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BUSINESS OVERVIEW

06

6.4 Operations

in connection with ELO, the DWCD contributes to the development of a

Commercial Waste Offering by providing support to the Customers, Strategy

and Innovation Department and to the business units. The DWCD proposes

industrial partnerships necessary to the implementation of the selected strategies,

has them approved as necessary, and leads their establishment.

The DWCD coordinates regional economic development for which AREVA is

responsible near waste disposal sites.

6.4.1.4.2.

AREVA Projects

Businesses

AREVA Projects concentrates expertise in nuclear fuel cycle engineering for

the facilities of the group and of external customers. Its services range from

engineering for operator support to full engineering, procurement, construction

and management (EPCM) assignments.

Its scope of intervention covers all of the group’s operations: mining, uranium

chemistry, enrichment, nuclear fuel, used fuel recycling, dismantling and waste

management. AREVA Projects also intends to contribute to the group’s growth

objectives through reasonable development in non-fuel-cycle nuclear and in non-

nuclear applications.

AREVA Projects draws on more than 40 years of operating experience in the

design and construction of plants which are unique in the world (la Hague, MELOX

and others), as well as on flagship projects conducted over the past 10 years in

northwestern and southeastern France: projects to renovate AREVA’s industrial

plants, waste retrieval and packaging at la Hague, the Georges Besse II enrichment

plants, and uranium chemistry facilities for Comurhex II Tricastin and Malvési.

AREVA Projects also has recognized skills in the management and execution of

international projects: the Rokkasho-Mura recycling plant in Japan built on the la

Hague model; the MOX Fuel Fabrication Facility (MFFF) in the United States; and,

in the future, the recycling plant in China.

Operations and highlights

The year of 2016 was a pivotal one for the group’s engineering organization. On

July 1, 2016, as part of the AREVA group’s transformation, the group’s engineering

teams were reorganized, starting from a pooled structure (cross-business operating

department then called the Engineering and Projects Organization, E&P) into an

engineering organization for reactors and a second engineering organization for

the fuel cycle.

As part of that reorganization, the engineering teams whose work concerned the

fuel cycle facilities and plants were combined in the AREVA Projects Business Unit

of NewCo. The last stage in the structuring of fuel cycle engineering was completed

with the contribution of assets corresponding to the creation of a legal entity, AREVA

Projects SAS, at December 31, 2016.

AREVA Projects is the leading engineering organization for NewCo’s capital

projects. Its position is formalized with the group’s other business units by means

of an internal framework agreement for the period 2017 to 2021.

Human and industrial resources

The AREVA Projects Business Unit currently has teams in place at three main

engineering sites in France: Saint-Quentin-en-Yvelines (Ile-de-France Region),

Bagnols-sur-Cèze (Gard Department) and Equeurdreville (Manche Department).

AREVA Projects also has a unique research and development facility, the HRB

center at Beaumont, close to the AREVA la Hague site.

The AREVA Projects Business Unit is based in the United Kingdom via its subsidiary

Risk Management Consulting Ltd (RMC). Located mainly inWarrington (Cheshire,

northeastern England), Abingdon (near Oxford in the southeast) and Dounreay

(Scotland), the 90-person team specializes in safety analyses, waste studies and

engineering for dismantling for all British nuclear sites.

At December 31, 2016, the AREVA Projects Business Unit had a total of

1,452 employees.

The AREVA Projects Business Unit has major assets: the skills and commitment of

its employees; processes, technologies and provenmanagement skills for complex

projects; and operating experience harvested from the design and construction of

plants which are world firsts.

In addition to these assets, and to meet the need for external growth in a very tight

engineeringmarket, the business unit’s management has opted for a “pared down”

organization serving the customer’s exact needs by improving its competitiveness

and adapting its methods.

Relations with customers and suppliers

In addition to the AREVA group’s historical customers – operators of plants which

separate, treat, recycle and package nuclear materials – AREVA Project’s mission

is to diversify by developing a direct relationship with the group’s other external

customers and by promoting its design engineering know-how encompassing

issues related to construction, startup, operation and nuclear industry safety

requirements. In this regard, the AREVA Projects Business Unit works closely with

the AREVA NC teams to offer its international customers solutions specific to their

needs, based on technologies which have been proven in the group’s plants.

Market and competitive position

The AREVA group’s external market is highly competitive. Efforts to enhance

competitiveness and performance in connection with the group’s operational

excellence initiative have put AREVA Projects in a position to offer competitive,

differentiating services.

AREVA Projects is positioned in markets for engineering consulting; contracting

authority assistance; project management; design and engineering; startup; and

plant operating support. The principal French customers with which the AREVA

Projects Business Unit is in contact are the Commissariat à l’énergie atomique et

aux énergies alternatives (CEA), the International Thermonuclear Experimental

Reactor project (ITER), the French National RadioactiveWasteManagement Agency

(Andra), and EDF.

Internationally, the AREVA Projects Business Unit is present in the United Kingdom,

Japan and China, in partnership with NewCo businesses such as the Recycling

business, or directly with the customers, depending on their requirements.

AREVA Projects works on the design and construction of new facilities, on the

renovation of existing facilities, and on the design of units for waste retrieval and

packaging and for nuclear materials treatment and recycling.

Its teams are also prospecting in non-nuclear fields close to its reference businesses,

including facilities using complex processes or operating in an environment

presenting risk.

Outlook and development goals

In an environment where the historical markets for fuel cycle engineering are

undergoing profound change due to a number of factors, AREVA Projects will

seek growth in France, in Europe and of course in Asia, where engineering teams

are actively working with teams from the Recycling business to finalize negotiations

for a recycling plant in China and two vitrification facilities.

Negotiations for the recycling plant in China met a major milestone with the

finalization of the application for approval which CNNCmust submit to its regulatory

authorities. Concerning the vitrification facilities, competitive dialogue was carried

out in 2016, and AREVA is ready to submit its offer as soon as the final specifications

have been received from CNNC in order to finalize negotiations.

2016 AREVA

REFERENCE DOCUMENT

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