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

At December 31, 2016, the group used the following derivatives to hedge NewCo’s interest rate exposure:

Market value of contracts (1)

Not formally documented (Trading)

Nominal amount of contract

Cash flow hedges (CFH)

Fair value hedges (FVH)

Rate instruments (in millions of euros)

Total

Interest rate swaps – variable lender – EUR Fixed borrower – EUR Interest rate swaps – variable lender – EUR EUR variable borrower Interest rate swaps – fixed lender – EUR EUR variable borrower Interest rate swaps – JPY fixed lender EUR variable borrower Inflation rate swaps – variable lender – USD USD fixed lender CAD variable borrower

175

(6)

(6)

75

(1) (1)

(1) (1)

381

550

43

43

65

0

0

166

(38) (45)

(38)

TOTAL

1,411

43

(1)

(1) Gain / (loss).

Operations held for sale The group holds of publicly traded shares in a significant amount and is exposed to changes in the financial markets. Those traded shares are subject to a risk of volatility inherent in the financial markets. They are presented in the investment portfolio earmarked for end-of-lifecycle operations (see note 13). The risk on shares held in the portfolio of assets earmarked for end-of-lifecycle operations is an integral component of asset management, which uses shares to increase long-term returns as part of its allocation between bonds and equities (see note 13). Exposure to European equities is managed by various management companies, either through amandate given to an investment firmor through several dedicated mutual funds, with management guidelines limiting the tracking error.

RISK FROM EQUITY INVESTMENTS

Continuing operations The group holds of publicly traded shares and is exposed to changes in the financial markets. Those shares are subject to a risk of volatility inherent in the financial markets. They are presented in the investment portfolio earmarked for end-of-lifecycle operations (see note 13). The risk on shares held in the portfolio of assets earmarked for end-of-lifecycle operations is an integral component of asset management, which uses shares to increase long-term returns as part of its allocation between bonds and equities (see note 13). Exposure to European equities is managed by various management companies, either through amandate given to an investment firmor through several dedicated mutual funds, with management guidelines limiting the tracking error.

The sensitivity of the value of equity investments to variations in the equity markets is as follows:

Upper scenario (10% increase in the value of equity investments)

Securities recognized at fair value through profit or loss

December 31, 2016 (in millions of euros)

Available-for-sale securities

Balance sheet position

2,401

Income statement impact Impact on shareholders’ equity

240

253

2016 AREVA REFERENCE DOCUMENT