Corporate Strategy Presentation

KAZIM RAZA SYED

ME3 2015-17

To be the leading company in power generation with

less carbon
AREVA intends to grant access to
cleaner, safer and more
economical energy to the greatest
number of people. The group offers
a range of innovative technologies
for producing energy with no
greenhouse gas emissions.

 To

be a major player in the energy

transition

To

build the future of nuclear power, in

order to consolidate its safety and
competitiveness

To

become a European
renewable energies

leader

in

To

pursue our policy of being informative,

open to dialogue and transparent

ACTION

2016, decisive strategic choices

paving the way to the future
3

Mines:
Uranium mines, exploration and operation

Front End:
Uranium conversion and enrichment, nuclear fuel design for nuclear reactors

Reactors and Services:

Design and construction of nuclear reactors and propulsion and research reactors, and
maintenance of nuclear power plants

Back End:
Used nuclear fuel recycling, transportation, clean-up and dismantling services

Renewable Energies:
Wind Energy, Bioenergy, Solar Power and Hydrogen Power solutions

Areva operates worldwide

Areva was created on 3

September 2001, by the merger
of FRAMATOME (now Areva
NP), COGEMA (now Areva
NC) and TECHNICATOME
(now Areva TA)

Framatome and Siemens had been

officially cooperating since 1989 for the
development of the European
Pressurized Reactor (EPR). In 2009,
Siemens sold its remaining shares of
Areva NP

 Strong R&D, increased

safety pushes industry
investment
Generation III &IV Reactor
Few Technological Transfer

High initial investment

Economic austerity
Fluctuating fossil market
prices

POLITICAL

ECONOMIC

Govt. Policies Support

Energy Independence
Political pressure due
to customer

SOCIAL

TECHNOLOGY

Image of nuclear: Atomic bomb!!

Public opposition & Anti-nuclear
associations (Green-peace)
Low Public awareness

Suppliers responsibility
NPT membership
Most industries Statebacked

ENVIRONMENTAL

LEGAL

Low CO2 emission with

stable energy
generation
Nuclear Waste disposal
Post disaster actions

 Market Leader in Nuclear Reactor construction and services

One of the leaders in Nuclear fuel supply.
Design of Generation III European Pressurized Reactor (EPR)

 Presence across full nuclear

value chain
Unrivalled skill base knowhow and ability to offer a wide
range of services to its
customers.
French State backing and
policy towards nuclear sector.
Skilled Manpower
development through
collaboration with worlds
leading research
organizations

Date: March 11, 2011

Earthquake intensity scale: 9
Time for impact of Tsunami wave
on plant = 50 mins
Number of units on Fukushima
Daiichi Plant = 6
Scale on INES = 7
A:Power station buildings B:peak height of tsunami C:Ground
level of site D:average sea level E: Sea Wall to block waves.

Germany and Switzerland cancelled their plans

for replacing their old nuclear power plants.
Germany also decided to deactivate some of its
existing plants.
UK delayed some of its nuclear plans for safety
check.
Italian public also oppose the push for nuclear
revival.
In the US, this disaster halted discussions about
nuclear renaissance.
10

 Total 20 Nuclear reactors closed

down world wide (within 24
months) (Current total number of
reactors = 437)
Price of Uranium dropped from
$130/lb to $50/lb. (FT times)
AREVA share prices fell from
30.68 to 10 within one year.
1500 job cuts in AREVA Germany
and froze hiring elsewhere.
Positive: AREVA involved in
decommissioning activities

Number of new reactor construction per year

AREVA share prices 2011-present

11

 2003, Finland unveils plan to build new

nuclear reactor.
AREVA and Siemens win contract to build
Reactor side and secondary side respectively.
Fixed Price = 3.6 billion ; Capacity = 1.6 GW
Time of completion = 2009
AREVAs first EPR based design

Completion date delayed several times

Project cost have overrun due to delay,
current 5.7 billions
Owner of Plant TVO suing AREVA for project
delay, compensation 2.6 billion for delays.
AREVA back sued plant owner TVO for 1
billion for imposing strict security constraints

12

 AREVA registered losses of 4.8 billion last year

(2014).
AREVA and lectricit de France (EDF) continue their
discussions with a view to the sale of at least 75% of
AREVA NP to EDF.
Following a two-month period of discussion, AREVA
and EDF signed a preliminary memorandum of
understanding on July 29 presenting the principal
terms and conditions of the plan in order to finalize
definitive agreements, once the opinions of the social
authorities of AREVA and EDF have been received.
The objective of the parties is to carry out this
transaction in 2016 once the regulatory authorizations
have been.
AREVA would keep a strategic interest in AREVA NP
of at the most 25%, with which governance rights
would be associated suited to AREVAs status as a
strategic minority shareholder.
Financial bail-out being offered = 2 billion
(approx.)

AREVAs Shareholder structure

13

WIND
POWER

SOLAR

BIOENERGY

HYDROGEN &
ENERGY
STORAGE

14

15

The Nuclear Industry promises to grow with

renewed interest from countries such as China,
U.K, India, Saudi Arabia and more.
AREVA has continued to be a major player in
this sector and has been working towards
exploitation of these opportunity.
Success dependent on effectiveness in selling
its Gen III EPR product.
Utilization of established channels to enter into
new markets based on lower carbon emission
generation.

16