Areva - Reference Document 2016

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09 OPERATING AND FINANCIAL REVIEW
9.1. OVERVIEW
The following comments are based on financial information for 2016 and 2015 and
must be read in conjunction with AREVA’s consolidated financial statements for
the years ended December 31, 2016 and December 31, 2015. These comments
were drafted based on the group’s consolidated financial statements, prepared in
accordance with International Financial Reporting Standards (IFRS) as adopted by
the European Union on December 31, 2016.
Traditionally, AREVApresented business segment information by operatingBusiness
Group (BG), which is the level at which that information was examined within the
group’s governance bodies, as per the requirements of IFRS 8. However, in view
of the changes in consolidation scope contemplated in 2017 and the adoption of
IFRS 5, this division of information is no longer relevant, since the only continuing
operations of AREVA relate to the OL3 project and to the contract in the final stage
of completion in the Bioenergy operations.
9.1.1. BUSINESS TRENDS
CHANGE IN THE GROUP’S CONSOLIDATION SCOPE
The legal and financial restructuring of the group begun in 2015 continued
in 2016. It translated in particular into disposals of assets which were no longer
strategic (nuclear measurements, propulsion and research reactors, offshore wind
turbines), into the discontinuation of operations (Solar Energy, Bioenergy), and
into the constitution of two subsets of operations over which AREVA SA will no
longer exercise control at the end of the restructuring, normally expected in 2017.
Ultimately, three separate companies should exist:
p New AREVA Holding, temporarily called “NewCo”, centered on the nuclear fuel
cycle and carrying in particular the operations of AREVA Mines, AREVA NC
(Front End and Back End of the fuel cycle) and AREVA BS. AREVA SA will lose
the control of NewCo once the capital increase of the latter has been completed,
planned for the first half of 2017, subject to the fulfillment of preconditions set by
the European Commission in its decision of January 10, 2017;
p a company yet to be constituted and temporarily named “NewNP” combining the
operations of AREVA NP, with the exception of the OL3 contract. This company
is destined to be sold to EDF and to strategic investors during the second half
of 2017;
p and lastly AREVA SA, whose mainmission after the end of the implementation of
the restructuring plan, subject to its completion, will be to complete the Olkiluoto 3
EPR reactor project (“OL3”) in Finland via its subsidiary AREVA NP with the
necessary resources and in compliance with its contractual obligations.
Consequently, pursuant to IFRS 5, the following operations are classified in
“operations sold, discontinued or held for sale” and no longer contribute to the
key financial indicators published by the group:
p Nuclear fuel cycle operations: Mining, Chemistry/Enrichment, Recycling,
Dismantling and Services, and Logistics, combined within the New AREVA
Holding company (“NewCo”);
p AREVA NP’s operations (excluding the OL3 contract) held for sale to EDF and
to strategic partners: Fuel, Installed Base, Large Projects (excluding OL3),
Components, Engineering, Instrumentation and Control;
p Propulsion and Research Reactors operations combined in AREVA TA;
p Nuclear Measurement operations combined in the Canberra company, sold
on July 1, 2016;
p Wind Energy operations, which were sold, and Solar Energy operations, which
have been discontinued.
100 2016 AREVA REFERENCE DOCUMENT