Areva - Reference Document 2016

06

BUSINESS OVERVIEW

6.4 Operations

More generally, as concerns technology, D&S’s know-how was recognized on several occasions in 2016. For example, the business unit won the grand prize in the Nuclear Safety category at the World Nuclear Exhibition (WNE) for its robotic investigation pack comprising the multi-task Riana™ platform and the Dorica™ drone. In addition, other technology developments by D&S in the virtual reality and augmented reality field, such as the simulator of pole crane operations and the Manuela™ real-time radiological mapping tool, contributed to the “Industry of the Future Showcase” label ( Vitrine Industrie du Future ) granted to AREVA. Human and industrial resources The Dismantling and Services business provides services to practically all of the French nuclear sites operated by AREVA, the CEA, EDF and Andra. Its personnel are present at all sites to ensure the quality of the services provided, in compliance with the budget, schedule, and nuclear and occupational safety requirements. It has expertise in the vast majority of techniques suited to the treatment of very low, low, medium and high level effluent and waste, to their volume reduction and to their safe packaging. D&S has operated the Triade environmentally regulated facility (see Glossary ) since 1994, where it maintains machinery and equipment used in controlled areas, recertifies equipment, dismantles tooling and processes waste. Facilities are made available to customers so that they can maintain their tools and equipment in a secure environment. In 2016, D&S continued to lead projects to retrieve legacy waste and dismantle legacy facilities which had been operated by AREVA or for which the group contracted operations. This includes in particular the UP2-400 facilities at the la Hague site and the Eurodif uranium enrichment plant at the Tricastin site. At the same time, the D&S team provided monitoring services for sites where dismantling is now complete, such as the SICN Annecy and Veurey sites or the former chemical plant at Miramas, pending their decommissioning by the nuclear safety authority ASN. In addition, D&S brings its customers unique operating experience from AREVA’s implementation of its end-of-lifecycle obligations in France. Relations with customers and suppliers To improve the competitiveness of its projects, D&S has set up a process for dialogue with its suppliers to strengthen their visibility for the future workload over the short and medium terms and to work on improving performance. Market and competitive position The French dismantling and services market is driven by the new requirements of customers who turn to the group for its know-how. D&S is a major player in that market in France. For facility dismantling, the net present value of provisions for the three main contracting authorities – the CEA, AREVA and EDF – is approximately 30 billion euros. The market will grow significantly in the coming years, led by the ramp- up of dismantling programs, although the general economic situation sometimes leads to a reconsideration of the some project schedules. D&S is a leading player in this effort.

p provide a showcase of its know-how to support the development of AREVA’s dismantling operations internationally. In this vein, in 2016, the D&S teams met their counterparts at the Sellafield site in the United Kingdom to examine opportunities for assistance and expertise that the group might provide to projects conducted on the other side of the Channel. The Dismantling and Services business will growby continuing to expand its offering of activities supported by in-house expertise, and by developing partnerships. The competitiveness of D&S also depends on its investment in technology innovation to serve its customers. In this regard, themarket introduction in 2016 of a simulator cab for polar crane operations in nuclear power plants and of the Manuela™ portable tool for the topographical and radiological mapping of nuclear facilities quickly received positive feedback from several EDF sites. Businesses In operating and dismantling its fuel cycle facilities, AREVA represents only a small fraction of the national radioactive waste inventory. This is due to the design and implementation of effective solutions for the safe, optimized and comprehensive management of radioactive waste management. AREVA assumes responsibility for its waste by continually adopting solutions aimed at reducing their overall impact and by setting aside assets to secure long-term funding for the related expenses. Optimization of a waste method means managing the waste from its generation (aiming for minimization at the source), managing waste flows, sorting, packaging (with or without prior processing), storage, shipment and disposal. The diversity of the group’s operations and businesses, which cover the entire nuclear fuel cycle from the uranium mine to used fuel recycling, multiple related industrial sites, and a variety of resulting primary waste, have led AREVA to develop unique technical, industrial and organizational know-how. Backed by more than 40 years of waste management experience, AREVA’s skills as an integrator of solutions allow an optimum technical and economic balance to be achieved in the implementation of comprehensive waste management methods. This unique know-how goes into serving its customers through tailor-made solutions for the management of all or part of the waste they generate. Radioactive waste management must meet a number of safety, industrial and societal challenges, and AREVA is in constant contact with the various players and stakeholders involved, particularly at the national level. It is an active contributor to the development of the French National Radioactive Materials and Waste Management Plan (PNGMDR) under the aegis of the Ministry of Environment, Energy and Oceans represented by the General Directorate of Energy and Climate and by ASN. Under this plan, an exhaustive inventory of the different radioactive waste management methods is drawn up, and areas for improvement and related actions to be taken are defined. OPERATIONS In 2016, AREVA packagedmore than 10,000 m 3 of waste, including approximately 70% in the very-low-level waste category, 25% in the short-lived low- and medium- level waste category, and 5% in the other categories (including long-lived medium- and high-level waste). Waste categories are described in Appendix 3 of the Reference Document. Comprehensive waste management methods, going up to final disposal, are now operational for 90% of the waste generated each year in France. In addition to adapting its industrial plants, in 2016 AREVA continued to pursue its objectives to optimize operating performance in waste management, in particular through waste reduction at the source; the implementation of advanced characterization, sorting and decontamination solutions; the reduction of final waste volumes through high-performance facilities; and early packaging of waste. 6.4.1.3.4. Waste management Operations and highlights

Outlook and development goals The goals of the Dismantling and Services business are to:

p contribute to AREVA’s performance, in particular by carrying out internal dismantling projects related to end-of-lifecycle operations with optimum nuclear, industrial and occupational safety, while limiting the consumption of provisions;

p assert its position as a leading player in the French market; and

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2016 AREVA REFERENCE DOCUMENT