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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
Continuing operations
At December 31, 2016, the derivatives set up by the group to hedge its exposure to foreign exchange risk and to hedge AREVA NP’s foreign exchange risk were as follows:
(Notional amounts by maturity date at December 31, 2016)
2017 2018 2019 2020 2021 > 5 years
Total
Market
value
Forward exchange transactions and currency swaps
659
70
28
18
774
(21)
Currency options
0
Cross-currency swaps
389
389
(88)
TOTAL
659
70
28
18
389
0
1,163
(109)
Derivative financial instruments used to hedge foreign currency exposure were as follows at December 31, 2016 and December 31, 2015:
(in millions of euros)
2016
2015
Nominal amounts
in absolute value
Market value
Nominal amounts
in absolute value
Market value
Derivatives related to fair value hedging strategies (FVH)
177
1
386
(12)
Forward exchange transactions and currency swaps
177
1
386
(12)
Derivatives related to net investment hedging strategies (NIH)
0
0
0
0
Derivatives related to cash flow hedging strategies (CFH)
120
(16)
2,212
(209)
Forward exchange transactions and currency swaps
120
(16)
2,194
(208)
Currency options
18
(1)
Derivatives not eligible for hedge accounting
866
(94)
2,833
(150)
Forward exchange transactions and currency swaps
477
(7)
1,228
1
Currency options
72
(5)
Cross-currency swaps
389
(88)
1,533
(145)
TOTAL
1,163
(88)
5,432
(371)
A significant share of undocumented financial instruments in 2016 and 2015
corresponds to derivatives subscribed to hedge foreign exchange risk onmonetary
assets and liabilities and on financial assets and liabilities, which constitutes a
natural hedge.
Based on market data at the date of closing, the impact of currency derivative
instruments qualified as cash flow hedges on the group’s consolidated equity at
year-end 2016 would be +6million euros in the case of a 5% instantaneous increase
in exchange rates against the euro, or -6 million euros in the case of a 5% decrease
in exchange rates. Using these assumptions, the impacts were +70 million euros
and -77 million euros at year-end 2015.
In view of the group’s policy, which is to hedge all currency exposures:
p
undocumented derivatives are used to hedge assets and liabilities in currencies
for identical amounts;
p
unhedged assets and liabilities are immaterial.
The impact on the group’s financial statements of an instant variation of +5% or
-5% of exchange rates compared with the euro is relatively neutral.
Operations held for sale
As security, AREVA SA has committed to guaranteeing the derivatives of New
AREVAHolding with banking counterparties, for the benefit of NewAREVAHolding.
That guarantee will end once the New AREVA Holding capital increase has been
carried out, in the amount of at least 3 billion euros.
2016 AREVA
REFERENCE DOCUMENT
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