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2.

RISK FACTORS AND CONTROL FRAMEWORK Insurance

At the same time, the plaintiff filed with CONSOB in May 2012 a request to increase the price of the mandatory takeover bid based on practically identical arguments to those filed for the proceedings on merits before the Administrative Court. CONSOB dismissed this request on 25 July 2012. The plaintiff did not appeal against this decision. In March 2015, the plaintiff also issued civil proceedings before the Court in Milan seeking damages from EDF, A2A and Edison on the basis of a similar fact-based line of reasoning as that used for the administrative proceedings. The proceedings were served on EDF on 27 March 2015. In this case, the plaintiff claims that the negotiations between EDF and A2A that led to the takeover of Edison and Edipower were not conducted in line with Edison’s sound management principle and harmed the interests of its minority shareholders. The plaintiff alleges that it was forced to sell its shares under the mandatory takeover bid launched following the acquisition of control of Edison as otherwise its holding in approximately 10% of Edison’s share capital would have lost all liquidity. For the record, the bid price was €0.89 per common share. The plaintiff alleges a loss caused by a drop in value of approximately €294 million in the Edison securities recorded on its balance sheet as at 31 December 2011. However, it has not given an exact figure for the damages it claims and asks the court to appoint a court expert to assess the exact amount of its loss. On 26 January 2016, a procedural hearing was held before the Civil Court in Milan. The court decided that replies must be filed by 29 March and 18 April. In a decision issued on 5 May 2016, registered and notified to the parties on 2 November 2016, the Court dismissed the procedural pleas and the applications to strike out filed against the plaintiff and set the date of the first directions hearing (20 December 2016). At this hearing, the timetable for the submission of the parties’ statements of case was decided. The next hearing will take place on 10 April 2018. Measures taken by employees concerning exposure to asbestos or other harmful chemical substances Over the last years, Edison has faced a significant increase in the number of claims for damages arising from the death or illness of employees that were allegedly

caused by exposure to several forms of asbestos at factories owned by Montedison, or other judicial cases assumed by Edison as a result of corporate acquisitions. Furthermore, Edison is involved in several criminal proceedings filed by former employees of companies belonging to the Edison group or their legal successors, arising from exposure to harmful chemical substances emitted by Montedison’s facilities (since transferred to Enimont which became Enichem, a subsidiary of ENI). Environmental litigation Edison is involved in several criminal proceedings currently underway concerning damages caused by the operation of Montedison’s chemical factories (petrochemical facilities in Porto Marghera, Crotone, Mantua and Cesano Maderno) prior to their sale to Enimont. These criminal proceedings also include actions brought by third parties concerning personal injuries related to the alleged environmental damage.

2.4.3

LITIGATION HAVING ARISEN AFTER

THE CLOSING OF THE 2017 FINANCIAL YEAR

Appeal of the ruling by the European Commission authorising EDF's takeover of Framatome On 3 February 2018, the company Teollisuuden Voima (TVO) filed with the General Court of the European Union an application for annulment, on the basis of merger control, of European Commission dated 29 May 2017 authorising EDF's takeover of Framatome. The notice of appeal, which is expected to contain the grounds and main arguments raised by TVO, the content of which EDF is unfamiliar with, has not yet been published in the European Union's Journal Officiel.

2.5

INSURANCE

develop and manage the tools necessary to perform the above tasks, including ■ within the subsidiaries that report to the Insurance Department: EDF Assurances and the Group’s captive insurance companies (see section 2.5.2. “Use of captive insurance companies and mutual insurance funds”). The Insurance Managers of entities and controlled subsidiaries that join the Group’s programmes are responsible for: ensuring that all risks are insured; ■ scheduling prevention inspections and overseeing implementation of the ■ resulting recommendations; reviewing cover strategies and amounts declared (risk quantification); ■ analysing losses and participating in claims handling. ■ This work, which is carried in close conjunction with the Group Insurance Division, continuously improves the quality of information about insurable risks as programmes are renewed and prevention inspections are carried out (assessment of maximum possible losses – “MPL”). In connection with prevention actions, the Insurance Division establishes and oversees implementation of the site inspections programmes. The Group insurance policy, updated in 2016, was approved by the Executive Committee in January 2017. Its implementation is presented annually to EDF’s Audit Committee.

To protect its assets and limit the impact of certain events on its financial position, the EDF group has dedicated insurance programmes that cover its major risks in terms of property damage, civil liability and insurance of persons. Nuclear risks are subject to the specific civil liability regime described below.

2.5.1

INSURANCE ORGANISATION AND

POLICY The Group Insurance Division is responsible, while respecting the independence of management of the regulated infrastructure operators, for preparing the insurance policy of the EDF group and organising its implementation throughout the Group, in order to continuously optimise the overall costs of its insurable risks (1) . Its duties are to: continuously analyse cover for the EDF group’s risks in conjunction with the ■ Group Risk Department: analysis by business line, entity and project; establish rules for the Group’s entire scope that enable covering all risks that can ■ and must be covered, as well as optimising the total cost thereof and reducing volatility; promote and apply these rules to all Group entities, using appropriate means and ■ in compliance with governance rules; and

Risks that can be transferred to the insurance markets and the alternative markets. (1)

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