Areva - Reference Document 2016

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BUSINESS OVERVIEW

6.4 Operations

Human and industrial resources The Nuclear Logistics business carries out nearly 6,000 shipments each year. It is based in several regions of the world: p in Europe, the business designs casks and commissions shipments of nuclear materials. Its subsidiaries LMC andMainco carry out road shipments and provide industrial logistics services respectively; p in the United States, the entity and its subsidiary CHT design, manufacture and sell storage casks to US nuclear utilities. They are also active in the front end of the nuclear cycle. Its operations are based at four sites, in Columbia, Maryland; Aiken, South Carolina; Kernersville, North Carolina; andMoyock, North Carolina; p in Japan, its entity provides engineering; studies, transportation, and the sale and maintenance of fuel casks for Japanese power companies; p in Niger, the Nuclear Logistics business ships mining concentrates; p in China, the Logistics Business Unit has a team dedicated to the development of future operations. The Nuclear Logistics business has the necessary resources to manufacture shipping and storage casks. It has a fleet of transportation equipment, including casks and road and rail resources, and it operates road, rail and sea terminals. To accomplish its mission of supervising the AREVA group’s transportation operations, the business has an organization that manages risks and sets up appropriate action plans to manage any emergency at any location, in liaison with the public authorities. Its real-time transportation tracking center gives it a continuous stream of information on transportation operations. Relations with customers and suppliers AREVA TN’s customers are utilities, research reactor operators and fuel cycle companies, as well as institutes, laboratories and research centers working in the nuclear field, all of which seek solutions for the shipment of radioactive materials, for materials storage and for the management of their logistics chain. AREVA TN relies on a diversified international network of partners and suppliers for all of its shipments and key components. Market and competitive position The Nuclear Logistics business is active in every stage of the nuclear fuel cycle, worldwide. The business of nuclear materials transportation and of nuclear materials storage/ shipping cask design is characterized by the diversity of materials involved, the international and competitive nature of the markets, and the strict and changing regulatory framework, which differs according to each transportation mode and each country. Sales were evenly distributed among France, Europe, North America and Asia. The Nuclear Logistics business offers comprehensive management of the logistics chain and has strengthened its position in securing supplies for the nuclear sites. Operations in the front end of the fuel cycle are deployed around the globe. In recent years, the Nuclear Logistics business has strengthened its position in this market, in particular through shipments for AREVA’s uranium mines and fuel fabrication plants, with support from solid partners. In the back end of the fuel cycle: p in Europe, EDF continues to be the leading shipper of used fuel to the la Hague recycling plant, followed by other international power companies which have opted for recycling and by certain research reactors; p in the United States, the Nuclear Logistics business is a leading player in the market for the dry storage of used fuel;

p in Asia, the Nuclear Logistics business is mainly present in Japan, where it carries out fuel and nuclear waste shipments between Europe and Japan. It also supplies storage racks to nuclear reactors in China. Outlook and development goals The Nuclear Logistics business continues to develop internationally to strengthen its position as a leading player in its business areas. Businesses The Dismantling and Services business offers customers a broad range of services covering three main types of operations: p nuclear facility dismantling operations across the entire value chain: radiological characterization of facilities to be dismantled, cleanup, deconstruction, operation of facilities during dismantling and of the support facilities, and redevelopment of the land and buildings. Numerous facilities built in the 1950s and 1960s have reached the end of their operating period. Their dismantling and the rehabilitation of their host sites, in particular to allow new projects to be located there, represent a major industrial challenge. The Dismantling and Services business (D&S) is a managing contractor for facilities that have been shut down, provides dismantling studies and project management, and carries out dismantling operations; p waste management operations, whether the waste comes from the production and operation of nuclear facilities, from dismantling operations, or from major maintenance operations. The Dismantling and Services business also contributes to major projects for the retrieval and packaging of legacy waste stored at the sites pending the availability of disposition methods; p services to nuclear operators include nuclear logistics and project support, facility maintenance, radiological safety of workers and facility operations. These operations mostly involve nuclear facilities currently in production, which must ensure the best nuclear safety performance at all times, preserve assets, plan for the future and control costs. Operations and highlights In 2016, the Dismantling and Services business (D&S) won several significant projects, strengthening its position as a major player in the markets for dismantling, waste management and services to nuclear operators in France. Commercially, D&S exceeded its objectives, winning significant contracts with its main customers, the CEA and EDF, particularly in the field of services. For example, D&S won a request for proposals with EDF relating to project support activities for reactors in the French nuclear fleet. The business unit was also chosen by the CEA at Cadarache to manage storage facilities for low- and medium-level radioactive waste. Operationally, 2016 saw the completion of the major project to dismantle the ATPu and LPC nuclear facilities at Cadarache. This is a first in the dismantling of a MOX fuel fabrication plant. Up to 300 people were mobilized at the peak of the project, which involved the deconstruction of 462 glove boxes, more than 30 tanks and 4 kilometers of piping. In addition, the teams of the Triade facility operated by D&S successfully treated very low-level mercury metal in 2016, enabling its acceptance in an Andra disposal center. This was achieved with the use of a process patented by a D&S entity, which opens the way to a new waste treatment method. 6.4.1.3.3. Dismantling and Services (D&S)

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2016 AREVA REFERENCE DOCUMENT