EDF / 2018 Reference document

PRESENTATION OF EDF GROUP Description of the Group's activities

Gas assets and projects 1.4.6.2.2 Supply sources 1.4.6.2.2.1

EDF Trading’s registered office is located in London. The company has around 870 employees and is governed by the UK’s financial market regulator, the Financial Conduct Authority. Among other things, EDF is responsible for accessing wholesale markets on behalf of DOAAT (see Section 1.4.3 “Optimisation activities for EDF in France”). European Electricity market EDF Trading is a leading participant in the European electricity wholesale market trading over 2,000 TWh annually. The company provides a full range of risk management services to EDF group’s asset operators and to third parties. It has an extensive geographic footprint and scale of activity which makes it able to adapt quickly to changes in the market and to develop new business where appropriate. In 2018, EDF Trading continued its optimisation services for the Group’s French flexible assets. The company also developed bespoke risk management structures for EDF in France to help it manage exposure to the ARENH regulation. EDFT increased its services in Italy following the launch of its power partnership with Edison in 2017. The company also concluded a large number of transactions for EDF’s C&I customer business. European Gas EDF Trading is also a leading participant in the European gas wholesale market trading over 764 bcm annually. It optimises EDF group entities’ gas assets including production, transmission rights, long-term supply contracts and re-gasification and storage capacities. This enables it to support the EDF group and third party customers with complete gas wholesale market solutions. In 2018, EDF Trading increased its oil and gas hedging business with Edison and extended its optimisation services of the Dunkirk LNG terminal. The company also provided market access to EDF’s Commercial Division and Dalkia including flexibility services following the new French regulation around gas storage. North American power and gas EDF Trading is a leader in the North American wholesale electricity markets with an extensive geographic footprint. It is also one of the top power and gas marketers, trading with over 700 counterparts across North America. It serves a portfolio of customer contracts including long-term electricity, natural gas and environmental products. EDFT NA contracts or manages on average 215 million cubic metres of natural gas storage capacity and transacts approximately 140 million cubic metres per day. Additionally, it provides (financial and physical) hedging and congestion management services to a portofolio of 300GW spread across five ISOs. In 2018, EDF Trading increased activity with the E&P sector, building relationships with producers to purchase their production and optimise the company’s supply obligations. EDF Energy Services EDF Energy Services is EDF Trading’s dedicated customer platform in North America providing comprehensive energy risk management services to C&I businesses, power generators and retail energy aggregators. It offers environmental products, natural gas and electricity to a portfolio of non-residential customers and is ranked in the top five of retail electricity suppliers in North America. Additionally, it has supply agreements with retail energy aggregators who supply electricity and gas to residential and small commercial customers throughout the US and Canada. EDF Energy Services is one of the top providers of generation services to third-party power stations in the US, dispatching over 41GW of generation output across 147 power stations and more than a dozen Load Demand Response customers. Some of the EDF ES customers are European entities or are present in Europe, allowing EDF to serve their needs on a global scale. In 2018, EDF Energy Services continued to expand its footprint signing or renewing a significant number of contracts. The company now serves 26 of EDF’s Global Top customers who have a presence in Europe and North America. In 2018, EDF Energy Services acquired TransCanada’s Power Marketing retail portfolio giving the company access to a wider set of customers and progressing its strategy of expanding its customer base to include smaller commercial and industrial customers.

In Europe, the Group’s gas and LNG supply comes from short- and long-term gas markets and from a diversified portfolio of long-term contracts, originating from Qatar, Russia, the North Sea and North Africa. In the United States, the majority of the supplies originates from the gas markets. In the rest of the world, specific contracts have been concluded to ensure the supply of the Group’s gas power plants. In order to continue being able to supply its customers, the Group aims to strengthen and diversify its medium and long-term sources of gas. Infrastructures 1.4.6.2.2.2 Gas pipelines Apart from its various rights to transport capacity in the European network, the EDF group participates, through its Edison subsidiary, in infrastructure projects for gas importation (see section 1.4.5.2.3.2 “Hydrocarbon business”). LNG regasification terminals On 30 October 2018, EDF sold its 65% stake in the Dunkirk LNG terminal (in which Fluxys holds a 25% stake and Total a 10% stake) to Fluxys, in partnership with Axa Investment Managers – Real Estate and Crédit Agricole, and a financial consortium made up of Samsung Securities Co. Ltd., IBK Securities Co. Ltd. and Hanwha Investment & Securities Co. Ltd. EDF remains the terminal's main long-term shipper in line with the Group's gas strategy. EDF also retained the right to use 80% of the Rovigo offshore terminal's regasification capacity, i.e. 6.4Gm 3 a year, through Edison (see section 1.4.5.2 “Italy”). The Group also holds regasification capacities in the terminal of Zeebrugge (Belgium). Small Scale LNG supply chain In 2018 Edison began to build a Small Scale LNG supply chain to sell LNG in Italy comprising an onshore depot and a small scale LNG terminal in order to help develop a low-carbon sustainable fuel for transport by road and sea (see section 1.4.5.2.3.2 “Hydrocarbon business”). Storage In Germany, the EDF group has storage for natural gas in salt cavities situated in Etzel. The aboveground facilities are operated through a 50/50 joint venture with EnBW. EDF has around 190 million cubic metres of volume capacity in this salt cavity storage. With respect to storage activities of the Group in Italy and in the United Kingdom, see respectively, sections 1.4.5.2.3.5 “Regulated activities” and 1.4.5.1.2.2 “Thermal generation and gas storage”. The Group also holds storage rights in the Netherlands, Belgium and France. Exploration and Production (E&P) 1.4.6.2.2.3 The Group is developing its upstream activities in hydrocarbons exploration and production, through Edison (see section 1.4.5.2 “Italy”). Proven reserves amounted to 209 million barrels of oil equivalent, with 18.1 million barrels of oil equivalent produced in 2018. Optimisation and trading: EDF Trading 1.4.6.3 EDF Trading (EDFT) is the EDF group’s exclusive interface with the wholesale energy markets providing market, optimisation and risk management services to the EDF group as well as third parties. The company operates across Europe, North America and Asia in the wholesale markets for electricity, natural gas, LNG and LPG, environmental products and coal and freight (through its partnership with JERA Trading). EDF Trading is one of the largest wholesale energy market traders in Europe and in North America. Through its EDF Energy Services subsidiary, it is one of the main independent providers of energy management services for power generation companies and retailers and a top five retail electricity supplier to commercial and industrial users in North America.

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EDF I Reference Document 2018