Reference document Reference document 2006 This reference document was filed with the French financial market authorities AMF (Autorité des Marchés Financiers) on April 27, 2007, in accordance with articles 211-1 to 211-42 of its General Regulations. It may be used in support of a financial transaction if it is accompanied by an offering circular signed by the AMF. CONTENTS CHAPTER 1 Person responsible for the reference document and persons responsible for auditing the financial statements 1 1.1. Person responsible for the 2006 reference document 2 1.2. Attestation by the person responsible for the reference document 2 1.3. Persons responsible for auditing the financial statements for 2003, 2004, 2005 and 2006 3 1.4. Persons responsible for financial information 4 1.5. Communications policy and tentative financial communications schedule 4 CHAPTER 2 Information pertaining to the transaction (Not applicable) 7 CHAPTER 3 General information on the company and its share capital 9 3.1. Information on AREVA 10 3.1.1. Legal name (article 2 of the bylaws) 10 3.1.2. Establishing order 10 3.1.3. Legal form of the company and applicable legislation (article 1 of the bylaws) 10 3.1.4. Purpose of the company (article 3 of the bylaws) 10 3.1.5. Corporate office (article 4 of the bylaws) 11 3.1.6. Statutory term (article 5 of the bylaws) 11 3.1.7. Business registry, business code, registration number 11 3.1.8. Availability of incorporating documents 11 3.1.9. Annual financial statements 12 3.1.10. Information on general meetings of shareholders and voting right certificate holders 13 3.2. Information on share capital and voting rights 15 3.2.1. Capital stock (article 6 of the bylaws) 15 3.2.2. Changes in share capital since 1989 (article 7 of the bylaws) 16 3.2.3. Shareholders and voting rights 17 3.2.4. Treasury shares 18 3.2.5. Form of shares, investment certificates and voting right certificates (article 11 of the bylaws) 18 3.2.6. Transfer of shares, investment certificates and voting right certificates (article 12 of the bylaws) 18 3.2.7. Rights and obligations attached to shares, investment certificates and voting right certificates (article 14 of the bylaws) 19 3.2.8. Liens 19 3.2.9. Breaching shareholding thresholds 19 3.3. Investment certificate trading 20 3.4. Dividends 22 3.5. Organization chart of AREVA group companies 23 3.6. Equity interests 24 3.7. Shareholders’ agreements 26 CHAPTER 4 Information on company operations, new developments and future prospects 33 4.1. Overview and strategy of the AREVA group 34 4.1.1. Overview 34 4.1.2. Strategy 36 4.1.3. Background of the AREVA group 38 4.1.4. Operating organization 41 4.2. The Nuclear Power and Transmission & Distribution markets 42 4.2.1. The global energy situation 42 4.2.2. Nuclear power’s contribution to electricity generation 43 4.2.2.1. A brief history of nuclear power’s contribution to electricity generation 43 4.2.2.2. Status of nuclear power 44 4.2.2.3. Outlook for nuclear power around the globe 46 4.2.2.4. The challenges of nuclear power in different regions of the world 47 4.2.3. The Transmission & Distribution market and challenges around the world 51 4.2.3.1. The Electricity Transmission and Distribution market 51 4.2.3.2. The challenges of power transmission and distribution around the world 51 4.3. The energy businesses of the AREVA group 53 4.3.1. Nuclear power 53 4.3.1.1. A few fundamental concepts for an understanding of the group’s nuclear power operations 53 4.3.1.2. AREVA’s nuclear businesses 54 4.3.2. Electricity transmission and distribution operations 56 4.3.2.1. A few fundamental concepts for an understanding of the transmission and distribution business 56 4.3.2.2. The transmission and distribution business 56 4.4. Front End division 57 4.4.1. Mining business unit 60 4.4.2. Chemistry business unit 73 4.4.3. Enrichment business unit 76 4.4.4. Fuel business unit 80 4.5. Reactors and Services division 85 4.5.1. Plants business unit 87 4.5.2. Equipment business unit 92 4.5.3. Nuclear Services business unit 96 4.5.4. AREVA TA business unit 99 4.5.5. Nuclear Measurement business unit 101 4.5.6. Consulting and Information Systems business unit 103 4.5.7. Renewable Energies business unit 105 4.6. Back End division 107 4.6.1. Treatment and Recycling business units 109 4.6.2. Logistics business unit 114 4.6.3. Cleanup business unit 116 4.6.4. Engineering business unit 118 4.7. Transmission & Distribution division 120 4.7.1. Products business unit 124 4.7.2. Systems business unit 127 4.7.3. Automation business unit 129 4.7.4. Service product line 131 4.8. Major contracts 133 4.9. The principal sites of the AREVA group 136 4.10. AREVA’s customers and suppliers 145 4.11. Sustainable Development and Continuous Improvement 147 4.12. Capital spending programs 148 4.13. Research and development programs, intellectual property and trademarks 150 4.14. Risk and insurance 156 4.14.1. Overall organization of risk management 156 4.14.1.1. Organization of Risk and Insurance department 156 4.14.1.2. Risk mapping 156 4.14.1.3. Risk management 156 4.14.2. Managing risk related to the group’s industrial operations 157 4.14.2.1. Regulations applicable to the group’s nuclear facilities in France and abroad 157 4.14.2.2. Nuclear safety in the group’s nuclear facilities 159 4.14.2.3. Nuclear risk management and prevention 161 4.14.2.4. Prevention and management of chemical hazards 164 4.14.3. Risk factors 166 4.14.3.1. Risk related to the group’s overall business 166 4.14.3.2. Risks related to the nuclear divisions 169 4.14.4. Market risks 173 4.14.5. Disputes and legal proceedings 177 4.14.6. Risk coverage and insurance 179 4.14.6.1. Special coverage relating to nuclear facility operations 179 4.14.6.2. Other AREVA insurance programs 181 4.14.6.3. Other insurance 181 4.14.6.4. Outlook and trends in 2007 181 CHAPTER 5 Assets - Financial position - Financial performance 183 5.1. Analysis of and comments on the group's financial position and performance 184 5.1.1. Overview 184 5.1.1.1. Business trends 184 5.1.1.2. Key characteristics of AREVA’s business model 185 5.1.1.3. Highlights of the period 185 5.1.2. Key data 186 5.2. 2006 Human Resources Report 212 5.2.1. Key data 212 5.2.2. Change in number of employees and human resources data 213 5.2.3. Supporting the group’s international development through human resources programs 214 5.2.4. 2006 Review 216 5.3. Environmental Report 221 5.3.1. Environmental policy 221 5.3.2. Environmental risk management and prevention 224 5.3.2.1. Monitoring releases and the environment 224 5.3.2.2. Radiological impact of the sites 224 5.3.2.3. Maintaining a high level of safety and managing risk 225 5.3.2.4. Preventing environmental health risks 225 5.3.2.5. Prevention programs for technology risks and natural hazards 226 5.3.2.6. Soil management 226 5.3.2.7. Protecting and restoring ecosystems 227 5.3.3. Environmental performance improvement 228 5.3.4. Strengthening relations with external stakeholders 234 5.4. Consolidated financial statements 236 5.4.1. Statutory Auditors’ report on the consolidated financial statements 236 5.4.2. Consolidated income statement 239 5.4.3. Consolidated balance sheet 240 5.4.4. Consolidated cash flow statement 242 5.4.5. Consolidated statement of changes in equity 243 5.4.6. Segment reporting 244 5.5. Notes to the consolidated financial statements 250 Note 1. Accounting principles 250 Note 2. Consolidation scope 263 Note 3. Sales revenue 265 Note 4. Personnel expenses and operating leases 266 Note 5. Depreciation, amortization and impairment of property, plant and equipment and intangible assets and provisions impacting operating income 266 Note 6. Restructuring, early retirement and other operating income and expenses 267 Note 7. Net financial income 268 Note 8. Income taxes 269 Note 9. Net income from discontinued operations 271 Note 10. Goodwill 272 Note 11. Intangible assets 274 Note 12. Property, plant and equipment 276 Note 13. End-of-life-cycle operations 278 Note 14. Equity associates 285 Note 15. Other non-current financial assets 287 Note 16. Inventories and in process 289 Note 17. Accounts receivable and related accounts 289 Note 18. Other operating receivables 290 Note 19. Cash and cash equivalents 290 Note 20. Other current financial assets 290 Note 21. Equity 291 Note 22. Minority interests 292 Note 23. Employee benefits 292 Note 24. Other provisions 299 Note 25. Borrowings 301 Note 26. Advances and prepayments received 304 Note 27. Other liabilities 304 Note 28. Net cash from operating activities and net cash flow from discontinued operations 305 Note 29. Related party transactions 306 Note 30. Greenhouse gas emission allowances 307 Note 31. Derivative instruments 307 Note 32. Commitments given or received 313 Note 33. Disputes and contingent liabilities 314 Note 34. Events subsequent to year end 316 Note 35. Main consolidated companies 317 5.6.