AREVA
Business & Strategy overview
April, 2010
Notice
► 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 my 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 March 29,
2010 (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.
Contents
► Introduction to AREVA
► 2005-2009 Group Performance
► AREVA Development Plan 2010-2012
► Performances and objectives by division
► AREVA latest financial results
► Appendices
AREVA Overview – April 2010 p.4
AREVA is a global leader in solutions for CO 2 -free power generation
CHEMISTRY
ENRICHMENT
FUEL FABRICATION
SERVICES
REACTORS
MINING
USED FUEL RECYCLING
TRANSMISSION & DISTRIBUTIONNUCLEAR AND RENEWABLE ENERGIES
OTHER SOURCES OF ELECTRIC POWER Disposal of T&D
Closing expected in 2010 TRANSMISSION &
DISTRIBUTION
RENEWABLE ENERGIES
47,800 people 1
€8,529 M Sales
(2009)1
€584 M EBITDA
(2009)1
1. Excluding T&D
The world energy sector is facing 3 major challenges
Multiply by 1.5 by 2030
Declining fossil resources
Energy demand Oil & Gas availability GHG emissions
Cut by half by 2050
2005 2010 2020 2030 1960 1980 2000 2020 2040 1990 2010 2030 2050
Energy demand (in Gtoe) Oil and Gas production (Gboe/year) GtCO2eq/yrv
40 80
0 35
0 12
0
AREVA captures growth through its low carbon strategy aligned with world energy challenges
3,1 2,4
4,0 4,3
2,4 3,0
1,5
3,4
2,5
0 3 6 9 12 15 18
Coal Oil
Natural gas Energy efficiency Nuclear
Renewables
2030 17,0
1,4
2006 11,7
0,7
Billions of metric tons of oil equivalent / year
Global energy mix Global energy mix
+3.3%/y
Source: World Energy Outlook 2008 stabilization 450 ppm” scenario, AREVA
Fossil resources
x 1.5
Energy demand
CO
2emissions / 2
Our mission:
Enabling everyone to have
access to even cleaner, safer
and more economical energy
373
1World Energy Outlook 2World Nuclear Association 3US Department of Energy 4Energy Information Administration
678: WEO1- 2008-Low estimate, 450 GW 731: WNA2- 2007- High estimate 748: IAEA - 2008 – High estimate
529: WNA - 2007 – Reference scenario
473: IAEA - 2008 – Low estimate 433: WEO - 2008 – Reference scenario 498: DOE3EIA4- 2008 Reference scenario 533: WEO-2008-Basic scenario, 550 GW
Forecasts issued by international organizations
Installed nuclear capacity expected to nearly double by 2030
AREVA’s development forecasts for installed nuclear capacity (in GW)
AREVA – average forecast
659
358
373 262
190
New builds Extension of
plant life spans Plant
shutdowns Installed capacity
2008
Installed capacity
2030
From 2008 to 2030
Strong growth is expected on most renewable energy segments
Source : WEO 2008, ETP, EIA (2008)
7%
9%
11%
13%
3%
XX% world electricity generation capacity
Annual new capacity market (in USD
07billion)
115 130 190
Capacity installed for renewable energies (GW)
250 1.000
500
0
2030 2025
2020 2015
2006 750
PV solar Biomass Wind onshore Thermal solar
Wind offshore Geothermal Tide and Wave
Increasing share of “new”
renewables (except hydro) from 3% to 13% of total electricity mix
A market of ~160 Bn$/year of new capacity
Strong growth expected in
Off-shore wind (~10% p.a.),
Biomass (~6% p.a.)
AREVA is the only fully integrated player on the nuclear power value chain…
Mining / Natural uranium
Conversion / chemistry
Enrichment
Natural uranium fuel
Reactors and Services
Treatment
Recycling
Front-EndBack-End
Source: AREVA estimates
Recent strategic move / development
Presence Potential move
Energy Vector and Storage Bio-energy
… And plans to become a leading reference in the field of renewable energy
Concentrated Solar Thermal Offshore Wind
Focus on 4 segments Already #1 in Bio-energy
Off-shore wind turbine of the highest power rating (5MW) currently in operation
© AREVA Multibrid © AREVA © Ausra © Helion
Contents
► Introduction to AREVA
► 2005-2009 Group Performance
► AREVA Development Plan 2010-2012
► Performances and objectives by division
► AREVA latest financial results
► Appendices
Implementing the strategy announced at the beginning of 2005
► Strengthen our worldwide leadership in the nuclear power cycle
► Strengthen our presence in the three big markets of Europe, North America and Asia
► Raise Transmission and Distribution’s financial
performance to the level of the best and reposition
it in growth areas
Sustained Growth
Group excl. T&D T&D
Strong visibility and predictability of the business
20.6
25.6
39.8
48.2
49.4
3.0
17.6
22.1
34.9
42.5 3.5
4.9
5.7 6.1
43.3
2005 2006 2007 2008 2009
X2.4
5.5 5.1
4.3 3.2 3.7
2008 13.2
8.1
2007 11.9
7.6
2006 10.9
7.2
2005 10.1
6.9
14.0
8.5
2009 +39%
Revenue Revenue
(€ bn)
Order book Order book
(€ bn)
Operational Performance Strong Installed Base Business
* Including T&D
Operational performance (€M)*
A profitable base which has allowed us to absorb the growth effort required launch major nuclear projects
OL3 Provisions Operating Income
551
407
751
417 501
604
292
550
56
749
2005 2006 2007 2008 2009
1,043 1,166
607
1,011 1,051
Investment in human capital and R&D to strengthen AREVA’s leadership
► Sustained R&D effort to the level of 6.8% of revenue on average
► More than 50,000 people recruited in 5 years, incl. almost 18,000 in France
► An organization now ready to meet the needs of the market expected by 2012
% of 7.2%
revenue 5.7% 6.2% 6.8%
113 169
168
146
197
905 816 645
500 469
2005 2006 2007 2008 2009
8%
582
669
813
1,051 1,013
2005 2006 2007 2008 2009
5,900
8,600
11,500
15,000
12,700
28,800 24,900
3,300 2,600
4,800 3,800
5,900 5,600
7,500 7,500
7,300 5,400 Group excl. T&D
T&D
Recruitment
Recruitment R&D Effort R&D Effort
(€M)
(# of employees)
AREVA, the world's number one producer of uranium in 2009
1. Consolidated share of production
Production in tonnes of U 1
8,000 7,937 7,500
Kazatomprom AREVA Rio Tinto
Cameco
3,000 3,600 4,200 4,800 5,400 6,000 6,600 7,200 7,800 8,400
2006 2007 2008 2009
8,626
2005-2009 Increased coverage of customer needs thanks to integrated offers
NPCIL
2005 2009 2005 2009 2005 2009 2005 2009
2005 2009
2005 2009 2005 2009 2005 2009
URANIUM
FUEL
INSTALLED BASE SERVICES
BACK END NEW BUILDS
CONVERSION ENRICHMENT
RENEWABLE ENERGY SOURCES
Business in 2005 Businesss, JV & contracts in 2009 Negotiations in progress in 2009
Selected integrated offers - 2005-2009
2000 2005 2009 532
Asia-Pacific
902
X2
X1.4 1,263
Sustained development in the three big markets of Europe, North America & Asia
Nuclear revenue by region (€M)
2000 2005 2009
3,266
France
3,101
-23%
+5%
4,266
2000 2005 2009
1,379
366
1,694
+23%
The Americas
X5
2000 2005 2009
768
2,168
Europe
(excl. France)1,818 +19%
X3
Developing and increasing the value of our assets
Transmission
& Distribution
X 4
€3bn
► 2004
► Enterprise value:
~ €1bn
► 2009
► Enterprise value:
€4bn
Value creation Acquisitions Disposals
► 29.9% in 2006-2007
► Acquisition value:
< €30M
REpower (wind)
► 2008
► Selling price:
~€400M
X 10
>€350M
Contents
► Introduction to AREVA
► 2005-2009 Group Performance
► AREVA Development Plan 2010-2012
► Performances and objectives by division
► AREVA latest financial results
► Appendices
Confirmed* Strategic Directions for 2012
* Disclosed at the 2007 Annual Results Presentation (26 February 2008)
** In the accessible market
*** Transaction to close in 2010
► Build 1/3 of the new nuclear generating capacity**
► Secure the fuel cycle for our current and future customers
► Expand our renewable energies offering
► Ensure strong profitable growth in the T&D Division
Disposal at 4 times the acquisition price value***
...while continuously improving our performance
in terms of safety and security
2012 Objectives disclosed at the 2007*
annual results presentation
Confirmed Financial Objectives for 2012
► Group Revenue
> to €20bn
► Double-digit operating margin
► Generating a significantly positive free operating cash flow
2012 Objectives confirmed in 2010
► Excl. T&D
Revenue of €12bn
* 2007 Annual Results Presentation - 26 February 2008
► Confirmed
► Confirmed
Objectives 2012 10-12,000
2009 8,626
~6,000
Historical average
Production in tonnes of U**
Production in tonnes of U**
Mining, Chemistry & Enrichment
Securing the fuel cycle for our customers
* Will be producing after 2012
** Consolidated share of production figures: 100%, except for Midwest & Cigar Lake contribution which represents AREVA’s share in mines’
production
Cigar Lake*
Imouraren*
Bakouma*
Katco
Somaïr
Trekkopje
► Prioritising organic growth
► Ramping-up production sites
Mining: confirmed potential to reach 12,000 tonne by 2012 Mining: confirmed potential to reach 12,000 tonne by 2012
► More than 30% of the modernisation and renewal programme for industrial facilities (Comurhex II and GB II) completed in 2009 and over 80% should be completed by 2012
Conversion-Enrichment: ramp up of new facilities
2012 Objectives
► Established safety authority
► Nuclear utilities looking for a more or less integrated offer (reactor + fuel cycle)
► 95% of these utilities are already customers of AREVA
AREVA has direct access to customers
NPCIL
Examples
► Countries new comers to civil nuclear energy
► Major role of State-to-State cooperation
► Search for a leading utility investor/
operator to assist with the development of nuclear energy
AREVA has access through the leading utility Examples
United Arab Emirates Egypt
Jordan
Vietnam
Thailand
Segmentation of the accessible nuclear new build market
<20%
Expected new nuclear capacities – Accessible Market* (To be commissioned 2016-2030)
AREVA is targeting 1/3 of the accessible market*
230 GWe net*
* Excluding Russia, CIS (Ukraine, Armenia), Japan, South Korea, North Korea, Pakistan and Iran
> 80%
2012 Objectives
Numerous projects and integrated offers in progress
Extracts
► UK: discussions underway to developp EPRs
► India: Memorandum of Understanding signed to build 2 to 6 EPRs, including supply of lifetime fuel cycle services for them
NPCIL
► Italy: 4 EPRs announced
► US: negotiation for 1 EPR (DOE Energy Park- Ohio)
► France/Export: discussions underway to develop ATMEA
► Business dealings in progress with China, Czech Republic, Netherlands, South Africa, Switzerland …
Other utilities / countries
► US: 4 COLA (Construction and Operating Licence Application) for EPRs submitted to the NRC
► France: negotiation for the second EPR (Penly)
► UK: commercial negotiations well underway for 4 EPRs
2012 Objectives
0 2 000 4 000 6 000 8 000 10 000 12 000 14 000
2004 2005 2006 2007 2008 2009 2010 2011 2012
New build
Installed based business
AREVA can rely on a resilient business model…
► 80% of the nuclear business is recurrent
► Capex supported by the sale of the new facilities’
future production
example: 90% of GB II production through 2020 is already in backlog
Installed base business model ensuring strong cash-flow generation
Source: AREVA strategic plan
Installed base revenue vs. new builds (millions of €)
80% of the nuclear business
2012 Objectives
… and a 50-year history of successful nuclear project execution
AREVA was created in 2001 by the merger of companies with a long nuclear history
AREVA was created in 2001 by the merger of companies with a long nuclear history
Westinghouse
1958: Framatome created to operate a Westinghouse reactor license; the technology will gradually be improved and become fully owned by Framatome
Sept. 2001
1. Including 7 shutdown and 4 under construction Jan 2001
AREVA is building reactors since the 1960’s AREVA is building reactors since the 1960’s
Reactors built by AREVA (and forming companies) by commissioning date
21 57
12
102
5 0 20 40 60 80 100 120
Total On-
going 4
00’s 3
90’s 80’s
70’s 60’s
6 reactors
per year
2012 Objectives
Developments in the back end of the cycle
► An agreement has been signed with EDF
Visibility in this area of activity up until 2040
From 2010, the annual amount re-processed in The Hague will increase from 850 to 1,050 tonnes and the amount of MOX produced in Melox will increase from 100 to 120 tonnes
► New MOX fuel fabrication contracts for Japanese customers
► United States: construction of a MOX plant in Savannah River
1
stnew build, authorised by the NRC, under construction in the US Construction 40% complete, on schedule and within budget
Expected construction completion in 2016
► China: plans to construct a treatment and recycling plant
Joint declaration by the Governments of China and France in December 2009 In-depth discussions between AREVA and CNNC
2012 Objectives
Becoming a leading player in the renewable energy industry
Offshore Wind Farm
Bio-Energy
Concentrated Solar Thermal
Energy Vector and Storage
© AREVA Multibrid
© Ausra
© Helion
© AREVA
► Supplying and installing 80 turbines with a 400 MW output
► Increasing production capacity from 100 to 200 turbines per annum
► Global strategy involving partnerships and fleets of high capacity biomass power plants
► 500 MW of projects to be supplied between now and 2012
► Marketing decentralised systems
for storing and generating power with or without renewable energy sources
► CO
2–free production of hydrogen for industrial applications
► Acquisition of Ausra (February 2010)
► Proposing solar thermal power plants incorporating Ausra technology and AREVA's EPC expertise
► 100 MW of projects to be supplied between now and 2012
Backlog target for 2012
> €5bn
2012 Objectives
Confirmed investment program over the 2010-2012 to strengthen AREVA’s leadership
► Key strategic objectives
Securing access to uranium
Upgrading, renewing and increasing production of key facilities
(conversion with CX II; Enrichment with GB II, Eagle Rock ; Equipments facilities)
Completing development and licensing of reactors
► Development of existing assets (like Multibrid and Ausra)
► “Opportunistic” approach for external growth on selected markets
0,5
1,1 1,0
1,3
1,8
0 1 2 3
2005 2006 2007 2008 2009 2010 -
2012 AREVA annual CAPEX
*(€Bn)
* Acquisition of property, plants and equipment and intangible assets, Excluding T&D Investment optimization program bringing the
budget down to €6.5Bn vs. €7/8Bn initially planned (at constant program)
>2,2
Renewable Energies Renewable Energies Nuclear Energy
Nuclear Energy
Objectives for 2010-2012 (excl. T&D)
Savings of close to €700M achieved in 2009 (incl. T&D)
Purchasing performance greater than 5%
per annum
In particular, programme to optimize investments by 7% per annum to bring the budget down to €6.5bn vs. €7/8bn initially planned over the period 2010-2012, at
constant programme
*Of which €100M excl. T&D **Of which €400M excl T&D ***Including purchase of investments
92,5
€130M
*of savings vs. initial 2009 budget for General and sales and marketing expenses Base 100 – budget 2009
100
92.5
Initial budget for 2009 General and sales and marketing
expenses
Actual 2009 General and sales and marketing
expenses
Projected volume of purchases 2009
€570M
**from Purchasing performance***
Actual volume of purchases 2009
100
92.2
2009 2012 Objective
To reduce support function costs by €270M vs. actual 2009
Support function costs - base 100 in 2009
100
80
Focus on CAP 2012
Stepping up the cost reduction programme
AREVA secures resources to finance its development
► For strategic & industrial partners
► Up to 15%
► Selling price: €4 billion
► Capital gains: €1.1 billion
1► Sale of financial securities
► €1 billion of proceeds
► Shares to remain in the public sector
► Enrichment & Mining projects
► €500 million of proceeds in 2009
Capital increase Sale of Transmission and Distribution (T&D) division
Sale of Total & GDF Suez stakes
Disposal of ERAMET and STMicroelectronics
Sale of Minority stakes in operating companies
Signed
Completed
On-going On-going
Considered
► CAP 2012 Program
► 2009 Savings : €690 million
2Operating Cash Flow Generation
Improvement On-going
Notes
1. Closing expected in 2010
2. Of which c.€130M of savings and €570M from Purchasing performance
Contents
► Introduction to AREVA
► 2005-2009 Group Performance
► AREVA Development Plan 2010-2012
► Performances and objectives by division
► AREVA latest financial results
► Appendices
BG Reactors
& Services
BG Renewable
Energies
BG Back-End
•Recycling of the used fuel and provider of clean-up and dismantling services
•Design and construction of nuclear reactors
•Maintenance and modernization of the nuclear power plants
•Uranium mines exploration and operation activities
•Conversion and enrichment of the uranium and design of the fuel for the nuclear reactors
•Development of wind energy, bio- energy, solar power and hydrogen power solutions
AREVA will report under Business Groups * in 2010
* AREVA’s Transmission and Distribution activities (“T&D”) remain an additional Business Group of AREVA until closing of the divestment transaction
Before 2010
Divisions
Front-End Division Reactors & Services Division Back-End Division
Strating in 2010
Business Groups
Mining Front-End
BG Mining/ Front-End
BG Reactors
& Services
BG Renewable
Energies
BG Back-End
•Recycling of the used fuel and provider of clean-up and dismantling services
•Design and construction of nuclear reactors
•Maintenance and modernization of the nuclear power plants
•Uranium mines exploration and operation activities
•Conversion and enrichment of the uranium and design of the fuel for the nuclear reactors
•Development of wind energy, bio- energy, solar power and hydrogen power solutions
Front-End Division Reactors & Services Division Back-End Division
Mining Front-End
Front-End Division
2009 Sales: €3,471 M
14,800 employees
AREVA: a leading player worldwide
in the overall Front-End
Sales – 2009 split Sales – 2009 split
AREVA invests to maintain its leadership in Mines and Enrichment
+ 45,4 % 659
453 OPERATING INCOME
+5,5 pts 19,0 %
13.5%
% Sales
+ 294 M€
(315) (609)
OP. FCF BEFORE TAX
+ 3,2 % 3 471
3 363 SALES REVENUES
+ 3,0 % 27 715
26 897 ORDER BOOK
Change 2009
2008 In millions of euros
Key financials Key financials
Mining 25%
Chemistry 7%
Enrichment 34%
Fuel 34%
►
Mining: explores, extracts and processes uranium ore, from which nuclear fuel is made. The BU then reclaims mining sites once production is finished
►
Chemistry: converts natural uranium (U3O8) into uranium hexafluoride (UF6) required for enrichment
►
Enrichment: Increasing the proportion of U235 found in natural uranium from 0.7% to 3%-5% in order to manufacture fuel for nuclear reactors
►
Fuel: designs, manufactures and sells nuclear fuel assemblies for pressurized water reactors (PWR), boiling water reactors (BWR) and research reactors
A leading player in the overall Front-End
A leading player in the overall Front-End
AREVA has a uniquely diversified mining portfolio
Canada
►Development (Shea Creek, Kiggavik etc.)
►Exploration since 1964
►Cigar Lake production to start in 2013 (+2,600 tU)
Morocco
►Agreement signed with Office Chérifien des Phosphates
AREVA Resources Southern Africa
►Namibia - Trekkopje: mining permit obtained / desalination plant tests / 1stproduction expected in 2010
►+3,000 tU production expected
►Central African Republic -Bakouma: government agreement obtained
►+2,000 tU production expected
►South Africa – Ryst Kuil
►Exploration
Kazakhstan
►Mining & global fuel agreement signed
►Katco production ramp-up / license for 4,000 tU obtained
- Largest number one ISL production in the world > at 3,000 t U
Mongolia
►Sainshand
►Exploration
Somaïr & Cominak mines Somaïr: starting heap leaching Imouraren mining license obtained - Start up 2013-14 (+ 5,000 tU) - first stone laid and 1st earthwork
Niger
Democratic Republic of Congo
►Mining partnership
Australia
►Exploration since 1969
Production (metric tons of U)
~ 8,600
10,000 12,000
2009 2012
AREVA is leading the way in enrichment capacity renewal
► First rotation of first centrifuge cascade in December 2009
► €3 Bn project: one of the biggest industrial investments of the past decade in France
► Essential investment for global balance of the enrichment market with modular capacity to meet market requirements
At least 7.5 MSWU (by 2016)
► Best existing available technology (ETC – TC12)
► Installation start-up by 2014
► A capacity of 3.2 MSWU (by 2018) approved by NRC and on-going discussion about production extension up to about 6 million SWUs
► Proven ETC centrifuge technology, already licensed by the NRC
Georges Besse II
Georges Besse II Eagle Rock Enrichment Facility Eagle Rock Enrichment Facility
Georges Besse II:
90% of capacity already sold until 2020
Eagle Rock Enrichment Facility:
50% of capacity already sold beyond
2020
131 reactors worldwide are fuelled by AREVA
Source: IAEA, WNA as of October 2007
*Partial MOX reload
**Local Fuel makers using AREVA NP Technology
USA (19P/69, 9B/35)
BRAZIL (1P/2) **
SOUTH AFRICA (2P/2)
TAIWAN (0P/2, 4B/4)
JAPAN (1P/24, 0B/30)
CHINA (7P/7) **
FRANCE (~56P/58) *
GB (1P/1) BELGIUM
(5P/7)
SWEDEN (3P/3, 3B/7)
FINLAND (0B/2) GERMANY (11P/11, 3B/6) SPAIN
(1P/6,0B/2)
In addition to map: Mexico (2B), Slovenia (1P), South Korea (16P), India (2B) and Pakistan (1P)
NL (1P/1)
SWITZERLAND (3P/3, 1B/2)
AREVA provides fuel for 91% of its
reactor installed base and for 23% of its competitors’
installed base
Reactors
& Services
Renewable
Energies
BG Back-End
•Recycling of the used fuel and provider of clean-up and dismantling services
•Design and construction of nuclear reactors
•Maintenance and modernization of the nuclear power plants
•Uranium mines exploration and operation activities
•Conversion and enrichment of the uranium and design of the fuel for the nuclear reactors
•Development of wind energy, bio- energy, solar power and hydrogen power solutions
Front-End Division Reactors & Services Division Back-End Division
Mining Front-End
BG Mining/ Front-End
Reactors & Service Division
2009 Sales: €3,418 M
21,000 employees AREVA: a global key player in the
Reactors & Services
Key financials Key financials
Reactors & Services Division
Still mostly recurring, but new build is there
Sales – 2009 split Sales – 2009 split
►
Plants: design, construction and commissioning of nuclear islands, and monitoring, replacement, upgrades and renovation of installed base
►
Equipment: manufacture of key components for nuclear power plants
►
Nuclear services: reactor optimization services
►
Nuclear measurement: design and construction of systems and devices designed to measure radioactivity
►
Consulting and Information Systems: IT services
►
AREVA TA: design, production and maintenance of nuclear reactors for research and for the propulsion of submarines and aircraft carriers
►
Renewable Energies: design and construction of systems using either wind power, biomass, solar, or hydrogen energy
(137)M€
(76) (688)
OPERATING INCOME*
- 4,3 pts - 2,2 %
(22.7%)
% Sales
€(147)M (736)
(589) OP. FCF BEFORE TAX
+ 12,8 % 3 418
3 031 SALES REVENUES
+13,5 % 8 910
7 850 ORDER BOOK
Change 2009
2008 In millions of euros
A global key player in the Reactors & Services A global key player in the Reactors & Services
*Including the €749M OL3 Provision in 2008
Renewable energies
5%
CIS 4%
AREVA TA 12%
Equipment 9%
Nuclear measures
5%
Reactors 41%
Nuclear services
24%
Implementing a range of generation 3+ reactors
Under construction
Selected or planned*
4 20+
Marketed since 2003
Marketed in spring 2010
Customer having shown an interest
Basic design completed end 2010
Customer having shown an interest
* EPR already (pre) selected by customers, under negotiation, or invitation to tender
High capacity airplane crash resistance
Severe accident completely contained
Missiles, Bombs and earthquake resistance
Generation 3+
criteria
The Path to Greatest Certainty
The EPR Reactor
Generation III+ PWR
4-Loop
4 590 MWth
SG pressure 77bar at 100% power
4x100% redundancy of active safeguard systems
Backup in case of total loss of safety function
High power output (1,650 MWe) Evolutionary design (Konvoi/N4) Low global power generation costs
♦ Reduce by up to 15% fuel consumption
♦ 60 years of operation
♦ Improved flexibility to reduce opex
Outstanding safety level
Maximized benefit from size effect Minimal environmental impact
Construction in Finland, France & China Licensing engaged in the USA & UK
The Path to Greatest Certainty
1,650 MWe PWR
The Path to Greatest Certainty
The ATMEA1 Reactor
The mid-sized GenIII+ PWR
1,100 MWe PWR
Generation III+ PWR
3-Loop
2 860 - 3 150 MWth
SG pressure 71b at 100% power
3x100% redundancy of active systems, passive safety systems and an additional backup cooling chain
Backup in case of total loss of safety function
Medium power output (1,100 MWe) Evolutionary design based on the EPR
and MHI’s APWR
Outstanding safety level
Minimal environmental impact
Strong customer interest from GDF Suez
™
The Path to Greatest Certainty
The KERENA Reactor
The mid-sized GenIII+ BWR
1,250 MWe BWR
Generation III+ BWR 3 370MWth
Steam pressure 75b at 100% power Diversity of safety systems:
• 2 qualified active safety systems
• 4 qualified passive safety systems
Medium power output (1,250 MWe) Design based on successful operation
experience in the latest German BWRs Outstanding safety level
Minimal environmental impact
Strong customer interest from E.ON
AREVA EPR fleet is being deployed
EPR currently under construction
FLAMANVILLE 3 under construction Supply of a Nuclear Steam Supply
System
FRANCE
1
OLKILUOTO 3 under construction
Turnkey
FINLAND
1
CHINA
2 units (TAISHAN 1&2) under construction
Supply of 2 Nuclear Islands
2
© AREVA / Päivi Bourdon OL3
© EDF
Since 2001, AREVA develops its activities in new renewable energies
Design and production of wind off- shore turbines
Off-shore Wind Energy storage and vector
Design and production of stationary back-up solutions (fuel cells)
Creation of Helion (2001)
2001
Acquisition of Multibrid (2007)
Acquisition of PN Rotor (2009)
Integration of T&D biomass activities (2004)
Acquisition of Koblitz (2008)
Creation of ADAGE JV (2008) Creation of the
Business Unit Renewables (2006)
2010
Concentrated Solar
Design and construction of concentrated solar power plants
Bio-energies
Design and construction of biomass fired power plants
Acquisition of Ausra (2010*)
* Signing in February 2010
2005
Major AREVA Renewables operational units aligned with market opportunities
USA
►Bioenergy JV ADAGE
►Bioenergy EPC
►AUSRA - Concentrated Solar Thermal
Brasil
►Bioenergy EPC
France
►Headquarter
►Research and development
►Hydrogen R&D and Manufacturing (fuel cells)
Germany
►Wind off-shore manufacturing
►Windpower Research and development
►Blade set manufacturing
►Bioenergy EPC
India
►Bioenergy EPC
China
►Business development team
BG Reactors
& Services
BG Renewable
Energies
Back-End
•Recycling of the used fuel and provider of clean-up and dismantling services
•Design and construction of nuclear reactors
•Maintenance and modernization of the nuclear power plants
•Uranium mines exploration and operation activities
•Conversion and enrichment of the uranium and design of the fuel for the nuclear reactors
•Development of wind energy, bio- energy, solar power and hydrogen power solutions
Front-End Division Reactors & Services Division Back-End Division
Mining Front-End
BG Mining/ Front-End
Back-End Division
2009 Sales: €1,637 M
11,100 employees
AREVA: the global leader in used
nuclear fuel management
Sales – 2009 split Sales – 2009 split
►
Recycling: a full service of fuel recycling, including Mixed Oxide fuel and Reprocessed Uranium fuel production
►
Logistics: design and supply of casks for the transportation and storage of radioactive materials; also safe and secure transportation and logistics services
►
Nuclear site value development: performance-based project management for Dismantling and Decommissioning programs;
development of integrated and innovative solutions for both AREVA and external customers
►
Cleanup: operation of dismantling and waste processing facilities, specialized nuclear maintenance
►
Engineering: engineering services contributing to the design and construction of installations for global nuclear operators
Back-End Division
An unchallenged leadership
- 10,1 % 235
261 OPERATING INCOME
- 1,0 pt 14,4 %
15.4%
% Sales
€(134)M 288
422 OP. FCF BEFORE TAX
- 3,3 % 1 637
1 692 SALES REVENUES
-14,1 % 6 685
7 784 ORDER BOOK
Change 2009
2008 In millions of euros
Key financials Key financials
Nr 1 in used nuclear fuel management Nr 1 in used nuclear fuel management
Logistics 15%
Recycling 61%
Engeeniring 2% Cleanup
7%
Nuclear Site Value Development (Decommissioning)
14%
A strong and unique industrial base
► La Hague First generation plant dismantling
► Marcoule UP1 Treatment plant dismantling
► Cadarache
MOX plant dismantling
(performed by Front-End with recycled uranium supplied by Back-End)
► Romans
RepU fuel fabrication
► Tricastin
RepU Enrichment and Conversion
La Hague plant
Production capacity: 1 700 tons of used fuel
Production capacity: 195 tons of MOX fuel
Melox plant
Recycling Plant dismantling Reprocessed Uranium Fuel Fabrication
► La Hague Fuel treatment
► MELOX
MOX fuel fabrication
Worldwide recognition of AREVA’s leadership in Back-End
USA
►MOX Fuel Fabrication Facility under construction for DOE ($5Bn)
►60% of dry storage market for US utilities
►Significant presence on major DOE sites
Europe
►EDF: framework agreement for comprehensive recycling services until 2040
- Agreement on used fuel cycle management in February 2010
►Other utilities: over 6,000t of fuel recycled (EON, RWE, Suez, SOGIN, etc.) and 300 casks sold
►Sellafield site Management & Operations
►Management of World’s largest civilian D&D program
Japan
►A total of 3 000t of Japanese nuclear fuel has been recycled at La Hague to date
►MOX fuel fabrication and transportation to Japan started in 2008
►First-time electricity production from MOX fuel in 2009
►Successful technology provider for the Rokkashomura recycling plant (based on La Hague model)
57% France Europe – 20%
Excl. France 8%
Americas 15%
Asia Pacific
% of total 2009 sales
Contents
► Introduction to AREVA
► 2005-2009 Group Performance
► AREVA Development Plan 2010-2012
► Performances and objectives by division
► AREVA latest financial results
► Appendices
Key Figures in 2009
Nuclear, Renewable Energy and T&D scope
+€686M 6,185
5,499 Net debt
€(38)M (959)
(921) Free operating cash flow (*)
(550)
ns(749) Additional OL3 provision
+€115M 648
Operating cash flow before 533 investments
+20.1%
501 417
Operating Income
(9.9)%
1,051 1,166
Operating income before OL3
+6.4%
14,003 13,160
Revenue
+2.5%
49,438 48,246
Backlog
∆ 09/08
2009 2008
In millions of euros
552 (37) 589
Net income attributable to equity holders of the parent
* EBITDA +/- proceeds from sale of capital assets and dilution+/- variation in operating WCR - operating capex net of disposals
Key Figures in 2009
Nuclear and Renewable Energy scope
€(2 477)M 3 022
5 499 Proforma net debt post sale of T&D (**)
-
*** € 7.06
€ 7.05 Dividend per share (in euros per share)
+€694M 6,193
5,499 Net debt
- 45%
42%
Pay-out ratio (%)
+€145M 375
230 Operating cash flow before investments
€(104) M
267 371
Net Earnings of discontinued operations (T&D)
(550) (749)
Additional OL3 provisions
€(19)M (919)
(900) Free operating cash flow (*)
€(37)M 552
589 Net income attributable to equity holders of the parent
+€240 M 97
(143) Operating income
+6,8%
647 Operating income before OL3 606
+5,4%
8,529 8,089
Revenue
+1,8%
43,302 42,531
Backlog
∆ 09/08
2009 2008
In millions of euros
* EBITDA +/- proceeds from sale of capital assets and dilution +/- variation in operating WCR - operating capex net of disposals
** Proforma net debt 31/12/2009: Net debt at 31/12/2009 - T&D selling price (value of the T&D shareholders' equity + redemption of T&D's net debt financed by AREVA i.e. internal debt)
*** Pending decision by the Annual General Meeting of Shareholders of 29 April 2010
*At constant consolidation scope, accounting methods and exchange rates Exchange rate 31/12/2009: 1.4406 vs 1.3917 at 31/12/2008
In millions of euros
8,089 +108
Front End (55)
Back End R&S
+387 8,529
2008 2009
Growth in Revenue of 5.4% for Nuclear and Renewable Energy Business
(up 4.6% like-for-like*)
Operating Income from Nuclear and Renewable Energy Business
* Excl. OL3 provisions
In millions of euros
2008 2009
+62 +206
(26)
Front End Back End
R&S
Corp.
(1) €97M
i.e. 1.1% of revenue 749
€606M*
i.e. 7.5% of revenue
€647M*
i.e. 7.6% of revenue
550 OL3 Provision
OL3 Provision
-€143M
Front End Division
* EBITDA +/- proceeds from sale of capital assets and dilution+/- variation in operating WCR - operating capex net of disposals
ČEZ
► Average uranium selling price: +5%
► Increase in Enrichment volumes
► Decrease in production costs
► Capital gains from GBII dilution
**and Imouraren
► Cost of ramping up major projects (mining projects, Comurhex II & GBII)
► Lower level of inventory building for the transition GBI GBII
► Cash in from new minority interests in GBII
**and Imouraren
► Investment programmes (Mining and Enrichment)
**
Similar effect of new minority interests in GBII on OCF and EBIT in 2008 and 2009Key Figures
+€294M (315)
(609) Free OCF
before tax *
+45.4%
453 659 Contrib.
to EBIT
% of revenue
+3.2%
3,471 3,363
Contrib.
to revenue
+3.0%
27,715 26,897
Backlog
∆ 09/08 2009
2008 In millions of euros
+5.5 pts
19.0%
13.5%
Mining 2009 Developments
**Average price calculated on volumes of U3O8 sold incl. trading
► Operations:
Katco: number one ISL* production in the world
> at 3,000 t U
Somaïr: starting heap leaching Trekkopje: desalination plant tests Imouraren: 1
stearthwork
Mining Production Costs
(base 100 in 2007)Average AREVA selling price
($/lb)**100
126
109
2007 2008 2009
Raw materials affected -13%
by high inflation
Spot price at 31/12/2009: $44.5/lb Spot price at 31/12/2008: $52/lb
* In Situ Leaching
► Partnerships:
Imouraren: operating licence obtained
and Kepco/KHNP taking an interest in the capital Minority partnership agreement
with Mitsubishi Corp. in Mongolia Joint mining exploration venture with the Government of Namibia Mining cooperation agreement
in the Democratic Republic of Congo
Significant Developments
Significant Developments Performances Performances
36 36,9
38.6
2007 2008 2009
+5%
Reactors & Services Division*
* The Reactor and Services Division includes renewable energy activities
** EBITDA +/- proceeds from sale of capital assets and dilution+/- variation in operating WCR - operating capex net of disposals
► Engineering Services (multi-year contract)
► 60 primary pumps for China
► Replacement of steam generators
► Reorganising and restructuring of projects, particularly in wind energy
► Increased R&D expenses and efforts to develop major projects
► Strong contribution from major Reactor projects and installed base business
Key Figures
(550)
ns(749) Additional
OL3 provision
+€62M +4.4 pts
(626) -18.3%
(688) -22.7%
Contrib. to EBIT
% of revenue
€(147)M
(736) (589)
Free OCF before tax **
€(137)M
(76) Contrib. to EBIT 61
before prov. OL3
% of revenue
+12.8%
3,418 3,031
Contrib. to revenue
+13.5%
8,910 7,850
Backlog
∆ 09/08 2009
2008 In millions of euros
-4.3 pts
-2.2%
2.1%
► Customers advance payments
► Costs relating to the Finnish project OL3
► Continued capex
Back End Division
* EBITDA +/- proceeds from sale of capital assets and dilution +/- variation in operating WCR - operating capex net of disposals
€(134)M 288
Free OCF 422 before tax *
- 10.1%
- 1.0 pt
235 14.4%
261 15.4%
Contrib. to EBIT
% of revenue
- 3.3%
1,637 1,692
Contrib. to revenue
-14.1%
6,685 7,784
Backlog
∆ 09/08 2009
2008 In millions of euros
► MOX fuel
CHUGOKU
► Very high level of operational performance
► Use of customer advances, in line with contract execution timing
Key Figures
Power generated for the first time using MOX in Japan
► Delivering on contracts to manufacture MOX signed since 2006
► A large-scale recycling programme
8 contracts already signed with 7 utilities
3 deliveries already completed,
2 reactors to be loaded in 2010
2 deliveries to take place in 2010
A clear outlook up until 2020
► 1/3 of MOX production capacity reserved for exports
Fuel arriving in Japan
© Kyushu Epco
Fuel loading
Genkai power plant Kyushu utility
© Kyushu Epco
Free Operating Cash Flow before tax
► Income on disposal and divestitures associated with new minority interests in the capital of the GBII enrichment plant and the Imouraren mining project
► WCR: customer advances for reactors and services offset the build up of inventories
(transition GBI GBII) in the Front End (see next page for balance sheet operating WCR analysis)
► Capital Expenditure: implementing programmes in Mining, Enrichment and Equipment
2009 in €M
* And other non cash items having an effect on operating icome
Gross capex.
Free operating cash flow before tax Divestitures
EBITDA
Change in working
capital requirement
Operating cash flow before capex.
Income on disposal*
(314)
584 +105 375
(1,808)
(919)
+514
Generating cash and liquidity
► Excess of working capital
requirement despite the impact of transition inventory build up
in the Front End (enrichment) Front End 1 431 1 615 +€184M
€(226)M (446)
(220) Reactors & Services
€(52)M (1,233)
(1,182) Back End
∆ 09/08 Operating WCR on the Balance Sheet
( ): resources /+ : cash use
2009 2008
€M
► Disposal programme in line with the plan announced on 30/06/2009: ~€1.5bn
Total and GDF SUEZ
Minority interests in Mining and Enrichment
► 3 billion euro bond issues with long term maturity
► 1.3 billion euro of cash available at 31.12.2009*
► 3 billion euro in back-up credit lines available
* Cash equivalent : short-term marketable securities (group excluding T&D) : 1 265 million euros
Net Debt
*Siemens debt incorporated at its 2007 value(€2,049M) plus interest accrued
**Including dividends paid to AREVA by activities held for sale
***Proforma net debt 31/12/2009: Net debt at 31/12/2009 - T&D sale price (value of the T&D shareholders' equity + redemption of T&D's net debt financed by AREVA SA – internal debt)
Shareholders' equity at 31.12.09: €7,574M
(5,499)*
(919)
(124) (309)
(6,193) *
31.12.2008 31.12.2009
Free Operating cash flow
before tax
Other factors Cash flow
from end- of-life cycle
operations
Dividends Financial Operations
1,006 (251) (97)
Change in net debt of activities
held for sale **
Proforma net debt at 31/12/2009 post closing T&D ***
