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AREVA
Business & Strategy overview




                     April 2009
Disclaimer
     Forward-looking statements

              This document contains forward-looking statements and informatio...
Agenda


    1. Introduction

    2. AREVA in a world in crisis

    3. Performances and objectives by division

    4. Fi...
AREVA provides solutions for CO2 free electricity
          generation, transmission and distribution
                    ...
AREVA is Nr 1 in Nuclear and Nr 3 in T&D

                                                       Geographic sales
    2008...
AREVA is the only fully integrated player
                                               on the Nuclear value chain
    AR...
AREVA T&D: a leading player worldwide

                                                                                   ...
AREVA’s strategy: to set the standard
                in CO2-free power generation and electricity
                       ...
Agenda


     1. Introduction

     2. AREVA in a world in crisis

     3. Performances and objectives by division

     4...
Strong growth

                      Backlog (€Bn)*                                 Revenue (€Bn)*

                      ...
Net income

     In millions of euros

                                                                                   ...
AREVA: a solid, sustainable model
                                   Recurring nuclear revenue vs. New Builds (€M)

      ...
The crisis has not slowed down New Nuclear

     10 utilities have already chosen the EPRTM…



                          ...
The T&D business is reorganizing to withstand
                                          the crisis
                      S...
Strong technologies
                                                                Plants
                               ...
AREVA is hiring the men and women its needs
                                        to sustain growth
     AREVA workforce...
AREVA has generated and raised the resources
                 it needs for growth since its establishment
     Cumulative ...
AREVA has continued its partnership strategy in
                      2008 to secure future growth
                       ...
Key figures for 2008

                                                                                            ∆ 08/07
...
Continuing to grow while maintaining
                                       the group’s financial soundness
     Pursue th...
Outlook

     2009
     Backlog and revenue growth

     Rising operating income

     Initiation of a 2.7 billion euro in...
Agenda


     1. Introduction

     2. AREVA in a world in crisis

     3. Performances and objectives by division

     4...
Front-End division -
                                   AREVA invests in Mines and Enrichment
                      Streng...
AREVA develops a uniquely diversified portfolio
     to make the fuel cycle secured for its customers
       Canada       ...
Making the fuel cycle secure for our customers
     Adapting our production facilities and customers partnerships


      ...
Reactors & Services division -
                         Still mostly recurring, but new build is there
                   ...
AREVA is present on the key battlefields
                                     Main nuclear programs announced worldwide
  ...
Olkiluoto 3 – January 2009




                                                     © AREVA

29   > Overview – April 2009
...
Olkiluoto 3 – January 2009




                                               © AREVA

30   > Overview – April 2009
30
OL3: advance
                                 over the competition confirmed
     A project in full swing…
     Percentage...
OL3: contractual aspects

     …Customer’s inertia continues to penalize us
      TVO has not satisfactorily implemented t...
OL3: financial aspects

     AREVA is posting an additional provision for the 2nd half of 2008,
     bringing the total pr...
Flamanville 3
                                      and Taishan Nuclear islands 1&2
     Flamanville 3: supply of the nucl...
Bridging the Gap: Supply Chain Certainty
                                                     An integrated manufacturing ...
Our renewable energies offers


                                       Bioenergies
           Wind power                  ...
Back-End division -
                                                                  An unchallenged leadership
         ...
Back End market combines recycling, final
                       disposal and “wait-and-see” solutions

     Difference in...
More nuclear countries now consider
                                                            recycling as an option

  ...
International recognition for AREVA’s leadership
                                                                  2008 hi...
T&D division -
                                                         Long term outlooks still positive
                ...
T&D: buoyant current operations

     New orders in millions of euros
                                                    ...
T&D: consolidation of operating margin*



                                                                          11.1%...
Agenda


     1. Introduction

     2. AREVA in a world in crisis

     3. Performances and objectives by division

     4...
Strong commercial performance in 2008
                                                                           Key contr...
2008 key data by division



                  Sales by division                          Operating income by division
   ...
AREVA heavily invests for securing
                                                     the future of its customers
      ...
Significant investment program required to sustain
                                                           AREVA’s stra...
Operating cash flow
     In millions of euros
                                        2007                                ...
Net debt
             Siemens’ decision to exercise its put option on shares held in AREVA NP
             results in the ...
Capital Structure


                                            CDC
                                             4%
      ...
AREVA, business & strategy overview - April 2009
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AREVA, business & strategy overview - April 2009

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AREVA, business & strategy overview - April 2009

AREVA, business & strategy overview - April 2009

  1. 1. AREVA Business & Strategy overview April 2009
  2. 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, 2008 (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. > Overview – April 2009 3
  3. 3. Agenda 1. Introduction 2. AREVA in a world in crisis 3. Performances and objectives by division 4. Financials 5. Appendixes > Overview – April 2009 4
  4. 4. AREVA provides solutions for CO2 free electricity generation, transmission and distribution €13,160M sales (2008) Nuclear 75,400 people 100 countries Transmission & Distribution > Overview – April 2009 5
  5. 5. AREVA is Nr 1 in Nuclear and Nr 3 in T&D Geographic sales 2008 Sales by business No. 1 worldwide in Nuclear Africa & Middle 2008 market size: Europe East c.€35Bn (excl. France) €8.1Bn 9% Americas Market share: 25-30% 61,5% 29% # 1 in Europe and the US 15% # 1 in Plants / Fuel # 1 in the Back End 19% No. 3 worldwide in T&D 28% Asia-Pacific €5.1Bn 2008 market size: France €56Bn 38,5% Market share increase : +50% since 2004 > Overview – April 2009 6
  6. 6. AREVA is the only fully integrated player on the Nuclear value chain AREVA: €8Bn Nuclear t hi rke nG a O VA CO ac 3 rs ib C EC /B I Ma P Sales in 2008 Hit MH he EN ME sh E AE US A AR Ot 08 / UR CA To ND GE 20 Mining / Natural 20-25% 60,400 t 15-20% 5-10% 20-25% 25-30% Uranium Conversion/ Front End 25-30% 57,800 t 20-25% 5-10% 25-30% 20-25% Chemistry 47 Enrichment 20-25% 20-25% 20-25% 25-30% 5-10% MSWUs 1 * Natural Uranium 30-35% 10-15% 15-20% 10-15% 6,800t 20-25% fuel (UO2) * 10-15% 35-40% €15Bn Reactors & Services 20-25% 15-20% 5-10% 33,220 t2 * Back End 10-15% Treatment 70-75% 10-15% JNFL * 25-30% Recycling 2,470 t2 1-5% (Belgonuclear) 65-70% (MOX fuel) JNFL 1 Separative Work Units 2 Cumulated, worldwide – AREVA Estimate Recent strategic moves 3 AtomEnergoProm (Russia) * Figures unidentified or not disclosed > Overview – April 2009 7
  7. 7. AREVA T&D: a leading player worldwide AREVA T&D Leadership T&D Market position Products T&D Global Market 2008: €56Bn Disconnectors High Voltage Direct AREVA Current** (HVDC) Other Players* 11% Energy Management Siemens Systems (EMS) Gas-Insulated Substation 17% 48% (GIS) Special Products Suppliers Aluminum (SPS) 24% Instrument Transformers ABB Key markets AREVA T&D Nr 1 in India * All other players have a market share below 5% (Schneider, GE, XD Group…) ** Excluding China > Overview – April 2009 8
  8. 8. AREVA’s strategy: to set the standard in CO2-free power generation and electricity transmission and distribution Capitalize on our integrated business model to spearhead 1 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 Ensure sustainable, profitable growth in T&D 2 Expand our renewable energies offering 3 ...while remaining the leader in safety and security * of the accessible market > Overview – April 2009 9
  9. 9. Agenda 1. Introduction 2. AREVA in a world in crisis 3. Performances and objectives by division 4. Financials 5. Appendixes > Overview – April 2009 10
  10. 10. Strong growth Backlog (€Bn)* Revenue (€Bn)* 13.2 X 2.5 +34% 48.2 11.9 39.8 10.9 10.1 9.8 25.6 20.6 19.6 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 * excluding FCI – Connectors division > Overview – April 2009 11
  11. 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) > Overview – April 2009 12
  12. 12. AREVA: a solid, sustainable model Recurring nuclear revenue vs. New Builds (€M) 14,000 New 12,000 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) > Overview – April 2009 13
  13. 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) > Overview – April 2009 14
  14. 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 Opportunities linked to investment recovery plans: Transmission 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 Possibly postponed investment automatically offset by higher services 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 > Overview – April 2009 15
  15. 15. Strong technologies Plants Front End EPRTM Ultracentrifugation the first Generation III+ reactor AREVA has the most efficient under construction (4 units) ultracentrifugation technology A range of reactors to meet customer needs BWR PWR PWR 1,250+MWe 1,600+ MWe 1,100+MWe T&D Back End Technologies recognized worldwide Instrument transformers Gas-insulated substation E-terravision Circuit Smart grid breakers > Overview – April 2009 16
  16. 16. AREVA is hiring the men and women its needs to sustain growth AREVA workforce excluding FCI 75,400 65,600 61,100 58,800 57,900 36,100 35,800 34,600 2001 2008 2002 2003 2004 2005 2006 2007 Recruitment Integration Training More than 550 million euros in spending on operating income since 2006 > Overview – April 2009 17
  17. 17. AREVA has generated and raised the resources it needs for growth since its establishment Cumulative from 12/31/2001 to 12/31/2008 End 2008 In billions of euros Shareholders’ equity Operating cash flow 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) Other(3) (0.9) (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 > Overview – April 2009 18
  18. 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 Global Reactor Choice of the EPRTM for the UK partnership development Maintenance and services JV in systems JV – Ultra high voltage in China T&D in India (transformer factories) GE Renewable Development of the biomass market in the United States energies 19 > Overview – April 2009 19
  19. 19. Key figures for 2008 ∆ 08/07 2007 2008 In millions of euros 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 > Overview – April 2009 20
  20. 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 > Overview – April 2009 21
  21. 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 > Overview – April 2009 22
  22. 22. Agenda 1. Introduction 2. AREVA in a world in crisis 3. Performances and objectives by division 4. Financials 5. Appendixes > Overview – April 2009 23
  23. 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, Imouraren, etc… Sales revenues 3,140 3,363 +7.1% Succeed in the construction of Operating income 496 453 -8.7% enrichment facilities in France and in % Sales 15.8% 13.5% -2.3 pts the US Op. FCF before tax (1,672) (609) +€1,063M Remain the worldwide reference in nuclear fuel and expand in Asia > Overview – April 2009 24
  24. 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 / license for 4,000 tU obtained Cigar Lake production to start after 2012 (+2,600 tU) Exploration Mongolia Sainshand Exploration Niger Morocco Somaïr & Cominak mines Agreement signed with 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 Australia expected in 2010 Exploration +3,000 tU production expected since 1969 Central African Republic -Bakouma: government agreement obtained ~12,000 +2,000 tU production expected ~ 6,300 South Africa – Ryst Kuil Production Exploration (metric tons of U) 2008 2012 > Overview – April 2009 25
  25. 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 > Overview – April 2009 26
  26. 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 CIS Nuclear measures 80% sales are recurring and 20% concern projects (new reactors and plant modification) AREVA TA 5%5% 5% The first company to have Gen.III+ reactors under 12% construction (Finland, France, and China) 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% in AREVA NP) Ability to anticipate the nuclear renaissance Nuclear services* (industrial capacity and human resources) Strategic priorities Key financials Target 1/3 of global new build projects for nuclear power plants in millions of euros 2007 2008 Change 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 Develop additional manufacturing capacities % Sales (6.6%) (22.6%) -16 pts 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 > Overview – April 2009 27
  27. 27. AREVA is present on the key battlefields Main nuclear programs announced worldwide France UK Sweden Finland TM Olkiluoto 3 (EPRTM) Flamanville 3 (EPR ) Target* : 10 GWe by 2020 End of 30 years under construction atomic ban under construction EPRTM selected by EDF and pre- Penly: 2nd EPRTM by 2017 selected by E.ON for their UK 1 new reactor to be projects built – Call for tender TM 3rd Possible EPR in progress Canada Target* : more China than 8 GWe from 2014 18 reactors under construction o/w 2 EPRTM Call for tender in progress Target* : 40 GWe by 2020 US India 32 COL** applications 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 South Africa Target* : 8 to 10 new Jordan large reactors by 2030 Emirates Target* : 20 GWe EDF-Enel JV to build Target: 1 Plant by 2015 by 2025 Preparation at least 4 EPRTM of the EPRTM project with Call for tender in Call for tender on SUEZ and TOTAL progress (4 bidders) hold 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 > Overview – April 2009 28
  28. 28. Olkiluoto 3 – January 2009 © AREVA 29 > Overview – April 2009 29
  29. 29. Olkiluoto 3 – January 2009 © AREVA 30 > Overview – April 2009 30
  30. 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 > Overview – April 2009 31
  31. 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 > Overview – April 2009 32
  32. 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 > Overview – April 2009 33
  33. 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 > Overview – April 2009 34
  34. 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 2900m² 30 years of operations extension Workshop: 39,000 sqm in 2006 Reactor Pressure Vessels, Steam Generators, Pressurizers, Safety Injection Accumulators Acquisition Sfarsteel (Creusot Forge) in 2006 Heavy forging and machining Upgrade Workshops: 85,000 sqm (4 sites) underway JSPM Plant upgrading Coolant pumps and control rod drive mechanisms for reactors underway Workshop: 13,000 sqm (€60 M) Newport News (USA) $363M Start of operation: 2012 announced Workshop: 300,000 ft² 2008 Reactor Vessels, Steam Generators, and Pressurizers Agreement with Japan Steel Works (Japan) announced JSW to supply AREVA until 2016 and beyond with large forged parts, essential for the manufacture of nuclear components 2008 Friendly acquisition by AREVA of 1.3% of JSW stock > Overview – April 2009 35
  35. 35. Our renewable energies offers Bioenergies Wind power 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 experience: Brazil, Western 5 MW off-shore specific Strong R&D capability Europe and India design (PEM technology) JV Adage with Duke Energy Selected for major wind Developing next generation in the US parks covering nearly 270 Storage solutions turbines One of the largest install base in the world: 2,900 MWe in 100 power plants > Overview – April 2009 36
  36. 36. Back-End division - An unchallenged leadership Strengths & issues Sales – 2008 split Cleanup Nr 1 worldwide in both closed and open Engineering 3% 6% cycles nuclear wastes recycling Highly recurrent sales due to long term Logistics contracts 14% Main investments completed Technology transfer through long term 78% partnership: e.g Japan (Rokkasho Mura) Recycling Export of AREVA knowledge on promising markets in 2008 (UK and USA) Key financials Strategic priorities Optimize industrial efficiency in millions of euros 2007 2008 Change of the two main plants (La Hague and Melox) Order book 6,202 7,784 +25.5% Market closed-cycle technologies in the new US (GNEP) and China back- Sales revenues 1,738 1,692 -2.7% end policies Operating income 203 261 +28.6% Capitalize on AREVA trade mark to win % Sales 11.7% 15.4% +3.7 pts management contracts Op. FCF before tax 172 422 +€250M > Overview – April 2009 37
  37. 37. Back End market combines recycling, final disposal and “wait-and-see” solutions Difference in costs between closed and open cycles is impactless on the kWh cost Back-end management costs represent less than 6% of the overall nuclear kWh cost When choosing the closed cycle: 96% of the materials can be recycled Wastes volumes are divided by a factor 4 to 5 Radio-toxicity of long term wastes is reduced by a factor 10 High public acceptance Safety solution with 40 years of proven industrial track record > Overview – April 2009 38
  38. 38. More nuclear countries now consider recycling as an option 2004 2010 ? T/Year (1) T/Year (1) UK – Netherlands 2 500 4 000 Russia China US 3 500 UK Others 2 000 3 000 Eastern UK – Netherlands 2 500 Europe Russia Japan 1 500 China US Others UK 2 000 Eastern Asia countries 1 500 Japan 1 000 Spain Asia Switzerland 1 000 Spain France Belgium 500 Switzerland France Belgium 500 Sweden Germany Sweden Germany Finland 0 Finland 0 Direct Interim Recycling Direct Interim Recycling storage storage storage storage (1) Tons of used fuel unloaded per year, including Light Water Reactors and «Advanced Gas Reactors » > Overview – April 2009 39
  39. 39. International recognition for AREVA’s leadership 2008 highlights USA 5 contracts awarded by the DOE Japan Savannah River: construction of a MOX plant Savannah River : treatment and disposal of Hot testing at Rokkasho Mura radioactive liquid wastes at the DOE (sister plant of La Hague) Hanford Tanks: participation in site cleanup MOX fuel contract with Kansai and dismantling through 2020 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 Cumbria site CNNC – China: progress as part of the UK Nuclear Waste Management on feasibility studies for consortium (low-level radioactive waste) an 800 MT recycling plant > Overview – April 2009 40
  40. 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 Grow faster than the market in millions of euros 2007 2008 Change Capture opportunities generated by Order book 4,906 5,715 +16.5% the crisis Sales revenues 4,327 5,065 +17.0% Adapt industrial footprint to the Operating income 397 560 market +41.1% % Sales 9.2% 11.1% +1.9 pts Invest continuously in R&D Op. FCF before tax 233 -20 -€253M > Overview – April 2009 41
  41. 41. T&D: buoyant current operations New orders in millions of euros 6,065 5,821 Quatar 488 500** 401 4,353 2 678 433 432 3,709 2 498 124 2,251 3,317 176 2 205 320 2 104 80 192 95 1 949 1 713 1 596 Current operations*: +16.2% from 2007 to 2008 1 535 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 > Overview – April 2009 42
  42. 42. T&D: consolidation of operating margin* 11.1% 11.1% 9.9% 307 8.7% 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 > Overview – April 2009 43
  43. 43. Agenda 1. Introduction 2. AREVA in a world in crisis 3. Performances and objectives by division 4. Financials 5. Appendixes > Overview – April 2009 44
  44. 44. Strong commercial performance in 2008 Key contracts awarded More than €10Bn Multi-year in contracts contracts (Front End, R&S*, in the Front End Long-term contract Back End) in the Front End First uranium sale to India (300 MTU) NPCIL Multi-year contracts in the Front End Savannah River Co-management Interconnection MOX plant of 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 IFA 2000 Franco-British grid interconnection in the United Kingdom * R&S: Reactors and Services > Overview – April 2009 45
  45. 45. 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% 560 453 261 -687* 23% 13% Front R&S Back T&D Reactors & - end - end Back-End Services Sales Operating income * Including the €749M OL3 Provision > Overview – April 2009 46
  46. 46. AREVA heavily invests for securing the future of its customers Technology R&D spending, in millions of euros 1,051 813** 669* 582 % of 5.7% 6.2% 6.8% 8.0% Sales 2005 2006 2007 2008 Mining and conversion Generation III treatment and 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 > Overview – April 2009 47
  47. 47. Significant investment program required to sustain AREVA’s strategic positions 2009 Budgeted Investments Investments 2006-2008 €2,7 Bn Others 5%5% Secure T&D profitable 15% 15% growth €1,756 M 15% 15% Sell our reactors Adapt our enrichment €1,334 M* €1,325 M 18% 18% industrial capacities to the evolution of the market Secure access to 25% 25% uranium resources Security & Maintenance 22% 22% of existing assets 2009 2006 2007 2008 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 > Overview – April 2009 48
  48. 48. 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) Net. Net. EBITDA Disposal WCR OCF EBITDA Disposal WCR 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) > Overview – April 2009 49
  49. 49. 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 put option Siemens (2,049) put (115) option (325) (135) OCF End-of-life-cycle (4,003) cash flow Dividends (2,049) Siemens Other put items option (5,499) > Overview – April 2009 50
  50. 50. Capital Structure CDC 4% CEA + FRENCH EDF STATE + ERAP 2% 87% Total 1% Investment Certificate Holders (free float) 4% Employees 2% > Overview – April 2009 51

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