2012 Reference document 2012 Reference document This Reference Document was fi led with the Autorité des marchés fi nanciers (AMF, the French fi nancial market authority) on March 28 , 2013, in accordance with article 212-13 of its general regulations. It may be used in support of a fi nancial transaction if it is accompanied by an off ering circular signed by the AMF. This document was prepared by the issuer and is binding on those signing it. This is a free translation into English of the AREVA group’s Reference Document for 2012, which is issued in the French language, and is provided solely for the convenience of English speaking readers. Contents 1 PERSON RESPONSIBLE 8 5 INFORMATION ABOUT THE ISSUER 39 1.1. Person responsible for the Reference Document 8 5.1. History and development of the issuer 39 1.2. Attestation by the person responsible 5.1.1. Legal and commercial name of the issuer 39 for the Reference Document 8 5.1.2. Place of registration of the issuer and registration number 39 5.1.3. Date of incorporation and length of life of the issuer 39 5.1.4. Additional information 40 STATUTORY AUDITORS 10 5.1.5. Important events in the development of the issuer’s 2 business 40 2.1. Statutory Auditors 10 5.2. Additions 41 2.2. Deputy Auditors 10 2012 42 2011 42 2010 42 SELECTED FINANCIAL INFORMATION 11 3 2009 42 Summary data 11 2008 42 Outlook 43 RISK FACTORS 12 4 BUSINESS OVERVIEW 44 4.1. Risk management and coverage 13 6 4.1.1. Risk management 13 6.1. Markets for nuclear power and renewable energies 47 4.1.2. Risk coverage and insurance 15 6.1.1. Nuclear power and renewable energies in the global energy landscape 47 4.2. Legal risk 16 6.1.2. Nuclear energy markets 52 4.2.1. Regulatory risk 16 6.1.3. Renewable energies market 54 4.2.2. Contractual and commercial risks 19 6.2. AREVA’s Customers and Suppliers 55 4.2.3. Material risks and disputes involving AREVA 20 6.2.1. Customers 55 4.3. Industrial and environmental risk 21 6.2.2. Suppliers 57 4.3.1. Nuclear risk 21 6.3. Overview and strategy of the group 57 4.3.2. Chemical risk management 29 4.3.3. Other environmental risk 30 6.3.1. Overview 57 6.3.2. Strategy 60 4.4. Operational risk 31 6.3.3. Operating organization 63 4.4.1. Risk of interruption in the supply chain for products or services 31 6.4. Operations 65 4.4.2. Risk of default by suppliers, subcontractors, partners 6.4.1. Mining Business Group 65 and customers 31 6.4.2. Front End Business Group 79 4.4.3. Risk associated with dependency on the group’s 6.4.3. Reactors & Services Business Group 88 customers 31 6.4.4. Back End Business Group 100 4.4.4. Risk related to the information system 32 6.4.5. Renewable Energies Business Group 110 4.4.5. Unscheduled work in the production on products 6.4.6. Other 117 and services sold 32 4.4.6. Supplier concentration in the procurement chain 32 4.5. Risk related to major projects 33 7 ORGANIZATIONAL STRUCTURE 119 4.5.1. New reactor construction contracts 33 4.5.2. AREVA’s industrial projects 33 4.6. Liquidity and market risk 33 8 PROPERTY, PLANT AND EQUIPMENT 120 4.6.1. Liquidity risk 34 8.1. Principal sites of the AREVA group 120 4.6.2. Foreign exchange risk management 34 8.1.1. Corporate 120 4.6.3. Interest rate risk management 35 8.1.2. Mining Business Group 121 4.6.4. Risk associated with equity securities 8.1.3. Front End Business Group 122 and other fi nancial instruments 35 8.1.4. Reactors & Services Business Group 123 4.6.5. Commodity risk 35 8.1.5. Back End Business Group 124 4.6.6. Counterparty risk related to the use of derivatives 36 8.1.6. Renewables BG 124 4.6.7. Uranium risk 36 8.1.7. Engineering & Projects 124 4.7. Other risk 37 8.1.8. Scheduled investments 125 4.7.1. Political and economic conditions 37 8.2. Environmental issues that may aff ect the issuer’s 4.7.2. Risks related to the Group’s structure 38 use of property, plant and equipment 125 4.7.3. Human Resources risk 38 2 2012 AREVA REFERENCE DOCUMENT ANALYSIS OF AND COMMENTS PROFIT FORECASTS OR ESTIMATES 161 9 ON THE GROUP’S FINANCIAL POSITION 13 AND PERFORMANCE 126 ADMINISTRATIVE, MANAGEMENT 9.1. Overview 126 14 AND SUPERVISORY BODIES 9.1.1. Business trends 127 AND SENIOR MANAGEMENT 162 9.1.2. Key features of AREVA’s business model 128 9.1.3. Highlights of the period 128 14.1. Composition of the Executive Board 162 9.2. Financial position 131 14.2. Composition of the Supervisory Board 164 9.2.1. Summary of key data 131 14.3. Legal information, confl icts of interest 9.2.2. Summary data by business segment 132 and service contracts 164 9.2.3. Comparability of fi nancial statements 134 9.2.4. Backlog 135 9.2.5. Income statement 135 COMPENSATION AND BENEFITS 165 9.3. Cash fl ow 138 15 15.1. Compensation of directors and offi cers 165 9.3.1. Change in net debt 138 15.1.1. Members of the Executive Board 165 9.3.2. Comparative table of operating cash fl ows and consolidated cash fl ows 139 15.1.2. Members of the Supervisory Board 166 9.3.3. Operating cash fl ow 139 15.1.3. Compensation paid to the members of the Executive Board 166 9.3.4. Cash fl ows related to end-of-lifecycle operations 140 15.1.4. Compensation of members of the Supervisory Board 172 9.3.5. Consolidated statement of cash fl ows 140 15.2. Directors’ and offi cers’ shares of share capital 174 9.4. Statement of fi nancial position 141 9.4.1. Non-current assets 142 15.3. Audit fees 174 9.4.2. Operating working capital requirement 142 9.4.3. Net cash (debt) 142 FUNCTIONING OF CORPORATE BODIES 175 9.4.4. Equity 143 16 9.4.5. Assets and provisions for end-of-lifecycle operations 143 16.1. Functioning of the Executive Board 175 9.4.6. Capital employed and return on average capital 16.2. Functioning of the Supervisory Board 176 employed (ROACE) 144 9.4.7. Business Group Review 144 16.3. Functioning of the fi ve Committees established 9.5. Events subsequent to year-end closing for 2012 149 by the Supervisory Board 176 16.4. Observations by the Supervisory Board on the Executive Board’s management report 10 CAPITAL RESOURCES 150 and on the 2012 fi nancial statements 176 16.5. Report of the Supervisory Board Chairman on the preparation and organization of the Board’s 11 RESEARCH AND DEVELOPMENT activities and internal control procedures 177 PROGRAMS, PATENTS AND LICENSES 151 16.6. Statutory Auditors’ report, prepared in accordance 11.1. Research and development 151 with article L. 225-235 of the French Commercial Code, on the report prepared by the Chairman 11.1.1. Key fi gures 151 of the Supervisory Board of AREVA with respect 11.1.2. Overall organization of Research and Development 152 to internal control procedures related 11.1.3. Partnerships 153 to the preparation and treatment of fi nancial 11.1.4. Future directions in technology 154 and accounting information 177 11.2. Intellectual property 158 11.2.1. Patents and know-how 158 11.2.2. Brands 158 EMPLOYEES 178 11.2.3. Legal activities 159 17 17.1. Ongoing adaptation of the Human Resources 11.2.4. In 2013 159 organization to the group’s organization 178 17.1.1. A year of organizational and legal simplifi cation TREND INFORMATION 160 of the group 178 12 17.1.2. A coherent HR policy 178 12.1. Current situation 160 17.1.3. A group that capitalizes on sustainable HR tools 12.2. Financial objectives 160 and processes 181 17.1.4. Strong social dialogue in 2012 182 2012 AREVA REFERENCE DOCUMENT 3 18 PRINCIPAL SHAREHOLDERS 185 21 ADDITIONAL INFORMATION 312 18.1. Distribution of capital and voting rights 185 21.1. Share capital 312 18.2. Absence of diff erent voting rights 186 21.1.1. Amount of subscribed capital 312 21.1.2. Shares not representative of capital 313 18.3. Control of the issuer 187 21.1.3. Treasury shares 313 18.4. Agreement known to the issuer that could, 21.1.4. Liquidity contract 313 if implemented, result in a change in control 21.1.5. Convertible securities and warrants 313 of the issuer 187 21.1.6. Information on the terms of any acquisition right and/ or any obligations attached to capital subscribed but not paid, or any project to increase the share capital 313 TRANSACTIONS WITH RELATED PARTIES 188 21.1.7. Information on the capital of any member 19 of the group which is under option or subject to a fi rm 19.1. Relations with the French State 188 or contingent agreement contemplating an option 313 19.2. Relations with the CEA 189 21.1.8. History of the share capital 314 19.3. Relations with government-owned companies 189 21.1.9. Delegation of authority and authorizations granted to the Executive Board by the Shareholders for capital increases 314 FINANCIAL INFORMATION CONCERNING 21.1.10.