AREVA: leading the wayto a low-CO2 economy

Dominique Mockly

Senior Executive VP International and Marketing

Warsaw, September 29th 2010

3 challenges forthe world energy sector

Multiplied by 1.5 by 2030

Declining fossil resources

Energy demand GHG emissionsOil & Gas availability

Cut by half by 2050

2005 20302010 2020 20501990 2010 20301960 2040202020001980

World energy demand (Gtoe / y) Oil and gas world energy supply(Gtoe / y)

World GHG emissions(GtCO2eq / y)

Businessas usualscenario

36

74

18

~12

~18

AREVA captures growth through its low carbon strategy aligned with world energy challenges

1,5

2,43,1

4,34,0

3,02,4

0,7

3,4

0

3

6

9

12

15

18

Coal

Oil

Natural gas

Nuclear

Renewables

Energy efficiency and storage

2030

17,0

2006

11,7

0,7

Billions of metric tons of oil equivalent / year

Global energy mixGlobal energy mix

+3.3%/y

Source: World Energy Outlook 2008 stabilization 450 ppm” scenario, AREVA

Fossilresources

x 1.5Energy demand

CO2emissions / 2

2,5

1,4

AREVA: leader in CO 2 free power generation solutions

Renewable Energies

• Development of wind energy, bio-energy, solar power and hydrogen power solutions

AREVA providesNew Renewable Energy solutions

€168M sales (2009)1% of AREVA sales

892 people (2008)1% of AREVA workforce

#1 in Bio-energyOff-shore wind turbine of the highest power rating (5MW) currently in operation

Off-shore wind turbine

Itacoatiara biomass plant (Brazil)

€1.1Bn backlog in 2009X14 over 2006-09

Already more than 2,000 MWe of BiomassPlants Installed Worldwide…

98 Power plantsunder operation or construction

2,430 MWetotal installed capacity

Germany

2 biogas

+ 5 mine gaspower plants for

57 MWe

Brazil

83 biomasspower plants for

2,296 MWe

Chile

1 biomasspower plants for

10 MWe

India

3 biomass

+ 2 waste heatpower plants for

47 MWe

Thailand

2 Biomasspower plants for

20 MWe

USA

12 biomasspower plants for

600 MWein project

40.000

30.000

20.000

10.000

0

Germany

UnitedKingdom

Sweden

Netherlands

Spain

Norway

Finland

Belgium

Others

2015

10.927

8.755

3.312

2.833

1.976

1.5531.3301.446

5.309

2008

End 2008 : 1,4 GW

European off-shore wind market forecastsEuropean off-shore wind market forecasts

… with a strong off-shore wind market forecast in Europe

� An additional installed capacity of 35 GW in Europe between 2009 and 2015

� An increasing number of countries selecting off-shore wind

Source : Base scenario EWEA

2015 : 37,4 GW

Reactors & Services

Back E

nd

Natural Uraniumfuel (UO2)

Enrichment

Conversion/Chemistry

Mining / Natural Uranium

Fro

nt E

nd

Recent strategic move /development

Presence Potential move

Recycling

Treatment

Fro

nt E

nd

N #1

AREVA is the only fully integrated playeron the nuclear power value chain…

Source: AREVA estimates

N #1

N #1

N #1

N #1

N #2

°

°

°

°

°

°

N #1°

2005-2009 … and has increased coverage of customer

needs thanks to integrated offers

NPCIL

2005

2009

2005

2009

2005

2009

2005

2009

2005

2009

2005

2009

2005

2009

2005

2009

URANIUM

FUEL

INSTALL

ED

BASE

SERVICES

BACK END

NEW B

UILDS

CONVERSION

ENRICHMENT

RENEWABLE

ENERGY SOURCES

Business in 2005 Businesss, JV & contracts in 2009

10

AREVA’s success is built on a long-lasting and successful culture of partnerships…

Consolidation in the fuel cycle

Since 2004, long-lasting partnerships to develop mines in Canada

Equity stakes in GBII new enrichment plant

Heavy component manufacturing site in the USStrengtheningof industrial

and engineering capacities JV in engineering (in negotiation)

Reactor development

1100 MWe pressurized water reactor

1250 MWe boiling water reactor

JV in fuel (Mitsubishi Nuclear Fuel)

Cooperation in the supply of fuel assemblies

… and on internationalization, USA Platform:Largest Nuclear Supplier and Employer

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4040 LocationsLocations

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•6000 Employees •

•

•

•••

•

•

Lynchburg, VA (2,200)

Richland, WA (600+)

Charlotte, NC (500+)

Meriden, CT (650)

•

Future home of Eagle Rock Enrichment Facility (300 )

Future home of AREVA Newport News (400-700)

Bethesda, MD (100+)

MOX Fuel Fabrication

Facility (800-1000)

•

Mountainview, CA (70)

AREVA SOLARGlobal HQ

0

20

40

60

80

100

Capital & operations

Fuel

Carbon

Gas- CCGT

CoalNuclearEPR

Typical breakdown of production costsCommissioning in 2020 – baseload operations

%

Methodology

► The production cost (also called Levelised Cost Of Electricity) includes all the expenses related to the power plant from its construction to the operation and final decommissioning.It is the minimum electricity price beyond which a project is profitable

► The production cost is a common standard in the power industry. It is a relevant indicator to compare the cost of electricity and attractiveness between different technologies with different lifetimes and cost structures

Nuclear, unlike competing technologies, has limited dependency on fuel and carbon prices

Source: AREVA analysisCarbon value 30€/tCO2

The nuclear growth prospectsare shared widely…

International agencies forecastsInternational agencies forecasts Nuclear vendor forecastsNuclear vendor forecasts

WEO Reference - 2009

IAEA Low - 2009

DOE Reference - 2009

WNA Reference - 2009

AREVA - 2009

WEO 450ppm - 2009

IAEA High - 2009

WNA High - 2009

WW net capacity by 2030

720

WW net capacity by 2030

2008 net WW capacity: 373 GWe 2008 net WW capacity: 373 GWe

680

670

659

498-524

818

459

511

509

600

659

708

807

… thirty Countries Going Ahead with Nuclear Power

Nuclear countriesDeclared interested countries

Morocco

EgyptAlgeria

Chile

Venezuela

Nigeria

Senegal

Namibia

Libya

Tunisia

ItalyTurkey

GCC

KazakhstanGeorgia

Azerbaijan

Indonesia

VietnamThailand

Poland Belarus

Ghana

Source: WNA retreated

IAEA Assessment on nuclear power prospects

« Financial crisis has had a modest impact » on nuclea r power projects because « it has not affected the longer te rm drivers of nuclear energy »

Expansion plans in China and elsewhere in Asia offs et announcement of delays for new build projects in Eu rope and North America”

It ”would result in the greatest number of new coun tries entering nuclear energy production that has ever occurred in such a shortperiod of time”

Nuclear power is on the rise in Europe,AREVA is ready to address the challenge

July 2009: End of nuclear energy ban put in place in 1987

June 2010: Swedish parliament votes the end of a three-decade ban on building new nuclear reactors

January 2008: UK government giving go-ahead for new generation of nuclear power stations to be built

Many recent favorable political actions towards nuclear energyMany recent favorable political actions towards nuclear energy

More than 30 000 employees in Europe

Manufacturing operations in Belgium, France, Germany, Spain, Sweden, United Kingdom

Supply Chain: up and running with more than 600 already qualified across Europe

EPR™ reactor: designed in cooperation with reference European utilities and more than 99% compliant with the EUR

AREVA: the European referenceAREVA: the European reference

Wrap-up

AREVA is a reliable – fast growing long term partner

AREVA is willing to develop additionnal partnership in Poland