AREVA, Business & strategy overview - Appendix 1 - November 2009

AREVA
Business & Strategy overview
Appendices

November, 2009

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 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.

AREVA Overview – November 2009 p.3

Appendices
► Financials p5

► Nuclear: a critical part of the solution p 19

► Mining business details p 23

► Conversion/ Enrichment/ Fuel business details p 31

► Reactors & Services business details p 36

► Back-End business details p 42

► Renewable business details p 50

► Outlook China p 58

► Outlook India p 70


Key data for 2008
In millions of euros 2007 2008 ∆ 08/07

Backlog 39,834 48,246 +21.1%

Revenue 11,923 13,160 +10.4%

Operating income before OL3 1,043 1,166 +11.8%
% of revenue 8.7% 8.9% +0.2 pts

Additional provision for OL3 (292) (749)

Operating income 751 417 -44.5%
% of revenue 6.3% 3.2% - 3.1 pts

Net income attributable to equity holders of
743 589 -20.7%
the parent €20.95 €16.62 -20.7%
Earnings per share

Free operating cash flow* (1,985) (921) +€1.064Bn

12/31/08 6/30/09

Net debt (**) 4,003 5,499 + 37.4%
* EBITDA +/- change in Operating WCR – Capex net of disposals
** Siemens’ put option at its 2007 value, i.e. €2.049B


First half 2009 revenue
compared with first half 2008

H1 2009 H1 2008

Reported Comparable Exchange Consolida- Harmonization Reported
In millions of euros revenue* revenue rate tion scope of accounting revenue
impact impact methods

Front End 1,556 1,547 60 0 0 1,488

Reactors and
Services 1,506 1,535 44 25 0 1,466
division
Back End
843 938 9 0 0 930
division
Nuclear
3,906 4,021 112 25 0 3,883
Operations

T&D 2,614 2,325 (20) 61 0 2,284

Corporate 2 1 0 0 0 1

Group total 6,522 6,346 92 86 0 6,168

* Contribution to revenue


Non-operating items

In millions of euros H1 2008 H1 2009 ∆ H109/H108

Operating income 539 16 (523)

Net financial income 213 212 (1)

Share in net income of equity
121 (163) (284)
associates

Income tax (74) (58) +16
Effective tax rate 9.8% 25.3% + 15.5 pts

Minority interests 38 (154) (192)

Net income attributable to
760 161 (599)
equity holders of the parent


Net financial income

In millions of euros H1 2008 H1 2009 ∆ 09/08

End-of-life-cycle operations
1 29 28
including:
Income from portfolio earmarked for end-of-life-cycle
62 47 (15)
operations
66 76 10
Income from receivables related to dismantling and from
discount reversal on earmarked assets
(127) (95) 32
Discounting reversal expenses

Cost of net debt (net of discounts and premiums) (55) (59) (4)

Discounts and premiums on financial instruments (21) 1 22

Income from disposals of securities 354 244 (110)

Discount reversal on retirement and benefits (35) (45) (10)

Other income and expenses (31) 43 74



Share in net income of associates


STMicroelectronics (3) (124) (121)

Eramet Group 116 (39) (155)

Other 8 0 (8)

Total 121 (163) (284)


Minority interests


Siemens’ 34% share of AREVA NP (44) (166) (122)

Minority interests’ 40% of Eurodif 37 14 (23)

Other 45 (2) (47)

Total 38 (154) (192)


Cash flow and net debt
In millions of euros H1 08 H1 09

Operating EBITDA 863 459
% of revenue 14.0% 7.0%

Net gain on disposals of non-current operating assets (190) (173)

Change in operating WCR (739) (783)

Net operating Capex (455) (618)

Free operating cash flow before tax (521) (1,115)

End-of-life-cycle obligations (20) (33)

Dividends paid (319) (313)
Other (net financial investments, income tax,
428 546
non-operating WCR, etc.)
Increase (decrease) in net cash (432) (915)

Net debt (6/30) 4,459 6,414


Simplified balance sheet at 6/30/09
In billions of euros

Goodwill 5 Total equity
6.7

PPE and intangible assets 8.6 5.7 Provisions for end-of-life-cycle operations

3.7 Other provisions
Assets earmarked for end of 5.2
life cycle operations 0.6 Other balance sheet items

Equity associates 1.6
6.4 Net debt*: €(6.414)B
Non-current financial assets 1.2
1.5
Operating WCR
Secteurs refroidis
Simplified assets creuset par
du Simplified liabilities &
Simplified = 23.1 = Simplified liabilities
assets circulation d’eau equity
& equity
* Net debt including Siemens’ put option at its 2007 value, i.e. 2.049 billion euros


Balance Sheet (1/2)
ASSETS (in millions of euros) June 30, 2009 December 31, 2008
Non-current assets 22,557 22,841
Goodwill on consolidated companies 5,016 4,803
Intangible assets 3,317 3,089
Property, plant and equipment 5,294 4,913
End-of-life-cycle assets (third party share) 277 270
Assets earmarked to finance end-of-life-cycle operations 4,986 4,954
Equity associates 1,571 1,757
Other non-current financial assets 1,174 2,152
Pension fund assets 2 1
Deferred tax assets 921 900
Current assets 12,534 11,804
Inventories and work-in-process 3,820 3,403
Trade accounts receivable and related accounts 4,857 4,486
Other operating receivables 2,747 2,434
Current tax assets 95 164
Other non-operating receivables 181 154
Cash and cash equivalents 622 1,050
Other current financial assets 212 113
Assets of operations held for sale - -
Total assets 35,091 34,644


Balance Sheet (2/2)
Liabilities and Equity (in millions of euros) June 30, 2009 December 31, 2008
Equity and minority interests 6,693 7,292
Share capital 1,347 1,347
Consolidated premiums and reserves 4,734 4,455
Deferred unrealized gains (losses) on financial instruments (129) 287
Currency translation reserves (190) (131)
Net income attributable to equity holders of the parent 161 589
Minority interests 769 745
Non-current liabilities 12,025 11,795
Employee benefits 1,283 1,268
Provisions for end-of-life-cycle operations 5,696 5,674
Other non-current provisions 121 123
Long-term borrowings 4,218 3,969
Deferred tax liabilities 707 760
Current liabilities 16,374 15,558
Current provisions 2,251 2,081
Short-term borrowings 3,031 2,693
Advances and prepayments received 4,975 4,752
Trade accounts payable and related accounts 2,939 2,991
Other operating liabilities 3,042 2,884
Current tax liabilities 57 104
Other non-operating liabilities 80 53
Liabilities of operations held for sale - -
Total liabilities and equity 35,091 34,644


Income Statement
In millions of euros June 30, 2009* June 30, 2008* December 31, 2008*
Revenue 6,522 6,168 13,160
Other income from operations 41 18 32
Cost of sales (5,674) (4,905) (10,906)
Gross margin 889 1,281 2,286
Research and development expenses (249) (205) (453)
Marketing and sales expenses (320) (287) (607)
General and administrative expenses (487) (468) (980)
Other operating income and expenses 183 219 171
Operating income 16 539 417
Income from cash and cash equivalents 5 13 38
Gross borrowing costs (63) (89) (148)
Net borrowing costs (59) (76) (111)
Other financial income and expenses 271 289 81
Income tax (58) (74) (46)
Net income of consolidated businesses 171 678 343
Share in net income of equity associates (163) 121 156
Net income from continuing operations 7 799 498
Net income from discontinued operations -- -- --
Net income for the period 7 799 498
of which minority interests (154) 38 (91)
Net income attributable to equity holders of the 161 760 589
parent

* The discount/premium is classified in Other financial expenses as from 12/31/2008. It was classified in gross borrowing costs in H1 2008


Key data by division (1/2)
H1 09
Reactors
In millions of euros and Back Group
(excluding employees) Front End Services End T&D Corporate total

Contribution to revenue 1,556 1,506 843 2,614 2 6,522

Results Operating income 348 (608) 150 186 (61) 16

% of revenue 22.4% - 40.3% 17.8% 7.1% - 0.2%

EBITDA (excluding end-of-life-
cycle costs)
438 (333) 198 211 (55) 459

% of contribution to revenue 28.1% - 22.1% 23.5% 8.1% - 7.0%

Cash
Net Capex (235) (163) (50) (149) (20) (618)
position

Change in operating WCR (212) (97) (88) (370) (17) (783)

Free operating cash flow (179) (595) 60 (310) (92) (1,115)

Other Employees 14,950 20,287 10,993 30,816 884 77,929


Key data by division (2/2)
H1 08
In million of euros Reactors
(excluding and Back Group
employees) Front End Services End T&D Corporate total

Contribution to revenue 1,488 1,466 930 2,284 1 6,168

Results Operating income 400 (258) 175 253 (32) 539

% of revenue 26.9% - 17.6% 18.8% 11.1% - 8.7%

EBITDA (excluding end-of-life-
cycle costs)
533 (98) 205 255 (31) 863

% of contribution to revenue 35.8% - 6.7% 22.0% 11.2% - 14.0%

Cash
Net Capex (125) (178) (44) (99) (9) (455)
position

Change in operating WCR (264) (130) (87) (198) (59) (739)

Free operating cash flow (46) (407) 73 (45) (96) (521)

Other Employees 13,618 18,490 10,773 27,431 715 71,026


Appendices
► Financials p5










Numerous countries have
nuclear power plant projects
CANADA UK NETHERLANDS
Target: new reactors ► Target*: 10 GWe by 2020 ► 1 new reactor by 2018**
by 2018 ► EPR selected by EDF & E.ON FINLAND
► Olkiluoto 3 (EPR) under construction Up
to 3 new reactors to be built by 2020

FRANCE CZECH REPUBLIC CHINA
Flamanville 3 (EPR) ► 1 bid for 2 reactors 18 reactors under construction
under construction
o/w 2 EPR
Penly: 2nd EPR by 2017 JORDAN Target*: 70 GWe by 2020
Possible 3rd EPR ► Target 2 plants (opportunity for EPR
and Gen 2 reactors)

US
EPR selected by 6 utilities ITALY
(8 units) Target*: 8 to 10 new large
reactors by 2030 EMIRATES INDIA
EDF-Enel JV to build ►Preparation of an EPR 6 reactors under construction
at least 4 EPR project for several reactors Target*: 50 GWe by 2050
# of reactors MoU with NPCIL for up to 6 EPR
under construction
in the world
44 45
34
28 30
SOUTH-AFRICA
►Nuclear program on hold
2005 2006 2007 2008 2009
30 countries operating 43 countries considering starting 25 countries having
nuclear power plants a civil nuclear program expressed interest
(*): Nuclear generation capacity announced by countries / (**) :Delta announcement (June 2009). No technology specified


The nuclear market place : 436 nuclear reactors
in 2009 and more to come from the East
67
126
130 10

2 CIS & Eastern Europe
2
North America Western Europe
109

28

Southern & Eastern Asia
2 0

4 Africa & Middle East
1

South America

Source: WNA (January 2009)
In service Under construction


Installed capacity in main countries
Gross capacity Gross generation Gross capacity Gross generation
(GWe) (TWh) (GWe) (TWh)

EUROPE 2008 2007 2008 2007 AMERICAS 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
Other 17.7 17.4 135.4 125.9
ASIA 2008 2007 2008 2007
TOTAL 180.8 179.8 1,209.9 1,208.6
Japan 49.6 49.9 251.7 278.7
* Excluding Phoenix, considered a research reactor. China 9.0 9.1 42.6 62.9
** Data incomplete for Britain (only Jan-Sep 2008 total available for British India 4.1 4.1 15.5 17.8
Energy Portion) South Korea 18.4 18.4 151.0 142.9
Source: Nucleonics Week, restated by AREVA
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.


Appendices
► Financials p5










A long standing effort and global
exploration portfolio is key…
Major deposits discovered by / with AREVA

1957 1960 1965 1968 1976 1981 1985 1997 2003 2008
Gabon Bakouma Arlit Cominak Imouraren Cigar Lake McArthur Shea creek Dulaan Tamgak
Cluff Lake Uul Deep
Exploration budget
60 (M€) 56
AREVA exploration portfolio
50 42
40
30 27
EUROPE
20 15 Since 1947
Canada
10 Russia
0
Quebec Kazakhstan Mongolia
2005 2006 2007 2008 ASIA
Ouzbekistan Since 1995
Exploration Staff Jordanie
(# FTE) AMERICA
400 360 Since 1964 SenegalNiger
CAR
300 Gabon OCEANIA
220
200 AFRICA Since 1969
130 Since 1950
100 80 Namibie
Australia

0
2005 2006 2007 2008


… to reach a level of resources
ensuring production sustainability and
offering clients long term visibility
AREVA resources

Canada France Our Resources
►11,590 MTU Kazakhstan and Reserves
►169,095 MTU
►46,927 MTU
level allow
Niger production
USA ►228,282 MTU Mongolia sustainability for
more than 20
►12,563 MTU ►6,922 MTU
CAR years given our
►8,709 MTU production
targets
Namibia
►45,443 MTU
Australia This long term
South Africa visibility is a key
►7,585 MTU
►5,722 MTU commercial
advantage as
AREVA resources (1) 1/1/2009 (MTU) clients tend to
Proven + probable reserves (2) 237,533 anticipate their
Measured + indicated resources 91,210 fuel supply
Inf 156,274
Other measured + indicated resources 51,896
Other Inf 5,923
TOTAL 542,836
Note: (1) Accessible AREVA share, (2) mine and plant yields included


AREVA handles various mining projects
at different development stages…
PROSPECTION SHOWING PREFEASIBILITY FEASIBILITY

Mc Clean
Mc Arthur
Somaïr
Cominak
French Mines
Muyunkum
Tortkuduk Comuf (Gabon)
Cluff Lake (Canada)
Heap leaching Somaïr
Trekkopje
Imouraren
Cigar Lake
Mongolia Bakouma
Australia Midwest
Jordan Ryst Kuil
Canada RESERVES
Kiggavik
Kazakhstan Shea Creek
Millenium New productions
Niger Dawn Lake between 2009
Namibia… RESOURCES and 2013

~ 15 years ~ 5 years

GRASS ROOT DETAILED RECONNAISSANCE DELINEATION
DEVELOPMENT PRODUCTION REMEDIATION
EXPLORATION EXPLORATION DRILLING DRILLING

Exploration Licence Mining Lease Process


… with a project launch sequence
optimizing capital spending thanks
to our diverse portfolio
Estimated possible production start up (*)
2017-20
2013-14
2009-2012 Midwest, Kiggavik,
Imouraren : +5,000 tU Shea Creek
Katco : +2,500 tU
(successful ramp-up) Cigar Lake : +2,600 tU
2015-16
Somaïr: +1,200 tU Bakouma : +2,000 tU
Trekkopje : 3,000 tU Ryst Kuil

Sainshand
* Production figures:
100% except Midwest & Cigar AREVA share

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

More than 10 major production projects are on track

4 of them will come progressively online by 2012 to reach our
objective of doubling production
The diversity of our projects portfolio allows us to optimize capital
allocation and adapt to market conditions


That impacted directly the spot
price from 1971 until now
Mining output below demand End of inventories
Tension on mining Mining output slow down
production Increase of secondary supplies: Nuclear revival
Inventory draw out
Inventory build up inventory, military material, recycling Speculation

120

110
100

90
Spot Price Evolution -Ux Yearly Average
80
70

60

50

40

30 Faillite
du trader
20 NUEXCO
10

0
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
USD/lb

1 2 3 4 5

Oil Three Mile Island (US) Material from ex- Stabilisition Tension
shock incident: nuclear power USSR on the market phase phase
Source: Indicateur Trade Tech, Nuexco Exchange Value


Since June 2007 peak at 136 $/lb,
spot price decreased to 40 $/lb,
but has started recovering above 50 $/lb
Ux price, spot and long term, 2007-2009
160

140
- 62%
120

100

80

60

40
Ux spot
20 Ux LT

0
7

7

7

7

7

7

7

7

7

7

7

7

8

8

8

8

8

8

8

8

8

8

8

8

9

9

9

9

9

9

9
/0

/0

/0

/0

/0

/0

/0

/0

/0

/0

/0

/0

/0

/0

/0

/0

/0

/0

/0

/0

/0

/0

/0

/0

/0

/0

/0

/0

/0

/0

/0
01

02

03

04

05

06

07

08

09

10

11

12

01

02

03

04

05

06

07

08

09

10

11

12

01

02

03

04

05

06

07
► Spot price was depressed due to:
Large amounts of U being sold by Nukem and funds
Market recovery limited by financial stress resulting in utilities inventory management
► Current spot increase is supported by supply constraints:
Closure of mines (Denison US mines, Dominion)
Projects delayed / postponed (Midwest, Cigar Lake, Olympic Dam)
Spot price low of 40$/lb was below the marginal mine cost
► The spot market is volatile and not necessarily representative:
Volumes traded < 15% of the market, calculated average is not weighted and is based on volunteered information
Long term price much more stable, really represents the bulk of volumes as long term contracts tend to develop


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
Assured geological
$/kgU Resources Resources Resources evidence
Resources 2
1 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"


Appendices
► Financials p5










Two main enrichment processes;
Centrifugation is the new state-of-the-art
Gaseous Diffusion Gaseous Centrifugation

►Using gaseous diffusion technology, Georges ►Centrifuge technology is now considered
Besse has been offering the best in terms of by all players as the most efficient
safety, security and flexibility for 30 years. enrichment technology

►No disruption of supply since production ►Used in Georges Besse II and EREF, the
launch in 1979 TC12 centrifuge has been a proven
technology since 1992
►High flexibility with regard to levels of
enrichment ►This design of centrifuge offers the best
levels of cost efficiency, energy savings,
►The current plant will serve as a bridge until technical reliability and environmental
new centrifuge plants are online impact

►Modular conception that allows extension


AREVA supplies fuel assemblies and
associated services and products
A fuel assembly is a bundle of zirconium
rods containing the enriched uranium Overview of AREVA Fuel activities

►UO2 assemblies for various
reactor designs of the installed
Fuel base and for AREVA new builds
assemblies ►MOX/ERU assemblies

►Field work: handling, inspection
Fuel- and repair of fuel assemblies
related ►Engineering work: services
services linked to fuel optimization and
plant uprates

►Enriched uranium pellets are loaded into ►Zirconium products (tubes, flat
zirconium rods products, etc)
Secondary
►Tubes are bundled together in an ►Other products (components,
products uranium powder, etc)
assembly with grids


AREVA covers more than 40% of
global needs for BWR and PWR fuel
Europe USA Asia
2,127 T/y 2,257 T/y 1,483 T/y

18%
22% 12%
4%

PWR AREVA
78% 84%
82%
Westinghouse/
Enusa
1,800 T/y 1,434 T/y 874 T/y

GNF Enusa

11%
29% Others
27% 17%
41%
61% 10%
32%
BWR 72%

327 T/y 823 T/y 609 T/y

Source : Nuclear Assurance Corporation (Fuel Trac édition 10/2008); Average value over 2008 +/- 1 year


135 reactors worldwide
are fuelled by AREVA
NL
GB (1P/1) SWEDEN
(1P/1) (3P/3, 4B/7)
AREVA
BELGIUM FINLAND
(5P/7) (0B/2) provides fuel
for 92% of its
FRANCE GERMANY reactor
(~53P/58) (11P/11, ~4B/6)
installed base
SPAIN JAPAN
(2P/21, 2B/32) and for 21% of
(1P/6,1B/2) its competitors’
installed base
USA
(18P/69, 11B/35) SWITZERLAND CHINA
(3P/3, 1B/2) (6P/7) *
TAIWAN
(0P/2, 4B/4)

BRAZIL
(2P/2) *

SOUTH AFRICA
(2P/2) In addition to map: Mexico
(2B), Slovenia (1P), South
Source: IAEA, WNA as of October 2007 Korea (16P), India (2B) and
Note: *Local Fuel makers using AREVA NP Technology Pakistan (1P)


Appendices
► Financials p5










The new build business focuses on the
“Nuclear island”: 50~60% of the total
EPR price
Conventional island*
NSSS+BNI: 50~60% 15~20%
AREVA Ex.: Alstom, Siemens,..

Balance of plant 5~10%
Various suppliers

Civil works** 15~25%
Ex.: Bouygues,..

Note: Actual price of an EPR reactor and price proportions varies according to customer, country and project specificities
* Steam turbine, power generator, cooling systems, grid interface
** Civil works costs includes nuclear island, conventional island and balance of plant civil works costs


Main components of PWR coolant
system

5
1 Reactor vessel

2 Control rod drive mechanisms

3
3 Steam generator

2
4 Reactor coolant pump

4 5 Pressurizer

1


PWR steam generator
Design Commissioning FUNCTIONS

to transfer heat and ensure leak-tightness
between the primary (P) and secondary (S)
circuits

DUTY

mechanical effects of the circulating P
and S flows
chemical effects of the P and S fluids
nominal and transient temperatures
and pressures on P and S sides

MATERIALS

nickel-based alloy (tubes),
low internal alloy carbon steel (structures)
with a stainless steel layer the water
chamber (P side)

DIMENSIONS & WEIGHT:

height: 20 to 22 meters
Heat transfer surface: diameter: 3.5 to 5 meters
4,700 to 7,000 square meters weight (empty): 300 to 420 metric tons


50% of WW nuclear fleet is over 25 years old
129 reactors out of 439 are over 30 years old
Pyramid of ages – 439 nuclear plants – WW nuclear fleet (Data as of January 2008)
35 3233

30
24 23
25
Number of Reactors

22 21 22
20
20 18
16 15
14 1414
15 12
1011 11 10
9
10 7 7
5 6 6 6 5 6 5
5 3 2 4 2 3 4 4 3 4 4
1 1
0
1 6 11 16 21 26 31 36 41
Age (in years)

A need for re-investments in the existing fleet
Source: IEAE International Status & Prospects of Nuclear Power (February 2009) – Data as of January 2008


Competitive overview

Japan
► Reactor & Services
market mostly evenly
shared among three
United States
strong domestic players:
► NPP Installed base*: Toshiba, Hitachi-GE &
MHI
Westinghouse: ~2/3 and GE: ~1/3
► AREVA forged several
► Services: AREVA, growing
Europe partnerships (ATMEA,
marketshare now at ~25-30% MNF…) with MHI
►NPP Installed base*:
► Projects*: AREVA, ~1/3 of new
projects AREVA: 60%+, W and AEP: 10%+ each
Strong player with competitive offer: ► Services: AREVA is the leader with more
taking market shares away from than 33% marketshare,
historic domestic incumbents W and AEP both have 10-20%
► Projects*: While most projects have not
selected a technology yet, AREVA’s
prospective marketshare is already at 40%+

* NPP market shares based on power output
Robust position on a steadily growing market


Appendices
► Financials p5










Overview of recycling process
Nuclear
reactor

Recycled fuel
MOX
Reprocessed
uranium fuel

Used Fuel

Long-term Vitrified Waste
storage and Compacted Waste
disposal


Recycling offers key 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


Recycling strengthens non-proliferation
► Recycling restricted to a few regional centers under strict
international safeguards
Offering recycling services to a wide range of customers
Avoiding the accumulation of used fuel in multiple storage sites worldwide
Returning to customers final waste not subject to AIEA safeguards

► Plutonium recycled in MOX fuel
Consumes roughly one third of the plutonium
Significantly degrades the isotopic composition of the remaining plutonium and thus the
potential attractiveness for non-peaceful usage

► Recycling facilities such as La Hague and Melox have a perfect
track record with respect to fissile materials safeguards

► Recycling contributes to international non-proliferation initiatives
Weapon-grade plutonium disposition (MFFF project)
Securing « gap material » (DOE)


Recycled fuels performance
in reactors

► MOX & Reprocessed Uranium fuels can accommodate all
Light Water Reactors (80% of worldwide nuclear capacity)

► For utilities, recycled fuels have outstanding performance
Excellent reliability track record
Equal energy performance compared to natural uranium
MOX in-core behavior similar to Uranium fuel under normal
and accidental conditions

► EPR designed to accommodate up to 100% of its fuel
as MOX


AREVA: N° worldwide in treatment
1
of nuclear fuel
Treatment capacity for light Cumulative production,
water reactors fuel (tons/year) as of dec. 2008 (tons)

1 800 25 000 ~24,500
1,700
1 600
1 400 20 000

1 200
15 000
1 000 900
800
800
10 000
600
Max. 400
400 5 000 4,000 4,200
200
400
0 0
AREVA Sellafield Ltd. Rosatom JNFL / AREVA Sellafield Ltd. Rosatom JNFL
La Hague Rokkasho
Mura

As of today, AREVA treated ~75% of the fuel worldwide,
i.e 24 500 tons out of 33 200 tons
Source: AREVA, World Nuclear Association


AREVA: N° worldwide in MOX fuel
1
fabrication

MOX fuel production capacity Cumulative production, as of dec. 2008
(tons of MOX / year) (tons of MOX)

200 195 1.400 1,300

1.200
150 130 1.000
120
800
100
e 600
as
ph
n 400
50 s ig
De
200
» 10
0 0
AREVA Melox SMP J-MOX AREVA Melox SMP J-MOX


AREVA logistics activities
Casks supply

► Design & licensing of dry storage and transport casks
► Manufacturing of casks

Transport and fleet management

► Road transport of radioactive materials
► Operations of railway and maritime facilities
► Organization of transports incl. real-time monitoring
► Cask and safety vehicle maintenance on site
► Maintenance of safety vehicles
► Management of site supply chain
► Risk assessment and crisis management


Appendices
► Financials p5










Throughout the world, governments are
supporting the development of renewable
France energies
Targets by 2020:
»> 20% of renewable energies in the energy
mix by 2020

Incentives:
»Off shore: stimulation to favor national
champions
»Biomass: feed-in tariffs (between 49€/MWh
and 113€/MWh)

Targets by 2020: Targets by 2020: Targets by 2020:
»14-15% reduction of GHG below 2005 »E.U. targets: renewables = 15% of »Renewable energy consumption =10 %
levels by 2020 (proposal in renewable in energy consumption mix of the total energy cons°by 2010 and
Copenhagen) (i.e. 40% of electricity production) 15% by 2020 (30GW of wind power &
24GW of Biomass)
Incentives: Incentives:
»Over $60 billion in clean energy »Off Shore: stimulation policies (e.g. UK : Incentives:
investments (American Recovery and
Reinvestment Act) : loan guarantees,
in 2008 site pre- selection + subsidiaries »Central government financial authority’s
for investment + tax exemption) renewable energy fund to support
tax incentives and public investment) »Biomass: attractive basic purchasing renewable energy development
USA rate (e.g. up to 267€/MWh in Germany) »Biomass: (e.g. subsidy of 0.25 yuan (US
$0.03) per kilowatt-hour for biomass)
Europe (excl. France)
China


Renewable Energies
Business Segments Overview

WIND POWER Off-shore wind turbine designer and manufacturer
Vertically integrated in blades
PRODUCTS

Specialized engineering company (EPC) for turnkey delivery
of biomass fired power plants
BIOENERGIES
Ownership of range of critical technologies (combustion,
gasification, etc.)

Energy storage solutions
ENERGY CARRIER
AND STORAGE Stationary back-up solutions (fuel cells)
Equipment for production of hydrogen (electrolyzers)

Renewable BU is looking for opportunities to leverage
its EPC know-how into solar thermal


Geographical footprint aligned
with market opportunities
Germany

USA France ►Wind off-shore manufacturing

►Bioenergy JV ADAGE ►Headquarter ►Windpower Research and
development
►Bioenergy EPC ►Research and development
►Blade set manufacturing
►Hydrogen R&D and
Manufacturing (fuel cells) ►Bioenergy EPC

China
►Business
development team

India
►Bioenergy EPC

Brasil
►Bioenergy EPC


Continuous excellence in the Wind
Power business segment

6 M5000 turbines installed in North Sea (Alpha Ventus project)
Recent
development Global Tech project - binding MoU signed for 80 WTGs (March 2009)

Borkum West II project - binding MoU signed for 40 WTGs (September 2009)

► Multibrid moving from being in upstart stage to being a world-class operating
entity
Generic Certification of WT
Securing & optimizing the supply chain
Design to cost
Prepare for plant duplication
On-going
► Enter New Markets
development
Expand off-shore presence in the UK, China and North America
► Strategic Differentiators
Make the industry profitable through better mitigation of the overall risk profile: tighter integration
with installation and management companies
Leverage the “design for off-shore” advantages to deliver next generation high capacity turbines
Develop & deliver ‘Floating Turbines’


AREVA: a unique offshore turbine
Multibrid turbines M5000 The most powerful offshore turbine on the market (5 MW)
A leading edge position on a market favourable to high
power turbines

3.6 MW
5 MW

A wind turbine designed specifically for harsh sea conditions

A light-weight structure, providing customer with
A facilitated installation and maintenance
The best weight / power ratio available on the market

Offshore wind activities covering
Design, manufacturing, assembly, and commissioning of the
off-shore turbines
Maintenance services

Source: New Energy Finance 11/04/2008, Companies


Bioenergies: a presence covering the
wide range of biomass types and
geographies

China: 429M tons
USA: 340M tons Europe: 381M tons
» 30 GWe
wood
potential

India: 153M tons
» 17 GWe
biomass
potential

ASEAN: 351M tons
BRAZIL: 387M tons » Thailand: 3,3 GWe
» 11 GWe (retrofit potential) » Philippines: 2,3 GWe
» 15 GWe (additional straw)
» 2 GWe Biogaz
Rice Palm
Cereals Wood
Sugarcane


Bionergies: Main references around
the world
Germany

2 biogas
+ 5 mine gas
Thailand
USA power plants for
57 MWe 2
12 biomass Biomass
power plants for
power plants for
600 MWe 20 MWe
in project

Brazil

83 biomass India
power plants for
3 biomass
2,296 MWe
+ 2 waste heat
power plants for

Chile
47 MWe

1 biomass
power plants for 98 Power plants 2,430 MWe
10 MWe under operation or construction total installed capacity


Appendices
► Financials p5










China: strong growth in power
consumption despite slow down in 2008

►Electricity consumption 1995-2020
17.0% 6,000

14.9%
14.4% 14.4%

12.9% 3,922
11.6% 3,632
3,427
3,246
8.6%
2,825
2,470
8.6% 2,187
1,911 8.0%
1,633
1,347 1,463 5.6% 6.0%
1,002

1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009E 2010E 2020E

Annual consumption (in TWh) Annual growth

Source: China Electricity Council (CEC) , Market Study, Financial Crisis Impact Study


China: the energy challenges

►Secure economic growth

►Minimize energy dependency 70%
of coal reserves

Better
►Ensure sustainable development 80% of hydraulic
developed
Regions
resources

Ensure social stability by reducing disparities:
electricity for all at an affordable price

Take action on environmental issues,
both for existing pollution and global warming

Expand the interconnection market (HVDC)
for electricity transmission
to densely populated, developed areas
Nuclear power and advanced T&D technologies
have a major role to play


China: overview of the energy sector

►Per capita consumption is still low and very disparate
►Insufficient installed capacity
792 GW installed as of the end of 2008, with a target of 1500 GW by 20201
►A promising market
China’s capital spending on new generating capacity and in the
transmission and distribution sector is expected to rise to 50 billion
dollars per year from 2006 to 2010.
China’s electricity transmission and distribution market represents 25%
of the world market
►Renewable energies law is effective since 2006 to encourage
renewable energy resources
Renewable energy is expected to reach 10-12% of total installed power
capacity by 2020
China is to become the first market in Renewable Energy from 2010
Source: China Electricity Council and World Nuclear Association


China: AREVA’s positions

► More than 2,900 employees, of which 2,800 employees for T&D
► More than 735 million euros sales in 2008
Reactors
& Services T&D

Front-End

AREVA’s
Sales split


AREVA, Business & strategy overview - Appendix 1 - November 2009

AREVA, Business & strategy overview - Appendix 1 - November 2009

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AREVA, Business & strategy overview - Appendix 1 - November 2009