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

Risk Factors
In the field of nuclear power generation, the EDF Group may not achieve the expansion it
anticipates, or it may be unable to carry out projects it has initiated abroad or it may be
unable to carry out such projects under satisfactory economic, financial and legal conditions.
Through partnerships or equity investments, the EDF Group is committed to international
projects for the construction and operation of nuclear power plants (in particular, in China
and the United Kingdom). During the development phase, these projects require obtaining
administrative authorisations, licences, permits and, in certain cases, setting up additional
partnerships. These are major projects involving significant investment, and their funding
conditions are subject to confirmation. Given the current economic climate, obtaining such
funding may be delayed. Furthermore, the regulatory framework in some countries is in the
process of being updated, which could have an impact on EDF’s commitments and liability.
Even when it has negotiated protective contractual arrangements, the EDF Group cannot
guarantee that any or all of these projects will be carried out in accordance with the
anticipated schedules, under satisfactory economic, financial, regulatory or legal conditions
or that they will, in the long term, generate the profitability anticipated at the outset, which
could have a significant negative impact on the EDF Group and its financial position.
Furthermore, the expansion of the EDF Group’s gas business is an important issue, both in
terms of the use of gas in power generation and the development of dual gas/electricity
offers. The outlook for global supply and demand for gas is changing (the boom in
unconventional sources of gas, particularly in the United States, rising demand in emerging
countries, etc.). The competitive environment for the gas sector is evolving in France and in
Europe with the emergence of new operators and the mergers of energy companies. The
dependence of European countries on imports of natural gas is already high and continues
to increase, due mainly to the depletion of local resources and increasingly distant sources of
supply. To implement its gas strategy, the EDF Group must not only have access to
competitive sources of supply, but also to logistical infrastructure (such as storage, gas
pipelines and LNG terminals) that allow it to transport its gas to locations near points of
consumption, have the requisite flexibility and generate synergies between the various
entities of the EDF Group, including those which it does not control. The EDF Group cannot
guarantee that that it will always have access to gas supply sources (through long-term
contracts or the acquisition of gas fields, for example) or to gas infrastructure, or that it will be
able to generate the synergies anticipated. All of these factors may slow the expansion of the
EDF Group’s gas strategy, which would have a negative impact on its activities, financial
results and outlook.
Lastly, the EDF Group also intends to develop and strengthen its offer of integrated services,
including eco-efficiency energy services as part of a sustainable development approach. The
energy services market is very competitive, and the energy efficiency market has strong
development potential. The EDF Group cannot guarantee that its service offer will be
successful or that it will always be able to implement its development policy in this area,
which may have a negative impact on its financial results and outlook.
More generally, the EDF Group may face unexpected changes in its regulatory, economic
and competitive context, which may render its decisions inappropriate, or it may encounter
difficulties in implementing or changing its strategy, which may have a negative impact on
the EDF Group’s financial results and outlook.
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