La Hague visit Jean-Michel Romary, Vice Deputy Director, La Hague plant Marie de Scorbiac, Investor Relations Thursday, May 20, 2010
Content ► Introduction to AREVA ► Overview of the Back-end Business Group ► La Hague site presentation La Hague visit – AREVA – May 20, 2010 – p.2
AREVA is a global leader in solutions for CO 2 -free power generation Mining Chemistry Nuclear and Renewables Nuclear and Renewables key figures in 2009 key figures in 2009 Site Value Development €43.3Bn backlog Business model based on the integration in the entire €8,529M sales Enrichment Uranium and Reactor value chains Recycling €647M op. income* 44,817 people Fuel Fabrication Services Reactors Wind Solar Hydrogen & Development of a portfolio storage Bioenergy of renewable solutions * Excluding OL3 provision of €550M recorded in H1 2009 La Hague visit – AREVA – May 20, 2010 – p.3
AREVA will report under Business Groups * in 2010 Before Back-End Reactors & Services Division 2010 Front-End Division Division Divisions BG Renewable BG Reactors BG Mining / Front-End BG Back-End Energies & Services • Mining : Uranium mines exploration and operation Strating activities in 2010 Business • Front-End : • Design and • Development of • Recycling of the Groups Conversion and construction of wind energy, bio- used fuel and enrichment of the nuclear reactors energy, solar power provider of clean-up uranium and design and hydrogen power and dismantling of the fuel for the • Maintenance and solutions services nuclear reactors modernization of the nuclear power plants * AREVA’s Transmission and Distribution activities (“T&D”) remain an additional Business Group of AREVA until closing of the divestment transaction La Hague visit – AREVA – May 20, 2010 – p.4
AREVA captures growth through its low carbon strategy aligned with world energy challenges Global energy mix Global energy mix Billions of metric tons of oil equivalent / year 18 Energy 17,0 x 1.5 demand 3,4 Renewables 15 1,4 Nuclear 11,7 12 Fossil +3.3%/y 1,5 2,5 Energy efficiency resources 0,7 9 2,4 3,0 Natural gas 6 CO 2 emissions / 2 4,0 4,3 Oil 3 3,1 Our mission: 2,4 Coal 0 Enabling everyone to have 2006 2030 access to even cleaner, safer and more economical energy Source: World Energy Outlook 2008 stabilization 450 ppm” scenario, AREVA La Hague visit – AREVA – May 20, 2010 – p.5
Sustained growth Backlog (€Bn) Revenue (€Bn) 8.5 +29% X 2.5 8.1 42.5 43.3 34.9 7.6 7.1 22.1 6.9 17.6 17.3 6.6 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 Strong visibility and predictability of the business La Hague visit – AREVA – May 20, 2010 – p.6
Confirmed* Strategic Directions for 2012 ► Build 1/3 of the new nuclear generating capacity** ► Secure the fuel cycle for our current and future customers ► Expand our renewable energies offering ► Ensure strong profitable growth in the T&D Division Disposal at 4 times the acquisition price value*** ...while continuously improving our performance in terms of safety and security * Disclosed at the 2007 Annual Results Presentation (26 February 2008) ** In the accessible market *** Transaction to close in 2010 La Hague visit – AREVA – May 20, 2010 – p.7
Confirmed Financial Objectives for 2012 2012 Objectives 2012 Objectives disclosed at the 2007* confirmed in 2010 annual results presentation ► Group Revenue ► Excl. T&D � > to €20bn Revenue of €12bn ► Double-digit ► Confirmed operating margin ► Generating a significantly ► Confirmed positive free operating cash flow * 2007 Annual Results Presentation - 26 February 2008 La Hague visit – AREVA – May 20, 2010 – p.8
Confirmed investment program over 2010-2012 to strengthen AREVA’s leadership AREVA annual CAPEX * Nuclear Energy Nuclear Energy (€Bn) ► Key strategic objectives 3 � Securing access to uranium � Upgrading, renewing and increasing production of key facilities (conversion with CX II; Enrichment 2 with GB II, Eagle Rock ; Equipments facilities) � Completing development and licensing of reactors >2,2 1 1,8 1,3 1,1 1,0 Renewable Energies Renewable Energies 0,5 0 ► Development of existing assets (like 2005 2006 2007 2008 2009 2010 - Multibrid and Ausra) 2012 ► “Opportunistic” approach for external growth on selected markets Investment optimization program bringing the budget down to €6.5Bn vs. €7/8Bn initially planned (at constant program) * Acquisition of property, plants and equipment and intangible assets, Excluding T&D La Hague visit – AREVA – May 20, 2010 – p.9
AREVA secures resources to finance its development ► Selling price: €4 billion Sale of Transmission and Signed Distrib ution (T&D) division ► Capital gains: €1.1 billion 1 ► Sale of financial securities Completed Sale of Total & GDF Suez stakes ► €1 billion of proceeds ► CAP 2012 Program Operating Cash Flow Generation On-going Improvement ► 2009 Savings : €690 million 2 ► Enrichment & Mining projects Sale of Minority stakes in operating On-going ► €500 million of proceeds in 2009 companies ► For strategic & industrial partners On-going Capital increase ► Up to 15% Dispo sal of ERAMET and ► Shares to remain in the public sector Considered STMicroelectronics Notes 1. Closing expected in 2010 2. Of which c.€130M of savings and €570M from Purchasing performance La Hague visit – AREVA – May 20, 2010 – p.10
Content ► Introduction to AREVA ► Overview of the Back-end Business Group ► La Hague site presentation La Hague visit – AREVA – May 20, 2010 – p.11
Back-End BG positioning within AREVA Conversion, Renewable Reactors Transmission BG Mining / Front-End Back End Energies Enrichment & Fuel & Services & Distribution €1,637M sales (2009) 19% of AREVA group sales 11,082 people (2009) • Recycling 23% of AREVA group workforce • Logistics • Nuclear Site Value Development • Clean-up La Hague visit – AREVA – May 20, 2010 – p.12
Back End Business segments overview � A full service of fuel recycling, including Mixed Oxide fuel and Reprocessed Uranium fuel production RECYCLING � Recycling technology and know-how support/assistance � A global offering including: � Design and supply of casks for the transportation and LOGISTICS storage of radioactive materials � Safe and secure transportation and logistics services � Performance-based project management for Dismantling NUCLEAR SITE and Decommissioning (D&D) programs VALUE � Development of integrated and innovative solutions for DEVELOPMENT both AREVA and external customers � Operation of dismantling and waste processing facilities � Specialized nuclear maintenance CLEAN UP � Logistical support for NPPs during operation and outages � Human radioactive protection and monitoring services La Hague visit – AREVA – May 20, 2010 – p.13
Back-End Business: Visibility and Predictability Backlog (€Bn) Revenue (€Bn) EDF contract renewal 7.8 8 6.7 7 6.7 6.4 6.2 5.7 6 5 4 3 1.9 1.9 1.8 2 1.7 1.7 1.6 2 1 1 0 0 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 2009 2009 La Hague visit – AREVA – May 20, 2010 – p.14
Key financials 2006 2007 2008 2009 in millions of euros 6,375 6,202 7,784 6,685 Backlog 1,908 1,738 1,692 1,637 Revenues 272 203 261 235 Operating income % Sales 14% 12% 15% 14% (77) (81) (88) (128) Net Investments 156 172 422 288 Op. FCF before tax The Back End division has shown strong and durable profitability, with an operating margin stable around 15% La Hague visit – AREVA – May 20, 2010 – p.15
A strong industrial base Plant dismantling Recycling ► La Hague ► La Hague First generation Fuel treatment plant dismantling ► MELOX ► Marcoule MOX fuel fabrication UP1 Treatment plant dismantling Fabrication ► Cadarache performed ► Romans MOX plant dismantling by Front RepU fuel fabrication End with ► Tricastin recycled RepU* Enrichment uranium and Conversion supplied by Back End Logistics * Recycled uranium from the treatment of used fuel La Hague visit – AREVA – May 20, 2010 – p.16
Overview of recycling process Nuclear reactor Recycled fuel MOX Reprocessed uranium fuel Used Fuel Waste expedition Long-term Vitrified Waste storage and Compacted Waste disposal La Hague visit – AREVA – May 20, 2010 – p.17
96% of a used fuel assembly is recyclable � Composition of used light water reactor fuel � 1 LWR = 500 kg uranium before irradiation in the reactor Recyclable materials Waste Uranium Plutonium Fission Products After irradiation* 475 to 480 kg 5 kg 15 to 20 kg (94 to 96%) (1%) (3 to 5%) UOX MOX Final Fuel Fuel Waste * Partly dependant on the burn-up rate La Hague visit – AREVA – May 20, 2010 – p.18
The main stages in recycling Treatment operations ( shearing - dissolution - separation - purification) Recycled Fuel Fuel elements U Pu Vitrified residues Ultimate (CSD-V) Waste Unloading Interim Compacted Hulls storage residues and end-pieces (CSD-C) At each stage of the process, nuclear material is accounted for under EURATOM and IAEA safeguards La Hague visit – AREVA – May 20, 2010 – p.19
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