MHI Completes Investment in Orano (formerly “New AREVA Holding”)

February 26, 2018

— Move to Strengthen Ties between Japanese and French Nuclear Energy
Industries —

5 percent equity stake in Orano acquired based on formal
agreement signed in March 2017
Technological and business cooperation ties to be enhanced,
strengthening global value chain for nuclear energy

TOKYO–(BUSINESS WIRE)–Mitsubishi Heavy Industries, Ltd. (MHI)(TOKYO:7011) has completed
investment into Orano, a newly formed company created as part of the
reorganization of the AREVA Group. Orano primarily focuses on the fuel
cycle business, including uranium mining, enrichment and conversion and
reprocessing of spent fuel. Previously referred to as “New AREVA
Holding”, Orano possesses advanced technological and marketing strengths
within the global nuclear energy industry, and the new company is
expected to achieve solid growth going forward. MHI has acquired a 5
percent equity stake in Orano with a total investment outlay of
approximately 250 million euros. With the completion of this investment,
MHI will now pursue deeper, more expansive human and technological
exchange with Orano.

MHI has built strong ties with France’s nuclear energy industry over
many years. In 1991, in partnership with AREVA NC (now a subsidiary of
Orano) MHI established a joint venture in the fuel cycle business that
engages in the manufacture and sale of a full range of reprocessing
equipment. In 2007, MHI and AREVA NP (now Framatome) began development
of a pressurized water reactor (PWR) nuclear power plant (NPP)
integrating their technologies, culminating in the development of
ATMEA1, a state-of-the-art PWR NPP in the 1200 MWe (megawatt electrical)
class. Since its introduction, prospects for ATMEA1 sales have been
expanding worldwide, especially in emerging economies where new NPP
construction projects are moving forward.

Through its investment in Orano, MHI looks to support the company’s
future growth strategies. Further, by strengthening cooperation in
technology and business operations, MHI aims to play an important role
in forging stronger links between the Japanese and French nuclear energy
industries, as confirmed by the two countries’ governments in October
2015, with the ultimate goal of strengthening their global value chain
in the nuclear energy business.

Commenting on the completed investment, MHI President and CEO Shunichi
Miyanaga said, “For many years Orano has lent its support to the
development of nuclear power generation in Japan. Now, with completion
of our investment into Orano, our partnership will become even stronger.
I have high hopes that we will be able to further improve the safety and
reliability of nuclear power generation, thereby contributing to stable
global energy supplies and reduced carbon dioxide emissions.”

In parallel with the Orano investment, in late December MHI completed an
investment in Framatome, a newly established group company of
Electricité de France (EDF) specializing in the design and manufacture
of NPP equipment and systems. By strengthening the relationship between
manufacturers in Japan and France, every effort will be made to expand
and improve structurally as a comprehensive manufacturer capable of
supporting the global nuclear power generation business in all aspects;
from production of nuclear fuel to plant design, construction and
maintenance, and reprocessing of spent fuel.

About Mitsubishi Heavy Industries Group
Mitsubishi
Heavy Industries, Ltd. (MHI), headquartered in Tokyo, is one of the
world’s leading industrial firms with 80,000 group employees and annual
consolidated revenues of around 38 billion U.S. dollars. For more than
130 years, the company has channeled big thinking into innovative and
integrated solutions that move the world forward. MHI owns a unique
business portfolio covering land, sea, sky and even space. MHI delivers
innovative and integrated solutions across a wide range of industries
from commercial aviation and transportation to power plants and gas
turbines, and from machinery and infrastructure to integrated defense
and space systems.
For more information, please visit MHI’s
website: www.mhi.com/index.html
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