AREVA SA and NEW CO roadmaps

Transcription

1 AREVA SA and NEW CO roadmaps Philippe Knoche, Chief Executive Officer Stéphane Lhopiteau, Chief Financial Officer June 15, 2016

2 Disclaimer (1/2) By attending the meeting during which the presentation was made, or by reading this presentation, you agree to be bound by the following limitations and restrictions. This document was prepared by AREVA exclusively for the purposes of the " roadmaps" meeting, which will be held on June 15, AREVA's operations, financial situation and results, as well as the risk factors related to it, are described in the AREVA Reference Document, which was filed with the Autorité des marchés financiers (AMF) on April 12, 2016 under number D (the Reference Document), which is available on the AMF website ( and on the AREVA website ( This document does not constitute a prospectus under the meaning of the directive 2003/71/EC of November 4, This document does not contain, does not constitute, is not part of and should not be considered as an offer, an invitation or a solicitation for an investment in financial securities in France, the United States or any other jurisdiction. Any offer of AREVA's financial securities may only be made by virtue of offering documents specifically prepared for that purpose. Any investment decision should be made only on the basis of offering documents specifically prepared for that purpose. This document has not been authorized or approved by any regulatory authority. AREVA's financial securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the Securities Act) and may be offered, sold or subscribed in the United States only in the framework of an exemption or a transaction not subject to the registration requirements of the Securities Act. AREVA has no intention of registering all or part of an offer in the United States or of carrying out an offer of financial securities in the United States. The distribution of this document and of the information it contains may be the subject of legal restrictions in other countries. Persons who might come into possession of it must inquire as to the existence of such restrictions and comply with them. Any breach of these restrictions is liable to constitute a violation of applicable rules in the countries concerned. AREVA assumes no responsibility as regards a violation of these restrictions. This document only includes summary information and is not intended to be exhaustive. The information contained in this document has not been verified independently. No warranty, express or implied, is given as to, and you should not go by, the fair presentation, exactness, exhaustiveness or veracity of the information or opinions contained in this document. AREVA and its associates and their respective executives, officers, employees and counsel shall not be held responsible in any manner (for negligence or otherwise) for a loss of any kind resulting from the use of this document or of its content, or related in any way to this document. Roadmaps June 15, 2016 p.2

3 Disclaimer (2/2) Subject to what is expressly indicated in this document, the information contained in this document is given as of the date of said document. The information contained in this document may be updated, revised, verified or amended without notice and may be significantly modified. AREVA and its affiliates together with their respective executives, officers, employees and counsel are under no obligation to update or keep up-to-date the information contained in this document or to communicate or provide to persons who have received this document additional or supplemental information in this regard. The opinions expressed in this document may be modified without notice. The information contained in this document should not be considered as warranties as to the future development of AREVA's operations, financial situation or results. The market data and certain forecasts included in the presentation were derived from studies, estimates and reports as needed, and from external market studies, public information and publications on the industry concerned. AREVA and its associates together with their respective executives, officers, employees and counsel have not independently verified the veracity of this market data and these forecasts, and no warranty is given in this regard. These data and forecasts are provided for information only. Some of the information included in the presentation and other information published or that will be published by AREVA is not historical fact but forwardlooking information. This forward-looking information refers to the future prospects, developments and commercial strategies of AREVA and is based on an analysis of future result forecasts and estimates of amounts that cannot yet be determined. By nature, the forward-looking information includes risks and uncertainties insofar as they refer to events and depend on circumstances that may or may not occur in the future. AREVA draws your attention to the fact that the forward-looking information does not constitute warranties as to AREVA's future performance and financial situation, AREVA's results and cash flows, and that the development of the industrial segment in which AREVA operates may differ significantly from forward-looking information mentioned in this document. Moreover, even if AREVA's financial situation, results and cash flows and the development of the industrial segment in which AREVA operates are consistent with the forward-looking information mentioned in this document, these items might not be representative of results or developments of later periods. AREVA makes no commitment to revise or confirm the forecasts and estimates of analysts or to make public any revision of forward-looking information in order to reflect the events or circumstances that might occur subsequent to the date of this document, valid only on June 15, These risks and uncertainties include the risk factors described in chapter 4 of the Reference Document. This document is a free translation into English from the original, which was prepared in French, and is provided solely for the convenience of English speaking readers. Whilst every effort has been made to ensure that the English version is a faithful and accurate translation of the French text, in all matters of interpretation of information, views or opinions expressed therein, the French version takes precedence over this translation. Roadmaps June 15, 2016 p.3

4 Confirmation of the capital restructuring plan The group s capital restructuring has begun, in line with the communication of February 26, 2016: Proposed sale of AREVA NP, Canberra and AREVA TA Proposed creation of a new, more profitable, less risky company focused on fuel cycle operations Rebuilding of financial strength through capital increases (a) and proceeds from asset sales (a) Subject to approval by the European Commission Roadmaps June 15, 2016 p.4

5 Our roadmap for returning to the path of profitability and cash flow generation Strategic refocusing Scope redefinition: plan to create a specific entity, currently called NEW CO", refocused on the Mining, Front End and Back End businesses, and withdrawal from AREVA NP, AREVA TA, Canberra and Renewables Strengthening of the balance sheet: plan for capital increases (a) for AREVA SA and NEW CO in the total amount of 5 billion euros and proceeds from planned asset sales NEW CO outlook Market: a growing nuclear segment in the medium term related to rising demand for electricity, particularly in Asia, where the nuclear fuel cycle industry is developing, offering opportunities in the Front End and the Back End Assets: a player with solid market positions, technology leadership, strong innovation capabilities and industrial high-performance, enabling it to capture any market recovery (a) Subject to approval by the European Commission Roadmaps June 15, 2016 p.5

6 STRATEGIC REFOCUSING Detailed roadmap and implementation Roadmaps June 15, 2016 p.6

7 Scope redefinition: creation of NEW CO entity, refocused on the nuclear fuel cycle Mining Front End Back End Corporate and other operations Operations sold, discontinued or held for sale Mining Chemistry / Enrichment Recycling Corporate AREVA NP, excluding OL3 project (Reactors & Services, Fuel) International projects AREVA Med Canberra (Nuclear Measurements) Dismantling & Services Fuel cycle engineering AREVA TA (Propulsion and Research Reactors) NEW CO Logistics OL3 project Renewable Energies AREVA Roadmaps June 15, 2016 p.7

8 Scope redefinition: summary of pre-transaction capital structure OTHER SHAREHOLDERS FRENCH STATE, CEA & BPI 13.5% 86.5% AREVA SA 83.6% 100% 100% 100% 100% 100% AREVA TA AREVA ENR AREVA NP including OL3 AREVA NC (FRONT END & BACK END) AREVA MINES OTHER SUBSIDIARIES 100% (b) Sale of Canberra planned before contributions to NEW CO CANBERRA (b) Roadmaps June 15, 2016 p.8

9 Scope redefinition: creation of NEW CO through a transfer of operations OTHER SHAREHOLDERS FRENCH STATE, CEA & BPI 13.5% 86.5% AREVA SA 100% NEW CO 83.6% 100% 100% 100% 100% 100% AREVA TA AREVA ENR AREVA NP including OL3 AREVA NC (FRONT END & BACK END) AREVA MINES OTHER SUBSIDIARIES Roadmaps June 15, 2016 p.9

10 Scope redefinition: debt transfer simultaneous with assets transfer (c) AREVA SA NEW CO AREVA NC (FRONT & BACK END) AREVA MINES OTHER SUBSIDIARIES SHARE OF DEBT AREVA TA AREVA ENR AREVA NP including OL3 SHARE OF DEBT (c) Subject to consultation of Employee Representative Bodies Roadmaps June 15, 2016 p.10

11 Scope redefinition: debt allocation would depend on several factors Repayment capability of both entities Valuation of operations contributed to NEW CO Consent of creditors concerned Allocation of capital increases (a) Ultimate control of the French State upheld Interdependence with debt allocation (a) Subject to the approval of the European Commission Roadmaps June 15, 2016 p.11

12 Scope redefinition: 2 capital increases to recapitalize AREVA SA and give NEW CO a strong balance sheet in line with its ambitions Capital increases in the total amount of 5 bn (a) AREVA SA NEW CO AREVA TA AREVA NC (FRONT & BACK END) AREVA ENR AREVA MINES AREVA NP including OL3 OTHER SUBSIDIARIES SHARE OF DEBT SHARE OF DEBT (a) Subject to approval by the European Commission Roadmaps June 15, 2016 p.12

13 Scope redefinition: arrival of strategic investors in NEW CO OTHER SHAREHOLDERS FRENCH STATE, CEA & BPI a STRATEGIC INVESTORS a b a + b 67% % % 0-33% AREVA SA b NEW CO 83.6% 100% 100% 100% 100% 100% AREVA TA AREVA ENR AREVA NP including OL3 AREVA NC (FRONT END & BACK END) AREVA MINES OTHER SUBSIDIARIES Roadmaps June 15, 2016 p.13

14 Scope redefinition: excluding NEW CO, proposed sale of all operations connected with AREVA SA (except OL3) OTHER SHAREHOLDERS FRENCH STATE, CEA & BPI STRATEGIC INVESTORS AREVA SA NEW CO OL3 project (option A or B) 15%-25% 100% 100% 100% AREVA TA AREVA ENR NEW NP (d) AREVA NC (FRONT END & BACK END) AREVA MINES OTHER SUBSIDIARIES AREVA SA, or its subsidiary, will ensure the successful completion of the OL3 project, with personnel continuing to be fully mobilized, in compliance with contractual obligations (d) NEW NP: AREVA NP operations, excluding the OL3 project Roadmaps June 15, 2016 p.14

15 Scope redefinition: proposed sale of AREVA NP or its operations On January 27, 2016, convergence between AREVA and EDF concerning the sale of AREVA NP: EDF offer which puts the value of 100% of the share capital at 2.5 bn Price supplement mechanism as a function of AREVA NP s performances Work in progress mainly on two main subjects: o o Implementation of a legal framework that would allow AREVA NP to be sold with no exposure to the buyers (EDF and third-party investors) to the OL3 project, in compliance with contractual obligations to TVO: Option A: transfer of the OL3 contract from AREVA NP to AREVA SA, with TVO s consent and mechanism for subcontracting to AREVA NP Option B: transfer of AREVA NP s operations to an ad hoc structure sold to buyers, except for the OL3 project and the necessary resources for its completion Handling of potential consequences associated with the results of the quality audit conducted in the equipment manufacturing plants Sale subject to the acceptability of the Flamanville 3 reactor vessel Targeted closing of the transaction: before the end of 2017 Roadmaps June 15, 2016 p.15

16 Scope redefinition: plans to sell Canberra, AREVA TA and to withdraw from the Solar and Bioenergy operations Asset sales for a total cash amount of 400m to 500m, including: Canberra: closing planned for the 2 nd half of 2016 AREVA TA: closing planned for late 2016 / early 2017 Adwen : discussions with our partner Gamesa End of remaining renewable energies operations Solar energy: end of AREVA's operational involvement in solar operations in March 2016 Bioenergy: decision made to cease operations as soon as projects in progress in France and Asia have been completed (summer of 2016) Roadmaps June 15, 2016 p.16

17 Target schedule Q H Transactions on share capital Creation of NEW CO subsidiary and transfer of part of debt Capital increases (a) for AREVA SA and NEW CO European Commission Discussions of the French authorities with the European Commission New NP sale Structuring and, if appropriate, carving out of NEW NP Sale of NEW NP (e) Asset sales Closing of Canberra sale Closing of AREVA TA sale (a) Subject to approval by the European Commission (e) Subject to the conditions mentioned on slide 15 Roadmaps June 15, 2016 p.17

18 Strengthening of the balance sheet: resources scaled to financing requirements for Plan for capital increases (a) : Repayment of debt 2.9 Commitment from the State to ensure its full success Interest on debt Discussions underway with strategic partners Net cash flow from NEW CO operations 1.1 Net cash flow from other company operations (including the completion of the OL3 project) Sensitivity factors of NEW CO and proceeds from sales (f) Requirements 2.9 Resources Proceeds from sales: AREVA NP Canberra, AREVA TA and others (a) Subject to approval by the European Commission Roadmaps June 15, 2016 p.18 (f) See slide 46

19 Scope redefinition: target structure at the end of the transactions OTHER SHAREHOLDERS FRENCH STATE, CEA & BPI a STRATEGIC INVESTORS a b a + b 67% % % 0-33% AREVA SA b NEW CO OL3 project (g) (option A or B) 15%-25% 100% 100% 100% NEW NP (d) AREVA NC (FRONT END & BACK END) AREVA MINES OTHER SUBSIDIARIES (g) AREVA SA, or its subsidiary, will ensure the successful completion of the OL3 project, with personnel continuing to be fully mobilized, in compliance with contractual obligations (d) NEW NP: AREVA NP operations, excluding the OL3 project Roadmaps June 15, 2016 p.19

20 AREVA SA would be configured to meet its commitments Mission AREVA SA, or its subsidiary, would ensure the completion of the OL3 project, for which the teams remain fully mobilized, with the necessary resources Finalize the remaining renewables projects Support the ongoing asset sales processes Balance sheet Strengthened capital structure, partly from the capital increase (a) and partly from processes from asset sales in progress In a position to repay debt on time and to meet its obligations Minority interest in NEW CO Shareholders In connection with the finalization of transactions to redefine the scope of AREVA SA, the French State ensures that minority shareholder rights under stock market regulations are respected (a) Subject to approval by the European Commission Roadmaps June 15, 2016 p.20

21 NEW CO would bring together the fuel cycle operations Strategic process Combine the nuclear fuel cycle operations (Mining, Front end, Back end) Take advantage of any anticipated market recovery, particularly Internationally Balance sheet Entity that would receive part of the capital increase (a), and in a position to repay debt on time Entity aiming to secure financing in the markets starting 2019 / 2020 With 15% to 25% of the share capital of AREVA NP or NEW NP, depending on the sale option chosen Shareholders More financially solid structure to allow the entry of third-party investors / strategic partners into the share capital in 2017 Majority held by the French State, directly or via AREVA SA (a) Subject to approval by the European Commission Roadmaps June 15, 2016 p.21

22 ON THE PATH TO PROFITABILITY AND CASH FLOW GENERATION NEW CO: OUTLOOK Roadmaps June 15, 2016 p.22

23 Our ambition: use the value in nuclear materials for development Our AMBITION Be the leading player in nuclear fuel cycle operations Develop and capture opportunities offering customers innovative solutions and technologies that meet their challenges Create value with unique assets competitively and profitably... Consolidate our fundamentals to serve the French and international nuclear industry Roadmaps June 15, 2016 p.23

24 Our ambition is based on distinctive assets and a clear strategic roadmap Develop and capture opportunities Consolidate our fundamentals Safety culture Business model resilience Backlog visibility Performance plan Create value with unique assets Crosscutting drivers Strong position in its markets Engineering and risk management Talent and expertise Global customer solutions Business drivers New industrial capacities Leading-edge technologies Partnerships in growth markets, particularly in Asia Innovation (technological and commercial) Roadmaps June 15, 2016 p.24

25 Roadmaps June 15, 2016 p.25 Consolidating our foundations

26 Scope of NEW CO operations Mining Front End Back End Corporate and other operations Operations sold, discontinued or held for sale Mining Chemistry / Enrichment Recycling Corporate AREVA NP, excluding OL3 project (Reactors & Services, Fuel) International projects AREVA Med Canberra (Nuclear Measurements) Dismantling & Services Fuel cycle engineering AREVA TA (Propulsion and Research Reactors) NEW CO Logistics OL3 project Renewable Energies Future AREVA Roadmaps June 15, 2016 p.26

27 A resilient business model founded on the installed base and on the growth of the fleet Nuclear generating capacity destined to grow both in the Front End and the Back End (GW) Projected nuclear generating capacity by The increased number of reactors in operation generates growth in: % p.a. New power plants Existing nuclear plants The Mining and Front End markets (demand for Uranium, Conversion and Enrichment) Markets in the Back End of the cycle (used fuel management, logistics) The closure of power plants also generates business for NEW CO in the Back End operations (dismantling, logistics, waste management ) Source: WNA Roadmaps June 15, 2016 p.27

28 A balanced revenue profile by business and by region 2015 revenue by business 2015 revenue by region Mining 35% France: 40% Europe outside France 16% Front End 26% North & South America 20% 2% 22% Asia-Pacific Back End 38% Africa and Middle East Roadmaps June 15, 2016 p.28

29 A strong backlog offering 8 years of visibility Backlog by business (h) ( bn) Backlog (h) by customer Mining 10.1 Other clients Front End 11.5 Back End 11.7 Total backlog (h) : 33.6bn Client 6 Client 5 Client 4 Client 3 2% 2% 3% 6% 25% 8% 54% Client 1 Client 2 (h) As of March 31, 2016 Roadmaps June 15, 2016 p.29

30 An ambitious performance plan supported by tangible results and an operational excellence program New savings identified to meet the cost reduction objective of 500m for NEW CO 1, m 50% IFRS5 Identified Secured In place m m % NEW CO Achieved 2015 (i) (i) (i) (i) Data as of December 31, 2015 ajusted from the cycle engineering, transfered from AREVA NP to NEW CO Roadmaps June 15, 2016 p.30 Objective 2018

31 Safety and Security, indelible components of our DNA Maintaining the highest level of safety in products, facilities, operations and solutions Ensure the safety of employees and subcontractors Operational excellence initiative incorporating best practices identified and deployed by WANO Widespread deployment of the Safety Excellence program to strengthen skills in operational risk management A safety level above the best international standards Industrial accidents reduced 30% since 2012 through the Safe Together program One goal: to be among the world's best companies in the chemistry sector Nuclear safety (j) Occupational safety (j) Roadmaps June 15, 2016 p (j) NEW CO scope only INES events Level 0 Level 1 Level FR1 (number of AREVA accidents with lost time) Industry benchmark Chemistry benchmark

32 Roadmaps June 15, 2016 p.32 Creating value with differentiating drivers Crosscutting drivers

33 OTHER NEW CO is in the top 3 worldwide in each of its businesses (1) MINING Natural uranium #3 ~15% (2) FRONT END Conversion #2 ~20% (3) Enrichment #3 ~15% (3) Treatment and Recycling #1 ~70% (4) BACK END #1 Storage ~30% (5) Holtec, NAC, GNS #1 Logistics services ~20% GEODIS, Daher, AUAM, RSB, Edlow Dismantling n.a. Highly fragmented market (1) Global market share estimated by AREVA (2) In proportion to available share (3) In proportion to installed capacity (4) In the light water reactor fuel market (LWR) (5) In the dry storage market (excluding Russia) Roadmaps June 15, 2016 p.33

34 Proven engineering expertise whose operational excellence ensures risk management 40 years of operating experience in the design and construction of complex projects and in support for the operation of major sites (modifications, adaptations, shutdown, dismantling scenarios, etc.) LA HAGUE: three generations of nuclear fuel recycling plants A wide range of solutions, including consulting services, engineering studies, construction and testing, turnkey projects and a variety of other services Georges Besse II: latest generation enrichment plant at the Tricastin site Operational excellence > 90% OTD for the past 2 years > at the benchmark of the category Recognized skills in international project management and execution MFFF: MOX Fuel Fabrication Facility in the US ROKKASHO-MURA: fuel recycling plant in Japan patterned after La Hague Roadmaps June 15, 2016 p.34

35 A new dynamics and human assets for performance Sustained pace of internal transformations Mobilization of human potential Drastic organizational simplification (elimination of hierarchical level - BBZ approach to support functions) Steady reduction (5 to 6% / year) of personnel costs Development of an industrial vision for NEW CO 2025 shared at every level of the company Refocusing of the People Reviews on replacement plans, key jobs and talents Promotion of a culture of "change-makers" (training and learning network for young managers) Greater selectivity and requirements for setting objectives and assigning variable components Strengthening of economic criteria for activating collective incentive-based profit-sharing From skills management to cultural transformation Social dialogue Network of high-level technical experts (> 1,100) System for monitoring and renewing critical skills Deployment of digitalization Launch of "simplification of internal operations" projects Generalization of operational excellence and continuous improvement in A common base of managerial values and related rules for compliance Promotion of social dialogue in conducting change (2015 Employment Agreement) Strengthening of prevention systems for occupational risk and occupational stress Low levels of absenteeism and accidents Roadmaps June 15, 2016 p.35

36 Roadmaps June 15, 2016 p.36 Creating value with differentiating drivers Business drivers

37 Enrichment (in $/SWU) Conversion (in $/kg) Uranium (in $/lb. U3O8) Market recovery expected in the front end of the fuel cycle Market deterioration since Drop in economic demand in a post- Fukushima environment, especially in Japan; wait-and-see position of buyers Build-up of inventories linked in particular to opportunistic buying behaviors Historical data Forecasts (k) Low production elasticity due to long investment cycles and the cost structure of assets... recovery expected Demand supported by increased Chinese requirements and by the upcoming restart of the Japanese fleet Need for new capacity in the medium term, particularly in Uranium Spot Long term (k) UxC - Market 2015 (Uranium Composite Midpoint, Conversion EU Mid Midpoint scenario, Enrichment Mid Midpoint ) Roadmaps June 15, 2016 p.37

38 In Mining, a rich and diversified portfolio of assets and projects A diversified and competitive portfolio of mining assets Strong growth potential Operating mines representing a combined capacity of 20.9K MTU/year (l) A successfully renewed portfolio: Cigar Lake brought into production in 2015 (production higher than forecasts) CANADA 2 mines (operated by Cameco) 1 plant (operated by AREVA) MC ARTHUR AREVA share: 30.2% CIGAR LAKE AREVA share: 37.1% NIGER 2 mines and 2 plants (operated by AREVA) SOMAIR AREVA share (JV): 63.4% AREVA share (Conso): 100% COMINAK AREVA share: 34% KAZAKSTAN 1 mine and 1 plant (operated by AREVA) KATCO AREVA share (JV): 51% AREVA share (Conso): 100% A promising and geographically diversified project portfolio (Canada, Niger, Kazakhstan, Mongolia ) Some of the most effective teams of geologists and mining techniques Producing mines Operating Projects Exploration (l) including 11K MTU consolidated in AREVA's share Roadmaps June 15, 2016 p.38

39 Mining, a profitable business that generates cash flow Outlook for the Mining business over the period Backlog covering nearly 80% of sales, expected to be stable in relation to 2015, with limited market price exposure during that period Stable production volumes over the period EBITDA margin maintained at a high level of around 40% Annual investment budget down over the short term in relation to the period, then rising at the end of the period 80% of sales covered by the backlog 40% EBITDA margin Post-2020 outlook for the Mining business Market dynamics and prices upheld by the growth of the global nuclear fleet Need to open new mines in the medium term, based on market conditions Roadmaps June 15, 2016 p.39

40 In the Front End, industrial assets meeting highest safety and performance standards Chemistry / Conversion Enrichment Chemistry / conversion represented 19% of revenue in the Front End in 2015 CXII plant nearing completion (phase 1 completed at Malvési, end of construction at Pierrelatte in 2018) Enrichment represented 81% of revenue in the Front End in 2015 GB II plant operational (capacity of 7.5 million SWU reached in 2016) A high-performance chemical process that reduces environmental impacts Illustration: reduction (m) of the consumption of nitric acid -75% Ultracentrifugation, a benchmark enrichment technology 50% held by AREVA (ETC subsidiary) ensuring optimum operating costs of ammonia -66% (m) In relation to CXI Roadmaps June 15, 2016 p.40

41 In the Front End, gradual return to cash flow generation with the end of massive investments Outlook for the Front End business over the period Backlog covering close to 80% of sales for the period Revenue of 950m to 1 bn, consistent with the expected outflow of backlog EBITDA margin maintained at a high level of around 25%, with a significant low point in 2018 due to the Comurhex I / Comurhex II transition Sharp downturn in the capital expenditure program after % of sales covered by the backlog 25% EBITDA margin Post 2020 outlook for the Front End business Growth of business and prices, led by the growth of the global reactor fleet Advantage of having new, high-performance industrial plants Roadmaps June 15, 2016 p.41

42 New opportunities in the Back End to meet the challenges of the end of the cycle Growing inventory of used fuel Sharply rising number of reactors to be dismantled kthm Used LWR fuel inventory +70% Annual amount of used LWR fuel unloaded kthm/year % 2030 Cumulative nuclear capacity withdrawn by region (GW) United States Western Europe Eastern Europe Russia Japan Rest of world Rest of world Asia Russia & CIS Europe North America Source: IEA World Energy Outlook 2015, New Policy Scenario Roadmaps June 15, 2016 p.42

43 Unique assets in the Back End to capture market opportunities Recycling Logistics Dismantling La Hague and Melox: only plants in the world to operate at a very large industrial scale Only player to provide all logistics services (multi-modal transportation, casks, storage ) Recognized skills in engineering, project management and work in highly radioactive environments Unrivalled experience in the design and operation of nuclear fuel cycle industrial sites Very high added-value expertise in fuel cycle logistics and waste management Unique know-how deployed at the group's industrial sites (La Hague ) at customer sites (CEA and EDF) Prospects for partnership with China and Japan, which have made a strategic choice in favor of the close cycle Growth areas in Europe and the EU, prospects for partnership in the UK Roadmaps June 15, 2016 p.43

44 In the Back End, a profitable growth, led by developing markets, particularly in Asia Outlook for the Back End business over the period Operations ensured by long-term contracts in France and by a backlog representing close to 70% of sales over the period Average sales growth over the period of more than 5% / year, led by Asia (China and Japan) and by the United Kingdom and the United States EBITDA margin improvement of more than 15% in 2020, due in particular to exports More significant future investment cycles, but largely financed by customers ~ 70% of sales (n) covered by the backlog >15% EBITDA margin Post-2020 outlook for the Back End business Business growth and increased profitability linked to the ability to win international contracts (n) Excluding Dismantling and services sales with a short-cycled business model Roadmaps June 15, 2016 p.44

45 Roadmaps June 15, 2016 p.45 Sensitivity factors

46 Sensitivity of NEW CO s cash generation to key assumptions Economic assumptions that could impact net cash flow from company operations EUR / USD exchange rate: sensitivity cushioned by currency hedges period: +/- 10 cents impacts the financial trajectory by +/- 40 m period: +/- 10 cents impacts the financial trajectory by +/- 220 m Natural uranium price: sensitivity cushioned by the backlog period: +/- 5 USD / lb. impacts the financial trajectory by +/- 20 m period: +/- 5 USD / lb. impacts the financial trajectory by +/- 220 m SWU price: sensitivity cushioned by the backlog period: +/- 5 USD / SWU impacts the financial trajectory by +/- 20 m period: +/- 5 USD / SWU impacts the financial trajectory by +/- 90 m Specific strategic assumptions that could impact net cash flow from company operations Export business in the Back End: projects in Asia, signature of new contracts End-of-lifecycle obligations: sensitivity to interest rates, regulations, advances in technology Installed base safety: strengthening of safety measures by all industry players, reputation risks Successful legal and financial restructuring Asset sale prices Country risk Roadmaps June 15, 2016 p.46

47 Roadmaps June 15, 2016 p.47 Capturing opportunities

48 Asia is a major focus of NEW CO s strategy, with major growth opportunities Growth perspectives Major plan for nuclear capacity build-up (>130GW by 2030), driven by electricity consumption growth and CO2 emission reduction objectives NEW CO key strengths Strategic partnership with CNNC, China s leader on nuclear fuel cycle development Relevance of NEW CO s operator experience and technologies to support CNNC in building and ramping-up China s nuclear cycle capacities at the highest level of environmental standards Positive dynamic of Japanese nuclear reactors re-start, supported by a strong political will to keep nuclear as a major electricity supply in Japan electricity mix Nuclear capacity planned to increase by 70% up to 37 GWe by 2029 Historic relationship with Japanese Utilities (40 years), in particular through technological support to JNFL closed fuel cycle s industrial operations (Rokkasho- Mura) Long-term collaboration in Front-End and MOX activities ; industrial opportunities in Dismantling and Decommissioning operations Strong relationship with KEPCO/KHNP, key customer and partner of NEW CO Roadmaps June 15, 2016 p.48

49 NEW CO can capitalize on strong and demonstrated innovation capability Opening up new markets with technology innovations Illustration in recycling TCP AREVA Med is an innovation with major potential in cancer treatments Created in 2009, AREVA Med's operations are concentrated in the development of new cancer therapies, in particular alpha therapy based on 212 Pb (lead-212) Development of an innovative 212 Pb extraction process, and construction of the world's first laboratory dedicated to the production of highly pure 212 Pb Industrial solution for treating special used fuels (fresh and used MOX fuel, used research reactor fuel ) High added value for customers, facilitating financing through customer advances AREVA Med has 2 production sites: LMT in Vienne, France since 2013 DDPU in Texas, USA since 2016 Roadmaps June 15, 2016 p.49

50 Roadmaps June 15, 2016 p.50 Conclusion

51 A group refocused on the fuel cycle, ready to capture market opportunities Unique position on the fuel cycle, anchored in proven technologies and backed by innovation capabilities International presence with solid partnerships, to be a leading player in the nuclear industry s development, particularly in Asia Operating resilience, with a backlog representing the equivalent of 8 years of revenue Improved profitability through an ambitious performance plan and by refocusing on comprehensive, well-managed operations ratio of EBITDA to revenue of 25% ratio of EBIT to revenue of more than 10% targeted in 2020 Strengthened cash generation thanks to a renewed industrial base and plants capable of operating on a very large scale Roadmaps June 15, 2016 p.51

52 Roadmaps June 15, 2016 p.52 Questions & Answers

53 AREVA SA and NEW CO roadmaps June 15, 2016