EDF_REGISTRATION_DOCUMENT_2017

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

Main risk factors Regulation of the energy markets, section 2.1.1

Scope of exposure

Modes of valuation by the regulation of low-carbon solutions ■

France-Europe-International France-Europe-International France-Italy-International France-Europe-International France-Europe-International France-Europe-International France-Europe-International France-Europe-International France-Europe-International France-Europe-International France-Europe-International France-Europe-International France

Changes to the regulatory framework of tariffs ■

Changes to the regulatory framework for the renewal of concessions ■

Energy transition causing a profound transformation of the Group’s business portfolio ■

Changes to energy policies slowing the development of the Group ■ Insufficient compensation for services in the public interest ■

2.

Increased competition in the energy markets ■ Exposure to the wholesale energy market ■ Unfavourable economic circumstances ■

Competitive and general context, section 2.1.2

Seasonal activities ■

Exposure to climatic risk ■

Changes to the environmental and health regulatory framework ■ Vulnerability caused by the political, macroeconomic or financial context or ■ circumstances of a region or a country

Changes to international accounting standards ■

France-Europe-International France-Europe-International

Difficulty in making changes to the portfolio of activities according to the objectives ■ targeted Maintenance of ability to promote synergies and integrated solutions ■ upstream/downstream and with the subsidiaries of the Group Ability to perform the Group’s acquisition and disposal operations and reach the ■ targeted objectives Maintain the ability to adapt and develop skills according to the requirements of the ■ Group Maintain the ability to ensure the long-term social and financial commitments of the ■ Group

Transformation of the Group, section 2.1.3

France-Europe-International

France-Europe-International

France-Europe-International

France-Europe-International

Ability to improve the operational and financial performance ■ Granting and renewal of administrative authorisations ■

Operational performance of the Group, section 2.1.4

France-Europe-International France-Europe-International France-Europe-International France-Europe-International France-Europe-International France-Europe-International France-Europe-International France – United Kingdom – Italy France-Europe-International France-Europe-International France-Europe-International

Control of large projects ■

Ability to implement the digital transition ■ Malicious attacks against information systems ■

Control of industrial risks ■

Health at work ■

Quality of employment/management dialogue and of industrial relations ■

Default of Group’s counterparties ■

Financial risks ■

Reputational risks ■

Operational nuclear safety ■

Nuclear activities of the Group, section 2.1.5

France – United Kingdom France – United Kingdom

Ability to continue the period of operation ■

Ability to carry out the “Grand Carénage” programme ■ Ability to build and operate the EPR reactors ■ Industrial dependency for specific skills ■ Ability to integrate Framatome and develop synergies ■

France

France – United Kingdom – China

France-Europe-International France-Europe-International France – United Kingdom France – United Kingdom

Ability to control the nuclear fuel cycle ■

Ability to control the decommissioning of reactors and the final processing of ■ radioactive waste

Exercise of nuclear civil liability ■

France – United Kingdom

2.1.1

RISKS ASSOCIATED WITH THE

Some orders of magnitude for the potential financial effects related to the materialisation of certain risks are mentioned without limitation in the present section 2.1, for information purposes only. Certain risks may also turn into potential opportunities for the Group. The measures taken by the Group to control the risks to which it is exposed are described in section 2.2 “Control of the risks and activities of the EDF group”.

REGULATION OF ENERGY MARKETS

The regulation of the market for CO 2 emissions quotas, such as changes in the prices of these quotas, is likely to affect the profitability of the Group and its objectives in matters of low-carbon energy solutions. There is a risk, potentially caused by inappropriate regulation, that the prices of CO 2 remain low and do not enable sufficient development of low-carbon energy solutions, to the detriment both of the fight against climate change and the Group. This may risk a loss of opportunity to promote the Group’s low-carbon energy solutions.

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EDF I Reference Document 2017