Areva - Reference Document 2016

BUSINESS OVERVIEW

6.4 Operations

Human and industrial resources

The Nuclear Logistics business carries out nearly 6,000 shipments each year. It is

based in several regions of the world:

in Europe, the business designs casks and commissions shipments of nuclear

materials. Its subsidiaries LMC andMainco carry out road shipments and provide

industrial logistics services respectively;

in the United States, the entity and its subsidiary CHT design, manufacture and

sell storage casks to US nuclear utilities. They are also active in the front end of

the nuclear cycle. Its operations are based at four sites, in Columbia, Maryland;

Aiken, South Carolina; Kernersville, North Carolina; andMoyock, North Carolina;

in Japan, its entity provides engineering; studies, transportation, and the sale

and maintenance of fuel casks for Japanese power companies;

in Niger, the Nuclear Logistics business ships mining concentrates;

in China, the Logistics Business Unit has a team dedicated to the development

of future operations.

The Nuclear Logistics business has the necessary resources to manufacture

shipping and storage casks. It has a fleet of transportation equipment, including

casks and road and rail resources, and it operates road, rail and sea terminals.

To accomplish its mission of supervising the AREVA group’s transportation

operations, the business has an organization that manages risks and sets up

appropriate action plans to manage any emergency at any location, in liaison with

the public authorities. Its real-time transportation tracking center gives it a continuous

stream of information on transportation operations.

Relations with customers and suppliers

AREVA TN’s customers are utilities, research reactor operators and fuel cycle

companies, as well as institutes, laboratories and research centers working in the

nuclear field, all of which seek solutions for the shipment of radioactive materials,

for materials storage and for the management of their logistics chain.

AREVA TN relies on a diversified international network of partners and suppliers

for all of its shipments and key components.

Market and competitive position

The Nuclear Logistics business is active in every stage of the nuclear fuel cycle,

worldwide.

The business of nuclear materials transportation and of nuclear materials storage/

shipping cask design is characterized by the diversity of materials involved, the

international and competitive nature of the markets, and the strict and changing

regulatory framework, which differs according to each transportation mode and

each country.

Sales were evenly distributed among France, Europe, North America and Asia.

The Nuclear Logistics business offers comprehensive management of the logistics

chain and has strengthened its position in securing supplies for the nuclear sites.

Operations in the front end of the fuel cycle are deployed around the globe. In recent

years, the Nuclear Logistics business has strengthened its position in this market,

in particular through shipments for AREVA’s uranium mines and fuel fabrication

plants, with support from solid partners.

In the back end of the fuel cycle:

in Europe, EDF continues to be the leading shipper of used fuel to the la Hague

recycling plant, followed by other international power companies which have

opted for recycling and by certain research reactors;

in the United States, the Nuclear Logistics business is a leading player in the

market for the dry storage of used fuel;

in Asia, the Nuclear Logistics business is mainly present in Japan, where it carries

out fuel and nuclear waste shipments between Europe and Japan. It also supplies

storage racks to nuclear reactors in China.

Outlook and development goals

The Nuclear Logistics business continues to develop internationally to strengthen

its position as a leading player in its business areas.

6.4.1.3.3.

Dismantling and Services (D&S)

Businesses

The Dismantling and Services business offers customers a broad range of services

covering three main types of operations:

nuclear facility dismantling operations across the entire value chain: radiological

characterization of facilities to be dismantled, cleanup, deconstruction, operation

of facilities during dismantling and of the support facilities, and redevelopment

of the land and buildings.

Numerous facilities built in the 1950s and 1960s have reached the end of their

operating period. Their dismantling and the rehabilitation of their host sites, in

particular to allow new projects to be located there, represent a major industrial

challenge. The Dismantling and Services business (D&S) is a managing

contractor for facilities that have been shut down, provides dismantling studies

and project management, and carries out dismantling operations;

waste management operations, whether the waste comes from the production

and operation of nuclear facilities, from dismantling operations, or from major

maintenance operations. The Dismantling and Services business also contributes

to major projects for the retrieval and packaging of legacy waste stored at the

sites pending the availability of disposition methods;

services to nuclear operators include nuclear logistics and project support, facility

maintenance, radiological safety of workers and facility operations.

These operations mostly involve nuclear facilities currently in production, which

must ensure the best nuclear safety performance at all times, preserve assets,

plan for the future and control costs.

Operations and highlights

In 2016, the Dismantling and Services business (D&S) won several significant

projects, strengthening its position as a major player in the markets for dismantling,

waste management and services to nuclear operators in France.

Commercially, D&S exceeded its objectives, winning significant contracts with its

main customers, the CEA and EDF, particularly in the field of services.

For example, D&S won a request for proposals with EDF relating to project support

activities for reactors in the French nuclear fleet. The business unit was also chosen

by the CEA at Cadarache to manage storage facilities for low- and medium-level

radioactive waste.

Operationally, 2016 saw the completion of the major project to dismantle the ATPu

and LPC nuclear facilities at Cadarache. This is a first in the dismantling of a MOX

fuel fabrication plant. Up to 300 people were mobilized at the peak of the project,

which involved the deconstruction of 462 glove boxes, more than 30 tanks and

4 kilometers of piping.

In addition, the teams of the Triade facility operated by D&S successfully treated

very low-level mercury metal in 2016, enabling its acceptance in an Andra disposal

center. This was achieved with the use of a process patented by a D&S entity, which

opens the way to a new waste treatment method.

2016 AREVA

REFERENCE DOCUMENT