Areva - Reference Document 2016

BUSINESS OVERVIEW

6.4 Operations

More generally, as concerns technology, D&S’s know-how was recognized on

several occasions in 2016. For example, the business unit won the grand prize in

the Nuclear Safety category at the World Nuclear Exhibition (WNE) for its robotic

investigation pack comprising the multi-task Riana™ platform and the Dorica™

drone. In addition, other technology developments by D&S in the virtual reality and

augmented reality field, such as the simulator of pole crane operations and the

Manuela™ real-time radiological mapping tool, contributed to the “Industry of the

Future Showcase” label (

Vitrine Industrie du Future

) granted to AREVA.

Human and industrial resources

The Dismantling and Services business provides services to practically all of the

French nuclear sites operated by AREVA, the CEA, EDF and Andra. Its personnel

are present at all sites to ensure the quality of the services provided, in compliance

with the budget, schedule, and nuclear and occupational safety requirements.

It has expertise in the vast majority of techniques suited to the treatment of very

low, low, medium and high level effluent and waste, to their volume reduction and

to their safe packaging.

D&S has operated the Triade environmentally regulated facility (see

Glossary

) since

1994, where it maintains machinery and equipment used in controlled areas,

recertifies equipment, dismantles tooling and processes waste. Facilities are made

available to customers so that they can maintain their tools and equipment in a

secure environment.

In 2016, D&S continued to lead projects to retrieve legacy waste and dismantle

legacy facilities which had been operated by AREVA or for which the group

contracted operations. This includes in particular the UP2-400 facilities at the la

Hague site and the Eurodif uranium enrichment plant at the Tricastin site. At the

same time, the D&S team provided monitoring services for sites where dismantling

is now complete, such as the SICN Annecy and Veurey sites or the former chemical

plant at Miramas, pending their decommissioning by the nuclear safety authority

ASN.

In addition, D&S brings its customers unique operating experience from AREVA’s

implementation of its end-of-lifecycle obligations in France.

Relations with customers and suppliers

To improve the competitiveness of its projects, D&S has set up a process for dialogue

with its suppliers to strengthen their visibility for the future workload over the short

and medium terms and to work on improving performance.

Market and competitive position

The French dismantling and services market is driven by the new requirements of

customers who turn to the group for its know-how. D&S is a major player in that

market in France.

For facility dismantling, the net present value of provisions for the three main

contracting authorities – the CEA, AREVA and EDF – is approximately 30 billion

euros. The market will grow significantly in the coming years, led by the ramp-

up of dismantling programs, although the general economic situation sometimes

leads to a reconsideration of the some project schedules. D&S is a leading player

in this effort.

Outlook and development goals

The goals of the Dismantling and Services business are to:

contribute to AREVA’s performance, in particular by carrying out internal

dismantling projects related to end-of-lifecycle operations with optimum nuclear,

industrial and occupational safety, while limiting the consumption of provisions;

assert its position as a leading player in the French market; and

provide a showcase of its know-how to support the development of AREVA’s

dismantling operations internationally. In this vein, in 2016, the D&S teams

met their counterparts at the Sellafield site in the United Kingdom to examine

opportunities for assistance and expertise that the group might provide to

projects conducted on the other side of the Channel.

The Dismantling and Services business will growby continuing to expand its offering

of activities supported by in-house expertise, and by developing partnerships. The

competitiveness of D&S also depends on its investment in technology innovation to

serve its customers. In this regard, themarket introduction in 2016 of a simulator cab

for polar crane operations in nuclear power plants and of the Manuela™ portable

tool for the topographical and radiological mapping of nuclear facilities quickly

received positive feedback from several EDF sites.

6.4.1.3.4.

Waste management

Businesses

In operating and dismantling its fuel cycle facilities, AREVA represents only a small

fraction of the national radioactive waste inventory. This is due to the design and

implementation of effective solutions for the safe, optimized and comprehensive

management of radioactive waste management. AREVA assumes responsibility for

its waste by continually adopting solutions aimed at reducing their overall impact

and by setting aside assets to secure long-term funding for the related expenses.

Optimization of a waste method means managing the waste from its generation

(aiming for minimization at the source), managing waste flows, sorting, packaging

(with or without prior processing), storage, shipment and disposal. The diversity of

the group’s operations and businesses, which cover the entire nuclear fuel cycle

from the uranium mine to used fuel recycling, multiple related industrial sites, and

a variety of resulting primary waste, have led AREVA to develop unique technical,

industrial and organizational know-how. Backed by more than 40 years of waste

management experience, AREVA’s skills as an integrator of solutions allow an

optimum technical and economic balance to be achieved in the implementation

of comprehensive waste management methods.

This unique know-how goes into serving its customers through tailor-made solutions

for the management of all or part of the waste they generate.

Radioactive waste management must meet a number of safety, industrial and

societal challenges, and AREVA is in constant contact with the various players

and stakeholders involved, particularly at the national level. It is an active contributor

to the development of the French National Radioactive Materials and Waste

Management Plan (PNGMDR) under the aegis of the Ministry of Environment,

Energy and Oceans represented by the General Directorate of Energy and Climate

and by ASN. Under this plan, an exhaustive inventory of the different radioactive

waste management methods is drawn up, and areas for improvement and related

actions to be taken are defined.

Operations and highlights

OPERATIONS

In 2016, AREVA packagedmore than 10,000 m

of waste, including approximately

70% in the very-low-level waste category, 25% in the short-lived low- and medium-

level waste category, and 5% in the other categories (including long-lived medium-

and high-level waste). Waste categories are described in Appendix 3 of the

Reference Document.

Comprehensive waste management methods, going up to final disposal, are now

operational for 90% of the waste generated each year in France.

In addition to adapting its industrial plants, in 2016 AREVA continued to pursue

its objectives to optimize operating performance in waste management, in

particular through waste reduction at the source; the implementation of advanced

characterization, sorting and decontamination solutions; the reduction of final waste

volumes through high-performance facilities; and early packaging of waste.

2016 AREVA

REFERENCE DOCUMENT