Financial performance

Concrete objectives

• Pursue goals set for 2011:
  • Capture one-third of the global market for nuclear energy 
  • Develop a strong position in renewable energy
• Deploy the Sustainable Development Declaration for Suppliers
• Conduct audits of selected suppliers to ensure compliance with the Sustainable Development Declaration for Suppliers
• Integrate feedback and opinions from external stakeholders to continue involving suppliers in sustainable development
• Implement the industrial excellence initiative within group entities
• Achieve a double-digit operating margin
• Reach a largely positive level of operational cash flow

Tangible results

Growth and profitability

The strength of our business model and excellent visibility on our markets enabled record growth in 2008. The figures speak for themselves: sales increased 10.4% year over year, to 13.2 billion euros, and 34% over 5 years.

The backlog of orders is even more telling. At the end of the year, it stood at 48.2 billion euros, more than double its 2004 level. This situation gives AREVA strong visibility over the medium and long term, with some customers having entered into contracts that extend beyond 2040.

The group saw its operating income grow to 1.17 billion euros, compared to 1 billion the previous year, excluding provisions for the OL3 project in Finland. Even with these provisions included, operating income remains positive and considerable at 417 million euros.

Net income attributable to equity holders of the parent was 589 million euros on December 31, 2008, compared with 743 million euros on December 31, 2007.

Investing to meet our customers’ needs

Many growth factors

The current climate offers AREVA a number of growth drivers:

1. A resurgence in nuclear power
2. Production capacity renewal
3. Development of renewable energy
4. Growing demand in developing countries

An ambitious policy

In order to ensure long-term growth, AREVA is pursuing a capital investment program to develop its strategic positions.

AREVA plans to grow first through internal growth, but also through a selective approach to acquisitions. Safety, sustainable development, profitability and shareholder value are integral components of this strategy.

The group launched a major capital investment program to develop or replace some of its production capacity and to acquire strategic technologies and production methods. This investment program aims to guarantee the performance of production assets against a backdrop of growth in all businesses. It should enable the group to achieve the market share and profitability objectives set for 2012.

Acquisitions that meet selective strategic and financial criteria may also be considered.

Leveraging factors that create

Financial Performance

AREVA’s financial performance is the result of a number of factors:

1. The company’s own resources and processes: employees, commercial production, management systems, etc.
2. Cash flow from external players: customers, suppliers, authorities, financial markets, etc.

AREVA has initiatives and measures that focus on developing these factors.

These examples show how our suppliers’ increased awareness of our sustainable development expectations enables us to improve our overall performance:

• In 2008, 80% of invoiced purchases were supplied by companies that had signed the Sustainable Development Declaration.
• In 2009, all new commercial partners were systematically required to sign the Sustainable Development Declaration.