Areva - Reference Document 2016

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RISK FACTORS 4.3 Legal risks

4.3.

LEGAL RISKS

4.3.1. REGULATORY RISK

The group conducts its operations under operating licenses and permits, in accordance with local laws. In particular, these operations require licenses relating to production capacities and to environmental releases from the facilities. In conducting its operations, the groupmust comply with applicable legislation and regulations, in particular concerning the protection of the environment, employees, public health and nuclear safety, and with its operating licenses and permits. The operator may be subject to sanctions, including administrative sanctions, in the event of an incident or lack of compliance with applicable regulations or operating permits and licenses. Such sanctionsmay include, among others, the temporary suspension of operations or measures to enforce compliance or to restore normal conditions. In addition, damage to the environment, to public health or to occupational safety, or the non- compliance of the group’s facilities could result in liabilities for some of the group’s entities with regard to third parties and government agencies. Moreover, a strengthening of or change in legislation or regulations, particularly in areas such as environmental protection, health and nuclear security, could involve compliance enforcement of the group’s facilities, which would likely have a significant impact on the group’s operations or financial position. In France in particular, the French Nuclear Safety and Transparency Law of June 13, 2006 (“TSN Law”) codified in the Environmental Code requires a periodic reassessment of nuclear safety which is likely to translate into considerable expense for compliance, but this would bolster the facilities’ nuclear safety and ensure their long-term viability. Similarly, the order of December 12, 2005, as amended, on pressurized nuclear equipment designed for use in nuclear reactors (the “ESPN Order”) strengthens

requirements and inspections to take into account nuclear safety and radiation protection requirements incumbent upon the manufacturer, which is responsible for the compliance of this equipment. This is likely to prolong the time needed by the French nuclear safety authority ASN to pronounce the compliance of the most significant pressurized nuclear equipment. The group may also not receive on a timely basis permits or licenses to modify or expand its industrial operations for which it has applied or may apply, whether in France or abroad, possibly limiting its growth capabilities. Furthermore, some operations, such as those of the Mining Business Unit in certain countries, are subject to special tax rules whose modification could have a negative impact on the group’s financial position. In addition, the group pays particular attention to regulations with which non- compliance could expose the group to criminal or civil penalties and significantly affect its operations, image and reputation. NUCLEAR AND ENVIRONMENTAL REGULATIONS The group’s operations are subject to constantly changing and increasingly stringent national and international regulations in the nuclear and environmental fields. The list of the group’s regulated nuclear facilities (see Glossary ) or similar facilities is presented in the table opposite. 4.3.1.1.

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2016 AREVA REFERENCE DOCUMENT