Alain-Pierre Raynaud Chief Financial Officer AREVA

Transcription

1 Alain-Pierre Raynaud Chief Financial Officer AREVA 56

2 AREVA at a glance 57

3 AREVA is Nr 1 in Nuclear and Nr 3 in T&D Sales by business Geographic sales 7.1 Bn N 1 worldwide in Nuclear Other 66% 2006 market size: 25 Bn Asia 7% France Market share: 28% 14% 33% No.1 in Europe and the US No.1 in Plants / Fuel No.1 in the Back End 17% 3.7 Bn N 3 worldwide in T&D Americas 29% 34% 2006 market size: 43 Bn Market share: 9~10% Europe (Excl. France) ( vs ABB: 24%, Siemens 18%) Breakdown of AREVA sales in 2006 ( 10,863 MM)

4 NUCLEAR: AREVA harvests the fruits of its long presence on the whole nuclear cycle 59 Mining Chemistry Enrichment Fuel fabrication N 1 in Nuclear N 3 in the T&D Reactors 61,000 people 100 countries Recycling Mox fuel fabrication Spent fuel management Services Other sources of electric power Distribution Transmission 59

5 Nuclear is back 60

6 Installed nuclear generating capacity set to increase worldwide Installed nuclear generating capacity Forecasts (net GWe) WNA 2005 Hyp. haute WNA 2005 Hyp. moy. IAEA 2006 Haute IAEA 2006 Basse 400 reactors to be built 135 reactors to be built IEA-2006 Alternative IEA-2006 Réf % % DOE-EIA 2006 Réf. 61 Rising demand and tight market in the front end Nuclear plant construction set to accelerate after 2010 Replacement: ~100 reactors / Additional: ~ reactors Closed cycle to become the standard in the back end

7 T&D market to continue to grow at a sustained pace over the next years 62 Total market volume in Bn % 43 CAGR 06-10: + 6-7% CAGR 04-06: + 9% CAGR 01-04: + 2% Forecast Actual Source: Internal AREVA analysis

8 Our customers are consolidating The example of western Europe: 50% of the electric utilities were e acquired during the period * 1 Number of electric utility companies Note * Excluding city-owned companies

9 They are wealthy and announce a sharp rise in their capital expenditures 64 Annual operating Capex * In billions of euros + 45% * Upgrades to existing generating capacity Development of new power generation capacity Interconnections and upgrade of T&D grids Note * Source: AREVA estimates based on data published by our seven largest electric utility customers

10 AREVA is the only fully integrated player on the Nuclear value chain market CAMECO URENCO USEC AREVA Toshiba / Westinghouse BNFL / BNG MHI AEP GE / Hitachi Others Mining / Natural Uranium 65,000 t 15-20% 5-8% 20-25% 20-25% 25-30% Back End Front End Conversion / Chemistry 61,000 t 20-25% 5-8% 25-30% 20-25% 20-25% Enrichment Natural Uranium fuel (UO2) 43m SWUs * 20-25% 25-30% 20-25% 20-25% 5-10% 6,800 t 30-35% 20-25% 10-15% 15-20% 10-15% Reactors & Services 11 Bn 20-25% 15-20% 5-10% 10-15% 35-40% Treatment 30,000 t ** 70-75% 10-15% 10-15% JNFL in future Recycling (MOX fuel) 2,211 t ** 65-70% 1-5% 30% (Belgonuclear) JNFL in 2014 Recent strategic moves AtomEnergoProm to be launched early 2008 Note * Separative Work Units ** Cumulated, worldwide AREVA Estimate

11 Drivers favoring the AREVA s integrated model are huge 66 Commercial synergies International recognition Long term commitment / customers security of supply Customer access to recycling Cross selling Financial Portfolio synergies Mitigated risks Lower volatility HR Allocation Expertise management Attractiveness for talents Technological synergies Intelligent T&D networks Gen III: fuel recycling connected to reactor s design Gen IV: fuel cycle interacting with reactor s design External drivers favoring the AREVA s integrated model Tensions in Front End Recycling development Energy management systems " Talents " battle Nuclear revival & energy markets deregulation

12 AREVA s integrated offering: a solution for each client Examples 67 JV or existing contracts Ongoing discussions or negotiations Extraction Conversion Fuel Reactors Services Back end Enrichment solutions T&D Examples FL 3 US-EPR OL 3 EPRs

13 68 AREVA business model A profitable growth story

14 Main challenges for AREVA through 2011 (Strategic plan horizon) 69 Today ROI * Period 2005 / 2009 A period of significant Capex Profitable growth with operating income target of > 10% of revenue by / 2005 Management of recurring operations Improvement of margins in Europe and growth in the US Maintain focus: improve profitability of recurring operations Note * Return on investment

15 AREVA generates strong cash from operating activities 70 FY 2004 FY 2005 FY R&S R&S Back end T&D T&D Front end Back end Front end (14) R&S T&D Front end Back end WCR EBITDA

16 that permits to finance an important CAPEX program 71 Capital expenditures In millions of euros 1,500 +2,000 * Σ > 5,000 1, * UraMin acquisition Mining projects (UraMin, expansion of uranium exploration programs) Construction of GB II enrichment plant New uranium conversion facility Acquisition: Sfarsteel, Ritz High Voltage, Passoni & Villa Design certification of the US EPR Preliminary studies for a Generation III treatment and recycling facility Development of digital control systems / information systems for power grids

17 2007 and 2011 objectives Strong sales revenue growth Increase in operating income Continued capital expenditures program 2011 Capture 1/3 of the world market in the nuclear business and 5 billion in T&D sales revenue Achieve a double-digit operating margin Reach a significant position in CO 2 -free generating systems

18 Questions & Answers 73