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

Risk Factors
However, it cannot guarantee that measures adopted will always prove sufficient, which may
have an impact on its activities and financial results.
The EDF Group may be required to meet significant commitments related to pensions
and other employee benefits
The pension plans applicable in the various countries in which the EDF Group operates
involve long-term commitments to pay benefits to the EDF Group’s employees. In France, in
addition to these pension commitments, the EDF Group also owes obligations for postemployment
benefits and long-term benefits for employees currently in service.
To cover these commitments, the EDF Group has set up outsourced funds or pension funds,
as appropriate. At the end of 2011, such assets only partially covered these commitments,
although, for the EDF Group, the maturity dates of these obligations are relatively smoothed
over time.
The amounts of these commitments, the provisions booked, the outsourced funds or pension
funds set up and the additional contributions required to make up insufficient funding are
calculated based on (i) certain actuarial assumptions, including a discount rate subject to
adjustment depending on market conditions; (ii) the rules governing retirement benefits paid
out by the general retirement scheme; and (iii) amounts owed by the EDF Group. These
assumptions and rules may be adjusted in the future, which could increase the EDF Group’s
current commitments for pensions and other employee benefits and, therefore, require a
corresponding increase in provisions.
Furthermore, if the value of outsourced funds or pension funds proves insufficient to meet
the corresponding commitments, in particular in the United Kingdom and the United States,
primarily due to calculation assumptions or developments in the financial markets, the EDF
Group may be obliged to make additional contributions to the relevant funds, which may
have a negative impact on its financial position and financial results.
Labour disputes could have a negative impact on the EDF Group’s business
The EDF Group cannot exclude that labour disputes or unrest, such as strikes, walkouts,
claims or other labour disturbances, will not disrupt its business. The EDF Group has not
taken out any insurance to cover losses due to business disruptions caused by labour
movements. Consequently, its financial position and operating results may be adversely
affected by labour unrest.
The EDF Group has set up programmes to improve its operating and financial
performance and increase its financial flexibility. The objectives set for these
programmes may not be achieved
The EDF Group has set up and may set up programmes to improve its operating and
financial performance and increase financial flexibility. In 2011, building on prior
programmes, the EDF Group initiated a new “Group Synergies and Transformation”
programme, which focuses on three areas for improving performance: purchases, by pooling
purchases at the EDF Group level; the development of synergies within the EDF Group; and,
lastly, continuation of the measures initiated in 2008 pursuant to the prior programme entitled
“Operational Excellence”. The EDF Group has identified areas offering potential gains of
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