Areva - Reference Document 2016

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RESEARCH AND DEVELOPMENT PROGRAMS, PATENTS AND LICENSES

11.1 Research and Development

In the group’s twomain companies, NewAREVAHolding (“NewCo”) andAREVANP, the principal research and development programs concerned: p New AREVA Holding (“NewCo”): ○ development and upgrading of production capabilities in the front end of the cycle, ○ preliminary design of new treatment and recycling plant processes, and maintenance and performance improvement at existing plants, ○ development of new shipping casks for nuclear materials and waste, ○ development of methods and tools to support dismantling activities;

○ completion of detailed generic design studies for the Atmea1 reactor in partnership with MHI, ○ development of advanced instrumentation and control products and systems for new power plants or the renovation of existing power plants, ○ development of advanced tools and methods to support design and services provided to operators, ○ evaluation of advanced concepts such as fast neutron reactors (support for the CEA’s Astrid demonstrator project) and small modular reactors (SMR) with AREVA TA, ○ performance improvement in equipment manufacturing, particularly forgings. Research and development costs recognized as expenses under the gross margin of the group’s combined subsidiaries (continuing operations and operations held for sale) represented a cumulative total of 167million euros in 2016, compared with 202 million euros in 2015. Mineral exploration costs amounted to 32 million euros in 2016, compared with 35million euros in 2015. The Research Tax Credit came to 58 million euros and was stable compared with 2015. In addition, 33 million euros in R&D costs were capitalized in 2016, compared with 39 million euros in 2015. p to develop innovative solutions by strengthening AREVA’s ties with external partners – laboratories, small andmediumbusinesses, start-ups, venture capital funds, etc. Focus on the Open Innovation initiative, the AREVA portal for small and medium business innovation The AREVA Innovation PME initiative seeks to foster collaborative innovation between AREVA and start-ups and small and medium businesses in France ( PME: petites et moyennes entreprises ). Working with the group’s employees, AREVA Innovation PME identifies and evaluates the best innovation solutions developed by start-ups and small and medium businesses that may be able to meet some of the challenges facing AREVA and its customers. AREVA Innovation PME is built on a win-win approach for start-ups and small and medium businesses, for the French industrial ecosystem, and for AREVA. A website devoted to innovation (www.innovationpme.areva.com) was created to give small and medium businesses a broader view of AREVA’s innovation needs. AREVA puts challenges on the website for which small andmediumbusinessesmay be able to propose innovative solutions. They can also offer solutions unprompted by any bidding process. Proposed solutions are reviewed by a panel of the group’s experts. As of the end of 2016, close to 25 AREVA challenges had been posted and more than 1,000 small and medium businesses were registered on the dedicated portal, submitting more than 300 innovative solutions, a hundred of which made the short list for evaluation. Some 20 contracts had been signed as of the end of 2016 in thematic areas such as: p “Inspection and measurement assistance in difficult-to-access areas”: indoor drones, virtual-on-actual projection, an inflatable robotic arm and a miniaturized wireless sensor; p “Contact maintenance planning and worker assistance”: contactless tool for three-dimensional inspection of complex shapes, hybrid laser welding head, and virtual reality training of operators on a pole crane; p “Augmented operator”: harvesting and transmission of virtual reality knowledge, voice transcription of project follow-up documentation, bone conduction communication system and exoskeletons.

AREVA NP: ○ development of next-generation and advanced fuels,

p

○ continuation of a basic design study in partnership with EDF for an optimized EPR reactor to meet requirements for the replacement of EDF’s fleet (“EPR NM” project),

11.1.2. OVERALL ORGANIZATION OF RESEARCH AND DEVELOPMENT

Research, development and innovation are one of the pillars of the group’s strategy, enabling it to ensure its competitiveness and to create new growth opportunities. AREVA has a single Research, Development and Innovation function shared by all subsidiaries. By functioning in integrated mode, the group is able to share best practices across all entities. This boosts the effectiveness of programs conducted in fields as varied as knowledge and expertise management, the protection of intellectual assets, and innovation. It also helps initiate and ultimately manage and fund projects at the corporate level when they serve several group subsidiaries or are longer term. R&D projects cover a broad spectrum of technological fields, from uranium ore extraction to the treatment and recycling of nuclear fuel. All R&D projects help to improve existing products, services and processes, or to create new ones. AREVA’S INNOVATION INITIATIVE AREVA’s innovation initiative draws on a wide network of contacts in the operating and functional entities. Starting from a shared goal – “To convert employees’ innovative ideas into drivers for performance and differentiation so that new AREVA activities can emerge” – it is reinforced by programs that open a door to our ecosystem: “associating innovative solutions developed in other fields of activity with our development projects.” AREVA’s innovation initiative is expressed in five major objectives: p to create value in the near and medium terms by identifying and developing new ideas and by accelerating innovation projects throughout the group’s footprint; p to boost development and ensure business continuation by speeding up the time-to-market for innovative technical and non-technical solutions; p to stimulate digital innovation and support the group’s digital transformation; p to create and reinforce our culture of innovation;

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2016 AREVA REFERENCE DOCUMENT