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

OPERATIONS HELD FOR SALE

(in millions of euros)

December 31, 2016 December 31, 2015

Commitments given New NP

1,480

1,697

NewCo

289

-

Other operations

29

32

Sub-total

1,798

1,729

Commitments received New NP

1,904

2,219

NewCo

111

-

Other operations

9

10

Sub-total

2,023

2,229

Reciprocal commitments New NP

409 251

428

NewCo

-

Other operations

2

1

Sub-total

661

429

NOTE 34. DISPUTES AND POTENTIAL LIABILITIES

Olkiluoto 3 EPR power plant (OL3) (dispute concerning AREVA NP) On December 5, 2008, the AREVA-Siemens consortium initiated arbitration proceedings with the International Court of Arbitration (ICC) for delays and disruptions suffered in connection with contract performance, and the resulting additional costs incurred (“D&D Claim”). In July 2012, the court of arbitration rendered a final partial verdict enjoining TVO to release 100 million euros (plus interest) due to the AREVA-Siemens consortium and withheld in contravention of the contractual provisions. That decision was duly executed by TVO. At December 31, 2016, after eight years of legal proceedings (exchanges of briefs by the parties and hearings with the arbitration court), the parties’ respective claims amounted to approximately 3.5 billion euros for the consortium (on tranches 1 and 2 of its claim covering the start of the project to February 2014) and 2.3 billion euros for TVO. In accordance with the schedule for the arbitral proceeding, substantive hearings on the dispute took place over the course of 2016 and gave rise in the second part of the year to expert statements through witness depositions. The arbitral court rendered a partial decision on November 7, 2016. While that decision allows some of TVO’s claims, it does not constitute a decision on the financial outcome of the dispute between the parties. Other intermediate decisions are expected before the final decision, still expected for the end of 2017 at the earliest, but more probably in early 2018. Moreover, the consortium and its legal counsel consider that the allegations of serious/intentional offense described in TVO’s claim remain unfounded. Quality audit Following the announcement in late April that documentary anomalies had been found in the follow-up of equipment manufacturing processes at the Creusot plant, an audit is currently being conducted on all of the manufacturing files.

As of late December 2016, the review of the “marked files” continued. For the operating reactors in particular, error reports were systematically constituted as soon as the review of these files revealed irregularities. In October 2016, Greenpeace and other associations filed a complaint against EDF and AREVA with the public prosecutor’s office of the High Court of Paris concerning these anomalies, in particular those affecting a steam generator of Fessenheim unit 2. Furthermore, in October 2016, in accordance with article 40 of the French Code of Criminal Procedure, under which any established authority and any publicly appointed official or civil servant with knowledge of a felony or a misdemeanor within the framework of his/her functions is required to “advise the State Prosecutor without delay”, the Chairman of ASN referred the matter of “irregularities” in the part manufacturing files at AREVANP’s Creusot plant to the State Prosecutor. According to a judicial source, pursuant to this referral, a preliminary investigation has been opened by the public health section of the public prosecutor’s office of Paris. This situation could result in other civil or penal implications, both in France and abroad. Paluel 2 On March 31, 2016, a steam generator fell during handling in reactor building number 2 of the Paluel nuclear generating station. ASN conducted an inspection concerning this event on April 7, 2016. Moreover, following this event, a court-ordered appraisal was initiated by EDF to determine the circumstances of the event and the potential liability of the members of the consortium in charge of steam generator handling, consisting of AREVA NP and three other companies.

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2016 AREVA REFERENCE DOCUMENT