AREVA Credit update Pierre AUBOUIN , Chief Financial Executive Officer Pierre FOURRIER , Group Treasurer January 2012
Table of Contents Introduction Market outlook Positioning and strategy Performance plan Financial outlook Conclusion AREVA – Credit Roadshow – January 11, 12 & 13, 2012 – p.2
AREVA is a global leader in solutions for power generation with less carbon 2010 Key figures 2010 Key figures €44.2bn backlog €9,104m revenue Europe (excl. France) France €2,240m €3,571m North and South America Africa and €1,539m Middle East €207m Asia-Pacific €1,547m €532m EBIT excluding particular items -€423m EBIT including particular items 47,851 people Introduction to AREVA AREVA – Credit Roadshow – January 11, 12 & 13, 2012 – p.3
H1 2011 key figures Backlog (in millions of euros) Revenue (in millions of euros) Backlog (in millions of euros) Revenue (in millions of euros) -3.9% 44,062 -2.1% 4,158 43,122 3,997 H1 2010 H1 2011 H1 2010 H1 2011 Operating income (in millions of euros) Net debt (in millions of euros) Operating income (in millions of euros) Net debt (in millions of euros) Excluding particular items 6,193 €-3,421m €-151m 213 3,672 2,772 62 H1 2010 H1 2011 2009 2010 H1 2011 Reported operating Gearing €(485)m €710m 45% 28% 22% income AREVA – Credit Roadshow – January 11, 12 & 13, 2012 – p.4
Context of the “Action 2016” plan 10 billion-euro capital expenditure program over the period* 2007-2011 � €10bn Capex financed internally by operations for 33% � Financing gap filled through a significant asset disposal program, a share capital increase, and debt increase � Free operating cash flow has been negative since 2006 Energy market forecasts are subject to questions in the aftermath of the Fukushima accident and the financial crisis � Share of nuclear power in the energy mix and timing of ramp-up � Pace of growth in renewable energies AREVA launched a comprehensive review of its activities, their outlook and corresponding resource needs which lead to the “Action 2016” plan released on Dec 13 th , 2011, with notably the following objectives: � Improvement of operating performance � Strengthening of AREVA financial profile � Continuous focus on safety and security as key business driver Based on the above, S&P assigned a BBB- rating with stable outlook *Excluding the acquisition of AREVA NP shares from Siemens AREVA – Credit Roadshow – January 11, 12 & 13, 2012 – p.5
Financial outlook 2011 Provisions identified for fiscal year Provisions identified for fiscal year ended December 31, 2011 ended December 31, 2011 Backlog c. € 44bn €1.46bn impairment of mining assets related to UraMin acquisition in 2007 €800m of provisions for contingencies and expenses likely to result in future Revenue > €8.9bn cash outflows (including €150m related to the OL3 project) €100m of impairment of non-current > €890m assets related to industrial facilities EBITDA (capacity utilization outlook revised > €240m downwards) *Excl. Siemens effects > - €1.8bn Free operating **Excl. Siemens effects cash flow Operating income between > -€2.9bn -€1.4bn and -€1.6bn Constant consolidation scope * €648m penalty from Siemens ** €648m penalty from Siemens and acquisition of AREVA NP shares for €1,679m AREVA – Credit Roadshow – January 11, 12 & 13, 2012 – p.6
AREVA current ownership structure Free float 4% Total French Atomic Energy Research Organization, public EDF Credit Agricole S.A. body established in 1945 CEA Active in three main fields : Energy, information and health technologies, defense and national security Framépargne* By law, CEA must retain the majority of AREVA’s 73% 0,2% 2,2% KIA capital 0,9% 4,8% €3.4bn annual spending (2007) CDC 0,9% 3,3% French State French financial organization created in 1816, part of 10,2% the Government institutions under the control of the Parliament CDC Invests in long-term projects to serve France’s public interests and economic development; supports 3,3% public policies, companies and local authorities AAA/Aaa with a consolidated balance sheet of €221bn 73% CEA Kuwait Investment Authority entered AREVA’s capital KIA in December, 2010. Total French State: 87% KIA took a 4,8% share in AREVA’s capital for €600m, along with the French State which took another 4,8% (CEA + French State + CDC) €300m share. Note: Shareholding structure as at 30/06/2011 * Employees’ shareholding in AREVA AREVA latest financial results AREVA – Credit Roadshow – January 11, 12 & 13, 2012 – p.7
Introduction Market outlook Positioning and strategy Performance plan Financial outlook Conclusion AREVA – Credit Roadshow – January 11, 12 & 13, 2012 – p.8
Energy market: continued growth announced Macroeconomics Geopolitics Resources Environment Economics Energy demand GHG emissions cut Limitation of fossil tCO 2 tep tep $ 2011 /barrel of oil Barils multiplied by 2 by half by 2050 Production in barrels of oil resources by 2050 1 00 CO 2 price 1 75 x2 1 50 75 Fuel +70% +60% price 1 25 x2 BUSINESS AS USUAL 1 00 +6% 50 75 Reference BUSINESS BUSINESS case 50 AS USUAL AS USUAL 25 25 450ppm SCENARIO 0 0 Nat. gas Nuclear Coal 1970 1990 2010 1990 2010 2030 2050 1990 1990 2010 2010 2030 2030 2050 2050 CCGT 1990 2010 2030 2050 Energy independance and GHG emissions: goal= 50% Ineluctable decline of Energy demand: Energy cost, stability, security of supply reduction by 2050 fossile resources + x2 by 2050 predictability pressure on prices Source: IEA ETP: reference scenario 2010 - UNFCC, CERA 2009 2011 WEO +1.3% / year Global primary demand in energy* 2009 – 2035 Scenario +2.1% / year Demand in nuclear energy* Demand in renewable energies* +2.5% / year * Billions of toe AREVA – Credit Roadshow – January 11, 12 & 13, 2012 – p.9
AREVA positioned on markets fulfilling global challenges requirements Global energy mix Global energy mix Billions of metric tons of oil equivalent / year Meets global challenges requirements Energy x 2 demand Energy efficiency and storage 12,3 Renewables 1,6 CO 2 emissions / 2 Nuclear 0,7 Natural gas 2,6 Oil 4,1 Fossil resources Coal 3,3 2008* Post 2011 *Source : World Energy Outlook AREVA – Credit Roadshow – January 11, 12 & 13, 2012 – p.10
Japan and Germany update Germany update : Japan update : Germany update : Japan update : � Decision to phase out nuclear power after the March 2011 events � Situation as of December 12, 2011 � In 2010, 17 reactors supplied 23% of the country's electricity � Extremely complex and costly electrical � In 2011 : immediate shutdown of 8 reactors supply and gradual phase-out of 9 reactors from 2015 � 45 reactors shut down to 2022 � Construction for 2 reactors stopped � Acceleration of the renewable energies program � Growing resort to coal and to imported gas / � 2012 outlook predictable increase of CO 2 emissions � Debate on energy policy should confirm � Situation of power utilities nuclear program � Estimated operating losses due to the � Complementary safety tests: prerequisits to immediate shut-down of 8 reactors*: €22bn the restart of reactors in second half of 2012 � Job cuts (ex: E.ON up to 11,000 people) and � Update on Fukushima-Daiichi situation: announced reorganizations after the exit of the emergency phase, � Need to operate the facilities until their end-of- decontamination of the site lifecycle and to implement a dismantling strategy Germany: Japan: 6 % of AREVA’s backlog 12 % of AREVA’s backlog *Source: LBBW bank – estimated data for E.On, RWE, EnBW, Vattenfall AREVA – Credit Roadshow – January 11, 12 & 13, 2012 – p.11
Major nuclear programs are confirmed Program for new nuclear reactors abandoned Nuclear programs / projects confirmed New builds program frozen / halted Gradual phase out of nuclear and / or plants shut down AREVA – Credit Roadshow – January 11, 12 & 13, 2012 – p.12
Nuclear scenario: installed capacity growth will be delayed AREVA 2011 scenario (GWe) Change in global installed base (GWe) AREVA 2011 scenario (GWe) Change in global installed base (GWe) 583 600 Reassessed as of end June 2011 AREVA 2010 scenario 650 450 304 378 AREVA New builds 300 projects are 2011 scenario postponed 500 (258) 159 150 Incl. 60% in Asia 0 350 2010 Plants shut Life New builds 2030 0 2 4 6 8 0 2 4 6 8 0 1 1 1 1 1 2 2 2 2 2 3 0 0 0 0 0 0 0 0 0 0 0 down extensions 2 2 2 2 2 2 2 2 2 2 2 AREVA (262) 190 393 659 2010 scenario Growth in installed capacity: +2.2% per year on average until 2030 AREVA – Credit Roadshow – January 11, 12 & 13, 2012 – p.13
Introduction Market outlook Positioning and strategy Performance plan Financial outlook Conclusion AREVA – Credit Roadshow – January 11, 12 & 13, 2012 – p.14
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