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

Risk Factors
A serious nuclear accident anywhere in the world may have significant consequences
for the EDF Group
Despite the precautions taken in their design and operation, a serious accident at a nuclear
facility cannot be excluded, such as the nuclear accident in Japan, following the earthquake
and tsunami that devastated the north of the country on 11 March 2011. This type of
accident may turn public opinion against nuclear power and lead the competent authorities to
substantially tighten power plant operating requirements or to refuse authorisation for
proposed extensions of the operating life of power plants, leading to a temporary or
permanent suspension of the operation of one or more nuclear facilities, or leading the
authorities to consider a moratorium on the use of nuclear power to generate electricity and,
therefore, also to suspend or cancel all ongoing nuclear power plant development projects.
Such decisions were taken in Germany (suspension of nuclear power generation) and Italy
(suspension of nuclear power plant construction projects) following the Fukushima accident.
Such decisions could be taken even if no accident occurs.
If such an accident were to occur near one or more of the EDF Group’s facilities, it could also
contaminate the environment and thus jeopardise their operation.
Such events would have a material, negative impact on the business model, strategy,
activities, results, financial position and outlook of the EDF Group.
The EDF Group’s nuclear business is subject to particularly detailed and restrictive
regulations that may become more stringent
The EDF Group’s nuclear business is subject to detailed and restrictive regulations, with a
system in place, in particular in France, that monitors and periodically re-examines operating
authorisations, primarily on the basis of nuclear safety, environmental and public health
protection and national safety considerations (terrorist threats in particular). These
regulations may be significantly tightened by national and European authorities.
Furthermore, the regulations may be tightened due to inter alia decisions that may be taken
following the Fukushima accident or possible non-compliance with current or future
regulations, which could result in the temporary or permanent shutdown of one or more of
the EDF Group’s plants.
Such events may result in a significant increase in the costs of the EDF Group’s nuclear
power plants, which may have a negative impact on its financial position.
For its nuclear business, the EDF Group depends on a limited number of contractors
Although the EDF Group has adopted a policy to diversify the suppliers and service
providers for its nuclear business, it is currently dependent on a limited number of
contractors and persons who have the necessary qualifications and experience. This limits
competition in the markets in which EDF is a buyer and exposes the EDF Group to the risk of
a default of one or more of these suppliers or service providers with specific expertise, which
could have a negative impact on the EDF Group’s results and financial position.
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