Areva - Reference Document 2016

06

BUSINESS OVERVIEW

6.4 Operations

Outlook and development goals The Technical and Engineering Department was created on July 1, 2016 with teams from the Products and Technologies Business Unit and from the Engineering and Projects Organization. This entity’s mission is to support the operations of AREVA NP by offering its skills, making its facilities available, and supplying reliable and effective services. Its efficient solutions support nuclear power plant operators confronted with a difficult financial environment. Its objective is to deliver high performance and high added-value services, and to meet its commitments, especially in terms of quality, schedule and budget. Businesses The Instrumentation and Control Business Unit is responsible for operations in AREVA NP’s core instrumentation and control business: safety instrumentation and control systems, nuclear instrumentation, autonomous systems designed to meet strengthened safety requirements, simulation tools, cybersecurity of instrumentation and control, and technical management of instrumentation and control. The main activities of the business unit are to: p develop proposals for upgrade projects or new construction for internal and external customers; p carry out projects covering the entire specification development cycle at the highest level, from the development of software and hardware to the validation of complete configurations on platforms; p take responsibility or provide support for on-site installation and testing operations and for customer training; 6.4.2.1.6. Instrumentation and Control Human and industrial resources The teams of the Instrumentation and Control Business Unit are located in France, Germany, the United States, Slovakia and China. The business unit has centers for engineering and project execution as well as research and development capabilities and production centers for operations related to specific, critical products in the core business: nuclear instrumentation and safety instrumentation and control. Through one of its French subsidiaries, the business unit also has the ability to offer high-performance simulation tools, software and hardware. Operations and highlights The Instrumentation and Control Business Unit is involved in all of AREVA NP’s projects with an instrumentation and control component. p provide after-sales services for the equipment delivered.

○ the m2C program (twenty 1,300 MWe units) successfully deployed at the Paluel 1 and Catenom 1 reactors. The startup of other installations will occur at each unit outage, ○ the E2C program (thirty-two 900 MWe units), in the design phase; p the Flamanville 3 EPR (“FA3”), for which the instrumentation and control equipment is installed at the site and undergoing testing. FINLAND The Instrumentation and Control Business Unit delivered all of the safety instrumentation and control equipment as well as the operating instrumentation and control equipment to the site of the Olkiluoto EPR project (“OL3”), in strict compliance with the schedule set in September 2013, after receiving approval from the customer TVO and the Finnish safety authority STUK. CHINA The main projects are those of the Taishan 1 & 2 EPR units, for which most of the activity shifted to the site; the DCS Tianwan 3 & 4 project; and the DCS Fuqing units 5 & 6 project. The business unit also has several nuclear instrumentation projects in parallel. ENGLAND The business unit is involved in the Hinkley Point EPR project (“HPC”), for which it is in charge of executing and supplying the operating and safety instrumentation and control systems of the power plant. GERMANY The German teams of the Instrumentation and Control Business Unit, armed with their experience with a number of reactor models, carry out a large number of upgrade projects in Europe. Outlook and development goals To increase its business volume, the Instrumentation and Control Business Unit is pursuing a strategy of development outside of its traditional domestic markets (France, Germany and the United States). In particular, it is targeting China and the international market for VVER reactors. In its traditional markets, the Instrumentation and Control Business Unit’s development strategy aims to provide a broader service to its customers. Consistent with its development strategy, the business unit is pursuing efforts to streamline and expand its product catalogue; boost productivity by perfecting its work methods in engineering and project management; and optimize its industrial base and partnerships. By enhancing its competitiveness and the key differentiators of its instrumentation and control offer, it will strengthen itsmarket share and position. Maintaining the critical skills and experience of the employees of the Instrumentation and Control Business Unit is a major objective, for they add considerable value for the customer over the long term and are key differentiators of AREVA’s offer.

FRANCE The leading projects are:

p programs to upgrade or renovate EDF’s installed nuclear fleet:

6.4.3. OTHER OPERATIONS

The other operations are held for sale or remain within the AREVA SA consolidation scope until they are sold or completed. Two main areas of activity are concerned: p the Propulsion and Research Reactors business led by AREVA TA, which is held for sale; p the Renewable Energies operations (Bioenergies, Energy Storage, Wind Energy and Solar Energy), which are either held for sale or discontinued, in line with

the group’s refocusing on operations related to the fuel cycle and its withdrawal from renewable operations.

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2016 AREVA REFERENCE DOCUMENT