Under the Euro Medium Term Note Programme ... - Finance - EDF

Risk Factors
managed pension funds and, to a lesser extent, in connection with its cash
assets and investments held directly by the EDF Group.
(d)
Interest rate risk: the EDF Group’s exposure to changes in interest rates
involves two types of risks: (i) the risk of changes in the value of fixed-rate
financial assets and liabilities and (ii) the risk of changes in cash flows
associated with variable-rate financial assets and liabilities. Interest rate risk
is also associated with debt securities held in connection with the
management of dedicated assets constituted to cover the EDF Group’s longterm
commitments in relation with the nuclear business and its commitments
with respect to pensions and other specific employee benefits.
The EDF Group cannot guarantee that it is totally protected, in particular in the event of
significant fluctuations in foreign exchange rates, interest rates and the equities markets.
A default by the EDF Group’s counterparties (partners, subcontractors, service
providers, suppliers or customers) may have an impact on its activities and results
Like all economic operators, the EDF Group is exposed to a possible default by certain
counterparties (partners, subcontractors, service providers, suppliers or customers), in
particular in the event they experience occasional financial difficulties or if bankruptcy
proceedings are initiated against them. A default by these counterparties may impact the
cost of projects carried out by the EDF Group, the quality of work performed, completion
deadlines or the procurement of certain critical products or services, and exposes the EDF
Group to reputational risk, business continuity risk for certain projects or the loss of
contracts, as well as significant additional costs, in particular if EDF is required to find
satisfactory alternatives or take over the relevant activates and/or pay contractual penalties,
which would have a negative impact on its activities and financial results.
The EDF Group could be held liable for the occurrence of occupational illnesses or
accidents
Although the EDF Group takes the steps necessary to comply with the health and safety
laws and regulations in the various countries in which it operates, and considers that it has
taken the measures required to ensure the health and safety of its employees and of its
subcontractors’ employees, the risk of occupational illnesses or accidents cannot be
excluded. The occurrence of such events may lead to lawsuits against the EDF Group and
may result in the payment of damages, which could be significant.
Regarding asbestos, the EDF Group has taken measures to treat materials, as well as
information and protection measures.
Specific risks related to the EDF Group’s nuclear activities
The EDF Group is the world’s leading nuclear operator 9 . Nuclear-generated electricity
accounts for approximately 91.6% of the power it generates in France. Since 2009, EDF has
operated nuclear assets in the United Kingdom and the United Sates (through CENG). The
share of nuclear energy in the EDF Group’s electricity mix is thus a major competitive
9 Source: Nuclear Power Reactors in the World, International Atomic Energy Agency, 2010 edition.
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