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BUSINESS OVERVIEW

06

6.4 Operations

the French nuclear safety authority ASN. On December 12, 2015, ASN validated

the test programproposed by AREVA concerning the bottom head and the closure

head of the Flamanville 3 reactor vessel. That program aims to demonstrate the

mechanical properties of those parts in connection with the fitness for service

report required by ASN.

The test program was launched in late 2015 and ended on December 7, 2016.

Tests were carried out on vessel bottom heads and closure heads analogous to

those of the Flamanville 3 EPR reactor. The toughness properties measured in

sacrificial parts meet the expectations of ASN’s follow-up letter of December 2015;

they are in the high end of the range of what was anticipated by AREVA’s experts.

An independent, external organization was chosen by EDF and ASN to monitor

these tests. All three of them were therefore associated in the program of analysis.

New Build projects

SOUTH AFRICA

The South African government is currently in the process of revising its energy

plan to 2050. A public debate has been opened and will run until February 2017.

The project will be consolidated after this debate and submitted to the Council of

Ministers for a decision, with promulgation of the plan not expected to occur before

April 2017. In fact, the base scenario postpones the startup of nuclear power as

from2037 andmaintains the long-term target of 20GWof nuclear electricity. AREVA

will participate as a member of the French team. The South African government

is supposed to send the call for proposals to the governments of countries whose

technology corresponds to South Africa’s requirements.

SAUDI ARABIA

Saudi Arabia plans to build several sets of reactors for generating capacity of

17.6 GWe by 2040. In June of 2015, the Ministry of Foreign Affairs and the King

Abdullah City for Atomic and Renewable Energy (KACARE) signed a letter of intent

to launch a feasibility study for the construction of two EPR reactors in Saudi Arabia.

The next stage will be to create a regulatory authority and a legal framework for the

construction and operation of nuclear reactors in Saudi Arabia, with the cooperation

of the Finnish nuclear safety authority STUK, which has been appointed to provide

support to KACARE.

INDIA

In 2015, AREVA signed a contract with NPCIL for pre-engineering studies on

the Jaitapur EPR project and a Memorandum of Understanding (MOU) with

the engineering company Larsen & Toubro to examine areas for cooperation in

connection with the project. Both of those activities are advancing according to plan.

The objective is to continue preparations for certification of the EPR reactor in India

by the Indian safety authority and to finalize the project’s financial and economic

conditions in particular as well as its technical specifications. EDF has now taken

leadership for the industry.

POLAND

Poland wishes to include nuclear power in its energy mix and is considering

the installation of 6 GWe of nuclear generating capacity by 2035. The choice of

technology could be made in 2018.

A new government was formed in Poland in October 2015. PGE started the

environmental impact study process in November. AREVA worked with EDF to

plan for a possible call for proposals and attended different seminars, for which

they signed a “Statement of Participation”.

CZECH REPUBLIC

OnMay 18, 2015, the government of the Czech Republic approved the new version

of the country’s Energy Policy for the next 25 years.

This document includes the “National Action Plan for the Development of Nuclear

Energy in the Czech Republic”, which calls for the finalization of the construction

of additional nuclear units aimed at producing 20 TWh of power by 2035; lifecycle

extension of four units of the Dukovany power plant (raising it from 50 years to

60 years); and, gradually, the possible construction of additional units to replace

that power plant.

With support fromAREVA, EDF responded to a Request for Information (RFI) issued

by the Czech Ministry of Industry and Trade. The RFI concerns two units, one at

the Dukovany site and the other at the Temelin site.

UNITED KINGDOM – HINKLEY POINT C

At the end of September 2016, AREVA signed contracts with EDF and Nuclear

New Build Generation Company (NNB), a joint venture between the EDF group

and the Chinese group China General Nuclear Corporation (CGNC), which define

the basis for its work on the project.

AREVA was awarded several subcontracts for this project.

AREVA NP will be in charge of:

p

the delivery of two nuclear steam supply systems (NSSS), including their design,

procurement and startup;

p

the execution and supply of the power plant’s operational and safety

instrumentation and control system;

p

the fabrication of the fuel needed to operate the two NSSS.

AREVA will supply the necessary materials for fuel fabrication by producing the

uranium and providing conversion and enrichment services.

Execution of these contracts began in early January 2017 following the fulfillment

of all of the preconditions.

The transformation of the French nuclear industry decided by the French State

in 2015 could have an impact on the distribution of the scope of supply.

TURKEY – SINOP PROJECT

In September 2016, AREVA NP signed a preliminary engineering contract withMHI

to support the technical and cost feasibility study for the proposed construction and

operation of four ATMEA1 reactors at the Sinop site in Turkey.

The ATMEA company signed a license agreement making the ATMEA1 technology

available to MHI and AREVA NP for purposes of this feasibility study.

Human and industrial resources

The Large Projects Business Unit’s teams are located in France, Germany, Finland

and China.

Relations with customers and suppliers

The Large Projects Business Unit’s customers are utilities from all over the world,

including both well-established companies and newcomers to the market.

The entity offers reactor solutions that are synergistic with the group’s other

operations, such as the Component Business Unit, the Fuel Business Unit and the

Installed Base Business Unit.

2016 AREVA

REFERENCE DOCUMENT

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