Areva - Reference Document 2016

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

December 31, 2016

December 31, 2015

(in millions of euros)

NewCo

NewCo

By region Eurozone

5,532

5,510

Non-euro Europe

471

537

Other

82

75

TOTAL

6,086

6,122

Financial assets held as securities or mutual funds represent 87% of all earmarked assets at December 31, 2016. Earmarked assets were allocated as follows: 40% equities, 47% bonds and 13% receivables. The contractual framework for the main receivable related to end-of-lifecycle operations (receivable from the CEA in the amount of 681 million euros at December 31, 2016) was amended in 2015 in order to define a payment schedule by the CEA for the principal and interest, with the last payment scheduled for 2024.

The receivables from the CEA and EDF related to overfunding by AREVA in connection with tax payments related to financing provided to Andra between 1983 and 1999 were discussed with these two operators in 2015. The CEA confirmed to AREVA that a debt in an amount equal to AREVA’s receivable, i.e. 16 million euros, was recognized in the CEA’s accounts for the year ended December 31, 2016. In addition, 35 million euros for advance payments to be received from a third party were recorded in 2016.

Performance of financial assets earmarked for end-of-lifecycle operations by asset class (*)

2016

2015

Asset class

NewCo

NewCo

Shares

+1.4%

+12.8%

Rate products (including receivables related to end-of-lifecycle operations)

3.2% 2.4%

+1%

TOTAL FINANCIAL ASSETS EARMARKED FOR END-OF-LIFECYCLE OPERATIONS +5.8% (*) Performance reported for these asset classes includes that of mutual funds earmarked for end-of-lifecycle operations of regulated French and foreign nuclear facilities not subject to the French law of June 28, 2006.

Including interest on receivables used to determine the performance of rate instruments, the overall performance of earmarked assets would be +2.4% for the 2016 calendar year. Risk description and assessment Equity investments in the portfolio of earmarked securities include mainly: p a mandate of publicly-traded shares, which includes about thirty companies based in the European Union. The securities are held in order to generate gains over the long term. Although it is not a management guideline, the mandate will be assessed over the long term by reference to the MSCI EMU index, net dividends reinvested. The nature of the long-term mandate is not compatible with an evaluation against a benchmark; p dedicated equity funds with diversified management strategies centered on European securities. The managers must follow strict rules of exposure, depending on the objectives of the fund involved: including limits on the amounts invested per issuer or in percentage of the net value of the portfolio, limits on exposures in currencies other than the euro, tracking error (relative risk compared with the benchmark), and limits on exposures to certain types of instruments. Together, these limits are designed to comply with investment rules established in the implementing decree of the Law of June 28, 2006.

As regards securities held by AREVA NC, interest rate products in the portfolio of earmarked securities mainly include: p directly held securities consisting of government bonds from the Eurozone, which will be held to maturity. They are recognized at amortized cost under “securities held to maturity”; p dedicated bond funds and open-ended money market funds. The sensitivity to interest rates of bond funds is limited in both directions, including the portfolio’s overall consistency with preset long-term sensitivity objectives and the sensitivity of the liabilities to the discount rate used. The issuers’ ratings (Moody’s or Standard & Poor’s) are used tomanage the credit risk exposure of money market and bond funds. For Eurodif, mandates and bond funds were established specifically to match disbursement flows. Valuation The mutual funds’ net asset value is determined by valuing the securities held by each fund at market value on the last day of the period.

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2016 AREVA REFERENCE DOCUMENT