Areva - Reference Document 2016

06

BUSINESS OVERVIEW

6.4 Operations

In Kazakhstan, AREVA was selected as a technology provider for the construction of a 200-metric-ton fuel fabrication plant for Ulba-Fa, a joint venture between Kazatomprom and CGN. In conclusion, the streamlining of its production plants and the development of partnerships and technology supply contracts in Asia and elsewhere, and the deployment of a new generation of products combined with a very comprehensive range of fuel services will enable the Fuel business to optimize its position in an evolving market and to secure its market share by expanding its commercial positions in all regions.

The cavitation peening process developed in 2014 was successfully implemented for the first time on the vessel closure heads of the Byron and Braidwood reactors. AREVA signed several contracts with US utilities for engineering services, in particular contracts for strategic cybersecurity expertise. These services will enable the group’s customers to improve the digital protection systems of their nuclear power plants The Installed Base Business Unit continues to adapt its structure to the market environment in response to the US utility initiative “Deliver the Nuclear Promise” launched at the end of 2015, which aims to enhance power plant safety and performance and to significantly reduce costs. FRANCE AREVA had a large volume of operations in the services field in France, in particular to support EDF’s Major Retrofitting Program (“ Grand Carénage” ). AREVA signed a multi-year contract to service equipment in the primary cooling system of EDF’s 1,300 MWe reactors, among others. AREVA began, and continues, operations to upgrade the instrumentation and control systems of the Paluel and Cattenom power plants. Additionally, a multi-year contract was signed for similar work to be carried out at EDF’s 900 MWe power plants. Henceforth, this work will be carried out by the Instrumentation and Control Business Unit created in 2016. In April, unfortunately, a steam generator fell in the Paluel 2 power plant during work performed by a short-term joint venture in which AREVA is a stakeholder. It is working closely with EDF and the French nuclear safety authority ASN to resolve the incident and resume the steam generator replacement operations. AREVA’s teams also provided support for investigations in progress on subjects involving carbon segregation in certain forgings produced by Creusot Forges and JCFC which are used in certain equipment in the French reactor fleet. In particular, they took a number of measurements and in some cases took samples from the sites. Themaintenance teams also worked on long unit outages in England at the Sizewell power plant, and in South Africa. AREVA signed an extension to the collaboration agreement with the CEA valued at several tens of millions of euros for its participation in the design phase of the technology demonstration project for the Generation IV reactor known as Astrid. Human and industrial resources Historically, the Installed Base Business Unit’s teams are located in France, the United States and Germany, but they are also present in China, Sweden, Spain, Canada, Slovakia, South Africa and elsewhere. These decentralized units are staffed with highly qualified specialists and offer personalized, localized service to their customers to help them comply with national regulations. In addition, the business unit has workshops in Europe and the United States for offsite maintenance, to develop its equipment and to store its tools, as well as three facilities dedicated to personnel training and instruction, one in France co-owned by the EDF group and AREVA (Cetic), one in Germany, and one in the United States.

6.4.2.1.2.

Installed base

Businesses The scope of the Installed Base Business Unit covers:

p products and services to maintain, upgrade and extend the operating period of reactors in service; p nuclear and specialized engineering services related to the operation and maintenance of nuclear reactors; p products and solutions for the installation and commissioning of new reactors; p projects to install and/or replace heavy components, mobile components, and large forgings and castings. The Installed Base business’s portfolio of solutions and services aims to improve the safety, availability and economic performance of nuclear power facilities. Operations and highlights Noteworthy among the key highlights of 2016 was the German platform’s significant commercial successes with international customers, securing its operations even as Germany phases out nuclear power. For example, several multi-year services and engineering contracts were signed with Swiss, Spanish and Brazilian utilities. The German platform also contributed to AREVA’s commercial successes in China. ASIA AREVA recorded commercial successes for different product lines, giving shape to its localization strategy in China and enabling it to take advantage of market growth. In South Korea, AREVA consolidated in the market for reactor coolant pump upgrades. NORTH AMERICA AREVA was awarded a contract valued at several tens of millions of dollars to manufacture and install heat exchangers in the secondary cooling system of the Palo Verde power plant in Arizona. Through its Steam Generator Technology joint venture (SGT), AREVA signed a contract valued at several tens of millions of dollars for engineering studies and on-site steam generator replacement operations at a US power plant. The maintenance teams worked in several US power plants for long unit outages, successfully and simultaneously performing various important repairs, particularly during the spring and autumn operating peaks.

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2016 AREVA REFERENCE DOCUMENT