Exclusive Networks // Sustainability Report 2022

Risks and opportunities Introduction

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Risks and opportunities

Introduction

The Group conducts its activities in an international economic and political environment that was notably marked in 2022 by a tense geopolitical context, an acceleration of inflation and the tightening of monetary policy by central banks. The evolution of the Covid-19 pandemic and its uncertainties (intensity, governmental measures taken in this regard — lockdown, curfew etc.), as well as conflicts and economic crises could have a significant impact on the Group’s activities, results, financial situation, reputation or prospects. Risk analysis and management are an integral part of the Group’s various decision-making processes. They are structured around four main stages: risk identification, prioritisation, management and monitoring. As part of its risk management system, the Executive Committee periodically reviews the main risks, which are reported by the various operational departments (see below, section 2.2 “Internal control and risk management” ). Pursuant to the Prospectus Regulation, the risks presented below are identified as the most significant and specific to the Group that could have a material impact on its business, financial condition, reputation, results of operations or growth prospects as at the date of the 2022 Universal Registration Document. These risks were submitted to the Executive Committee and the Audit Committee, which, after consultation and based on their impact, agreed on the main risks. These risks were then validated by the Board of Directors on the recommendation of the Audit Committee. The selected risks are presented in a limited number of categories by type. Within each category, the most significant risks are presented first. Risk assessments are conducted while taking into account the probability of occurrence and the expected magnitude of their negative impact.

As a result of the last update of the risk map in 2022, action plans for each risk have been implemented and/ or updated. The update of the risk map in 2023 will make it possible to assess the results of the risk management measures and to present the net risk in the future. The main risks described in section 2.1 “Risk factors” below include social, environmental, societal and governance risks, identified with a pictogram ESG . . Although climate change does not appear among the major risks described in this section, the Exclusive Networks Group is fully aware of its wider responsibility within its ecosystem. The Group’s greenhouse gas assessment clearly reflects this situation, with a very high proportion of the Group’s emissions falling under Scope 3, both upstream and downstream in its value chain. The Group is committed to playing its full part in addressing climate change. Investors should note that the list of risks presented below is not exhaustive and that other risks of which the Group is currently unaware or which have not been identified as significant as at the date of the 2022 Universal Registration Document may exist, and if they were to materialise could have a significant impact on the Group, its activities, its financial situation, its results, its ability to achieve its objectives or its reputation. It should be noted that no new critical risks were identified during the 2022 financial year.

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Exclusive Networks

Sustainability Report 2022