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

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