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  • 1. AREVA Business & Strategy overview June 2009
  • 2. Disclaimer Forward-looking statements This document contains forward-looking statements and information. These statements include financial forecasts and estimates as well as the assumptions on which they are based, statements related to projects, objectives and expectations concerning future operations, products and services or future performance. Although AREVA’s management believes that these forward-looking statements are reasonable, AREVA’s investors and investment certificate holders are hereby advised that these forward- looking statements are subject to numerous risks and uncertainties that are difficult to foresee and generally beyond AREVA’s control, which may mean that the expected results and developments differ significantly from those expressed, induced or forecast in the forward-looking statements and information. These risks include those developed or identified in the public documents filed by AREVA with the AMF, including those listed in the “Risk Factors” section of the Reference Document registered with the AMF on April 15, 2009 (which may be read online on AREVA’s website, www.areva.com). AREVA makes no commitment to update the forward- looking statements and information, except as required by applicable laws and regulations. 3 > Overview – June 2009
  • 3. Agenda 1. Introduction 2. AREVA in a world in crisis 3. Performances and objectives by division 4. Financials 5. Appendixes 4 > Overview – June 2009
  • 4. AREVA provides solutions for CO2 free electricity generation, transmission and distribution €13,160M sales Nuclear (2008) 75,400 people 100 countries Transmission & Distribution 5 > Overview – June 2009
  • 5. AREVA is Nr 1 in Nuclear and Nr 3 in T&D 2008 Sales by business Geographic sales No. 1 worldwide in Nuclear Africa & Middle 2008 market size: East Europe c.€35Bn (excl. France) €8.1Bn Americas 9% 61,5% Market share: 25-30% # 1 in Europe and the US 29% # 1 in Plants / Fuel 15% # 1 in the Back End No. 3 worldwide in T&D 19% 28% €5.1Bn 2008 market size: Asia-Pacific €56Bn France 38,5% Market share increase : +50% since 2004 6 > Overview – June 2009
  • 6. AREVA is the only fully integrated player on the Nuclear value chain AREVA: t hi nG rke a €8Bn Nuclear O VA CO ac 3 rs ib C EC /B I Ma P Hit MH he EN ME sh E Sales in 2008 AE US A AR Ot 08 / UR CA To ND GE 20 Mining / Natural 62,000 t 15-20% 5-10% 20-25% 20-25% 25-30% Uranium Conversion/ Front End 57,800 t 20-25% 5-10% 25-30% 25-30% 20-25% Chemistry 50 Enrichment 20-25% 25-30% 20-25% 20-25% 5-10% MSWUs 1 Natural Uranium na 7,000 t 30-35% 20-25% 10-15% 15-20% 10-15% fuel (UO2) na Reactors & Services €15Bn 20-25% 15-20% 5-10% 10-15% 35-40% Treatment na Back End 70-75% 10-15% 10-15% JNFL Recycling 33,170 t2 Recycling na 25-30% 60-65% (4) 1-5% JNFL 2,470 t2 1 Separative Work Units Recent strategic moves 2 Cumulated, worldwide – AREVA Estimate 3 AtomEnergoProm (Russia) Potential strategic moves 4 MOX Fuel activities * Figures unidentified or not disclosed 7 > Overview – June 2009
  • 7. AREVA T&D: a leading player worldwide AREVA T&D Leadership T&D Market position Products T&D Global Market 2008: €56Bn Disconnectors AREVA High Voltage Direct Other Players* Current** (HVDC) 11% Energy Management Siemens Systems (EMS) 17% Gas-Insulated Substation 48% (GIS) Special Products Suppliers 24% Aluminum (SPS) ABB Instrument Transformers Key markets AREVA T&D Nr 1 in India * All other players have a market share below 5% (Schneider, GE, XD Group…) ** Excluding China 8 > Overview – June 2009
  • 8. AREVA’s strategy: to set the standard in CO2-free power generation and electricity transmission and distribution 1 Capitalize on our integrated business model to spearhead the nuclear revival Maintain the existing fleets’ safety and performance levels Build 1/3 of new nuclear generating capacities* Make the fuel cycle secure for our current and future customers 2 Ensure sustainable, profitable growth in T&D 3 Expand our renewable energies offering ...while remaining the leader in safety and security * of the accessible market 9 > Overview – June 2009
  • 9. Agenda 1. Introduction 2. AREVA in a world in crisis 3. Performances and objectives by division 4. Financials 5. Appendixes 10 > Overview – June 2009
  • 10. Strong growth Backlog (€Bn)* Revenue (€Bn)* X 2.5 48.2 +34% 13.2 39.8 11.9 10.9 10.1 9.8 25.6 19.6 20.6 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 * excluding FCI – Connectors division 11 > Overview – June 2009
  • 11. Net income In millions of euros 743 649 589 451 451* 389 240 2001 2002 2003 2004 2005 2006 2007 2008 - 587 AREVA has paid its shareholders €2.324Bn since 2001 * Net income reported of €1.049Bn including €451M in earnings per share from continued operations (excluding sale of FCI – Connectors division) 12 > Overview – June 2009
  • 12. AREVA: a solid, sustainable model Recurring nuclear revenue vs. New Builds (€M) 14,000 12,000 New construction 10,000 8,000 6,000 Recurring 4,000 business 80% of the Nuclear business 2,000 - 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: AREVA strategic plan No power plant will shut down due to the economic and financial crisis 80% of our nuclear business is recurring The integrated business model is winning market share The backlog gives very strong visibility Capex is secured by the sale of future production (e.g. 90% of GBII production has already been sold up to 2020) 13 > Overview – June 2009
  • 13. The crisis has not slowed down New Nuclear 10 utilities have already chosen the EPRTM… NPCIL …and are making commitments for the entire fuel cycle Examples since the crisis began: CGNPC – China: supply of front end of the fuel cycle through 2026 NPCIL – India: wants to secure reactor supplies for the life of the reactors (60 years) EDF: multi-year contract in the front end and back end (beyond 2030) 14 > Overview – June 2009
  • 14. The T&D business is reorganizing to withstand the crisis Stable world demand for T&D in 2009 compared with 2008 with marked differences between sectors Transmission Opportunities linked to investment recovery plans: China, United States, Europe Distribution Demand curbed in some geographical areas Industry Sharp drop in orders Smart grids are a major driver for energy conservation Smart grids and renewable energy integration Aging grids, especially in the United States Recurring services Possibly postponed investment automatically offset by higher maintenance expenses AREVA T&D: strategic assets to capture market opportunities Technology leadership, particularly in automation and very high voltage Less exposure to industry than our peer group Close to the utilities via our nuclear operations 15 > Overview – June 2009
  • 15. Strong technologies Front End Plants Ultracentrifugation EPRTM AREVA has the most efficient the first Generation III+ reactor ultracentrifugation technology under construction (4 units) A range of reactors to meet customer needs PWR PWR BWR 1,600+ MWe 1,100+MWe 1,250+MWe Back End T&D Technologies recognized worldwide Instrument transformers Gas-insulated substation E-terravision Circuit breakers Smart grid 16 > Overview – June 2009
  • 16. AREVA is hiring the men and women it needs to sustain growth AREVA workforce excluding FCI 75,400 65,600 57,900 58,800 61,100 34,600 36,100 35,800 2001 2002 2003 2004 2005 2006 2007 2008 Recruitment Integration Training More than 550 million euros in spending on operating income since 2006 17 > Overview – June 2009
  • 17. AREVA has generated and raised the resources it needs for growth since its establishment Cumulative from 12/31/2001 to 12/31/2008 In billions of euros End 2008 Shareholders’ Operating cash flow equity before Capex(1) 7.3 +7 Capex(2) Net debt (5.5) 5.5 Dividends 3.4 (4) Net (2.4) acquisitions TAX (1.1) (0.9) Other(3) (0.2) Since 2001, AREVA generated €7Bn in operating cash flow and had capital expenditures of more than €5Bn while maintaining a strong financial position 1 Operating cash flow before Capex: operating cash flow excluding acquisitions of PP&E and intangible assets 2 Capex: acquisitions of PP&E and intangible assets 3 Other: various financial transactions, etc. 4 Excluding Siemens’ put option 18 > Overview – June 2009
  • 18. AREVA has continued its partnership strategy in 2008 to secure future growth Strategic agreement Niger: Partnership in Kazakhstan Imouraren with Jordan Consolidation (Mining and fuel) operating permit in uranium in the fuel cycle Equity interest JV in fuel in enrichment - GBII Heavy component manufacturing site in the United States Strengthening Supply of large forgings of industrial capacities Creusot furnace JV in engineering capacity Development of the Kerena boiling water reactor Reactor Global partnership Choice of the EPRTM for the UK development Maintenance and services JV – Ultra high voltage in China JV in systems T&D (transformer factories) in India GE Renewable Development of the biomass market in the United States energies 19 19 > Overview – June 2009
  • 19. Key figures for 2008 In millions of euros 2007 2008 ∆ 08/07 Backlog 39,834 48,246 +21.1% Revenue 11,923 13,160 +10.4% Op. income before OL3 provisions 1,043 1,166 +11.8% % of revenue 8.7% 8.9% +0.2 pts Operating income 751 417 -44.5% % of revenue 6.3% 3.2% -3.1 pts Consolidated net income 743 589 -20.7% Earnings per share €20.95 €16.62 -20.7% Operating cash flow* -1,985 -921 +€1.064Bn Net debt excluding Siemens put 1,954 3,450 +76.6% Net debt with Siemens put** 4,003 5,499 +37.4% * EBITDA +/- change in Operating WCR – Operating Capex, net of disposals ** Value of Siemens put in 2007 20 > Overview – June 2009
  • 20. Continuing to grow while maintaining the group’s financial soundness Pursue the plan for capital expenditure needed to sustain AREVA’s strategic positions Finance the callable Siemens put option Maintain financial soundness and value creation Pursue the program of non-strategic asset disposals and minority share float in some operating companies (mining, GBII) Carry out the cost reduction program Preserve the group’s liquidity and optimize working capital requirement Preserve the Standard & Poor’s A1 short-term credit rating* * S&P placed AREVA on its CreditWatch on January 27, 2009 following Siemens’ announcement that it intended to withdraw from AREVA NP 21 > Overview – June 2009
  • 21. Outlook 2009 Backlog and revenue growth Rising operating income Initiation of a 2.7 billion euro investment program supported by the French government Full effect of 600 million euro cost reduction program strengthened by simplification of the group’s organizational structure, linked to Siemens’ withdrawal from AREVA NP and the 300 million euro WCR optimization program Financing assured, among other things, by disposal of non- strategic assets and minority share float of certain assets 22 > Overview – June 2009
  • 22. Agenda 1. Introduction 2. AREVA in a world in crisis 3. Performances and objectives by division 4. Financials 5. Appendixes 23 > Overview – June 2009
  • 23. Front-End division - AREVA invests in Mines and Enrichment Strengths & issues Sales – 2008 split Nr 1 worldwide in the overall Front-End Mining Integrated player: ability to answer clients’ will to secure supplies and future 23% expansion of nuclear fleet Fuel* 37% Chemistry Strategic partnership with clients through (* 34% 8% in AREVA NP) commercial agreements and/or equity deals 32% Strong position in fuel assemblies Enrichment Challenge : impact of commodities & production costs increase Key financials Strategic priorities Double uranium production by 2012 and in millions of euros 2007 2008 Change increase resources Order book 21,085 26,897 +27.6% Production ramp up : Trekkopje, Katco, Sales revenues 3,140 3,363 +7.1% Imouraren, etc… Operating income 496 453 -8.7% Succeed in the construction of % Sales 15.8% 13.5% -2.3 pts enrichment facilities in France and in the US Op. FCF before tax (1,672) (609) +€1,063M Remain the worldwide reference in nuclear fuel and expand in Asia 24 > Overview – June 2009
  • 24. AREVA develops a uniquely diversified portfolio to make the fuel cycle secured for its customers Canada Kazakhstan Development (Shea Creek, Mining & global fuel Kiggavik etc.) agreement signed Exploration since 1964 Katco production ramp-up / Cigar Lake production to start license for 4,000 tU obtained after 2012 (+2,600 tU) Exploration Mongolia Sainshand Exploration Morocco Niger Agreement signed with Somaïr & Cominak mines Office Chérifien des Imouraren mining license Phosphates obtained - Start up 2013-14 (+ 5,000 tU) Democratic Republic of Congo AREVA Resources Southern Africa Mining partnership Namibia - Trekkopje: mining permit obtained / 1st production expected in 2010 Australia +3,000 tU production expected Exploration Central African Republic -Bakouma: since 1969 government agreement obtained +2,000 tU production expected ~12,000 South Africa – Ryst Kuil Production ~ 6,300 Exploration (metric tons of U) 2008 2012 25 > Overview – June 2009
  • 25. Making the fuel cycle secure for our customers Adapting our production facilities and customers partnerships Conversion GB2 - Construction site France: Comurhex II project • Capital investment of €610M launched in 2007 • New plants at the Tricastin and Malvési sites Enrichment France: GB II Investment of close to €3Bn Capacity of 7.5 million SWU Modularity enabling production to start in 2009 Project on schedule United States (Bonneville, Idaho): “Eagle Rock” Investment of $2.2B Capacity of 3.0 million SWU Eagle Rock, Idaho Production to start in 2014-2015 Strategic agreements and partnerships with utilities to secure their access to the fuel cycle Suez acquired a 5% equity interest in GBII enrichment facility Innovation Capacity Productivity 26 > Overview – June 2009
  • 26. Reactors & Services division - Still mostly recurring, but new build is there Strengths & issues Sales – 2008 split ~100 GW installed capacity WW – 26% total Renewable Energies 80% sales are recurring and 20% concern projects CIS Nuclear measures (new reactors and plant modification) AREVA TA 5%5% 5% The first company to have Gen.III+ reactors under construction (Finland, France, and China) 12% Reactors* Fleet of reactors developed/under development to Equipment* 9% 39% address market needs : EPRTM (1,600 + MWe), ATMEA (1,100+ MWe), 26% KERENA (1,250 + MWe Boiling Water Reactor) (* 34% Ability to anticipate the nuclear renaissance in AREVA NP) Nuclear services* (industrial capacity and human resources) Key financials Strategic priorities Target 1/3 of global new build projects for in millions of euros 2007 2008 Change nuclear power plants Deliver on OL3, Flamanville and Taishan Order book 7,640 7,850 +2.7% Complete the design of the ATMEA PWR/ Sales revenues 2,717 3,037 +11.8% KERENA BWR reactor through JV with respectively MHI and E.ON Operating income* (179) (687) -€508M % Sales (6.6%) (22.6%) -16 pts Develop additional manufacturing capacities to build supply chain certainty Op. FCF before tax (528) (591) -€63M Develop Renewable Energies Business Unit Optimise costs structure * Including the €749M OL3 Provision 27 > Overview – June 2009
  • 27. AREVA is present on the key battlefields Main nuclear programs announced worldwide France UK Sweden Finland TM Flamanville 3 (EPR ) Target* : 10 GWe by 2020 End of 30 years Olkiluoto 3 (EPRTM) under construction EPRTM selected by EDF and pre- atomic ban under construction Penly: 2nd EPRTM by 2017 selected by E.ON for their UK 1 new reactor to be Possible 3rd TM EPR projects built – Call for tender in progress Canada Target* : more than 8 GWe China from 2014 18 reactors under Call for tender construction o/w 2 EPRTM in progress Target* : 70 GWe by 2020 US 32 COL** applications India in progress 6 reactors under construction TM EPR selected Target* : 50 GWe by 2050 by 5 utilities (7 units) MoU with NPCIL for up to 6 EPRTM Italy Target* : 8 to 10 new South Africa large reactors by 2030 Target* : 20 GWe Jordan Emirates EDF-Enel JV to build by 2025 Target: 1 Plant by 2015 Preparation at least 4 EPRTM Call for tender on Call for tender in of the EPRTM project with hold progress (4 bidders) SUEZ and TOTAL Countries where EPRTM are under construction (*) : Nuclear generation capacity announced by countries Countries where nuclear programs are announced with opportunities for AREVA (**) : Construction and Operating License 28 > Overview – June 2009
  • 28. Olkiluoto 3 – January 2009 © AREVA 29 29 > Overview – June 2009
  • 29. Olkiluoto 3 – January 2009 © AREVA 30 30 > Overview – June 2009
  • 30. OL3: advance over the competition confirmed A project in full swing… Percentage of completion unique worldwide for a generation 3+ power plant 60% of civil engineering complete The main components of the primary cooling system have been manufactured (vessels, steam generators, primary legs) The entire supply chain is mobilized Start of electro-mechanical installation Our skills have been strengthened for future projects A persuasive commercial showcase 6th Finnish reactor: EPRTM only reactor to be considered by all 3 utilities in Finland 31 > Overview – June 2009
  • 31. OL3: contractual aspects …Customer’s inertia continues to penalize us TVO has not satisfactorily implemented the 48 measures it must take to accelerate the process, as agreed upon and announced jointly in June 2008 It takes an average of more than 12 months for TVO to validate the technical documentation before passing it on to STUK (whereas the contract calls for 2 months), and the delays are even higher for some activities Example: more than 2 years for TVO to validate the design of some valves (valves already in production for the Flamanville 3 project) In this situation, the AREVA-SIEMENS team alone does not control the project schedule 32 > Overview – June 2009
  • 32. OL3: financial aspects AREVA is posting an additional provision for the 2nd half of 2008, bringing the total provision for the year to €749M Additional costs generated by the additional resources called up (project management, engineering, procurement) to compensate for the customer’s intervention practices Additional costs linked to civil engineering representing more than 30% of the total provision for 2008 Civil engineering is 60% complete and should be largely completed in 2009 Additional provision for overall risk In all, AREVA estimates the loss on completion of the OL3 project at €1.7 billion including the additional provision for 2008 (€749M) This amount does not include claims addressed to TVO which are now the subject of arbitration proceedings launched by the AREVA-Siemens consortium TVO has presented its own claim; the AREVA-SIEMENS consortium and its advisors consider the allegations made in this claim to be groundless and invalid contractually and from the viewpoint of Finnish law 33 > Overview – June 2009
  • 33. Flamanville 3 and Taishan Nuclear islands 1&2 Flamanville 3: supply of the nuclear steam supply system Equipment manufacture is ongoing Manufacturing of the reactor vessel and steam generators in progress (Saint-Marcel) Primary cooling system legs poured and forged Engineering and procurement on track with the customer’s schedule © EDF Taishan nuclear islands 1 & 2 Engineering and start of procurement in line with contract milestones Manufacturing of reactor vessel and steam generators in progress AREVA submitted Preliminary safety analysis report to customer July 22, 2008 © AREVA 34 > Overview – June 2009
  • 34. Bridging the Gap: Supply Chain Certainty An integrated manufacturing approach Continuous deliveries of quality products and process improvements for existing plants and new build projects Chalon Saint Marcel 30 years of operations 2900m² Workshop: 39,000 sqm extension in 2006 Reactor Pressure Vessels, Steam Generators, Pressurizers, Safety Injection Accumulators Sfarsteel (Creusot Forge) Acquisition in 2006 Heavy forging and machining Workshops: 85,000 sqm (4 sites) Upgrade underway JSPM Plant Coolant pumps and control rod drive mechanisms for reactors upgrading Workshop: 13,000 sqm underway (€60 M) Newport News (USA) Start of operation: 2012 $363M Workshop: 300,000 ft² announced Reactor Vessels, Steam Generators, and 2008 Pressurizers Agreement with Japan Steel Works (Japan) JSW to supply AREVA until 2016 and beyond with large forged announced parts, essential for the manufacture of nuclear components 2008 Friendly acquisition by AREVA of 1.3% of JSW stock 35 > Overview – June 2009
  • 35. Our renewable energies offers Wind power Bioenergies Hydrogen power Design & deliver biomass Develop Hydrogen Become a major player fired power plants world Technologies for market in offshore wind energy wide introduction AREVA Multibrid in Germany Rich and diversified Helion, France 5 MW off-shore specific experience: Brazil, Western Strong R&D capability design Europe and India (PEM technology) Selected for major wind JV Adage with Duke Energy Developing next generation parks covering nearly 270 in the US Storage solutions turbines One of the largest install base in the world: 2,900 MWe in 100 power plants 36 > Overview – June 2009
  • 36. Back-End division - An unchallenged leadership Strengths & issues Sales – 2008 split Nr 1 worldwide in used nuclear fuel Engineering management and recycling Logistics 6% Cleanup 3% Highly recurrent sales due to long term Nuclear Site Value contracts 14% Development 40 years of experience in nuclear materials 14% (Decommissioning) transportation and casks design and manufacturing 63% Proven technology leadership with significant Recycling partnerships in Japan, the US and the UK Nuclear site decommissioning and recovery Key financials Strategic priorities in millions of euros 2007 2008 Change Increase industrial efficiency Order book 6,202 7,784 +25.5% of the recycling plants (La Hague / Melox) Sales revenues 1,738 1,692 -2.7% Promote recycling worldwide Operating income 203 261 +28.6% Promote competitive recycling % Sales 11.7% 15.4% +3.7 pts services Op. FCF before tax 172 422 +€250M Remain the worldwide reference in technology assistance partnership 37 > Overview – June 2009
  • 37. Recycling delivers major benefits Natural resources savings Used fuel contains 96% of reusable materials Up to 25% natural uranium savings Improved ultimate waste management Volume of ultimate waste divided by 5 Waste toxicity divided by 10 Standard, durable, specifically designed waste forms and containers Reinforced economic interest of recycling Demonstrated competitiveness vs. once-through strategy Ability to control overall back-end costs based on proven 40-year industrial track record While ensuring Health, Safety and Environmental protection 38 > Overview – June 2009
  • 38. Increased recognition that recycling is a key component of a sustainable nuclear renaissance 2004 2010 ? T/Year (1) T/Year (1) 4 000 4 000 US 3 500 3 500 3 000 3 000 UK & Netherlands UK & Netherlands 2 500 2 500 China & Russia China & Russia Others Others UK US UK 2 000 2 000 Eastern Eastern Europe Europe Japan 1 500 Japan 1 500 US Asia Asia 1 000 1 000 Spain France Spain France Switzerland Switzerland Belgium Belgium 500 500 Germany Sweden & Finland Germany Sweden & Finland 0 0 Direct Wait-and-See Recycling Direct Wait-and-See Recycling disposal Solutions disposal Solutions (1) Tons of used fuel unloaded per year, including Light Water Reactors and «Advanced Gas Reactors » 39 > Overview – June 2009
  • 39. International recognition for AREVA’s leadership 2008 highlights USA 5 contracts awarded by the DOE Savannah River: construction of a MOX plant Japan Savannah River : treatment of radioactive liquid MOX fuel contract with Kansai waste at the DOE through 2020 Hanford Tanks: participation in site cleanup and dismantling Global Nuclear Energy Partnership: feasibility studies on the closed cycle Yucca Mountain: Management of the future disposal site United Kingdom Sellafield site: AREVA & partners selected by NDA China Management and operation of the Drigg site as part of the UK Nuclear Waste Management CNNC – China: progress consortium (low-level radioactive waste) on feasibility studies for an 800 MT recycling plant 40 > Overview – June 2009
  • 40. T&D division - Long term outlooks still positive Strengths & issues Sales – 2008 split A full fledged player: products & solutions for high & medium voltage technologies Systems A global footprint with presence in 160 countries 31% Strong position in the electrical utilities segment 53% Number 1 in HVDC (excl. China) Products 10% Number 1 in India Automation 6% Continued R&D effort Services Cyclicality exposure, especially with industry customers Key financials Strategic priorities in millions of euros 2007 2008 Change Grow faster than the market Order book 4,906 5,715 +16.5% Capture opportunities generated by the crisis Sales revenues 4,327 5,065 +17.0% Adapt industrial footprint to the Operating income 397 560 +41.1% market % Sales 9.2% 11.1% +1.9 pts Invest continuously in R&D Op. FCF before tax 233 -20 -€253M 41 > Overview – June 2009
  • 41. T&D: buoyant current operations New orders in millions of euros 5,821 6,065 Quatar 500** 488 401 4,353 432 433 2 678 3,709 2 498 124 3,317 176 2,251 2 205 320 2 104 192 95 80 1 949 1 713 1 596 Current operations*: 1 535 +16.2% from 2007 to 2008 1 495 H1 04 H2 04 H1 05 H2 05 H1 06 H2 06 H1 07 H2 07 H1 08 H2 08 2004 2005 2006 2007 2008 * Order less than €35M Current operations (contract < €35M) Large contracts (> €35M) ** exchange rate as of 12/31/2007 42 > Overview – June 2009
  • 42. T&D: consolidation of operating margin* 11.1% 11.1% 9.9% 8.7% 307 253 230 5.9% 175 4.2% 119 72 H1 06 H2 06 H1 07 H2 07 H1 08 H2 08 2006 2007 2008 * In contribution to group 43 > Overview – June 2009
  • 43. Agenda 1. Introduction 2. AREVA in a world in crisis 3. Performances and objectives by division 4. Financials 5. Appendixes 44 > Overview – June 2009
  • 44. First quarter 2009 revenue climbs 8.5% to €3.0 Bn Sales by division In millions of euros Q1 2009 Q1 2008 ∆ 09/08 ∆ 09/08 LFL* Front-End 674 679 -0.7% -6.3% Reactors & Services 727 665 +9.2% +2.6% Back-End 416 403 +3.3% +2.0% Nuclear Activities 1,815 1,747 +4.0% -1.1% % of total revenue 60.5% 63.1% Transmission & Distribution 1,186 1,022 +16.1% +12.4% % of total revenue 39.5% 36.9% Total 3,003 2,769 +8.5% +3.9% France 971 912 +6.5% - International 2,032 1,857 +9.4% - Strong performance of the Reactors & Services and of the Transmission & Distribution divisions Orders steady, particularly in the Front End, with several significant contracts with US and Asian utilities, and in Transmission & Distribution, with orders up sharply in Asia (+82%) and South America (+57%) As of March 31, 2009, backlog of €49.5 Bn, for 28.3% growth year-on-year, including 31.3% growth in Nuclear and 10.2% in Transmission & Distribution * LFL: at constant exchange rates and consolidation scope 45 > Overview – June 2009
  • 45. Strong commercial performance in 2008 Key contracts awarded More than €10Bn Multi-year in contracts contracts (Front End, R&S*, Long-term contract in the Front End Back End) in the Front End First uranium sale to India Multi-year contracts in the Front End NPCIL (300 MTU) Manage & Operate Interconnection the Sellafield site in Uruguay 10 transformer rectifier units Supply of in Bahrain two high voltage substations to Dubai Design and installation of a HV offshore wind substation in the United Kingdom IFA 2000 Franco-British grid interconnection * R&S: Reactors and Services 46 > Overview – June 2009
  • 46. 2008 key data by division Sales by division Operating income by division €13,160M €417M 5,065 Transmission & Distribution Front-End 3,363 3,037 26% 1,692 39% 453 560 261 -687* 23% 13% Front R&S Back T&D Reactors & - end - end Back-End Services Sales Operating income * Including the €749M OL3 Provision 47 > Overview – June 2009
  • 47. AREVA heavily invests for securing the future of its customers Technology R&D spending, in millions of euros 813** 1,051 669* 582 % of 5.7% 6.2% 6.8% 8.0% Sales 2005 2006 2007 2008 Mining and conversion Generation III recycling plant New generations of fuel T&D: ultra high voltage, new products Additional reactor types Fuel cells and improved wind technologies * excluding the acquisition of the ultra-centrifugation technology ** excluding R&D projects acquired through UraMin 48 > Overview – June 2009
  • 48. Significant investment program required to sustain AREVA’s strategic positions Investments 2006-2008 2009 Budgeted Investments €2,7 Bn 5%5% Others 15% Secure T&D profitable 15% growth €1,756 M 15% 15% Sell our reactors €1,325 M €1,334 M* Adapt our enrichment 18% 18% industrial capacities to the evolution of the market Secure access to 25% 25% uranium resources 22% Security & Maintenance 22% of existing assets 2006 2007 2008 2009 Key investments in 2009 include Maintenance capex for existing industrial assets (La Hague, Melox, GBI…) Access to uranium resources through a consistent portfolio of mines (Canada, Africa, Kazakhstan) Development of enrichment facilities with centrifuge technology (GB II in France and Eagle Rock in the USA) EPRTM licensing in the US and the UK Manufacturing capacity extension (for both nuclear and T&D activities) * Excluding acquisitions 49 > Overview – June 2009
  • 49. Operating cash flow In millions of euros 2007 2008 1,181 1,335 +1 (197) (432) (451) UraMin acquisition (1,454) (921) (2,889) (1,985) EBITDA Disposal WCR Net. OCF EBITDA Disposal WCR Net. OCF gain/loss change Capex gain/loss change Capex Drop in EBITDA Practically stable WCR Decrease in amount for acquisitions compared with 2007 (UraMin acquisition) Net increase in operating Capex excluding UraMin acquisition (€1,454M in 2008 vs. €1,295M in 2007) 50 > Overview – June 2009
  • 50. Net debt Siemens’ decision to exercise its put option on shares held in AREVA NP results in the payability of the value of Siemens’ put option no later than 2012 In millions of euros 12/31/2007 12/31/2008 Excluding Siemens (1,954) put option Excluding (921) (3,450) Siemens Siemens put option (2,049) put option (115) (325) OCF (135) (4,003) End-of-life-cycle cash flow Dividends Other (2,049) Siemens items put option (5,499) 51 > Overview – June 2009
  • 51. Capital Structure CDC 4% CEA + FRENCH STATE + ERAP EDF 87% 2% Total 1% Investment Certificate Holders (free float) 4% Employees 2% 52 > Overview – June 2009
  • 52. Appendix 1 Nuclear: a critical part of the solution
  • 53. Worldwide demand for electricity to double by 2030 Worldwide electric power generation (in TWh) X2 30 000 15 000 2005 2010 2015 2020 2025 2030 2008 – Worldwide distribution of Capex in the Power sector electric power mix expected to reach $13.8 trillion2007 Nuclear $6.8 trillion in T&D 16% $6.8 trillion in generating capacity Coal 39% Hydro 19% Covering both Generation and T&D markets, Gas Oil AREVA has 2 reasons to benefit from 15% 10% electricity sector investments Sources: World Energy Association (March 2009), IEA-World Energy Outlook (2008) 55 > Overview – June 2009
  • 54. AREVA’s 2030 scenario: construction or life extension of more than 500 GWe of nuclear power AREVA nuclear projection is in line with international institutions forecasts Scenario International institutions 824: WEO1- 2008- 450 ppm Policy Scenario 748: IAEA - 2008 – High Estimate 731: WNA2 - 2007- High Estimate New build 684: WEO- 2008- 550 ppm Policy Scenario Life extensions 344 635 AREVA’s target Theoretical end of life 529: WNA - 2007 - Reference 498: DOE3 EIA4 - 2008 Reference Case 473: IAEA - 2008 – Low Estimate 372 267 186 433: WEO - 2008 – Reference Scenario 2006 2030 GWe net installed 56 > Overview – June 2009
  • 55. New construction should affect all regions of the world New installed nuclear generating capacity after 2006 by geographic area (2007 - 2030) GWe Net 400 400 350 350 300 300 250 250 200 200 150 150 100 100 50 50 0 0 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 Europe 27 + CIS N. & S. America Asia Africa WORLD Source: AREVA’s estimates 57 > Overview – June 2009
  • 56. Nuclear power: a critical part of the solution for power generation Nuclear power generation does not 1. release greenhouse gas: life cycle greenhouse gas emissions very low 2. Low price of generation almost immune to uranium price fluctuations Fossil resources are limited 3. and uranium conventional resources are 200 times 2008 demand 4. Energy security of supply uranium is present in stable countries 58 > Overview – June 2009
  • 57. Nuclear power cost competitiveness Full Cost of Generation Including CO2 Costs* (Rebased on nuclear) CO2 Cost 126 109 100 Combined Gas Coal Nuclear Cost Comparison for Europe Average MWh cost CO2 emission cost (25€/t CO2 ) for new plants Nuclear € 50 - € 65 NS zzz Combined cycle gas € 65 - € 82 € 5 - € 10 Coal € 55 - € 75 € 15 Sources: Enel (July 2008), E.On (April 2008), UBS (January 2009) * Based on UBS Estimates for Europe (Global Nuclear Power - January 2009).Main technology-specific assumptions include: - an economic life of 50 years for nuclear power plants, 40 years for coal power plants, and 30 years for combined gas power plant, - size of 1,500 MW for nuclear power plant, 750 MW for coal plant and 425 MW for combined gas plant, and a CO2 price of €25/t 59 > Overview – June 2009
  • 58. Nuclear power cost of generation: limited dependency on fuel price evolution Combined Cycle Gas Hard Coal Nuclear MWh cost split Turbine (CCGT) MWh cost split MWh cost split Fixed operating Fixed operating Fuel & Other Fixed operating costs costs variable costs costs Carbon Carbon Capital cost Capital 2% 6% cost 10% 12% 20% 15% 25% 33% 70% 70% Fuel & Fuel & 35% Capital Other Other cost variable variable costs costs Sources: Based on E.On estimates for Europe (January 2009) , with Carbon at 20 €/t 60 > Overview – June 2009
  • 59. Nuclear power: a critical part of the solution in the UK “The Government’s conclusion is that nuclear power is: Low-carbon – helping to minimise damaging climate change Affordable – nuclear is currently one of the cheapest low-carbon electricity generation technologies, so could help us deliver our goals cost effectively Dependable – a proven technology with modern reactors capable of producing electricity reliably Safe – backed up by a highly effective regulatory framework Capable of increasing diversity and reducing our dependence on any one technology or country for our energy or fuel supplies.” UK Government White Paper (2007) 61 > Overview – June 2009
  • 60. Appendix 2 Situation regarding nuclear in the various regions
  • 61. The nuclear market place : 436 nuclear reactors in 2009 and more to come from the East 126 67 130 10 2 2 CIS & Eastern Europe North America Western Europe 109 28 Southern & Eastern Asia 2 0 4 Africa & Middle East 1 South America In service Under construction Source: WNA (January 2009) 63 > Overview – June 2009
  • 62. Installed capacity in main countries Gross capacity Gross generation Gross capacity Gross generation (GWe) (TWh) (GWe) (TWh) 2008 2007 2008 2007 2008 2007 2008 2007 France* 65.9 65.9 438.6 439.1 Canada 15.4 15.0 94.0 94.0 Germany 21.5 21.4 148.7 140.5 United States 107 105.8 842.4 843.0 Russia 23.2 23.2 162.3 158.3 Mexico 1.4 1.4 9.8 10.4 United Kingdom** 12.5 11.9 39.4 58.6 Brazil 2.0 2.0 14.0 12.4 Ukraine 13.8 13.8 89.8 92.7 Argentina 1.0 1.0 7.4 7.2 Sweden 9.6 9.4 66.9 66.9 Spain 7.7 7.7 60.0 55.0 TOTAL 126.8 125.2 967.6 967.0 Belgium 6.1 6.1 45.8 48.2 Finland 2.8 3.0 23.0 23.4 Source: Nucleonics Week, March 2008, restated by AREVA. Other 17.7 17.4 135.4 125.9 Gross capacity Gross generation TOTAL 180.8 179.8 1,209.9 1,208.6 (GWe) (TWh) * Excluding Phoenix, considered a research reactor. 2008 2007 2008 2007 ** Data incomplete for Britain (only Jan-Sep 2008 total available for British Energy Portion) Source: Nucleonics Week, restated by AREVA Japan 49.6 49.9 251.7 278.7 China 9.0 9.1 42.6 62.9 India 4.1 4.1 15.5 17.8 South Korea 18.4 18.4 151.0 142.9 Taiwan 5.1 5.1 40.8 40.6 Pakistan 0.5 0.5 1.9 2.5 TOTAL 86.8 87.1 503.5 545.4 Source: Nucleonics Week, March 2008, restated by AREVA. 64 > Overview – June 2009
  • 63. Appendix 3 Front End business details
  • 64. New mines will be necessary to meet Uranium demand World Uranium Supply and Demand 100000 90000 80000 70000 60000 tU 50000 40000 30000 20000 10000 0 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 Production from existing mines Recycling (Mox, RepU, off-spec) Russian HEU (existing agreement) Inventory reduction/adjustment Demand to be covered by new projects Consumption (WNA Upper Scenario 07) source: WNA 2007 66 > Overview – June 2009
  • 65. Conventional fissile resources represent more than 200 years of 2009 world demand CATEGORY of Uranium resources (million tons = Mt) Conventional Identified (deposits) Undiscovered Reasonably Speculative 1 Based on direct Cost of recovery Inferred Prognosticated geological Assured Resources $/kgU Resources Resources evidence Resources 1 2 3 2 Based on indirect geological < 40 1.77 1.20 evidence 1.95 3 Extrapolated 40 to 80 0.83 0.65 4.80 values 80 to 130 0.74 0.27 0.82 > 130 - - ? 2.97 Unconventional Subtotal 3.34 2.13 2.77 7.77 General total 5.47 10.54 15 to 25 General total of conventional resources: 16,009,100 t World demand in 2009*: less than 66,000 t Resources: > 200 times 2009 demand + With Gen IV Fast Breeder Reactor, resources are virtually unlimited *WNA estimate for 2009 Source: Nuclear Energy Agency "Uranium 2007: Resources, Production and Demand" 67 > Overview – June 2009
  • 66. Improved security of supply with Uranium Developed countries and China depend largely on oil & gas supplied from unstable areas Russia 12% 8% North America 1% 22% Kazakhstan 20% 11% Uzbekistan 5% China 24% 24% Alegria Middle East 3% 3% 4% 2% 2% 5% Mexico 4% Niger 3%1% 7% Venezuela 3% 28% Indonesia Other 3% 1% 4% Namibia Australia 1% 10% 70% of oil reserves 28% and 40% of gas 20% reserves Key areas of production (in % of global production) Uranium (2008 Data) 38% Oil (2007 Data) Gas (2007 Data) Sources: AREVA, IEA 68 > Overview – June 2009
  • 67. Mining: solid fundamentals in a more volatile environment Market trend AREVA performance Solid fundamentals: AREVA reserves and resources in 2008 Utilities want to secure supplies and future Replacement of mined reserves expansion of nuclear fleet AREVA reserves/resources constitute 10% Price drops in 2008 of the world’s identified resources Spot: average of $62/lb in 2008 vs. $99/lb 31% increase in exploration expenses, in 2007 to €56M Volatility due primarily to investment fund 4% increase in production, to 6,303 MTU sales Increase in production costs of around Long-term: average of $83/lb in 2008 15%, comparable to the average vs. $91/lb in 2007 for the industry Prices stable for the past 5 months at $70/lb Stable average AREVA sales prices LT & spot Ux prices, 2001- 2008 150 $23* $36* $36.90* Peak – July 07: Long-term Spot $138/lb LT $95/lb Spot 100 50 Current - Feb. 09 2006 2007 2008 Spot $47/lb LT $70/lb 0 * per lb U3O8 69 > Overview – June 2009
  • 68. Enrichment services requirements should rise Full use of current capacities 80 70 60 MSWU MSWU 50 40 GBII plant - France 30 20 10 Capacity of 7.5M SWU 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Cumulative capacities WNA 2007 scenario - Upper of global players WNA 2007 scenario - Reference First SWU production in 2009 Rise in spot SWU prices to $160 as of 12/31/2008 SWU rates ($) (vs. $143 early 2008) Cost and schedule 160 on track 140 120 100 80 60 2000 2001 2002 2003 2004 2005 2006 2007 2008 Spot restricted Source: Ux / TradeTech 70 > Overview – June 2009
  • 69. 135 out of 305* PWR and BWR reactors in operation worldwide are fueled by AREVA NL GB (1P/1) SWEDEN (1P/1) (3P/3, 4B/7) BELGIUM FINLAND (5P/7) (0B/2) FRANCE GERMANY (~53P/58) (11P/11, ~4B/6) SPAIN JAPAN (1P/6,1B/2) (2P/21, 2B/32) USA CHINA (18P/69, SWITZERLAND (3P/3, 1B/2) (6P/7) ** TAIWAN 11B/35) (0P/2, 4B/4) * Map (283) + Mexico (2B), Slovenia BRAZIL (1P), South Korea (16P), India (2B) (2P/2) ** and Pakistan (1P) : sources AIEA, WNA as of October 2007 ** Local fuel makers using SOUTH AFRICA Framatome ANP technology (2P/2) AREVA provides fuel for 92% of its installed basis and 21% for its competitors’ installed basis 71 > Overview – June 2009
  • 70. AREVA covers more than 40% of fuel global needs for BWR and PWR (excluding VVER) Europe USA Asia 2,127 T/y 2,257 T/y 1,483 T/y PWR 18% 12% 4% 22% 82% 78% 84% 1,800 T/y 1,434 T/y 874 T/y 11% 29% BWR 17% 27% 41% 10% 61% 32% 72% 327 T/y 823 T/y 609 T/y AREVA Westinghouse + Enusa GNF Genusa Others Source : Nuclear Assurance Corporation (Fuel Trac édition 10/2008); Average value over 2008 +/- 1 year 72 > Overview – June 2009
  • 71. Appendix 4 Reactors & Services business details
  • 72. O&M recurring expenses should remain relatively stable and high USA: around $10-11Bn of nuclear O&M recurring expenses in 2007 for a production in the range of 843 Bn kWh / y * O&M expenses are expected to trend upward in coming years Europe: Operating & Maintenance expenses per kWh ~0,4€ cents/kWh Operating Training Logisitcs 40% ... Maintenance, repare, ~0,6€ cents/kWh spare parts replacement, recurring engineering and upgrade Maintenance 60% * NEI, Nucleonics Week (March 2009) 74 > Overview – June 2009
  • 73. A significant share of O&M expenses are outsourced by the utilities Full Time Equivalent workforce internal + external for 1,000 MWe installed 900 800 700 600 500 400 300 200 100 0 EDF US (Navigant Consult.) US (Duke estimate) FTE Internal FTE External The trend should amplify in the coming years Source: Nuclear Engineering International – december 2004 / AREVA 75 > Overview – June 2009
  • 74. Main components of PWR coolant system 5 1 Reactor vessel 2 Control rod drive mechanisms 3 3 Steam generator 2 4 Reactor coolant pump 4 5 Pressurizer 1 76 > Overview – June 2009
  • 75. PWR steam generator FUNCTIONS Design Commissioning to transfer heat and ensure leak-tightness between the primary (P) and secondary (S) circuits DUTY mechanical effects of the circulating P and S flows chemical effects of the P and S fluids nominal and transient temperatures and pressures on P and S sides MATERIALS nickel-based alloy (tubes), low internal alloy carbon steel (structures) with a stainless steel layer the water chamber (P side) DIMENSIONS & WEIGHT: height: 20 to 22 meters diameter: 3.5 to 5 meters Heat transfer surface: weight (empty): 300 to 420 metric tons 4,700 to 7,000 square meters 77 > Overview – June 2009
  • 76. The EPRTM: increased power and safety - extended life expectancy over the most recently built reactors EPRTM N4 Thermal Power MW 4500 4250 Electrical Power MW 1650 1450 Thermal Efficiency % 36.8 34 Number of fuel assemblies 241 205 Limitation of severe accidents consequences ++ + Redundancy factor 4 2 Average burnup of reloads GWd/t >60 45* Service lifetime years 60 40 * Maximum burnup rate currently allowed by the French safety authority 78 > Overview – June 2009
  • 77. Typical cost breakdown of a Nuclear Power Plant of the EPRTM type NUCLEAR ISLAND: 55-60 % AREVA CONVENTIONAL ISLAND 15-20 % Alstom, Siemens BOP CIVIL WORKS 5-15 % 10-20 % Customer 79 > Overview – June 2009
  • 78. 50% of WW nuclear fleet is over 25 years old 129 reactors out of 439 are over 30 years old Pyramid of ages – 439 nuclear plants – WW nuclear fleet (Data as of January 2008) 35 3233 30 24 23 25 Number of Reactors 22 21 22 20 20 18 16 15 14 1414 15 12 1011 11 10 9 10 7 7 5 6 6 6 5 6 5 5 3 2 4 2 3 4 4 3 4 4 1 1 0 1 6 11 16 21 26 31 36 41 Age (in years) A need for re-investments in the existing fleet Source: IEAE International Status & Prospects of Nuclear Power (February 2009) – Data as of January 2008 80 > Overview – June 2009
  • 79. EDF nuclear power plant lifespan EDF objective: bring lifespan of French nuclear fleet significantly beyond 40 years 18 nuclear units will reach a lifetime of 40 years between 2015 and 2020 Shutdown of such units would imply a major investment programme in new nuclear units Investment necessary to allow a significant extension of lifespan beyond 40 years include Investment in asset maintenance to be carried out every year, including replacement of major components Ten-year inspection: with significant programmes to improve safety Total investment associated EDF estimates: c. €08 400 M per unit spread out several years (900 MW unit) International benchmark: c. US$ 500/kW (from 40 to 60 years), ie c. US$ 450 M for a 900 MW unit Source: EDF (January 2009) 81 > Overview – June 2009
  • 80. EDF 5 Years Nuclear Capital Expenditures Plan EDF recurring nuclear capital expenditures are expected to rise in the coming years with increasing nuclear reactors maintenance & life extension spending EDF 5 years nuclear capital expenditures in France* Recurring share of nuclear capital expenditures *Excludes Penly EPRTM Project Source: EDF, January 2009 82 > Overview – June 2009
  • 81. EDF nuclear plant scenario starting in 2020 Renewal over 30 years (2020-2050) Construction of about 2,000 MW/year MWe installed 70,000 60,000 Life extension 50,000 past 40 years 40,000 Generation 4 30,000 Current Nuclear Fleet with 40-year service life 20,000 10,000 Generation 3 + 0 Years 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 Average plant life: 48 years Generation 3+: EPRTM Source: EDF 83 > Overview – June 2009
  • 82. Appendix 5 Back End business details
  • 83. Recycling is a competitive solution compared to direct disposal Recycling Competitiveness Uncertainty Reduction A study conducted by BCG (Boston Recycling reduces the risks Consulting Group) in the US in 2006 associated with the uncertainty shows the costs of recycling and direct surrounding disposal costs disposal to be comparable RECYCLING DIRECT DISPOSAL RECYCLING DIRECT DISPOSAL Total costs Total costs Controlled Strong costs uncertainty surrounding Plutonium & Uranium Credits costs UNCERTAIN UNCERTAIN Interim ⊳ Interim COSTS COSTS Storage Storage Recycling ⊳ Transports Transports ⊳ Packaging Waste ⊳ Waste CONTROLLED disposal Disposal COSTS CONTROLLED COSTS Source: BCG, AREVA Source: International Benchmark AREVA 85 > Overview – June 2009
  • 84. In Back End, AREVA is the specialist of used fuel management Considerable barriers to entry for reprocessing-recycling: Technical and technological know-how Regulations Capital requirements AREVA is Nr 1 worldwide in terms of effective production Effective reprocessing capacity for light Cumulative effective production, water reactors spent fuel as of dec. 2008 1,700 mt / y ~24,540 mt 900 mt / y 800 mt / y Max. 400 mt / y 4,200 mt 4,010 mt 420 mt JNFL / AREVA Sellafield Ltd. Rosatom Rokkasho Mura AREVA Sellafield Ltd. Rosatom JNFL La Hague (starting 2006) Up today, AREVA recycled c.75% of the spent fuel worldwide, Technology partnership i.e 24,500 mt out of 33,200 mt Source: AREVA, World Nuclear Association 86 > Overview – June 2009
  • 85. AREVA Logistics Activities TN International (France), TRANSNUCLEAR Inc. (USA) and TRANSNUCLEAR Ltd. (Japan) Design & licensing of dry storage and transport casks Manufacturing of dry storage casks Organization of Transports Cask maintenance operations on site LMC (France) Road transport of radioactive materials Operations on railway and maritime facilities Maintenance of safety vehicles MAINCO (France) Management of site supply chain Specific handling operations MECAGEST (France) Manufacturing of mechanical and welded components (cask baskets, vitrified and compacted waste containers, etc.) 226 transports organized and 88 casks manufactured in 2008 87 > Overview – June 2009
  • 86. AREVA key objectives in logistics business Market development Innovation and marketing Develop logistics activities Maintain Research & Development consistently with the back-end sector efforts to offer innovative solutions for priorities our customers in both back-end and front-end People Operations performance Develop our internal resources to Develop new fleets while securizing anticipate our needs procurements and sea transportation capacities 88 > Overview – June 2009
  • 87. Used fuel: towards new packagings TN 12/1, 1980s MARK II, 1980s-2000s (IAEA 1985) TN12/2 TN 1, 1969 TN13/2 TN17/2 In compliance with IAEA 2005 Burn-up: 70 000 MWd/t Enrichment: 5% Compatible with EPRTM TN 112, 2008 TN G3, 2015-2018 (IAEA 2005) 89 > Overview – June 2009
  • 88. Nuclear site decommissioning & dismantling AREVA considers decommissioning and dismantling as a fully-fledged industrial activity Dedicated entity created in 2008: the Nuclear site Value Development Business Unit Role of the entity: Promote AREVA’s 20 years experience and expertise in this field Within AREVA, develop steer project progress and standardized methods and techniques Key figures 1,400 employees working on 6 sites 4 major projects underway for both AREVA and the French Atomic Commission (CEA) Cadarache: A first for MOX plant dismantling 90 > Overview – June 2009
  • 89. Appendix 6 T&D business details
  • 90. T&D investments will outpace GDP growth in the near future More networks inter-dependency to cope with potential shortages More economical exchanges of electricity Economy More interconnections of networks with + globalization different phases or frequency Increased needs in Automation Old equipments in Western countries Under-investments following privatization leading to recent black-outs (Italy, US, …) Past investment + consequences Lower grid / generation spare margin Need for refurbishment investments Needs in Automation Integration of renewables Increase in T&D + intensive sources Need to connect distributed energy of electricity systems to the grids Expected strong growth of Wind with high T&D investments requirements Growth Urbanization fostering need of safer / of electricity cleaner energy + in global energy Long term shortage in Oil& Gas primary mix sources of energy Global warming leading to CO2 emission reduction objectives GDP growth Source: AREVA 92 > Overview – June 2009
  • 91. AREVA T&D commercial achievements & strategy of selective acquisition and partnerships in 2008 Major commercial achievements Significant contracts with Dubai Electricity (UAE), StatoilHydro (UK), UTE (Melo - Uruguay), National Grid/RTE (IFA2000 - UK/France), etc. N° in India 1 New leadership position in HVDC (excl. China) Major strategic moves Acquisitions to increase our products portfolio: Waltec (Brazil), RB Watkins (USA) and Nokian Capacitors (Finland) Strategic partnerships with GE (India) and Shanghai Electric (China) Production capacity increases to support growth 12 Greenfields in China, India, Poland and Turkey Extension of key units in France, Switzerland and Germany, etc. 93 > Overview – June 2009
  • 92. Key Strategic Moves in 2008 PTR/Shanghai Electric Group DSC/Hengchi DSC/Sino American Nokian PDS-GIS/Huadian GIS/Jinxin DSC-PDS/Leekeen Nxtphase RB Watkins T&D India/GE India Waltec Acquisitions Partnerships Joint-Ventures €290m full-year sales impact 94 > Overview – June 2009
  • 93. New leadership positions established Disconnectors HVDC* EMS High Voltage Direct Current GIS Energy Management Systems Gas-Insulated Substation SPS Aluminum Instrument *Excluding China Special Products Suppliers Transformers 95 > Overview – June 2009
  • 94. Enlarged products portfolio MaxSine SVC GIS F35-5 bay 100% Vegetable oil Power Transformer Top core Current Transformer PACiS 4.5 MS 3000 Monitoring Power transformer PIX High for Nuclear Segment 96 > Overview – June 2009
  • 95. AREVA’s smart grid vision • Defense plan Blackout • React in real-time Blackout prevention • Online Stability Customers needs Enablers prevention • Closed Loop Control New technologies capabilities Reliability • Nuclear and Quality CO22free energy • Centralized / CO free energy Decentralized Renewable sources sources • Micro–renewable integration integration • Energy storage Stability + Transmission Transmission • Infrastructure (incl. long distance, both energy & Environmental communication) optimization optimization • Network management Energy policies / concerns Regulatory push Energy • Infrastructure ( to efficiency Distribution enable bi-directional Distribution power flows, optimization optimization communication) • Network management Market efficiency • Electric cars New consumption • µ-production and µ-grid New consumption • Deregulated environment modes integration modes integration • Smart appliances & and management and management buildings 97 > Overview – June 2009
  • 96. Appendix 7 Outlook China
  • 97. China: strong growth in power consumption despite slow down in 2008 Electricity consumption 1995-2020 Source: China Electricity Council (CEC) , Market Study, Financial Crisis Impact Study 99 > Overview – June 2009
  • 98. China: the energy challenges 70% of coal reserves Secure economic growth Better developed 80% of hydraulic resources Regions Minimize energy dependency Ensure sustainable development Ensure social stability by reducing disparities: electricity for all at an affordable price Take action on environmental issues, both for existing pollution and global warming Expand the interconnection market (HVDC) for electricity transmission to densely populated, developed areas Nuclear power and advanced T&D technologies have a major role to play 100 > Overview – June 2009
  • 99. China: overview of the energy sector Per capita consumption is still low and very disparate Insufficient installed capacity 792 GW installed as of the end of 2008, with a target of 1500 GW by 20201 A promising market China’s capital spending on new generating capacity and in the transmission and distribution sector is expected to rise to 50 billion dollars per year from 2006 to 2010. China’s electricity transmission and distribution market represents 25% of the world market Renewable energies law is effective since 2006 to encourage renewable energy resources Renewable energy is expected to reach 10-12% of total installed power capacity by 2020 China is to become the first market in Renewable Energy from 2010 1 Source: China Electricity Council and World Nuclear Association 101 > Overview – June 2009
  • 100. China: AREVA’s positions More than 2,900 employees, of which 2,800 employees for T&D More than 735 million euros sales in 2008 Reactors & Services 29% T&D 47% T&D 24% Front-End AREVA’s Sales split 102 > Overview – June 2009
  • 101. China: AREVA T&D’s operations in China China’s T&D market 2008 represents 25% of the world market and is expected to keep growing despite of current financial crisis Substantial capital expenditure is required in light of the country’s rising energy demand at above 10% CAGR 2006-2010 More than 365 million euros in sales in 2008* Breakdown of the Chinese T&D market in 2008: ABB 15% Local players = SIEMENS 7% 70% of the market Others 44% AREVA 3% Japanese/Korean 3% Other MNCs 3% XD Group XJ Group 8% 2% TBEA 5% ShenGao Nari TWBB 1% PingGao 3% 2% 4% *Sales by destination in 2008 (not including products manufactured in China and exported overseas) 103 > Overview – June 2009
  • 102. China: T&D Market Growth T&D Market Drivers Fast industrialization (2008 Industrial production growth: +13%) Urbanization and improved living standards Need for infrastructures and appliances 52% 51,0% 50,0% 50,4% 50% 48% 48% 47% 45% 46% 44% 44% 43% 41,8% 42% 40,5% 40% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Urbanization rate Need to efficiently connect distant power generation and main consumption centers over long distance (UHV and HVDC opportunities) 2008 annual capacity increase = 90 GW (~ UK installed capacity) 104 > Overview – June 2009
  • 103. China: nuclear power’s share is expected to quadruple by 2020 Total installed capacity in 2008: 792 GW, mostly thermal China Installed Generating Capacity (2008) Nuclear 1.5% Hydro 20% Wind 1.7% 77% Fossil Fuel (gas, coal, oil) Nuclear power’s share is still limited in China: 9 GW, corresponding to 1.5% of 2008 total installed generating capacity in China Objective: 5% by 2020, i.e. 70 GW Source: China Electricity Council 105 > Overview – June 2009
  • 104. China: nuclear civilian sites 11 reactors in operation – 18 under construction 106 > Overview – June 2009
  • 105. China: AREVA role in the development of the nuclear fleet Qinshan I - 1991 Built by AREVA A strong presence in the newly built plants Significant Participation Daya Bay - 1994 (Supply, assistance, …) Projects to come Qinshan II phase 1 – 2002; 2004 200x Commissioning date Qinshan III – 2002; 2003 Ling Ao I – 2003 Tianwan – 2007 Ling Ao II – 2010; 2011 Qinshan II phase 2 – 2011; 2012 A wide offer of services, equipments Hongyanhe – 2012; 2013 and fuel for the whole fleet Taishan – 2013; 2014 Other project Gen 2 & 3 1990 2000 2010 2015 107 > Overview – June 2009
  • 106. China: the largest contract ever signed in the nuclear business Construction of 2 EPRTM Material and Services nuclear islands for 15 years of operation €8 Bn Discussions to start on cooperation for treatment and recycling 108 > Overview – June 2009
  • 107. China: renewable energies outlooks AREVA Bioenergy 600 to 900 MW to be installed yearly to reach 20 000 MW installed capacity by 2020 Annual market turnover related to boiler island expected to exceed 200 M€ by 2012 No market saturation foreseen before 2012. AREVA’s technology, based on its operating feedback, is an asset in the stiff competition with local boiler manufacturers AREVA aims at: Developing boiler engineering competences, combining AREVA mastered technology and low cost manufacturing Low cost sourcing for oversea projects 109 > Overview – June 2009
  • 108. Appendix 8 Outlook India
  • 109. India: massive growth of nuclear generated power is expected over the next 40 years Nuclear percentage should rise Nuclear installed capacity from 3% in 2008 to 25% should multiply by more of the power mix in 2050 than 10 by 2050 15% 3% 66 GWe** 4% 50 GWe 68% 10% 2007 25% 20 GWe Others Coal 75% Other Renewable Hydraulic 4 GWe Nuclear 2050 France Oil 2008 2020 2050 in 2008 Source: Indian Office of the Minister of State for Commerce & Power (February 2009), Nucleonics Week Key drivers Population growth (x 1.5 from 2000 to 2050) GDP growth (7.5% per year in 2008, and c.6% expected in 2009*) Increase in electricity access (44% of Indian households have no access to electricity in 2008) * Economist Intelligence Unit, February 2009 ** Nucleonics Week, March 2009 111 > Overview – June 2009
  • 110. India: Important T&D investments to continue T&D Indian 11th Five Years Plan (2008-2012) Fresh capacity addition is considered to be the main driver for future demand for Electrical Equipments in the T&D segment Funds Capacity Required Transmission 750 Central Sector 43 16 650 State Sector (GW) Distribution 787 Sub-Station 292 * 793 Augmentation 198 of S/S (Rs Bn) (GVA) * 292 GVA to be added + 500,000 Nos. of Industrial installations (HT) Source: JM Financial, Planning commission working group report on power sector 112 > Overview – June 2009
  • 111. India: AREVA T&D has a strong competitive position T&D India Market share 2008 Major land marks: 70% market share in the EMS segment for Transmission networks AREVA Chinese – Koreans 16.9% 7.7% Supplied and commissioned India’s Others first 765 kV substation in 2007 for 38.8% NTPC Sipat plant ABB 20% of HVDC inter-regional linkages 15.6% Largest number of GIS references in India Network Consultancy contract for Reliance Energy’s Delhi & Mumbai Siemens networks ; 1st of its kind in India L&T 8.8% 2.1% CGL BHEL Modernization of Bhutan’s electrical 4.9 % 5.2% network for 2 cities Source: AREVA. Market share calculation based on 2008 orders 113 > Overview – June 2009
  • 112. India: AREVA benefits from an historical presence in India since 1950s’ Dehli, Noida BANGALORE PONDY Naini Baroda Kolkata CHENNAI CHENNAI Bangalore Hosur Chennai Padappai New factories Pondicherry KOLKATA KOLKATA 8 manufacturing sites 3 new manufacturing sites 4,200 employees NAINI NOIDA, DELHI 22 sales offices Full fledge local player covering UHV, HV, MV, Systems and Automation Map as of end of 2008 114 > Overview – June 2009
  • 113. India: the country has developed a strong nuclear industry India has developed a strong domestic nuclear industry, drawing on the benefits of earlier cooperation with Canada, France, the United States, Russia… NPCIL is the specialized nuclear utility in India, architect-engineer and operator of 17 reactors (+ 6 under construction) Operating reactors are derivatives of Candu (14) and BWRs (2), but are rather small (160 to 500 MW range) India is developing fast neutron reactors, proof of its technological capability and forward-looking approach Nuclear supply chain in India is dominated by several large public and private industrial groups, like BHEL, Larsen & Toubro, Tata, etc. India now aims to supply 25% of electricity from nuclear power by 2050, from 3% in 2008 115 > Overview – June 2009
  • 114. India: 17 reactors in operation and 6 under construction RAWATBHATA 1, 2, 3 & 4 NARORA 1&2 740 MW 440 MW 440 MW (5 & 6) Plants KAKRAPAR 1&2 in operation 440 MW BWR (320 MW) PHWR (3.760 MW) Plants under TARAPUR 1, 2, 3 & 4 KALPAKKAM 1&2 construction 1400 MW 440 MW VVER (2.000 MW) 500 MW PHWR (660 MW) (Fast breeder reactor) FBR (500 MW) fast breeder reactor KAIGA 1, 2 & 3 KUDANKULAM 1&2 620 MW 2000 MW 220 MW 116 > Overview – June 2009
  • 115. India: recent evolution of the specific country situation relating to non-proliferation commitments India did not sign the Nuclear Non-Proliferation Treaty (NPT) and conducted its first nuclear test in 1974 From that time, on-going cooperation between India and other countries was interrupted, and supplier states put in place the NSG (Nuclear Suppliers Group, 45 countries today) to regulate nuclear exports Since adoption of Full-Scope Safeguards in 1992, NSG member states do not allow themselves to export nuclear technology, equipment and fissile material to any country not complying with Full-Scope Safeguards Between 2005 and 2008, discussions between India and several NSG member states took place, for an agreement on safeguarding civilian nuclear facilities and fissile material paving the way for a new consensus within NSG Summer 2008: India obtained a green light from AEIA and the NSG validated an exceptional arrangement to permit its members to deal with. Some countries had already signed MOU with India to put in place framework agreement of cooperation February 2009: India signed a safeguard agreement with the AIEA, allowing individual countries to further trade with India in civilian nuclear field 117 > Overview – June 2009
  • 116. India: success of the discussions with NSG members AREVA February 2009: July 2006: December 2008: Nuclear safeguards Feasibility report for AREVA – NPCIL 300 tU agreement between 6 GW AREVA visit Supply Contract* India and the IAEA 1st Indian India/USA statement: nuclear test July 2005 American Congress Nuclear cooperation vote: December 2006 agreements with France 1974 2005 2006 2007 2008 2009 Bilateral cooperation: February 2009: AREVA India / France statement: India / Canada (PHWR) September 2005 India / France (FBR) Nuclear cooperation – NPCIL MoU for up to 6 India / USA (BWR) agreements with US EPRTM Reactors*** AREVA G. Bush visit: Feasibility March 2006 January 2009: AREVA report for EPRTM – Bharat Forge JV** V. Poutine visit: February 2007 September 2008: February 2006: President July 2008: AEIA End of 34 years Ban Chirac visit green light from Nuclear Suppliers Group * First of its kind MoU between India and a foreign nation ** Joint Venture with Bharat Forge for the production of heavy components of nuclear reactors (to start in 2012) *** Memorandum of Understanding to supply 2 to 6 EPRTM reactors 118 > Overview – June 2009
  • 117. India: key challenges for AREVA For Nuclear: Successfully license the EPRTM with the Indian nuclear regulatory authority Sign final contract with NPCIL for the construction of the 2 first EPRTMs at Jaitapur Set up the announced joint venture with Bharat Forges in order to start the production of heavy forging components for the EPR in 2012 For T&D: grasp market growth Increase capacity: Greenfield, lean manufacturing Cover all market segments by localization of technology and specific developments to address market needs Overall, leverage India to support AREVA strategy worldwide Recruit and retain talents Manufacturing base for other units Engineering resources and R&D centers of excellence Strong supplier base 119 > Overview – June 2009
  • 118. Appendix 9 Financials
  • 119. Change in revenue 2008/2007 like-for-like 2008 2007 Revenue like- Exchange Consolidation Change in Reported Revenue for-like rate scope impact valuation revenue In millions of euros impact method Front End division 3,363 3,136 (53) 46 4 3,140 Reactors & Services division 3,037 2,739 (47) 19 49 2,717 Back End division 1,692 1,735 (4) 0 0 1,738 Nuclear 8,092 7,610 (103) 65 53 7,595 T&D division 5,065 4,375 (121) 169 0 4,327 Corporate and Other 3 1 0 0 0 1 Consolidated 13,160 11,985 (224) 233 53 11,923 121 > Overview – June 2009
  • 120. Non-operating items Change In millions of euros 2007 2008 08/07 Operating income 751 417 (334) Net financial income (expense) 64 (29) (93) Share in net income of associates 148 156 8 Income tax (81) (46) 35 Effective tax rate 9.9% 11.8% +1.9 pts Minority interests (139) 91 230 Net inc. attributable to equity holders of parent 743 589 (154) 122 > Overview – June 2009
  • 121. Net financial income Change In millions of euros 2007 2008 08/07 End-of-life-cycle operations 107 (57) (164) Including: Income from earmarked portfolio and interest on receivables 175 87 (88) Non-portfolio income 113 182 69 Discount reversal on end-of-life-cycle portfolio and schedule revisions (181) (327) (146) Net borrowing costs (excl. discount/premium) (53) (111) (58) Discount/Premium (20) (16) 4 Income from disposal of securities 3 370 367 Discount reversals on retirement/benefits provision (55) (72) (17) Other financial income and expenses 82 (143) (225) Net financial income (expense) 64 (29) (93) 123 > Overview – June 2009
  • 122. Share in net income of associates Change In millions of euros 2007 2008 08/07 STMicroelectronics (25) (46) (21) Eramet group 153 187 34 Other 20 15 (5) TOTAL 148 156 8 The negative results of ST Microelectronics (-84% compared with 2007) are offset in part by Eramet's positive performance 124 > Overview – June 2009
  • 123. Minority interests in subsidiaries' earnings Change In millions of euros 2007 2008 08/07 AREVA NP (17) (186) (169) AREVA NC 129 76 (53) AREVA T&D 23 32 9 AREVA TA 3 4 1 Other 1 (17) (18) TOTAL 139 (91) (230) 125 > Overview – June 2009
  • 124. Cash flow and net debt In millions of euros 2007 2008 Ebitda (excluding end-of-life-cycle costs)* 1,335 1,181 % of revenue 11.2% 9.0% Gain (loss) on disposal of operating assets 1 (197) Change in operating WCR (432) (451) Net operating Capex (2,889) (1,454) Free operating tax flow before tax (1,985) (921) End-of-life-cycle obligations 171 (115) Net financial Capex (131) (462) Dividends paid (345) (326) Revaluation of minority put options (liability) (932) (19) Other (income tax, non-operating WCR, etc.) 85 (577) Change in net cash position (3,137) (1,496) Net debt (12/31) (4,003) (5,499) 126 > Overview – June 2009
  • 125. Simplified balance sheet at 12/31/09 In billions of euros Goodwill 4,8 7,3 Equity PP&E and intangible assets 8,0 5,7 Provisions for end-of- life-cycle operations Assets earmarked for end- Other provisions** 3,3 of-life-cycle operations 5,2 0,1 WCR Investments in associates 1.8 5,5 Non-current financial assets Net debt* 2,2 Assets (simplified) = 21.9 = Liabilities & equity (simplified) * Net debt excluding unexercised put options = borrowings including interest-bearing prepayments – cash – marketable securities – non-trade current account assets ** Including net deferred taxes 127 > Overview – June 2009
  • 126. End-of-life-cycle operations End-of-life-cycle operations at December 31, 2008 In millions of euros 270 The law of June 28, 2006 270 on the sustainable management of radioactive materials and waste requires a 100% reserve ratio by June 28, 2011 2 991 for end-of-life-cycle provisions using dedicated assets 5 404 4 954 Receivables Since 2002, AREVA’s reserve Earmarked ratio has ranged from 90% portfolio to 110% 1 964 At December 31, 2008, in an environment of severe Assets Breakdown of Provisions crisis in financial markets, AREVA assets it was 92% AREVA Third party share 128 > Overview – June 2009
  • 127. ROACE (1/2) Average Capital Net Operating ROACE Employed Income In millions of euros 2007 2008* 2007 2008 2007 2008* Nuclear 3,172 5,005 429 37 13.5% 0.7% T&D 761 1,086 265 402 34.8% 37.0% Other 331 2,250 (111) (111) - - Consolidated 4,264 8,341 583 328 13.7% 3.9% * Unadjusted for goodwill linked to the Siemens put option 129 > Overview – June 2009
  • 128. ROACE (2/2) CONSOLIDATED 2007 2008 unadjusted for In millions of euros Siemens’ put option Net operating income 583 328 Net intangible assets 2,729 3,089 Goodwill used in ROACE calculation 2,520 4,748* Property, plant and equipment 4,204 4,914 Customer prepayments on assets (907) (941) Operating WCR 368 656 Provisions for contingencies and losses (3,088) (3,430) Capital employed 5,826 9,036 Average capital employed 4,264 8,341 ROACE 13.7% 3.9% * Unadjusted for goodwill related to Siemens’ put option 130 > Overview – June 2009
  • 129. Balance Sheet (1/2) ASSETS December 31, December 31, (in millions of euros) 2008 2007 Non-current assets 22,841 21,425 Goodwill on consolidated companies 4,803 4,377 Other intangible assets 3,089 2,729 Property, plant and equipment 4,913 4,204 Including: End-of-life-cycle assets (AREVA share) 189 174 End-of-life-cycle assets (third party share) 270 2,491 Assets earmarked for end-of-life-cycle operations 4,954 2,873 Investments in associates 1,757 1,558 Other non-current financial assets 2,152 2,588 Pension assets 1 - Deferred tax assets 900 604 Current assets 11,804 9,251 Inventories and work-in-process 3,403 2,817 Trade accounts receivable and related accounts 4,486 3,884 Other operating receivables 2,434 1,402 Current tax assets 164 94 Other non-operating receivables 154 141 Cash and cash equivalents 1,050 634 Other current financial assets 113 279 Assets of operations held for sale - - Total assets 34,644 30,676 131 > Overview – June 2009
  • 130. Balance Sheet (2/2) LIABILITIES AND EQUITY December 31, December 31, (in millions of euros) 2008 2007 Equity and minority interests 7,292 7,464 Share capital 1,347 1,347 Consolidated premiums and reserves 4,455 3,925 Deferred unrealized gains and losses 287 1,117 Currency translation reserves (131) (138) Net income attributable to equity holders of the parent 589 743 Minority interests 745 470 Non-current liabilities 11,795 11,951 Employee benefits 1,268 1,175 Provisions for end-of-life-cycle operations 5,674 5,075 Other non-current provisions 123 121 Non-current borrowings 3,969 4,302 Deferred tax liabilities 760 1,277 Current liabilities 15,558 11,261 Current provisions 2,081 1,823 Current borrowings 2,693 613 Advances and prepayments received 4,752 4,172 Trade accounts payable and related accounts 2,991 2,565 Other operating liabilities 2,884 1,921 Current tax liabilities 104 127 Other non-operating liabilities 53 41 Liabilities of operations held for sale - - Total liabilities and equity 34,644 30,676 132 > Overview – June 2009
  • 131. Income Statement In millions of euros 2008 2007 Revenue 13,160 11,923 Other income from operations 32 21 Cost of sales (10,906) (9,183) Gross margin 2,286 2 762 Research and development expenses (453) (421) Marketing and sales expenses (607) (529) General and administrative expenses (980) (881) Other operating income and expenses 214 (123) Operating income before restructuring expenses 460 808 Restructuring and early retirement costs (43) (57) Operating income 417 751 Income from cash and cash equivalents 38 37 Gross borrowing costs (148) (110) Net borrowing costs (111) (73) Other financial income and expenses 81 138 Net financial income (29) 64 Income tax (46) (81) Net income of consolidated businesses 343 734 Share in net income of associates 156 148 Net income from continuing operations 498 882 Net income from discontinued operations -- - Les minority interests 91 (139) Net income attributable to equity holders of the parent 589 743 Average number of shares outstanding 35,442,701 35,442,701 Basic earnings per share 16.62 20.95 Diluted earnings per share* 16.62 20.95 * Adjusted for net income from discontinued operations 133 > Overview – June 2009
  • 132. Segment reporting (1/2) 2008 Corporate, In millions of euros Reactors Front End Back End T&D Other and Consolidated (except number of employees) and Services Eliminations Contribution to consolidated revenue 3,363 3,037 1,692 5,065 3 13,160 Income items Operating income 453 (687) 261 560 (170) 417 % of revenue 13.5% -22.6% 15.4% 11.1% - 3.2% Ebitda (excl. end-of-life-cycle) 780 (349) 320 587 (158) 1 181 % of consolidated revenue 23.2% -11.5% 18.9% 11.6% - 9.0% Net Capex Cash flow items (664) (365) (88) (324) (13) (1,454) Change in operating WCR (533) 124 190 (276) 44 (451) Free operating cash flow (609) (591) 422 (20) (124) (921) PP&E and intangible assets . 5,595 1,436 1,947 1,308 2,520 12,806 Other Capital employed* 6,091 159 (906) 1,356 2 336 9 036 Number of employees 14,240 19,477 10,906 29,966 825 75,414 * Capital employed at the end of the period 134 > Overview – June 2009
  • 133. Segment reporting (2/2) 2007 Corporate, In millions of euros Reactors Front End Back End T&D Other and Consolidated (except number of employees) and Services Eliminations Contribution to consolidated revenue 3,140 2,717 1,738 4,327 1 11,923 Income items Operating income 496 (179) 203 397 (166) 751 % of revenue 15.8% - 6.6% 11.7% 9.2% - 6.3% Ebitda (excl. end-of-life-cycle) 731 (125) 440 426 (137) 1,335 % of consolidated revenue 23.3% - 4.6% 25.3% 9.8% - 11.2% Net Capex (2,260) (322) (81) (193) (33) (2,889) Cash flow items Change in operating WCR (140) (81) (186) (5) (20) (432) Free operating cash flow (1,673) (528) 172 233 (190) (1,985) PP&E and intangible assets 4,894 1,141 1,897 1,053 2,325 11,310 Other Capital employed* 5,135 178 (644) 816 345 5,826 Number of employees 12,577 16,500 10,638 25,248 620 65,583 * Capital employed at the end of the period 135 > Overview – June 2009
  • 134. 2008 sales revenue by BU (1/2) Front End division Reactors and Services Renewable energies Consulting/Information Nuclear 5% Systems Mining measurement 5% Fuel 23% 6% 37% AREVA TA 12% Equipment Chemistry 9% 8% Plants 39% Nuclear Enrichment services 32% 26% Back End division Transmission & Distribution Nuclear Site Value Development Cleanup Services (Decommissioning) 6% Engineering 6% 14% 3% Automation Logistics Products 10% 14% 53% Systems 31% Recycling 63% 136 > Overview – June 2009
  • 135. 2007 sales revenue by BU (2/2) Front End division Reactors and Services Renewable energies Nuclear 1% Consulting/Information Mining measurement Systems Fuel 23% 6% 6% 36% AREVA TA 11% Chemistry 8% Equipment 8% Plants 39% Nuclear Enrichment services 34% 29% Back End division Transmission & Distribution Cleanup Services 6% Engineering 8% 3% Automation Logistics Products 11% 13% 49% Systems Treatment- 32% Recycling 81% 137 > Overview – June 2009