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

At December 31, 2016, derivatives set up by NewCo to hedge 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

2,237 1,194

595

202

4,228 (185)

Currency options

52 63

52

(2)

Cross-currency swaps

65

317 912

445

6

TOTAL

2,352 1,259

202

0

0

4,725

(180)

Derivative financial instruments used to hedge NewCo’s foreign exchange risk were as follows at December 31, 2016 and December 31, 2015:

2016

Nominal amounts in absolute value

(in millions of euros)

Market value

Derivatives related to fair value hedging strategies (FVH)

337 337

(8) (8)

Forward exchange transactions and currency swaps

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

0

0

3,139 3,139 1,250

(157) (157)

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

(15) (19)

752

Currency options

52

(2)

Cross-currency swaps

445

6

TOTAL

4,725

(180)

COMMODITY RISK The group has little commodity risk and no hedge had been set up at December 31, 2016. INTEREST RATE RISK Rate risk management is entirely centralized in the department of Financial Operations and Treasury Management, which consolidates the subsidiaries’ current or stable cash surpluses or requirements and arranges external financing as appropriate, except as otherwise required by regulations or specific circumstances.

The group uses several types of derivatives, as required by market conditions, to allocate its borrowings between fixed rates and floating rates and to manage its investment portfolio, with the goal being mainly to reduce its borrowing costs while optimizing the management of its cash surpluses. The amount of the commitments and the sensitivity of the positions taken by the trading desk in the framework of AREVA’s rate management policy are subject to limits based on the type of transaction involved.

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2016 AREVA REFERENCE DOCUMENT