AREVA: Global leader in low-carbon power generation Premium Review Société Générale Paris, November 29 th, 2012
Agenda AREVA overview Strategy & performance Financial Outlook AREVA Presentation November 29, 2012 p.2
Energy market: continued growth announced Macroeconomics Energy demand: x2 by 2050 Geopolitics Energy independence and security of supply imperative WEO 2012 2010 2035 New Policies Scenario Resources Increasing difficulties in extracting resources leading to higher prices Demand in nuclear energy* +1.9% / year Environment GHG emissions reduction goal of 50% by 2050 Demand in renewable energies* +2.5%** / year Economics Need of mastered, stable and predictable energy costs * Billions of toe ** Including hydraulic energy AREVA Presentation November 29, 2012 p.3
Nuclear Energy value chain Site value development Recycling Services Recurring activities New Builds Mining Reactors Installed Base Leader in low-carbon power generation Reactors New Builds Chemistry Enrichment Fuel fabrication > 80% of group revenues come from recurring activities Technical, operational, commercial and financial synergies Renewable Energy offering Offshore Wind Energy Storage Thermal Solar Bio- Energies AREVA Presentation November 29, 2012 p.4
Nuclear scenario: differed but confirmed growth AREVA 2011 scenario (GWe) Reassessed at end-june 2011 o.w 47 GWe in Japan 20 GWe in Germany Change in global installed base (GWe) AREVA s business model allows it to capture market opportunities in all segments AREVA Presentation November 29, 2012 p.5
Nuclear Reactor lifecycle AREVA is present on the full nuclear value chain Construction Operations End of life Mining Front End Reactors and Services Back End AREVA covers all phases of nuclear reactors lifecycle AREVA Presentation November 29, 2012 p.6
Construction AREVA benefits from strong competitive edge in new constructions A competitive value proposition Highest safety standards Air plane crash protection Core meltdown protection systems Avoidance of nuclear materials discharge Resistance to earthquakes and flooding Amongst lowest levelized cost of electricity Investment cost per MW close to other technologies in recent bids Up to 25% lower operations cost Excellent operational performance Optimized outage strategy with fuel cycle flexibility Increased closed cycle profitability with 100% MOX compatibility EPR: most advanced technology in terms of construction worldwide All AREVA reactors meet generation III nuclear safety criteria AREVA Presentation November 29, 2012 p.7
Construction AREVA is involved in major tenders for new nuclear worldwide Ongoing negotiations (bilateral) Ongoing bids Upcoming bids (in 3-5 years) EDF Hinkley Point C-D JAEC ESKOM PGE CGNPC Taishan 3-4 Fennovoima Pyhäjoki Saudi Arabia NuGen (GDF Suez Iberdrola JV) NPCIL EDF PPL Duke Energy Jaitapur 1-2 Calvert Cliff 3 Bell Bend Piketon CEZ * TVO Temelin 3-4 OL 4 Delta New Brunswick Power Vattenfall MVM MNPC * Suspended, waiting for arbitration of Czech national competition body UOHS NA-SA AREVA Presentation November 29, 2012 p.8
Operations AREVA s recurring activities allow utilities to operate nuclear reactors Utility Fuel assemblies Used fuel External services & maintenance Outages Replacement of components Upgrades Uprates AREVA seizes opportunities in all segments of nuclear operations irrespective of reactors technology AREVA Presentation November 29, 2012 p.9
Operations 95% of all nuclear utilities are AREVA customers AREVA references: 98 reactors built 4 reactors under construction Europe, CIS and Africa 188 reactors in operation ~140 reactors served by AREVA 114 for services 135 for fuel North and South Americas 130 reactors in operation ~130 reactors served by AREVA 126 for services 100 for fuel Asia 119 reactors in operation ~90 reactors served by AREVA 17 for services 90 for fuel AREVA provides products and services to 360 reactors worldwide AREVA Presentation November 29, 2012 p.10
Operations Forecasted growth in worldwide nuclear installed capacity Europe - 13% North America + 11% 2011 377 GW 2030 583 GW Japan & Korea Russia & CIS + 31% + 19% China (including Taiwan) & India x 8 Rest of world x 3 Source: AREVA 2011 scenario + 54% installed base capacity by 2030 will drive market opportunities across all regions for AREVA AREVA Presentation November 29, 2012 p.11
An organization designed to seize opportunities all over the world AREVA worldwide presence Regional headquarters America regional offices Europe regional offices Asia-Pacific regional offices AREVA Presentation November 29, 2012 p.12
End of life Stade, Würgassen, Obrigheim Millstone, Rancho Seco, Yankee Rowe Dismantling: broad expertise in managing customer projects Reactor vessel / internals: decontamination and dismantling (D&D) Used fuel, effluent / radioactive waste management Dismantling of the reactor vessel and internals Decontamination of primary and auxiliary circuits Dismantling of the reactor vessel and internals Fukushima Dounreay Design and implementation of a full water treatment system Special equipment to retrieve damaged fuel in research reactor Assistance to the project owner / Design and engineering Creys-Superphénix Support to the sodium retrieval and D&D preparation M&O (maintenance and operations) for D&D projects Hanford Savannah Marcoule Sellafield High level waste treatment (customer: DOE) Vitrification of high level waste (customer: DOE) D&D of a large fuel treatment facility (customer: CEA) Member of the site's M&O consortium Creation of an expertise center for decommissioning and dismantling in Germany AREVA Presentation November 29, 2012 p.13
AREVA Renewables currently operates in 4 market segments Offshore Wind Concentrated Solar Power Bioenergy Energy Storage More electricity output than onshore turbines More Wind hours Higher wind levels Larger turbine sizes Enables steam production for hybrid fossil/solar plants and industrial applications Possibility of thermal storage increasing production hours Energy production from biomass sources AREVA also active in upstream biomass treatment market through its torrefaction technology Hydrogen production through electrolysis technology Power production from hydrogen in fuel cells Other energy storage technologies considered for largescale applications AREVA Presentation November 29, 2012 p.14
Renewable Energies market: accelerated growth expected Estimated average annual market size in volume Sources: IEA World Energy Outlook for CSP and Bioenergy, AREVA forecasts for Offshore Wind (WEO does not distinguish onshore/offshore) Offshore wind market (Europe) (MW) Solar CSP market (World) (MW) Bioenergy market (World) (MW) 4,700 Other Asia / Oceania India China Europe North America Middle-East and Africa 5,160 7,317 Other Asia / Oceania Middle-East / Africa India Latin America Europe Other Europe North America 2,340 France Germany UK 1,010 1,561 China 2011-2015 2016-2020 2011-2015 2016-2020 2011-2015 2016-2020 AREVA s positioning on renewable market: selected growing activities AREVA Presentation November 29, 2012 p.15
Agenda AREVA overview Strategy & performance Financial Outlook AREVA Presentation November 29, 2012 p.16
Action 2016 Strategic Action Plan Safety Security Transparency Commercial priority given to value creation Selectivity in capital spending Debt management Installed Base: doubling profitability by 2016 New Builds: becoming the reference technology 7.7bn over the 2012-2016 period, i.e. -34% vs. 2007-2011 Several projects on hold Improving our performance Disposal plan > 1.2bn over the 2012-2013 period Fully self-financed Capex on a cumulative basis over the 2012-2016 period - 1bn on annual operating costs base and - 500m in WCR by 2015 Concrete progress in all strategic orientations AREVA Presentation November 29, 2012 p.17
Safety Commercial priority given to value creation Security Transparency Selectivity in capital spending Improving our performance Debt management Asset disposals program ahead of schedule Improvement of AREVA s financial structure Strengthening our balance sheet c. 1.2bn December 14, 2011: 01dB-Metravib January 30, 2012: Sofradir May 16, 2012: ERAMET June 1, 2012: AREVA Lesedi 2 bond issues: March 8, 2012: 400m bond issue (maturity: October 5, 2017) March 21, 2012: 200m private placement maturing in 10 years No major debt refinancing required before 2016 June 11, 2012: Millennium August 28, 2012: La Mancha Average debt maturity: 7 years 2012-2013 2013 objective for disposals has been reached Liquidity: 1.9bn in net cash available at 6/30/2012 (+ 462m vs end of 2011) AREVA Presentation November 29, 2012 p.18
Safety Security Transparency Commercial Selectivity priority given Debt in capital to value management spending creation Improving our performance 65% of the operating cost reduction goal secured OBJECTIVE of improving performance 1bn reduction in annual operating costs by 2015 1.0bn Objective Achieved (1) Secured (2) Identified (3) ~ 450m 45% of the 2015 goal is secured (1) Contribution to savings by actions completed at end-june 2012, based on annual costs excluding technology transition in Front End (2) Contribution to savings by actions secured at end-june 2012, based on annual costs excluding technology transition in Front End (3) Contribution to savings by actions identified at end-june 2012, based on annual costs 2015 objective ~ 150m ~ 200m 2011-2012 actions ~ 200m 2011-2015 actions 20% of the 2015 objective has been achieved 350m secured at the end of 2012 65% of the 1bn secured by 2015 AREVA Presentation November 29, 2012 p.19
47bn of backlog: 5 years of revenue secured Backlog at September 30, 2012 In value Number of years of 2011 revenue in backlog Approximate coverage of 2012 revenue by BG (rounded) Mining 12.8bn 10 ~100% Front End 18.5bn 8 ~95% Reactors & Services 8.5bn 3 ~90% Back End 5.8bn 4 ~100% Renewable Energies 1.3bn 4 ~75% AREVA Presentation November 29, 2012 p.20
Commercial dynamism and improved profitability Backlog ( bn) Revenue ( m) 42.5 43.3 44.2 45.6 42.7 +10.1% 47.0 7,589 9,104 8,089 8,529 8,872 +10.0% 5,950 6,542 34.9 2007 2008 2009 2010 2011 Sept. 2011 Restated EBITDA* ( m) Sept. 2012 2007 2008 2009 2010 2011 9M 2011 Restated FCF before tax*( m) 9M 2012 908 + 508m 2007 2008 2009 2010 2011 H1 2011 H1 2012 402 262 684 421 217 725-900 -919-1,090-1,366-919 -591 + 328m -2,218 2007 2008 2009 2010 2011 H1 2011 H1 2012 *Restated for Siemens impacts in 2011and capital gains on disposal of stakes in Mining and Enrichment projects AREVA Presentation November 29, 2012 p.21
Agenda AREVA overview Strategy & performance Financial Outlook AREVA Presentation November 29, 2012 p.22
Financial outlook Action 2016: 2012-2013 outlook Upward revision for 2012 Action 2016: 2015-2016 outlook Revenue Nuclear: +3 to 6% per year Renewables > 750m Nuclear: +4 to 6% Renewables: ~ 600m Nuclear: +5 to 8% p.a Renewables: > 1.25bn EBITDA > 750m > 1.25bn > 950m Free operating cash flow excl. disposals > - 1.5bn Break-even > - 1.25bn > + 1.0bn p.a from 2015 At constant consolidation scope 2012 outlook revised upward at the occasion of H1 2012 results AREVA Presentation November 29, 2012 p.23
2012 half-year results AREVA July 27, 2012 - p.24 Appendix
AREVA in figures 47bn backlog at 09/30/2012 8.872bn in revenue in 2011 Seizing growth opportunities on the worldwide existing fleet and on new markets Geographic distribution of 2011 revenue Europe 61% 47,541 employees Incl. France 36% Incl. Germany 9% in 25 countries 900 experts 8,000 patents North & South America 17% 2% Africa & Middle East 20% Incl. Japan 8% Asia Pacific 4% of sales devoted to R&D AREVA Presentation November 29, 2012 p.25
Forward-looking statements Disclaimer 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 shareholders 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 explained 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 03/29/2012 (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. AREVA Presentation November 29, 2012 p.26