239 / 386
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
The graduation cessation of these operations is in progress but will be fully effective
only after AREVA has fulfilled its remaining contractual commitments. These
concern the Green Innovation Project (GIFT) in the Philippines and the Commentry
Bio Energy Project (BEC) in France. Following the announcement of this cessation
of operations, various claims were lodged against the Brazilian entity. The provisions
set aside for commercial disputes and litigation in progress were reassessed, and
adjustments were made at December 31, 2016.
Adwen
Since Adwen could find itself exposed to the consequences of projects that have
been or are being executed, AREVA agreed to provide it with certain guarantees in
this regard in the agreement creating the Adwen joint venture signed inMarch 2015.
AREVA andGamesa, the two shareholders of Adwen, wished to further develop their
relationship by signing an amendment to the shareholders’ agreement of the Adwen
joint venture on June 17, 2016. At the end of a three-month competitive bidding
process designed to solicit and assess offers from potential third-party investors,
on September 14, 2016 AREVA exercised its option to sell its 50% interest in the
Adwen joint venture to Gamesa. This sale was completed on January 5, 2017, and
Gamesa holds 100% of the shares of Adwen since that date.
However, at December 31, 2016, AREVA’s obligations had not yet changed and
continued to be governed by the joint venture agreements:
p
these are first and foremost guarantees related to the past: deterioration of profit
margins as from the creation of the joint venture on projects in progress to supply
turbines to Global Tech I and Borkum West II. This guarantee is not capped;
p
other guarantees concern disputes, legal actions and claims related to operations
prior to closing but with no connection to projects in progress. That guarantee
is capped;
p
for future transactions or transactions in progress at the closing date, AREVA
will compensate the joint venture for potential losses linked to the maintenance
contracts for the Alpha Ventus, Global Tech I and BorkumWest II wind farms as
well as for the Wikinger project. Those guarantees are capped.
A dispute withGlobal Tech I began on June 1, 2016 at the latter’s initiative. It is asking
for 157million euros in late charges and repayments of excess costs concerning the
commissioning of the turbines in 2014-2015. The dispute was lodgedwith a Dispute
Adjudication Board (DAB). The DAB’s decision was published on October 22, 2016;
it orders Adwen to pay 80 million euros (excluding interest) to its customer. Neither
party wished to contest this decision by initiating an arbitration proceeding.
In addition, the final acceptance of 43 of the 80 turbines of Global Tech I was
pronounced in 2016. While the discussions with the customer continue for the
remaining 37 turbines, the latter drew on the 37 performance bonds related to
those turbines in the amount of 38 million euros, wanting to temporarily mobilize
that amount until a solution is found between the parties for the acceptance of the
corresponding turbines and in anticipation of the payment of the DAB’s decision.
All of the GTI and BWII turbines are covered by machine guarantees and are the
subject of maintenance contracts.
OPERATIONS HELD FOR SALE
(in millions of euros)
December 31,
2015 Charges
Reversal
(when
risk has
materialized)
Reversal
(when risk
has not
materialized)
Operations
held for
sale
Other
changes (*)
December 31,
2016
Operations held for sale in 2015
New NP
594
192
(152)
(3)
-
28
658
AREVA TA
154
0
(20)
(1)
-
(2)
130
Nuclear Measurements
6
4
(2)
(0)
-
(8)
-
Sub-total
753
196
(174)
(4)
-
18
788
Operations held for sale in 2016
NewCo
-
-
-
-
2,006
-
2,006
TOTAL (**)
753
196
(174)
(4)
2,006
18
2,794
(*) Including unwinding of 3 million euros at December 31, 2016.
(**) see note 3.
Provisions for cleanup
At December 31, 2016, since the “Prisme” operations prior to the final shutdown of
Eurodif’s Georges Besse I plant have been completed, all of the remaining provisions
at December 31, 2015 (11 million euros) were reversed.
Provisions for restructuring and redundancy plans
Provisions for restructuring and redundancy plans represent the best estimate of
the costs to be effectively borne in connection with workforce adjustment plans
constituting the social component of the group’s competitiveness plan. They
correspond to the different components of these plans, including in particular age-
related measures (early retirement), attrition, and the tax for revitalization of labor
pools in France. In accordance with the accounting rules, no provision was set up
for the costs of internal mobility.
For the plans undertaken in France, 2,046 departures were recorded with regard
to support measures under the Voluntary Departure Plans (VDP) in addition to 996
departures by natural attrition or in connection with contractual plans for which
provisions had already been set aside. The employee departures will be spread
out until the end of 2019.
Provisions for losses at completion
Purchase contract for separative work units (SWU) (NewCo)
In light of persistently stagnant enrichment market prices, a provision in the amount
of 50 million euros was constituted at December 31, 2015 for a SWU purchase
contract, since firm commitments on sales prices made under this contract do
not appear to be matched by the market price outlook for the period in question.
2016 AREVA
REFERENCE DOCUMENT
239