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

Derivatives Derivatives may be used for hedging or to acquire a limited exposure. They are subject to specific investment guidelines prohibiting leverage. Total nominal commitments may not exceed the fund’s net assets. Sales of puts and calls must be fully covered by underlying assets (and are prohibited on assets not included in the portfolio).

Risk assessment and management of the earmarked portfolio The risks underlying the portfolios and funds holding assets under themanagement mandate for end-of-lifecycle operations are assessed every month. For each fund or earmarked asset, this assessment allows the maximum total loss to be estimated with a 95% level of confidence for different portfolio maturities using the VaR (Value at Risk) method and volatility estimates. A second estimate is done using deterministic scenarios: impact of rates and/or declining equity markets.

The impacts of changes in equity markets and interest rates on the valuation of earmarked assets are summarized in the following table:

NewCo base case (December 31, 2016) (in millions of euros)

Assumption: declining equity markets and rising interest rates -10% on equities

-240

+100 basis points on rates

-64

TOTAL

-304

Assumption: rising equity markets and declining interest rates +10% on equities

+240

-100 basis points on rates

+64

TOTAL

+304

NOTE 14. INFORMATION ON JOINT VENTURES AND ASSOCIATES

A joint venture is considered to be significant if its revenue or balance sheet total is more than 200 million euros. An associate is considered to be significant when its balance sheet total is more than 200 million euros.

CONTINUING OPERATIONS

Investments in joint ventures and associates

(in millions of euros)

December 31, 2016 December 31, 2015

Adwen

-

74 23 97

Other joint ventures Total joint ventures Other associates Total associates

6 6 4 4

3 3

TOTAL

10

100

Share in negative net equity of joint ventures and associates

(in millions of euros)

December 31, 2016 December 31, 2015

ETC

- -

59 59

TOTAL JOINT VENTURES

Amounts related to ETC and Adwen were reclassified under “assets and operations held for sale” at December 31, 2016.

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2016 AREVA REFERENCE DOCUMENT