MEMO

ENGLISH VERSION

Ta b l e o f C o n t e n t s

P02 RTE in 2015 P03 Profile P04 The grid

www.rte-france.com

RTE Réseau de transport d’électricité – “société anonyme” with an Executive Board and a Supervisory Board (limited company) with a capital of €2,132,285,690 - RCS Nanterre 444 619 258

1, terrasse Bellini TSA 41000 92919 La Défense Cedex

P06 Flow of electricity P08 Generation P10 Consumption & exchange

P12 Electricity market P14 Europe P16 Major achievements in 2015 P18 Major ten-year projects

P20 Financial results for the RTE Group P22 RTE Group organizational structure as of January 2016 P24 Organization of RTE as of 1st June 2016

3

RTE in 2015

Profil Twenty-four hours a day, seven days a week, we convey electricity from suppliers to consumers, at the best cost for our customers and the community.

€4,593 million turnover

As both an architect and a designer of the electricity market, we devise solutions to optimise its operation and infrastructures. We employ innovative methods to adapt the network to the challenges of energy transition.

€215 million net income

We are a key player in electricity in Europe, with 50 cross-border links that provide essential opportunities for exchange and allow us to optimise the electricity system in economic terms. We work constantly with our partners at a local, national and European level. We are 8,500 experts in varied and complementary areas of activity.

8,500 employees

We are RTE, the grid for smart power. Find out how we use our ingenuity to benefit our customers at www.rte-france.com

5

Overhead and underground lines 60,000 50,000 40,000 52,981

30,000

625 km

of new or refurbished lines in 2015

400 kV

Including 17 RTE substations and 7 customer substations

97 %

of new 90 kV and 63 kV lines commissioned between 2013 and 2015 are underground

3,744

225 kV

≤ 150 kV

Overhead lines (km) Underground lines (km)

Number of RTE substations STANDARDIZED VOLTAGE 400 KV AND 225 KV

24 new substations

1,287

5

0

21,815

RTE’s grid

10,000

25,616

20,000

721

STANDARDIZED VOLTAGE ≤ 150 KV

1,989

7

Net energy injected on the RTE grid in TWh Total net energy injected Other renewable energy sources*

1.4

1.4

1.3

Wind

0.9

61.8

416.8

100

415.9

The flow of electricity

495.1

200

494.5

300

53.5

Hydroelectric

400

Fossil Fuel Thermal

22.2

Nuclear

500

14.4

600

0 * Mainly: urban waste, paper manufacturing waste, biogas, photovoltaic

In 2014

In 2015

through RTE’s grid Net delivery on the RTE grid in TWh

495 TWh*

64.3

67.6

Exchange (exports)

6.8

349.1

Pumping

7.8

100

Direct customers 343.9

484.8

200

483.9

400 300

2015 Losses inWh 10.7 T % 10 2. or

Distribution networks

64.6

Total net delivery

64.7

500

0

In 2014

In 2015

total energy injected into the network by generation units in 2015

Net delivery corrected for extreme weather in TWh Distribution networks Pumping

0

*billions of kWh

In 2014

In 2015

6.8

64.3

67.6

Exchange (exports)

7.8

354.2

100

Direct customers 356.7

200

496.8

300

489.9

400

64.6

Total

64.7

500

9

Installed power in MW in France 22,553 Fossil fuel thermal

25,421 Hydro-electric

1,703 Bioenergy 6,191 Photovoltaic 10,312 Wind

Generation

63,130 Nuclear

Energy generated in TWh in France 58.7 Hydro-electric (10.8%) 34.1 Fossil fuel thermal (6.2%)

+24.5%

Wind and photovoltaic generation in 2015 (compared with 2014)

7.9 Bioenergy (1.5%) 7.4 Photovoltaic (1.4%) 21.1 Wind (3.8%)

416.8 Nuclear (76.3%)

Evolution of wind and photovoltaic generation in MW 10,312

10,000 8,000

7,536

8,157

9,313

6,714

6,000 4,000 2,000

1,502 752

0

6,191

5,764 4,574

0

4

3,727

3,327 2,250 7

4,366

5,297

2,584

61

195

874

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Installed wind capacity as of 31 December Installed photovoltaic capacity as of 31 December

11

History of french gross annual consumption in TWh 600 500 400

Consumption & exchange

475.4

465.3

489.5

495.0

513.1

478.8

494.5

486.7

478.4

480.4

479.6

200

483.2

468.4

300

100 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

History of annual consumption peaks in France in GW 105

102.1

96.7 92.4

92.5

92.6

91.8

91.6

88.9 86

86.3

84.4 82.5

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

The data correspond to the highest peak demand of the year.

French consumption in 2015

Net physical export balance in TWh 70 60

2010

2012

2013

63.7

2009

48.5

30.5

10

25.7

20

56.9

30

67.2

50 40 45.3

475.4 TWh

80

2014

2015

0

2011

13

Contractual cross-border exchanges in 2015 in TWh GREAT BRITAIN

15.9

CWE* 20.1 13.4

The electricity market

1.8

FRANCE

SWITZERLAND

12

25.9 0.4 2 ITALY

9.3 20.1

SPAIN TOTAL EXPORTS = 91,3

 OTAL IMPORTS = 29,6 T * Central West Europe (CWE): the area covering France, Belgium, Germany, Luxembourg and the Netherlands, where electricity market prices have been aligned since 2010

52

Number of balancing entities as of 31 December 2015

2015 results of the balancing mechanism (used to adjust power supply and demand) 2.84 TWh 0

195

Balance responsible entities as of 31 December 2015

+ 3

compared with 2014

-4.34 TWh

Breakdown of the adjustment mechanism for year 2015 in TWh 1,500,000 1,000,000 500,000

Hydroelectric

TSO-Player exchanges Fossil fuel thermal Nuclear Consumption TSO-TSO load-shedding exchanges (Balit/Support)

0

2014

67.8

2015

106.9

Annual volume of power exchanged on the market in TWh (EPEX SPOT)

-500,000 -1,000,000 -1,500,000 -2,000,000

Activated

Submitted

15

Europe is the most interconnected region in the world

600

million consumers

Europe

3,300 TWh

of electricity generated in 2015

more than 300,000 km of extra high-voltage lines

50

354

cross-border links between France and neighbouring countries

interconnecting lines in Europe

Average daily prices on the electricity markets in 2015

Nord Pool € 21,0 /MWh

10,000 MW of interconnection capacity with our European neighbours

Great Britain € 55,7 /MWh

Netherlands € 40,0 /MWh

Belgium € 44,7 /MWh

Germany € 31,6 /MWh

France € 38,5 /MWh Switzerland € 40,3 /MWh Spain € 50,3 /MWh

Italy € 52,3 /MWh

17

Major achievements in 2015 LILLE

ARRAS

Voltage management in CHARLEVILLE-MEZIERES Northern France

AMIENS

EXISTING NETWORK 400 kV line

LAON ROUEN

225 kV line CAEN

SAINT-LO

Pays mantois EVREUX power supply

Bretagne power supply

QUIMPER Côtes-d’Armor power supply

BOBIGNY PARIS CRETEIL

NANTERRE VERSAILLES

EVRY

RENNES

LAVAL

CHARTRES

BAR-LE-DUC

MELUN

NANCY

Seine-et-Marne TROYES power supply

COLMAR

ORLEANS

BLOIS

ANGERS

Bourges power supply

AUXERRE

TOURS

DIJON

BOURGES

Southern Pays de Loire power supply CHATEAUROUX

LA ROCHE-SUR-YON

BESANÇON

Voltage management in Eastern France

NEVERS

LONS-LE-SAUNNIER

POITIERS

Refurbishment of lines

BELFORT

VESOUL

NANTES

Pays de Retz power supply

MOULINS

Increase in traffic on LGV MACON Sud-Est high-speed rail line

NIORT LA ROCHELLE

BOURG-EN-BRESSE

GUERET

ANNECY

Project being studied

LIMOGES

LYONS

CLERMONT-FERRAND

ANGOULEME

Substation projects and connections are represented by pictograms.

STRASBOURG

EPINAL

CHAUMONT

LE MANS

VANNES

Construction of new lines

METZ

Voltage management in CHALONS-EN-CHAMPAGNE Normandy and Western Paris

PONTOISE

SAINT-BRIEUC

ALENÇON

Production integration in Champagne-Ardenne

BEAUVAIS

Bordeaux power supply

CHAMBERY SAINT-ETIENNE

PERIGUEUX

TULLE

GRENOBLE

INTERCONNECTIONS

LE PUY-EN-VELAY AURILLAC

BORDEAUX

VALENCE

PRIVAS

Voltage management in CAHORS South-Western France

SUPPLY SECURITY

Stability of grid in Lower Rhone Valley

AGEN MONTAUBAN

MONT-DE-MARSAN

AIM GENERATION CONNECTION

AUCH

Combined cycle gas turbines Renewable energy Tidal power

PAU

CARCASSONNE FOIX

SECURITY OF THE ELECTRIC SYSTEM

Management of low voltage levels Management of high voltage levels Short-circuit current control Network stability

AVIGNON

ALBI

NIMES

NICE

Production integration in PACA

Perpignan power supply PERPIGNAN

France-Spain interconnection in Eastern Pyrenees

Electricity supply DIGNE-LES-BAINS PACA (safety net)

MONTPELLIER

TOULOUSE

TARBES

GAP

MENDE RODEZ

MARSEILLES

Voltage management in Eastern PACA

TOULON

19

Major ten-year projects

LILLE

ARRAS

AMIENS CHARLEVILLE-MEZIERES LAON ROUEN

BEAUVAIS

CAEN

SAINT-LO

METZ PONTOISE

EVREUX

NANTERRE VERSAILLES SAINT-BRIEUC

EVRY ALENÇON

CHALONS-EN-CHAMPAGNE

BOBIGNY PARIS CRETEIL

CHARTRES

BAR-LE-DUC

NANCY

TROYES RENNES

QUIMPER

LAVAL

STRASBOURG

MELUN

EPINAL

CHAUMONT

LE MANS

COLMAR

ORLEANS AUXERRE

VANNES

ANGERS TOURS

EXISTING NETWORK

DIJON

NANTES BOURGES

400 kV line 225 kV line

NEVERS

LONS-LE-SAUNNIER

POITIERS

Refurbishment of lines Construction of new lines

BESANÇON

CHATEAUROUX

LA ROCHE-SUR-YON

BELFORT

VESOUL

BLOIS

MOULINS

NIORT

MACON

LA ROCHELLE

BOURG-EN-BRESSE

GUERET

ANNECY

Project being studied

LIMOGES

LYONS

CLERMONT-FERRAND

ANGOULEME

CHAMBERY

Substation projects and connections are represented by pictograms.

SAINT-ETIENNE

PERIGUEUX

TULLE

GRENOBLE

INTERCONNECTIONS

LE PUY-EN-VELAY AURILLAC

BORDEAUX

VALENCE

PRIVAS

SUPPLY SECURITY

GAP

MENDE

CAHORS RODEZ AGEN

AIM GENERATION CONNECTION

AUCH

Combined cycle gas turbines Renewable energy Tidal power SECURITY OF THE ELECTRIC SYSTEM

Management of low voltage levels

PAU

DIGNE-LES-BAINS MONTAUBAN

MONT-DE-MARSAN

AVIGNON

ALBI

NIMES

NICE

MONTPELLIER

TOULOUSE

MARSEILLES

TARBES

CARCASSONNE

TOULON

FOIX

PERPIGNAN

Management of high voltage levels Short-circuit current control Network stability

Origin: Ten-Year Development Programme for the 2015 Grid

21

Financial results for the RTE group

Income statement

Financial indicators

Millions of euros

2014

2015

GEARING

2014

2015

Turnover

4,461

EBITDA

1,687

4,593

Ratio net indebtedness / equity

62.9%

63.9%

1,913

ECONOMIC PROFITABILITY (ROCE)

2014

2015

Ratio EBIT / capital employed for business

6.8%

8%

FINANCIAL PROFITABILITY (ROE)

2014

2015

7.4%

4.2%

959

1,206

Financial result

-308

-424

Net income

379

215

EBIT

Financial results shown are in line with IFRS (International Financial Reporting Standards).

Ratio net profit / equity * Provisional figure.

The transmission cost represents 7.5% of a domestic customer’s electricity bill on average

History of RTE’s investments (millions of euros)

Simplified balance sheet ASSETS (millions of euros)

2014

2015

15,054

15,711

Receivables and inventories

1,717

1,443

Cash flow and short financial assets

1,361

974

LIABILITIES (millions of euros)

2014

2015

Net fixed assets

Financial indebtedness

9,238

9,234

Other liabilities

2,629

2,576

2007

2008

2009

1,170

1,021

2006

834

0

773

300

633

600

1,158

900

2010

2011

1,549

1,500 1,200 1,402

1,159

1,374

5,159

1,156

1,446

5,109

Provisions

1,357

Equity

2,000

2012

2013

2014

2015

2016(1)

Within the perimeter of RTE investments approuved by CRE in current euros. (1) Investment figure approved by CRE in 2016.

N.B. RTE’s net financial debt is made up of “Financial debt” (gross) minus “Cash and cash equivalents”, i.e. 7,877 million euros in 2014 and 8,260 million euros in 2015.

NB: Figures for the RTE Group comply with IFRS, except for the return on capital employed which is calculated based on the parent company RTE’s individual financial statements under French GAAP.

RTE Group organizational structure as of January 2016

100%

34%

50%

20%

HGRT 12.1%

100% 49%

100%

100%

100%

5%

DECLARANET

25

Organization of RTE as of 1st June 2016

A limited company governed by a Management Board and a Supervisory Board, RTE’s autonomy, administrative independence and neutrality are guaranteed by its articles of association and mode of governance. THE MANAGEMENT BOARD

 rançois BROTTES, President of the RTE Management F Board Valérie CHAMPAGNE, Senior Vice President in charge of finance and procurement O livier GRABETTE, Senior Vice President in charge of long-range planning, expertise and solutions Clotilde LEVILLAIN, Senior Vice President in charge of development & engineering, operation and services Xavier PIECHACZYK, Senior Vice President in charge of networks, customers and regions

EXECUTIVE COMMITTEE

The Executive Committee comprises the 5 members of the Management Board and:  ervé LAFFAYE, Deputy President in charge of European H and international affairs A lain FIQUET, Senior Vice President in charge of legal matters & oversight O livier LAVOINE, Senior Vice President in charge of diversification & leverage B ertrand SIGNÉ, Senior Vice President in charge of human resources

SUPERVISORY BOARD

The Supervisory Board is composed of the French State, 3 members appointed by the shareholder on a proposal from the French State, 4 members appointed by the shareholder and 4 members representing employees. French State, represented by Thomas GOSSET Members appointed by the shareholder on a proposal from the French State Didier MATHUS (Chairman) Marie-Solange TISSIER Michel PINET Members appointed by the shareholder Xavier GIRRE (Vice-Chairman) Marc ESPALIEU Nicole VERDIER-NAVES Valérie LEVKOV Members representing employees W ilfried DENOIZAY Jean-Louis DUGAY Dominique LORET Christophe AIME Supervisory Board Secretary A lain FIQUET