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

As security, AREVA SA has committed to guaranteeing the redemption of all bond issues contributed to New AREVA Holding and to guaranteeing the derivatives of New AREVA Holding with banking counterparties, for New AREVA Holding’s benefit. At December 31, 2016, the carrying amount of New AREVA Holding’s bond debt was 4,886,230 thousand euros. Those guarantees will end once the capital increase of New AREVA Holding has been carried out in the amount of at least 3 billion euros or, for the guarantee concerning the bond issues, once they have been redeemed. In June 2014, AREVA SA gave a parent company guarantee to a banking pool to secure the redemption of the amortized loan of Société d’Enrichissement du Tricastin. The parent company guarantee covers 115% of the remaining amount outstanding of the loan, for which the carrying amount was 555 million euros at the end of 2016. Within the framework of the partial contribution of assets fromAREVA SA to New AREVA Holding, SET’s bank borrowings and related security (security interests in future receivables and bank accounts) were transferred to New AREVA Holding, with the exception of the parent company guarantee, which remains in force until the loss of control of New AREVA Holding (except in the event of prior release according to the contract conditions). Reciprocal commitments In January 2013, the group set up a 1.25-billion-euro syndicated line of credit available in euros over a 5-year period. The group also had bilateral lines of credit available to it in the amount of 795 million euros, maturing in 2017. As of the end of December 2016, these lines were fully drawn. Moreover, AREVA SA negotiated and put in place between February and April 2016 a bridge loan in the amount of 1.2 billion euros with a maturity date of January 20, 2017. This financing expired without having been used. In early December 2016, AREVA SA entered into discussions with certain banking partners to set up new bank financing in the amount of approximately 300million euros, with amaturity of January 2018. On January 23, 2017, AREVA SA accepted the letters of commitment received from the banking partners for this financing. The credit contract is presently being drafted. 20.4.6.7. COMPENSATION OF OFFICERS AND DIRECTORS Compensation and benefits paid to executive officers (members of the Board of Directors) during the year by the company and the companies it controls, per article L. 225-102-1 of the French Commercial Code introduced by the New Economic Regulations Law of May 15, 2001 and amended by the Financial Security Act of August 1, 2003, amounted to 1,517 thousand euros.

additional costs incurred (“D&D Claim”). In July 2012, the court of arbitration rendered a final partial decision 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 audiences with the arbitration court), the parties’ respective claims amounted to approximately 3.5 billion euros for the consortium (on sections 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 arbitration 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 necessarily 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. In addition, the consortium and its counsel consider that the allegations of serious/ intentional offense made in TVO’s counterclaim 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. Miscellaneous investigations AREVA SA is also aware of the existence of other preliminary investigations in progress led by the French National Financial Prosecutor’s Office. Since these inquiries are being carried out in connection with legal proceedings against parties unknown, AREVA SA is not currently implicated.

20.4.6.8. 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

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2016 AREVA REFERENCE DOCUMENT