Understanding financial statements

This page contains a financial information summary structured around 3 main areas: consolidated income statement, consolidated balance sheet and cash flows.

Consolidated income statement

This table summarizes the AREVA group's performance during fiscal years 2008 and 2009.

In millions of euros	2010	2009	Var 09/10
Revenue (1) (1) Sales revenue In 2010, AREVA’s consolidated revenue rose 6.7% to 9.104 billion euros (+ 5.1% growth like-for-like¹) compared with 2009. The Mining-Front End Business Group and the Reactors & Services Business Group were the leading growth engines, with revenue growth of 6.7% and 8.9% respectively. Foreign exchange² had a positive impact of 141 million euros and the scope of consolidation remained stable over the period. ¹ Like for like, i.e. at constant exchange rates and consolidation scope ² Currency translation impact on financial statements	9,104	8,529	+6.7%
Other income from operations	45	61	(16)
Cost of sales	(7,824)	(7,508)	(316)
Gross margin	1,326	1,082	+22.6%
Research and development expenses	(354)	(346)	(8)
Marketing and sales expenses	(253)	(286)	+33
General and administrative expenses	(530)	(620)	+90
Other operating income and expenses	(612)	266	(878)
Operating income (2) (2) Operating income For the full year, operating income excluding particular items totalize 532 million euros, compared with 331 million in 2009. After recognition of the particular items, consolidated operating income is -423 million euros, compared with 97 million euros in 2009. Excluding particular items, operating income rose by 1.9 point, going from 3.9% in 2009 to 5.8% in 2010, giving operating income of 532 million euros (331 million euros in 2009) Review of operating income excluding particular items by Business Group: • Operating income excluding particular items for the Mining-Front End Business Group came to 391 million euros (10.5% of revenue), compared with 278 million euros in 2009 (8.0% of revenue). This noticeable increase is due in particular to the increase in AREVA’s average uranium sales price and volumes sold and to the drop in the average cost of mine production (-7% for the year). Performance improved in the Fuel business after restructuring in the United States. Overhead cost optimization plans in the European industrial base in Fuel and Enrichment had a positive impact on overall profitability for the Business Group. • The Reactors & Services Business Group reported operating income of 176 million euros (5.2% of revenue) excluding particular items, compared with 42 million euros in 2009. This strong increase is due to a higher business volume in Installed Base Business and by lower overhead costs and spending control in Research and Development. • The Back End Business Group recognized operating income of 280 million euros, for an operating margin of 16.4%, up 2 points from that of 2009 (14.4%). This is attributable to the increase in volumes treated at La Hague and good profitability of the cold crucible operations. • Operating income in the Renewable Energies Business Group was -123 million euros in 2010, compared with -60 million euros in 2009. The change is due to the resources deployed to resolve the technical difficulties encountered by the Alpha Ventus offshore wind farm – which now operates with 96% availability – and the development costs of the solar business following the takeover of the Californian company Ausra in March 2010.	(423)	97	(520)
Income from cash and cash equivalents	37	14	+23
Gross borrowing costs	(195)	(128)	(67)
Net borrowing costs	(158)	(113)	(45)
Other financial income and expenses	(156)	301	(457)
Net financial income	(314)	187	(501)
Income tax	334	138	+196
Share in net income of associates	153	(152)	+305
Net income from continuing operations	(250)	270	(520)
Net income from discontinued operations	1,236	267	+969
Net income for the period	986	537	+449
Minority interests	103	(15)	+118
Net income attributable to equity holders of the parent (3) (3) Net income attributable to equity holders of the parent Net income attributable to equity owners of the parent came to 883 million euros in 2010, an increase of 331 million euros compared with 2009. • Net income from discontinued operations was 1.226 billion euros. This primarily relates to the gain on the sale of the Transmission & Distribution business. • The share in net income of associates rose to 153 million euros in 2010, compared with -152 million euros in 2009, reflecting the significant improvement in STMicroelectronics’ and Eramet’s results. • Net financial income came to -314 million euros in 2010, compared with 187 million euros in 2009, which benefitted from the gain on the disposals of Total and GDF Suez shares. It was impacted in 2010 by the loss of 101 million euros recognized on the disposal of STMicroelectronics shares. • Tax income rose to 334 million euros in 2010, compared with 138 million euros in 2009.	883	552	+331
Comprehensive income	1,408	341	+1,067
Average number of shares outstanding, excluding treasury shares	353,890,531	353,897,800	NS
Basic earnings per share (in euros)	2.49	1.56	+59.6%

Consolidated balance sheet

This table lists all of the AREVA group's assets and liabilities during the fiscal years 2009 and 2010.

In millions of euros

December 31, 2010

December 31, 2009

ASSETS

Goodwill

(1) Goodwills

Net goodwill went from 4,366 million euros at
31 December, 2009 to 4,625 million euros at 31 December, 2010, or a net increase of 259 million euros.

4,625

4,366

Property, plant and equipment (PP&E) and intangible assets

9,901

8,576

Assets earmarked for end-of-life-cycle operations

5,834

5,626

Investments in associates

988

1,635

Other non-current financial assets

477

860

Operating working capital requirement

(92)

(62)

Net assets from discontinued operations*

832

5,649

LIABILITIES

Equity

9,578

7,574

Provisions for end-of-life-cycle operations

(2) End-of-life-cycle operations

The change in the balance sheet from December 31, 2009 to June 30, 2010 with regard to assets and provisions for end-of-life cycle operations is summarized in the table below.

(in millions of euro)	December 30, 2010	December 31, 2009
ASSETS
End-of-life-cycle assets	395	422
- of which AREVA share (to be amortized in future years)	143	147
- of which third party share	252	275
Assets earmarked for end-of-life-cycle operations	5,590	5,351
LIABILITIES
Provisions for end-of-life-cycle operations	5,815	5,660
- of which provisions for end-of-life-cycle operations (AREVA share)	5,563	5,385
- of which provisions for end-of-life-cycle operations (third-party share)	252	275

5,815

5,660

Other provisions

3,064

2,911

Other assets and liabilities

(3) Cash and other financial assets

The group’s net financial debt comes to 3.672 billion euros at December 31, 2010 (based on the 2007 valuation of the debt to Siemens i.e. 2.049 billion euros, plus accrued interest) compared with 6.193 billion euros at December 31, 2009. The 2.521-billion euro reduction is due to the cash generated by the disposal of the Transmission & Distribution business (3.124 billion euros), by the transactions on Safran securities in the amount of 636 million euros, and by the 900-million euro capital increase, which helped largely offset the free operating cash flow described above, as well as the payment of dividends for 2009 to AREVA SA shareholders in the amount of 250 million euros.

These amounts should be compared with equity of 9.578 billion euros at December 31, 2010, compared with 7.574 billion at year-end 2009.

The group’s gearing thus went from 45% in 2009 to 28% in 2010, illustrating the notable strengthening of the group’s balance sheet. As part of this process, AREVA’s Supervisory Board will not propose to the Annual General Meeting of Shareholders the payment of a dividend for 2010.

In addition, the group's liquidity was reinforced in 2010 by a fourth bond issue of 750 million euros. Excluding the debt to Siemens, the group has no major reimbursement due before 2016.

909

777

Net debt**

3,672

6,193

Total – Simplified balance sheet

23,039

26,800

* Excluding equity from discounted operations
** Including debt to Siemens

Consolidated Cash Flow Statement

In millions of euros	2010	2009	Var 10/09
Cash flow from operations before interest and taxes	538	132	+406
Net interest and taxes paid	(184)	(15)	(169)
Cash flow from operations after interest and tax	354	117	+237
Change in working capital requirement	234	43	+191
Net cash flow from operating activities	588	160	+428
Net cash flow from investing activities	(621)	(379)	(242)
Net cash flow from financing activities	(531)	1,116	(1,647)
Decrease (increase) in securities recognized at fair value through profit and loss	(8)	(77)	+69
Impact of foreign exchange movements	12	3	+9
Net cash from discontinued operations	2,243	(219)	+2,462
Increase / (decrease) in net cash	1,683	603	+1,080
Cash at the beginning of the year	1,481	877	+603
Cash at the end of the year	3,164	1,481	+1,683