20121129 PrésentationAREVA PremiumReviewSG (PDF)

AREVA: Global leader
in low-carbon power generation

Premium Review – Société Générale
Paris, November 29th, 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

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

WEO 2012
2010 – 2035
New Policies Scenario

* Billions of toe
** Including hydraulic energy

Economics

Need of mastered, stable and
predictable energy costs

AREVA Presentation – November 29, 2012

p.3

Leader in low-carbon
power generation
Nuclear Energy value chain

Renewable Energy offering

Site value
development

Chemistry

Recycling

Enrichment

Reactors
Installed Base

Services

Fuel fabrication

Recurring activities
New Builds

Reactors
New Builds

Technical, operational, commercial and financial synergies

Mining

Offshore
Wind

Thermal
Solar

Energy
Storage

BioEnergies

> 80% of group revenues come from recurring activities
AREVA Presentation – November 29, 2012

p.4

Nuclear scenario:
differed but confirmed growth
AREVA 2011 scenario

Change in global installed base

(GWe)
GWe)

(GWe)
GWe)

Reassessed at end-June 2011
o.w
47 GWe in Japan
20 GWe in Germany

AREVA’s business model allows it to capture market
opportunities in all segments
AREVA Presentation – November 29, 2012

p.5

AREVA is present on the full
nuclear value chain
Nuclear Reactor lifecycle
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)
ESKOM

Hinkley Point
C-D
JAEC

EDF

PGE
Saudi Arabia
Pyhäjoki

Taishan 3-4
CGNPC

(GDF Suez – Iberdrola JV)

Temelin 3-4

Jaitapur 1-2
NPCIL
EDF
PPL
Duke Energy

NuGen

Fennovoima

CEZ *
Calvert Cliff 3
Bell Bend
Piketon

Delta
New Brunswick Power

OL 4

Vattenfall

TVO
MVM
MNPC
NA-SA

* Suspended, waiting for arbitration of Czech national competition body UOHS
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:

Europe, CIS and Africa

98 reactors built

188 reactors in operation
~140 reactors

4 reactors under construction

served by AREVA
114 for services
135 for fuel

North and
South Americas

Asia
119 reactors in operation
~90 reactors

130 reactors in
operation
~130 reactors

served by AREVA
17 for services
90 for fuel

served by AREVA
126 for services
100 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

2030
2011

377 GW

583 GW

Europe

- 13%

North America

+ 11%

Japan & Korea

+ 31%

Russia & CIS

+ 19%

China (including
Taiwan) & India

x8

Rest of world

x3

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

Dismantling: broad expertise in
managing customer projects

Reactor vessel / internals: decontamination and dismantling (D&D)
Stade, Würgassen,
Obrigheim

Dismantling of the reactor vessel and internals
Decontamination of primary and auxiliary circuits

Millstone, Rancho Seco,
Yankee Rowe

Dismantling of the reactor vessel and internals

Used fuel, effluent / radioactive waste management
Fukushima

Design and implementation of a full water treatment system

Dounreay

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

High level waste treatment (customer: DOE)

Savannah

Vitrification of high level waste (customer: DOE)

Marcoule

D&D of a large fuel treatment facility (customer: CEA)

Sellafield

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

More electricity output
than onshore turbines
More Wind hours
Higher wind levels
Larger turbine
sizes

Concentrated Solar
Power

Enables steam
production for hybrid
fossil/solar plants and
industrial applications
Possibility of thermal
storage increasing
production hours

AREVA Presentation – November 29, 2012

p.14

Bioenergy

Energy production
from biomass sources
AREVA also active in
upstream biomass
treatment market
through its torrefaction
technology

Energy Storage

Hydrogen production
through electrolysis
technology
Power production from
hydrogen in fuel cells
Other energy storage
technologies
considered for largescale applications

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)

Solar CSP market (World)

Bioenergy market (World)

(MW)

(MW)

(MW)
7,317
Other Asia / Oceania

Other Asia / Oceania

India

Middle-East / Africa

China

India

Europe

4,700

Latin America

5,160

North America

Europe

Middle-East and Africa

North America

Other Europe
France
2,340
Germany
1,561

China

1,010
UK

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

• 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

Debt
management

• Disposal plan
> €1.2bn over the
2012-2013 period
• Fully self-financed
Capex on a cumulative
basis over the 2012-2016
period

Improving our performance
-€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

Debt
management

Improving our performance

Improvement
of AREVA’s financial structure

Asset disposals program
ahead of schedule

Strengthening our
balance sheet
2 bond issues:

December 14, 2011: 01dB-Metravib

March 8, 2012: €400m bond issue (maturity:
October 5, 2017)

January 30, 2012: Sofradir

March 21, 2012: €200m private placement
maturing in 10 years

May 16, 2012: ERAMET
c.€1.2bn
June 1, 2012: AREVA Lesedi
June 11, 2012: Millennium

No major debt refinancing required before
2016

Average debt maturity: 7 years

August 28, 2012: La Mancha

Liquidity: €1.9bn in net cash
available at 6/30/2012 (+€462m
vs end of 2011)

2012-2013 objective for
disposals has been reached
AREVA Presentation – November 29, 2012

p.18

Safety
Commercial
priority given
to value
creation

Security Transparency
Selectivity
in capital
spending

Debt
management

65% of the operating cost
reduction goal secured

Improving our performance

OBJECTIVE of improving performance
€1bn reduction in annual operating costs by 2015
€1.0bn
Objective
Achieved(1)
Secured(2)
Identified(3)
~€450m
(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

45% of the 2015 goal
is secured

~€150m

2015
objective

~€200m

~€200m

2011-2012
actions

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
Approximate coverage of 2012
of 2011 revenue in backlog
revenue by BG (rounded)

Mining

€12.8bn

Front End

€18.5bn

Reactors
& Services

€8.5bn

Back End

€5.8bn

4

~100%

Renewable
Energies

€1.3bn

4

~75%

AREVA Presentation – November 29, 2012

p.20

10

8

3

~100%

~95%

~90%

Commercial dynamism and
improved profitability
Backlog (€bn)

Revenue (€m)
+10.1%

7,589

42.5

43.3

44.2

8,089

8,529 9,104 8,872

5,950

47.0

45.6

+10.0%

6,542

42.7

34.9
2007

2008

2009

2010

2011

Sept.
2011

Sept.
2012

Restated EBITDA* (€m)

2007

2008

2009

2010

2011

9M
2011

9M
2012

H1
2011

H1
2012

Restated FCF before tax*(€m)
2007

2008

2009

-900

-919

2010

2011

+€508m

908

725

684

-591
421

402
262

2008

2009

2010

2011

H1
H1
2011
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

-1,090
-1,366

217
-2,218

2007

-919
+€328m

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

Nuclear: +3 to 6% per year

Nuclear: +4 to 6%

Nuclear: +5 to 8% p.a

Renewables
> €750m

Renewables: ~€600m

Renewables: >€1.25bn

Revenue

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

Appendix

2012 half-year results – AREVA – July 27, 2012 - p.24

AREVA in figures
€47bn
backlog at 09/30/2012

Seizing growth opportunities on the worldwide existing
fleet and on new markets
Geographic distribution of 2011 revenue

€8.872bn
in revenue in 2011

Europe

61%

47,541 employees
in 25 countries
900 experts
8,000 patents

Incl. France 36%
Incl. Germany 9%

North & South
America

20%
2%

devoted to R&D

p.25

Incl. Japan 8%

Asia – Pacific
Africa &
Middle East

4% of sales

AREVA Presentation – November 29, 2012

17%