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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
Derivatives
Derivatives may be used for hedging or to acquire a limited exposure. They are
subject to specific investment guidelines prohibiting leverage. Total nominal
commitments may not exceed the fund’s net assets. Sales of puts and calls must
be fully covered by underlying assets (and are prohibited on assets not included
in the portfolio).
Risk assessment and management of the earmarked portfolio
The risks underlying the portfolios and funds holding assets under themanagement
mandate for end-of-lifecycle operations are assessed every month. For each fund or
earmarked asset, this assessment allows the maximum total loss to be estimated
with a 95% level of confidence for different portfolio maturities using the VaR
(Value at Risk) method and volatility estimates. A second estimate is done using
deterministic scenarios: impact of rates and/or declining equity markets.
The impacts of changes in equity markets and interest rates on the valuation of earmarked assets are summarized in the following table:
NewCo base case (December 31, 2016)
(in millions of euros)
Assumption: declining equity markets and rising interest rates
-10% on equities
-240
+100 basis points on rates
-64
TOTAL
-304
Assumption: rising equity markets and declining interest rates
+10% on equities
+240
-100 basis points on rates
+64
TOTAL
+304
NOTE 14.
INFORMATION ON JOINT VENTURES AND ASSOCIATES
A joint venture is considered to be significant if its revenue or balance sheet total is more than 200 million euros. An associate is considered to be significant when its
balance sheet total is more than 200 million euros.
CONTINUING OPERATIONS
Investments in joint ventures and associates
(in millions of euros)
December 31, 2016
December 31, 2015
Adwen
-
74
Other joint ventures
6
23
Total joint ventures
6
97
Other associates
4
3
Total associates
4
3
TOTAL
10
100
Share in negative net equity of joint ventures and associates
(in millions of euros)
December 31, 2016
December 31, 2015
ETC
-
59
TOTAL JOINT VENTURES
-
59
Amounts related to ETC and Adwen were reclassified under “assets and operations held for sale” at December 31, 2016.
2016 AREVA
REFERENCE DOCUMENT
221