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

The graduation cessation of these operations is in progress but will be fully effective only after AREVA has fulfilled its remaining contractual commitments. These concern the Green Innovation Project (GIFT) in the Philippines and the Commentry Bio Energy Project (BEC) in France. Following the announcement of this cessation of operations, various claims were lodged against the Brazilian entity. The provisions set aside for commercial disputes and litigation in progress were reassessed, and adjustments were made at December 31, 2016. Adwen Since Adwen could find itself exposed to the consequences of projects that have been or are being executed, AREVA agreed to provide it with certain guarantees in this regard in the agreement creating the Adwen joint venture signed inMarch 2015. AREVA andGamesa, the two shareholders of Adwen, wished to further develop their relationship by signing an amendment to the shareholders’ agreement of the Adwen joint venture on June 17, 2016. At the end of a three-month competitive bidding process designed to solicit and assess offers from potential third-party investors, on September 14, 2016 AREVA exercised its option to sell its 50% interest in the Adwen joint venture to Gamesa. This sale was completed on January 5, 2017, and Gamesa holds 100% of the shares of Adwen since that date. However, at December 31, 2016, AREVA’s obligations had not yet changed and continued to be governed by the joint venture agreements: p these are first and foremost guarantees related to the past: deterioration of profit margins as from the creation of the joint venture on projects in progress to supply turbines to Global Tech I and Borkum West II. This guarantee is not capped;

p other guarantees concern disputes, legal actions and claims related to operations prior to closing but with no connection to projects in progress. That guarantee is capped; p for future transactions or transactions in progress at the closing date, AREVA will compensate the joint venture for potential losses linked to the maintenance contracts for the Alpha Ventus, Global Tech I and BorkumWest II wind farms as well as for the Wikinger project. Those guarantees are capped. A dispute withGlobal Tech I began on June 1, 2016 at the latter’s initiative. It is asking for 157million euros in late charges and repayments of excess costs concerning the commissioning of the turbines in 2014-2015. The dispute was lodgedwith a Dispute Adjudication Board (DAB). The DAB’s decision was published on October 22, 2016; it orders Adwen to pay 80 million euros (excluding interest) to its customer. Neither party wished to contest this decision by initiating an arbitration proceeding. In addition, the final acceptance of 43 of the 80 turbines of Global Tech I was pronounced in 2016. While the discussions with the customer continue for the remaining 37 turbines, the latter drew on the 37 performance bonds related to those turbines in the amount of 38 million euros, wanting to temporarily mobilize that amount until a solution is found between the parties for the acceptance of the corresponding turbines and in anticipation of the payment of the DAB’s decision. All of the GTI and BWII turbines are covered by machine guarantees and are the subject of maintenance contracts.

OPERATIONS HELD FOR SALE

Reversal (when risk has materialized)

Reversal (when risk has not materialized)

Operations held for sale

December 31,

Other changes (*)

December 31, 2016

(in millions of euros)

2015 Charges

Operations held for sale in 2015 New NP

594 154

192

(152)

(3) (1) (0) (4)

- - - -

28 (2) (8) 18

658 130

AREVA TA

0 4

(20)

Nuclear Measurements

6

(2)

-

Sub-total

753

196

(174)

788

Operations held for sale in 2016 NewCo

-

-

-

-

2,006 2,006

-

2,006 2,794

TOTAL (**)

753

196

(174)

(4)

18

(*) Including unwinding of 3 million euros at December 31, 2016. (**) see note 3.

Provisions for cleanup At December 31, 2016, since the “Prisme” operations prior to the final shutdown of Eurodif’s Georges Besse I plant have been completed, all of the remaining provisions at December 31, 2015 (11 million euros) were reversed. Provisions for restructuring and redundancy plans Provisions for restructuring and redundancy plans represent the best estimate of the costs to be effectively borne in connection with workforce adjustment plans constituting the social component of the group’s competitiveness plan. They correspond to the different components of these plans, including in particular age- related measures (early retirement), attrition, and the tax for revitalization of labor pools in France. In accordance with the accounting rules, no provision was set up for the costs of internal mobility.

For the plans undertaken in France, 2,046 departures were recorded with regard to support measures under the Voluntary Departure Plans (VDP) in addition to 996 departures by natural attrition or in connection with contractual plans for which provisions had already been set aside. The employee departures will be spread out until the end of 2019. Provisions for losses at completion Purchase contract for separative work units (SWU) (NewCo) In light of persistently stagnant enrichment market prices, a provision in the amount of 50 million euros was constituted at December 31, 2015 for a SWU purchase contract, since firm commitments on sales prices made under this contract do not appear to be matched by the market price outlook for the period in question.

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2016 AREVA REFERENCE DOCUMENT