Areva - Reference Document 2016

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OPERATING AND FINANCIAL REVIEW

OVERVIEW

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9.1.

9.2.2. Reconciliation of main aggregates of 2016 9.2.3. Summary data by business segment 9.2.4. Comparability of financial statements

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9.1.1. Business trends

9.1.2. Key features of AREVA’s business model

9.2.5. Statement of income

9.1.3. Highlights of the period

9.2.6. Cash flows

SITUATION AND ACTIVITIES OF THE COMPANY AND ITS SUBSIDIARIES BY BUSINESS SEGMENT DURING THE YEAR

9.2.

9.2.7. Balance sheet items 9.2.8. Business review

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9.2.1. Summary of key data

EVENTS SUBSEQUENT TO YEAR-END CLOSING FOR 2016

9.3.

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9.1.

OVERVIEW

The following comments are based on financial information for 2016 and 2015 and must be read in conjunction with AREVA’s consolidated financial statements for the years ended December 31, 2016 and December 31, 2015. These comments were drafted based on the group’s consolidated financial statements, prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union on December 31, 2016.

Traditionally, AREVApresented business segment information by operatingBusiness Group (BG), which is the level at which that information was examined within the group’s governance bodies, as per the requirements of IFRS 8. However, in view of the changes in consolidation scope contemplated in 2017 and the adoption of IFRS 5, this division of information is no longer relevant, since the only continuing operations of AREVA relate to the OL3 project and to the contract in the final stage of completion in the Bioenergy operations.

9.1.1. BUSINESS TRENDS

CHANGE IN THE GROUP’S CONSOLIDATION SCOPE The legal and financial restructuring of the group begun in 2015 continued in 2016. It translated in particular into disposals of assets which were no longer strategic (nuclear measurements, propulsion and research reactors, offshore wind turbines), into the discontinuation of operations (Solar Energy, Bioenergy), and into the constitution of two subsets of operations over which AREVA SA will no longer exercise control at the end of the restructuring, normally expected in 2017. Ultimately, three separate companies should exist: p New AREVA Holding, temporarily called “NewCo”, centered on the nuclear fuel cycle and carrying in particular the operations of AREVA Mines, AREVA NC (Front End and Back End of the fuel cycle) and AREVA BS. AREVA SA will lose the control of NewCo once the capital increase of the latter has been completed, planned for the first half of 2017, subject to the fulfillment of preconditions set by the European Commission in its decision of January 10, 2017; p a company yet to be constituted and temporarily named “NewNP” combining the operations of AREVA NP, with the exception of the OL3 contract. This company is destined to be sold to EDF and to strategic investors during the second half of 2017;

p and lastly AREVA SA, whose mainmission after the end of the implementation of the restructuring plan, subject to its completion, will be to complete the Olkiluoto 3 EPR reactor project (“OL3”) in Finland via its subsidiary AREVA NP with the necessary resources and in compliance with its contractual obligations. Consequently, pursuant to IFRS 5, the following operations are classified in “operations sold, discontinued or held for sale” and no longer contribute to the key financial indicators published by the group: p Nuclear fuel cycle operations: Mining, Chemistry/Enrichment, Recycling, Dismantling and Services, and Logistics, combined within the New AREVA Holding company (“NewCo”); p AREVA NP’s operations (excluding the OL3 contract) held for sale to EDF and to strategic partners: Fuel, Installed Base, Large Projects (excluding OL3), Components, Engineering, Instrumentation and Control; p Propulsion and Research Reactors operations combined in AREVA TA; p Nuclear Measurement operations combined in the Canberra company, sold on July 1, 2016; p Wind Energy operations, which were sold, and Solar Energy operations, which have been discontinued.

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2016 AREVA REFERENCE DOCUMENT