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

Continuing operations At December 31, 2016, the derivatives set up by the group to hedge its exposure to foreign exchange risk and to hedge AREVA NP’s foreign exchange risk were as follows:

Market value

(Notional amounts by maturity date at December 31, 2016)

2017 2018 2019 2020 2021 > 5 years

Total

Forward exchange transactions and currency swaps

659

70

28

18

774

(21)

Currency options

0

Cross-currency swaps

389 389

389

(88)

TOTAL

659

70

28

18

0

1,163

(109)

Derivative financial instruments used to hedge foreign currency exposure were as follows at December 31, 2016 and December 31, 2015:

2016

2015

Nominal amounts in absolute value

Nominal amounts in absolute value

(in millions of euros)

Market value

Market value

Derivatives related to fair value hedging strategies (FVH)

177 177

1 1 0

386 386

(12) (12)

Forward exchange transactions and currency swaps

Derivatives related to net investment hedging strategies (NIH) Derivatives related to cash flow hedging strategies (CFH)

0

0

0

120 120

(16) (16)

2,212 2,194

(209) (208)

Forward exchange transactions and currency swaps

Currency options

18

(1)

Derivatives not eligible for hedge accounting Forward exchange transactions and currency swaps

866 477

(94)

2,833 1,228

(150)

(7)

1

Currency options

72

(5)

Cross-currency swaps

389

(88) (88)

1,533 5,432

(145) (371)

TOTAL

1,163

A significant share of undocumented financial instruments in 2016 and 2015 corresponds to derivatives subscribed to hedge foreign exchange risk onmonetary assets and liabilities and on financial assets and liabilities, which constitutes a natural hedge. Based on market data at the date of closing, the impact of currency derivative instruments qualified as cash flow hedges on the group’s consolidated equity at year-end 2016 would be +6million euros in the case of a 5% instantaneous increase in exchange rates against the euro, or -6 million euros in the case of a 5% decrease in exchange rates. Using these assumptions, the impacts were +70 million euros and -77 million euros at year-end 2015. In view of the group’s policy, which is to hedge all currency exposures: p undocumented derivatives are used to hedge assets and liabilities in currencies for identical amounts;

p unhedged assets and liabilities are immaterial. The impact on the group’s financial statements of an instant variation of +5% or -5% of exchange rates compared with the euro is relatively neutral. Operations held for sale As security, AREVA SA has committed to guaranteeing the derivatives of New AREVAHolding with banking counterparties, for the benefit of NewAREVAHolding. That guarantee will end once the New AREVA Holding capital increase has been carried out, in the amount of at least 3 billion euros.

249

2016 AREVA REFERENCE DOCUMENT