EDF Trading Annual Review 2013 North America...development. It brings to its partners unparalleled expertise and industrial experience in the design, building, operation and maintenance

EDF Trading Annual Review 2013

North America

IntroductionChief Executive’s Statement 4-5

EDF Trading 6-7

The EDF Group 8-9

Our Markets 10-11Origination and Business Development 12-15

Commercial and Industrial Retail Services 16-19

Power and Natural Gas 20-25

Gas Production 26-29

Liquefied Natural Gas (LNG) 30-33

Crude Oil Marketing and Transportation 34-37

Environmental Products 38-41

Coal and Freight 42-45

Flexibility Optimization 46-49

EDF Trading Europe and Asia 50-51

Executive Committee 52-53

Our approachControl Environment 54-55

Risk Management 56-57

Regulation and Compliance 58-59

Our Culture 60-61

Community Support 62-63

Financial Summary 64-67

EDF Trading is part of the worldwide EDF Group, providing specialized wholesale market services throughout the energy value chain to deliver commercial benefits for the businesses of our clients. We are active in power, natural gas, coal, crude oil and environmental products.

Philippe Mugnier, Managing Director, EDF Trading North America.

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Chief Executive’s Statement

I’ve sometimes thought that EDF Trading might do well by changing its name – at least the “Trading” part, because some might think it’s a business focused on financial trading.

As the Chief Executive of EDF Trading, I take satisfaction in building and running a physical, customer-focused business. A business that optimizes the physical flow of energy through transmission lines, pipelines, vessels, trucks, trains, storage and through power stations. Buying and delivering fuels, blending to the right quality, arranging transmission and storage, scheduling generation, selling wholesale power – this is what we do.

Sure, we use financial markets to manage price risk, but our first job is to maximize the value of assets and minimize supply chain costs for EDF and our third party customers.

Simply put, we are in the energy business supporting EDF and our customers.

For one reason or another many financial players decided to leave the energy business over the last few years. EDF Trading won’t do that – it’s the only business we are in. Instead, we have spent the past few years investing in the systems, transport and storage assets and people that we need, to deliver value over the long term for our customers and shareholders.

Our focus hasn’t changed. We are committed to providing a first-class service and maintaining our hard-earned reputation for excellence.

Change is the nature of our market. We will continue to evolve in order to support our customers with specialized services that optimize assets, manage market risks and help generate sustainable income streams.John RittenhouseChief Executive, EDF Trading

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EDF Trading

EDF Trading is a leader in the global wholesale energy markets. We act throughout the value chain and apply our physical and financial expertise to optimize and add value to the assets owned or operated by our clients.

EDF Trading is a wholesale energy business unlike any other. We are asset-backed and operate along the value chain in the power, natural gas, coal, freight, environmental products and crude oil sectors.

With offices and operations throughout Europe, Asia and North America, we apply our physical and financial expertise to support our customers with a wide range of specialized market access, asset optimization, risk management, supply and logistics services.

Multi-commodity producer Around the world, EDF Trading represents an extensive portfolio of upstream assets including power generation, natural gas production, interests in coal mines and biomass production. We have long-term off-take agreements in power, natural gas and coal and are a leading player in the RECs market.

Worldwide logistics Midstream, the resources at our disposal range from a fleet of ocean-going dry bulk carriers to inland rail and barge logistics, dry bulk terminals, LNG regasification, underground gas storage and crude oil marketing and transportation. Across Europe and North America, we have extensive power transmission and gas interconnector capacities.

Dedicated retailer services Downstream, EDF Trading has supply agreements with power and natural gas retail, commercial and industrial aggregators and with numerous large industrial concerns and utilities. In North America we have a dedicated commercial and industrial retail business for power, natural gas and environmental products.

Stable, liquid and innovative Our activities along the value chain provide invaluable insights into national, regional and global markets. This knowledge, combined with our assets and resources, enables us to more effectively originate the multi-commodity transactions that provide our customers with individually tailored market access, asset optimization and risk management solutions.

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

1 – ©EDF, Laurent Vautrin, Calvert Cliffs Nuclear Plant, North America.

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The EDF Group

The EDF Group is a global leader in energy production and supply and the world’s largest nuclear utility. As of 31 December 2013, the Group’s generation capacity exceeded 140.4 GW. It transmitted across 1.5 million km of networks, served 39.1 million customers and had sales amounting to around €75.6 billion.

Every day, tens of millions of people turn to EDF Group companies for the power and gas they need for their homes, businesses and communities.

The 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 consumer sales.

Power generation Through power generation and engineering, the EDF Group enhances global economic and social development. It brings to its partners unparalleled expertise and industrial experience in the design, building, operation and maintenance of power plants fuelled by all types of energy. The EDF Group is the world’s largest nuclear utility and also has extensive generation assets encompassing gas, coal, biomass, hydro, wind, solar and oil.

Supply and distribution EDF Group companies manage power transmission and gas interconnector capacities across Europe and North America. Through a wholly-owned subsidiary it has the largest transmission network in Europe. Other interests include ocean-going LNG and coal logistics, LNG and coal port facilities, inland rail, barge and tanker networks and gas storage.

Marketing and wholesale With over 39 million customers worldwide, the EDF Group’s experience in electricity and gas supply across a range of regulatory environments is unlike any other. Expert trading, optimization, sales and marketing activities ensure the security and cost effectiveness of that supply.

Corporate strength In 2013, the EDF Group employed approximately 160,000 people worldwide and had sales amounting to around €75.6 billion. It is listed on the Paris stock exchange, is a member of the CAC40 index, and has an A+ stable S&P credit rating.

1 – ©Photocreo, Michal Bednarek, Central Paris.

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Our Markets

EDF Trading is all about service. The way we are structured, our multi-commodity portfolio and our activities along the value chain combine to provide customers with a specialized interface to the wholesale energy markets.

EDFT is the fifth largest marketer of natural gas in North America, we transact power in every deregulated territory and we offer a complete range of environmental products. EDFT is also highly active in oil transportation, gas production and we are a leading player in the global coal market. Our wholesale services encompass supply, sales, marketing and risk management as well as optimization for production and transportation assets.

We apply our wholesale market expertise and resources to join products together for our clients and counterparts and add value to their businesses by doing so.

11North AmericaEDF Trading Annual Review 2013

Origination and Business Development

In an ever changing market environment, the EDF Trading origination team provides customers with short, medium or long-term cross-commodity structures that enhance the value of physical and contractual assets.

13EDF Trading Annual Review 2013 North AmericaEDF Trading Annual Review 2013 North America

Origination and Business Development Overview

Structured transactions Our origination team has the expertise necessary to work with our customers to identify and structure solutions across all commodities. We do this consistently for our customers to help them optimize their assets and satisfy their energy needs in line with their operational and business objectives.

Business development EDFT has to react to changes in the global energy markets. We secure the physical and contractual asset positions that not only strengthen our existing business but also expand and capture opportunities in new markets, countries and commodities.

Customer flow business The EDFT flow desk provides market access and trade execution services for our customers. It acts across all the energy commodities, both physically and financially, including power, gas and environmental products. Services encompass transactions for one or multiple commodities and across short and medium-term horizons.

Founded on business expertise and deep experience of the North American energy markets, the origination team works closely with the various trading desks to identify, structure, negotiate and close a broad range of transactions.

In the past year, our origination team has been involved in a number of initiatives:

The shale revolution, an evolving regulatory landscape and the exit of many financial houses are fundamentally changing the wholesale energy environment. With our knowledge and positions along the value chain we are ideally placed to realize commercial benefits for our customers.

Mary-Anne Brelinsky Head of North American Retail and Power and Gas Origination

Energy management agreements We closed a number of EMAs during the year. Each agreement is individually structured by our origination team and can include a range of services including fuel supply, output scheduling and dispatch, market analysis and hedging. EDFT has recently entered into new agreements with gas, coal, wind and solar power generation plants.

Gas production We agreed a joint venture in the Marcellus region for the development of a number of natural gas wells. We also began drilling our first wells from our production assets in the East Texas Basin which we acquired in 2012.

Liquefied natural gas We are working with a number of developers to identify suitable LNG export opportunities from North America.


Commercial and Industrial Retail Services

Source

EDFT natural gas productionNatural gas supply contractsEDFT and third party power productionLong-term tolling contractsEnvironmental product supply contracts

Services

Electricity supplyNatural gas supplyEnvironmental products including RECsCarbon servicesWeather risk productsRisk management and hedging servicesMarket analysisSpecialized data and billing systems

Supply

Large commercial and industrial end-users

EDF Energy Services defines and delivers wholesale energy solutions for large-scale energy intensive commercial and industrial users.

With extensive experience of the power, natural gas and environmental products markets, we support our clients with bespoke, single and multi-product, medium to long-term supply programs. We also provide hedging and wholesale marketing strategies to help clients achieve strategic energy goals and compete more effectively in the evolving energy marketplace.

Exceptional service standards are fundamental to our proposition. We work as partners with our clients to understand goals, directives and budgets with the purpose of identifying the best product combination to meet their objectives. In turn, each client solution is supported and delivered by a dedicated account management framework, backed by detailed market data, fundamental analysis and state-of-the-art technology.

1 – ©EDF, Gregory Brandel, Power Plant, France.

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EDFT through the value chain:

EDF Energy Services is EDF Trading’s specialized high volume retail energy business. We support the needs of commercial and industrial clients by creating individually tailored, single and multi-product, energy supply solutions delivered within an easy to access customer account management framework.

17EDF Trading Annual Review 2013 North America 17EDF Trading Annual Review 2013 North America

Commercial and Industrial Retail Services Overview

New Midwest client base We acquired the Midwest commercial and industrial gas portfolio from ConocoPhillips which has enabled us to provide enhanced supply and wholesale market services to customers.

Billing in every deregulated market In 2013 we implemented a new invoicing platform to enable billing for multi-meter clients in every deregulated market.

Expanding our cross-commodity retail services footprint We implemented a National Account initiative in 2013 where we expanded our cross-commodity footprint so we are able to serve existing clients with a number of commodities across different states. For one client we are now serving power in Ohio and New York and gas in Illinois and California.

Power Supply and services EDF Energy Services has an expanding footprint across the North American retail power sector. We are registered to supply power in New York, Texas, Illinois, California and Ohio. We are also registering in New Jersey, Pennsylvania, DC, Michigan and Connecticut.

Flexibility is inherent in our service and we can provide energy management agreements encompassing power, gas and environmental products individually or in combination. Our service range includes dispatch, scheduling, origination, fuel supply and risk management.

Natural gas supply and services EDF Trading is the fifth largest marketer of natural gas in North America and has interests in production, storage and transportation. EDF Energy Services is ideally positioned to support clients with our wholesale market expertise and wide variety of services including full requirement or base load services, asset management and weather contingent options.

Environmental products supply and services Recognizing the diverse nature of federal and state environmental initiatives, we offer a broad yet specialized portfolio of environmental products including Renewable Energy Certificates (RECs), carbon offsets, biogas, biomass, carbon-neutral natural gas and weather risk solutions.

Client-centered solutions Clients are supported by a dedicated account management framework and innovative IT solutions. A lead originator is assigned to each client to help develop the strategy and daily services include scheduling, settlement and compliance. We also offer our customers access to our SOAR portal which provides market information and alerts, pricing histories, invoices and analysis.

Authorized and compliant EDFT is licensed with the public utility commissions in most deregulated markets as a registered retailer and therefore has authority to sell energy products and deliver physical energy directly to our customers. We can also advise and manage the requirements of legal compliance for our customers where it is appropriate.

We make it easy for clients to do business with us. We are dedicated and customer focused, have a first class IT platform and we have the expertise required to bring value to the table that our competition can’t.

Mary-Anne Brelinsky Head of North American Retail and Power and Gas Origination

across the US and Canada

Active in 13 states and provinces

125 bcf of annual throughput

Serving 1,600 MWs of peak C&I load

Delivering approximately


Power and Natural GasSource

EDFT power plantThird party power stationsLong-term tolling contractsEDF Group off-take agreementsNatural gas supply contractsEDFT natural gas productionThird party gas production Services

Energy management Nodal pricing Gas storage across the USA and CanadaInterconnector capacityUSA and Canada pipeline capacityAsset optimization servicesRisk management servicesWholesale market servicesHedging servicesFlow deskDemand response Supply

UtilitiesCo-operationsMunicipalitiesThird party power stationsRetail aggregators

EDF Trading is a leader in the North American wholesale power and natural gas markets. Our expertise and coverage of these markets enables us to implement energy management solutions that add value to the assets owned or operated by our clients.

In the wholesale power market, we are active coast-to-coast throughout the value chain. We have our own generation assets, support more than 40 power generators and are present in every deregulated market.

In wholesale gas, we are the fifth largest gas marketer in North America. We have transportation agreements with 72 pipelines, operate extensive storage facilities and have our own specialized gas production company.

We also have a dedicated retail operation providing cross-commodity energy management services to large commercial and industrial clients.

The wholesale energy market is changing. The availability of shale gas, the growth of renewable energy sources and the slow decline of coal-fired generation have all impacted market fundamentals. We operate across the energy value chain giving us tremendous insight into how those changes materialize so that we are able to identify opportunities for the benefit of our clients.

1 – ©Megpix, Meghan Moore, EDFT’s L’Energia Power Plant.

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EDF Trading is a major participant in both the power and natural gas wholesale markets. We apply our market expertise to support clients with a comprehensive range of added value services including market access, asset optimization and risk management.


Power Overview

Investing in the WMBE sector We have invested in Anahau Energy, a leading women and minority business enterprise (WMBE) located in California. This has enabled us to expand our presence into those energy segments reserved for WMBE suppliers.

New portfolio added to our ERCOT business We secured a contract to supply Stream Energy’s ERCOT portfolio in 2013, which represents one of the largest non-generation retail platforms in North America. This has created a significant supply source for us.

EDF Trading is a great partner to do business with. We are active in all the deregulated markets and operate along the value chain. We can manage load, offer sophisticated hedging and risk management programs, provide scheduling services and utilize state-of-the-art technologies. Altogether, we provide a first-class service.

Cody Moore Head of North American Power and Gas Trading

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1 – ©EDF, Philippe Eranian, Pylon, France.

Dedicated flow desk Our flow desk business continues to grow in response to an increasing client preference for short-term spot market transacting. The desk provides a range of market access and execution services for clients including municipalities, co-operatives, energy companies and utilities. It implements standard transactions across a wide range of volumes to both short and medium-term schedules.

Leading edge technology We have introduced a suite of innovative technology solutions to support our clients with real-time data. SCADA (supervisory control and data acquisition) is a set of systems, communications technologies and NERC compliant processes that enables control and monitoring of generation and load resources. We have also launched a mobile application of our SOAR customer portal (scheduling on-line and reporting), which enables access to physical dispatch parameters, awards from the ISOs and real-time metered usage.

Energy management services EDFT is the premier energy management service provider for power generators in North America. Working for third party generation clients, including investment funds and municipalities, we tailor individual energy management services that can incorporate dispatch, scheduling, origination, fuel supply and risk management services.

We currently have around 21,000 MW capacity under management for power generation clients in the natural gas, coal, nuclear, wind and solar sectors.

Full market coverage EDFT is active coast-to-coast and is present in every deregulated market. Our regional footprint includes SERC, VACAR, SPP, FRCC, MISO, PJM, NYISO, ISO NE, WECC, CAISO and ERCOT.

Supporting more than 40 power generators across the US

40+


Market-wide transportation EDF Trading has continuously developed its transportation network through leased and managed assets and has the capability to manage gas deliveries across the network and support clients coast-to-coast.

We hold transportation agreements with pipelines throughout the USA, Canada and into Mexico. We also manage capacity for E&P companies and gas utilities. Within these agreements we dispatch to market an average of 7.2 bcf per day.

In addition, we are one of the largest gas storage lessors in the market. We hold long-term capacity of approximately 48 bcf of storage, which is spread throughout various producing and consuming regions in North America.

End-user customer base EDFT is the fifth largest gas marketer in North America and trades with over 500 wholesale and production counterparts. We also provide wholesale natural gas solutions to a broad base of commercial and industrial clients including gas utilities, power generators, municipals and retail service providers.

Natural Gas Overview

Long term gas supply to California Following a successful tender, we are now the primary supplier of natural gas in California to large facilities of state and local governments.

Long-term storage deal We recently structured an innovative long-term gas storage agreement which provides for 5 bcf of base capacity with incremental rights according to market conditions.

Having assets along the value chain provides us with the flexibility to accommodate the big structural changes occurring in the marketplace. Reassuringly, we have continued to deliver success for our clients through all the upheavals.

Jeff Welch Head of North American Gas and Power Business Development

Asset-backed services With wholesale gas asset positions upstream, midstream and downstream, EDF Trading is quite literally active from drill bit to burner tip. We are ideally positioned to support customers throughout the value chain with a range of wholesale market services that enable asset optimization, secure income streams and competitive advantage.

In touch with change The past year has been a period of transformation in the market brought about by the shale gas revolution. Regions that were regarded as consumers have now become producers and as a consequence the traditional flow patterns no longer apply. Canada, the USA and Mexico have become linked as new flow patterns from East to West and North to South take effect.

With the breadth and depth of our resources across the North American marketplace, we have the capabilities and insights to structure solutions that not only provide security through this period of change but also create opportunities to benefit from it.

Fifth largest natural gas marketer in North America

Dispatching to market an average of

7.2 bcf of natural gas per day


Source

EDFT gas producing wellsJoint venture gas producing wellsThird party gas producing wells

Services

Production managementAsset optimizationWholesale market servicesInterconnector capacityPipeline capacityDispatch managementGas storage

Supply Wholesale market

EDF Trading Resources, our gas production business, is founded on a team of seasoned production specialists, petroleum engineers and geoscientists backed by experienced field operatives.

Our portfolio already includes more than 250 directly owned gas producing wells and we have interests in another 350. In addition, we have acquired gas assets in the East Texas basin and recently entered into a joint venture development in the Marcellus region.

Whether working independently or in partnership, we apply our expertise to initially prove the potential of a resource and then manage operations efficiently to maximize output while adhering to best-in-sector safety and environmental practices. We have existing pipeline capacities to flow the gas to areas of greatest demand, storage and blending facilities to manage quality and wholesale marketing expertise to realize the full commercial potential.

Gas Production

1 – EDFT’s Gas Production Site, Fairfield, Texas.

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EDF Trading Resources is our dedicated gas production business. It optimizes output at the well-head to link with and complement EDFT’s midstream gas infrastructure and wholesale marketing activities.


Market-wide transportation EDF Trading has an extensive North American gas transportation network with pipeline agreements across the USA, Canada and into Mexico. We are also one of the largest gas storage lessors in the market and have storage capacity distributed throughout the major producing and consuming regions.

A growing portfolio The EDF Trading Resources gas production portfolio was initially expanded with the acquisition of significant undeveloped gas assets in the East Texas basin. The assets consist of more than 480 producing wells, over 30,000 acres of mineral leases and existing daily net production of approximately 20 million cubic feet.

We have also recently entered into a joint venture in the Marcellus region. The first stage of the development will include drilling approximately 200 wells and there is potential for a great many more moving forward.

Gas Production Overview

Wholesale market expertise Gas production fits well within the EDFT business model. Our activities throughout the energy value chain give us enormous insights into what is happening in the marketplace. We use those insights to leverage positions and add value to our clients’ assets through structured optimization, hedging and marketing strategies.

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EDFT is a great partner in gas production. We have the skills to help get the gas out of the ground efficiently, the logistic capacities to transport it to market and the global wholesale marketing expertise to optimize its value.

Brad Watson Head of EDF Trading Resources

Team led by

upstream gas professionals

highly experienced

Assets include over 480 proven producing wells

480+

1 – EDFT Gas Production Site, Fairfield, Texas.2 – EDFT Gas Production Site, Fairfield, Texas.


Source

EDFT gas producing wellsThird party gas producing wellsThird party gas suppliers Services

Wholesale market servicesGas storage across USA and CanadaInterconnector capacityPipeline capacityLNG tanker contractsInternational export agreementsRegasification facilities worldwideAsset optimization servicesHedging services

Supply EDF Group generation businesses worldwideThird party generation businesses worldwideCommercial and industrial users worldwide

EDF Trading is one of the leading participants in the global LNG market. We offer a complete range of services including supply and delivery to global markets, ocean-borne logistics, terminal operations, regasification and nominations into networks. We are a major supplier of LNG to the EDF Group’s European gas businesses and we have a supply contract with South Korea’s Kogas Corporation, which is the world’s single biggest buyer of LNG. To date, we have shipped more than 200 LNG cargoes to support our clients at numerous worldwide destinations.

Traditionally, EDFT has sourced LNG from the Middle East and to a lesser extent from Africa, Indonesia and Australia. However, with the significant growth of shale gas production in North America and our existing coast-to-coast North American gas pipeline and storage assets, we are actively pursuing supply for export opportunities with North American producers and suppliers.

Liquefied Natural Gas

1 – ©EDF, Julien Goldstein, LNG Facility, Dunkirk.

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EDF Trading is a major player in global LNG. We source around the world, deliver to customers throughout Europe and Asia and provide services along the value chain including logistics, terminal operations and wholesale marketing. Our proven ability is to add value to the assets owned or operated by our clients.


Liquefied Natural Gas Overview

North American LNG In anticipation of the expected liquefaction capability within the United States, we are working with a number of developers in identifying suitable LNG export opportunities from North America. These involve traditional land-based projects and bespoke marine-based liquefaction technology.

LNG transhipment between tankers EDFT has been involved in the Montoir LNG terminal’s second ever LNG transhipment in France, which allows LNG to bypass terminal tanks and flow directly from one vessel to the other.

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1 – ©EDF, Philippe Eranian, LNG Vessel, Italy.

The LNG market will undergo significant change over the coming years with large volumes of liquefaction capacity coming on stream from the US, an expansion of the global LNG fleet and access potential to new markets. With our worldwide customer base, terminal and pipeline capacity and our ocean going logistics, EDFT has the ability to procure, transport and optimize LNG for suppliers and consumers alike.

Matthew Arnold Global Head of LNG and LPG

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1 – LNG Ebisu vessel.

Anticipating change in LNG EDFT is well positioned to capture opportunities as the LNG market evolves and provide a complete range of services including supply and delivery, terminal operations, regasification and nominations into networks.

EDFT closely coordinates its LNG activities with EDF Group businesses. Notably in 2013, we provided support to Edison optimizing its supply portfolio, to EDF SEI on special projects and to the EDF Group on a new gas-fired power generation project in Chile. We have also assisted EDF in securing LNG supply and selling terminal capacity in advance of the Dunkirk Terminal becoming operational.

Over 200 LNG cargoes delivered

200+

with all major LNG counterparts

65 master trading agreements


Crude Oil Marketing and Transportation

Source

Active in Texas, Louisiana, Oklahoma, New Mexico and Utah Services

Crude oil logisticsTruck, rail and pipeline transportationRail terminal servicesStorageDelivery into 11 different marketsWholesale market servicesAsset optimization servicesRisk management servicesEnergy management agreements

Supply RefineriesTerminals

Around the world, for natural gas, coal and power, EDF Trading provides the logistics and services that connect producers to the markets reliably and efficiently.

Like so many people in the energy industry, we witnessed how technical innovation and market forces brought about the shale oil and gas revolution. We saw how this convergence made it possible to extract oil from formations previously regarded as unproductive. But, we also saw that there was a significant disconnect in the marketplace. While production and refining had a healthy outlook, the logistics between the two were fragmented and often constrained. It was into this space that EDFT launched its crude oil marketing and transportation service.

Our service is founded on a team with extensive experience of the North American crude oil market. We have introduced truck, rail and pipeline transport optionality and secured bulk storage. We provide a range of structured wholesale marketing and business solutions and each element combines in a comprehensive program to better meet the needs of both producing and refining clients and assist in optimizing their business assets.


Our crude oil transportation and marketing team has extensive experience of the North American oil industry. We apply that experience through customer services that add value and efficiency to the logistics between the producer and the market.


Crude Oil Marketing and Transportation Overview

Electronic run-ticketing We have developed and implemented a purpose designed run-ticketing system. The system allows clients to access real-time operational data via the SOAR portal.

Cushing bulk storage EDFT has leased 500,000 barrels of storage at Cushing. The facility provides flexibility to blend the various crude oils we transport and create a benchmark WTI.

Price River terminal Development of the Price River rail terminal in Utah facilitates transportation of crude out of a constrained basin and onward to our storage facility in Cushing.

We have the right people, infrastructure, IT and resources to deliver a best-in-class wholesale transportation and marketing service.

Jay Harbison Head of Crude Oil Logistics

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1 – EDFT Crude Oil Production Site, Texas.

Truck transportation In 2013 we acquired a majority controlling stake in the specialized, Texas based, Lessley Services crude oil trucking company. The acquisition gives us access to more than 100 trucks and combines with our existing fleet of trailers to provide greater security of trucking capacity.

We have implemented GPS tracking and purpose development electronic run-ticket system across the whole fleet supporting our goal of being a best-in-class transportation service provider.

Rail transportation EDFT has access to seven miles of track at a rail terminal in Utah for which we have 100% throughput, to transport crude oil out of a constrained basin.

Across the rail network, we have a fleet of 370 new railcars. The railcars are designed with advanced safety features and a coiled and insulated jacket to give us greater flexibility in transporting a wide variety of crude oil grades.

The EDFT service We are firmly established in the key oil producing states of Texas, Louisiana, Oklahoma, New Mexico and Utah.

Working with exploration and production clients and other suppliers, we can provide all the logistical expertise necessary to purchase oil at the well-head and deliver to market. Our team is knowledgeable in all modes of crude oil transport including truck, rail and pipe.

For refiners, in addition to the surety of our transportation, EDFT can provide comprehensive asset optimization solutions encompassing power, gas, environmental products and hedging within individually tailored energy management services.

Pipeline and storage EDFT inputs into six different major pipelines and has long-term storage and blending facilities at Cushing. We deliver into eleven different markets including refineries, barge terminals and pipeline injection stations.

electronic run-ticket systemState of the art

Operating in all key oil producing states


Environmental Products Source

BiomassBiogas / green gasEmission reduction projects Services

Biomass supplyRECsWholesale market servicesCarbon risk management servicesWeather risk management services

Supply Third party power stationsCommercial and industrial users

Market based mechanisms to promote a low carbon economy and reduce the impact of climate change on our world are integral to the energy industry. However, the diverse nature of regional markets has presented challenges to achieve the required compliance. EDF Trading has the commercial experience, regulatory expertise and market intelligence to structure multi-commodity solutions to meet our customers’ environmental objectives.

We do this for many different types of clients ranging from energy retailers, public utilities and industrial concerns to oil and gas producers and gas, coal, wind and solar power generators.

We cover all major products including RECs, biomass, biogas, weather-risk products and carbon in California, Quebec and RGGI providing hedging, risk management and asset optimization services and we are active in all the significant state and regional markets throughout North America.

1 – ©EDF, Sophie Brandstrom, Solar Plant At Day Break, Canada.

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EDF Trading is at the forefront of the rapidly evolving North American environmental products marketplace. With a portfolio ranging from carbon and RECs to biomass, biogas and weather derivatives, we provide structured solutions that help clients meet environmental objectives, optimize assets and manage risk.


Renewable Energy Certificates (RECs) EDF Trading is one of the leading participants in the RECs marketplace. We are active in all the major territories including NEPOOL in New England, PJM, the east coast, ERCOT in Texas, MISO in the mid-west and California and the west market.

In addition to shorter-term hedging services, we offer longer-term structured REC off-takes to support developers in financing their projects. We are also active in marketing agreements to optimize the value of RECs for developers, monetization of third party REC contracts and the provision of structured deals that bundle power and RECs together.

The carbon market The carbon market is growing rapidly in North America. The east coast RGGI market already encompasses nine states. The Californian market officially commenced operations at the beginning of 2013 and the Quebec carbon market held its first auction in December 2013 before officially being linked to California in January 2014.

EDFT is one of the largest traders of carbon emissions in both California and RGGI and provides a full range of services to support clients in the planning, hedging and optimizing of their emission obligations.

Environmental Products Overview

EDFT is fully committed to the environmental products marketplace. We already have a strong global footprint and are continually developing new products and structures to help clients manage their exposure as the markets and regulations evolve.

Fabio Nehme Head of Environmental Products, Americas

Weather risk To support our clients in hedging against weather risks, we have developed a portfolio of weather-contingent commodity products known as quantos. These address both price and volume risks and typically provide short-term seasonal cover against extreme weather conditions. Quantos are generally applicable to energy retailers, traditional coal and natural gas power generators and renewable generators such as solar and hydro plants.

Biogas Biogas is an important fuel in the move towards a more sustainable environmental future. An increasing number of commercial and industrial clients are replacing natural gas with biogas to meet sustainability objectives. We have recently seen the use of biogas for transport being incentivized with RIN credits as part of a federal program.

EDFT has significant experience of the market and supports biogas producers with tailored logistics and marketing services. We can also help clients procure biogas and monetize its use via RECS.

Biomass The transition of traditional coal-fired power stations to co-firing with biomass and new generation biomass-only firing is in the process of transforming biomass from a niche market to a large-scale wholesale business. EDFT works with North American biomass pellet producers seeking access to European and Asian markets.

Hedging services in California In 2013, we provided hedging support to several clients to purchase California allowances and offsets to meet their compliance obligations.

Carbon compliance optimization in RGGI EDFT worked closely with one of the largest compliance entities in RGGI to optimize their emissions purchases and minimize compliance costs following the announcement of new market regulations in early 2013. EDFT provided on an ongoing basis a range of products, including spot and future transactions as well as strategy and execution support in allowance auctions.

Seven year solar REC deal We signed a seven year off-take and marketing agreement for solar RECs in New Jersey. EDFT provided a floor price to the developer to market the RECs on behalf of the projects. The RECs are generated by various solar installations owned and operated by one of the largest residential solar developers in the US.

Wind REC long-term off-take EDFT signed a 7 year REC purchase for an 8 MW greenfield wind project in Massachusetts. The deal provided a structured and long-term off-take to an early stage project.

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1 – ©EDF, Philippe Eranian, Rainforest, Brazil.2 – ©EDF, Sophie Brandstrom, Solar Farm, Sacramento.


Coal and Freight Source

US off-take agreementsMines in South Africa and AustraliaSupply agreements in Australia, Baltic, Columbia, Indonesia, Russia, South Africa, United States Services

Procurement and supplyTransportation – fleet of capesize and panamax dry bulk carriersTerminal access in the USExtensive US rail capacityMississippi barge capacityBlending and storage – coal terminals in AmsterdamWholesale market servicesExport services

Supply EDF Group power stations worldwideThird party power stations North America and worldwideIndustrial usersCommercial users

EDF Trading’s coal and freight business is renowned for the dependable, flexible and cost effective support it provides to customers. Our ability to supply from multiple producers, and having extensive logistics, storage and blending capabilities, enables us to add value throughout the supply chain.

In North America we transact physical and financial coal products and are the largest OTC market participant. Our assets include barge and rail capacity contracts as well as terminal throughput agreements. EDFT consistently exports millions of tons via Newport Mews, Baltimore Harbor and the US Gulf.

The EDFT North American coal business is of strategic importance to security of supply for EDF Group operations and third party customers around the world.

1 – ©EDF, Konrad Pustola, Coal Plant, Poland.

1


Coal is a global market and EDF Trading is one of its largest participants. With multiple supply sources, our own freight fleet, inland logistics, storage and terminal operations, our service for customers in North America and around the world is founded in security, flexibility, cost effectiveness and guaranteed quality.


Singapore office serving Asia Our team in Singapore is able to meet the supply and wholesale market needs of our customers throughout Asia. It is also the location of our Chubu Energy trading joint venture with Japan’s Chubu Electric Power Company.

Coal and Freight Overview

Dedicated freight fleet EDFT is a long-term participant in the dry bulk freight market. From our freight origination office in Singapore we play a central role in securing cost effective logistics to meet the operational needs of our customers. Our modern fleet of capesize and panamax vessels gives us the capacity to manage freight exposure on a global scale.

1

1 – ©EDF, Jean Luc Petit, Coal Field, Poland.

The insight we gather from our comprehensive presence in the global coal and freight markets enables us to identify and realize opportunities in a smarter, quicker and better way and thus add real value for our customers.

Chris Savage Head of US Coal

2

1

1 – Aerial View of Barge Moving Freight. 2 – ©EDF, Gabriel Liesse, Coal Plant, China.

North American logistics EDFT’s North American coal transportation assets include barging capacity, long-term rail contracts and terminal storage and export capacity. With our Mississippi River barging and throughput agreements we have transportation security for physical access to the Illinois, Powder River and Uinta coal basins.

Access to European markets EDFT has three coal terminals in the Port of Amsterdam with facilities for storage and blending plus logistics for ship reloading and both barge and rail inland transportation. These assets streamline services and market access for the EDF Group and third party customers throughout Europe.

Active across

the entire supply chain

A modern fleet of dry-bulk carriers


Flexibility Optimization Source

EDF Group power generationEDF Group energy assetsThird party energy assets Services

Optimization of asset flexibilitiesRisk management solutionsRisk modellingPricing strategiesProduct development and structuringWholesale market services The EDF Trading flexibility optimization team has

a proven capability for adding value to the assets owned or operated by EDF Group companies and third party customers.

Whatever type of asset we are working with, wherever the asset sits along the value chain, our starting point is to analyze and understand the operational flexibility inherent within it. In doing so, our analysis will often identify overlooked opportunities to optimize the asset in the marketplace.

Using quantitative analysis and specially designed software we undertake 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 optimization opportunities. Those opportunities can be pursued and converted into business advantages.

During 2013, in a very challenging marketplace with little volatility in price and volume, we designed and implemented a range of multi-commodity structures that successfully met customers’ needs to hedge risks and enhance revenue values.

1 – ©EDF, Laurent Vautrin, Calvert Cliffs, North America.

1


The operational flexibility in an asset has potential value. Our skill is identifying that flexibility, relating it to the marketplace and realizing the value. By doing this we help customers optimize output, enhance revenue streams and hedge risks over short, medium and long-term horizons.


Flexibility Optimization Overview

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

Throughout 2013 we worked with a number of EDF Group companies and third party customers to calculate exposures to commodity price volatilities and so helped guide more accurate risk and pricing strategies.

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

During 2013 we supported EDF Group businesses with revenue optimization structures for gas storage, hydro assets and CCGT power plants.

Hydro plant optimization We have included pumping technology in the scope of our service offering to EDF and our third party customers. This gives us more flexibility around hydro power plant assets as used water is put back into the dam reservoir and so guarantees adequate water levels for power generation.

With our sophisticated analytics and modelling, we identify structures that ensure this technology can be used cost effectively to protect and enhance hydro revenues.

Weather and temperature risk In 2013 we introduced a new flexibility optimization product range called quantos, which have specific applications in the power and gas sectors. A quanto hedges the correlation between the weather and the price of power in a single structured transaction.

Weather hedging for EDF businesses EDFT has developed a portfolio of hybrid weather and power flexibility optimization products to enhance short-term seasonal risk management for a number of EDF entities.

Data analysis and modelling is the key to realizing overlooked potential in an asset. We use it to build transaction structures around oil, power, gas, coal and carbon that support customers with optimized risk management and revenue generation strategies.

Mustapha Akhmouch Head of Flexibility Optimization

Introduction of a new range of weather products “quantos”

All power assets have

flexibility in their production capabilities

Quantos


EDF Trading Europe and Asia

Power EDFT is a major participant in the European wholesale power market. We provide the market interface for EDF Group and third party generation businesses and support each with a range of specialized services including market access, asset optimization and risk management.

Natural gas EDFT acts across Europe on all the principle gas hubs and markets. With our global reach and market insights we support EDF Group and third party customers with dependable supply programs and structured asset optimization solutions.

LNG EDF Trading is a major player in LNG. We source around the world, deliver to customers throughout Europe and Asia and provide services along the value chain including logistics, terminal operations and wholesale marketing. Our proven ability is to add value to the assets owned or operated by our clients.

Coal and freight EDFT is a major participant in the global wholesale coal market. We have the reach to source worldwide, terminal operations to store and blend, and ocean-borne dry bulk freight logistics to deliver wherever there is a requirement. We serve the EDF Group and third party customers across Europe, China and throughout Asia.

Environmental products EDFT provides the EDF Group and third party customers with environmental product solutions based on our integrated cross-commodity, asset-backed, global capabilities. We have an extensive CDM project portfolio, offer carbon, green power and weather risk market services and source and supply biomass worldwide.

Asia With offices in Singapore and China and additional wholesale marketing facilities in Japan, EDFT provides wholesale energy commodity and logistics services to support customers throughout Asia.

Europe From our offices in London and Paris, EDFT supports EDF Group and third party customers across the continent with wholesale market services for all the energy commodities throughout the value chain.

3

2

2

3

11

1 – ©EDF, Michel Monteaux.2 – Hole House Gas Storage Facility.3 – LNG Ebisu Vessel.

1 – ©EDF, William Beaucardet.2 – ©EDF, Graham Brown. 3 – ©EDF, Samuel Bollendorff.

EDF Trading is a global wholesale energy business with significant interests in Europe and Asia as well as in North America. We provide the wholesale market interface for EDF Group companies and third party customers worldwide and operate throughout the value chain in power, natural gas, coal, oil and environmental products.


Executive Committee

John Rittenhouse, Chief ExecutiveJohn Rittenhouse is the Chief Executive of EDF Trading and EDF Trading North America. Supported by the executive team, he is responsible for the development and implementation of EDF Trading’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 has 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.

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.

Philippe Mugnier, Managing Director, EDF Trading North AmericaPhilippe 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.

Philipp Büssenschütt, Chief 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.

Ronan Lory, Chief Financial OfficerRonan Lory is Chief Financial Officer at 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. He was involved in particular 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.

Robert Quick, General 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.


Control Environment

EDF Trading has grown over the years to become a global leader in the physical wholesale energy markets. Our business model has proved its resilience as we developed our interests across continents, into new commodities and markets, and along the value chain. From the very beginning we have worked within frameworks that not only ensure every development is properly evaluated, transacted and managed, but also assessed as to whether it ‘fits’ within the EDFT model. We ensure that our risk controls are built into the way we transact.

Our discipline in adhering to our principles has proved invaluable and we have developed our ability to support the EDF Group and third party customers despite tremendous upheavals in regional economies. Today we look forward with a sense of optimism and continued belief in our business model as the global economic environment moves out of recession.

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, branches or joint ventures, asset acquisitions and stake holdings and all unique business arrangements.

The Committee evaluates the risk associated with new transactions in particular and ensures that appropriate controls are in place and that they are efficient.

Transaction integrity In Europe, North America and Asia, transactions are executed under standard industry agreements that provide cross-commodity netting, material adverse change and default provisions. 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.

Control and compliance To ensure we remain fit for purpose and to help facilitate effective 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 development and refining of EDFT’s global control and compliance frameworks. These include compliance-related policies, compliance monitoring, commercial oversight and training programs. It ensures the robustness of our operational risk management controls and processes, the reliability of our financial reporting and our compliance with applicable laws and regulations.

Operational control Securing a stable management control environment is an on-going priority. We continuously assess the level of operational risk across all business lines and implement measures to mitigate areas of exposure. We ensure consistent business control, including health and safety, environmental and operational performance, across all EDFT’s physical assets.

For each physical functional 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 enable prompt implementation of corrective actions to minimize the impact.

Our business transaction policies, which govern the activities of all employees, are regularly updated to address operational risk. Central to this is that procedures for gaining authorization for new business or trading instruments must undergo a rigorous operational authorization process.

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. Our infrastructure is highly resilient with no single point of failure.

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.

Effective management controls and processes are central to the EDF Trading way of doing business. Our discipline helps us identify and mitigate potential threats while also establishing the parameters for our agility to capture growth opportunities in an evolving marketplace.


Risk Management

EDF Trading has a coordinated worldwide approach to risk management. Comprehensive risk mitigation policies and procedures are in place throughout every aspect of the EDFT business. However, what adds to our effectiveness is that our senior managers are involved in day-to-day operations and take personal and direct responsibility for risk management. We have a comparatively flat management structure to ensure good communication and implementation of risk mitigation across all our activities.

Market risk Fundamental to our market risk control 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.

Global credit risk We have a global approach to credit risk and operate the same standards and processes in all our offices worldwide. 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 counterparties and optimize exposure at a global portfolio level.

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.

Enhanced IT During 2012 and 2013 we have implemented a program of new IT that provides us with a consistent risk management framework incorporating standardized systems, processes and controls throughout our offices in North America, Europe and Asia.

Technology enhancements include new credit and currency sub-ledger systems, an expansion of our global VaR system and a paperless system for confirmations, invoices and other documents. We also implemented new processes and applications to support the requirements of EMIR and Dodd Frank.

The added functionality of the new IT systems enables our risk teams to spend more time looking at and analyzing the data rather than compiling it, which improves the speed and accuracy of decision-making.

Robust liquidity The robustness of EDFT’s liquidity position offers dependable reassurance to customers and counterparties. 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 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.

Transparent and fair accounting EDFT 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 reflects credit and operational risks. The market prices used to value EDFT’s positions take account of the cost of closing out our net trading position in the market.

The strength of our systems, procedures and processes is that they allow people to be better at what they do. Our controls enable us to react to change and be proactive to opportunities, yet still remain within carefully defined boundaries of what is commercially prudent.

Ben Baglin Head of Market Risk North America


Regulation and Compliance

The regulatory landscape in which EDF Trading operates is changing. Driven in part by the financial crisis, policy makers around the world have worked to introduce a more comprehensive and consistent regulatory framework for all energy products and markets.

Although some aspects are still evolving and differences remain at regional and state levels, we have reached a stage where our obligations are much clearer and many of the developments have entered the implementation phase. Accordingly, we have introduced new processes and IT functionality, particularly with regard to transaction reporting, to ensure that we and our clients remain compliant.

Dodd-Frank Act EDF Trading is not registered as a swap dealer under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the ‘Dodd-Frank Act’) and does not anticipate registering as a swap dealer in the foreseeable future. Although EDF Trading does transact swaps, such transactions are ancillary to our primary business and within the required limits imposed under the Dodd-Frank Act.

EDFT continues to follow the evolving situation with respect to the development of new position limit rules by the CFTC under the Dodd-Frank Act. It is expected that the new position limits will be operational during 2014 and EDFT will ensure it has the necessary processes and systems in place to monitor its activity against the limits.

EDF Trading fully supports the move towards a more consistent, comprehensive and effective regulatory framework. We contribute proactively to discussions and have the required resources to ensure we are compliant.

Eric Dennison General Counsel, EDF Trading North America

The energy market is becoming ever more global and, within it, the regulatory landscape is evolving to create greater consistency and transparency across all jurisdictions. Working closely with the EDF Group, our regulation team is active in market reform discussions and has established dedicated processes to manage our compliance as new rules and regulations are introduced.


Our Culture

Teamwork is at the heart of EDF Trading. 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 the development of our services.

Decisive management Our management structure reflects the inherent nature of our business. We need the flexibility to support quick, well-informed decision making, but we must also have the discipline of procedural controls. To achieve this we have a comparatively flat management structure. Our 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.

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, who have specific responsibility for their own commodity and service lines. In this way our management team is positioned to maintain focus on the major issues affecting our business while also ensuring the free flow of knowledge within and between each line to identify cross-commodity opportunities.

Service oriented EDF Trading is focused on service. We thrive on finding solutions to problems. We pride ourselves on our skill, professionalism, flexibility, competitive pricing and going that extra mile for our customers.

Flexible, yet disciplined We are witnessing considerable change in the energy markets. On the product side this is being driven largely by the shale oil and gas revolution and the growth of renewable energies. In terms of corporate administration, the regulatory landscape is evolving to become ever more comprehensive. Maintaining success within such an environment requires us to be flexible, yet controlled in our thinking.

Our people are encouraged to challenge conventional ideas, test new approaches, anticipate market developments and react quickly to market opportunities. However, providing wholesale energy market services also requires enormous discipline. The precision of our legal, financial, market and credit risk programs establishes strict parameters for our operations. In turn, our regulation and compliance functions ensure we support and act within the appropriate regulatory frameworks.

The best employees EDFT is an employer of choice offering a competitive remuneration package and excellent working conditions. We have a focused business plan with clear objectives for our people.

During recent years we have continued to attract high caliber individuals. Our graduate program, 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 people with extraordinary expertise and proven capability to help speed our development into new markets.

Founded on teamwork With 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 business and enhance our support for clients.

The success of EDFT is based on effective management and talented people working towards clearly defined business objectives. We are a highly motivated cohesive unit capable of making things happen and achieving exceptional results for our clients.

John Rittenhouse Chief Executive, EDF Trading

EDF Trading is focused on customer service, teamwork, professional discipline and having the best people working to the best of their ability.

61North AmericaEDF Trading Annual Review 2013

Community Support

1 – ©A Kramer, TCH Main Campus, Texas.

1

Supporting the TRIP program EDF Trading has been involved with Texas A&M University’s Trading, Risk and Investments (TRIP) program since its inception. The program is highly regarded within the energy industry because of its vocational structure and content. Students on the course combine classroom based academic tuition with practical internships to develop their skills in the trading, risk management and investment fields. EDFT’s ongoing participation includes assistance with candidate selection, internship hosting, mentoring and panel discussions.

One of the interns, a Masters of Science, Finance student at the University, commented, “The energy industry has always attracted me from a fundamental standpoint and so it’s been good to work at a company like EDF Trading with such a strong North American presence.” Having spent her internship with our power team, she said, “One of the big things I’ve learned is how all the commodities are connected, how gas prices affect power prices. Analytics are incredibly important.”

Making time for children Concern for the wellbeing of others is a common trait among the staff at EDF Trading. This is exemplified by our people in Houston who regularly give their time to contribute to the work of the city’s Texas Children’s Hospital.

Throughout the past year we supported patients, families and hospital employees with a range of activities including a nurses lunch, a parents night out and seasonal supplies of goodies and decorations to celebrate special holiday occasions. The big event in the 2013 calendar was the hospital’s Fall Carnival, at which members of the EDFT team provided carnival games, face painting and cookie decorating for patients and their families.

As a company and as individuals, in ways big and small, we give time and effort to support the local communities in which we operate and to help society and the environment at large.


Financial Summary

Total Shareholders’ Equity ($ million)

2500 3000 3500200015001000500

2011

2012

2013

2897

3052

3377

1000800600400200

2011

2012

2013

Profit before Tax ($ million)

808

608

660

EDFT Group Profit and Loss summary

For the year ended 31 December 2013

EDFT Group Balance Sheet summary

As at 31 December 2013

Average annual FX rate (€/$) 1.3285/1.286 2013 $’000 2012 $’000

Turnover 208,163,566 215,279,523

Cost of sales (207,137,390) (214,292,104)

Net trading income 1,026,176 987,420

Operating costs (316,086) (311,020)

Operating profit 710,090 676,399

Net interest payable (29,992) (46,249)

Depreciation and amortization (44,755) (39,884)

Income before taxation 635,343 590,267

Taxation (165,202) (164,066)

Share of profits of associates’ 25,111 17,501

Net income 495,253 443,702

Dividend declared (312,198) (353,650)

Retained profit carried forward 183,055 90,052

Average annual FX rate (€/$) 1.37795/1.3184 2013 $’000 2012 $’000

Non-current assets 891,356 794,353

Current assets 16,410,628 16,133,012

Current liabilities (11,786,512) (12,846,942)

Net current assets 4,624,116 3,286,070

Total assets less current liabilities 5,515,472 4,080,423

Non-current liabilities (2,046,318) (898,877)

Provisions (91,712) (129,630)

Net assets 3,377,442 3,051,915

Shareholders’ equity 3,377,442 3,051,915

Notes:1. Comparative figures for 2012 have been regrouped on a basis consistent with the current year.

Statutory accountsThe financial summaries presented above are based on IFRS accounting standards, and are submitted to EDF Group Finance. They exclude any material impact of the disposal of EDF Trading North America Incorporated (a 100% subsidiary) and subsequent acquisition of a 17.5% interest in EDF Incorporated.

Financial information contained in this document does not constitute statutory accounts within the meaning of section 404 of the Companies Act 2006 (“the Act”). The statutory accounts for the year ended 31 December 2012, prepared in accordance with UK GAAP, will be filed with the Registrar of Companies.

65

Financial Summary

00

Derivatives

Physical

00 Amounts

Totals

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) Oil traded volumes (Million barrels)

100 50

1000 100

200 100

200 100

2000 200

400 200

300 150

3000 300

600 300

400 200

4000 400

800 400

500 250

5000 500

1000 500

600 300

6000 600

1200 600

700

7000 700

700

800

800

800

2013 2013

2013 2013

2013 2013

2011 2011

2011 2011

2011 2011

2012 2012

2012 2012

2012 2012

215

203 45 145

186194 45

95

124

200

159 325

545

86

130

121

244

243

218

69

236

256

363

507

459

446

412

164

190

231

3697

3123

3323

322

380

484

493

707

666

417

88

33

2288

2202

2497 1200

835

1121

67

EDF TRADING

4700 West Sam Houston Parkway North Suite 250 Houston Texas 77041 USA

Tel: +1 281 781 0333 Fax: +1 281 781 0360

www.edftrading.com

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Documents

EDF Trading Annual Review 2013 North America...development. It brings to its partners unparalleled expertise and industrial experience in the design, building, operation and maintenance