areva in 2006 If you don’t have time to read the AREVA at the heart whole report, of the great energy read this page! challenges
Our mission: enable everyone to have access to ever cleaner, safer and more economical energy.
Our strategic objectives: • capture one third of the world market in the nuclear business; • clear five billion euros in electricity transmission and distribution sales revenue; • achieve a double-digit operating margin; • attain a significant position in the field of renewable energies.
No. 1 worldwide No. 3 worldwide Our performance in 2006 in the entire nuclear cycle in electricity transmission Steady sales growth and distribution €10.86 B With manufacturing facilities in 41 countries and a sales network or + 7.3% * in more than 100, AREVA offers customers reliable technological * +6.7% like-for-like. solutions for CO2-free power generation and electricity transmission and distribution. We are the world leader in nuclear power and Strengthening the only company to cover all industrial activities in this field. of operating income Our 61,000 employees are committed to continuous improvement €407 M on a daily basis, making sustainable development the focal point of or 3.7% of sales the group’s industrial strategy.
AREVA’s businesses help meet the greatest challenges of the Strong growth in net income 21st century: making energy available to all, protecting the planet, € and acting responsibly towards future generations. 649 m or + 43.9% * * Compared to 2005 consolidated net income excluding income from discontinued operations (Connectors division). Fuel fabrication Enrichment Reactors
Chemistry Renewable energies
Recycling MOX fuel fabrication
Mining
Used fuel treatment Services Transmission Other sources of electric power
Distribution
Adding value throughout the energy cycle A solution for each customer
Our customers’ needs: generating, transmitting and distributing electricity
• Secure supply to their reactors. • Ensure facility operations and • Optimize the management of used • Ensure the continuity and quality maintenance while optimizing nuclear fuel. of electricity transmission and their performance. • Shut down nuclear facilities distribution to the user. AN INTEGRATED • Extend reactor service life. at the end of their service life. • Manage grids, boost their capacity, • Build new generating capacity. ensure their reliability and provide energy market management.
OFFER SERVING Our answers: supplying solutions for CO2-free power generation and reliable electricity transmission and distribution • Uranium exploration and mining. • Inspection, servicing and retrofitting • Solutions for used fuel treatment • Design, manufacturing and • Uranium conversion and enrichment. of all reactor types. and recycling of reusable materials. installation of high and medium ENERGY • Nuclear fuel design and fabrication. • Heavy component design, • Solutions for used fuel storage. voltage equipment and systems. manufacturing and replacement. • Facility decommissioning at the end • Development and installation of • Design and construction of nuclear of service life. grid control systems. power plants, including the EPR, PROFESSIONALS and of biomass plants. Reactors and Services Transmission & Distribution Front End division Back End division division division
Contents
02 Message from the Chairman of the Supervisory Board 03 Message from the Chief Executive Officer
A LOOK AT WORLD ENERGY 06 The world in 2006
AREVA IN 2006, A GROUP ON THE MOVE 10 2006 Highlights 14 Business review 16 Key data 20 AREVA around the world 22 A policy of continuous innovation
A COMMITMENT TO SUSTAINABLE DEVELOPMENT 26 Five years of sustainable development 28 Governance 30 Continuous improvement 32 Financial performance 34 Innovation 35 Customer satisfaction 36 Corporations and human rights 40 Commitment to employees 43 Environmental protection 46 Risk management and prevention 48 Dialogue and consensus-building 50 Community involvement
GOVERNANCE, SHARE INFORMATION AND shaReholder RELATIONS 54 Corporate governance 58 Organization of the group 60 Share information and shareholder relations
64 Glossary 69 Learn more
TO GO FURTHER The reference document is available on our website www.areva.com. It is also obtainable from the Financial Communications Department. AREVA – 33, rue La Fayette – 75442 Paris Cedex 09 – France Tel.: 33 (0)1 34 96 71 00 – Fax: 33 (0)1 34 96 00 01
areva 2006 • 1 Frédéric Lemoine Anne Lauvergeon Chairman of the Supervisory Board Chief Executive Officer
MESSAGE FROM THE CHAIRMAN OF THE SUPERVISORY BOARD Message from THE CHief EXECUTIVE officer
A French success story, a European company, a world leader. The producing the nuclear island and instrumentation and control sys- In five years we have turned AREVA into the world European Union celebrates its 50th birthday this year. AREVA may tems for the EPR, is still jointly owned by AREVA (66%) and Siemens have been born in the 21st century, but it draws on decades of (34%). This does not preclude cooperation with other partners for the leader in recyclable energy – nuclear energy – and have research and industrial investment. conventional island, as demonstrated by the Flamanville EPR being built with Alstom. In the global economy we live in today, France’s establishment and built up modern manufacturing capabilities designed development of the world’s preeminent nuclear power company is AREVA’s European roots and global reach were strengthened even to meet future market prospects. no small achievement. But it should be remembered that, in its more in 2004 when the group acquired AREVA T&D, one of the conquest of markets throughout the world, AREVA is first and three world leaders in electricity transmission and distribution, all of foremost a European company. which, incidentally, are European. AREVA T&D made spectacular AREVA celebrated its fifth birthday in 2006. Five years during which Though operating income is still very healthy, after four years of progress yet again in 2006, with 16% growth, a return to profitability, This was demonstrated again in 2006 with the start of construction we have strengthened our organization, defined our scope of busi- growth it eroded in comparison with 2005, as provisions were and acquisitions in Italy and Germany. of the new Georges Besse II uranium enrichment plant in the Rhône ness, launched major capital spending projects, and consolidated needed to cover unforeseeable events at the EPR construction Valley. Based on ultracentrifugation technology developed by Three-quarters of AREVA’s 61,000 employees worked in Europe at our identity in pursuing our initial objective: pooling the know-how site in Finland. As real as they may be, such problems are not Urenco, this new plant will eventually replace the Eurodif plant the end of 2006, including more than 30,000 in France and more of the group’s entities to provide the world market with comprehen- uncommon for a project of this magnitude, especially since that has long associated Belgian, Spanish and Italian interests with than 6,000 in Germany. Even more telling, 32.5% of the group’s sive solutions in the fields of CO2-free power generation and grid we’re dealing with first-of-a-kind equipment being built under those of France. AREVA acquired a 50% stake in a centrifuge 2006 sales were generated in France and 61.6% in Europe. This, infrastructure. extremely severe conditions. To date, AREVA is the first to build a manufacturing plant in the Netherlands alongside Urenco, of course, is another sign of the importance of non-European Generation III reactor in Europe and will gain a wealth of experience Energy is key to a number of economic, environmental and human held equally by British, Dutch and German interests. The AREVA/ markets and the strategic priority of the United States, where new invaluable to the global market from this demanding project. challenges influencing the future of our planet. Our management Urenco partnership was made possible when France, Germany, reactor construction, renewed interest in the back end of the cycle, Incidentally, the impact of these provisions was partially offset model recognizes this fact. In keeping with the principle of sus- the Netherlands and the United Kingdom ratified the Cardiff treaty. and environmental concerns characterized the year, and of China, by the excellent performance of the Front End, Back End and tainable development, our model is designed to ensure both Could anything be more quintessentially European? where the intensive marketing efforts of 2006 will bear fruit in the T&D divisions. The T&D division is already a year ahead of its responsible and profitable growth on a market where investments longer term. profitability objectives. This was also the year of the EPR. To meet the ambitious challenge are expected to reach 5 trillion dollars in production equipment of building the first reactor of its kind in Finland on schedule, the full AREVA was built around a mission: to offer customers reliable and 6 trillion dollars in electricity transmission and distribution commitment of our people and close and constant supervision by solutions for CO2-free power generation and electricity transmission infrastructure by 2030. IN SYNC WITH THE MARKET the Executive Board and the Supervisory Board are needed. This and distribution. That mission is at the heart of the challenges of It was to be prepared for such prospects that AREVA was established It’s an ever-changing market: between 2000 and 2006 half of is also true of the construction of the French EPR at Flamanville. sustainable development and the fight against global warming that when it was. The appropriateness of this integrated industrial Europe’s electric utilities were swallowed up by their competitors Interest in the EPR has been expressed on practically every con- are of particular concern today to the European continent. In pursu- organization – providing each client with its own solution – has been and the number of listed utilities dropped in the United States from tinent, including Asia (China), North America (the United States, ing this mission, and in building on its French origins (evidenced confirmed by positive growth in the group’s earnings year after 71 to 65. This is why we have developed an innovative, integrated through UniStar, a joint company of AREVA and Constellation by the government’s participation in the company’s share capital), year. In five years our sales have risen by more than 20% and our offer that is in sync with the market, as proven by the results of a Energy), Africa (South Africa) and, of course, Europe (Great Brit- its European roots and its world leadership, AREVA has all the operating income has more than tripled. In 2006, our sales revenue recent customer satisfaction survey. ain, France, Belgium, the Baltic States and Finland). One could al- assets needed to meet the new challenges of globalization. hit 10.86 billion euros – a 7.3% increase – and our backlog of orders most forget that the world’s first Generation III reactor is European My thanks go to all of the group’s employees throughout the world grew by almost 25% to more than 25 billion euros, representing two This approach was corroborated by major contract wins in 2006. and that the letter E in its acronym originally stood for “European”! for the progress that has been made and the successes achieved and a half times 2006 sales revenue. Consolidated net income rose In Japan, we will be supplying MOX to nuclear power plants And there’s a reason for that, since it is the fruit of projects by in 2006. by 44% to 649 million euros. owned by several power companies under long-term contracts. Framatome ANP and Siemens in the 1990s. AREVA NP, which is
• areva 2006 areva 2006 • Message from THE CHief EXECUTIVE officer
The recycled fuel will be manufactured in our MELOX plant, whose supply EPRs and services for the entire fuel cycle, including fuel (MHI) focuses on the development of a new 1,000 MW reactor in the world. In France, AREVA signed another partnership production capacity has been increased to 195 metric tons. treatment and recycling. South Africa, Great Britain and Brazil, not which, by expanding our range of products, will consolidate our agreement to encourage the integration of disabled people. to mention the United States – where we are finalizing the Design ability to meet all of our customers’ new requirements. The European level, an important agreement was signed with We have consolidated our leading position in nuclear energy in Certification Application for the US EPR – all represent a multitude the European Metalworkers Federation (EMF) that sets as its top the United States by overtaking fierce competition in the market But our future lies just as much, if not more, in the men and women of medium-term outlets for AREVA. priority the equal treatment of employees, irrespective of gender, for power plant services. We will supply two replacement steam working for the group as it does in our industrial capabilities and age, political persuasion, religious beliefs, physical characteristics generators to Nuclear Management Company for unit 2 of its strategic alliances. Attracting and training the best talent are top or ethnic origin. Prairie Island plant in Minnesota. Pacific Gas & Electric Company priorities for us. In 2006 a total of 8,622 new employees joined our (PG&E) has asked us to replace the reactor vessel heads of OUR FUTURE IN MIND group. reactors 1 and 2 at its Diablo Canyon nuclear power plant in Our unwavering belief in a nuclear revival and more generally in The third pillar of our strategic investments is R&D. Our work has California. As the only integrated manufacturer worldwide with the development of CO -free energy sources has prompted us to A FUTURE UNDER CONTROL 2 focused in particular on expanding the advantages offered by its own capabilities to manufacture as well as replace reactor invest dynamically, both in our manufacturing capabilities and in In five years we have turned AREVA into the world leader in recy- nuclear power as recyclable energy, including fuel performance coolant system components, AREVA has already supplied and our human resources. clable energy – nuclear energy – and have built up modern manu- improvements and studies on a Generation III treatment and recy- installed 15 reactor vessel heads in the United States. With a view facturing capabilities designed to meet future market prospects. The Front End division has undertaken major efforts in uranium cling plant. In renewable energies progress was made not only to the longer term commercial outlook, we have submitted We also intend to move into the field of renewable energies with exploration and mining, having just secured several new mining in the biomass plants we have already installed in India and Brazil Expressions of Interest (EOI) to the US Department of Energy (DOE) the business unit that was created in 2006 for this very purpose. permits. In Kazakhstan our subsidiary KATCO, established three but also in fuel cells and wave energy with the Searev project. together with our partners Washington Group International and Our values, the quality of our people, our technologies, and our years ago, has moved its uranium mining operations into the produc- In the T&D division transmission technologies for ultra high voltage BWXT to develop a Consolidated Fuel Treatment Center for used strong financial footing combine to put us a step ahead of the rest tion phase. Having reached a multilateral agreement with France, and smart grids were the focus of studies by our researchers and fuel treatment and recycling and an Advanced Burner Reactor. of the field. Germany, the Netherlands and Great Britain, we were able to start experts. In France our subsidiary AREVA TA will supply the nuclear propulsion construction of the Georges Besse II ultracentrifuge enrichment plant The revival of nuclear power is no longer speculative; it is becoming reactors for six new attack submarines to the French Navy, totaling in 2006. a reality. For the next five years we will continue to pursue our ambi- more than one billion euros. tious objectives: to capture one third of the global nuclear energy The extension of the main manufacturing building at our Chalon- SOLID COMMITMENT market, to clear sales revenue of 5 billion euros in the T&D division, Our T&D division has chalked up numerous achievements, some sur-Saône plant was inaugurated last fall. It will now be possible TO SUSTAINABLE DEVELOPMENT to produce double-digit operating margin, and to attain a significant of which are more than impressive, such as the partnership agree- to meet increasing demand for heavy replacement equipment Our commitment to sustainable development has well and truly position in renewable energies. ment for an initial term of five years with National Grid, the owner for existing and new plants. Our acquisition of Sfarsteel, one materialized over the past five years, as shown by the performance and operator of the electricity transmission system in England and of the few manufacturers in the world of very large reactor forg- indicators we set up for this purpose and have reported on publicly. Our goals are aggressive yet realistic, and aim to ensure a well-con- Wales. This agreement includes all contracts for the construction ings, has eliminated the bottleneck that might otherwise interfere In 2006, following requests by the participants in our first dialogue trolled future for our group, our employees and our shareholders. of high voltage substations in southeastern Britain. with our ability to meet world demand. In electricity transmission session with NGO members of Comité 21, we have taken new ini- and distribution, the acquisition of the high voltage business of tiatives to promote human rights. It was in this spirit that, having The first few months of 2007 confirmed these dynamics, with German company Ritz consolidates our position in a sector that is signed up to the United Nations Global Compact, we decided to our 100th order for a reactor, which also happened to be our also set for considerable growth. Similarly, the inauguration of two join the Business Leaders Initiative on Human Rights (BLIHR), an 2nd order for an EPR, following that of the OL3 in Finland, for EDF’s new plants built by the T&D division in China positions us to take association of multinational companies that actively support and new Flamanville 3 power plant. In Sweden AREVA won two contracts full advantage of the booming local power grid market. promote human rights. As CEO of AREVA, I feel proud of, and at totaling about 400 million euros for renovation of unit 2 at the the same time very aware of the responsibility of, my appointment Oskarshamn plant and the service life extension of unit 4 at the Numerous strategic alliances were also formed in 2006. In the to the Global Compact board of directors by the Secretary-General Ringhals plant. With respect to the development of renewable United States AREVA signed an agreement with BWX Technologies of the United Nations. energies, E.ON UK turned to the T&D division for the design, supply, to manufacture equipment for the future EPR fleet and replace- installation and startup of onshore and offshore substations for ment equipment for existing power plants. This agreement is a In Niger our group signed a partnership agreement with the govern- the Robin Rigg East and Robin Rigg West wind farms. In the Back vital link in the supply chain of UniStar, the entity we formed with ment and the public interest group Esther for AIDS prevention and End, we won the contract to treat used nuclear fuels from Italy. the utility Constellation to promote the US version of the EPR. Our to provide healthcare to AIDS patients in the Agadez region. This is In China negotiations are still underway with the Chinese utility to agreement with the Japanese group Mitsubishi Heavy Industries the first public-private partnership agreement of its kind anywhere
• areva 2006 areva 2006 • a LOOK aT WOrLD eNerGY The world in 2006 SECURITY OF SUPPLY IN QUESTION
Security of supply is an increasingly acute concern on a global level. In early 2006 becoming more and more dependent on imports, because their domestic production cannot the vulnerability of many European Union member countries suddenly became apparent keep up with demand. Non-OPEC production of conventional crude oil is set to peak a decade when Russian giant Gazprom decided to cut gas supplies to the Ukraine, through which from now. According to the IEA’s base scenario, the OECD countries will be importing
25% of European supplies transit. A stinging reminder came at the end of the year with two-thirds of their oil requirements by 2030, compared with 56% currently. A major part of these Petroleum prices are very high, CO2 emissions have become a global issue, and security If electricity had not been cut off immediately to some consumers, the power system for a repeat of the same scenario, this time between Gazprom and Georgia and especially imports will come from the Middle East and will be transported via shipping lanes, some of which of supply is once again a major concern. Against this backdrop, developing renewable Western Europe would literally have collapsed, as happened in France in December 1978 with Belarus, through which 20% of Russian gas deliveries to Europe pass. With its gigantic are vulnerable. The concentration of oil production in a small number of countries with large energies and recyclable energy such as nuclear power can increase energy self-reliance while and in Italy in September 2003. Instead of outages lasting a few minutes to an hour that
reserves, Russia is playing an escalating role in global gas supply, bringing to mind (with reserves, in particular the Middle Eastern OPEC member countries and Russia, should reinforce reducing CO2 emissions. However, electricity is not storable, so expanding production of these affected ten million consumers, we would have seen 200 million consumers deprived all due allowances) the role played by OPEC for oil. Growth in demand pushed the price of their dominant market position and their capacity to command higher prices. sources is not enough. The power systems must be reinforced, as illustrated by the events of electricity for several hours or even days, as occurred in the United States and Canada a barrel of crude up to record highs. Hovering just short of 80 dollars during the summer, Capital spending on energy infrastructure is resuming due to geopolitical pressures in a number of November 4, 2006. On that day, the shutdown of a high voltage line in northern Germany in 2003. The November outage in Europe demonstrated the need for further improvements it fell back to under 60 dollars in the fall before rising again slightly. In its latest global report of petroleum-producing countries, rising energy demand, and the need for partial replacement caused a cascade of massive power outages that left ten million Europeans in the dark. in the security of transmission grids in Europe’s interconnected power system. Western the International Energy Agency (IEA) estimates that, if nothing is done to control it, the rising of existing power plants. This is why, as a function of their preferences and resources, consumer The European power system was unable to provide the basic requirement for power grid countries may be relatively poor in fossil fuels, but they do hold all the cards for improving demand for oil and gas will intensify the vulnerability of consumer countries to serious supply countries are actively reviving domestic solutions such as renewable energies, clean coal, operations, i.e. the immediate balance between production and consumption. About 10% their security of supply in the field of electricity, assuming they make the necessary investment disturbances and to the resulting price shocks. OECD and developing Asian countries are and nuclear power to increase their energy self-sufficiency. of consumption was interrupted, although a total blackout was fortunately averted. to improve both their production capacities and grids.
The energy year
supply NUCLEAR POWER NATIONALIZATIONS Geopolitics Nuclear power oil
January 1: Russia temporarily suspends February 6: The US Department of Energy April 3: After opening up to foreign-owned All year long: The face-off hardens between May 16: Tony Blair announces to British June 1: High oil prices notwithstanding, The seven partners in the ITER research its gas deliveries to the Ukraine due to a unveils a major initiative towards sustainable companies in the 1990s, Venezuela takes the United Nations and Iran, which wants businessmen that the replacement of British OPEC refuses to increase its production project sign an agreement in Paris. The goal disagreement over prices. energy growth called the Global Nuclear over two oilfields operated by French-owned to pursue its uranium enrichment activities. nuclear power stations is “back on the agenda levels, explaining that the high prices are due of the 10 billion euro project is to produce the energy Energy Partnership (GNEP). The GNEP Total and Italian-owned Eni. May 1: Bolivia starts December 24: Following a resolution by the UN with a vengeance”, citing climate change and to insufficient refining capacity and not to a lack of the future by 2050. The ITER Agreement concerns aims to institute a system of industrial services nationalizing its gas industry. Security Council imposing sanctions on Iran, energy security as reasons. Mr. Blair wishes of crude oil supply. July 14: The price of a barrel the development and construction of a demonstration and controls to promote a controlled expansion Iran announces that it is starting work to install to give priority to an energy mix in which nuclear of crude reaches $78.40 in New York due to reactor (DEMO) that uses controlled thermonuclear of nuclear power around the world. 3,000 centrifuges for uranium enrichment. power and renewable energies play an important geopolitical pressures (conflict between Israel fusion to generate electricity. According to José and complementary role, saying that these long-term and Hezbollah, instability in Nigeria, international Manuel Barroso, President of the European decisions need to be made now to avoid “a serious pressures linked to the Iranian nuclear power Commission, the project is the answer to the twofold dereliction of our duty to the future of this country”. program, etc.) and to a drop in American oil reserves. challenge of energy security and climate change. The reduced-scale prototype reactor will be built at the Cadarache site in France.
• areva 2006 • areva 2006 ELECTRICITY: GREATER INVESTMENT IN POWER SYSTEMS IS UNAVOIDABLE
Petroleum prices are very high, CO2 emissions have become a global issue, and security If electricity had not been cut off immediately to some consumers, the power system for of supply is once again a major concern. Against this backdrop, developing renewable Western Europe would literally have collapsed, as happened in France in December 1978 energies and recyclable energy such as nuclear power can increase energy self-reliance while and in Italy in September 2003. Instead of outages lasting a few minutes to an hour that
reducing CO2 emissions. However, electricity is not storable, so expanding production of these affected ten million consumers, we would have seen 200 million consumers deprived sources is not enough. The power systems must be reinforced, as illustrated by the events of electricity for several hours or even days, as occurred in the United States and Canada of November 4, 2006. On that day, the shutdown of a high voltage line in northern Germany in 2003. The November outage in Europe demonstrated the need for further improvements caused a cascade of massive power outages that left ten million Europeans in the dark. in the security of transmission grids in Europe’s interconnected power system. Western The European power system was unable to provide the basic requirement for power grid countries may be relatively poor in fossil fuels, but they do hold all the cards for improving operations, i.e. the immediate balance between production and consumption. About 10% their security of supply in the field of electricity, assuming they make the necessary investment of consumption was interrupted, although a total blackout was fortunately averted. to improve both their production capacities and grids.
ENERGY MIX CLIMATE CHANGE ENVIRONMENT ENVIRONMENT NUCLEAR FUSION NUCLEAR POWER
April 3: After opening up to foreign-owned July 16: In Saint Petersburg, the G8 countries October 11: “An Inconvenient Truth” opens October 30: Publication of the Stern Review November 7: The IEA publishes its World The seven partners in the ITER research December 18: With the approval of the companies in the 1990s, Venezuela takes reaffirm their determination to reduce in cinemas. The film presents arguments on on the Economics of Climate Change, Energy Outlook report, which states that the project sign an agreement in Paris. The goal US Congress, President Bush signs a civil over two oilfields operated by French-owned greenhouse gas emissions and air pollution, climate change backed by scientific data to illustrate a 700-page report written by former World planet appears to be facing “twin energy-related of the 10 billion euro project is to produce the energy nuclear cooperation agreement with India. Total and Italian-owned Eni. May 1: Bolivia starts improve the global environment, and reinforce supply former US Vice President Al Gore’s crusade and Bank Chief Economist Nicholas Stern for threats: that of not having adequate and secure of the future by 2050. The ITER Agreement concerns Under the agreement, the United States will supply nationalizing its gas industry. security. All leads are to be explored. “A long-term prompt similar action. Mr. Gore has been traveling British Prime Minister Tony Blair. In it, Stern emphasizes supplies of energy at affordable prices, and that the development and construction of a demonstration India with nuclear fuel in exchange for surveillance energy supply without adverse impact on climate around the United States for the past five years that immediate international action to stabilize of environmental harm caused by consuming reactor (DEMO) that uses controlled thermonuclear of India’s civil nuclear sites by the International Atomic ,000 centrifuges for uranium enrichment. change can only be secured through a large-scale to convince his fellow citizens of the scientific reality greenhouse gas emissions would generate far more too much of it.” While energy supply has definitely fusion to generate electricity. According to José Energy Agency (IAEA). use of renewable and alternative energy sources,” of global warming and of the urgent need for action economic spin-off than the costs generated by the become an absolute priority for international action, Manuel Barroso, President of the European says the final statement for the Summit.N uclear to reduce greenhouse gases. impact of greenhouse gas-related climate change. it is being dealt with in such a way as to threaten Commission, the project is the answer to the twofold power is included in the energy mix. According to the author, inaction on climate change the environment with grave and irreversible deterio- challenge of energy security and climate change. risks bringing about an economic crisis as serious as ration, in particular by changing the world’s climate. The reduced-scale prototype reactor will be built that of the Great Depression of 1929. at the Cadarache site in France.
areva 2006 • areva 2006 • 10
, ON ON N 2006 N p i OU r e MOve e G a TH areva areva 11 • areva 2006 12 • areva 2006 areva 2006 • 13 2006 Highlights BUSINESS SOCIAL DEVELOPMENT COMMITMENT
EPR Acquisition EQUAL OPPORTUNITY The AREVA-Siemens consortium AREVA signs an agreement to acquire AREVA and the European and its Finnish customer TVO the operations of Passoni & Villa, Metalworkers’ Federation take stock of progress on a world leader in the manufacture conclude an agreement on construction of the Olkiluoto 3 of high voltage bushings active in more equal opportunity in the group nuclear power plant. The EPR than 60 countries. This acquisition in Europe. This agreement calls is the first Generation III reactor positions the group as number 3 for a series of tangible measures under construction in the world worldwide on this market segment. guaranteeing the equal treatment on one of the most demanding of employees, without distinction as markets in terms of safety. to gender, physical characteristics, Its commissioning is expected ethnic origin or religious beliefs. in late 2010-early 2011.
the fight against aids PARTNERSHIP The government of Niger*, ChinA UniStar Nuclear* takes on a the public interest group Esther new US industrial partner, BWXT, and AREVA sign a partnership AREVA inaugurates two new plants for the construction of its nuclear agreement for AIDS prevention of the T&D Division in Xiamen, illustrating power plants. This alliance adds and patient care in the Agadez the group’s long-term commitment local manufacturing capacities region. It is the first public-private to modernizing China’s electrical grid. for large components to UniStar’s partnership of consequence on Both facilities bring AREVA closer to global offering. It covers AIDS-related issues. its Chinese customers and enable it equipment for future US-EPRs * Ministry of Mining and Energy, Ministry to develop solutions specifically for and replacement equipment PARTNERSHIP of Health and the Fight against Endemic the local market. for existing power plants. Diseases. AREVA and Mitsubishi Heavy Industries, Ltd. (MHI) of Japan, * Joint company formed by AREVA and US utility Constellation Energy. a global heavy industry leader, sign a cooperation agreement Acquisition in the field of nuclear energy. Initially, the partners will develop a 1,000 MWe Generation III reactor. Additional fields of planned DIVERSITY AREVA and the German group Ritz sign cooperation include procurement, services, the fuel cycle and AREVA signs the Charter on Diversity in the Enterprise promoted a purchase agreement for the Ritz High new reactor models. Voltage business. A world leader in by the French National Social Cohesion Plan. The group commits instrument transformers, the newly to setting up a system to facilitate employment of young people from disadvantaged neighborhoods (100 jobs in 2006), acquired company rounds out the EQUITY STAKE group’s product portfolio and geographic employment of the disabled, and equal opportunity for men coverage. AREVA is now number one AREVA becomes the largest shareholder of Lesedi Nuclear The United and women, both in terms of jobs and in terms of compensation. worldwide in this market segment. Services, a leading nuclear engineering services company The system has already taken shape with numerous association and black economic empowerment enterprise in South Africa. States seeks partnership agreements, confirming AREVA’s determination In bringing its equity stake to 51%, the group reaffirms its to contribute to the fight against all forms of exclusion. Joint venture intention of investing in the development of South Africa’s nuclear nuclear industry. AREVA becomes a 50% shareholder of industry input Enrichment Technology Company (ETC) Acquisition alongside Urenco, thus gaining access to In January 2006, the US the use of uranium centrifuge enrichment AREVA finalizes the buyout of Department of Energy (DOE) technology, considered the most efficient Sfarsteel from France Essor. launches a request for Expres‑ in the world. One of the world’s leading sions Of Interest in a “Global manufacturers of very large Nuclear Energy Partnership”. forgings located in the Burgundy The purpose: to study the region of France, SFARSTEEL Energy debate feasibility of a Consolidated strengthens AREVA’s offering Fuel Treatment Center and on the market for new generation in the United Kingdom an Advanced Burner Reactor. reactors, particularly the EPR. AREVA, Washington Group As part of a major democratic consultation launched by International (WGI) and BWXT the British government in January 2006, AREVA publishes jointly submit an Expression its contribution to the discussions on new directions for of Interest to the DOE in which the country’s energy policy. This is a crucial contribution, they demonstrate that they for a new generation of nuclear power plants may be built possess the necessary in the United Kingdom by 2017 if the environment proves technology and experience favorable for such a resurgence. to implement this program.
10 • areva 2006 areva 2006 • 11 COMMERCIAL SUCCESSES
UniStar Nuclear POWER GRID UniStar Nuclear awards the first AREVA signs a contract valued contract for procurement of long-lead at several tens of millions of euros components for the first US-EPR, to upgrade Moscow’s electrical which AREVA plans to build in the grid. Beginning in late 2007, United States. The order anticipates the group will supply replacement procurement requirements and equipment for obsolete bolsters the credibility of the UniStar substations to FSK, the federal business model, demonstrating its company in charge of electricity ability to build the safest and most transmission. The new equipment efficient fleet of advanced nuclear will improve response to the city’s power plants in North America. growing demand for electricity. This success crowns AREVA’s expertise in gas-insulated substation technologies and in solutions for grid upgrades. SWEDEN AREVA signs two new contracts T&d biomass SECOND OFFSHORE SUBSTATION for approximately €400 million. As part of an alliance with Skanska AREVA announces the construction of six new British utility E.ON UK chooses AREVA to design, The group will supply and install three REACTORS and Mott MacDonald, AREVA biomass plants, four in Brazil and two in Thailand. supply, install and commission onshore and steam generators and a pressurizer in 2011 signs a five-year partnership Fueled mainly with wood waste and rice husks, offshore substations for two large wind farms US utility Pacific Gas & Electric chooses AREVA to extend the service life of the Ringhals agreement with National Grid, these plants will supply electricity at competitive in the United Kingdom. AREVA had previously to replace the reactor vessel heads of units 1 and 2 power plant. The second contract, signed the owner and operator of the prices to the rural regions in which they are delivered a high voltage substation in that country. at the Diablo Canyon nuclear power plant in California. with operator OKG AB, covers upgrades electric transmission network installed. They will be entitled to carbon emission The success of the previous project was a key The only constructor in the world capable of to the Oskarshamn 2 reactor. of England and Wales. reduction certificates usable within the framework factor in E.ON’s decision to award the new manufacturing this type of component and ensuring The agreement covers all high of the Kyoto Protocol. contract, valued at €21 million, to the group. its replacement, AREVA has already supplied and voltage substation construction installed 15 vessel head covers in the United States. REACTORS contracts for southeastern United Kingdom. AREVA wins a contract to supply two replacement steam generators for unit 2 of the Prairie Island nuclear power plant in the United States. The generators will be built in the Chalon Saint-Marcel plant in France. The group is presently the world’s leading supplier of turnkey steam generator replacement solutions. sponsorSHIP 100th REACTOR ORDER America’s Cup MOX SUPPLY EDF chooses AREVA for the nuclear steam AREVA is the partner to the French team racing in the 32nd The group signs contracts with three supply system for the Flamanville EPR America’s Cup. As such, the group wants to embody a new Japanese utilities – Chubu, Kyushu in France. With 1,600 MW of power, the EPR energy in an international competition that mirrors its values and and Shikoku – to supply MOX* fuel optimizes fuel performance while lowering brings people together. AREVA’s involvement with the French to the three nuclear power plants they uranium consumption and generating less challenger is part of an ongoing process rich in meaning for the operate. These contract wins confirm waste. group, because it is consistent with its values and expertise. AREVA’s position as the world’s leading MOX producer. * MOX : Mixed Oxides.
12 • areva 2006 areva 2006 • 13 Business review
Sustainable Operations Key data Facts Strategic priorities development goals
Uranium ore Number 1 worldwide in the front end Increase mineral resources and production. Minimize the environmental impacts of disposal FRONT END exploration, mining of the nuclear cycle. Replace conversion and enrichment production of ore processing tailings and nitrates. DIVISION and concentration. Only global player with operations facilities. Maintain a high level of safety in the use of raw 2.92 b in every segment of nuclear fuel. Strengthen positions in fuel fabrication through materials and components. Uranium conversion in sales revenue Production facilities in Europe, North a push for innovation and productivity. Reduce greenhouse gas emissions. and enrichment. America, Asia, Australia and Africa. Build innovative offers based on an unparalleled Contribute to the economic and social development Nuclear fuel design Customers: leading nuclear power presence throughout the value chain. of communities in which we do business. and fabrication. 27% plant operators. Continue to monitor employee health and to inform. of the group’s sales Apply eco-design concepts to new products and plant projects. Successfully transfer expertise related to changing 11 ,995 technologies. employees
Design and World’s leading supplier of nuclear Successfully complete the first EPR projects Widely institute the use of eco-design REACTORS construction of nuclear equipment and services. at Olkiluoto and Flamanville and leverage approaches for products and services. Number 1 worldwide in pressurized lessons learned. Successfully integrate SFARSTEEL. AND SERVICES reactors and other CO2- free power generation 2.31b water reactors (in terms of installed Broaden the offering of reactors, strengthen Develop environmental management and safety in sales revenue capacity) and turnkey supplier of engineering capabilities and control the supply systems for large construction projects. DIVISION systems. biomass power plants. chain via a strategy of regional alliances. Supply of products Main manufacturing plants in France, Strengthen expertise in the field of reactor and services 21% Germany and the United States; services and offer customers integrated services for nuclear power of the group’s sales additional plants in India and Brazil that optimize their fleet operations. (biomass field). plant maintenance, Support R&D efforts on new generations Customers: leading operators of reactors and their applications. upgrades and of electric power reactors and operations. Develop significant positions in renewable 14,936 biomass-based cogeneration plants. energies. employees
Treatment and World leader in back-end of the cycle Strengthen used fuel treatment and recycling Keep the environmental impacts of releases BACK END recycling of used markets operations in France. as low as possible. DIVISION nuclear fuel. Main plant sites: La Hague and Market technologies worldwide. Limit the volume of operating waste that does not 1.91b Marcoule, France. Strengthen the leadership position in used meet near-surface disposal acceptance criteria. Cleanup of nuclear in sales revenue Customers: leading nuclear plant nuclear fuel storage. Keep worker exposure to radiation as low as facilities. operators. Market products and services related to reasonably achievable. Nuclear logistics. the transportation of nuclear fuel and nuclear Maintain a high level of nuclear and occupational 18% materials. safety during nuclear materials transportation. of the group’s sales 10,697 employees
Supply of products, Number 1 worldwide in market Pursue efforts to improve processes, redeploy Expand eco-design approaches. TRANSMISSION systems and services management software and grid manufacturing facilities and optimize the Reduce direct emissions of greenhouse gases management software, number 2 in high business portfolio. linked to SF6 releases. & DISTRIBUTION for electricity voltage products, number 3 in medium transmission and 3.72 b Accelerate growth by intensifying marketing Widely institute environmental management voltage products. in sales revenue and sales and increasing manufacturing and occupational safety systems. DIVISION distribution networks. Manufacturing operations in more than capacities, and through selective acquisitions 40 countries. in high-growth regions (China, India, etc.) Customers: 30,000 diversified or in certain market segments (high voltage, 34% automation systems, etc.). of the group’s sales customers, including integrated utilities, transmission and distribution companies, electro-intensive industries and other infrastructure companies, 22,988 and distributors. employees
14 • areva 2006 areva 2006 • 15 Key data
BACKLOG OF ORDERS sales revenue OPERATING INCOME 25.63 b 10.86 b 407 m 61,111 (1) EMPLOYEES of sales revenue +24.6% +7.3% 3.7%
As of December 31, 2006, the group’s backlog of orders came The AREVA group reported 2006 sales revenue to €25.63 billion, or more than two years of 2006 sales revenue, of €10.86 billion, up from €10.13 billion in 2005, for growth CONSOLIDATED NET INCOME WORKFORCE representing an increase of 24.6% from the backlog of €20.57 billion of 7.3%, including 3.5% for Nuclear and 15.9% for the Transmission BY REGION in % as of December 31, 2005. & Distribution division. Asia-Pacific11% Africa & Middle East 4% (1) + 6.7% like-for-like. 649 m Europe + 44%* (excluding France) 22 %
* In relation to 2005 consolidated net income, adjusted for net income from discontinued operations (FCI, Connectors division). SALES BY REGION SALES BY BUSINESS in % in % France 51% North & South America 12%
Asia-Pacific14% Africa & Middle East 7% Transmission & Distribution 34% TOTAL R&D SPENDING 61 ,111 58, 760
Europe (excluding France) 29% * m The AREVA group had 61,111 employees 669 at year-end 2006 , compared with 58,760 at the end of 2005. This change is due in particular + 6.2% of sales revenue to acquisitions in 2006 of Ritz High Voltage (T&D), Sfarsteel (forgings for reactors) and Lesedi in South Africa (power plant services). France 33% North & South America 17% Nuclear 66 % * excluding acquisition of the ultracentrifugation technology. 2005 2006 CHANGE IN WORKFORCE
598* 9.87 551 1 ,248 8.46
649 407 Operating income equals 3.7% of Net capital expenditures accelerated, sales revenue. Operating income remained Net income of €649 million. going from €395 million in 2005 to €1.25 billion strong at €407 million in 2006, giving operating Consolidated net income came to €649 million in 2006, chiefly due to the start of construction The 2006 dividend. margin of 3.7%, compared with 5.4% in 2005. 451 in 2006, for growth of 44%, compared with of the Georges Besse II plant and acquisitions The Combined General Meeting of Shareholders € € The decrease is attributable to provisions set up 451 million in 2005, excluding net income 395 of 50% of ETC and of the ultracentrifugation of May 3, 2007 voted a dividend of 8.46 per share for the OL3 project in Finland. The Transmission from discontinued operations (Connectors technology for the Front End division and, and per investment certificate. This dividend & Distribution division achieved the goal set in +44% division). for the Reactors and Services division, acquisition corresponds to a distribution rate of 46% of 2004 one year early, with operating income of *Before net income from discontinued operations in 2005 of SFARSTEEL and EPR certification work in the consolidated net income and will be paid on €191 million and operating margin of 5.1%. (FCI, Connectors division). United States. June 30, 2007. 2005 2006 2005* 2006 2005 2006 2005 2006
OPERATING INCOME NET INCOME OPERATING CAPEX dividend in millions of euros in millions of euros in millions of euros in millions of euros
16 • areva 2006 areva 2006 • 17 Key data
25.7 2,909 1,985 2,808
23.2 2,536 1,743
1,488 18.6
8,600NEW HIRES in 2006
2004 2005 2006 2004 2005 2006 2004 2005 2006 23.13hrs -28% -13% OF PROFESSIONAL TRAINING WATER CONSUMPTION, TOTAL ENERGY CONSUMPTION PAPER CONSUMPTION per employee per year EXCLUDING COOLING WATER in millions of m3 in GWh in metric tons, total group Overall, water consumption In 2006, the group’s total energy decreased by 13.8 % (in absolute terms). consumption dropped by 3.1% Like-for-like (without AREVA NC Marcoule in 2005 compared with 2005, before adjusting and Sfarsteel in 2006), it decreased by 3%. raw data by business. The change from 2004 Most is tapped from groundwater. The change to 2006, at constant sales revenue, is a 13.2% from 2004 to 2006, at constant sales revenue, reduction, compared with the target reduction is a 22.8% reduction, better than the target of 15%. Approximately one third of the total reduction of 20%. Action taken in 2006 includes drop in consumption is linked to the change in 2010 safety objective leak detection (Eurodif -63%, Jeumont -42%) consolidation scope (acquisition of Sfarsteel and replacement of equipment with more water- and sale of Marcoule). Most of the decreases were 0.23 efficient equipment (AREVA T&D Aix-les-Bains in the Back End with the continuation of the energy 7.6 Both of the group’s objectives for year-end 2006 were 0.20 -67%, replacement of water/water cooling systems conservation plan at La Hague, the group’s largest achieved: a frequency rate of less than 5 and a severity with air/water cooling systems). The AREVA NC consumer, and in the Front End (Mining, Chemistry), 5.4 rate of less than 0.20. 0.14 Pierrelatte site continued to pursue its efforts and mainly due to a lower level of activity. T&D also 4.7 The rates achieved as of year-end 2006 are well below the average posted an additional water consumption reduction reduced its consumption, even though business rates for French industry as a whole, which are 26.1 and 1.33 of 3%. In all, since 2003, AREVA NC Pierrelatte was up sharply. respectively (source: Caisse nationale de l’assurance maladie des has reduced its water consumption by 27%. salariés, 2004). The group unfortunately mourned three accidental deaths in 2006, two employees (a fall and a handling accident) and For these 3 graphs, 2005 and 2006 figures are adjusted to a constant sales revenue. a subcontractor (motor vehicle accident). 2004 2005 2006 2004 2005 2006
FREQUENCY RATE (FR) SEVERITY RATE (SR) FOR WORK-RELATED FOR WORK-RELATED ACCIDENTS WITH LOST TIME ACCIDENTS WITH LOST TIME FOR GROUP EMPLOYEES FOR GROUP EMPLOYEES
1.36 1,345 Front End 68 % 1.23 1.22 1,287 T&D 18 % 1,119 Average The group is well below the regulatory limits, set at Direct greenhouse gas emissions employee dose from 20 mSv per year for employees in the European Union and 50 mSv come from the use of fossil fuels (31%), sulfur radiation exposure in the United States. In 2006, none of the group’s employees or hexafluoride (SF6 – 25%), and nitrous oxide Back End 10 % 0.48 0.48 subcontractor personnel working at AREVA sites received an individual 0.36 (N2O – 40%), which was inventoried more accurately dose of more than 20 mSv. In addition, more than 86% of the group’s in 2006. The change from 2004 to 2006, at constant Average employees and subcontractor personnel working at AREVA sites SF6 sales revenue, is a 24.8% reduction, better than Reactors and subcontractor received individual doses of less than 2 mSv over a period of the target reduction of 20%. SF6 was stabilized by Services 4 % Energy personnel dose from 12 consecutive months. For purposes of comparison, the average changing a technique at the Chemistry business 2004 2005 2006 radiation exposure annual exposure to naturally occurring radiation is around 2.5 mSv. Others unit, even though business was sharply up in the T&D division, which continues to pursue its AVERAGE EMPLOYEE 2004 2005 2006 emissions reduction plan. The change also comes AND SUBCONTRACTOR DOSE DIRECT EMISSIONS OF GREENHOUSE GASES from the drop in N2O emissions from 2005, mainly DIRECT EMISSIONS in thousands of metric tons of CO2 equivalent due to a lower level of activity at Malvési. OF GREENHOUSE GASES BY DIVISION
18 • areva 2006 areva 2006 • 19 AREVA across the globe EUROPE AND CIS 62% of sales AREVA brings customers a sales network in more than 100 countries and % of SALES BY BUSINESS manufacturing operations in 41 countries. Its development strategy is based Nuclear 76% T&D 24% on a balanced presence in Europe, North and South America, and Asia. ASIA-PACIFIC In 2006, two-thirds of AREVA’s sales revenue came from outside France.
14% of sales % of SALES BY BUSINESS Nuclear 47% T&D 53% MANUFACTURING OPERATIONS Austria, Belgium, France, Germany, Greece, Hungary, Italy, Kazakhstan, the Netherlands, Norway, Poland, Russia, Slovakia, Spain, Sweden, Switzerland, Turkey, United Kingdom.
73% of employees
MANUFACTURING OPERATIONS Australia, China, India, Indonesia, Japan, Malaysia, Pakistan, Singapore, Thailand.
11% of employees
north and south america
AFRICA 17% of sales AND MIDDLE EAST
% of SALES BY BUSINESS Nuclear 67% T&D 33% 7% of sales
% of SALES BY BUSINESS Nuclear 9% T&D 91%
MANUFACTURING OPERATIONS Argentina, Brazil, Canada, Chile, Colombia, Mexico, United States, Venezuela
12% of employees MANUFACTURING OPERATIONS Côte d’Ivoire, Egypt, Niger, South Africa, Sudan, United Arab Emirates.
4% of employees
20 • areva 2006 areva 2006 • 21 MEETING THE ENERGY CHALLENGES OF TOMORROW
A policy of continuous For the same amount of electricity, the EPR will help cut back on the use innovation of uranium by 15%. Essential in every aspect of our daily lives, energy not only provides us with light and heat, it also enables us to travel, to communicate, and much more. With the burgeoning world population and the unrelenting rise in its mineral exploration activities, looking for is used to produce more electricity after it has new processes to recover more ore from each been converted into MOX fuel. demand, the 21st century is confronted with the challenge of supplying deposit, and exploring more complex deposits. In this way, natural uranium consumption is energy to all without exacerbating climate change. The technological advances of the Generation III reduced by close to 15%. Recycling uranium EPR are improving yields (15% less uranium extracted during treatment conserves natural used for the same quantity of electricity). resources in about the same proportion. Whereas current reactors can only take 30% of recycled fuel (MOX), the EPR can operate on 100% MOX, which means even more conser- vation of natural resources. RELIABILITY AND SAFETY Security of energy supply will be strengthened further with the advent of the Generation IV reactor on which AREVA is working hand in More secure energy supplies also means redou- The planet’s sources of energy are not limitless. In parallel, the expansion of urban and industrial substations are better at meeting all of these hand with the CEA and EDF. While current Generation III EPR bling our efforts to improve reliability and safety, With fossil fuels soon to run out and their prices centers worldwide requires the transmission criteria. AREVA T&D planned ahead for the reactors only use the fissile part of uranium whether for power plants, used fuel treatment and escalating, all available energy options must be of considerable quantities of electricity over research and technology choices to respond (U-235), this new reactor is designed to recover recycling plants, or power distribution systems. explored and their efficiency increased. long distances. One of the solutions consists to this booming market. All of the components all of the energy potential from the raw ma‑ Research in the field of used fuel treatment Considerable research has been conducted on Through its continuous innovation initiative, of increasing the voltage of the current for required to build an 1100 kV air-insulated sub- terial. This will take recycling a step further and recycling is heading in the same direction materials for nuclear fuel: on the pellet containing AREVA plans to bring solutions to the greatest transmission. Ultra high voltage at 1100 kV is station are now ready for marketing. by recovering 60 times more uranium from (see COEX box). Treatment makes it possible the fissile material, on the cladding enclosing challenges of tomorrow: the availability of energy an impressive technological challenge. Very used fuel treatment. This technology of the to recover uranium and plutonium (96% of the the pellets (which represents the primary safety to all, security of energy supply, reliability and high voltage substation equipment must future will be up and running in 2040, enabling used fuel) for recycling. The high energy barrier), and on the structural components of the
safety, reduction of CO2 emissions, and energy therefore be made more reliable, economic, the nuclear industry to reduce final waste potential of plutonium – one gram can generate fuel assemblies. More specifically, tests are be- efficiency. and environmentally-friendly, while enabling volumes even more. as much electricity as one metric ton of oil – ing performed on different types of zirconium SECURITY OF SUPPLY simple maintenance solutions. Air-insulated
Fossil fuels are becoming more and more expensive, and come from countries with often ENERGY FOR ALL volatile political situations. The revival of “indig- enous” energies should increase our overall AREVA is conducting numerous studies on energy self-sufficiency. Countries will be able new reactor types that use fewer natural to focus on renewable energies, on nuclear resources and minimize environmental impacts. energy, or on both at the same time. Gaining The COEX process Other than pressurized water reactors, boiling access to uranium resources needed to make AREVA is working on the design of a third generation plant water reactors and fast reactors, AREVA and nuclear fuel, does not present a problem. The for used nuclear fuel treatment and recycling. In partnership the CEA are studying a new family of reactors sharp price hikes for this natural resource have with the CEA, AREVA developed the COEX process which – high temperature helium-cooled reactors had only a modest impact on the cost of the enables to co-extract uranium and plutonium. This research bolsters non-proliferation safeguards, as the process does (HTR) – as part of the Gen IV international pro- nuclear kilowatt-hour, as the fuel counts for very not separate the plutonium from the uranium. The feasibility gram. These reactors are potentially attractive little in the total cost. studies were conclusive and industrial development is planned for the co-production of electricity and process Ultra-high voltage Anticipating a shift in demand in the wake for the 2015 to 2020 time frame. heat or hydrogen. of the nuclear revival, AREVA is intensifying
22 • areva 2006 areva 2006 • 23 MEETING THE ENERGY CHALLENGES OF TOMORROW
alloys offering better corrosion resistance and achieved by bombarding the nuclei of long- enhanced mechanical characteristics. lived elements with high-energy neutrons in Neutron studies are also being conducted, fast neutron reactors. In France, power line losses meaning studies on the functioning of reactor In addition to the nuclear fuel cycle, AREVA is cores. This field is unique in that it provides a also conducting research on electric power are estimated at about 2.5%
link between microscopic phenomena on the supply systems. E A major blackout on November 4, 2006 revealed the vulnerability of the European of total electricity consumption. grid. The problem was not a shortage of power but insufficient capacity in very high voltage transmission. One area of research consists of optimizing existing grids by increasing burn-up (see page 24) is increasing the amount their capacities and improving power distribu- of electricity generated per metric ton of fuel
tion possibilities. To do this, flexible alternating material. Two ambitious projects are underway BL
Dispatching NT current transmission systems, otherwise in this field to develop thenext generation of known as Facts, have a big role to play. These fuel assemblies for light water reactors such NT smart systems have a direct, real-time influ- analysis and prioritizing corrective actions, giving as PWRs and BWRs.
ence on “feed-back” power. By compensating them a global view of current flows. Energy efficiency also means improving the A E for feed-back, Facts minimize power line very high voltage and high voltage power congestion and increase their stability. In the transmission system. Limiting line losses due
Transmutation E case of the German blackout, this system to heat dissipation in the conductors and trans- probably could have limited the voltage surge formers is a performance criterion for any ENERGY EFFICIENCY N atomic scale and macroscopic phenomena on in the power line, which would have prevented power grid. In 2000, line losses translated the scale of a nuclear reactor core. Studies the automatic power interruption responsible into an estimated loss of 1,342 million me- involve the detailed modeling of interactions for the huge blackout. Confronted with rapidly disappearing fossil gawatt-hours worldwide. For developing Biomass plant between elementary particles consisting To meet the growing demand for electricity fuels in a world of ever-increasing demand for countries, obsolescence, lack of equipment M of the neutrons and nuclei of which matter is and improve power grid balance, considerable energy, AREVA is working to maximize energy servicing, and uncontrolled power diversions composed so as to obtain the best possible work is being done on information systems. production at operating nuclear power plants can boost those losses to as much as 27% TM AI reactor core performance. These systems process total available gener- and to produce even more energy with the of production. AREVA T&D is continuing its I Another field of research is transmutation, ating and transmission capacities in real time same quantity of natural resources. Improving research to limit line losses. Improvements P REDUCING CO EMISSIONS which consists of converting long-lived radio- as well as the delivery and pricing of energy load factors for new reactors is a serious start focus on insulating conductors, with specific 2
active elements after their separation into shorter- on the spot market. on this issue. Power plant load factors have research on gas-insulated cables that are The SEAREV T lived or more stable elements. This process AREVA T&D developed a set of software tools risen throughout the world, from 67% in 1970 insensitive to climate variations, or on super- A sustainable world energy system must limit project aims to eliminate the waste in which most of the that give a real-time picture of power grids. These to about 80% today. Use of the EPR will further conducting materials for the transmission of greenhouse gases emissions, whose expo- radiotoxicity is concentrated. Transmutation is tools help operators by performing predictive improve load factors. Moreover, boosting fuel very high voltages to reduce losses. nential growth is partially due to energy With mock-up testing complete, AREVA has just entered the optimization phase of
production. One of the key solutions for S a process designed to recover and convert producing more energy without increasing wave energy. The concept involves a sealed
CO2 emissions is to expand the use of nuclear float carrying a heavy mobile weight, which LO power and renewable energies. Rather than moves freely in the dominant wave direction. This technology could be used near islands counting solely on the atom, AREVA wants to to supply electricity to isolated areas. U be able to provide an array of CO2-free power generation technologies. To do this, the group is investing in renewable TODAY, PLANT LOAD FACTORS energies such as wind and biomass. Another Hydrogen is also used to make synthetic
Producing more energy with ARE AROUND S avenue for research concerns CO2-free hydrogen crude oil from coal or biomass. Assuming that OMM the same quantity of uranium production by electrolysis. This involves “splitting” a tax on CO2 emissions is introduced and the water molecule to make both hydrogen and the price of natural gas rises, one may see Work by AREVA research teams is targeting improved burn-up oxygen. Oil refineries could be an interesting hydrogen production by electrolysis become rates to produce more energy with the same quantity of uranium. outlet, since they are using more and more hydro- competitive by 2020.
Another advantage is that the higher the burn-up rate, the lower the C
80% gen to lighten increasingly heavier crude oils, EVE waste production. Already, technological advances mean that a fuel assembly can now produce twice as much energy as in the mid 70s. THEY AVERAGED 67% In 1970. making them cleaner in the process.
24 • areva 2006 areva 2006 • 25 areva 2006 • 26 D A TO TO a cOMMiTMeNT TO sUsTaiNaBLe DeveLOpMeNT A member of the Executive Committee is given responsibility The Sustainable Development and Continuous Improvement The SDCI network is set up. The safety, health and security functions Creation of the Renewable Energies business unit. for environment and sustainable development. department (SDCI) is created. are consolidated in the Safety, Health and Security department created Sustainable development in December. at the core of strategy AREVA’s major sustainable development commitments are defined. The sustainable development policy is adopted. The Values Charter is published and distributed in English, AREVA Way… The AREVA group’s values are presented in a charter approved The Values Charter is distributed in 10 languages. and management by the Executive Committee. French and German. Management decides to structure AREVA’s performance improvement The leading sustainable development indicators and AW self-assessment Integrated into the general business and budgetary The AREVA Way model is validated. criteria around ten sustainable development commitments. results are incorporated into business unit presentations to top management. processes and tools serving management process, sustainable development The occupational safety policy is updated following an audit. Several The occupational safety policy and the nuclear safety charter objectives are entirely part of management and facilitate The environmental policy is issued. components of the environmental policy are the subject of directives are adopted. dialogue between the units and top management. (asbestos, SF6, CO2) and of a standards handbook, Green Way. a goal that has become a way The diversity policy is issued. The Aids policy is adopted. The Sustainable Development Declaration for Suppliers validated by the Executive Committee is gradually disseminated to the group’s suppliers. of living and acting The issue of human rights is the subject of a seminar in June with Continuous improvement the human resources, purchasing and sustainable development The goal of sustainable development is served by departments, and of a presentation in October during the annual meeting. a commitment to ongoing improvement. It is implemented The policy for disposition of obsolete computers and other electronic equipment is adopted. through a continuous improvement process that revolves around ten commitments and is underpinned by specific The need to measure sustainable development performance is The first reporting efforts concern numerous environmental STAR, the information system for non-financial reporting, Sustainable development reporting time is shortened The STAR application is used for sustainable development reporting. management criteria – a sort of road map enabling each established; the list of relevant performance indicators is defined. and social performance indicators. is operational. and data reliability increased.
entity to assess its own performance and define performance Deployment of the AREVA Way model (AW) is launched The AREVA Way continuous improvement process is deployed The model is adjusted based on lessons learned and the social rating The continuous improvement process achieves maturity. improvement plans that are consistent with the overall in the operating entities. in all of the group’s units, including T&D, a recent addition to AREVA. and to harmonize management systems (audit, risk management). objectives. This process has led to the establishment A consistent approach nurtured The corporate departments join the continuous improvement by experience and receptiveness… of social and environmental performance indicators. process using a special model. An occupational safety audit is performed at all sites. The process for disseminating best ideas and practices is launched. 40 best ideas and practices (BIP) are issued.
When AREVA was established in September 2001 through the Dialogue: listening Comparative assessments between entities are put in place. In May, AREVA subscribes to the Business Leaders Initiative combination of COGEMA, Framatome ANP and CEA Industries, In March, AREVA subscribes to the Global Compact. the Executive Board led by Anne Lauvergeon made sustainable and accountability on Human Rights (BLIHR). AREVA assumes its responsibilities as a corporate The second sustainable development report is published The annual report and the sustainable development report AREVA publishes its first sustainable development report in June. development the keystone of its business strategy. Aware of the member of society. Because its operations may prompt along with the annual report. are combined in a single document. questions, the group dedicated to getting to know its The commitments made following the first Stakeholders Sessions The first Stakeholders Session is held with Comité 21. The second Stakeholders Session begins in December. responsibilities that its leadership position carries, of the role of nuclear stakeholders, to informing them, to understanding what are translated into action plans. power in the planet’s energy challenges, the group draws on proven they want, to building open and constructive dialogue. The group reports publicly on developments in its programs Innovest performs its first solicited social rating of the group. Innovest updates its solicited social rating of the group. safety and quality practices and on its tradition of precision and risk and commitments through objective, controlled data. Vigeo performs the first solicited social rating Vigeo performs the solicited social rating of the Mining business unit. management to unite entities’ cultures around sustainable development. of the Cleanup business unit.
To translate this choice into reality, AREVA integrates sustainable A biodiversity workshop with independent experts is held. development into its business strategy and its management practices Sustainable development AREVA’s senior executives unveil the major sustainable development In February, more than 250 group managers meet for a sustainable In April, 300 managers attend an interactive forum to share the commitments during the first annual convention, held in October. development symposium: the experience and best practices reported by the objectives, practices and behaviors that comprise AREVA Way. via a continuous improvement initiative. participants from the group help give concrete expression to the commitments. is everyone’s business More than 150 young managers assemble for workshops The first AREVA Sustainable Development Awards (ASDA) cover Planning starts for the second AREVA Sustainable Development The Sustainable Generation program is launched with work to understand and broaden AREVA’s sustainable the January to September period; awards are given to the best Awards to be kicked off in early 2007. The Sustainable Generation All of the company’s businesses and departments are by groups of young managers from different entities and departments. development approach. projects during the annual meeting of top management. program for North and South America is launched. concerned with sustainable development. To live it on Workshops are organized to diagnose the quality of sustainable a day-to-day basis, everyone in the organization is put development deployment within AREVA. in a position to understand the challenges and propose areas for improvement. AREVA Way is threaded throughout AREVA’s new intranet, launched April 3. 2002 2003 2004 2006 AREVA’s commitment to sustainable development and the concepts The initiative is supplemented with new tools: the continuous The addition of electricity transmission and distribution operations 2005The initiative is broadened to include new fields, such as the The deployment phase for basic tools is over, to be replaced of the initiative are stated. The initiative’s structure remains to be improvement criteria enable each unit to measure its sustainable – T&D – to the group in January provides an opportunity to test supply chain, social diversity and human rights. The performance by operational maturity. The initiatives have resulted in major designed. This is fertile territory: each of the group’s entities had development performance; the Values Charter sets the action AREVA Way’s power of assimilation. With the same values, standard improvement processes now deployed throughout the group are accomplishments, such as integration of the disabled, and new developed valuable skills and systems. An innovative approach principles and rules of ethical conduct. Dialogue and consensus management processes and performance indicators, the group’s themselves improved: this is continuous improvement of continuous projects are beginning. Every day, AREVA Way is integrated a little is going to link them, giving birth to AREVA Way. building with external stakeholders, previously erratic, give way entities easily find a common language. improvement. more into the management, relationships and communications of to a structured commitment to dialogue. the group’s entities, opening up new opportunities for performance improvement. 26 • areva 2006 27 • areva 2006 areva 2006 • 28 areva 2006 • 29 1 governance OBJECTIVES UPCOMING MILESTONES Continue to build management awareness of business ethics and values. Implement an international, in-house, online program on ethics awareness. Examine the potential for membership of the Business Leaders Initiative on Human Rights (BLIHR). Participate proactively in BLIHR programs and in the French-speaking BLIHR section. Continue to integrate respect for human rights into our management system.
Operating in a responsable and ethical manner
A CHARTER A total of 335 executives and senior managers continued operation and of stakeholder expec- and civil society organizations, and encourages role to play in this area (see “Businesses and SUPPORTED AND had already participated in these sessions tations in this field. good governance in countries rich in natural human rights”) and is increasing its involve- NUMBER OF AREVA WAY IMPLEMENTED BY ALl SELF-ASSESSMENTS by the end of 2006.To ensure that the group’s Initially, 4,500 US employees will have online resources. Payments made by businesses ment in this area through awareness cam- The Group’s commitment to governance is commitment to ethics is known and under- access to the program. This pilot will be used and government revenues from mining paigns and programs, such as integrating 196 192 based on the Values Charter adopted in 2003 stood throughout the company, the Values to develop an international version, which will operations are verified and published in detail. sustainable development into the supply after collective deliberations by management Charter was translated into the different lan- be available online in 2007. In the same spirit, Niger adhered to EITI in March 2005. In Sep- chain or promoting social diversity (see “Social and upon the recommendation of the Science guages used in the group. The AREVA Values AREVA University started offering targeted tember 2006, the initiative was launched responsibility”). 98 and Ethics Committee. The Values Charter de- Charter is now available in eleven languages, training on competition law for employees in in the field with the first working session held To share experiences and contribute actively fines the seven values underlying the Group’s including two recently published versions in France and Europe in 2006. Additional training in Niamey, including the active participation to the development and testing of practical 36 23 action principles and rules of conduct. Flemish and Indonesian. AREVA’s first online will be provided in Europe in 2007 and a program of the World Bank and AREVA executives, tools, AREVA became a member of the Busi- 7 This commitment requires that ethical princi- awareness program was also launched in will be developed specifically for North America. including the group’s business ethics advisor. ness Leaders Initiative on Human Rights in 2004 2005 2006 ples be taken into account in all management 2006 in the United States. This program allows As soon the Values Charter was launched, All of the participants confirmed their commit- June 2006. The company is now studying how Sites-Business Units decisions. To achieve this objective, an interna- all employees to broaden their understand– a series of actions relating to information, ment to EITI’s principles and criteria. The next to mirror this work in the group’s management tional executive awareness program on ethics ing of the Charter by presenting concrete training, implementation, reporting and auditing step will be to establish a National Concerta- system and integrate it into continuous im- Corporate and values coordinated by the group’s business examples of potential ethics issues and recom- created a new management process. tion Committee, which will work to define provement tools and processes. Beyond the number of self-assessments, ethics advisor and AREVA University has been mended solutions. It contributes to a better Managers are responsible for implementing implementation procedures, including the manager involvement in the initiative keeps increasing: 17% of all managers performed offered since 2004. The 2006 program included understanding of the issues at stake and the Values Charter. Every year, the heads format of disclosure reports. a self-assessment in 2006 compared with new seminars in Latin America. their potential impact on AREVA’s image and of each subsidiary and business unit must - Strengthening activities that promote hu- 14% in 2005. Some business units posted exceptional sign a letter of compliance with the Charter man rights. In its preamble, AREVA’s Values performances: the Enrichment business accompanied by a report on action taken, Charter refers explicitly to the need to respect unit had 100% manager involvement. For 2007, the group’s objective is for 25% gaps observed and measures adopted to and promote human rights. AREVA is con- average manager participation in the self- avoid their recurrence. These reminder mech- vinced that businesses have an important assessment of their entity. Strengthening the values, culture and anisms ensure that appropriate steps are taken and implemented by management at sense of belonging to the AREVA group all times. The entire process up to the audit AREVA University offers several programs to support the implementation of policies led phase was effectively implemented for the by the Sustainable Development and Continuous Improvement department in environment, first time in 2006. INNOVEST 2005 2006 Innovest rating occupational safety, nuclear safety and continuous improvement. For the second time, AREVA asked Innovest to assess the group’s social and environmental performance The Sustainable Generation program mobilizes young managers on practical projects Rating A A related to sustainable development subjects that are important to their entity and to the and practices. Two years after the first rating exercise, this non-financial rating agency confirmed the group’s AREVA group. TANGIBLE ACTION Posi- A rating on a scale ranging from CCC (poor) to AAA (best), and gave it a positive outlook vs. the stable Trend Stable IN THE FIELD tive outlook assigned two years ago. The new assessment shows that the group has progressed in all four “My personal objective was to carry out a project to transfer knowledge and prevent Following the first consensus building session Strategic areas assessed by Innovest. the loss of skills. Belonging to this working group is a unique experience. It gave me governance 7.7 8.0 with stakeholders, held in France in 2004 under “Areva’s sustainable development strategy – anchored in a strong culture of nuclear safety and security an insider’s view of AREVA’s sustainable development strategy and allowed me to make and characterized by continuous improvement and openness to stakeholders – as well as the company’s a tangible contribution to achieving its commitments. Working with colleagues from the aegis of Comité 21 (see “Dialogue and Human Capital 7.0 7.3 social and environmental performance and the favourable context in terms of the world’s energy challenges other subsidiaries and really sharing our experiences helped us move forward faster, consensus building”), AREVA had made [...] places Areva above average in its sector. However, the nuclear industry is high-risk […] In addition, and the atmosphere and environment were great!” several commitments, including two that are Environment 6.6 6.7 Aurélie Pergeaux - Cleanup business unit the launch of several recent programs and their uneven roll-out across the company puts Areva behind directly related to the group’s ethics and Stakeholders’ sector leaders. Taking into consideration the initiatives undertaken by the company, […] the company’s 5.5 7.0 sustainable development values: capital rating outlook is positive.” - Supporting Niger’s adherence to the Extrac- tive Industries Transparency Initiative (EITI): The Innovest report is available on our website, www.areva.com. EITI brings together governments, businesses
28 • areva 2006 areva 2006 • 29 2 CONTINUOUS IMPROVEMENT OBJECTIVES UPCOMING MILESTONES Continue to deploy AREVA Way self-assessments at all sites. Adapt the AREVA Way model to take into account additional requirements arising from the group’s policies. Continue to enhance the reliability of sustainable development and continuous improvement reporting; supplement reporting in the societal field. Expand the establishment of certified and integrated management systems (environmental, quality, occupational safety). Increase the establishment of certified and integrated management systems (environmental, quality, occupational safety). Strengthen the detection and collection of best practices, with a target of 200 BIPs by the end of 2007. Roll out a process for exchanging best practices among all of the group’s sites. Audit the self-assessment process and make results verifiable. Involve management in the process more widely. Deploy the sustainable development awareness module. Strengthen sustainable development training and awareness. Launch Sustainable Generation groups in North America and Latin America.
WIDELY INSTITUTE AND SIMPLIFY Self-assessment of corporate the continuous improvement initiative departments: why?
Corporate departments are involved in the AREVA Way process to strengthen STRIVING FOR EXCELLENCE harmonization of reporting systems for human a self-assessment for their own entity. To make for learning about each other’s accomplish- the departments’ cross-cutting activities ASSESSED CRITERIA AND CONTINUOUS resources and sustainable development is a this mode of operation more reliable, special ments. Discussions and questions were the along with those of the operating units. BY SCORE PERFORMANCE IMPROVEMENT The goals and clarity of policies and priority objective. Another area of work is to training in audit techniques was given to some order of the day rather than speeches and Operating entities programs, their alignment with new Continuous improvement is closely linked to define and deploy a methodology to measure members of the Continuous Improvement lessons, setting the example for what AREVA demands from stakeholders, the quality 46 AREVA’s goals for sustainable development and the financial impacts of the performance im- channel. This initiative, begun at the end of 2005, Way to Be is all about: openness, receptiveness of processes and tools made available 42 2004 is one of its ten fundamental commitments. provement plans (see “Financial performance”). covered 15 entities representing 17% of the and sharing. by the organization, and the leadership provided for the functional network 2005 Striving for excellence and continuous perform- In 2007, a single tool will be used throughout the group’s employees as of the end of 2006. 37 are major areas for assessment of 2006 ance improvement is thus a shared goal whose group to manage the portfolio of performance Another 37 entities plan to perform comparative a department. 32 achievement is supported by shared tools and improvement actions. The continuous improve- assessments in 2007. 28 processes that can themselves be improved. ment model evolves as the group’s policies are The human resources department has 27 completely integrated AREVA Way into In 2006, deployment of the continuous improve- broadened. In 2007, it will begin to reflect new MOBILIZING its policies, organization and resources. 21 22 ment process was expanded to all of the group’s policy components in the field of human rights, FOR PROGRESS IN SUSTAINABLE DEVELOPMENT “We are the owners of the ‘commitment 17 operating and functional entities. About one innovation and procurement management. 10 out of five managers has taken part in it. The For the sake of optimization and simplification, The second AREVA Sustainable Development to employees’. This theme is used to assess employee relations, employment 6 process is now integrated into the management the group promotes integrated systems: six Awards (ASDA) was kicked off in late 2006. management, and employee development 3 3 3 3 cycle. Strategic objectives charts factoring in dual certifications and three triple certifications In April, more than 300 managers from the field and involvement, which are the major the results of self-assessments were developed for quality, the environment and occupational from across the globe attended the AREVA Way facets of our program. AREVA Way Not applied Level 1 Level 2 Level 3 Level 4 as part of the strategic action plan process and safety were received in 2006, compared with forum to discuss the challenges and successes assessment criteria are used to structure HR action plans and budgets. were then broken down into operational objec- two and four respectively in 2005. of sustainable development at AREVA. This We now have HR standards applicable to tives and performance improvement plans that highly interactive event gave the floor to exter- all of the group’s HR departments, which Improving are written into the budget. MAKING PROGRESS QUICKLY nal stakeholders and provided an opportunity serve as a basis for self-assessments by To improve deployment of these processes, BY SHARING EXPERIENCE each site and are used to establish their practices AND BEST PRACTICES performance improvement plans. better linkage was sought in 2006 between We are evolving from simple descriptive In 2006, the group consolidated and the operating approaches of the business units The concept of best ideas and practices (BIP) consolidation of figures to HR performance accentuated the progress achieved in the and the cross-cutting approaches of the corpo- and the process to identify them in the group’s indicators, and our information system Did you say BIP? is adjusting accordingly. Once the previous year. The proportion of practices rate departments. Progress must still be made entities were kicked off in 2005. In 2006, 40 BIP that were not applied or were still in the launch How does one bring employee ideas out into the open and into practice at a site where infrastructure is in place, AREVA Way in this direction. Advances were also made in were validated by best practices referents (one phase decreased by 10% and now represents different shift hours make it difficult to share information? The answer: TIP/TOP! facilitates interaction and is a real drive including the geographic dimension and in per functional area) and disseminated over for performance improvement.” less than one fourth of the total. Anne-Sophie Linget, continuous improvement coordinator for the FBFC Romans site, The proportion of level 3 practices, synonymous harvesting regional synergies. A pilot was tested AREVA’s intranet as part of a special communi- explains: “TIP/TOP is a two-part table: Ideas from personnel (TIP = table of ideas for Frédéric Thoral, HR Vice President with conclusive results and inclusion of in North America and should be extended to cations plan. The goal is to have 200 BIPs by stakeholder expectations, moved up by 5%, progress) and the department’s priority objectives, which are linked to those of the as it did in 2005. The areas with the most other regions in 2007. the end of 2007. “Comparative assessments” company (TOP = table of priorities). The site chose this way for employees to communicate advanced practices are customer satisfaction, Another significant challenge is to increase the are another source for sharing, identifying best and exchange ideas. It is connected to a suggestions system. Tip-Top combines rigorous governance, the environment and safety- reliability of reporting. In 2006, more rapid practices and making progress. A comparative deployment of priority objectives with strong employee involvement in continuing health-security. Practices in the area of social reporting of data and automated quarterly assessment consists of a peer review of an improvement suggestions.” responsibility remained at a fairly advanced level, despite the addition of new requirements monitoring of key environmental and social entity’s self-assessment by individuals who And it works: close to 2 ideas per person per year and 10 euros in gains for each euro invested. to the self-assessment model. performance data were set up. In 2007, the have themselves participated in or conducted
30 • areva 2006 areva 2006 • 31 3 Economic performance OBJECTIVES upcoming milestones Define a methodology for analyzing the financial impacts of performance improvement programs. Perform audits of selected suppliers to ensure compliance with the Sustainable Development Declaration for Suppliers.
Deploy the Sustainable Development Declaration among suppliers. 2011 objectives Capture one third of the world market for nuclear energy. Achieve €5 billion in electricity transmission and distribution sales revenue. Achieve double-digit operating margin. Develop a significant position in the field of renewable energies. Planning ahead to sustain SOLID FINANCIAL PERFORMANCE AND GROWTH
STRONG energies, and rising demand in developing and continuously improved. Financial per- PURCHASING: expected by the group. The Declaration has been GROWTH IN countries. The group’s seven largest customers formance includes the performance of the A POWERFUL DRIVER gradually distributed to all key suppliers since NET INCOME NET INCOME FOR COMPETITIVENESS in millions of euros will invest 45% more from 2007 to 2009 than group’s own resources and processes (em- the end of 2005. It is initially presented by the With the nuclear revival confirmed and the antici- in the 2004-2006 period. AREVA has prepared ployees, production and manufacturing, AREVA Way’s commitment to “financial perform- AREVA buyer to the supplier face-to-face, then
1,049 pated increase in transmission and distribution for this growth. Over the past several years, management and reporting systems) and ance” also covers operating and purchasing signed by the supplier, at which point it becomes expenditures, AREVA’s integrated business model the group has pursued a capital expenditure the performance of flows that depend on exter- performance. Significant progress has been a contractual document. As of the end of 2006,
649 puts it in good position for profitable growth in program that accelerated in 2006 to reach nal stakeholders (customers, suppliers, made in this field to make greater use of syner- 1,569 suppliers representing 42% of the purchas- 598* operations. AREVA’s ability to take advantage €1.25 billion, triple the amount invested in administrations, financial markets, etc.). gies within the group and to introduce best ing volume had signed the commitment. The of market opportunities was confirmed in 2006 2005. Capital expenditures pertain to mineral AREVA has decided to illustrate its 2006 practices. However, suppliers’ performance cannot objective for the end of 2008 is 80%. This initiative as new orders for more than €15 billion were exploration and the strengthening of industrial action plan by presenting two components be measured in terms of price only: all aspects qualifies as a continuous improvement project, added to a backlog that stood at €25.6 billion at capacities, in particular in forgings (acquisition of financial performance: analysis of the impact must be taken into consideration. AREVA asks as AREVA is asking its suppliers to commit to a 451 year-end, or two and a half years of sales revenue, of Sfarsteel in France), uranium enrichment of continuous improvement initiatives and its suppliers to take part in the group’s sustain- sustainable process while acting as a partner to an increase of almost 25% year-on-year. Sales (beginning of construction of the Georges responsible management of procurement. able development initiative. help them achieve the goals. In this spirit, audits of revenue was up by 7.3%. Besse II plant), and transmission and distribution The Sustainable Development Declaration for selected partners will be performed in 2007 based 2005 2006 Despite difficulties on the OL3 construction (acquisition of Ritz High Voltage). AREVA’s ANALYZING THE ECONOMIC Suppliers sets the standards and commitments on objective criteria and a consistent method. * Net income from operations sold in 2005 IMPACTS OF CONTINUOUS (Connectors division). project in Finland, consolidated net income rose strong balance sheet is an asset for the group’s IMPROVEMENT to €649 million in 2006, up almost 44% com- development. This is particularly true in the pared with 2005, adjusted for discontinued nuclear business, where customers require Objective criteria were established in 2006 operations (disposal of FCI/Connectors division). guarantees to implement large scale projects so that operating managers, financial managers Operating income came to €407 million after over very long periods of time. The group had net and continuous improvement coordinators AREVA Way, Roace € in % significant provisions for OL3, compared with cash at December 31, 2006 of 251 million, can agree on whether a specific action can performance improvement accelerator €551 million in 2005, thanks to the good perform- compared with €808 million at the end of 2005. be considered a continuous improvement/ 20.3 % ance of the Front End and Back End divisions Taking into account the value of the put option AREVA Way initiative and on its economic When the Transmission & Distribution division joined AREVA in early 2004, a three-year € 18.3 % (+22% and +3.1% respectively), and especially held by Siemens for its stake in AREVA NP, value. All use standard forms specific to areas profitability optimization plan was set up. The goal was to reduce costs by 450 million to the recovery of the Transmission & Distribution the group’s net debt is €865 million or 12% of covering the majority of the objectives set by in three years. AREVA T&D follows an integrated approach allowing management to monitor the progress of the performance improvement plan on an ongoing basis, from diagnosis 13.3 % € division which achieved the objectives set by equity. The group has recognized 4.6 billion the business units (operations/production, to identification and implementation of actions to the economic benefits they produce. the group when it was acquired in 2004 one in provisions on its balance sheet to fund the engineering and services, procurement, func- The program is based on the Six Sigma method of analyzing problems and structuring year ahead of schedule. dismantling of its nuclear sites. These obligations tional units, marketing and sales, environmental solutions. A total of 239 people were trained in Six Sigma over a three-year period. The portfolio of actions and its impact in terms of financial benefits are recorded in detail are guaranteed with earmarked assets totaling footprint, innovation, etc.). Actions and objec- via a dedicated information system based on impact calculation standards used in all units € 2004 2005 2006 INVESTING 5.1 billion, including a portfolio of securities tives are considered “AREVA Way” if they are and approved at all levels of management. It is examined every month during product line TO MEET OUR with a market value of €2.1 billion. In all, ear- predicated on improving existing practices or activity reviews. With this approach, the portfolio can be organized according to several CUSTOMERS’ NEEDS marked assets exceed the value of dismantling processes and if they lead to a sustainable cross-referenced criteria: field, method, AREVA Way commitment, etc. This cross-referencing The decrease in ROACE from 2005 encourages everyone to share their successes and their experiences. The program includes Several factors are fueling AREVA’s growth: the obligations by almost €500 million. increase in performance. AREVA T&D’s expe- to 2006 reflects a significant increase a communication component using the intranet and poster campaigns. The most successful in capital employed due to increased nuclear revival, the rejuvenation of resources for Financial performance is the reflection of rience contributed greatly to improving our CAPEX and the use of customer advances. initiatives are recognized internally. At year-end 2006, AREVA T&D had already achieved power generation and electricity transmission several factors that create value. Each of methods in the nuclear power divisions. its cost reduction objectives – a year in advance of the schedule. and distribution, the development of renewable these factors is actively managed, measured
32 • areva 2006 areva 2006 • 33 4 Innovation 5 Customer satisfaction OBRappelJECTIVES des objectifs OBJECTIVES Broaden the strategy in the field of renewable energies. Expand the satisfaction surveys to include T&D division customers. Develop eco-design practices and widely institute them for all new products. Track the implementation of performance improvement plans set up following the survey. Conduct preliminary self-assessments on our eco-design criteria.
Offer innovative products, Energy from systems and services EXPERTISE for our customers
DEVELOPING prospects for commercial development in the REINFORCE AND portfolio to good use, the better to antici- RENEWABLE fields of safety (back-up generators) and public EXPAND CUSTOMER pate market trends and to devise innovative ENERGIES RECEPTIVENESS AREVA invests transport. business proposals that take advantage of Setting up a for the future Renewable energies must be given their A commitment to customer satisfaction synergies among the products, systems and Key Account rightful place within the global energy mix. WIDELY INSTITUTING guides AREVA’s marketing and management services offered by its business units. For As part of its strategy to develop a broader THE ECO-DESIGN teams. After AREVA NP conducted more than the 150 managers who participated in the of its customers INITIATIVE Management offer of CO2-free energies, AREVA has been 300 face-to-face interviews with 26 electric 2005 and 2006 satisfaction surveys, this deliberating over its renewable energies Eco-design aims to reduce the environmental utilities in 2003, the group defined methods was a plus in their business relationships. (KAM) system 669 m policy, partly in response to the request of its impacts of a product by taking them into account and tools for listening to customers which Two hundred managers from AREVA NC and The KAM system is a special AREVA/ or 6.2% of sales revenue stakeholders. Created in 2006, the new Renew- in the design phase. This approach is already were used in 2005 with customers in the nu- the Fuel business unit attended a training customer interface that was set up in 2004 to pool customer information, R&D investment in 2006 able Energies business unit is the backbone well-ingrained in Transmission & Distribution clear business. AREVA T&D used the method module designed to promote bias towards the of this strategy. The business unit is focusing operations, where it is supported by communica- in 2006, adapting it to its more fragmented customer. facilitate internal synergies, and ensure the consistency of their actions. It now Technological innovation is a key on three main themes: wind, biomass and fuel tion and training programs, with 180 people customer base. The results of the more than A group communication goal is to share covers all of AREVA’s major customers. component of the group’s strategy. cells. The group’s interest in wind energy has already trained. Core activities focus on limiting 400 interviews conducted will serve as a basis its view of the markets and energy with its R&D programs focus on safety and been present right from the start through its the use of hazardous substances, defining and for action plans in 2007. customers and to inform them of its initiatives. For Jeff Isakson of AREVA KAM- reliability, energy efficiency, cost Entergy, there are many advantages. subsidiary Jeumont. In 2005, AREVA renewed formalizing end-of-life and recycling procedures, The results of the survey of customers in The magazine Energy Business launched in reduction, final waste minimization, “AREVA can draw on its own international natural resource conservation, its interest in this energy source by buying and cutting back on SF6 emissions. the nuclear business indicate that AREVA is 2006 addresses these two objectives. experiences to create value for all its and future generations of nuclear a share in REpower, a company that has a Following an awareness seminar in December recognized as a strong, reliable partner. Areas customers. Sharing best practices isn’t systems. substantial technical lead over its competitors 2005, several pilot actions were launched in for improvement were identified in the fields limited to technological processes. It also applies to customer relations on the large machine segment (>1.5 MW). By the nuclear operations. After testing the eco- of innovation, customer orientation and Main thrusts: and customer satisfaction.” harnessing synergies with T&D’s capabilities design methodology, the Engineering business communication, giving rise to 19 projects. • Stepped-up efforts in uranium exploration in electric power grid connections, AREVA unit will be using it for the Comurhex plant mod- • Acquisition of ultracentrifuge technology plans to expand in this field, taking advantage ernization project in 2007. The uranium life MEETING CUSTOMER REQUIREMENTS • Improvement of fuel performance levels of very promising prospects in offshore wind cycle analysis revised in 2006 according to the EVEN BETTER farms. AREVA T&D has also accumulated ISO 14040 standards, will be used as a basis • EPR licensing in different countries valuable experience in designing and installing for the development of a nuclear fuel eco- In terms of marketing innovation, AREVA is • Studies for a Generation III treatment turnkey biomass plants in Brazil and India. design plan in 2007. Objectives were defined making the most of the lessons learned from and recycling plant The Renewable Energies business unit is also and performance improvement plans drawn up the 2005 customer satisfaction survey. • Ultra high voltage transmission involved in fuel cells, a clean, silent technology following a series of self-assessments performed The group intends to put its technological technologies with a high energy efficiency that is expected in 2006 focusing on the eco-design criteria skills and the unique scope of its business to become a key component of the future newly integrated into the AREVA Way model. • Solutions for smart power grids energy mix. The technical success of Hélion, an AREVA subsidiary, has opened up promising UPCOMING MILESTONES Revitalize the listening process and reaffirm our bias towards the customer.
UPCOMING MILESTONES Define and implement the action plan resulting from the T&D customer survey. Devise an eco-design plan for nuclear fuel based on life cycle analysis and R&D projects. Continue to roll out innovative products, systems and services.
34 • areva 2006 areva 2006 • 35 ‑ Focus on …
Corporations and “Businesses cannot act HUMAN RIGHTS as if human rights did not exist.”
“We are not asking corporations to do something different explicitly to the principles of non-discrimination, available to civil society and the general respect for privacy and political and religious public, and promotes the proper use of this from their normal business; we are asking them to do their opinions, safety and the protection of health, resource so that it will become an engine for normal business differently.” and respect for human dignity. AREVA asks its economic growth. suppliers to comply with the different principles Every day, AREVA becomes increasingly THE UNITED NATIONS GLOBAL Kofi Annan, former United Nations Secretary General. listed not only in the Universal Declaration of involved in observing and promoting human COMPACT CALLS ON BUSINESSES Human Rights and the Global Compact, but rights in the countries in which it operates. In TO ADOPT, SUPPORT, AND APPLY also the standards of the International Labour France itself, AREVA promotes pluralism and FUNDAMENTAL VALUES IN THE Organization (ILO). AREVA is authorized to ter- diversity in its hiring. AREAS OF HUMAN RIGHTS, LABOR minate unilaterally the contract of any supplier STANDARDS, THE ENVIRONMENT, that refuses to make this commitment. AND THE FIGHT AGAINST DIVERSITY, In June 2006, AREVA joined the BLIHR (Business CORRUPTION. A FACTOR Leaders Initiative on Human Rights), an associa- IN DEVELOPMENT tion of multinational companies that actively http://www.unglobalcompact.org Economic development cannot be separated employees, suppliers, etc. – are asking this area. With regard to finance, investors support human rights. The BLIHR works To show its commitment to social, ethnic, and from human rights. It is not enough for corpo- corporations to be responsible for sustainable are increasingly sensitive to the attitude of actively with several NGOs, and in particular cultural diversity, AREVA signed the Business rations to be competitive and profitable. They development, human rights, business ethics, economic stakeholders on human rights. The with Amnesty International. With AREVA’s sup- group’s reputation, its corporate image, and Diversity Charter promoted by the National must also recognize social and environmental and so forth. Multinational corporations must growing popularity of socially responsible invest- port, a French-speaking group was established its ability to hire and retain talent. In Niger, for Social Cohesion Plan in 2006. The Charter rights. At first, corporations were responsible resolve the paradox that exists between ment (SRI) and rating agencies is proof of this. early this year. example, AREVA complies with the principles rests on three pillars: integration of youths to their shareholders. Now they must take on financial results, which are too focused on the Observing human rights is more of an opportu- of the Extractive Industries Transparency from sensitive neighborhoods, occupational many responsibilities wherever they operate. short term, and a sustainable development nity than a constraint. When working conditions A LONG-TERM COMMITMENT Initiative (EITI), and is actively involved in the equality between men and women, and the IN THE COUNTRIES IN WHICH policy that makes the observance of human preserve human dignity, promote equality, and AREVA OPERATES fight against Aids. As a promising new instru- development of jobs for disabled people. NO ECONOMIC rights one of its key components. The paradox guarantee social protection, workers are better ment for the mining industry, EITI establishes Again in 2006, the group signed a national GROWTH WITHOUT is only superficial. In reality, a corporation’s trained, more productive, and better suited to AREVA operates in many countries, guided financial transparency in the income this agreement with the Association for Managing SOCIAL DEVELOPMENT image may be affected or even destroyed if it face the competition. by a social conscience that is good for the industry generates, makes this information the Social and Occupational Integration Fund is accused of not observing, or even of being As former United Nations High Commissioner indifferent to, human rights. This is because of FROM MAKING RULES for Human Rights Mary Robinson says: “Cor- civil society’s ever-changing expectations in TO HAVING THE CORPORATION porations which are responsible, which respect OBSERVE THEM the cultures and communities they work in, which are not exploitative of their employees, Observing human rights is key to AREVA’s which listen to environmental concerns, and sustainable development policy. Many pro- which urge Governments to improve their own grams demonstrate this, such as when the Transparency human rights standards, can make a great group joined the United Nations Global difference to a country’s economy, while at the FOUNDED IN 2003, Compact in 2003. In April 2006, United Nations in mining operations same time achieving their primary goal of THE BLIHR*, AN ASSOCIATION Secretary General Kofi Annan appointed The Extractive Industries Transparency Initiative (EITI) seeks giving investors a good return on their invest- OF MULTINATIONALS, HELPS Anne Lauvergeon, AREVA CEO, along with to strengthen governance in countries rich in natural resources ment.” A responsible corporation must be BUSINESSES INCORPORATE 20 leaders from businesses, labor organizations through the detailed publication and verification of payments beneficial to two groups: to its shareholders, HUMAN RIGHTS INTO THEIR and civil society, to serve on the Global Com- the mining industry makes to governments. It is a multipartite lest its existence be threatened; and to its MANAGEMENT SYSTEM. pact’s Board of Directors. initiative implemented in 20 countries supported by governments, businesses, NGOs, and international organizations. In Niger, employees, its partners, and the people of In 2002, AREVA established a professional http://www.blihr.org EITI was implemented in the second half of 2006. AREVA will the countries in which it operates. ethics function. In 2003, AREVA also developed propose expanding the initiative to the other countries where A growing number of stakeholders – clients, *Business Leaders Initiative on Human Rights. a Values Charter founded on respect for and the group is involved in mining, provided they join EITI. shareholders, financial analysts, funds, promotion of human rights. The Charter refers
36 • areva 2006 areva 2006 • 37 Focus on …
Amnesty international expects corporations
… to observe all human rights in their activities.
… to be held responsible for being directly or indirectly involved in human rights violations. “To be credible, we must apply INTERVIEW … to take human rights considerations into account in at home the principles we defend.” Geneviève Sevrin, their investment strategy. President, … to implement transparent tools that formally take Amnesty International human rights considerations into account. for Disabled People (AGEFIPH). Initiatives taken national framework agreement for youth … to use their influence to promote human rights. in this area enabled 26 of the group’s sites integration through the September 29, 2005 France. in France and abroad to boost employment professionalization contract. To sustain this, of disabled people to 6% of the group’s an agreement is now being prepared with Learn more workforce. the local integration offices in France. Programs As part of its ongoing continuous Many of the collective bargaining agreements to foster diversity will gradually be expanded improvement initiative, AREVA signed in the group’s different business units to all of the group’s sites. commissioned a second assessment of its social and societal performance We expect talk addressed occupational equality between in 2006 from Innovest, an independent men and women. The group’s goal is for 50% rating agency (see p. 33). of new hires to be women. AREVA has demon- to translate into action strated its commitment to hiring youths The chapter entitled “A commitment to sustainable development” (pp. 30 to 51) from sensitive neighborhoods through two provides other information on AREVA How do you explain the interest they are universally and effectively recog- desirable. We support this process, which special programs: the National Learning programs to promote human rights. shown by businesses in taking nized and applied. While governments have enables a business to take stock of its cur- Charter of May 2005 and the signing of the human rights concerns into account? the lead responsibility for this, businesses rent situation and set goals for improvement. Today, businesses are increasingly taking undeniably have a role to play in protecting The BLIHR is the world’s most advanced these concerns into consideration for sev- and observing all human rights, and they multisectoral initiative in the area of human eral reasons. First, they are concerned about must not be direct or indirect accomplices to rights, although this does not mean that it their image, primarily because society and violations. For a business, working to promote is the panacea. AREVA is the only French consumers are more demanding than in human rights provides a framework for reflect- company to have joined it, thus linking its the past. Secondly, they have realized that ing on how to deal with the human challenges French name, “Enterprises pour les droits doing so is good for business; this is the raised by its own activities. de l’homme” (Businesses for Human Fighting the Aids “triple bottom line” concept of corporate Rights), with seven other companies. social responsibility: environmental, social What is your opinion of the work pandemic in countries and economic performance. Thirdly, since of the Business Leaders Initiative How can we be certain that in which we operate businesses occasionally operate in areas on Human Rights (BLIHR)? companies will turn talk into action? in which there are conflicts – or risks – and Amnesty International France works closely Now there’s the real question! We are find- Fighting Aids is one of the key objectives state governance is weak, they are faced with BLIHR, mainly because it is based on ing quite a bit of talk and much less action. of the United Nations. As part of its societal with challenges which, although they may the United Nations Draft Norms on the Today, I believe that no company actually commitment, AREVA has joined the fight in countries in which it operates, using procedures contribute to people’s economic develop- Responsibilities of Corporations with Regard does everything it says it will do! What we tailored to those countries. In Niger, where AREVA ment, can also result in serious human to Human Rights. Many businesses have expect are commitments and ways to verify has almost 1,500 employees at its uranium mines rights violations. Lastly, businesses cannot seriously questioned this draft. Those busi- these commitments, and we expect them (which affects some 20,000 people, including ignore the existence of several international nesses that are helping to support it are to actually do what they say they will do. families and beneficiaries), prevention programs were introduced very early on. An agreement with rules that make direct reference to human courageous in that they are trying to imple- the French Red Cross provided access to screening rights, such as those of the ILO, the Organi- ment the key points of the draft: equal and treatment. The system has been strengthened zation for Economic Cooperation and opportunity, safety, workers’ rights, national and an agreement was signed last December with Development (OECD) Guidelines, the United sovereignty, and consumer and environ- a number of partners, the Nigerien authorities first and foremost among them. Nations Draft Norms, etc. According to the mental protection. The ambitious project includes the full line of care, Universal Declaration of Human Rights, The BLIHR and its organization are based from prevention to patient care. The project goes businesses, as well as all entities in society, on each of these themes and there are above and beyond the employees and their must endeavor to develop respect for these “specifications” for progress. There is what beneficiaries to encompass all of the surrounding populations. rights and freedoms, and to ensure that is expected, what is advisable, and what is 6 COMMITMENT TO EMPLOYEES ROBappJECTIel dVEesS objectifs UPCOMING MILESTONES Launch an in-house opinion survey with the employees of AREVA NC and AREVA T&D. Prepare and implement action plans as indicated by the results of the opinion polls. Develop a program to promote diversity. Formalize the group’s commitments for hiring disabled people for the next three years. Achieve an average work-related accident frequency rate of less than 3 and an average severity rate of less than 0.15 by 2010. Implement the diversity indicator scorecard. Strengthen occupational safety management systems by obtaining OHSAS 18001 certification for all SSA* sites. Obtain OHSAS 18001 certification for all sites with significant safety aspects by the end of 2007. Do not expose any employees to radioactivity doses greater than 20 mSv/year by the end of 2006. For work-related accidents, achieve an average frequency rate of < 3 and an average severity rate of < 0.15 in 2010.
A strong commitment to the development and diversity of talent
PROMOTING the professional development prospects of pared by the ten leading schools in France, Programs are in place in the group to make INTERNAL 80% of all engineers and managers were AREVA ranks 14th among preferred em management and all employees aware of Emmanuel Constans, President of ADAPT. DYNAMICS reviewed (versus 40% in 2005). In France an ployers and 6th among ideal employers for this. The group is also working to promote Sharing skills The group prepared an opinion survey based agreement on training throughout an employ- engineers. jobs for the disabled through its procurement When on its sustainable development commitments ee’s career was signed with the trade unions practices and economic development pro- and knowledge and all of its subsidiaries used it. The high in May 2006. This is the finishing touch on a sys- PURSUING grams, including aid to the protected sector businesses join response rates, which range from 70 to 90% tem that anticipates the group’s requirements PROGRAMS THAT and the creation of businesses by and/or How can expertise be passed on through FOSTER DIVERSITY depending on the subsidiary, demonstrate em- in terms of skills and career fields, and the for the disabled. the fight against organizational or generational barriers? ployee interest in this approach. The results are employee representatives are very much in- The November 2006 agreement also cov- That is the challenge being met by the In 2005, the group realized that progress had disabilities Knowledge Brokering Bulletin Project, shared and are followed up by implementing volved. In particular, the agreement includes the ered professional equality between men to be made and decided to make diversity a launched by a small team from Erlangen action plans. commitment to offer each employee 30 hours and women. Its scope includes hiring prac- “For the past ten years, ADAPT in Germany. The project won the 2005 priority. With the European Works Committee, has organized the Disabled People Encouraging performance and the develop- of training in 2008. tices, training, promotion, and compensation. ASDA* award. The idea is to share the it began taking stock of and listing best prac- Employment Week in cooperation ment of talent is a key challenge for AREVA. AREVA seeks to limit the social conse- The goal is for 50% of new hires in all fields with partner businesses. experience of senior experts via a bulletin. tices in hiring disabled people and equality Whenever a topic can give rise to a Rules for the entire group were implemented quences of the industrial reorganizations. to be women by 2010. The creation of day This year, we were pleased to co-opt between men and women. knowledge transfer, it is reviewed by for more assurance of individual employee In this context, it offers mobility and retrain- care centers in several of the group’s esta the AREVA group into our national a multidisciplinary network. The key Based on the results of this analysis, a frame- steering committee. growth. In this context, 70% of all employees ing to each employee involved. 97% of the blishments is a response to the need for stakeholders are consulted and the work agreement was signed on November 16, By participating in hiring programs associated documentation is studied had an individual evaluation interview, and employees at the sites in the United Kingdom employees to harmonize their work with their organized throughout France, AREVA 2006 with the European Metalworkers’ Federa- to prepare a user-friendly document. and 92% of the employees at the Saint- private lives. showed its resolve to hire disabled tion and representatives of the European Works Eight bulletins have already been Ouen plant in France who were affected by applicants. At ADAPT, we firmly believe published. The result is more in-depth Committee. Performance indicators will show in the value of setting an example. restructuring were able to find a job in the dialogue between experienced engineers how well it is implemented. OCCUPATIONAL That is why we call on the media and their young co-workers. group or elsewhere. SAFETY: ZERO ACCIDENT to show successful experiments The agreement on hiring disabled people OBJECTIVE in integrating disabled people into * AREVA Sustainable Development Awards. will be implemented in cooperation with local the company... AREVA provided BECOMING partners. In France, the pilot country, a series The group’s objective is zero accidents. In substantial assistance to us in this A LEADING EMPLOYER of agreements to support the hiring and 2006, the average frequency rate was 4.66, area because it already has many disabled employees. I personally integration of these workers was signed which met the objective of less than 5, com– thank the AREVA CEO for her A dynamic program of communications and in 2006 with AGEFIPH, the Association for pared with an average frequency rate for commitment to hiring disabled relations with schools was launched and the Social and Occupational Integration of the group of 8 in 2003. The severity rate fell people.” 8 600 has generated partnership agreements in Disabled People (ADAPT) (see box), ADECCO, to 0.14, better than the objective of 0.20. NEW HIRES Europe, the United States, and Asia, particu- the Union of Adapted Businesses (UNEA), Along these same lines, a frequency rate IN 2006 larly in China and India. According to the and the Association to Facilitate the Profes- objective of 3 and a severity rate objective of * With significant safety aspects. ranking in the 2006 “Universum” study pre- sional Integration of Young Graduates (AFIJ). 0.15 have been set for 2010.
40 • areva 2006 areva 2006 • 41 6 COMMITMENT TO EMPLOYEES 7 ENVIRONMENTAL PROTECTION ROBappJECTIel dVEesS objectifs Deploy Environmental Management Systems (EMS) at all group sites. Reduce energy consumption by 15% (excluding EURODIF) and water usage by 20% (excluding the Eurodif plant and the Célestin reactors at Marcoule) within three years. Reduce greenhouse gas emissions by 20% and the production of conventional waste by 30% within three years. In 2006, none of the group’s Report on the management of radioactive waste generated by the group and set performance improvement objectives. employees or subcontractors was exposed to a radiation dose greater than the regulatory limit of 20 mSv in Europe.
Minimizing the environmental footprint through risk prevention
To achieve this, the group’s safety policy priori- MAINTAINING ties include: A HIGH LEVEL OF RADIATION PROTECTION Although the impacts of AREVA’s operations ment criteria, and corrective measures will - greater involvement of management in serv- on the environment are minimal, the group be taken. Priority will be given to SEA sites. ice and subcontracting activities; is committed to reducing its environmental - management training; In 2006, no group employees or subcontrac- footprint even further. IMPROVED - establishment of a safety management system tor personnel were exposed to a radiation ENVIRONMENTAL (OHSAS 18001) for the sites and activities dose greater than the regulatory limit of PERFORMANCE Comhurex CONTROLLED in which there are significant work-related 20 mSv in Europe. This commitment by the ENVIRONMENTAL safety issues. group was met thanks to everyone’s efforts, Malvési: IMPACTS In 2004, the group set three-year goals for Significant progress has been made: including those of the service operations in 29 million euros reducing its environmental footprint in terms - nearly 200 employees participated in the the United States, where the regulatory limit In 2006, the 84 sites that were ISO 14001- of consumption and releases. The goals have safety management training program; is 50 mSv/year. These excellent results were invested in certified maintained their certification, and been exceeded in every area except for ener- - a safety guide (see box) was published sum- achieved through an awareness program environmental 21 other sites received it for the first time. gy consumption, which dropped only 13% marizing safety requirements and attitudes and cooperation with US nuclear power plant By the end of 2006, 77% of the sites with against the initial target of 15%. Some sites in key risk situations; operators. protection significant environmental aspects (SEA) showed spectacular progress. In 2006, water - 55 of the 123 sites with significant safety as- In 2004, 31 people worldwide were exposed were ISO 14001-certified. Simplified environ- consumption dropped 42% at Jeumont The Malvési site, regulated under pects received OHSAS 18001 certification. to a dose greater than 20 mSv/year; that figure mental management systems (SEMS) were thanks to a leak reduction campaign and 67% The Safety Guide, Seveso laws, handles the first step The group regrets to report three fatal acci- dropped to 22 in 2005. Average doses con- of the uranium ore conversion set up for sites with minimal environmental at Aix-les-Bains after the technology was dents in 2006. In Kazakhstan, a traffic accident tinue to be very low in the group, at 1.23 mSv an excellent tool process. Unusually heavy rainfall risks, mainly in the Transmission & Distribu- changed on the refrigeration units. claimed the life of one subcontractor. In in 2005 and 1.22 in 2006, and even lower for in early 2006 forced the plant tion sector. The AREVA tower was one of Through efforts to identify greenhouse gas to suspend operations for two Iceland, a construction site supervisor died subcontractors, at 0.48 mSv in 2006, the same for improving the office building sites to receive ISO 14001 emissions, more accurate data was logged months and to review its water due to a fall. In France, one person lost his as in 2005. occupational cycle management practices. certification in 2006, and the new group on nitrous oxide (N2O), which alone accounts life while handling a container. Steps to prevent The resulting investments went headquarters in Paris is opting for certi– for 40% of group emissions. the recurrence of such accidents were taken safety every day into reinforcing lagoons, creating fication in 2007. In coming years, environ- Emissions from fossil fuels represent 31% new ponds and a closed-loop immediately. The group launched an informa- mental certification initiatives will be of the group’s emissions, sulfur hexafluoride In the interest of establishing the cooling system, and setting up tion campaign on road safety, strengthened general line of conduct and providing a water treatment station. expanded to contracting operations, the account for 25%, and halocarbons come safety management at 40 construction sites, benchmarks for effective prevention A retrospective assessment of nuclear engineering business, and large to 4%. The recycling rate for all conventional intensified safety inspections by supervisors, of work-related accidents, the Safety the site’s overall environmental construction sites. waste improved by more than 35% for Committee published a guide in early impacts was also carried out. and conducted a program of audits. The Green Way guidelines were deployed the 2004-2006 period. In 2006, 40% of all 2006 for all operations managers. It reviews fundamental safety group wide. These guidelines establish the hazardous waste was recycled, compared management principles – management minimum level for environmental practices with 32% in 2004; the corresponding percen- responsibility, involvement of everyone – and performance improvement goals and tages for non-hazardous waste were 59% and describes the basic tools for their implementation. The guide also are designed to harmonize assessment and 44% respectively. The group employee establishes basic rules applicable systems and environmental management used an average of 27.3 kg of paper in 2006, to key risk situations, such as working practices. Reviews will be conducted in 2007 5.2 kg less than in 2004, for group-wide sa- in high places, lock-and-tag procedures, to identify divergence from these manage- vings of 340 metric tons. and electrical hazards.
42 • areva 2006 areva 2006 • 43 7RESPECTENVIRONMENTAL DE L’ENVIRONNEMENT PROTECTION
UPCOMING MILESTONES Implement the 2007-2010 environmental policy, specifically: 77% • continue the establishment of environmental management systems; • carry out 50 environmental reviews; of SEA sites certified under ISO 14001 • reduce our environmental footprint by concentrating efforts on major contributors; • examine the soil management component in more detail; 0.01 mSv/year • continue efforts to limit greenhouse gas emissions. radiological impact of releases from the La Hague plant
KEEPING RADIOLOGICAL AREVA’S SHRINKING IMPACTS LOW ENVIRONMENTAL FOOTPRINT ENERGY 2004-2003 – 15% AREVA has brought radiological impacts At constant sales revenue Harvesting water at Pallavaram –0% around the La Hague plant down to 0.01 mSv. This is just one-fifth of what it was 30 years ago On August 31, 2006, the team at Pallavaram, the T&D division’s Indian site, –20% proudly inaugurated five Rain Water Harvesting (RWH) stations designed and far below the regulatory limit of 1 mSv. by site technicians to collect rainwater in wells. An initiative to preserve natural –13% This achievement is the result of the group’s resources born of employee creativity. –40% strategy to improve and harmonize measure- CONVENTIONAL Implementing WASTE ments and of continuous research on ways to –60% reduce these impacts. The radiological impact – 30% water REACH –19% – 20% assessment models that were developed for the –35% –80% La Hague plant in consultation with international The European chemicals regulation REACH (Registration, Evaluation, experts and local associations were extended to Authorization and Restriction of –100% AREVA’s major nuclear sites, taking specific local Chemicals), institutes a new European characteristics into account. The results of meas- policy on the management of chemical substances. urements are published on group websites and It was adopted on December 13, 2006. shared with the local information commissions. AREVA is affected by the regulation Measures are being taken to limit the external as a manufacturer, importer and user radiation impact at the site boundary to 1 mSv/yr. of chemicals and items. The group set –19% –25% up a dedicated network organization, sent out information over the intranet, COMPREHENSIVE and provided training for the parties RADIOACTIVE WASTE directly involved. MANAGEMENT PAPER GHG An operational procedure will – 10% – 20% be issued in 2007 for compliance For more comprehensive and reliable manage- with the regulation. Base year 2004 ment of what little radioactive waste it generates, The first step will be to organize Achieved in 2006 the group set up a reporting system that factors collection of the data needed in the status of facilities (in operation or being to pinpoint the regulation’s impact 2006 objective on the group’s business. dismantled) and the different waste management This will help to identify the necessary methods. To this end, it developed computer actions, especially in terms of data tools, initiated retrieval and packaging programs acquisition, the supply chain and for legacy waste, and detailed a management downstream manufacturing activities. INCLUDING plan for waste from dismantling. The Cézus BIODIVERSITY platform was inventoried to gain a better Jarrie, La Hague, and Marcoule sites have in– GOALS understanding of the impacts of AREVA’s vested in improvements to radioactive waste To make biodiversity an integral part of its operations on biodiversity. The scope of the storage and packaging. environmental management practices, the study was expanded to include an appropriate In France, the law of June 28, 2006 instituted a group studied the practices of the most monitoring program. national radioactive waste and materials mana- advanced companies in that area. It also The update of the group’s environmental stra- gement plan and established a program of organized a biodiversity seminar in 2006 tegy provides for targeted impact studies on research and testing. The law sets the framework with eight international experts and represen- plant and animal life with an eye to better im- for waste processing and packaging operations tatives from each of the group’s business pact management. The studies are to be in the group’s facilities and for services offered to units. Plant and animal life in the aquatic and carried out in 2007, with priority given to the AREVA customers for radioactive waste storage, subaquatic environment near the Tricastin vicinity of mining sites. processing, packaging and transportation.
44 • areva 2006 areva 2006 • 45 8 RISK MANAGEMENT AND PREVENTION OBJECTIVES UPCOMING MILESTONES Publish the first annual report of the group’s general nuclear safety inspectorate. Test the application of additional indicators of safety performance. Document the procedure for using the International Nuclear Event Scale based on lessons learned in 2005. Deploy event analysis training with human factors component. Perform a simplified environmental risk assessment (SRA) or its equivalent on 100% of the sites with significant environmental aspects (SEA). Distribute handbook for human factors integration and assess the potential for expanding it to other fields. Continue evaluating health risks at all sites with significant safety aspects (SSA). Complete deployment of simplified risk assessments and health hazards assessments at SEA sites. Strengthen knowledge of safety regulations in countries in which AREVA does business.
Understand HUMAN FACTORS better to improve risk prevention and management
HIGH LEVEL performance, performance indicators and indi- had organized simplified environmental risk OF SAFETY cators of means or processes were defined, assessments (SRA). The objective is 100% AND TRANSPARENCY INES especially for internal control practices. These coverage in 2007. The sites will therefore The management and prevention of techno- International Nuclear Event Scale first indicators were tested in several different be able to assess the relevance and reliability logical risks is a top priority for AREVA, which units in 2007. of their prevention and protection systems. was reaffirmed in 2005 with the publication The La Hague AREVA includes health aspects in its risk of the Nuclear Safety Charter. Prevention, METHODICAL and impact assessments. By the end of 2006, vigilance, discipline, and control are all ANALYSIS OF plant, or SAFETY EVENTS 80% of all AREVA NC sites had assessed components of the cultural heritage of the their health hazards. This activity is being de- apprenticeship AREVA subsidiaries. This charter is helping To improve prevention, each safety incident ployed throughout AREVA NP and AREVA T&D to standardize practices and pool knowledge. is subject to in-depth technical analysis. Expe- in human factors (20% of all sites), and should be completed The need for a very high level of safety also rience has shown that human factors were by the end of 2010. To get a better grip on the human calls for a solid commitment to transparency: responsible for two out of three incidents over factor in risk prevention, the La Hague this is why AREVA publishes its inspection the past few years. To remedy this situation, plant set up a program of seminars reports describing the status of safety in its training in the analysis of events and “near in 2005 for field managers and a series of training sessions for operators. nuclear facilities. The first report was published events” was developed in December 2006 These sessions are illustrated by real in 2006. Commentary and analysis from in- and will be deployed in 2007. case studies and led by management house and independent inspectors (national The group’s work on human factors as applied staff, demonstrating that they, too, safety authorities) point to a generally satisfac- to safety will be expanded to cover occupa- are concerned by the requirement for reliability. tory situation. Three performance improvement tional safety, quality and the environment. The program aims to train goals were identified in the fields of perform- Maintaining the group’s safety culture is essen- 1,500 line personnel, facility operators, Major Accident ance measurement, safety culture awareness, tial to improving performance levels. Training maintenance personnel and radiation (Chernobyl) protection personnel. and in-depth events analysis. and communication programs were organized Major accident A total of 86 incidents were reported to the to maintain and improve safety-related skills The International Nuclear Event French safety authority in 2006, very similar in Accident with off-site risk and qualifications and thus encourage every- (Three Mile Island) Scale (INES) has been used number to those of previous years. On the internationally since 1991. one to apply the safety policies to their daily Accident without significant off-site risk It was designed to facilitate media International Nuclear Event Scale (INES), work. This issue is central to the activities of and public perceptions of the 75 events were ranked level 0 “deviation”, Major accident relative importance of incidents the group’s safety inspectors scheduled for 10 were ranked level 1 “anomaly”, and 1 event and accidents at nuclear facilities 2007. As risk identification and assessment is Incident and during the shipment was ranked level 2 “incident”. The latter event the key to all preventive actions, hazard studies of radioactive materials. resulted from non-compliance with an operat- Anomaly The events are ranked according are regularly conducted and updated at all ing instruction. An action plan was implemented to 8 levels, from 0 to 7, based on nuclear sites and environmentally-regulated No safety significance increasing severity. to heighten team awareness on the subject. facilities. At the end of 2006, 87% of all other To improve the measurement of safety sites with significant environmental aspects
46 • areva 2006 areva 2006 • 47 9 DIALOGUE AND CONSENSUS-BUILDING OBJECTIVES UPCOMING MILESTONES Report on the information exchange from the second Stakeholders Session, improve the process, Request an audit of the Cleanup business unit by the Vigeo rating agency. and expand the initiative to other geographical areas. Hold another Stakeholders Session. Continue the practice of sollicited ratings. Disseminate best dialogue practices and continue to conduct stakeholder mapping. Continue to implement stakeholder mapping based on best dialogue practices. Present the results of the harmonized radiological impact studies to the local information commissions. Implement “dialogue action plans” at the local level. Organize the local information commission in Niger.
Dialogue, a source of PERFORMANCE IMPROVEMENT
CONTINUING Ever since it was created, AREVA has been EXTERNAL CONSENSUS committed to dialogue and consensus building. BUILDING AREVA In 2003, it began structuring its relations with external stakeholders through targeted initia- The Stakeholders Sessions held in France and the public tives at the corporate and local levels. Deploy- under the aegis of Comité 21 are one exam- debate in France ment of these initiatives prompted Innovest ple of the group’s external consensus building. to qualify the group’s policy of external stake- The first sessions took place in late 2004/early For the French nuclear industry, holder relations as a “strength” of the group’s 2005. Two new sessions were held in Decem- 2006 was an important year. Two public debates were organized sustainable development commitment. ber 2006 and January 2007 in accordance by the government, one on long-term with a predetermined agenda. The corporate
waste management that culminated departments involved mobilized to report to RESPONDING TO LOCAL Consolidated in passage of legislation, and the stakeholders on their progress and ask for other on EDF’s plan to build an STAKEHOLDER EXPECTATIONS ESS report for Evolutionary Pressurized Reactor MORE EFFECTIVELY their opinions and proposals for updating the (EPR) at Flamanville. AREVA pursued commitments and broadening the strategies Local stakeholders were mapped following the Tricastin Site its commitment to promoting and performance improvement plans. dialogue on energy issues by a methodology developed at four pilot sites, AREVA at Tricastin means actively participating in both debates, which was then expanded to six other sites 2,730 employees and five industrial providing technical information in 2005 and to nine more in 2006. Priority was and answering questions about its STRUCTURING plants with operations in different operations. AREVA also contributed given to the major nuclear sites and sites DIALOGUE stages of the nuclear fuel fabrication to the Energy Review launched regulated under Seveso laws in France, cycle. AREVA NC specializes in uranium chemistry, Comhurex in in 2006 by the British government. Germany and the United Kingdom. The method In 2006, the group strengthened dialogue with uranium conversion, FBFC in fuel The group took pains to show how allows the sites to compare their own percep- stakeholders in Niger. A Steering Committee nuclear power, used in combination components, Socatri in cleanup with renewable energies and better tions of local stakeholder expectations with presided over by the prefect of Arlit and and maintenance, and Eurodif in energy efficiency, can provide a actual stakeholder expectations. By the end of consisting of local elected representatives, enrichment. These entities published AREVA in Niger their first consolidated environmental, solution to Great Britain’s energy 2006, more than 210 stakeholders had been representatives of civil society, and the admin- social and societal report (ESS) in 2006. supply and environmental challenges. “AREVA has been in Niger for 40 years through its Cominak and Somaïr subsidiaries. interviewed. istrations concerned was set up to determine This initiative will give stakeholders In 2006, some sites that are geographically priority areas for action and distribute projects Mining is the only industrial activity in this isolated desert region. The personnel are a more accurate view of the impacts 99% Nigerien. In this context, there are great expectations of the group. Our actions close to each other coordinated their initiatives. among the townships. Project oversight is of the group operations on the regional focus on access to education, improving health and living conditions, and also aid environment. This was the case for two AREVA T&D sites and provided by a technical committee of prefec- for local economic development. It is vital for us to take action within a framework an AREVA NP site in Lyon, France. Participating tural supervisors and mining company repre- that is consistent with all the organizations and people involved. We want to help sites used the results of stakeholder mapping sentatives. In 2005, AREVA initiated the creation install a development process rather than just give isolated aid. Keeping up a to develop “dialogue action plans” that will be of a local information commission (CLI) made dialogue is essential if we are to succeed. This is why we have intensified our implemented beginning in 2007. up of Steering Committee members and rep- resources and our consensus building practices. ” Disseminating best dialogue practices via resentatives of civil society. It held its first meet- Moussa SOULEY, Mining business unit - Niger the intranet and expanding the process to ing in May 2006. Its mission is to debate any new sites is helping to strengthen local dia- subject related to the impact of mining opera- logue activities. tions and local economic development.
48 • areva 2006 areva 2006 • 49 10 COMMUNITY INVOLVEMENT OBJECTIVES UPCOMING MILESTONES Minimize the consequences of restructuring on people and the community. Pursue humanitarian aid programs with greater involvement of employees.
Support local economic development in areas in which the group operates. Increase the internationalization of projects. Organize our integration activities in the Nigerien communities. Build public awareness of activities carried out by the Foundation. Set up a corporate foundation oriented towards humanitarian aid.
A local answer to ECONOMIC AND SOCIETAL CHALLENGES
SUPPORTING The AREVA Foundation to be created in 2007 ments are documented in the Aids policy the first country in which the group began THE ECONOMIES will work in the fields of knowledge sharing, finalized in December 2006. taking action, a lengthy consensus building OF OUR COMMUNITIES North/South development, access to energy AREVA acts through international bodies. The process resulted in the signature, on December 1, In France, AREVA works with local and national and the fight against global warming. group has been a member of the Global 2006, of a partnership agreement between the Consignity: partners for local economic development and Business Coalition on HIV/Aids since 2004 government of Niger, AREVA and the public Funding for higher diversification. The group has successfully PURSUING and is also a member of Sida-Entreprises- interest group Esther for the prevention and the last kilometer minimized the social impacts of the restructur- HUMANITARIAN “Aids-companies”. The CEO attended the Euro- treatment of Aids in the Agadez region. In education scholarships AID PROGRAMS ing operations it has had to carry out, so that “no pean summit of business leaders on the fight China, an assessment mission was conducted As part of its policy to support the in Niger economic development of regional person is left out.” AREVA has been actively involved in the against Aids in October 2006, and AREVA in 2006. An awareness and personnel training employment pools, AREVA is providing In 2006, aid for local economic development fight against Aids for several years. In 2006, was actively involved in World Aids Day. campaign began in December. A similar initia- On December 1, 2006, AREVA CEO support to Consignity, a French company around the T&D division’s sites focused on in- the Aids Committee consisting of representa- In countries in which it is based, AREVA takes tive will begin in India in 2007. An awareness Anne Lauvergeon, the Nigerien Minister based in Troyes, via its development tegrating the disabled and youths from “sensi- tives from the operating entities and corporate action in the field in association with NGOs campaign for French employees started in of Secondary and Higher Education, capital company AREVADelfi. Research and Technology, and the Consignity delivers small packages tive” neighborhoods. In the Meuse and Haute- departments was set up. The group’s commit- committed to the fight against Aids. In Niger, late 2006. Nigerien Minister of Mining and Energy weighing less than 30 kg to a network Marne departments of France, where the signed a five-year agreement in Niamey of remotely managed package centers feasibility of a deep geological repository for to grant scholarships for excellence to Nigerien students. The scholarships to reduce transportation costs and nuclear waste is being studied and the Bure pollution. In fact, the last kilometer will go to engineering students (5 years of a delivery represents 30% of the underground research laboratory has been higher education after the baccalauréat) transportation costs and generates set up, the group is supporting the creation and senior technicians (3 years of higher significant pollution due to city traffic and development of local enterprises. In 2006, education after the baccalauréat) in the and parking problems. Deliveries are fields of mining, geology, ore processing, 150 jobs were created and training initiatives AIDS prevention consolidated in easily accessible locations the environment and civil engineering. through the use of these secure package were launched. program The Mining business unit, the Human centers. The cost, time and pollution linked Resources department and AREVA’s to the last kilometer are thus reduced. GETTING INVOLVED Patronage and Sponsorship Committee Five package centers have already been A special program was set up for “migrant” are all involved in the project. IN THE FIGHT workers involved in the construction of the installed in Paris. AREVADelfi provided AGAINST AIDS Higher technical education is a strong Consignity with 60,000 euros, which 2008 Olympic Games facilities in Beijing. driver of economic development. plans to create 12 jobs over the next Through this project, conducted in For Niger, ranked last for human three years. Every year, AREVADelfi Since 2002, the Committee for patronage and partnership with the World Bank, several development, this type of support supports around ten local projects. sponsorships has selected projects submitted information and awareness sessions were is of critical importance. held with migrant workers in Beijing. to the group, with preference given to the AREVA’s program supplements the fields of health, education and the environment tri-annual partnership with the Pasteur in Southern Hemisphere countries. In 2006, Institute of Shanghai. One of the program new programs were conducted in China, India, components involves organizing a training seminar for health professionals on the Mongolia, Brazil and South Africa. Local health risks associated with the Aids virus. patronage committees were created in the United States and in Niger.
50 • areva 2006 areva 2006 • 51 governance, SHARE INFORMATION AND shareholdeR RELATIONS Corporate governance
Strategy committee Audit committee (1) RESPONSIBILITIES RESPONSIBILITIES Supervisory Board • Responsible for advising the Supervisory Board on the strategic • Assesses and contributes to the definition of the group’s objectives of the company and for assessing the risks and merits accounting, financial and business ethics standards. Ensures their of major strategic decisions proposed by the Executive Board to relevance and effectiveness and verifies internal control procedures. the Supervisory Board. • Undertakes studies on particular points at the request Members appointed Members representing • Ensures enforcement of the group’s strategic policy. of the Supervisory Board or on its own initiative. by the shareholders the French state, appointed • Orders studies as it deems useful, and recommends policies • Reviews the company’s proposed budgets, annual financial by ministerial order as it deems necessary. statements and multiyear plans. Frédéric Lemoine (2) • Examines the conclusions of the Statutory Auditors so as MAIN ACTIVITIES IN 2006 Chairman of Bruno Bézard to assist the Supervisory Board in its monitoring and verification mission. Recommends successors or term renewals for the the Supervisory Board Term: 2006-2011 • Issuance of concurrence with the undertaking MAIN statutory auditors. Term: 2006-2011 ACTIVITIES of the Georges Besse II project. • Establishes a risk map and assesses resources for (1) RESPONSIBILITIES IN 2006 • Review of the 2007-2011 strategic action plan and issuance Pierre-Franck Chevet managing risk. Alain Bugat Term: 2007-2011 of concurrence. • The Supervisory Board • Nomination of Vice Chairman of • Review of several business cases, including implementation of exercises ongoing control the Chairman of the MAIN ACTIVITIES IN 2006 the Supervisory Board Philippe Faure the Georges Besse II project, the priorities in the range of new reactor of AREVA’s management Supervisory Board and models, the group’s offering in dismantling and cleanup, and the • Examination of the financial statements for 2005 and of the report Term: 2006-2011 Term: 2006-2011 by the Executive Board of the members of the future of wind energy, including the potential prospects for AREVA. of the Chairman of the Supervisory Board on internal controls. and approves the group’s four committees. • Examination of the 2006 internal audit plan. Patrick Buffet (2) Luc Rousseau overall strategy. 3 MEETINGS 73% ATTENDANCE RATE • Examination of the status of the OL3 project and Term: 2006-2011 Term: 2006-2011 • Nomination of of the consolidated financial results as of June 30, 2006. • The annual and the members of the • Examination of the conclusions and recommendations multi-year budgets Executive Board. of the internal audit report on the OL3 project. Commissariat à l’énergie Members elected by and of AREVA, of its direct atomique (CEA) representing the employees subsidiaries and of the • Approval of AREVA NC’s 7 MEETINGS 96% ATTENDANCE RATE group are submitted to acquisition of 50% of the Represented by Olivier Pagezy Jean-Claude Bertrand the Supervisory Board shares of the ETC joint Term: 2006-2011 Term: 2002-2007 for approval. venture.
(2) Thierry Desmarest Gérard Melet • Review of the guidelines Compensation End-of-Life-Cycle Term: 2006-2011 Term: 2002-2007 6 MEETINGS for the group’s research and innovation program. and nominating Obligations Monitoring Oscar Fanjul (2) Alain Vivier-Merle
Term: 2006-2011 Term: 2002-2007 89% • Approval of the committee committee ATTENDANCE RATE 2007-2011 strategic RESPONSIBILITIES RESPONSIBILITIES Philippe Pradel action plan (SAP). Term: 2006-2011 • Recommends compensation levels, pension and disability • Helps monitor the dedicated asset portfolio set up plans, and non-cash benefits for corporate executives to the to cover future cleanup and decommissioning expenses. • Approval of the 2007 (2) Supervisory Board. Reviews estimated future cleanup and decommissioning Guylaine Saucier budget proposal. Term: 2006-2011 • Examines the appropriateness and conditions for expenses based on a multiyear schedule; methods used implementation of stock purchase plans for executives, to set up, manage and monitor funds earmarked to cover • Approval of the management and employees. these expenses; and the corresponding financial asset extension of AREVA’s • Gives an opinion to the Supervisory Board on appointments management policy. interest in the share capital of corporate officers for first-tier subsidiaries of the AREVA group. of REpower Systems AG*. • Reviews the records of individuals considered for a seat on ` MAIN ACTIVITIES IN 2006 * On January 19, 2007. the Executive Board. • Examination of assessment of end-of-life-cycle (1) As of March 1, 2007 liabilities and covering assets as of year-end 2005. (2) Following commonly accepted rules MAIN ACTIVITIES IN 2006 • Examination of new proposals from the Executive of good governance, particularly those • Issuance of concurrence on the 2006 objectives Board concerning asset management. of the Bouton Report, individuals who hold less than 10% of the share capital for the members of the Executive Board. • Analysis of portfolio performance objectives and and who have no financial or commercial For complete information on the terms • Proposal for nominations by the Supervisory Board management constraints. relationship with the company, either of members of the Executive Board. as customer or supplier, are considered of the members of the Supervisory Board, independent. please see our 2006 Reference Document. 5 MEETINGS 86% ATTENDANCE RATE 6 MEETINGS 94% ATTENDANCE RATE
54 • AREVA 2006 AREVA 2006 • 55 Corporate governance
Science and Ethics Executive Board (1) committee RESPONSIBILITIES AREVA’s Science and Ethics committee supports the group’s reviews of major social issues linked to the energy sector and Executive Board members formulates recommendations to the Chairman of the Executive Board. Anne Lauvergeon Chief Executive MAIN ACTIVITIES IN 2006 Officer of AREVA • The innovation policy of the AREVA group. Term: 2006-2011 MAIN ACTIVITIES • Chernobyl 20 years later: the effects of radiation, the life of RESPONSIBILITIES IN 2006 the populations surrounding Chernobyl, radiophobia, the role Values Gérald Arbola of the media. Chief Operating • Full powers are • Examination of • Sustainable development: psycho-sociological issues in Officer of AREVA vested in the Executive the Georges Besse II industrialized and developing countries; requirements for water Term: 2006-2011 Board to act on behalf project. Charter and energy (advantages, risks and issues). of the Company in • Forecasts of demand elasticity as a function of price trends The Values Charter, a set of criteria that enter into Didier Benedetti all circumstances with • Acquisition for different forms of energy. the scope of audits, is applicable to all of the group’s Chief Operating regard to third parties, of Sfarsteel. executives and employees. At each level, management Officer of AREVA NC excepting powers • Examination of the Term: 2006-2011 expressly attributed is responsible for implementing the Values Charter. strategic action plan. by law to the The Charter covers our values, our action principles Luc Oursel (2) Supervisory Board • Examination of the and our rules of conduct. The group’s business ethics President & CEO and to the Meetings research and innovation advisor, appointed by the CEO of AREVA, advises of AREVA NP of the Shareholders. program. management in the event of conflicts concerning Term: 2007-2011 the application of the Values Charter, designs and • The Board meets as • Status of execution often as the company’s of the OL3 project. oversees training programs in ethics and group values interests dictate. in liaison with AREVA University, and provides • Establishment of a leadership for a network of coordinators in the first-tier subsidiary in Canada. subsidiaries. The values are the essence of the group’s sustainable development initiative. They include integrity, excellence, responsibility, sincerity, 14 MEETINGS partnership, profitability and customer satisfaction. Respect for human rights, made clear from the Charter’s 97% preamble, is woven throughout the charter, which ATTENDANCE RATE refers explicitly to the UN Global Compact and to the OECD Guidelines for Multinational Enterprises.
To learn more The AREVA Values Charter is available on our website www.areva.com The ten principles of the Global Compact may be found (1) As of March 1, 2007. at www.unglobalcompact.org (2) Appointed January 2, 2007 to replace Vincent Maurel, who The OECD Guidelines for Multinational Enterprises are available resigned on December 28, 2006. at www.oecd.org
56 • AREVA 2006 AREVA 2006 • 57 Organization of the group (1)
Executive Committee
1 Anne Lauvergeon Chief Executive Officer of AREVA
2 3 4 5 6 7 Gérald Arbola Alain-Pierre Raynaud Didier Benedetti Philippe Guillemot Luc Oursel Philippe Vivien Chief Operating Chief Financial Chief Operating Chairman and CEO President and Executive Vice Officer of AREVA Officer of AREVA Officer of AREVA NC of AREVA T&D CEO of AREVA NP President of AREVA, Member of the Member of the Member of the Human Resources Executive Board Executive Board Executive Board
17 MEETINGS
5 4 2 3 1 7 6 NUCLEAR EXECUTIVE COMMITTEE
Corporate Departments REACTORS TRANSMISSION FRONT END AND SERVICES BACK END & DISTRIBUTION 21 DIVISION DIVISION DIVISION DIVISION MEETINGS Thierry d’Arbonneau, Protection of Assets and Personnel Marc Andolenko, Audit MINING, CHEMISTRY, PLANTS TREATMENT, PRODUCTS Guy Bousquet, Sustainable Development and Continuous ENRICHMENT Xavier Jacob RECYCLING, Marius Vassoille Improvement Olivier Mallet EQUIPMENT LOGISTICS Service Alain Bucaille, Research and Innovation Jacques Besnainou FUEL Guillaume Dureau Laurent Demortier Patrick Champalaune, Purchasing Ralf Güldner AREVA T&D EXECUTIVE COMMITTEE NUCLEAR SERVICES CLEANUP SYSTEMS Jean-Jacques Gautrot, International and Marketing Joël Pijselman Yves Lapierre Michel Augonnet Bernard de Gouttes, Legal Affairs NUCLEAR MEASUREMENT ENGINEERING AUTOMATION Alain-Pierre Raynaud, Finance Frédéric Van Heems Claude Jaouen Laurent Demortier François-Xavier Rouxel, Strategy CONSULTING AND Jacques-Emmanuel Saulnier, Communications INFORMATION SYSTEMS Benoît Tiers, Information Systems Stéphane Senkowski 38 MEETINGS Philippe Vivien, Human Resources AREVA TA Dominique Mockly RENEWABLE ENERGIEs Bertrand Durrande (1) As of March 30, 2007.
58 • AREVA 2006 AREVA 2006 • 59 Share information
and shareholder relations SHAREHOLDERS at December 31, 2006 Share IC holders (float)4% information
Trading exchange: Euronext
French state 87% 4% of AREVA’s share capital is traded on Euronext Paris Market: Eurolist by Euronext – Compartment B in the form of investment certificates (IC), i.e. shares without voting rights. Index: SBF 120 / MID CAC 100 Commissariat à l’énergie atomique 79% The AREVA IC is included the SBF 120 index of Euronext Paris. 1,429,108 investment certificates listed French state 5% Since AREVA’s establishment on September 3, 2001 through March 30, 2007, the price of the company’s investment certificate Érap 3% Total number of outstanding shares and ICs: 35,442,701 has risen by 410%, outperforming the CAC 40 index, which gained 21.7% over the same period, while the EuroStoxx 50 index gained 13.3%. Caisse des dépôts et consignations 4% In 2006, the investment certificate posted growth of 38.8%, compared with 17.5 % for the CAC 40 index and 15.1 % for the Eurostoxx 50 index. • 34,013,593 shares The average daily volume traded was 5,255 ICs in 2006, compared with 7,127 ICs in 2005 and 7,697 ICs in 2004. • 1,429,108 investment certificates Listed ICs 4% € € € In terms of value, the average daily volume traded came to 2.7 million in 2006, up from 2.5 million in 2005 and 1.9 million in 2004. • 1,429,108 voting-right certificates EDF 2% Framépargne* 2% Codes: • ISIN FR: 0004275832 TOTAL 1% AREVA INVESTMENT CERTIFICATE PRICE IN 2006 • Reuters: CEPFI.A * Framépargne : fund in which AREVA employee shares are held under the Group Savings Plan. Some of the shares (0.85%) are held by Calyon, the bank that ensures • Bloomberg: CEI the liquidity of Framépargne
Custodian services CACEIS CT Investor Relations 14, rue Rouget-de-Lisle % 92130 Issy-les-Moulineaux Cedex 09 – France 8.46 + 38.8 Tel.: +33 (0)1 57 78 34 44 Fax: +33 (0)1 57 78 34 00 2006 DIVIDEND The Combined General Meeting of Shareholders of May 3, 2007 approved E-mail: [email protected] a dividend of €8.46 per share or investment certificate. This dividend corresponds to a distribution rate of 46% of consolidated net income IC PRICE (in euros) and will be paid on June 30, 2007.
700
600 IC TRADING DATA 2006 2005 2004
500 Price at December 31 (in euros) 563.0 405.5 335
Market capitalization at December 31 (in millions of euros) 19,954 14,372 11,873 400 High (in euros) 650.0 460.5 335
Low (in euros) 403.0 301.0 197.2 300 Average daily volume (in number of ICs) 5,255 7,127 7,697
(in millions of euros) 200 Average daily volume 2.7 2.5 1.9 Net earnings per share or IC (in euros) 18.31 29.6 12.07
100 Net dividend (in euros) 8.46 9.87 9.59 1/31/2001 12/31/2001 12/31/2002 12/31/2003 12/31/2004 12/31/2005 12/31/2006 2/28/2007 1/31/2007
60 • AREVA 2006 AREVA 2006 • 61 Share information and shareholder relations
Our objective: to implement best practices Financial communications program for financial communications on the internet The purpose of financial communications is to provide accurate infor- The sixth session took place in India in April, 2007. It provided an op- mation to shareholders on the group’s markets, businesses, financial portunity to review the Transmission & Distribution division and to give www.areva.com performance and strategy. an overview of India’s energy challenges. The Group also organized three plant site tours in 2006. The mission of AREVA’s website is to provide detailed, Financial information is of major importance to AREVA. Any information high quality information in real time. The Finance section presents AREVA’s businesses in the context of global of a financial, business, organizational or strategic nature that may Several publications and media are used to disseminate this informa- energy challenges, the group’s strategic objectives, be of interest to the financial community is provided through press tion, including the reference document, the activity and sustainable and the financial performance of its operations. releases, more than 30 of which were published in 2006. development report, and the website www.areva.com. AREVA’s financial communications on the Web received The French business journalists association (UJJEF*) awarded the a Boursoscan runner-up award in 2006 in the “Best site - Every year, the group holds an information meeting on its financial best annual report prize for 2005 to AREVA’s Activity and Sustainable Small and Mid Caps” category. performance and a telephone conference to comment on half-year Development Report. A panel of professionals selected AREVA’s results. Press releases accompany these events as well as the publica- report from among 16 others in its category after reviewing close to tion of quarterly sales figures. 200 applications. Individuals interested in receiving press releases by e-mail may regis- During road shows organized in 2006 by investment brokers, AREVA’s ter on the group’s website, which also features a schedule of upcoming financial communications team reached out to 671 investors in France events and announcements. and in key financial centers. Shareholders have 24-hour access to a dedicated e-mail address and a reduced toll number in France. The AREVA Technical Days program (ATD) was launched in 2002 to introduce the group’s businesses and technologies. Since then, six sessions have been held, each time with 100 to 150 people attend- ing, including financial analysts, investors, journalists and financial Contacts Calendar * Union des Journaux et des Journalistes d’Entreprise de France (since June 2003: investment advisors. UJJEF - Communication et Entreprise). Frédéric Potelle JULY 26, 2007 Vice President, Financial Communications First half 2007 sales revenue. and Investor Relations Tel.: +33 (0)1 34 96 14 08 AUGUST 30, 2007 [email protected] First half 2007 financial results. Manuel Lachaux Financial Information OCTOBER 25, 2007 and Analysis Manager Third quarter 2007 sales revenue 671investors met in France Tel.: +33 (0)1 34 96 11 53 and related information. and in key financial centers. [email protected]
Pauline Briand to participants 100 150 Marketing and Retail Shareholding Manager at each session of AREVA Technical Days. Tel.: +33 (0)1 34 96 14 02 [email protected] retail SHAREHOLDER RELATIONS More than 30 press releases to the financial community in 2006. [email protected]
62 • AREVA 2006 AREVA 2006 • 63 Glossary
ANDRA (AGENCE NATIONALE POUR LA CORE • Lethal dose: fatal dose of nuclear or chemical ELECTRICITY TRANSMISSION EPR (EVOLUTIONARY POWER GOVERNANCE GESTION DES DÉCHETS RADIOACTIFS) Part of a nuclear fission reactor comprising the origin. NETWORK REACTOR) Designates the organization of authority within Established in 1979, this environmental protec‑ nuclear fuel and arranged so as to foster the fis‑ • Maximum allowable dose: dose that should not Network for electricity transmission from the New generation pressurized water reactor with a company (corporate governance) and seeks tion organization reports to the French Ministry sion chain reaction. be exceeded over a given period. power plant to the distribution network. It covers 1,600 MWe of power. the right mix of management bodies, oversight of Economy, Finance and Industry and to the large geographical areas. The transmission bodies and shareholders. In terms of sustainable Ministry of Regional Development and the DIRECTION GÉNÉRALE DE LA SÛRETÉ DOSIMETRY network includes high voltage and very high FLORENCE FORUM development, good governance presupposes Environment. Andra operates independently NUCLÉAIRE ET DE LA RADIOPROTECTION An assessment or measurement method used voltage power lines, transformers and switch‑ A consensus building and regulating process transparency, dialogue with stakeholders, and of waste generators. It has three areas of res‑ (DGSNR) to determine the radiation dose absorbed by a gear equipment. in the electricity field initiated by the European addressing stakeholder expectations. It means ponsibility: French government agency reporting to the substance or an individual. Commission in 1998 which guided the establish‑ corporate commitment to guiding principles, • industrial management of short-lived radioac‑ Ministers of Industry, the Environment and END-OF-LIFE-CYCLE OBLIGATIONS ment of a single market for electricity. which give rise to internal charters. tive waste, Health. Its specific functions are to define and ECO-DESIGN Term covering all stages following the shut‑ • research on very long-term management of implement policy in the fields of nuclear safety Refers to the integration of the environment into down of a nuclear or mining facility at the end FUEL ASSEMBLY GLOBAL REPORTING INITIATIVE (GRI) solutions for long-lived waste, (civilian applications) and radiation protection the design of goods and services. All products of its operating life, from final closure to the re‑ Bundle of fuel rods filled with uranium or MOX Launched in late 1997 by the Coalition for Envi‑ • an inventory of all waste on French soil. and, in particular, to verify safety-related meas‑ affect the environment at one point or another moval of radioactivity at the site, including pellets. The core of a reactor contains from ronmentally Responsible Economies (CERES), ures taken, contemplated or implemented by in their life cycle. The goal of eco-design is to physical dismantling and decontamination of 100 to 200 fuel assemblies, depending on the an NGO, in partnership with the United Nations BIOFUEL operators in the nuclear sector, and to monitor reduce those impacts while preserving, or in‑ all non-reusable facilities and equipment. reactor type. Environment Program, the Global Reporting Liquid fuel produced by the conversion of veg‑ liquid and gaseous effluent and waste from deed improving, product utility. In the eco-design Initiative is actively supported by member com‑ etable matter produced by agriculture (beets, licensed nuclear facilities. process, environmental parameters are added ENERGY MARKET MANAGEMENT FUEL CYCLE panies, NGOs, accounting organizations, labor wheat, corn, rape seeds, sunflower seeds, pota‑ to other design parameters, such as technical SYSTEM The combination of industrial operations in‑ associations and other interested parties around toes, etc.). Biofuels are associated with a source DISPOSAL OF RADIOACTIVE WASTE feasibility, cost effectiveness, and customer Management software for energy markets volving nuclear fuel. These operations include the world. The GRI developed and disseminated of renewable energy. (see also storage) requirements. that allows power generators and distributors uranium ore mining and processing, uranium guidelines that provide a framework and a Radioactive waste management operation con‑ to manage their commercial relations more conversion and enrichment, fuel fabrication, standard format for reporting quantitatively and BIOTOPE sisting of disposing of packaged waste in a ECO-EFFICIENCY effectively. The software provides strategic used fuel treatment, recycling of recovered qualitatively on corporate performance in the A biological environment presenting stable specially designed area that will ensure safety When a company wants to reduce its environ‑ planning, risk management, optimum pro‑ fissile materials, and waste management. The three areas of sustainable development. habitat conditions to a set of plant and/or animal without time limitation. mental impacts as well as its costs, it initiates an cessing of transactions, and customer account fuel cycle is said to be “closed” when it includes species. eco-efficiency process. This process involves an management. used fuel treatment and recycling of fissile GREENHOUSE GASES DOSE analysis of the environmental impacts of its prod‑ materials recovered by such treatment. The Gases present in the atmosphere that may BLACKOUT Unit of measure used to characterize human ucts, processes and services. ENRICHMENT “open” or “once-through” fuel cycle consists be produced naturally or by human activity. A widespread power outage that occurs after a exposure to radiation. The term “dose” is often Process by which uranium’s content of fissile of the final disposal of the fuel after it has been They create a greenhouse effect, helping to local power outage and affects the entire grid. erroneously used in place of “dose equivalent”. ELECTRICITY DISTRIBUTION isotopes is increased. Natural uranium consists used in the reactor. warm the earth and make it livable. But beyond It can cut off electricity to an entire region or • Absorbed dose: amount of energy absorbed NETWORK of 0.7% 235U(fissile isotope) and 99.3% 238U a certain threshold, their build-up in the atmos‑ even wider area. by living or inert matter exposed to radiation. It is Network that delivers electricity locally to end- (non-fissile isotope), as well as very small quanti‑ GASEOUS DIFFUSION phere causes global warming, which interferes expressed in grays (Gy). users: industries, businesses, service providers, ties of 234U. The proportion of 235U is increased Process for separating molecular species in with the climate. The main greenhouse gases are CENTRIFUGATION • Dose equivalent: the same absorbed dose residences, etc. Electricity is distributed at to around 3-4% to make it usable in a pressurized gaseous form that uses the difference in the carbon dioxide (CO2), nitrous oxide (N2O), meth‑ Enrichment process in which a gaseous mixture may have different effects on a living organism, medium voltage (12,000-24,000 V) and gradu‑ water reactor. velocity of these molecules, due to their ane (CH4), fluorinated hydrocarbons (HFC), sulfur of isotopes is spun at very high speed; it uses depending on the type of radiation involved ally reduced to low voltage at the point of end different mass and dimensions, and thus the hexafluoride (SF6) and perfluorocarbons (PFC). the centrifugal force to modify the composition (X-rays or alpha, beta or gamma radiation). use (230 V in Europe, 110 V in the United States). ENVIRONMENTAL MANAGEMENT different rates at which they pass through of the mixture. A dose multiplier, or “quality factor”, is used to SYSTEM (EMS) a semi-permeable membrane. This is how take these differences into account in calculating ELECTRICITY NETWORK An environmental management system is a the uranium hexafluorides 235UF6 and 238UF6 235 CO2 the dose, giving a “dose equivalent”. MANAGEMENT SYSTEM systematic process for identifying and im‑ are separated, causing enrichment in U for Carbon dioxide, the leading greenhouse gas, • Effective dose: sum of weighted dose equiva‑ Systems to optimize electricity flows, prevent proving environmental performance that may nuclear fuel. produced primarily by burning fossil fuels (coal, lents delivered to various tissues and organs by equipment overloads, limit line losses and analyze culminate in certification. oil, natural gas, etc.). internal and external irradiation. The effective outage risks. dose unit is the sievert (Sv).
64 • AREVA 2006 AREVA 2006 • 65 Glossary
PRIMARY ENERGY – FINAL ENERGY RADIOACTIVITY • Boiling Water Reactor (BWR): nuclear reactor INSTITUT DE RADIOPROTECTION ET INTERNATIONAL NUCLEAR EVENT NUCLEAR SAFETY Primary energy consists of commodities such as Emission by a chemical element of electromag‑ in which boiling pressurized water is used to DE SÛRETÉ NUCLÉAIRE (IRSN) SCALE (INES) In the nuclear industry, nuclear safety encom‑ oil and natural gas, which must be converted netic waves and/or particles caused by a change remove the heat from the reactor. Organization responsible for conducting research An international scale used to define the severity passes all of the measures taken at each stage of before they can be used, as opposed to final in its nucleus. Emission can be spontaneous • Pressurized Water Reactor (PWR): nuclear and assessments in the fields of nuclear safety, of an event occurring in a nuclear facility. the design, construction, operation and final shut‑ energy, which is ready to be consumed. Final (natural radioactivity of certain unstable atoms) reactor moderated and cooled by light water human safety and environmental protection, and down of a facility to ensure operational safety, energy is a little more than one-third of primary or induced (artificial radioactivity). maintained in the liquid state in the core nuclear materials transportation safety. The IRSN ISO STANDARDS prevent incidents, and limit their impact. energy. The difference comes from output losses Radioactivity has several forms: through appropriate pressurization under provides technical support to the DGSNR. International standards from the International in the energy system. • Emission of alpha particles (combination normal operating conditions. Standards Organization (ISO). The ISO 9000 ORGANIZATION FOR ECONOMIC of 2 protons and 2 neutrons), called “alpha ra‑ INTERCONNECTION standards set organizational and management COOPERATION AND DEVELOPMENT (OECD) RADIATION PROTECTION diation”. RENEWABLE ENERGY Connection between two national power grids system requirements to demonstrate that a International organization formed of the leading Term commonly used to designate the branch - The particles making up alpha radiation are Historically, the first energy sources used by or regional power grids, which are generally product or service meets customer quality industrialized nations, including the European of nuclear physics concerned with protecting helium 4 nuclei that are highly ionizing but man were renewable. Supplied by the sun, the synchronous (50 or 60 Hz). Direct current is need‑ requirements. The ISO 14000 standards set Union, whose purpose is to help member govern‑ people from ionizing radiation (also referred to as not very penetrating. A single sheet of paper wind, the earth’s heat and water falls, these ener‑ ed to connect two asynchronous grids, which is requirements for environmental management ments develop economic and social policies and “health physics”). By extension, the term “radia‑ stops them. gies are, by definition, naturally replenished complex and costly to implement. organizations and systems designed to prevent to encourage and harmonize member country tion protection” covers all of the health measures • Emission of electrons, known as “beta radia‑ after they have been consumed, and are inex‑ pollution and reduce the environmental effects support to developing countries. taken to protect the health of members of the tion”. haustible over very large periods of time. There INTERGOVERNMENTAL PANEL of an activity. public and workers from such radiation and to - The particles making up beta radiation are are six types of renewable energy: solar energy, ON CLIMATE CHANGE (IPCC) PACKAGING comply with laws and regulations. electrons with a negative or positive charge. They wind energy, hydropower, geothermal energy, Multilateral organization established in 1988 by KYOTO PROTOCOL • Fuel packaging: special packaging for used can be stopped by a few meters of air or a single biomass and biogas. the United Nations Environment Program and The Earth Summit held in Rio in 1992 signaled fuel to prepare it either for interim storage or for RADIOACTIVE HALF-LIFE sheet of aluminum foil. the World Meteorological Organization to assess global awareness of the risks of climate change. final disposal. The time it takes for half of the atoms contained • Emission of electromagnetic waves, known SEVESO, SEVESO REGULATIONS scientific data on climate change and report on In 1997, the Kyoto Protocol set limits for signa‑ • Waste packaging: operation consisting of in a given quantity of radioactive substance to as “gamma radiation”. European directive aimed at preventing major this subject. tory countries and penalties for polluting coun‑ converting waste into a form suitable for trans‑ disintegrate naturally. The radioactivity of the - Electromagnetic radiation similar to light and accidents involving hazardous materials and tries that emit greenhouse gases. portation and/or storage and/or final disposal. substance is thus divided in that amount. The X rays. Thick, compact materials (concrete, lead) requiring in particular the development of emer‑ INTERNATIONAL ATOMIC ENERGY - Very low-level radioactive waste (vinyl, cleaning radioactive half-life varies with the characteristics are needed to stop it. gency response/management plans, public AGENCY (IAEA) MOX (“MIXED OXIDES”) rags, etc.) is placed in steel drums. of each radioelement: All of these different types of radiation are information and urban zoning near high-risk in‑ The IAEA is one of the autonomous organizations Mixture of uranium and plutonium oxides from - Low- and medium-level waste is first compacted • 110 minutes for argon 41 (Ar41); grouped together under the general heading dustrial sites. affiliated with the United Nations. Its role is to in‑ used nuclear fuel treatment serving to fabricate to reduce its volume, then packaged, i.e. encap‑ • 8 days for iodine 131 (I131); of “ionizing radiation”. crease the contribution of civilian atomic energy certain nuclear fuels. sulated in a concrete, bitumen or resin matrix • 4.5 billion years for uranium 238. The radioactivity of an isolated quantity of an SITES WITH SIGNIFICANT to international peace and prosperity, and to to form solid blocks capable of withstanding element gradually decreases over time as the ENVIRONMENTAL ASPECTS (SEA) ensure that it is used for peaceful purposes. NON-GOVERNMENTAL ORGANIZATION environmental conditions. RADIOACTIVE WASTE unstable nuclei dissipate. The half-life is the In AREVA’s frame of reference, sites with signifi‑ (NGO) - High-level waste is incorporated into a glass Non-reusable by-products of the nuclear industry. time required for the radioactivity of a radioactive cant environmental aspects include our nuclear INTERNATIONAL ENERGY AGENCY Non-profit association or group that is unaffiliated matrix using the vitrification process. The vitrified The four classes of waste are based on radioac‑ substance to decrease by half. sites, sites with facilities representing major (IEA) with States and whose purpose is to promote waste is placed in stainless steel canisters. tivity levels: man-made risk per Seveso regulations, mining The IEA is a multilateral organization that coordi‑ and defend collective interests. • very low-level waste (VLLW); REACTOR, NUCLEAR REACTOR sites, plants with facilities subject to public nates the energy policies of its 26 member PLUTONIUM • low-level waste (LLW) from operations and main‑ System in which controlled nuclear reactions are inquiry, and industrial or service sites whose con‑ nations. It contributes to the security of energy NUCLEAR FUEL Chemical element with the atomic number 94 tenance, such as gloves, booties, face masks, etc., conducted, producing heat that is used to make sumption, releases and pollution carry significant supply, economic growth and environmental A nuclide that undergoes fission in a reactor, and conventional symbol Pu. Plutonium 239, a which make up 90% of the waste sent to licensed steam. The steam activates a turbine, which weight in the group’s environmental accounting. protection. It was established in 1974 as an thereby releasing energy. By extension, a prod‑ fissile isotope, is produced in nuclear reactors disposal facilities; drives an electric generator. Different reactor independent branch of the Organization for uct containing fissile material which supplies from uranium 238. It is recovered through the • medium-level waste (MLW), such as dismantled types use different fuel, moderators (to control STORAGE Economic Cooperation and Development energy in the reactor core by maintaining the treatment of the used nuclear fuel to fabricate production equipment, measurement instrumenta‑ the reaction) and coolants (to remove heat used (see also disposal of radioactive waste) (OECD). chain reaction. MOX. tion, etc. (8%); to generate power). The pressurized water reac‑ Temporary storage of radioactive waste. • high-level waste (HLW), mainly fission products tor (PWR) currently used by EDF uses slightly that have been separated during used fuel treat‑ enriched uranium fuel and pressurized light wa‑ ment and recycling operations (2%). ter as the moderator and coolant.
66 • AREVA 2006 AREVA 2006 • 67 Glossary Learn more
WEBSITES STORAGE POOL URANIUM WORLD BUSINESS COUNCIL FOR Basin in which used nuclear fuel assemblies Chemical element with atomic number 92 and SUSTAINABLE DEVELOPMENT (WBCSD) INTERNATIONAL ATOMIC ENERGY LARADIOACTIVITE.COM WORLD BUSINESS COUNCIL FOR are stored after they are unloaded from a reactor atomic symbol U, which has three natural Established in 1995 at the initiative of the Interna‑ AGENCY (IAEA) This site explains what radioactivity is in simple SUSTAINABLE DEVELOPMENT (WBCSD) until they lose most of their radioactivity. The isotopes: 234U, 235U and 238U. The only naturally tional Chamber of Commerce, the WBCSD The IAEA is one of the autonomous organiza‑ terms, from its discovery to its many applications The WBCSD has 180 industrial members com‑ water shields personnel from the radiation emit‑ occurring fissile nuclide is 235U, a quality that is brings together some 180 international compa‑ tions affiliated with the United Nations. Its role is in science, industry, medicine and daily life. mitted to sustainable development ted by the used nuclear fuel. exploited as a source of energy. nies from 35 countries and more than 20 busi‑ to increase the contribution of civilian atomic www.laradioactivite.com www.wbcsd.org ness sectors. It is the international opinion leader energy to international peace and prosperity, and SULFUR HEXAFLUORIDE (SF6) URANIUM HEXAFLUORIDE (UF6) on sustainable development issues. to ensure that it is used for peaceful purposes. SOCIÉTÉ FRANÇAISE DE L’ÉNERGIE WORLD ENERGY COUNCIL (WEC) Industrial gas classified as a greenhouse gas* The uranium contained in nuclear fuel must be www.iaea.org NUCLÉAIRE (SFEN) The 80-year-old World Energy Council is the with a high global warming potential (22,200 times enriched in fissile235 U. The gaseous diffusion or WORLD NUCLEAR ASSOCIATION (WNA) A non-profit association that promotes the foremost global multi-energy organization in that of CO2). Widely used in the metallurgical and ultracentrifugation processes used to enrich the World industrial organization whose purpose is AGENCE NATIONALE POUR LA GESTION advancement of nuclear science and technol‑ the world today. The WEC has committees in electronics industry as insulation for electrical uranium require that it first be converted into a to promote the peaceful uses of nuclear power DES DÉCHETS RADIOACTIFS (ANDRA) ogy, and contributes to any form of information more than 90 countries. The organization covers equipment. gas called “uranium hexafluoride”. as an energy resource in tune with sustainable Public industrial and commercial organization on matters pertaining to this type of energy. all types of energy: coal, oil, natural gas, nuclear, development imperatives. responsible for radioactive waste disposal in www.sfen.org hydropower and renewable energies. TRANSFORMER STATION (SUBSTATION) USED FUEL France. Under the government’s oversight, www.worldenergy.org Interface between sections of a power network Condition of nuclear fuel after it has been used in ZIRCONIUM ANDRA is charged with verifying waste qual‑ ASSOCIATION OF POWER that operate at different voltages. In the substa‑ a reactor. Transition metal, like titanium, discovered in 1824 ity; designing, siting, building and managing EXCHANGES (APEx) WORLD NUCLEAR ASSOCIATION (WNA) tion, voltage is transformed and electricity supply by Berzélius. Zirconium has the atomic number disposal centers, where waste is placed based APEx was formed to facilitate the exchange of International industrial organization whose flows are controlled. VITRIFICATION 40 in the periodic table of the elements. It is the on its characteristics. ideas and practices between operators in global purpose is to promote the peaceful uses of nu‑ Process used to solidify concentrated solutions alloy base in the cladding of light water reactor www.andra.fr competitive electricity markets. clear power as an energy resource in tune with TREATMENT OF USED NUCLEAR FUEL of fission products and transuranic elements fuel elements, chosen for its mechanical strength www.theapex.org sustainable development imperatives. The WNA Operation consisting of extracting fissile and separated during used nuclear fuel treatment and corrosion resistance in high temperature COMITÉ 21 is particularly focused on nuclear power genera‑ fertile materials (uranium and plutonium) for later by mixing them with a glass matrix at high tem‑ water combined with its very low thermal neutron French association established in 1994 to pro‑ ELECTRIC POWER RESEARCH tion and on the stages of the nuclear fuel cycle. recycling into fresh fuel (MOX). Treatment also perature absorption. mote implementation of commitments made at INSTITUTE (EPRI) www.world-nuclear.org. serves to package the different types of waste the Rio Earth Summit in Brazil. EPRI is a non-profit energy research consorti‑ into forms suitable for disposal. Fission products VOLATILE ORGANIC COMPOUND (VOC) www.comite21.org um. It was founded in 1973 to benefit utility WWW.GIMELEC.FR and transuranics are vitrified. Chemical compound, such as gasoline or ace‑ members and their customers. Its mission is French industry association for electrical equip‑ tone, that evaporates at ambient temperature. COMMISSARIAT À L’ÉNERGIE to provide science and technology-based ment, automation and related services. UNITED NATIONS DEVELOPMENT When exposed to sunlight, VOC reacts with ATOMIQUE (CEA) solutions of indispensable value to global en‑ PROGRAM (UNDP) other gases in the atmosphere to form ozone and The CEA is a key player in research, development ergy customers by managing a far-reaching www.fieec.fr The UNDP is the United Nations’ worldwide other photo-oxidants. and innovation in France in three fields: energy, program of scientific research, technology Federation of electrical, electronic and commu‑ development network. Its role is to help develop‑ information and health technologies, and development and product implementation. nication industries. Its members consist of ing countries by providing advice and advocating defense. Its objectives are to become the Euro‑ www.epri.com 22 trade associations and 1,200 high-tech their cause to secure grants. pean leader in technology research and to companies in the electrical, electronic and com‑ ensure sustainable nuclear deterrence. munication sectors. It represents these compa‑ www.cea.fr nies before national and European bodies.
68 • AREVA 2006 AREVA 2006 • 69 Learn more
BOOKS
ONE PLANET FOR ALL NUCLEAR ENERGY IN 110 QUESTIONS NUCLEAR POWER Collective work sponsored by the World Direction générale de l’énergie et des matières “Comprendre l’avenir” Collection, Energy Council, 2003, 174 pages, available premières (DGEMP) (in the process of updating; Éditions Hirlé – 131, rue Boecklin, from the French chapter: CME, 3, rue Treilhard, may be consulted at www.industrie.gouv.fr). 67000 Strasbourg, France. 75008 Paris, France. This book aims to offer summary-level informa‑ This book is for everyone, from teenagers to It shows the linkages with everything in our envi‑ tion on nuclear energy in simple terms. The status professionals in nuclear power, electricity and ronment and advances the idea that energy of nuclear power in France and across the globe energy. With its clear, understandable ap‑ solutions for humanity cannot be discussed is described in 12 short chapters, which serve as proach, it’s a good introduction to this industry. without awareness of how energy is used and an introduction to a series of questions reflecting From its first applications to power generation, greater emphasis on the social and sustainable concerns by average citizens. this book explains the technical as well as eco‑ development aspects. nomic and political aspects of nuclear power. NUCLEAR ENERGY TODAY It contains a long discussion of the long-term ALL ABOUT NUCLEAR ENERGY, Nuclear Energy Agency of the OECD, 2003. outlook for nuclear technologies (fast reactors, FROM ATOM TO ZIRCONIUM 120 pages, available from the NEA, Le Seine- fusion). The long-term applications of nuclear 2003. 159 pages, can be ordered Saint-Germain, 12, boulevard des Iles, 92130 energy beyond the generation of electricity at www.areva.com. Issy-les-Moulineaux. are also discussed. Want to know everything there is to know about This book provides authoritative and detailed nuclear energy? This is the book. Author Bertrand replies to questions raised about nuclear energy Barré, former director of scientific communica‑ today. Written primarily to inform policy makers, tions at AREVA, and his team of experts give it will also interest industry leaders, academics, general information on energy, nuclear reactors, journalists and members of the public. the fuel cycle, waste, radiation protection, nu‑ clear proliferation and many other subjects. WORLD ATLAS OF SUSTAINABLE DEVELOPMENT LESSONS FROM MARIE CURIE Éditions Autrement – 77, rue du Faubourg- By Marie Curie, Isabelle Chavannes, Saint-Antoine, 75011 Paris, France. EDP Sciences, 2003. Author Anne-Marie Sacquet, General Manager This unpublished book contains the lessons in of Comité 21, presents the world’s major sustain‑ elementary physics that Marie Curie gave in able development themes in this atlas. 1907 to her daughter Irène and to the children of her colleagues as part of a “teaching coopera‑ tive”. Marie Curie put together the ten lessons herself for children of around 10 years old: dis‑ cerning the air void, how water makes it to the faucet, the Archimedes principle, and others.
70 • AREVA 2006 PHOTO CREDITS P. Bauduin/AREVA, P. Dolemieux/AREVA, J.-F. Gabéran/AREVA, Image & Process/AREVA, P. Lesage/ AREVA, J.-C. Marmara/AREVA, C. Pauquet/AREVA, R. Quatrain/AREVA, J.-P. Salomon/AREVA, F. Socha/AREVA, J.-M. Taillat/AREVA, P. Troyanowsky/AREVA, L. Urman/AREVA, W. Wright/AREVA, AREVA A. Gonin/CEA, R. Talaie/Corbis, Entergy, K. Phillips/Getty Images, B. Pincham/Getty Images, Corporate Communications Department R. F. Sisson/Getty Images, K. Wood/Getty Images, Médiathèque EDF, Paramount Pictures Corporation, REpower, B. Forsaeter/Vattenfall, Westinghouse. 33, rue La Fayette – 75009 Paris – France
Tel.: +33 (0)1 34 96 00 00 – Fax: +33 (0)1 34 96 00 01 9001. ISO and 14001 ISO under certified fabricated paper on France in Printed – production: and Design – 2007 July – Department Communications Corporate www.areva.com
Business corporation with an Executive Board and a Supervisory Board Energy is our future, don’t waste it! capitalized at €1,346,822,638. Registered office: 27-29, rue Le Peletier – 75009 Paris – France Tel.: +33 (0)1 44 83 71 00 – Fax: +33 (0)1 44 83 25 00 www.areva.com