AREVA: Implementation of the NewCo Capital Increase and 2017 Half-Year Results

Regulatory News:

Areva (Paris:AREVA):

Implementation of the NewCo¹ capital increase

• Completion of the NewCo capital increase reserved for the French State in the amount of 2.5 billion euros
• Transfer in a trust account of 500 million euros representing the future subscription of JNFL and MHI to a second future reserved capital increase (subject to the fulfillment of certain preconditions)
• Reorganization of the governance of AREVA SA and of NewCo
• Finalization of the restructuring plan expected at the end of 2017 with the sale of New NP² and the completion of the NewCo capital increase reserved for MHI and JNFL

2017 half-year results

• Net income of €550 m, including notable items in the net amount of €190 m, including the neutralization of amortization, depreciation and impairment of operations held for sale
• Net cash flow from company operations of -€474 m (vs. -€497 m in the 1^st half of 2016), still impacted by the OL3 project and financing costs
• The group’s performance plan aiming for 1 billion euros in savings is now 80% complete

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1 Temporary name of the entity which combines all of the operations of AREVA related to the nuclear fuel cycle, whose legal name is New AREVA Holding.

2 New NP combines the operations of AREVA NP, excluding the OL3 contract and the means needed for its completion, and, as appropriate, certain Component contracts affected by serious anomalies which might be identified in connection with the ongoing quality audit.

Highlights of the recent period

• The market environment for the Mining and Front End operations continued to be under pressure during the first half of 2017, in particular with the continued low price levels for uranium in a volatile market and the continued decline of enrichment prices.
• In the Back End, the production plants have had difficulties. Since then, they have returned to generally satisfactory production levels.
• Since the last publication of annual results, the group has continued to implement its restructuring plan:
  • Completion of the AREVA SA and NewCo capital increases reserved for the French State on July 12 and July 26 respectively in the total amount of 4.5 billion euros following the fulfillment of the preconditions set by the European Commission in its decision of January 10, 2017;
  • Entry into force of the agreements with JNFL and MHI for their investment in NewCo and transfer into a trust account of 500 million euros, representing the amount of their subscription to a future reserved capital increase of NewCo (to be completed subject to the fulfillment of a certain preconditions);
  • Approval of the binding agreements for the acquisition of an equity stake in New NP by MHI¹ and Assystem, alongside EDF;
  • Signature at the end of the first half of 2017 by EDF and AREVA NP of the documents necessary to the establishment of EDVANCE;
  • Closing of the sales of AREVA TA in March and of Mainco in June.

• Progress of the performance plan:
  • Completion of 80% of the plan’s objective of 1 billion euros in cost reductions in 2018 across the group’s footprint (including NewCo and New NP);
• Progress was made on large projects over the first half of 2017:
  • Olkiluoto 3:
    • successful completion of cold functional testing on July 1;
    • third partial decision rendered by the Arbitration Tribunal on July 10, 2017 in the arbitration proceeding initiated in 2008 by the AREVA-Siemens consortium against TVO for delays and interruptions suffered.
  • Taishan 1: continuation of hot testing on unit 1 and delivery of the first fuel core in April;
  • Flamanville 3:
    • launch of the full testing phase on March 15, 2017 with water filling of the primary cooling system;
    • ASN confirmation in its draft opinion of June 28 of the vessel’s fitness for service as concerns the tenacity of the vessel closure head and bottom head of the Flamanville EPR reactor.

• Public takeover bid:
  • In accordance with its announcement of January 11, 2017, the French State filed a draft public takeover bid on July 13, 2017 with the Autorité des marchés financiers (AMF) on all AREVA SA shares not held by it directly and indirectly through the CEA. Subject to AMF's conformity decisions, the public takeover bid will be followed by compulsory squeeze-out if the necessary conditions are met at the end of the bid. The price of the public takeover bid and, as applicable, of the compulsory squeeze-out will be identical to the issue price of the AREVA SA capital increase, i.e. 4.50 euros per share.

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1 Subject to approval by its Board of Directors

Key figures reported by the AREVA group

Pursuant to IFRS 5, the data reported for revenue, operating income, EBITDA, operating cash flow and net debt concern the continuing operations exclusively, i.e. mainly the OL3 project, bioenergy operations in the process of being discontinued, and AREVA SA funding. All of the financial items related to operations sold, discontinued or held for sale are presented on a separate line of the statement of income, the statement of cash flows and the statement of financial position. In this regard, the data reported at June 30, 2016 were restated for purposes of comparability.

However, net income attributable to owners of the parent and net cash flow from company operations, also include income and cash flows from operations sold, discontinued or held for sale.

• Revenue: 11 million euros (compared with 2 million euros in the first half of 2016)
• Net income attributable to owners of the parent: 550 million euros (compared with -120 million euros in the first half of 2016)
• Net cash flow from company operations: -474 million euros (compared with -497 million euros in the first half of 2016)
• Net debt: 1.971 billion euros (compared with 1.473 billion euros at the end of 2016)

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At June 30, 2017, the following operations met the criteria set by IFRS 5 for classification as "operations sold, discontinued or held for sale”:

-- New AREVA Holding and its subsidiaries, corresponding to the "NewCo” consolidation scope
-- AREVA NP (excluding the OL3 contract) and its subsidiaries, corresponding to the "New NP” consolidation scope
-- Nuclear Measurements (Canberra), sold on July 1, 2016
-- Propulsion and Research Reactors (AREVA TA), sold on March 29, 2017
-- Solar Energy
-- Wind Energy (ADWEN), sold on January 5, 2017

The bioenergy operations, which are not to be continued, do not meet the criteria set by the accounting standards for classification as discontinued operations owing to the existence of a project still in progress.

The AREVA Board of Directors, meeting today under the chairmanship of Philippe Varin, approved the half-year financial statements for the period ended June 30, 2017.

The table below outlines the contributions from operations sold, discontinued or held for sale to the results reported by the group at June 30, 2017:

In millions of euros		AREVA reported data			NewCo		Other operations classified under IFRS 5		Total operations classified under IFRS 5
Revenue		11			1,740		1,623		3,363
Operating income*		(297)			503		583		1,086
Net financial income		(15)			(118)		(62)		(180)
Income tax		0			(58)		(22)		(80)
Net income from operations sold, discontinued or held for sale		826			327		500		826
Net income attributable to owners of the parent		550
Net income attributable to minority interests		(37)

* Operating income from operations classified under IFRS 5 is after neutralization of amortization, depreciation and impairment.

I. Key financial data of NewCo

The data presented hereunder for the NewCo consolidation scope are data contributing to AREVA income. These data are not entirely representative of the results of NewCo as they include inter-company eliminations of transactions carried out by NewCo with AREVA NP, in particular concerning revenue, as well as the neutralization of amortization, depreciation and impairment since December 15, 2016.

In view of AREVA SA’s loss of control of NewCo at the end of the NewCo capital increase reserved for the French State, which has now been completed, NewCo was recognized in operations sold, discontinued or held for sale at June 30, 2017. Consequently, the financial aggregates presented in this section, which are given for information purposes, no longer contribute to the group’s consolidated aggregates, except for net income recognized on the line "net income from operations sold, discontinued or held for sale” of AREVA’s statement of income.

In millions of euros		H1 2017		H1 2016		Change
						H1 2017 / H1 2016
Backlog		29,521		32,483		-€2,962 m
Revenue		1,740		1,929		-€189 m
Operating income*/**		503		88		+€415 m
EBITDA*		521		681		-€160 m
In percentage of revenue		29.9%		35.3%		-5.4 pts
Operating cash flow*		(41)		167		-€209 m

* Excluding the allocation in 2016 of corporate costs which continued to be borne by AREVA SA by virtue of existing agreements

** After neutralization of amortization, depreciation and impairment recognized for the first half of 2017

NewCo’s backlog, given here for information purposes only as it is no longer included in the backlog of continuing operations, amounted to 29.5 billion euros at June 30, 2017, a decrease in relation to December 31, 2016 (31.8 billion euros). At June 30, 2017, it did not include orders related to the Hinkley Point C project (HPC) representing 1.5 billion euros. Those orders will be included in backlog once the conditions described in part II of this document have been satisfied.

• The backlog for the Mining operations amounted to 8.6 billion euros at June 30, 2017 (compared with 9.5 billion euros at December 31, 2016).
• In the Front End (Chemistry and Enrichment), the backlog totaled 10 billion euros at June 30, 2017 (compared with 10.9 billion euros at the end of 2016).
• The backlog in the Back End (Recycling, Logistics, Dismantling & Services, and International Projects) was 10.9 billion euros (compared with 11.4 billion euros at December 31, 2016).

The order intake for NewCo amounted to 0.9 billion euros over the period and mainly concerned contracts signed with Asian and American customers.

NewCo’s revenue, which is not consolidated given NewCo’s classification in operations sold, discontinued or held for sale, reached 1.740 billion euros at June 30, 2017, a decrease in relation to the first half of 2016 (1.929 billion euros, i.e. -9.8%).

• Mining revenue totaled 638 million euros, a decrease of 9.5% compared with the first half of 2016 (-11.1% like for like). Foreign exchange had a positive impact of 13 million euros, only partially offsetting the downturn in volumes sold over the period (-7.6%) as well as the unfavorable price impact of market indicators on the spot sales of the period.
• Front End revenue totaled 329 million euros, a decrease of 14.4% compared with June 30, 2016 (-12.3% like for like). This change, which was expected, is principally due to a drop in volumes sold of U₃O₈ / UF₆ compared with the same period in the previous year. Foreign exchange had a negative impact of 9 million euros over the period.
• Back End revenue amounted to 765 million euros, a decrease of 7.2% like for like compared with the first half of 2016. Foreign exchange had a positive impact of 2 million euros over the period, and changes in consolidation scope had a negative impact of 10 million euros. This change is due to:
  • the effect of an unfavorable contract mix and, to a lesser extent, a production delay at the la Hague site in the Recycling operations;
  • partly offset by a high volume of business in the United States in logistics.

• Revenue for "Corporate and other operations” was stable compared with June 30, 2016, amounting to 7 million euros at June 30, 2017.

NewCo’s operating income contributing to the AREVA group’s net income amounted to 503 million euros at June 30, 2017, compared with 88 million euros at June 30, 2016. In 2017, it benefitted from the neutralization of amortization, depreciation and impairment for the entire half year in the total amount of 534 million euros, excluding tax, in accordance with NewCo's IFRS 5 classification. This classification was made on December 15, 2016 and, in this regard, had no impact on operating income for the first half of 2016.

In millions of euros		H1 2017		H1 2016		Change
						H1 2017 / H1 2016
NewCo operating income contributing to AREVA SA net income		503		88		+€415 m
Neutralization of amortization and depreciation		(309)		0		-€309 m
Neutralization of impairment		(225)		0		-€225 m
Restated operating income from the neutralization of amortization, depreciation and impairment		(31)		88		-€119 m

Within NewCo’s perimeter, once the amortization, depreciation and impairment had been reinstated, the operating loss at June 30, 2017 amounted to 31 million euros, broken down as follows:

• Operating income for the Mining operations totaled 128 million euros, compared with 21 million euros in the first half of 2016. It was impacted by impairment of 107 million euros for the Imouraren mine in Niger caused by the change in the euro-dollar exchange rate over the period. At June 30, 2016, operating income had been impacted by impairment of Imouraren and Trekkopje assets in the total amount of 203 million euros.
• The operating loss for the Front End was 19 million euros, compared with a loss of 44 million euros in the first half of 2016. It was impacted by:
  • impairment of the Comurhex II industrial asset in the first half of 2017 in the total amount of 118 million euros in connection with price reductions in the conversion market and the unfavorable change in the euro-dollar exchange rate over the period;
  • a 62-million-euro reduction in provisions for losses on contracts recognized in 2016 as a consequence of the reduction of projected contract costs arising from performance plan savings achieved to date and expected over the coming periods.

• The Back End recorded operating income of 20 million euros in the first half of 2017, a decrease of 73 million euros compared with the first half of 2016. It was penalized in the first half of 2017 by the unfavorable contract mix and by a production delay in the Recycling operations, partly offset by the positive effects of the performance plan.
• The operating loss for "Corporate and other operations” was 161 million euros at June 30, 2017, compared with operating income of 17 million euros at the same date in 2016, due to:
  • an 80-million-euro increase in a contingency for risks and uncertainties related to the dismantling of facilities in the front end of the cycle and waste retrieval and packaging;
  • corporate expenses borne by NewCo in the first half of 2017, whereas in 2016 those expenses had been paid by AREVA SA;
  • differences on movements of provisions related to the social restructuring in progress.

NewCo’s EBITDA for the first half of 2017 was down compared with the first half of 2016 (521 million euros at June 30, 2017 compared with 681 million euros).

• EBITDA for the Mining operations amounted to 341 million euros, essentially stable compared with the same period in 2016 (346 million euros, i.e. -1.3%), with the effects of the competitiveness plan offsetting the drop in volumes and prices.
• In the Front End operations, EBITDA came to 139 million euros, compared with 94 million euros in the first half of 2016, an increase of 46.8%. This change is due to a more favorable contract schedule and to savings resulting from the competitiveness plan.
• The Back End recorded EBITDA of 131 million euros, a decrease of 106 million euros compared with the first half of 2016 (237 million euros) due to an unfavorable contract mix in the Recycling operations and to the catch-up effect in the first half of 2016 related to the signature of the treatment and recycling contract with EDF.
• EBITDA for Corporate and other operations was -90 million euros, compared with +4 million euros in the first half of 2016. This change over the period is explained in particular by:
  • expenses for the Voluntary Departure Plan in France over the first half;
  • corporate expenses borne by NewCo in the first half of 2017, whereas in 2016 those expenses had been paid by AREVA SA.

NewCo’s operating cash flow, which is no longer recognized in reported operating cash flow, reached -41 million euros at June 30, 2017, a decrease of 209 million euros compared with the same date in 2016 (167 million euros at June 30, 2016). In addition to the explanations related to the change in EBITDA (see above), this reduction is due in particular to the increase in net CAPEX, which reached 310 million euros at June 30, 2017, compared with 253 million euros at June 30, 2016. In fact, the reduction of CAPEX in production recorded in Mining and the Front End was more than offset by the acquisition of minority interests in subsidiaries of the Tricastin platform which began at the end of 2016 and continued in 2017.

Implementation of the NewCo performance plan

The performance plan had a cumulative impact on EBITDA of more than 400 million euros compared with 2014, i.e. more than 80% of the 500-million-euro objective for 2018.

The most significant activities carried out over the half year were related to productivity improvement measures and continued reductions of external expenses.

The portfolio of activities to secure savings of approximately 500 million euros across the NewCo footprint in 2018 has been stabilized at 700 million euros for all operations and functions.

Financial outlook of NewCo

• Liquidity for the year in progress

NewCo’s closing cash position is expected to amount to between 1.5 and 2 billion euros by the end of 2017. This amount includes the proceeds of 2.5 billion euros from the capital increase subscribed by the French State on July 26. The proceeds of 500 million euros from the capital increase subscribed by JNFL and MHI during the sale of New NP, planned for the end of the year, is not expected to be received until the beginning of 2018 in view of the time required to convert the funds placed in trust account.

The cash position anticipated at the annual closing of the accounts includes in particular the reimbursement of bond debt in the amount of 0.8 billion euros and the increase in funds earmarked for end-of-lifecycle operations in the amount of 0.8 billion euros.

• For 2020

The target for NewCo’s profitability in 2020 remains unchanged and is in the range of:

• 22% to 25% for the EBITDA margin;
• more than 8% for the operating margin.

II. Key figures of other operations sold, discontinued or held for sale

This section presents the cumulative financial aggregates of New NP (AREVA NP operations held for sale to EDF and to strategic investors, excluding the OL3 contract and the means necessary to complete that project), AREVA TA (until March 29, 2017), Canberra (for the first six months of 2016), and Renewable Energies (excluding Bioenergy, which continues to be classified under continuing operations). Consequently, the financial aggregates presented below are given for information purposes only and do not contribute to the group’s consolidated aggregates.

The backlog of other operations held for sale at June 30 amounted to 12.1 billion euros, compared with 13.1 billion euros at December 31, 2016. Orders related to the Hinkley Point C (HPC) contract, which represent the amount of 3.9 billion euros, are not included in the backlog at June 30, 2016.

Hinkley Point C contract

The contract to manufacture two nuclear steam supply systems as well as safety and operational instrumentation and control systems for the HPC project (the "Contract” or the "NSSS Contract”) was signed by AREVA NP and NNB Generation Company (HPC) Limited ("NNB”) and took effect on September 29, 2016. The other HPC-related contracts within the AREVA group are conditioned on the validity of the NSSS Contract.

Once the NSSS Contract took effect, an agreement (the "NTP Agreement”) was issued on January 4, 2017 with NNB on the triggers of this contract and on a prepayment of 268 million euros; this prepayment was achieved on January 5, 2017.

The "NTP Agreement” also clarifies that the prepayment was conditioned on: (i) the approval by NNB’s governance of an amendment to the nuclear steam supply systems contract before September 29, 2017; (ii) the implementation of a quality plan related to the primary components agreed between AREVA NP and NNB before September 30, 2017, and (iii) the implementation of agreements resulting from the creation of EDVANCE before October 1, 2017.

Discussions between AREVA NP and NNB on amendments to be made to the Contract following the reorganization of the French nuclear industry and the creation of the EDVANCE Company continued to be underway at the end of June 2017, with the objective of being completed to support the operational startup of EDVANCE for the HPC project on October 1, 2017.

AREVA NP and NNB have committed to taking the necessary action to achieve the above-mentioned objectives as soon as possible.

In that context, AREVA NP is confident that these conditions will be fulfilled in the second half of 2017.

Revenue from other operations sold, discontinued or held for sale reached 1.623 billion euros at June 30, 2017, compared with 1.788 billion euros at the same date in 2016. This change is due to the negative impacts of consolidation scope related to the sale of Canberra in mid-2016 and to the sale of AREVA TA on March 29, 2017. AREVA NP’s revenue was practically stable over the period (-0.9%).

Operating income from other operations sold, discontinued or held for sale amounted to 583 million euros in the first half of 2017, compared with 157 million euros in the first half of 2016. This improvement is mainly due to income from AREVA TA disposals and AREVA NP, for which operating income rose 114 million euros to reach 213 million euros, in particular thanks to the effects of performance improvement activities as well as to reversals of past provisions in connection with restructuring for which the final costs were not as high as initially anticipated.

At June 30, 2017, EBITDA for other operations sold, discontinued or held for sale was stable in relation to the same date in 2016 (101 million euros compared with 99 million euros in 2016).

The operating cash flow of other operations sold, discontinued or held for sale, which are no longer recognized in reported operating cash flow, came to 250 million euros at June 30, 2017, compared with 4 million euros at June 30, 2016. This change is due to the favorable variance of WCR of AREVA NP's Large Projects operations, which benefit in particular from an advance received in connection with the Hinkley Point contract C.

III. Key reported figures

Pursuant to IFRS 5, financial aggregates of operations sold, discontinued or held for sale are presented on a separate line of the statement of income, the statement of cash flows and the statement of balance sheet.

Consequently, AREVA’s aggregates essentially reflect the Olkiluoto 3 EPR contract in Finland ("OL3”), the remaining Bioenergy operations, the recognition of costs and provisions for contingencies and expenses related to the group’s restructuring, and AREVA’s bank financing. They do not include:

-- New AREVA Holding and its subsidiaries, corresponding to the "NewCo” consolidation scope
-- AREVA NP (excluding the OL3 contract) and its subsidiaries, corresponding to the "New NP” consolidation scope
-- Nuclear Measurements (Canberra)
-- Propulsion and Research Reactors (AREVA TA)
-- Solar Energy
-- Wind Energy (Adwen)

The statement of income and the statement of cash flows at June 30, 2016 were restated to present a consolidation scope comparable to June 30, 2017.

In millions of euros		H1 2017		H1 2016*		Change
						H1 2017 / H1 2016
Revenue		11		2		+€9 m
Operating income		(297)		(2)		-€295 m
Net income from operations sold, discontinued or held for sale**/***		826		(133)		+€959 m
Net income attributable to owners of the parent		550		(120)		+€670 m
Earnings per share		+€1.44		-€0.31		+€1.75
EBITDA		(248)		(371)		+€123 m
Operating cash flow		(314)		(293)		-€20 m
Net cash flow from company operations		(474)		(497)		+€23 m
		6/30/2017		12/31/2016
Net debt (-) / net cash (+)		(1,971)		(1,473)		-€498 m

* Adjusted for application of IFRS 5

** Operations of NewCo, AREVA NP (excluding the OL3 project), Nuclear Measurements, Propulsion and Research Reactors, Solar Energy and Wind Energy

*** After neutralization of amortization, depreciation and impairment

Financial indicators are defined in the financial glossary in Appendix 6 - Definitions.

Revenue from continuing operations amounted to 11 million euros at June 30, 2017, compared with 2 million euros at June 30, 2016. This growth is due to the charge-back of services (rents, brand fee) rendered by AREVA SA to recently sold entities of the group. In addition, 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 in the first half of 2013.

Operating income from continuing operations (i.e. excluding NewCo, New NP, AREVA TA, Canberra and Solar Energy) amounted to -297 million euros at June 30, 2017, compared with -2 million euros at the same date in 2016. At June 30, 2016, operating income had been impacted in particular by the cancellation of a 180-million-euro provision constituted in 2015, in connection with the change in the group’s restructuring plan.

At June 30, 2017, it included:

• an additional loss at completion of 34 million euros for the Olkiluoto EPR;
• an additional provision of approximately 200 million euros related to costs, risks, disputes and guarantees related to the continuing operations or to the restructuring operations.

Net income attributable to owners of the parent was 550 million euros at June 30, 2017, compared with -120 million euros at June 30, 2016.

Added on top of the operating income described above are:

• Improved net financial income from continuing operations, at -15 million euros compared with -38 million euros in the first half of 2016, due to the costs for setting up the bridge loan at the beginning of last year;
• Net income from operations sold, discontinued or held for sale, which encompasses net income from NewCo, New NP, AREVA TA, Canberra, and the Wind Energy and Solar Energy operations, amounted to 826 million euros in the first half of 2017, compared with -133 million euros in the first half of 2016. At June 30, 2017, it benefitted in particular from:
  • income from asset disposals occurring in 2017 in the amount of +319 million euros;
  • the neutralization of amortization, depreciation and impairment for the entire half-year period, in the net amount after tax of +441 million euros.

• In addition, no tax expense was recognized in the first half of 2017. In view of the taxable income forecasts, the projected effective tax rate for the integrated AREVA SA group does not include any value for deferred tax assets which will be generated in 2017. This position is thus reflected in the tax expenses of the group recognized at June 30, 2017.

The other components of the change in net income from those operations are explained in parts I and II of this document.

EBITDA from continuing operations amounted to -248 million euros at June 30, 2017, compared with -371 million euros in June 2016. This change is due to:

• the transfer of corporate costs related to the NewCo and New NP consolidation scopes paid by AREVA SA in 2016 by virtue of existing agreements and recorded directly in the entities which make up those two consolidation scopes since January 1, 2017;
• to a lesser extent, a reduction of expenses on the OL3 contract.

Operating cash flow from continuing operations totaled -314 million euros at June 30, 2017, compared with -293 million euros one year earlier. This decrease is primarily due to a more favorable change in WCR on the OL3 project for the first half of 2016 due to customer payments received over that period.

Net cash flow from company operations

In millions of euros		H1 2017		H1 2016*		Change
						H1 2017 / H1 2016
Operating cash flow		(314)		(293)		-€20 m
Net cash flow from operations sold, discontinued or held for sale		(379)		(200)		-€179 m
Income tax		127		38		+€89 m
Cost of borrowed capital		(23)		(31)		+€8 m
Other items		116		(11)		+€127 m
Non-operating cash flow		(160)		(204)		+€44 m
Net cash flow from company operations		(474)		(497)		+€24 m

* Adjusted for application of IFRS 5

Net cash flow from company operations amounted to -474 million euros in the first half of 2017, compared with -497 million euros in the first half of 2016.

Added to operating cash flow from continuing operations, whose change is explained above, were in particular:

• Net cash flow from operations sold, discontinued or held for sale (notably NewCo, New NP, AREVA TA and Solar Energy) in the amount of -379 million euros, including in particular borrowing costs and disbursements for NewCo taxes;
• Cash outflows connected with net borrowing costs in the amount of -23 million euros;
• Tax receipts of +127 million euros corresponding to 2017 tax prepayments made in the first half by the profit-making subsidiaries to AREVA SA as the head of the group's tax consolidation, and to the liquidation of 2016 taxes from consolidated subsidiaries.

Cash position and net borrowings

• At June 30, 2017, AREVA’s consolidated cash position was 1.421 billion euros; it benefitted from the payment of two shareholder advances in the total amount of 2 billion euros in the first half of 2017.
• In addition, current borrowings in AREVA’s continuing operations amounted to 3.342 billion euros, consisting mainly of the above-mentioned shareholder advances in the amount of 2 billion euros, repaid by offsetting the payable with a capital increase reserved to the French State in the same amount on July 12, and the syndicated line of credit of 1.25 billion euros repayable in January 2018.
• The group had total net borrowings of 1.971 billion euros at June 30, 2017, compared with 1.473 billion euros at December 31, 2016. The 498-million-euro increase in net borrowings corresponds mainly to net cash flow from company operations in the amount of -474 million euros, explained above.

Financial outlook

The capital increase of 2 billion euros which occurred on July 12, 2017 and the sale of New NP to EDF, planned to take place by the end of 2017 in the amount of approximately 2.5 billion euros (excluding potential earn-out provisions and price supplements) aim to enable the company to pay down its debt and to finance its future operations until its commitments have been extinguished, in particular for the completion of the OL3 project, litigations and for guarantees given on certain contracts.

AREVA has not identified items likely to call into question the completion of the New NP sale before the end of 2017. To secure the schedule for the transaction, AREVA is maintaining tight control of the sales process and of the fulfillment of the conditions precedent stipulated in the share purchase agreement.

Taken together, these items will ensure the continuity of operations.

If the sale of New NP were to occur late in the year, AREVA SA secured a commitment from its banking partners on March 28, 2017 for "senior secured” bridge financing of 300 million euros, repayable on January 8, 2018.

In addition, if the combined risks and guarantees related to the continuing operations and guarantees given in connection with the restructuring operations were to exceed available resources, the company also holds an interest in New AREVA Holding, whose value was a little more than 2 billion euros at June 30, 2017.

In view of AREVA SA’s loss of control of NewCo as a result of the NewCo capital increase reserved for the French State carried out on July 26, and in view of the plan to sell the majority control of New NP to EDF, the French State filed a draft public takeover bid on AREVA SA shares not held by the State directly or indirectly through the CEA, in accordance with article 236-6 of the general regulations of the Autorité des marchés financiers (AMF). The State has contribution commitments that should enable it to hold more than 95% of the capital and voting rights of AREVA SA at the end of the public takeover bid and would then ask for the implementation of a compulsory squeeze-out at the end of the public takeover bid. The price of the public takeover bid and of the compulsory squeeze-out is identical to the issue price of the AREVA SA capital increase, i.e. 4.50 euros per share.

The draft public takeover bid, and the compulsory squeeze-out that would follow, remains subject to AMF's review, whose notice of compliance is expected in the coming days.

IV. NewCo capital increase and placement in trust of MHI and JNFL subscriptions

The NewCo Board of Directors, which had decided to implement the capital increase reserved for the French State starting July 12, met again on July 26, 2017 and recorded:

• the completion of the capital increase reserved for the French State in the amount of 2.5 billion euros;
• the placement in trust of funds corresponding to the total amount of the investment of JNFL and MHI in NewCo, i.e. 500 million euros.

Right after the sale of the majority control of New NP to EDF planned for the end of 2017 and subject to the fulfillment of certain preconditions (in particular certain customary regulatory conditions related to the acquisition of an equity stake by JNFL and MHI), the trust funds will be used for the subscription to a second NewCo capital increase reserved for JNFL and MHI of a total amount of 500 million euros, and which would happen at the beginning of 2018 in view of the time required to convert the funds placed in trust account. At the end of this transaction, JNFL and MHI will each hold 5% of NewCo's capital.

The objective of these capital increases is to enable NewCo to meet its financial obligations, to support its development, before being in a position in the medium term to refinance on the markets.

Following the completion of this first NewCo capital increase on July 26, 2017, the French State now owns 55.6% of the capital and voting rights of NewCo. Consequently, NewCo is not controlled by AREVA SA anymore, AREVA SA holding a minority interest of 44.4% of the capital.

V. Reorganization of the governance of AREVA SA and of NewCo

The completion of the NewCo capital increase reserved for the French State was also followed by a recomposition of the governance of AREVA SA and of NewCo.

• Change of AREVA SA’s governance

The appointment of Mr. Philippe Soulié as Chief Executive Officer of AREVA SA was made by decree on a proposal from the AREVA SA Board of Directors of July 12, 2017.

In addition, the AREVA SA Board of Directors chaired by Mr. Philippe Varin is now composed of seven directors, including the Chairman, the Chief Executive Officer, one director representing the French State appointed by ministerial order, two directors appointed on a proposal from the State, and two independent directors.

• Change of NewCo’s governance

The appointment of Mr. Philippe Knoche as Chief Executive Officer of NewCo was made on July 12, 2017 and confirmed by decree, on a proposal from the NewCo Board of Directors of July 12, 2017.

In addition, the NewCo Board of Directors is now chaired by Mr. Philippe Varin and is composed of twelve directors, including the Chairman, the Chief Executive Officer, one director representing the French State appointed by ministerial order, five directors appointed on a proposal from the State, two directors representing company personnel and two independent directors.

VI. Other highlights of the recent period

Implementation of the strategic roadmap

• AREVA SA capital increases:
  • On July 12, 2017, the AREVA SA Board of Directors initiated the implementation and recorded the completion of the AREVA SA capital increase of 2 billion euros reserved for the French State. The State now holds 92.2% of the capital and 91.7% of the voting rights of AREVA SA, directly and indirectly via the CEA.
• Draft public takeover bid on AREVA SA shares:
  • In view of AREVA SA’s loss of control of NewCo as a result of the NewCo capital increase reserved for the French State carried out on July 26, and in view of the plan to sell the majority control of New NP to EDF, the French State filed on July 13, 2017 a draft public takeover bid on AREVA SA shares not held by the State directly or indirectly through the CEA, in accordance with article 236-6 of the general regulations of the Autorité des marchés financiers (AMF). The State benefits from contribution commitments that should enable it to hold more than 95% of the capital and voting rights of AREVA SA at the end of the public takeover bid and would then ask for the implementation of a compulsory squeeze-out at the end of the public takeover bid. The price of the public takeover bid and of the compulsory squeeze-out will be identical to the issue price of the AREVA SA capital increase, i.e. 4.50 euros per share.
  • The AREVA SA Board of Directors decided to issue a favorable opinion on the draft public takeover bid and to recommend that its shareholders contribute their shares to the public takeover bid;
  • The draft public takeover bid, and the compulsory squeeze-out that would follow, remains subject to AMF's review, whose notice of compliance is expected in the coming days.

• Agreements coming into force with MHI and JNFL for their acquisition of a stake in NewCo:
  • On March 20, 2017, the Investment Agreement and the shareholders’ agreement related to NewCo signed by MHI, JNFL, the French State and the AREVA group, entered into force, with retroactive effect as of March 13, 2017.
• Sale of New NP:
  • On July 12, the AREVA SA Board of Directors approved the signature of binding agreements for the acquisition of an equity stake in New NP by:
    • MHI¹, for a stake of between 15% and 19.5% inclusive; and
    • Assystem, for a 5% stake.
  • In connection with these agreements, the selling price for 100% of the equity value of New NP was confirmed at 2.5 billion euros, excluding potential earn-out provisions and price adjustments and with no transfer of financial debt at the closing date.
  • Discussions were also initiated between EDF and AREVA on the conditions for the implementation of the European Commission decision requiring AREVA to fully exit New NP at the latest by the end of the AREVA restructuring plan, slated for 2019.

• Creation of EDVANCE:
  • Following the AREVA SA Board of Directors’ approval of the project at the end of April, on May 17, 2017 the Board of Directors of the EDF Group approved the creation of the EDVANCE Company, concluding the combination of the EDF and AREVA NP engineering teams for the construction of nuclear islands. The necessary documents for the establishment of EDVANCE were signed by EDF and AREVA NP at the end of the first half of 2017.
• Sale of AREVA TA:
  • On March 29, 2017, AREVA carried out the sale of its majority interest in AREVA TA to a consortium of buyers consisting of the Agence des Participations de l’État (APE), the Commissariat à l’énergie atomique et aux énergies alternatives (CEA) and DCNS.
• Sale of Mainco:
  • Because of the refocusing of the Logistics operations on its core business, the Mainco subsidiary was sold to the family-owned AXIOM group on June 30, 2017.
• Developments in the nuclear fuel cycle:
  • On April 10, 2017, AREVA and KAZATOMPROM signed an agreement aimed at strengthening their cooperation in the uranium mining sector in Kazakhstan. This agreement offers a new long-term outlook to KATCO with the development of the South Tortkuduk Project, which will ensure its production over the next two decades.
  • On June 9, AREVA announced that the AREVA-EWN consortium was going to dismantle the vessel internals of the Brunsbüttel reactor operated by Vattenfall GmbH.
  • On July 11, AREVA announced the signature of a contract with the NorthStar group, which specializes in the cleanup and dismantling of nuclear facilities in the United States. This contract concerns the cutting up and packaging of the vessel and internal vessel components of the Vermont Yankee boiling water reactor in the State of Vermont. AREVA will also ship the packaged elements to a dedicated disposal site.

______________________

1 Subject to approval by its Board of Directors

Implementation of the performance plan

• Adaptation of the group's workforce:

Employees who opted for one of the Voluntary Departure Plans (VDP) continued to depart over the course of the first half of 2017. The reduction of the group’s combined workforce is in line with the objective of 6,000 job cuts by the end of 2017. Thus, at June 30, 2017, AREVA had a global workforce of 34,227 employees, compared with 41,847 employees at December 31, 2014, a reduction of approximately 18.2% representing 7,620 employees (including 2,795 employees related to the sales of the subsidiaries Canberra, ELTA, AREVA TA and Mainco, and 4,825 employees who left the group, in the context of the Voluntary Departure Plan or for other reasons).

Status of large projects

• Olkiluoto 3:
  • On May 18, 2017, TVO withdrew its summary application against AREVA aimed at obtaining information on its restructuring and on the potential consequences for the execution of the OL3 contract.
  • On July 1, the OL3 project teams met a major milestone in connection with the start-up of the EPR reactor by successfully completing cold functional testing.
  • In accordance with the schedule of the arbitral proceeding, the arbitration tribunal rendered a third partial decision on July 10, 2017 which is in favor of TVO’s position. It follows a second partial decision granting certain requests from TVO, which had already been rendered at the end of 2016. However, these last two partial decisions do not constitute a ruling on TVO’s allegations against the consortium of a serious or intentional offence, nor on the financial outcome of the dispute between the parties. The final decision is expected in early 2018. In addition, the consortium and its counsel consider that the allegations of serious/intentional offence made in TVO’s counterclaim remain unfounded.

• Taishan 1 & 2:

Hot testing on unit 1 continued, and the first fuel core was delivered in April.

• Flamanville 3:
  • On March 15, 2017, the full testing phase was launched with water filling of the primary cooling system.
  • On June 28, the nuclear safety authority (ASN) presented its position regarding the tenacity of the upper and lower heads (closure head and bottom head) of the Flamanville EPR reactor and published its draft opinion on July 10, 2017. This draft is subject to public consultation and comment until September 12, 2017, after which ASN will render a final opinion, expected in October 2017. On the basis of the technical analyses carried out, ASN considers that the mechanical characteristics of the pressure vessel bottom head and closure head are adequate with regard to the loadings to which these parts are subjected, including accident situations. However, the anomaly in the chemical composition of the steel entails a reduction in the margins with respect to the fast fracture risk. ASN therefore considers that EDF must implement additional periodic inspections to ensure that no flaws appear subsequently. ASN observes that such inspections can be performed on the vessel bottom head and therefore considers that they must be implemented. However, the technical feasibility of similar inspections on the pressure vessel closure head is not established. ASN therefore considers that the use of the closure head must be limited in time. It notes that it would take about seven years to manufacture a new closure head, which could thus be available by the end of 2024. In these conditions, ASN considers that the current closure head shall not be operated beyond that date.

Status of component manufacturing

• The quality audit of the Creusot plant continued in the first half of 2017.
• AREVA NP defined a comprehensive performance improvement plan for the site based on strengthening safety culture, on a robust quality management system, on a strengthened organization, and on fully controlled manufacturing processes. Its deployment began in 2016 and is the subject of regular reviews with customers in France and abroad as well as with the safety authorities concerned. Currently consisting of 52 action items, it includes all of their recommendations and continues to be the subject of progress reviews and inspections at the site.
• The plan will continue to be deployed at the site. AREVA NP will also continue to implement its investment plan at the level of 8 million euros for 2017.
• In parallel, review of past manufacturing files of the Creusot site continues with the customers and the safety authorities concerned. Those conducted at the AREVA NP and Jeumont and Saint-Marcel sites have now been completed and confirm the absence of practices similar to those found at the Creusot site. Actions to strengthen safety culture are carried out at all of AREVA NP's component manufacturing sites.

************************

Correction to the AREVA SA consolidated financial statements for the year ended December 31, 2016

During actuarial assessments carried out in the first quarter of 2017, a material error was identified in the estimate of provisions for employee benefits recognized at December 31, 2016. This error concerns (i) a delay in updating workforce databases, which did not factor in some resignations and some retirements for actuarial calculations at December 31, 2016, and (ii) to a lesser extent, an additional plan reduction related to departures under the VDP. Following the correction of this error, net income at December 31, 2016 was increased by 17 million euros, and actuarial gains and losses of 33 million euros were recognized in comprehensive income.

Pursuant to IAS 8, the impact of that correction was recognized retroactively in the statement of income and in the statement of comprehensive income for the year ended December 31, 2016, and consequently in equity at January 1, 2017. The statement of financial position and the statement of comprehensive income at December 31, 2016 presented in the consolidated financial statements for the period ended June 30, 2017 have been corrected accordingly.

Note:

Status of half-year financial statements for the period ended June 30, 2017 as concerns the limited review:

The procedures for limited review of the half-year financial statements have been completed and the limited review report is in the process of being issued.

Important information

This press release and the information it contains do not constitute an offer to sell or buy or a solicitation of a sale or purchase of AREVA shares in any jurisdiction whatsoever.

The broadcasting, publication or distribution of this press release in certain countries may constitute a violation of applicable legal and regulatory provisions. Consequently, persons physically present in those countries and in which this press release is broadcast, published or distributed must inform themselves and comply with those laws and regulations.

This document does not constitute an offer to sell securities or the solicitation of an offer to sell securities in the United States. The securities mentioned in this document have not been and will not be recorded under the U.S. Securities Act of 1933, as amended (the "Securities Act”), and may not be offered or sold in the United States in the absence of registration or a waiver of registration under the Securities Act. AREVA has no intention of registering an offer in whole or in part in the United States or to make an offering to the public in the United States.

This document contains forward-looking statements relative to the financial position, results, operations, strategy and outlook of AREVA. These statements include forecasts and estimates as well as the assumptions on which they are based, and statements related to projects, objectives and expectations concerning future operations, products and services or future performance. These forward-looking statements are generally identified by the words "expect to”, "anticipate”, "believe”, "plan”, "could”, "foresee” or "estimate”, and by other similar terms. Although AREVA’s management believes that these forward-looking statements are reasonable, AREVA’s investors and investment certificate holders are hereby advised that these forward-looking statements are subject to numerous risks and uncertainties that are difficult to foresee and generally beyond AREVA’s control, which may mean that the expected results and developments differ significantly from those expressed, induced or forecast in the forward-looking statements and information. These risks include those explained or identified in the public documents filed by AREVA with the AMF, including those listed in the "Risk Factors” section of the Reference Document registered with the AMF on 11.04.17 (which may be read online on AREVA’s website, www.areva.com). The attention of investors and bearers of AREVA shares is drawn to the fact that the realization of all or part of these risks is likely to have a significant unfavorable impact on AREVA. Thus, these forward-looking statements do not constitute guarantees as to AREVA’s future performance. These forward-looking statements can be assessed only as of the date of this press release. AREVA makes no commitment to update the forward-looking statements and information, except as required by applicable laws and regulations.

Appendix 1 – Statement of Income
In millions of euros		H1 2017		H1 2016*		Change H1 17/H1 16
Revenue		11		2		+€9 m
Other income from operations		0		0		+€0 m
Cost of sales		(283)		(98)		-€185 m
Gross margin		(273)		(96)		-€177 m
Research and development expenses		(1)		(8)		+€7 m
Marketing and sales expenses		(1)		0		-€1 m
General and administrative expenses		(12)		(71)		+€59 m
Other operating income and expenses		(9)		173		-€182 m
Operating income		(297)		(2)		-€295 m
Share in net income of joint ventures and associates		(1)		(14)		+€13 m
Operating income after share in net income of joint ventures and associates		(298)		(16)		-€282 m
Income from cash and cash equivalents		1		3		-€2 m
Gross borrowing costs		(9)		(33)		+€24 m
Net borrowing costs		(8)		(30)		+€22 m
Other financial income and expenses		(7)		(9)		+€2 m
Net financial income		(15)		(38)		+€23 m
Income tax		0		0		+€0 m
Net income after tax from continuing operations		(313)		(54)		-€259 m
Net income after tax from operations sold, discontinued or held for sale		826		(133)		+€959 m
Net income for the period		513		(187)		+€700 m
Including net income attributable to minority interests		(37)		(67)		+€30 m
Net income attributable to owners of the parent		550		(120)		+€670 m
Comprehensive income		675		(523)		+€1,198 m
Average number of shares outstanding, excluding treasury shares		382,240,908		382,255,261		-14,353
Basic earnings per share (in euros)		+€1.44		-€0.31		+€1.75

* Adjusted for application of IFRS 5

Appendix 2 – Statement of Consolidated Cash Flows
In millions of euros		H1 2017		H1 2016*		Change H1 2017 / H1 2016
Cash flow from operations before interest and taxes		(260)		(364)		+€104 m
Net interest and taxes paid		121		30		+€91 m
Cash flow from operations after interest and tax		(139)		(334)		+€195 m
Change in working capital requirement		(65)		79		-€144 m
Net cash flow from operating activities		(204)		(255)		+€51 m
Net cash flow from investing activities		71		29		+€42 m
Net cash flow from financing activities		(267)		1,989		-€2,256 m
Decrease (increase) in securities recognized at fair value through profit and loss		0		0		+€0 m
Impact of foreign exchange movements		0		(1)		+€1m
Net cash from operations sold, discontinued or held for sale		1,192		(472)		+€1,664 m
Increase (decrease) in net cash		792		1,289		-€497 m
Net cash at the beginning of the period		786		745		+€41 m
Cash at the end of the period		1,578		2,034		-€456 m
Short-term bank facilities and non-trade current accounts (credit balances)		11		69		-€58 m
Less: Net cash from operations held for sale		(167)		(45)		-€122 m
Cash and cash equivalents		1,421		2,058		-€637 m
Short-term borrowings		3,342		831		+€2,511 m
Available net cash		(1,921)		1,227		-€3,148 m

* Adjusted for application of IFRS 5

Appendix 3 – Condensed Balance Sheet
In millions of euros		6/30/2017		12/31/2016
Net goodwill		0		0
Property, plant and equipment (PP&E) and intangible assets		18		67
Operating working capital requirement – assets		438		408
Net cash		1,421		686
Deferred tax assets		3		1
Other assets		385		536
Assets of operations held for sale		27,052		27,032
Total assets		29,317		28,729
Equity and minority interests		(2,761)		(3,377)
Employee benefits		4		4
Other current and non-current provisions		1,927		2,060
Operating working capital requirement – liabilities		419		517
Borrowings		3,406		2,182
Deferred tax liabilities		0		0
Other liabilities		2		4
Liabilities of operations held for sale		26,321		27,341
Total liabilities		29,317		28,729

Appendix 4 – Notable items with an impact on net income
In millions of euros		H1 2016		H1 2017
Additional losses on the OL3 project		(41)		(34)
Impairment in Mining		(203)		(107)
Provisions and impairment in the Front End		(43)		(118)
Provisions for end-of-lifecycle operations in the Back End				(80)
Impact of reduction of the discount rate on end-of-lifecycle operations		(69)
Other provisions		133		(218)
Neutralization of amortization, depreciation and impairment		76		441
Capital gains on asset disposals				319
Total		-€147 m		+€190 m

Appendix 5 – Key NewCo figures
In millions of euros		H1 2017		H1 2016		Change H1 2017 / H1 2016
Backlog		29,521		32,483		-€2,962 m
of which:
Mining		8,647		9,421		-€774 m
Front End		9,964		11,507		-€1,543 m
Back End		10,904		11,552		-€648 m
Corporate and other operations*		6		4		+€3 m
Revenue		1,740		1,929		-€189 m
of which:
Mining		638		705		-€67 m
Front End		329		384		-€55 m
Back End		765		832		-€67 m
Corporate and other operations*		7		7		+€1 m
Operating income**		503		88		+€415 m
of which:
Mining		128		21		+€107 m
Front End		(19)		(44)		+€24 m
Back End		20		93		-€73 m
Corporate and other operations*		373		17		+€357 m
EBITDA		521		681		-€160 m
of which:
Mining		341		346		-€4 m
Front End		139		94		+€44 m
Back End		131		237		-€106 m
Corporate and other operations*		(90)		4		-€94 m
Operating cash flow		(41)		167		-€209 m
of which:
Mining		216		206		+€10 m
Front End		(89)		(130)		+€41 m
Back End		(14)		117		-€131 m
Corporate and other operations*		(154)		(26)		-€128 m

* Includes in particular the Corporate, AREVA Med and AREVA Projects operations

** After neutralization of amortization, depreciation and impairment for the first half of 2017

Appendix 6 – Definitions

Like-for-like (LFL): at constant exchange rates and consolidation scope.

Operating working capital requirement (operating WCR): Operating WCR represents all of the current assets and liabilities related directly to operations. It includes the following items:

• inventories and work-in-process,
• trade accounts receivable and related accounts,
• advances paid,
• other accounts receivable, accrued income and prepaid expenses;
• minus: trade accounts payable and related accounts, trade advances and prepayments received (excluding interest-bearing advances), other operating liabilities, accrued expenses, and deferred income;

Note: Operating WCR does not include non-operating receivables and payables such as income tax liabilities, amounts receivable on the sale of non-current assets, and liabilities in respect of the purchase of non-current assets.

Backlog: The backlog is valued based on economic conditions at the end of the period. It includes firm orders and excludes unconfirmed options. Orders in hedged foreign currencies are valued at the rate hedged. Non-hedged orders are valued at the rate in effect on the last day of the period. The backlog reported for long-term contracts recorded under the percentage of completion method and partially performed as of the reporting date is equal to the difference between (a) the projected sales revenue from the contract at completion and (b) the sales revenue already recognized for this particular contract. Accordingly, the backlog takes into account escalation and price revision assumptions used by the group to determine the projected revenue at completion.

Net cash flow from company operations: the net cash flow from company operations is equal to the sum of the following items:

• operating cash flow,
• cash flow from end-of-lifecycle operations,
• change in non-operating receivables and liabilities,
• financial income,
• tax on financial income,
• dividends paid to minority shareholders of consolidated subsidiaries,
• net cash flow from operations sold, discontinued and held for sale, and cash flow from the sale of those operations,
• acquisitions and disposals of current financial assets not classified in cash or cash equivalents,
• financing of joint ventures and associates through shareholder advances, long-term loans and capital increases.

Net cash flow from company operations thus corresponds to the change in net debt, except for transactions with AREVA shareholders, and currency translation adjustments.

Operating cash flow (OCF): operating cash flow (OCF) represents the amount of cash flow generated by operating activities before income tax. It is equal to the sum of the following items:

• EBITDA,
• plus losses or minus gains on disposals of property, plant and equipment and intangible assets included in operating income,
• plus the decrease or minus the increase in operating working capital requirement between the beginning and the end of the period (excluding reclassifications, currency translation adjustments and changes in consolidation scope),
• minus acquisitions of property, plant and equipment and intangible assets, net of changes in accounts payable related to fixed assets,
• plus sales of property, plant and equipment and intangible assets included in operating income, net of changes in receivables on the sale of fixed assets,
• plus prepayments received from customers during the period on non-current assets,
• plus acquisitions (or disposals) of consolidated companies (excluding equity associates), net of the cash acquired.

Net debt: net debt is defined as the sum of current and non-current borrowings, minus cash, cash equivalents and bank deposits constituted for margin calls for derivatives ("collateral”).

Earnings before interest, taxes, depreciation and amortization (EBITDA): EBITDA is equal to operating income after depreciation, depletion, amortization and provisions, net of reversals. EBITDA is restated to exclude the cost of end-of-lifecycle operations performed in nuclear facilities during the year (facility dismantling, waste retrieval and packaging). It should be noted that the cash flows linked to end-of-lifecycle operations are presented separately.

Foreign exchange impact: The foreign exchange impact mentioned in this release comes from the translation of subsidiary accounts into the group’s unit of account. The latter is primarily due to changes in the US dollar in relation to the euro. AREVA also points out that its foreign exchange hedging policy for commercial operations aims to shield profitability from fluctuations in exchange rates in relation to the euro.

Cash flow from end-of-lifecycle operations: This indicator encompasses all of the cash flows linked to end-of-lifecycle operations and to assets earmarked to cover those operations. It is equal to the sum of the following items:

• revenue from the portfolio of earmarked assets, cash from disposals of earmarked assets
• full and final payments received for facility dismantling,
• minus acquisitions of earmarked assets,
• minus cash spent during the year on end-of-lifecycle operations,
• minus full and final payments paid for facility dismantling.

ABOUT AREVA

AREVA supplies high added-value products and services for the operation of the global nuclear fleet.

The group is present throughout the entire nuclear cycle, from uranium mining to used fuel recycling, including nuclear reactor design and operating services.

Its expertise, its skills in cutting-edge technologies and its uncompromising insistence on safety are recognized by utilities all over the world.

AREVA’s 36,000 employees are helping build tomorrow’s energy model: supplying ever cleaner, safer and more economical energy to the greatest number of people.

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