Areva - Reference Document 2016

BUSINESS OVERVIEW

6.4 Operations

In addition to the recycling project in China, AREVA Projects is engaged in significant

opportunities in Europe, especially in France and the United Kingdom, related to

the implementation of new projects (such as ITER); to the renovation of production

plants and research facilities (notably those of the CEA); and to dismantling and

legacy waste management (in particular at Sellafield in the United Kingdom).

6.4.1.4.3.

AREVA Med

Alpha therapy

AREVA Med is the medical subsidiary of AREVA. Established in 2009, it develops

innovative therapies to fight cancer. Following an R&D program launched in 2005,

AREVAMed developed a unique process for extracting highly pure lead-212 (

212

Pb),

a particularly rare radioactive isotope. AREVAMed’s lead-212 is currently the focus

of promising research projects in nuclear medicine, and new treatments to fight

cancer are currently being developed. When it involves the use of antibodies, this

innovative approach is also called radioimmunotherapy.

Operations

AREVA Med’s mission is to develop effective, targeted therapies to fight cancer,

with two main objectives:

produce highly pure lead-212 to meet clinical development needs;

participate in the development of innovative treatments using AREVA Med’s

lead-212.

AREVA Med built the Maurice Tubiana Laboratory in Bessines-sur-Gartempe, in

France’s Limousin region, to produce highly pure lead-212 for clinical development

needs. Production began in 2013. In April 2016, to expand its industrial footprint,

AREVA Med started up a new production unit near Dallas, Texas in the United

States. Called the Domestic Distribution and Production Unit (DDPU), this unit also

houses the operations of its subsidiary Macrocyclics.

In 2012, AREVA Med signed a strategic alliance with Roche, a pharmaceuticals

laboratory, to create a new advanced platform for alpha radioimmunotherapy. The

alliance is currently focusing its efforts on the development of therapies to meet

needs that are not otherwise covered. As part of their partnership, Roche and

AREVA Med built a joint research laboratory called ARCoLab (AREVA Med Roche

Common Laboratory) in the Limousin region, which began operating in 2013.

Roche and AREVA Med continued their joint efforts in 2016.

In 2015 and 2016, AREVA Med signed three new partnership agreements to co-

develop new alphatherapy treatments:

with Radiomedix, to target neuroendocrine tumors;

with Morphotek, to target the vascularization of solid tumors;

with Nordic Nanovector, to target leukemia.

AREVA Med began the first Phase 1 clinical trial with lead-212 in 2012, targeting

intra-abdominal HER2-expression cancers (such as ovarian cancer). The recruitment

of patients for this unprecedented clinical trial was completed in 2014, and the

most recent scientific results of the trial were published in the

American Journal of

Clinical Oncology

at the end of 2016.

Lastly, in 2015, the CARAT project (Consortium for Applications of Radio Alpha

Therapy), which seeks to develop a French network of excellence in nuclear

medicine based on lead-212, received nearly 10 million euros in funding under

the Investments for the Future Program led by the Commissariat Général à

l’Investissement (CGI). Coordinated by AREVA Med, CARAT brings together the

Eveon and Triskem International companies, the University Hospital Center of

Limoges, the CRIBL Laboratory of the University of Limoges, and Subatech. This

partnership continued according to plan in 2016.

At December 31, 2016, AREVA NP’s operations were divided into two subsets:

operations held for sale to EDF and to strategic investors, which combine the

operations composing the new company temporarily called “New NP” (Fuel,

Installed Base, Large Projects (excluding the OL3 project), Components,

Technical and Engineering Department, and Instrumentation and Control); and

the continuing operations of AREVA NP, but which will remain with AREVA SA,

concerning the management of the OL3 project, whose mission is to complete

the Olkiluoto 3 EPR reactor project in Finland with the necessary resources and

in compliance with its contractual obligations.

Key figures

2016

2015

Revenue*

(in millions of euros)

3,101

3,566

Operating income

(in millions of euros)

Workforce at year end**

15,115

16,035

* Contribution to consolidated revenue.

** Workforce consistent with the breakdown by operation shown in Chapter 17,

Employees.

6.4.2.

AREVA NP OPERATIONS

2016 AREVA

REFERENCE DOCUMENT