Areva - Reference Document 2016

BUSINESS OVERVIEW

6.4 Operations

These trainees will be the future operators of the J-MOX fabrication plant under

construction at the Rokkasho-Mura site in northern Japan.

Concerning safety, the site continued to set up action plans defined following the

post-Fukushima supplementary safety assessments in the areas of personnel

training, remediation equipment and a new emergency management organization.

AREVA TEMIS

AREVA Temis develops and offers a selection of technical skills and know-how for

all high added-value projects in the nuclear, aeronautic and defense industries. In

particular, the company provides automated systems, designs and manufactures

mechanical equipment in specialty metals, and produces fiber-reinforced concrete

containers.

AREVA Temis is based at five sites located near the AREVA la Hague and AREVA

MELOX production sites.

In 2016, AREVA Temis continued its initiative to strengthen marketing and sales

outside of AREVA’s subsidiaries, in particular with the development of a robotic

offering for remote intervention in hostile environments where human intervention

is not possible.

Market and competitive position

The world market for used fuel recycling is tightly controlled by strict technical and

regulatory requirements. The market’s main features are:

demanding nuclear safety, emissions and environmental impact requirements;

a concentrated industry with a limited number of suppliers of recycling services;

a very high level of technological expertise required;

capital-intensive operations; and

services under multi-year contracts.

Outlook and development goals

In 2017, the Recycling business’s objectives are to:

continue to sell and supply recycling solutions in France and internationally;

promote recycling technology abroad;

develop innovative offers to strengthen nuclear and occupational safety in used

fuel management;

participate in the creation of appropriate infrastructure for its international

partners.

6.4.1.3.2.

Nuclear Logistics

Businesses

The Nuclear Logistics business, known by the trade name of AREVA TN, has two

main business lines:

the design of casks and specialized equipment to ship and/or store nuclear

materials and waste, and the management of their manufacturing;

the organization and execution of nuclear materials and waste shipments and,

as needed, the management of the logistics chain, including that of the related

equipment fleet. It works both in the front end and the back end of the nuclear

fuel cycle for industry as well as for research reactors and laboratories. It is also

tasked with the supervision of the transportation operations of the AREVA group

and of its customers, and with ensuring that they are carried out according to

the highest level of safety.

The Nuclear Logistics business also supplies dry storage solutions, nuclear fuel

storage racks for power plant cooling pools, and neutron shielding systems for

reactors.

Operations and highlights

In the front end of the nuclear fuel cycle and in a tight market, AREVA TN

consolidated new sea shipping lanes to China and continued to offer even more

optimized sea solutions to its customers.

In the waste market, the Nuclear Logistics business strengthened its position

by kicking off the development of a new cask called the TN

MW to serve the

nuclear power plant dismantling market. This cask gives operators the possibility

of containing a wide variety of waste while combining the storage, shipment and

disposal functions in a single solution.

In the back end of the cycle, 2016 saw the signature of the used fuel treatment

and recycling contract for the 2016-2023 period by AREVA NC and EDF. All of the

shipments under this contract are carried out by AREVA TN. This involves shipping

used fuel from the nuclear power plants to the AREVA la Hague site, and shipping

fresh MOX fuel fabricated at the AREVA MELOX plant.

As part of this contract, EDF gave AREVA NC an order for 22 TN

G3 casks to be

manufactured by AREVA TN. The TN

G3 cask is a next-generation cask which will

ultimately replace the current TN

12 and TN

13 casks.

Also in 2016, Japan’s reactors were gradually returned to service, reinforcing

assumptions of MOX fuel shipments to that country in the coming years.

In the storage field in Europe, the first TN

24E cask was loaded in 2016 at the

Isar power plant in Germany operated by Preussenelektra. In addition, Synatom

once again turned to AREVA TN with the signature of a contract to develop and

manufacture 30 TN

24 casks for the Doel and Tihange power plants. This contract

includes an option to deliver additional casks.

AREVA TN had several commercial successes with the signature of NUHOMS

cask supply contracts for the on-site storage of used fuel, including their startup

and loading. It also celebrated the loading of its 1,000

canister with Exelon, the

leading nuclear utility in the United States. Consistent with its industrial strategy for

manufacturing integration, AREVA TN inaugurated its new production center for

the concrete modules of its casks in Moyock, North Carolina. Production began

in February 2016.

In 2016, AREVA TN and its Texan partner Waste Control Specialists filed a license

application for a consolidated storage center in Texas to receive NUHOMS

type

casks currently stored at shut-down reactors, most of which have been dismantled.

In China, the Logistics Business Unit continues its development work with the

near-term objective of supplying dry storage solutions.

2016 AREVA

REFERENCE DOCUMENT