Areva - Reference Document 2016

20

20.2 Notes to the consolidated financial statements for the year ended December 31, 2016 FINANCIAL INFORMATION CONCERNING ASSETS, FINANCIAL POSITION AND FINANCIAL PERFORMANCE

Final waste removal and disposal AREVA sets up a provision for expenses related to radioactive waste. These expenses include: p the removal and near-surface disposal of short-lived, very low-level and low-level waste and its share of monitoring of Andra’s Centre de la Manche and Centre de l’Aube disposal facilities, which received or still receive these waste; p the removal and underground disposal of long-lived low-level waste (graphite); p the removal and disposal of long-lived medium- and high-level waste covered by the French law of December 30, 1991 (now codified in articles L. 542-1 et seq. of the French Environmental Code). The provision is based on the assumption that a deep geologic repository will be deployed(hereinafter called Cigéo). Concerning the ministerial order of January 15, 2016, which set the cost pertaining to implementation of Cigéo at 25 billion euros, that impact had already been taken into account in 2015 and there was no change in that assumption in 2016. For purposes of sensitivity analysis, any increase of one billion euros in the amount of the estimate for the Cigéo project would lead to an additional charge of 29million euros by AREVA, based on the method used to establish the existing provision.

At December 31, 2016, the use of a discount rate of 25 bp higher or 25 bp lower than the rate used (4.10%) would have had the effect of changing the value of end- of-lifecycle provisions falling within the scope of the French law of June 26, 2006 by (360) million euros with a discount rate by +25 bp and +394 million euros with a discount rate by -25 bp. By letter dated February 28, 2017, the Minister of Economy and Finance and the Minister of Environment, Energy and Oceans informed the Chairman of the Board of Directors of AREVA NC of their decision to modify the formula for calculating the regulatory cap on the discount rate, as from 2017. This decision will translate into a change in the order of March 21, 2007, amended by the order of March 24, 2015. The new formula would gradually lead, over a period of 10 years starting with the regulatory cap recognized at December 3, 2016 (4.3%), to, in 2026, a cap equal to the average for the last four years of the 30-year Treasury Constant Maturity Rate (TEC 30) plus 100 basis points.

TENTATIVE SCHEDULE OF PROVISION DISBURSEMENTS The following table shows the forward payment schedule of provisions both within and outside the scope of the law of June 28, 2006, excluding Andra’s monitoring costs:

December 31, 2016 NewCo

(in millions of euros)

2017

292

2018 – 2020 2021 – 2025 2026 – 2035

1,402 1,592 1,667 8,525

2036 and beyond

TOTAL PROVISIONS BEFORE DISCOUNTING

13,478

ASSETS EARMARKED FOR END-OF-LIFECYCLE OPERATIONS

Continuing operations

(in millions of euros)

December 31, 2016 December 31, 2015

Receivables related to end-of-lifecycle operations

- - -

739

Earmarked assets

5,383 6,122

TOTAL

218

2016 AREVA REFERENCE DOCUMENT