the control of unit outages to reduce their extensions


The Operating Centre for Continuous Management of Unit Outages (COPAT):

Objective: reduce the time for outage extension periods via continuous management of the critical activities of the outage and a reactive response to technical alerts

Alerting COPAT after 30 minutes


Implementation of reactive maintenance teams on a continuous basis and creation of teams identified for the integration of feedback

Management process of important hazards

71

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

EDF Energy nuclear fleet


Highlights

Hunterston B Torness

Generated c.17%(1) of UK output in 2012 8 nuclear power stations 15 reactors in operation 2 technologies (AGR and PWR), with a total capacity of 8.7 GW

Hartlepool

Did you know?


An AGR differs in many respects from a PWR. Whereas the AGR design is
unique to the UK, the PWR design is the most common reactor type in the world
Sizewell B

Heysham 1 & 2

An AGR has a graphite moderator helping to control the reaction. The reactor is
encased in a steel-lined pre-stressed concrete pressure vessel several meters thick which also acts as a biological shield. The steam generator in which water is heated is situated inside the pressure vessel. An AGR uses enriched uranium dioxide encased in a stainless steel pin for its fuel and CO2 as its coolant

Hinkley Point B Dungeness B

Advanced Gas-cooled Reactor (AGR)


Pressurised Water Reactor (PWR)

A PWR is contained inside a steel pressure vessel filled with pressurized water
which acts as the coolant and moderator. The fuel used is enriched uranium dioxide and is contained in zirconium alloy tubes
72

(1) Source: Department of Energy & Climate Change Energy Trends, March 2013

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

Key figures: Nuclear output in UK


Buy-out British Energy Extended outages at Dungeness B, Heysham 2 and Sizewell B

80%

80% 74% 76%

79% 73% 71% 67% 67% 72% 73%

78%

Kd (availability factor)

70%

60%

63%
53%

50% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

2007
Output (TWh) Kd (%) 51.9 67%

2008
40.2 53%

2009
55.1 72%

2010
48.3 63%

2011
55.8 73%

2012
60.0 78%

+4.2 TWh in 2012 (compared to 2011), in accordance with the objective of achieving a nuclear output higher than 55 TWh
73

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

Key points of the EDF Energy nuclear fleet

A nuclear fleet with an average age of 29 years


Total power generation of 8.7GW

Strong improvement of the operational performance, with an output of 60 TWh in 2012 (+4.2 TWh yoy), in accordance with the performance objective of achieving a nuclear output higher than 55 TWh

Safety is the over-riding priority

Adequacy of each station confirmed at each statutory outage - Office for Nuclear Regulation (ONR) has to provide consent to restart after each outage Periodic safety review (PSR) undertaken every 10 years, also requiring ONR acceptance Following events in Japan

EDF Energy has completed evaluations required by WANO, responded to the ONR recommendations and responded to the EU Stress Test EDF Energy concluded, with agreement from the ONR, that the fleet of existing stations is safe to continue operations. However the Stress Test examinations and subsequent work has identified some areas for improvement and opportunities for resilience enhancements have been identified and additional safety investment to implement these is planned over the next few years

On track to deliver on life extensions target


Life extension subject to review of safety, technical and economic factors Target to extend the lives of the AGR by an average of 7 years, and Sizewell B by 20 years Life Extension of 7 years for Hinkley Point B and Hunterston B confirmed in 2012

74

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

EDF Energy nuclear power station lifetimes


2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037

Hinkley Hunterston Hartlepool Heysham 1

Heysham 2
Torness Dungeness Sizewell

We expect to achieve an average of seven years life extensions across the AGR fleet (relative to scheduled closure dates at acquisition in 2009)

Period to Scheduled Closure Date (at acquisition in 2009) Extensions since 2009

High Confidence Scenario for Sizewell B is closure in 2055 (+ 20 years)

We now expect an average of seven-year life extensions across the AGR fleet and 20 years for Sizewell B
Note - The 7 year average is referenced against the plant lives at acquisition in 2009 Hartlepool / Heysham 1 have already been extended by 5 years in 2010 and Hunterston - Hinkley by 7 years in 2012

2055

75

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

EDF Energy nuclear safety performance has improved significantly


Accident frequency rate
1

Lost time accidents per 20,000 hours worked

0.8 0.6 0.4 0.2 0 2001/02 May-05

EDF Energy employees Contractors WANO median

Nov-05

May-06

Nov-06

May-07

Nov-07

May-08

Nov-08

May-09

Nov-09

May-10

Nov-10

May-11

Nov-11

May-12

Nov-12

UATR (trips per 70000 hrs critical)

Fleet 12-month UATR


2.00

(man-Sv per reactor per year)

Good
1.50

Collective radiation exposure (averaged over 3 year period)


0.16 0.12 0.08 0.04 0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012

1.00

0.50

0.00 Dec-02

Dec-04

Dec-06

Dec-08

Dec-10

Dec-12

76

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

A clear plan to maximize performance and long-term value


Short to medium term

Key Objectives

Excellence in Safety Safety is over-riding priority Achieve sustainable output of >55 TWh per annum; key focus areas identified Maintain adequate investments in plant including that necessary to support life extensions and post-Fukushima enhancements Maintain and develop skilled workforce to support UK new build program

Long-term strategic target

Maintain and develop skilled workforce to support UK new build program


Zero harm Seek opportunities to further enhance output sustainably Deliver life extensions of an average of 7 years for the AGRs and 20 years for Sizewell B Closely aligns with the UK ambition to achieve secure, affordable and low carbon electricity

77

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

Post-Fukushima
France United Kingdom USA
The NRC(2) set 5 years(2012-2016) to introduce all the Fukushima lessons to the safety standard, with 7 short-term priorities : crisisresponse systems in the event of an external attacks and electricity outages, venting for BWR, surveillance of the pools, crisis response teams, management procedures for serious accidents Transmission of preliminary reports 14 September 2011: EDF submits to the French Nuclear Safety Authority (ASN) the 19 reports on Additional Safety Assessments From 15 April 2011 to 31 July 2011 + EDF Energy submits 8 additional safety reports to the ONR(1) on 31/10/2011

Conclusion of technical requirements

3 January 2012: ASN submits to the Government its opinion about the Additional Safety Assessments in which it considers that the facilities examined show a sufficient level of safety, and that it will not thus request the immediate shutdown of any of them. At the same time, the ASN considers that continuing to operate facilities requires an increase in their robustness as soon as possible; to an extent beyond that set down in the existing safety margins, to cope with extreme situations . Reinforcing current protection of facilities and certain materials against earthquakes and floods Reinforcement of back-up water and electricity supplies Implementation of the Force dAction Rapide Nuclaire (FARN Nuclear Rapid Action Force) to bring, within 24 hours, human and material needs on any site in critical situation

According to the ONR(1) Neither the reviews undertaken by the Licensees for the stress tests, nor the earlier national reviews has indicated any fundamental weaknesses in the definition of design basis events or the safety systems related To the stress tests to withstand them for UK NPPs

A preliminary campaign of reinforced control against external aggression (earthquakes, floods, tornadoes) permits to avoid immediate shutdowns but some tests are still ongoing

Implementation of prescriptions

For the entire fleet, preparation for emergency have been stepped up to reflect a better understanding of the evolution of serious and the availability of emergency equipment

The US nuclear industry anticipated and reinforced its intervention/assistance tools immediately, with the support of the INPO(3) and the EPRI(4). All the procurements have been arranged at the end of 2012. The industry also decided and implemented two regional rapid action centers

(1) Office for Nuclear Regulation (2) Nuclear Regulatory Commission

(3) Institute of Nuclear Power Operations (4) Electric Power Research Institute

78

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

EPR technological improvements made for:

Safety:

Accident probability reduction (factor 10) External hazard protection (aircraft shell) Evolutionary design (core catcher) Annual generation boosted over 36% Thermal efficiency improvement (+ 3 pts) Increased availability (91%) 40% cut in present exposure Very important reduction of radioactive waste and gaseous and liquid discharges

Performance:

Radiation protection:

Environment:

79

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

EPR design improvements

4 independant safeguard systems


Core catcher in case of an accident Aircraft shell

Systems and components improvement


80

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

An update on the Flamanville 3 project at end-2012

First kWh generation targeted for 2016


Construction costs of about 8 billion(1) Progress of works at 31 December 2012

94% of civil engineering completed 39% of electro-mechanical assembly completed Turbo-alternator unit components being achieved A full-scale simulator has been brought into service Pumping station operational

New supports for the polar bridge of the reactor building installed Installation of reactor dome expected for summer 2013 Proceedings with the French nuclear safety authority (ASN):

Modifications to the command centre validated by the ASN in April 2012

(1) In 2008 euros

81

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

Flamanville 3 EPR: a first of a kind achievement, the feedback of which will benefit other projects

Close cooperation with Areva teams on the French and Finnish EPRs
Organization designed to encourage Flamanville 3 feedback for the other projects, of which Taishan, and reciprocally An in-depth analysis of Flamanville 3 to improve scheduling for next EPRs:

20 months of savings identified in Flamanville 3s first four years

Impact already seen at Taishan

82

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

China TNPJVC
Taishan 1 & 2 (EDF 30%)

Two 1,750 MW EPRs under construction 16,000 people involved Construction work carried out at 31 December 2012

Unit 1: end of welding work on main primary circuit, civil engineering on reactor building and adjacent auxiliary buildings complete; installation of first parts of turbo-alternator Group and first condenser
Unit 2: dome of the reactor building installed, main bridge in the machine room installed Common areas: commissioning of water demineralization station

2013: electro-mechanical assembly and starting of launching tests

83

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

New Nuclear Rest of the World


United Kingdom

26 November 2012: Office for Nuclear Regulation granted a Nuclear Site Licence for Hinkley Point C 13 December 2012: Health & Safety Executive issued a Design Acceptance Confirmation and the Environment Agency issued a Statement of Design Acceptability of the EPR Pressurised Water Reactor 4 February 2013: Centrica announced its decision not to participate in UK Nuclear New Build. This decision does not affect the continuing partnership between the two companies in the Nuclear Generation business 13 March 2013: Environment Agency granted the three main environmental permits required for operating the proposed site at Hinkley Point C 19 March 2013: The Secretary of State for Energy and Climate Change approved the Development Consent Order giving the planning permission to EDF to build a new nuclear power station at Hinkley Point C Final Investment Decision to be made following conclusion of discussions with the UK Government on Contracts for Difference

United States

Continued actions aiming at obtaining a license for the EPR in the US

84

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

In the UK, Contracts for Difference can provide the certainty investors need to build new low carbon plants
Illustrative Impact CfD on Revenues for Low Carbon Generators (/MWh) starting 2018 Introduction Generator pays difference

Reduce market volatility and risks for investors Offers a fair deal for consumers
Not a new mechanism

Difference paid to generator


Illustrative contract strike price

IPPs in the 1990s Used extensively during the Pool Common in commodities trading

Power price (including carbon price support)

Can be tailored by technology


Implementation issues manageable

2010

2015

2020

2025

2030

2035

85

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

What are nuclear long term provisions ?

In France, EDFs provisions are calculated in accordance with the law of 28 June 2006 and relevant expenses are estimated based on the economic conditions of the year-end We may distinguish between two categories of provisions:

Provisions for back-end nuclear cycle expenses, covering:


Provisions for spent fuel management, including the used fuel in the reactor not yet spread Provisions for long-term management of radioactive waste (see below for more details)

Provisions for decommissioning and for last cores

Another way to look at it from a financial point of view is to separate them based on the necessity to cover the provisions with dedicated assets

Indeed, only provisions for decommissioning, for long-term radioactive waste management and a part of provisions for last cores are to be covered by dedicated assets (see financial section for more information on dedicated assets) The rest of the provisions (mainly provisions for spent fuel management) are part of the operating cycle and are not subject to the dedicated assets constitution
86

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

The plant dismantling cycle: 3 key steps

Final shutdown

Phase 1

The first phase consists of unloading the fuel and draining all systems (after which 99.9% of on-site radioactivity has been eliminated), followed by decommissioning (dismantling of decommissioned non-nuclear installations)

Phase 2

Partial dismantling

The second phase consists in dismantling all equipment and buildings (with the exception of the reactor building), the packing and shipment of all waste to accredited storage and disposal facilities and monitoring of the reactor building

Full dismantling

Phase 3

This final phase involves the full dismantling of the reactor building and of materials and equipment that are still radioactive, as well as the removal of waste produced in this phase 3

The duration and complexity of the three phases may vary according to the actual scope of the work that needs to be done
87

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

EDF nuclear plants being dismantled


In 2001, EDF decided to fully dismantle its nine mothballed plants over a period of 25 years instead of 50 years

Chooz

1 pressurized-water reactor (PWR)

Chooz A (300 MW): 1967-1991

Brennilis

1 heavy-water reactor (HWR)


St Laurent

Brennilis (70 MW): 1967-1985 (EDF / CEA)

Chinon

Bugey

6 natural uranium / graphite gas reactors (NUGG)

Creys Malville

Chinon A1 (70 MW): 1963-1973 Chinon A2 (200 MW): 1965-1985 Chinon A3 (480 MW): 1966-1990 Saint-Laurent A1 (480 MW): 1969-1990 Saint-Laurent A2 (515 MW): 1971-1992 Bugey 1 (540 MW): 1972-1994

1 fast-neutron reactor (FNR)


NUGG PWR HWR FNR

Creys-Malville (1,240 MW): 1986-1997

88

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

International dismantling costs feedback

An OECD-NEA study published in late 2003 listed all costs, in USD (as of 1 July 2001) reported by various PWR operators worldwide, with the following results:
- Sweden: 93 USD / kW - Spain: 166 USD / kW - Belgium: 212 USD / kW - France: 225 USD / kW (with USD 0.85 = 1 EUR) - Japan: 405 USD / kW - United States: 256 to 420 USD / kW - Germany: 270 USD / kW - Switzerland: 234 USD / kW

Excluding extreme values (Sweden and Japan), reported costs are within the same order of magnitude, with France 10 to 15% below average, which can be explained by the series effect that may be reasonably expected for the PWR fleet EDF believes that the international benchmark published by the Cour des Comptes(1) in January 2012 strongly underestimates the correction on the management of spent fuels and for the cost difference between the type of plants (especially UK reactors, which are more costly to dismantle), thus inflating its estimate of the dismantling costs

A level of provisions in line with the international benchmark


(1) Government Audit Body

89

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

Benchmarking vs. German plant operators

A direct comparison of nuclear provisions (dismantling and downstream cycle) in EDFs accounts with German plant operators provisions is hindered by the important provisions aggregation reported by German plant operators German plant operators higher level of dismantling provisions, when compared to their installed base, may be due to several factors :

The effect of discounting, as the French fleet is younger: a 10-year time lag lowers provisions by 25%

Differences in scope: in Germany, dismantling costs include the costs of building and operating an on-site spent fuel storage building
The effect of greater volumes and standardization of processes and a lower dismantling cost for PWR reactors than for all the other types of reactors

Structural differences in organization and industrial choices (German reactors are of various types and are run in a decentralized manner, in contrast to the integrated and standardized fleet in France)

EDFs specific factors explain why its nuclear provisions are lower than some other operators
90

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

BWR vs. PWR comparison


Boiling-water reactor BASIC DIAGRAMME EDF Pressurised-water reactor BASIC DIAGRAMME

Turbine Condensor

Alternator

Zone generating nuclear waste upon dismantling


A boiling water reactor (BWR) has more areas contaminated by primary circuit water and larger areas generating nuclear waste than a pressurized-water reactor (PWR)
91

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

What is covered by long-term management of radioactive waste?


Evacuation and storage of radioactive waste from the dismantling of nuclear facilities

Evacuation and storage of radioactive waste from the treatment of spent fuel in La Hague
Long-term warehousing and direct storage not recyclable on an industrial scale in existing facilities EDF share of evaluation costs and costs of coverage, closure and supervision of storage centers:

Existing centers for very low-level, low-level and intermediate-level radioactive waste

Centers need to be created for long-lived low-, medium- and high-level radioactive waste (HL/IL-LL)

92

Generation

Nuclear

Key points Nuclear

Existing Nuclear France

Existing Nuclear UK

Safety

Nuclear New Build

Long-term provisions

Cigo, proposed facility for reversible deep-storage of radioactive nuclear waste in France
The law dated 28 June 2006 on the sustainable management of radioactive waste and other substances lays down the principle of a reversible storage facility located in a deep geological layer for the long-term management of final radioactive waste (HL/IL-LL). ANDRA is in charge of designing, building and operating the future storage facility EDF is responsible for managing the radioactive waste its nuclear plants create and works in close collaboration with ANDRA in order to implement a storage solution that is safe and cost effective. This cooperation is spelled out in an agreement signed between ANDRA, EDF, AREVA and the CEA in early 2012 The public debate on a storage facility in the French departments of Meuse and Haute-Marne (Cigo) is taking place over a period spanning from 15 May to 15 October 2013

Publication of the report and a summary of the public debate on 12 December 2013 2015: ANDRA submits request for authorisation to build Cigo 2019: Construction of Cigo facilities (excluding prep work) begins 2025: ANDRA commissions Cigo, subject to the authorisation of the French Nuclear Safety Authority (ASN)

Provisional timeframe:

An update on the full cost of the project is expected before the end of 2013

93

EDF main businesses

Generation

Nuclear

Hydropower & renewables

Thermoelectric plants

EDF main businesses


Generation
Nuclear Hydropower & Renewables
Key highlights Hydropower Other renewables
95 97

105

94

Generation

Hydropower & renewables

Key highlights

Hydropower

Other renewables

A leader in hydropower and other renewable energies

Europes leading hydropower producer In France, EDF operates 435 hydropower plants and manages the water reservoirs held by its 239 large dams. In Italy EDF owns 47 hydro plants Architect and lead contractor on international hydro projects As of 31 December 2012, EDF holds 40 % of Nam Theun 2 Power Company (NTPC), owner of the hydro plants complex of Nam Theun 2 (for a total of 1,070 MW) Feasibility studies conducted in Brazil (5 facilities complex for a total capacity of about 10,682 MW) A major player in the green energies market EDF EN among the world top 10 leaders in wind and solar EDF EN is expanding in Europe, North America and Africa 2012 was a record year for the commissioning of about 1,550 MW of new wind and solar capacity Wind power and solar photovoltaic: supporting a growing industry Wind offshore in France: in April 2012, three of the French governments four wind power projects were awarded to the consortium headed by EDF EN in the first tenders for offshore wind power launched in 2011 (1,500 MW)

Renewable installed capacity in 2011 (GW)

36

35

34
26

#5
25 25 24 19 15 14 13 11

Hydro Renewables

10 9

Sources: Global data and mentioned companies annual reports

95

Generation

Hydropower & renewables

Key highlights

Hydropower

Other renewables

EDF: major positions in renewable energies


73 MW 137 MW(1) 241 MW 3 MW 156 MW 1 MW 5 MW 63 MW 1,697 MW 20,410 MW 713 MW (1) 113 MW

301 MW

90 MW
MW Hydro MW Other renewables

303 MW

56 MW

1,361 MW 935 MW

301 MW

6 MW

A diversified portfolio with about 27 GW of net installed capacity

(1) Including EDF EN small hydro Note: These figures are consolidated Sources: EDF, EDF EN

96

Generation

Hydropower & renewables

Key highlights

Hydropower

Other renewables

Hydropower in the EDF Group


Installed capacity at the end of 2012 (non consolidated)
EDF Luminus ~73 SSE(3) ~3 Estag ~25 EDF SA(1) ~20,410 Cambodge Alpiq ~2,804 Thailande Laos Ventiane Chine

Vietnam

EDF EN(2) ~81 Edison ~1,358


Fenice ~3
EDF 100% Companies

Nam Theun 2 1,070

(1) Including French Islands activities and excluding Rance tidal power plant (2) The EDF EN figure does include the whole worldwide installed capacity (3) On 24 May 2013, EDF and EPH has signed definitive agreement for the sale of 49% of Stredoslovenska Energetika A.S. (SSE). The contemplated transaction will be submitted for authorization to a general meeting of shareholders of SSE. Closing is expected during second semester of 2013 following receipt of antitrust clearance Note: these figures are including minority financial participations

97

Generation

Hydropower & renewables

Key highlights

Hydropower

Other renewables

EDF's hydropower fleet in France

2012 net production (excluding Island Energy Systems) = 34.5 TWh(1)

Benefits of hydropower

Speed, availability and flexibility Renewable energy: annual savings of 13 million ToE (tons of oil equivalent) Water storage capacity (peak energy, cold source for thermal and nuclear generation) Able to provide system services to the network (adjustment of frequency and voltage)

(1) Gross hydro production of 41.2 TWh, of which 6.7 TWh of pumped storage consumption

98

Generation

Hydropower & renewables

Key highlights

Hydropower

Other renewables

Different types of hydropower facilities


EDF disposes of a variety of hydropower facilities, able to meet baseload and peak demand, designed to optimize the use of water resources

Run-of-river

No storage capacity Energy generation depends solely on speed of water flow

Pondage water

Average size water reserve (daily or weekly) Generation is concentrated at peak hours

Reservoirs

Large storage capacity Influence on downstream plants, which calls for management of valley stations Development of management strategy: trade-off between immediate gain and future gain to maximize the asset's value

Pumped storage (STEP)


Water is pumped from a downstream reservoir to an upstream reservoir to create a reserve during off-peak hours Water is turbined from the upstream reservoir to the downstream reservoir during periods of high demand Grand-Maison, Revin, Montezic, Super Bissorte, La Coche, Le Cheylas
99

Generation

Hydropower & renewables

Key highlights

Hydropower

Other renewables

EDF's hydropower fleet in France


Installed capacity ~20 GW
In GW
(1)

Theoretical maximum output: ~ 43.5 TWh


InTWh

Tidal

Tidal

0.2
Run-of-river Reservoirs

0.5
Run-of-river

Reservoirs

3.6

8.8

17.1

15.8

Pondage

3.1

Pumped storage

Pumped storage Pondage

4.3
20% of the overall EDF generation capacity in France
(1) Excluding Corsica and the French Overseas departments, 400 MW in 2012

1.1

8.8
10% of the average EDF output in France

100

Generation

Hydropower & renewables

Key highlights

Hydropower

Other renewables

Potential hydropower generation depends on weather


In TWh

23 TWh gap between highest and lowest annual output potential over the past 23 years (1989-2012)
1989-30.5 TWh 1989-30,5 TWh

0.7 7,0 6.0 6,0 5.0 5,0

1994-53,2 TWh 1994-53.2 TWh


2011-31.2 TWh 2011-31,2 TWh 2012-39.1 TWh 2012-39,1 TWh

4,0 4.0
3.0 3,0

2,0 2.0
1.0 1,0 0.0 0,0

Maximum potential hydropower capacity: maximum quality of power that can be produced from hydraulic sources (rain, snow, tides) over a given period of time
101

Generation

Hydropower & renewables

Key highlights

Hydropower

Other renewables

Investments in hydropower assets

The Renouveau project for modernizing operations and maintenance

Gradual deployment across all units from 2012 to 2018


Overseeing facilities and remote intervention via e-operations, modernizing the control-command systems Substituting conditional and preventative maintenance to repair Optimizing maintenance outages Modernizing information systems by shifting to computer-aided maintenance Simplifying management of small hydropower structures Increasing output potential Making temporary power available at peak times Making additional system services available

Features of the project:


Gains expected in:


2015 gains estimated > 90m


102

Generation

Hydropower & renewables

Key highlights

Hydropower

Other renewables

Example of a hydropower replacement project: Romanche-Gavet (Isre department in France)

Replacement of six hydropower plants by a single, underground facility

A 250m investment 93 MW capacity Construction begun in 2011; plant set to come on line in 2017 155 GWh potential output gain A 60-year concession

103

Generation

Hydropower & renewables

Key highlights

Hydropower

Other renewables

Renewal of hydropower concessions

On 22 April 2010, the Ministry of Ecology, Energy and Sustainable Development and Sea announced the scope of the renewal of hydroelectric concessions EDF currently holds the majority of the hydropower concessions in France 10 concessions, corresponding to a total power of 5,300MW and representing some 20% of the French hydropower fleet (of which 4,300 MW held by EDF), are concerned To put together these valley concessions, the French government decided that half of EDF concessions (2,150 MW and about 3.5 TWh) are to be renewed early. Outgoing operators will receive compensation for the lost income stemming from the early termination of the concession, in accordance with the terms of the concession agreement EDF is preparing to submit its best offer for each concession, combining improved energy efficiency, attention to the environment (water resource, aquatic environment,) , compensation of the government and local authorities through fees and land development, while ensuring the safety and the social aspect of the operation

In November 2012, a fact-finding parliamentary mission was created to study the award of hydropower concessions. The Rapporteur of this mission is expected to release his findings during the first semester 2013
104

Generation

Hydropower & renewables

Key highlights

Hydropower

Other renewables

EDF Energies Nouvelles: history in brief


1990
Creation of SIIF Energies

1999

2000

2002

2004

2006

2008

2011

2012

IPO and 530M increase in capital to finance expansion in wind energy

First investment in wind energy

EDF acquires a 35% interest in SIIF Energies

Creation of ENR, a joint venture with EDF in distributed energies 500M capital increase to finance the plan to expand in solar energy

Acquisition of EnXco in the United States EDF raises its stake in SIIF Energies to 50%

EDF acquires full ownership of EDF Energies Nouvelles shares EDF EN and its local partners were the successful bidders for three off-shore wind power farms. Implementation in South Africa, Morocco, Israel and Poland
105

SIIF Energies changes its name to EDF Energies Nouvelles

Generation

Hydropower & renewables

Key highlights

Hydropower

Other renewables

EDF EN: Installed capacity and capacity under construction, by type


In MW Wind Solar Hydro Biogas Biomass Cogeneration

Gross
at 31/12/2011 3,521.5 413.5 84.2 60.3 26.0 19.2 at 31/12/2012 4,680.3 497.3 84.2 64.9 26.0 19.2 at 31/12/2011 2,789.5 340.6 77.1 59.5 18.2 6.7

Net
at 31/12/2012 3,629.2 409.6 81.4 63.0 18.2 6.7

Total installed capacity


Wind under construction Solar under construction Other under construction

4,124.7
1,490.1 287.1 4.3

5,371.9
1,113.4 170.4 45.1

3,291.6
892.2 153.5 3.2

4,208.1
577.8 164.2 43.8

Total capacity under construction Total

1,781.5 5,906.2

1,328.9 6,700.8

1,048.9 4,340.5

785.8 4,993.9

106

Generation

Hydropower & renewables

Key highlights

Hydropower

Other renewables

Tender in French off-shore windfarms: success of the consortium led by EDF EN on 3 sites out of 4
Best industrial program (40% of the score)

Three out of four projects won by the consortium led by EDF EN (up to 1,500 MW)
Le Trport(1) (Seine-Maritime) 600 to 750 MW Fcamp (Seine-Maritime) 480 to 500 MW

Over 7,000 direct and indirect jobs Direct drive turbine of 6 MW Alstom

The most comprehensive technical and environmental studies (20% of the score)

Courseulles-sur-Mer (Calvados) 420 to 500 MW


Saint-Brieuc (Ctes dArmor) 480 to 500 MW

Dunkerque Dieppe Cherbourg Le Havre

Extensive wind studies and extensive geotechnical investigations Long involvement with local stakeholders

Electricity tariffs corresponding to the Groups investment criteria (40% of the score) Investment post-2015 and commercial operation in 2017 at the earliest

Brest

Saint-Nazaire (Loire-Atlantique) 420 to 750 MW

Saint-Nazaire

(1) Tender for Le Treport was declared unsuccessful

107

Generation

Hydropower & renewables

Key highlights

Hydropower

Other renewables

Tender in Moroccan and South African wind: EDF EN selected as preferred bidder
Morocco: Tazas project (150 MW) Competitive mix of Alstom 3 MW turbines Support of the Alstom experienced and effective local structure Very competitive investment and excellent wind conditions Partnership with Mitsui 20-year PPA with ONE being finalized South Africa: Chaba (20.6 MW), Waainek (23.3 MW) and Grassridge (59.8 MW) 3 MW Vestas turbines Projects carried out via the local developer Innowing, EDF EN 80%-owned subsidiary PPA guaranteed by South Africans State Commissioning expected by 2015

Strict respect of the Group investment criteria


108

EDF main businesses

Generation

Nuclear

Hydropower & renewables

Thermoelectric plants

EDF main businesses


Generation
Nuclear Hydropower & Renewables Thermoelectric plants
Overview Focus on France Focus on international
110

112
116

109

Generation

Thermoelectric plants

Overview

Focus on France

Focus on international

Fossil Fired Generation is likely to remain the number one source of electricity generation in the world
In TWh

Coal Gas Hydro Nuclear Wind

2008 2020 2035

Biomass
Other renewables Oil 0
Source: IEA 2010 report

2,000

4,000

6,000

8,000

10,000
110

Generation

Thermoelectric plants

Overview

Focus on France

Focus on international

EDF is well positioned to meet new challenges of fossil-fired generation

EDF experience in fossil-fired generation is reflected by existing assets and current investments in France and abroad

Did you know? Existing fleet

An important part of the energy mix for the Group (25% of the installed capacity) variable between the countries (12% of installed capacity of EDF in France and c.80% in Italy) Development of plants / IPPs in Asia (China, Vietnam), South America (Brazil) and Europe Development of gas thermoelectric plants: construction of CCGTs (4 in France and 3 in the UK)

~ 38(1) GW
Installed worldwide

Towards a better environmental performance

Development of more efficient combined cycle gas plants (reducing by 50% the CO 2 emissions by kWh produced, three times less of nitrogen oxide and very little sulfur and dust) Engagement in the supercritical coal technology with better environmental performances (JV in China with Sanmenxia 2 supercritical power plant)

Research focusing on carbon capture, with a pilot unit in Le Havre (France)

~ 23 GW
made up of fuel-fired and coal plants

Towards a better technical performance

Investment in a new generation combined cycle gas in Bouchain with GE Flex Efficiency turbine (efficiently raised by 61% and maximal power reached in 30 minutes) Target of increasing responsiveness and flexibility of fossil-fired plants to compensate for the volatility of generation from renewable energies

~ 15 GW
made up of gas-fired plants (incl. cogeneration)
(1) Net generation capacity

111

Generation

Thermoelectric plants

Overview

Focus on France

Focus on international

EDF Group CO2 specific emissions vs. Europe


CO2
g/kWh

350

Europe (2011)(1)

300
250
EDF Group (2012)

200 150 100


50
EDF SA (2012)

(1) European carbon factor of the main electricity producers (source: PWC study November 2012)

112

Generation

Thermoelectric plants

Overview

Focus on France

Focus on international

EDF thermal plant fleet in mainland France


1

Gennevilliers
1

Le Havre Porcheville Dirinon


1

2 1 2 2

4 3 4

Bouchain
2

~ 12.6 GW (excluding overseas and Corsica) divided as follows:


Coal-fired plants Seven 250 MW units

La Maxe

Paris
1 2 3 3 1 2 1 3 4

Vaires /Marne
4

Four c.600 MW units Fuel oil-fired plants Four c.600 MW units Four c.700 MW units

Brennilis Cordemais

Blnod
Montereau
2

Arrighi

Vitry / Seine

CCGTs 3 CCGT totaling 1,357 MW

Aramon

510 MW of CCGT under construction (Bouchain in 2015) Combustion turbines 13 turbines totaling 1,862 MW

Martigues

113

Generation

Thermoelectric plants

Overview

Focus on France

Focus on international

An industrial project for better environmental performance


Atmospheric emissions from fossil-fired plants in France
(kg/MWh) (kg CO2 /MWh)

12 10 8 6 4 2

1200 1000 800 600

400
200 0

Dust Nitrogen oxides Sulfur oxides

1990

2000

2010

2016

2020

CO2

114

Generation

Thermoelectric plants

Overview

Focus on France

Focus on international

Commissioning of CCGT plant in Martigues


Repowering of the first 465MW production unit of a Combined Cycle Gas (CCGT) plant on 31 August 2012 A second unit commissioned on 7 June 2013 Repowering:

Reusing part of the existing (renovated) facilities:


steam turbine pumping station waste station cooling circuit

Combining a combustion turbine and an exhaust-recovery boiler Half the CO2 emissions Four-fold reduction in nitrogen oxide emissions Little dust, very little sulfur oxide 57% efficiency vs. 37% for old facilities

Improving the sites performance:


The site, with the two units, is the most powerful CCGT by repowering in France with 930 MW

Investment for the two Combined Cycle Gas: 500m 15% less expensive than building a new facility

115

Generation

Thermoelectric plants

Overview

Focus on France

Focus on international

International projects carried out by EDF


United Kingdom CCGT West Burton (2012) The Netherlands CCGT Sloe (2010)

Italy CCGT Tarente (96) & Piombino (2000) Spain IGCC Puertollano (99) Mexico CCGT Altamira 2 CCGT Rio Bravo 2-3-4 CCGT Saltillo (2001 to 2005)

China Coal Laibin (2000) Shandong (Heze & Liaocheng) (2003-04) partnership Sanmenxia (since 2009) Vietnam CCGT Phu My (2005)

Brasil CCGT Norte Fluminense (2004)

Ivory Coast TAC Azito (1998) Egypt GAZ Suez & Port Sad (2003)

Lebanon Beddawi & Zahrani (98) Saoudi Arabia Subsidiary creation EDF Saudi Arabia (2010)

Realized or in progress projects


116

EDF main businesses

Generation

Networks

Optimization - Trading - Supply

Gas

EDF main businesses


Generation Networks - Transmission & Distribution
Overview Focus on transmission
118 121

117

EDF main businesses

Networks

Overview

Focus on transmission

Key expertise in networks

Electricity transmission

France: via RTE, with 100,000 km of lines and more than 2,600 substations and 46 cross-border interconnections Engineering projects outside France led by EDF in Vietnam and Senegal

Electricity distribution

France: via ERDF, lectricit de Strasbourg, EDF IES (in France), with ~1.3 million km of lines Hungary and Slovakia(1): through Group subsidiaries which own high, medium and low voltage grids Increasing use of delegated management partnerships (e.g agreement signed with the Russian power distributor MRSK and with the Chinese State Grid) Evolving business model to take into account various new decentralized generation solutions and allow consumers to manage their consumption more closely

(1) On 24 May 2013, EDF and EPH have signed a definitive agreement for the disposal of EDF's minority stake of 49% in Stredoslovensk Energetika a.s. (SSE). The contemplated transaction will be submitted for authorization to a general meeting of shareholders of SSE. Closing is expected during second semester of 2013 following receipt of antitrust clearance.

118

Activits principales EDF main businesses d'EDF

Networks

Overview

Focus on transmission

The network tariff in France: the TURPE


Multi-year predefined tariffs over 4 years (from 1 August 2009 until 31 July 2013 for the TURPE 3) General principle is to cover costs and to give a return on capital invested: cost + type regulation Rate of return is computed on Regulated Asset Base (RAB) at a nominal pre-tax rate equal to 7.25% (for Transmission & Distribution) Incentive regulation on 4 items: manageable costs, network loss purchase, quality of supply (distribution) and quality of service A regulatory account, the Compte de Rgulation des Charges et Produits (income and expenditure adjustment account), measures and compensates ex-post, differences between actual outcomes and forecast on which the TURPE is determined by the CRE. CRPC in particular protects ERDF and RTE against volume risk Evolutions between TURPE 2 and TURPE 3

Extension of CRCP scope and annual indexation Incentive regulation (bonus/malus) on 4 items: manageable costs, quality of supply, quality of service and network loss purchase

119

EDF main businesses

Networks

Overview

Focus on transmission

From TURPE 3 to TURPE 4: calendar


Distribution

November 2012: cancellation by the French State Council (Conseil dEtat) of TURPE 3 distribution

February 2013: CREs proposal for new TURPE 3 distribution to be implemented in June
June 2013: CREs consultation on TURPE 4 distribution 1st January 2014: expected implementation of TURPE 4 distribution 1st August 2013: TURPE 4 transmission implementation
1st June 1st August 1st January 2014

Transmission

Implementation of new TURPE 3 distribution

Establishment of TURPE 4 transmission

Establishment of TURPE 4 distribution

120

EDF main businesses

Networks

Overview

Focus on transmission

TURPE 4: Transmission regulation


Fixed assets (excl. Work in progress(1)
+ Capex - dep.

Remuneration of RAB

and WCR) =
Regulatory Asset Base (RAB) 11.7bn at the end of 2012

+
Industrial Depreciation

Revenues from regulated tariffs

Each year

+
Regulatory rate of return
RAB beginning of the year remunerated at 7.25% Work in progress remunerated at a rate of 4.6%

Operating Expenses

Tariffs depending on the time of day or season

Depreciation of CRCP linked to TURPE 3 Simplified incentive scheme / TURPE 3

(1) Remunerated at a rate of 4.6% pa

121

EDF main businesses

Networks

Overview

Focus on transmission

Average TURPE 3 over the 2009-2012 tariff period


Regulated Asset Base (RAB) 10.7bn (average 2009-2012)
11.4bn at 01/01/2012
Remuneration of R.A.B. 0.8bn

11.2bn at 01/01/2011
10.7bn at 01/01/2010 Fixed assets (excluding work in progress(1))

+
Industrial depreciation 0.6bn

+
Operating expenses 3.0bn

Revenues from regulated tariffs 4.0bn 3.8bn in 2009 4.0bn in 2010 3.9bn in 2011

Regulatory rate of return 7.25%

Interconnections subject to tariff and paratariff declines 0.2bn Included in tariff

Depreciation of CRCP linked to TURPE 2 0.2bn


(1) Remunerated at a rate of 4.8% pa

122

EDF main businesses

Networks

Overview

Focus on transmission

TURPE yearly indexation

Yearly indexation TURPE 3 (HCPI-X+ K). Tariff is adjusted each year on the implementation date of TURPE 3 (after an initial increase of 2.0% on 1 August 2009) Transmission:

2.5% increase on 1 August 2010, then 2.56% increase on 1 August 2011, then 2.79% on 1 August 2012 Yearly indexation on 1 August based on the formula: HCPI - X + K

HCPI = harmonized consumer price index of Year N-1 -X = 0.4% (cost factor: tariff-based costs evolve faster than inflation) K = CRCP reconciliation term

Yearly indexation TURPE 4 (CPI+ K). Tariff is adjusted each year on the implementation date of TURPE 4 (after an initial increase of 2.4% expected on 1 August 2013) Transmission:

Yearly indexation on 1 August based on the formula: CPI + K


CPI = Consumer Price Index in France excluding tobacco of Year Y-1 K = CRCP reconciliation term

123

EDF main businesses

Networks

Overview

Focus on transmission

Regulation and asset base in France


2012 RAB WACC Indexing

Electricity transmission

Net book value = 11.7bn

7.25%
nominal before taxes

2.4% on 1 August 2013 Inflation (CPI) + CRCP on 1 August each following year 2014-2016

124

EDF main businesses

Networks

Overview

Zoom transmission

Transmission regulation Change in RAB


Delta = + 0.42bn
CAPEX: 1.37bn Fixed 1 Jan 2012 11.8bn assets(1)

2012 depreciation/amort: 0.62bn

Investment subsidies 1 Jan 2012 0.48bn

Other 0.33bn

Fixed assets(1) 1 Jan 2013 12.2bn

Investment subsidies 1 Jan 2013 0.57bn

Delta = - 0.09bn

Regulated asset base (RAB) (1) 1 Jan 2012 11.3bn

Delta = + 0.34bn

Regulated asset base (RAB) (1) 1 Jan 2013 11.6bn

(1) Excl. Work in progress (1.1bn) remunerated at a rate of 4.8% and 1976 appraisal difference

125

EDF main businesses

Generation

Networks

Optimization - Trading - Supply

Gas

EDF main businesses


Generation Networks - Transmission & Distribution Optimization - Trading - Supply
Optimization principles Optimization and Trading at EDF in France Supply in France
127 131 135

126

EDF main businesses

Optimization Trading Supply

Optimization principles

Optimization and Trading at EDF in France

Supply in France

Optimization and Trading: leveraging the value chain


The main role of the optimizer is to ensure the balancing between sources and uses of energy in France The objective is to secure and maximize the gross electricity margin of the generation-supply entity through the optimal use of upstream or downstream asset flexibility and by seeking the best purchasing and sales opportunities on wholesale markets:

Did you know?


EDF Trading is one of the most important energy traders in Europe and has strong positions in the US

Upstream resources: generation fleet, long-term electricity purchasing contracts, bilateral purchasing agreements, purchases on wholesale markets, purchase obligations from decentralized producers Downstream commitments: long-term supply contracts, bilateral sales agreements, sales to end users, sales on wholesale markets

Trading figures for 2012:


3,130 TWh of electricity 445 MBTU of gas 706 Mt of coal 381 Mt of CO2

The goal of the optimizer is to optimize costs and inventories, resorting to the wholesale market (through EDF Trading)

The supply-demand balance is forecast over different time horizons To face the volume risk and the main critical situations, sufficient margins in terms of capacity must always be available

127

EDF main businesses

Optimization Trading Supply

Optimization principles

Optimization and Trading at EDF in France

Supply in France

Optimization-trading within the Group: towards full integration


France Power
Short-term assets optimisation Flexibility on forward markets

United Kingdom

Central and Eastern Europe NA

Belgium

Coal Gas CO2 / biomass NA

NA

Completed In progress Scheduled by 2015


128

EDF main businesses

Optimization Trading Supply

Optimization principles

Optimization and Trading at EDF in France

Supply in France

Optimization - scheduling of generation facilities based on variable costs


Stack chart of generation facilities
Example of one high consumption day in winter

Peak facilities

The optimizer schedules the operation of generation facilities, ranking according to their merit order, until the estimated demand is met

Semi-base load facilities

Did you know?


Base load facilities

Must-run generation
Combustion turbines Reservoir hydro facilities Thermal power (oil and coal)

Nuclear power
Hydro ( et run-of-river Thermique flamme (fioul, charbon CCG) & pondage facilities) & Purchase obligations (wind, )

The merit order is a way of ranking available sources of energy, especially electrical generation, in ascending order of their shortrun marginal costs of generation, so that those with the lowest marginal costs are the first ones to be brought online to meet demand, and the plants with the highest marginal costs are the last to be brought on line
129

EDF main businesses

Optimization Trading Supply

Optimization principles

Optimization and Trading at EDF in France

Supply in France

Daily optimization: preliminary optimization by each producer


Before the market, each producer determines the resources required to meet a given level of demand It classifies its available generation facilities from the least expensive to the most expensive It then determines the marginal cost of purchases/sales on the market to meet the supply-demand balance of its own portfolio:

Theoretical generation cost (/MWh)

Cost / Volume curve France

Spot power price (day ahead) is based on


Hydropower Must run purchases obligations

the generation cost of the last called plant (marginal plant)

Nuclear

Charbon Coal

Gas

In that case, with a demand of 75 GW, the


price stands at 60/MWh. In this case, the marginal plant is coal

20,000 40,000 60,000 Cumulated power generation (MW)

80,000

130

EDF main businesses

Optimization Trading Supply

Optimization principles

Optimization and Trading at EDF in France

Supply in France

Maximising the consolidated gross margin

Structural diagram:

The objective is to make the Producer, the Optimizer and the Supplier responsible for their own activities within an explicit mandate There is a joint objective, to maximize the gross margin, driven primarily by the Optimizer
Producer Optimizer Supplier

Gross Electricity Margin Supply/Generation Responsibilities Ensuring the availability of generation facilities Controlling maintenance operating costs Responsibilities Optimizing the Upstream/Downstream balance Maximising the consolidated gross margin Managing risks Responsibilities Maximizing supply margins Guaranteeing market shares

131

EDF main businesses

Optimization Trading Supply

Optimization principles

Optimization and Trading at EDF in France

Supply in France

Optimizer's interactions with the supplier and producer

The producer undertakes to provide the optimizer with:

Its best estimate of the availability of generation facilities Complete transparency on its constraints and costs

The supplier undertakes to provide the optimizer with:


Its best estimate of the development of its customer portfolio and volumes consumed by its customers Full transparency on products sold to its clients, including embedded optionalities with the associated risks

The optimizer undertakes to provide the producer and supplier with:

Economic signals so that each entity will manage their portfolios in order to maximize gross margin

132

EDF main businesses

Optimization Trading Supply

Optimization principles

Optimization and Trading at EDF in France

Supply in France

The upstream/downstream balance is fairly volatile over different time periods

Thermo-sensitivity of consumption: temperature has a strong influence on demand in winter, one degree less equals to 2,300 MW of higher consumption in France
Variations in water levels major variation in generation potential year on year (typically c.15 TWh between a dry year and a rainy year) Unplanned unavailability of generation facilities (nuclear power, fossil-fired power, ...) Mandatory purchases from smaller producers (decentralized): strong fluctuation in contribution of renewable energies (up to~ 2,600 MW from one day to another on the French wind power generation) Sales on the wholesale markets: optionalities at the hand of EDF counterparties

133

EDF main businesses

Optimization Trading Supply

Optimization principles

Optimization and Trading at EDF in France

Supply in France

Use of the wholesale market

The optimizer balances the difference by transacting on the wholesale market, when there is a difference between the sum of the upstream and downstream positions It is possible to transact different products over different time periods

Medium term: purchases or sales of annual products for the year Y+1/Y+2/Y+3 Short term: same principle with purchases/sales today for the next day (spot) or over the next few hours of the day Intermediate products (quarterly products over two to three coming quarters and weekly products over two to three coming weeks) also exist

The optimizer can directly contact its potential counterparties or go through the organized markets

OTC (over the counter) bilateral agreements: direct trade with counterparty Regulated exchanges: pooling of supply and demand by a market organizer and settlement of trades (Epexspot in France, Belpex in Belgium, etc.)

The optimizer for France has access to the market exclusively via EDF Trading
134

EDF main businesses

Optimization Trading Supply

Optimization principles

Optimization and Trading at EDF in France

Supply in France

France: upstream/downstream electricity balance in 2012 (excluding French electrical islands business)
In TWh

Output/Purchases

2012 vs. 2011

Sales

2012 vs. 2011

521
Net market purchases Purchase obligations LT & structured purchases Fossil-fired Hydropower Nuclear 405 25 36 15 5 35

+13
+18 +3 -3 +3 +8

521
61 NOME supply 27 55

+13
+30 -13 -11

Auctions (VPP) (1)


Structured sales
-16

Endcustomers

378

+7

(1)VPP: capacity auctions, now ended, resulting from a commitment by EDF to the European Union in the context of EDFs acquisiti on of EnBW shares, to encourage competition on the French market

135

EDF main businesses

Optimization Trading Supply

Optimization principles

Optimization and Trading at EDF in France

Supply in France

EDFs 2012 electricity business in France in 2012


2012 end-customer sales (in TWh) LDC(2) transfer price 17.8 Green tariff Yellow tariff 39.7

Business and professionals (out of historic tariff)


o/w Eurodif (Export and Contract processing)

81.9 59.9
2.1

Business and professionals(1) (at historic tariff) Residential customers

175.6 Blue tariff 142.4

178.6

(1) Including EDF self-consumption (2) Local Distribution Companies (LDC)

136

EDF main businesses

Optimization Trading Supply

Optimization principles

Optimization and Trading at EDF in France

Supply in France

EDFs downstream portfolio in 2012


In TWh

130.2 Wholesale markets and VPP sales

Wholesale markets

118.2

Wholesale markets

-7.3

Wholesale markets and VPP sales -25.4 2.2 55.2 Structured sales

33

Auctions VPP (1)

Structured sales

66.4 ARENH sales 60.8 30.8 2011 2012

ARENH sales

Downstream portfolio managed by optimisation business unit (via EDF Trading for the wholesale market interface)
(1) VPP: capacity auctions, now ended, resulting from a commitment by EDF to the European Union in the context of EDFs acquisition of EnBW shares, to encourage competition on the French market

137

EDF main businesses

Optimization Trading Supply

Optimization principles

Optimization and Trading at EDF in France

Supply in France

Tariffs in France

The tariff structure includes a range of regulated electricity tariffs, depending on the type of consumers: blue for residential and small professionals, yellow and green for companies The evolution of tariffs is determined by the Economy and Energy ministers, after consultation with the CRE (Commission for the Regulation of Electricity) The tariff is called integrated as it covers all the following elements:

The supply portion (approx. 60% excl. taxes for residential customers), which can be split into the energy portion ( baseload + shape factor), based on generation costs, and into commercial costs (client management and marketing) The network portion (approx. 40% excl. taxes for residential customers), including the cost of using the public transmission network operated by RTE and the public distribution network mainly operated by ERDF (95% of volume is distributed by ERDF). The network cost portion is based on the tariff for use of the public electricity transmission and distribution networks (TURPE)

Since 1 July 2007, all customers in France can freely choose their electricity supplier

Average bill breakdown including VAT Blue residential tariff (1 January 2013) 143.5/MWh Average bill breakdown excluding VAT Yellow tariff (1 January 2013) 104.5/MWh Taxes (5%) CSPE (13%) TURPE (33%)

Average bill breakdown excluding VAT Green tariff (1 January 2013) 80.0/MWh

Taxes (22%) CSPE (9%) TURPE (31%)

33.0 13.5 44.0


Generation and supply costs (49%)

5.0 13.5 35.0

Taxes (3%) CSPE (16%) TURPE (22%) Generation and supply costs (59%)

2.0 13.0 18.0 47.0


138

Generation and supply costs (38%)

53.0

51.0

EDF main businesses

Optimization Trading Supply

Optimization principles

Optimization and Trading at EDF in France

Supply in France

Change in tariffs and inflation in France in 2012


2007 Inflation (June N / June N-1) Average tariffs o/w: Blue tariff Yellow tariff Green tariff LDC(1) transfer tariffs 1.1% 1.5% 1.5% 0.0% 2.0% 6.0% 8.0% 8.0% 1.9% 4.0% 5.0% 5.6% 3.2% 4.5% 5.5% 10.0% 1.7% 3.2% 3.2% 1.3% 2.0% 2.0% 2.0% 2.3% 1.1% 1.2% 2008 3.6% 3.6% 2009 -0.7% 2.7% 2010 1.6% 3.8% 2011 2.1% 2.2% 2012 2.0% 2.0%(2)

Source: Insee (1) Local Distribution Companies (LDC) (2) The CRE delivered an unfavorable opinion on the 2% tariff increase applied on all three tariffs (blue, yellow and green) in summer 2012, the increase not being high enough to cover the costs as requested by law

139

EDF main businesses

Optimization Trading Supply

Optimization principles

Optimization and Trading at EDF in France

Supply in France

ARENH volumes allocated to competitors under the NOME law


In TWh

Did you know?


ARENH 2011 (40/MWh) ARENH 2012 (42/MWh) ARENH 2012 (42/MWh) ARENH 2013
The CRE determines the ARENH exante rights of each provider based upon provider forecasts according to their customer portfolio and to established allocation methods
At the end of each year, the CRE settles the ARENH rights of each supplier based on actual customer consumption An additional price component is then billed to every supplier whose actual rights are below those allocated based on their forecast

30.8
H2 2011 volumes supplied

30.2
H1 2012 volumes supplied

30.6
H2 2012 volumes supplied

32.9
H1 2013 volumes supplied(1)

Maximum total volume of EDFs sales to competing suppliers (excepting network losses): 100 TWh(2)
Volumes allocated equivalent to 85% of delivery in 2012 Option for the volumes for the second semester of 2013: 33.5 TWh

Can be amended by competitors until 15 May 2013, under certain conditions. Otherwise, cancellation and replacement of initial H2 volumes by extending the yearly sales to H1 2014

2012 volumes supplied by EDF to competitors: 60.8 TWh

(1) November 2012 notification (2) Determined by law

140

EDF main businesses

Generation

Networks

Optimization - Trading - Supply

Gas

EDF main businesses


Generation
Networks - Transmission & Distribution

Optimization - Trading - Supply


Gas
European gas sector
EDF strategy Key highlights on EDF gas business
142 143 144

141

EDF main businesses

Gas

European gas sector

EDF strategy

Key highlights on EDF gas business

The growing importance of gas

Uncertainty on the demand side: role of gas in decarbonization of European economies


Gas-fired plants do emit two times less CO2 than coal-fired plants Gas consumption is currently moderated by the economic difficulties, especially in Europe where consumption decreased in 2012 Long-term trend will therefore depend primarily on economic parameters and implementation of European energy policies (renewable energy, greenhouse gas emissions, energy efficiency), and should be moderate until 2035 notably due to higher needs for electricity output But given current depletion of European reserves, Europe will rely increasingly on imports in the future

Did you know?

Rule-of-thumb:
gas-fired plants emit approx. 2 plants

Uncertainty on the supply side: growth in unconventional gas in Europe ?

times less

Indigenous gas production of European countries (UK, Netherlands) will continue to decline

Shale gas in the US has been a game changer for the demand-supply balance triggering a drastic reduction in LNG imports and the emergence of LNG export projects
Europe has more limited shale gas reserves, which are also likely to be more difficult to extract and expensive to produce. Initial exploration results in Poland have been disappointing. Other European countries (France, Bulgaria) decided to implement a moratorium on the application of hydraulic fracturing Europe will indeed have to fulfill its supply needs by increasing its imports, which will be in competition with growing consumption of emerging markets. Furthermore, the access to reliable gas sourcing emphasizes the importance to develop new pipeline and LNG regasification infrastructures

CO2 than coal-fired

Importance for energy companies to have access to gas infrastructures


142

EDF main businesses

Gas

European gas sector

EDF strategy

Key highlights on EDF gas business

EDFs gas strategy along the gas value chain


1
Exploration / Production

Storage

Transport / Distribution

Trading

Supply

Sign partnerships with oil and gas companies built mainly on Edisons expertise

Control the cost of flexibility Develop importation infrastructures (LNG and Examples: pipelines) to have direct Hill Top Farm storage access to gas sources expansion (in the UK) avoiding dependency, and Italian storage expansion anticipate future needs and projects Examples: (San Potito Cotignola, South Stream project Palazzo Moroni) Dunkirk LNG Etzel storage (in Germany)

Looking for arbitrage. Help subsidiaries to optimize their supply strategies

Dual offer (electricity and gas) to our domestic customers In 2012, 246 TWh of gas sold to end-users

Offer

a dual offer electricity / gas to final customers Supply EDFs gas-fired power plants Benefit from arbitrage opportunities
143

EDF main businesses

Gas

European gas sector

EDF strategy

Key highlights on EDF gas business

Natural gas end-market

2012 Group sales to end customers: ~246 TWh(1)

France: in 2012, EDF marketed 20.9 TWh, giving a market share of 4.3% on over 880,000 sites. At the end of 2012, EDF supplied gas to about 780,000 residential customers In 2012, EDFs gas sales business in France was strengthened through the acquisition of Enerest, the main distributor of natural gas in Strasbourg and the Bas-Rhin region, purchased in April 2012 by lectricit de Strasbourg, a wholly owned subsidiary of EDF. Enerest totaled more than 100,000 customers and supplied 5.2TWh of gas

Italy: 584,000 sites and ~178 TWh, or 21% market share United Kingdom: ~2 millions customers and 31.1 TWh Belgium: ~558,000 customers and 17.2 TWh, or around 20% market share

(1) Sales of the EDF companies, EDF Energy, Edison, EDF Luminus, Estag (Austria) at 100%, i.e., not corrected for interest percentage (including non-controlling interests). The gas business of EDF Trading is not taken into account in this figure.

144

EDF main businesses

Gas

European gas sector

EDF strategy

Key highlights on EDF gas business

Dunkirk terminal

Foundation stone laid on 5 October 2012 The Dunkirk methane terminal, in operation at end-2015, will be made up of the following facilities:

A dock for around 120 methane tankers a year

A liquefied natural gas (LNG) unloading system


Three LNG storage tanks holding 190,000 cm3 each A regasification unit (from -160C to 0C) A tunnel feeding cooling water from the Gravelines nuclear plant will be used to reheat the LNG A pipeline to the gas transport network in France and Belgium Dunkirk Port Authority (Grand Port Maritime de Dunkerque) in charge of the port infrastructure consisting of a dock, unloading platform and a platform for the industrial infrastructure covering around 50 hectares partly reclaimed from the sea EDF, via Dunkerque LNG (65% EDF, 25% Fluxys, 10% Total), in charge of the industrial infrastructure for unloading, storage and regasification of LNG (totalling 1bn2010) GRTgaz and Fluxys Belgium in charge of the connection to the gas transport network

Three project managers will be involved in the project:

Overall terminal capacity will be 13 bcm / year, representing 20% of France LNG import capacities. EDF will be one of the main users of this terminal
145

FACTS & FIGURES

2012

EDF Group corporate responsibility approach and process

The EDF Group

EDF strategy

EDF main businesses

Corporate responsibility

Financials

Market data

Appendices

EDF Group corporate responsibility approach and process


A strong undertaking for the Group
148 149 150 156 157

Group strategy implementation


Commitments associated with a strong monitoring

Monitoring and certifications Extra-financial rating: a constant source of improvement for the Group

147

Corporate Responsibility

A strong undertaking

Strategy implementation

Commitments

Monitoring and certification

Extra financial rating

A strong undertaking for the Group

Commitments associated with objectives developed from works carried out with all Groups divisions and subsidiaries Approval by EDF Executive Committee Project submitted in Ethics Committee of EDF Board of Directors Method presented and discussed with the EDF Group SD Panel(1) bringing together qualified personalities and experts from the civil society Presentation during EDF Shareholders Annual Meeting on 30 May 2013
(1) Sustainable Development panel: it provides advice and a critical assessment of the Groups commitments to sustainable dev elopment and their implementation.

148

Corporate Responsibility

A strong undertaking

Strategy implementation

Commitments

Monitoring and certification

Extra financial rating

Group strategy implementation


Strengthening Groups competitive advantage Developing industrial opportunities A common core of Groups policies (Sustainable Development, human resources, purchasing ...) A managerial mobilisation factor and a shared culture within an international Group

149

Corporate Responsibility

A strong undertaking

Strategy implementation

Commitments

Monitoring and certification

Extra financial rating

Commitments covering the sustainable development key issues of the Group


Three dimensions

Responsible industrial firm

Responsible employer

Responsible partner

150

Corporate Responsibility

A strong undertaking

Strategy implementation

Commitments

Monitoring and certification

Extra financial rating

A responsible industrial firm


Maintain the highest levels of security at EDF facilities
Meet the international FTSE4Good(1) criteria for nuclear safety

Remain the leading main energy provider in terms of the development of low-carbon energies
Upholding of direct CO2 emissions (g/kWh) within the 150 g/kWh limit(3)
108.9

2012 result March: inclusion into FTSE4Good index


2010

99.6

117.0

2011

2012

(1) Recognized worldwide, the FTSE4Good Index Series was created by FTSE and aims to promote investments in companies that respect ambitious sustainable development objectives

(3) The European carbon factor of the main electricity producers was 338 g CO 2/kWh in 2011 (Study by PricewaterhouseCoopers in November 2012)

Invest in renewable energies and increase their competitiveness


Publication of change in capacity (in MWe) from renewable energies at constant scope
21,933 21,456 21,417 2010

Significantly contribute to improving energy efficiency within households


Publication of change in number of households supported by Group companies in terms of energy efficiency(4)
303,300 248,900 168,000 212,000 2011 2012

2011
2012 2,705 3,231 4,345

N.C. 353 428


Wind Eolien
(2) Including Biomass

605 314 266 Hydro Hydraulique


(2) Other Autre ENR (2) renewables

1,500 EDF EDF SA (hors SEI)

1,800 EDF Energy

Solar Solaire

Electricit de Strasbourg

(4) Subsidiaries included in the consolidated scope and selling energy to residential customers

151

Corporate Responsibility

A strong undertaking

Strategy implementation

Commitments

Monitoring and certification

Extra financial rating

A responsible employer
Significantly reduce the number of accidents among employees and our subcontractors
Dividing by 2 in 5 years accident frequency experienced by Group employees resulting in sick leave
3.9 3.8 76%

Maintain performance and professional excellence of the teams through training and supporting diversity
Over 75% of Group employees receive, each year, at least one training
82%

Target: 1.9

2011

2012

30% feminisation rate in the management pool by 2015

2011

2012

2017

2012 result: 24.1%

No tolerance for breach of human rights, fraud and corruption, for all Group companies and their suppliers
13 companies that have included in 2015 an ethics/SD clause in their longterm purchasing contracts(1) 13 companies awarded the United Nations Global Compact Advanced Level

2012 result 2012 result: 3 companies (EDF, EDF Energy, EDF Luminus) 1 company was awarded the United Nations Global Compact Advanced Level since 2011: EDF 3 Group companies have signed the Global Compact (EDF, ERDF, Edison)
152

(1) Excluding energy contracts on the spot market

Corporate Responsibility

A strong undertaking

Strategy implementation

Commitments

Monitoring and certification

Extra financial rating

A responsible partner
Promote transparency and dialogue on sensitive issues
8 companies having set up a formal space for dialogue with stakeholders by 2015

Contribute to regional development through employment


Publication of the number of direct jobs (Group headcount) and indirect jobs (resulting from purchasing orders with suppliers and service providers) generated by EDF business activities In 2012 159,740

2012 result: 3 companies EDF: Sustainable Development Committee France EDF Energy: Stakeholder Advisory Panel Edison: Social Committee Since 2005, EDF has set up a panel of stakeholders at Group level: the Sustainable Development Panel

134,500

(1) Consolidated scope (2) EDF + ERDF

Emplois Directdirects jobs(1) (1)

emplois indirects Indirect jobs(2) (2)

Actively fight energy poverty and promote access to electricity


Publication of the number of actions to support our customers in need carried out by Group companies that supply energy
625,000
516,900

Preserve water resources in all our activities


Publication, starting in 2015, of the water footprint at Group level

2011 2012

Publication, starting in 2015, of the water footprint at Group level


190,000
132,000 9,000

9,000

2,000 2,000

EDFSA EDF

EDF Energy

EDF Luminus

DEMASZ

153

Water footprint: an example of Groups medium-term commitment


Corporate Responsibility

A strong undertaking

Strategy implementation

Commitments

Monitoring and certification

Extra financial rating

Water supply, a worldwide challenge, a strong interdependence between power generation and the other water users at local level, a multiple footprint
Hydro generation Cooling water for thermal generating facilities (classic and nuclear) and water needs for industrial uses Water users & stakeholders (minimum flow requirement - regulatory requirement-, fish-ways or fish ladders, irrigation, drinking water, river traffic, levels required for tourism, fishing and leisure, )

Water risk management within the EDF Group: today EDF manages 75% of stored surface water in France

Water policy, with the creation of a Water Coordinator (management of the water resource at national level and for the all EDF generation fleet) and a Water strategic committee, along with administrative authorities EDF Groups ISO 14001 certification: each management level conducts analyses of environmental impacts, including on water

Group's commitment at national and international level


EDF contributes to research and action programs on water, liaising with the Water Agencies and Water Basin Authorities, at the Mediterranean Water Institute

Implementation of research programs on hydro dams behavior in tropical areas Participation in the WBCSD particularly in the topic of implementation of a water risk assessment tool for energy operators Participation in the World Energy Council (Water for Energy) and in the World Water Council (EDF commitments taken at the 6th World Water Forum)
154

Corporate Responsibility

A strong undertaking

Strategy implementation

Commitments

Monitoring and certification

Extra financial rating

Water footprint: an example of Groups medium-term commitment


EDFs three commitments to the 6th World Water Forum

1.

Invest in all the necessary resources to develop methods and tools to evaluate the water footprint of electricity production activities Manage the water footprint of electricity production activities Create value locally and take into account the objective of the water footprint minimisation, from the design phase of power plants
155

2. 3.

Corporate Responsibility

A strong undertaking

Strategy implementation

Commitments

Monitoring and certification

Extra financial rating

Strong monitoring accompanied by Statutory Auditors verification


EDF publishes all of its environmental and social indicators on the day of its annual results publication Since 2005, The Group has begun a voluntary process to have the quality of these non-financial indicators verified by Statutory Auditors

Indicators selected according to their relevance to the challenges facing the Group and its major issues

A significant proportion of published indicators is verified by the Statutory Auditors

42% of the environmental indicators


69% of the Groups social indicators Only 23% of the companies of the CAC 40 and the SBF 120 have this level of verification

Mix assurance without reservation(1): reasonable or moderate depending on indicators

An important covering rate of the Statutory auditors work important among the highest of the CAC 40 and SBF 120
Covering work Reasonable assurance Moderate assurance CO2 Workforce Environment Social 2012 50% 63% 42% 53%

(1) 30% of the companies of the CAC 40 under mix assurance have been submitted at one or several reservations

156

Corporate Responsibility

A strong undertaking

Strategy implementation

Commitments

Monitoring and certification

Extra financial rating

Extra-financial rating: EDF Groups integration inside the FTSE4Good index in 2012
Extra-financial rating: a constant source of improvement for the Group acknowledgement and promotion of the quality of the work and the high level of industrial management of the Group the opportunity to improve the Group's actions thanks to external assessment
EDF joins the FTSE4Good Index Index FTSE4Good integration in March 2012 and permanence in 2013: The EDF Group is now one of five nuclear operators globally meeting the stringent criteria developed and overseen by the FTSE4Good Policy Committee EDF has improved its rating versus 2011 on both transparency and performance
2011 Transparency Performance 62 D 2012 87 B

EDF is listed in the ASPI Eurozone index since 2005 and is part of 2 of the 3 new indices created by Vigeo in 2012 9th of the Electricity & Gas Utilities sector in 2012

2011 EDF result Electricity sector average 59% 58%

2012 66% 61%


157

FACTS & FIGURES

2012
Financials

The EDF Group

EDF strategy

EDF main businesses

Corporate responsability

Financials

Market data

Appendices

Financials
Historical financials
Since 2010, streamlining of the Group
Focus on Edison
172 180 188 195 160 166

Debt profile of the EDF Group Focus on nuclear provisions CSPE

159

Financials

Historical financials

Streamlining of the Group

Debt profile of the Group

Focus on nuclear provisions

CSPE

Historical financials (1/3)


EBITDA evolution from 2007
In millions of euros 15,210 International & Other activities 14,240 15,929 14,156 14,939 16,084

Net income excluding non-recurring items


In millions of euros

4,677
34% 37% 41% 39% 38% 38%

4,392

4,216

3,558

3,105

3,607

France

66%

63%

59%

61%

62%

62%

2007

2008

2009

2010 (1) 2011

2012

2007

2008

2009

2010

(1)

2011

2012

Buy-out of British Energy

Sale of EnBW and UK Networks Deconsolidation of RTE

2009

2010

2011

Buy-out of EDF EN

2012

Buy-out of Edison

(1) EBITDA adjusted, excluding EnBW, the British networks and the Eggborough plant in the UK, and including RTE under the equity method NB: the data presented are pro forma data from one year to another but are not retreated consistently throughout all years

160

Financials

Historical financials

Streamlining of the Group

Debt profile of the Group

Focus on nuclear provisions

CSPE

Historical financials (2/3)


CAPEX(1) evolution from 2007
In millions of euros

Net debt and net debt / EBITDA from 2007


In millions of euros 42,496

7,490

9,703

11,777

10,274 11,134

13,386

34,389 33,285

39,175

International & Other activities

39%

47%

39%

35%

34%

38% 16,269

24,476

2.5

2.2 (2)

2.2

2.4

1.7 France 61% 53% 61% 65% 66% 62% 1.1

2007

2008

2009

2010

(2)

2011

2012

(adjusted)

2007

2008

2009

2010

2011

2012

(3)

(1) Pro forma gross Capex (2) EBITDA Adjusted, excluding EnBW, the British distribution networks and the Eggborough plant in the UK, and including RTE under the equity method (3) Pro-forma after allocation of the CSPE deficit to dedicated assets on 13 February 2013 and subtraction of 2.4bn from dedicated assets portfolio, enabling 100% coverage of EDF nuclear liabilities that are eligible for dedicated assets

161

Financials

Historical financials

Streamlining of the Group

Debt profile of the Group

Focus on nuclear provisions

CSPE

Historical financials (3/3)


Dividend payout ratio Dividend per share
In per share

0.68

Final dividend

50%

54%

54%

54%

60%

55%

45%

50%

54%

54%

56%

1.28

1.28

1.15

1.15

1.15
0.57 Interim dividend

2007

2008

2009

2010

2011

2012

2007

2008

2009

2010

2011

2012

162

Financials

Historical financials

Streamlining of the Group

Debt profile of the Group

Focus on nuclear provisions

CSPE

2012 simplified income statements


In millions of euros

2011(1) 65,307 (30,195) (9,931) (10,802) (3,101) 3,661 14,939 (116) (6,506) 135 8,452 (3,780) 4,672 3,148 3,607

2012 72,729 (37,098) (10,087) (11,624) (3,287) 5,451 16,084 (69) (7,013) (757) 8,245 (3,362) 4,883 3,316 4,216

Sales Fuel and energy purchases Other external expenses Personnel expenses Taxes other than income taxes Other operating income and expenses EBITDA Net changes in fair value on Energy & Commodity derivatives, excluding trading activities Net depreciation and amortization & increases in provisions for renewal (Impairment) / reversals EBIT Financial result Income before taxes of consolidated companies Group Net income EDF current Net income(2)

(1) Data restated for the impact of the IAS 19 option (SoRIE method) (2) Excluding non-recurring items & IAS 39 volatility

163

Financials

Historical financials

Streamlining of the Group

Debt profile of the Group

Focus on nuclear provisions

CSPE

EDF Group simplified balance sheets


In millions of euros

31/12/2011(1) 128,318 11,648 34,489 52,287 16,184 684

31/12/2012 140,279 10,412 36,710

In millions of euros

31/12/2011(1) 28,483 4,189 41,769 58,018 49,469 49,897 137 231,962

31/12/2012 25,858 4,854 42,551 65,582 59,135 52,089 49 250,118

Fixed assets o/w Goodwill Inventories and trade receivables Other assets Cash and equivalents and other liquid assets(2) Assets held for sale
(excluding cash and liquid assets)

Shareholders equity (Group Share) Net income attributable to non-controlling interests Specific concession liabilities

55,328 17,560 241

Provisions Financial liabilities(3) Other liabilities Liabilities linked to assets held for sale
(excluding financial liabilities)

Total Assets

231,962

250,118

Total Liabilities

(1) Data restated for the impact of the IAS 19 option (SoRIE method) (2) Including companies held for sale and loan to RTE and companies in joint-venture (3) Including hedging instruments and financial liabilities related to companies held for sale

164

Financials

Historical financials

Streamlining of the Group

Debt profile of the Group

Focus on nuclear provisions

CSPE

Change in cash flow


In millions of euros EBITDA Non-cash items and change in accrued trading income Net financial expenses disbursed Income tax paid Other items o/w dividends received from associates Operating cash flow WCR(3) o/w CSPE Net investments(4) 2011(1) 14,939 2012 16,084 % 7.7%

4.6%(2)

(2,040) (1,623)
(1,331) 336 10,281 (1,014) (1,009) (10,564)

(715) (1,634)
(1,586) 165 12,314 (2,304) (1,426) (11,808) 19.8%

Cash Flow

(1,297)

(1,798)

n/a

(1) Data restated for the impact of the IAS 19 option (SoRIE method) (2) Organic growth at constant scope and exchange rates (3) Excluding EDF EN subsidies receivables (4) Net investment excluding Linky and strategic operations

165

Financials

Historical financials

Streamlining of the Group

Debt profile of the Group

Focus on nuclear provisions

CSPE

Substantial transformation of the Group over last three years


Initial situation
Germany

Current situation
Disposal of EDFs stake in EnBW Debt reduction: -7.3bn

Joint control of EnBW with 46.07%

control dans of Nuclear New Build Joint Co-contrle le nouveau nuclaire


with Constellation: / 50% avec Constellation 50% (50%/50%) CENG 49.99% 49,99% in dans CENG

United States Etats-Unis

100% control of Unistar, sale of Exelon shares Risk reduction: put option terminated Preservation of Groups interest in CENG
OPAES(1): 100% control of EDF Energies Nouvelles Successful industrial integration: success of the tender in
French off-shore wind farms, on 3 sites out of 4

Renewable energies Renouvelable

EDF Energies Nouvelles 50% 50% in dans EDF Energies Nouvelles

Limited impact on Group net financial debt/EBITDA: 0.1x


Italy

Joint control of Edison with 48.96%


(1) OPAES: simplified public offer in cash or shares

Control of Edison: 97.4% of share capital at 31/12/2012


166

Financials

Historical financials

Streamlining of the Group

Debt profile of the Group

Focus on nuclear provisions

CSPE

Net investments(1) up 12%


In millions of euros

+876

+88
Other

11,808

11,808

10,564
International & Other activities

+280
United Kingdom France

31% 70% 41%


GroupUnregulated

31%

Unregulated France

40%

Regulated France (o/w regulated French islands activities)

29%

28%

30%

GroupRegulated

2011

2012

2012

(1) Net investment excluding Linky and strategic operations

167

Financials

Historical financials

Streamlining of the Group

Debt profile of the Group

Focus on nuclear provisions

CSPE

Group synergies and transformation program

Gains achieved in 2011 and 2012 secure 63% of a total target of roughly 2.5bn

Around 705 million in gains made in 2011 Around 878 million in gains in 2012 divided as follows:

Breakdown by Group business Support functions 17%

Breakdown by category Purchase-like gains(1)


(Opex & Capex)

Generation 40%

48%

Distribution 28%

878m

878m

Operating Excellence(1) 42%

Supply & Optimization 15%

Synergies(1) 10%
(1) Gains coming from Operational Excellence and Synergies recorded in Purchase Gains

168

Financials

Historical financials

Streamlining of the Group

Debt profile of the Group

Focus on nuclear provisions

CSPE

2013 financial objectives


EBITDA growth excluding Edison(1) Net financial debt / EBITDA Payout ratio of net income excluding non-recurring items

0% 3% 2x 2.5x 55% 65%

Launch of Spark: 1bn savings plan

2013 operational objectives


Net investments(2) Nuclear output in France


(1) Organic growth at constant scope and exchange rates (2) Net investments excluding Linky and strategic operations

12bn 410 415 TWh


169

Financials

Historical financials

Streamlining of the Group

Debt profile of the Group

Focus on nuclear provisions

CSPE

Launch of Spark: 1bn in savings as early as 2013

A savings plan on top of prior initiatives launched under the Groups Synergies and Transformation plan A shared goal: continuously striving to improve Group performance Spark 2013: -5% on all Group purchases

Opex and Capex Joint initiatives on prices, specifications and volumes

Savings plan of 1bn starting in 2013

170

Financials

Historical financials

Streamlining of the Group

Debt profile of the Group

Focus on nuclear provisions

CSPE

Edison: results highly dependent on timetable for renegotiating gas contracts


In billions of euros

At least 1.7bn
EBITDA(1) Impact of gas contract renegotiations

0.6 1.1 0.5(3) 2012(2)


(1) Edison fully-consolidated (2) Before consolidation restatements to EDF Group consolidation level (3) Including the positive outcome of the arbitration process with Sonatrach on 24/04/2013

2013

2014
171

Financials

Historical financials

Streamlining of the Group

Focus on Edison

Debt profile of the Group

Focus on nuclear provisions

CSPE

Edison takeover
As of 31/12/2012, EDF held 97.4% of Edison share capital and 99.48% of Edison ordinary shares

On 24 May 2012, EDF took exclusive control of Edison Spa for 784m(1)

Acquisition of 50% of TdE (0.89 euro par share) Ownership of 80.64% of Edison ordinary shares

July 2012: mandatory tender offer on the remaining ordinary shares (i.e. 19.3%) at 0.89/share Possibility to convert saving shares into ordinary shares

Since 6 September 2012, following the mandatory tender offer, EDF has held 99.48% of Edisons ordinary shares
As a result of the mandatory tender offer, the Italian stock exchange decided to delist Edisons ordinary shares with effect from 11 September 2012

(1) At the same time, Delmi acquired Edisons 50% stake in Edipower for 684 million

172

Financials

Historical financials

Streamlining of the Group

Focus on Edison

Debt profile of the Group

Focus on nuclear provisions

CSPE

Edison: historical EBITDA


In millions of euros

1,471(1)

1,369(1) 1,103(2) 890(2)

1,086 1,130 704 583

Hydrocarbons Electricity Corporate

488 (88)

630 338 (103) 292 (99) (106)

2009

2010

2011

2012

(1) Edipower consolidated line by line (2) Edipower recorded among discontinued operations

173

Financials

Historical financials

Streamlining of the Group

Focus on Edison

Debt profile of the Group

Focus on nuclear provisions

CSPE

Edison: key figures of the electricity segment


Capacity evolution (GW) 3rd Italian electricity operator
2012 key figures
Market share (in terms of production(1)) 7.9 % 7.7 GW 22.5 TWh o/w Thermoelectric 17.7 TWh

11.5
0.5 1.7

7.7
0.5 1.4
Renewables Hydro Thermoelectric 5.8

Total installed capacity (including 0.4GW in Greece) Net power generation in Italy (excluding Edipower)

9.3

o/w Hydro
o/w Renewables Net power generation abroad

3.9 TWh
0.9 TWh 1.9 TWh 870,000

2011

2012

Sites served

Following the sale of Edipower, 2012 Edison installed capacity decreased by 3.8 GW, from 11.5 to 7.7 GW. In 2012, the Group produced 24.4 TWh of electricity

In 2012, Edison electricity generation in Italy represented about 8% of the total national generation

(1) Calculated as Edison net generation of electric power in Italy over total Italian net generation (284.8 TWh)

174

Financials

Historical financials

Streamlining of the Group

Focus on Edison

Debt profile of the Group

Focus on nuclear provisions

CSPE

Edison: focus on renewables


~ 16% of Edison electricity EBITDA is represented by renewables

Edison(1) Group net installed capacity


Piemonte Photovoltaic 4 MW Lombardia Photovoltaic 2 MW Emilia Romagna Wind 3 MW Summary Wind 471 MW Photovoltaic 13 MW Biomass 5 MW Veneto Biomass 5 MW Lazio Photovoltaic 2 MW Abruzzo

Edison is the 3rd Italian operator in the wind sector with 471 MW of installed capacity in 2012 Wind installed capacity in 2012 (MW) and main competitors in Italy
Market share

Toscana
Wind

Key figures of Edison Group(1) renewable sector


As of 31/12/2012

2 MW

1,062(2)
716 471 386 343 328 292

13%

Wind
116 MW Molise Wind

9%
6% 5% 4% 4% 3%

~ 490 MW of installed capacity


Campania Wind 98 MW

50 MW Photovoltaic 1 MW Puglia

0.9 TWh of renewable production


Calabria Wind 76 MW Photovoltaic 3 MW 30 MW Photovoltaic 1 MW Sicily Wind

Wind 84 MW

Basilicata Wind 12 MW

Italian wind capacity as of 31/12/2012 = ~8,000 MW

(1)Edison S.p.A. and Edison Energie Speciali (100%-owned by Edison S.p.A.), excluding hydro plants (2) As of 31/03/2013 including the acquisition of GDF wind plants Source: companies websites

175

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Focus on Edison

Debt profile of the Group

Focus on nuclear provisions

CSPE

Edison: hydroelectric concession renewal

Law No. 134/2012 regulates the timing and criteria for hydroelectric concessions renewal:

Award for consideration of the concession for a period ranging between 20 and 30 years, based on the size of the investments deemed necessary

Public call for tender 5 years before the expiry of the concession. For concessions that have already expired and those expiring on or before 31 December 2017, the new concession will begin starting on 1 January 2016 and, under any circumstances, no later than 31 December 2017

The outgoing concession holder shall receive a consideration for the transfer of the business operations

The Ministry of Economic Development (MSE) is working on the implementation decree on tendering criteria and
procedures for the renewal of concessions

Edison is currently participating to the consultation process with MSE and getting ready to participate to the tender

process
A significant amount of concessions, in terms of MW, will expire in 2015 and 2017
176

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Focus on Edison

Debt profile of the Group

Focus on nuclear provisions

CSPE

Edison: key figures of the hydrocarbon segment


Oil and gas reserves 50.0 bcm eq.(1) 2nd Italian gas operator
2012 key figures
Market share(2) Total number of concessions (o/w 58 in Italy) Number of storage concessions in Italy Gas production in Italy Gas production abroad 21.3% 95 3 0.6 bcm 1.9 bcm

Oil production in Italy


Oil production abroad Sites served

1,809 Kbbl
1,737 Kbbl 584,000

Development of own production (bcm eq.)


Reserves at 31/12/2012 (50.0 bcm) Exploration permits and concessions

2.8
0.2

+10%

3.1
o/w 1.8 from Abu Qir
0.3 1.9 0.3 0.6

Following Edisons takeover, EDF Group benefits from Edisons competences in the hydrocarbon sector. Over the years, Edison has developed across the value chain from E&P to the end-customers supply
(1) P1 + 50% P2 (2) Calculated as Edisons gas sales in Italy over total Italian demand (74.2 bcm)

1.7

0.4 0.5

2011
Oil production abroad Oil production in Italy

2012
Gas production abroad Gas production in Italy

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CSPE

Edison: hydrocarbon activities

E&P

Strong position, mainly as an operator, in Italy, Egypt and Norway


Hydrocarbon reserves at the end of 2012: ~50 bcm Hydrocarbon production in 2012: 3.1 bcm

E&P engineering track record with operator experience in expansion zones Significant growth potential through exploration in core zones and to a lesser extent in new zones

GAS STORAGE

3 gas storage sites


Cellino: 0.12 bcm of working gas Collalto: 0.8 bcm of working gas San Potito-Cotignola: 0.89 bcm of working gas

TERMINAL LNG

1 LNG terminal: Edison owns a 7.3% share in Adriatic LNG Terminal, which operates the Rovigo offshore regasification terminal (8 bcm/year). Edison owns 80%, i.e. 6.4 bcm/year, of the terminals capacity, fueled with Qatari gas. The other shareholders are ExxonMobil Italiana Gas (70.7%) and Qatar Terminal Company Limited (22%)

178

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Debt profile of the Group

Focus on nuclear provisions

CSPE

Edison: gas contracts


Gas contracts prices revision (Qatar, Libya, Russia and Algeria)

Did you know?


The arbitration is a process of price revision
that can be activated when the mandatory commercial discussions last too long or do not come to a conclusion. The resorting to a third party (the arbitration Tribunal if needed) shows the difficulties between the parties to reach an agreement, but does not exclude to simultaneously continue the commercial discussion, in particular if the contracts schedule is tight before the beginning of the arbitration.

Total volume of long term gas contracts 14.4 bcm/year (annual contracted quantities)
Russian contract renegotiated in 2011 Qatar and Libya contracts renegotiated in 2012 (+680m on EBITDA 2012) Positive arbitration on Sonatrach Algerian gas contract completed on 24 April 2013 A new round of prices revision started in end-2012 to restore the profitability of these contracts affected by lower gas prices

The risk linked to the arbitration process (being the decision linked to a third party) is itself a catalyst for the parties to find a mutual agreement.

Renegotiations status Contract Qatar Volume (bcm/year) 6.4 Expiration 2034 Renegotiations / arbitrations 2012 680 347 62 n/c
179

EBITDA impact in m

For prior years in m

Libya
Russia Algeria

4.0
2.0 2.0

2026
2019 2019

2012
2011 Arbitration on first round completed on 24 April 2013 200 300

Financials

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Debt profile of the Group

Focus on nuclear provisions

CSPE

Net debt evolution reflecting the full consolidation of Edison


In billions of euros

-1.7 +3.3 +1.8


Cash Flow after net investments

+0.1
Other

+2.4
Dividends paid in cash

Edison

Dedicated assets(1)

39.2

33.3

December 2011

Pro forma December 2012(1)


180

(1) Pro-forma after allocation of the CSPE deficit to dedicated assets on 13 February 2013 and subtraction of 2.4bn from dedicated assets portfolio, enabling 100% coverage of the EDF nuclear liabilities that are eligible for dedicated assets

Financials

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Debt profile of the Group

Focus on nuclear provisions

CSPE

Net financial debt as of 31 December 2012


In billions of euros

31/12/2010

31/12/2011

31/12/2012 (1)

Net financial debt Net financial debt / EBITDA


Debt

34.4
2.2x
47.8 35.5
8.9 4.4 %

33.3
2.2x
50.0 37.5 9.2 4.3 %

39.2
2.4x
59.9 43.9
8.5 3.7 %

Gross financial debt o/w bonds Average maturity gross debt (in years) Average coupon
Liquidity

Gross liquidity Net liquidity

25.2 17.9

24.9 17.1

27.2 13.8

(1) Pro-forma after allocation of the CSPE deficit to dedicated assets on 13 February 2013 and subtraction of 2.4bn from dedicated assets portfolio, enabling 100% coverage of the EDF nuclear liabilities that are eligible for dedicated assets

181

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CSPE

A strong liquidity position

Liquidity position excluding credit lines of 16.2bn, o/w


Breakdown of the liquidity position as of 31/12/2012

5.9bn of cash & cash equivalents 10.3bn of liquid assets

Cash & cash equivalents 36%

Pro forma(1) liquidity position of 18.6bn


Available syndicated and bilateral credit lines of 8.6bn

This potential liquidity is without any financial covenant

Liquid assets 64%

(1) Pro-forma after allocation of the CSPE deficit to dedicated assets on 13 February 2013 and subtraction of 2.4bn from dedicated assets portfolio, enabling 100% coverage of the EDF nuclear liabilities that are eligible for dedicated assets

182

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CSPE

Group financial debt after swaps as of 31 December 2012


Breakdown by type of rate Breakdown by currency

Floating rate 21%

Other(1) 6% Fixed rate 79%


USD 9%

GBP 23%
Net financial debt(2): 39.2bn Average coupon: 3.7 % Average maturity: 8.5 years

EUR 62%

(1) Mainly HUF, CHF, PLN and BRL (2) Pro-forma after allocation of the CSPE deficit to dedicated assets on 13 February 2013 and subtraction of 2.4bn from dedicated assets portfolio, enabling 100% coverage of the EDF nuclear liabilities that are eligible for dedicated assets

183

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Focus on nuclear provisions

CSPE

Significant balance sheet optimization achieved over the past 3 years

Longer debt maturity at a lower cost

Lower average coupon: from 4.4% end of 2009 to 3.8% as of 30 September 2012 Longer average maturity: from 7.4 years end of 2009 to 8.6 years as of 30 September 2012

RTE included in the dedicated assets improving nuclear liabilities coverage without earnings dilution Portfolio rationalization while keeping a highly regulated profile

184

Financials

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CSPE

Inaugural hybrid bond issuance consistent with EDF investment cycle

January 2013: inaugural hybrid bond issuance in 3 currencies (, , $) that allowed the Group to strengthen its capital structure over the investment cycle in a flexible and cost efficient way

Diversification of the Group funding sources on the capital markets Possibility for the Group to raise the equivalent of approximately 6.2 billion in total across all three currencies
Amount (in bn)
3 1.25

Currency
Dollar Euro

Coupon
5.25 % 4.25 %

First call date (years)


10(1) 7(2)

1.25
1.25

Euro
Sterling

5.375 %
6.0 %

12(2)
13(2)

(1) Separate offering under Rule 144A / Regulation S (2) Under its Regulation S EMTN program

185

Financials

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Focus on nuclear provisions

CSPE

Breakdown of debt by currency(1)


In millions of euros, before swaps
6 000 6,000

Of which (in m)
5,000 5 000

2013 1,989 98 48 1,361

2014 4,297 2 980 25

2015 1,918 2 25

4 000 4,000

$ CHF

3,000 3 000

2,000 2 000

1,000 1 000

Other Autres
(1) As of 31 December 2012

CHF

EUR

GBP

USD

JPY
186

Financials

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Focus on nuclear provisions

CSPE

Comparative debt ratings: EDF is leading its peers


Aa3 GDF Suez Vattenfall EDF
EDF GDF Suez E.ON

Ratings S&P
A+ stable A negative A- stable BBB stable BBB stable A- negative BBB+ stable BBB+ negative A- stable

Ratings Moodys
Aa3 negative A1 negative A3 negative Baa2 negative Baa1 negative A3 stable Baa1 stable n/a A2 negative

Ratings Fitch
A+ negative n/a A stable BBB+ negative BBB+ negative A- stable A- stable BBB+ negative A- stable

Moodys ratings

A1

A2 SSE

Enel Iberdrola

A3

SSE

E.ON
RWE

Baa1

RWE Iberdrola

Endesa Vattenfall

Baa2

Enel
Ratings S&P Ratings Moodys
P-1

Ratings Fitch
F1

BBB

BBB+

A-

A+

EDF short term

A-1

S&P ratings
Source: rating agencies and Bloomberg, as of 15 July 2013

187

Financials

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Focus on nuclear provisions

CSPE

Group nuclear provisions: 40.5 billion


EDF Group scope
In millions of euros

Activities over period


+ 198
Translation adjustments

+ 408
Other change

+ 1,842 (1,052) + 435 Discounting Reductions (617) 38,673 Allowances

40,504

31 December 2011

31 December 2012
188

Financials

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Focus on nuclear provisions

CSPE

Principles used in discounting provisions


Costs are estimated using year-end economic conditions and spread out over a planned timetable of disbursements

These costs are determined in constant euros (i.e. the cost as if the payment was made today)

These costs are positioned in time on the basis of a timetable set by the company

The costs are then provisioned on the basis of year-end discounted values
Cost Nominal discount rate Cost in current euros that will be paid at T (i.e., the inflated cost) Cost in constant euros that will be paid at T

31,382m

Provisioned value

Cost timetable in constant euros (gross costs in constant euros)

Time

65,873m
189

Financials

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Streamlining of the Group

Debt profile of the Group

Focus on nuclear provisions

CSPE

Discount rate for nuclear provisions in France

Lower discount rates as of 31 December 2012


Nuclear provisions: 4.8%

The discount rate is based on the yield of a sovereign bond (French OAT) of the same duration as the liability in question, plus the average spread of a selection of companies with the same rating as the company carrying the liability 23 February 2007 executive order and 21 March 2007 ministerial order pertaining to the funding of nuclear liabilities states that the discounting rate used by EDF may not exceed a ceiling that is equal to the arithmetic average over the past 48 months of the 30-year constant maturity rate (TEC 30), on the closing date of the financial year under review, + 1 point

Underlying hypothesis of long-term inflation: 1.9%

190

Financials

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Streamlining of the Group

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Focus on nuclear provisions

CSPE

EDF dedicated assets performance in 2012


Cover decommissioning costs of nuclear plants and storage and long-term management of radioactive waste Date of full cover of the costs by the portfolio set by law in June 2016 Amid the area of euro crisis, prudent management has been maintained:

Portfolio breakdown as of 31 December 2012


In millions of euros

50% of RTE shares

2,393
Cash

Shares and equity funds

953

7,343

Underweight on European peripheral debts Importance of cash and underweight on equities at the start of year Better assets diversification than the benchmark and less volatility Shares and bond funds

17,626
6,937

Performance of RTE shares (+6.7%)

Performance(1) 2012: 10.4%

(1) Full-year performance, including RTE and before tax Excluding RTE, the portfolio performance is 11.1% and excluding cash 12.0%, compared with a benchmark of 12.6%

191

Financials

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Focus on nuclear provisions

CSPE

Regulatory framework for dedicated assets


Dedicated assets are meant to secure the costs of dismantling nuclear power plants. The portfolio of dedicated assets started to be built in 2000 and is consistent with a regulatory framework set up in 2006.

Law of 28 June 2006 (loi de programme NOME law of 7 December 2010)

A portfolio of dedicated assets was set up with a value equivalent to at least 75% of provisions in mid-2011 and a projected 100% by mid-2016 Effective mid-2016, the portfolios realisation value must be at least equal to the amount of the provisions covered In the event that it is not, the administrative authority may order corrective measures

Executive Order (dcret) of 23 February 2007

This Executive Order contains a precise list of assets that are eligible for the portfolio of dedicated assets and their maximum authorised portion, and excludes certain categories of assets It specifies the nuclear costs on which basis the amount of dedicated assets is set and establishes a regulatory ceiling on the discounting rate of liabilities, and a grace period that is based on economic conditions and markets situation and which may not exceed three years

Executive Order (dcret) of 29 December 2010

This authorises EDF to include RTE shares in its portfolio of dedicated assets

Administrative authorization on 8 February 2013 to allocate CSPE deficit to dedicated assets


192

Financials

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Focus on nuclear provisions

CSPE

Calculation base for dedicated assets


In billion of euros

20.1
Last cores(1)

20.1 17.6
RTE RTE

0.4

2.4
CSPE receivable

2.4
Provision for dismantling

4.9

12.6
Other dedicated assets

15.2
LT management of radioactive waste

12.8

Other dedicated assets

7.1 Dedicated assets at 31/12/2012 Dedicated assets at 31/12/2012 Pro forma

Provisions at 31/12/2012

The coverage rate is 88% at end-2012. After allocation of the CSPE deficit to dedicated assets on 13 February 2013, coverage rate of EDF nuclear liabilities is more than 100%, thus enabling the subtraction of 2.4bn of dedicated assets
(1) Part of the provision for the last cores on future long-term management costs for radioactive waste

193

Financials

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Debt profile of the Group

Focus on nuclear provisions

CSPE

EDF nuclear provisions in France: 31.4 billion


In millions of euros 31/12/2011 Net Allow. Disc. Other changes 31/12/2012 Provisions for back-end nuclear cycle Total Provisions for management of spent fuel Provisions for long-term management of radioactive waste 15,865 9,143 6,722 (1,006) (881) (125) 1,036 550 486 716 686 30 16,611 9,498 7,113

Provisions for nuclear dismantling and last cores Total


Provisions for dismantling power stations Provisions for last cores

13,378 11,366 2,012

406 405 1

693 592 101

294 215 79

14,771 12,578 2,193

TOTAL NUCLEAR

29,243

(600)

1,729

1,010

31,382

194

Financials

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Streamlining of the Group

Debt profile of the Group

Focus on nuclear provisions

CSPE

Scope of CSPE (contribution to electricity public

service costs in France)


The CSPE covers 3 different public service mandates: Lost revenue and additional costs associated with EDF's participation in the TPN (priority need tariff) for low-income households Number of people concerned:

In 2012, 1,083,000 households (mainland France, Corsica and overseas departments) benefited from a basic necessity tariff (TPN). A decree of 6 March 2012 introduced automatic attribution of social electricity tariffs (financed by the CSPE) 190,000 households in 2012 for the Housing Solidarity Fund (FSL)

Additional generation costs in non-interconnected regions (Corsica and the overseas departments and territories) not covered by the energy share of regulated tariffs

Electricity is sold in non-interconnected regions at the same price as mainland France despite significantly higher generation costs Originally designed for cogeneration units, they have now been extended to output volumes of electricity generated using renewable energy sources (mainly wind and solar power)
195

Purchase obligations

Financials

Historical financials

Streamlining of the Group

Debt profile of the Group

Focus on nuclear provisions

CSPE

CSPE principles and increases


CSPE (Contribution to electricity public service):

Charged to end-users via an "other services" line on their energy bill Collected by network operators and electricity suppliers Periodically amended: "Barring a decree setting the amount of the contribution due for a given year prior to 31 December of the previous year, the amount proposed by the CRE (French Energy Regulatory Commission), in accordance with the preceding paragraph, enters into force on 1 January, within the limit however of an increase of 0.003/KWh with respect to the amount applied before this date". Increase of 1 January 2012 was splitted in two: 0.0015/KWh in July 2011 and 0.0015/KWh in July 2012

13.5
/MWh

10.5 7.5 4.5 9

1 January

2010

31 July 2011

1 July 2012

1 January

2013
196

Financials

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Streamlining of the Group

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Focus on nuclear provisions

CSPE

Main CSPE components for EDF


Set up pursuant to the Law of 10 February 2000 to allow EDF to offset certain expenses related to certain public service obligations
In millions of euros

2010 1,599 1,006 2,605 61% 39% 2,244 1,312 3,556

2011 63% 37%

2012 3,155 1,532 4,687 67% 33%

Purchase obligations(1) Other(2) Total CSPE

In the French overseas departments and Corsica, the CSPE varies with energy and fuel purchases and the cost of replacing old power plants The rise in the CSPE is linked to purchase obligations, which take into account the rapid expansion of wind and PV power and the decline in wholesale electricity prices

(1) Purchases obligations include electricity generated from: hydropower (less than 12MW), biomass, wind power, PV power, cogeneration, recovery of household waste and energy recovery, with the exception of Corsica and the French overseas departments (2) Additional production costs and purchase obligations in Corsica and the overseas departments, the TPN (First Necessity Tariff) and the FSL

197

Financials

Historical financials

Streamlining of the Group

Debt profile of the Group

Focus on nuclear provisions

CSPE

Change in purchase obligations in mainland France and CSPE for EDF


Principle: The CSPE(1) offsets the difference between the cost of purchase obligations and market prices 5,199m(3)
Purchase obligations amount Additional cost of purchase obligations cost to be covered by CSPE(2)

4,028m 3,190m 2,704m 2,822m

3,155m 2,244m
CSPE

919m
CSPE

1,541m
CSPE

1,599m
CSPE

CSPE

Cost of purchase obligations net of CSPE

1,785m
2008

1,281m
2009

1,591m
2010

1,784m
2011

2,044m
2012
198

(1) CSPE also offsets generation costs and purchase obligations in Corsica and French overseas departments and first necessity tariff (TPN) (2) EDF SA excluding Island Electric Systems (3) Change in purchase obligations: + 913m of solar and +258m wind and -185m cogeneration vs. 2011

Financials

Historical financials

Streamlining of the Group

Debt profile of the Group

Focus on nuclear provisions

CSPE

French state recognition of the CSPE deficit


The French government has committed to a maximum timeframe for paying back the receivable recognized at end-2012, i.e. 4,879 million comprised of the compensation deficit (4,250 million) and past financing costs (629 million), the receivable bearing an interest of 1.7% for the future This deficit will be paid back before end-2018 The amount of the deficit will be adjusted for the definitive amount of the CSPE deficit at this date, validated by the CRE end-2013 (following the standard procedure)

The deficit will be paid back independently of the CSPEs future flows. However, the existing mechanism for calculating the CSPE remains in place and will contribute to paying back the deficit

In the event the CSPE surplus is bigger than expected, the deficit will be paid back faster than planned

199

Financials

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Streamlining of the Group

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Focus on nuclear provisions

CSPE

CSPE in the EDF financial statements at end December 2012


Income statement:

Offset of certain expenses to certain public services is booked under other operating income and expenses in EBITDA for 4,687m The compensation of carry costs for past deficit booked under financial products for +629m

Balance Sheet
Booked under working capital in the other receivables category for 997m (invoicing delays) Increases net financial debt by 5,247m The deficit recognized by the State booked under financial receivables for 4,879m (4,250m+ 629m)

Cash Flow Statement


Cash in: 3,261m Increase in Working Capital Requirements: 1,426m

200

Financials

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CSPE

Impact of CSPE on EDFs accounts


In millions of

2010

2011

2012

P&L Extra-costs / losses Impact on other operating income and expenses (2,605) 2,605 (3,556) 3,556 (4,687) 4,687

EBITDA
Pre-tax result impact

Neutral
Neutral

Neutral
Neutral

Neutral
629

Balance sheet
Working capital requirements (other creditors) Debt (CSPE on supply energy but not billed; other creditors) Financial debt 2,812 (344) 3,821 (579) 997 (747) 4,879

Cash flow
Cash in energy billed Increase in WCR 1,637 968 2,547 1,009 3,261 1,426

201

FACTS & FIGURES

2012
Market data

The EDF Group

EDF strategy

EDF main businesses

Corporate responsability

Financials

Market data

Appendices

European energy mix


In TWh
Sweden Sude United Kingdom Royaume-Uni

148 380 53 97 115 5 298 28 54 572 80 303 37 94 67 620 0% 25% 50% 75% 100%

Portugal Nuclaire Nuclear


Hydropower Hydro Renewables Renouvelables Gas Gaz
Poland Pologne

Pays bas Netherlands Luxembourg


Italy Italie Ireland Irelande Greece Grce

Ptrole Oil
Coal Charbon

France
Finland Finlande

Spain Espagne
(1) Danemark*

Autres Other

Belgium Belgique Austria Autriche Germany Allemagne

Source: Enerdata, 2010 (1) Data 2009

203

The EDF Group

EDF strategy

EDF main businesses

Corporate responsability

Financials

Market data

Appendices

Markets: electricity consumption


In TWh
525
510 495 480 465 450 2008 Source: RTE 2009 2010 2011 2012

France

United Kingdom
360 350 340 330 320 310

2008

2009

2010

2011

2012

Source: Department of Energy & Climate Change

Italy
350 340 330 320 310 2008 Source: UCTE 2009 2010 2011 2012 150 145 140 135 130 2008 Source: UCTE 2009

Poland

2010

2011

2012

204

The EDF Group

EDF strategy

EDF main businesses

Corporate responsability

Financials

Market data

Appendices

European energy market remains split into "electricity plates" - average price in 2012
Available commercial capacity MW 55.2/MWh 48.0/MWh
2,400(3) 2,400(3)

+0.2/MWh(1)

-4.0/MWh(1)

47.0/MWh
1,200(2) 1,800(2) 1,800(2) 2,800(2)

42.6/MWh

Interconnected markets but distinct

-2.4/MWh(1)
4,300(2) 2,400(2)

-8.5/MWh(1)

46.9/MWh
1,200(2) 1,200(2)

1,900(2) 3,100(2) 900(2)

-2.0/MWh(1)

Price: average spot price (base 2012) for France (Epex), Germany (Epex), the UK (EDFT), Spain (OMEL), the Netherlands (APX), Belgium (Belpex) and Italy (Ipex)

1,400(2)

47.2/MWh

75.5/MWh

+3.3/MWh(1)

-2.7/MWh(1)

(1) 2011 Average price (2) Annual Net Total Capacity calculated by RTE in December 2012 for 2013 (3) Source ENTSOE

205

The EDF Group

EDF strategy

EDF main businesses

Corporate responsability

Financials

Market data

Appendices

Interconnection capacity increase planned


In MW

Interconnection addition France Spain


Enhancement

2,000

Enhancement

Baixas Sta Llogaia: 1,200 MW (RTE REE Project INELFE) Golfe de Gascogne (RTE REE): 1,200 MW Piedmont Savoy (RTE - TERNA): 1,200 MW Eleclink (Eurotunnel - Star Capital): 1,000 MW

Before 2017 2013

2,000

France Italy

2,600

1,200 +600

France United Kingdom

3,400

1,200 +600
Enhancement

Source: RTE

IFA2 (RTE NGC): 1,000 MW Enhancement France - Belgium France - Luxembourg


206

The EDF Group

EDF strategy

EDF main businesses

Corporate responsability

Financials

Market data

Appendices

Spot prices historical (France)

Spot price fixation is linked to several factors:


Level of demand Availability of the generation fleet and management of the demand Fossil-fired prices Countrys energy mix

Relatively moderate spot prices in France in 2012 (average 7 rolling days)


In /MWh
140 120 100 80 60 40 20 0

Except during the cold snap when the prices reached more than 100/MWh
Strong decrease due to lower temperatures and lower demand

janv. Jan.

fvr. Feb.

mars Mar

avr. Apr.

mai May

juin June
Spot 2011

juil. July
Spot 2012

aot Aug.

sept. Sept.

oct. Oct.

nov. Nov.

dc. Dec.

207

The EDF Group

EDF strategy

EDF main businesses

Corporate responsability

Financials

Market data

Appendices

2013 Forward electricity prices Europe (from 2012)


In /MWh

65
Spread Fr-Ger Spread Fr-All France France Germany Allemagne
Released by the European Commission of the report about nuclear fleet safety

15,00

60 60
55 55

Cold snap: Increase of CO2 prices

12,00 12

Decrease of coal prices

Concerns about the future availability of the nuclear fleet

50 50
45 45

Decrease of CO2 then slack supply/demand balance on the Spot

9,00 9

Increase of gas prices Largest decline in Germany due to strong renewable output Increase of coal prices

6,00 6

3,00 3

40 40
Reversal of the France-Germany spread

0 0,00

35 35
Jan. 2012 Feb. 2012 Mar 2012 Apr. 2012 May 2012 June 2012 July 2012 Aug. 2012 Sept. 2012 Oct. 2012 Nov. 2012 Dec. 2012

-3 -3,00

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Forward electricity prices in France, the UK, Italy and Germany (Y+1) in 2012
In /MWh
Electricity annual base base contract France (EPEX) Electricit - contrat annuel France (EPEX) Electricity annual base base contract UK (ICE) Electricit - contrat annuel UK (ICE)
77
72 67 62 57 52 47 42

Electricity annual base base contract Germany (EPEX) Electricit - contrat annuel Allemagne (EPEX) Electricity annual base base contract Italy (IPEX) Electricit - contrat annuel Italie (IPEX)

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Forward electricity prices in France, the UK, Italy and Germany (Y+2) in 2012
In /MWh
Electricit - contrat annuel baseFrance France (Powernext) Electricity annual base contract (EPEX)
Electricity annual base contract (ICE) Electricit - contrat annuel baseUK R-U (ICE)
79 74 69 64 59 54 49 44

Electricity annual base contract (EPEX) Electricit - contrat annuel baseGermany Allemagne (EEX)
Electricity annual base contract (IPEX) Electricit - contrat annuel baseItaly Italie (EDF-T)

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Gas & oil prices


$/bl p/therm

Brent (Y+1) in 2012


128 123 118 66 113 108 103 98 60 93 88 58 70 68

NBP gas (Y+1) in 2012

64
62

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CO2 (Y+1) prices in 2012


/t
10

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Appendices

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Financial Calendar
8 July 2013

Dividend payment

30 July 2013

Half-year results 2013

7 November 2013

Sales (3rd quarter 2013)

13 February 2014

Annual results 2013

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Glossary (1/6)

ANDRA: The French law of 30 December 1991 established a public industrial and commercial body, the National Agency for the Management of Nuclear Waste (Agence nationale pour la gestion des dchets radioactifs ANDRA), responsible for the long-term management of radioactive waste. The Agency, which reports to the Ministers of Industry, Research and the Environment, established the storage centers based in the Aube region of France for the long-term management of short-life waste APE: The French Government Shareholding Agency (APE) is a national organization within the Ministry of Economy. Its mission is to act as a shareholder for the French Government in order to develop its assets and maximize the value of its stakes Architect-Assembler: For EDF, the architect-assembler has control over: the design and operation of its power plants; the organization of development projects; the schedule for completion and costs of construction; relations with the Nuclear Safety Authority; and the integration of feedback from operational experience. EDFs role as architect-assembler ensures control over its industrial policy with respect to the design, construction and operation of its fleet of power plants

ARENH: Regulated access to historical nuclear energy


ASN (Autorit de Sret Nuclaire): The French Nuclear Safety Authority (Autorit de Sret Nuclaire or ASN) controls, nuclear safety and radioprotection in France, on behalf of the French government, to protect workers, patients, the public and the environmental risks associated with the use of nuclear energy. It is notably in charge of the external control of nuclear facilities in France. The French ASN is an independent administrative authority with a staff of more than 300. The French ASN is represented at the national level by the General Agency for Nuclear Safety and Radioprotection (or DGSNR) Clean Development Mechanism (CDM): The CDM is a mechanism defined by the Kyoto Protocol based on projects to reduce emissions or capture greenhouse gases (GHS) and sustainable development plans in developing countries. This mechanism provides that any public or private entity in a country on Schedule 1 (industrialized countries) which makes investments in such projects in a county on Schedule II (developing countries) acquires carbon credits in return. These credits can then be used by those Parties to meet their emission quotas, or they can be sold on the carbon market in International Emissions Trading (IET) or the EU emissions quota trading system (EU ETS). The CDM is placed under the authority of the Conference of the Parties acting as a meeting of the parties to the Kyoto Protocol, supervised by an Executive Board, the powers of which were defined by the 2001 Marrakech agreements
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Clean Dark Spread: difference between power price and variable generation cost (mainly coal cost and CO2 cost) Combined-Cycle Gas Turbine (CCGT): The most recent technology for generating electricity in a natural gas-fired plant. A combined cycle is made up of one or more combustion turbines and a steam turbine allowing for an improved yield. The syngas is routed to the combustion turbine, which generates electricity and very hot exhaust gases (effluents). The heat from the exhaust gases is recovered by a boiler, thus producing steam. Part of the steam is then recovered by the steam turbine to generate electricity

Cogeneration: Generation technique for combined electricity and heat generation. The advantage of cogeneration is the ability to capture the heat produced by the fuel whereas in traditional electricity generation this heat is lost. This process also allows the same facility to meet the heating (hot water or steam) and electricity needs of both industrial and local authority customers. This system improves the energy efficiency of the generation process and reduces fuel use by an average of 20%
CRE (Commission de Rgulation de lEnergie): Created on 30 March 2000. The CRE, an independent body, regulates the process to open the energy market opening. It ensures that all of the generators and eligible customers have non-discriminatory access to the network. Within its jurisdiction, this body supervises and authorizes, settles any disputes and, if required, imposes sanctions Distribution Networks: Downstream of the transmission network, medium- and low-tension distribution networks serve end-users (individuals, Groups, SMEs, SMIs, etc.) Electricity supply: Can be broken down into four types of consumption: basic (or ribbon) supply is: the basic (or ribbon) supply of electricity generated and consumed throughout the year; semi-basic supply is the electricity generated and consumed over the winter period; peak supply corresponds to periods of the year when electricity generation or supply is in heavy; demand; lace supply is a complement to ribbon supply EPIC: Industrial and Commercial state-owned Company EPR (European Pressurized Reactor): The latest generation of reactors currently under construction (known as generation 3), it is the result of Franco-German cooperation, and offers advanced safety, environmental and technical performance
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ETS: Emission Trading System Fuel cycle: The nuclear fuel cycle encompasses all industrial operations in France and abroad which enable the supply of the fuel to generate energy in a reactor, then to unload and process it. The cycle can be broken down into three stages: 1) upstream: the processing of concentrates from uranium ore, the conversion, enrichment and production of fuel (which takes more than two years); 2) the core of the cycle corresponding to the use of fuel in the reactor: receipt, loading, operation and discharging (which takes three to five years); 3) downstream: pool storage, reprocessing of spent fuel in reactors of recoverable material, vitrification of highly radioactive waste, then temporary storage of the waste before storage Greenhouse emissions: Gas that retains a portion of the solar radiation in the atmosphere and for which an increase in emissions due to human activity (man-made emissions) causes an increase in the earths average temperature and plays an important role in climate change. The Kyoto Protocol and amended EC Directive 2003/87/EC of 13 October 2003 cover the six following principal greenhouse gases: carbon dioxide (CO2), methane (CH4), nitrogen protoxide (N2O), hydrofluorocarbons (HFC), perfluorated hydrocarbons (PFC) and sulfur hexafluoride (SF6). For the period from 2005-2007, carbon dioxide was the subject in Europe of measures to reduce emissions with the application of national plans for the allocation of greenhouse gas quotas. For the 2008-2012 periods, the scope of gases is expanding. In the long term, the gases listed in Appendix II of the aforementioned directive will be covered, as will any other gaseous atmospheric component, whether natural or man-made, that absorbs and reflects infrared radiation (amended directive, adopted but not published to date) Hydropower Generation: Maximum power energy that can be produced from hydraulic sources in normal conditions Interconnection: Electricity transmission infrastructure that allows for exchanges of energy between different countries, by connecting the transmission network of one country to that of a neighboring country LDC: Local Distribution Companies that provide for distribution of gas and electricity power to the end-customers on a delimited geographical area LNG (Liquefied Natural Gas): Natural gas turned into liquid form by reducing its temperature to 162C allowing for a reduction by 600 in its volume
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MEDEF: French companies association Metering: A system allowing for the recording, at a given network connection point, of the volumes of electricity transmitted or distributed (power, frequency, active and reactive energy) Midstream: All assets of the gas business, allowing for its availability, transportation and management. These might be infrastructures (gas pipelines, storage facilities, LNG terminals, etc.) or contractual (rights relating to predetermined capacity, procurement contracts, etc.). The midstream segment includes the trading and negotiating activities National Quota Allocation Plan: This plan defines the total quantity of greenhouse gas emission quotas that the French state plans to grant for the quotas exchange system for each multi-year period (NAP1 2005-2007, NAP2 2008-2012) and the allocation method used to allocate quotas to the industrial facilities in question

NOx: Nitrogen oxide


Nuclear safety: Nuclear safety includes all of the technical, organizational and human measures which are intended to prevent accident risks and to limit the effects of an accident, and which are taken at every stage of the life of a nuclear power plant (from design to operation and finally to decommissioning) Nuclear tranche: Electrical generation unit consisting of a nuclear boiler and a turbo-alternator generator. A nuclear tranche essentially consists of its reactor type and the power of its turbo-alternator generator. EDF nuclear plants include two or four tranches, and occasionally six Ofgem: Ofgem is the Office of the Gas and Electricity Markets in the UK. Its main missions consist in protecting consumers, regulating gas and electricity monopoly companies, helping to secure Britains energy supplies by promoting and regulating competitive gas and electricity markets, as well as contributing to the drive to curb climate change and other work aimed at sustainable development
218

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Glossary (5/6)

Plant availability: Fraction of power available, out of theoretical maximum energy, counting only technical non-availability. The availability coefficient (Kd) is defined as the ratio between annual actual generation capacity (or amount producible annually) and maximum theoretical generation capacity, where maximum theoretical generation capacity = installed capacity x 8,760 hr. The Kd, which counts only technical non-availability, i.e., scheduled shutdowns, unplanned outages and testing periods, characterizes a plants industrial performance. For EDFs nuclear fleet in France, the maximum theoretical generation capacity is of 553 TWh (63.1 GW X 8,760 hr) PPA: Price Purchase Agreement PWR: Pressurized Water Reactors constitute a large majority of all nuclear power plants in 2011. In a PWR, the primary coolant (water) is pumped under high pressure to the reactor core where it is heated by the energy generated by the fission of atoms. The heated water then flows to a steam generator where it transfers its thermal energy to a secondary system where steam is generated and flows to turbines which, in turn, spins an electric generator. In contrast to a boiling water reactor (BWR), pressure in the primary coolant loop prevents the water from boiling within the reactor Renewable energies: Energies for which generation does not require extinction of the initial resource. They largely derive from geothermal, water, air, fire and solar sources. They include hydro, wind, solar (the energy produced by marine waves and currents), geothermal (energy derived from the heat below the earths magma) energies, and bio-mass (energy derived from living matter, particularly wood and organic waste). They often include energy from the incineration of household or industrial waste RTE: RTE is the operator of the French electricity transmission system. A public service company, RTE operates, maintains and develops the high and very high voltage network SOx: Sulfur Oxide Storage: Storage consists in placing packages of radioactive waste in a facility, ensuring their long-term management, i.e., under safe conditions allowing for long-term risks control

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Storage center: Low or medium-level short-life radioactive waste, from nuclear plants, the Hague or Centraco facilities, are sent to ANDRAs Soulaines storage center in the Aube region, which has been operational since 1992. This center has capacity of 1,000,000 m3, and acceptance capacity of approximately 60 years. Very low-level short-life radioactive waste is sent to ANDRAs Morvilliers storage center (also in the Aube region). This center was commissioned in October 2003 and has an operating life of about 30 years Transmission networks: Network providing for the transmission of electrical power at high and very high voltages from the generating sites to the distribution networks or industrial sites directly connected to it; this includes the major interconnection transmission network (400,000 volts and 225,000 volts) and the regional distribution networks (225,000 volts, 150,000 volts, 90,000 volts and 63,000 volts) Waste: The nuclear generation of 1 MWh of electricity (equivalent to the monthly consumption of two households) produces around 11g of total waste across all categories. Short-life waste represents more than 90% of the total, but contains only 0.1% of the radioactivity of waste

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2012