AREVA - 2012 annual results: significant turnaround in performance one year after launching the Action 2016 plan

One year after launching Areva's Action 2016 strategic plan, the first results are in. AREVA is ahead of schedule in executing its recovery plan. While pursuing its efforts in the management of a few difficult projects (such as OL3), Areva group was able to return to a virtuous performance cycle rooted in strong growth in nuclear order intake and good progress on its cost reduction program. Commercially, despite the difficult economic environment, AREVA was able to capitalize on its leadership in the installed base and on its long-term partnerships with strategic customers, beginning with EDF, with which AREVA renewed a confident and constructive working relationship. Areva has secured 80% of its objective of one billion euros of savings by the end of 2015 to improve its competitiveness. The group also continued efforts to optimize working capital requirement and control the capital expenditure trajectory. Together, these results enabled AREVA to exceed the objectives set for 2012 for two key indicators of its strategic plan: EBITDA and free operating cash flow. Nearly 60% of the 2.1 billion euros devoted to capital expenditures for future growth in 2012 were funded by operations, a quasi-doubled share compared to 2011. Areva's floor target for asset disposals was achieved one year ahead of schedule, also helping the Group to control its net debt, which remained below 4 billion euros. In 2013, Areva is continuing to implement the Action 2016 plan to keep its turnaround on track. In summary: - Backlog renewed over the year 2012 to euro 45.4 bn thanks to the increase in nuclear order intake; - Sales revenue growth: euro 9.342 bn (+5.3% vs. 2011), led by nuclear and renewables operations; - Very sharp upturn in EBITDA: euro 1.007 bn (+euro 586 m vs. 2011) - Very net improvement in free operating cash flow: -euro 854 m (+euro 512 m vs. 2011); - Back to positive reported operating income: euro 118 m (+euro 1.984 bn vs. 2011); - 2012-2013 floor target for asset disposals already met; - Confirmation of the group's financial outlook