3. 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
4. Agenda
1. Introduction
2. AREVA in a world in crisis
3. Performances and objectives by division
4. Financials
5. Appendixes
4 > Overview – June 2009
5. 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
6. 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
7. 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
8. 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
9. 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
10. Agenda
1. Introduction
2. AREVA in a world in crisis
3. Performances and objectives by division
4. Financials
5. Appendixes
10 > Overview – June 2009
12. 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
13. 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
14. 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
15. 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
16. 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
17. 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
18. 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
19. 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
20. 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
21. 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
22. 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
23. Agenda
1. Introduction
2. AREVA in a world in crisis
3. Performances and objectives by division
4. Financials
5. Appendixes
23 > Overview – June 2009
24. 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
25. 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
26. 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
27. 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
28. 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
31. 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
32. 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
33. 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
35. 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
36. 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
37. 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
38. 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
39. 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
40. 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
41. 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
42. 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
43. 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
44. Agenda
1. Introduction
2. AREVA in a world in crisis
3. Performances and objectives by division
4. Financials
5. Appendixes
44 > Overview – June 2009
45. 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
46. 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
47. 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
48. 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
49. 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
50. 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
51. 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
52. 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
55. 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
56. 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
57. 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
58. 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
59. 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
60. 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
61. 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
63. 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
64. 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
66. 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
67. 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
68. 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
69. 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
