1. Financial analysis
Thomas LEFEBVRE, Yves-Marie SALAUN, Pablo LAIZ, Lonan
CAROLL, Mehdi VATRI, Bastien DANIEL
Group B

2. Index
 Company overview (I)
 Context for analysis (II)
 Financial structure (III)
 Trend analysis (IV)
 Comparative analysis (V)
 Financial cash flows (VI)
 Assessment of the risks (VII)
 Conclusion and recommendations (VIII)

3. Company overview
 World leading company in nuclear
energy
 Activities : mining-front end, reactors and
services, back end, renewable energies
 Competitors : Siemens AG, Rosatom and
Schneider Electric
 Consolidated sales revenue of 9,342
billion euros in 2012
Source : Areva

4. Context for analysis
 Over 50 % decline in share price
 Japan disaster in 2011 – Negative income
 3 opportunities of action plan “Active 2016” :
1. World energy demand doubled by 2050
2. Fossil fuels depletion
3. Eco-friendly energy provision

5. Context for analysis
 In 2012, early indicators of success, + 5,3 % in sales
revenues, operating income of 119 million
 Remain unattractive investment prospect
 Restructuring of investments

6. Financial structure
• Balance sheet
Non current assets
Current assets
22107
9148
Stockholder equity
Non current liabilities
Current liabilities
5556
14107
11593
Total assets 31255 Total liabilities + SE 31255

7. Financial structure
Current assets
- Current liabilities
9148
11593
= Cash injected in the production cycle (2245)
- Net treasury 1615
= Working capital (4060)
+ Non current assets 22107
= Capital employed 18047
Net debt
+ Shareholders equity
12492
5556
= Invested capital 18047
• Working capital

8. Trend analysis
RATIOS 2010 2011 2012
Acid test 84.28% 68.30% 27.16%
Leverage 0,7558 1,0219 1,0531
Current Ratio 0,850 0,789
# years needed to repay debts 5,7 6,5 5,44
Debt ratio 20,96% 19,5% 18,71%
Total debts 7240 6093 5850
Total assets 34538 31232 31255
• Liquidity, autonomy and solvency

9. Trend analysis
2010 2011 2012
Revenue 9104 8872 9342
Growth of revenue - -2,55% +5,30%
ROA 2,55% -8.01% -0.32%
Net income 883 -2503 -99
• Growth and efficiency

10. Trend analysis
• Profitability
2010 2011 2012
Gross margin 14,06% 9,17% 9,41%
EBITDA margin 13,93% 8,77% 11,50%
EBIT 188 -1866 119
Sales 9104 8872 9342
Gross profit 1280 852 879

11. Comparative analysis
• Net sales revenue

12. Comparative analysis
• Gross margin

13. Comparative analysis
• Return on capital employed (ROCE)

14. Comparative analysis
• Return on assets (ROA)

15. Financial cash flows
Operating cash flow (A)
- Investing cash flow (B)
713
(1139)
= Free cash flow (426)
Financing cash flow (C) (167)
Net cash flow (A+B+C) (593)

16. Assessment of the risks
Risk : extent and likelihood that what is estimated to
occur will not actually occur.
• Market risk
• Liquidity risk
• Default risk
• Operating risk
• Political risk

17. Conclusion and
recommendations
Conclusion
• Highly
financed by
debt
• Substantial
exposure to
risk
• Promising
future figures
for 2013
Source : Areva

18. Conclusion and
recommendations
Recommendations
• Think about the financial model
• Reducing the cost of production
• Focus on nuclear businesses
• Find a way to generate more cash

19. Thank you for your attention