AREVA Presentation Kazim Raza Syed

8/17/2019 AREVA Presentation Kazim Raza Syed

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Corporate Strategy PresentationKAZIM RAZA SYEDME3 2015-17

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Tobetheleadingcompanyinpowergenerationwithlesscarbon

AREVAintendstogranta

cleaner safer and more

economical energy tothe

numberofpeople.Thegr

arangeofinnovative techforproducing energy with

greenhouse gas emission


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To be a major player in the energytransition

To build the future of nuclear power, inorder to consolidate its safety andcompetitiveness

To become a European leader inrenewable energies

To pursue our policy of being informative,open to dialogue and transparent

“ACTION 2016” decisive strategic choices

paving the way to the future


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Mines:Uranium mines, exploration and operation

Front End:Uranium conversion and enrichment, nuclear fuel desig

Reactors and Services:Design and construction of nuclear reactors and propulsion anmaintenance of nuclear power plants

Back End:Used nuclear fuel recycling, transportation, clean-up an

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


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Areva operatesworldwide


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Areva wascreatedon3September2001,bythemergerofFRAMATOME (nowArevaNP),COGEMA (now ArevaNC)andTECHNICATOME

(nowAreva TA)

Framatome andSofficiallycooperatidevelopmentofthPressurizedReacSiemenssolditsr

Areva NP


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PPOLITICAL

EECONOMIC

SSOCIAL

TTECHNOLOGY

EENVIRONMENTAL

• Govt.PoliciesSupport

• EnergyIndependence

• Politicalpressuredue

tocustomer

• Highinitialinvestment

• Economicausterity

• Fluctuatingfossilmarket

prices

• Imageofnuclear:Atomicbomb!!

• Publicopposition&Anti-nuclear

associations(Green-peace)

• LowPublicawareness

• StrongR&D,increased

safetypushesindustry

investment

• GenerationIII&IVReactor

• FewTechnologicalTransfer

• LowCO2emissio

stableenergy

generation

•

NuclearWastedi• Postdisasteracti

• S

• N

• M

b


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• MarketLeaderinNuclearReactorconstructionandservices

• OneoftheleadersinNuclearfuelsupply.

• DesignofGenerationIIIEuropeanPressurizedReactor(EPR)


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• Presenceacrossfullnuclear

valuechain

• Unrivalledskillbaseknow-

howandabilitytoofferawide

rangeofservicestoits

customers.

• FrenchStatebackingand

policytowardsnuclearsector.

• SkilledManpower

developmentthrough

collaborationwithworld’s

leadingresearch

organizations


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Date: March 11, 2011Earthquake intensity scale: 9Time for impact of Tsunami waveon plant = 50 mins

Number of units on FukushimaDaiichi Plant = 6Scale on INES = 7

• Germany and Switzerland ca

for replacing their old nucleaGermany also decided to deaexisting plants.

• UK delayed some of its nuclecheck.

• Italian public also oppose therevival.

• In the US, this disaster haltednuclear renaissance.

A:Pow er stat ion bui ld ings B:pea k he igh

level o f si te D:ave rage sea level E: Sea


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• Total 20 Nuclear reactors closeddown world wide (within 24months) (Current total number ofreactors = 437)

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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

Numb er of new rea c tor co nst ruc t ion per yea r

AREVA sha re p ric es 2011-


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• 2003, Finland unveils plan to build newnuclear 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• AREVA’s first EPR based design

• Completion date delayed several• Project cost have overrun due to

current € 5.7 billions• Owner of Plant TVO suing AREV

delay, compensation € 2.6 billion • AREVA back sued plant owner T

billion for imposing strict securit


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• AREVA registered losses of €4.8 billion last year(2014).

• AREVA and Électricité de France (EDF) continue theirdiscussions with a view to the sale of at least 75% ofAREVA NP to EDF.

• Following a two-month period of discussion, AREVAand EDF signed a preliminary memorandum ofunderstanding on July 29 presenting the principalterms and conditions of the plan in order to finalizedefinitive agreements, once the opinions of the socialauthorities of AREVA and EDF have been received.

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The objective of the parties is to carry out thistransaction in 2016 once the regulatory authorizationshave been.

• AREVA would keep a strategic interest in AREVA NPof at the most 25%, with which governance rightswould be associated suited to AREVA’s status as astrategic minority shareholder.

• Financial bail-out being offered = €2 billion

(approx.)

AREVA’s Shareholder str


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WIND

POWERB

SOLARH


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• TheNuclearIndustrypromisestogrowwithrenewedinterestfromcountriessuchasChina,U.K,India,SaudiArabiaandmore.

• AREVAhascontinuedtobeamajorplayerinthissectorandhasbeenworkingtowardsexploitationoftheseopportunity.

• SuccessdependentoneffectivenessinsellingitsGenIIIEPRproduct.

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Utilizationofestablishedchannelstoenterintonewmarketsbasedonlowercarbonemissiongeneration.

Documents

AREVA Presentation Kazim Raza Syed