Areva - Reference Document 2016

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

9.2.6. CASH FLOWS

9.2.6.1. CHANGE IN NET DEBT Items contributing to the change in the group’s net debt for the year are presented below. It was calculated according to the French Accounting Board definition (sum of “cash and cash equivalents” less “current and non-current borrowings”).

(in millions of euros)

2016

Reported net debt at beginning of period (December 31, 2015)

(6,323)

Operating cash flow

(590)

Non-operating cash flow

(30)

IFRS 5 restatement of the net external debt of NewCo

5,636 (166)

IFRS 5 restatements and other items

December 31, 2016 (NET DEBT)/ CASH AT THE END OF THE PERIOD APPARENT CHANGE IN NET DEBT FOR 2016

(1,473) +4,850

The group’s net financial debt totaled 1.473 billion euros at the end of 2016, compared with 6.323 billion euros at December 31, 2015. This change in net debt of 4.850 billion euros is explained chiefly by: p net cash flow from company operations in the amount of -621 million euros; p application of IFRS 5 to the entire external debt transferred to NewCo in November 2016 (bond debt and redeemable loan for structured financing of the Georges Besse II plant) in connection with contributions, i.e. 5.636 billion euros;

p the non-renewal at December 31, 2016 of factoring transactions carried out at the end of 2015 in the amount of -152 million euros. At December 31, 2016, cash within the group’s footprint amounted to 848 million euros. This includes cash from operations held for sale (not included in the cash pool) in the amount of 162 million euros. Short-term borrowings came to 831 million euros. This consists mainly of upcoming repayments of draws on bilateral lines of credit, which have all been drawn, for the total outstanding amount of 795 million euros, repayable in 2017.

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2016 AREVA REFERENCE DOCUMENT