The CEA Financial report 2017 2017 financial report — www.cea.fr Auditors’ report Notes to theAnnualFinancialStatements Cash flow statement Budget reconciliation Balance sheet Income statement ANNUAL FINANCIALSTATEMENTS 2018 outlook Purchasing management Funds to cover clean-up anddecommissioningcosts Staff numbers Expenditure Funding Implementation of thebudget for thefinancial year MANAGEMENT REPORT Contents ......

...... 1 p.

p. p. 31 p. 12 p. 11 p. 10 8 p. 7 p. 6 p. 6 p. 4 p. 3 p. p. 9 p. 2 The 2017management accountsshow asurplusof €66 millionfor thedefence sector. to make anearly repayment of oftheoutstanding part capitalonthedebt owed to ORANOCycle. to anextraordinary injection of €100 millioninfunding by theFrench government, inorder to enable theCEA The 2017management accountsshow asurplusof €126 millionfor thecivilsector. This surplusispartlydue 1. Implementation ofthebudget Management report •  •  •  The mainevents of 2017included: MANAGEMENT ACCOUNTS RESULT (DEFENCESECTOR) Total expenditure ondefence programmes Balance of civil/defence flows Total expenditure Total funding Defence sector MANAGEMENT ACCOUNTS RESULT (CIVIL SECTOR) Total expenditure oncivilprogrammes Balance of civil/defence flows Total expenditure Total funding Civil sector were designedby architect; theCEAasenergy freeparticle-emission boat, whosepower systems autonomous hydrogen-powered andCO scanner, producing an11.7-tesla magnetic field; component of theworld’s most powerful MRI designed by Alstom GE, which willbethekey assembly of the block; launch ofObserver, theEnergy thefirst ever installation of agiant130-tonne magnet, Iseult, completion of civilworks of andstart trialplant 2 - and •  •  •  centres. a merger of theSaclay andFontenay-aux-Roses research bodyinFrance; BULL inpartnershipwiththeCEA; computing speedof 25petaflops, built by ATOS/ establishment of theCEAParis-Saclay Centre, recognition of theCEAasleading patent-filing assembly of the Tera 1000-2 machine witha 2,644 2,693 2,307 1,699 1,830 1,749 - 336 2016 - 50 82 50 3,020 3,079 2,953 1,861 1,927 1,793 2017 - 67 126 66 67 (in millions of euros) euros) of millions (in 2017 /2016 Variation

+12 + 33 + 36 + 12 + 36 + 6 + 6 + 5 ns ns % 1 — — Management report — 2 2017 financial report — www.cea.fr en M€ Horowitz Reactor (JHR), theAstrid GenIV technology demonstrator andthehigh-performance computer. €113 million insubsidieswere paidto theCEAunderInvestment for theFuture Programme for the Jules The civilsubsidyaccountsfor 39%of civilfunding andthedefence subsidyfor 84%of defence funding. reassignment of theCEA’s residual shareholding inAREVA SA (+€270 million)to theFrench State. CEA Funding was upby 21% compared with2016. Approximately 30%of thisfunding growth isdueto 2. Funding projects. is inlinewiththestages of progress of thevarious The 4%increase insubsidiesfrom 2016to 2017 Defence sector: •  •  •  2016 and2017breaks down asfollows: The €32 millionincrease incivilsubsidies between Civil sector: inStatesubsidies a. Changes External income Investment for theFuture subsidy ITER subsidy Subsidies excluding Investment for theFuture andITER Civil sector TOTAL DEFENCE Carried over from previous year Fund for defence clean-up operations External income Subsidy Defence sector TOTAL CIVIL Carried over from previous year CSA* funding Fund for civilanddefence clean-up operations 2,000 2,500 3,000 1,000 1,500 -€9 million for thehigh-performance computer). the Astrid GenIV technology demonstrator and subsidies (+€42 millionfor JHR, -€4 millionfor Investment for theFuture andITER, a €29 millionincrease inInvestment for theFuture a €15 millionincrease intheITERsubsidy, a €12 milliondecrease inState subsidiesexcluding 500 Defence subsidy Total Civil subsidy(includingITERandInvestments for theFuture) 0 2,731

2015 1,207

1,524 2,733

2016 1,173

1,560 2,821

2017 1,205

1,616 millions 2,307 1,830 1,560 accounts). (neutral operation interms of themanagement to acquire astake in repayment of acashadvance). This enabled theCEA shareholding inAREVA SA to theFrench State (after exercising anoption to reassign theCEA’s residual result inextraordinary of €270.2 million income from The increased incomeinthecivilsector ischiefly the 5.9% increase for defence. and 2017, witha32.2%risefor thecivilsector anda External increase incomesaw a30.5% between 2016 b. inexternal Changes incomeby sector en M€ 1,000 1,200 of € of 1,100 207 852 999 172 100 200 300 400 500 600 700 800 900 70 84 90 42 57 Civil sector 5 2016 0 100 100 37 43 85 % 3 0 9 4 4 2 9 3

2015 846 Defence sector Total 885 millions 3,079 1,927 1,616 1,127 * CSA: Complementary Safety Assessments of € of 663 113 105 987 39 169 80 82 60 4 2017 for anequivalent value

2016 852 909 100 100 22 37 32 84 % 3 0 4 3 57 4 9 3 2017 1,127 2017 /2016 1,187 Variation + 14 + 32 + 34 + 17 + 33 - 10 + 4 + + 60 + 6 - 1 - 1 ns ns % 5

43% of external incomecomesfrom industrial partnersand57%from institutional partners. Externalincomeby partner c. residual CEAshareholding inAREVA SA to the French State. acquisition of holdings inORANO (€270 million), which was achieved inreturn for thereassignment of the increased by 12%inthecivilsector and6%inthedefence sector. This increase inchiefly related to the The expenditure in2017represents a10%increase over 2016across theCEAasawhole. Expenditure 3. Expenditure Balance of civil–defence flows Investments Expenditure excl. staffing andinvestments Payroll andtravel expenses Defence sector TOTAL CIVIL Balance of civil–defence flows Investments Expenditure excl. staffing andinvestments Payroll andtravel expenses Civil sector TOTAL DEFENCE Research organisations Local authorities and universities Investments for the Future Programme European Union 67 51 79

5 92 4 M€ M€ % %

7 M€

8 M€ % %

8 97 founds National incentive %

M€ Other income 293 the CEA’s external

Breakdown of 25

M€ income %

millions

2,644 1,749 1,198 1,134 of € of - 50 332 960 407 362 50 2016

19 229 Other industry 100 100 - 2 19 55 23 14 45 43 % % 3

millions M€ 2,953 1,861 1,219 1,142 of € of - 67 392 987 415 659

67 2017 13 147 Nuclear industry 9 105 & healthtech sectors Micro-nanotech % 2 26 IRSN % %

M€ 100 100 - 2 21 53 22 22 41 39

% M€ 4

M€

2017 /2016 Évolution + 36 + 18 + 36 + 82 + 12 + 3 + 2 + 2 + 1 + 6 % 3 — — Management report — 4 2017 financial report — www.cea.fr of the residual CEAshareholding inAREVA SA to theFrench State. acquisition of ashareholding inORANO(€270 million), which was achieved inreturn for thereassignment The structure of 2017expenditure shows anincrease ininvestments compared to 2016, related to the numbers. In thedefence sector, staff numbers increased by compared 0.8% with2016, after several years of dropping and onprogrammes related to the “” and “foundations for basicresearch” missions. In thecivilsector, staff numbers have decreased by compared 0.3% with2016, roles particularlyinsupport sector and4,357inthedefence sector. These staff numbers are near-stable compared with2016. In 2017, theCEAhadaworkforce of employment 15,622FTEonpermanent contracts, with11,265 inthecivil by sector instaffnumbers a. Changes 4. Staffnumbers to theFrench State. (€270 million), which was achieved inreturn for thereassignment of theresidual CEAshareholding inAREVA SA The increase ininvestments compared to 2016isprimarily related to theacquisitionof holdings inORANO Investments 12,000 14,000 16,000 10,000 en M€ 2,000 4,000 6,000 8,000 1,000 1,200 200 400 600 800 0 0 Expenditure excluding staff andinvestments 2,207 15,701 655 11,343 370 2015 2015 46

4,358 285 M€ %

15,623 694 11,303 362 2016 2016 expenditure of theCEA’s

4,320 332 Breakdown 15,622 1,051

11,265 659 2017 2017

22 1,051 Investments 4,357 392 %

M€ 32 1,556 Workforce andtravel

Total Defence sector Civil Sector Total Defence sector Civil Sector %

M€

c. Changes in staff numbers by fieldfor eachsector instaffnumbers Changes c. Managerial staff accountfor 64.4%of theworkforce, afigure that isslightly upfrom 2016(+1.3%). by status b. instaffnumbers Changes 12,000 14,000 16,000 10,000 2,000 4,000 6,000 8,000 0 Core fundamental Outreach subsidy TIS Technologies for industry and Dismantling/ Conventional mission Security and 15,701 clean-up research General support 924 144 9,820 the sciencecommunity 2015 231 General support 1,251 5,881 3,423

and assets 92 3,525 15,623

9,930 2016 Defence staffing staffing 5,693 sector sector Civil

NRBC*

15,622

47 10,056 2017 Higher education 113 and training 5,566 *NRBC: Chemical, biological, radiological and 954 clean-up Nuclear dismantling/ 2,639 Joint mission 2,064 Nuclear energy 22 ITER project Total Non-managerial staff Managerial staff

192 subcontracting Defence nuclear counter-terrorism 5 — — Management report — 6 2017 financial report — www.cea.fr assets: The above liabilitiesare covered by varioustypesof non-recoverable VAT oncivilcentre projects not financed by thecivil fund. facilities anddefence facilities. The remaining €81millionrepresents payable theportion by theState for These commitmentsare covered to theamountof €16,364millionby four decommissioningfunds for civil a discounted valueof €16,445 million. and theprovision for retrospective adjustment of theCigeo contributionis€16 million, representing intotal As at 31December2017, thediscounted valueof liabilitiesfor end-of-cycle operations was €16,429 million 5.  The Committee examines theCEA’s major draft an Order dated 6December1952 (asamended). which isindependent of theCEA, was created by Committee for Procurements andContracts, In terms of official oversight, an Advisory 1 April2016. The above regulations have beeninforce since •  •  French Law: of 26February 2014into Directive 2014/24/EU framework comprisingtheinstruments transposing CEA purchasing activities are subject to aregulatory and proper useof publicfunds. principles seekto guarantee efficient purchasing legislation andtransposed into French law. These procedures, asstipulated by European Community treatment of economicoperators, andtransparent of free accessto publicprocurement contracts, equal As apublicbody, theCEAmust abideby theprinciples purchases. Roughly half of theCEA’s budget isdevoted to 6.  •  Decommissioning assets -third parties Claims onState relating to CIGEO of which Civilfund Claims ontheState ASSETS (MILLIONS OF €) TOTAL WCR andliquidassets of which Civilfund financing adjustment procurement. procurement; Cigeo contribution; cover theriskof aretrospective adjustment of the non-recoverable VAT oncivilprojects and€16 Mto €5,733 million undertheCivilFund, €81 millionin comprising €11,386 millionundertheDefence Fund, Decree no. 2016-360of 25March 2016onpublic Order no. 2015-899of 23 July 2015onpublic a €17,216 millionclaimontheFrench State, Defence fund Excluding above funds Defence fund Purchasing – Strategic Partnerships and Sales Division –StrategicandSales Purchasing Partnerships decommissioning costs Funds tocover clean-upand shares 31.12.2017 16,489 11,386 17,200 5,733 - 731 16 81 4 7 9 - 31.12.2016

13,582 14,555 - 1,191 9,568 4,909 197 16 78 5 7 9 reviewed against theCEA’s strict safety andsecurity Suppliers’ skills andcapabilitiesare regularly implementation times andcosts at completion. addenda, andthusensure better control over project will reduce theneedfor contract amendments or performance. Contractual solutions are sought that exogenous contingencies that might affect contract process by anticipating any endogenous or It therefore works to improve itscontract drafting The CEA’s programmes are often highly complex. its procurement procedures. purchasing processes andthequalityof contribute to improving theefficiency of CEA recommendations of theAdvisory Committee an unfavourable review. The opinionsand VAT). Noneof these299draft contracts received amounting to atotal of €2,130.6 million(excluding its Chairperson to examine 299draft contracts In 2017, theAdvisory Committee was asked by reports itsfindings to theBoard. by theCEAExecutive Board’s Audit Committee, which above. Itpublishesanannualreportthat isexamined various thresholds defined intheOrder mentioned contracts orframework agreements, asdefined by ratio asat was 31 December2017. 100.3% On thisbasis, theCEA’s assets-to-liabilities coverage •  •  of which Civilfund Provisions for CIGEO adjustment State of which Civilfund operations Provisions for end-of-cycle LIABILITIES (MILLIONS OF €) TOTAL (€670 million). which includetheCEA’s debt to ORANOCycle cash equivalents, includinglatent capitalgains, the working capitalrequirements andcash& a cashpositionof -€731million, comprising a €4 millionasset (claim)onIRSN; Defence fund New defence facilities fund Defence fund New civilfacilities fund

31.12.2017 16,445 16,429 8,823 7,428 16 81 73 24 7 9 31.12.2016 13,531 13,547

5,919 7,435 16 78 70 29 7 9 fournisseurs responsables” charter. 30of Article the relations withsuppliers, by signingthe “Relation In 2010, theCEAcommitted itself to responsible €750 million. or medium-sized businesses, for avalueof around awarded approximately 28%of itscontracts to small French government’s “SME Pact”. In2017, theCEA Since 2004, theCEAhasbeenasignatory of the government’s objectives for expanding innovation. to meet itsneeds. This alsomeets theFrench to stimulating thisinnovation capacityinorder are often highly innovative, andtheCEAcontributes in thetendering process. Such economicoperators medium-sized businessesaspossible to participate mind, theCEAseeks to enable asmany smalland commercialising itsresearch outputs. Withthisin to industry, particularly inFrance’s regions, andto the transfer of knowledge, skillsandtechnology competitive, to technological development and contribute to ensuringthat France remains requires that theCEAshould (paragraph 4) Alternative Energies andAtomic Commission Energy to theorganisation andoperation of theFrench Decree no. 2016-311of 17March 2016pertaining clean-up anddecommissioningoperations. requirements, especially withregard to nuclear increasing by 0.3%. compared withthe2017budget, with staff numbers agreement should fall by inthecivilsector 0.5% Payroll costs underthecollective bargaining 4% over the2017budget. Expenditure inthecivilsector isexpected to riseby account for 15%of theCEA’s total funding. The civilanddefence decommissioningfunds will from industrial partners. the 2017budget, notably withanincrease inincome External incomeis projected to increase by 2.7% over research infrastructure andtheITERprojects. projects andthefinancingneeds for very large-scale budget, given the2018programme of defence for 64%of allfunding, a4.7% increase onthe2017 Investment for theFuture Programmes, account The State subsidyinthe2018budget, including from the 2017budget. In theCEA’s budget for 2018, funding isupby 2% 7.  that they take into accounttheeconomic, social prior to thelaunch of procurement procedures, and the nature andscopeof needsto beprecisely defined “Public Procurement” Order of 23 July 2015requires Outlook for 2018 CEAbudget is operated by the DAE. paperless procurement processes (PLACE), which The CEAhasadopted theState platform for performance of publicbodies. makes asignificantcontribution to theprocurement Under theDAE’s procurement action plan, theCEA as apublic body. beyond itsstatutory obligations towards theDAE Directorate of Public Procurement (DAE), going well works constructively withtheFrench government The Strategic Partnerships andSales Divisionalso or supported employment sector. and 250 contracts were awarded to thesheltered included environmental orsocialprovisions, circumstances sopermit. In2017, 12%of contracts various stages of theprocurement process wherever environmental andsocialperformance of the undertaken to gradually improve theeconomic, development goals. The CEAhastherefore and environmental aspects of thesustainable the 2017 budget. sector willcontinueto fall (-3.1%) compared with The numberof general staff support inthedefence falling slightly, by 0.7%. compared withthe2017budget, withstaff numbers agreement should fall by inthedefence 0.6% sector Payroll costs underthecollective bargaining the plannedprogress of variousprojects. by 2.9%compared withthe 2017budget, inlinewith Expenditure inthedefence sector isexpected to rise the 2017 budget. secto will continueto fall (-1.3%) compared with The numberof general staff support inthecivil measurement. share itsexperience of procurement orperformance On several occasions, theDAE hasinvited CEAto assistance inIT serviceprovision. contracts for project management andownership contracts. Inthisarea, ithastaken aninterest in initiated by theDAE orother inter-ministerial agreement,pooling consortium joinupwithcontracts The CEAcanalso, procurement underapermanent 7 — — Management report — 8 2017 financial report — www.cea.fr DSND • ITER • • New Defence Facilities •  •  •  •  covered by provision write-backs (New Defence Facilities Fund). respectively), are primarily related to latent capitalgains(New CivilFacilities Fund) andto costs that were not Results from theNew CivilFacilities andNew Defence Facilities Funds (+€1 millionand-€2 million an extraordinary expense of €219 million. Fund, replacing theclaimonState for thecorresponding amount. The resulting debt write-off generated granted by theFrench government, withatransfer of securitiesfrom theCentral Establishment to theCivil The loss recognised intheCivilFund (-€217 million)isprimarily dueto therepayment of a€376 millionadvance increase innet financialincome, against a very significantincrease in extraordinary losses (-€458 million). financial year. Thisvariation is chiefly due toan€15millionincrease in net operating incomeanda€3 million The 2017IncomeStatement shows aloss of €515million, which islarger by millionthanintheprevious €440 1.  Annual financialstatements IRT • I2EN • AFNI • DDCG • NET RESULT CORPORATE TAX NET EXTRAORDINARY ITEMS(INCOMEORLOSS) Extraordinary expenses Extraordinary income INCOME (LOSS) FROMOPERATIONS NET FINANCIAL INCOME(LOSS) Financial expenses Financial income NET OPERATING INCOME OPERATING EXPENSES Other expenses Share of thenet result from jointoperations Allocations for depreciation andprovisions Staff costs Taxes, dutiesandsimilarpayments Expenditure over thefinancial year OPERATING INCOME Other income Write-back of equipmentgrants Write-back of provisions Budgeted operating income Capitalised production Production added to inventory INCOME Provision of services Construction work Sales New CivilFacilities Defence Fund Civil Fund General budget (excl. carryovers) Income Statement ...... 1 ...... - € 296 million - - € 217million - - € 2million - - € million - € million - € million - € million - € million - € million - € million - € million - excluding carryovers (-€296 million) includes The management figures for the general budget and facilities concerning defence. concerning facilities and 1 Temps) (€4 million). time off inlieuaccount(CET –Compte Epargne- (€13 million) andvariation intheprovision for the variation intheprovision for annualleave DSND : Delegate for nuclear safety and radiation protection for activities activities for protection radiation and safety nuclear for Delegate : DSND NOTE 10 NOTE 12 NOTE 11 NOTE 3 NOTE 8 NOTE 7 NOTE 6 NOTE 5 NOTE 9 NOTE 8 NOTE 4 Notes - 4,325 - 2,095 - 1,508 - 1,159 4,273 2,252 - 515 - 452 - 744 - 492 - 223 2017 - 63 - 11 - 52 527 707 733 453 805 128 196 323 - 7 76 32 (in millions of euros) euros) of millions (in 8 - - - 4,322 - 2,025 - 1,481 - 1,126 4,255 2,268 - 585 - 227 1,112 2016 - 75 - 81 - 14 - 67 - 75 559 456 822 208 346

- 4 81 37 37 76 6 5 - - 2. Balance sheet 2. Balance which initially created afinancialimbalance whenit was set up. The loss carried forward (-€483 million) hasmainly arisenfrom themanagement of thededicated civilfund, GRAND TOTAL INCREASE INCLAIMONSTATE FOREIGN EXCHANGE ADJUSTMENTS OTHER SUNDRY PAYABLES OPERATING PAYABLES ADVANCES RECEIVED ONORDERS FINANCIAL DEBT PROVISION FOR LIABILITIES ANDEXPENSES EQUITY CAPITAL Balance for theyear financial years Balance carried forward from previous Equipment grants received from third parties Special reserves Liabilities GRAND TOTAL REDUCTION INCLAIMSON STATE FOREIGN EXCHANGE ADJUSTMENTS OTHER NET VALUE Provisions Gross value CASH BALANCES ANDSECURITIES SUNDRY RECEIVABLES CLAIMS ON THE STATE NET VALUE Provisions Gross value OPERATING RECEIVABLES ADVANCE PAYMENTS MADEONORDERS NET VALUE Provisions Gross value INVENTORY ANDWORK-IN-PROGRESS NET VALUE Depreciation andprovisions Gross value FIXED ASSETS Provisions Gross value FINANCIAL ASSETS DECOMMISSIONING ASSETS - THIRD PARTIES Depreciation Gross value Other tangible assets TANGIBLE ASSETS Depreciation Gross value INTANGIBLE ASSETS Assets NOTE 20 NOTE 19 NOTE 18 NOTE 16 NOTE 15 NOTE 14 NOTE 13 NOTE 23 NOTE 22 NOTE 22 NOTE 21 NOTE 13 Notes Notes Amount asat Amount asat 31/12/2017 31/12/2017 -254 -4 337 14,269 33,943 16,567 14,384 33,943 15,896 15,011 - 7,639 - 7,359 17,216 8,257 6,260 6,279 1,113 1,873 - 515 - 483 - 19 - 26 - 53 849 128 570 753 819 543 574 872 83 59 18 50 5 - - - - dedicated dedicated Excluding Excluding 16,498 14,395 16,498 15,892 15,011 13,620 - 7,639 - 7,359 funds funds 8,253 6,260 6,279 - 254 - 296 1,113 - 19 - 26 - 42 - 53 849 816 128 203 384 753 699 543 337 384 752 48 59 18 81 50 1 0 - - - - Dedicated Dedicated - - 16,364 17,445 17,445 17,135 funds funds 1,057 - 441 - 219 - 11 186 120 649 190 120 - 4 35 4 4 4 ------(in millions of euros) euros) of millions (in euros) of millions (in Amount asat Amount asat 31/12/2016 31/12/2016 -4 -75 -3,133 1,048 13,698 14,570 14,372 13,978 11,818 - 7,345 - 7,073 15,730 31,750 31,750 1,032 8,385 6,238 6,257 2,722 1,229 1,861 1,171 - 240 1,175 - 19 - 32 - 52 259 466 816 321 868 89 74 64 15 25 5 - - 9 — — Annual financial statements — 10 — 2017 financial report — www.cea.fr The 2017budget balanceshows adeficit of €27million. Agency funds. decommissioning funds, andtheIRT, AFNI(Agence France Nucléaire International), DSNDandITERFrance income, write-back of equipmentgrants, capitalisedproduction) andneutralising theancillarybudgets, the back of depreciations, allocations to andwrite-back of provisions oninventory, extraordinary certain expenses/ after eliminating transactions that are by nature non-budgeted (change ininventories, allocations to andwrite- The accountingresult for thefinancial year (operations andinvestment) andthebudget balanceare reconciled 3. Budgetreconciliation EXPENDITURE BUDGETED GRAND TOTAL ACTIVITIES TOTAL INVESTING advances in Class 4: changes purchases Class 2asset Class 1 (excl. VAT) Investing activities ACTIVITIES TOTAL OPERATING expenses and income adjustment of Restatement/ STATEMENT TOTAL FROMINCOME SPECIAL RESERVE ALLOCATED TO ANNUAL SUBSIDY CORPORATE TAX EXPENSES EXTRAORDINARY EXPENSES FINANCIAL OPERATIONS RESULTFROM JOINT SHARE OF NET AND PROVISIONS DEPRECIATION ALLOWANCES FOR Staff costs Tax andduties third parties the periodfrom Expenditure over EXPENSES OPERATING (EXCL. VAT) OPERATIONS

expenses expenses 6,881 6,228 1,508 2,102 1,159 6,151 Total 744 730 492 - 77 223 725 (A) 5 ------transactions budgeted Of which which Of 1,098 1,098 1,098 non- 564 464 15 49 (B) 6 ------

ancillary ancillary Of which which Of budgets (C) 6 6 6 2 4 ------which which DSND DSND (D) Of Of 6 6 6 4 2 ------

which which DDCG (E) Of Of 1 1 1 1 ------

which which - 103 131 128 AIF 28 28 (G) Of Of 1 2 ------

dedicated Of which which Of 1,304 1,308 - 350 - 350 funds 954 569 737 - 4 (H) 1 1 ------

which AFNI (J) Of Of 0 ------

which I2EN (K) Of Of 2 2 2 1 ------

which IRT (L) Of Of 3 3 3 2 1 ------

(in millions of euros) euros) of millions (in (A)-(B)-(C)-(D)- oa budgeted Total (I)-(J)-(K)-(L) expenditure (E)-(G)-(H)- 3,673 4,783 3,703 1,080 1,075 1,484 1,916 223 26 24 30 5 ------

(*) 4.  GRAND TOTAL ACTIVITIES TOTAL OPERATING equipment subsidy reserves and subsidy to special Allocation of theState during theperiod from third parties Subsidies received Financial debt Class 1 (excl. VAT) Investing activities ACTIVITIES TOTAL OPERATING expenses andincome adjustment of Restatement/ STATEMENT TOTAL FROMINCOME RESERVES TO SPECIAL ALLOCATION INCOME EXTRAORDINARY INCOME FINANCIAL from third parties received contributions equipment grants and Write-backs of provisions depreciation and Write-backs of INCOME OPERATING Closing cashbalance pening cashbalance NET INCREASE (DECREASE) INCASH CASH FROMFINANCING • Subsidiesandcontributionsreceived from theState andthird (2) parties • Changes infinancialdebt Repayment of State advance Financing activities CASH BALANCE AFTERINVESTMENT FINANCING CASH FROMINVESTING • Changes inDecommissioningAssets - Third Party • Changes infinancialassets • Acquisition of tangible andintangible assets Proceeds from thedisposalof tangible andintangible assets Investing activities CASH FROMOPERATIONS • Changes indebt • Changes inreceivables includingadvancesanddepositsonfixed assets • Changes ininventory • Carry forward Cash from operations (1) Operating activities (EXCL. VAT) ACTIVITIES OPERATING FUNDING BUDGETED Change incashposition including investment securities investment including Cash flow statement

(*) (*) (*) funding 6,229 3,015 6,152 7,079 Total 927 515 708 733 - 77 776 146 453 805 (A) 5 - -

transactions budgeted Of which which Of 1,192 1,192 1,192 non- 515 158 451 42 12 14 (B) ------

ancillary ancillary Of which which Of annexes (C) 7 7 7 7 ------which which DSND DSND (D) Of Of 6 6 6 6 ------

which which DDCG (E) Of Of 1 1 1 1 ------

which which - 103 130 130 AIF 27 27 (G) Of Of ------

dedicated Of which which Of 1,085 1,085 1,089 - 748 funds 376 745 716 - 4 (H) ------(C =A+B)

which AFNI (C +D) (J) Of Of 0 ------

(D) (B) (A) which I2EN (K) Of Of 2 2 2 2 ------31/12/2017

which - 3,060,9 - 3,012.7 - 3,690,1 - 3,111.9 3,226,4 2,844.5 - 629,2 - 463,7 - 463.7 - 788.7 IRT (L) Of Of - 75.9 504.8 968.5 488.5 414.6 3 3 3 1 2 2,725 648.1 ------.1 0 -

376 5.9 (in millions of euros) euros) of millions (in euros) of millions (in (A)-(B)-(C)-(D)- oa budgeted Total (I)-(J)-(K)-(L) 31/12/2016 (E)-(G)-(H)- - 2,008 funding - 1,011 - 2,711 3,829 3,458 2,818 4,756 3,799 2,821 1,052 - 998 - 255 - 746 - 2.7 927 290 776 146 810 - 19 810 968 158 542 125 30 46 5 5 3 1 - - - - -

11 — 11 — Annual financial statements — 12 — 2017 financial report — www.cea.fr Chairman signedby Chairman thePrimeMinister on20April In accordance withtheLetter of Engagement of the 72-1158 of 14December1972. of 29September 1970and itsimplementing Order No. defined by various texts, Order inparticular No. 70-878 operation of theCEAanditsrelations withtheState are 1945 Order which have beentemporarily upheld, the In addition to the2004Order andtheprovisions of the • Operation of theCEA with businessrules andpractices. management andto present itsaccountsinaccordance The CEAisalsoauthorised to conduct itsown financial activities (EPIC). public organisations withindustrial andcommercial and financial autonomy, falling withinthecategory of establishment withlegal personality, andadministrative Commission (CEA)isascientific, technical andindustrial French Alternative Energies andAtomic Energy No. 45-2563 of 18October 1945, that confirm the the French Research Code–which repealed Order 2004 –incorporated L. inArticles 332.1 to 332.7 of The provisions of Order No. 2004-545of 11 June • Status of theCEA background Note 1-General A -ACCOUNTING METHODSANDPRINCIPLES 5.  •  • CEA’s strategic andinvestment aims. company ORANO. This outcome corresponds withthe holds any shares inAREVA SA andhasa stake inthenew As aresult of thesetransactions, theCEAnolonger -  -  -  permitted to: • UnderanOrder dated 16August 2017, theCEAwas • Key events in2017 with other research bodies. - Revise existing texts inorder to simplifyandcoordinate - Clarifythemissionof theCEA, -  published. The purposeof saiddecree isto: organisation andoperation of theCEAwas adopted and Decree No. 2016-311of 17March to 2016pertaining the Republic at theNuclear Policy Councilof 8 July 2015, 2015 andthedecisionsmadeby thePresident of the of €252 millionintheCEAaccounts. State intheswap transaction hasled to abookloss held inAREVA SA andthebuy-back pricepaidby the The difference between thebookvalueof theshares Dedicated Funds. CEA had to transfer further AREVA shares to the was held inthescope of theDedicated Funds, the In order to repay the€376millionadvance, which from theFrench State for atotal priceof €270million; Purchase a5.4%stake (12,774,283 shares) inORANO the French State for apriceof€270 million; sell a15.1% stake inAREVA SA (124,793,828 shares) to forth intheagreement of 13 July 2016; granted by theState to theCEAunderconditionsset to theFrench State to repay the€376millionadvance sell a10.1% stake inAREVA SA (83,555,555shares) of theorganisation by itssupervisorybodies, Reform CEAgovernance to enhancestrategic oversight Notes totheAnnualFinancialStatements Notes •  •  •  • • •  • •  •  This asset transfer offset aclaimontheState for the The assumptions used by theCEAto calculate staff- The claimontheState to cover clean-up and as at 31December2017. Discussionswithgovernment CFCa facility at , for acost of €670million decommissioning costs at theLaHague site andthe Cogema of obligations relating to future clean-up and to ORANOcorresponding to thetransfer from CEAto late Decemberto enable repayment of theCEAdebt dedicated to older facilities. respectively) to cover expenditure from thefunds instalments of €370millioninFebruary andNovember out andatotal of €2,725 millionwas carried over. no longer required. This adjustment accountwas closed adjustment accountonthebalancesheet istherefore the AREVA share price. The corresponding entryinan on theState willnolonger beaffected by fluctuation in and Defence Funds asat 31December2017, theclaim an extraordinary expense of €219million. same amount. The resulting debt write-off generated related commitments asat 31 December2017are the €113 million. acquired a20%stake in Technicatome at acost of over theperiod(-€840 million). (€3,180 million) andthegovernment funding paidout to estimates andcalendars for theolder Funds at 31December2016. This incorporates therevisions is €17,216 millioncompared with€14,570millionas decommissioning liabilitiesfrom before 1 January 2010 unchanged at 4.1% and 1.65% respectively. The discountrate andlong-term inflation rate remain and have beenat thecentre of furtherspecific audits. primarily relate to theMarcoule andCadarache centres calendar represent €3,180 million. These revisions at 31 December 2016. Revisions to theestimates and million,€16,445 compared with€13,547millionas term plan. At close of period, theprovisions are timetables set forth inthebaselinemid-to-long- prioritisation reportandare consistent withthe 31 December2016, incorporate theimpacts of the risksthe confirmed mentionedinnotes as at costings inprinciple. These new estimates reduce this work hasgiven riseto somesignificantly revised updated. for andClimate Energy (DGEC) andwillberegularly in 2018at therequest of theDirectorate-General project. This draft mid-to-long-term planwillbeaudited establishing aten-year operational programme for each and IRSN, andamid-to-long-term planwas drawn up, continued itsdiscussionswiththesafety authorities the safety authorities on16December2016, theCEA decommissioning operations prioritisation reportto future repayments willbefunded andcompleted. ministries andORANOare inprogress to define how the Payment of €100millioningovernment funding in Payment of €740millioningovernment funding (two Since there are nolonger any AREVA shares intheCivil As part of theAREVAAs part restructuring process, theCEA As stated inthenotes to the2016financial statements, Following submissionof aclean-up and of thegrants recorded over thefinancial year, under results in anegative balancebecause of cancellation of transactions for thefinancial year exceptionally Similarly, ifafter appropriation of funds, thebalance income”, thenplacedinthe “special reserves” account. performed, isentered under “Budgeted operating intended to financeservicesthat have not yet been Funding received at theendof thefinancial year, method. (inventory andwork-in-progress) ortheirfinancing the businessandassets, given theirspecialisednature deemed unlikely to produce atrue representation of accounting regulations stipulated by thesetexts was assets andliabilities,certain theapplication of the Exemptions have beenallowed, if, inthevaluation of on 15 October 2014. September 2014andpublishedintheOfficialGazette Authority (ANC), asapproved by theOrder dated 8 No. 2014-03of theFrench Accounting Standards general of chart accountsinaccordance withRegulation • General principles Accounting methodsandprinciples - Note 2 to depreciation of development ontheseinvestments. Depreciations entered onthe “Land” linecorrespond applied to theseasset categories. straight-line method andthedepreciation rates normally conditions of use. These conditionscorrespond to the determined onthebasisof theiruseful life, ortheirlikely Tangible assets are subject to depreciation schedules of its major investments. The CEAapplies thecomponentapproach for each and administrative costs. cost orproduction cost, excluding financial charges Tangible assets are valuedat thehistorical acquisition b) Tangibleassets outcome, are treated asexpenditure for thefinancial year. Research anddevelopment costs, whatever their use of theserights, compared withthereserved volume. depreciation iscalculated inproportion to theactual the acquisitionof waste disposalrights, for which include the pre-financing of ANDRAinvestments for categories, not exceeding aperiodof five years. They also method andthedepreciation rates applied to theseasset use. These conditions correspond to thestraight-line said assets oraccording to theirlikely conditionsof acquired, which are depreciated over theuseful life of Intangible assets includepatents andlicenses a) Intangible assets •  reserves”. already made, thisbalanceisallocated to “special reduction inexpenditure because of commitments circumstances which donot allow acorresponding and aforecast inflation rate of 1.5%. same asthoseusedin2016: adiscountrate of 1.5% as at year-end Accounting methods andprinciples applying

(see Note k(2)). corresponding provisions, ondiscounted bases These assets are valuedsymmetrically withthe third parties”. (IRSN) isrecognised as “Decommissioning assets - corresponding to funding expected from third parties The share of provisions for end-of-cycle operations c) Decommissioningassets third parties”. from theState” and “Equipment grants received from assets are recognised as “Equipment grants received Investment subsidiesreceived for thepurchase of fixed •  • Transport equipmentandvehicles ...... 4years • Plantandequipment...... 3to 10years • Technical facilities ...... 10 to 30years • Light constructions ...... 10 years • Buildings ...... 20 years The key depreciation periodsapplied are asfollows: CEA’s long-term nuclear costs, thetotal amountof the CEA Framework Agreement on thefinancing of the Under theprovisions of Amendment1to theState/ f) ClaimontheState value inuseortheutilityof thematerials. consumable materials isassessedonthe basisof their At theendof thefinancial year, thevalue of inventories of irradiation. entered the reactor, of acycle orbecomepart involving they have beenmadeavailable to theenduser, orhave basic materials are considered to have beenused once depreciation. Inventories of consumable materials and realisable ordisposable assets anddonot give riseto any specific programmes, they cannot beconverted into Since thesematerials were procured and funded under ultimately berecovered by theCEA. Forces isthevalue of thematerials alone, which will systems andresources madeavailable to theArmed For presentation purposes, thevalueapplied to weapon charges. production cost excluding overheads andfinancial to thepurchase cost of goods andservicesorthe are valuedat theircost price. Cost pricecorresponds Work inprogress, goods inprocess andfinishedproducts weighted average cost. Inventories of consumable materials are valuedat their weighted average cost. strategic materials are valuedat theirestimated Inventories of raw materials, basicmaterials, and e) Inventories historical cost. calculated onashare-by-share basis, islower thanthe date. Aprovision isset asidewhenthisinventory value, of thenetof worth thesubsidiaryon the accounting Their bookvalueiscalculated onthebasisof theshare Financial assets are valuedat theirhistorical cost. d) Financialassets Furniture, office andIT to 10 equipment...... 3 years

13 — 13 — Annual financial statements — 14 — 2017 financial report — www.cea.fr The budget subsidyawarded by theState isrecognised i) Budget subsidyreceived from theState the financial year. A provision ismadefor unrealised losses at theendof basis of thelast rate for December, for bonds. asset valueof theunits, for investment funds, andonthe losses are calculated onthebasisof thelast known net Furthermore, asat theclosure date, unrealised gainsor at theiracquisitioncost. Investment securitiesare recorded onthebalancesheet h) Investment securities not yet already beenmade. months after theirduedate for which aprovision has 31 Decemberfor any receivables still outstanding six Unless duly justified, aprovision willbe recognised on according to anassessmentof theriskof default. areImpairments valuedonacase-by-case basis ofg) Impairment receivables explained inNote 18. The accountingimplications of thisagreement are (€17,216 million). Defence Fund) asat 31December2017was established claim ontheState (Dedicated CivilFund +Dedicated the subject of aprobable disbursement to athird party. legal, contractual orimplicit, andwhether ornot itis with sufficientaccuracy, whether thisobligation is third at periodendthat party theCEAisable to estimate A provision is created ifthere isanobligation towards a k) Provision for liabilities andexpenses of the fixed assets that they have helped to finance. according to theestimated life orduration of service These grants are recognised ontheincomestatement j)  to reduce theclaimonState. Government funding paidinto theDedicated Funds serve financial year. State allocated to net operating expenditure over the represents theshare of thefunds received from the The amountentered under “Budgeted operating income” inventories. represents thefinancing of financialassets and The amountentered under “Special reserves” mainly on orders for fixed assets. transactions advancesanddepositspaid concerning and tangible fixed assets, excluding non-budgeted corresponds to theresidual valueof intangible The amountentered under “Equipment grants” finance net operating expenditure over thefinancial year. cover ongoing requirements, andthebalanceisusedto these resources are allocated first and foremost to Since theCEA’s activities are of national importance, of the expenditure itisused to cover. “Budgeted operating income”, dependingonthenature under “Equipment grants”, “Special reserves” or and third parties Equipment grants received from theState past involvement inaprogramme, orjointoperation of licensee, orto theshare attributable to itthrough its operation insituations inwhich theCEAisfacility of nuclear facilities correspond to thetotal cost of the The provisions associated withthedecommissioning a) Funding for decommissioningof nuclear facilities 2. End-of-cycle commitments in a provision for charges. actually invoiced to clients, which willbeprovided for sheet commitments, withtheexception of those recognised asprovisions, butrecorded asoff-balance and other post-employment commitmentsare not staff commitments, consisting of retirement benefits, In view of theway inwhich theCEAisfinanced, its 1. Staff-related commitments in the Notes ifthey are significant. nor definite at periodend. Theseliabilitiesare mentioned corresponding to anobligation that isneitherlikely No provision ismadefor contingent liabilities, -  costs andlead times of operations at any given time: methods designedto produce the best estimate of the Facility decommissioningcosts are assessedusing facilities b) Estimation of thecost of decommissioningnuclear carried outwork to prioritiseitsoperations. asset willmeet itscashneeds, andwiththisinmindhas Similarly, theCEAassumesthat theliquidityof this provided for undersaidAct. of theAct of 28 June 2006duringthetransition period acceptable asa “coverage” asset asdefined20 in Article of nuclear licensees, that confirmed thisasset was the administrative authority that oversees thecoverage In aletter dated 1December2008, theDGEC, which is -  -  third isbroken parties down into thefollowing categories: The corresponding share of provisions to befinanced by with radioactive materials. up assoonthefacility iscommissionedfor operation Since deterioration isimmediate, theseprovisions are set a facility, iftheCEAisnot considered to bethelicensee. mission. and clean-up to begrouped together within this funding to theCEAfor nuclear facility decommissioning Higher Education” mission, which enables allState provided to Programme 190of the “Research and been established, andsince2016, through funding represented by rolling three-year agreements that have framework agreement. The liquidityof thisclaimis in accordance withtheprovisions of theState-CEA recognised inanaccountentitled “Claim ontheState”, the Fund by third undercontractual parties provisions; take place, inorder to represent theamountsowed to income for theyears inwhich decommissioningwill to depreciation, butinstead are converted into accrued financed by third parties”. Such assets are not subject in theearliest phases, from commissioning onwards, future funding expected from the State isnow an accountentitled “Decommissioning assets to be

-  -  -  work, asdetermined by whether ornot thefollowing of theproject and thelevel of knowledge of remaining level approach that atakes into accountthe difficulty analysis isnot available, theCEAhasadopted amacro- according to thelikelihood of theiroccurrence. Ifsuch consequences interms of cost andtime, weighted of contingencies andrisks, andanestimate of their For ongoing projects, theanalysis isbasedonalist impact of theriskanalyses carried outfor each project. Finally, thecost estimate takes into accountthefinancial -  -  -  up taking thefollowing considerations into account: facilities andwaste recovery andconditioningare set Provisions relating to thedecommissioningof nuclear finally, whendecommissioning work isunderway, margin of error; decommissioning costs withaconstantly decreasing studies are performed to assessclean-up and once adecommissioningproject hasbeenlaunched, equipment, equipmentfor cuttinginsidethecell, etc.); interventions meansavailable (existence of handling and contamination levels, accessibilityandthe and piping, conduits, etc.), together withradiation by function (pits, ponds, fabricated equipment account thedismantlingof standard cellsdefined models are basedonbaselinescenariosthat take into situations from onefacility to another, assessment decommissioned andtheresulting variation in In view of thewidevariety of facilities to be scenarios andelemental cost ratios. radiological conditions, andonmodelsinvolving an inventory of facility equipment, anditsprojected application, jointly developed withAREVA), basedon types of facilities to bedecommissioned(theETEEVAL a technical-economic modelisapplied to thevarious decommissioning. technical costs support of theCEAunitsincharge of The assessment alsotakes into accountashare of the of theresulting waste, includingfinaldisposal. staff, consumables andfacilities, andtheprocessing (operators), managerial staff andradiation protection costs, takinginto accountthelabourof operational staff assessment of expenditure onthebasisof projected site monitoring costs; cost estimates donot take into accountany projected final withdrawal from “production”, which meansthat commencement of operations immediately after the works in place; a radioactive hazard, while keeping any structural site, i.e. completely eliminating any areas presenting involves thetotal, unconditionalclearance of the requirementsparticular to beconsidered, generally decommissioning stage, which, unless there are an inventory of thecosts of bringingthesite to based on current purchase orders andcontracts. the costs at completion are regularly reviewed, committee onthecost of nuclear power; used by EDF following thework of thePEON advisory investment cost, which isconsistent withtheratio basic valuation isperformed, basedon15%of the if thisinitialmodellinghasnot beencompleted, a

-  c) Long-term management of radioactive waste packages coefficient. rate (20%asat 31December2017)andaflat-rate tax calculated onthebasisof thecurrently applicable VAT - inclusionof theremaining VAT owed by theCEA, of project andworks, operation, waste). laboratory, etc.) andexpenditure items (management current projects, according to facility type(reactor, term, analysis isbasedonoperating feedback from For other projects scheduled for themediumandlong as transient, pendingtheoutcomes of riskanalyses. initiation orcompletion. This approach isrecognised preliminary design, detailed design, tendering, work stages have beenreached: internal conceptual designs, - - most likely estimated share andremains unchanged. coefficient for splittingjointcosts corresponds to the CEA inventory at completion. The historic calculation (net) indiscounted value. This provision covers theentire an additional end-of-cycle provision of €858million this new Cigeo baselinecost caused theCEAto set aside end-of-cycle provision hadbeenbased. Promulgation of 2003 economicconditions), onwhich thecorresponding phase, replaces the2005estimate of€14.1 billion(under was generated in theCigeo project preliminary design covering a140-year period from 2016. This cost, which project) at €25billion(under2011economicconditions), long-lived waste (hereinafter referred to asthe “Cigeo” management solutionsfor high-andintermediate-level establishing thecosts relating to long-term the Ministry of Ecology, Development andEnergy, estimate was announcedin mid-January2016by The State initiated areview process andarevised the four-year delay before thefirst packages will be multi-purpose storage facilities, taking into account rate. Provisions have alsobeenmadefor interim planned construction schedules andthediscount the funding calculation coefficient, compliance with level of thisprovision are thecost of theCigeo project, organisation. The key factors that could influencethe waste volume for geological disposal from each to calculation coefficients basedontheprojected project isfunded by EDF, theCEAandAREVA, according that could increase thepublishedestimate. The Cigeo This alsoincludesashare of risks andcontingencies assumption that adeepgeological repository willbe ILW-LL) covered by theAct of 28 June 2006, andthe high- andintermediate-level waste (HLW-LL and financial year, basedontheproduced quantities of geological disposalwere assessedat theendof each Until theendof 2014, future costs related to deep the deep geological repository. of €14.1 billion(under 2003economicconditions)for unit costs by waste category, basedonatotal estimate the working group anduntiltheendof 2014, adopted a reasonable assessmentbasedonthefindings of its reportinthesecondhalf of 2005. The CEAperformed and theCEA, was set upin2004. The group submitted composed of representatives from ANDRA, EDF, AREVA used. Undertheaegisof theDGEC, aworking group, 15 — 15 — Annual financial statements — 16 — 2017 financial report — www.cea.fr -  -  -  -  d) Accounting impact of end-of-cycle obligations - the CEA’s activities. corresponding materials considered to benecessaryto The sameapplies for the cost of recovering the these costs willbemet by Forces theArmed themselves. presented intheoff-balance sheet commitments, as equipment madeavailable to Forces theArmed are not The costs of decommissioningweapons systems and facilities. into accounttheirradiated fuel elements from Defence enabling theend-of-cycle provisions for that year to take The analyses carried outin2012cleared upuncertainty, e) Systems andequipment provided to forces thearmed -  -  -  -  of graphite andradium-bearing waste). level, long-lived waste owned by theCEA(composed removal andanticipated sub-surface disposalof low- lived waste, aswell asexpenses connected withthe CSA), which accept orhave accepted low-level, short- monitoring costs of two disposalfacilities (CSMand The provisions alsoincorporate theshare of the of closure. and packaging standards was underway at thetime In addition, a review of impacts from transport issues delivered to the Cigeo facility (2029instead of 2025). 4.1% (sameas2016). was 1.65% (sameas2016)andthediscountrate was As at 31December2017, theforecast inflation rate rate limit, whichever isthemost prudent. atthe timeof closure orthe statutory lowest discount the discountrate adopted iseitherthemarket rates objective of theEuropean Central Bank; the inflation rate corresponds to the long-term following principles: discounting rate that are estimated according to the flows positioned by maturity, aninflationa rate and a discounted basisby applying to theprojected cash Provisions for end-of-cycle operations are madeon an asset, withacorresponding entryinincome. an additional contribution to theCEA, recognised as entry inexpenses. These obligations are covered by the provisions willbeincreased, withacorresponding for obligations initiated onorafter 1 January 2010, corresponding increase intheClaimonState; process, theprovisions willbeincreased, witha Agreement, and subject to arevised estimate validation covered by Amendment1to theState/CEA Framework for obligations initiated before 1 January 2010, the following impact ontheaccounts: estimates, discountrate andwork schedules have Changes inassumptions withregard to changes in in “Financial income”. the ClaimonState, withacorresponding entry andtheStateparties isrecorded asanaddition to relatingthe part to financing to be received from third expenditure” entryasacorresponding entry, while for end-of-cycle operations, withthe “Financial year onthebalancesheet asincreased provisions the effects of accretion over timeare recognised each of the resources that willberequired to fulfil itscurrent the CEA’s best estimates at thetimeof accountclosure The valuations usedfor theend-of-cycle provisions are Statements. liabilities, asstated intheNotestoCEAFinancial risks relatingtoaccountclosureand contingent Summary of themainsourcesof uncertainty ormaterial each of them. due to theresearch activities which took placeat cleaned upare very old andhave specific requirements fact that theCEAfacilities beingdecommissionedand Such are risks anduncertainties chiefly due to the financial statements and stated below. and uncertainties, asmentionedintheNotes to the The CEAnonetheless remains exposed to risks certain enhancing therobust nature of theprovisions. 31 December2017have materially contributed to The supplementary provisions recognised asat to close theaccounts f) Mainsources of uncertainty andjudgement required .  -  .  - changes inthedefinition of final state: .  -  .  -  causes of which are asfollows: duration of operations (several decades), themain are Such uncertainties inherent to theplanned mentioned intheNotes to the FinancialStatements. significant uncosted that need uncertainties to be The end-of-cycle cost estimate thusincludes be totally undertheCEA’s control. uncertain future events occur, events which willnot their existence will berecognised only ifoneormore (contingent liabilities)are only potential by nature, and a reliable estimate of theircost. Otherobligations at thetimeof closure, theCEAisunable to make disbursements, butgiven theinformation available Moreover, some such obligations are likely to lead to obligations (includingwaste recovery andconditioning). and future facility decommissioningandclean-up waste iscurrently basedontheFrench government’s geological disposalof high- andintermediate-level the estimate of future costs related to thedeep requirements from government andsafety authorities ; decommissioning may change depending on the targeted final state of facilities andsites requiring scheduling andoperations; authorities may change, entailingconsequencesfor requirements established by thegovernment andsafety the safety, securityandenvironmental protection soilremediation required); associated sites progresses thelevel (inparticular of have to beadapted asknowledge of thefacilities and decommissioning. The decommissioningscenarios which willonly becomepossible at later stages of radiological inventory andcharacterisation operations older facilities sometimes requires supplementing with detailed knowledge of thephysical conditionof certain disposal costs orwaste conditioningspecifications: changes intheavailability of disposalfacilities, safety requirements andregulatory changes: inadequate knowledge of theinitialstate: .  .  - financial resource planning: .  .  .  .  comprising: Nuclear Safety Authority (ASN) itsgeneral proposal, On 16December2016, theCEAsentFrench -  g) Outlook .  .  .  -  materials andwaste held by theCEA; an updated management strategy for theradioactive decommissioning programmes; years, withclear prioritiesandconsolidated, binding the decommissioningstrategy for thenext fifteen much earlierthanplannedintheinitialscenarios. incur costs for clean-up anddecommissioningwork early shutdown facilities of orprojects certain could conditioning programmes; of-cycle scenarios, waste inparticular recovery and dates, thiswould have asignificantimpact onend- the disposalfacilities were unavailable at theplanned costs for allend-of-cycle operations. For example, if delay ononeproject could cause delays andadditional since alltheproject calendars are closely linked, any the finalcost of end-of-cycle operations; waste and facility clean-up technologies could affect potential developments inwaste processing and fixedcosts which have required provisions; for somelower-priority projects, leading to additional made inthiscontext have led to scheduling delays examination withtheState. However, thedecisions risk, andpost-2022 assumptions are currently under flows from theState up to 2022has reduced this in late 2017, which isconsistent withbudgeted financial the establishment of amid-to-long-term (10-year) plan included inthefinancialscenarios; corresponds to disbursement schedules that are the schedule for decommissioningoperations in the ANDRALLW-LL andCigeo disposalfacilities. the scopeandfuture waste management conditions such constraints; The CEA may have to revise itsown scenariosdueto waste disposalfacilities to receive waste packages. transport capabilitiesandthephysical capacityof the their individualscenarioswiththefinancialneeds, various waste producers, inorder to coordinate ongoing coordination andnegotiation between the end-of-cycle operations at nuclear facilities require cost and scheduling estimates; producers, andany potential future changes inthe acceptability of packages, thecost splitbetween remainRisks and uncertainties the concerning being studied withregard to transport andlogistics. and contingencies. Additional costings are currently design. This estimate includesaprovision for risks from mid-January2016, basedonpreliminary costing of€25 billion(under2011economicconditions) decommissioning operations. the prioritiesandgeneral strategy for clean-up and authorities, ajointreview was performed to redefine Following theletter of 25 July 2015from thesafety provisions, inparticular: technical difficultiesnot covered by contingency totherights to paidleave registered by thestaff inatime In 2012, theCEAextended thisaccountingpractice in the accountsfrom financial year 2006onwards. holiday accrued butnot yet due, have beenrecognised respect to paidholiday duebutnot yet taken, andpaid The commitmentsof theCEAtowards itsstaff with l) Tax andstaff-related liabilities revised estimates in2018. remainuncertainties however, which could lead to in order to validate theproposal. Significantrisks and with thesafety authorities andtheFrench government, Further discussionswillcontinuein2018onthisbasis .  .  as follows: Expenditure duringthefinancial year breaks down Expenditure for- thefinancial Note 5 year financing of operating expenditure for the year. subsidy for thefinancial year allocated to the This item corresponds to thebalanceof theState Budgeted operatingincome - Note 4 in connection withitsprograms orservices. for which invoices are issuedby theCEAto third parties Operating income represents research, work andservices Operating income - Note 3 B - off inlieuaccount(CET-PERCO). TOTAL • Otherexpenses • Rentals • •  • Internships • Transport of property andstaff • Temporary andsecondedstaff •  • Travel –Missions • General sub-contracting • Maintenance andrepair External services: materials andsupplies Purchases of non-inventory Sub-contracting purchases Consumption of goods ininventory of the Cigeo project. updated decommissioningstrategy anddevelopment management operations, taking into accountthe next 15years for decommissioningandwaste a review of theannualfunding required over the organised; devoting to theseprojects andhow they are being an updated presentation of resources theCEAis Postal charges – Telecommunications documentation General andtechnical and fees Remuneration of intermediaries (in millionsof euros) COMMENTS ON THE ACCOUNTS

2,095 (in millions of euros) euros) of millions (in 2017

332 709 305 306 97 57 36 17 26 34 85 79 6 6 2,025 2016 325 664 313 311 79 77 36 16 24 39 76 51 7 7 17 — 17 — Annual financial statements — 18 — 2017 financial report — www.cea.fr Allocations andwrite-back of depreciations andprovisions break down asfollows: Note 8-Allocationsandwrite-back of depreciations andprovisions Staff costs represent thefollowing: Note 7-Staff costs Taxes, dutiesandsimilarpayments break down asfollows: Note 6- Taxes, dutiesandsimilar payments “Equipment grants received from the State” and This corresponds to thededuction applied to and contributions from third parties Note 9-Write-back of equipmentgrants no furtheruseisplanned(€746million). treatment of waste andtheprocessing of fuel for which related to thedecommissioningof nuclear facilities, the Write-backs of provisions €805millionin2017ismainly €28 million. assets amounted to €456millionin2017, down by Allocations to depreciation of intangible andtangible TOTAL Other taxes Tax onbasicnuclear installations (INBs) Tax onwages Non-recoverable VAT ongoods andservices TOTAL • Write-backs • Amountprovisioned Provisions pourrisqueset charges • Write-backs • Amountprovisioned Provisions for depreciation of assets • Write-backs • Allocations Depreciation TOTAL Social securitycontributions Wages andsalaries Not applicable for 2017. joint operations Note 10-Share of thenetresult from for impairment of fixed assets (-€11 million). after takinginto accountthewrite-back of provisions the year ontangible andintangible assets (€456million) finance theallocations to depreciations recognized for Write-backs for 2017(€453million)were usedto financed. depending ontheterm orservicelife of theassets “Equipment grants received from third parties”, 1,508 1,043 - 456 2017 2017 2017 - 13 - 23 223 313 465 781 53 58 60 52 24 (in millions of euros) euros) of millions (in euros) of millions (in (in millions of euros) euros) of millions (in - 1,481 1,025 - 484 2016 2016 2016 - 75 - 26 227 237 456 766 51 60 60 56 56 - securities booked asunrealised losses at theendof and €4millionfor of theimpairment investment for end-of-cycle operations (inflation andaccretion), cover theimpact of accretion provisions concerning million) mainly break down asfollows: €480 million to Allocations to provisions for financial year 2017(€484 This breaks down asfollows: A financial loss of €11million was recognised in2017, compared withafinancial loss of€14millionin2016. Note 11-Financialitems million in2016), chiefly recognises thewrite-offa of million(comparedin theamountof €244 with€14 The extraordinary expenses for management operations, corresponds to thesale of AREVA shares to theState. The €646millioninproceeds from thedisposalof assets of assets retired duringthefinancial year. State” (€42million)corresponds to thenet bookvalue “Write-backs onequipmentgrants received from the An extraordinary loss of €452millionwas recognised in2017andbreaks down asfollows: Note 12-Extraordinary items million are mainly intended to cover theseprovisions The write-backs of provisions intheamountof €241 for inflation andaccretion. decommissioning andfor waste treatment , discounted financial incomeincludesallprovisions for facility The revaluation of “Decommissioning provisions” under the financial year. EXTRAORDINARY EXPENSES Sundry extraordinary expenses Allocations to depreciation andprovisions Retirement of fixed assets Management operations EXTRAORDINARY INCOME Other extraordinary income Write-back of provisions andexpense transfers Proceeds from thedisposalof assets Write-backs onequipmentgrants received from theState FINANCIAL EXPENSES Other financial expenditure Allocations to provisions Net expenses ondisposalof investment securities Interest onborrowing anddebt FINANCIAL INCOME Write-back ofprovisions impairment Other financialincome Write-backs of provisions Revaluation of “Provisions for decommissioning” Investment incomeandinterest onreceivables Dividends

against theimpact of changes to payment schedules of AREVA shares. million in2016), including €872 millionfor theretirement the financial year, intheamount of €914million (€60 book value of assets sold orotherwise disposed of over “Retirement of fixed assets” corresponds to thenet cash advancegranted in2016. claim ontheState (€219) following repayment of the State.onthe end-of-cycle obligations anditsimpact ontheclaim stems from theimpact of thedrop indiscountrate for The highlevel of financial expenses andincome for 2016 in CEAInvestissement. provisionsimpairment previously set asidefor securities of securitiesmainly thewrite-back concerns of The write-back of theprovision for impairment securities (€4million). back of theprovision for of theimpairment investment and of discounting(€237million), aswell asthewrite- 1,159 2017 2017 744 733 707 244 484 260 241 476 914 648 14 42 (in millions of euros) euros) of millions (in (en millions d’euros) millions (en 9 2 3 2 1 3 - - - 1,040 1,126 1,112 2016 2016 945 75 81 85 82 67 60 14 12 60 1 4 6 8 1 8 1 - - 19 — 19 — Annual financial statements — 20 — 2017 financial report — www.cea.fr 1 are as follows: Movements inintangible andtangible assets, together withthecorresponding depreciations andprovisions, Note 13-Intangible andtangible assets has improved, theprovision for of impairment Furthermore, asthenet of worth CEAInvestissement • CEAalsoacquired holding in a 20.3% Technicatome. organisation. any AREVA SA shares andhasastake inthe new ORANO Following thesetransactions, theCEAnolonger owns •  •  by which thefollowing transactions were recorded: in accordance withtheDecree of 16August 2017, This change isdueto thetransfers of AREVA SA shares compared with2016. there was a€482milliondrop in With anet valueof €496millionasat 31December2017, This breaks down asfollows: Note 15-Financialassets in CABRI facility clean-up costs. This item (€4millionasat 31December2017)corresponds to future financing expected from IRSN for theirshare assets– Note 14-Decommissioning Third parties TOTAL and advances Fixed assets underconstruction tangible assets Specific installations and other Buildings Land Intangible assets GROSS VALUE TOTAL Other long-term investments Loans Receivables from equityinterests Equity securities TOTAL tangible assets Specific installations and other Buildings Land Intangible assets DEPRECIATIONS/PROVISIONS Allocation of work in process to completed fixed assets, adjustments and transfers between accounts. between transfers and adjustments assets, fixed completed to process in work of Allocation ORANO 12,774,283 shares. acquisition through theState of a5.4%stake in a 25.2% stake intheshare capital; sale of AREVA SA shares to theState, representing

equity securities 31/12/2016 31/12/2016 Balance Balance 14 693 5,041 3,297 8,027 2,861 1,916 7,313 as at as at as as 116 240 195 313

and provisions Allocations to depreciation Acquisitions production with 2016. €3 million at year-end 2017, remained stable compared “Other long-term investments”, •  •  This breaks down asfollows: 31 December 2017, down €1millionfrom 2016. “Loans” the EIG GANIL. results from theincrease inreceivables owed by to €14millionasat 31December2017. This variation (EIGs) increased by €1million, from €13millionin2016 Receivables from equityinterests investment securities(€6million)was fully written back. €1 million, also down slightly from 2016. 2016; full discharge loans to collection authorities: Loans to personnel: €3million, down slightly from 2017 2017 and 836 464 802 333 110 16 26 had a net balance of €4 million as at hadanet balance of €4millionasat 5 3 5 -

provisions and Write-back of Retirements retirements 2017 2017 165 163 143 147 16 15 1 5 2 - - transactions transactions 31/12/2017 in the amount of intheamountof -2 2 2017 and joint ventures andjointventures Other Other - 382 2017 - - - 16 543 234 119 522 11 14 (1) 2 3 4 -

(in millions of euros) euros) of millions (in (in millions of euros) euros) of millions (in (in millions of euros) euros) of millions (in 31/12/2016 31/12/2017 31/12/2017 Balance Balance 15 348 2,971 5,225 2,013 1,032 1,010 3,712 7,614 8,143 as at as at 255 197 325 121 13 4 5

This breaks down asfollows: Note 16-Inventory andwork-in-progress Finally, theclaimonState was reduced by carried forward. on the State. Atotal of €2,725 millionwas therefore a corresponding entryto track thevariation intheclaim that tracked changes intheAREVA SA share price, with liabilities adjustment accountonthebalancesheet that there isnolonger aneedfor theaccrued assets/ fund asat 31December2017. This situation shows any shares inAREVA SA intheassets of thededicated Following thisrepayment, theCEAnolonger owned Fund as anextraordinary expense. entry isrecorded ontheincomestatement of theCivil the civilfund to honourthispayment. The corresponding corresponding to theshares contributed by theCEAto write-off of theclaimonState (€219million), in AREVA SA. Asaresult, theCEArecorded apartial (including €1millionininterest) intheform of shares by the State in2016, intheamountof €377million In 2017, theCEArepaid thecashadvancegranted requirements of theAct of 26 July 2006. for end-of-cycle obligations inaccordance withthe of theclaimandguaranteeing coverage of provisions CEA’s long-term nuclear costs, ensuringtheliquidity amendment inlate 2011, thefinancing concerning agreement between theState andCEA, andits established withthesignature of aframework The method for valuingtheclaimonState was Note 18-Claims ontheState At theendof thefinancial year thesituation isas follows: Note 17-Age of receivables TOTAL Semi-finished andfinished goods Work-in-progress andgoods-in-process Raw materials andother supplies TOTAL Receivables oncurrent assets Receivables onnon-current assets •  • variation in “sundry debtors” (- €9million), •  •  •  •  mainly to: €753 millionasat 31December2017, corresponding €466 million asat 31December2016, to anet valueof “Sundry receivables” rose by €287million, upfrom receivables Note 19-Sundry terms for paying off CEA’s debt to ORANOCycle. discussions withtheState the andORANOconcerning in theCEA2017accountsresulting from theongoing (formerly Areva NC). This istheonly impact included capital owed for theCEA’s debt to ORANOCycle Programme 732)to reimburse of theoutstanding part an additional grant of €100million(from theCAS PFE of thegeneral budget) inaddition to thepayment of decommissioning operations (from Programme 190 annual grant allotted by theState to financeclean-up/ €740 million, which istheamountof thepayment of the (+€1 million). the State (+264million). funding” (+€25million), 2016, in 2017, upby €6million, from €208asat 31December variation inadvances oncurrent accounts variation inpayment credits to bereceived from variation in “Pending invoices” (+€7million), variation in “Grants to bereceived from European grants to bereceived from third parties, €214million Maturity less 31/12/2017 than 1year 2,293 6,279 2,291 3,403 1,233 1,643 2 (in millions of euros) euros) of millions (in euros) of millions (in Maturity more 31/12/2016 than 1year 16,637 16,618 6,257 3,455 1,225 1,577 19 21 — 21 — Annual financial statements — 22 2017 financial report — www.cea.fr The portfolio to cover end-of-cycle operations breaks down asfollows: It breaks down asfollows: 31 December 2017. Bankaccounts withacredit balanceare booked under “Financial debt”. This item states thesituation of allbankaccountsandinvestments, givingagross valueof €574millionasat Note 20-Cashbalances andinvestment securities TOTAL Liquid assets andinvestments committed to end-of-cycle operations Liquid assets allocated to thenational loan Liquid assets andinvestments allocated to current activities TOTAL • Other • World • Eurozone By geographical origin: TOTAL • Bondandcashfunds • Stocks andshares funds Market value: have beenpaidout. decommissioning expenses after annual grants which are still active, andcashfunds usedto cover of venture capitalunitfunds taken outat thestart respectively. These portfolios are now only madeup the two Funds, in2011(Defence) and2012(Civil) terms were shortenedwiththeimminentdry-upof sufficient payments into the funds, theinvestment with along-term approach. Dueto alack of corresponding portfolios were initially managed over aperiodupto 2040andbeyond, and the expenditure schedule, which islargely spread Fund were originally formed based ontheplanned The Dedicated CivilFund andDedicated Defence monitored separately. Fund andNew Defence Facilities Fund), which are Fund) andafter 1 January 2010(New CivilFacilities 2009 (Dedicated CivilFund andDedicated Defence into facilities commissionedbefore 31December sector andtwo for thedefence sector, furthersplit There are four Dedicated Funds, two for thecivil OBJECTIVE OF THE DEDICATED PORTFOLIO investment linesintheportfolio. as at 31/12 of thefinancial year for each of the year-end, basedonthenet asset value (NAV) The four dedicated Funds are valuated at to adapt to market contexts. to manoeuvre of upto 20%inshares, inorder 45% interest-bearing instruments), withroom a strategic investment allocation (55%shares / managed underavery long-term approach with facilities are commissioned(from 2010)andare that willonly bemadeseveral decadesafter the These portfolios are dedicated to expenditures bond funds, and1% money market funds. they were madeupof 55%equityfunds, 44% which isoutsourced. Asat 31December2017, and other similarfunds, themanagement of Facilities portfolios are invested inunittrusts The New CivilFacilities andNew Defence 31/12/2017 31/12/2017

191 574 191 108 191 184 199 150 83 41 - (in millions of euros) euros) of millions (in (in millions of euros) euros) of millions (in 31/12/2016 31/12/2016 1,175 176 176 176 284 715 137 96 80 39 - (1) •  • • •  • • •  • New CivilFacilities ...... 11 • •  • to -€998 million. This breaks down asfollows: The accumulated balanceof thefinancial years, after allocation of the2017balance (-€515 million), comes Note 22-Accumulated balance of thefinancial years The «SpecialReserves» break down asfollows: Note 21-Specialreserves CEA accountsat itshistorical purchase value, andits book valueof theAREVA shareholding, recorded inthe This imbalanceisdueto thedifference between the imbalance from whenitwas set up. management of thecivil fund, which hadafinancial This negative balancehasmainly arisen from the The difference between 2016 and2017breaks down asfollows: TOTAL • Equipment grants received from theState Special reserves received from theState TOTAL I2EN AFNI DDCG DSND ITER Supplementary budgets New defence facilities fund Defence Fund New civilfacilities fund Civil Fund General Budget        After clearing Assets/Liabilities accruals. accruals. Assets/Liabilities clearing After I2EN ...... 1 DSND ...... 1 New Defence Facilities ...... - 12 Civil Fund ...... -730 AFNI ...... - AFNI DDCG ...... - ITER ...... 1 Supplementary budgets ...... 1 Defence Fund ...... 72 General Budget 343 ...... - IRT ...... - ...... Situation asat 31/12/2016 998 - - 3,264 - 3208

(1) (1) - 10 - 47 Amount asat 99 10 31/12/2016 1 2 1 - - - continuation of theorganisation asagoing concern. This situation isnot expected to jeopardize the with theOrder of 16August 2017. when our AREVA shares were sold in2017, inaccordance estimated present value, andwas mostly resorbed Assets/Liabilities 6,302 7,677 Clearance of accruals 2 725 2,751 - 26 Allocation ------2017 690 31

Balance rt back Write - 515 - 217 - 296 2017 -1 - 2 2017 1 ------430

-

(in millions of euros) euros) of millions (in (in millions of euros) euros) of millions (in Situation asat Amount asat 31/12/2017 31/12/2017 6,562 - 998 - 730 - 343 7,707 - 12 72 11 1 2 1 - - - 23 — 23

— Annual financial statements — 24 — 2017 financial report — www.cea.fr processing fuel withnofurtheruseaccountfor millionasat asumof31December2017, €16,445 i.e. 99%of thetotal In theprovisions for liabilitiesand expenses, theprovisions associated withdecommissioning, treating waste and (2) (1) Provisions for liabilitiesandexpenses underwent thefollowing changes duringthefinancial year: Note 23-Provisions for liabilitiesandexpenses the scope of theAct). resulting inthevaluesof €15,293millionand€17,774 millionrespectively for allprovisions (insideandoutside changed thevalueof theprovisions for end-of-cycle operations by -€1,136 millionor+€1,345 million respectively, As at 31December 2017, theapplication of adiscountrate higherorlower 0.5% thantherate usedwould have amount of theseprovisions. These break down asfollows: Situation asat 31/12/2017 in scope Changes inestimates andchanges Write-back of 2016works coefficient Variation inthe VAT flat rate tax Impact of changes inforecast rates Impact of inflation andaccretion Situation asat 01/01/2017 TOTAL Other Provision for recovery of sources Provision for servicemedals Provision for retirement Provision for waste normal treatment Provision for CIGEO adjustment Provision for disputes the financing of facilities Decommissioning provision allocated to for which nofurtheruseisplanned treatment of waste andprocessing of fuels Provision for decommissioningand Transactions affecting the “Claims on State” entry: €3,401 million (allocation: €3,417 million) (write-back:€16 million) (write-back:€16 million) €3,417 (allocation: million €3,401 provisions: entry: unused of State” on write-back “Claims the which Of affecting Transactions • extraordinary provisions: €0 million €0 provisions: million, €0.6 extraordinary • provisions: operational •

16,445 13,547 Amount asat 3,181 - 745 Total 31/12/2016 - 16 478 - 13,698 13,531 Civil fund 34 25 16 60 22 and CEA 3 7 - 5,928 1,645 7,436 - 346 209 - - Allocations Facilities New Civil 3,898 Fund 3,909 2017 - 6 25 29 11 1 1 - - (1) ------

Defence Write-backs 8,830 1,518 7,442 Fund - 393 263 - -

2017 1,040 1,000 Facilities Defence 32 (2) 2 4 1 1 - - - Fund New 73 70 3 (in millions of euros) euros) of millions (in (in millions of euros) euros) of millions (in - - - Amount asat party fundsparty 31/12/2017 State/third 16,567 16,429 Excl. - 16 81 78 30 24 16 39 21 17 1 7 2 - - -

for nuclear costs, are broken down asfollows: of fuel for which nofuture useisplanned, withinthescopeof theDecree of 23February 2007onsecuringfunding As at 31December2017and2016, theprovisions for facilities decommissioning, waste treatment andprocessing At theendof thefinancial year thesituation isas follows: Note 24-Age of payables TOTAL PROVISIONS AS AT 31DECEMBER Non-deductible TOTAL PROVISIONS FOR WITHIN/OUTSIDE SCOPEOF ACT TOTAL PROVISIONS FOR OUTSIDE SCOPEOF ACT Non-deductible Provisions for expenses outsidescopeof theact ( TOTAL PROVISIONS WITHINSCOPEOF ACT DATED 28 JUNE 2006 Non-deductible NON-DEDUCTIBLE VATCHARGES TOTAL PROVISIONS WITHINSCOPEOF ACT EXCLUDING SUB-TOTAL 5.1 Expensesrelated repository monitoring inpost-closure period 5. POST REPOSITORY CLOSURE MONITORING EXPENSES SUB-TOTAL 4.2 Long-term management of waste packages 4.1 CEAmanagement of waste packages 4. RADIOACTIVE WASTE PACKAGE MANAGEMENT EXPENSES SUB-TOTAL at aCEAfacility 3.1 Operations for recovery andconditioningof waste stored 3. EXPENSES FOR RECOVERY ANDCONDITIONINGOF LEGACY WASTE SUB-TOTAL 2.2 Otherfuel exist orare underconstruction 2.1 Waste which canberecycled inindustrial facilities which already 2. FUEL MANAGEMENT EXPENSES SUB-TOTAL 1.5. Third-party nuclear licensee 1.1 to 1.4 CEAshare for facilities where thelicenseeisathird party 1.1 to 1.4 Facilities where theCEAisnuclear licensee 1. DECOMMISSIONING EXPENSES EXPENSE CATEGORY Financial debt Adjustment account Debts to third parties VAT VAT VAT withinscopeof act within/outside scopeof act outsidescopeof act ICPE , etc.) etc.) ,

total cost 21,447 21,589 21,275 21,135 9,838 3,206 3,206 9,541 5,452 Gross value 1,331 1,114 6,176 2016 314 583 217 269 142 312 140 583 724 28 3

total cost 26,590 26,439 26,260 10,511 11,200 26,111 1,214 5,320 5,320 5,466 1,462 2 075 7,540 2017 330 588 249 287 402 151 328 149 588 Maturity less than 1year 2

total cost 1,776 Discounted value 13,531 13,453 13,278 13,202 47 96 2,855 2,424 2,424 6,871 2,315 7,132 2016 712 253 188 524 234 251 540 79 27 78 76 79 (in millions of euros) euros) of millions (in euros) of millions (in Maturity more 2

than 1year total cost 16,429 16,348 16,090 16,170 8,026 3,596 3,582 3,582 1,005 1,435 2,162 7,483 2017 808 260 213 594 241 302 258 79 36 32 81 79 79 2

25 — 25

— Annual financial statements — 26 — 2017 financial report — www.cea.fr Note 26 - Off-balance sheet commitments as at 31 December 2017 Note 26-Off-balance2017 sheetcommitments asat31December Note 25-Cashprovided by operations taking into accounttherate change trend: The resulting rate isrounded upordown by 25bp, enterprises. rated corporate bondsinindustrial andcommercial average riskpremium isthenadded, basedonhighly- period asthestaff-related liabilitiesinquestion. An on government borrowing rates covering thesame market conditionsasat theendof November, based for long-term inflation. on adiscounted basisat arate of 3%, of which 1.5% The commitmentsfor staff benefits have beenvalued (1) TOTAL Income tax Budgeted operating income Collectable extraordinary income Extraordinary expenses payable Collectable financialincome Financial expenses payable Share of thenet result from jointoperations Gross operating surplus Other commitments Foreign exchange hedging Staff benefits COMMITMENTS GIVEN Various bankguarantees Guarantees received from banks to cover holdbacks for suppliers COMMITMENTS RECEIVED Of which provisioned commitments - €30 million. million. €30 - commitments provisioned which Of Pensioners’ healthexpenses scheme • Early retirement scheme • Retirement benefits Retirement expenses: (1) •  •  •  This decrease isdueto: compared to €951millionat 31December2016). millionasat 31December2017,with 2016(€944 These commitmentswere down by €7millioncompared • for theEurozone, theresulting rate is1.50%. and experience variance...... +€23million year/ benefits paidout...... -€31million impact of population movements, scenariochanges impact of thechange indiscountrate...... - €million pension rights acquired for thefinancial (in millions of euros) euros) of millions (in (in millions of euros) euros) of millions (in - 2,993 - 1,939 - 245 - 818 944 103 126 406 412 - 2 21 2 3 4 7 - -

against thetaxauthorities. Further to thisaction, thetax this reasoning, bringingavicariousliabilityaction At theendof the1990s, somelocal authorities disputed not income-producing. land isearmarked for ageneral interest serviceandis government property register (TGPE) orbecause the because someof itssites are eitherlisted ontheFrench The CEAconsiders that itisnot liable for property tax by jurisprudence. comply withfor-profit/not-for-profit criteria established toconcern national defence, anditscivilactivities tax) asitsdefence-related activities are of direct Economic Contribution(formerly known asbusiness The CEAconsiders that itisnot liable for the Territorial direct local taxation. These risksdisputes concern arisinginconnection with with accountingregulations. are considered ascontingent liabilitiesinaccordance produce areliable valuation of theliability. Assuch, they obligation and/or because ithasnot beenpossible to no provision hasbeenmadefor want of adefinite The following section describesany risks for which contingent liabilities Note 27-Information ondisputesand The 2017auditing operations focused onthe 2016 principles defined following the2012 audit. the taxbasesresulting from theapplication of the 2016 that itwould initiate anew audit inorder to audit The DVNI informed theCEAinaletter dated 6December are not subject to corporate property taxcontributions. buildings. However, itwas that confirmed thesesites a levy of property taxondeveloped property for these Valduc Military Applications Divisionsites givingriseto income-generating buildings at theIle-de-France and After three years of auditing, theDVNI identified Saclay andGrenoble civilcentres. sites andanupdate of taxation requirements for the CEA, with furtherwork onMilitaryApplications Division In 2012, theDVNI initiated anew general audit of the property and/or corporate property tax contributions. were deemedto besubject to property taxondeveloped income-generating buildings usedinfor-profit activities at theSaclay andGrenoble sites. Underthismethod, activities subject to local taxes, which were identified sent theCEAanadjustment proposal to sectorise national andinternational (DVNI) audit department After two years of audits at allcivilsites, theFrench the annual taxonoffices intheÎle-de-France region. civil centres, covering businesstax, property taxand In 2009, anaudit procedure was launched at several tax, resulting inreimbursements andpenaltypayments. business taxand, since2010, from corporate property centres. Decisionsawarding full relief from the former for both MilitaryApplications Divisioncentres andcivil thatdecisions confirm theCEA’s positionisjustified, exemption from thesetaxcontributions. Priorcourt In each case, theCEAbrought claimsto obtain total authorities issuedtaxrolls. are detailed inParagraph 1.11.2. decommissioningliabilities concerning Uncertainties letters.information DVNI gave notice inthefour abovementioned 751”“type determined withrespect to thetaxbasesof which the The provisions recorded asat 31/12/2017 were its remarks to thetaxauthorities. responses dated 20December2017, theCEAsubmitted was deemedto besubject to property taxes. Infour property taxcontributions, unlike the Valduc site, which deemed to besubject to property taxes andcorporate de-France MilitaryApplications Divisioncentre was than that agreed following the2012audit. The Ile- assessment was basedonadifferent taxation method 751”“type information letters. For civilcentres, the On 4December2017, theDVNI senttheCEAfour Applications Divisionsites and Valduc. were audited: Saclay, Grenoble, Ile-de-France Military property taxcontributions. The following centres property taxes andthe2014, 2015and2016corporate perspective, based onaset of intentions anddecisions The policy isimplemented within along-term Relations Division, andthe other divisions concerned. Financial Division, the HumanResources andLabour various specificareas are approved as relevant by the CEA’s SeniorManagement team. Specificprinciples for by theInsurance andapproved Department by the management level. The general principles are proposed policy oninsurance isdetermined onthebasisof in theirmanagement decisionsandactions. The atconcerned alllevels of management to guide them form aninsurance charter that isdistributed to those documents (memoranda andcirculars) that together procedures. These have beenset outinaseriesof of CEA’s policy oninsurance anditsimplementation This dialogue hasled to aconsensusonthe purposes divisions. andthevarious operationalDepartment andfunctional from regular communication between theInsurance clear, consistent, andcoordinated principles that result The CEA’s policy insurance concerning isbuiltonaset of Policy oninsurance arenow taxable. financial year, CEA’s from earnings equitysecurities established by thetaxauthorities from the2006 In accordance withtheactivity sectorisation principle BOI-IS-CHAMP-50-10-20170405 dated 5April2017). regime, thelatest beingintheOfficial Tax Bulletin The taxauthorities have madecommentsonthistax derived from publicresearch activities. organisations from paying corporate taxonincome 18 April2006). exemptsThis Article publicresearch into theCodeby theResearch Programming Act of 207-1-9° of theFrench General Tax Code(introduced The CEA’s corporate taxregime issubject to Article Situation corporate concerning tax Note 28-Otherinformation

27 — 27

— Annual financial statements — 28 — 2017 financial report — www.cea.fr and employees. of damage to third andto parties safeguard itsassets its desire to protect itself against theconsequences coverage for unpredictable risks to insurers reflects The CEA’s decisionto transfer thefinancialburden of expenses (payment of insurance premiums). might compromise itsbudget into fixed operating the unpredictable costs of potential incidentsthat insurance hasthefinancialadvantage of converting In addition to thepreventive aspect of thisapproach, has decidedto transfer someof itsrisks to insurers. the financial impact potential of certain events, theCEA contractual liability. Furthermore, inorder to reduce to itscontractors. This applies only to risks relating to To limitrisks, whenever possible, theCEAtransfers risks management indicators. insurance programmes, andmonitoring efficiency via sectors. This entailsidentifyingrisks, managing has becomestandard practice inallhigh-risk of ageneralpart riskmanagement approach, which The CEA’s policy oninsurance isimplemented as buildings andregulated facilities, andfire inspections). objectives (e.g. site inspections to monitor thestate of carry outactions to helpachieve thepolicy’s overarching that determine, coordinate andmanage resources, and In addition, to manage risks andfor financial covered by collision andcomprehensive insurance. it owns orleases. Many of these vehicles are also February 1958, theCEAinsures allthevehicles which insurance obligations established by theAct of 24 To comply withmotor vehicle third-party liability 3) Motor vehicle third-party liability its activities, includingcontractual commitments. relatingparties to actions committed inperforming material damage andintangible losses caused to third consequences of any liabilityfor physical injury, programme that covers itagainst thefinancial The CEAiscovered by athird-party liabilityinsurance 2) Conventional third-party liability covered by theParis Convention. substances under itsresponsibility which are not a serviceprovider, orfor thetransportof radioactive holder anduserof ionisingradiation sources, oras The CEAalsohasinsurance covering itsliabilityasa to cover third-party liabilityinthenuclearfield. energy December 2015granting theCEAState Guarantee in France’s OfficialGazette of theOrder dated 24 from theState Guarantee*** following publication the French Environmental Code. The CEAnow benefits obligations L. underArticles 597-1andfollowing of Convention of 29 July 1960onnuclearandthe energy nuclear third-party liabilityinaccordance withtheParis liability,party theCEAhastaken outcoverage for In light of thespecialregime governing nuclear third- 1) Nuclear third-party liability a) Third-party liabilityinsurance measures inplaceat itscentres, particularlyrelated In view of thesignificantsecurityand preventive b) CEAasset insurance retention mechanism istax-exempt. system significantly reduces insurance taxes asthe automatically reimbursed theremaining balance. This paid at thebeginningof thefinancial year, theCEAis claims remains below theamountof thereserve the reserve hasbeenusedup. Iftheannualcost of conditions asifthevehicles were fully insured, until amount first to pay out for claimsunderthesame paid for the “retention” insurance. Itusesthisreserve involving itsvehicles. The insurer manages theamount liabilityanddamageparty costs arisingfrom accidents mechanism allows theCEAto retain of thethird part applies beyond anannual “retention” deductible. This fleet of vehicles (whether owned or leased) generally mechanism. The insurance policy covering theCEA’s purposes, theCEAhasimplemented a “retention” The CEAhascomprehensive industrial insurance 2)  defects insurance covering civil engineeringstructures. structural property damage andten-year inherent occurring after acceptance, CEAhasinsurance covering For operations over €2million, to cover damage renovation work or whenthere are adjacentbuildings. caused to existing facilities, for instance during of theassets. Italsohasoptional coverage for damage work duringtheconstruction periodupto acceptance affecting construction, civilengineeringorprocess This typeof policy covers accidentalproperty damage amount of €2million. work, for allconstruction operations exceeding an insurance onbehalf inthe of allthoseparticipating It hastherefore taken outcontractor’s allrisks resources willbefound quickly. that intheeventcertainty of anaccident, financial nuclear activities. This coverage gives theCEA regardless of whether ornot such work concerns construction orcivilengineeringworks are covered, The CEAensures that allrisks associated with 1) decommissioning work. kind inoperating phase, anddamage resulting from from theconstruction of astructure, damage of any between damage caused to itsassets resulting The CEA’s policy oninsurance makes adistinction of itsinsurance programmes for property damage. costs too high, theCEAoptimises thefinancialbenefit of theriskssome orpart whenitconsiders insurance risks for coverage partial withinsurers. By retaining and facilities. Instead, ithasinsured someidentified not to systematically insure allitsequipment, buildings with nuclear safety requirements, theCEAhasopted  operating phase construction phase Damage caused to assets during Property damage caused during the decommissioning decree for civilfacilities, oran prior to publication intheOfficialGazette of the facility out undertheoperating safety reference framework, all clean-up anddecommissioningoperations carried The comprehensive industrial insurance also covers with respect to theidentified risks. recommendations for improving thestate of facilities engineers from theinsurance companies issue compliance withcurrent standards. Riskprevention and assess thefire detection systems, their particularly inspections are to identifythemainpotential risks are conducted withitsinsurers. The purposeof these risk prevention inspections of CEAfacilities, which The Insuranceorganises Department fire and related contamination orirradiation. damage resulting from acriticalityaccident, and sabotage, conditions, andundercertain nuclear natural disasters, water damage, acts of terrorism events such asfire, lightning, explosion, collapse, the policy covers material damage resulting from Under theclauses andconditionsof thecontract, uses or holds underany arrangement whatsoever. nuclear installations) which theCEAowns, leases, plant, machinery andequipment, includingbasic covering allmoveable andimmovable assets (buildings, Coverage andassistance isalsoprovided, including •  •  •  the mainpurposeof theinsurance isto provide: As far ascompulsorycoverage isconcerned, participation. insurance for itsstaff, withoptional orcompulsory The CEAhastaken outinvalidity anddeath benefit c) Employee insurance the event of anincident. guarantees theCEArapid, comprehensive financingin harmless against any claimsfrom theinsurer. This of inthework, allthoseparticipating holding them decommissioning operations over €2milliononbehalf It therefore hasadecommissioningallrisks policy for decree orachange to thesafety reference framework. in theOfficialGazette of a facility decommissioning with decommissioningoperations following publication The CEAtakes outinsurance to cover risks associated 3)  all risks transportinsurance. equipment owned, leased orrented by theCEA)and machinery breakage, allrisks IT insurance (covering This includespoliciesto cover nuclear andnon-nuclear machineryand equipment. policies specially designedto cover itsplant, The CEA’s insurance program alsoincludesinsurance equivalent decree for militaryfacilities. employee inaddition to SocialSecurity benefits. event of thedeath of theemployee, payment of aninvalidity pension, payable to the an educational annuityfor dependentchildren, a lump-sumpayment to thebeneficiary/ies inthe decommissioning phase Property damage caused during

2017, was amendedon12April2018to modifythe 2018 and2019financial years, signedon30 June The CEA’s staff incentive agreement for the2017, of accounts Note 30-Events aftertheclosing Note 29-Staff numbers insurance for pensioners andexpatriates. as insurance for loans, death/invalidity insurance and The CEAalsooffers optional insurance schemes such or abroad. resulting from accidentsduringassignmentsinFrance a lump-sumpayment, intheevent of personal injury instead of the€10millionset asideintheaccounts. sum of bonusesto bepaidoutfor 2017is€12.2million, In accordance withtheamendedagreement, thegross clause that triggers pay-out of theincentive bonus. TOTAL • non-managerial staff • managerial staff Staff numbers asat 31December2017:

10,135 15,607 5,472 29 — 29

— Annual financial statements — 30 — 2017 financial report — www.cea.fr C -INFORMATION ONSUBSIDIARIES ANDHOLDINGSAS AT 31DECEMBER 2017 (3) (2) (1) FRANCE 91460 MARCOUSSIS, Route deNozay GIE III V LAB FRANCE 33830 BELINBELIET, 20, rue deSuson SEML Route desLasers Cedex 1, FRANCE 38022 GRENOBLE BP 1096 7 rue Fantin Latour Hôtel duDépartement MINATEC 2) FRENCHHOLDINGS FT1CI 75015 PARIS, FRANCE 25 rue Leblanc Le Ponant D (423426899) CEA-INVESTISSEMENT 75015 PARIS, FRANCE 25 rue Leblanc Le Ponant D (389518853) NUCLÉAIRE CO-COURTAGE FRANCE 91190 VILLIERS LEBÂCLE, Route deSaint-Aubin TECHNICATOME FRANCE 92400 COURBEVOIE, Tour AREVA 1 Place Jean Miller ORANO 1) FRENCHSUBSIDIARIES COMPANY Data from the last financial year not available. not year accounts. 2017 financial of last subsidies. the approval from before Data investment and (loss) income provisions Net statutory Including (2)

(3)

(2)

(2) (3)

(DETAILED INFORMATION) 118.9 Capital 15.5 68.2 72.2 22.1 6.9 (DETAILED INFORMATION) ns 5 allocation of allocation of and balance and balance Reserves brought brought forward income before 85.9 -8.0 4,3 (3) 0 (1) - - -

Share of Share of capital capital held % 4.89 11.6 100 5.4 22 90 20 20 270.2 113.6 Gross Book value of Book valueof 72.2 61.3 shares held 1.8 1.5 ns 1 270.2 113.6 Net 35.9 72.2 1.8 1.5 ns 1 Loans and advances advances company company granted granted and not repaid by the by the ------

Guarantees Guarantees company granted granted by the by the ------

last year ex-VAT ex-VAT closed 24.6 of the of the Sales Sales (3) (3) (3) (3) (3) 0 -

loss of the loss of the 33.6 last year last year closed Profit/ (3) (3) (3) (3) (3) (2) (3) (2) -

company in company in Dividends Dividends collected collected the year by the by the (in millions of euros) of millions (in 0.2 1.2 1.2 0 0 - - -

impairment of of impairment Observations on provisions on provisions receivables for for ------Auditors’ report on the annual financial statements Financial year ending 31 December 2017

Dear Sir or Madam, - Note 2.f “Accounting methods and principles – Opinion Claim on the State” in the Notes, which mention In fulfilment of the task entrusted to us by the Minister the accounting implications of the signature of of the Economy and Finance, we carried out the the framework agreement and its Amendment audit of the French Alternative Energies and Atomic 1 concerning the financing of long-term nuclear Energy Commission’s annual financial statements costs, by which the State agrees to ensure for the financial year ending on 31 December 2017, the general balance of the CEA’s long-term as appended to this report. nuclear costs. Paragraphs a) and f) of Note 2.k.2 We hereby certify that under French accounting “Accounting methods and principles – Provisions standards and rules, the annual financial statements for liabilities and expenses – End-of-cycle are a faithful and honest reflection of the income from commitments” in the Notes, which restate the the past financial year and the institution’s financial key assumption adopted in drawing up the 2017 position and assets at the end of this financial year. accounts, whereby the CEA’s cash resources will coincide with the schedule of decommissioning Basis of the opinion operations, as currently planned. Auditors’ report on the annual financial statements report Auditors’ Reference framework for the audit - Paragraphs c) and f) of Note 2.k.2 “Provisions We conducted our audit in accordance with the for liabilities and expenses – End-of-cycle professional standards applicable in France. We commitments” of the accounting principles in the — believe that the evidence we collected constitutes a Notes, which state the main sources of uncertainty sufficient and appropriate basis for our opinion. and judgment inherent in assessing end-of- Our responsibilities under these standards are cycle costs, including costs related to long-term indicated in “Auditors’ responsibilities in auditing the management of radioactive waste packages, the annual financial statements” hereunder. planned final state of facilities to be decommissioned and the physical and radiological characterisation Independence of facilities to be decommissioned. We performed our auditing assignment in accordance - Paragraph g) of Note 2.k.2 “Accounting methods with the applicable rules concerning independence, and principles – Provisions for liabilities and for the period from 1 January 2017 to the date of our expenses – End-of-cycle commitments” in the report. Furthermore, he have not provided any services Notes, which mentions the possibility of changes to prohibited by the code of conduct of the auditing the decommissioning strategies for the next fifteen profession. years with clear priorities and consolidated binding decommissioning programmes, and the review of Observations the annual funding required for the next 15 years Without prejudice to the opinion expressed above, for decommissioning and waste management we would like to draw your attention to the following operations, taking into account the updated points: decommissioning strategy and the development 31 — — 32 — 2017 financial report — www.cea.fr Justification of findings -  securities. We have analysed themethods usedby the and principles presents themethod for valuing equity Note 1.4 “Financial assets” intheaccounting methods • Financialassets ongoing negotiations withtheauthorities. account, in particular, thechange inestimates and assumptions madewere reasonable, and takinginto financed by theState, assessingwhether the decommissioning liabilitiesandtheshare to be During ouraudit, we reviewed theestimated will be reimbursed by theState. in the Notes, thisasset constitutes theclaimthat nuclear facilities” andNote 21 “Claim ontheState” commitments –Funding for decommissioningof Provisions for liabilitiesandexpenses –End-of-cycle Note 2.11.2 a) “Accounting methods andprinciples – CEA recognises aClaimontheState. Asstated in in theframework agreement withtheState, the liabilities, andaccording to theprovisions set forth As acounterpartto theseprovisions, to cover for end-of-cycle operations” intheNotes. End-of-cycle commitments», andNote 26 “Provisions principles –Provisions for liabilitiesandexpenses – described inNotes 2.11.2 “Accounting methods and accounting methods, valuation rules andprinciples sheet, were calculated inaccordance withthe recovery, milliononthebalance anamountof €16,445 The provisions for decommissioning andwaste • End-of-cycle commitments activities andassets asaccurately aspossible. of theaccountingprinciples usedto present theCEA’s principles applied by the CEA, we verified the relevance of ourassessmentofAs part theaccountingrules and • Accounting rules andmethods financial year. the audit of theannualfinancial statements for the professional opinion, were for themost important your attention to thefollowing points, which, inour to thebasisfor ouropinions, we would like to draw and R.823.7 of theFrench Commercial Coderelating In accordance withtheprovisions of L. Articles 823-9 paying off theCEA’s remaining debt to ORANOCycle. progress withtheState andORANOontheterms for 2017 financial statements sincediscussionsare in that itistheonly impact incorporated into theCEA’s CEA debt to ORANOCycle (formerly AREVA NC)and repay of theoutstanding part capitalowed onthe in 2017, theCEAobtained anadditional grant to Note 18 “Claim ontheState”, which specifiesthat estimates in2018. remainand uncertainties could lead to revised continue in2018. Furthermore, significantrisks discussions related to thisstrategic analysis will of theCigeo project. This note g)specifiesthat the this method hadbeenapplied correctly andchecked calculation isbased. Duringouraudit, we verified that commitments andtheassumptions onwhich their out themethods usedto estimate retirement benefit 33 “Off-balance sheet commitments” intheNotes set Note 1.12 “Tax andstaff-related liabilities” andNote • Off-balancesheet commitments been applied correctly andchecked itspresentation. During ouraudit, we verified that thismethod had subsidies received from theState anditspartners. and principles set outtheaccountingmethods for State andthird parties” intheaccountingmethods and Note 1.10 “Equipment grants received from the Note 1.9 “Budget subsidyreceived from theState” • Subsidies book value. on thebalancesheet isat least equivalent to theirnet CEA to ensure that theasset valueof thesecurities the Executive Board. The annualfinancial statements were approved by are plans to liquidate orwinduptheorganisation. accounting policy for agoing concern, unless there in the financial statements, andimplement the information relevant to thecontinuingoperation to continue to operate, andifapplicable, present Management must assess theorganisation’s ability When drawing upthe annualfinancial statements, fraud or error. of any significantanomalies, whether asa result of to draw upannualfinancial statements that are free It must alsoimplement theinternal controls required in linewithFrench accountingrules andprinciples. and reliable annualfinancial statements which are Management isresponsible for drawing uphonest statements governance regarding theannualfinancial Responsibilities of Management andcorporate position andannualfinancial statements. and intheother documentsregarding thefinancial with theinformation given intheManagement Report and complianceof theannualfinancial statements We have noobservations to make onthereliability verifications provided for by law. standards inFrance, we alsoconducted thespecific In accordance withtheapplicable professional documents submitted to theExecutive Board Verification of theManagement and other Report statements taken separately. on any individualitems intheseannualfinancial first of this part report. We willnot express any opinion have animpact ontheopinionwe expressed inthe financial statements, taken asawhole, andtherefore These evaluations are of theaudit part of theannual its presentation. Auditors’ responsibilities in auditing the annual the circumstances at hand, and not to express an financial statements opinion on the effectiveness of internal control; The auditors issue a report on the annual financial • they assess the appropriate nature of the accounting statements. Our aim is to obtain reasonable assurance methods used and the reasonableness of accounting that the annual financial statements as a whole, projections made by Management, and the relevant contain no significant anomalies. Reasonable information provided in the annual financial assurance corresponds to a high level of assurance. statements; However there is no guarantee that an audit • they assess the appropriateness of Management’s conducted in accordance with professional standards implementation of the accounting policy for a going will systematically identify any significant anomalies. concern and, depending on the information gathered, Anomalies may result from fraud or errors and are whether there is significant uncertainty related to considered to be significant if it can reasonably events or circumstances which could jeopardize the be expected that individually or jointly, they could ability of the organisation to continue operating. This influence the economic decisions made by the assessment is based on information gathered up to users of the financial statements. the date of the report. However, subsequent events As stated in Article L.823-10-1 of the French or circumstances could jeopardize the organisation Commercial Code, our work to certify the financial as a going concern. If they find that there is reason statements does not involve guaranteeing the viability for significant uncertainty, they draw the attention of of your organisation or quality of its management. the readers to the information provided in the annual financial statements concerning the uncertainty or, When conducting an audit in compliance with the if the information is not provided or irrelevant, they professional standards applicable in France, auditors may either issue the certification with reservations exercise their professional discretion throughout o reject certification; the auditing process. Furthermore: • they assess the overall presentation of the annual • they identify and assess the risk that the annual financial statements and assess whether they reflect financial statements may contain significant the underlying operations and events in such a way anomalies, whether as a result of fraud or error. as to convey an accurate picture. They establish and implement auditing procedures toaddress these risks and gather evidence they deem sufficient and appropriate to form their opinion. The risk of failure to detect a significant anomaly resulting from fraud is higher than the risk of failure to detect a significant anomaly resulting from error, since fraud can involve collusion, falsification, voluntary omissions, false statements or the circumventing of internal controls; • they familiarise themselves with the internal control processes relevant to the audit in order to Auditors’ report on the annual financial statements report Auditors’ establish appropriate auditing procedures under —

Paris La Défense18 June 2018

DIVISION OF KPMG S.A. MAZARS

Denis Marangé Laurent Genin Thierry Blanchetier David Chaudat Partner Partner Partner Partner

33 — CEA’s9 centres in France

15

1 Headquarter 14 Civil research centres 1 2 2 2 Paris-Saclay 6 Fontenay-aux-Roses and Saclay sites 3 Grenoble 13 7 8 4 Marcoule 5 Cadarache

Centres for military 12 3 9 applications 10 6 DAM Île-de-France 4 7 Le Ripault 11 5 8 Valduc 9 Cesta 10 Gramat

Regional technology-transfer platforms 11 Toulouse 12 Bordeaux 13 Nantes 14 Metz 15 Lille

French atomic energy and alternative energy Commission 91 191 Gif-sur-Yvette cedex www.cea.fr

Cover: From left to right and top to bottom: Grid for nuclear fuel rod spacing - Emulator for a chip with 48 cores in six interconnected clusters - Inside the Megajoule Laser experimental - chamber - Electronic glucose sensor - Space satellite cryostat integration on prototype - Exterior view of solar panels. Credits : C. Dupont - L. Godart – D. Morel - MS - P. Stroppa / CEA. Design and production: EFIL – efil.fr – Imprimé par un imprimeur Imprim’Vert sur du papier provenant de forêts durablement gérées - June 2018