ASSYSTEM NUCLEAR 2020 POSITION & PERSPECTIVE STEPHANE AUBARBIER. DECEMBER 10, 2014
45 YEARS EXPERIENCE, A RENEWED POSITION 2
ROAD MAP 1 WORLDWIDE NUCLEAR OUTLOOK 2 ASSYSTEM 4th NUCLEAR ENGINEERING FIRM 3 A SUSTAINABLE BUSINESS 3
WORLDWIDE NUCLEAR OUTLOOK
STRONG NUCLEAR GROWTH DRIVERS NUCLEAR ENERGY IS 1 COMPETITIVE 2 A GUARANTEE OF ENERGY INDEPENDENCE 3 A CARBON-FREE ENERGY SOURCE COMPARISON OF COST BY ENERGY SOURCE (in $ per MW) 5
NUCLEAR MARKET KEY FIGURES MARKET SEGMENTS RESEARCH FUEL CYCLE POWER GENERATION NEW BUILD INSTALLED FLEET DECOMMISSIONING NUCLEAR POWER GENERATION IN THE WORLD 434 nuclear power reactors in operation 69 nuclear power reactors under construction 370 543 MWe total net installed capacity Source: IAEA 07/2013 TODAY, FRANCE IS ABOUT 50% OF EUROPEAN MARKET KEY FAST GROWING MARKETS UK MIDDLE EAST (KSA, UAE, Turkey) RUSSIA CHINA 6
NUCLEAR MARKET ENVIRONMENT ONE STANDARD REACTOR IS 6 TO 10 BILLION $ INVESTMENT ENGINEERING RATIO IS ABOUT 25 TO 30% PROGRAMS ARE HUGE, LASTING FOR ABOUT 80 YEARS THE FUEL LIFECYCLE DOMINANT TECHNOLOGY IS PWR DEVELOPPED BY RUSSIA, US, FRANCE, KOREA, JAPAN, CHINA. GEN III TENDS TO BE REGULAR NUCLEAR IS UNDER CLOSE CONTROL OF GOVERNMENTS, DECISION MAKING PROCESS IS ALWAYS LONG MAIN COMPETITORS: WORLEY PARSONS (A-C), CH2MHILL (US), SHAW (US), AMEC (UK), ATKINS (UK) 7
THE FRENCH CASE WITH RUSSIA AND USA, FRANCE HOLDS THE COMPLETE NUCLEAR CHAIN: EDF / CEA / AREVA / ANDRA EDF, THE WORLD'S LARGEST INVESTOR IN NUCLEAR ENERGY OUTSOURCED ENGINEERING IS ABOUT 700M PER YEAR FRENCH OUTLOOK - Source: Minefi ASSYSTEM POSITION IN FRANCE 150 m 2013 turnover The most diversified player 20-25% market share in the French outsourced engineering market Contributor to all French nuclear projects, domestic and abroad 8
NUCLEAR IN FRANCE: A BRIGHT FUTURE AHEAD THE NUCLEAR INVESTMENT CYCLE 9
HINKLEY POINT IS UNDER CONSTRUCTION POSITIVE IMPACTS FOR FRANCE A great opportunity for industrial activity and employment The French nuclear industry will benefit from half of the investment, which should represent 5 to 10,000 jobs created and thousands more benefited This ensures that EDF will still need us most on national projects NEXT STEPS Finalization of agreements with industrial partners for their entry to the capital and with the British Government on project financing guarantee Decision of the European Commission on compliance with European competition rules Validation by the British Safety Authority of the work program at the end of the process of "review of the generic design" 10
ASSYSTEM 4 th NUCLEAR ENGINEERING FIRM
MARKET ENGINEERING POSITIONS INTEGRATED UTILITY ENGINEERING PROFESSIONAL ENGINEERING Dominated by Anglo-Saxon firms, countries where Integrated Utility Engineering is weak ENR 200 Mc GrawHill list is a reference 50% are US based INTEGRATED CONTRACTOR & OEM ENGINEERING 75% of them are strong either in Oil&Gas or Infrastructure Top 20 is positioned in both Energy & Infrastructure 90% have activities out of their borders, but only 20% have a real international footprint PERSONNEL SECONDMENT Leaders: FLUOR (US), JACOBS (US), WBR (US), AECOM (US), SNC LAVALLIN (C), WORLEY-PARSON (A-C), CH2mHILL (US), AMEC (UK), ATKINS (UK), ARCADIS (NL), TECHNIP (F), MOTT McDONALD (UK) INDEPENDANT ENGINEERING SERVICES 12
WHAT WE DELIVER? SPECIFY DESIGN EXECUTE OPERATE RETURN FEASIBILITY STUDY CONCEPT DESIGN / SELECTION CONTRACTUAL APPROACH BUDGET ASSESSMENT PROGRAM MANAGEMENT FEED BASIC ENGINEERING TENDER PREPARATION BID EVALUATION LICENSING / PERMITTING SUPPORT DETAILED ENGINEERING CONSTRUCTION MANAGEMENT COMMISSIONING MANAGEMENT RISK/QUALITY/SAFETY MANAGEMENT AND CONTROL MAINTENANCE, REPAIR, OVERHAULING OPERATION HANDOVER SHUT-DOWN MANAGEMENT IMPROVE TRAINING REHABILITATION DECOMMISSIONING DISMANTLING SCENARIO WASTE CHARACTERIZATION WASTE PRODUCTION CHAIN DEFINITION SYSTEMS INTEGRATION PROJECT MANAGEMENT MANAGEMENT OF THE REGULATORY CONSTRAINTS COMPLIANCE MANAGEMENT 13
ASSYSTEM NUCLEAR POSITION ENR 4 TH NUCLEAR FIRM N.TRIPLE.A WITH ATKINS CONNECTED (VP of CSFN) 14
A WORLDWIDE ENGINEERING SERVICE PROVIDER INDEPENDENT FROM ANY SPECIFIC TECHNOLOGY Since 2010, Assystem has established an independent engineering organisation with ATKINS to support countries that want to go to nuclear power and have safer nuclear projects THE NUCLEAR ATKINS ASSYSTEM ALLIANCE SUPPORT TO NEW COMING TO NUCLEAR COUNTRIES Based on the AIEA standards and on our 3 000 experts, we assist our clients throughout the different milestones of their programs UAE: Independent Lender s Technical Adviser on the project of APR1400 NPP, Barakah, since 2011, Security Design Review, PMO UK: licensing and design studies. KSA: Pre feasability studies (HR Dvt, Energy Mix) RSA: Nuclear Licensing consulting services for nuclear new build program... NUCLEAR OVERVIEW DECEMBER 10, 2014 15 17
EPCM CONTRACT FOR ITER ASSYSTEM S MISSIONS Assystem was awarded the EPCM contract in April 2011 following an international tender process. The biggest ever awarded in Europe, it covers 30 buildings. Assystem set up the international Engage joint venture with Iosis of France, Empresarios Agrupados of Spain and Atkins of the United Kingdom. This alliance brings together all the requisite competencies and capabilities in an international framework. 150 MILLION CONTRACT SPECIFY, DESIGN, EXECUTE 2010-2020 SERVICES: NUCLEAR SAFETY HVAC AND ELECTRICAL ENGINEERING CONSTRUCTION PROJECT MANAGEMENT 16
ASSYSTEM IS INVOLVED IN ALL EPR PROJECTS ASSYSTEM S MISSIONS 200+ ENGINEERS AND TECHNICIANS INVOLVED IN ASSYSTEM The EPR, or European Pressurized Reactor, is a third generation nuclear reactor of the pressurised water reactor (PWR) type. This reactor generates around 1 600 MWe of electrical power, and provides enhanced safety and simpler operating and maintenance conditions. EPCM OR PM SUPPORT: FROM DESIGN TO COMMISSIONING OLKILUOTO UNIT 3 (FINLAND) FLAMANVILLE UNIT 3 (FRANCE) Project Management Safety studies and reviews Complete design of sub-systems General installation design and calculations Management of nuclear equipment suppliers and costs control Field Design Management on site Support to the construction Management and Commissioning LING AO & TAISHAN UNITS 1 & 2 (CHINA) HINKLEY POINT PROJECT (UK) 17
LONG-TERM VISIBILITY PROJECT: DSA SELLAFIELD = The DSA framework, potentially worth up to 1.5 billion over 15 years, will provide Sellafield with access to the full range of multidisciplined engineering services civil and structural, mechanical, control and instrumentation, and process for the development and refurbishment of new and existing facilities and for decommissioning at the Sellafield site. It supports all new facilities and for the refurbishment and upgrading of existing facilities and systems to the production operations and infrastructure directorates. 25% OF THE TOTAL VOLUME FOR ASSYSTEM ONGOING PROJECT SINCE 2012 DECOMMISSIONNING NUCLEAR SITE OF SELLAFIELD (UK) DESIGN SERVICE ALLIANCE (DSA) 18 12
A SUSTAINABLE BUSINESS
ASSYSTEM S GROWTH STRATEGY 3 PRIORITIES 3 MARKET SCENARIOS AND CONSEQUENCES ON ASSYSTEM S REVENUES ACCOMPANY THE FRENCH TEAM GEOGRAPHIC EXPANSION SUCCESS OF THE FRENCH NUCLEAR TEAM ABROAD SUCCESS OF N.TRIPLE.A, FRENCH NUCLEAR TEAM FAILED ABROAD TARGETED ACQUISITIONS FRANCE 'S NUCLEAR PROGRAM IS STOPPED 20
NUCLEAR AT ASSYSTEM: 2010 2020 GROWTH PROFILE 2010 2015 TRENDS 2020e R&D FACILITIES FUEL CYCLE (Up & Downstream) + --- POWER GENERATION IN OPERATION UNDER CONSTRUCTION DECOMISSIONING DEFENSE + + + + + + = 21
KEY TAKE AWAY POINTS ANY DECISION SHOULD FAVORABLY IMPACT SALES A STABLE MARGIN PROFILE A LONG-TERM MARKET WITH CAPTIVE CUSTOMERS STRONG BARRIER TO ENTRY IN TERMS OF EXPERTISE STRONG GROWTH POTENTIAL 22