EDF TradingAnnual Review 2014

EDF Trading is part of the EDF Group operating throughout the value chain across all energy commodities.

EDFT provides wholesale market solutions that optimise and enhance the businesses of the EDF Group and our third party customers.

Introduction

Chairman’s Statement 4 – 5Chief Executive’s Statement 6 – 7EDF Trading 8 – 9The EDF Group 10 – 11

Our Markets 12 – 13

Origination, Business Development 14 – 17 and Group Integration Power – Europe 18 – 21Natural Gas – Europe 22 – 25Power and Natural Gas – North America 26 – 31EDF Energy Services 32 – 35Liquefied Natural Gas (LNG) and 36 – 39 Liquefied Petroleum Gas (LPG) Gas Production 40 – 43Coal and Freight 44 – 47Environmental Products 48 – 51Flexibility Optimisation 52 – 55

Our Approach 56 – 57

Executive Committee 58 – 59Control Environment 60 – 63Risk Management 64 – 67Regulation and Compliance 68 – 69Culture 70 – 71Community Support 72 – 73

Governance and Finance 74 – 75

Board of Directors 76 – 77Financial Summary 78 – 81

EDF Trading delivered a strong performance in 2014 coordinating Group activities across the global wholesale energy markets. Its services help optimise Group assets and play an important role in our planning and implementation of new strategies and initiatives.

Philippe Torrion Chairman, EDF Trading Board, EDF Executive Committee Member, Group Senior Executive Vice President, Innovation, Strategy and Planning, EDF

EDF Trading is a core component of the EDF Group, optimising EDF Group assets and providing a platform for our development into new energy services and geographies. The EDF Group has an extensive portfolio of generation, storage, transmission and distribution assets and EDFT works with Group companies helping us to mitigate risk, secure sustainable revenues and realise added value. EDF Trading partnered with various Group businesses during the year and activities include managing EDF Energy Nouvelles’ wholesale market exposure in Spain, performing EDF Energy’s mandatory power market making obligation in the UK, diverting a number of Edison’s LNG cargoes, optimising EDF’s Crystal gas storage facility in Germany, providing market access for EDF Polska in Poland, offering new customer services for EDF’s commercial team and fostering

co-operation between our respective retail businesses in Europe and North America.

In recent years EDFT has launched and grown some exciting businesses which all complement Group activities including EDF Energy Services, EDFT’s North American retail operation. Most recently, EDFT has entered the LPG wholesale market.

The energy markets never stop evolving. New regulatory and technology platforms, a growth in renewable energy production and the upstream gas revolution in North America are just some of the many factors driving change.

I’m confident that EDFT will continue playing a significant role within the EDF Group providing core wholesale market access and driving new technological solutions to meet our energy requirements.

Chairman’s Statement

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Our role as the wholesale market interface for the EDF Group gives us a competitive advantage. We use this to help the Group optimise its assets, manage market risks, generate sustainable revenue streams and create opportunities for future business developments.

John Rittenhouse Chief Executive, EDF Trading

I often tell our employees that being part of the EDF Group gives us a competitive advantage in the wholesale energy marketplace. Our relationship with the Group and the support it brings offers us financial stability, an extensive and diverse portfolio of assets to optimise and the ability to trade in many countries; all of which help create a strong, stable business. This is a very privileged position.

The EDF Group also benefits by having a strong wholesale market presence as a core competence.

EDF Trading provides efficient risk management and wholesale market supply. We are also a pathfinder, identifying new opportunities, new geographies and new business for the Group.

A good example of this is our commercial and industrial retail business in North America, EDF Energy Services, which we have grown organically and is now a top 10 US non-residential retail electricity provider. In 2014, we began the process to establish EDF Energy Services as a separately managed customer focused entity

within the EDF Trading group. EDF Energy Services will form a foundation for the EDF Group’s future expansion into the North American retail energy sector, and EDFT will continue its role as supplier of wholesale energy to EDF Energy Services.

Many competitors exited the wholesale energy markets in 2014 due to poor trading opportunities and regulatory pressures. Despite the challenges of this environment, EDF Trading continued to develop new business under the asset-backed Group focused model that has been the foundation for our consistent and strong results over the years.

As you read through our review of 2014, you will see how we have used our wholesale market presence providing energy optimisation services to support the EDF Group and our third party customers’ many different businesses and areas of activity. Looking forward, we will remain focused on identifying opportunities to apply our asset-backed, physical optimisation business model in those commodities and markets where the Group is becoming more active.

Chief Executive’s Statement

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The wholesale market specialists EDF Trading is a wholesale energy specialist. We are global in our perspective, asset-backed and operate along the value chain in power, natural gas, LNG, LPG, coal, freight and environmental products.With offices and operations throughout Europe, Asia and North America, we apply our expertise in the physical and financial markets to support the EDF Group and third party customers with a wide range of wholesale market services including market access, asset optimisation, risk management, supply and logistics.

A multi-commodity offering EDF Trading manages an extensive portfolio of upstream assets mostly consisting of power generation, natural gas production and long-term off-take agreements in power, natural gas, LNG and coal.

EDF Trading is a leader in the global wholesale energy markets operating across all energy commodities and active along the entire energy value chain – production, shipping, transportation, storage and supply. We combine our skills and resources to optimise and add value to the assets controlled by the EDF Group and our third party customers.

EDF Trading

Providing worldwide logistics We support the EDF Group and third party customers with midstream assets ranging from ocean-going dry bulk carriers to inland rail and barge logistics, dry bulk terminals, LNG re-gasification and underground gas storage. We also have extensive power transmission and gas interconnector capacities across Europe and North America.

Dedicated retailer services Downstream, EDF Trading has worldwide supply agreements with commercial and industrial consumers of power, natural gas, LNG and LPG, industrial retail aggregators and utilities. In North America we have established EDF Energy Services, a dedicated commercial and industrial retail business for power, natural gas and environmental products.

Platform for EDF Group development EDF Trading serves as a pioneer and platform for EDF Group development into new energy services and geographies.

A trusted partner Fundamental to all that we do is our culture in which decisive managers and talented people balance innovation with precise procedural and compliance controls and a rigorous approach to risk. We trade from a position of financial stability and robust liquidity and have a Moody’s A3 credit rating.

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Every day, millions of people turn to EDF Group companies for the power and gas they need for their homes, businesses and communities. The Group is a global leader in energy production and supply and a true innovator in low carbon energy technologies.

The EDF Group

A world leader in energyThe EDF Group operates around the world and is active throughout the energy value chain. It has significant interests in power generation, gas production and storage, environmental initiatives, transmission networks and retail consumer sales.

As of 31 December 2014, the Group’s generation capacity exceeded 136 GW. It transmitted across 1.46 million km of networks and served 38.5 million customers.

Power generation The EDF Group has unparalleled depth and breadth of experience in power generation and engineering. Its expertise encompasses the design, building, operation and maintenance of power plants fuelled by all types of energy.

Supply and distribution EDF Group companies manage power transmission and gas interconnector capacities across Europe and North America. Through a wholly-owned subsidiary the EDF Group channels energy to the whole of Europe.

Marketing and wholesale The EDF Group’s experience in electricity and gas supply in Europe and North America crosses many different regulatory environments and serves more than 38.5 million customers.

Expert trading, optimisation, sales and marketing activities ensure the security and cost effectiveness of that supply.

Research and development With an R&D team of 2,125 people, the EDF Group spent €650 million last year conducting leading-edge research. The aim is to make the world a better place by improving access to electricity, fostering innovations with tangible customer benefits, cutting CO

2 emissions by

developing alternatives to fossil fuels and building safer power grids.

Corporate strength In 2014, the EDF Group employed approximately 158,000 people worldwide and had sales of around €72 billion. It is listed on the Paris stock exchange, a member of the CAC40 index, and has an A+ stable S&P credit rating.

Jean-Bernard Lévy, Chairman and CEO of the EDF Group.

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EDF Trading is a service business. Our purpose is to work alongside the EDF Group and third party customers providing a specialised interface to the wholesale energy markets. We operate worldwide in the power, natural gas, LNG, LPG, coal and environmental products sectors.

In 2014, the longer-term trends of increasing renewable energy production, North America’s shale revolution and China’s massive appetite for commodities all reflected on supply and demand.

Individual commodity sectors were impacted by collapsing oil prices, regulatory developments, political unrest and unusual weather patterns. These events created periods of volatility for certain geographies and energy commodities.

Our ability to deliver effective supply, logistics and optimisation services within such an environment is testament to the agility of the EDFT global, multi-commodity, asset-backed model. Through all the fluctuations, we are able to identify tangible business benefits for our customers.

Justin RowlandChief Commercial Officer, Trading

Our Markets

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Origination, Business Development and Group IntegrationThe EDF Trading origination team structures energy market transactions outside of the liquid market that provide bespoke products to the EDF Group and our third party customers. Our global presence allows us to provide these services across all the major energy markets in Europe, North America and Asia.

This gives our customers the ability to structure transactions that connect these markets and therefore optimise their global energy exposure.

Identifying and capturing opportunities, creating value

EDF Trading’s origination team structures bespoke transactions across all energy commodities, regions and tenor to allow the EDF Group and third party customers to optimise their energy portfolios.

Our team is not only located in the main hubs of EDFT, namely London, Paris, Houston and Singapore but also in a number of smaller regional offices to be closer to its customers. The energy markets in 2014 were affected by some exceptional factors.

In North America, the extreme cold weather in the first quarter put pressure on power and gas supplies and temporarily drove prices to record levels and extreme volatility.

In Europe, prices and supplies were affected by macro events, namely the crisis in the Ukraine, unrest in the Middle East and, later in the year, the fall in oil prices.

Apart from the above mentioned headlines, the overall theme for the year was one of low volatility and pricing. It was also a year where financial institutions continued to exit the marketplace.

Within such an environment, the strength of our origination team to identify and capture opportunities came to the fore. With our multi-commodity global capabilities, we supported customers by providing stability and value in the medium and long-term.

The advantage of EDF Trading’s business model is that it is inherently flexible. EDF Trading creates incremental value for our customers when commodity markets move, supply chains are disrupted and supply and demand balances are changing. Whatever is happening in the marketplace, supported by a robust platform, we are able to apply our experience to identify opportunities that benefit our customers and the EDF Group.

Philipp BüssenschüttChief Commercial Officer Origination and Business Development

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Origination, Business Development and Group Integration Activities – Origination and Business Development EDF Group integration

Operating from offices in Europe, Asia and North America, the origination team works jointly with our trading desks and the Group integration team to support the EDF Group and third party customers.

Structured transactionsOur origination team identifies and structures transactions that can encompass all commodities and geographies. We do this to help customers optimise their assets, manage risks and meet their energy needs.

As an example, for Europe, the team worked with EDF Energy in the UK on a number of long-term power transactions with large power consumers. We also structured an innovative temperature contingent gas contract with an energy retailer in France. In North America, the team helped to add more than 1,400 MW to EDFT’s energy management portfolio.

Our Group integration team is central to our relationship with the EDF Group in that it collaborates with the Group to identify if, how and when our energy market services can be used beneficially. Where potential for cooperation exists, the team works with the origination and relevant trading desks to prepare structured proposals and implement the market services.

In 2014 the team increased its breadth of coverage with Group entities and the scope of services offered.

Extracting additional value from EDF’s assets in France In 2014, we enhanced our flexibility optimisation management services with the Group’s optimisation and trading team in France to include pump storage assets in addition to its coal, CCGT and hydro reservoir plants.

Expanding services to EDF Energy in the UKWe transferred ownership of the Hole House UK gas storage facility to EDF Energy while retaining our market optimisation role. We also agreed to perform EDF Energy’s mandatory power market-making obligation imposed by Ofgem.

Optimising the EDF Group gas portfolio EDFT continued its role of optimising the EDF Group’s gas portfolio. We established a hedging programme and transacted approximately 2TWh of gas and associated flexibility.

We also extended our contracts to optimise EDF’s Crystal and Bergermeer gas storage facilities on the TTF. In addition, we optimised EDF’s gas interconnector capacities across North West Europe.

Collaborative activities for 2015 and beyond During the year, we undertook a number of new initiatives with EDF Group companies which included a new project with EDF Energy to integrate its coal logistics team into EDFT’s coal and freight business creating a single coal platform serving the Group’s UK requirements.

Close cooperation continues with EDF to establish optimisation programmes in preparation for the commissioning and operations of the Dunkirk LNG terminal in 2015.

We continued to strengthen our relationship with Edison in Italy. In 2014 we successfully diverted a number of its LNG cargoes and continued to work with them on their gas flow business.

Also, we have begun discussions with Dalkia following its integration into the EDF Group last summer. Dalkia is one of the largest gas purchasers in France.

Expanding our flow businessThe EDFT flow desk provides market access and execution services for the EDF Group and third party customers. It operates across all the physical and financial energy markets creating structures in a wide range of volumes in the short and medium-term.

In 2014, we expanded our services to German and Austrian energy users. We also supported EDF in France by extending flow services to its major commercial and industrial customers. In North America, our flow desk was particularly active at the beginning of the year providing gas and power services during the cold wave that hit North America.

Evolving the EDFT businessOur origination team secures the physical and contractual asset positions that not only strengthen EDFT’s existing business, but also help us capture opportunities in new markets, countries and commodities.

The origination team was involved in EDFT’s recent entry into the LPG market. We agreed with a leading US provider of midstream energy services to acquire medium-term LPG export capacity on the Gulf Coast and also agreed with an end-user customer in Asia for the supply of LPG.

Extending cooperation to new Group entitiesWith EDF Polska in Poland, we completed a new exclusive power and emissions market access agreement.

For the first time, we entered into agreements with EDF Energies Nouvelles and signed electricity market access agreements to manage its wholesale market exposures in Spain and to manage and dispatch one of its large wind farm facilities in Texas.

Supporting EDF and its major customers EDFT provided a range of wholesale energy market services to EDF’s commercial team and its major customers in France. This included co-operating on tenders, extending our market access services to its customers and providing hedging programmes.

We also began fostering links between our retail business activity in North America and EDF Group businesses in Europe with regard to sharing best practices and serving energy intensive customers for EDF’s global locations.

Fabien BremontHead of Group Integration

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Power – Europe

Finding value in a stable marketplace

EDF Trading’s comprehensive coverage of the European wholesale power market enabled us to continue capturing opportunities during 2014 when the business environment was characterised by low volatility in both pricing and demand.

A warm winter in the first quarter set the pattern for a year in which there were no serious weather extremes. We did experience market fluctuations in the spring due to political instability in Eastern Europe and also in the autumn when there was disruption to the nuclear fleet in Belgium. But, in both instances, we had the breadth of resources to manage the situation and maintain support for our customers.

The power sector continues evolving with new gas-fired plants coming on stream. We also saw a marked increase in renewables with significant growth in wind and solar power generation.

Against such a background, EDF Trading continued providing dependable wholesale market services to add value to and optimise the assets owned or operated by the EDF Group and our third party customers.

©EDF, William Beaucardet, Power Plant, France.

EDF Trading is a major participant in the European wholesale power markets. We add value to the businesses of the EDF Group and third party customers by providing a range of tailored services including market access, risk management and asset optimisation.

Source EDF Group power stations Third party power stations

Services Wholesale market access Asset optimisation Risk management 24/7 intraday services Fuel supply Virtual power plant services Interconnector transmission capacity Grid operator scheduling services Flow desk services

Supply Wholesale customers

EDFT through the value chain:

John GreyHead of European Power

This year’s low volatility and weak prices created a challenging marketplace. We continued to capture opportunities and create value because of our in-depth market knowledge, diverse portfolio of positions and ability to transact across borders.

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Power – Europe Activities

Understanding the dynamicsEDFT has a unique perspective on European wholesale power. Our coverage of all the significant national and international markets gives us a clear insight as to the dynamics affecting each country and their interaction across the continent. This allows us to monitor and analyse events such as interconnector capacities, flows and price differentials to better identify and capture opportunities.

Our use of data combined with the physical resources we manage enables us to accurately hedge market risks, maximise asset values and secure supplies for the EDF Group and third party customers.

Third party customer supportThroughout the year, our Flow team transacted with many third parties including utilities, large consumers, producers, financial houses and oil companies.

Notable activities include a framework agreement with a Swiss power company to transact 10 TWh of power over the next two years, and a five year supply contract with a UK water utility. We also established business relationships with a number of Stadtwerke and industrial customers in Germany and became a market-maker on the German, French and Italian wholesale energy markets.

Adapting to new regulationsThe European regulatory landscape continues to change in terms of market design, financial regulation and competition. Working closely with the EDFT regulation team, we have evolved our power business protocols and liquidity provisions to ensure full compliance with the new regulations, including REMIT and EMIR.

It was noticeable in 2014 that, with the high costs of regulatory compliance and the low volatility of energy prices, many financial institutions left the marketplace.

Increased intraday servicesThe increasing number of renewable energy providers and the intermittent nature of their output has led to significant growth in the European intraday market. EDFT began strengthening its intraday team in 2012 and we now offer a comprehensive, 24/7, pan-European service.

©EDF, Michel Monteaux, Power Plant, France.

©EDF, Vincent Bourdon, Pylon, France.

John GreyHead of European Power

EDF Group supportEDFT provides market access, asset optimisation and wholesale market services to EDF Group companies on a continual basis.

We provided market access for EDF Polska in Poland, for EDF Bert in Hungary and for EDF’s commercial division in France through an agreement with a major car manufacturer. We agreed to support EDF Energies Nouvelles in Spain with hedging services and began acting as a market-maker for EDF Energy in the UK.

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Natural Gas – Europe

©EDF, Jean-Louis Burnod, Re-gas Terminal, France.

This has been a challenging year with significant unpredictability around supply, demand and pricing. Through it all, the EDF Trading business model has proved resilient. Drawing on our experience, insights and managed assets, we have consistently delivered value to our customers.

Marcello RomanoHead of European Gas and Flow

EDF Trading is a leader in the European wholesale gas markets and acts throughout the natural gas and LNG value chain. We operate on all the principal gas hubs and developing markets to support EDF Group and third party businesses with structured optimisation solutions.

Source LNG supply contracts worldwide EDF Group North Sea natural gas production

Services Procurement and supply Wholesale market services Pan-European interconnector capacity Pan-European pipeline capacity Nominations into the European gas network Dispatch management Gas storage management LNG tanker contracts Regasification capacity at European terminals International export agreements Hedging services Flow desk services

Supply EDF Group power stations Third party power stations Wholesale customers

EDFT through the value chain:

Short-term unpredictability

The increasing availability and cost competiveness of LNG will ultimately unite wholesale gas into a global marketplace. The European market is on the cusp of change over the next few years as significant new flows of LNG enter the market from Australia and North America. In the short-term, however, Europe remains susceptible to more regional supply and demand fluctuations.

During 2014, the European wholesale gas market was subject to intermittent volatility. Political unrest in Eastern Europe created uncertainty around supply programmes, which led to greater use of stored gas and an emphasis on maintaining high storage levels. In parallel, the price of some natural gas and LNG supplies fell because of their link to collapsing oil prices. Adding to this, the warm weather experienced throughout the year reduced normal demand patterns.

With the depth and breadth of our worldwide activities, EDF Trading is well positioned to accommodate changing dynamics. The experience of our wholesale gas team and the insights gained from our global coverage enable us to optimise the assets we manage and continue reliably delivering value to the EDF Group and our third party customers.

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Natural Gas – Europe Activities

A coordinated businessEDF Trading has strategically developed a coordinated approach to its European wholesale gas business.

Intelligence gathered via our pan-European asset-backed natural gas business, customer flow desk transactions and from our global LNG business gives us a unique understanding of the marketplace. We use this insight in combination with the breadth of our resources to access the most appropriate channels and better manage supply streams, price differentials and asset optimisation for the benefit of our customers.

Optimising the EDF portfolioEDFT supports the EDF Group with a dedicated, customer focused, optimisation capability for its European gas businesses including power generation plants, storage facilities, pipeline capacity and interconnector capacity.

Our services range from procurement, supply, logistics and contract management to portfolio analysis, pricing, hedging and reporting.

Notable activities during 2014 included managing gas optimisation for EDF Energy’s new CCGT plant at West Burton in the UK, optimisation of EDF Energy’s gas storage facility at Hole House in the UK, and optimisation of EDF’s Crystal gas storage facility in Germany. We also expanded our customer flow business to support EDF’s commercial division in France and Edison in Italy.

Enhancing our European footprintDuring the year we identified and captured opportunities to further enhance our pan-European gas wholesale capabilities.

We began preparations to enter the Spanish wholesale gas market to complement our LNG activities in the region, we expanded storage optimisation activities in France, Germany and Holland and we are also pursuing opportunities for expansion of our wholesale market activities in Eastern Europe.

Flow desk servicesThe slow decline of gas prices during 2014 and the uncertainty of prices looking forward has created a preference among some customers for transacting in smaller volumes over shorter timescales. Our flow desk supported such customers with standard transaction market access and execution services across a range of volumes in both the short and medium-term.

Marcello RomanoHead of European Gas and Flow

©EDF, Julien Goldstein, Gas pipelines, Italy.

©EDF, Jean-Louis Burnod, LNG re-gas terminal, France.

Supporting third party customersEDFT transacts with many third party customers across Europe. Significant transactions this year included acquiring large quantities of natural gas from one of Germany’s largest distributors and supplying gas and asset optimisation services to multiple storage facilities across Germany and Holland.

We also continued to expand our transacting and origination relationships with a number of Stadtwerke and industrial customers in Germany and France.

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Managing a challenging environment

EDF Trading is a trusted leader in the North American wholesale power and natural gas markets. Our expertise and coverage of these markets enables us to implement comprehensive strategies that provide market access, monitize portfolios and create value for our clients.

We partner with EDF Energy Services to provide wholesale market access and commodity services to energy management clients, commercial and industrial consumers and retail energy providers.

During 2014, the energy markets continued evolving to reflect the increasing availability of shale gas, the growth of renewable energy sources and the decline of coal-fired generation.

Additionally, an extreme weather system settled over Canada and North America to create a period of persistent cold in which temperatures reached record levels. Within such a challenging environment, during the weather extremes and the warm summer that followed, EDFT’s strategy and platform proved its resilience.

We worked with EDF Energy Services to provide generators with the fuel required to continue running their plants, maintained supplies to trading partners and successfully delivered against all our contract obligations. We also provided transaction support and creative products to our existing and new power and natural gas customers.

Our platform and strategy in both power and natural gas has always been focused on the operational needs of our trading counterparties and clients. In 2014, despite extreme weather conditions and fundamental infrastructure challenges, we delivered our commitments and proved our worth as the market’s most dependable partner to do business with.

In North America, EDF Trading is a major player in the power and natural gas wholesale markets. We apply our market expertise to provide our partners with a comprehensive range of market, optimisation and risk management services.

EDFT through the value chain:

Power and Natural Gas – North America©Shutterstock, Bikeriderlondon, Electricity Pylons, Texas.

Source Long-term tolling contracts Natural gas supply contracts EDFT natural gas production Long-term third party gas productionEDF Energy Services clientsTerm gas storage contracts

Services Wholesale market servicesRisk managementHedgingNodal pricingGas storage across the USA and CanadaUSA and Canada pipeline capacityInterconnector capacity

Supply EDF Energy ServicesTrading partnersGas asset ownersGeneratorsLDCs and utilitiesMunicipalities and CooperationsWholesale Retail Energy Providers (REPs)

Stan HortonHead of East Power and Gas Trading

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Power – North America Activities

Weather resistantThe extreme weather conditions at the beginning of 2014 proved the robust nature of the EDFT business model. While the Northeast markets recorded record loads and outage events, we successfully delivered on all of our wholesale power supply obligations and found ways to provide creative solutions to our trading partners. Additionally, we provided liquidity and hedging services to our retail energy provider partners who, as a result of the extreme cold weather, faced an increase in load and supply.

Comprehensive market coverageEDFT is active coast to coast and present in all deregulated markets. We began transacting in the newly opened SPP and Entergy markets in addition to our previously existing SERC, VACAR, FRCC, MISO, PJM, NYISO, ISO NE, WECC, CAISO and ERCOT market operations.

During 2014, we were consistently ranked in the Top 10 of Platts Megawatt Daily power rankings.

Managing congestionOur FTR (financial transmission rights) and nodal teams successfully managed the congestion that occurred during the period of extreme cold weather.

Throughout the year, the teams worked with our flow desk and provided support to load serving clients on how to best manage congestion rights.

Support for Group businessesDuring 2014, we optimized positions for EDF Energy Services’ commercial and industrial clients. We also continued providing hedging services to EDF Group businesses in North America.

Arun EamaniHead of Nodal and FTR Trading

©Shutterstock, Robert Cicchetti, Polar Vortex January 2014, New York.

©EDF, Philippe Dollo, Wind Farm, Minnesota.

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Natural Gas – North America Activities

Wholesale market servicesEDFT’s upstream, midstream and downstream positions provide support to counterparties throughout the value chain. With our range of wholesale market services, we optimise assets, secure income streams and help create a competitive advantage for our clients.

Comprehensive transport networkContinuous development of our transportation network with leased and managed assets gives us the ability to manage gas deliveries to customers across the North American continent. Our pipeline transportation agreements extend throughout the USA, Canada and into Mexico. We also manage capacity for gas utilities and exploration and production companies. In 2014, we despatched to market an average of 6.5 bcf per day. EDFT is one of the market’s largest gas storage lessors and has facilities throughout the major producing and consuming regions. Our long-term storage capacity averaged 28 Bcf throughout 2014.

Extensive end-user customer baseEDFT consistently ranks in the top 5 of NGI’s list of the largest gas marketers in North America and trades with over 500 wholesale customers. We also partner with EDF Energy Services to provide broad based wholesale natural gas solutions to their wide range of customers.

Managing the extreme weather conditions Throughout a three month period of persistent extreme cold, despite severe power plant outages, network loading and fuel switching, we provided continuous support to our customers. EDFT not only met obligations, but met the broader needs of the market and proved that it is a reliable and strong counterparty for customers along the value chain.

Notable TransactionAmong the new transactions concluded in 2014, EDFT reached agreement with a major gas production company to manage a portion of their gas supply and optimise their natural gas transport positions.

©EDF, Philppe Eranian, Gas facility, Brasil.

©EDF, Philippe Dollo, New York.

Stan HortonHead of East Power and Gas Trading

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EDF Energy Services

Stability in a transitory marketplace

EDF Energy Services originates and delivers energy solutions for large commercial and industrial users, retail energy providers and power generators. Drawing on our expertise of the wholesale power, natural gas and environmental markets, we structure single and multi-product, medium to long-term programmes encompassing services ranging from supply and dispatch to hedging and wholesale supply.

2014 was a challenging year in that it highlighted the transitory status of the North American energy environment. The energy infrastructure has not kept pace with the shale revolution and many energy users and suppliers were confronted by very real physical problems during the extreme weather in the first quarter.

Similarly, the significant supplies of shale gas stabilised prices at a low level to the extent that many financial houses have left the marketplace, thus leaving customers looking for stable counterparties to transact with.

Throughout the weather extremes, our business model and expertise proved robust. EDF Energy Services not only met their obligations to existing customers, but secured additional customers by providing exceptional service under extraordinary market conditions. Within the marketplace we are recognised for our long-term commitment. With the credibility of being part of the global EDF Group, we are well positioned to continue growing our customer base.

Mary Anne BrelinskyManaging Director, EDF Energy Services

The extreme cold weather of 2014 illustrated the strength of our client-focused business model. Our employees worked tirelessly to ensure we fulfilled our obligations and continued delivering value to our customers.

EDF Energy Services is EDF Trading’s business for commercial and industrial, power generation, asset management and retail energy providers in North America. We support each customer with unparalleled wholesale market access and custom energy solutions delivered within an easy to access, proactive account management framework.

EDF Energy Services through the value chain:

Source Two thousand trading counterparties Generation management Producer services Environmental products supply contracts

Services Demand response Electricity supply Natural gas supply Environmental products supply including RECs Carbon services Risk management and hedging services Market analysis and reports Weather risk products Specialized data and billing systems Online information portal Mobile application

Supply Power station owners Large commercial and industrial end-users Retail energy aggregators

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EDF Energy Services Activities

Customer focused deliveryExceptional service is at the heart of EDF Energy Services. We work as partners with our customers to establish the best product combination to meet their business objectives. In turn, each customer solution is delivered within a dedicated account management framework backed by detailed market data, fundamental analysis and state-of-the-art technologies.

Upstream customer services EDF Energy Services has an expanding footprint across the North American power sector. We are the largest energy optimisation provider for third party US power generators and manage approximately 22 GW of natural gas, renewable, hydro and coal generation.

Flexibility is inherent in our services. Depending on the need, we provide power generation customers with structured energy management agreements addressing all aspects of asset management. Our services include dispatch, scheduling, origination, fuel supply, demand response and risk management.

Active in the WMBE sectorOur Anahau Energy business, which transacts in those energy sectors reserved for WMBE (women and minority business enterprise) suppliers, continued building its customer base. We work together to originate and supply customers who choose or are mandated to purchase from a WMBE provider.

To help our customers achieve their strategic goals, we support them with bespoke, single and multi-product, medium to long-term supply programmes and a range of added value services including hedging and wholesale market access.

Increased customer transactions The volume of business through our flow desk continues to rise in response to market needs for short or medium-term transactions. The desk provides standard transaction market access and execution services across a wide range of volumes in both the short and medium-term.

Downstream customer services Deregulation continues to gain momentum across North America in both the natural gas and power markets. EDF Energy Services is currently active in 14 deregulated states and provinces throughout the USA and Canada. With a portfolio of more than 400 commercial and industrial customers, we serve approximately 2000 MWs of peak load and deliver approximately 350,000 MMBtu/d of gas.

Our business model provides market access and liquidity to retail suppliers who serve mass market customers. Our flow desk provides physical supply, risk management, and hedging services to help these suppliers manage their portfolios.

Advanced technologiesThe application of advanced technologies is an important value added service.

We have real-time scheduling operations for our energy management and retail clients. Also, to support multi-site, multi-state customers, we have recently introduced a new electronic billing system that enables integrated, cross-state invoicing throughout all the deregulated markets we currently serve.

Our SCADA (supervisory control and data acquisition) solution has been positively received by customers. It provides a set of systems, communications technologies and NERC compliant processes that enable real-time control and monitoring of generation and load resources.

SOAR (scheduling online and reporting) continues to be a customer favourite. On one site, a customer can view asset data, market pricing and how the asset is interacting with the ISO. Reports and data can be produced to provide insight into the asset’s performance and help make optimisation decisions.

The SOAR mobile application continues to be very popular allowing for information to be viewed remotely.

The SOAR retail application was recently rolled out to retail power and gas customers and provides real-time usage data, market pricing, invoicing and reporting capabilities.

Supporting EDF Group businessesIn North America, we are working with EDF Renewable Energy to optimise some of their merchant plants. Additionally, we are collaborating to develop products and services for customers looking to incorporate renewable energy into their energy plans and portfolios.

From an international perspective, our US-based commercial and industrial origination team has been working with colleagues in EDF Energy in the UK and EDF in France to explore the development of tailored energy solutions for shared multi-national customers.

Mary Anne BrelinskyManaging Director, EDF Energy Services

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LNG and LPG©EDF, Jean-Louis Bernod, Gas Tunnel, France.

Matthew ArnoldGlobal Head of LNG and LPG

We have been strategically developing our LNG capabilities to stay ahead of the fundamental changes occurring in the wholesale gas marketplace. Each development adds even more flexibility to our capabilities and creates new optimisation opportunities for our customers.

EDF Trading is one of the leading participants in the global LNG market, offering services along the value chain including supply, logistics and terminal capacity. In 2014, we entered the complementary LPG market enhancing our services to the EDF Group and third party customers.

EDFT through the value chain:

Source EDFT gas producing wells Third party gas producing wells Third party gas suppliers Third party LPG suppliers

Services Wholesale market services Gas storage Interconnector capacity Pipeline capacity LNG tanker contracts International export agreements Regasification facilities worldwide US LPG export capacity Asset optimisation services Hedging services

Supply EDF Group Wholesale customers Commercial and industrial customers

Preparing for a new age in LNG

EDF Trading offers a complete range of LNG services worldwide including purchase, supply and delivery, ocean-borne logistics, terminal capacity, regasification and nominations into pipeline networks. We supply and optimise LNG to and from the EDF Group’s European gas businesses and supply a diverse international customer portfolio. We also have unique supply arrangements that provide considerable flexibility to producers.

In recent years we have been strategically developing our positions along the value chain to maximise asset values and minimise supply costs. These developments not only enhance optimisation opportunities for our customers but also correctly position our business in anticipation of the fundamental changes happening in the global LNG marketplace.

2015 will see the beginning of a new age for LNG as the first supplies from the USA and Australia come on stream.

This, combined with an expected resurgence in nuclear power generation in the Far East, will affect both supply and demand trading patterns and create a much more dynamic wholesale environment. With the breadth and depth of our value chain activities, EDFT has the flexibility to accommodate these changes and continue delivering benefits to customers around the world.

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LNG and LPG Activities

EDFT enters the LPG marketIn 2014, EDFT entered the LPG (liquefied petroleum gas) market. This is a natural extension of our international ocean-borne LNG business and complements our positions in US natural gas. Production of liquefied gasses in North America is growing in tandem with shale developments and our involvement in the wholesale marketplace gives our global customers access to these new supply sources.

We have signed an agreement with a leading provider of midstream energy services to acquire long-term LPG export capacity from terminal facilities located on the US Gulf Coast. During the year we also agreed to supply LPG to an end-user customer in Asia.

Optimised LNG shippingTechnological developments have led to the introduction of a new generation of larger, more cost efficient, tri-fuelled LNG vessels into the global fleet. We have capitalised on the opportunities this represents by securing our ocean-borne transport needs on short-term charters to optimise shipping costs for our customers.

Support for EDF Group businessesEDFT provides tailored support to EDF Group businesses for LNG supply and optimisation.

Notably in 2014, we formed part of the EDF negotiating team that secured a 20 year, 0.8 MTA supply agreement with a US-based energy company developing a major liquefaction plant in Texas. We are working with EDF on the commissioning and commercialisation of regasification capacity at the Dunkirk terminal, which will become operational in 2015. And, throughout the year, we continued assisting Edison in the optimisation of its LNG supply contracts.

North American liquefactionReflecting the changing supply dynamics of the LNG marketplace, in 2014 we progressed the development of small-scale liquefaction projects on the North American west coast to better serve our customers in Asia.

A joint development agreement has been signed to develop a 0.6MT, barge-based, liquefaction plant in the Douglas Channel, British Columbia.

Strengthening our LNG supply base10 new LNG master sales and service agreements were signed in 2014. EDFT now has master agreements with the majority of the market’s key participants.

We also secured a number of short, long and storage positions that enhance our flexibility to provide consistent customer support.

Matthew ArnoldGlobal Head of LNG and LPG

©EDF, Philippe Eranian, LNG Vessel, Italy.

©EDF, Julien Goldstein, LNG Regas Facility, Dunkirk.

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Gas Production

Opportunities in the evolving gas market

EDF Trading Resources is our dedicated North American gas production business.

EDF Trading Resources acquired its first gas production assets in 2012 in East Texas and now has approximately 500 producing wells with proven reserves.

During the year we gained pad site permits for a number of wells on

acreage in the Marcellus region that we acquired in a joint venture with a leading American coal business. We expect to commence output from these wells to coincide with the development of additional liquefaction capabilities in North America and the assumed wholesale price benefits driven by export opportunities.

Brad WatsonPresident, EDF Trading Resources

The key to EDF Trading Resources is that we add value. It’s what makes us a great partner to do business with. We have the skills to help get the gas out of the ground, the logistics network to transport it to market, and the wholesale marketing expertise to commercialise its potential.

In North America, EDF Trading Resources provides gas production services that link with and enhance our midstream and wholesale natural gas activities.

EDF Trading Resources through the value chain:

Source EDFT gas producing wells Joint venture gas producing wells Third party gas producing wells

Services Production management Asset optimisation Wholesale market services Interconnector capacity Pipeline capacity Dispatch management Gas storage

Supply Wholesale market

©EDFT, Fairfield gas production Site, Texas40

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Gas Production Activities

End-to-end servicesEDF Trading Resources is founded on a team of seasoned production specialists, petroleum engineers and geoscientists backed by experienced field operatives.

We initially apply our skills to prove the potential of a resource and then manage operations to maximise its output. Throughout operations we adhere to best-in-sector safety and environmental practices.

Once a well is operational the gas is flowed along existing pipeline capacities to areas of greatest demand. We have access to storage and blending facilities to manage its quality and the support of EDFT’s wholesale marketing expertise to realise its full commercial potential.

A growing portfolioThe EDF Trading Resources gas production portfolio was initially founded on acquired gas assets in the East Texas basin. Those assets consist of around 500 producing wells, 30,000 acres of mineral leases and daily net production of approximately 20 million cubic feet.

We have significantly expanded the portfolio into the Marcellus region through a joint venture covering more than 22,000 acres of mineral leases with one of the largest coal businesses in the USA.

Wholesale marketing supportGas production is a close fit with EDFT’s asset-backed business model. Our activities throughout the energy value chain give us insights into the dynamics affecting the marketplace. Those insights are used to leverage positions and add value to EDF Trading Resources’ own assets and those of our joint venture partners and third party customers through structured optimisation, hedging and market strategies.

Comprehensive transportationEDFT has an extensive North American gas transportation network with pipeline agreements across the USA, Canada and into Mexico. We are one of the largest gas storage lessors in the marketplace and have storage capacity throughout the major producing and consuming regions.

Brad WatsonPresident, EDF Trading Resources

©EDFT, Fairfield gas production Site, Texas.

©EDFT, Fairfield gas production Site, Texas.

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Coal and Freight

On the demand side, a mild winter in all areas except North America saw volumes to coal-fired power plants fall. Reduction in coal usage was further exacerbated by growth in renewable and gas-fired energy production.

The EDFT business model provides flexibility to accommodate such changes. Having multiple sources of coal supply worldwide, our own fleet of dry bulk carriers, strategic terminal operations and facilities to store and blend gives us a clear insight into the way the market is behaving. This enables us to anticipate trends and structure transactions that not only provide supply security but also enable asset optimisation for the EDF Group and third party customers.

Agility in a challenging marketplace

EDF Trading manages assets at all the key points in the global coal and freight supply chain. In 2014, this ensured our ability to meet our customer commitments and continue delivering added value despite a challenging business environment.

During the year, changes in market dynamics unsettled the conventional supply patterns. Reduced economic growth in China, the world’s largest importer of coal, resulted in coal from Australia, South Africa, South America and Russia being redirected to South East Asia, India and Europe. In turn, this had a negative effect on the export competitiveness of coal from some North American regions.

©EDFT, Coal Terminal, Amsterdam.

Bert van DrutenHead of Coal and Freight

Our activities along the supply chain and our global view of the coal and freight markets give us a unique insight into evolving trends and marketplace dynamics. We apply this intelligence to identify and realise opportunities that consistently add value to the operations of the EDF Group and third party customers.

EDF Trading’s coal and freight business provides dependable, cost effective support to EDF Group companies and third party customers around the world. We have multiple sources of supply, our own fleet of dry bulk carriers, strategic terminal operations and facilities to store and blend.

EDFT through the value chain:

Source Australia coal mine Supply agreements in Australia, Baltic, Columbia, Indonesia, Russia, South Africa, USA

Services Procurement and supply Fleet of capesize and panamax dry bulk carriers Three coal terminals in Amsterdam Access to terminals in USA Floating cranes Railcars and inland barges Blending and storage Wholesale market services Export capacity

Supply EDF Group power stations Third party power stations Industrial users Commercial users

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Coal and Freight Activities

Active in North AmericaIn North America, EDFT trades physical and financial coal products and is one of the largest OTC market participants. We have numerous customers and counterparts including coal producers, utilities and both physical and financial traders. Our coal transportation assets include barging and rail capacity contracts as well as terminal throughput agreements.

Support for customers in AsiaEDFT has an office in Singapore from which we manage the supply and wholesale market requirements of our customers in Asia. The office is also the location of our Chubu Energy Trading joint venture with Japan’s Chubu Electric Power Company.

In Australia, our joint venture Narrabri coal mine is now up to full production.

Increased terminal activities in PolandOur joint venture terminal in the Port of Gdansk, which opened in 2013, has had a busy year. The terminal is a dry bulk distribution centre and plays a pivotal role in our ability to reliably fulfil the coal and biomass needs of the EDF Group and our third party customers in Poland and across Central and Eastern Europe.

Terminal operations in Amsterdam EDFT’s three coal terminals in the Port of Amsterdam provide facilities for storage and blending along with logistics for ship reloading and both barge and rail inland transportation. These assets enable us to meet EDF Group and third party customer requirements for coal of a guaranteed quality and to deliver on schedule even when traditional supply sources are disrupted.

Our own freight fleetDespite over-capacity in the global freight fleet, EDFT maintained a near 100% utilisation of its own vessels during 2014.

Central to our effectiveness is that we have continuously refined our fleet of fuel efficient capesize and panamax vessels to reflect changing marketplace needs. Equally, with our freight origination office in Singapore and our freight desk in London, we are ideally located to support customers and counterparties around the world.

Working closely with the EDFT coal desk, our freight team provides services to ensure optimised supply for the benefit of EDF Group and third party coal customers. Our position in the marketplace also gives us a good relationship platform with charterers and enhances our flexibility to respond to opportunities particularly in China and the Far East.

Bert van DrutenHead of Coal and Freight

©EDF, Marc Didier, Coal storage, France.

©EDF, Marc Didier, Coal crane, France.

©EDF, Konrad Pustola, Coal plant, Poland.

©EDFT, Coal Freight, Amsterdam.

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Environmental Products

Towards a healthier planet

Around the world, market-based mechanisms to promote a low carbon economy and reduce the impact of climate change are integral to the energy industry. However, the diverse nature of regional markets, changing regulatory landscapes and the impact of national economies still recovering from the global recession, present challenges to achieving universal goals for a healthier planet.

In Europe, as the economic situation improved during 2014, the EU member states renewed their focus on fixing some of the issues within the environmental products marketplace and progressed regulatory initiatives to address the problems. In North America,

the markets and regulators have learned from Europe’s experience and already applied structural and regulatory changes that are now facilitating encouraging levels of growth. China also reflected what has been happening around the world and has implemented seven regional environmental markets.

Throughout all the developments, EDF Trading has continued evolving its services to remain at the forefront of the global environmental products marketplace.

Our commercial experience, regulatory expertise and market insights provide the foundation from which we create multi-commodity solutions that support the EDF Group and our third party customers.

François JoubertGlobal Head of Environmental Products

Worldwide economic problems and pending regulatory considerations have tended to slow environmental initiatives in recent years. EDF Trading is fully committed to the marketplace and we have continued developing new products and extended our global reach to help the EDF Group and our third party customers achieve their environmental objectives.

EDF Trading operates globally throughout the environmental products value chain. With a product portfolio ranging from carbon and biomass to green power and weather risk, we provide multi-commodity structured solutions that help customers optimise their assets and meet their environmental goals.

EDFT through the value chain:

Source Biomass production CDM projects Green power sourcing and optimisation Emission reduction projects

Services Biomass supply Wholesale market services Carbon risk management Weather risk management

Supply EDF Group power stations Third party power stations Commercial and industrial users Governments

©EDF, Marc Didier, Wind Turbine, France.

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Environmental Products Activities

Weather riskOur quantos weather-contingent flexibility optimisation products are used to support customers in hedging against weather risks. Quantos address both price and volume risks and typically provide short-term seasonal cover against extreme weather conditions.

Quantos are generally applicable to power generators including coal, natural gas, wind, solar and hydro plants and energy retailers. They are a sophisticated development of the weather hedges we have provided to EDF Group businesses and third parties in previous winter seasons.

BiomassEDF Trading is well positioned to benefit from the growth in the European and Asian biomass sectors. We have our own pellet producing plant in Germany and marketing agreements with pellet producers worldwide including Russia, the USA, Thailand and Laos. From such a broad base of sources we effectively manage supply and quality for our customers.

European demand for industrial pellets has been driven by initiatives, particularly in the UK and Denmark, to convert large coal-fired power plants into biomass-fired. During the year we supplied EDF Polska in Poland, EDF Energy in the UK and third party customers in Belgium, Denmark and the UK. For a large power plant in the UK, we provided 31,000 tonnes of pellets, of which 16,000 tonnes came from our own plant in Germany.

A significant area of European growth is the residential trend to switch from oil to biomass for home heating boilers. We have redirected some production at our plant in Germany to higher value residential pellets to reflect this.

The carbon marketsDespite short-term challenges, emission trading schemes are still seen as central to the long-term goal of reducing climate change.

As such, new schemes have been launched in China, Korea and New Zealand in addition to existing schemes in Europe and North America, where EDFT already has a significant presence.

EDFT is one of the largest participants in the European market and North America’s California and RGGI markets where we support the EDF Group and third party customers with a full range of services including planning, risk management and portfolio optimisation.

The market for RECs (Renewable Energy Certificates) in North America was particularly active in 2014. Factors including slow build rates for solar and wind projects and increasing compliance obligations resulted in REC undersupply and price volatility. EDFT is the largest independent participant in the marketplace and we supported developers, including EDF Renewables, with structured off-take and marketing agreements. We also linked with EDF Energy Services to supply commercial and industrial users.

Green powerIn Europe, EDFT is a leader in UK Renewable Obligation and Levy Exemption schemes, in Italy’s Certificate Verdi scheme and with Guarantee of Origin schemes in voluntary markets in Germany, Austria and Switzerland.

For a German Stadtwerke supplying energy and water, we provided 40,000 green certificates derived from various sources including approximately one third from a newly built hydro plant in Slovenia.

François JoubertGlobal Head of Environmental Products

©EDFT, EDFT Biomass Plant, Germany (HPS).

©EDF, Federic Neema, Solar Farm, California.

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An analytical approach

Working with the EDF Group and third party customers, the EDF Trading flexibility optimisation team uses a structured analytical approach to help realise an asset’s potential added value.

Whatever type of asset we are working with, wherever it sits along the value chain, our starting point is to analyse and understand the asset’s operational flexibility. When doing this our analysis will often identify overlooked opportunities to optimise the asset in the marketplace.

Using quantitative analysis and bespoke software, we apply modelling to evaluate different pricing, risk and hedging solutions applicable to the asset and its flexibility. With the advantage of insights gained from EDFT’s global business, we relate the solutions to calculated market requirements.

We then define transaction structures that link to various market strategies including oil, power, gas, coal and carbon and so identify optimisation opportunities. Those opportunities can then be converted into business advantages.

Comparatively low energy prices and transaction volumes made 2014 a challenging business environment. However, it is within such conditions that flexibility optimisation is most noticeably effective. During the year we implemented a range of multi-commodity structures, including a pump storage product for hydro assets, which met our customers’ needs to maximise revenues and hedge risks.

©EDF, Jean-Luc Petit, Gas Plant, France.

Mustapha AkhmouchHead of Flexibility Optimisation

Detailed knowledge is the key to unlocking an asset’s potential for optimised revenue generation and risk management. We apply data analysis and modelling to reveal where the opportunity for adding value lies, and then build transaction structures around oil, power, gas, coal and carbon to bring that value to life.

Every energy asset has operational flexibility. The skill of our flexibility optimisation team is to identify that flexibility, relate it to the marketplace and realise its value. We do this to help EDF Group and third party customers optimise asset output, hedge risks and enhance revenue streams.

Flexibility Optimisation

EDFT through the value chain:

Source EDF Group power generation EDF Group energy assets Third party energy assets

Services Optimisation of asset flexibility Risk management solutions Risk modelling Pricing strategies Product development and structuring Wholesale market services

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Weather and temperature riskOur quantos flexibility optimisation solution has specific applications in the power and gas sectors. Quantos combine weather and power in a single bespoke transaction structure and is typically used to hedge weather and price volatility risk in the short-term. We also offer a similar hybrid temperature contingent product.

In 2014, we supported EDF in France to hedge against lower than expected retail gas sales because of the unusually warm weather and also structured a temperature-contingent gas contract for a third party retail energy provider in France.

Hydro plant optimisationA product fully deployed in 2014 was our flexibility optimisation solution for hydro power generation plants. The past few years has seen innovations in pumping technologies which enable used water to be put back into the dam reservoir to guarantee adequate water levels for power generation. With our sophisticated analytics and modelling, we identify bespoke transaction structures that ensure this technology can be used cost effectively to protect and enhance hydro revenues.

By mid-2014, hydro plant optimisation solutions had been put in place to dynamically manage the flexibility in all of EDF’s pumped storage assets in France.

Enhancing revenue streamsOur approach is to identify, rationalise and act upon volatilities and correlations in the marketplace. While the use of flexibility optimisation solutions has traditionally been short-term focused to mitigate weather and physical risk, we are also able to apply mid and long-term structures that take a broader view and help establish more predictable income streams.

Throughout the year, we supported EDF Group businesses with revenue optimisation structures for its portfolio of gas storage, hydro assets and CCGT power plants.

Risk and pricing strategiesAll energy assets are susceptible to physical risk, market risk and force majeure. We calculate transaction structures that enable the effective management of such risks and so protect revenue streams. Similarly, we apply modelling to identify solutions that take account of market risks.

During 2014, we worked with EDF Group companies and third party customers to calculate exposures to commodity price volatilities and helped them establish more accurate risk and pricing strategies. We provided a full risk management solution for EDF in France that indexed power and aluminium commodities for an aluminium refining company in which EDF has an interest.

Co-ordinating Europe and North AmericaHaving established and proven our flexibility optimisation services in the European marketplace, in 2014 we rolled-out the systems and processes to our Houston office in the USA.

This enables our Houston-based flexibility optimisation team to more effectively support customers including power generators, utilities and large-scale commercial and industrial users across the North American continent.

Mustapha AkhmouchHead of Flexibility Optimisation

©EDF, Jean-Luc Petit, Hydraulic Plant, France.

Flexibility Optimisation Activities

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Our Approach

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Justin Rowland Chief Commercial Officer, TradingJustin Rowland is Chief Commercial Officer responsible for EDFT’s global trading activities. He joined in May 2001 as Head of Risk Management and succeeded John Rittenhouse as Chief Financial Officer in April 2005. He became Chief Operating Officer in September 2008. In January 2010 Justin took on the additional responsibility of head of front office risk management and he assumed his current role in October 2013. He has a first class BEng in Aeronautics and is a Chartered Accountant.

John RittenhouseChief Executive, EDF Trading Group John Rittenhouse is the Chief Executive of the EDF Trading Group. Supported by the executive team, he is responsible for the development and implementation of the EDF Trading Group’s strategy in its role as the wholesale market interface for the EDF Group and its third party customers. Prior to his appointment as Chief Executive in July 2008, he held the roles of Managing Director and Chief Financial Officer. He joined EDF Trading at its inception in 1998 and was appointed to the Board of Directors in April 2006. John has an MBA from Fordham University and is a Certified Public Accountant.

Philipp BüssenschüttChief Commercial Officer, Origination and Business DevelopmentPhilipp Büssenschütt is Chief Commercial Officer responsible for EDF Trading’s global mid-marketing/flow, origination and new business development. He joined EDF Trading in 2002 and in 2009 moved to Houston as Head of Origination and Business Development for EDF Trading in North America. He was appointed to the Executive Committee and became Global Head of Origination in January 2010 and assumed his current role in October 2013. Philipp has an MSc in mining engineering and is a Chartered Financial Analyst.

Robert QuickGeneral CounselRobert Quick is the General Counsel for EDF Trading. He joined in January 2002 as Assistant General Counsel and became General Counsel in May 2005. In April 2010 Robert took on the additional responsibility of Managing Director of EDF Trading North America, based in Houston. He relocated back to London and resumed his current position in March 2011. He is a graduate of Pembroke College, Cambridge and is a solicitor.

Ronan LoryChief Financial OfficerRonan Lory is Chief Financial Officer for EDF Trading. He joined in December 2013 from EDF Energy where he was Finance Director for its Energy Sourcing and Customer Supply business. Prior to that he held various responsibilities both in the UK and in France within the EDF Group which he joined in 2003. In particular, he was involved in various projects such as working with the Group CFO on EDF SA’s Initial Public Offering in 2005, acquisition of British Energy in 2009, divestment of UK Networks in 2010 and other M&A activities. Ronan started his career as a consultant with AT Kearney and holds a Masters from ESCP Europe.

Executive Committee

Fiona SmithGlobal Head of Human Resources Fiona Smith is Global Head of Human Resources for EDF Trading. She joined in 2006 and is responsible for creating and maintaining the culture and having the right people in place to move the business forward. Fiona is a Board Member of EDF Trading’s Rietlanden Terminals in Amsterdam and has over 20 years experience in the HR field. She graduated from The University of Western Australia with a BEc specialising in Industrial Relations and from Flinders University with a Graduate Certificate in Public Sector Management.

Philippe MugnierManaging Director, EDF Trading North America Philippe Mugnier is Managing Director, EDF Trading North America based in Houston. He joined in August 2012 and is responsible for coordinating EDF Trading’s US and Canadian activities and leads our coordination efforts with the EDF Group in the US. Prior to joining EDF Trading, Philippe held a number of senior roles across the EDF Group in Europe including EDF SA and ERDF in France and EnBW in Germany. Philippe is a graduate of Ecole des Mines de Paris.

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Effective management controls and processes are of paramount importance to the EDF Trading way of doing business. Our discipline helps mitigate risks while also providing the framework within which we act to capture opportunities and create value.

Control Environment

Ronan LoryChief Financial Officer

Our comprehensive control framework has demonstrated its robustness having been tested against significant upheavals in regional economies and global commodity price swings. Even against this backdrop, we have maintained our ability to grow our service offering and provide consistent, dependable support to the EDF Group and our third party customers.

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Robust global frameworkEDF Trading is highly disciplined in its application of business controls. To ensure every activity is properly managed and controlled, we work within a comprehensive global framework encompassing strong processes, robust governance, systematic risk and control reviews and a continuous approach to improvement. Similarly, the control framework itself is regularly assessed and revised when necessary to reflect changes affecting the markets in which we operate.

In Europe, we have enhanced our control mechanisms in line with the trading and banking regulations introduced since the 2008 financial crisis, particularly relating to EMIR and REMIT.

During 2014 we also applied additional controls, especially around our Know Your Customers (KYC) and counterparty risk evaluation procedures, with regard to the political unrest in Eastern Europe and subsequent US and EU sanctions. All of these changes are set against a marketplace in which traditional supply and demand pricing continues to be influenced by regional and national policies.

Transaction integrityIn Europe, North America and Asia, transactions are executed under standard industry agreements that aim to provide cross-commodity netting, material adverse change and default provisions to further mitigate counterparty risk. We also execute margining agreements and obtain collateral where appropriate.

To provide an additional safeguard, the EDFT legal team is involved in every significant transaction. The team contributes advice and guidance to senior management on all business issues and ensures we act in a manner commensurate with legal and regulatory requirements.

During 2014, reflecting the US and EU sanctions imposed following political unrest in Eastern Europe, we enhanced our due diligence checks on new counterparties.

New business Our Global New Business Committee reviews EDFT’s development into new markets and products. Within this, the Committee evaluates our operational readiness to enter into new business structures, new subsidiaries or branches, joint ventures, asset acquisitions and stake holdings and all unique business arrangements.

The Committee also evaluates the risks associated with new transactions and ensures that appropriate and effective controls are in place.

The North American market is more fragmented than Europe and the wholesale energy environment varies between states and regions. However, the EDFT approach is to apply the same rigorous discipline wherever we operate and we continue to strengthen our North American control platform in line with CFTC guidelines and Dodd Frank specific requirements.

Our efforts have focused on developing and automating our trade tagging processes and increasing our control on Gross Notional Value (GNV) enhancing activities.

Compliance and controlTo facilitate the continued effectiveness of our control systems, we have established a combined Internal Control and Compliance function responsible for identifying, assessing, reporting and mitigating compliance risks across EDFT’s global business.

The team supports our business through the continuous development of our worldwide control and compliance frameworks. These include compliance-related policies, compliance monitoring and training programmes. It ensures the robustness of our operational risk management controls and processes, the integrity of our financial reporting, the prevention of fraud and our compliance with applicable laws and regulations.

In Europe in 2014 we went live with systems for reporting derivative transactions under the new EMIR regulations. We are also preparing systems for the reporting of physical power and gas transactions within the new REMIT regulations, which are expected to go live in mid-2015.

Operational riskWe continuously assess the level of operational risk across all business lines and physical assets and implement measures to mitigate areas of exposure including health and safety, environmental and operational efficiency. To further increase the robustness of our risk matrix, in 2014 we complemented our approach to risk mapping with an in-depth review of our key risks across all main desks.

Our business transaction policies, which govern the activities of all employees, are regularly updated to address operational risk. For each area of our business we have documented and implemented operating procedures designed to prevent the occurrence of operational errors.

However, should an error occur, we have early detection mechanisms in place to implement corrective actions. In the critical area of system outage risk, we have back-up systems and procedures to manage every degree of incident ranging from short-term disruptions to full-scale disaster recovery.

Performance indicators are used to monitor the effectiveness of key operational processes and provide assurance that the processes are functioning effectively. The indicators are reviewed by individual business managers and reported to the Chief Executive, Chief Commercial Officers and Chief Financial Officer on a regular basis.

Control Environment

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EDF Trading applies a coordinated, comprehensive approach to risk management wherever in the world it operates. Our systems, procedures and processes ensure that all our activities are conducted within carefully defined boundaries of what is acceptable practice and consistent with our shareholder’s risk appetite.

Risk Management

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Ronan LoryChief Financial Officer

Risk management at EDF Trading is a global responsibility across commercial teams and risk related support functions. Our methodologies, approaches and systems are specifically tailored to our various activities and also to market conditions and events so that we can dynamically manage our risks based on evaluated threats and opportunities.

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Global credit riskWe have a Global Head of Credit and Counterparty Risk and operate the same systems and processes in all our offices worldwide. This helps ensure the consistency of our approach.

Counterparty risks are reviewed and monitored by the Global Credit Committee, whose function is to approve maximum customer exposure and term limits based on qualitative and quantitative assessment. The analysis includes a review of the customer’s business model, corporate structure and management, financial ratios, cash flow and liquidity assessment. We evaluate and price the specific default risk of our main counterparts and optimise exposure at a global portfolio level. This team is also responsible for discharging our Know Your Customer (KYC) requirements and monitoring our counterparty risk exposure across all transaction types and maturities.

EDFT contributes to the development of credit risk management and mitigation techniques across the global energy sector. We participate in industry working groups involved in the development of contractual arrangements and clearing initiatives. In 2014, the credit team developed a custom made approach to credit risk management for our retail energy provider activity in the US and has enhanced our methodology for assessing potential future exposure across all our counterparties.

Risk Management

Proactive risk managementEDF Trading’s approach to risk management is coordinated worldwide. We have comprehensive risk mitigation policies and procedures in place through every aspect of our business governed by a single integrated risk mandate validated by EDF Trading’s Board.

Risk management is a cornerstone of the EDFT culture. A continual risk review is embedded into our operational practices to allow a proactive view of the risk in every transaction and enable its dynamic management.

Adding to procedural effectiveness, our senior managers are involved in day-to-day operations and so take personal, direct responsibility for the management of risk. Within our comparatively flat management structure, this ensures good communication and implementation of risk mitigation in all activities.

On top of the commercial awareness and accountability for risk management, EDFT benefits from having both a market risk and a front office risk control function. The market risk team mainly focuses on ensuring full compliance with operational limits and dynamic quantitative analysis of exposure. Our front office team deals with more proactive qualitative analysis and incident reporting and investigation.

We also have a Global Head of Credit and a Global Head of IT, which aids integration of risk management processes across our sites and helps leverage the synergies between our risk management functions.

Market riskFundamental to our control of market risk is the imposition of stop-loss and Value-at-Risk (VaR) limits. These tools are complemented by additional techniques such as stress testing, which assesses the profit and loss impact of extreme movements in our portfolio’s underlying variables.

Our Global Risk Committee is responsible for the allocation of risk limits, reviewing trading strategies by desk and allocating the risk limits accordingly. The Committee also reviews and establishes the parameters of trading policy for products and markets, manages breaches and assesses and reviews risk across the entire EDFT portfolio.

Front office riskOur highly experienced front office risk team complements the approach of the market risk team by implementing a more proactive qualitative analysis of the positions taken by the various desks in order to review variables that may not be reliably assessed by standard quantitative tools. The team also investigates any major incidents and oversees the New Business Committee process.

Integrated ITRobust, fit-for-purpose IT is at the heart of EDFT’s business operations and supports our ability to price accurately, develop new products and structures, deliver embedded transaction monitoring and controls and comply with new rules and regulations. It provides us with a consistent risk management framework incorporating standardised systems, processes and controls throughout all our offices. The functionality of our systems is such that it enables our risk teams to spend more time analysing data rather than compiling it, which improves the speed and accuracy of decision-making.

New system developments in 2014 include an EMIR reporting platform featuring operational dashboards for our contracts and settlements teams and affiliate reporting for EDF Group companies.

We also developed our global VaR platforms, implemented a derivatives trading platform to align our North American, European and Asian businesses, and built a new trade entry system with specific enhancements for our environmental products and coal desks.

Liquidity managementEDFT constantly assesses the robustness of its liquidity position. As such, we maintain excess liquidity buffers, financed largely through arrangements with the EDF Group, and regularly run stress testing scenarios on our position.

Our liquidity management ensures that sufficient cash is available to meet contractual commitments and that we have adequate funding to withstand stressed market conditions or even an extreme event. The EDF Group supports our liquidity management through the provision of letter of credit facilities, long-term loans, medium-term notes and a committed back-up credit facility.

In 2014, we further strengthened our liquidity management with the introduction of enhanced performance monitoring systems including return on capital employed ratio indicators. We also significantly restructured our financing resources in order to optimise our average funding cost.

Transparent and fair accountingEDFT uses mark-to-market accounting for positions where there is an observable traded market when fair values can be estimated with reasonable certainty, in accordance with UK accounting principles.

The overall valuation of the trading portfolio is also adjusted for an estimate of credit and operational risks. Our accounting approach, our valuation models and our provisioning policy are reviewed twice a year by our external auditors.

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An interconnected environmentThe nature of the regulatory landscape in which EDF Trading operates continues to evolve and change.

In Europe, policy makers are working to introduce a more comprehensive and consistent regulatory framework for commodity products and markets. The main goals are to deliver policy objectives around affordability, security of supply and a low carbon economy. Some aspects of the framework are still being discussed, while others have entered or will soon be entering the implementation stage.

As each part of the framework develops, there are regulatory overlaps forming between elements of the energy markets, carbon markets and financial markets. These are overlayed by regulation developed on a national basis as governments pursue national energy policy objectives. These are all intrinsically connected but, because the objectives vary, the interaction between policy mechanisms is not always consistent.

The EDFT regulation team is responsible for monitoring and analysing the evolving regulatory requirements. Working closely with our colleagues in EDF, the team is actively involved in market reform discussions and has established dedicated processes to manage our compliance as the new rules and regulations are introduced.

European transaction reportingIn Europe, reporting of all derivative transactions went live in February 2014 under the new EMIR regulations. We now report all our derivative transactions daily to the regulator and offer a reporting service to EDF Group entities for derivative transactions concluded with EDFT. A similar reporting regime for physical power and gas transactions under the REMIT regulations is expected to commence in October 2015 and work is well underway on the implementation project.

European financial regulationMiFID II, the overarching framework of European financial regulation, has achieved political consensus and the regulators are working on development of the detailed implementation rules. We continue to liaise bilaterally with regulators to ensure that the new rules are appropriate to our type of business and the markets in which we operate.

Europe’s third energy packageThis will ultimately put in place consistent market design rules for power and gas and cover areas such as capacity allocation, congestion management, establishment of trading hubs, balancing mechanisms and network tariffs. The rules are still being finalised and our regulation team is monitoring developments to ensure they facilitate a more effective and consistent trading environment.

European national energy policiesAcross Europe, governments are developing national energy policies for local objectives including security of supply, infrastructure investment and de-carbonisation. These developments, along with other factors such as incentives for investment in renewable energies, are challenging existing market designs particularly in France, Germany, Italy and the UK. Detailed proposals are beginning to emerge, although the situation is still very fluid. We continue to monitor discussions and provide input where appropriate.

European carbon markets Proposals for the 2020-2030 reforming framework for the European carbon markets have been released. EDFT is actively involved in discussions about the framework in conjunction with the EDF Group and we expect considerable debate on the final arrangements during the coming year.

USA Dodd-Frank ActEDFT North America continues to follow the evolving situation with respect to the development of new position limit rules by the CFTC under the Dodd-Frank Act. We are taking steps to ensure we have the necessary processes and systems in place to monitor our activities against the limits when they are introduced in 2015.

Energy market globalisation brings with it a need for greater regulatory consistency across jurisdictions. Our regulation team works closely with the EDF Group and is a regular contributor to reform discussions. The team has put robust processes in place in order to manage our compliance with existing and new rules and regulations.

Regulation and Compliance

Robert QuickGeneral Counsel

The move towards a more consistent, comprehensive and effective regulatory framework is in the best interests of EDF Trading, the EDF Group and our third party customers. As such, we support the regulatory development process and contribute proactively to discussions. Where appropriate, we have implemented new systems and procedures to ensure our compliance with new obligations.

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Customer focused At EDF Trading, our approach is to go the extra mile to deliver exemplary service and exceed expectations.

As a culture, we thrive on finding solutions and pride ourselves on our professionalism, flexibility and understanding. We are innovative in our approach and welcome individuality, but we are also highly disciplined in the way we conduct business. Our ability to maintain success in a challenging market is because of the talent we employ at each level and in every location. At EDFT, everyone has the opportunity to make an impact and contribute to our service.

Decisive managementEDFT managers are people who have both the experience and expertise to drive the business forward, to accept responsibility and to be accountable for their results.

We operate with a comparatively flat management structure. Our Executive Committee has ultimate management responsibility across all the business units in every region. Reporting to the Executive Committee is our team of Business Heads, each of which has specific responsibility for their own commodity lines. In this way our management team is positioned to focus on the major issues affecting our business while also ensuring the free flow of knowledge within and between disciplines.

Flexible, yet disciplinedIn every capacity, EDFT people are encouraged to challenge conventional ideas, test new approaches, anticipate developments and react quickly to opportunities. However, providing services on the wholesale energy market also requires discipline. The precision of our legal, financial, market and credit risk programmes establishes strict parameters within which our business operates. In turn, our regulation and compliance functions ensure we support and act within the appropriate regulatory frameworks wherever in the world we operate.

Our diverse teamWith a team of around 1,000 people, EDF Trading is a remarkable combination of experience and expertise. We employ the best skills in every position and have people from all over the world working together. Such diversity is our strength and a critical factor in our ability to grow our services and enhance our support for customers.

A career builderEDFT is a career-making company. Our global graduate internship programme, which includes internships based mainly in our London and Houston offices, has developed a talent pipeline and we now have previous graduate recruits in senior management positions. We are also successful in recruiting experienced people with proven expertise and capability to help speed our development into new markets. The key is that, at all levels, we give people with talent the training, the support and the opportunities to grow and be the best they possibly can.

Not surprisingly, EDFT is an employer of choice. We offer a competitive remuneration package, excellent working conditions and an organisational structure offering real potential for personal development.

EDF Trading is about high performing people working together to achieve common goals. We are customer focused, service orientated, and proud of our ability to consistently meet or exceed the expectations of the EDF Group and our third party customers.

Culture

Maintaining success within an environment as challenging and fluid as the wholesale energy market requires flexibility as an organisation and as individuals. To identify and capture opportunities for our customers we must be capable of making quick, well-informed decisions, but we must do so within a framework of non-negotiable procedural controls.

Fiona SmithGlobal Head of Human Resources

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Throughout 2014, as a company and as individuals, we gave time and effort to support charitable causes and the local communities in which we operate. In ways big and small, we all made a commitment to help others and society at large.

Community support

Texas Children’s HospitalOur Houston office has a long association with the Texas Children’s Hospital in the city. We sponsor the 9th floor and members of our team take part in activities throughout the year to support patients, families and nurses. The premier event in 2014 was the hospital’s Fall Festival, during which our people went the extra mile to host an imaginative range of carnival games and snack booths.

DePelchin Holiday ProjectThe DePelchin Children’s Center has a special place in the hearts of our Houston team in that it provides support for children’s well-being, with a focus on mental health, foster care and adoption services. Throughout the year, our people generously donated clothes, health care items and gifts such as bicycles and toys that were presented to the children during the holidays.

Swim Across AmericaEDF Trading is proud to be a corporate sponsor of Swim Across America. Founded in 1987, the charity is dedicated to raising money and awareness for cancer research, prevention and treatment.

With the help of countless volunteers, including past and present Olympians, it organizes and hosts sponsored swimming events across the US to support the cause.

Bob Woodruff FoundationLife for Bob Woodruff changed in an instant when a roadside bomb struck his vehicle while reporting on the war in Iraq for ABC. It was during his year-long rehabilitation from life-threatening injuries that Bob and his wife Lee decided to set up the Bob Woodruff Foundation to help injured returning US veterans and their families.

EDF Trading is honoured to be a corporate sponsor of the foundation and contribute to its rehabilitation, education and employment activities.

Three Peaks Charity ChallengeIn May, members of our London based coal and freight team took part in the gruelling Three Peaks Charity Challenge. The event, which was organised by our colleagues at EDF Energy, involved a sponsored trek to the top of the highest peaks in Scotland, England and Wales within 24 hours. A magnificent sum of almost £32,000 was raised for the Marie Curie Cancer Care charity.

Remembering Emmanuel DeutschEmmanuel Deutsch, EDF Trading’s Head of Group Integration and Synergies, sadly lost his battle with cancer in November 2013.

In his memory, colleagues from our London and Paris offices joined with Emmanuel’s wife, Valerie Deutsch, their children and friends in the London Bikeathon charity event. Cycling various courses in and around London, the team raised nearly £20,000 for the Leukaemia and Lymphoma Research charity.

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Governance and FinanceED

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Simone RossiEDF Executive Committee Member, Group Senior Executive Vice President, International Division, EDF

Board of Directors

Marianne LaigneauEDF Executive Committee Member Group Senior Executive Vice President, Human Resources, EDF

Bruno LescoeurEDF Executive Committee Member, Group Senior Executive Vice President, Gas and Italy, EDF Chief Executive, Edison

Antoine CahuzacEDF Executive Committee Member, Group Senior Executive Vice President, Renewable Energies, EDF Chief Executive, EDF Energies Nouvelles

John Rittenhouse Chief Executive, EDF Trading

Sabine LE GACGeneral Counsel, Supply, Optimization and Trading, Legal Division, EDF

Magali ViandierSenior VP Accounting, Tax & Group Reporting, Finance Department, EDF

Philippe TorrionChairman, EDF Trading Board, EDF Executive Committee Member, Group Senior Executive Vice President, Innovation, Strategy and Planning, EDF

Steven WolframGeneral Counsel, Development, EDF

Thomas Piquemal EDF Executive Committee Member, Group Senior Executive Vice President, Group Finance, EDF

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Financial Summary

2014 €’000 2013 €’000

Net trading income 855,795 787,338

Operating costs (244,805) (237,927)

Operating profit 610,990 549,411

Net interest payable (55,251) (22,576)

Depreciation and amortisation (41,443) (33,688)

Income before taxation 514,296 493,147

Taxation (128,071) (124,352)

Share of profits of associates’ 210 3,996

Net income 386,435 372,791

Dividend declared (251,294) (235,000)

Retained profit carried forward 135,141 137,791

2014 €’000 2013 €’000

Non-current assets 532,446 646,871

Current assets 13,377,980 11,909,451

Current liabilities (10,043,278) (8,553,657)

Net current assets 3,334,702 3,355,794

Total assets less current liabilities 3,867,148 4,002,665

Non-current liabilities (1,230,940) (1,485,045)

Provisions (53,619) (66,557)

Net assets 2,582,589 2,451,063

Shareholders’ equity 2,582,589 2,451,063

EDFT Group Profit and Loss summary

For the year ended 31 December 2014

EDFT Group Balance Sheet summary

As at 31 December 2014

2500 3000200015001000500

2012 2012

2013 2013

2014 2014

Total Shareholders’ Equity (€ million)

2583

2451

800600400200

Profit before Tax (€ million)

473

515

497Notes:1. Comparative figures for 2013 have been regrouped

on a basis consistent with the current year.2. The financial summaries are based on IFRS

accounting standards.3. The figures are as reported to EDF, which include

results for EDF Trading North America.4. Financial information in this document does not

constitute statutory accounts within the meaning of section 404 of the Companies Act 2006.

5. The statutory accounts for year ended 31 December 2014,prepared in accordance with UK GAAP, will be filed with the Registrar of Companies.

6. Profit before tax includes income from associates.

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Financial Summary

Gas traded volumes (Billion therms) Freight traded volumes (Million of MT)

Power traded volumes (TWh) CO2 certificates traded volumes (Million of MT)

Coal traded volumes (Million of MT)

100 50

1000 100

200

200 100

2000 200

400

300 150

3000 300

600

400 200

4000 400

800

500 250

5000 500

1000

600 300

600 700

350

800

400

2014 2014

2014 2014

2014

2012 2012

2012 2012

2012

2013 2013

2013 2013

2013

228

218

45 145

186

293202

45

58

222

200

255 420

568

545

127

94

121

246

221

130

257

346

507

474

439

332

190

231

351

3178

3390

3140

384

568

675

707

662

666

00

Derivatives

Physical

00 Amounts

Totals

2255

2411

2341 837

1135

729

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