AREVA Overview - Business & Strategy Insights

AREVA
Business & Strategy overview
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

Contents

►Introduction to AREVA

►Performances and objectives by division

►Delivering profitable growth

►AREVA latest financial results

►Appendices


AREVA is a global leader in solutions for
CO2-free power generation
75,400 people
100 countries REACTORS

NUCLEAR AND RENEWABLE ENERGIES
FUEL FABRICATION
USED FUEL
RECYCLING
ENRICHMENT
RENEWABLE
SERVICES
ENERGIES

CHEMISTRY

TRANSMISSION & DISTRIBUTION
MINING

TRANSMISSION &
DISTRIBUTION OTHER SOURCES OF
€13,160M Sales (2008) ELECTRIC POWER
Divestment of T&D activities in progress
€1,181M EBITDA (2008)

5

AREVA is at the forefront
of technology in CO2-free generation

Front End Plants

Ultracentrifugation EPR
AREVA has the most efficient the first Generation III+ reactor under
ultracentrifugation technology 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 Renewable Energy

Unchallenged leadership Only true "designed Ownership of range of
for offshore" wind critical Biomass
turbine technologies

© AREVA © AREVA


AREVA is the only fully integrated player
on the nuclear power value chain

JNFL

Mining / Natural
uranium

Conversion /
Front End

chemistry

Enrichment

Natural
uranium fuel

Reactors and Services

Treatment
Back End

Recycling

Presence Recent strategic move / Potential move
Source: AREVA estimates development

AREVA is now developing a portfolio of
Renewable energy solutions
Wind power Bioenergies Energy Carrier &
Storage
Off-shore wind turbine Specialized EPC for Developer of marketable
designer and biomass fired solutions to foster
manufacturer power plants renewable penetration

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

Off-shore wind leading Ownership of range of Fuel cell design and prod.
technology with strong critical technologies Development of next
position in Europe Innovative partnerships generation storage
Vertically integrated in with utilities solutions and H2 prod.
blades

2007: Multibrid acquisition 2004: T&D biomass integration 2001: Helion creation
2009: PN Rotor acquisition 2008: Koblitz acquisition
2008: ADAGE JV creation


AREVA integrated model offers a key
competitive advantage
CONVERSION REACTORS RENEWABLE
URANIUM ENRICHMENT FUEL NEW BUIDS AND SERVICES BACK-END ENERGIES

EXAMPLES

NPCIL

Discussions or negotiations in progress JV or existing contract


The group benefits from a strong and
successful culture of partnerships*

Since 2004, long-lasting partnerships to develop
mines in Canada
Consolidation
in the fuel cycle
Equity stakes in Georges Besse II (GBII) new
enrichment plant

Strengthening Heavy component manufacturing site in the US
of industrial
and engineering
capacities JV in engineering in China

1250+ MWe boiling water reactor
Reactor
development
1100+ MWe pressurized water reactor

Partnership in biomass in India
Renewables
Development of the biomass market in the United
States

AREVA Overview – November 2009 *Non exhaustive list p.10
10

AREVA captures growth through its low carbon
strategy aligned with world energy challenges

World energy sector challenges Global energy mix
Billions of metric tons of oil equivalent / year
► Energy demand will increase 50 %
by 2030 18 17,0
Population will increase by 2 Energy efficiency
2,5
billion people 15 and storage

Human Development will 3,4 Renewables
increase energy intensity 12 11,7
+5%/y
1,5
► Peak oil and gas is a reality and 1,4 Nuclear
0,7
substitution is necessity 9
2,4 3,0 Natural gas
Total Oil and Gas production will
start to decrease in 15 years 6
4,0
4,3 Oil
Electricity demand will grow by a
factor of 2 by 2030 3
3,1 2,4 Coal
► Carbon emissions must be cut by
half to stabilize climate change 0
2006 2030

Source: World Energy Outlook 2008 stabilization 450 ppm” scenario, AREVA


The nuclear revival is here
AREVA's market scenario for installed capacity (in GWe) Forecasts published
by international organizations
► AREVA Mining, Front End Services, Back End
748: IAEA - 2008 – High Estimate
731: WNA2 - 2007- High Estimate
► AREVA Reactors and Services 358 659
678: WEO1- 2008- 450 ppm Policy Scenario
533: WEO- 2008- 550 ppm Policy Scenario
► AREVA Back End 529: WNA - 2007 - Reference
498: DOE3 EIA4 - 2008 Reference Case

262 473: IAEA - 2008 – Low Estimate
373
433: WEO - 2008 – Reference Scenario
190

2008 Plant Life New 2030
closures extension builds

AREVA targets 1/3 of the accessible new build market and the leadership
in life extension and power uprates

1. World Energy Outlook 2. World Nuclear Association 3. US Department of Energy 4. Energy Information Administration


+8.5% annual growth expected for
Renewable energy market through 2030
Capacity installed for renewable energies
(GW)
1.000 Tide and Wave 13%
Geothermal
11%
Solar
Biomass
750 Increasing share of “new”
Wind offshore 9%
Wind onshore renewables (except hydro)
from 3% to 13% of total
XX% world electricity mix
500 electricity
generation 7% A market of ~160 bn$/year
capacity
of new capacity
250 Strong growth expected in
3% Off-shore wind (~10% p.a.),
Biomass (~6% p.a.)

0
2006 2015 2020 2025 2030
Annual new
capacity market 115 130 190
(in USD07 billion)

Source : WEO 2008, ETP, EIA (2008)


An investment program well under way to
capture market opportunities

AREVA annual CAPEX1 (€Bn) ► Selling our reactors
EPR reactor licensing in the UK, US
Assembly capacity for heavy components
2.600
2.358 Developing ATMEA (JV with MHI)
0,1
2,5 …
0,4
1.623 2,0
► Securing access to uranium
Average Developing mining portfolio
0,3
1.112 budget (Canada, Africa, Kazakhstan)…
1,3 per year
0,2 ► Adjusting our enrichment capacity
1,0
Migration to centrifuge enrichment
Meeting US demand: GBIII project
► Safety and renovation of our facilities
2007 2008 2009e 2010-
2012 Chemistry (Pierrelatte, Malvési…), La Hague…
► Accelerating Renewable development
T&D Nuclear & Renewable Energies Development of existing assets
(like Multibrid)
“Opportunistic” approach for external
growth on selected markets
1 Acquisition of property, plants and equipment and intangible assets


AREVA has a 50-year history of
successful nuclear project execution
AREVA was created in 2001 by the merger AREVA has never stopped building
of companies with a long nuclear history reactors since the 1960’s
Reactors built by AREVA or its predecessor
Westinghouse companies by commissioning date
120 1
102
1958: Framatome created to operate a 4
Westinghouse reactor license; the technology 3
12
will gradually be improved and become fully 80
owned by Framatome
57
40
5 21
0
Jan 2001 60’s 70’s 80’s 90’s 00’s on- Total
going

AREVA has never stopped building reactors

AREVA has built 91 of the 439 currently active
Sept. 2001 reactors

AREVA has demonstrated its ability to manage
massive construction programs in the 1980’s

AREVA has active units in France, Germany,
several other European countries, South Africa,
1. Including 7 shutdown and 4 under construction
China, Latin America


At least 11 utilities have already
selected the EPR reactor by AREVA

NPCIL

…and are making commitments for the entire fuel cycle
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)


AREVA secures financial resources
while preserving its credit profile

► Financing plan announced in June 2009 to secure resources
for AREVA’s long-term development plan, and strengthen the group’s
balance sheet
► Key aspects of the plan include:
Opening of AREVA’s capital up to 15% mainly through a capital increase
Testing the market for a sale of AREVA T&D
Sale of stakes in ERAMET and STMicroelectronics considered
(Shares to remain in the public sector)
Disposal of Total and GDF Suez shares
Continuation of sale of minority stakes in strategic assets for some industrial/
strategic partners

► Standard & Poor’s credit rating in July 2009:
Long-term rating: A
Short-term rating: A1
Outlook: Stable

The announced financing plan will allow AREVA to fulfill its ambitions
while maintaining its 'A' corporate credit rating


AREVA current ownership structure
Investment Certificate
Holders* (free float) 4%
Total Calyon Framépargne**
EDF ► French Atomic Energy Research Organization,
public body established in 1945
CDC 2%
CEA ► Active in three main fields : Energy, information and
4% 4% 1% health technologies, defense and national security
French State 1% 79%
► By law, CEA must retain the majority of AREVA’s
8% 0.4% capital
► €3.4bn annual spending (2007)

► French financial organization created in 1816, part
of the Government institutions under the control of
the Parliament
► Invests in long-term projects to serve France’s
CDC public interests and economic development;
4% supports public policies, companies and local
79% authorities
► AAA/Aaa with a consolidated balance sheet of
CEA* €221bn

Total French State: 92%

Note: Shareholding structure as as at 29/10/2009
* CEA owns all of the voting rights certificates
** Employees’ shareholding in AREVA


Contents





►Appendices


AREVA group structure

Back End Transmission
Front End Reactors & Services Nr 1 in used & Distribution
Nr 1 worldwide in the overall Front-End Nr 1 worldwide in the overall R&S nuclear fuel Nr 3 worldwide in
management overall T&D

Conversion, Reactors Renewable
Mines
Mines
Enrichment & Fuel & Services Energies

• Plants
• Mineral Exploration • Mines • Equipment • Wind Power • Recycling • Products
• Mining Operations • Chemistry • Nuclear Services • Bioenergies • Logistics • Services
• Ore Processing • Enrichment • Nuclear • Fuel Cells • Nuclear Site Value • Systems
Measurement Development
• Site Reclamation • Fuel • Automation
• Consulting &
• Engineering
Information
Systems • Clean-up
• AREVA TA


Front-End division
AREVA invests to maintain leadership in
Mines and Enrichment
Sales – 2008 split Nr 1 worldwide in the overall Front-End
► Mining: explores, extracts and processes uranium ore, from
Mining which nuclear fuel is made. The BU then reclaims mining
23% sites once production is finished
Fuel ► Chemistry: converts natural uranium (U3O8) into uranium
37% hexafluoride (UF6) required for enrichment
Chemistry ► Enrichment: Increasing the proportion of U235 found in
8% natural uranium from 0.7% to 3%-5% in order to manufacture
fuel for nuclear reactors
► Fuel: designs, manufactures and sells nuclear fuel
Enrichment assemblies for pressurized water reactors (PWR), boiling
32% water reactors (BWR) and research reactors

Key financials

In millions of euros 2007 2008 Change

ORDER BOOK 21,085 26,897 +27.6%

SALES REVENUES 3,140 3,363 +7.1%

OPERATING INCOME 496 453 -8.7%

% Sales 15.8% 13.5% -2.3 pts

OP. FCF BEFORE TAX (1,672) (609) +€1,063M


A uniquely diversified mining portfolio
Canada
Kazakhstan
►Development (Shea Creek, Kiggavik etc.)
►Exploration since 1964 ►Mining & global fuel agreement signed
Mongolia
►Cigar Lake production to start after 2012 ►Katco production ramp-up / license for
(+2,600 tU) 4,000 tU obtained ►Sainshand
►Exploration ►Exploration

Morocco Niger
►Agreement signed with Office Chérifien Somaïr & Cominak mines
des Phosphates
Imouraren mining license obtained
- Start up 2013-14 (+ 5,000 tU)
AREVA Resources Southern Africa
Democratic Republic of Congo
►Namibia - Trekkopje: mining permit obtained / 1st
production
►Mining partnership
expected in 2010
►+3,000 tU production expected Australia
►Central African Republic -Bakouma: government
►Exploration since 1969
agreement obtained
►+2,000 tU production expected ~12,000
►South Africa – Ryst Kuil
Production ~ 6,300
►Exploration
(metric tons of U)

2008 2012


Production ramp up and new mines
are already necessary to meet
Uranium demand…
Uranium supply and demand
- Kt U, WNA 2009 report -
By 2015, Uranium production to be
In 2008, 33% of current covered by new projects should
supply was met with represent 21% of the supply and result
secondary sources and in a mining output increase of 51%
inventory reduction
80.000
75.000
70.000
65.000
60.000
55.000
Demand
50.000
45.000
Production to be covered
by new projects
40.000
Inventory reduction
35.000
30.000 Other secondary supplies (tails
reenrichment, DOE sales)
25.000
20.000 Recycling (MOX, RepU, …)
15.000 Russian HEU
10.000 Production from existing mines
5.000
0

2008 2009 2010 2011 2012 2013 2014 2015


All producers have undergone significant increase
in their operating costs, and junior companies have
more suffered from the volatility of the spot price

Change in cost of sales Change in selling price
2008 vs 2006 in % 2008 vs 2007 en %
70 67% 29%
30 27%
60 55%
52% 20
50
10 5%
40
0
30
- 10
20
- 20 -16%
10 -19%
- 30
-23%
0 AREVA ERA Cameco Denison Paladin Uranium
AREVA ERA Cameco One
►Emerging producers have been strongly impacted
► All producers experienced cost increases due to: by spot price volatility due to a limited backlog
Inflation on direct costs (equipments, reagents, salaries highly exposed to market conditions
and royalties)
Tax increases ►AREVA's backlog ensures positive exposure
Existing mines getting more difficult to operate (ore depth, to market evolution thanks to a mix of fix / long
grade,…) term pricing
New mines requiring more investments (bigger size, lack ►AREVA’s selling price has progressed as low price
of infrastructure / utilities, material cost inflation) legacy contracts are being replaced with
new ones


AREVA is leading the way in
enrichment capacity renewal
Georges Besse II Eagle Rock Enrichment Facility

► Installation start-up by end 2009 ►Installation start-up by 2014
► Essential investment for global balance of ►A capacity of 3.2 MSWU (by 2018) approved
the enrichment market with modular by NRC and on-going discussion about
capacity to meet market requirements production extension up to about 6 million
At least 7.5 MSWU (by 2016) SWUs

► Based on the best existing available ►Proven ETC centrifuge technology, already
technology (ETC – TC12) licensed by the NRC

Georges Besse II: Eagle Rock Enrichment Facility:
90% of capacity already sold 50% of capacity already sold
until 2020 beyond 2020

The Nuclear Renaissance is tightening the
market, resulting in upward price pressure
Long term market trends Enrichment prices ($/UTS)

►Robust enrichment demand due
to new reactor constructions worldwide 200 High case
and improved performance (load 180
factors, higher burn up, potential
power uprates) 160

140 Base case
►Fifty percent of current capacity
to be replaced, increasing risk 120
and market volatility 100
►SWU prices will remain high due 80
to the uncertainty of the new
investments based on unproven
technology 0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

AREVA will benefit from huge sources of demand with its new
facilities becoming available in conjunction with market growth

Source: UxC 2009 Q1


Reactors & Services division
Still mostly recurring, but new build is there
Sales – 2008 split Nr 1 worldwide in the overall Reactors & Services
► Plants: design, construction and commissioning of nuclear
Nuclear Equipment
islands, and monitoring, replacement, upgrades and
services 9% renovation of installed base
26% AREVA TA ► Equipment: manufacture of key components for nuclear
12% power plants
CIS ► Nuclear services: reactor optimization services
5% ► Nuclear measurement: design and construction of systems
Reactors
Renewable and devices designed to measure radioactivity
38%
energies ► Consulting and Information Systems: IT services
Nuclear 5%
measures ► AREVA TA: design, production and maintenance of nuclear
5% reactors for research and for the propulsion of submarines
Key financials and aircraft carriers
► Renewable Energies: design and construction of systems
using either wind power, biomass or hydrogen energy

ORDER BOOK 7,640 7,850 +2.7%

SALES REVENUES 2,717 3,037 +11.8%

OPERATING INCOME* (179) (687) -€508M

% Sales (6.6%) (22.6%) -16.0 pts

OP. FCF BEFORE TAX (528) (591) -€63M

*Including the €749M OL3 Provision in 2008 and €292M in 2007


EPR is a proven reactor
with an outstanding safety level

Safety first and foremost Performance with certainty

Designed to achieve outstanding Project certainty: integrated supply
safety: the EPR design benefited chain, licensed in 2 countries and
from the scrutiny of both the already under construction in 3
German, French and Finnish safety
authorities Evolutionary design based
on the best of French (N4) and
Best-in-class airplane crash German (Konvoi) technologies
protection
High output: 1600 MWe+
Severe accident prevention:
quadruple redundancy, optimal High availability during 60-years
combination of active and passive service life: 92%+
safety systems Enhanced fuel utilization
Severe accident mitigation: advanced
core catcher & radionucleides
filtration


EPR projects all over the world

Amarillo Power

Emirates
NPCIL
Under construction
Ongoing projects or
discussions

Some EPR projects under discussion do not appear on this slide


Benefits from the most advanced Gen 3+
project… despite OL3 specific situation
Olkiluoto 3 project status: … but a slower than planned progress
Stage of completion unmatched in the due to client’s conduct
world for Generation III+ plant
► More than 90% of orders and procurement ► TVO’s inappropriate behavior with regards
placed to contract management generates uncertainties on
the final cost of the project and the commissioning
► Engineering more than 80% complete
► AREVA has sent proposals to TVO in order to get back
► Civil works on main buildings 73% complete to the methods of execution that are in line with usual
practices for major projects
► Dome placed on September 6, 2009
► AREVA will only commence the final phases
► Components manufactured of the construction when TVO has agreed upon the
proposals that have been made or issued contract
amendments that provide for the requested
modifications
► AREVA has recorded an additional provision
of 550 million euro, bringing the estimated
result at completion to (2.3) billion euro*
► Claims amounting to 1 billion euro have already been
sent to TVO by the AREVA-SIEMENS consortium
► Additional claims are being prepared, and in
accordance with the applicable accounting principles,
AREVA has not accounted for these positive elements.
© AREVA
* this amount does not include TVO’s claim because the AREVA-SIEMENS consortium deems that the allegations presented
in this claim are without foundation and without value with respect to the contract and to Finnish law


AREVA EPR fleet is being deployed
Flamanville (France): Taishan (China):
supply of Nuclear Steam supply of 2 nuclear islands
Supply System ► 70% of orders placed by AREVA and 30%
by our partner within the consortium
► On the AREVA perimeter
► Engineering close to 30% complete
70% of orders placed
► As planned start of engineering
Engineering 65% complete in China with our partner CGNPC
► Civil work progress (not AREVA scope) ► Significant civil work progress
by the customer
► Preparation of the “first concrete” milestone

© EDF © CGNPC / SHEN ZUOBIN


Back-End division
An unchallenged leadership
Sales – 2008 split Nr 1 in used nuclear fuel management
► Recycling: a full service of fuel recycling, including Mixed
Logistics Engeeniring Oxide fuel and Reprocessed Uranium fuel production
14% 6%
Cleanup ► Logistics: design and supply of casks for the transportation
3% and storage of radioactive materials; also safe and secure
transportation and logistics services
Nuclear Site Value
Development ► Nuclear site value development: performance-based project
Recycling (Decommissioning) management for Dismantling and Decommissioning programs;
63% 14% 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
Key financials and construction of installations for global nuclear operators


ORDER BOOK 6,202 7,784 +2.7%

SALES REVENUES 1,738 1,692 +11.8%

OPERATING INCOME 203 261 +28.6%

% Sales 11.7% 15.4% +3.7 pts

OP. FCF BEFORE TAX 172 422 +€250M


A strong and unique industrial base
Reprocessed Uranium
Recycling Plant dismantling
Fuel Fabrication

►La Hague ►La Hague ►Romans
Fuel treatment First generation RepU fuel fabrication
plant dismantling
►MELOX ►Tricastin
MOX fuel fabrication ►Marcoule RepU Enrichment
UP1 Treatment and Conversion
plant dismantling
►Cadarache (performed by Front End with recycled
MOX plant dismantling uranium supplied by Back End)

La Hague plant Melox plant

Production capacity: 1 700 tons of Production capacity: 195 tons of
used fuel MOX fuel


Worldwide recognition of AREVA’s
leadership in Back End
Japan
USA
►A total of 3 000t of Japanese nuclear fuel
►MOX Fuel Fabrication Facility under has been recycled at La Hague to date
construction for DOE ($5Bn)
►MOX fuel fabrication and transportation to
►60% of dry storage market for US utilities Japan started in 2008
►Significant presence on major DOE sites ►Successful technology provider for the
Rokkashomura recycling plant (based on
La Hague model)

Europe
Asia Pacific
►EDF: framework agreement for comprehensive 14%
recycling services until 2040 Americas
7%
►Other utilities: over 6,000t of fuel recycled (EON,
RWE, Suez, SOGIN, etc.) and 300 casks sold
21% 58% France
►Sellafield site Management & Operations
Europe –
►Management of World’s largest civilian D&D program Excl. France

% of total 2008 sales


T&D division
Long term outlooks positive in
spite of crisis
Sales – 2008 split Nr 3 in the overall Transmission & Distribution

Systems
► Designs and manufactures a complete range of high and
medium voltage equipment, systems and services on a global
31%
basis:
To transmit and distribute electricity from the
power plant to the end-user
Automation
To optimize power grids
Products 10%
53%
► Installs complete systems and supplies services for every
Services
market segment: transmission, distribution and power-
6%
intensive industries

Key financials


ORDER BOOK 4,906 5,715 +16.5%

SALES REVENUES 4,327 5,065 +17.0%

OPERATING INCOME 397 560 +41.1%

% Sales 9.2% 11.1% +1.9 pts

OP. FCF BEFORE TAX 233 (20) -€253M


T&D attractive perspectives
► AREVA T&D commands leading positions on key products (like disconnectors, Gas Insulated
Switchgears, or Instrument Transformers) and key markets (like in India)

► Despite challenging short-term market conditions, long-term perspectives remain highly attractive
Products replacement & networks upgrade in Europe and in the USA
Massive investment needs in Asia and India in both transmission & distribution products and
systems
Rising energy efficiency/ savings requirements worldwide

► The deadline for binding offers was November 9th

► AREVA received today 3 offers from:
- Alstom/Schneider
- General Electric
- Toshiba/INCJ
AREVA is now assessing these offers


Contents





►Appendices


AREVA benefits from 50-year history
of successful nuclear project execution and a
resilient business model

Installed base business model
ensuring strong cash-flow generation
Installed base revenue vs. new builds ► AREVA has never stopped
(millions of €) building reactors
14 000
New build
► 80% of the nuclear business
12 000 Installed based business is recurrent
10 000
► Strong visibility (backlog)
8 000 and recurring cashflow
6 000
► Capex supported by the sale
4 000
80% of the nuclear business
of the new facilities’ future
production (example: 90%
2 000
of GBII production through
0
2020 is already in backlog)
2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: AREVA strategic plan


Sustained growth
Backlog (€Bn)* Revenue (€MM)*

X 2.5 48.2 +34% 13.2
11.9
39.8 10.9
9.8 10.1

25.6

19.6 20.6

2004 2005 2006 2007 2008 2004 2005 2006 2007 2008

* excluding FCI - Connector technology division


AREVA’s operating income before OL3
provisions has doubled in 4 years
Operating income before OL3 provisions (€M)

+82%
1,166
1,011 1,043
OL3 provisions

Operating income
292
640 749
607
604
56

751
640
551
407 417

2004 2005 2006 2007 2008
Margin before OL3
5.8% 6.0% 9.3% 8.8% 8.9%
provisions (% of sales)


AREVA is taking steps to improve
its cash flow generation

Cost optimization program Working capital optimization

► Purchasing performance ► A challenging transitory situation
~ €500M
Enrichment: buildup in SWU inventory
Development of supplier selection panels to prepare the transition GBI - GBII
Globalization of negotiations AREVA T&D: temporary impact of
Scope: recurring purchases, gradual shift of business to the East
capital spending, project procurement

► Control of overheads ► Favorable structural WCR in nuclear
~ €100M business
Freeze on hiring for support functions EPR projects structured to have
Reduction of travel expenses positive cash curves
and subcontractor costs Negative normative WCR in Front-End
Greater selectivity in marketing expenses & Back-End

€600M €300M
in 2009 in 2009


Strong cashflow generation to finance
the group’s investment effort…
Operating cash flow vs. net investment evolution 2004-2008 (€M)

2,889 4,757 4,818

1,594

1,454
1,252 1,178 1,248
890 904
1,295 533
426 395

2004 2005 2006 2007 2008 Total 2004-2008
excl. UraMin
Operating cash flow before investments

Net Investments

UraMin acquisition ($2,5Bn)


AREVA’s credit metrics are set to improve in
the near future
Net Debt structure at June 30, 2009

Net debt (M€) 31.12.08 30.06.09 Borrowings by maturity 30.06.2009

Main Borrowings -3,451 -3,907
664
UraMin
Interest bearing advances -727 -743 acquisition
Short-term debt debt
Short term facilities, overdraft, rolling over
-413 -533
miscellaneous
1 950
Cash and cash equivalent, other 1 344 Syndicate 79
1,163 834 loan Canada
financial assets BEI
213 400 loan
Put option of minority
-2,068 -2,065 2009 2010 2011 2012 and later
shareholders
1
Net Debt -5,496 -6,414 Borrowings CP program Interest bearing advances

Net Debt €6,414M
Minimal net debt level
Net Debt/Capital ~ 49%
in 2010
At 30/06/2009

1. commercial paper program


Optimized liquidity offers flexibility
in the timing of the investment plan

► AREVA has a solid liquidity supported by cash, available backstop
commitments from banks, and bonds

Cash: €600 million at June 30, 2009

€3.0 billion bond issue maturing in 2016, 2019 and 2024

Back up line long term: €2.0 billion syndicated facility
maturing in 2014 with no financial covenant

Back up line short term: €1.4 billion bilateral committed
short term lines (364 days)

► Together with the capital increase and the assets disposal programs,
this strong liquidity offers comfort to execute AREVA’s investment plan
► The positive free cash flow generation should be reached by 2012


AREVA creates value
for its shareholders

AREVA net income 2004-2008 (€M)

743
649
589
451 451

2004 20051 2006 2007 2008
Margin
4.6% 4.5% 6.0% 6.2% 4.5%
(% of sales)

Pay-out 80.0% 33.3% 46.0% 32.3% 42.0%

AREVA has paid its shareholders more than €2.6Bn since 2001
From 2001 to 2008, the invested rate of return for the investment certificate
comes to 16.7%
1. excluding FCI - Pôle Connectique disposal


Contents





►Appendices


H1 09 vs. H1 08: different basis
of comparison for Nuclear operations

H1 08 H1 09

Exceptional export
Front End sales (Asia)

Reactors Very favorable Later start of unit
and Services seasonal effect outage campaigns

Strong concentration Unfavorable production
Back End of annual production in H1 distribution (H2 catch-up)

H1 2008: more than 80% of operating income from
nuclear operations* for 2008

* Income from nuclear operations excluding OL3


Key data as of June 30, 2009
In millions of euros H1 2008 H1 2009 ∆ 09/08

Backlog 38,123 48,876 + 28.2%

Revenue 6,168 6,522 + 5.7%

Operating income before OL3 860 566 - 34.2%
% of revenue 13.9% 8.7% - 5.2 pts

Additional provision for OL3 (321) (550)

Operating income 539 16 (523)
% of revenue 8.7% 0.2% - 8.5 pts

Net income attributable to equity holders of the
760 161 (599)
parent €21.45 €4.55 €(16.9)
Earnings per share

Free operating cash flow* (521) (1,115) (594)

12/31/08 6/30/09

Net debt (**) 5,499 6,414 + 16.6%
* EBITDA +/- change in Operating WCR – Capex net of disposals
** Siemens’ put option at its 2007 value, i.e. €2.049B


Backlog growth

Backlog(*)
Nuclear: + 27.4% to €41.8B
(€B) ► Contracts signed in first 9M 2009:
Several significant contracts with US, Japanese
and European utilities in the Front End
+ 22% Replacement of 12 steam generators for TVA (USA), KHNP
47.5 (South Korea) and EDF (France)
Multiyear umbrella agreement with EDF for services
38.8 5.7 18 reactor coolant pumps for EPCD in China
MOX fuel assemblies for Japan
6.0 Fuel contract in Spain with Central Nuclear de Trillo

T&D: - 5.6% to €5.7B
41.8
32.8 ► €3.9B in orders booked over first 9M 2009:
Supply of high voltage direct current transmission systems
in China (HVDC)
Supply of HVDC conversion substations in South Korea
Supply of 66 kV substations and transformers to Bahrain (EWA)
30/09/2008 30/09/2009
Modernization of the Indonesian grid – “10 GW Program”
T&D Nuclear Supply of 4 extra-high voltage stations to PGCIL in India

* The backlog value is based on firm orders and excludes unconfirmed options


5.7% revenue growth
(2.8% like-for-like)
In millions of euros

Exceptional sales of H1 2008 not repeated, + 330
but positive price effects (Front End) + 12.5% LFL1 6,522
Unfavorable production lag (Back End)
and seasonal effect (Services)
Good project performance in T&D division

+ 41 (87)
+ 68 - 1.9% LFL1 - 10.1% LFL1
+ 0.6% LFL1

6,168 R&S
Back End T&D
Front End
∆ H1 09 / H1 08: + €354M
+ €176M LFL1

H1 2008 H1 2009

1. Like-for-like: at constant consolidation scope, accounting method and exchange rate


Operating income
With more than 80% of FY 2008 operating
income from nuclear*, H1 2008 was atypical
Additional provision for OL3
Unfavorable seasonal effect in H1 2009
539 (R&S and Back End)
(53)
Agreement with USEC, ending the trade case
(350)
(Front End)
Preparing for the future: R&D, recruitment,
Front End
organizational strengthening for major projects
(EREF, mining projects, etc.)
Impact of global crisis on T&D division
and renewables

(25)
(67)
Corp.
R&S
Back End (29)
16
T&D
H1 2008 H1 2009
* Income from nuclear operations excluding OL3


Free operating cash flow before tax
459

(173)

(783) (497)
+ 333
(1,115)
(950)
Free
Capital gains / Change Operating
EBITDA Gross Capex Divestitures operating
losses in WCR cash flow
cash flow

► EBITDA: like operating income, EBITDA is penalized by an unfavorable seasonal effect
► WCR: constitution of SWU inventories tied to the transition from GBI to GBII
and use of customer advances in nuclear operations;
extension of payment terms and unfavorable payment schedules in T&D division
► Capex: program deployment in Mining, Enrichment and Equipment


Net debt

12/31/2008
31.12.2008 6/30/2009
30.06.2009

Equity at 6/30/09:
Rappel :
€6.693B
Fonds propres
au 30.06.09
6 693M

(1,115)
(313) + 465
(33) 81
(5,499)*
Free operating Cash from Dividends Disposals of Other items (6,414)*
cash flow end-of-cycle financial assets
before tax operations

* Siemens’ put included at its 2007 value, i.e. €2.049B


Front End division
In millions of euros 6/30/08 6/30/09 ∆ 09/08
Backlog 19,108 27,055 41.6%
Contribution to revenue 1,488 1,556 + 4.6%

Contribution to operating income 400 348 - 13.1%
% of revenue 26.8% 22.4% - 4.4 pts

Free operating cash flow before tax* (46) (179) (133)
* EBITDA +/- gain on disposals of assets and dilution +/- change in operating WCR – Capex net of disposals

► Several significant contracts with Japanese, South Korean, US and European utilities in H1 2009
► Revenue: exceptional sales of H1 2008 not repeated
► Operating income:
Impact of agreement with USEC ending the trade case
Costs related to constitution of transition inventory
Overhead expenses generated by major construction projects (EREF, mining projects)
► Impact of equity share taken by Kansai/Sojitz and KHNP in GBII same as in H1 08 (GDF-Suez)
► Free operating cash flow: increase in inventory (SWUs) and deployment of Capex programs
in Mining and Enrichment


Reactors and Services division
Backlog 7,633 8,527 + 11.7%
Contribution to revenue 1,466 1,506 + 2.8%
Contribution to operating income before OL3
63 (58) (121)
provision + 4.3% - 3.9% - 8.2 pts
% of revenue
Additional provision for OL3 (321) (550)

Contribution to operating income (258) (608) (350)
% of revenue - 17.6% - 40.3% - 22.7 pts
Free operating cash flow before tax (407) (595) (188)
* EBITDA +/- gain on asset disposals and dilution +/- change in operating WCR – Capex net of disposals

► Orders booked in H1 2009: ► Operating income before OL3 provision:
replacement of 12 steam generators unfavorable seasonal impact in Services,
(USA, South Korea, France), marketing and R&D development, restructuring
multiyear services contract (EDF), of wind turbine projects
supply of 18 reactor coolant pumps
► Additional provision of €550M for OL3, for an
(China)
estimated result at completion of €(2.3)B
► Revenue: solid installed base
► Free operating cash flow: expenses linked
business and unfavorable seasonal
to OL3 project in Finland, no major payment
impact in Services
milestones in H1 2009


Back End division

Backlog 5,591 7,327 31.0%

Contribution to revenue 930 843 - 9.3%

% of revenue 18.8% 17.8% - 1.0 pt

Free operating cash flow before tax* 73 60 (13)
* EBITDA +/- gain on asset disposals and dilution +/- change in operating WCR – Capex net of disposals

► Orders booked in H1 2009: MOX assemblies for Electric Power Development
(Japan) and ENBW (Germany)
► Revenue and operating income: later start of production schedule in 2009
than in 2008, when the first half was particularly strong
► Free operating cash flow: EBITDA slightly down (less production in H1 2009)
and increase in Capex (development of cold crucible technology)


T&D division

Backlog 5,791 5,967 3.0%

Contribution to revenue 2,284 2,614 14.5%

% of revenue 11.1% 7.1% - 4.0 pts

Free operating cash flow before tax* (45) (310) (265)
* EBITDA +/- gains on asset disposals and dilution +/- change in operating WCR – Capex net of disposals

► €2.9B in orders booked in H1 2009, a drop ► Operating income marked by strong tensions
of 9.7% from H1 2008 at constant scope observed on the T&D market in S1 09 and start-up
and exchange rates costs for new capacity

Steady business in Asia and South America: ► Free operating cash flow:
HVDC contracts in China and South Korea
greater payment delays and unfavorable payment
and transformers for Bahrain
schedules in H1 2009
► Revenue up by 14.5%: good backlog Capex for capacity increases and acquisitions
execution by the Products and Systems BUs in Services in the United States and the United
Kingdom


Third quarter 2009 revenue climbs
Sales by division
7.8% to €3.164 Bn
In millions of euros Q3 2008 Q3 2009 ∆ 09/08 ∆ 09/08 LFL*
Front-End 714 812 + 13.7% + 12.0%
Reactors & Services 729 738 + 1.3% + 0.4%
Back-End 322 345 + 7.1% + 6.5%
Nuclear Activities 1,765 1,895 + 7.4% + 6.2%
% of total revenue 60.1% 59.9% - 0.2 pts - 0.3 pts
Transmission & Distribution 1,169 1,268 + 8.4% + 7.5%
% of total revenue 39.8% 40.1% + 0.3 pts + 0.3 pts
Total 2,935 3,164 + 7.8% + 6.7%
France 706 923 + 30.8% -
International 2,229 2,241 + 0.5% -

► Strong increase in Front-End sales (+12% LFL*)
Mines: sales up with the average uranium sales price improving over the period on a positive
contract mix
Enrichment: revenue growth fueled by rising volumes and positive export prices
► Reactors & Services sales flat (+0.4% LFL*), with a globally stable contribution of major plant projects
► Back-End sales up 6.5% LFL* with Recycling sales rising over the quarter after a drop in the first half of
the year
► T&D sales growth (+7.5% LFL*) driven by sales in Near East, the Middle East and North America
* LFL: at constant exchange rates and consolidation scope


First 9 month revenue
Sales by division
In millions of euros 9M 2008 9M 2009 ∆ 09/08 ∆ 09/08 LFL*

Front-End 2,202 2,368 + 7.6% + 4.2%
Reactors & Services 2,194 2,245 + 2.3% - 1.1%
Back-End 1,252 1,188 - 5.1% - 5.9%

Nuclear Activities 5,648 5,801 + 2.7% -0.1%
% of total revenue 62.0% 59.9% - 2.1 pts - 2.4 pts

Transmission & Distribution 3,454 3,883 + 12.4% + 10.8%
% of total revenue 37.9% 40.1% + 2.2 pts + 2.5 pts

Total 9,103 9,686 + 6.4% + 4.0%

France 2,644 2,687 + 1.6% -
International 6,459 6,999 + 8.4% -

* LFL: at constant exchange rates and consolidation scope


AREVA Overview - Business & Strategy Insights

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