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

It should be noted that in 2016 AREVA’s share of the assets, which concerned the operating facilities, rose 197 million euros due to the change in the discount rate used by the group (4.10% vs. 4.50% previously). This change is not visible in the table above due to the classification of the entities hosting the nuclear facilities, mainly NewCo and New NP, in operations held for sale. At the end of 2016, provisions for the group’s end-of-lifecycle operations amounted to 7.682 billion euros (of which 7.172 billion euros within the scope of the law of June 28, 2006), whereas the market value of earmarked financial assets was

6.471 billion euros (of which 6.357 billion euros within the scope of the law). The ratio of coverage within the scope of the law was thus 89%.

9.2.7.6. CAPITAL EMPLOYED AND RETURN ON AVERAGE CAPITAL EMPLOYED (ROACE) Given themajor change of consolidation scope in progress, the calculation of capital employed and ROACE was not significant.

9.2.8. BUSINESS REVIEW

REVIEW OF AREVA SA’S OPERATIONS In summary, AREVA SA’s operations are the completion of the Olkiluoto 3 EPR project in Finland (“OL3”) through its subsidiary AREVA NP, and the completion of a Bioenergy project in France. In 2016, construction of the Olkiluoto 3 EPR made progress in accordance with the schedule revised in August 2014, which calls for start-up of the power plant in December 2018. p Functional testing of power plant systems and components began in April.

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 ARVA SA will no longer exercise control at the end of the restructuring, normally expected in 2017. 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 sold and Solar Energy operations discontinued.

p The main electro-mechanical installations have been completed.

p The vessel flushing sequence was completed in early November, six weeks ahead of the updated schedule.

p In parallel, tests of the full-scale simulator were also completed.

p In addition, open-vessel functional tests were completed on January 13, 2017, as per the schedule.

REVIEW OF NEW AREVA HOLDING’S OPERATIONS (“NEWCO”) NewCo combines the nuclear fuel cycle operations lodged within the subsidiaries AREVAMines and AREVA NC: Mining, Front End (Chemistry and Enrichment) and Back End (Recycling, Logistics, and Dismantling and Services). Pursuant to IFRS 5, NewCo is classified in operations held for sale. As a result, NewCo no longer contributes to reported revenue, operating income, EBITDA or operating cash flow.

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2016 AREVA REFERENCE DOCUMENT