Under the Euro Medium Term Note Programme ... - Finance - EDF
Under the Euro Medium Term Note Programme ... - Finance - EDF
Under the Euro Medium Term Note Programme ... - Finance - EDF
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Risk Factors<br />
could be forced to initiate such an offer under unfavourable conditions, especially with<br />
respect to price, which may have a negative impact on its financial position.<br />
Risks related to <strong>the</strong> international scope of <strong>the</strong> <strong>EDF</strong> Group’s activities<br />
Certain <strong>EDF</strong> Group investments and commitments are exposed to risks and uncertainties<br />
associated with doing business in countries that may experience, or have recently<br />
experienced, periods of political or economic instability. Several countries in which <strong>the</strong> <strong>EDF</strong><br />
Group operates have regulations that are less advanced and less protective, practice or may<br />
initiate controls or restrictions on repatriation of profits and capital invested, levy or may levy<br />
taxes and fees affecting <strong>the</strong> <strong>EDF</strong> Group’s activities and impose or may impose restrictive<br />
rules on <strong>the</strong> business of international groups. In <strong>the</strong>se countries, <strong>the</strong> electricity sector is also<br />
subject to sometimes rapidly changing regulations which may be influenced by political,<br />
social and o<strong>the</strong>r considerations, which may affect <strong>the</strong> operations or financial position of <strong>EDF</strong><br />
Group subsidiaries in a way that is contrary to its interests. The occurrence of any of <strong>the</strong>se<br />
events may have a negative impact on <strong>the</strong> <strong>EDF</strong> Group’s activities, financial results and<br />
financial position.<br />
Lastly, <strong>the</strong> <strong>EDF</strong> Group has developed or built a portfolio of “Independent Power Plants” (IPP)<br />
in different parts of <strong>the</strong> world, including Brazil, Vietnam, Laos and China, in which it plays<br />
one or more roles (engineering, project owner, project manager, investor and/or operator). In<br />
<strong>the</strong>se different capacities, <strong>the</strong> <strong>EDF</strong> Group may incur liability or its financial performance may<br />
be affected, especially if <strong>the</strong> return on capital employed for <strong>the</strong> IPP is lower than expected, if<br />
long-term electricity contracts or “pass-through” clauses, if applicable, are challenged, or in<br />
<strong>the</strong> event of major changes to electricity market rules in <strong>the</strong> relevant country.<br />
The <strong>EDF</strong> Group must continually adapt its expertise in a rapidly changing<br />
environment and renew a significant share of its workforce, while ensuring experience<br />
and skills are transferred to new employees<br />
The challenges associated with achieving <strong>the</strong> <strong>EDF</strong> Group’s strategic objectives in a rapidly<br />
changing environment (in particular, <strong>the</strong> full liberalisation of markets, <strong>the</strong> international<br />
development of nuclear and “clean coal” power, <strong>the</strong> development of renewable energies,<br />
etc.) require continuously adapting and planning its expertise requirements, especially in<br />
functional and geographic areas.<br />
In France, a large number of <strong>EDF</strong> employees reaches retirement age each year, despite <strong>the</strong><br />
impact of <strong>the</strong> reform of <strong>the</strong> special pension scheme for Electricity and Gas Industry<br />
employees on average retirement age. For example, in <strong>the</strong> nuclear power generation and<br />
network maintenance sectors, approximately 40% to 45% of <strong>the</strong> workforce will be eligible for<br />
retirement within <strong>the</strong> next ten years. Although this situation represents an opportunity to<br />
adapt employees’ expertise to <strong>the</strong> <strong>EDF</strong> Group’s new challenges, <strong>the</strong> renewal of this<br />
workforce requires planning <strong>the</strong> transfer of knowledge and involves competing in <strong>the</strong> market<br />
to recruit <strong>the</strong> most competent people.<br />
The <strong>EDF</strong> Group considers skills development to be a major challenge and, <strong>the</strong>refore, takes<br />
all necessary measures to recruit, retain, redeploy or renew such skills in a timely manner<br />
and under satisfactory conditions.<br />
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