areva, business & strategy overview - november 2009

AREVA Business & Strategy overview

November, 2009

AREVA Overview – November 2009 p.3

Notice

► Forward-looking statements� This document contains forward-looking statements a nd information.

These statements include financial forecasts and es timates as well as the assumptions on which they are based, statements rel ated to projects, objectives and expectations concerning future operations, prod ucts and services or future performance. Although AREVA’s management believes t hat these forward-looking statements are reasonable, AREVA’s investors and in vestment certificate holders are hereby advised that these forward-looking state ments are subject to numerous risks and uncertainties that are difficult to fores ee and generally beyond AREVA’s control, which my mean that the expected results an d developments differ significantly from those expressed, induced or fore cast in the forward-looking statements and information. These risks include tho se developed or identified in the public documents filed by AREVA with the AMF, inclu ding those listed in the “Risk Factors” section of the Reference Document registere d 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 s tatements and information, except as required by applicable laws and regulatio ns.


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

CHEMISTRY

ENRICHMENT

FUEL FABRICATION

SERVICES

REACTORS

MINING

USED FUEL RECYCLING

TR

AN

SM

ISS

ION

& D

IST

RIB

UT

ION

NU

CLE

AR

AN

D R

EN

EW

AB

LE E

NE

RG

IES

OTHER SOURCES OF ELECTRIC POWER

Divestment of T&D activities in progress

TRANSMISSION & DISTRIBUTION

RENEWABLE ENERGIES

75,400 people

€13,160M Sales (2008)

€1,181M EBITDA (2008)

100 countries


Back End Renewable Energy

� Unchallenged leadership

� UltracentrifugationAREVA has the most efficient ultracentrifugation technology

Front End

� EPRthe first Generation III+ reactor under construction (4 units)

� A range of reactors to meet customer needs

PWR1,600+ MWe

PWR1,100+MWe

BWR1,250+MWe

� Only true "designedfor offshore" wind turbine

AREVA is at the forefrontof technology in CO 2-free generation

� Ownership of range of critical Biomass technologies

Plants

© AREVA © AREVA


AREVA is the only fully integrated playeron the nuclear power value chain

Mining / Natural uranium

Conversion / chemistry

Enrichment

Natural uranium fuel

Reactors and Services

Treatment

Recycling

Fro

nt E

ndB

ack

End

JNFL

Source: AREVA estimates

Recent strategic move /development

Presence Potential move


AREVA is now developing a portfolio of Renewable energy solutions

� Off-shore wind leading technology with strong position in Europe

� Vertically integrated in blades

Wind power

Off-shore wind turbine designer and manufacturer

2007: Multibrid acquisition2009: PN Rotor acquisition

� Ownership of range of critical technologies

� Innovative partnerships with utilities

Bioenergies

Specialized EPC for biomass fired power plants

2004: T&D biomass integration 2008: Koblitz acquisition2008: ADAGE JV creation

� Fuel cell design and prod.� Development of next

generation storage solutions and H2 prod.

Energy Carrier & Storage

Developer of marketable solutions to foster

renewable penetration

2001: Helion creation

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


EXAMPLES

URANIUM

NPCIL

FUEL REACTORS

AND SERVICES BACK-ENDNEW BUIDSCONVERSION ENRICHMENT

RENEWABLE ENERGIES

Discussions or negotiations in progress JV or existing contract

AREVA integrated model offers a key competitive advantage


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

Consolidation in the fuel cycle

Since 2004, long-lasting partnerships to develop mines in Canada

Equity stakes in Georges Besse II (GBII) new enrichment plant

Heavy component manufacturing site in the USStrengtheningof industrial

and engineering capacities JV in engineering in China

Reactor development

1100+ MWe pressurized water reactor

Renewables

1250+ MWe boiling water reactor

Partnership in biomass in India

Development of the biomass market in the United States

*Non exhaustive list


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

2,43,1

4,34,0

3,02,4

3,4

1,5

2,5

0

3

6

9

12

15

18

Coal

Oil

Natural gas

Nuclear

Renewables

Energy efficiencyand storage

2030

17,0

1,4

2006

11,7

0,7

Billions of metric tons of oil equivalent / year

Global energy mixGlobal energy mix

+5%/y

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

World energy sector challengesWorld energy sector challenges

► Energy demand will increase 50 % by 2030

� Population will increase by 2 billion people

� Human Development will increase energy intensity

► Peak oil and gas is a reality and substitution is necessity

� Total Oil and Gas production will start to decrease in 15 years

� Electricity demand will grow by a factor of 2 by 2030

► Carbon emissions must be cut by half to stabilize climate change


The nuclear revival is here Forecasts published by international organizations

AREVA targets 1/3 of the accessible new build marke t and the leadershipin life extension and power uprates

AREVA's market scenario for installed capacity (in GWe)

373 262190

358 659

2030New builds

Lifeextension

Plant closures

2008

► AREVA Back End

► AREVA Mining, Front End Services, Back End

► AREVA Reactors and Services678: WEO1- 2008- 450 ppm Policy Scenario

731: WNA2 - 2007- High Estimate

748: IAEA - 2008 – High Estimate

529: WNA - 2007 - Reference

473: IAEA - 2008 – Low Estimate

433: WEO - 2008 – Reference Scenario

498: DOE3 EIA4 - 2008 Reference Case

533: WEO- 2008- 550 ppm Policy Scenario

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


Source : WEO 2008, ETP, EIA (2008)

7%

9%

11%

13%

3%

XX% world electricity generation capacity

� Increasing share of “new”renewables (except hydro) from 3% to 13% of total electricity mix

� A market of ~160 bn$/year of new capacity

� Strong growth expected in Off-shore wind (~10% p.a.), Biomass (~6% p.a.)

+8.5% annual growth expected for Renewable energy market through 2030

Annual newcapacity market (in USD07 billion)

115 130 190

Capacity installed for renewable energies (GW)

500

250

1.000

750

020302025202020152006

Geothermal

Solar

Biomass

Wind onshore

Tide and Wave

Wind offshore


An investment program well under way to capture market opportunities

► Selling our reactors� EPR reactor licensing in the UK, US

� Assembly capacity for heavy components

� Developing ATMEA (JV with MHI)

� …

► Securing access to uranium� Developing mining portfolio

(Canada, Africa, Kazakhstan)…

► Adjusting our enrichment capacity� Migration to centrifuge enrichment

� Meeting US demand: GBIII project

► Safety and renovation of our facilities� Chemistry (Pierrelatte, Malvési…), La Hague…

► Accelerating Renewable development� Development of existing assets

(like Multibrid)

� “Opportunistic” approach for external growth on selected markets

Nuclear & Renewable EnergiesT&D

1 Acquisition of property, plants and equipment and intangible assets

1,00,2

1,3

0,3

2,0

0,42,50,1

2007 2008 2009e 2010-2012

Average budget per year

2.6002.358

1.623

1.112

AREVA annual CAPEX 1 (€Bn)


AREVA has a 50-year history of successful nuclear project execution

AREVA was created in 2001 by the merger of companies with a long nuclear history

Westinghouse

1958: Framatome created to operate a Westinghouse reactor license; the technology will gradually be improved and become fully owned by Framatome

Sept. 2001

AREVA has never stopped building reactors since the 1960’s

� AREVA has never stopped building reactors

� AREVA has built 91 of the 439 currently active 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, China, Latin America

Reactors built by AREVA or its predecessor companies by commissioning date

1. Including 7 shutdown and 4 under construction

Jan 2001

21

57

102

5 0

40

80

120

Totalon-going

4

00’s

3

90’s

12

80’s70’s60’s

1


NPCIL

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

…and are making commitments for the entire fuel cyc le� CGNPC – China: supply of front end of the fuel cycle through 2026

� NPCIL – India: wants to secure reactor supplies for the lifeof 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 res ources for AREVA’s long-term development plan, and strength en 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 con sidered

(Shares to remain in the public sector)� Disposal of Total and GDF Suez shares� Continuation of sale of minority stakes in strategi c 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 fu lfill its ambitions while maintaining its 'A' corporate credit rating


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

4%

8%

79%

Framépargne**Calyon

1%

Total

1%

EDF

2%

4%French State

CEA*

CDC

AREVA current ownership structure

► French Atomic Energy Research Organization, public body established in 1945

► Active in three main fields : Energy, information a nd health technologies, defense and national security

► By law, CEA must retain the majority of AREVA’scapital

► €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 public interests and economic development; supports public policies, companies and local authorities

► AAA/Aaa with a consolidated balance sheet of €221bn

Total French State: 92%

CDC4%

CEA79%

Investment Certificate Holders* (free float) 4%

0.4%


Contents





►Appendices


• Plants

• Equipment

• Nuclear Services

• Nuclear Measurement

• Consulting & Information Systems

• AREVA TA

Reactors & ServicesNr 1 worldwide in the overall R&S

Front EndNr 1 worldwide in the overall Front-End

Mines Reactors & Services

Conversion,Enrichment & Fuel

Back EndNr 1 in used nuclear fuel

management

• Recycling

• Logistics

• Nuclear Site Value Development

• Engineering

• Clean-up

• Mines

• Chemistry

• Enrichment

• Fuel

Transmission & Distribution

Nr 3 worldwide in overall T&D

• Products

• Services

• Systems

• Automation

Mines

• Mineral Exploration

• Mining Operations

• Ore Processing

• Site Reclamation

Renewable Energies

• Wind Power

• Bioenergies

• Fuel Cells

AREVA group structure


Sales – 2008 splitSales – 2008 split

Front-End division AREVA invests to maintain leadership in

Mines and Enrichment

-8.7%453496OPERATING INCOME

-2.3 pts13.5%15.8%% Sales

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

+7.1%3,3633,140SALES REVENUES

+27.6%26,89721,085ORDER BOOK

Change20082007In millions of euros

Key financialsKey financials

Mining23%

Chemistry8%

Enrichment32%

Fuel37%

► Mining: explores, extracts and processes uranium ore, from which nuclear fuel is made. The BU then reclaims mining sites once production is finished

► Chemistry: converts natural uranium (U3O8) into uranium hexafluoride (UF6) required for enrichment

► Enrichment: Increasing the proportion of U235 found in natural uranium from 0.7% to 3%-5% in order to manufacture fuel for nuclear reactors

► Fuel: designs, manufactures and sells nuclear fuel assemblies for pressurized water reactors (PWR), boiling water reactors (BWR) and research reactors

Nr 1 worldwide in the overall Front-EndNr 1 worldwide in the overall Front-End


A uniquely diversified mining portfolio

�

Canada

►Development (Shea Creek, Kiggavik etc.)

►Exploration since 1964

►Cigar Lake production to start after 2012 (+2,600 tU)

Morocco

►Agreement signed with Office Chérifiendes Phosphates

AREVA Resources Southern Africa

►Namibia - Trekkopje: mining permit obtained / 1st

productionexpected in 2010

►+3,000 tU production expected

►Central African Republic -Bakouma: government agreement obtained

►+2,000 tU production expected

►South Africa – Ryst Kuil

►Exploration

Kazakhstan

►Mining & global fuel agreement signed

►Katco production ramp-up / license for 4,000 tU obtained

►Exploration

Mongolia

►Sainshand

►Exploration

Somaïr & Cominak mines

Imouraren mining license obtained

- Start up 2013-14 (+ 5,000 tU)

Niger

Democratic Republic of Congo

►Mining partnership

Australia

►Exploration since 1969

Production(metric tons of U)

~ 6,300

~12,000

2008 2012


80.000

75.000

70.000

65.000

60.000

55.000

50.000

5.000

45.000

40.000

35.000

30.000

25.000

20.000

15.000

10.000

0

20152014201320122011201020092008

Production ramp up and new mines are already necessary to meet

Uranium demand…Uranium supply and demand - Kt U, WNA 2009 report -Uranium supply and demand - Kt U, WNA 2009 report -

� In 2008, 33% of current supply was met with secondary sources and inventory reduction

� By 2015, Uranium production to be covered by new projects should represent 21% of the supply and result in a mining output increase of 51%

Recycling (MOX, RepU, …)

Other secondary supplies (tailsreenrichment, DOE sales)

Inventory reduction

Production to be coveredby new projects

Demand

Russian HEU

Production from existing mines


2008 vs 2006 in % 2008 vs 2007 en %

► All producers experienced cost increases due to:� Inflation on direct costs (equipments, reagents, salaries

and royalties)

� Tax increases

� Existing mines getting more difficult to operate (ore depth, grade,…)

� New mines requiring more investments (bigger size, lack of infrastructure / utilities, material cost inflation)

►Emerging producers have been strongly impacted by spot price volatility due to a limited backlog highly exposed to market conditions

►AREVA's backlog ensures positive exposure to market evolution thanks to a mix of fix / longterm pricing

►AREVA’s selling price has progressed as low price legacy contracts are being replaced with new ones

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 selling price Change in selling price Change in cost of salesChange in cost of sales

0

10

20

30

40

50

60

70

AREVA CamecoERA

55%

67%

52%

- 30

- 20

- 10

0

10

20

30

-23%

Denison Paladin

-16%

Uranium One

-19%

Cameco

5%

ERA

29%

AREVA

27%


AREVA is leading the way in enrichment capacity renewal

► Installation start-up by end 2009

►Essential investment for global balance of the enrichment market with modular capacity to meet market requirements

� At least 7.5 MSWU (by 2016)

►Based on the best existing available technology (ETC – TC12)

►Installation start-up by 2014

►A capacity of 3.2 MSWU (by 2018) approved by NRC and on-going discussion about production extension up to about 6 million SWUs

►Proven ETC centrifuge technology, already licensed by the NRC

Georges Besse IIGeorges Besse II Eagle Rock Enrichment FacilityEagle Rock Enrichment Facility

Georges Besse II:90% of capacity already sold until 2020

Eagle Rock Enrichment Facility: 50% of capacity already sold beyond 2020


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

►Fifty percent of current capacity to be replaced, increasing risk and market volatility

►SWU prices will remain high due to the uncertainty of the new investments based on unproven technology

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

The Nuclear Renaissance is tightening the market, resulting in upward price pressure

Long term market trends Enrichment prices ($/UTS)

201820162014201220102008

140

200620042000

180

0

200

160

2020

120

2002

80

100

Source: UxC 2009 Q1

Base case

High case



Reactors & Services division Still mostly recurring, but new build is there


► Plants: design, construction and commissioning of nuclear islands, and monitoring, replacement, upgrades and renovation of installed base

► Equipment: manufacture of key components for nuclear power plants

► Nuclear services: reactor optimization services

► Nuclear measurement: design and construction of systems and devices designed to measure radioactivity

► Consulting and Information Systems: IT services

► AREVA TA: design, production and maintenance of nuclear reactors for research and for the propulsion of submarines and aircraft carriers

► Renewable Energies: design and construction of systems using either wind power, biomass or hydrogen energy

-€508M(687)(179)OPERATING INCOME*

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

-€63M(591)(528)OP. FCF BEFORE TAX


+2.7%7,8507,640ORDER BOOK


Nr 1 worldwide in the overall Reactors & ServicesNr 1 worldwide in the overall Reactors & Services

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

Renewable energies

5%

CIS 5%

AREVA TA12%

Equipment9%

Nuclear measures

5%

Reactors38%

Nuclear services

26%


EPR is a proven reactor with an outstanding safety level

Project certainty: integrated supply chain, licensed in 2 countries and already under construction in 3

Evolutionary design based on the best of French (N4) and German (Konvoi) technologies

High output: 1600 MWe+

High availability during 60-years service life: 92%+

Enhanced fuel utilization

Designed to achieve outstanding safety: the EPR design benefited from the scrutiny of both the German, French and Finnish safety authorities

Best-in-class airplane crash protection

Severe accident prevention : quadruple redundancy, optimal combination of active and passive safety systems

Severe accident mitigation: advanced core catcher & radionucleidesfiltration

Safety first and foremostSafety first and foremost Performance with certaintyPerformance with certainty


�

NPCIL

EPR projects all over the world

Under construction

Ongoing projects or discussions

Emirates

Amarillo Power

Some EPR projects under discussion do not appear on this slide


Benefits from the most advanced Gen 3+ project… despite OL3 specific situation

► More than 90% of orders and procurement placed

► Engineering more than 80% complete

► Civil works on main buildings 73% complete

► Dome placed on September 6, 2009

► Components manufactured

Olkiluoto 3 project status:Stage of completion unmatched in the

world for Generation III+ plant

… but a slower than planned progress due to client’s conduct

► TVO’s inappropriate behavior with regards to contract management generates uncertainties on the final cost of the project and the commissioning

► AREVA has sent proposals to TVO in order to get back to the methods of execution that are in line with usualpractices for major projects

► AREVA will only commence the final phases 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 provisionof 550 million euro, bringing the estimated result at completion to (2.3) billion euro*

► Claims amounting to 1 billion euro have already bee n sent to TVO by the AREVA-SIEMENS consortium

► Additional claims are being prepared, and in accordance with the applicable accounting principle s, AREVA has not accounted for these positive elements .

* this amount does not include TVO’s claim because the AREVA-SIEMENS consortium deems that the allegations presentedin this claim are without foundation and without value with respect to the contract and to Finnish law

© AREVA


► On the AREVA perimeter

� 70% of orders placed

� Engineering 65% complete

► Civil work progress (not AREVA scope)

AREVA EPR fleet is being deployed

Flamanville (France): supply of Nuclear Steam

Supply System

Taishan (China): supply of 2 nuclear islands

► 70% of orders placed by AREVA and 30% by our partner within the consortium

► Engineering close to 30% complete

► As planned start of engineering in China with our partner CGNPC

► Significant civil work progress by the customer

► Preparation of the “first concrete” milestone

© EDF © CGNPC / SHEN ZUOBIN



► Recycling: a full service of fuel recycling, including Mixed Oxide fuel and Reprocessed Uranium fuel production

► Logistics: design and supply of casks for the transportation and storage of radioactive materials; also safe and secure transportation and logistics services

► Nuclear site value development: performance-based project management for Dismantling and Decommissioning programs; 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 and construction of installations for global nuclear operators

Back-End division An unchallenged leadership

+28.6%261203OPERATING INCOME

+3.7 pts15.4%11.7%% Sales

+€250M422172OP. FCF BEFORE TAX


+2.7%7,7846,202ORDER BOOK



Nr 1 in used nuclear fuel managementNr 1 in used nuclear fuel management

Logistics14%

Recycling63%

Engeeniring6%

Cleanup3%

Nuclear Site Value Development

(Decommissioning)14%


A strong and unique industrial base

►La HagueFuel treatment

►MELOXMOX fuel fabrication

►La HagueFirst generationplant dismantling

►MarcouleUP1 Treatment plant dismantling

►CadaracheMOX plant dismantling

(performed by Front End with recycled uranium supplied by Back End)

►RomansRepU fuel fabrication

►TricastinRepU Enrichment and Conversion

La Hague plant

� Production capacity: 1 700 tons of used fuel

� Production capacity: 195 tons of MOX fuel

Melox plant

Recycling Plant dismantling Reprocessed Uranium Fuel Fabrication


Worldwide recognition of AREVA’s leadership in Back End

USA

►MOX Fuel Fabrication Facility under construction for DOE ($5Bn)

►60% of dry storage market for US utilities

►Significant presence on major DOE sites

Europe

►EDF: framework agreement for comprehensive recycling services until 2040

►Other utilities: over 6,000t of fuel recycled (EON, RWE, Suez, SOGIN, etc.) and 300 casks sold

►Sellafield site Management & Operations

►Management of World’s largest civilian D&D program

Japan

►A total of 3 000t of Japanese nuclear fuel has been recycled at La Hague to date

►MOX fuel fabrication and transportation to Japan started in 2008

►Successful technology provider for the Rokkashomura recycling plant (based on La Hague model)

58% France21%Europe –

Excl. France

7%Americas 14%

Asia Pacific

% of total 2008 sales



T&D division Long term outlooks positive in

spite of crisis

+41.1%560397OPERATING INCOME

+1.9 pts11.1%9.2%% Sales

-€253M(20)233OP. FCF BEFORE TAX


+16.5%5,7154,906ORDER BOOK



► Designs and manufactures a complete range of high and medium voltage equipment, systems and services on a global basis:

� To transmit and distribute electricity from the power plant to the end-user

� To optimize power grids

► Installs complete systems and supplies services for every market segment: transmission, distribution and power-intensive industries

Nr 3 in the overall Transmission & DistributionNr 3 in the overall Transmission & Distribution

Automation10%

Systems31%

Services6%

Products53%


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


0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

2004 2005 2006 2007 2008 2009 2010 2011 2012

New build

Installed based business

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

resilient business model

► AREVA has never stopped building reactors

► 80% of the nuclear business is recurrent

► Strong visibility (backlog) and recurring cashflow

► Capex supported by the sale of the new facilities’ future production (example: 90%of GBII production through 2020 is already in backlog)

Installed base business model ensuring strong cash-flow generation

Source: AREVA strategic plan

Installed base revenue vs. new builds (millions of €)

80% of the nuclear business


Sustained growth

* excluding FCI - Connector technology division

Backlog (€Bn)* Revenue (€MM)*

19.6 20.6

25.6

39.8

48.2

2004 2005 2006 2007 2008

X 2.5 +34% 13.2

9.8 10.110.9

11.9

2004 2005 2006 2007 2008


AREVA’s operating income before OL3 provisions has doubled in 4 years

640 551

56

407

604

751

292

417

749

2004 2005 2006 2007 2008

1,043

1,166

Margin before OL3 provisions (% of sales)

640 607

1,011OL3 provisions

Operating income

+82%

5.8% 6.0% 9.3% 8.8% 8.9%

Operating income before OL3 provisions (€M)


Cost optimization program Working capital optimization

► Purchasing performance~ €500M

� Development of supplier selection panels� Globalization of negotiations� Scope: recurring purchases,

capital spending, project procurement

► Control of overheads~ €100M

� Freeze on hiring for support functions� Reduction of travel expenses

and subcontractor costs� Greater selectivity in marketing expenses

► A challenging transitory situation

� Enrichment: buildup in SWU inventory to prepare the transition GBI - GBII

� AREVA T&D: temporary impact of gradual shift of business to the East

► Favorable structural WCR in nuclear business

� EPR projects structured to have positive cash curves

� Negative normative WCR in Front-End & Back-End

€600M in 2009

€300M in 2009

AREVA is taking steps to improve its cash flow generation


Strong cashflow generation to finance the group’s investment effort…

Operating cash flow vs. net investment evolution 20 04-2008 (€M)

Operating cash flow before investments

Net Investments

UraMin acquisition ($2,5Bn)

2004 20082005 2006 2007 Total 2004-2008 excl. UraMin

1,252 1,178

890 904

533426 395

1,248

2,889

1,454

1,295

4,757 4,818

1,594


1 344

213 400

1 950

664

79

2009 2010 2011 2012 and later

Borrowings CP program Interest bearing advances

UraMinacquisition

debt

Syndicateloan Canada BEI

loan

Short-term debtrolling over

Borrowings by maturity 30.06.2009

Net Debt structure at June 30, 2009Net Debt structure at June 30, 2009

AREVA’s credit metrics are set to improve in the near future

-6,414-5,496Net Debt

-2,065-2,068Put option of minority shareholders

8341,163Cash and cash equivalent, other financial assets

-533-413Short term facilities, overdraft, miscellaneous

-743-727Interest bearing advances

-3,907-3,451Main Borrowings

30.06.0931.12.08Net debt (M€)

1. commercial paper program

1

Minimal net debt level in 2010

Net Debt €6,414M Net Debt/Capital ~ 49%

At 30/06/2009


Cash: €600 million at June 30, 2009

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

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

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

► Together with the capital increase and the assets d isposal programs, this strong liquidity offers comfort to execute ARE VA’s investment plan

► The positive free cash flow generation should be re ached by 2012

Optimized liquidity offers flexibility in the timing of the investment plan

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


451 451

649743

589

2004 2005 2006 2007 2008

AREVA creates value for its shareholders

Margin (% of sales) 4.6% 4.5% 6.0% 6.2% 4.5%

1. excluding FCI - Pôle Connectique disposal

AREVA has paid its shareholders more than €2.6Bn si nce 2001From 2001 to 2008, the invested rate of return for the investment certificate comes to 16.7%

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

AREVA net income 2004-2008 (€M)

1


Contents





►Appendices


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

* Income from nuclear operations excluding OL3

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

H1 08 H1 09

Exceptional exportsales (Asia)

Very favorableseasonal effect

Strong concentrationof annual production in H1

Front End

Reactorsand Services

Back End

Later start of unitoutage campaigns

Unfavorable productiondistribution (H2 catch-up)


Key data as of June 30, 2009

* EBITDA +/- change in Operating WCR – Capex net of disposals** Siemens’ put option at its 2007 value, i.e. €2.049B

(550)(321)Additional provision for OL3

+ 16.6%6,4145,499 Net debt (**)

6/30/0912/31/08

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

(599)€(16.9)

161€4.55

760€21.45

Net income attributable to equity holders of the parentEarnings per share

(523)- 8.5 pts

160.2%

5398.7%

Operating income% of revenue

- 34.2%- 5.2 pts

566 8.7%

86013.9%

Operating income before OL3 % of revenue

+ 5.7%6,5226,168Revenue

+ 28.2%48,87638,123Backlog

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


30/09/2008 30/09/2009

Backlog growth

Nuclear: + 27.4% to €41.8B

► Contracts signed in first 9M 2009: � Several significant contracts with US, Japanese

and European utilities in the Front End � Replacement of 12 steam generators for TVA (USA), K HNP

(South Korea) and EDF (France)

� Multiyear umbrella agreement with EDF for services

� 18 reactor coolant pumps for EPCD in China

� MOX fuel assemblies for Japan

� Fuel contract in Spain with Central Nuclear de Tril lo

T&D: - 5.6% to €5.7B

► €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 Kore a

� Supply of 66 kV substations and transformers to Bah rain (EWA)

� Modernization of the Indonesian grid – “10 GW Progra m”

� Supply of 4 extra-high voltage stations to PGCIL in India

Backlog(*) (€B)

47.5

38.8

6.0

32.8

41.8

5.7

+ 22%

T&D Nuclear

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


H1 2008 H1 2009

5.7% revenue growth(2.8% like-for-like)

T&D

6,168

6,522

+ 68+ 0.6% LFL 1

Front End

+ 330+ 12.5% LFL 1

(87)- 10.1% LFL 1

Back End

R&S

+ 41- 1.9% LFL 1

∆∆∆∆ H1 09 / H1 08: + €354M+ €176M LFL1

� Exceptional sales of H1 2008 not repeated, but positive price effects (Front End)

� Unfavorable production lag (Back End) and seasonal effect (Services)

� Good project performance in T&D division

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

In millions of euros


H1 2008 H1 2009

Operating income

539

(350)

(67)

(53)

(25)

T&D

Front End

Back EndR&S

Corp.(29)

16

� 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 (R&S and Back End)

� Agreement with USEC, ending the trade case (Front End)

� Preparing for the future: R&D, recruitment, organizational strengthening for major projects (EREF, mining projects, etc.)

� Impact of global crisis on T&D division and renewables


* Income from nuclear operations excluding OL3


Free operating cash flow before tax

Gross CapexFree

operating cash flow

DivestituresEBITDAChange in WCR

Operatingcash flow

(173)

459

(783) (497)

(950)(1,115)

+ 333

► EBITDA: like operating income, EBITDA is penalized by an unfavorable seasonal effect

►WCR: constitution of SWU inventories tied to the tra nsition from GBI to GBII and use of customer advances in nuclear operations;extension of payment terms and unfavorable payment s chedules in T&D division

► Capex: program deployment in Mining, Enrichment and Equipment

Capital gains / losses



Net debt

31.12.2008 30.06.2009

Other itemsCash fromend-of-cycleoperations

Dividends (6,414)*

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

Free operating cash flow before tax

Disposals of financial assets

Rappel :Fonds propres

au 30.06.096 693M


(1,115)

(33)(313) + 465

81

Equity at 6/30/09: €6.693B

12/31/2008 6/30/2009

(5,499)*


Front End division

► 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 invento ry

� Overhead expenses generated by major construction p rojects (EREF, mining projects)

► Impact of equity share taken by Kansai/Sojitz and K HNP in GBII same as in H1 08 (GDF-Suez)

► Free operating cash flow: increase in inventory (SW Us) and deployment of Capex programs in Mining and Enrichment

* EBITDA +/- gain on disposals of assets and dilution +/- change in operating WCR – Capex net of disposals

(133)(179)(46)Free operating cash flow before tax*

- 13.1% - 4.4 pts

34822.4%

40026.8%

Contribution to operating income% of revenue

+ 4.6%1,5561,488Contribution to revenue

41.6%27,05519,108Backlog

∆∆∆∆ 09/08 6/30/096/30/08In millions of euros


Reactors and Services division

* EBITDA +/- gain on asset disposals and dilution +/- change in operating WCR – Capex net of disposals

(550)(321)Additional provision for OL3

(350)- 22.7 pts

(608)- 40.3%

(258)- 17.6%


(188)(595)(407)Free operating cash flow before tax

(121)- 8.2 pts

(58)- 3.9%

63+ 4.3%

Contribution to operating income before OL3 provision % of revenue

+ 2.8%1,5061,466Contribution to revenue

+ 11.7%8,5277,633Backlog

∆∆∆∆ 09/08 6/30/096/30/08In millions of euros

► Orders booked in H1 2009: replacement of 12 steam generators (USA, South Korea, France), multiyear services contract (EDF), supply of 18 reactor coolant pumps (China)

► Revenue: solid installed base business and unfavorable seasonal impact in Services

► Operating income before OL3 provision: unfavorable seasonal impact in Services, marketing and R&D development, restructuring of wind turbine projects

► Additional provision of €550M for OL3, for an estimated result at completion of €(2.3)B

► Free operating cash flow: expenses linked to OL3 project in Finland, no major payment milestones in H1 2009


Back End division

► Orders booked in H1 2009: MOX assemblies for Electr ic Power Development (Japan) and ENBW (Germany)

► Revenue and operating income: later start of produc tion schedule in 2009 than in 2008, when the first half was particularly strong

► Free operating cash flow: EBITDA slightly down (les s production in H1 2009) and increase in Capex (development of cold crucible technology)

* EBITDA +/- gain on asset disposals and dilution +/- change in operating WCR – Capex net of disposals

(13)6073Free operating cash flow before tax*

- 14.2%- 1.0 pt

15017.8%

17518.8%


- 9.3%843930Contribution to revenue

31.0% 7,3275,591 Backlog

∆ 09/08 6/30/096/30/08In millions of euros


(265)(310)(45)Free operating cash flow before tax*

- 26.4%- 4.0 pts

1867.1%

25311.1%


14.5%2,6142,284Contribution to revenue

3.0%5,9675,791 Backlog

∆ 09/08 6/30/096/30/08In millions of euros

T&D division

* 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 of 9.7% from H1 2008 at constant scope and exchange rates

Steady business in Asia and South America: HVDC contracts in China and South Korea and transformers for Bahrain

► Revenue up by 14.5%: good backlog execution by the Products and Systems BUs

► Operating income marked by strong tensions observed on the T&D market in S1 09 and start-up costs for new capacity

► Free operating cash flow:

� greater payment delays and unfavorable payment schedules in H1 2009

� Capex for capacity increases and acquisitions in Services in the United States and the United Kingdom


Third quarter 2009 revenue climbs 7.8% to €3.164 Bn

+ 0.5%

+ 30.8%

+ 7.8%

+ 8.4%+ 0.3 pts

+ 7.4%- 0.2 pts

+ 7.1%

+ 1.3%

+ 13.7%

∆∆∆∆ 09/08

+ 0.4%738729Reactors & Services

-2,2412,229International

-923706France

+ 6.7%3,1642,935Total

+ 7.5%+ 0.3 pts

1,26840.1%

1,16939.8%

Transmission & Distribution% of total revenue

+ 6.2%- 0.3 pts

1,89559.9%

1,76560.1%

Nuclear Activities % of total revenue

+ 6.5%345322Back-End

+ 12.0%812714Front-End

∆∆∆∆ 09/08 LFL*Q3 2009Q3 2008In millions of euros

Sales by division

► Strong increase in Front-End sales (+12% LFL*)

� Mines: sales up with the average uranium sales pric e 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 projec ts

► Back-End sales up 6.5% LFL* with Recycling sales ri sing over the quarter after a drop in the first hal f of the year

► T&D sales growth (+7.5% LFL*) driven by sales in Ne ar East, the Middle East and North America* LFL: at constant exchange rates and consolidation scope


First 9 month revenue

* LFL: at constant exchange rates and consolidation scope

+ 8.4%

+ 1.6%

+ 6.4%

+ 12.4%+ 2.2 pts

+ 2.7%- 2.1 pts

- 5.1%

+ 2.3%

+ 7.6%

∆∆∆∆ 09/08

- 1.1%2,2452,194Reactors & Services

-6,9996,459International

-2,6872,644France

+ 4.0%9,6869,103Total

+ 10.8%+ 2.5 pts

3,88340.1%

3,45437.9%

Transmission & Distribution% of total revenue

-0.1%- 2.4 pts

5,80159.9%

5,64862.0%

Nuclear Activities % of total revenue

- 5.9%1,1881,252Back-End

+ 4.2%2,3682,202Front-End

∆∆∆∆ 09/08 LFL*9M 20099M 2008In millions of euros

Sales by division

areva, business & strategy overview - november 2009

Economy & Finance