- 1Q 2017 Sales - Investor Presentation · (5) At 2016 exchange rate and assumption for 2018 power prices in France on volumes not hedged as of 31.12.2016: ≥ €36/MWh (6) At 2016

- 1Q 2017 Sales

- Investor Presentation

June 2017

Q1 2017 SALES 2

Q1 2017 SALES 3

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 Group’s strategy, financial position or results. EDF

considers that these forward-looking statements and targets are based on reasonable assumptions as of the present document publication,

which can be however inaccurate and are subject to numerous risks and uncertainties. There is no assurance that expected events will occur

and that expected results will actually be achieved. 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 Group’s activities, its international scope, the climatic environment, the

volatility of raw materials prices and currency exchange rates, technological changes, and changes in the economy.

Detailed information regarding these uncertainties and potential risks are available in the reference document (Document

de référence) of EDF filed with the Autorité des marchés financiers on 6 March 2017, which is available on the AMF's website at www.amf-

france.org and on EDF’s 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.

Q1 2017 SALES 4

Sale on 31 March 2017 to Caisse des Dépôts and CNP Assurances of a 49.9%

stake in the company holding owning 100% of RTE

Valuation of RTE: €8.2bn, with a potential value complement for EDF of up to

€100m

Sale of EDF Trading’s coal and freight assets to JERA Trading, with EDF

receiving on 4 April 2017 a 33% stake in JERA Trading

Disposal on 31 January 2017 of the whole of EDF’s stake in EDF DEMASZ to

ENKSZ

DISPOSAL PLAN

KEY ACHIEVEMENTS IN PERFORMANCE PLAN

Final gross proceeds: €4,018m resulting in the issuance of 633 million new shares

Market subscription rate: 185.9%

Use of proceeds:

Finance the Group’s development operations during the 2017-2020 period, in line with the CAP 2030 strategy

Strengthen the Group’s financial flexibility

CAPITAL INCREASE

Q1 2017 SALES 5

Proposal of a €0.90 dividend per share for 2016 at AGM on 18 May 2017 -€0.50 interim dividend paid in October 2016

Option to receive the dividend in new shares confirmed by the French State

Ex-dividend date for final dividend of €0.40: 6 June 2017

Payment date and settlement of shares: 30 June 2017

2016 DIVIDEND

FINANCIAL HIGHLIGHTS

¥137bn or €1.1bn raised in January 2017, through a series of “Samurai”

senior bond issues, ranging from 10 to 20 years

First public “Samurai” Green Bonds, with the issuance of two green

tranches totalling ¥26bn (or ~€210m) dedicated to the financing of

renewable investments

Total Green Bonds issued to date by EDF group: ~€4.5bn

LONG-TERM FINANCING

Q1 2017 SALES 6

Group sales: €21.1bn, flat in organic terms compared to Q1 2016

France – Generation & supply activities: +1.7% in particular due to

ARENH sales

Dalkia: +15.4% benefitting mostly from favourable price effects

Italy: -10.4% penalised by realised gas price level

SALES PERFORMANCE

OPERATING HIGHLIGHTS

Nuclear generation

France: -7.6TWh in line with expectations considering outages for

additional controls initiated in 2016

United Kingdom: +0.3TWh

OPERATING PERFORMANCE

Q1 2017 SALES 7

-285 +188 -54 -324 +118 -35

Q1 2016 Q1 2017

ItalyScope, forex and

inter-segment operations(2)

France -Regulatedactivities

United Kingdom Other

internationalFrance -

Generation and supply activities

Otheractivities

In €m

+7821,442

21,128

GROUP SALES STABLE IN ORGANIC TERMS(1)

Mainly UK forex O/w Dalkia (+€155m)

(1) Organic change at constant scope and exchange rates – financial information reflecting the new segmental reporting since 31.12.2016

(2) As of 2016, breakdown of sales across the segment, before inter-segment eliminations

Organic change: +0.0%(1)

Q1 2017 SALES 8

-171-37 +17

-895+849

+425

Q1 2016 Q1 2017

In €m

(1) Organic change at constant scope and exchange rates - financial information reflecting the new segmental reporting since 31.12.2016

(2) Excluding additional required energy purchases on markets

11,166

6.16Weather(+0.8TWh) and2016 leap year

Tariffs ARENH sales

Other


FRANCE – GENERATION AND SUPPLY ACTIVITIES

11,354

Net sales on markets(2)

O/w purchaseobligations (+€159m)

Competition (-3.4TWh) offset by positive volume and price effects

Downstreammarket

conditions

Mainly generationand ARENH supply

Q1 2017 SALES 9

FRANCE: UPSTREAM/DOWNSTREAM BALANCE

In TWh

141

-8

+3-

-2

-

-7

∆ Q1 2017vs. Q1 2016

-2

-24

-1

+20

141

Nuclear

Hydropower(1)

Fossil-firedLT & structured purchases

Purchase obligations Net market sales

Structured sales,auctions and other(2)

ARENH supply

End-customers

∆ Q1 2017vs. Q1 2016

-7

OUTPUT/PURCHASES CONSUMPTION/SALES

1425

11

10997

11

20

13

NB: EDF excluding French islands electrical activities

(1) Hydro output after deduction of pumped volumes: 9TWh

(2) Including hydro pumped volumes of 2TWh

Q1 2017 SALES 10

20

25

30

35

40

45

Jan. Feb. March April May June July August Sept. Oct. Nov. Dec.

2017

2016

FRANCE NUCLEAR OUTPUT: IN LINE WITH EXPECTATIONS CONSIDERINGOUTAGES FOR ADDITIONAL CONTROLS INITIATED IN H2 2016

41.640.5

78.9

74.2

116.1

108.5

147.1

140.22017

2016

Jan. Feb. March

-6.0%

-2.6%

-6.5%

2017 nuclear output target confirmed: 390 – 400 TWh

2015

Monthly nuclear output (in TWh) Cumulative nuclear output (in TWh)

H2H1

Nuclear shortfall

2016 vs. 2015

-4.7%

April

Q1 2017 SALES 11

20%

60%

100%

140%

180%

2017

2016

2017 cumulative output(1)

16.5

13.7

2016 cumulative output(1)

January February March

12.3(2)

10.8(2)

7.9

6.8

3.5 3.9

(1) Hydropower excluding French islands electrical activities, before deduction of pumped volumes

(2) Output after deduction of pumped volumes: 10.4TWh in Q1 2016 and 8.9TWh in Q1 2017

-12.2%

-13.9%

+11.4%

Normal hydro productibility levels

Seasonal mins. and maxs. between 2007and 2017

Dec.Sept.JuneMarch

In TWh

FRANCE HYDRO OUTPUT: HYDRO CONDITIONS BELOW AVERAGE

-17.0%

April

Q1 2017 SALES 12

NUCLEAR OUTPUT

EBITDA(1)

2017 NET FINANCIAL DEBT/EBITDA(2)

390–400 TWh

€13.7bn – €14.3bn

≤ 2.5x

55% to 65%PAYOUT RATIO OF NET INCOME EXCLUDING

NON-RECURRING ITEMS(3)

2017 TARGETS & 2018 ROAD MAP CONFIRMED

(1) At 2016 exchange rate

(2) At 2016 exchange rate and at an assumed discount rate on nuclear provisions of 4.1% in 2017

(3) Adjusted for the remuneration of hybrid bonds accounted for in equity

(4) At constant scope, exchange and hypothesis of pensions discount rates. Excluding change in operating expenses of service activities

(5) At 2016 exchange rate and assumption for 2018 power prices in France on volumes not hedged as of 31.12.2016: ≥ €36/MWh

(6) At 2016 exchange rate. Cash flow excluding Linky, new developments and asset disposals, with an assumed discount rate on nuclear provisions of 4.1% in 2017 and 3.9% in 2018, excluding interim dividend for fiscal year 2018, which will be decided in H2 2018

OPEX(4)

NET INVESTMENTS EXCLUDING LINKY, NEW

DEVELOPMENTS AND ASSET DISPOSALS

-€0.7bn vs. 2015

≥ €15.2bn

~€10.5bn

EBITDA(5)

≥ 02018

CASH FLOW(5)(6)

≤ 2.5xNET FINANCIAL DEBT/EBITDA(5)(6)

50%PAYOUT RATIO OF NET INCOME EXCLUDING

NON-RECURRING ITEMS(3)

Q1 2017 SALES 13

OPEX REDUCTION(1) in 2019 vs. 2015

ASSET DISPOSALS OVER 2015-2020



PAYOUT RATIO OF NET INCOME EXCLUDING NON-

RECURRING ITEMS(2)

BEYOND 2018

At least €1bn

At least €10bn

45% to 50%

BEYOND

2018

Q1 2017 SALES 15

CHANGE IN SALES BY REPORTING SEGMENT

In millions of Euros Q1 2016 Q1 2017 ∆% ∆% org.(1)

France – Generation and supply

activities11,166 11,354 +1.7 +1.7

France – Regulated activities 4,784 4,862 +1.6 +1.6

United Kingdom 2,929 2,568 -12.3 -1.8

Italy 3,119 2,797 -10.3 -10.4

Other International 1,546 1,467 -5.1 -2.3

Other activities 1,999 2,153 +7.7 +5.9

Inter-segment operations(2) (4,101) (4,073) -0.7 -0.7

Group 21,442 21,128 -1.5 0.0

(1) Organic change at constant scope and exchange rates – financial information reflecting the new segmental reporting since 31.12.2016

(2) As of 2016, breakdown of sales across the segments, before inter-segment eliminations

Consolidated salesStrategy

& investments EDF EN France MarketsInternational &other activities

Q1 2017 SALES 16

FLAMANVILLE 3 EPR

Construction progress as of 31 March 2017 Completion of the main civil engineering work

1st milestone of the new roadmap achieved on 15 March 2016, with finalisation of the primary coolant system, and the installation and assembly of the large components (all four steam generators, reactor vessel, pressurizer and reactor coolant pumps)

Transfer of the control room to the teams that will operate the reactor

Progress of electromechanical erection exceeded 80%

Start of plant system test (pumping station, fuel building, turbo-generator unit…)

Main steps in 2017 Beginning of the system performance tests on 15 March 2017,

in parallel of finalization of mechanical erection

Opinion of ASN(2) on the results of the test programme aiming at proving the serviceability of bottom head and closure head of the reactor pressure vessel, expected at the end of 1st semester 2017

Roadmap for the Flamanville 3 project, drawn

up in September 2015: Project cost set at €201510.5bn(1)

First fuel loading and start –up of the reactor expected

end 2018

Ramp up 2019: connection to the grid in the 2nd quarter

and then 100% capacity in the 4th quarter

One 1,650MW EPR under construction

(1) Excluding interim interests

(2) ASN: Autorité de Sûreté Nucléaire


& investments EDF EN France MarketsInternational & other activities

Q1 2017 SALES 17

CHINA TAISHAN 1 & 2 (EDF 30%)

Construction progress as of 31 March 2017

Unit 1

Finalization of electromechanical erection and system performance testing underway

Containment building of reactor building, hydropower test of the primary circuit carried out in 2016

Hot functional testing (i.e. operation with nominal pressure and temperature values)

Increase in pressure and temperature of the primary circuit, reactor protections testing realised, internal structures nn vibration testing realised

Fuel delivery on site

Ongoing safety review by the Chinese safety authority in order to authorise fuel loading

Unit 2

Continuation of electromechanical erection, end of secondary circuit assembly, realization of the modifications of the command control to bring it to the level of the unit 1

Next steps

Unit 1

End of hot functional testing and fuel loading

Start-up in the second half of 2017(1)

Unit 2

End of electromechanical erection, system performance testing

Start-up in the first half of 2018(1)

(1) Source: CGN press release of 20 February 2017 (”Construction Progress of Taishan Nuclear Power Generating Units”)



Q1 2017 SALES 18

UK NUCLEAR NEW BUILD: FIRST NUCLEAR SAFETY CONCRETE GOAL ACHIEVED AT HINKLEY POINT C

EDF signed contracts with the UK Government and Chinese partner CGN in London on 29 September 2016, sealing the final investment decision taken by the EDF Board on 28 July 2016. EDF’s share is 66.5% and CGN’s 33.5%

First Nuclear Safety Concrete achieved at end March 2017

Currently 1,600 people working on site each day

Update for Sizewell and Bradwell projects

For Sizewell, EDF is reviewing feedback from the second stage consultation completed February 2017

For Bradwell, the UK government confirmed on 10 January 2017 that the nuclear regulator has been asked to begin the GDA for the UK HPR1000 nuclear technology



Q1 2017 SALES 19

SHARE CAPITAL INCREASE: OPERATION’S RESULTS

632,741,004 shares to be issued

€4,018m

Requested

shares146M i.e. €929m

Subscription on a reductible basis

Granted

shares8M i.e. €53m

Rate

subscription1.3%

Subscription on an irreductible basis

Subscribed

shares624M i.e. €3,964m

Rate

subscription98.7%

Rights

exercised2,080M

Granted

shares624M i.e. €3,964m

Total market demand /

Rate subscription€1,893m / 185.9%

Total Demand/ Rate

subscription€4,893m / 121.8%



Q1 2017 SALES 20

EDF EN: NET INSTALLED CAPACITY AS OF 31 MARCH 2017

Source: EDF Énergies Nouvelles

Note: MWp: Megawatt peak (measure of the power under laboratory lighting and temperature conditions)

Wind installed (MW)

Solar installed (MWp)

Wind and solar under construction (MW)

Other technologies

Installed 208MW

Under construction 25MW

Gross Net

Installed capacity: 9,803MW 6,345MW

Capacity under construction: 1,845MW 1,297MW

Total: 11,648MW 7,642MW

47MWp230MW

187MW6MW

265MW74MWp

238MW12MWp

2,426MW89MWp

354MW

242MW170MW

267MW

3MW

476MW23MWp

112MW106MW

109MWp18MW

834MW207MWp179MW

6MW

188MW

72MW78MWp14MW

54MW

27MW

217MW

66MW40MW


& investmentsEDF EN France MarketsInternational &

other activities

Q1 2017 SALES 21

EDF EN: INSTALLED CAPACITY AND CAPACITY UNDER CONSTRUCTION, BY TECHNOLOGY, AS OF 31 MARCH 2017

(1) Gross capacity: total capacity of the facilities in which EDF Énergies Nouvelles has a stake

(2) Net capacity: capacity corresponding to EDF Énergies Nouvelles’ stake

In MWGross(1) Net(2)

31/12/2016 31/03/2017 31/12/2016 31/03/2017

Wind 8,495 8,613 5,434 5,498

Solar 900 972 621 639

Hydro 63 63 60 60

Biogas 70 70 70 70

Biomass 66 66 58 58

Cogeneration - - - -

Other 20 19 20 20

Total installed capacity 9,614 9,803 6,263 6,345

Wind under construction 1,221 1,269 873 968

Solar under construction 560 526 316 305

Other under construction - 50 - 24

Total capacity under construction 1,780 1,845 1,188 1,297



other activities

Q1 2017 SALES 22

51.2 47.0 45.8

45.6

12.3 12.0

15.2

39.5 38.6

ELECTRICITY BUSINESS OF EDF IN FRANCE

(1) Rounded to the nearest tenth

(2) Including EDF’s own consumption

(3) Blue professional tariff, LDC (Local Distribution Companies) at transfer price and Yellow and Green tariffs, below 36kVA from 2016

Residentialcustomers

Local authorities, companies and professionals

(at historical tariffs)(3)


(not at historical tariffs and including transitional offer for 3.5TWh)

112.0

96.4

Sales to end customers(1)(2)

98.9

Q1 2015 Q1 2016 Q1 2017

Decrease in portfolio volume at end-March 2017 vs. end-March 2016 of -2.5TWh

In TWh



other activities

Q1 2017 SALES 23

45.8

12.0

38.6

0.1

3.5

ELECTRICITY BUSINESS OF EDF IN FRANCE – HISTORICAL TARIFFS SPLIT BY COLOUR

(1) Rounded to the nearest tenth

(2) Including EDF’s own consumption

(3) Local Distribution Companies (LDCs)

(4) Of which Yellow tariff for 0.03TWh and Green tariff for 0.07TWh - tariffs lower than 36kVA that persist beyond 2015

In TWh Sales to end customers for Q1 2017(1)(2)

Residential customers


(not at historical tariffs)

Local authorities, companies and professionals(at historical tariffs)

LDC(3) transfer price

Green and Yellow

tariffs(4)

Blue tariff54.3



other activities

Q1 2017 SALES 24

FRENCH NUCLEAR FLEET: FULLY SAFE OPERATION OF THE STEAM GENERATORS CONFIRMED BY THE FRENCH NUCLEAR SAFETY AUTHORITY (ASN)

When a higher-than-expected carbon concentration was discovered in some parts of the pressure vessel of the Flamanville EPR reactor (carbon segregation), EDF and AREVA conducted analyses to identify the risk of such a phenomenon on forged parts installed on the current nuclear fleet

These analyses revealed that this risk could affect 46 steam generators manufactured by CreusotForge and Japan Casting Forging Corporation, installed on 18 generation units

The first measurements demonstrated the existence of margins allowing for the safe operation of the reactors

To reinforce this safety demonstration, EDF carried out in-depth controls during the planned outages of the relevant reactors, which required the outages to be extended. These controls were of two types: Tests using ultrasound to check for the absence of metallurgical defects

Measurements of surface carbon levels at different areas of the bottoms of each steam generator

These inspections allowed the restart of the reactors equipped with steam generator bottoms made by Creusot Forge, or 6 generation units(1)

On 7 October 2016, EDF submitted to the ASN a technical report supporting the fully safe operation of the steam generators manufactured by JCFC, which are used in ten 900MW reactors. This “generic” demonstration was approved by the ASN on 5 December 2016

On 17 January 2017, the ASN issued a statement regarding the last two reactors of the 1,450MW fleet that were still to be controlled: the ASN approved the safety demonstration regarding the steam generators of Civaux 2

As of 1st March 2017, the 18 reactors concerned by the issue of “carbon segregation” have been tested and granted approval to restart and are operating in complete safety

(1) Please refer to the press release published by EDF on 21 October 2016

Reactors affected by carbon segregation and controled

Reactors not affected by carbon segregation



other activities

Q1 2017 SALES 25

FRENCH NUCLEAR FLEET: QUALITY ASSURANCE ANOMALIES IN AREVA’S MANUFACTURING FILES

AREVA’s quality control audit has highlighted irregularities in parts of the manufacturing tracking records for the parts forged in the Creusot Forge factory, in regards to either manufacturing parameters or test results. The affected files had been marked at the time with one or two bars, hence the name “barred folders”

Informed of the issue starting in April 2016, EDF is closely monitoring AREVA’s analysis of all records used for the identification and characterisation of the “barred” files for the parts intended for the French nuclear fleet. For each of these files, EDF is also carrying out its own independent analysis

The French Nuclear Safety Authority is regularly informed of these analyses

Mid-October 2016, EDF informed the ASN that it has completed the characterisation of the “barred folders” relating to the reactors in operation and confirmed that the 88 identified irregularities have no impact on the safety of reactors in question

Regarding the Fessenheim 2 reactor, the noted irregularity involves the forging file for the lower part of a steam generator. In order to undertake additional investigations, EDF shut down this reactor on 13 June 2016 in advance of its planned outage. AREVA submitted to the ASN, and started in September, a programme of additional tests on the steam generator. The results, transmitted by AREVA to the ASN on 6 January 2017, confirm the integrity of the steam generator and its ability to operate safely. The issue is currently being investigated by the ASN

Beyond the “barred folders”, AREVA has launched an analysis programme on around 9,000 manufacturing records, including 1,600 manufacturing records of components used in the currently operating fleet

One of these irregularities concerns the manufacturing file of a new steam generator, not yet installed and initially intended for Gravelines reactor 5. The reactor, shut down since 9 April 2016 for its 3rd ten-year inspection, will be able to operate in all safety with original steam generators after a procedure which has been approved by the Nuclear Safety Authority



other activities

Q1 2017 SALES 26

CAPACITY MARKET IN 2017 AND IMPACT FOR EDF

First capacity auction 2017 organised by EPEX Spot on 15 December 2016

22.6GW of capacity certificates traded

Price of capacity: €10/kW (reference price for 2017)

On 27 April 2017, a 2nd capacity auction for remaining 2017 volumes cleared at €10.4/kW

EDF certified 76GW capacity for 2017

EDF, both a capacity-holding operator and a entity subject to capacity obligations as supplier, holds a positive net position which it can sell on the market

Financial impact for EDF

Only part of the certified capacity value can be recovered

ARENH volumes subscribed by alternative suppliers or included in EDF's supply offers including Blue tariffs, Exeltium, LCD(1) tariffs, are delivered with certificates of capacity

2017 EBITDA impact will be linked to the timing of the capacity cost pass-through to the different categories of end-customers, in principle in 2017. The pass-through of capacity costs in regulated tariffs should take place as part of the next tariff movement, as its principle was enacted by the CRE’s decision of 13 July 2016




other activities

Q1 2017 SALES 27

LINKY(1) SMART METERS DEPLOYMENTThe project Roll-out since the end of 2015 with a goal of 34 millions meters (ie 90% of the fleet) installed by 2021

Investment amount estimated at €4.5bn over the deployment period 2014-2021

Economic equilibrium based on gains made possible by the Linky project (reduction of non technical losses, reduction in the number of technical and meter-reading, optimization of network management, MDE(2) gains, etc.)

The tariff framework of the project(3)

Specific regulation over a 20-year period (Linky-dedicated RAB)

Pre-tax nominal return rate of 7.25% and 3% additional premium with penalties in return for an incentive regulation relative to the respect of the costs and the deadlines and the performance of the system (the penalties may not lead to a total pre-tax nominal compensation rate of less than 5.25% )

Application of a tariff difference on Linky revenues until 2021, accompanied by a compensation for the costs of financial carry, and totally cleared by 2030

Roll-out at end March 2017 Since the first pilots and the start of the general roll-out on 1st December 2015, the installation is continuing, in line

with the projected progress and cost path

At end of March 2017, around 3.65 million clients are equipped with installed meters, and nearly 60,000 concentrators were installed in the substations. The deployment started in about 2,150 towns, in all regions of France

The rhythm of installation of the Linky meters has risen from less than 3,000 meters/day in early 2016 to around 17,000 meters/day at end of March 2017, in line with the increase in the number of installers and the expected installation rate

(1) Linky is a project of Enedis, independant subsidiary of EDF under the provisions of the French Energy Code

(2) MDE: Demand-side management

(3) CRE’s ruling of 17 July 2014



other activities

Q1 2017 SALES 28

TURPE 5 HTA/BT (DISTRIBUTION): KEY FEATURES

TURPE 5 HTA/BT largely takes up the main principles of TURPE 4 HTA/BT:

Remuneration of the Regulated Asset Basis (2.6% from a €51bn grid RAB and 10.25% from a €1.6bn(1) Linky RAB)

Remuneration of Regulated Equity (4.1% from €5.8bn(1))

Coverage of the amortisation trajectory (on the basis of an Enedis proposal, €2.5bn except Linky and €0.16bn Linky(1))

“System” OPEX: coverage of system services and energy purchases, incentive on losses

Incentive on business OPEX, mainly personnel expenses and procurement costs

The CRE reinforced the incentive regulation mechanisms (quality of supply, level of requirements in terms of quality of services, performance of the controllable OPEX, incentive on losses)

After the increase of 2.71%(2) on 1st August 2017, the tariffs will be adjusted every year starting 2018, on 1st August, according to the formula CPI + K:

CPI = Consumer Price Index for all France, excluding tobacco, in year N-1

K = annual clearance term of the CRCP (within a limit of +/-2%; the uncleared amounts, where applicable, being pending appeal to the following years)

(1) Planned average figures for the TURPE 5 tariff period (2017-2020)

(2) Four actions for annulment were filed against the decision on the TURPE HTA-BT with the State Council by Enedis, EDF, the Minister for Energy and the trade union CFE-Energies

Source: Commission de Régulation de l’Énergie. Chiffres moyens sur 2017-2020



other activities

Q1 2017 SALES 29

TURPE 5 HTA/BT (DISTRIBUTION): TOTAL AUTHORISED REVENUEIn millions of euros

Source: Commission de Régulation de l’Énergie. Chiffres moyens sur 2017-2020

(1) Enedis, independent subsidiary of EDF under the provisions of the French Energy Code

Equity charges Linky

Capital charges approved by CRE

Business opex: CRE incentive on Enedis(1) proposal

System opex: cost coverage

Linky CRL and CRCP clearance

Total authorised revenue approved by CRE

Equity charges except Linky

13,464

4,440

(290)

4,610

4,704

4,114

326



other activities

Q1 2017 SALES 30

ENERGY TRANSITION LAW FOR GREEN GROWTH FROM THE PPE(1) TO EDF’S STRATEGIC PLAN

Strategic Plan (PSE)

Obligation imposed on EDF as a producer of more than one third of national electricity output

Proposes changes in generation facilities to meet the objectives of the first period of the PPE

Submitted to the Energy Minister within six months of the approval of the PPE

The Minister verifies the compatibility of the Strategic Plan with the PPE, if incompatibilities exist, obligation to draft a new Strategic Plan

Obligation for EDF to report annually on the implementation of the PSE strategic plan to Parliament

Government Commissioner’s right to veto

The Government Commissioner has the right to oppose any investment decision incompatible with the objectives of the StrategicPlan or with the PPE in the absence of a Strategic Plan

If the Government Commissioner’s opposition is validated by the Minister of Energy, no investment decision without revision of the Strategic Plan

End of the first PPE period

Approval of the PPE

(Decree of 27 October 2016)

October 2016 End 2018April 2017

Submission of the Strategic Plan to the Minister for Energy

(Board of 6 April 2017)(2)

End 2023

End of the secondPPE period

(1) PPE: Programmation Pluriannuelle de l’État

(2) Please refer to the press release published by EDF on 6 April 2017



other activities

Further information request of the

Minister for Energy

(Letter of 21 April 2017)

Q1 2017 SALES 31

PROJECT TO EXTEND HYDROPOWER CONCESSIONS

The French State has the option to extend certain current hydropower concessions in exchange for the realisation, by the existing concessionaire, of additional investment needed to achieve energy policyobjectives(1)

The State notified to the European Commission (General Division Growth - "GROW") on 12 April 2017 a project for the extension of the concessions of the Truyère and Lot valleys in return for investments. These concessions, currently operated by EDF, provide:

the best opportunity for a rapid increase in hydroelectric generation capacity in France, and

the possibility of creating a STEP (pumped storage plant) enabling the mass storage of electrical energy necessary for the development of intermittent renewable energy sources

This extension would therefore address security of supply requirements by 2025-2030 by increasing the flexibility of the existing fleet

Two-stage review of the extension project by the European Commission services

1. General Division GROW: review under concessions law

2. General Division Competition - “COMP”: review under European competition law, with respect to State aid rules and within the framework of the 22 October 2015 formal notice by DG COMP(2)

(1) A provision of the law No. 2015-992 of 17 August 2015 relating to the Energy Transition for Green Growth (“Loi TECV”)

(2) The notification of this project does not suspend the formal notice procedure under Article 106/102 TFUE



other activities

Investor Presentation

Delivering on Cap 2030

33Delivering on CAP 2030

INVESTMENT HIGHLIGHTS

CAP 2030 STRATEGY: TRANSFORMATION WELL ADVANCED

KEY LEVERS FOR GROWTH

AGENDA


TRANSFORMATION OF THE GROUP UNDERWAY TO GROW IN A NEW MARKET ENVIRONMENT…

... AND TAKE FULL BENEFIT FROM MARKET RECOVERY

CAP 2030: ADDRESSING KEY CUSTOMER’S DEMAND

UNIQUE EXPERTISE IN NUCLEAR POWER

LEADERSHIP POSITION IN THE RENEWABLE INDUSTRY

GROWING REGULATED NETWORKS PROVIDING PREDICTABLE RETURNS

LEADING ENERGY SUPPLIER WITH INNOVATIVE SERVICES SOLUTIONS – TOP 5 STRONGEST

BRAND IMAGE IN FRANCE(1)

STRENGTHENED FINANCIAL PROFILE TO DELIVER CAP 2030 STRATEGY AND

ATTRACTIVE SHAREHOLDER REMUNERATION

1

2

3

4

5

(1) Source: IPSOS study “The Most Influential Brands in France 2016”


ENERGY

WILL BE

LOW-CARBON

CUSTOMERS

ARE MORE

PROACTIVE

Global commitment

to reduce CO2

emissions

Cost reduction of renewable energy

technologies

Public opinion favoring clean

energies

Digitization

New entrants

Global growth

New business models

New services to support new

usages

Increasing decentralized

power generation solutions

New consumption

trends

Continued innovation and competitive low-carbon energy as key success factors

EDF’S VISION ON CURRENT GLOBAL ENERGY CHALLENGES


Being an efficient, responsible company leading low-carbongrowth to address the global energy transition challenges

LOW-CARBON GENERATION PROXIMITY TO CUSTOMERS AND

LOCAL COMMUNITIESLargest low-carbon

generation fleet

Attractive and balanced

generation mix

Intensified renewable

energy growth

Increased share of

regulated / long-term

contracted generation

Decentralization

Digitization

Services

EDF ADDRESSES KEY CUSTOMER’S DEMAND WITH CAP 2030

Nuclear

Renewables

NETWORKS

CustomersCUSTOMERSNUCLEAR

RENEWABLES

Innovation

Transformation

& International


INNOVATION AND DIGITIZATION AT THE HEART OF EDF TRANSFORMATION

Nuclear

Renewables

NETWORKS

CustomersCUSTOMERSNUCLEAR

RENEWABLES

INNOVATION

&

TRANSFORMATION

R&D projects (e.g. floating offshore,

solar PV cost and integration)

Storage: Battery-based solutions

(e.g. EDF Store & Forecast)

E-Monitoring

EPR New Model

Digitization

(reactor simulator)

R&D on Small

Modular Reactor

Annual R&D budget: above €600m

Skills development: ~ 85% of employees receive training every year

A top 5 preferred employer for engineers(1)

(1) Source: Universum "Engineers" ranking

Smart grid

Linky Smart Meter

Storage flexibility

E-quilibre

Sowee

Decentralized solutions

Solar self-consumption

offering (Mon Soleil&Moi)


SIX AMBITIOUS CORPORATE SOCIAL RESPONSIBILITY GOALSSET THE ROADMAP FOR THE GROUP TO DELIVER CAP 2030

A commitment to change and to working as closely as possible with customers and regions, at the heart of the energy transition and climate issues

At the core of the strategic reviews, they will be assessed and reported every year by the company from 2017

To go beyond the requirements of the 2 °C trajectory set by COP21, by drastically reducing our CO2 emissionsClimate change

To adopt the best practices followed by industrial groups in terms of human development: health and safety,

gender equality and internal career advancement

People development

To offer all vulnerable people information about and support with energy use and energy benefitsFuel poverty

To innovate through digital energy efficiency solutions to enable all customers to use energy betterEnergy

efficiency

To systematically organise a process of transparent and open dialogue and consultation for every new project

around the world

Dialogue & Consultation

To launch a positive approach to biodiversity, not limited to understanding and reducing the impacts of our

activities in the long run but having a positive effect on biodiversityBiodiversity


THE GROUP PROACTIVELY MANAGES THIS TRANSFORMATION WITH CLEARLY IDENTIFIED TARGETS BY 2020

(1) Net capacity in operation for EDF EN

(2) Pipeline as of 31/12/2016, excluding capacity under construction. Total pipeline including capacity under

construction: 18.5GW

(3) 2017E-20E CAGR of projected capital charge as per CRE’s decision of 17 November 2016; excluding Linky.

Growth profile of capital charge: possible proxy for the growth profile of Enedis EBITDA

(4) CAGR: Compounded annual Growth Rate

(5) Enedis, independent subsidiary of EDF under the provisions of the French energy code

NETWORKS

CUSTOMERSNUCLEAR

RENEWABLES

FINANCIAL

PROFILE

3 EPR commissioned(9) and 2

under construction

Profitable investment in the

existing fleet(10)

Enhanced nuclear expertise with

the AREVA NP acquisition

€4bn capital increase achieved

€1bn opex reduction(7)

€10bn disposal plan(8)

>50% of the capex invested in regulated, Linky,

NNB and net renewables activities in 2020

Consolidation of the current

subscribers base of 37m customers

Strong brand image in France and

strong customer satisfaction

Continuous effort to offer innovative

customer solutions: Sowee, Alexa

Over €2.0bn gross investments p.a. on

2017-2020 period

c.30% expected increase in wind and

solar net capacity(1)

16.8GW pipeline(2)

c.25% increase in O&M activities

#1 electricity distribution network in

Europe

~3% CAGR(3)(4) of ENEDIS(5)

~90% Linky(6) investment achieved

in 2020

(6) Linky is a project led by Enedis. As per CRE’s decision of 17 July 2014.

(7) €1bn over 2015-2019. At constant scope, exchange, and assumptions of pension discount rates. Excluding

change in operating expenses of service activities

(8) €10bn asset disposal over 2015-2020

(9) Subject to ASN approval for Flamanville

(10) ASN position on generic program expected before 2020


PROVEN TRACK RECORD IN OPERATING NUCLEAR POWER

Continuous reduction of unplanned

outages(1) in France

Sound management of planned

outages periods in France

Best UK output ever achieved

through synergetic benefits of

French / UK nuclear expertise

72 GW

Largest nuclear operator worldwide with ~18%(2) of global nuclear installed capacity

1EDF

existing fleet

Unique operational

experience

France / 63.1GW UK / 8.9GW

58reactors

Unplanned

outage ratio

divided by 2

since 2009

Outage

extension ratio

divided by 2

since 2013

UK load factor

increased by

10pts since 2009

acquisition

Mature assets offering strong margin upside with power price recovery

FINANCIAL

PROFILE

15reactors

(1) Unplanned outages exclude by definition outages for regulatory reasons such as outages following le Creusot issues

(2) Based on IAEA: International Atomic Energy Agency


GRAND CARÉNAGE: LIFETIME EXTENSION BEYOND 40 YEARS(1) GIVES VISIBILITY AND ENHANCES RETURN

This extensive investment programme includes

• Maintenance capex

• Refurbishing or replacement of all large components (including steam generators)

• Ten-year safety inspections, particularly fourth ten-year inspection (VD4) of 900MW and 1300MW fleet, as well as the post Fukushima additional capex, allowing the existing fleet to reach the highest international safety standards

Programme cost under control: total investment costs over 2014-2025 decreased from €55bn(2) to €45bn(2), mainly through project optimisation and smoother capex phasing

Programme on time 3 years after inception

• Approved by EDF board

• ASN position on generic programme well underway(1)

• First unit’s 50-year lifetime extension work: completion expected for 2019(3)

• More than 3/4 of the fourth ten-year safety inspection for the 900MW reactors expected to be completed by 2025

(1) ASN position expected before 2020

(2) In 2015 euros

(3) First 900MW reactors life extension, subject to ASN approval

(4) Pressurised Water Reactor (PWR)

1

Positive benchmark is 60 years lifetime approval in the US for similar PWR(4) technology reactors

The “grand carénage” covers all investments for French

nuclear fleetA well-defined and controlled programme

FINANCIAL

PROFILE


UNIQUE GLOBAL POSITIONING IN NUCLEAR NEW-BUILD

3 EPR reactors

in operation before 2020

China / Taishan France / Flamanville UK / Hinkley Point

2 1 2

NEW

Nuclear

Development

1World nuclear capacity expected to expand over the

next quarter century

Today,

nuclear

represents

~11% of

global output

In 2040,

IEA(1)

expects

~12% of

global output

Unique positioning on global

new nuclear build growth

150GW to be decommissioned

350GW to be built

250

350

2014 2040e

400GW

600GW

Hot tests

Commercial operation expected in H2 2017 for 1st unit and in H1 2018 for 2nd unit(2)

Beginning of system

performance tests end

Q1 2017

Fuel loading and start

up of the reactor

expected at the end of

2018

Final contracts

signed

Commissioning of

the first reactor

expected in 2025

EDF will leverage on accumulated experience, including Areva NP expertise, for further international

opportunities (India, South Africa…)

(1) IEA; International Energy Agency

(2) Source: CGN Power press release, 20 February 2017

FINANCIAL

PROFILE


2

EDF’S LEADERSHIP IN RENEWABLES ACTIVITIES IS A STRONG PLATFORM FOR GROWTH

Key figures at 31 December 2016. All capacity figures are net figures, corresponding to EDF Group’s stake in each asset. Includes net installed power generation capacity and net power generation capacity under construction.

In addition, renewables activities comprise 2.9GWth of renewable heat capacity (located mainly in France and operated by Dalkia)

3.6GW

0.4GW

27.0GW

0.6GW

0.05GW

31.7 GW

HYDROPOWER:

‘DNA’ OF EDF

Leader in Europe with a

growing development

pipeline

Global presence in 22 countries

SELECTIVE GROUP

INVESTMENT PLAN

Over €2bn gross

investments p.a. and

increasing over time

BALANCED

CAPACITY MIX WITH

30.4GW IN

OPERATION

7.8GW renewables and

22.6GW hydro operating

assets

1.3GW under construction

Capacity by Technology

Hydro

22.9GW

Wind

7.4GW

Solar

0.8GW

Other 0.6GW

31.7GW

FINANCIAL

PROFILE


EDF EN – A DEDICATED PLATFORM TO BENEFIT FROM RENEWABLES CAPACITY GROWTH

(1) Development and sale of structured assets (DSSA)(2) Based on estimations at 31 December 2016 of revenues from fully consolidated assets. Includes regulated, quasi-regulated and long-term contracted assets(3) Based on estimations at 31 December 2016 of revenues from fully consolidated assets. Revenues from assets with a strict regulated or commercial PPA

~14 average remaining

years of contract(3)

~85% of long-term

contracted generation revenues(2)

Long-term

contracted

85%

Merchant

15%

6-10 years

18%

11-15 years

35%

16-20 years

36%

>20 years

10%

1-5 years 1%

LEADING POSITION

IN WIND

11.5GW developed and built over the last

15 years

INTEGRATED

OPERATOR ALONG

THE VALUE CHAIN

Development, Construction and Operation

O&M (13.5GW under management)

DSSA(1)

Significant increase in

total output

Net installed capacity

x 2.3 since 2010

2010 2016 2010 2016

6.1TWh

11.3TWh

2.7GW

6.3GW

x1.9x2.3

2FINANCIAL

PROFILE


Operational excellence with a strong

focus on efficiency and availability...

...And a selective development policy to

deliver significant EBITDA growth

DEVELOPMENT

POLICY

Rigorous country analysis

Stringent initial project selection

Advanced engineering capabilities to

estimate projects’ returns

Unique procurement process with in-

depth due diligence of supply chain

Strict investment decision processes

STRONG TRACK

RECORD OF

DELIVERING

EBITDA

GROWTH

LEADING O&M

SERVICE

PROVIDER

CONTINUOUS

IMPROVEMENT

IN LOAD

FACTORS

2012 2016

25%

31%

2012 2016

13%

Wind Solar

2013 2016

9.0GW

13.5GW

> 97%

2

EDF EN DEMONSTRATING STRONG TRACK RECORD IN PROJECTS DEVELOPMENT LEADING TO HIGH VALUE CREATION

FINANCIAL

PROFILE

+

25%

16%


16.8GW

Solar

29%

Offshore

Wind

9%

Onshore

Wind

62%

North

America

34.5%

Europe

34.5%

Asia

9%

Latin

America

7%

RoW

15%

16.8GW

LARGE AND VISIBLE PIPELINE SUCCESSFUL ASSET ROTATION

SIGNIFICANT INVESTMENT PLAN IN NEW RENEWABLES, SUPPORTED BY A SOLID PIPELINE

EDF EN NET CAPACITY SOLD

2013 2014 2015 2016

0.7

GW

0.6

GW0.5

GW

1.0

GW

BY

TECHNO-

LOGY

BY

AREA

CURRENT EDF EN PIPELINE(1)

Focus on emerging countries offering grid parity

Increase financial flexibility

through management of net

investments

DSSA(2) EBITDA / Generation

EBITDA ratio in 2013-16 = c. 45%

(1) Pipeline (gross capacity) at 31 December 2016 excluding capacity under construction(2) Development and sale of structured assets (DSSA)

2FINANCIAL

PROFILE


ENEDIS: HIGH VISIBILITY ON GROWTH AND RETURNS FROM REGULATED ACTIVITIES

Enedis, independent subsidiary of EDF under the provisions of the French energy code

(1) Growth profile of capital charge: possible proxy for the growth profile of Enedis EBITDA

Tariff evolution

+2.71% on average as of August 2017

Inflation in following years

CRE’S

DECISION OF

17 NOV.2016

2017E 2020E

€3.2bn€3.5bn

All investments eligible for tariff

coverage under TURPE 5

Expected growth in capital

charge under TURPE 5(1)

LEADING

DISTRIBUTION

PLAYER IN

EUROPE

3

2017E 2020E

€49.4bn€52.7bn

Regulated Asset Base

(excl. Linky)

+2.2% CAGR 2017-20E

Total Gross Capex

(excl. Linky)

+2.3% CAGR 2017-20E

2017E 2020E

+2.8% CAGR 2017-20E

€3.9bn

€4.3bn

New

Nuclear~36m

delivery points

New

Nuclear

378TWh

electricity

distributed

New

Nuclear

1.3m

kmsof lines

New

Nuclearc.38,700

employees

#1 electricity

distribution

network in

Europe

FINANCIAL

PROFILE


LINKY: PREDICTABLE REGULATED RETURNS AND POSITIVE CASH FLOWS FROM 2022

Linky is a project led by Enedis, independent subsidiary of EDF under the provisions of the French energy code

Source: CRE decisions of 17 July 2014 and of 17 November 2016

(1) +3% / -2% incentive premium / penalties depending on cost control, fulfilment of deadlines and system performance, during the deployment phase

SIGNIFICANT

LINKY EBITDA

CONTRIBUTION

FROM 2022

Linky – Total Gross Capex Linky – Return

AT THE HEART

OF NEW

NETWORK

SERVICES

FOR BETTER

PERFORMANCES

New

Nuclear34m

smart meters

by 2021

New

Nuclear

2.5msmart meters

deployed at

end 2016

New

Nuclear~€4.5bn investments over

2014-2021

New

Nuclear

A specific

20-year tariff regulation

model with

dedicated RAB

in €bn

3

7.25% pre-tax nominal return rate

3% additional premium(1)

+0.1

0.3

0.7

1.0 1.0

0.8

2015A 2016A 2017E 2018E 2019E 2020E

FINANCIAL

PROFILE


4

LEADING ENERGY SUPPLIER IN KEY EUROPEAN MARKETS

~20% market share of sales to end customers

1.7m delivery points

One of the leading UK suppliers

5.5m customer accounts

Developing new products and energy services to

compete in a rapidly evolving market

Leader in the B2B market

1.0m delivery points

70% market share for electricity (320TWh sold in 2016)

5.7% market share for gas (27.7TWh sold in 2016)

~26.2m customer accounts (excl. overseas and Corsica)

DIVERSIFIED

CUSTOMER BASE

Retail

B2B

Local authorities

New

Nuclea

r

~37 million

customers

New

Nuclea

r

Strong

brands

FINANCIAL

PROFILE


CONTINUOUS INNOVATION TO BEST SERVE OUR CUSTOMERS

ALEXA – CONNECTED HOME

First energy supplier to offer this service to customers

Opportunity for customers to control their energy account, through Alexa voice

service

Open up new, simple and easy ways for customers to interact with their energy

Collaboration with Amazon illustrative of the Group’s commitment to making

energy easy and putting customers in control

SOWEE

A device and app specially designed to manage energy consumption, optimise

comfort and remotely control everyday Smart devices

Offers the ability to control central heating to the nearest euro or degree

An innovative product that is designed to continue to evolve, with ever more

functionalities

Innovating for improving customer relationship

(1) BSM (Baromètre de Satisfaction Marché) published and measured by IFOP in 2016

Strong customer satisfaction in France(1) Continuous innovation at the center of EDF’s offering

79.6%82.8%

80.0%

85.4%

64.0%

72.8%

86.4% 86.4%

LARGE

COMPANIES

SME

WEIGHTED

AVERAGE

4

LOCAL

AUTHORITIES

2015 2016

FINANCIAL

PROFILE


2mhomes

serviced on

heating

82,000energy

facilities

managed

Sustainable mobility

(Sodetrel)

Public lighting (Citelum)

Waste-to-energy (Tiru)

Strong position in energy services in France: Dalkia, Group

platform for developing and managing innovative solutions, which

are more ecological and economical for sustainable growth of

cities and business

Active across the energy value chain: from decentralised generation

to technical demand side management

Strong focus on innovation

Dalkia energy savings centres (“DESC”), to save energy by

remotely managing clients’ heating, air conditioning and domestic

hot water installations

Storage of renewable and thermal energy (e.g. Brest) to offset

variations in heating demands

4

DIGITIZATION AND DECENTRALIZATION, CORE SOLUTIONSOF EDF’S COMPREHENSIVE ENERGY SERVICES

OTHER AREAS OF

EXPERTISE AND

GROWTH

EDF aims at developing significant positions in energy services,

leveraging on skills and expertise of Group entities: Dalkia, Fenice, Tiru

2,100French

industrial

sites353

Heating and

cooling

networks

managed

2015 2016 2015 2016

CO2 savings (in million tons) Energy savings (in TWh)

Dalkia key figures

2.5

3.2

3.94.3

FINANCIAL

PROFILE


2015 2018 2019

Expected Opex(1) trajectory

- €0.7bn

vs. 2015≥ €1bn

vs. 2015

(1) At constant scope, exchange rates and pensions discount rates. Excluding change in opex of services activities

2016

- €0.3bn(1)

vs. 2015

21.4

22.1

In €bn

CONTINUOUS OPEX REDUCTION TO INCREASE PROFITABILITY

22.1

5

New

Nuclear

≥ €1bnSAVINGSin 2019 vs.

2015

FINANCIAL

PROFILE


PROGRESS OF WCR(1) OPTIMISATION PLANS

Gains achieved in 2016 Contribution of all Group entities (2015 & 2016)

RECEIVABLES: ~€270m

Optimisation of the billing and collection

processes

INVENTORIES: ~€400m

Streamlining of coal inventories and spare

parts management

Optimisation of certificates inventories (energy

saving certificates and emissions allowances)

€1.4bn achieved since plans kick off

France

42%

International

34%

Other activities

24%

(1) Working Capital Requirement

Target

Contribution over

2015-2018

€1.8bn

5FINANCIAL

PROFILE


NET INVESTMENTS UNDER CONTROL

2015 2016

12.4 11.8

in €bn

Net investments excluding Linky, new developments and asset disposals

Target

In 2018

~€10.5bn

5FINANCIAL

PROFILE


INVESTMENTS PRIORITIES TO CAPTURE GROWTH AND PREDICTABLE RETURNS

(1) Net investments including Linky, new developments and disposals

(2) Linky is a project led by Enedis, independent subsidiary of EDF under the provisions of the French energy code

2020 net investments(1)

Regulated, Linky(2),

NNB,

net renewables

≥50%

5FINANCIAL

PROFILE


Hinkley Point C

Total cost of the project: £18bn nominal of which EDF share of

equity contribution is £12bn

On-shore wind and PV

Diversified development pipeline (2/3 Wind 1/3 Solar, 1/3 Europe,

1/3 US, 1/3 other countries)

NEW NUCLEAR

BUILD

RENEWABLES

(EXC.

OFFSHORE)

MAIN INVESTMENTS’ VALUE CREATION

Life extension consistent with Grand Carénage

A strategic investment programme

Historical IRR spread:

~200-300bps above

WACC(2),(3)

IRR at c.9%

Expected increased

IRR(1) by

10Y life extension

(exc. Fessenheim)

EXISTING NUCLEAR

LIFE

EXTENSION

85% contracted

revenues(3)

Contracted selling

price over 35 Y

Exposed to market

prices

Partly mitigated

by regulated tariffs

Strict investment criteria to ensure profitable growth

Set of hurdle rates specific to each segment

WELL DEFINED

INVESTMENT STRATEGY

(1) IRR computed on the cash-flows of a 50Y life fleet (excluding Fessenheim) comparing to a 40Y life fleet

(2) Average performance based on a review of all projects over €50m CAPEX until mid-2016

(3) Scope EDF EN. Based on estimations at 31 December 2016 of revenues from fully consolidated assets. Includes regulated, quasi-regulated and long-term contracted assets

(4) Incentives/penalties during the deployment phase.

Enedis investments excluding Linky

2017-2020 net investments of €12bn

TURPE 5 HTA/BT regulation with 4,1% remuneration of Regulated

Equity and 2,6% remuneration on Regulated Asset Basis (RAB)

6.7% remuneration

on new investments

ENEDIS

INVESTMENTS

(EXC. LINKY)

Regulated

Linky

€4.5bn for the 2014-2021 deployment period

Fully regulated over 20 years: Linky-dedicated RAB

Revenues differed until 2022 remunerated at 4,6%

Pre-tax nominal

return rate of 7.25%

with up to 3%

incentives /

-2% penalties(4)

LINKYRegulated

5FINANCIAL

PROFILE


€10bn

Disposal

program

by 2020

HPC STAKE Sale of 33.5% stake on HPC project to CGN for ~ €0.8bn

(1) Subject to approval from the relevant merger control authorities

(2) Impact on net financial debt

Sale(1) of a 49.9% stake of RTE to Caisse des Dépôts and CNP Assurances RTE

Sale of 100% of EDF DÉMASZ to ENKSZ on 31 January 2017 for ~ €400mHUNGARY

2020 DISPOSAL PROGRAM WELL UNDER WAY

Disposal of a portfolio of c.130 real estate and business assets to Tikehau IMREAL ESTATE

ASSETS

Sale of EDF Trading’s coal and freight activities to JERA TradingTRADING COAL

AND FREIGHT

Finalisation

expected in H1 2017

Finalised

Finalisation

expected in H1 2017

Finalised

Finalised

Disposals signed or finalised since 1 January 2015: ~€6.7bn(2)

5

New

Nuclear

€10bnDisposal

program

over 2015-

2020

FINANCIAL

PROFILE


FRENCH NUCLEAR

PROVISIONS

Decommissioning cost confirmed by external audit(1)

Proven know-how in dismantling PWR reactors: Chooz A plant decommissioning well under

way

50 years life extension of the 900MW fleet, and future extension of the more recent

reactor series of the French fleet is a key part of the Group’s industrial strategy

Anticipated change in discount rate provides visibility: The new proposed formula would

likely lead to a discount rate of 4.1% at end-2017, and 3.9% at end-2018(2)

FRENCH NUCLEAR PROVISIONS COVERED BY DEDICATED ASSETS FUND

(1) French Department of Energy and Climate (DGEC) commissioned an audit on dismantling costs for the existing nuclear fleet and published the results in January 2016. This audit, executed by an external firm, broadly confirmed EDF's estimate for decommissioning costs

including in terms of international benchmarking. Please refer to the release from the French Ministry for Ecology, Sustainable Development and Energy from 15 January 2016, regarding external audit on dismantling costs for the existing fleet.

(2) Under the new formula, the regulatory limit will gradually migrate from its level at 31 December 2016 (4.3%) until by 2026 it is equal to the average constant 30-year rate over the four most recent years, plus 100 base points

(3) As of 31 December 2016, the regulatory coverage ratio for nuclear liabilities eligible for EDF's dedicated assets is 99.8%, and, everything else being equal, would reach 105.3% after finalizing the sale of a portion of the C25 shares planned for H1 2017

GOOD PERFORMANCE

OF THE DEDICATED

ASSETS FUND

Coverage ratio of EDF nuclear liabilities eligible for dedicated assets: 105.3 %(3) (pro-forma post

closing of RTE transaction) as of 31 December 2016

Performance of the Dedicated Assets fund: 5.3% on average per year since 2006

5FINANCIAL

PROFILE


ACTION PLAN TO DELIVER THE GROUP STRATEGY FINANCED BY SEVERAL MEASURES

5

Provide long-term growth

prospects to the Group

A development based on

a significant proportion of

regulated and quasi-

regulated revenues

Higher influence of

international business

Strengthened balance

sheet with “A” credit

rating and stable outlook

secured

Transformation of the

Group

Ambitions

Scrip dividend in

2015, 2016 and 2017

Asset disposal

program

Opex reduction,

Capex optimisation and

improvement of Working Capital

€4bn capital increase

… FINANCED BY SEVERAL MEASURES

Strategy

Current energy price

market

Well-defined

investment strategy

Customers needs

Digitization environment

FINANCIAL

PROFILE


2016€16.4bn 2017

€13.7bn – €14.3bn

2018≥ €15.2bn(1)

2017 AND 2018 GROUP EBITDA TARGETS

Performance plan

Higher nuclear generation

Improved market conditions in France and United Kingdom

Development of service activities

Growth in renewable business

Performance plan

Capacity markets

Gradual improvement of nuclear generation in France

2016 non-recurring positive impacts

Wholesale purchases to balance unavailabilityof the fleet and ARENH demand

Market conditions which remain challenging



NUCLEAR OUTPUT

EBITDA(1)

2017 NET FINANCIAL DEBT/EBITDA(2)

390 – 400TWh

€13.7bn – €14.3bn

≤ 2.5x

55% to 65%PAYOUT RATIO OF NET INCOME EXCLUDING NON-

RECURRING ITEMS(3)

2017 & 2018 TARGETS

(1) At 2016 exchange rate

(2) At 2016 exchange rate and at an assumed discount rate on nuclear provisions of 4.1% in 2017




(6) At 2016 exchange rate. Cash flow excluding Linky, new developments and asset disposals, with an assumed discount rate on nuclear provisions of 4.1% in 2017 and 3.9% in 2018, excluding interim dividend for fiscal year 2018, which will be decided in H2 2018

OPEX(4)

NET INVESTMENTS EXCLUDING LINKY, NEW

DEVELOPMENTS AND ASSET DISPOSALS

-€0.7bn vs. 2015

≥ €15.2bn

~€10.5bn

EBITDA(5)

≥ 02018

CASH FLOW(5)(6)

≤ 2.5xNET FINANCIAL DEBT/EBITDA(5)(6)

50%PAYOUT RATIO OF NET INCOME EXCLUDING NON-

RECURRING ITEMS(3)


OPEX REDUCTION(1) in 2019 vs. 2015

ASSET DISPOSALS OVER 2015-2020

≥ 1 Md€



PAYOUT RATIO OF NET INCOME EXCLUDING NON-

RECURRING ITEMS(2)

BEYOND 2018

At least €1bn

At least €10bn

45% to 50%

BEYOND

2018

Upside from recovery in European and French power prices

Continued investment-fuelled growth on regulated activities and renewables

Supportive regulatory developments (introduction of a carbon price floor, ARENH reform, others)

+

Potential additional upsides

Delivering on

CAP 2030

Appendices


ACQUISITION OF AREVA NP

NEW BUILD: FLAMANVILLE 3 EPR PROJECT

NEW BUILD: HINKLEY POINT C

NEW BUILD: CHINA TAISHAN 1 & 2

EDF ENERGIES NOUVELLES, A LEADING RENEWABLES PLAYER

EDF ENERGIES NOUVELLES: A SUSTAINABLE BUSINESS MODEL

WITH OVER 2.8GW SOLD SINCE 2013, DSSA IS AT THE CORE OF EDF EN’S

BUSINESS MODEL

FOCUS ON FRENCH OFFSHORE WIND

NEW BUSINESSES – ENERGY STORAGE AND DISTRIBUTED SOLAR

FRENCH HYDROPOWER – A DIVERSIFIED & FLEXIBLE FLEET

EDF TRADING, INTERFACE BETWEEN EDF AND THE ENERGY WHOLESALE MARKET

APPENDICES


IMPROVING THE

COMPETITIVENESS

OF THE FRENCH

NUCLEAR INDUSTRY

KEY TERMS OF THE

TRANSACTION

Securing core activities of the Grand Carénage

Areva NP is one of EDF’s key contractors on the investment program

Experience and feedback sharing to reduce industrial risk

Improving control over new nuclear build

Design synergies via integration of engineering know-how in a dedicated platform

(NICE JV)

Improving international offering competitiveness

Development of EPR NM for new wave of French nuclear reactors

Expected completion date in Q4 2017, subject to:

Outcome of the tests on the primary coolant system of the Flamanville 3 reactor

Quality audits at the Creusot, Saint-Marcel and Jeumont plants

Approval from the relevant merger control authorities

EDF to have an exclusive control on NEW AREVA NP

Equity value for 100% of €2.5bn + potential price complements up to €325m

Implied forecasted EBITDA multiple of 8.0x(1)

ACQUISITION OF AREVA NP TO SUPPORT EDF’S GLOBAL NUCLEAR STRATEGY

(1) Normalised 2017 EBITDA pro forma of the acquired scope, excluding large projects


EDF ENERGIES NOUVELLES, A LEADING RENEWABLES PLAYER WITH STRONG TRACK RECORD

EDF Energies Nouvelles’ scope includes all non-hydro renewables activities of the Group, except some assets in Italy (Edison), Belgium (EDF Luminus) and in the UK (50% held by EDF Energy)

EDF EN commissioned its first PV

+ storage project (Toucan, French

Guyana)Strong development of

Operation & Maintenance

activities

Entry into India

EDF Group takes

100% of EDF EN

Entry into Mexico and Israel

Strengthened positioning in

offshore wind

Entry into Morocco, and South

Africa

Entry into Brazil and Chile

First merchant solar PV project

Entry into China

Strong development in

distributed solar PV

(US: groSolar acquisition,

France: “Mon Soleil & Moi”

offering launched)

2011 2012 2013 2014 2015 2016

EDF Group’s platform for the development of new renewables


EDF EN: A SUSTAINABLE BUSINESS MODEL, LEVERAGING KEY COMPETITIVE ADVANTAGES

An integrated player, active across the entire value chain,

with the ability to develop highly competitive projects with high returns

… SUPPORTING

A MODEL

GEARED

TOWARDS

SUSTAINABLE

GROWTH

KEY

COMPETITIVE

ADVANTAGES…

Operations

&

Maintenance

Generation

Asset rotation

ConstructionDevelopment

Extensive and diversified

international footprint

EDF brand name,

with dynamic and flexible

structure leveraging on

local Group synergies

Integrated O&M

skills and capabilities:

operational excellence

Partnerships bringing

strong development

opportunities and local

market knowledge, with

reduced balance sheet

impact

An intensified

development phase

starting 2017, with

gradually growing

CAPEX and a robust

pipeline

A generator aiming

to gradually grow

installed capacity and

output

A strong ability to

maximise value from

selective asset

rotation to cover

corporate and

development costs


WITH OVER 2.8GW SOLD SINCE 2013, DSSA(1) IS AT THE CORE OF EDF EN’S BUSINESS MODEL

EDF EN has an excellent

DSSA track record

DSSA is a self-funding and

Value accretive business model

CONSISTENT

ROTATION OF

OPERATIONAL

ASSETS (EDF EN

NET CAPACITY

SOLD)

RoW

3%

Europe

23%

North America

74%

CUMULATIVE

ASSET

ROTATION

2013 TO DATE

2.8GW

2013 2014 2015 2016

0.7

GW

0.6

GW0.5

GW

1.0

GW

DSSA

ACTIVITIES ARE

AN IMPORTANT

PART OF EDF

EN’S BUSINESS

MODEL

DSSA consists of the disposal of certain

fully-structured projects (typically in

operation and financed)

Allows the execution of additional market

opportunities with superior returns

KEY BENEFITS

OF DSSA

Immediate value crystallization :

Realize premium on capex

Balance portfolio through asset rotation

Increase financial flexibility through

management of net investments

Increased competitiveness due to

lower financing costs due to participation

of a co-investor

DSSA EBITDA / Generation

EBITDA ratio in 2013-16 = c. 45%

(1) Development and sale of structured assets (DSSA)


B

A

Brest

Rennes

Nantes

Paris

Le Havre

Cherbourg

Fécamp

(498MW)

Saint-Nazaire

(480MW)

Courseulles-sur-Mer

(450MW)

B

SUCCESSFUL VALUE CREATION THROUGH A STRATEGIC PARTNERSHIP

IN THE 3 FIRST FRENCH OFFSHORE WIND PROJECTS

B Logistical hubs

A Maintenance centre

Alstom production facility

Project / contractor facility

Wind farms

50%50%

Saint-Nazaire

Courseulles-

Sur-Mer

Fécamp70%

85%

100%

30%

15%

Innovation – Floating offshore

Innovative pilot awarded in France in Nov 2016

Floating foundations allow for higher load factors as they can be placed in particularly windy areas previously untapped

Contract awarded to EDF EN for the installation of three 8-MW turbines on floating foundations in the Faraman area (off Fos-sur-mer)

Eolien Maritime France portfolio

3 offshore wind projects in France

Over 1.4GW of combined capacity

Highly valuable partnership with Enbridge

Total investment costs of c. €6bn

Efficiency increases with economies of scale

Optimised financial structure

Partnering up to share funding, developmentand construction risks

Equity method

FOCUS ON FRENCH OFFSHORE WIND


EDF Store & Forecast

Develops and markets software solutions to forecast and plan real time control for renewable energy production

Key storage projects

Toucan Project (French Guyana)

• 2MW / 4.5MWh storage

• 20-year project life

• Commissioned Dec. 2014

McHenry (Illinois, US)

• 20MW stand-alone storage (grid frequency control)

• Commissioned Jan. 2016

Mafate (Réunion Island)

• 100% solar PV micro grid project with battery + hydrogen storage

West Burton B (Nottinghamshire, UK)

• 49MW battery storage contract with National Grid

ENERGY STORAGE DISTRIBUTED SOLAR

Provides a wide range of photovoltaic installations for homeowners and professionals supporting decentralized generation

Two main business units

EDF ENR (France)

• c. 210 employees / €55m in revenues

• Net installed capacity of 54MWp

• Self-consumption offering “Mon Soleil et Moi”: allows residential customers to track their energy production and consumption and choose to store the excess electricity in their home storage system

groSolar (US)

• c. 55 employees / €64m in revenues

• Developed 150MWp

• Development, sale & installation of PV plants for utilities, corporations, and industries

NEW BUSINESSES – ENERGY STORAGE AND DISTRIBUTED SOLAR


21.9GW

Other

Renewables1.1GW

Hydro20.8GW

433 plants in France, average age of 72 years

Covering the different kinds of hydropower facilities:• Run-of-river / Pondage water / Reservoirs (lake-supplied) /

Pumped storage / Tidal power

Net Renewables Capacity in France

Hydropower France provides ~14GW of storage• Reservoirs: 8.8GW• Pumped storage: 4.2GW

Estimated weekly flexibility needs(1)

Today 2030

+55%

Response time to reach full capacity

of dispatchable units

0GW

14GW

In ~2 minutes

UNIQUE STORAGE VALUE,

CRITICAL FOR THE

ELECTRICITY SYSTEM

AMONG THE MOST

FLEXIBLE AND REACTIVE

GENERATION MEANS

(1) Source: RTE (Bilan prévisionnel 2014)

Allows quick adjustments to within-day fluctuations in the

supply-demand balance

• Consumption peaks

• Non forecasted loss of generation capacity

Hydropower is the most significant contributor to ancillary

services

Only sizeable & cost competitive electricity storage technology

o including the 1.8GW Grand’Maison facility, the largest European storage asset

THE MAIN SOURCE

OF RENEWABLE POWER

IN FRANCE

FRENCH HYDROPOWER – A DIVERSIFIED & FLEXIBLE FLEET


Providing single and multi-product energy solutions for large commercial and

industrial consumers, power generators and retail energy suppliers

EDF TRADING, INTERFACE BETWEEN EDF AND THE ENERGY WHOLESALE MARKET

Operating across all energy commodities and managing assets along the entire

value chain from production, shipping, transportation to storage and supply

Seeking arbitrages and optimising supply strategies

Seeking arbitrage and optimising supply strategies

…AS WELL AS

FOR THIRD

PARTIES

CUSTOMERS

CREATING

VALUE FOR

EDF…

A WHOLESALE

ENERGY

MARKET

SPECIALIST

Interface between EDF and the energy wholesale market providing optimisation

and risk management services as well as access to new markets INTERFACE

One of the largest

marketer of gas and

electricity in North

America

One of the largest

wholesale energy

market traders in

Europe

Top 10 retail

supplier to large

commercial and

industrial users in

North America

Well positioned, extensive geographic footprint and scale of activity

528

632

495

729

2013 2014 2015 2016

in €m

EDF Trading EBITDA

ANNUAL RESULTS 2016 74

In €m 2015 2016 ∆% ∆% Org.(1)

Sales 75,006 71,203 -5.1 -3.2

EBITDA 17,601 16,414 -6.7 -4.8

Net income excluding non-recurring items 4,822 4,085 -15.3

Net income – Group share 1,187 2,851 x 2.4

31/12/2015 31/12/2016

Net financial debt In €bn 37.4 37.4

Net financial debt/EBITDA ratio 2.1 2.3

(1) Organic change at constant scope and exchange rates

2016 KEY FIGURES


Positive impact from optimisation plans: €0.7bn

Net investments(2): €11.8bn, -€0.6bn vs. 2015CAPEX

Working Capital Requirement

(1) Sum of personnel expenses and other external expenses. At 2016 scope and exchange rates. At constant pensions discount rate. Excluding change in operating expenses of service activities

(2) Net investments excluding Linky, new developments and asset disposals. Linky is a project led by Enedis, independant subsidiary of EDF under the provisions of the French energy code

(3) Impact on net financial debt

~€6.7bn(3) of disposals signed or closedDisposal Plan

Reduction in OPEX(1): -€0.3bn vs. 2015OPEX

PERFORMANCE PLAN IN LINE WITH ANNOUNCED TRAJECTORY


In €m 2015 2016 ∆ ∆%

France – Generation and supply activities 5,660 5,692 32 +0.6

France – Regulated activities 3,367 3,301 (66) -2.0

United Kingdom 1,111 806 (305) -27.5

Italy 585 458 (127) -21.7

Other international 922 607 (315) -34.2

Other activities 773 952 179 +23.2

Net investments excluding Linky, new

developments and asset disposals12,418 11,816 (602) -4.8

Linky(1) 119 318 199 +167.2

New developments(2) 916 668 (248) -27.1

Asset disposals (781) (1,139) (358) +45.8

NET INVESTMENTS 12,672 11,663 (1,009) -8.0

(1) Linky is a project led by Enedis, independant subsidiary of EDF under the provisions of the French energy code

(2) New developments: in particular UK NNB, EPR New Models and offshore wind

€11.7bn

Regulated, Linky(1), NNB, net renewables

39%

Unregulated

61%

NET INVESTMENTS UNDER CONTROL

2018 TARGET

~€10.5bn

Net investments


+0.95 -1.09

-1.20

-0.46 +0.28+0.83

2015 2016

United Kingdom

Non-recurring2016 items France -

Purchases/sales on markets(1) France –

Downstreammarket

conditions(1)

Other

France –Generation(1)

Opex(2)

In €bn

-0.50

(1) Estimated figures

(2) At 2016 scope and exchange rates. At constant pensions discount rate. Excluding change in operating expenses of service activities

17.6016.41

GROUP EBITDA

Mainly 2014 tariffadjustment

Mainly France: regulated activitiesand weather impact



(2) Regulated activities: Enedis, Électricité de Strasbourg and islands’ activities

(3) Other activities including EDF EN, Dalkia and EDF Trading

France – Generationand supply activities38%

UK10%

In €m 2015 2016 ∆ org.(1) ∆ % org.(1)

France – Generation and

supply activities6,936 6,156 (780) -11.2

France – Regulated

activities(2) 4,719 5,102 383 +8.1

United Kingdom 2,242 1,713 (276) -12.3

Italy 1,345 641 (681) -50.6

Other international 609 711 129 +21.2

Other activities(3) 1,750 2,091 385 +22.0

Total Groupe 17,601 16,414 (840) -4.8France – Regulatedactivities(2)

31%

OtherInternational

4%

Italy4%

Other6%

16,4 Mds€

Dalkia2%

EDF EN 5%

EBITDA: PERFORMANCE PLAN PARTLY MITIGATING THE REDUCTION IN NUCLEAR OUTPUT AND THE CHALLENGING MARKET CONDITIONS


-1.09+0.86 +0.20 +0.12

-1.20

+0.09

-0.50

+0.74

2015 2016

26 %

51 %

33 %32 %

In €bn




6.94

6.162014 tariffadjustment

Weather(+5.5TWh)

& leap year(3)

Tariffs

Generation(3)

Purchases/ sales on

markets(3)

Downstreammarket

conditions(3)

Opex(2) Other

Organic change: -11.2%(1)

EBITDA FRANCE –GENERATION AND SUPPLY ACTIVITIES

Mainly end of Green and Yellow tariffs, sharpcompetition and price effecton new commercial offers

O/w nuclear generation:

-€1.27m (-32.8TWh)


+0.12+0.14

+0.12

2015 2016


32 %

4.72

5.10

Weather and leap year(2)

Marketconditions(2)

Other(2)

EBITDA FRANCE – REGULATED ACTIVITIES

In particular decrease in purchase cost of network losses

In €bn




Positive impact of net installed capacity in 2015 (1GW): 9% increase in output to 11.3TWh, mainly from wind and in North America

Particularly strong DSSA(3) activity, especially in the United States and in Europe (France, Portugal, Greece)

Significant portfolio of projects under construction (1.8GW), of which ~50% in new geographical locations (India, China, Brazil, Chile)

In €m 2015 2016 ∆% ∆% Org.(1)

Sales(2) 1,116 1,169 +4.8 +0.3

EBITDA 818 861 +5.3 +6.1


(2) As of 2016, breakdown of sales across the segments, before inter-segment eliminations. The 2015 figures have been restated in this regard

(3) Development and Sale of Structured Assets

EDF ÉNERGIES NOUVELLES: SUCCESS OF THE DEVELOPMENT MODEL BASED ON ASSETS ROTATION, CONTINUED GROWTH IN RENEWABLE POWER OUTPUT


Favourable weather conditions

Negative impact of gas price decrease

Strong commercial dynamic in France in the network, industrial and service activities

Successful implementation of performance plans

In €m 2015 2016 ∆%∆%

Org.(1)

Sales(2) 3,289 3,600 +9.5 +2.1

EBITDA 217 252 +16.1 +8.3


(2) As of 2016, breakdown of sales across the segments, before inter-segment eliminations. The 2015 figures have been restated in this regard

DALKIA EDF TRADING

In €m 2015 2016 ∆%∆%

Org.(1)

Sales(2) 662 1,008 +52.3 +58.2

EBITDA 495 729 +47.3 +56.8

DALKIA AND EDF TRADING: COMMERCIAL DEVELOPMENTAND FAVOURABLE MARKET POSITIONS

High volatility on European power and gas markets, in particular during H2 2016

Good performance in the LNG trading business


In €m 2015 2016 ∆%

EBITDA 17,601 16,414 -6.7

IAS 39 volatility 175 (262) na

Amortisation/depreciation expenses(1)

and provisions for renewal(9,111) (8,007) -12.1

Impairments and other operating income and expenses (4,385) (631) -85.6

EBIT 4,280 7,514 +75.6

(1) Extension to 50 years of the accounting depreciation period of the PWR 900MW series excluding Fessenheim (please refer to the press release published by EDF on 29 July 2016)

EBIT LIFTED BY EXTENSION OF DEPRECIATION PERIOD OF NUCLEARPLANTS(1) AND BY LOWER IMPAIRMENTS


In €m 2015 2016

Impairments (3,195) (1,001)

o/w thermal assets and Edison E&P (2,179) (315)

o/w CENG (271) (462)

Cigéo storage provision(1) (509) -

European Commission decision on RAG(2) (354) -

Other, including IAS 39 volatility 423 (233)

Total non-recurring items net of tax (3,635) (1,234)

(1) Please refer to EDF press release published on 15 January 2016

(2) Please refer to press releases published by EDF and the European Commission on 22 July 2015

NON-RECURRING ITEMS NET OF TAX


In €m 2015 2016 ∆ %

EBIT 4,280 7,514 +75.6%

Financial result (2,588) (3,333) +28.8%

o/w impact of discount unwinding (2,812) (3,417) +21.5%

Income tax (483) (1,388) +187.4%

Share of net income from associates 192 218 +13.5%

Deducting net income from minority interests (214) (160) -25.2%

Net income – Group share 1,187 2,851 +140.2%

Excluding non-recurring items 3,635 1,234 -66.1%

Net income excluding non-recurring items 4,822 4,085 -15.3%

CHANGE IN NET INCOME


In €m 2015 2016

EBITDA 17,601 16,414

Non cash items and change in accrued trading income (1,610) (1,703)

Net financial expenses disbursed (1,252) (1,137)

Income tax paid (1,508) (838)

Other items o/w dividends received from associates and joint-ventures 271 323

Operating cash flow 13,502 13,059

∆ WCR 132 (1,935)

o/w impact of tariff adjustments(1), VAT included 775 (697)

Net investments (12,672) (11,663)

o/w Linky(2), new developments(3) and asset disposals (254) 153

Cash flow after net investments 962 (539)

(1) Tariff adjustment of 2012 (impacting 2015 and 2016) and of 2014 (impacting 2016)

(2) Linky is a project led by Enedis, independant subsidiary of EDF under the provisions of the French energy code

(3) New developments: in particular UK NNB, EPR New Models and offshore wind

CHANGE IN CASH FLOW (1/2)


(1) Please refer to press releases published by EDF and the European Commission on 22 July 2015

In €m 2015 2016

Cash flow after net investments 962 (539)

European Commission decision on RAG(1) (906) -

Dedicated assets 217 10

Cash flow before dividends 273 (529)

Dividends paid in cash (1,746) (454)

Interest payments on hybrid issues (591) (582)

Group cash flow (2,064) (1,565)

CHANGE IN CASH FLOW (2/2)


+13.1

(1.9)

(11.7) (1.0) +1.5

December2015

December2016

(37.4) (37.4)

(1) Net investments including Linky, new developments and asset disposals. Linky is a project led by Enedis, independant subsidiary of EDF under the provisions of the French energy code

(2) With no significant impact on Group cash flow

Operating cash flow ∆ WCR

Net investments(1)

Dividends and hybridbonds remuneration

Other

STABLE NET FINANCIAL DEBT

In particular weather

effect(2), CSPE collection

and tariff adjustments

Mainly forex effect and

partial disposal of CSPE

receivable

In €bn


FRANCE NUCLEAR GENERATION: 2017 OUTLOOK

Ongoing outages at Bugey 5, Fessenheim 2, Gravelines 5 (3rd ten-year visit), Paluel 2 (3rd ten-year visit)

Volume of planned outages for maintenance taking into account continued work under the “Grand carénage” industrial programme

2017 nuclear output target: 390-400TWh

Appendices


CHANGE IN OPEX(1) BY SEGMENT

(1) Opex (operational expenses) corresponding to the sum of personnel expenses and other external expenses


Consolidated financial statements

Financing & cash

management

Strategy &

investmentsEDF EN France

International & other activities

Markets

In millions of Euros 2015 2016 ∆ ∆% ∆(2) ∆%(2)

France – Generation and supply

activities9,837 9,591 -246 -2.5 -93 -1.0

France – Regulated activities 4,950 4,951 +1 - -19 -0.4

United Kingdom 2,492 2,024 -468 -7.5 -87 -3.6

Italy 939 896 -43 -2.8 -44 -4.7

Other International 735 760 +25 +1.0 +7 +1.0

Other activities 3,102 3,223 +121 - -39 -1.3

Group 22,055 21,445 -610 -2.0 -275 -1.3


CHANGE IN FINANCIAL RESULT

In millions of Euros 2015 2016 ∆

Cost of gross financial debt o/w interest expenses on financing operations

o/w net foreign exchange gain on debt and other

(1,994)(1,955)

(39)

(1,827)(1,907)

80

+167+48

+119

Discount expenses (2,812) (3,417) -605

Other financial income and expenses 2,218 1,911 -307

Financial result (2,588) (3,333) -745


Financing & cash

management

Strategy &



Markets


SHARE IN NET INCOME OF ASSOCIATES AND JOINT VENTURES

In millions of Euros 2015 2016 ∆

RTE 457 403 -54

Alpiq (192) - +192

CENG (284) (485) -201

Other 211 300 +89

TOTAL 192 218 +26


Financing & cash

management

Strategy &



Markets


-265

+381 -1,776

11,663

-1,075

GROSS AND NET(1) 2016 INVESTMENTS

(1) Net investments including Linky, new developments and asset disposals

In millions of Euros

Gross financial

investmentsDisposals

Subsidies and

interest Other

Gross operating investments

Net investmentsGross investments

Including disposal

plan: -€1,139m

14,398

Maintenance

Development

Regulated

20%

49%

31%

40%

26%

34%

14,779 Maintenance

Development

Regulated


Financing & cash

management

Strategy &



Markets


GROSS OPERATING INVESTMENTS(1)

(1) Gross operating investments including Linky and new developments

(2) Enedis, Électricité de Strasbourg and island’s activities

2015

€14.8bn

11%

Italy

France regulated(2)

Other activities

4%

3%

United Kingdom

13%

€14.4bn

26%

3%

2016

Other International

EDF Énergies Nouvelles 40%

France – Generation and supply activities

France – Generation and supply activities

39%

Other activities

4%

Other International

5%

25%

France regulated(2)

4%Italy

12%United Kingdom

EDF ÉnergiesNouvelles

11%


Financing & cash

management

Strategy &



Markets


GROSS OPERATING INVESTMENTS FOR DEVELOPMENT(1)

(1) Corresponding to gross operating investments on Group existing or new assets, enabling mainly an improvement of technical performance or increased generation capacity of the Group, as

opposed to maintenance investments which enable maintaining generation assets or portfolio of the entity

(2) Renewables including hydro power

(3) Italy excluding renewables

€4.9bn

Italy(3) & gas activities

12%

NuclearNew Build

34%

6%Energy Services

9%Other

39%

Renewables(2)

2015

36%

Other

5%Energy Services

7%

Italy(3) & gas activities

8%

NuclearNew Build

44%

Renewables(2)

€4.9bn

2016


Financing & cash

management

Strategy &



Markets


SIMPLIFIED BALANCE SHEET

(1) Including assets held for sale and loan to RTE

(2) Including €104m of financial assets affecting financial debt

(3) Including hedging derivatives and financial debt related to companies held for sale

(4) Including €1,458m of financial liabilities impacting net financial debt

ASSETS(In millions of Euros)

31/12/2015 31/12/2016

Fixed assets 149,439 147,626

O/w Goodwill 10,236 8,923

Inventories and trade

receivables36,973 37,397

Other assets 69,536 66,238

Cash and equivalents and

other liquid assets(1) 22,993 25,159

Assets held for sale(excluding cash and liquid

assets)(2)

- 5,220

Total Assets 278,941 281,640

LIABILITIES(In millions of Euros)

31/12/2015 31/12/2016

Shareholders’ equity (Group Share) 34,749 34,438

Net income attributableto non-controlling interests 5,491 6,924

Specific concession liabilities 45,082 45,692

Provisions 75,327 74,966

Financial liabilities(3) 60,388 61,230

Other liabilities 57,904 56,281

Liabilities linked to assets held for sale (excluding financial liabilities)(4)

- 2,109

Total Liabilities 278,941 281,640


Financing & cash

management

Strategy &



Markets


GROUP PROVISIONS

31 December 2015 31 December 2016

In millions of Euros CurrentNon

CurrentTotal Current

NonCurrent

Total

Provisions for back-end nuclear cycle 1,733 20,179 21,912 1,463 20,823 22,286

Provisions for nuclear decommissioning

and last cores251 24,646 24,897 208 24,020 24,228

Provision for decommissioning excluding

nuclear facilities 75 1,447 1,522 63 1,506 1,569

Provisions for employee benefits 1,033 21,511 22,544 1,100 21,234 22,334

Other provisions 2,262 2,190 4,452 2,394 2,155 4,549

Total Provisions 5,354 69,973 75,327 5,228 69,738 74,966


Financing & cash

management

Strategy &



Markets


46,809 46,514

+734

-2,004 +2,667 -1,552

-2,044 +1,617

+287

GROUP NUCLEAR PROVISIONS

1) Expenditures in the income statement. O/w: France: cost of discount unwinding for +€1,502m, and effect of change in the discount rate for the provisions not related to an asset: +€680m; United

Kingdom: cost of discount unwinding: +€475m

2) Effect of a lower net discount rate for changes in asset-backed provisions (matching assets and underlying assets): France +€662m (20 bp decrease, 2.7% vs. 2.9%), UK +€955m (30 bp

decrease, 2.7% vs. 3.0%) having as a matching provision a variation in the receivable corresponding to amounts reimbursable by the Nuclear Liabilities Fund (NLF) and by the British government

3) Other changes: in particular assessments related to the revision of the cost estimate of the PWR fleet in operation. Provision for decommissioning for -€451m; provision for long-term management

of MAVL waste: +€162m

4) Excluding Fessenheim

-1 423

Reductions

Allowances

Discount unwinding(1)

31/12/201631/12/2015

Foreignexchange

adjustments


Otherchanges(3)


Financing & cash

management

Strategy &



Markets

Extension of depreciation period

of the 900MW fleet(4) at 01.01.16

Net discount rate decrease(2)


FRANCE NUCLEAR PROVISIONS

1) Excluding Fessenheim

36,130

- 2,044 +1,502

+1,342 -897

Including: - P&L financial expenses: +€680m- Balance sheet asset effect: +€662m

Including provision for dismantling of units still in operation: -€451m

Discount

expenses of the

year

Extending the accounting

depreciation period of the

900MW(1)

Effect of a lower discount

rate

31/12/201631/12/2015

Other


36,033


Financing & cash

management

Strategy &



Markets


2015

Conclusions of the external audit commissioned by the DGEC on the cost of dismantling published in January 2016(1), stating that the overall audit confirms EDF's estimate of the cost of decommissioning its nuclear fleet

FRANCE NUCLEAR PROVISIONS: 2016 CHANGE

Decommissioning costs –plants in operation

2016

Extensive revision of the cost estimate for the decommissioning of the plants in operation, taking into account the DGEC audit recommendations

Limited changes of the cost estimate and related provisions: -€0.5bn(2)

Three-yearly review of decommissioning costs on1st generation closed plants performed, allowing the integration of feedback of current work

Update on the GCR(3) plants industrial decommissioning scenario

Update on provisions for a net amount of €0.3bn

Decommissioningcosts –closed plants

Update of the evaluation of the decommissioning costs of the 1st generation plants

These annual studies confirm the changes previously made and do not lead to a significant change in the provisions

Cost of the Cigéo project set at €25bn(4) by the Ministerial Order(1), which substitutes the 2005 estimated benchmark cost of €20.8bn on which EDF group used to rely

€0.8bn increase in provision

Costs on CIGEO storage project

Continuation of the design studies (ANDRA)

Application for the construction of the facilities in 2018 (approval to be received in 2021)

1) Please refer to the release from the French Ministry for Ecology, Sustainable Development and Energy from 15 January 2016

2) Lower provision for counterparty of underlying assets

3) GCR: Gas-cooled reactor

4) At the economic conditions of 2011


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FRANCE NUCLEAR PROVISIONS

In millions of Euros 31/12/2015Net

AllowancesDiscounting

Otherchanges

31/12/2016

Total provisions for back-end nuclear cycle 18,645 (953) 1,366 566 19,624

Provisions for management of spent fuel 10,391 (893) 637 523 10,658

Provisions for long-term management

of radioactive waste8,254 (60) 729 43 8,966

Total provisions for nuclear dismantling

and last cores17,485 (3) 816 (1,889) 16,409

Provisions for dismantling

power stations14,930 (3) 723 (1,528) 14,122

Provisions for last cores 2,555 0 93 (361) 2,287

TOTAL FRANCE NUCLEAR PROVISIONS 36,130 (956) 2,182(1) (1,323) 36,033


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NB: Regarding the allocation to Dedicated Assets for nuclear provisions coverage, please refer to the slide “Dedicated Assets” on P.55

(1) Cost of unwinding the discount: +€1,502m; impact of actual discount rate change for provisions with no asset on the balance sheet: +€680m


DISCOUNT RATE OF NUCLEAR PROVISIONS IN FRANCE (1/3)

The discount rate determined under the Company’s usual method is4.2% at 31 December 2016, assuming inflation of 1.5%

December 2015 December 2016

Nominal discount rate 4.5% 4.2%

Regulatory ceiling rate(1) 4.6% 4.3%

Inflation 1.6% 1.5%

The decrease in the actual discount rate from 2.9% to 2.7% resulted in an increase in nuclear provisions of €1,342m in 2016, including €680m in financial expenses and €662m in an increase in the value of assets on the balance sheet

(1) Calculation under current scheme

For more details, please refer to the 2016 consolidated accounts, section 29.1.5, “Discounting of provisions related to nuclear generation and sensitivity analyses”


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The discount rate applied for nuclear provisions in France must comply with two regulatory limits. Since 2015 (Order of 24 March 2015), the discount rate applied must be lower than: a regulatory maximum “equal to the arithmetic average over the 120 most recent months of the constant 30-year rate (TEC 30

years), observed on the last date of the period concerned, plus one point”

and the expected rate of return on assets covering the liability (dedicated assets)

The French Ministers of Economy and Finance, and of Environment, Energy and Sea, announced their decision to change the calculation formula for the regulatory limit on discount rates with effect from 2017 this decision will be set out in an amendment to the ministerial order of 21 March 2007, itself modified by the order of 24 March

2015

this amendment comes after joint work by the nuclear operators and public authorities to establish a formula for a maximum discount rate, taking into account the long time horizons of nuclear liabilities and prudential objectives for secure financing of long-term nuclear expenses

Under the new formula, the regulatory limit will gradually migrate from its level at 31 December 2016 (4.3%) until by 2026 it is equal to the average constant 30-year rate (TEC 30 years) over the four most recent years, plus 100 base points

Regarding the evolution of rates, the new formula should mean that future years see smoother changes in the regulatory limit than under the previous formula


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The new proposed formula for the limit would likely lead to a discount rate of 4.1% at end-2017, and 3.9% and end-2018

All things being equal, such a change would generate an increase in provisions estimated at:

€735m at 31/12/2017 (including €588m for provisions covered by dedicated assets)

€1,470m at 31/12/2018 (including €1,176m for provisions covered by dedicated assets)

This increase in nuclear provisions, in particular those subject to dedicated assets, does in no way prejudge the direct transposition onto the Group’s Net financial debt of the dates under consideration, given that the amount to be allocated for each year may vary, particularly depending on:

the profitability of the dedicated assets and the resulting coverage rate (no need to allocate once the coverage rate has reached 110%)

the period within which the allocation is made, the regulations allowing ministers to set a maximum period of 3 years to make the allocation (Article 14 of the amended decree of 23 February 2007 and Article L594-5 of the French Environmental Code)


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FRANCE NUCLEAR PROVISIONS: SENSITIVITY ANALYSIS TO THE DISCOUNT RATE

Sensitivity to the discount rate

Provisions

(discounted value)

On balance sheet provisions

On pre-tax earnings

In millions of Euros +0.20% -0.20% +0.20% -0.20%

Front-end nuclear

Management of nuclear fuel 10,658 (211) 277 182 (195)

Long-term management of radioactive waste 8,966 (475) 534 381 (432)

Dismantling and last cores

Dismantling of nuclear plants 14,122 (586) 619 127 (138)

Last cores 2,287 (85) 90 - -

Total 36,033 (1,357) 1,470 690 (765)


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FINANCIAL IMPACTS OF EXTENDING THE AMORTISATION PERIOD TO 50 YEARS OF THE 900MW(1) FLEET

P&L

Balance sheet

Extending the accounting depreciation period of the 900MW fleet(1) reduces assets depreciation charges and the cost of unwinding the discount. For 2016, impacts are estimated as follows:

(In billions of Euros) 30/06/16 31/12/16

Depreciation charges and cost of unwinding the

discount+0.5 +1.0

Net income +0.3 +0.7

Decrease in nuclear provisions as of 1st January 2016: €2.0bn, including €1.7bn in the scope of the Dedicated Assets

(1) Excluding Fessenheim

(2) Pro forma after disposal in 2017 of 49.9% of the entity owning RTE


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GROUP PROVISIONS FOR EMPLOYEE BENEFITS

(1) Net liabilities

(2) Non-current financial asset

(3) Actuarial gains and losses arising from differences in non-current financial assets (€-516m) and other actuarial gains and losses (€-45m)

22,492(1) 2249223461

22767

21775 21 96921,766(1)

+1,530

-561(3)

-694

-992-9 568(2)

-1 423

2016 net

expense

31/12/201631/12/2015

Change, scope and other

Employer’s contribution

to funds Benefits

paid


Actuarial

differences

52(2)

Provisions

22,334

Provisions

22,544Including :Change in interest rates on liabilities and assets: +€1,379mDecrease in the commitment in kind Energie France, in particular following the reform of the CSPE mechanism): -€1,742mDifferences in experience and differences in demographic assumptions: -€198m


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DEBT AND LIQUIDITY

In billions of Euros 31/12/2014 31/12/2015 31/12/2016

Net financial debt

Net financial debt/EBITDA

34.2

2.0x

37.4

2.1x

37.4

2.3x

Debt

Bonds

Average maturity of gross debt (in years)

Average coupon

43.6

13.2

3.29%

48.5

13.0

2.92%

51.9

13.42

2.73%

Liquidity

Gross liquidity

Net liquidity

28.5

19.3

33.7

22.9

36.9

23.4


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NET FINANCIAL DEBT

In millions of Euros 31/12/2014 31/12/2015 31/12/2016

Financial debt 55,652 64,183 65,195

Derivatives used to hedge debt (3,083) (3,795) (3,965)

Cash and cash equivalents (4,701) (4,182) (2,893)

Liquid financial assets available for sale (12,990) (18,141) (22,266)

Loans to RTE (670) (670) -

Net financial debt reclassified (IFRS 5) - - 1,354

Net financial debt 34,208 37,395 37,425


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GROSS FINANCIAL DEBT AFTER SWAPS

Breakdown by type of rate Breakdown by currency

(1) Mainly HUF, CHF, PLN, BRL, CAD and JPY

Floating rate46%

Fixed rate54%

EUR 79%

GBP 14%

Other(1)

3%USD 4%

54%

46%

31/12/15

19%

75%

3%3%

31/12/15

31/12/16 31/12/16


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-

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

EUR GBP USD CHF JPY Other

BREAKDOWN OF BOND DEBTS BY CURRENCYIn millions of Euros, before swaps

Of which (in €m eq.) 2017 2018 2019 2020

EUR 609 1,487 477 1,191

USD - - - -

JPY 1,654 - 3,059 2,692

CHF 649 - - -


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EDF, A BENCHMARK GREEN BONDS ISSUER WITH THE EQUIVALENT OF €4.5BN ISSUED IN 5 TRANCHES AND 3 CURRENCIES

Issue date(1) Maturity

(in years)

Nominal

amount (millions of

currency units)

Currency

Eligible investments in the use of funds

Allocated funds

as of 31/12/16Construction of new

renewable capacity by

EDF EN

Renovation and

modernization of existing

hydroelectric facilities in

metropolitan France

11/2013 7.5 1,400 EUR 100%

10/2015 10 1,250 USD 97.6%

10/2016 10 1,750 EUR -

01/2017 12 19,600 JPY -

01/2017 15 6,400 JPY -

(1) Date of funds reception


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Green Bond N.2 ($1.25bn-Oct. 2015): $1,220m allocated to the construction of 6 wind projects in the United States at end December 2016

Of which 1 project was already partially funded by the 1st EDF Green Bond

Share of Green Bond funded capacity ownded by EDF at the end December 2016:

Green Bond N.1 (November 2013): 53%

Green Bond N.2 (October 2015): 55%

GREEN BONDS: A TOTAL OF 3.6MTCO2/YEAR AVOIDED BY THE FUNDS CONTRIBUTING TO 18 RENEWABLE PROJECTS

The detailed list of projects will be published in the 2016 EDF reference document

(1) Sum of the gross impacts of each project funded by the corresponding Green Bond

(2) Sum of the impacts of each project weighted by the share of total investment funded by the corresponding Green Bond

(3) Of which one project received funding from both Green Bonds

Funds

raised

Funds

allocated

Projects having

received GB funding

Share funded by the

GB

Gross total capacity of GB funded projects

(in MW)

Expected output(in TWh/year)

Expected avoided

CO2 emissions

(in Mt/year)

Gross(1) Net(2) Gross(1) Net(2) Gross(1) Net(2)

Green Bond N.1 November 2013 €1.4bn €1.4bn 13 projects(3) 57% 1,755 976 7.0 4.1 3.3 1.8

Green Bond n°2

Octobre 2015$1.25bn $1,22bn 3 projects(3) 74% 1,109 814 4.3 3.1 3.0 2.1


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COMPARATIVE DEBT RATINGS

Sources: rating agencies

(1) Update of the rating and outlook of EDF Group by S&P on 21 September 2016

(2) Update of the rating and outlook of EDF Group by Fitch on 28 September 2016

(3) Update of the rating and outlook of EDF Group by Moody’s on 26 October 2016

Baa3

BBB+ A- A A+

Baa1

A3

A2

A1

EDF

Engie

E.ON

Iberdrola

Vattenfall

RWE

SSE

Moody’s

ratings

S&P ratings

EnelBaa2

BBBBBB-

S&P Ratings

Moody's Ratings

Fitch Ratings

EDF A- stable(1) A3 stable(2) A- stable(3)

Engie A- negative A2 stable n/a

E.ON BBB+ negative Baa1 negative BBB+ stable

Uniper BBB- stable n/a n/a

Enel BBB stable Baa2 stable BBB+ stable

RWE BBB- stable Baa3 negativeBBB watch

negative

Iberdrola BBB+ stable Baa1 positive BBB+ stable

SSE A- negative A3 stable BBB+ stable

Endesa BBB stable n/a BBB+ stable

Vattenfall BBB+ negative A3 negative BBB+ stable

Innogy BBB- positive n/a BBB+ stable


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DEDICATED ASSETS

(1) The coverage ratio of the provisions is 105.4% excluding the statutory caps prescribed by Order N. 2007-243

8.2

14.3

14.9 4.0

5.20.5

9.8

15.8

14.15.6

4.30.5

In billions of Euros

Dedicated assetsin realisable value

Provisions

CSPE

receivable

Provisions for LT management of

radioactive waste


of nuclear plants

Provisions

23.523.6

CSPE

receivable

EDF Invest

Financial portfolio and liquid assetsProvisions for LT

management of radioactive waste

Provisions for last cores(1)


of nuclear plants

25.724.4

31/12/2015 31/12/2016

Provisions forlast cores(1)

As of 31 December 2016, the regulatory coverage ratio for nuclear liabilities eligible for EDF's dedicated assets is 99.8%, and, everything else being equal, would reach 105.3% after finalising the sale of a portion of the C25 shares planned for H1 2017(1)

Regulatory obligation to allocate €1,095m to dedicated assets

EDF will, in the month following the closing of the financial statements, allocate this amount to the dedicated assets, in compliance with the letter of 10 February 2017 from the French Ministers of Economy and Finance, and of Environment, Energy and Sea

EDF

Invest

Financial portfolio and liquid assets


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Dedicated assetsin realisable value


EDF DEDICATED ASSETS PERFORMANCE

Financial portfolio performance of +6.2% in 2016, close to its benchmark (+6.8%)

Markets volatility with a supportive year-end that has offset a difficult start. The performance reflects prudent management, notably underweighting emerging equities at the beginning of the year, in a context of geopolitical changes especially in the United Kingdom, in the United States and in Italy which were unfavorable to active fund management

EDF Invest posted a 2016 performance of + 7.9% excluding RTE and + 40.1% in total including RTE (impact of the CDC / CNP operation)

In December 2016, EDF and the consortium CDC / CNP signed an agreement for the sale of 49.9% of the share capital of RTE, highlighting a revaluation of RTE. The other 50.1% will remain allocated to dedicated assets

In addition, EDF Invest continues to grow, notably with the 50/50 acquisition with the DIF fund of Thyssengas (the third gas transport operator in Germany) and with Atlantia of a controlling interest in the Côte d'Azur Airports

A portion of the CSPE(5) receivable was sold in December 2016, including a portion allocated to dedicated assets; the proceeds from the sale of this share (€894m) were reinvested in the dedicated assets

Shares and bond funds

EDF Invest(2) Shares and equity funds

CSPE receivable(3)

5,633

6,866

7,992

4,286

Portfolio breakdown as of 31 December 2016(4)

25,677(4)


Performance in 2016: +11.1%(1)

Cash

900

ListedFinancial Portfolio

(1) Full-year performance before tax, including revaluation of RTE. The performance of dedicated assets excluding RTE was +5.7%

(2) Including a 75.9% stake in company C25 (holding 100% of RTE shares) for a realization value of €3,905m

(3) CSPE receivable after hedging, including a revaluation of €103m as a result of the gain on the portion sold

(4) In realisable value

(5) Share of 26.4% of the CSPE receivable sold for a total sale price of €1,538m


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CAPACITY MECHANISM IN FRANCE: STARTING ON 01.01.2017

Established by the NOME law, approved by the European Commissionon 8 November 2016

Final rules issued by order on 29 November 2016

Definition of the criterion of security of supply by the public authorities: 3h of shedding on average per year

Objective: to remunerate the means of generation and load shedding useful to security of supply

Operated by RTE

Definition of calculation methods and identifying peaks

Ex-post calculation of each supplier’s obligations and the actual availability of certified facilities

Issue of capacity certificates, controls and management of capacity registry and settlement of gaps

Provision of information on supply and demand for certificates

Sources : DGEC, RTE

Suppliers’ obligation Capacity (generation,

demand-side response)

Demand for capacitycertificates

Offer of capacity certificates

Calcul de l’obligation

Capacitycertification

Availabilitycommitment

Verificationof certificates held

vs. peak consumption

Control of effectivecapacity availability

Capacity matches peak demandSecurity of supply safeguarded

Trade of

certificates

Capacity price

3 hours

Loss of load

expectation

standard

Calculationof the obligation


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Continuous over-the-counter exchanges

Capacity auctions organized by EPEX Spot

Delivery Y year Year + 1Year - 4 Year - 4

Certification of existing

capacities

Certification of new capacities (including

demand-side response)

Adjustments by operators, at progressive cost

Implementation by suppliers of peak-load shedding measures in their customer portfolio

Estimated amount of obligations of suppliers

RTE controls the effective

availability of the certified

capacity

RTE calculates the

final amount of

obligations

Financial

settlement if

capacity is

insufficient

Financial

settlement of

deviations for

capacity not

available

Year + 3

1 auction in year Y

15 auctions on the 4 years before the delivery year

1 auction in year

Y+1

1 auction at the

beginning Y + 3 Capacity

certificates

market for

year Y

Deadline for

transfer of

certificates

Sources : RTE

CAPACITY MECHANISM IN FRANCE: STANDARD CALENDAR


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CAPACITY MARKET IN 2017 AND IMPACT FOR EDF

First capacity auction 2017 organized by EPEX Spot on 15 December 2016

22.6GW of capacity certificates traded

Price of capacity: €10/kW (reference price for 2017)

EDF certified 76GW capacity for 2017

EDF, both a capacity-holding operator and a entity subject to capacity obligations as supplier, holds a positive net position which it can sell on the market

Financial impact for EDF

Only part of the certified capacity value can be recovered

ARENH volumes subscribed by alternative suppliers or included in EDF's supply offers including Blue tariffs, Exeltium, LCD(1) tariffs, are delivered with certificates of capacity

2017 EBITDA impact will be linked to the timing of the pass-through of the cost of capacity to the different categories of end-customers


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12.44.0

40.8 41.5

H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017

ARENH: VOLUMES ALLOCATED TO ALTERNATIVE SUPPLIERS

Maximum total sales volume by EDF to competing suppliers (excluding network losses): 100TWh

Volumes sold in 2015: 16.4TWh

No volume sold in 2016

Forecasted volumes for 2017:

40.8TWh for H1

41.5TWh for H2

(1) 2017 volumes are subject to change during the year by application of legal, regulatory and contractual provisions (intra-annual window, cancellations, defaults, etc.)

(2) The total quantity of product sold for the second half of 2017 could change according to the demands that could take place at the subscription window of 16 May 2017

(1) (2)


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REGULATED SALES TARIFFS IN FRANCE: CHANGE IN 2016

In 2016, tariffs (excluding taxes) changed on the 1st August:

-0.5% on average for residential customers and -1.5% on average for small companies (Blue tariff)

These changes include increasing network tariffs (TURPE) effective 1st August: + 1.1% for distribution

As of 31 December 2015 Yellow and Green regulated tariffs have ended for consumption sites that have subscribed a capacity strictly greater than 36 kVA

62

45

22.5

37

Average bill breakdown, VAT included (Blue residential customer)

Blue tariff, VAT excluded: -0.7%

Source: CRE deliberation report of the Committe of 13 July 2016, which has redefined 2015 levels

TURPE

€106.2/MWh €105.5MWh

+€0.5/MWh

-€1.2/MWhEnergy

component+

commercialisation

+ catch-up

€166/MWh

CSPE

TURPE

Generation and supply costs

Taxes

2015 2016


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REGULATED ASSET BASE IN FRANCE

(1) CPI: Consumer price index covering all of France excluding tobacco of year Y-1

K: CRCP reconciliation term, within a range of +/-2% (CRCP: The CRCP mechanism (Compte de Régularisation des Charges et des Produits) corrects for the

differences between forecast and effective expenses and products, from one year to another)

(2) Excluding financial assets and assets under construction and after regulatory restatement of investment subsidies

Under TURPE 3, tariffs included only industrial D&A’s. Under Turpe 4, provision for renewal as well as all D&A’s are included

(3) Difference between NBV of fixed assets and the sum of specific concession accounts, provisions for renewal, investment subsidies and where appropriate, financial

loans

Distribution

TransmissionNBV of fixed assets(2)

= €13.6bn

NBV of fixed assets(2)

= €49.4bn

Regulated equity(3)

= €5.6bn

6.125 %

Tariff increase

+1.1% as 01/08/2016

+2.71% as 01/08/2017

Indexation

IPC + K(1)

+1.4% as 01/08/2016

+6.76% as 01/08/2017

Regulated Asset Base

as of 01/01/2017

Nominal remuneration rate

before corporate tax Change

2.5%

6.1%


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Documents

- 1Q 2017 Sales - Investor Presentation · (5) At 2016 exchange rate and assumption for 2018 power prices in France on volumes not hedged as of 31.12.2016: ≥ €36/MWh (6) At 2016