EDF_REGISTRATION_DOCUMENT_2017

1.

PRESENTATION OF EDF GROUP Description of the Group's activities

Gas assets and projects 1.4.6.2.2 Supply sources 1.4.6.2.2.1

European Electricity market EDF Trading is a leading participant in the European electricity wholesale market, providing a full range of risk management services to EDF group’s asset operators and to third parties. It has an extensive geographic footprint and scale of activity which makes it able to adapt quickly to changes in the market and to develop new business where appropriate. In 2017, EDF Trading worked closely with EDF in managing its ARENH commitments and assisted in managing the flexibility of EDF's hydro and thermal assets. The company also launched new optimization services including hydro swaps, ancillary services and participation on new intraday overnight hubs. EDFT began a joint venture with Edison for trading power and also expanded its services to EDF's larger commercial and industrial (C&I) customers. European Gas EDF Trading is a leading participant in the European gas wholesale market. It optimizes EDF group entities’ gas assets including production, transmission rights, long-term supply contracts and re-gasification and storage capacities. This enables it to support the EDF group and third party customers with complete gas wholesale market solutions. In 2017, EDFT managed the marketing, optimization and transportation of EDF's storage capacities and provided structured solutions for EDF's assets exposed to illiquid market hubs. It also launched gas market access services for Dalkia. North American power and gas EDF Trading is a leader in the North American wholesale electricity markets with an extensive geographic footprint. It is also one of the top gas marketers. EDFT contracts or manages about 4.2 Gm 3 (150 bcf) of natural gas storage and transacts approximately 1.4 Gm 3 (50 bcf per day) of gas. It serves a portfolio of customer contracts including long-term electricity, natural gas and environmental products. Additionally, it provides tolling, gas storage, gas transport and congestion management. In 2017, EDFT expanded its physical footprint through natural gas transportation agreements on the Rockies Express and ANR Pipeline company. Environmental products EDF Trading is committed to the environmental products marketplace and, as part of a leading renewable generator, offers a broad range of multi-commodity structured solutions that help the EDF group and third party customers around the world. EDFT is active in the compliance and voluntary carbon markets, including guarantees of origin certificates in Europe, Renewable Energy Certificates in the US, and International Renewable Energy Certificates in the rest of the world. In addition, it is a recognised leader and provider of risk management products in the European weather market. In 2017, EDFT extended its contract with EDF Renewable Energy in the US to manage the Longhorn Wind Project in Texas which comprises 100 Vestas V100 wind turbine generators. EDFT sold more than 20TWh of guarantees of origin to various European counterparties by marketing EDF's hydropower assets for production periods between 2015 and 2020. EDFT also launched a new green gas offer to EDF's residential customers. Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG) EDF Trading offers a complete range of LNG and LPG services including supply, delivery and nominations into the appropriate network. 2017 was the first year of commercial operation for the Dunkerque LNG terminal and EDFT has worked with EDF to market and optimize EDF's capacity, increasing simultaneously its volumes and cargoes to develop a significant LNG portfolio. In December 2017, EDF Trading signed an agreement with JERA for an extended partneship regarding LNG optimization activities. For LPG, EDFT has expanded its trading activities to the United States, which will enable EDFT to become more actively involved in the upstream LPG market.

In Europe, the Group’s gas supply comes from short- and long-term gas markets and from a diversified portfolio of long-term contracts, originating from Qatar, Russia, the North Sea and North Africa. In the United States, the majority of the supplies originates from the gas markets. In the rest of the world, specific contracts have been concluded to ensure the supply of the Group’s gas power plants. Infrastructures 1.4.6.2.2.2 Gas pipelines Apart from its various rights to transport capacity in the European network, the EDF group participates, through its Edison subsidiary, in infrastructure projects for gas importation (see section 1.4.5.2.3.2 “Hydrocarbon business”). Liquefied natural gas (LNG) regasification terminals EDF, via its subsidiary Dunkerque LNG (65% owned by EDF, 25% by Fluxys and, 10% by Total), has commissioned, since 1 st January 2017, a new methane terminal within the Grand Port Maritime of Dunkirk. With a regasification capacity of 13 billion cubic metres per annum, the methane terminal has begun its commercial activities. This terminal, with a storage capacity of 600,000 cubic metres and linked to the French and Belgian transport networks, has the particularity of producing no CO 2 , the calories necessary for the reheating of liquefied natural gas originating from the warm water from the nuclear power plant at Gravelines located nearby. EDF is also the main shipper using the terminal. In Italy, Edison sold Snam Spa its 7.3% stake in Adriatic LNG Terminal, the company operating the Rovigo offshore terminal, in October 2017. Edison nonetheless retained the right to use 80% of the terminal's regasification capacity, i.e. 6.4 billion cubic meters per year (see section 1.4.5.2 “Italy”). The Group also holds regasification capacities in the terminal of Zeebrugge (Belgium). Storage In Germany, the EDF group has storage for natural gas in salt cavities situated in Etzel. The aboveground facilities are operated through a 50/50 joint venture with EnBW. EDF has around 190 million cubic metres of volume capacity in this salt cavity storage. With respect to storage activities of the Group in Italy and in the United Kingdom, see respectively, sections 1.4.5.2.3.5 “Regulated activities” and 1.4.5.1.2.3 “Thermal generation and gas storage”. The Group also holds storage rights in the Netherlands, Belgium and France. Exploration and Production (E&P) 1.4.6.2.2.3 The Group is developing its upstream activities in hydrocarbons exploration and production, through Edison (see section 1.4.5.2 “Italy”). Proven reserves amounted to 36.5 billion cubic metres of gas equivalent, with 2.8 billion cubic metres produced in 2017. Optimisation and trading: EDF Trading 1.4.6.3 EDF Trading (EDFT) is the EDF group’s exclusive interface with the wholesale energy markets providing market, optimization and risk management services to the EDF group and third parties. The company operates across Europe, North America and Asia in the wholesale markets for electricity, natural gas, LNG and LPG, environmental products and coal and freight (through its partnership with JERA Trading). EDF Trading is one of the largest wholesale energy market traders in Europe and in North America. Through its EDF Energy Services subsidiary, it is one of the main independent providers of energy management services for power generation companies and retailers and a Top 10 retail supplier to large commercial and industrial users in North America. EDF Trading’s registered office is located in London. The company has around 820 employees and is governed by the UK’s financial market regulator, the Financial Conduct Authority.

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DF I Reference Document 2017