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RESEARCH AND DEVELOPMENT PROGRAMS, PATENTS AND LICENSES

11

11.2 Intellectual property

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increased performance of non-destructive examinations and in-situ work;

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optimization of the design, manufacturing and assembly of replacement

components;

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products providing customers with better measurement performance and

operational savings, as well as enhanced worker safety.

Supporting these different objectives, AREVA NP is especially involved in efforts

to understand and anticipate aging phenomena, in cooperation with the CEA and

EDF, with the objective of gaining a better understanding and control of the aging of

equipment andmaterials in the reactor environment (presence of radiation, pressure,

temperature and mechanical loads). This in turn reinforces the ability to predict and

anticipate materials capabilities and to offer suitable solutions for extending the

operating period of reactors and reactor components in response to the needs of

power generation companies.

AREVANP is also heavily involved in efforts to understand and analyze safety issues

(risk prevention, management and mitigation) through its own programs and in

collaboration with the IRSN, the CEA and EDF, for example through R&D programs

on severe accidents carried out under the aegis of the National Research Agency

(ANR) or in a European framework (H2020).

Improving industrial processes and adapting them

to changing regulations

The R&D teams of the Saint-Marcel, Jeumont and le Creusot plant sites have

concentrated on improving manufacturing processes, aiming for their quality,

reproducibility and economic performance. Advances have beenmade in particular

in the pinning of the tube support plate of steam generators, in welding methods

and in the inspection of vessels and steam generators.

All of the experts and Metallurgy Technical Centers of AREVA NP have also been

fully mobilized to provide the necessary support to the operator EDF to establish

the compatibility of forged components supplied by the Creusot forge and other

manufacturers with the conditions for their use, applying the new ESPN regulations.

This gave the French nuclear safety authority ASN the technical information it

needed to authorize, in late 2016, the restart of most of the shutdown reactors.

A roadmap to optimize forged component production with regard to these new

regulations was also drawn up and is being rolled out in the manufacturing plants

of AREVA NP and Industeel, in terms of both the necessary R&D studies and tests

and the corresponding investment.

R&D ACTIVITIES OF AREVA TA IN PROPULSION AND RESEARCH

REACTORS

Small Modular Reactor (SMR)

AREVA TA continued work on the pre-conceptual design of a small-capacity

power reactor. This modular, integrated reactor is in the 100-150 MWe range. The

ongoing design combines solutions used for high-capacity PWRs and innovative

design bases in terms of technologies, industrial optimization, construction and

operating flexibility. This concept was the basis of the proposal presented by

EDF Energy, teamed with AREVA TA, AREVA NP and other French and English

partners, in response to the invitation to tender for SMRs issued in 2016 by the

British government.

Research reactor

AREVA TA continued to set up its technical standards (nuclear safety standards,

development or adaptation of design codes and drawings for research reactors,

with the CEA’s support) as backup to its proposals for international research reactors

to countries wishing to invest in R&D or nuclear education, and for the production

of medical isotopes.

11.2.

INTELLECTUAL PROPERTY

Intellectual property rights, in particular patents, trademarks, domain names and

know-how, play an important role in the group’s daily operations and thus in the

production and protection of the AREVA group’s products, services and technology.

Protecting the group’s knowledge and unique know-how requires a comprehensive

system for developing and managing AREVA’s technology assets. This is also

the key success factor during negotiations of R&D and industrial partnerships,

technology transfer agreements, and process license agreements, now standard

practice for large-scale international projects.

11.2.1.

PATENTS AND KNOW-HOW

Several years ago, AREVA set the goal of building a portfolio of patent rights

consistent with its strategies and right-sized in terms of both quality and quantity,

in keeping with the group’s research and development efforts.

Today, the group has a portfolio of some 5,600 patents derived from more than

1,200 inventions pertaining to the nuclear fuel cycle, nuclear reactors and related

services. In 2016, the group filed 51 priority patent applications from operations

held for sale (14 in the NewCo consolidation scope and 37 in the New NP scope).

In addition to the patent portfolios, AREVA has elected tomaintain the confidentiality

of some of its technology innovations. Accordingly, the group owns and uses

valuable know-how recognized for its technical excellence that contributes to

AREVA’s leadership in its businesses and bolsters the group’s technical and

commercial offering.

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2016 AREVA

REFERENCE DOCUMENT