AREVA in 2007, growth and profi tability AREVA 33, rue La Fayette – 75009 Paris – France Tel.: +33 1 34 96 00 00 – Fax: +33 1 34 96 00 01 www.areva.com Energy is our future, don’t waste it! ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT If you only have a moment to devote to this report, read this. Our energies have a future. A future without CO2 OUR MISSION no.1 worldwide Enable everyone to have access to ever cleaner, safer and more economical energy. in the entire nuclear cycle OUR STRATEGY To set the standard in CO2-free power generation and electricity transmission and distribution. no.3 worldwide ■ Capitalize on our integrated business model to spearhead in electricity transmission and distribution the nuclear revival: – build one third of new nuclear generating capacities; – make the fuel secure for our current and future customers. ■ Ensure strong and profi table growth in T&D. OUR PERFORMANCE IN 2007 ■ Expand our renewable energies offering. Backlog With manufacturing facilities in 43 countries and a sales network in more than 100, € +55.4% AREVA offers customers reliable technological solutions for CO2-free power generation and 39.83B electricity transmission and distribution. We are the world leader in nuclear power and the only company to cover all industrial activities in this fi eld. Sales Our 65,000 employees are committed to continuous improvement on a daily basis, making sustainable development the focal point of the group’s industrial strategy. €11.92B +9.8% AREVA’s businesses help meet the 21st century’s greatest challenges: making energy available to all, protecting the planet, and acting responsibly towards future generations. Operating income €751M +84.6% Net income €743M +14.5% Customers across the globe Europe and CIS 56% of sales 71% of employees MANUFACTURING OPERATIONS Austria, Belgium, France, Germany, Greece, Hungary, Italy, Kazakhstan, the Netherlands, Norway, Poland, Russia, Slovakia, Spain, Sweden, Switzerland, Turkey, United Kingdom North and South America Asia-Pacifi c 17% of sales 19% of sales 13.5% of employees 11.5% of employees MANUFACTURING OPERATIONS MANUFACTURING OPERATIONS Argentina, Brazil, Canada, Chile, Colombia, Australia, China, India, Indonesia, Japan, Mexico, United States, Venezuela Malaysia, Pakistan, Singapore, Thailand Africa and Middle East 8% of sales 4% of employees MANUFACTURING OPERATIONS Central African Republic, Ivory Coast, Egypt, Namibia, Niger, South Africa, Sudan, United Arab Emirates The integrated offer serving energy professionals Nucléaire & Distribution Transmission FUEL Nuclear & Distribution Transmission CO2-FREE POWER GENERATION FABRICATION SOLUTIONS ENRICHMENT REACTORS CHEMISTRY USED FUEL RENEWABLE RECYCLING ENERGIES SERVICES MINING SOLUTIONS FOR RELIABLE ELECTRICITY TRANSMISSION TRANSMISSION AND DISTRIBUTION OTHER SOURCES OF ELECTRIC DISTRIBUTION POWER Harvesting business synergies for maximum competitiveness Nuclear Transmission & Distribution FRONT END REACTORS AND SERVICES BACK END TRANSMISSION & DISTRIBUTION • Uranium ore exploration, mining • Design and construction of nuclear • Treatment and recycling of used • Supply of products, systems and services and concentration. reactors and other CO2-free power nuclear fuel. for electricity transmission and distribution • Uranium conversion and enrichment. generation systems. • Cleanup of nuclear facilities. networks. • Nuclear fuel design and fabrication. • Supply of products and services • Nuclear logistics. for nuclear power plant maintenance, upgrades and operations. €3.14B in sales €2.72B in sales €1.74B in sales €4.33B in sales 26% of consolidated sales 23% of consolidated sales 15% of consolidated sales 36% of consolidated sales 12,577 employees 16,500 employees 10,638 employees 25,248 employees AT A GLANCE AT A GLANCE AT A GLANCE AT A GLANCE • Number 1 worldwide in the front end • Number 1 worldwide in pressurized water reactors • Number 1 worldwide in the treatment and • Number 1 worldwide in market management of the nuclear cycle. (in terms of installed capacity) and the only company recycling of used nuclear fuel. software and grid management software, • Production facilities in Europe, North America, in the world with four Generation III reactors under • Leader in used fuel transportation and storage. number 2 in high voltage products, Asia and Africa. construction or on order (EPR). • Main plant sites: La Hague and Melox, France. number 3 in medium voltage products. • Customers: leading nuclear power plant • World’s leading supplier of nuclear equipment • Customers: leading nuclear plant operators. • Manufacturing operations in more than operators. and services. 40 countries. • Turnkey supplier of wind turbines and biomass STRATEGIC PRIORITIES • Customers: 30,000 diversifi ed customers, STRATEGIC PRIORITIES power plants. • Strengthen used fuel treatment and recycling including integrated utilities, transmission and • Increase mineral resources and production. • Main manufacturing plants in France, Germany operations in France. distribution companies, electricity-intensive • Replace and expand production capabilities and the United States; additional plants in India • Market the technologies owned by the group industries and other infrastructure companies, in conversion and enrichment. and Brazil (biomass fi eld). worldwide. and distributors. • Strengthen positions in fuel fabrication • Strengthen the leadership position in used • Customers: leading operators of electric power STRATEGIC PRIORITIES by renewing our product portfolio. reactors, wind farm developers and operators of nuclear fuel storage. • Pursue efforts to improve processes, redeploy SUSTAINABLE DEVELOPMENT GOALS biomass-based cogeneration plants. • Market products and services related to the transportation of fuel and nuclear materials. manufacturing facilities and optimize the • Minimize the environmental impacts of disposal STRATEGIC PRIORITIES business portfolio. of mill tailings and nitrates and reclaim mine sites • Successfully complete the fi rst EPR projects (France, SUSTAINABLE DEVELOPMENT GOALS • Accelerate growth by intensifying marketing after closure. Finland, China). • Keep the environmental impacts of releases and sales and increasing manufacturing • Maintain a high level of safety in the use of raw • Broaden the reactor offering by drawing on industrial as low as possible. capacities, and through selective acquisitions materials and components. partners. • Limit the volume of operating waste that does in high-growth regions (China, India, etc.) • Reduce greenhouse gas emissions. • Strengthen engineering capabilities and secure not meet near-surface disposal acceptance or in certain market segments (high voltage, criteria. automation systems, etc.). • Contribute to the economic and social the supply chain. development of communities in which we • In reactor services, offer customers integrated • Keep worker exposure to radiation as low SUSTAINABLE DEVELOPMENT GOALS as reasonably achievable. do business. services that optimize their fl eet operations. • Expand eco-design approaches. • Maintain a high level of nuclear and occupational • Continue to monitor employee health. • Support R&D efforts on new generations of reactors • Reduce direct emissions of greenhouse gases and their applications. safety during nuclear materials transportation. • Apply eco-design concepts to new products linked to SF6 releases. and plant projects. • Become a recognized player in renewable energies. • Widely institute environmental management • Successfully transfer expertise related SUSTAINABLE DEVELOPMENT GOALS and occupational safety systems. to changing technologies. • Widely institute the use of eco-design approaches for products and services. • Continue to improve environmental management systems and safety at major construction sites. RESPECT FOR AREVA Way, THE ENVIRONMENT ENVIRONMENTAL a commitment to PROTECTION Limit our environmental sustainable development impacts by reducing our consumption of natural resources, controlling our releases and optimizing our waste management. Sustainable development is a keystone FINANCIAL INNOVATION PERFORMANCE of AREVA’s industrial strategy for achieving Develop and harness growth that is profi table, socially responsible Ensure the group’s best-in-breed technologies sustainability through to anticipate customer and respectful of the environment. long-term profi table needs and increase growth. our cost-competitiveness To translate this choice into reality, AREVA while complying with nuclear safety, occupational integrates sustainable development into safety and environmental protection requirements. its management practices via a continuous improvement initiative revolving around CUSTOMER GOVERNANCE CONTINUOUS RISK MANAGEMENT SATISFACTION IMPROVEMENT AND PREVENTION ten commitments. Manage our operations Listen to our customers, responsibly in accordance Implement a continuous Establish and maintain anticipate their needs, with the group’s values, improvement initiative the highest level of nuclear support their growth, and and assess and truthfully based on practices shared and occupational safety increase and measure report on our performance throughout the group. in all of the group’s their satisfaction. to shareholders and operations to preserve all stakeholders. public and worker health, and to protect the environment. COMMUNITY DIALOGUE INVOLVEMENT AND CONSENSUS BUILDING Participate in the economic and social Establish stakeholder development of relations based on trust. the communities in which