Areva - Reference Document 2016

09

9.2 Situation and activities of the company and its subsidiaries by business segment during the year OPERATING AND FINANCIAL REVIEW

9.2.5. STATEMENT OF INCOME

REVENUE

9.2.5.1.

Change 2016/2015

(in millions of euros)

2016

2015

Consolidated revenue

10

33

-23

9.2.5.2. GROSS MARGIN The group’s gross margin (restated for operations held for sale) was -408 million euros, compared with -917 million euros in 2015. Gross margin for 2016 was impacted in particular by an additional loss at completion of 116 million euros for the Olkiluoto 3 EPR linked with net excess operating costs incurred over the period.

AREVA’s revenue (restated for operations held for sale) amounted to 10million euros in 2016, compared with 33 million euros in 2016. It corresponds mainly to sales of services. The year-on-year change is mainly due to the drop in Bioenergy sales. As a reminder, in accordance with the provisions of paragraph 32 of IAS 11, AREVA stopped recognizing the revenue and costs of the OL3 contract as a function of its percentage of completion. Revenue recognized for the OL3 contract has currently stabilized at the level reached at June 30, 2013.

Change 2016/2015

(in millions of euros)

2016

2015

Gross margin

(408)

(917)

+509

Percentage of consolidated sales

n.s.

ns

ns

9.2.5.3. RESEARCH AND DEVELOPMENT AREVA’s research and development expenses for 2016 (restated for operations held for sale) represented 13 million euros, as in 2015.

9.2.5.5. OTHER OPERATING INCOME AND EXPENSES Other operating income and expenses represented net income of 115million euros in 2016, compared with a net expense of 266 million euros in 2015. Other operating income and expenses mainly included a provision of 180 million euros charged in 2015 for anticipated costs in connection with the plan to transfer the OL3 contract from AREVA NP to AREVA SA, which was reversed in 2016 because the plan was not implemented. Restructuring costs were higher in 2015 than in 2016, as was goodwill and other asset impairment. OPERATING INCOME Taking into account the items described above, the net operating income of the continuing operations came to -442 million euros at the end of 2016, compared with -1.287 billion euros at the end of 2015. 9.2.5.6.

MARKETING AND SALES, GENERAL AND ADMINISTRATIVE EXPENSES

9.2.5.4.

AREVA’s marketing, sales, general and administrative expenses totaled 135 million euros in 2016, compared with 91 million euros in 2015. In 2016, general and administrative expenses included 121 million euros in costs kept within AREVA SA and not passed through to the subsidiaries. They are not representative of the costs AREVA SAwill have to bear once the restructuring operations have been completed.

109

2016 AREVA REFERENCE DOCUMENT