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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
20
Operations held for sale
(in millions of euros)
December 31, 2016
December 31, 2015
Operations held for sale in 2015
New NP
106
105
AREVA TA
-
-
Nuclear Measurements
-
-
Sub-total
106
105
Operations held for sale in 2016
NewCo
6,086
TOTAL (*)
6,192
105
* see note 3.
Purpose of earmarked portfolio
To meet its end-of-lifecycle obligations, the group voluntarily built up a special
portfolio earmarked for the payment of its future facility dismantling and waste
management expenses. This obligation has applied to all nuclear operators in
France since the Law no. 2006-739 of June 28, 2006 and the implementing decree
no. 2007-243 of February 23, 2007 came into force. This portfolio was composed
based on a schedule of disbursements over more than a century and is therefore
managed with long-term objectives. The portfolio is comprised of financial assets
covering all of the group’s commitments, whether related to obligations imposed by
the Law of June 28, 2006 for regulated nuclear facilities located in France, or related
to other end-of-lifecycle commitments for facilities located in France or abroad.
The group relies on independent consultants to study strategic target asset
allocations to optimize the risk/return of the portfolio over the long term and to
advise AREVA on the choice of asset classes and portfolio managers. These
recommendations are submitted to the Cleanup and Dismantling Fund Monitoring
Committee. Long-term asset allocations indicate the target percentage of assets
to cover liabilities (bonds and money market assets, including receivables from
third parties) and the diversification of assets (shares of stock, etc.), subject to
limitations imposed by the French decree no. 2007-243 of February 23, 2007 and
its amendment by the decree no. 2013-678 of July 24, 2013, both in terms of the
control and spread of risks and in terms of type of investments.
At December 31, 2016, for the scope of end-of-lifecycle obligations, the legal
entities which make up AREVA show under-coverage of end-of-lifecycle liabilities
by earmarked assets. By letter of January 5, 2017, the authority required AREVA
NC to restore 100% coverage within a regulatory limit of three years.
AREVA ensured that all AREVA NC and AREVA NP funds are held, registered
and valued by a single custodian capable of performing the necessary control
and valuation procedures independently, as required by the implementing decree.
The Equity segment is primarily managed by external service providers via:
p
an equity management agreement; and
p
earmarked investment funds.
The Rate segment (bonds and money market) is invested via:
p
open-ended mutual funds;
p
earmarked investment funds; and
p
directly held bonds.
The portfolio of assets earmarked to fund end-of-lifecycle expenses includes the following:
(in millions of euros)
December 31, 2016
December 31, 2015
NewCo
NewCo
In market value or liquidation value
Publicly traded shares
1,098
1,325
Equity investment funds
1,191
1,095
Bond and money market mutual funds
2,344
2,258
Unlisted mutual funds
112
96
At amortized cost
Bonds and bond mutual funds held to maturity
561
610
Portfolio of securities earmarked for end-of-lifecycle operations
5,307
5,383
Receivables related to end-of-lifecycle operations
779
739
TOTAL FINANCIAL ASSETS EARMARKED FOR END-OF-LIFECYCLE OPERATIONS
6,086
6,122
2016 AREVA
REFERENCE DOCUMENT
219