Areva - Reference Document 2016

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20.4 Notes to the annual financial statements FINANCIAL INFORMATION CONCERNING ASSETS, FINANCIAL POSITION AND FINANCIAL PERFORMANCE

Sale of New NP Following the memorandum of understanding signed on July 28, 2016, AREVA SA, AREVA NP and EDF signed a share purchase agreement on November 15, 2016 which sets the terms and conditions for the sale of an interest giving EDF the exclusive control of an entity tentatively called “NewNP”, a wholly owned subsidiary of AREVA NP, which will combine the industrial operations of the design and supply of nuclear reactors and equipment, fuel assemblies and services to the installed base. The selling price for 100% of the capital of New NP was set at 2.5 billion euros, excluding any price adjustments and/or supplements. 20.4.1.2. WRITE-DOWN OF INVESTMENTS IN AND LOANS TO ASSOCIATES In connection with the review undertaken at the end of 2016 of the business outlook for the different Business Units, and considering the current market environment and the difficulties encountered on certain construction or upgrade projects in progress, the profitability outlook for some first-tier subsidiaries was revised significantly downward. The recoverable amounts resulting therefrom translate into the write-down of certain investments in associates, of non-trade current accounts, of loans to associates held by AREVA SA (see note 4.4.1), and of the provision for financial risk (see note 4.10.2). The subsidiaries concerned are mainly:

company’s Board of Directors had given authority to management to exercise the option to sell its 50% interest in Adwen’s capital, signed on June 17, 2016 with Gamesa. This option to sell was exercised on September 14, 2016, and the sale closed on January 5, 2017. 20.4.1.4. CAPITAL INCREASE OF AREVA TA On December 7, 2016, during the Extraordinary General Meeting of AREVA TA Shareholders, a capital increase accompanied by the cancellation of the preemptive subscription right of minority interests for the benefit of AREVA SA was decided. The percentage of AREVA SA’s interest thus went from 83.6% to 85.1%. 20.4.1.5. SALE OF AREVA TA The company announced on December 17, 2015 and confirmed on January 27, 2016 the plan to sell AREVA TA, a company specialized in the design, construction, commissioning and operational readiness of compact nuclear reactors for marine propulsion and nuclear research facilities. On December 15, 2016, the company signed a share purchase agreement for all of its shares in AREVA TA with a consortium of buyers composed of the Agence des participations de l’État (APE, 50.32% of the capital), the Commissariat à l’énergie atomique et aux énergies renouvelables (CEA, 20.32%), and DCNS (20.32%). EDF will keep its 9.03% interest in the capital. The sale, for which the plan has already been the subject of consultation with employee representative bodies and which has been approved by AREVA SA’s governance, is scheduled to close in March or April 2017, subject in particular to the publication of the ministerial orders related to the sale and the absence of any unfavorable significant event with an impact of more than 55 million euros on the value of the company’s equity. On the date the sale closes, the French State will control AREVA TA. p 10 years for building improvements and office furniture; and p 5 years for office equipment, computers and transportation equipment. Depreciation may be supplemented for certain assets when the value in use becomes less than its carrying amount. The resulting carrying amount may be considered to be economically justified. 20.4.2.2. LONG-TERM INVESTMENTS Long-term investments appear on the assets side of the balance sheet at their transfer value or acquisition cost. The acquisition cost means the purchase price plus costs directly related to the purchase, in particular commissions paid to acquire the investment. Investments in associates are written down when their original cost exceeds their value in use, determined investment by investment. This write-down is calculated based on the share of net assets held at year end. This assessment also takes into account the subsidiaries’ estimated profitability or market value, as well as events or situations subsequent to year-end. p 25 years for buildings;

AREVA NP;

p

p AREVA Energies Renouvelables.

20.4.1.3. SALE OF THE INTEREST IN ADWEN Consistent with its objective of refocusing on the nuclear fuel cycle operations, AREVA SA announced that at the conclusion of a three-month competitive process designed to solicit and assess proposals from potential third-party investors, the

20.4.2. ACCOUNTING PRINCIPLES AND METHODS

The financial statements of AREVA SA for the year ended December 31, 2016 were prepared in accordance with French accounting standards as defined in articles 121–1 and 121-2 et seq. of the Plan comptable général 2014. The accounting policies were applied in compliance with the provisions of the French Commercial Code, the Accounting Decree of November 29, 1983 and the ANC 2014-03 regulations of the French Accounting Board related to the redrafting of the Plan comptable général applicable to year-end closing. 20.4.2.1. VALUATION OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS Property, plant and equipment (PPE) and intangible assets are valued at their acquisition or production cost, including start-up expenses. They are depreciated based on the approach deemed most representative of the loss of economic value of each component, with each component depreciated based on its own useful life. Depreciation is calculated using the straight-linemethod and rates normally applicable to these categories of assets. The maximum depreciation periods are as follows:

p 3 years for off-the-shelf software;

p 10 years for integrated management software packages;

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2016 AREVA REFERENCE DOCUMENT