China's electricity consumption has grown substantially from 1995 to 2020 with annual growth rates around 8-10%. This growth is driven by China's strong economic growth. To sustain this growth while ensuring environmental sustainability, China is expanding renewable energy and nuclear power. AREVA aims to increase its presence in China by developing new partnerships and increasing localization. India's electricity consumption is also growing rapidly at around 7% annually to meet population and economic growth. India plans to increase nuclear power generation fivefold by 2032 to sustain this growth. AREVA has a strong position in India's transmission and distribution market and hopes to increase cooperation on nuclear power.

1. Appendix 7
Outlooks China and India

2. China: strong growth in power
consumption
Electricity consumption 1995-2020
5622
17.02%
14.44%
12.94%
3631
11.62% 3360
3110
2 880
8.60% 2 670
2 470
2 187
8.61% 1 911 8.10% 7.87% 7.99% 8.04% 8.07%
1 633
1 463
1 347
1 002
1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2020
Annual consumption (in TWh) Annual growth
Source: “11th Five-Year” Power Grid Development Planning of SGCC and Perspective Target in 2020
> Overview – January 2009
2

3. China: the energy challenges
70% of coal
reserves
Secure economic growth Better
developed
80% of hydraulic
Regions
resources
Minimize energy dependency
Ensure sustainable development
Ensure social stability by reducing disparities: electricity for all at
an affordable price
Take action on environmental issues, both for existing pollution
and global warming
Expand the interconnection market (HVDC) for electricity
transmission to densely populated, developed areas
Nuclear power and advanced T&D technologies
have a major role to play
> Overview – January 2009
3

4. China: overview of the
energy sector
Per capita consumption is still low and very disparate
Insufficient installed capacity
600 GW installed as of the end of 2006, with a target of 1000 GW by 2020
A promising market
China’s capital spending on new generating capacity and in the
transmission and distribution sector is expected to rise to 50 billion dollars
per year from 2006 to 2010
China’s electricity transmission and distribution market represents 24% of
the world market
Renewable energies law adopted in 2005 to fight CO2 emissions
Renewable energies’ share is expected to rise from 3% in 2003 to 10-12%
by 2020
China is already the biggest market for biomass power generation
> Overview – January 2009
4

5. China: AREVA’s positions
More than 2,600 employees: 2000 employees for T&D
More than 780 million euros sales in 20071
JV AREVA-
DONGFANG
(DEC) Reactor Coolant
Pumps Company Ltd
SNE (Shenzhen
Nuclear Engineering)
Nuclear services
1 Sales by destination in 2007 (not including the products manufactured in China and exported overseas)
> Overview – January 2009
5

6. China: AREVA T&D’s
operations in China
China’s T&D market represents 24% of the world market
Substantial capital expenditure is required in light of the country’s
rising energy consumption
More than 322 million euros in sales in 20071
Breakdown of the Chinese T&D market in 2007:
ABB
12%
SIEMENS
7%
AREVA
3%
Local players = Others
Japan-Korea
49%
70% of the market 4%
Other MNCs
2%
XD Group
9%
TBEA
4%
XJ Group
2% TWBB
Nari
PingGao 2%
ShenGao 3%
2%
1%
1) Sales by destination in 2007 (not including products manufactured in China and exported overseas)
> Overview – January 2009
6

7. China: T&D Market Growth
T&D Market Drivers
Fast industrialization (2007 Industrial production growth: +17%)
Urbanization and improved living standards
Need for infrastructures and appliances
51,0%
52%
50,0% 50,4%
50%
48%
47%
48%
45%
46%
44%
43%
44%
41,8%
40,5%
42%
40%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Urbanization rate
Need to efficiently connect distant power generation and main
consumption centers (UHV and HVDC opportunities)
2007 annual capacity increase = 90 GW (~ UK installed capacity)
> Overview – January 2009
7

8. China: AREVA T&D’s goals
Develop new partnerships with Chinese companies and
institutes
Seize opportunities that could lead to manufacturing
capacity increases, whether through internal or external
growth
Increase localization in China in research and
manufacturing, and continue to improve related service
quality in China
Develop solutions to meet the challenge of electricity
transmission over very long distances (HVDC, etc.)
> Overview – January 2009
8

9. China: nuclear power’s share is expected
to quadruple by 2020
Total installed capacity in 2006: 600 GW, mostly thermal
Nuclear
1.5%
Hydraulic
22.8%
Thermic
75.7%
Nuclear power’s share is still limited in China: 9 GW,
corresponding to 1.5% of total installed generating capacity in
China
Objective: 6% by 2020, i.e. 60 GW
> Overview – January 2009
9

10. China: nuclear civilian sites
11 reactors in operation – 6 under construction
> Overview – January 2009
10

11. China: AREVA role in the development
of the nuclear fleet
Built by AREVA
Qinshan I - 1991 A strong presence in
the newly built plants Significant Participation
Daya Bay - 1994 (Supply, assistance, …)
Projects to come
Qinshan II phase 1 – 2002; 2004
200x Commissioning date
Qinshan III – 2002; 2003
Ling Ao I – 2003
Tianwan – 2007?
Ling Ao II – 2010; 2011
Qinshan II phase 2 – 2011; 2012
A wide offer
Hongyanhe – 2012; 2013
of services, equipments
and fuel
Taishan – 2013; 2014
for the whole fleet
Other project Gen 2 & 3
1990 2000 2010 2015
> Overview – January 2009
11

12. China: the largest contract
ever signed
in the nuclear business
Construction
of 2 EPR
nuclear islands
Material and Services
for 15 years of operation
Bn
€8
Discussions to start
on cooperation for
treatment and
recycling
> Overview – January 2009
12

13. China: renewable energies outlooks
AREVA Bioenergy
600 to 900 MW to be installed yearly to reach 20 000 MW installed
capacity by 2020
Annual market turnover related to boiler island expected
to exceed 200 M€ by 2012
No market saturation foreseen before 2012.
AREVA’s technology, based on its operating feedback,
is an asset in the stiff competition with local boiler manufacturers
AREVA aims at:
Developing local boiler engineering and sourcing competences,
combining AREVA mastered technology and low cost manufacturing,
Booking a first boiler order in 2008
Reaching 10% share of the domestic biomass boiler market by 2012
> Overview – January 2009
13

14. India: to sustain the growth in consumption,
capacities need to be multiplied by 5
Power consumption should grow
by 7% p.a. from 2004 to 2032 CAGR 7% p.a.
778 GW
3,630 TWh
153 GW
590 TWh
2004 2007 2012 2022 2032 2007 2012 2022 2032
Thermal Hydroelectric Renewables Nuclear Thermal Hydro Renewables Nuclear
Source: Planning Commission of India – August 2006 Source: Government of India -Planning Commission August 2006
Key drivers Capex requirement
Population growth (x 1.5 from 2000 This scenario is based on 6 to 8 GW
to 2050) of additional LWR imports in the next
10 years
GDP growth (8% per year in this scenario)
It is also assumed that capital
Increase in electricity access (57% of the
expenditure is shared with private sector
rural households and 12% of the urban
households had no access to electricity
in 2000)
> Overview – January 2009
14

15. India: T&D investments are expected to reach
€31Bn between 2007 and 2012
Market drivers T&D planned investment*
(€Bn, 2007-2012)
12.2
+21%
Transmission Network
+13% 8.8
Distribution Network
+50% 10.5
Rural Electrification
31.5
Total investment Planned
* T&D investment including cables and OH lines Source: Indian Planning Commission, Aug2006
> Overview – January 2009
15

16. India: AREVA T&D has
a strong competitive position
Major land marks:
T&D India Market share 2007
70% market share in the EMS
ABB
segment for Transmission networks
20%
Others
Supplied and commissioned India’s
40%
first 765 kV substation in 2007 for
AREVA NTPC Sipat plant
15%
20% of HVDC inter-regional linkages
Largest number of GIS references
Siemens
L&T
12% in India
2%
CGL BHEL
6% 5% Network Consultancy contract for
Reliance Energy’s Delhi & Mumbai
networks ; 1st of its kind in India
Source: AREVA. Market share calculation based on 2007 orders Modernization of Bhutan’s electrical
network for 2 cities
> Overview – January 2009
16

17. India: AREVA benefits from an historical presence
in India since 1950s’
New Power
transformer
Greenfield plant
Dehli, Noida BANGALORE PONDY
Naini
Baroda
Kolkata
CHENNAI
CHENNAI
Bangalore
Chennai
Pondicherry
KOLKATA KOLKATA
8 manufacturing sites
3,500 employees
NAINI NOIDA, DELHI
Full fledge local player covering
UHV, HV, MV, Systems and Automation
> Overview – January 2009
17

18. India: strong growth of nuclear generated power
is expected over the 25 next years
Nuclear percentage should rise Nuclear generated
from 3% to 10% electricity should multiply
of the power mix by 20 by 2032
3%
13%
439 TWh
1%
375 TWh
84%
11%
10%
2004 1%
78%
Thermal
Hydro
17 TWh
Renewables
France
2032
Nuclear 2004 2032
in 2007
Source: Planning Commission of India – August 2006 Source: Planning Commission of India – August 2006
> Overview – January 2009
18

19. India: the country has developed a strong nuclear
industry
India has developed a strong domestic nuclear industry, drawing
on the benefits of earlier cooperation with Canada, France, the
United States,…
NPCIL is the specialized nuclear utility in India, architect-engineer
and operator of 17 reactors (+ 6 under construction)
Operating reactors are derivatives of Candu (14) and BWRs (2),
but are rather small (160 to 500 MW range)
India is developing fast neutron reactors, proof of its technological
capability and forward-looking approach
Nuclear supply chain in India is dominated by several large public
and private industrial groups, like BHEL, Larsen & Toubro, Tata,
etc.
NPCIL plans to build 16,000 MWe in new nuclear capacity from
2007 to 2012
> Overview – January 2009
19

20. India: 17 reactors in operation and
6 under construction
RAWATBHATA 1, 2, 3 & 4
NARORA 1&2
740 MW
440 MW
440 MW (5 & 6)
Plants
in operation
KAKRAPAR 1&2
440 MW BWR (320 MW)
PHWR (3.760 MW)
Plants under
construction
TARAPUR 1, 2, 3 & 4 KALPAKKAM 1&2
1400 MW VVER (2.000 MW)
440 MW
PHWR (660 MW)
500 MW
(Fast breeder reactor) FBR (500 MW)
fast breeder reactor
KAIGA 1, 2 & 3
KUDANKULAM 1&2
620 MW
2000 MW
220 MW
> Overview – January 2009
20

21. India: recent evolution of the specific country
situation relating to non-proliferation commitments
India did not sign the Nuclear Non-Proliferation Treaty (NPT)
and conducted its first nuclear test in 1974
From that time, on-going cooperation between India and other countries
was interrupted, and supplier states put in place the NSG (Nuclear
Suppliers Group, 45 countries today) to regulate nuclear exports
Since adoption of Full-Scope Safeguards in 1992, NSG member states
do not allow themselves to export nuclear technology, equipment
and fissile material to any country not complying with Full-Scope
Safeguards
Since 2005, discussions between India and several NSG member states
are taking place, for an agreement on safeguarding civilian nuclear
facilities and fissile material paving the way for a new consensus within
NSG
Summer 2008: India has obtained a green light from AEIA and the NSG
has validated an exceptional arrangement to permit its members to deal
with. Some countries has already signed MOU with India to put in place
framework agreement of cooperation.
> Overview – January 2009
21

22. India: success of the discussions with NSG
members
AREVA July 2006:
AREVA visit
Feasibility report
for 6 GW
1st Indian India/USA statement:
nuclear test American
July 2005 Nuclear
Congress vote: cooperation
December 2006 agreements
with France
2006 2007 2008
1974 2005
Bilateral cooperation: India / France statement:
India / Canada (PHWR) September 2005
India / France (FBR) Nuclear
cooperation
India / USA (BWR)
G. Bush visit: agreements
March 2006 with US
AREVA
Feasibility
V. Poutine visit:
report for EPR
February 2007
February 2006:
July 2008: AEIA green
President Chirac visit
light
> Overview – January 2009
22

23. India: key challenges for AREVA
For Nuclear:
Successfully license the EPR with the Indian nuclear regulatory
authority within a reasonable timeframe
For T&D: grasp market growth
Increase capacity: Greenfield, lean manufacturing
Cover all market segments by localization of technology
and specific developments to address market needs
Overall, leverage India to support AREVA strategy worldwide
Recruit and retain talents
Manufacturing base for other units
Engineering resources and R&D centers of excellence
Strong supplier base
> Overview – January 2009
23

24. Appendix 8
Financials

25. Share in net income of associates
Change
2006 2007 07/06
In millions of euros
ST Microelectronics 98 (25) (124)
Eramet group 106 153 47
Other 15 20 5
TOTAL 220 148 (72)
The negative results of ST Microelectronics (-161% compared
with 2006) are offset in part by Eramet's positive performance
> Overview – January 2009
25

26. Minority interests in subsidiaries' earnings
Change
2006 2007 07/06
In millions of euros
AREVA NP (57) (17) 41
AREVA NC 62 129 67
AREVA T&D 15 23 8
AREVA TA 4 3 (1)
TOTAL 24 139 115
Increase in the EURODIF profit (AREVA NC)
Reduction of AREVA NP losses
> Overview – January 2009
26

27. Change in sales revenue
2007/2006 like-for-like
2007 2006
In millions of euros Sales Sales Change in Change in Change in Sales
revenue revenue exchange consolidation valuation revenue
like-for-like rates scope method (reported)
Front End division 3,140 2,838 (78) (32) 29 2,919
Reactors &
Services division 2,717 2,359 (39) 86 0 2,312
Back End division 1,738 1,896 (6) 0 (5) 1,908
Nuclear 7,595 7,093 (123) 54 24 7,138
T&D
division 4,327 3,708 (41) 25 0 3,724
Corporate and Other 1 1 0 0 0 1
Consolidated 11,923 10,801 (164) 79 24 10,863
> Overview – January 2009
27

28. Income statement
2007 2006
In millions of euros
Sales revenue 11,923 10,863
Other income from operations 21 55
Cost of sales (9,183) (8,698)
Gross margin 2,762 2,220
Research and development expenses (421) (355)
Marketing and sales expenses (529) (493)
General and administrative expenses (881) (778)
Other operating income and expenses (123) (56)
Operating income before restructuring expenses 808 538
Restructuring and early retirement costs (57) (131)
Operating income 751 407
Income from cash and cash equivalents 37 50
Gross borrowing costs (110) (78)
Net borrowing costs (73) (29)
Other financial income and expenses 138 126
Net financial income 64 97
Income tax (81) (51)
Net income of consolidated businesses 734 453
Share in net income of associates 148 220
Net income from continuing operations 882 672
Net income from discontinued operations - -
Less minority interests (139) 24
Net income attributable to equity holders of the parent 743 649
35 442 701 35 442 701
Average number of shares outstanding
20.95 18.31
Basic earnings per share
(1)
20.95 18.31
Diluted earning per share
Adjusted for net income of discontinued operations
(1)
> Overview – January 2009
28

29. Balance Sheet (1/2)
ASSETS 12/31/07 12/31/06
(In millions of euros)
Non-current assets 21,425 17,350
Goodwill on consolidated companies 4,377 2,515
Other intangible assets 2,729 1,175
Property, plant and equipment 4,204 3,814
Including: End-of-life-cycle asset (AREVA share) 174 198
End-of-life-cycle asset (third party share) 2,491 2,091
Assets earmarked for end-of-life-cycle operations 2,873 2,986
Investments in associates 1,558 1,521
Other non-current financial assets 2,588 2,376
Deferred tax assets 604 873
Current assets 9,251 8,543
Inventories and work-in-process 2,817 2,306
Trade accounts receivable and related accounts 3,884 3,604
Other operating receivables 1,402 1,121
Current tax assets 94 116
Other non-operating receivables 141 142
Cash and cash equivalents 634 962
Other current financial assets 279 292
Assets of operations held for sale - -
Total assets 30,676 25,893
> Overview – January 2009
29

30. Balance sheet (2/2)
12/31/07 12/31/06
LIABILITIES AND EQUITY
(In millions of euros)
Equity and minority interests 7,464 7,016
Share capital 1,347 1,347
Consolidated premiums and reserves 3,925 3,619
Deferred unrealized gains and losses 1,117 1,131
Currency translation reserves (138) (25)
Net income attributable to equity holders of the parent 743 649
Minority interests 470 294
Non-current liabilities 11,951 8,351
Employee benefits 1,175 1,122
Provisions pour end-of-life-cycle operations 5,075 4,585
Other non-current provisions 121 113
Long-term borrowings 4,302 1,407
Deferred tax liabilities 1,277 1,124
11,261 10,526
Current liabilities
Current provisions 1,823 1,788
Short-term borrowings 613 712
Advances and prepayments received 4,172 4,185
Trade accounts payable and related accounts 2,565 2,093
Other operating liabilities 1,921 1,650
Current tax liabilities 127 74
Other non-operating liabilities 41 23
Liabilities of operations held for sale - -
Total liabilities and equity 30,676 25,893
> Overview – January 2009
30

31. Cash flow statement and net debt
2006 2007
In millions of euros
Ebitda (excluding end-of-life-cycle expenses)* 1,292 1,335
% of sales revenue 11.9% 11.2%
Gain (loss) on disposal of operating assets (50) 1
Change in operating WCR (352) (432)
Net operating Capex (1,248) (2,889)
Free operating cash-flow before tax (358) (1,985)
End-of-life-cycle obligations 72 171
Net financial Capex 170 (131)
Dividends paid (429) (345)
Net reclassifications (mutual funds) 0 0
Revaluation of minority put options (liability) (41) (932)
Other (income tax, non-operating WCR, etc.) (10) 85
Change in net cash position (597) (3,137)
Net debt at December 31 (865) (4,003)
> Overview – January 2009
31

32. Segment reporting (1/2)
2007
Corporate,
Reactors and
In millions of euros
Front End Back End T&D Other and Consolidated
(except number of employees) Services
Eliminations
Contribution to consolidated
3,140 2,717 1,738 4,327 1 11,923
sales revenue
Income items
Operating income 496 (179) 203 397 (166) 751
% of sales revenue 15.8% (6.6%) 11.7% 9.2% immaterial 6.3%
Ebitda (ex. end-of-life-cycle) 731 (125) 440 426 (137) 1,335
% of consolidated revenue 23.3% - 4.6% 25.3% 9.8% immaterial 11.2%
Net Capex (2,260) (322) (81) (193) (33) (2,889)
Cash flow items
Change in operating WCR (139) (81) (186) (5) (20) (432)
Free operating cash flow (1,672) (528) 172 233 (190) (1,985)
PPE and intangible assets 4,894 1,141 1,897 1,053 2,325 11,310
Capital employed* 5,134 178 (646) 816 344 5,826
Other
Number of employees 65,583
12,577 16,500 10,638 25,248 620
* Capital employed at the end of the period
> Overview – January 2009
32

33. Segment reporting (2/2)
2006
Corporate,
Reactors and
In millions of euros
Other and
Front End Back End T&D Consolidated
(except number of employees) Services
Eliminations
Contribution to consolidated
2,919 2,312 1,908 3,724 0 10,863
sales revenue
Income items
Operating income 456 (420) 273 191 (94) 407
% of sales revenue 15.6% (18.2%) 14.3% 5.1% 3.7%
immaterial
Ebitda (ex. end-of-life-cycle) 630 7 443 258 (46) 1,293
% of consolidated revenue 21.6% 0.3 23.2% 6.9% immaterial 11.9%
Net Capex (750) (341) (77) (95) 14 (1,248)
Cash flow items
Change in operating WCR (28) (21) (205) (67) (29) (352)
Free operating cash flow (186) (350) 156 94 (72) (358)
PPE and intangible assets 2,321 918 1,954 961 1,341 7,502
Capital employed* 2,464 (67) (719) 705 318 2,701
Other
Number of employees 61,111
11,995 14,936 10,697 22,988 495
* Capital employed at the end of the period
> Overview – January 2009
33

34. ROACE (1/2)
Average capital Net operating ROACE
employed income
In millions of euros 2006 2007 2006 2007 2006 2007
Nuclear 1,602 3,172 247 429 15.4% 13.5%
T&D 661 761 127 265 19.3% 34.8%
Other 52 331 (67) (111) Immat. Immat.
Consolidated 2,315 4,264 308 583 13.3% 13.7%
ROACE = Operating income / average capital employed (beginning - end of period)
Capital employed = Net PPE and intangible assets + operating WCR
– Provisions for contingencies and losses
Net operating income = Operating income less pro forma income tax
Pro forma income tax = tax calculated based on the average income tax rate applicable
to all group entities, except those subject to a specific tax rate (Eurodif in particular)
> Overview – January 2009
34

35. ROACE (2/2)
CONSOLIDATED
2006 2007
In millions of euros
Net operating income 308 583
Net intangible assets 1,175 2,729
Goodwill used in ROACE calculation 1,614 2,520
Property, plant and equipment 3,814 4,204
Customer prepayments on assets (978) (907)
Operating WCR 85 368
Provisions for contingencies and losses (3,007) (3,088)
Capital employed 2,701 5,826
Average capital employed 2,315 4,264
ROACE 13.3% 13.7%
> Overview – January 2009
35

36. 2007 sales revenue by BU (1/2)
Reactors and Services
Front End division
Renewable
energies
Consulting/Information
1%
Nuclear
Systems
Mining measurement
6%
23%
Fuel 6%
AREVA TA
36%
11%
Chemistry
8% Equipment
8%
Plants
39%
Nuclear
services
Enrichment
29%
34%
Back End division Transmission & Distribution
Services
Cleanup
8%
6% Engineering
3%
Automation
Products
Logistics 11%
49%
13%
Systems
Treatment- 32%
Recycling
81%
> Overview – January 2009
36

37. 2006 sales revenue by BU (2/2)
Reactors and Services
Front End division
Renewable
energies
Consulting/Information
1%
Nuclear
Systems
Mining measurement
7%
20%
Fuel 8%
AREVA TA
43%
14%
Chemistry
8% Equipment
11%
Plants
32%
Nuclear
services
Enrichment
28%
29%
Back End division Transmission & Distribution
Services
Cleanup
11%
6% Engineering
4%
Automation
Products
Logistics 12%
45%
9%
Systems
Treatment- 32%
Recycling
78%
> Overview – January 2009
37