Areva Paris

IIPM GOTA Report Abhishek Devra Amandeep Singh Manav Patel Prateek Bhatia Komalpreet Singh Areva SMG Department GOTA Department Satbari IIPM

A CKNOWLEDGMENT “Practical exposure of the subject makes theoretical and practical knowledge more interesting.” We are very fortunate in getting theoretical knowledge from our well known B-School, IIPM, but for being perfectionist in the field of management, working in real world must. For the same purpose we decided to present this project for my GOTA Trip; that is “AREVA.” No words of appreciation are enough to thank Indian Embassy, which gave us chance to associate with this esteemed organization and encouraged us to go ahead with the challenging topic. We thank the embassy for accommodating us and their understanding attitude. We would like to thank IIPM for such an innovative idea for exposing the students first hand to the corporate world. During the period of preparation and analysis, we learnt many new things including the concept of implementation of theoretical knowledge in practical field and foreign cultures. This report is the sincere attempt of summarizing all the meaningful information that we could gather during the preparation. We are deeply indebted to many people who have contributed in making my thesis project a gaining experience as it stands today. We are also thankful to our honorable and distinguished professors who helped us timely as and when we required some assistance which indeed makes us able to do this sensible project. We must admit that we immensely enjoyed and processed our report, which will add up to our knowledge and led us to become a sound manager.

IDENTITY All over the world, AREVA provides its customers with solutions for carbon-free power generation and electricity transmission. With its knowledge and expertise in these fields, the group has a leading role to play in meeting the world’s energy needs. Ranked first in the global nuclear power industry, AREVA's unique integrated offering covers every stage of the fuel cycle, reactor design and construction, and related services. In addition, the group is expanding its operations in renewable energies, including biomass, wind power and fuel cells. AREVA is also a world leader in electricity transmission and distribution and offers its customers a complete range of solutions for greater grid stability and energy efficiency. Sustainable development is a core component of the group’s industrial strategy. Its 75,000 employees work every day to make AREVA a responsible industrial player that is helping to supply ever cleaner, safer and more economical energy to the greatest number of people. Simplified legal organizational chart

KEY FIGURES 2008 sales € 13,160M Sales revenue as of 12/31/2008 Breakdown and changes in 2008 sales 2008 results Operating income € 417M Operating income as of 12/31/2008 Changes in operating income, in millions of euros Net income group share

€ 589M Net income group share, as of 12/31/2008 Changes in net income group share in millions of euros 2008 workforce 75,414 Employees worldwilde as of 12/31/2008 Breakdown of workforce by region Breakdown and changes in workforce

WORLDWIDE PRESENCE With manufacturing facilities in 43 countries and a sales network in over 100, the group is aiming to strengthen its international presence by developing a balance between Europe, North America and Asia.

ORGANIZATION The AREVA group is organized around a Supervisory Board, an Executive Board and an Executive Committee assisted by the Corporate Departments. These bodies supervise and pilot the group operations, divided into four divisions organized as business units.

EXECUTIVE COMMITTEES Executive Committees are standard management practice at AREVA. There are two such committees: the ExCom and the Nuclear ExCom. Executive Committee The ExCom was organized when AREVA was established. It meets twice monthly. Responsibilities The ExCom is the group’s internal decision-making and information body. Members Anne Lauvergeon Chief Executive Officer of AREVA Gérald Arbola Chief Operating Officer of AREVA, member of the Executive Board Alain-Pierre Raynaud Chief Financial Officer of AREVA Didier Benedetti Chief Operating Officer of AREVA NC, member of the Executive Board Luc Oursel Member of the Executive Board, President and CEO of AREVA NP Philippe Guillemot Chairman and CEO of AREVA T&D

Philippe Vivien Executive Vice President, Human Resources Ana Palacio AREVA Senior Vice President, International & Marketing Joël Pijselman AREVA Industrial Senior Vice President Bernard de Gouttes, Senior Vice President, Compliance of the group, is the secretary of the ExCom. Nuclear ExCom The Nuclear Executive Committee was created in December 2004 to bolster synergies among the nuclear businesses. It meets two or three times a month. Responsibilities The Nuclear ExCom makes decisions on any issue with a strong strategic, commercial or financial dimension for the nuclear businesses (AREVA NC, AREVA NP and AREVA TA). Members • Anne Lauvergeon - Chief Executive Officer of AREVA • Gérald Arbola - Chief Operating Officer of AREVA, member of the Executive Board • Didier Benedetti - Chief Operating Officer of AREVA NC, member of the Executive Board • Alain-Pierre Raynaud - Chief Financial Officer of AREVA • Rémy Autebert - President of AREVA Japan • Jacques Besnainou - President of AREVA Inc. • Michael W. Rencheck - President and CEO, AREVA NP Inc. • Luc Oursel - President and CEO, AREVA NP, member of the Executive Board • Michael McMurphy - Executive Vice President of the Mining - Chemistry - Enrichment business units • Ulrich Graeber - AREVA NP GmbH (Germany)

• Joël Pijselman - AREVA Industrial Senior Vice President • Pierre Laporte - Senior Vice President, Corporate Legal Department, and Corporate General Counsel • Claude Jaouen - Senior Executive Vice President of AREVA NP in charge of the Plants Business Unit Substitute members and committee members for subjects concerning them: • Bernard de Gouttes - Senior Vice President, Compliance • Dominique Mockly - Chairman and CEO of AREVA TA • Robert Pistre - Vice President in charge of the Develpment of Senior AREVA Executives of AREVA group • Olivier Wantz - Chief Financial Officer of AREVA NP • Christian Petit - Chief Financial Officer of AREVA NC • Bertrand Durrande - Executive Vice President, Renewable Energies business unit • Guillaume Dureau - Executive Vice President, Equipment business unit Jean-Pol Poncelet, Senior Vice President, Substainable Development and Continous Improvement, is the secretary of the Nuclear ExCom.

CORPORATE DEPARTMENTS The Corporate Departments assist the Executive Committee in defining and implementing the group's strategy. They monitor subsidiaries' performance and promote best practices in management, communications, environment, sustainable development, etc. Human Resources International development Philippe Vivien Dominique Mockly Safety, health, security, Industrial environment Joël Pijselman Jean-Luc Andrieux Sustainable Development Strategy, Mergers and and Continuous Acquisitions Progress Jean Huby Jean-Pol Poncelet Communications Research and Innovation Jacques-Emmanuel Alain Bucaille Saulnier Legal Affairs Compliance Pierre Laporte Bernard de Gouttes Purchasing Information Systems Patrick Champalaune Benoît Tiers Protection of Assets and Personnel Thierry d'Arbonneau

CORPORATE GOVERNANCE SUPERVISORY BOARD AREVA is managed by an Executive Board which performs its duties under the control of a Supervisory Board. Missions • The Supervisory Board exercises ongoing oversight of the Executive Board’s management of AREVA, • It deliberates on the overall strategy of AREVA and of the group, • It approves the annual budgets and multi-year plans of AREVA and of its direct subsidiaries, • It provides advance approval to the Executive Board to conclude transactions that the Executive Board cannot accomplish without such authorization. The Supervisory Board is required to meet at least once quarterly. In 2008, the Supervisory Board met 8 times. Members as of April, 30, 2009 15 Members, including 4 Independent members The members of the Supervisory Board are appointed by the shareholders and by holders of voting right certificates, except for employee-elected members of the Board and representatives of the French government. The members of the Supervisory Board serve for a term of five years.

BOARD COMMITTEES The Supervisory Board has established four special committees. It determines their composition, responsibilities and compensation, if any, for its members, who report to him in fulfilling their duties. The Committee members are appointed from among the members of the Supervisory Board. Strategy Committee Members Jean-Cyril Spinetta - Chairman Bruno Bézard Bernard Bigot Oscar Fanjul Luc Rousseau Mission • The Strategy Committee regularly examines the strategic objectives of the company and of its main subsidiaries, • It assesses the merits and consequences of important strategic decisions proposed by the Executive Board, • It ensures that the group’s strategic policy is applied, • It undertakes studies and provides guidance as it deems necessary. Audit Committee Members Guylaine Saucier - Chairman Jean-Claude Bertrand Bruno Bézard Christophe Gegout Mission • The Audit Committee contributes to the definition of the group’s accounting, financial and business ethics standards, • It undertakes studies at the request of the Supervisory Board or on its own initiative, • It reviews proposed budgets, the annual financial statements and multi-year plans, • It verifies the quality of financial information made public by the company, • It hears the Statutory Auditors to support the Supervisory Board’s control mission, • It recommends successors or term renewals for the Statutory Auditors, • It establishes a risk map and estimates resources needed to manage risk. Compensation and Nominating Committee Members Jean-Cyril Spinetta - Chairman Bruno Bézard Oscar Fanjul Mission • The Compensation and Nominating Committee recommends compensation levels, pension plans and in-kind benefits for the group's executives, • It reviews implementation of stock purchase plans for executives, management and employees, • It reviews the background of persons approached to sit on the Executive Board, • It gives its opinion on executive appointments to the group's first-tier companies.

End-of-Life-Cycle Obligations Monitoring Committee Members François David - Chairman Pierre-Franck Chevet Gérard Melet Philippe Pradel Mission • Monitoring of the portfolio constituted by AREVA to cover future cleanup and dismantling expenses. • Evaluation of future facility cleanup and dismantling expenses in applicable group companies. • Review of operating and control procedures for the funds needed to cover these expenses. • Review of the financial asset management program corresponding to these future expenses.

EXECUTIVE BOARD When the AREVA group was created, it adopted the legal status of a business corporation (Société Anonyme) with a Supervisory Board and an Executive Board. Mission Full authority is vested in the Executive Board to act on behalf of the company with regard to third parties in all circumstances, except when authority is expressly attributed by law to the Supervisory Board or to the Meeting of Shareholders. The Executive Board meets whenever AREVA’s interest so requires. Members The members are appointed by the Supervisory Board and serve a 5-year term. Anne Lauvergeon Chief Executive Officer of AREVA Gérald Arbola Member of the Executive Board, Chief Operating Officer of AREVA Didier Benedetti Member of the Executive Board, Chief Operating Officer of AREVA NC, in charge of the group's research policy Luc Oursel Member of the Executive Board, President and CEO of AREVA NP Bernard de Gouttes, Senior Vice President, Compliance for the Group, is the secretary of the Executive Board. Main activities 2007 • Examination of the REpower deal • Approval to carry out the Comurhex II conversion plant project • Approval to set up a joint venture between AREVA T&D Holding and Sunten • Approval of AREVA’s acquisition of UraMin • Approval of AREVA’s acquisition of a 51% stake in Multibrid • Approval of the 2008-2012 Strategic Action Plan • Approval of the 2008 budget proposal • Approval of AREVA’s buy out of 70% of Koblitz. 2006 • Review of the GBII project

• Acquisition of SFARSTEEL • Review of the strategic action plan • Review of the Research and Innovation policy • Progress update on the OL3 project execution • Creation of a subsidiary in Canada

SCIENCE AND ETHICS COMMITTEE To continue its strides forward, AREVA has sought the counsel of prominent individuals from the community, creating its own Science and Ethics Commission. Chaired by François Ewald, this commission is a think tank focused on public perceptions of science and technology, the role of the company in its environment and other important subjects. It also formulates recommendations to the Chairman of the Executive Board. The independent members Roger Balian: Chairman of the Société française de physique, Member of the Académie des sciences Francis Balle: Professor at the University of Paris II, former Member of the Conseil Supérieur de l’Audiovisuel (CSA - French audiovisual authority) Geneviève Barrier-Jacob: Professor Emeritus at the Faculté Necker - Enfants Malades, former Director of the Samu de Paris emergency medical service and former Vice Chairman of the Comité national consultatif d’éthique Christian de Boissieu: Chairman of the Conseil d’analyse économique, Professor at the University of Paris I - Panthéon Sorbonne Edouard Brezin: Professor Emeritus at the Université Pierre et Marie Curie, Member of the Laboratoire de physique théorique de l’École normale supérieure, Honorary Professor at École Polytechnique, Member of the Académie des sciences Georges Charpak: Nobel Prize in Physics Jean-Marie Colombani: Journalist, Chairman of JMC Média François Ewald: Professor at the Conservatoire national des arts et métiers, Chairman of AREVA’s Science and Ethics committee James Lovelock: Companion of Honour, Commander of the Order of the British Empire, Member of the Royal Society, Honorary Visiting Fellow of Green College, Oxford University Roland Masse: Member of the Académie des technologies, former Chairman of the Offi ce de protection contre les rayonnements ionisants (OPRI) Érik Orsenna: Writer, Member of the Académie française Michel Serres: Science historian, Member of the Académie française Alain Touraine: Sociologist, Chief Scholar at the École des hautes études en sciences sociales Maurice Tubiana: Former Chairman of the Académie de médecine, Member of the Académie des sciences, Honorary Director of the Institut Gustave Roussy, Honorary Chairman of the Centre Antoine-Béclère, Honorary Chairman of AREVA’s Science and Ethics committee. The AREVA members Anne Lauvergeon: Chief Executive Officer Alain Bucaille: Senior Vice President, Research and Innovation Bernard de Gouttes:Senior Vice President, Compliance Olivier Loubière: Business Ethics Advisor

SUSTAINABLE DEVELOPMENT AREVA WAY Our commitment to sustainable development Processes and tools serving a goal that has become a way of living and acting An inclusive, consistent approach nurtured by experience and receptiveness. When AREVA was established in September 2001 through the combination of several different entities, the Executive Board - led by its Chief Executive Officer, Anne Lauvergeon - made sustainable development the keystone of its industrial strategy. Aware of the responsibilities that its leadership position carries, and of the role of nuclear power and electricity networks in the planet's energy challenges, the group draws on proven safety and quality practices and on its tradition of precision and risk management to unite entities' cultures around sustainable development. To translate this choice into reality, AREVA integrates sustainable development into its business strategy and its management practices via a continuous improvement initiative. Sustainable development at the core of strategy and management Integrated into the general business and budgetary management process, sustainable development objectives are entirely part of management and facilitate dialogue between the units and top management. Continous improvement The group's sustainable development policy is served by a commitment to ongoing improvement. It is implemented through a continuous improvement process that revolves around 10 commitments and is underpinned by specific management criteria that enable each entity to assess its own performance and define performance improvement plans that are consistent with the overall objectives. This process has led to the establishment of social and environmental performance indicators. Dialogue: listening and accountability AREVA assumes its responsibilities as a corporate member of society. Because its operations may prompt questions, the group dedicated to getting to know its stakeholders, to informing them, to understanding what they want, to building open and constructive dialogue. The group also reports publicly on developments in its programs and commitments through objective, controlled data. Sustainable development is everyone's business All of the company's businesses and departments are concerned with sustainable development. To live it on a day-to-day basis, everyone in the organization is put in a position to understand the challenges and to propose areas for improvement.

COMMITMENTS A sustainable development policy... AREVA has made sustainable development the keystone of its industrial strategy with the ambition of achieving growth that is profitable, socially responsible and respectful of the environment. Aware of the group's responsibilities, AREVA has concretised its sustainable development policy towards its shareholders, customers, employees and partners around 10 commitments. ... structured around 10 commitments. These commitments materialize our contribution to each of the pillars of our approach: respect for the environment, economic development, and social and societal expectations.

GOVERNANCE Our commitment Operating in a responsible and ethical manner Manage our operations responsibly in accordance with the group's values, assess and truthfully report on our performance to shareholders and all stakeholders. Main objectives Implement an international e-learning program to raise ethics awareness among group employees Participate proactively in discussion groups - led by the "Business Leaders Initiative on Human Rights" - on the integration within companies of human rights issues Integrate respect for human rights into the group's decision-making processes. Some carried out actions A charter supported and implemented by all AREVA adopted a Values Charter, after collective deliberations by management and upon recommendation of the Science and Ethics Committee. Translated into 11 languages, the Charter defines the group's values through action principles and rules of conduct. To support this Charter, the group has deployed training programs, such as: seminars on ethics and values awareness aiming at group managers an e-learning module, based on role-play, to make employees aware of the conduct to be adopted. Each year, group executives commit by signing a letter of compliance with the Values Charter and by reporting on actions taken. Strengthening the promotion of human rights In its preamble, the AREVA Values Charter refers explicitly to the need to respect and promote human rights. The group has increased its involvement by: integrating sustainable development commitments into the supply chain: suppliers make a commitment by signing a contractual document promoting social diversity: AREVA seeks to integrate this element into its management system, as well as within its continuous improvement tools and processes. Some figures 335 group managers had followed ethics training by the end of 2006 Innovest, a non-financial rating agency, evaluated the group's social and environmental performance and practices. In 2006, Innovest gave the group an A rating on a scale from A to D. Consult the Innovest ratings for 2005 and 2006 Focus Strengthening the sense of belonging around the group's values A founding governance principle involves sharing the group's vision and values with the largest possible number of employees. Among the means used, AREVA University offers the "Sustainable Generation" program, which mobilizes managers to implement practical projects related to sustainable development issues (balancing private/professional life, sharing knowledge, reducing CO2 emissions, etc.).

CONTINUOUS IMPROVEMENT Our commitment Widely institute the continuous improvement initiative Implement a continuous improvement initiative based on practices shared throughout the group. Main objectives Adapt the AREVA Way model to take into account additional requirements arising from the group's policies Expand the establishment of certified and integrated management systems: environment, quality, occupational safety Strengthen the detection and collection of best practices within the group Audit the self-assessment process and make results verifiable Deploy the sustainable development awareness model Launch Sustainable Generation groups in North America and Latin America. Some carried out actions A constant search for performance and continuous improvement In 2006, the deployment of the continuous progress process was extended to all of the group's entities. Tools were implemented to measure the performance of entities and encourage progress for everyone. Strategic objective charts that factor in the results of these self-assessments were developed as part of the strategic action plan process. They were then broken down into operational objectives and performance improvement plans that are written into the budget. Sharing experience and best practices In 2005, a program to identify best ideas and practices was launched. In 2006, 40 case studies were selected and disseminated through internal communication tools, notably the group intranet. These "comparative assessments", under which 2 entities submit the results of their self-assessments to each other, were also encouraged. At the end of 2006, 17% of the group's employees had carried out this type of evaluation. Our efforts to promote sustainable development Two internal events were organized to involve employees in the initiative: the "AREVA Sustainable Development Awards", a competition that rewards a project based on the 3 pillars of economy, environment and social progress the AREVA Way Forum that gives managers an opportunity to exchange ideas about the group's sustainable development challenges. Some figures In 2006, the group consolidated and accentuated the progress achieved in 2005. The proportion of practices that were not applied or were still in the launch stage decreased by 10%. In 2006, 9 integrated certifications (quality, environment, occupational safety) were attributed. Focus Self-assessment of corporate departments The involvement of corporate departments in the AREVA Way process is intended to strengthen the departments' cross- cutting activities along with those of the operating units. The main areas for assessment of a corporate department are: the goals and clarity of policies their alignment with new demands from stakeholders the quality of processes and tools made available by the organization the leadership provided for the functional network.

ECONOMIC PERFORMANCE Our commitment Planning ahead to sustain solid financial performance and growth Ensure the group's sustainability through long-term profitable growth. Main objectives Pursue the objectives set for 2011: capture one third of the world market for nuclear energy achieve 5 billion euros in electricity transmission and distribution sales revenues achieve double-digit operating margin develop a significant position in the field of renewable energies. Perform audits of selected suppliers to ensure compliance with the Sustainable Development Declaration for Suppliers. Some carried out actions Strong growth in net income AREVA's ability to take advantage of market opportunities was confirmed in 2006, notably through: an order backlog of 25.6 billion euros at the end of 2006, equal to 2.5 years of sales revenues growth in sales revenues of 7.3% consolidated net income of 649 million euros, up almost 44% compared with 2005 a positive operating income of 407 million euros compared with 551 million euros in 2005. Investing to meet our customers' needs The current climate provides a number of growth drivers for AREVA: the nuclear revival the rejuvenation of resources for power generation and electricity transmission and distribution the development of renewable energies rising demand in developing countries. To prepare for growth in its markets, AREVA has pursued a capital expenditure program over the past several years: in 2006, it reached 1.25 billion euros, three times the amount invested in 2005. Leveraging factors that create value Financial performance is the reflection of several factors: the performance of the group's own resources and processes: employees, production and manufacturing, management and reporting systems flows that depend on external stakeholders: customers, suppliers, administrations, financial markets, etc. These factors are actively managed, measured and continuously improved. At the end of 2006, 1,569 of the group's suppliers, representing 42% of the purchasing volume, had signed the "Sustainable Development Declaration for Suppliers". Some figures At the end of 2006, AREVA had a strong balance sheet with a net cash position of 251 million euros From 2007 to 2009, the group's 7 largest customers will invest 45% more than during the 2004-2006 period. Focus AREVA Way, a progress driver When the Transmission & Distribution division joined AREVA in early 2004, a 3-year profitability optimization plan was set up with the goal of reducing costs by 450 million euros over 3 years. This program also encourages everyone to share their successes and their experiences. The most successful initiatives are recognized internally.

INNOVATION Our commitment Energy from expertise Develop and harness best-in-breed technologies to anticipate customer needs and increase our cost-competitiveness while complying with nuclear safety, occupational safety and environmental protection requirements. Main objectives Devise an eco-design plan for nuclear fuel based on life cycle analysis and R&D projects Pursue and reinforce our actions in the field of renewable energies. Some carried out actions Development of renewable energies Since 2004, AREVA has been reflecting on the development of solutions for electricity production through non CO2 emitting energies. In 2006, the group created the Renewable Energies business unit, which focuses on 3 main themes: wind power biomass: the group has designed and installed turnkey biomass plants in Brazil and India fuel cells: AREVA intends to develop this clean, silent, highly energy-efficient technology in the safety and public transport sectors. Widely instituting the eco-design initiative Within the group's Transmission & Distribution operations, core activities focus on: limiting the use of hazardous substances defining and formalizing end-of-life and waste recycling procedures cutting back on of SF6 emissions - sulfur hexafluoride, 1 of the 6 greenhouse gases. Since early 2006, several pilot actions have been launched: the Engineering business unit has applied the eco-design methodology to the COMURHEX plant modernization project following the revision of the uranium life cycle according to ISO 14040 standards, a nuclear fuel eco-design plan was launched in 2006. Research and development programs Thanks to its efforts in this area, AREVA targets: the safety and reliability of its facilities greater energy efficiency cost reductions final waste minimization natural resources conservation future generations of nuclear systems. To achieve this, the group is focusing on 7 key areas: stepped-up efforts in uranium exploration acquisition of ultracentrifuge technology improvement of fuel performance levels EPR licensing in different countries studies for a Generation III treatment and recycling plant ultra-high voltage transmission technologies solutions for smart power grids. A figure 669 million euros, or 62% of sales revenue: the investment made by the group in research and development in 2006.

CUSTOMER SATISFACTION Our commitment Offer innovative products, systems and services for our customers Listen to our customers, anticipate their needs, support their growth, and increase and measure their satisfaction. Main objectives Revitalize the listening process and reaffirm our bias towards the customer Define and implement the action plan resulting from the AREVA T&D customer survey Continue to roll out innovative products, systems and services. Some carried out actions Reinforce and expand customer receptiveness Since 2003, AREVA NP has conducted more than 300 face-to-face interviews with 26 electric utilities. This has enabled AREVA to define methods and tools to listen to our customers. In 2005, this new approach was used with customers in the nuclear business. During 2006, the T&D division conducted more than 400 interviews that will serve as a basis for action plans in 2007. These various surveys show that AREVA is perceived by its customers as a reliable partner and industry reference. Meet customer requirements even better In terms of marketing innovation, customer satisfaction surveys are a valuable source of information. The group intends to put these lessons to good use to better anticipate market trends and devise innovative business proposals. Two tools have been created: a training module designed to promote bias towards the customer. By late 2006 it had been followed by 200 of the group's managers the Energy Business magazine, which enables us to share our view of markets and energy with our customers and also informs them of the group's initiatives. A figure 19 projets to optimize customer receptiveness have been developed following the series of interviews carried out by the group's marketing teams. Focus KAMs KAMs - Key Account Managers - is a favored AREVA/customer interface. It facilitates internal synergies, reinforces the consistency of their actions and increases their ability to pool customer information. The sharing of best practices is not limited to marketing. It also applies to customer relations and customer satisfaction.

COMMITMENT TO EMPLOYEES Our commitment A strong commitment to the development and diversity of talent Promote our employees' professional development and provide good working conditions. Main objectives Prepare and implement action plans as indicated by the results of employee opinion polls Formalize the group's commitments for hiring disabled people Implement the diversity indicator scorecard Obtain OHSAS 18001 certification for all sites with significant safety aspects Achieve an average work-related accident frequency rate of less than 3 and an average severity rate of less than 0.15 by 2010. Some carried out actions Promoting internal dynamics The group prepared an internal opinion survey based on its sustainable development commitments. Response rates ranged from 70 to 90% depending on the subsidiary. The results were shared and followed up by the implementation of action plans. Rules for the entire group were implemented to encourage performance and the development of talent. Most of these actions were tracked. For example, 70% of all employees had an individual evaluation interview in 2006 and, in the same period, the professional development prospects of 80% of all engineers and managers were reviewed, versus 40% in 2005. In terms of skills development, an agreement on training throughout employees' careers was signed with the trade unions in France. In particular, the agreement includes the commitment to offer each employee 30 hours of training in 2008. Finally, to limit the social consequences of industrial reorganizations, the group offers mobility and training to each employee involved. As a result, 97% of the employees at the sites in the United Kingdom and 92% of the employees at the Saint-Ouen plant in France were able to find a new job in the group or elsewhere. Becoming a leading employer A dynamic program of communications and relations with schools and universities was launched and has generated partnership agreements in Europe, the United States and Asia (particularly in China and India). According to the ranking in the "2006 Universum" study prepared by the 10 leading schools in France, AREVA ranks 14th among preferred employers and 6th among ideal employers for engineers. Pursuing programs that foster diversity In 2005, AREVA's European Works Committee began taking stock of best practices in hiring disabled people and equality between men and women. With regard to the hiring of disabled people: programs are in place in the group to raise the awareness of management and all employees the group is also working through its procurement practices and economic development programs: aid to the protected sector and the creation of businesses by and/or for the disabled. With regard to equality between men and women: the European Metallurgy Federation and representatives of the European Works Committee signed a framework agreement in November 2006 that covers, among other points, equality between men and women. This applies to hiring, training, promotion and remuneration practices AREVA's goal is for 50% of new hires in all fields to be women by 2010 the group has created day care centers in several establishments to enable its employees to harmonize their work with their private lives. Occupational safety: zero accident objective

AREVA has fixed a frequency rate objective of 3 and a severity rate objective of 0.15 for 2010. To achieve this, the group's safety policy priorities include: greater involvement of management in service and subcontracting activities management training establishment of a safety management system (OHSAS 18001) for the sites and activities in which there are significant work-related safety issues. Some figures In 2006, AREVA hired 8,600 new employees No group employees or subcontractor personnel were exposed to a dose greater than 20 mSv (unit of measure of radioactivity) in 2006, compared to 31 people in 2004 and 22 in 2005. Focus The Safety Guide, a tool to improve occupational safety Published by the Safety Committee in early 2006 for all operations managers, this guide: reviews fundamental safety management principles establishes basic rules applicable to key risk situations. Sharing the expertise of senior staff This is the challenge being met by the Knowledge Brokering Bulletin Project, launched by a team from Erlangen in Germany. The project won the 2005 AREVA Sustainable Development Awards. The idea is to share the experience of senior experts. Whenever a topic can give rise to a knowledge transfer, it is reviewed by a multidisciplinary network. The key stakeholders are consulted to prepare a user-friendly document. Thanks to this in-depth dialogue between experienced engineers and their young co-workers, 8 bulletins have already been published.

RISK MANAGEMENT AND PREVENTION Our commitment Understand human factors better to improve risk prevention and management Establish and maintain the highest level of nuclear and occupational safety in all of the group's operations to preserve public and worker health and protect the environment. Main objectives Test the application of additional indicators of safety performance Deploy event analysis training that incorporates "human factors" Strengthen knowledge of safety regulations in countries in which AREVA does business. Some carried out actions High level of safety and transparency The management and prevention of technological risks is a top priority for AREVA and is part of the cultural heritage of the group's subsidiaries. This was reaffirmed in 2005 with the publication of the Nuclear Safety Charter, which is helping to standardize practices and pool knowledge. The group is also solidly committed to transparency. AREVA publishes its inspection reports, describing the status of safety in its nuclear facilities, carried out by in-house inspectors and independent inspectors from national safety authorities. The 2006 edition presents a generally satisfactory situation, although 3 performance improvement goals were identified in the fields of: performance measurement safety culture awareness in-depth events analysis. Methodical analysis of safety aspects Maintaining the group's safety culture is essential to improve performance. Each safety incident is subjected to in-depth technical analysis. In the past few years, human factors were responsible for 2 out of 3 incidents. To remedy this situation, training in the analysis of events and "near events" was deployed in 2007. In addition, the group carries out prevention actions to identify and assess risks: hazard studies are regularly conducted and updated at all nuclear sites and environmentally-regulated facilities at the end of 2006, 87% of all other sites with significant environmental aspects had organized simplified environmental risk assessments (SRA). The sites are therefore able to assess the relevance and reliability of their prevention and protection systems. AREVA includes health aspects in its risk and impact assessments. By the end of 2006, 80% of all AREVA NC sites had assessed their health hazards. This activity is currently being deployed throughout AREVA NP and AREVA T&D (20% of all sites). The INES scale The International Nuclear Event Scale has been used internationally since 1991. It was designed to facilitate media and public perceptions of the relative importance of incidents and accidents at nuclear facilities and during the shipment of radioactive materials. A figure In 2006, 86 incidents were reported to the French safety authority: 75 at level 0 ("deviation"), 10 at level 1 ("anomaly"), and 1 at level 2 ("incident"). The level 2 incident resulted from non-compliance with an operational instruction. An action plan was implemented to heighten team awareness on the subject. Focus The apprenticeship in human factors

To get a better grip on the human factor in risk prevention, the La Hague plant set up a program of seminars in 2005 for managers. Operators participated in training sessions, led by management staff, illustrated by real case studies. In 5 years, this program has trained 1,500 line personnel, facility operators and radiation protection personnel.

ENVIRONMENTAL PROTECTION Our commitment Minimizing the environmental footprint through risk prevention Limit our environmental impacts by reducing our consumption of natural resources, controlling our releases and optimizing our waste management. Main objectives Continue the establishment of environmental management systems Reduce our environmental footprint by concentrating efforts on major contributors Examine the soil management component in more detail Continue efforts to limit greenhouse gas emissions. Some carried out actions Controlled environmental impacts In 2006, the great majority of AREVA sites had received ISO 14001 certification or were in the process of doing so. In coming years, environmental certification initiatives will be expanded to contracting operations, the nuclear engineering business and major construction sites. In addition, the Green Way guidelines were deployed group-wide. They are designed to harmonize assessment systems and environmental management practices. In 2007, a review process identified divergences from these management criteria and corrective measures were taken. Priority will be given to SEA (significant environmental aspect) sites. Improved environmental performance In terms of the environmental footprint, the 3-year goals set in 2004 were exceeded in 2006 in every area except energy consumption, which dropped only 13% against the initial target of 15%. Substantial reductions were recorded, notably: 20% in water consumption: Jeumont achieved a 42% decrease thanks to a leak reduction campaign while Aix-les-Bains achieved 67% after the technology was changed on the cooling units 10% in paper consumption: the average group employee used 27.3 kg of paper, a drop of 5.2 kg compared to 2004 for group-wide savings of 340 metric tons 20% in greenhouse gas emissions. The group also strives to recycle conventional waste: 40% of all hazardous waste was recycled in 2006 (compared with 32% in 2004) 59% of all non-hazardous waste was recycled in 2006 (compared with 44% in 2004). Keeping radiological impacts low A strategy to harmonize measurements and conduct continuous research on ways to reduce radiological impacts was carried out. The radiological impact around the La Hague plant was brought down to 0.01 mSv, far below the regulatory limit of 1 mSv. These measures were extended to AREVA's main nuclear sites, taking local specificities into account. The results of these measures are shared with the local information commissions. Comprehensive radioactive waste management For more comprehensive and reliable management of waste products, a reporting system was set up that factors in the status of the facilities in operation or being dismantled and the different waste management methods. In addition, investments have been made to improve radioactive waste storage and packaging at several sites. A figure 77% of SEA industrial sites have received ISO 14001 certification.

Focus COMHUREX Malvési: 29 million euros invested in environmental protection The Malvési site handles the first step of the uranium ore conversion process. In early 2006, unusually heavy rainfall forced the plant to suspend operations for 2 months and to review its water cycle management practices. Solutions implemented included the creation of new ponds and a water treatment station.

DIALOGUE AND CONSENSUS BUILDING Our commitment Dialogue, a source of performance improvement Establish stakeholder relationships based on trust. Main objectives Report on the information exchange from the Stakeholders Session, improve the process and expand the initiative to other geographic areas Continue the practice of ratings Continue to implement stakeholder mapping based on best dialogue practices. Some carried out actions Responding to local stakeholder expectations more effectively In order to promote dialogue with its stakeholders, AREVA has been mapping their expectations since 2003. This approach consists of identifying, through interviews conducted by a third party, the main challenges (economic, environmental, social and societal) existing between the stakeholders and the production site in question. This method allows sites to compare their own perceptions with the actual expectations of their stakeholders and to develop action plans that respond to these expectations. By the end of 2006, mapping had been deployed on 20 sites, beginning with major nuclear entities and sites regulated under Seveso laws in France, Germany and the United Kingdom. At that stage, more than 200 stakeholders had been interviewed. The expansion of this process to new sites is helping to strengthen local dialogue activities. Continuing external consensus building Every year, the group undertakes an external consensus building program - Stakeholders Sessions - under the aegis of Comité 21 with a panel of stakeholders made up of around 15 organizations representative of the following fields: economics, trade unions, associations (NGOs involved in environmental protection, North-South development, human rights, solidarity) and of French and international government institutions. The summaries, drafted by Comité 21, are available online through the group's intranets and externally at www.areva.com. Focus Niger In 2006, the group strengthened dialogue with stakeholders in Niger, particularly through the creation of a steering committee. Presided over by the prefect of the Arlit and consisting of local elected representatives, representatives of civil society and the administrations concerned, it was set up to determine priority areas for action and distribute projects among the townships. Project oversight is provided by a technical committee of prefectural supervisors and mining company representatives. A local information commission completes the communications and dialogue approach initiated by the group. Its mission is to debate any subjects related to the impact of mining operations and local economic development. The group's dialogue approach recognized by the rating agencies The development since 2003 of initiatives to structure AREVA's relationships with external stakeholders was identified as a strong point by Innovest, a non-financial rating agency. AREVA and public debate In addition to 2 public debates organized in France (1 on waste and the other on plans to build an Evolutionary Pressurized Reactor (EPR) at Flamanville), AREVA contributed to the "Energy Review", a publication launched in 2006 by the British government.

The group has demonstrated that nuclear power, used in combination with renewable energies and better energy efficiency, can provide a solution to the United Kingdom's energy supply and environmental challenges.

COMMUNITY INVOLVEMENT Our commitment A local answer to economic and societal challenges Participate in the economic and social development of the communities in which the group operates. Main objectives Pursue humanitarian aid programs with greater employee involvement Increase the internationalization of projects Build public awareness of activities carried out by the AREVA Foundation. Some carried out actions Supporting the economies of our communities AREVA works with local and national partners to promote local development and the diversification of the economic environment. In 2006, aid for local economic development around the T&D division's sites focused on integrating the disabled and youths from "sensitive" neighborhoods. In the Meuse and Haute-Marne departments of France, where the feasibility of a deep geological waste repository is being studied and the Bure underground research laboratory has been set up, 150 jobs have been created and training and business creation initiatives have been implemented. Pursuing humanitarian aid programs Since 2002, the Committee for patronage and sponsorships has selected projects submitted to the group, with preference given to the fields of health, education and the environment in Southern Hemisphere countries. The AREVA Foundation, created in 2007, works in the fields of knowledge sharing, North/South development, access to energy and the fight against global warming. Getting involved in the fight against AIDS AREVA has been actively involved in the fight against AIDS for several years. the group has been a member of the Global Business Coalition on HIV/AIDS since 2004 it also belongs to "Sida-entreprises" (AIDS companies) Anne Lauvergeon, Chief Executive Officer of AREVA, attended the European summit of business leaders on the fight against AIDS in October 2006 the group is actively involved in World AIDS Day. In countries in which it is based, AREVA takes action in the field in association with NGOs committed to the fight against AIDS. Since 2006, the group has conducted a series of assessment and prevention programs in Niger, where a partnership agreement was signed with the government of Niger and Esther, a public interest group. AREVA is also active in China, in India, and among its employees in France. Focus Consignity: the last kilometer As part of its policy to support the economic development of regional employment pools, the group has created a development capital company, AREVADELFI, which supports around 10 local projects each year. The projects supported include Consignity, which has developed an innovative logistics solution: secure package centers allow users to drop off and pick up packages weighing less than 30 kg. This system eliminates time constraints and avoids the need for delivery runs during rush hours, helping to reduce both transportation costs and pollution. Funding for higher education scholarships in Niger In December 2006, a 5-year agreement to grant scholarships for excellence to Nigerien students was signed in Niamey,

between AREVA CEO Anne Lauvergeon, the Nigerien Minister of Secondary and Higher Education, Research and Technology, and the Nigerien Minister of Mining and Energy. The scholarships will go to engineering students and senior technicians in the fields of mining, geology, ore processing, the environment and civil engineering. Higher technical education is a strong driver of economic development in Niger.

STAKES Ever since its creation in 2001, AREVA has opted for a communications strategy which highlights its solutions for carbon-free energy production and reliable electricity transmission and distribution. The group, world leader in its businesses, made sustainable development the keystone of its industrial strategy: this is the AREVA Way. Today, the brand AREVA is a point of reference in the energy sector. To anchor and support AREVA's growth, the group's communications strategy has four major goals: to be known and recognized, to be understood, to encourage dialogue, and to foster cohesion. Jacques-Emmanuel Saulnier, Senior Vice President, Communications - Spokesman of the AREVA group Communications committed to awareness, recognition and image AREVA operates in a competitive and changing world populated by other well-known brands. Communications are vital to standing out. The group thus benefits from a strong identity - the key to performance and quality - meant to create value. Advertising campaigns and sponsorships have enabled AREVA to develop its awareness and credibility. The brand has quickly come to exist around a modern, unifying name and a unique identity anchored in a sustainable development approach. Communications committed to pedagogy By the very nature of its operations, the culture of the AREVA group is dominated by science and technology. Its communications are based on rational thinking founded on tangible evidence. From the beginning, the brand has sought to clearly introduce its businesses using detailed graphs, industrial diagrams and illustrations with a definite focus on pedagogy. For example, AREVA's TV ad « Energy Experts », was designed as an educational tool that illustrates and summarizes each stage of the group's industrial cycle. Accessible from the website, the dedicated on-line module provides a more detailed explanation of the group's operations, through images. Communications committed to dialogue The energy sector and more specifically nuclear energy, is the subject of major continuous debate. The AREVA group has always sought to take part in this debate and has even encouraged the dialogue around its operations. Using a structured and transparent approach, AREVA has facilitated the dialogue with experts, civil society players and all the involved stakeholders. The interactivity of the group's website is a revealing example of its openness: AREVA designed it as a dialogue corner to

remain open to the publics' questions and provide them with its answers. Communications committed to internal cohesion Combining a wide range of complementary skills and with more than 61,000 employees speaking some 20 languages, AREVA is a group rich in diversity. AREVA's communications have always promoted cohesion and have sought to build a common culture for all employees, encouraging synergies and optimizing the group's performance. This spirit is echoed in the AREVA's human resources policy, which is open to all talent. In addition, AREVA's participation in the America's Cup with the AREVA Challenge shows the group's attachment to team spirit and to the uniting of talent and expertise.

SPONSORSHIP AREVA sponsorship The AREVA brand sponsors operations that promote teamwork, that strive for continuous improvement and that possess an international dimension, all of which characterize the group. World leader in providing CO2-free energy solutions, AREVA only attaches its name to sports based on technologies that do not contribute to global warming. The sponsorship actions financed by AREVA are consistent with its business interests and company culture, and the brand and image of the group derive benefits from the associations created as a result of these actions. AREVA was thus the main sponsor for the French yacht participating in the 2003 and 2007 America’s Cup and has now become a partner of the French Match Racing Team and the French Sailing Federation and will remain so through 2011. AREVA CHALLENGE AREVA, a new energy in the race AREVA is the partner to the French team racing in the 32nd America's Cup. As such, the group wants to embody a new energy in an international competition that mirrors its values and brings people together. AREVA and the America's Cup: only the best compete Like the teams racing in the America's Cup, AREVA is a key player in a very high-level competition in its industrial sector. To anchor its position as a leader in the energy market, precision, reliability and quality are foremost requirements for AREVA. They are also imperatives for achieving maximum performance for the sportsmen taking part in the America's Cup. Merging talents to meet the challenge At AREVA, diverse backgrounds, synergistic skills and team spirit are vital to our success. The group's progress is built on the motivation and unity of our employees around a shared objective. This conjunction of talents is just as important for meeting a sports challenge: AREVA Challenge is made of men and women of different nationalities, all of whom are experts in their field, with each one bringing added value and motivation to the building of a unique saga. The demand for continuous innovation For AREVA, remaining on the cutting edge of technology is crucial, just as it is for AREVA Challenge. The same continuous improvement dynamics apply to our associates and to the racing crew, as both seek out and develop innovative solutions for ever more effective responses to complexity and change in their environment. By working synergistically on the technological aspects of the sports program, AREVA is more than a sponsor, it's a genuine partner. AREVA's involvement with the French challenger is part of an ongoing process rich in meaning for the group, because it is consistent with its values and expertise.

PATRONAGE & PARTNERSHIPS The actions of the AREVA Foundation are focused on solidarity projects, development aid, and programs to make energy available to all while preserving the planet for future generations. Although independent from the actions of the AREVA Foundation, cultural patronage and emergency aid are both an integral part of the Group's patronage program: works of art are purchased and donated to the Guimet Museum of Asian Art, and funding is set aside for cultural exchange programs; emergency funding is provided for victims of natural catastrophes, etc. All these actions point to AREVA's active involvement in the life of the community.

EMERGENCY In emergency situations, AREVA provides resources and immediate response to victims of natural disasters in countries in which the group operates. 2008 05/19/2008 AREVA mobilizes support to help earthquake victims in China 2007 12/04/2007 Cyclone in Bangladesh: AREVA takes action 2006 05/29/2006 AREVA supports the victims of the May 2006 earthquake 2005 Earthquake in Pakistan: AREVA supports the International Federation of Red Cross and Red Crescent 12/22/2005 Societies 07/22/2005 Famine in Niger: AREVA takes action 01/10/2005 Asian Tsunami: AREVA supports CARE International

AREVA creates its Foundation The patronage policy managed by AREVA since 2003 results in concrete achievements reflecting the company's desire to communicate with its stakeholders, both in France and abroad. Today AREVA wants to further its commitment by creating its Foundation. After consulting with employees, the following central themes have been selected for the Foundation: North / South development knowledge sharing energy and Climate Change They are addressed in terms of the following topics: development education / training health care energy / environment Selected projects contribute to the Group's development in the countries where it has operations. List of patronage projects led by AREVA Our organization The Board of Trustees It both determines the orientations of the Foundation's activities and monitors their implementation. The Board of Trustees is made up of six members: Gérald Arbola, President of the Foundation, AREVA Executive Director General Jacques-Emmanuel Saulnier, Director of Communications, AREVA spokesperson Ralf Güldner, Executive Director of AREVA NP Maureen Kearnley, Staff representative Anne Heinis, Qualified person Frédéric Tona, Qualified person The Patronage and Partnerships Committee

The Committee examines and selects projects in accordance with the Foundation's central themes. This Committee is made up of colleagues representing the group's various entities and competencies - legal, scientific, operational, etc. It pre-selects projects and submits them to the Foundation's Board of Trustees. The Patronage and Partnerships / Foundation Team This three-person team evaluates and monitors projects, acts as the interface with the associations, etc. The Group's commitment is meaningful only insofar as it is shared by our employees which is why the company associates them as much as possible with the Foundation's actions.

DEVELOPMENT AREVA participates in the development of southern hemisphere countries. It encourages local initiatives for sustainable growth, such as micro-financing and training support, to help contribute to the economic, social and environmental development of these countries. India Solar-powered school in the Indian Himalayas Mongolia Humanitarian work Gabon Social programs for the Mounana inhabitants USA AREVA supports "Habitat for Humanity"

EDUCATION / TRAINING AREVA is involved in improving the quality of life for sick and disadvantaged children. It supports projects that give children access to education and leisure activities, allowing them to grow and develop in a more stable environment. France AREVA, founding member of the C. Génial Foundation Brazil Support to the São Paulo center of the Gol de Letra Foundation Niger Creation of a professional training center for bread-making in Niger Niger Creation of a public library in Arlit Brazil Training and Integration of young people from poor areas Niger Donation of law books Canada Support to University of Saskatchewan Geology and Toxicology Departments USA Sponsor for U.S. Department of Energy National Science Bowl France Educational programs at the Guimet Asian Art Museum Niger EMIG/EMAIR scholarships France Gift to the Pierre Bonelli Scholarship of the Institut des Hautes Études Scientifiques

OPERATIONS World energy expert The group offers its customers reliable technological solutions for non CO2 emitting power generation and electricity transmission and distribution. The group is the world leader in nuclear power and the only company to cover all industrial activities in this field. AREVA's businesses help meet the 21st century's greatest challenges: making energy available to all, protecting the planet, and acting responsibly towards future generations. An integrated offer, 4 divisions To answer its customers' needs, AREVA's development strategy is based on a balanced presence in Europe, North and South America and Asia. the group's worldwide presence A solution for each customer For its nuclear operations, the group offers its customers valued solutions throughout the cycle: Front-End Division: uranium ore exploration, mining, concentration, conversion and enrichment ; nuclear fuel design and fabrication. Reactors & Services Division: design and construction of nuclear reactors and other non CO2 emitting power generation system ; supply of products and services for nuclear power plant maintenance, upgrades and operations. Back-End Division: treatment and recycling of used fuel ; cleanup of nuclear facilities ; nuclear logistics. In renewable business, the group offers a selection of alternative solutions for CO2-free energy generation. Renewables: design and manufacture high output offshore turbines, design and supply turnkey bioenergy power plants as well as small hydro-electric power plants, and offer solutions for producing hydrogen by water electrolysis and for generating electricity with fuel cells. The group, through its transmission and distribution (T&D) operations, provides products, systems and services designed to transport and distribute electricity from the power plant to the final user: T&D Division: supply of products, systems and services for electricity transmission and distribution networks.

FRONT-END DIVISION The Front-End Division covers all nuclear operations leading up to actual electricity production. The Front-End Division's operations are organized around 4 business units*: Mining: prospecting, mining and concentration of uranium ore. Chemistry: conversion of uranium ore into uranium hexafluoride. Enrichment: enrichment of uranium hexafluoride. Fuel: nuclear fuel design and fabrication. Throughout the fuel fabrication process, electricity-producing clients retain ownership of the fuel at all times. AREVA supplies them with uranium concentrates, which are then processed. * Business unit: activity or operational result center.

OVERVIEW Front-End Division Supplying high-performance fuel Strategic priorities Increasing AREVA’s mineral resources and production Replacing and expanding enrichment and conversion plants Setting the standard for fuel assembly supply Multiplying internal synergies to compete more effectively 2008 key data Sales revenue breakdown €3,363 M by business unit in sales revenue 28% of the group's sales 14,240 employees Sustainable development goals Minimize the environmental impacts of disposal of mill tailings and nitrates and reclaim mine sites after closure Maintain a high level of safety in the use of raw materials and components Reduce greenhouse gas emissions Contribute to the economic and social development of communities in which we do business Continue to monitor employee health Apply eco-design concepts to new products and plant projects Successfully transfer expertise related to changing technologies. MINING

The Mining business unit prospects for mines and processes uranium ore, from which nuclear fuel is made. It then claims mining sites once production is finished. Among the world's top 3 producers of natural ore, the group operates in parallel a uranium trading activity. AREVA has also been producing gold since 1980. The business unit intends to develop its operations in countries where it already has existing industrial operations. This is for instance the case in Canada, where the business unit holds shares in various projects under development, including the one of the Cigar Lake mine, and in Niger with the mining of the significant Imouraren deposit (which will be the second largest open pit uranium mine in the world). It is also carrying out mining exploration and development programs in several countries, including the Central African Republic, Namibia, Niger, Mongolia, the Republic of South Africa, Jordan, Gabon and Senegal. These projects last many years before mining operations begin. Customers The Mining business unit customers are mainly the leading international nuclear power plant operators with whom 5 to 10 years multi-annual contracts are signed. Locations The group operates uranium production sites in Canada, Niger and Kazakhstan. As for gold mining operations, the business unit is located in Sudan and Ivory Coast. The reclamation specialized teams are based in the Limousin region of France. Within the AREVA group, Mining operations are handled by AREVA NC.

CHEMISTRY The Chemistry business unit brings together the group's chemistry and uranium conversion activities. Involved at various stages of the nuclear fuel cycle, it specializes in the transformation of uranium concentrates. Once extracted from mines, the uranium ore must be chemically processed for conversion into uranium hexafluoride (UF6), the intermediate product in the manufacture of nuclear fuel for reactors. The business unit is the world leader in this market. In order to maintain this position, AREVA, thanks to the COMHUREX II project, is the first converter to renew and modernize its conversion industrial installations. The goal is to produce 15,000 metric tons of uranium per year from 2012. This level could be increased to 21,000 metric tons depending on market demand. In addition, AREVA is the leading European producer of gaseous fluorine, essential for conversion. The non-uranium derivatives of the fluorine are used in the electronics and automotive industries. Customers The group supplies uranium hexafluoride to more than 50 customers around the world, mainly major European, Asian and American utilities. The long-term contracts signed with its customers in 2006 can extend up to 2028. Locations The Chemistry business unit's activities are split across 4 industrial sites in the south-east of France: at the Tricastin nuclear site (in the Drôme and Vaucluse administrative departments), at the Malvési plant (near Narbonne in the Aude administrative department) and at Miramas (in the Bouches-du-Rhône administrative department). Within the AREVA group, Chemistry operations are handled by AREVA NC. ENRICHMENT The operations of the Enrichment business unit consist of increasing the proportion of uranium 235 found in natural uranium in order to manufacture fuel for nuclear reactors. Natural uranium contains 0.7% of uranium 235. After the enrichment operation, it contains from 3 to 5%. To increase the uranium 235 content, uranium hexafluoride (obtained from the uranium ore ) must be enriched. Two industrial processes are used worldwide for enrichment: gaseous diffusion and centrifuge enrichment. The Enrichment business unit, through the Georges Besse plant - operated by Eurodif Production - operates uranium enrichment through gaseous diffusion. With the aim to consolidate its position of leading player in the nuclear industry and prepare the future, the group is investing in the construction of the Georges Besse II plant, which will perform enrichment using the centrifugation technology, which will offer better guarantees in terms of energy efficiency, environmental impact and also competitiveness. Customers The group has about 30 electricity-producing customers, mainly located in Europe, in the United-States and in Asia, and

supplies about 100 reactors around the world. The business unit keeps on developing its enrichment services offer particularly in Asia and the United-States. Available worldwide enrichment capacities, expressed in million SWU, are dispatched between various operators. AREVA, with 10.8 SWU per year, is a key actor in the enrichment market. Locations Georges Besse plant, located on the Tricastin nuclear site, has been in operation for almost 30 years without interruption. The new Georges Besse II enrichment plant is being built on the same site. Within the AREVA group, Enrichment operations are handled by AREVA NC. FUEL The Fuel business unit designs, manufactures and sells nuclear fuel assemblies for pressurized water reactors (PWR), boiling water reactors (BWR), and research reactors. After enrichment, uranium hexafluoride is transformed into uranium oxide. This black powder is then compressed into small pellets, loaded into long metallic tubes which look like "rods". These are then assembled in order to form fuel assemblies. A very high-technology product, nuclear fuel supplies the reactor unit in a nuclear power station and must be regularly renewed. The business unit supplies 3 types of fuel: standard fuel made up of enriched natural uranium MOX fuel from a base of plutonium and uranium URE fuel: uranium obtained from spent fuel reprocessing. With almost 40% market share, the group is the world leader in the manufacture of fuel for PWR and BWR reactors. Moreover, all of the sites are committed to an ISO 14001 certification process. All of the group's European sites are certified. Customers The Fuel business unit's customers are the world's leading power utilities, among which: EDF: to supply assembly reloads and MOX UO2 assembly Electrabel: for several fuel reloads at 5 of Belgium's 7 reactors CGNPC (China Guangdong Nuclear Power Corp.): for the supply of fuel assemblies and reloads for the first 2 EPR reactors to be sold in China The city of Baotou (China): for assistance in the construction of PWR assemblies Goesgen (Switzerland): for the supply of ERU assembly reloads. The business unit mainly operates under multi-year contracts covering one or more reactors. These contracts usually include services such as transportation, handling and technical support. Locations The Fuel business unit is present in France, Belgium, Germany and the United States through its 3 business lines:

"Design and Sales", based in Germany, France and the United States "Zirconium", with 5 plants in France and 1 in Germany "Fuel Fabrication", organized into 8 plant sites (3 in the United States and 5 in Europe). The business unit also includes 2 other entities: Cerca, which has plants in France, fabricates and sells fuel elements for research reactors Federal Operations, located in the United States, provides nuclear engineering services to the U.S. Department of Energy (DOE) and other federal government programs. Within the AREVA group, Fuel operations are handled by AREVA NP. REACTORS & SERVICES DIVISION The Reactors & Services Division covers operations concerning the design and construction of light water nuclear reactors, the PWR and the BWR, as well as the EPRTM type reactors. It is the world's leading supplier of equipment and services for nuclear energy. The group also supplies maintenance, modernization and capacity improvement services for existing reactors. The Reactors & Services Division is made up of 7 business units*: Plants: design, construction and startup of new reactors, and monitoring, renovation and optimization of existing reactors. Division overview Equipment: manufacture of key components for nuclear power plants. Nuclear services: reactor optimization services (inspection, maintenance, improvement, etc.). Nuclear measurement: design and construction of systems and devices designed to measure radioactivity. Consulting and information systems: IT services (information management, integration and consulting). AREVA TA: design, production and maintenance of nuclear reactors for the propulsion of submarines and aircraft carriers. The business unit has also developed capabilities in the engineering of industrial installations and the design of equipment and electronic systems for rail and air transport. In 2006, the group supplied the majority of the world's pressurized water reactors (PWR), representing close to two thirds of all power reactors in the world. * Business unit: activity or operational result center.

AREVA (Euronext: CEI) is a French public multinational industrial conglomerate that is mainly known for nuclear power; it also has interests in other energy projects. It was created on 3 September 2001, by the merger of Framatome and Cogema (now AREVA NC). Its main shareholder is the French-owned company CEA, but the German company Siemens also retains 34% of the shares of AREVA's subsidiary, AREVA NP, in charge of building the EPR Reactor, an advanced Generation III+ nuclear reactor. The parent company is incorporated under French law as a société anonyme (SA: public corporation) and is also recognized as a public limited company in Britain and a corporation in American jurisdictions. The French State owns more than 90%. The corporate name AREVA is inspired by Arevalo Abbey in Spain. Anne Lauvergeon is the Chairman of the Executive Board (equivalent to President and CEO). AREVA official Ralf Güldner is the vice-chairman of the World Nuclear Association. According to the company official website, Areva realized €13,16 billion in sales revenue in 2008 and €417 million in operating incomes. Energy company AREVA is a world-leading company in nuclear energy. It is the only company with a presence in each industrial activity linked to nuclear energy: mining, chemistry, enrichment, combustibles, services, engineering, nuclear propulsion and reactors, treatment, recycling, stabilization, and dismantling. AREVA also claims to offer technological solutions for CO₂-free energy; and produces earth leakage circuit breaker technologies. Three main subsidiaries form the core of AREVA: AREVA NP (formerly Framatome ANP) — Nuclear Power: develops and builds nuclear reactors; Siemens has a 34% stake in AREVA NP AREVA NC (formerly Cogema) — Nuclear Cycle: covers the whole nuclear fuel cycle, from mining to waste disposal. Owns Eurodif. AREVA T&D — Transmission and Distribution: power transmission and distribution. It was bought from Alstom on 9 January 2004. The major partners of AREVA include: Technicatome, Euriware, STMicroelectronics, Eramet, and SAFRAN. AREVA is part of the Global Nuclear Energy Partnership (GNEP) alliance, along with the Japan Atomic Energy Agency (JAEA), Washington Group International and BWX. GNEP is a plan initiated in 2006 to form an international partnership to reprocess spent nuclear fuel in a way that renders the plutonium in it usable for nuclear fuel but not for nuclear weapons.

Administration The actions of the Chairman of the Executive Board, Anne Lauvergeon, are subject to considerable oversight by both the board of directors and the supervisory board. In 2006, Spencer Abraham, the former U.S. Secretary of Energy, was named non-executive chairman of AREVA Inc., the U.S. subsidiary of AREVA. Jean-Pierre Raffarin's government announced the privatization of AREVA in 2003, but it was postponed several times, the French government opting finally for the privatization of GDF and EDF. At the end of October 2005, Prime Minister Dominique de Villepin announced that he had suspended the privatization process. History AREVA has its roots in Framatome, which was founded in 1958 by several companies of the French industrial giant The Schneider Group along with Empain, Merlin Gérin, and the American Westinghouse, in order to license Westinghouse's pressurized water reactor (PWR) technology and develop a bid for Chooz 1 in Belgium. Called Franco-Américaine de Constructions Atomiques (Framatome), the original company consisted of four engineers, one each from each of the parent companies. The original mission of the company was to act as a nuclear engineering firm and to develop a nuclear power plant that was to be identical to Westinghouse's existing product specifications. The first European plant of Westinghouse design was by then already under construction in Italy. Meanwhile, the Électricité de France (EDF), the French government-owned electric utility, in opposition to the Commissariat à l'énergie atomique (CEA), maintained an interest in PWR technology. The Chooz contract offered the EDF, which joined with the Belgian electric utilities to call for the Chooz bids, the opportunity to explore PWR without offending French national pride in its homegrown GCR technology. By the beginning of 1960, only two bids remained in contention; midway through 2006 Framatome received informal permission to begin design work on the Chooz reactor. A formal contract was signed in September, 1961 for Framatome to deliver a turnkey system, that is, not only the reactor, but an entire, ready-to-use system of piping, cabling, supports, and other auxiliary systems, propelling Framatome from a nuclear engineering firm to an industrial contractor. By 1981, France was pressing for even more control of Framatome. In January, Westinghouse agreed to sell its remaining 15 percent share to Creusot-Loire, which now owned 66 percent, and to cede complete marketing independence to Framatome. In February, the Belgian Baron Empain sold his 35 percent interest in Creusot-Loire to Paribas, a French government-linked banking group.

The May 1981 Socialist electoral victory in France intensified calls for greater government control of Framatome. A January 1982 company reorganization simultaneously strengthened French public and private control of the company by allowing Creusot-Loire to increase its share of the company while increasing CEA say in the running of the firm.

Nuclear reactor designs EPR European Pressurized Reactor The EPR Reactor was originally known as the "European Pressurized Reactor" and later as the "Evolutionary Power Reactor" for the US market. It is now simply called the "EPR(tm) Reactor". AREVA has been constructing Finland's fifth reactor in Olkiluoto since 2005. The reactor, which is one of the first of the new, third generation reactors (EPR - European Pressurized Reactor), was supposed to begin producing electricity in 2009, but the project has been delayed because of technical difficulties and quality problems. In August, 2007 the production start was postponed to 2010–2011. During the political debate in 1992, the official price estimate was 2500M euros. In 2004, a contracted fixed price was established as 3200M euros. In its 2006 Annual Report, AREVA recorded a writedown of 507M euros associated with the delay. A Jan 2008 financial press estimate pegged the overrun so far at 1.5B euros [AFX News Limited AREVA proposes to sell 2 EPR reactors to South Africa's Eskom UPDATE 01.31.08]. The second EPR in France is currently under construction at the Flamanville Nuclear Power Plant. As of May 2009, this plant is also behind schedule and over-budget. Other EPRs were to be sold to the United Kingdom and to the United States (See below). On 13 August 2007 the French newspaper Le Parisien alleged that the Franco-Libyan civil nuclear power agreement signed by President Nicolas Sarkozy did not concern desalinization of sea water, as claimed by the French government, but instead focused in particular on selling the EPR to Libya, a contract potentially worth $3 billion. Le Parisien cited Philippe Delaune, deputy to the deputy director of international affairs for the CEA atomic agency, which is the main share-holder in AREVA. Following allegations that the deal had been related to the release of the Bulgarian nurses, the French Socialist Party, through the spokesperson Jean-Louis Bianco, declared that this deal was "geopolitically irresponsible". The German government also denounced the agreement. In November 2007, AREVA agreed to a €8 billion deal with the China Guangdong Nuclear Power Group to supply them with two EPRs in Taishan, Guangdong, China. Under the terms of the agreement, AREVA will also help operate the plant, including the reprocessing of spent fuel.

Atmea I The Atmea I is a new evolutionary reactor design targeted towards both developed and developing economies. It will be developed through a joint venture with Mitsubishi called Atmea. Current plans are targeting power output of about 1,100 MWe, but the design could be scalable to produce different levels of power output to fit different size grids. Current plans call for the design to be ready for licensing applications by the end of 2009. Kerena Areva has announced that its 1,250 MWe Generation III+ boiling water reactor (BWR) design, provisionally known as SWR-1000, will henceforth be called Kerena. The Kerena design was developed from that of the Gundremmingen Nuclear Power Plant by Areva, with extensive German input and using operating experience from Generation II BWRs to simplify systems engineering. Renewable energy In 2007 Areva bought a 51% Stake in the windturbine manufacturer Multibrid.

World dwide presence p e Worldwi the ARE ide, EVA group h an indust has trial presence in 40 coun ntries and its commercial l network reaches mor than 100 c re countries. It employs 58, ,000 people and has consolidated sal les revenue o €10.863 billion. In 20 of b 006, Fortune Magazine r e reported that AREVA was the "Most t t Admired Global Ene d ergy Compan ny." AREVA has partnere with engin ed neering cont tractors to ai in the reco id onstruction o Iraq by of turing equipment to construct electri substatio manufact ical ons. In June 2 2007, AREV announce plans to ac VA ed cquire the A African uranium mining c company UraMin f a final pr of about 2.5 billion U for rice t USD. This m move further beefs up AR r REVA's nuc clear business, and AREVA plans to in , ncrease prod duction to 9 m million kilog grams of yel llowcake by 2012. AREVA has also signed a memo understandin with Mitsubishi Heav Industries for orandum of u ng vy the establishment of a joint ventu for their next reactor design. ure Niger (m mines) The open pit ur e ranium mine at Arlit, Nig e ger. ARREVA owns t mines in Arlit, Nige where it two n er, empploys 1,600 people; Niger is the wor rld's fifth lar rgest [19] urannium produc cer. Niger uranium accounts fo rien m or 30% of French consumption and 32% o Niger's % of ports, but less than 5% of Niger's GD [20] The exp f DP. incr rease in the c of urani cost ium on world markets in n [20] 200 (more tha 46%) w enable N 06 an will Niger to triple its e [20] revenues sourced fro AREVA. On 25 Ju 2007, the CEO of AR om uly e REVA-Niger Dominiqu r, ue Pin, was expelled fro Niger (although he w in Paris a the time) o charges o supporting the om was at on of g [20] Tuareg R Rebellion. According t Le Canar enchaîné, this move fr to rd rom Seyni OOumarou's governm was mot ment tivated by ne egotiations c concerning th uranium t he trade agreem ment, which w was [20] finally re enewed on 1 August 200 07. Furthe ermore, Laou Kader Mahamadou, w had uel who resigned from his fun nctions as se ecretary gene of the N eral Nigerien gove ernment to ta a consul ake lting job with AREVA-Ni iger, was ask by the N ked Nigerien DGS to remain in Niger in SE n nstead of flyi to ing France fo an integra or ation worksh until a "c hop clarification of the situation" could b obtained. 21] be [2

The population of Niger was exposed to a serious famine in 2005. AREVA donated 130,000 euros in June 2005 to the food crisis coordination group of Niger, and 120,000 euros in July in the form of two planes loaded with food and organized by Bernard Kouchner's Réussir NGO. According to Le Canard Enchaîné, this aid amounted to 0.05% of AREVA's annual profits of 428 million euros.[22] Canada, McArthur River mine AREVA Resources Canada Inc., based in Saskatoon, Saskatchewan, also has a 30% share in the McArthur River uranium mine, which contributes about 20% of total global uranium mining production. The rest of the mine is owned by Cameco Corporation (also based in Saskatoon). South Korea Further information: Nuclear power in South Korea In 2007, AREVA signed a ten year deal with the South Korean public company KHNP to enrich uranium in its forthcoming Georges Besse II enrichment plant. The deal is worth over 1 billion euros.[23] United States Further information: Nuclear power in the United States In the USA, AREVA is present in 40 locations across 20 states and employs 5,000 people. AREVA supplies network products to two-thirds of all US utilities. Moreover, AREVA was ranked the No 1 US supplier in nuclear energy products and services, in Energy Management Systems and in Energy Market Systems. AREVA NC Inc.'s headquarters are located in Bethesda, MD, while AREVA NP Inc.'s North American Headquarters are located in Lynchburg, VA. In February 2002, the U.S. Secretary of Energy Spencer Abraham announced the Nuclear Power 2010 Program, which included plans for two EPRs. On 15 September 2005 AREVA and Constellation Energy of Baltimore announced a new joint venture called UniStar Nuclear that will market the commercial EPR in the US. In line with Areva's "strategic business plan of expanding the US commercial nuclear infrastructure", in 2007 Areva announced plans to construct a centrifuge enrichment plant in the United States.[24] The proposed 3 million separative work unit (SWU) enrichment plant could begin operation in 2013 and reach full capacity by 2017.[24] Areva has confirmed the potential site for this plant will be 30 kilometres west of Idaho Falls, near the US Department of Energy's (DoE's) Idaho National Laboratory.[25] The project is likely to cost in the region of $2 billion and will provide uranium enrichment services to US nuclear plant operators using advanced proven

centrifuge technology developed by URENCO and the Enrichment Technology Company Ltd (ETC), an Areva/URENCO joint venture.[25] China In China AREVA won an 8 billion euro ($11.9 billion) agreement to build nuclear reactors, a record for the French company. The long-expected announcement came at the start of formal talks in Beijing between French President Nicolas Sarkozy and his Chinese counterpart, Hu Jintao.[26] ``France wants to build a complete partnership for the future with China, Sarkozy said today in Beijing during a joint briefing with Chinese President Hu Jintao. ``China's spectacular development is a chance for the world.[27] French, American and Russian suppliers have been vying for contracts in China, which plans to build as many as 32 nuclear plants by 2020 to meet surging power demands while cutting emissions and reducing reliance on imported oil. U.S. and French politicians have been lobbying Beijing hard on behalf of their companies. "When you look at China's energy problems, nuclear energy is not the whole answer, but it is part of the answer," AREVA CEO Anne Lauvergeon told a news conference. The deal allows AREVA to "consolidate its presence in one of the most dynamic markets in the world with enormous potential," Lauvergeon said. State-run AREVA said the contract with state-run China Guangdong Nuclear Power Corp. was a record for the French company. The third-generation pressurized water reactors, designed by AREVA's Framatome subsidiary, would boost CGNPC's output by 3,400 megawatts, AREVA said earlier. The contract also calls on AREVA to provide uranium to fuel the reactors through 2026. The reactors are to be built by 2013-2014 in the city of Taishan in Guangdong province, an export manufacturing powerhouse with heavy demand for power and high levels of industrial pollution.[26] Poland AREVA T&D owns following entities in Poland: Protection relays & automation systems factory in Świebodzice. Distribution transformers factory in Mikolow. Systems unit in Katowice, preparing, managing and building substation as a "turn key" projects. Sales organization located in Katowice. Areva T&D employs 380 people in Poland.

Other activit ties This sectio does not cite any ref on sources. Ple ferences or s ease help imp prove this ar rticle by adding citations to reliable sourrces. Unsour rced materia may be ch al hallenged andd removed. (July 2008) AREVA is also invol lved in milit tary technolo designin for examp the nucle reactor fo ogy, ng ple ear for the Frenc Barracuda class subm ch a marine. One of AAREVA's sub bsidiaries, E Euriware (fou unded in 199 specializes in compu engineer 91) uter ring, and empl loys 2,100 persons on 14 different si 4 ites. AREVA also owns 11% of STM A Microelectro onics, 26,25% o Eramet, an 8,45% of Safran. In M 2005 it sold all of it stakes in A of nd f May ts Assystem, as s well as F in Octob 2005 (sol to the priv equity fi Bain Ca FCI ber ld vate irm apital). CERCA, a subsidiary of AREVA is also inv , y A, volved in TR RIGA Interna ational, estab blished in 19 996 with the U firm Gen US neral Atomic cs. AREVA is also a cor rporate mem mber of the B Bruegel think tank. k 2007 fine In Januar 2007 ARE ry EVA was fin €53 mill ned lion by the EEuropean Commission fo rigging EU or U electricity markets th y hrough a cart involving 11 compan tel g nies, includin ABB, Als ng stom, Fuji, Hitachi JJapan, AE Po ower System Mitsubish Electric C ms, hi Corp, Schneid Siemens, Toshiba a der, and [28] VA Tech ELIN. According to the Commission, "betw h A ween 1988 an 2004, the companies nd rigged bi for procu ids urement conttracts, fixed prices, alloc cated project to each oth shared ts her, [2 28] markets a exchang commerc and ged cially import and con tant nfidential inf formation." Siemens w was given a f of €396 million, mor than half o the total, for its allege leadership role in the fine re of ed p cartel. Areva is not accused of any carte involveme other than through th acquisition of an Alsto d el ent n he n om unit in Ja anuary 2004. "This subsi . idiary was ac cquired by th Areva gro towards the end of t he oup the infringemment, in Januuary 2004. T parent en The ntities of the Areva group share a joi liability w p int with [29] that subsidiary for th period afte its acquisi he er ition." "A few month before the cartel ended A hs d Alstom s sold the unit involved to Areva, whic knew noth ch hing of the c cartel. It [Areeva] and Als stom [30] have join liability fo 53.6 millio which th must dec how to s nt or on, hey cide split." EU Comp petition Com mmissioner N Neelie Kroes declared th "The com s hat mmission has put an end to a s cartel wh has chea public u hich ated anies and consumers for more than 1 years".[31] utility compa r 16 ]

Advertisements AREVA has gained some fame after airing 3,000 cel-shaded animation television ad spots created by French design group H5, who also created the similar music video for Röyksopp's "Remind Me". The ads explained how the generation and distribution of nuclear power works. The ads featured the song "Funkytown" by Lipps Inc.. In the French economic paper "challenges" Anne Lauvergeon, chairman, declared the 10th July 2008: "Uranium is a main part of our success. '(...)'. So in China, we sold two nuclear parts, plus 35% of our uranium production. This is our integrated business model."[32] Eagle Rock Enrichment Facility AREVA Inc., based in Bethesda, Maryland, announced on 2008-05-06 that it will seek all necessary approval to build a uranium enrichment facility in Bonneville County, Idaho, about twenty miles west of Idaho Falls and near the Idaho National Laboratory.[33] On 2008-08-04, the AREVA group announced its proposed gas centrifuge enrichment facility will be named the Eagle Rock Enrichment Facility (EREF).[34] Entering India On 18 December, 2008 Areva signed an agreement with the Nuclear Power Corporation of India Limited (NPCIL) for the supply of 300 tonnes of uranium to India for power generation, thus becoming the first-ever foreign supplier of Uranium to the country after the NSG waiver.[35] On 4 February 2009, Areva signed a MOU to supply two to six nuclear reactors to the Nuclear Power Corporation of India Limited. The deal is thought to be worth around 12.3 billion dollars (600 billion rupees), an all-time record for the company surpassing the 8-billion Euro (11.1 billion dollars) deal signed with China a few years earlier.[36] They are also likely to supply fuel for the project which is intended for the western Indian state of Maharashtra

Areva Paris

by Abhishek Devra

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