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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
(in millions of euros)
December 31,
2016
December 31,
2015
NewCo
NewCo
By region
Eurozone
5,532
5,510
Non-euro Europe
471
537
Other
82
75
TOTAL
6,086
6,122
Financial assets held as securities or mutual funds represent 87% of all earmarked
assets at December 31, 2016. Earmarked assets were allocated as follows: 40%
equities, 47% bonds and 13% receivables.
The contractual framework for the main receivable related to end-of-lifecycle
operations (receivable from the CEA in the amount of 681 million euros at
December 31, 2016) was amended in 2015 in order to define a payment schedule
by the CEA for the principal and interest, with the last payment scheduled for 2024.
The receivables from the CEA and EDF related to overfunding by AREVA in
connection with tax payments related to financing provided to Andra between 1983
and 1999 were discussed with these two operators in 2015. The CEA confirmed to
AREVA that a debt in an amount equal to AREVA’s receivable, i.e. 16 million euros,
was recognized in the CEA’s accounts for the year ended December 31, 2016. In
addition, 35 million euros for advance payments to be received from a third party
were recorded in 2016.
Performance of financial assets earmarked for end-of-lifecycle operations by asset class
(*)
Asset class
2016
2015
NewCo
NewCo
Shares
+1.4%
+12.8%
Rate products (including receivables related to end-of-lifecycle operations)
3.2%
+1%
TOTAL FINANCIAL ASSETS EARMARKED FOR END-OF-LIFECYCLE OPERATIONS
2.4%
+5.8%
(*) Performance reported for these asset classes includes that of mutual funds earmarked for end-of-lifecycle operations of regulated French and foreign nuclear facilities not
subject to the French law of June 28, 2006.
Including interest on receivables used to determine the performance of rate
instruments, the overall performance of earmarked assets would be +2.4% for the
2016 calendar year.
Risk description and assessment
Equity investments in the portfolio of earmarked securities include mainly:
p
a mandate of publicly-traded shares, which includes about thirty companies
based in the European Union. The securities are held in order to generate gains
over the long term. Although it is not a management guideline, the mandate
will be assessed over the long term by reference to the MSCI EMU index, net
dividends reinvested. The nature of the long-term mandate is not compatible
with an evaluation against a benchmark;
p
dedicated equity funds with diversified management strategies centered
on European securities. The managers must follow strict rules of exposure,
depending on the objectives of the fund involved: including limits on the amounts
invested per issuer or in percentage of the net value of the portfolio, limits on
exposures in currencies other than the euro, tracking error (relative risk compared
with the benchmark), and limits on exposures to certain types of instruments.
Together, these limits are designed to comply with investment rules established
in the implementing decree of the Law of June 28, 2006.
As regards securities held by AREVA NC, interest rate products in the portfolio of
earmarked securities mainly include:
p
directly held securities consisting of government bonds from the Eurozone, which
will be held to maturity. They are recognized at amortized cost under “securities
held to maturity”;
p
dedicated bond funds and open-ended money market funds. The sensitivity to
interest rates of bond funds is limited in both directions, including the portfolio’s
overall consistency with preset long-term sensitivity objectives and the sensitivity
of the liabilities to the discount rate used. The issuers’ ratings (Moody’s or
Standard & Poor’s) are used tomanage the credit risk exposure of money market
and bond funds.
For Eurodif, mandates and bond funds were established specifically to match
disbursement flows.
Valuation
The mutual funds’ net asset value is determined by valuing the securities held by
each fund at market value on the last day of the period.
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2016 AREVA
REFERENCE DOCUMENT