Areva - Reference Document 2016

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BUSINESS OVERVIEW

6.4 Operations

the French nuclear safety authority ASN. On December 12, 2015, ASN validated the test programproposed by AREVA concerning the bottom head and the closure head of the Flamanville 3 reactor vessel. That program aims to demonstrate the mechanical properties of those parts in connection with the fitness for service report required by ASN. The test program was launched in late 2015 and ended on December 7, 2016. Tests were carried out on vessel bottom heads and closure heads analogous to those of the Flamanville 3 EPR reactor. The toughness properties measured in sacrificial parts meet the expectations of ASN’s follow-up letter of December 2015; they are in the high end of the range of what was anticipated by AREVA’s experts. An independent, external organization was chosen by EDF and ASN to monitor these tests. All three of them were therefore associated in the program of analysis. SOUTH AFRICA The South African government is currently in the process of revising its energy plan to 2050. A public debate has been opened and will run until February 2017. The project will be consolidated after this debate and submitted to the Council of Ministers for a decision, with promulgation of the plan not expected to occur before April 2017. In fact, the base scenario postpones the startup of nuclear power as from2037 andmaintains the long-term target of 20GWof nuclear electricity. AREVA will participate as a member of the French team. The South African government is supposed to send the call for proposals to the governments of countries whose technology corresponds to South Africa’s requirements. SAUDI ARABIA Saudi Arabia plans to build several sets of reactors for generating capacity of 17.6 GWe by 2040. In June of 2015, the Ministry of Foreign Affairs and the King Abdullah City for Atomic and Renewable Energy (KACARE) signed a letter of intent to launch a feasibility study for the construction of two EPR reactors in Saudi Arabia. The next stage will be to create a regulatory authority and a legal framework for the construction and operation of nuclear reactors in Saudi Arabia, with the cooperation of the Finnish nuclear safety authority STUK, which has been appointed to provide support to KACARE. INDIA In 2015, AREVA signed a contract with NPCIL for pre-engineering studies on the Jaitapur EPR project and a Memorandum of Understanding (MOU) with the engineering company Larsen & Toubro to examine areas for cooperation in connection with the project. Both of those activities are advancing according to plan. The objective is to continue preparations for certification of the EPR reactor in India by the Indian safety authority and to finalize the project’s financial and economic conditions in particular as well as its technical specifications. EDF has now taken leadership for the industry. POLAND Poland wishes to include nuclear power in its energy mix and is considering the installation of 6 GWe of nuclear generating capacity by 2035. The choice of technology could be made in 2018. A new government was formed in Poland in October 2015. PGE started the environmental impact study process in November. AREVA worked with EDF to plan for a possible call for proposals and attended different seminars, for which they signed a “Statement of Participation”. New Build projects

CZECH REPUBLIC OnMay 18, 2015, the government of the Czech Republic approved the new version of the country’s Energy Policy for the next 25 years. This document includes the “National Action Plan for the Development of Nuclear Energy in the Czech Republic”, which calls for the finalization of the construction of additional nuclear units aimed at producing 20 TWh of power by 2035; lifecycle extension of four units of the Dukovany power plant (raising it from 50 years to 60 years); and, gradually, the possible construction of additional units to replace that power plant. With support fromAREVA, EDF responded to a Request for Information (RFI) issued by the Czech Ministry of Industry and Trade. The RFI concerns two units, one at the Dukovany site and the other at the Temelin site. UNITED KINGDOM – HINKLEY POINT C At the end of September 2016, AREVA signed contracts with EDF and Nuclear New Build Generation Company (NNB), a joint venture between the EDF group and the Chinese group China General Nuclear Corporation (CGNC), which define the basis for its work on the project. AREVA was awarded several subcontracts for this project. AREVA NP will be in charge of: p the delivery of two nuclear steam supply systems (NSSS), including their design, procurement and startup; p the execution and supply of the power plant’s operational and safety instrumentation and control system; p the fabrication of the fuel needed to operate the two NSSS. AREVA will supply the necessary materials for fuel fabrication by producing the uranium and providing conversion and enrichment services. Execution of these contracts began in early January 2017 following the fulfillment of all of the preconditions. The transformation of the French nuclear industry decided by the French State in 2015 could have an impact on the distribution of the scope of supply. TURKEY – SINOP PROJECT In September 2016, AREVA NP signed a preliminary engineering contract withMHI to support the technical and cost feasibility study for the proposed construction and operation of four ATMEA1 reactors at the Sinop site in Turkey. The ATMEA company signed a license agreement making the ATMEA1 technology available to MHI and AREVA NP for purposes of this feasibility study. Human and industrial resources The Large Projects Business Unit’s teams are located in France, Germany, Finland and China. Relations with customers and suppliers The Large Projects Business Unit’s customers are utilities from all over the world, including both well-established companies and newcomers to the market. The entity offers reactor solutions that are synergistic with the group’s other operations, such as the Component Business Unit, the Fuel Business Unit and the Installed Base Business Unit.

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2016 AREVA REFERENCE DOCUMENT