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

Notional amounts by maturity date at December 31, 2016

Interest rate instruments (in millions of euros)

Market value

Total

2017

2018

2019

2020

2021 > 5 years

Interest rate swaps – EUR variable lender USD variable borrower Interest rate swaps – EUR variable lender EUR fixed borrower Interest rate swaps – EUR fixed lender EUR variable borrower Inflation rate swaps – USD variable lender USD fixed borrower Inflation rate swaps – USD fixed lender USD variable borrower

389

-11

250

100

-19

250

100

-18

- -

GRAND TOTAL

1,041

352

489

200

-11

Commodity risk AREVA SA does not have significant exposure to commodities.

Market value of financial instruments Themarket value of financial instruments pertaining to currency, rate and commodity transactions was calculated based onmarket data at the closing date, on discounted future cash flows, or on prices provided by financial institutions. The use of different market assumptions could have a significant impact on estimated market values. Liquidity risk The group’s liquidity in 2016 was ensured by draws, on January 4 and 5, 2016, on available lines of credit in the amount of approximately 2 billion euros. At December 31, 2016, AREVA SA’s short-termborrowings amounted to 815million euros, consisting mainly of bilateral lines of credit maturing over the course of 2017. In addition, AREVA SA guarantees New AREVA Holding’s borrowings (bond debt and financing of the Georges Besse II industrial asset in the total amount of 5.5 billion euros) until the execution of the New AREVA Holding capital increase planned in 2017. Beyond 2017, the last significant maturity of AREVA SA’s debt consists of the redemption of the syndicated line of credit of 1.25 billion euros in January 2018. As mentioned previously, on January 10, 2017, the European Commission authorized rescue aid in the form of two advances from the shareholder current account of the French State, one for AREVA SA in the amount of 2 billion euros and the other for New AREVA Holding in the amount of 1.3 billion euros. In addition, in early February 2017, AREVA SA secured and accepted a commitment from its banking partners for “senior secured” interim financing of 300million euros, expected to be signed in the near future and to have a maturity date of January 8, 2018. Draws on this financing will be conditioned on the French State’s subscription to the AREVA SA and New AREVA Holding capital increases. Furthermore, AREVA SA secured the necessary consent from the lenders of the syndicated credit of 1.250 billion euros, to have a maturity date of January 16, 2018, to proceed with the New AREVA Holding capital increase and authorizing de facto the loss of its control. In return for this consent, the lenders of that facility receive better terms, including an additional security and early redemption clauses, in particular as regards the income from the sale of AREVA NP.

Equity risk To manage its long-term investment positions, AREVA SA may elect to use puts and calls backed by portfolio equities. No such transaction was pending at the end of the year. Counterparty risk AREVA SA is exposed to the credit risk of counterparties linked to its use of financial derivatives to cover its risks AREVA SA uses different types of financial instruments to manage its exposure to foreign exchange and interest rate risks, and its exposure to risks on commodities and publicly traded equities. AREVA SA primarily uses forward buy/sell currency and commodity contracts and rate derivative products such as swaps, futures or options to cover these types of risk. These transactions expose AREVA SA to counterparty risk when the contracts are concluded over the counter. Tominimize this risk, AREVA SA’s trading desk deals only with diversified, top quality counterparties based on their ratings in the Standard & Poor’s and Moody’s rating systems, with a minimum rating of Investment Grade. A legal framework agreement is always signed with the counterparties. The limits allowed for each counterparty are determined based on its rating and the type andmaturity of the instruments traded. Assuming the rating of the counterparty is not downgraded earlier, the limits are reviewed at least once a year and approved by the Chief Financial Officer. The limits are verified in a specific report produced by the internal control team of Treasury Operations. During periods of significant financial instability that may involve an increased risk of bank default, which may be underestimated by ratings agencies, AREVA SA monitors advanced indicators such as the value of the credit default swaps (CDS) of the eligible counterparties to determine if limits should be adjusted. When conditions warrant (rising counterparty risk, longer term transactions, etc.), market transactions are managed by margin calls that reduce AREVA SA’s counterparty risk to a predetermined threshold: the Credit Support Annex for trades documented under an ISDA master agreement, or the Collateral Annex for trades documented under a French Banking Federation (FBF) master agreement.

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2016 AREVA REFERENCE DOCUMENT

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