AREVA
Business & Strategy overview




                    June 2009
Disclaimer
     Forward-looking statements

             This document contains forward-looking statements and information...
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

    2008 Sales by business                            Geographic sales

        ...
AREVA is the only fully integrated player
                                                on the Nuclear value chain
    A...
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
                     St...
Strong technologies
                              Front End                        Plants

         Ultracentrifugation   ...
AREVA is hiring the men and women it needs
                                          to sustain growth
     AREVA workforc...
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

         In millions of euros                                      2007           2008      ∆ 08/07
...
Continuing to grow while maintaining
                                      the group’s financial soundness
     Pursue the...
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
                      Strengt...
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
29   > Overview – June 2009
Olkiluoto 3 – January 2009




                                              © AREVA

30
30   > Overview – June 2009
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 nucle...
Bridging the Gap: Supply Chain Certainty
                                                     An integrated manufacturing ...
Our renewable energies offers


           Wind power                  Bioenergies                  Hydrogen power

      ...
Back-End division -
                                                                 An unchallenged leadership
          ...
Recycling delivers major benefits

     Natural resources savings
           Used fuel contains 96% of reusable materials
...
Increased recognition that recycling is a key
                  component of a sustainable nuclear renaissance

          ...
International recognition for AREVA’s leadership
                                                                 2008 hig...
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...
First quarter 2009 revenue climbs 8.5% to €3.0 Bn
            Sales by division
            In millions of euros          ...
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 strat...
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%
        ...
Appendix 1
Nuclear: a critical part of the solution
Worldwide demand for electricity
                                                               to double by 2030
     Wor...
AREVA’s 2030 scenario: construction or life
                   extension of more than 500 GWe of nuclear power

          ...
New construction should affect all regions
                                                     of the world
             ...
Nuclear power: a critical part of the solution
                                     for power generation

              Nu...
Nuclear power cost competitiveness
                                             Full Cost of Generation Including CO2 Cost...
Nuclear power cost of generation:
                        limited dependency on fuel price evolution

                    ...
Nuclear power: a critical part of the solution
                                                      in the UK

     “The ...
Appendix 2
Situation regarding nuclear in the various regions
The nuclear market place : 436 nuclear reactors
             in 2009 and more to come from the East
       126            ...
Installed capacity in main countries

                                 Gross capacity           Gross generation          ...
Appendix 3
Front End business details
New mines will be necessary to meet
                                                         Uranium demand

             ...
Conventional fissile resources represent
                     more than 200 years of 2009 world demand
                   ...
Improved security of supply with Uranium
     Developed countries and China depend largely on oil & gas
     supplied from...
Mining: solid fundamentals in a more
                                                         volatile environment
       ...
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
AREVA, Business & Strategy overview june 2009
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AREVA, Business & Strategy overview june 2009

  1. 1. AREVA Business & Strategy overview June 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, 2009 (which may be read online on AREVA’s website, www.areva.com). AREVA makes no commitment to update the forward- looking statements and information, except as required by applicable laws and regulations. 3 > Overview – June 2009
  3. 3. Agenda 1. Introduction 2. AREVA in a world in crisis 3. Performances and objectives by division 4. Financials 5. Appendixes 4 > Overview – June 2009
  4. 4. AREVA provides solutions for CO2 free electricity generation, transmission and distribution €13,160M sales Nuclear (2008) 75,400 people 100 countries Transmission & Distribution 5 > Overview – June 2009
  5. 5. AREVA is Nr 1 in Nuclear and Nr 3 in T&D 2008 Sales by business Geographic sales No. 1 worldwide in Nuclear Africa & Middle 2008 market size: East Europe c.€35Bn (excl. France) €8.1Bn Americas 9% 61,5% Market share: 25-30% # 1 in Europe and the US 29% # 1 in Plants / Fuel 15% # 1 in the Back End No. 3 worldwide in T&D 19% 28% €5.1Bn 2008 market size: Asia-Pacific €56Bn France 38,5% Market share increase : +50% since 2004 6 > Overview – June 2009
  6. 6. AREVA is the only fully integrated player on the Nuclear value chain AREVA: t hi nG rke a €8Bn Nuclear O VA CO ac 3 rs ib C EC /B I Ma P Hit MH he EN ME sh E Sales in 2008 AE US A AR Ot 08 / UR CA To ND GE 20 Mining / Natural 62,000 t 15-20% 5-10% 20-25% 20-25% 25-30% Uranium Conversion/ Front End 57,800 t 20-25% 5-10% 25-30% 25-30% 20-25% Chemistry 50 Enrichment 20-25% 25-30% 20-25% 20-25% 5-10% MSWUs 1 Natural Uranium na 7,000 t 30-35% 20-25% 10-15% 15-20% 10-15% fuel (UO2) na Reactors & Services €15Bn 20-25% 15-20% 5-10% 10-15% 35-40% Treatment na Back End 70-75% 10-15% 10-15% JNFL Recycling 33,170 t2 Recycling na 25-30% 60-65% (4) 1-5% JNFL 2,470 t2 1 Separative Work Units Recent strategic moves 2 Cumulated, worldwide – AREVA Estimate 3 AtomEnergoProm (Russia) Potential strategic moves 4 MOX Fuel activities * Figures unidentified or not disclosed 7 > Overview – June 2009
  7. 7. AREVA T&D: a leading player worldwide AREVA T&D Leadership T&D Market position Products T&D Global Market 2008: €56Bn Disconnectors AREVA High Voltage Direct Other Players* Current** (HVDC) 11% Energy Management Siemens Systems (EMS) 17% Gas-Insulated Substation 48% (GIS) Special Products Suppliers 24% Aluminum (SPS) ABB Instrument Transformers Key markets AREVA T&D Nr 1 in India * All other players have a market share below 5% (Schneider, GE, XD Group…) ** Excluding China 8 > Overview – June 2009
  8. 8. AREVA’s strategy: to set the standard in CO2-free power generation and electricity transmission and distribution 1 Capitalize on our integrated business model to spearhead the nuclear revival Maintain the existing fleets’ safety and performance levels Build 1/3 of new nuclear generating capacities* Make the fuel cycle secure for our current and future customers 2 Ensure sustainable, profitable growth in T&D 3 Expand our renewable energies offering ...while remaining the leader in safety and security * of the accessible market 9 > Overview – June 2009
  9. 9. Agenda 1. Introduction 2. AREVA in a world in crisis 3. Performances and objectives by division 4. Financials 5. Appendixes 10 > Overview – June 2009
  10. 10. Strong growth Backlog (€Bn)* Revenue (€Bn)* X 2.5 48.2 +34% 13.2 39.8 11.9 10.9 10.1 9.8 25.6 19.6 20.6 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 * excluding FCI – Connectors division 11 > Overview – June 2009
  11. 11. Net income In millions of euros 743 649 589 451 451* 389 240 2001 2002 2003 2004 2005 2006 2007 2008 - 587 AREVA has paid its shareholders €2.324Bn since 2001 * Net income reported of €1.049Bn including €451M in earnings per share from continued operations (excluding sale of FCI – Connectors division) 12 > Overview – June 2009
  12. 12. AREVA: a solid, sustainable model Recurring nuclear revenue vs. New Builds (€M) 14,000 12,000 New construction 10,000 8,000 6,000 Recurring 4,000 business 80% of the Nuclear business 2,000 - 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: AREVA strategic plan No power plant will shut down due to the economic and financial crisis 80% of our nuclear business is recurring The integrated business model is winning market share The backlog gives very strong visibility Capex is secured by the sale of future production (e.g. 90% of GBII production has already been sold up to 2020) 13 > Overview – June 2009
  13. 13. The crisis has not slowed down New Nuclear 10 utilities have already chosen the EPRTM… NPCIL …and are making commitments for the entire fuel cycle Examples since the crisis began: CGNPC – China: supply of front end of the fuel cycle through 2026 NPCIL – India: wants to secure reactor supplies for the life of the reactors (60 years) EDF: multi-year contract in the front end and back end (beyond 2030) 14 > Overview – June 2009
  14. 14. The T&D business is reorganizing to withstand the crisis Stable world demand for T&D in 2009 compared with 2008 with marked differences between sectors Transmission Opportunities linked to investment recovery plans: China, United States, Europe Distribution Demand curbed in some geographical areas Industry Sharp drop in orders Smart grids are a major driver for energy conservation Smart grids and renewable energy integration Aging grids, especially in the United States Recurring services Possibly postponed investment automatically offset by higher maintenance expenses AREVA T&D: strategic assets to capture market opportunities Technology leadership, particularly in automation and very high voltage Less exposure to industry than our peer group Close to the utilities via our nuclear operations 15 > Overview – June 2009
  15. 15. Strong technologies Front End Plants Ultracentrifugation EPRTM AREVA has the most efficient the first Generation III+ reactor ultracentrifugation technology under construction (4 units) A range of reactors to meet customer needs PWR PWR BWR 1,600+ MWe 1,100+MWe 1,250+MWe Back End T&D Technologies recognized worldwide Instrument transformers Gas-insulated substation E-terravision Circuit breakers Smart grid 16 > Overview – June 2009
  16. 16. AREVA is hiring the men and women it needs to sustain growth AREVA workforce excluding FCI 75,400 65,600 57,900 58,800 61,100 34,600 36,100 35,800 2001 2002 2003 2004 2005 2006 2007 2008 Recruitment Integration Training More than 550 million euros in spending on operating income since 2006 17 > Overview – June 2009
  17. 17. AREVA has generated and raised the resources it needs for growth since its establishment Cumulative from 12/31/2001 to 12/31/2008 In billions of euros End 2008 Shareholders’ Operating cash flow equity before Capex(1) 7.3 +7 Capex(2) Net debt (5.5) 5.5 Dividends 3.4 (4) Net (2.4) acquisitions TAX (1.1) (0.9) Other(3) (0.2) Since 2001, AREVA generated €7Bn in operating cash flow and had capital expenditures of more than €5Bn while maintaining a strong financial position 1 Operating cash flow before Capex: operating cash flow excluding acquisitions of PP&E and intangible assets 2 Capex: acquisitions of PP&E and intangible assets 3 Other: various financial transactions, etc. 4 Excluding Siemens’ put option 18 > Overview – June 2009
  18. 18. AREVA has continued its partnership strategy in 2008 to secure future growth Strategic agreement Niger: Partnership in Kazakhstan Imouraren with Jordan Consolidation (Mining and fuel) operating permit in uranium in the fuel cycle Equity interest JV in fuel in enrichment - GBII Heavy component manufacturing site in the United States Strengthening Supply of large forgings of industrial capacities Creusot furnace JV in engineering capacity Development of the Kerena boiling water reactor Reactor Global partnership Choice of the EPRTM for the UK development Maintenance and services JV – Ultra high voltage in China JV in systems T&D (transformer factories) in India GE Renewable Development of the biomass market in the United States energies 19 19 > Overview – June 2009
  19. 19. Key figures for 2008 In millions of euros 2007 2008 ∆ 08/07 Backlog 39,834 48,246 +21.1% Revenue 11,923 13,160 +10.4% Op. income before OL3 provisions 1,043 1,166 +11.8% % of revenue 8.7% 8.9% +0.2 pts Operating income 751 417 -44.5% % of revenue 6.3% 3.2% -3.1 pts Consolidated net income 743 589 -20.7% Earnings per share €20.95 €16.62 -20.7% Operating cash flow* -1,985 -921 +€1.064Bn Net debt excluding Siemens put 1,954 3,450 +76.6% Net debt with Siemens put** 4,003 5,499 +37.4% * EBITDA +/- change in Operating WCR – Operating Capex, net of disposals ** Value of Siemens put in 2007 20 > Overview – June 2009
  20. 20. Continuing to grow while maintaining the group’s financial soundness Pursue the plan for capital expenditure needed to sustain AREVA’s strategic positions Finance the callable Siemens put option Maintain financial soundness and value creation Pursue the program of non-strategic asset disposals and minority share float in some operating companies (mining, GBII) Carry out the cost reduction program Preserve the group’s liquidity and optimize working capital requirement Preserve the Standard & Poor’s A1 short-term credit rating* * S&P placed AREVA on its CreditWatch on January 27, 2009 following Siemens’ announcement that it intended to withdraw from AREVA NP 21 > Overview – June 2009
  21. 21. Outlook 2009 Backlog and revenue growth Rising operating income Initiation of a 2.7 billion euro investment program supported by the French government Full effect of 600 million euro cost reduction program strengthened by simplification of the group’s organizational structure, linked to Siemens’ withdrawal from AREVA NP and the 300 million euro WCR optimization program Financing assured, among other things, by disposal of non- strategic assets and minority share float of certain assets 22 > Overview – June 2009
  22. 22. Agenda 1. Introduction 2. AREVA in a world in crisis 3. Performances and objectives by division 4. Financials 5. Appendixes 23 > Overview – June 2009
  23. 23. Front-End division - AREVA invests in Mines and Enrichment Strengths & issues Sales – 2008 split Nr 1 worldwide in the overall Front-End Mining Integrated player: ability to answer clients’ will to secure supplies and future 23% expansion of nuclear fleet Fuel* 37% Chemistry Strategic partnership with clients through (* 34% 8% in AREVA NP) commercial agreements and/or equity deals 32% Strong position in fuel assemblies Enrichment Challenge : impact of commodities & production costs increase Key financials Strategic priorities Double uranium production by 2012 and in millions of euros 2007 2008 Change increase resources Order book 21,085 26,897 +27.6% Production ramp up : Trekkopje, Katco, Sales revenues 3,140 3,363 +7.1% Imouraren, etc… Operating income 496 453 -8.7% Succeed in the construction of % Sales 15.8% 13.5% -2.3 pts enrichment facilities in France and in the US Op. FCF before tax (1,672) (609) +€1,063M Remain the worldwide reference in nuclear fuel and expand in Asia 24 > Overview – June 2009
  24. 24. AREVA develops a uniquely diversified portfolio to make the fuel cycle secured for its customers Canada Kazakhstan Development (Shea Creek, Mining & global fuel Kiggavik etc.) agreement signed Exploration since 1964 Katco production ramp-up / Cigar Lake production to start license for 4,000 tU obtained after 2012 (+2,600 tU) Exploration Mongolia Sainshand Exploration Morocco Niger Agreement signed with Somaïr & Cominak mines Office Chérifien des Imouraren mining license Phosphates obtained - Start up 2013-14 (+ 5,000 tU) Democratic Republic of Congo AREVA Resources Southern Africa Mining partnership Namibia - Trekkopje: mining permit obtained / 1st production expected in 2010 Australia +3,000 tU production expected Exploration Central African Republic -Bakouma: since 1969 government agreement obtained +2,000 tU production expected ~12,000 South Africa – Ryst Kuil Production ~ 6,300 Exploration (metric tons of U) 2008 2012 25 > Overview – June 2009
  25. 25. Making the fuel cycle secure for our customers Adapting our production facilities and customers partnerships Conversion GB2 - Construction site France: Comurhex II project • Capital investment of €610M launched in 2007 • New plants at the Tricastin and Malvési sites Enrichment France: GB II Investment of close to €3Bn Capacity of 7.5 million SWU Modularity enabling production to start in 2009 Project on schedule United States (Bonneville, Idaho): “Eagle Rock” Investment of $2.2B Capacity of 3.0 million SWU Eagle Rock, Idaho Production to start in 2014-2015 Strategic agreements and partnerships with utilities to secure their access to the fuel cycle Suez acquired a 5% equity interest in GBII enrichment facility Innovation Capacity Productivity 26 > Overview – June 2009
  26. 26. Reactors & Services division - Still mostly recurring, but new build is there Strengths & issues Sales – 2008 split ~100 GW installed capacity WW – 26% total Renewable Energies 80% sales are recurring and 20% concern projects CIS Nuclear measures (new reactors and plant modification) AREVA TA 5%5% 5% The first company to have Gen.III+ reactors under construction (Finland, France, and China) 12% Reactors* Fleet of reactors developed/under development to Equipment* 9% 39% address market needs : EPRTM (1,600 + MWe), ATMEA (1,100+ MWe), 26% KERENA (1,250 + MWe Boiling Water Reactor) (* 34% Ability to anticipate the nuclear renaissance in AREVA NP) Nuclear services* (industrial capacity and human resources) Key financials Strategic priorities Target 1/3 of global new build projects for in millions of euros 2007 2008 Change nuclear power plants Deliver on OL3, Flamanville and Taishan Order book 7,640 7,850 +2.7% Complete the design of the ATMEA PWR/ Sales revenues 2,717 3,037 +11.8% KERENA BWR reactor through JV with respectively MHI and E.ON Operating income* (179) (687) -€508M % Sales (6.6%) (22.6%) -16 pts Develop additional manufacturing capacities to build supply chain certainty Op. FCF before tax (528) (591) -€63M Develop Renewable Energies Business Unit Optimise costs structure * Including the €749M OL3 Provision 27 > Overview – June 2009
  27. 27. AREVA is present on the key battlefields Main nuclear programs announced worldwide France UK Sweden Finland TM Flamanville 3 (EPR ) Target* : 10 GWe by 2020 End of 30 years Olkiluoto 3 (EPRTM) under construction EPRTM selected by EDF and pre- atomic ban under construction Penly: 2nd EPRTM by 2017 selected by E.ON for their UK 1 new reactor to be Possible 3rd TM EPR projects built – Call for tender in progress Canada Target* : more than 8 GWe China from 2014 18 reactors under Call for tender construction o/w 2 EPRTM in progress Target* : 70 GWe by 2020 US 32 COL** applications India in progress 6 reactors under construction TM EPR selected Target* : 50 GWe by 2050 by 5 utilities (7 units) MoU with NPCIL for up to 6 EPRTM Italy Target* : 8 to 10 new South Africa large reactors by 2030 Target* : 20 GWe Jordan Emirates EDF-Enel JV to build by 2025 Target: 1 Plant by 2015 Preparation at least 4 EPRTM Call for tender on Call for tender in of the EPRTM project with hold progress (4 bidders) SUEZ and TOTAL Countries where EPRTM are under construction (*) : Nuclear generation capacity announced by countries Countries where nuclear programs are announced with opportunities for AREVA (**) : Construction and Operating License 28 > Overview – June 2009
  28. 28. Olkiluoto 3 – January 2009 © AREVA 29 29 > Overview – June 2009
  29. 29. Olkiluoto 3 – January 2009 © AREVA 30 30 > Overview – June 2009
  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 31 > Overview – June 2009
  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 32 > Overview – June 2009
  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 33 > Overview – June 2009
  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 34 > Overview – June 2009
  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 30 years of operations 2900m² Workshop: 39,000 sqm extension in 2006 Reactor Pressure Vessels, Steam Generators, Pressurizers, Safety Injection Accumulators Sfarsteel (Creusot Forge) Acquisition in 2006 Heavy forging and machining Workshops: 85,000 sqm (4 sites) Upgrade underway JSPM Plant Coolant pumps and control rod drive mechanisms for reactors upgrading Workshop: 13,000 sqm underway (€60 M) Newport News (USA) Start of operation: 2012 $363M Workshop: 300,000 ft² announced Reactor Vessels, Steam Generators, and 2008 Pressurizers Agreement with Japan Steel Works (Japan) JSW to supply AREVA until 2016 and beyond with large forged announced parts, essential for the manufacture of nuclear components 2008 Friendly acquisition by AREVA of 1.3% of JSW stock 35 > Overview – June 2009
  35. 35. Our renewable energies offers Wind power Bioenergies Hydrogen power Design & deliver biomass Develop Hydrogen Become a major player fired power plants world Technologies for market in offshore wind energy wide introduction AREVA Multibrid in Germany Rich and diversified Helion, France 5 MW off-shore specific experience: Brazil, Western Strong R&D capability design Europe and India (PEM technology) Selected for major wind JV Adage with Duke Energy Developing next generation parks covering nearly 270 in the US Storage solutions turbines One of the largest install base in the world: 2,900 MWe in 100 power plants 36 > Overview – June 2009
  36. 36. Back-End division - An unchallenged leadership Strengths & issues Sales – 2008 split Nr 1 worldwide in used nuclear fuel Engineering management and recycling Logistics 6% Cleanup 3% Highly recurrent sales due to long term Nuclear Site Value contracts 14% Development 40 years of experience in nuclear materials 14% (Decommissioning) transportation and casks design and manufacturing 63% Proven technology leadership with significant Recycling partnerships in Japan, the US and the UK Nuclear site decommissioning and recovery Key financials Strategic priorities in millions of euros 2007 2008 Change Increase industrial efficiency Order book 6,202 7,784 +25.5% of the recycling plants (La Hague / Melox) Sales revenues 1,738 1,692 -2.7% Promote recycling worldwide Operating income 203 261 +28.6% Promote competitive recycling % Sales 11.7% 15.4% +3.7 pts services Op. FCF before tax 172 422 +€250M Remain the worldwide reference in technology assistance partnership 37 > Overview – June 2009
  37. 37. Recycling delivers major benefits Natural resources savings Used fuel contains 96% of reusable materials Up to 25% natural uranium savings Improved ultimate waste management Volume of ultimate waste divided by 5 Waste toxicity divided by 10 Standard, durable, specifically designed waste forms and containers Reinforced economic interest of recycling Demonstrated competitiveness vs. once-through strategy Ability to control overall back-end costs based on proven 40-year industrial track record While ensuring Health, Safety and Environmental protection 38 > Overview – June 2009
  38. 38. Increased recognition that recycling is a key component of a sustainable nuclear renaissance 2004 2010 ? T/Year (1) T/Year (1) 4 000 4 000 US 3 500 3 500 3 000 3 000 UK & Netherlands UK & Netherlands 2 500 2 500 China & Russia China & Russia Others Others UK US UK 2 000 2 000 Eastern Eastern Europe Europe Japan 1 500 Japan 1 500 US Asia Asia 1 000 1 000 Spain France Spain France Switzerland Switzerland Belgium Belgium 500 500 Germany Sweden & Finland Germany Sweden & Finland 0 0 Direct Wait-and-See Recycling Direct Wait-and-See Recycling disposal Solutions disposal Solutions (1) Tons of used fuel unloaded per year, including Light Water Reactors and «Advanced Gas Reactors » 39 > Overview – June 2009
  39. 39. International recognition for AREVA’s leadership 2008 highlights USA 5 contracts awarded by the DOE Savannah River: construction of a MOX plant Japan Savannah River : treatment of radioactive liquid MOX fuel contract with Kansai waste at the DOE through 2020 Hanford Tanks: participation in site cleanup and dismantling Global Nuclear Energy Partnership: feasibility studies on the closed cycle Yucca Mountain: Management of the future disposal site United Kingdom Sellafield site: AREVA & partners selected by NDA China Management and operation of the Drigg site as part of the UK Nuclear Waste Management CNNC – China: progress consortium (low-level radioactive waste) on feasibility studies for an 800 MT recycling plant 40 > Overview – June 2009
  40. 40. T&D division - Long term outlooks still positive Strengths & issues Sales – 2008 split A full fledged player: products & solutions for high & medium voltage technologies Systems A global footprint with presence in 160 countries 31% Strong position in the electrical utilities segment 53% Number 1 in HVDC (excl. China) Products 10% Number 1 in India Automation 6% Continued R&D effort Services Cyclicality exposure, especially with industry customers Key financials Strategic priorities in millions of euros 2007 2008 Change Grow faster than the market Order book 4,906 5,715 +16.5% Capture opportunities generated by the crisis Sales revenues 4,327 5,065 +17.0% Adapt industrial footprint to the Operating income 397 560 +41.1% market % Sales 9.2% 11.1% +1.9 pts Invest continuously in R&D Op. FCF before tax 233 -20 -€253M 41 > Overview – June 2009
  41. 41. T&D: buoyant current operations New orders in millions of euros 5,821 6,065 Quatar 500** 488 401 4,353 432 433 2 678 3,709 2 498 124 3,317 176 2,251 2 205 320 2 104 192 95 80 1 949 1 713 1 596 Current operations*: 1 535 +16.2% from 2007 to 2008 1 495 H1 04 H2 04 H1 05 H2 05 H1 06 H2 06 H1 07 H2 07 H1 08 H2 08 2004 2005 2006 2007 2008 * Order less than €35M Current operations (contract < €35M) Large contracts (> €35M) ** exchange rate as of 12/31/2007 42 > Overview – June 2009
  42. 42. T&D: consolidation of operating margin* 11.1% 11.1% 9.9% 8.7% 307 253 230 5.9% 175 4.2% 119 72 H1 06 H2 06 H1 07 H2 07 H1 08 H2 08 2006 2007 2008 * In contribution to group 43 > Overview – June 2009
  43. 43. Agenda 1. Introduction 2. AREVA in a world in crisis 3. Performances and objectives by division 4. Financials 5. Appendixes 44 > Overview – June 2009
  44. 44. First quarter 2009 revenue climbs 8.5% to €3.0 Bn Sales by division In millions of euros Q1 2009 Q1 2008 ∆ 09/08 ∆ 09/08 LFL* Front-End 674 679 -0.7% -6.3% Reactors & Services 727 665 +9.2% +2.6% Back-End 416 403 +3.3% +2.0% Nuclear Activities 1,815 1,747 +4.0% -1.1% % of total revenue 60.5% 63.1% Transmission & Distribution 1,186 1,022 +16.1% +12.4% % of total revenue 39.5% 36.9% Total 3,003 2,769 +8.5% +3.9% France 971 912 +6.5% - International 2,032 1,857 +9.4% - Strong performance of the Reactors & Services and of the Transmission & Distribution divisions Orders steady, particularly in the Front End, with several significant contracts with US and Asian utilities, and in Transmission & Distribution, with orders up sharply in Asia (+82%) and South America (+57%) As of March 31, 2009, backlog of €49.5 Bn, for 28.3% growth year-on-year, including 31.3% growth in Nuclear and 10.2% in Transmission & Distribution * LFL: at constant exchange rates and consolidation scope 45 > Overview – June 2009
  45. 45. Strong commercial performance in 2008 Key contracts awarded More than €10Bn Multi-year in contracts contracts (Front End, R&S*, Long-term contract in the Front End Back End) in the Front End First uranium sale to India Multi-year contracts in the Front End NPCIL (300 MTU) Manage & Operate Interconnection the Sellafield site in Uruguay 10 transformer rectifier units Supply of in Bahrain two high voltage substations to Dubai Design and installation of a HV offshore wind substation in the United Kingdom IFA 2000 Franco-British grid interconnection * R&S: Reactors and Services 46 > Overview – June 2009
  46. 46. 2008 key data by division Sales by division Operating income by division €13,160M €417M 5,065 Transmission & Distribution Front-End 3,363 3,037 26% 1,692 39% 453 560 261 -687* 23% 13% Front R&S Back T&D Reactors & - end - end Back-End Services Sales Operating income * Including the €749M OL3 Provision 47 > Overview – June 2009
  47. 47. AREVA heavily invests for securing the future of its customers Technology R&D spending, in millions of euros 813** 1,051 669* 582 % of 5.7% 6.2% 6.8% 8.0% Sales 2005 2006 2007 2008 Mining and conversion Generation III recycling plant New generations of fuel T&D: ultra high voltage, new products Additional reactor types Fuel cells and improved wind technologies * excluding the acquisition of the ultra-centrifugation technology ** excluding R&D projects acquired through UraMin 48 > Overview – June 2009
  48. 48. Significant investment program required to sustain AREVA’s strategic positions Investments 2006-2008 2009 Budgeted Investments €2,7 Bn 5%5% Others 15% Secure T&D profitable 15% growth €1,756 M 15% 15% Sell our reactors €1,325 M €1,334 M* Adapt our enrichment 18% 18% industrial capacities to the evolution of the market Secure access to 25% 25% uranium resources 22% Security & Maintenance 22% of existing assets 2006 2007 2008 2009 Key investments in 2009 include Maintenance capex for existing industrial assets (La Hague, Melox, GBI…) Access to uranium resources through a consistent portfolio of mines (Canada, Africa, Kazakhstan) Development of enrichment facilities with centrifuge technology (GB II in France and Eagle Rock in the USA) EPRTM licensing in the US and the UK Manufacturing capacity extension (for both nuclear and T&D activities) * Excluding acquisitions 49 > Overview – June 2009
  49. 49. Operating cash flow In millions of euros 2007 2008 1,181 1,335 +1 (197) (432) (451) UraMin acquisition (1,454) (921) (2,889) (1,985) EBITDA Disposal WCR Net. OCF EBITDA Disposal WCR Net. OCF gain/loss change Capex gain/loss change Capex Drop in EBITDA Practically stable WCR Decrease in amount for acquisitions compared with 2007 (UraMin acquisition) Net increase in operating Capex excluding UraMin acquisition (€1,454M in 2008 vs. €1,295M in 2007) 50 > Overview – June 2009
  50. 50. Net debt Siemens’ decision to exercise its put option on shares held in AREVA NP results in the payability of the value of Siemens’ put option no later than 2012 In millions of euros 12/31/2007 12/31/2008 Excluding Siemens (1,954) put option Excluding (921) (3,450) Siemens Siemens put option (2,049) put option (115) (325) OCF (135) (4,003) End-of-life-cycle cash flow Dividends Other (2,049) Siemens items put option (5,499) 51 > Overview – June 2009
  51. 51. Capital Structure CDC 4% CEA + FRENCH STATE + ERAP EDF 87% 2% Total 1% Investment Certificate Holders (free float) 4% Employees 2% 52 > Overview – June 2009
  52. 52. Appendix 1 Nuclear: a critical part of the solution
  53. 53. Worldwide demand for electricity to double by 2030 Worldwide electric power generation (in TWh) X2 30 000 15 000 2005 2010 2015 2020 2025 2030 2008 – Worldwide distribution of Capex in the Power sector electric power mix expected to reach $13.8 trillion2007 Nuclear $6.8 trillion in T&D 16% $6.8 trillion in generating capacity Coal 39% Hydro 19% Covering both Generation and T&D markets, Gas Oil AREVA has 2 reasons to benefit from 15% 10% electricity sector investments Sources: World Energy Association (March 2009), IEA-World Energy Outlook (2008) 55 > Overview – June 2009
  54. 54. AREVA’s 2030 scenario: construction or life extension of more than 500 GWe of nuclear power AREVA nuclear projection is in line with international institutions forecasts Scenario International institutions 824: WEO1- 2008- 450 ppm Policy Scenario 748: IAEA - 2008 – High Estimate 731: WNA2 - 2007- High Estimate New build 684: WEO- 2008- 550 ppm Policy Scenario Life extensions 344 635 AREVA’s target Theoretical end of life 529: WNA - 2007 - Reference 498: DOE3 EIA4 - 2008 Reference Case 473: IAEA - 2008 – Low Estimate 372 267 186 433: WEO - 2008 – Reference Scenario 2006 2030 GWe net installed 56 > Overview – June 2009
  55. 55. New construction should affect all regions of the world New installed nuclear generating capacity after 2006 by geographic area (2007 - 2030) GWe Net 400 400 350 350 300 300 250 250 200 200 150 150 100 100 50 50 0 0 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 Europe 27 + CIS N. & S. America Asia Africa WORLD Source: AREVA’s estimates 57 > Overview – June 2009
  56. 56. Nuclear power: a critical part of the solution for power generation Nuclear power generation does not 1. release greenhouse gas: life cycle greenhouse gas emissions very low 2. Low price of generation almost immune to uranium price fluctuations Fossil resources are limited 3. and uranium conventional resources are 200 times 2008 demand 4. Energy security of supply uranium is present in stable countries 58 > Overview – June 2009
  57. 57. Nuclear power cost competitiveness Full Cost of Generation Including CO2 Costs* (Rebased on nuclear) CO2 Cost 126 109 100 Combined Gas Coal Nuclear Cost Comparison for Europe Average MWh cost CO2 emission cost (25€/t CO2 ) for new plants Nuclear € 50 - € 65 NS zzz Combined cycle gas € 65 - € 82 € 5 - € 10 Coal € 55 - € 75 € 15 Sources: Enel (July 2008), E.On (April 2008), UBS (January 2009) * Based on UBS Estimates for Europe (Global Nuclear Power - January 2009).Main technology-specific assumptions include: - an economic life of 50 years for nuclear power plants, 40 years for coal power plants, and 30 years for combined gas power plant, - size of 1,500 MW for nuclear power plant, 750 MW for coal plant and 425 MW for combined gas plant, and a CO2 price of €25/t 59 > Overview – June 2009
  58. 58. Nuclear power cost of generation: limited dependency on fuel price evolution Combined Cycle Gas Hard Coal Nuclear MWh cost split Turbine (CCGT) MWh cost split MWh cost split Fixed operating Fixed operating Fuel & Other Fixed operating costs costs variable costs costs Carbon Carbon Capital cost Capital 2% 6% cost 10% 12% 20% 15% 25% 33% 70% 70% Fuel & Fuel & 35% Capital Other Other cost variable variable costs costs Sources: Based on E.On estimates for Europe (January 2009) , with Carbon at 20 €/t 60 > Overview – June 2009
  59. 59. Nuclear power: a critical part of the solution in the UK “The Government’s conclusion is that nuclear power is: Low-carbon – helping to minimise damaging climate change Affordable – nuclear is currently one of the cheapest low-carbon electricity generation technologies, so could help us deliver our goals cost effectively Dependable – a proven technology with modern reactors capable of producing electricity reliably Safe – backed up by a highly effective regulatory framework Capable of increasing diversity and reducing our dependence on any one technology or country for our energy or fuel supplies.” UK Government White Paper (2007) 61 > Overview – June 2009
  60. 60. Appendix 2 Situation regarding nuclear in the various regions
  61. 61. The nuclear market place : 436 nuclear reactors in 2009 and more to come from the East 126 67 130 10 2 2 CIS & Eastern Europe North America Western Europe 109 28 Southern & Eastern Asia 2 0 4 Africa & Middle East 1 South America In service Under construction Source: WNA (January 2009) 63 > Overview – June 2009
  62. 62. Installed capacity in main countries Gross capacity Gross generation Gross capacity Gross generation (GWe) (TWh) (GWe) (TWh) 2008 2007 2008 2007 2008 2007 2008 2007 France* 65.9 65.9 438.6 439.1 Canada 15.4 15.0 94.0 94.0 Germany 21.5 21.4 148.7 140.5 United States 107 105.8 842.4 843.0 Russia 23.2 23.2 162.3 158.3 Mexico 1.4 1.4 9.8 10.4 United Kingdom** 12.5 11.9 39.4 58.6 Brazil 2.0 2.0 14.0 12.4 Ukraine 13.8 13.8 89.8 92.7 Argentina 1.0 1.0 7.4 7.2 Sweden 9.6 9.4 66.9 66.9 Spain 7.7 7.7 60.0 55.0 TOTAL 126.8 125.2 967.6 967.0 Belgium 6.1 6.1 45.8 48.2 Finland 2.8 3.0 23.0 23.4 Source: Nucleonics Week, March 2008, restated by AREVA. Other 17.7 17.4 135.4 125.9 Gross capacity Gross generation TOTAL 180.8 179.8 1,209.9 1,208.6 (GWe) (TWh) * Excluding Phoenix, considered a research reactor. 2008 2007 2008 2007 ** Data incomplete for Britain (only Jan-Sep 2008 total available for British Energy Portion) Source: Nucleonics Week, restated by AREVA Japan 49.6 49.9 251.7 278.7 China 9.0 9.1 42.6 62.9 India 4.1 4.1 15.5 17.8 South Korea 18.4 18.4 151.0 142.9 Taiwan 5.1 5.1 40.8 40.6 Pakistan 0.5 0.5 1.9 2.5 TOTAL 86.8 87.1 503.5 545.4 Source: Nucleonics Week, March 2008, restated by AREVA. 64 > Overview – June 2009
  63. 63. Appendix 3 Front End business details
  64. 64. New mines will be necessary to meet Uranium demand World Uranium Supply and Demand 100000 90000 80000 70000 60000 tU 50000 40000 30000 20000 10000 0 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 Production from existing mines Recycling (Mox, RepU, off-spec) Russian HEU (existing agreement) Inventory reduction/adjustment Demand to be covered by new projects Consumption (WNA Upper Scenario 07) source: WNA 2007 66 > Overview – June 2009
  65. 65. Conventional fissile resources represent more than 200 years of 2009 world demand CATEGORY of Uranium resources (million tons = Mt) Conventional Identified (deposits) Undiscovered Reasonably Speculative 1 Based on direct Cost of recovery Inferred Prognosticated geological Assured Resources $/kgU Resources Resources evidence Resources 1 2 3 2 Based on indirect geological < 40 1.77 1.20 evidence 1.95 3 Extrapolated 40 to 80 0.83 0.65 4.80 values 80 to 130 0.74 0.27 0.82 > 130 - - ? 2.97 Unconventional Subtotal 3.34 2.13 2.77 7.77 General total 5.47 10.54 15 to 25 General total of conventional resources: 16,009,100 t World demand in 2009*: less than 66,000 t Resources: > 200 times 2009 demand + With Gen IV Fast Breeder Reactor, resources are virtually unlimited *WNA estimate for 2009 Source: Nuclear Energy Agency "Uranium 2007: Resources, Production and Demand" 67 > Overview – June 2009
  66. 66. Improved security of supply with Uranium Developed countries and China depend largely on oil & gas supplied from unstable areas Russia 12% 8% North America 1% 22% Kazakhstan 20% 11% Uzbekistan 5% China 24% 24% Alegria Middle East 3% 3% 4% 2% 2% 5% Mexico 4% Niger 3%1% 7% Venezuela 3% 28% Indonesia Other 3% 1% 4% Namibia Australia 1% 10% 70% of oil reserves 28% and 40% of gas 20% reserves Key areas of production (in % of global production) Uranium (2008 Data) 38% Oil (2007 Data) Gas (2007 Data) Sources: AREVA, IEA 68 > Overview – June 2009
  67. 67. Mining: solid fundamentals in a more volatile environment Market trend AREVA performance Solid fundamentals: AREVA reserves and resources in 2008 Utilities want to secure supplies and future Replacement of mined reserves expansion of nuclear fleet AREVA reserves/resources constitute 10% Price drops in 2008 of the world’s identified resources Spot: average of $62/lb in 2008 vs. $99/lb 31% increase in exploration expenses, in 2007 to €56M Volatility due primarily to investment fund 4% increase in production, to 6,303 MTU sales Increase in production costs of around Long-term: average of $83/lb in 2008 15%, comparable to the average vs. $91/lb in 2007 for the industry Prices stable for the past 5 months at $70/lb Stable average AREVA sales prices LT & spot Ux prices, 2001- 2008 150 $23* $36* $36.90* Peak – July 07: Long-term Spot $138/lb LT $95/lb Spot 100 50 Current - Feb. 09 2006 2007 2008 Spot $47/lb LT $70/lb 0 * per lb U3O8 69 > Overview – June 2009

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