EDF / 2018 Reference document

RISK FACTORS AND CONTROL FRAMEWORK Risks to which the Group is exposed

THE EDF GROUP'S MAIN SPECIFIC RISKS ARE GROUPED INTO FIVE CATEGORIES

External risk factors Internal risk factors

Competitive and general context section 2.1.2 Competition Wholesale energy market Low-carbon transition solutions Climate consequences Malicious acts and cyber attacks Blackout Æ Æ Æ Æ Æ Æ

Regulation of the energy markets section 2.1.1

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Public energy policies, the PPE (multi-year energy programme) and market regulation Tariff regulation Concessions

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Nuclear activities section 2.1.5

Operational performance section 2.1.4

Transformation of the Group section 2.1.3

Nuclear safety and nuclear civil liability Continuation of period of operation Radioactive waste and decommissioning EPR projects Æ Æ Æ Æ

Control of large projects Control of performance

Group strategy implementation Adaptation of skills

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Supply chains and customers Financial risks (liquidity, rates) Health and safety at work Ethics and compliance

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several decades or more, given the nature of the relevant industrial activities which may span centuries). This time horizon is indicated in the risk description when it is considered relevant. Estimates of the order of magnitude of the financial consequences caused by the occurrence of certain risks taken in isolation are mentioned for information purposes only in the body of this section 2.1 "Specific risks to which the Group is exposed". The measures taken by the Group to control the activities and risks to which it is exposed, and to implement appropriate control, prevention and mitigation actions, are described in section 2.2 "Control of Group risks and activities". Additional measures addressing occupational health and safety risks are described in section 3.2.2.1 "A standard-setter in terms of health and safety: the well-being of the women and men in our company, and that of our contractors, is an absolute priority" and those relating to the risks of breach of ethics and compliance are described in section 3.5.1 "Ethics and compliance".

The risks specific to the Group are classified into 5 categories and described in detail in each of the sections concerned for their respective category. They are numbered to facilitate the link between the following table and the detailed descriptions. Risks were grouped by importance in a qualitative approach that takes into account both the potential impact on the Group and the probability of occurrence. Thus, the most important risks (marked with a + sign in the below table) are identified in each category, without assuming the relative importance of the risks between them or the relative importance between categories. As a general rule, the scope of exposure is France, Europe and international. Where the scope of exposure is more restrictive, it is specified in the table and in the risk description. Exposure to risk may vary according to duration. The potential impact of these risks may produce effects at very different time horizons, ranging from very short term (less than a year), to medium term (up to a few years) to very long term (up to

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EDF I Reference Document 2018