MEMO 2015ENGLISH VERSION

RTE in 2014 page 2

Profile page 3

The grid page 4

The flow of electricity page 6

Generation page 8

Consumption & exchange page 10

The electricity market page 12

Major achievements in 2014 page 14

Major ten-year projects page 16

Financial results for the RTE Group page 18

RTE Group organizational structure as of January 2015 page 20

Organization of RTE as of 1 January 2015 page 22

Table of Contents

RTE in 2014

€379 millionnet income

€4,461 millionturnover

8,500employees

Profile

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.

As both an architect and a designer of the electricity market, we devise solutions to optimise its operation.

We do everything possible to adapt the network to the

economic and energy challenges of the future.

We work constantly with our partners at a local, national

and European level.

We are 8,500 experts in very varied and complementary

areas of activity.

We are RTE, the grid for smart power. Find out how we use our ingenuity to benefit

our customers on www.rte-france.com

3

STANDARDIZED VOLTAGE≤ 150 KV

STANDARDIZED VOLTAGE400 KV AND 225 KV

NUMBER OF RTE SUBSTATIONS

712 1,985

400 kV and 225 kV ≤ 150 kV

RTE’s grid

22 new substationsIncluding seven RTE substations

and 15 customer substations

+1,111 km of new or refurbished lines in 2014

Overhead and underground lines (km) Pylon line length of the overhead network (km)

OVERHEAD AND UNDERGROUND LINESPYLON LINE LENGTH OF THE OVERHEAD

NETWORK IN KM

60,000

50,000

40,000

30,000

20,000

10,000

0

48,6

24

35,2

37 56,7

07

46,4

77

5

NET ENERGY INJECTED ON THE RTE GRID IN TW.H

Total netenergy injected

Totalnet

delivery

Nuclear

Distribution networks

Hydro- electric

Direct customers

Fossil Fuel

Thermal

Pumping

Wind

Exchange (exports)

Other renewable energy

sources*

NET DELIVERY ON THE RTE GRID IN TW.H

In 2013 In 2014

In 2013 In 2014

The flow of electricity

through RTE’s grid

494.5 TW.htotal energy injected on the grid

in 2014

600

500

400

300

200

100

0

500

400

300

200

100

0

61.8

64.6

14.5

7.8

0.9

67.6

1.4

505.

749

4.5

403.

837

5.0

68.6

63.7

31.2

7.1

0.9

48.7

1.3

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

Losses in 2014

10.6 TW.h

or 2.08%41

5.9

494.

548

3.9

343.

9

7

Generation

+11%Wind and photovoltaic

generation in 2014 (compared with 2013)

INSTALLED POWER IN MW IN FRANCE

ENERGY GENERATED IN TW.H IN FRANCE

EVOLUTION OF WIND AND PHOTOVOLTAICGENERATION IN MW

Installed wind capacity as of 31 December

Installed photovoltaic capacity as of 31 December

10,000

8,000

6,000

4,000

2,000

0

20142004 2005 2006 2007 2008 2009 2010 2011 2012 2013

393 752

0

1,502

4

2,250

7

3,327

61

4,574

195

5,764

874

6,714

2,584

7,536

3,727

8,1579,120

5,292

4,366

25,411Hydro-electric

68.2 Hydro-electric

63,130Nuclear

415.9 Nuclear

9,120Wind

17Wind

1,579Bioenergy

6.6Bioenergy

5,292Photovoltaic

5.9Photovoltaic

24,411Fossil fuel thermal

27Fossil fuel thermal

9

HISTORY OF ANNUAL CONSUMPTION PEAKS IN FRANCE

IN GW

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

120

100

80

20142004 2005 2006 2007 2008 2009 2010 2011 2012 2013

82.581.4

86 86.388.9

84.4

92.4

96.7

91.8

102.1

92.6Consumption & exchange

465.3 TW.hFrench consumption in 2014

HISTORY OF FRENCH GROSSANNUAL CONSUMPTION

IN TW.H

20142002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

600

500

400

300

200

100

0

465.

3

451.

1

468.

4

479.

6

483.

2

478.

4

480.

4

494.

5

486.

7

513.

1

478.

8

489.

5

495.

0

2009 2011 2012 2013 2014

60

50

40

30

20

10

0

25.9

30.8

57.1

45.3

48.7

67.6

NET PHYSICAL EXPORT BALANCE IN TW.H

2010

11

TOTAL EXPORTS = 92.4

TOTAL IMPORTS = 27.3

CONTRACTUAL CROSS-BORDER EXCHANGES IN 2014 IN TW.HThe electricity

market

Annual volume of power exchanged on the market in TW.h (EPEX SPOT)

2014

67.82013

58.5

Number of balancing entities

as of 31 December 2013 and 2014

192 Balance responsible

entities as of 31/12/14

+17 compared with 2013 2014 RESULTS OF THE BALANCING

MECHANISM (USED TO ADJUST POWER SUPPLY AND DEMAND)

2.36 TW.h

0

- 5.09 TW.h

FRANCE

15.9

0.8

17.40.8

13.2

7.3

9.1

25.5

19.8

0.5

6.5

2.9

48 in 2013

52 in 2014

GERMANY

BELGIUM

SWITZERLAND

ITALY

SPAIN

GREAT BRITAIN

13

AMIENS

ROUEN

PONTOISE

LAON

CHARLEVILLE-MÉZIÈRES

CHÂLONS-SUR-MARNE

BAR-LE-DUC

TROYES

AUXERREORLÉANS

BLOIS

BOURGESNEVERS

LONS-LE-SAUNIER

MÂCON

BOURG-EN-BRESSE

ANNECY

CHAMBERY

SAINT-ÉTIENNE

GRENOBLE

LYONSCLERMONT-FERRAND

MOULINS

GUÉRET

POITIERS

LA ROCHE-SUR-YON

LA ROCHELLE

NIORT

ANGOULÈME

PÉRIGUEUX

BORDEAUX

MONT-DE-MARSAN

PAUTARBES

FOIX

PERPIGNAN

CARCASSONNE

TOULOUSEAUCH

MONTAUBAN

AGEN

CAHORSRODEZ

ALBI

MONTPELLIER

MARSEILLE

AVIGNONNÎMES

MENDE

TOULON

NICE

DIGNE-LES-BAINS

CHÂTEAUROUX

LIMOGES

TULLE

AURILLAC LE PUY-EN-VELAY

PRIVAS

VALENCE

GAP

DIJON BESANÇON

BELFORT

VESOUL

CHAUMONT

ÉPINALCOLMAR

STRASBOURG

METZ

NANCY

PARIS

ÉVRY

VERSAILLES

CHARTRES

LE MANSLAVAL

RENNES

NANTES

ANGERSTOURS

ÉVREUXCAEN

ALENÇON

SAINT-BRIEUC

QUIMPER

VANNES

SAINT-LÔ

GRID PROJECTS

Refurbishment of lines

Construction of new lines

Project being studied

Construction or adaption of a substation

Supply securityManagement of low voltage levelsManagement of high voltage levelsShort-circuit current controlNetwork stability

Generation connection

Aim

Combined cycle gas turbines

Renewable energy

Tidal power

EXISTING NETWORK400 kV line225 kV line

Power supply to the areas surrounding Gex and Bellegarde

Nancy power supply

Lyons power supply

Marseilles power supply

Montpellier power supply

Perpignan power supply

Mont-de-Marsan power supply

Bordeaux power supply

Supply security in the south west of France

Clermont-Ferrand power supply

Moulins power supply

North Orleans power supply

Power supply of the conurbation of Paris

North Orleans generation connection

Generation connection in Aube

Mayenne power supply

Tours power supply

Beauvais power supply North Lorraine

power supply

Management of low voltage levels in the north west

Management of low voltage levels in the south

west of France

Boulogne-sur-Mer power supply

Côte d'Or power supply

MAJOR ACHIEVEMENTS IN 2014

15

AMIENS

LILLE

ROUEN

PONTOISE

LAON

CHARLEVILLE-MÉZIÈRES

CHÂLONS-SUR-MARNE

BAR-LE-DUC

TROYES

AUXERREORLÉANS

BLOIS

BOURGESNEVERS

LONS-LE-SAUNIER

MÂCON

BOURG-EN-BRESSE

ANNECY

CHAMBERY

SAINT-ÉTIENNE

GRENOBLE

LYONCLERMONT-FERRAND

MOULINS

GUÉRET

POITIERS

LA ROCHE-SUR-YON

LA ROCHELLE

NIORT

ANGOULÈME

PÉRIGUEUX

BORDEAUX

MONT-DE-MARSAN

PAUTARBES

FOIX

PERPIGNAN

CARCASSONNE

TOULOUSEAUCH

MONTAUBAN

AGEN

CAHORSRODEZ

ALBI

MONTPELLIER

MARSEILLE

AVIGNONNÎMES

MENDE

TOULON

NICE

DIGNE-LES-BAINS

CHÂTEAUROUX

LIMOGES

TULLE

AURILLAC LE PUY-EN-VELAY

PRIVAS

VALENCE

GAP

DIJON BESANÇON

BELFORT

VESOUL

CHAUMONT

ÉPINALCOLMAR

STRASBOURG

METZ

NANCY

PARIS

ÉVRY

VERSAILLES

CHARTRES

LE MANSLAVAL

RENNES

NANTES

ANGERSTOURS

ÉVREUXCAEN

ALENÇON

SAINT-BRIEUC

QUIMPER

VANNES

SAINT-LÔ

AMIENS

LILLE

ROUEN

LAON

CHÂLONS-SUR-MARNE

BAR-LE-DUC

TROYES

AUXERREORLÉANS

BLOIS

BOURGESNEVERS

LONS-LE-SAUNIER

MÂCON

BOURG-EN-BRESSE

ANNECY

CHAMBERYLYONSCLERMONT-

FERRAND

MOULINS

GUÉRET

POITIERS

LA ROCHELLE

NIORT

ANGOULÈME

PÉRIGUEUX

BORDEAUX

PAUTARBES

FOIX

PERPIGNAN

CARCASSONNE

AUCH

AGEN

CAHORS

ALBI

MONTPELLIER

AVIGNONNÎMES

MENDE

NICE

DIGNE-LES-BAINS

CHÂTEAUROUX

LIMOGES

TULLE

AURILLAC LE PUY-EN-VELAY

PRIVAS

GAP

DIJON BESANÇON

BELFORT

VESOUL

CHAUMONT

ÉPINALCOLMAR

NANCY

PARISVERSAILLES

CHARTRES

LE MANSLAVAL

RENNES

ANGERSTOURS

ÉVREUXCAEN

ALENÇON

SAINT-BRIEUC

QUIMPER

VANNES

SAINT-LÔ

GRID PROJECTS

Refurbishment of lines

Construction of new lines

Project being studied

Construction or adaption of a substation

Supply securityManagement of low voltage levelsManagement of high voltage levelsShort-circuit current controlNetwork stability

Generation connection

Aim

Combined cycle gas turbines

Renewable energy

Tidal power

EXISTING NETWORK400 kV line225 kV line

SAINT-ÉTIENNE

GRENOBLE

VALENCE

RODEZ

MONT-DE-MARSAN

LA ROCHE-SUR-YON

PONTOISE

TOULOUSE

MONTAUBAN

MARSEILLESTOULON

STRASBOURG

METZ

ÉVRY

CHARLEVILLE-MÉZIÈRES

NANTES

MAJOR TEN-YEAR PROJECTS

Origin: Ten-Year Development Programme for the 2014 Grid

17

GEARING 2013 2014

Ratio net indebtedness / equity 61.2% 63.4%*

ECONOMIC PROFITABILITY (ROCE) 2013 2014

Ratio EBIT / capital employed for business 8.5% 6.8%

FINANCIAL PROFITABILITY (ROE) 2013 2014

Ratio net profit / equity 9.6% 7.4%

INCOME STATEMENT FINANCIAL INDICATORS

Millions of euros 2013 2014

Turnover 4,702 4,461

EBITDA 1,788 1,687

EBIT 1,120 959

Financial result -305 -308

Net income 494 379

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

FINANCIAL RESULTS FOR THE RTE GROUP

The transmission cost represents 8% of a domestic customer’s electricity

bill on average

HISTORY OF RTE’S INVESTMENTS (MILLIONS OF EUROS)

ASSETS (millions of euros) 2013 2014

Net fixed assets 14,420 15,054

Receivables and inventories 1,699 1,717

Cash flow and short financial assets 462 1,361

LIABILITIES (millions of euros) 2013 2014

Equity 5,135 5,109

Provisions 883 1,156

Financial indebtedness 7,921 9,238

Other liabilities 2,642 2,629

SIMPLIFIED BALANCE SHEET

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.

* Provisional figure.

2014 2015(1)2005 2006 2007 2008 2009 2010 2011 2012 2013

1,500

1,200

900

600

300

0

1,49

7

566

633 77

3

834

1,02

1

1,17

0

1,15

8

1,35

7

1,44

6

1,37

4

Within the perimeter of RTE investments approuved by CRE in current euros.(1) Investment figure approved by CRE in 2015.

19

RTE GROUP ORGANIZATIONAL STRUCTURE AS OF JANUARY 2015

36.7%

51% 50%

100%

22.49%

100% 7.14%

12.1%

100%

100%

6.67%

100%

DECLARANET

HGRT

21

ORGANIZATION OF RTE AS OF JANUARY 2015

CHIEF COMPLIANCE OFFICER

CHAIRMAN OF THE MANAGEMENT BOARD

CHIEF OF STAFF

MANAGEMENT BOARD

EXECUTIVE COMMITTEE

7 regional officers

European Affairs

Integration of the European Market

Legal Affairs

5 missions

7 Regional legal affairs centres

Communication & Public Affairs

Audit and Risks

Sustainable Development

Real Estate & Logistics

7 Real Estate & Logistics Centres

Technical Control of Works

3 TCW teams

General inspection

Finance

Regulation and Finance

Management Control

Accounting & Taxation

Funding & Cash flow

3 accounting sites

Procurement

5 centres

7 procurement agencies

IS & Telecoms

IS Expertise & Operation (CEESI)

IS Programme Engineering & Maintenance (CIMPSI)

Customers & Markets

Network access and service proposals

Markets

Marketing

8 Commercial offices

Economy, forecasts& Transparency

Economy and Forecasts

Information and transparency

R&D & Innovation

Power system expertise

Innovation

Transformation

HR &Social Relations Guidance

Health, Safety and Quality of Life at Work

7 HR advisory centres

9 Careers guidance officers

11 Occupational health and safety experts

HR Operations

Competency job career path

Professional development of staff

Remuneration, time and work contracts

Talents and executives with staff management responsibilities

7 HR agencies

Development & Engineering

Project and Programme Steering

Asset Management

Consultation and Environment

7 Development and Engineering centres

Network development design office (SEDRE)

Operations

Operations Department

8 Operations centres

Maintenance

Existing Network Maintenance

7 Maintenance centres

National Centre for Grid Expertise

3 expertise departments

National Engineering Development Group (GDIN)

Live maintenance (SERECT)

Helicopter work (STH)

Deputy Chief Executive Officer

in charge of European Affairs

General SecretariatChief Economist,

Markets & Innovation Officer

Chief Human Resources Officer

Chief Operations Officer

Chief Financial Officer in charge

of Finance, Procurement and

Information Systems and Telecoms

Key:

Divisions, centres

Departments, offices,centres, missions, etc.

Regional entities

23

NOTES

1, terrasse Bellini TSA 4100092919 La Défense Cedex

www.rte-france.com

MEMO 2015

1, terrasse Bellini TSA 4100092919 La Défense Cedex

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