First half 2013: AREVA reaches a new milestone in its turnaround

  First half 2013: AREVA reaches a new milestone in its turnaround

  *Very strong revenue growth to €4.762bn:
    +13.0% like for like vs. H1 2012, led by nuclear operations
  *Sharp increase in EBITDA^1 to €473m: +11.4% vs. H1 2012
    (excluding OL3 insurance indemnity awarded in H1 2012)
  *Very significant improvement in free operating cash flow^1 to -€313m:
    +€278m vs. H1 2012; positive in the 2^nd quarter
  *Good progress on continuing cost reduction plan
  *Confirmation of 2013 profitability and operating cash flow targets
  *Positive operating income including €150m provision related to the OL3
    project

Business Wire

PARIS -- July 24, 2013

Regulatory News:

The AREVA (Paris:AREVA) Supervisory Board met today under the chairmanship of
Pierre Blayau, to examine the financial statements submitted by the Executive
Board for the period ended June 30, 2013.

Chief Executive Officer Luc Oursel offered the following comments on these
results:

“The first half of 2013 confirms the strategic relevance and successful
execution of Action 2016. We are on track for growth, industrial performance
recovery and cost control.

Our organic growth of 13% signals a very high level of activity, despite the
uncertainties of the energy markets. With growth of close to 15% in our
nuclear operations alone, the group is showing that it is able to find strong
growth drivers in its historical core business.

The turnaround in performance continues with significant EBITDA improvement
year on year, especially in our nuclear operations, where profitability levels
are clearly outpacing sales revenue.

The greater attention paid to cash generation is also bearing fruit with the
group’s return to positive free operating cash flow in the second quarter and
throughout the half-year period for nuclear operations.

Particular attention will be paid to risk management in the second half.

I would like to hail the progress on our savings plan: today, we have secured
85% of our objective of one billion euros in reductions by 2015.

Our outlook for 2013 in terms of profitability and cash generation is thus
confirmed.

A symbol of this successful half-year period is the high level of
subscriptions to the employee stock purchase plan, a sign of employees'
confidence in their company's turnaround and in the growth of the nuclear and
renewables markets."

^1 Restated for the impacts of the asset disposal plan in the first half of
2012 (+92 million euros for EBITDA and operating income and +115 million euros
for free operating cash flow)

I. Key financial data of the group

For purposes of comparison and to be able to monitor indicators used in the
group’s financial forecasts, the indicators are restated for asset disposal
carried out as part of its strategic action plan in the first half of 2012
(disposal of the equity interest in the Millennium mining property in Canada).
This disposal contributed 92 million euros to operating income and EBITDA in
the form of capital gains, and 115 million euros to disinvestments.

                                                               
                                                                     Change
(in million euros)                             H1 2013  H1 2012  
                                                                     2013/2012
Backlog                                        43,494   45,190    - 3.8%
Sales revenue                                  4,762    4,329     +10.0%
Of which nuclear operations^1                  4,477    4,005     +11.8%
Of which renewables operations                 214      253       -15.3%
Restated EBITDA^2                               473       725        -€252m
In percentage of sales revenue                 9.9%     16.7%     -6.8 pts
Restated EBITDA^2, excluding the insurance
indemnity awarded in relation to OL3 in H1      473       425        +€48m
2012
In percentage of sales revenue                 9.9%     9.8%      +0.1pt
Reported EBITDA                                 473       817        -€344m
In percentage of sales revenue                 9.9%     18.9%     -9.0 pts
Restated free operating cash flow^2             (313)     (591)      +€278m
Reported free operating cash flow              (313)    (476)     +€163m
Restated operating income^2                     245       349        -€103m
Reported operating income                      245      441       -€195m
Net income attributable to equity owners of     0         80         -€80m
the parent
Earnings per share                             €0.00    €0.21     -€0.21
                                              6/30/13  12/31/12  
Net debt (+) / cash (-)                         4,471     3,948      +€523m
Net debt / (net debt + equity)                 44.7%    41.5%     3.2 pts

The data from the first half of 2012 were restated for purposes of comparison
with the data from the first half of 2013.

In addition, it should be noted that Business Group revenue and contributions
to consolidated income may vary significantly from one half year to the next
in the nuclear operations. Accordingly, half-year data should not be viewed as
a reliable indicator of annual trends.

^1 Nuclear operations: operations in the Mining, Front End, Reactors &
Services and Back End Business Groups and in Engineering & Projects
(recognized under “Other”)

^2 Restated for the impacts of the asset disposal plan in the first half of
2012 (+92 million euros for EBITDA and operating income and +115 million euros
for free operating cash flow)

Backlog: strong visibility

The group had 43.5 billion euros in backlog at June 30, 2013, representing
nearly five years of sales revenue. It was slightly down from 30 June 2012
(45.2 billion euros). Backlog in the Mining Business Group (BG) rose over 12
months, while that of the other nuclear BGs fell due to the good progress in
contracts’ execution over the period.

The half-year order intake was close to 3 billion euros.

Order cancellations subsequent to the Fukushima accident were limited to 42
million euros in the second quarter of 2013 (105 million euros for the
half-year 2013 period), reflecting a marked decline compared with levels in
previous quarters.

Backlog by Business Group

The Mining BG had 11.377 billion euros in backlog at June 30, 2013. In the
first half of 2013, the group signed several long-term contracts for natural
uranium supply with US and Asian utilities.

The Front End BG had 17.755 billion euros in backlog at June 30, 2013. The BG
signed several significant contracts in the first half of 2013, including:

  *a contract for enriched uranium supply (integrated offer) with an Asian
    utility;
  *several contracts with US and French utilities in the Enrichment business;
  *fuel assembly supply contracts with German, Dutch and Swiss utilities.

The Reactors & Services BG had 7.839 billion euros in backlog at June 30,
2013. Commercial operations led to several contracts in the first half of
2013, including:

  *contracts as part of the “Safety Alliance” program, for which a total of
    nearly 300 million euros in orders have been recorded since it was
    launched;
  *contracts with US utilities to supply water level measurement systems for
    spent fuel pools.

The Back End BG had 5.732 billion euros in backlog at June 30, 2013. Among the
most significant contracts won in the first half are:

  *two contracts for cask manufacturing and service offer with US clients;
  *a contract for the supply of ten dry storage casks for Belgian client
    Synatom;
  *an order for MOX fuel assembly fabrication for the German reactors.

Negotiations between EDF and AREVA concerning the financial conditions of the
multiyear treatment and recycling contract for 2013-2017 continued during the
first half of 2013.

The Renewable Energies BG had 689 million euros in backlog at June 30, 2013.
Of note during the first half were two contracts to supply biomass power
plants, one in Thailand and the other for Neoen in France.

Commercial activity was high over the period, particularly in offshore wind,
with numerous achievements as AREVA was selected to enter in preferential
negotiations for major projects in France and in the United Kingdom.

Very strong sales revenue growth: +13.0% organic growth

The group reported consolidated revenue of 4.762 billion euros in the first
half of 2013, a 10.0% increase in relation to the first half of 2012 (+13.0%
like for like). Foreign exchange had a negative impact of 29 million euros,
primarily in the Mining, Reactors & Services, and Renewable Energies BGs.
Changes in consolidation scope had a negative impact of 84 million euros,
mainly as the result of the deconsolidation of La Mancha Resources Inc.
following the disposal of that business in late August 2012.

Revenue from the nuclear operations was 4.477 billion euros in the first half
of 2013, compared with 4.005 billion euros in the first half of 2012, an 11.8%
increase (+14.9% like for like). This growth was supported by all of the
nuclear BGs: +25.9% in the Mining BG, +5.1% in the Front End BG, +5.1% in the
Reactors & Services BG and +22.1% in the Back End BG.

Revenue from the renewables operations was down in the first half of 2013 to
214 million euros, compared with 253 million euros in the first half of 2012.

Internationally, revenue for the half-year period rose 10.6% compared with the
first half of 2012, to 2.867 billion euros.

Revenue by Business Group

The Mining BG reported sales revenue of 813 million euros in the first half of
2013, a 25.9% increase compared with the first half of 2012 (+43.7% like for
like). Foreign exchange had a negative impact of 5 million euros. Changes in
consolidation scope had a negative impact of 75 million euros due to
deconsolidation of La Mancha Resources Inc. operations, which were sold in
August 2012. The strong organic growth is explained by the combined increase
of the average sale price of uranium sold under contracts and of volumes sold
over the half-year period.

The Front End BG reported revenue of 954 million euros, an increase of 5.1%
year on year (+7.3% like for like).  Changes in consolidation scope had a
negative impact of 17 million euros, with the transfer of operations from the
Fuel business to the Reactors & Services BG.

  *Volumes rose in the Chemistry-Enrichment business over the half-year
    period as enrichment services for France picked up, largely offsetting the
    downturn in conversion volumes;
  *In the Fuel Business Unit (BU), sales revenue climbed on a more favorable
    product mix than in the first half of 2012.

The Reactors & Services BG reported revenue of 1.714 billion euros, a 5.1%
increase (+5.8% like for like).

  *Revenue growth in the Installed Base and Equipment BUs was led by a high
    level of activity in France with EDF;
  *The New Builds business is advancing in step with progress on the EPR™
    projects.

The Back End BG reported revenue of 975 million euros, a 22.1% increase
(+21.7% like for like).

  *Revenue for the period rose significantly in the Recycling BU on strong
    business from MOX fuel fabrication contracts with foreign customers. On
    the contrary, it was penalized by production delays during the half-year
    period;
  *Revenue in the Logistics BU was led by strong cask manufacturing
    operations in Europe and the supply of dry storage solutions in the United
    States.

The Renewable Energies BG reported revenue of 214 million euros in the first
half of 2013, a 15.3% decrease (-13.5% like for like) compared with the first
half of 2012. Foreign exchange had a negative impact of 5 million euros. The
net change in sales revenue is due to the following:

  *installation schedule delays in Offshore Wind and a lower level of
    Bioenergies activity in Brazil;
  *revenue growth in the Solar BU as work progressed on the Reliance project
    in India.

Sharp increase in restated EBITDA

(excluding OL3 insurance indemnity awarded in the first half of 2012)

Reported earnings before interest, taxes, depreciation and amortization
(EBITDA) went from 817 million euros in the first half of 2012 to 473 million
euros in the first half of 2013. Restated for the impact of asset disposal in
2012^1, it declined by 252 million euros in relation to the first half of
2012, when the insurance indemnity of 300 million euros had been awarded in
relation to the OL3 project in Finland. Excluding the OL3 insurance indemnity,
EBITDA rose 48 million euros, an increase of 11.4% year on year. EBITDA for
the nuclear operations alone rose 18.6% year on year, with EBITDA margin
rising from 12.9% to 13.7% of sales revenue.

EBITDA by Business Group

In the Mining BG, restated EBITDA^1 was 315 million euros in the first half of
2013, compared with 223 million euros in the first half of 2012. This reflects
the combined increase of the average sale price of uranium sold under
contracts and of volumes sold, which largely offset the negative impact of
changes in consolidation scope related to the deconsolidation of La Mancha
Resources Inc. during the period.

In the Front End BG, EBITDA was 108 million euros in the first half of 2013,
compared with 169 million euros in the first half of 2012, which saw a gain on
the sale of fixed assets in the amount of 77 million euros. This situation is
due in particular to:

  *a high level of activity in Enrichment and Fuel;
  *the positive impact of industrial facility streamlining and optimization
    plans and the resulting gains in operating performance;
  *this in spite of the disbursements related to operations carried out prior
    to shutting down industrial facility operations, for which provisions were
    set up in previous years.

In the Reactors & Services BG, EBITDA was -110 million euros in the first half
of 2013, down from the same period in 2012 (154 million euros), which saw the
contribution of an insurance indemnity in the amount of 300 million euros in
relation to the OL3 project in Finland. The lower spending levels on one of
the EPR™ projects in the first half of 2013 compared with the same period in
2012 partly offset this effect.

In the Back End BG, EBITDA was 305 million euros in the first half of 2013,
compared with 268 million euros in the first half of 2012. This is in line
with the activity level for the period, notwithstanding the production delays
reported in the Recycling business.

In the Renewable Energies BG, EBITDA was -55 million euros in the first half
of 2013, compared with -25 million euros in the first half of 2012. The
difference is mainly due to a lower level of activity in the mature businesses
(Offshore Wind and Bioenergies) and by expenditures related to the solar
projects.

^1 Restated for the impacts of the asset disposal plan in the first half of
2012 (+92 million euros for EBITDA)

Sharply improved free operating cash flow before tax

Free operating cash flow before tax rose 163 million euros to -313 million
euros in the first half of 2013.

Restated for asset disposal in 2012^1, it was up 278 million euros compared
with the first half of 2012, reflecting the combined effect of improved
performance (excluding the insurance indemnity awarded in relation to OL3 in
the first half of 2012) and control of capital spending over the period.

Change in operating working capital requirement by Business Group

The change in operating working capital requirement (WCR) was unfavorable by
-171 million euros, compared with -327 million euros in the first half of
2012.

In the Mining BG, the change in operating WCR was positive by 127 million
euros (compared with a positive contribution of 152 million euros in the first
half of 2012), primarily due to the decrease in inventories over the period.

In the Front End BG,  the change in operating WCR was positive by 9 million
euros (compared with 11 million euros in the first half of 2012), also due
mainly to the decrease in inventories over the period.

In the Reactors & Services BG, the change in operating WCR was negative by -24
million euros (compared with -346 million euros in the first half of 2012).
For the first half of 2012, the change in operating WCR had included
recognition of a receivable of 300 million euros in relation to the OL3
insurance payment received in the second half of 2012.

In the Back End BG, the change in operating WCR was positive by 19 million
euros (compared with 30 million euros in the first half of 2012), in part due
to the receipt of exceptional prepayments from foreign customers.

The change in operating WCR in the Renewable Energies BG was negative by -99
million euros (as contrasted with a positive contribution of 61 million euros
in the first half of 2012), due to the absence of significant customer
advances in the first half of 2013.

Capex by Business Group

The group’s gross operating Capex was 622 million euros in the first half of
2013, compared with 919 million euros in the first half of 2012. Of this, 50%
was funded by the cash flow generated by operating activities, as compared
with 36% in the first half of 2012.

Asset disposals classified in operating cash flow were not significant over
the half-year period, whereas they reached 120 million euros in the first half
of 2012, mainly including the disposal of the equity interest in the
Millennium mining property in Canada in connection with the Action 2016 plan.

Consequently, net operating Capex totaled 621 million euros in the first half
of 2013, down 179 million euros in relation to the first half of 2012.

The Mining BG had 212 million euros in net operating Capex, compared with 227
million euros in the first half of 2012 (342 million euros restated for asset
disposal in 2012). This mainly concerned the development of the Cigar Lake and
Imouraren mining sites in Canada and Niger respectively.

^1 Restated for the impacts of the asset disposal plan in the first half of
2012 (+115 million euros for free OCF)

Net operating Capex in the Front End BG totaled 240 million euros, down from
407 million euros in the first half of 2012. This reflects the slowing pace of
Capex related to the construction of the conversion and enrichment plants,
including the Georges Besse II plant, which has reached more than 50% of its
operating capacity.

Net operating Capex in the Reactors & Services BG was stable at 73 million
euros compared with the first half of 2012, when it was 74 million euros.
Capital spending mainly included development expenses to expand the group’s
range of reactors and production Capex in the Equipment business, in
particular for a new press and manipulator at the Creusot Forge site.

In the Back End BG, net operating Capex totaled 42 million euros, down from 55
million euros in the first half of 2012. Capital spending concerned the La
Hague and Melox plants in France in the Recycling business and the development
of international projects.

Net operating Capex in the Renewable Energies BG rose to 43 million euros, in
contrast to 32 million euros in the first half of 2012. Capital spending
mainly concerned the development of Offshore Wind and Solar.

Positive operating income

The group reported operating income of 245 million euros in the first half of
2013, compared with 441 million euros in the first half of 2012.

Restated for 2012 asset disposal2, operating income was down 103 million euros
in the first half of 2013 compared with the first half of 2012, when it had
reflected the one-time effect of a new early retirement plan set up in March
2012 changing the provisions of the main early retirement plan of a group
subsidiary. This effect was offset by a lower level of charges to provisions
than in the first half of 2012.

Review of operating income by Business Group

Restated operating income for the Mining BG reached 253 million euros in the
first half of 2013, compared with 5 million euros in the first half of 2012,
when it had included impairment of mining assets in the total amount of 164
million euros. The increase is mainly due to the combined increase of the
average sale price of uranium sold under contract and of volumes sold.

The Front End BG reported operating income of 66 million euros, compared with
186 million euros in the first half of 2012, a decrease of 120 million euros.
In the first half of 2012, operating income had reflected a gain on the
disposal of fixed assets in the amount of 77 million euros and the one-time
effect of a favorable change in provisions related to employee benefits
constituted in application of amended IAS 19. It was buoyed by:

  *ramp-up of the Georges Besse II plant and optimization of costs related to
    the transition from Eurodif to Georges Besse II in the Enrichment
    business;
  *the positive impact of performance improvement plans across the entire
    Business Group.

The Reactors & Services BG reported an operating income of -113 million euros
in the first half of 2013, compared with -198 million euros in the first half
of 2012. The increase of 85 million euros is chiefly due to lower charges to
provisions for losses at completion in relation to the same period last year
(150 million euros in the first half of 2013 as against 300 million euros in
the first half of 2012). At June 30, 2013, a provision of 150 million euros
was added to losses at completion for the Olkiluoto 3 EPR™ reactor project in
Finland based on costs committed and incurred to date, considering the
insufficient efficiency of remaining construction work (in particular
finishing works). This topic is now the subject of performance improvement
action plans with TVO and the suppliers involved. In the absence of a schedule
elaborated together with the customer, no detailed re-estimation of the
conditions of execution and of the costs of the later phases of the project
has been performed. In any case, the situation will be reassessed at the end
of the fiscal year in the light of the outcome of ongoing works related to the
revision of the general schedule.

^1 Restated for the impacts of the asset disposal plan in the first half of
2012 (+92 million euros for operating income)

The Back End BG reported operating income of 228 million euros in the first
half of 2013, compared with 443 million euros in the first half of 2012. In
the first half of 2012, operating income had benefitted from the one-time
impact of a favorable change in provisions related to employee benefits
constituted in application of amended IAS 19. Excluding that effect, operating
income reflects the increase in the level of activity over the period, despite
the production delays reported in the Recycling business.

The Renewable Energies BG reported an operating loss of 64 million euros for
the first half of 2013; the downturn compared with the first half of 2012 (-33
million euros) was due to the lower level of activity in the Offshore Wind and
Bioenergies businesses.

Consolidated net income at break-even

Net income attributable to equity owners of the parent was nil in the first
half of 2013, compared with 80 million euros in the first half of 2012.

  *The share in net income of associates was 1 million euros in the first
    half of 2013, compared with 5 million euros in the first half of 2012.
  *Net financial income was -93 million euros in the first half of 2013,
    compared with -191 million euros in the first half of 2012. The change is
    due to the share of net financial income related to end-of-lifecycle
    operations, which improved over the period. The cost of net financial debt
    was stable in relation to the first half of 2012, at 100 million euros.
  *Net tax income for the first half of 2013 was -100 million euros, compared
    with net tax income of -149 million euros in the first half of 2012.

Net financial debt, liquidity and share ownership

The group’s net financial debt totaled 4.471 billion euros, compared with
3.948 billion euros at December 31, 2012. The change is mainly attributable to
negative free operating cash flow and to disbursements for taxes (73 million
euros) and financial expenses (71 million euros).

In first half of 2013, the group renewed its undrawn bilateral and syndicated
lines of credit, maturing in 2015 and 2018 respectively, in the total amount
of approximately 2 billion euros.

At June 30, 2013, the group had net cash available^3 of 1.025 billion euros.
The group has no major debt repayment due before 2016.

During the half-year period, the liquidity of the AREVA share was strengthened
through a liquidity agreement with Natixis.

The shareholder structure evolved with the successful employee stock purchase
plan, which was based on treasury shares. At the conclusion of this
transaction, more than 14,600 of the group’s French, German and American
employees (i.e. 36% of eligible staff, 39% in France) became shareholders or
holders of shares in the French collective employee shareholding vehicle
(FCPE), with an average investment level per employee of more than €2,200,
generating 45 million euros in cash for the group. At June 30, 2013, employees
held approximately 1.2% of AREVA’s share capital.

^1 Net cash available: Cash, cash equivalents and other current financial
assets minus current borrowings

II. Financial outlook for 2013 confirmed

In view of the encouraging first-half 2013 results, the group is able to
confirm financial outlook for 2013 as follows:

  *organic sales revenue growth of 3 to 6% in the nuclear businesses;
  *EBITDA of more than 1.1 billion euros, restated for the impacts of the
    asset disposal program;
  *free operating cash flow before tax at breakeven;

despite the lower anticipated level of activity in renewable energies, which
should generate sales revenue of some 450 million euros in 2013 (versus the
estimated 600 million euros previously forecast).

It should be noted that the asset disposals target for total gains of a
minimum of 1.2 billion euros over 2012-2013 has been reached at the end of
August 2012.

The presentation of AREVA’s half-year results will be available live on the
Internet on July 24, 2013 at 18:00 CEST.

To access the webcast, please click on the following links:

French version: http://webcast.areva.com/20130724/resultats_1er_semestre_2013

English version: http://webcast.areva.com/20130724/2013_first_half_results

Schedule of upcoming periodic financial information

► October 24, 2013 – 17:45 CET: Third quarter 2013 revenue and financial
information (press release)

Note:

► Forward-looking statements

This document contains forward-looking statements and information. These
statements include financial forecasts and estimates as well as the
assumptions on which they are based, and statements related to projects,
objectives and expectations concerning future operations, products and
services or future performance. Although AREVA’s management believes that
these forward-looking statements are reasonable, AREVA’s investors and
shareholders are hereby advised that these forward-looking statements are
subject to numerous risks and uncertainties that are difficult to foresee and
generally beyond AREVA’s control, which may mean that the expected results and
developments differ significantly from those expressed, induced or forecast in
the forward-looking statements and information. These risks include those
explained or identified in the public documents filed by AREVA with the AMF,
including those listed in the “Risk Factors” section of the Reference Document
registered with the AMF on 03/28/13 (which may be read online on AREVA’s
website www.areva.com). AREVA makes no commitment to update the
forward-looking statements and information, except as required by applicable
laws and regulations.

ABOUT AREVA

AREVA supplies advanced technology solutions for low-carbon power generation
to its customers. Its expertise and unwavering insistence on safety, security,
transparency and ethics are setting the standard, and its responsible
development is anchored in a process of continuous improvement. Ranked first
in the global nuclear power industry, AREVA’s unique integrated offering to
utilities covers every stage of the fuel cycle, nuclear reactor design and
construction, and operating services. The group is actively developing its
activities in renewable energies – wind, bioenergy, solar and energy storage –
to become one of the leaders in this sector worldwide. With these two major
offers, AREVA’s 47,000 employees are helping to supply ever safer, cleaner and
more economical energy to the greatest number of people.

Appendix 1 – Consolidated revenue by quarter
                                                  
                                                          Change
                                         Change
(in million euros)      2013   2012                   2013/2012
                                         2013/2012 in %
                                                          in % like for like*
1^st quarter
Mining BG               395    313    +26.1%          +43.6%
Front End BG             378     432     -12.6%           -11.2%
Reactors & Services BG   799     774     +3.2%            +4.1%
Back End BG             556    371    +49.9%          +49.5%
Renewable Energies BG   105    85     +23.3%          +27.5%
Corporate and Other**   46     50     -8.3%           -8.3%
Total                   2,279  2,026  +12.5%          +15.5%
2^nd quarter
Mining BG                418     333     +25.7%           +43.7%
Front End BG             577     475     +21.2%           +24.2%
Reactors & Services BG   915     858     +6.7%            +7.3%
Back End BG             419    428    -2.1%           -7.6%
Renewable Energies BG   109    167    -35.0%          -34.0%
Corporate and Other**   46     42     +9.8%           +10.0%
Total                   2,484  2,303  +7.9%           +9.5%
1^st half
Mining BG                813     646     +25.9%           +43.7%
Front End BG             954     908     +5.1%            +7.3%
Reactors & Services BG   1,714   1,631   +5.1%            +5.8%
Back End BG             975    799    +22.1%          +21.7%
Renewable Energies BG   214    253    -15.3%          -13.5%
Corporate and Other**   92     92     -0.1%           0.0%
Total                   4,762  4,329  +10.0%          +13.0%

* Like for like, i.e. at constant exchange rates and consolidation scope

** Including the operations of Consulting & Information Systems and the
Engineering & Projects organization

Appendix 2 – Income Statement
                                                             
(in million euros)                   H1 2013      H1 2012      Change 13/12
Sales revenue                         4,762         4,329         +433
                                                                  
Other income from operations          18            37            -19
Cost of sales                         (3,981)       (3,719)       -262
Gross margin                          799           647           +152
                                                                  
Research and development expenses     (136)         (135)         -1
Marketing and sales expenses          (122)         (118)         -4
General and administrative expenses   (194)         (202)         +8
Other operating income and expenses   (102)         249           -351
Operating income                      245           441           -196
                                                                  
Income from cash and cash             20            22            -2
equivalents
Gross borrowing costs                 (120)         (117)         -3
Net borrowing costs                   (100)         (95)          -5
Other financial income and expenses   7             (95)          +102
Net financial income                  (93)          (191)         +98
                                                                  
Income tax                            (100)         (149)         +49
Share in net income of associates     1             5             -4
Net income from continuing            53            106           -53
operations
                                                                  
Net income from discontinued          -             -             -
operations
Net income for the period             53            106           -53
                                                                  
Minority interests                    52            26            +26
Net income attributable to equity     0             80            -80
owners of the parent
                                                                  
Comprehensive income                  (35)          145           -180
                                                                  
Average number of shares
outstanding, excluding treasury       378,742,082   381,999,602   -3,257,520
shares
Basic earnings per share (in euros)  0.00         0.21         -0.21

Appendix 3 – Consolidated Cash Flow Statement
                                                             
(in million euros)                           H1 2013  H1 2012  Change 13/12
Cash flow from operations before interest     443       602       -159
and taxes
Net interest and taxes paid                   (119)     (146)     +27
Cash flow from operations after interest      324       455       -131
and tax
Change in working capital requirement         (157)     (264)     +107
Net cash flow from operating activities       166       192       -26
Net cash flow from investing activities       (651)     (200)     -451
Net cash flow from financing activities       71        196       -125
Decrease (increase) in marketable             181       (276)     +457
securities maturing in more than 3 months
Impact of foreign exchange movements          (2)       3         -5
Net cash flow from discontinued operations    -         (91)      +91
Increase (decrease) in net cash               (234)     (177)     -57
Net cash at the beginning of the period       1,489     2,273     -784
Cash at the end of the year                  1,256    2,096    -840

Appendix 4 – Simplified Balance Sheet*
                                                                
(in million euros)                                     6/30/2013  12/31/2012
ASSETS
Goodwill                                                4,085       3,998
Property, plant and equipment (PP&E) and intangible     11,326      10,699
assets
Assets earmarked for end-of-lifecycle operations        5,983       5,912
Equity associates                                       159         175
Other non-current financial assets                      301         294
Deferred taxes (assets – liabilities)                   962         1,006
Operating working capital requirement                   (574)       (601)
Net assets from discontinued operations                 -           225
LIABILITIES
Equity                                                  5,530       5,556
Provisions for end-of-lifecycle operations              6,376       6,331
Other provisions and employee benefits                  4,690       4,751
Other assets and liabilities                            1,175       1,048
Net debt                                                4,471       3,948
Liabilities of operations held for sale                -          73
Total – Simplified balance sheet                       22,243     21,708

* Assets and liabilities, including operating working capital, net debt and
deferred taxes, are offset in the simplified balance sheet. These items are
not offset in the detailed balance sheet presented in the consolidated
financial statements

Appendix 5 – Key data by Business Group
                                                          
                                                         Change   Change 13/12
(in million euros)                  H1 2013  H1 2012          (LFL)*
                                                         13/12
Backlog                             43,494   45,190   -1,696 
including:
Mining BG                            11,377    10,472    +905
Front End BG                         17,755    18,712    -957
Reactors & Services BG               7,839     8,295     -456
Back End BG                          5,732     6,167     -434
Renewable Energies BG                689       1,428     -739
Corporate & Other**                 102      117      - 15    
Sales revenue                        4,762     4,329     +10.0%   +13.0%
including:
Mining BG                            813       646       +25.9%   +43.7%
Front End BG                         954       908       +5.1%    +7.3%
Reactors & Services BG               1,714     1,631     +5.1%    +5.8%
Back End BG                          975       799       +22.1%   +21.7%
Renewable Energies BG                214       253       -15.3%   -13.5%
Corporate & Other**                 92       92       -0.1%   0.0%
Operating income                     245       441       -195
including:
Mining BG                            253       97        +156
Front End BG                         66        186       -120
Reactors & Services BG               (113)     (198)     +85
Back End BG                          228       443       -215
Renewable Energies BG                (64)      (33)      -30
Corporate & Other**                 (126)    (54)     -71     
EBITDA                               473       817       -344
including:
Mining BG                            315       315       0
Front End BG                         108       169       -62
Reactors & Services BG               (110)     154       -265
Back End BG                          305       268       +38
Renewable Energies BG                (55)      (25)      -29
Corporate & Other**                 (90)     (64)     -26     
Free operating cash flow before      (313)     (476)     +163
tax
including:
Mining BG                            233       150       +83
Front End BG                         (124)     (305)     +181
Reactors & Services BG               (206)     (265)     +59
Back End BG                          282       242       +40
Renewable Energies BG                (193)     4         -197
Corporate & Other**                 (306)    (302)    -4      

* Like for like, i.e. at constant exchange rates and consolidation scope

** Including the operations of Consulting & Information Systems and the
Engineering & Projects organization

                           Appendix 6 – Definitions

Backlog:  the backlog is valued based on economic conditions at the end of the
period; it includes firm orders and excludes unconfirmed options. Orders in
hedged foreign currencies are valued at the rate hedged; unhedged orders are
valued at the rate in effect on the last day of the period. The backlog
reported for long-term contracts recognized under the percentage of completion
method and partially performed as of the reporting date is equal to the
difference between (a) the projected sales revenue from the contract at
completion and (b) the sales revenue already recognized for this particular
contract. Accordingly, the backlog takes into account escalation and price
revision assumptions used by the Group to determine the projected revenue at
completion.

Cash flow from end-of-lifecycle operations: this indicator encompasses all of
the cash flows linked to end-of-lifecycle operations and to assets earmarked
to cover those operations. It is equal to the sum of the following items:

  *income from the portfolio of earmarked assets
  *cash from the sale of earmarked assets
  *minus acquisitions of earmarked assets
  *minus cash spent during the year on end-of-lifecycle operations
  *full and final payments received for facility dismantling
  *minus full and final payments paid for facility dismantling.

Earnings before interest, taxes, depreciation and amortization (EBITDA):
EBITDA is equal to operating income plus net amortization, depreciation and
operating provisions (except for provisions for impairment of working capital
items). EBITDA is restated to exclude the costs of end-of-lifecycle operations
for nuclear facilities (dismantling, waste retrieval and packaging) carried
out during the year, as well as the full and final payments paid or to be paid
to third parties for facility dismantling. It should be noted that the cash
flows linked to end-of-lifecycle operations are presented separately.

Foreign exchange impact: the foreign exchange impact mentioned in this release
comes from the translation of subsidiary accounts into the Group’s unit of
account. The latter is primarily due to changes in the US dollar in relation
to the euro. AREVA also points out that its foreign exchange hedging policy
for commercial operations aims to shield profitability from fluctuations in
exchange rates in relation to the euro.

Free operating cash flow: free operating cash flow represents the cash flow
generated by operating activities before income tax. It is equal to the sum of
the following items:

  *EBITDA, excluding end-of-lifecycle operations,
  *plus losses or minus gains on disposals of property, plant and equipment
    and intangible assets included in operating income,
  *plus the decrease or minus the increase in operating working capital
    requirement between the beginning and the end of the period (excluding
    reclassifications, currency translation adjustments and changes in
    consolidation scope),
  *minus acquisitions of property, plant and equipment and intangible assets,
    net of changes in accounts payable related to fixed assets,
  *plus sales of property, plant and equipment and intangible assets included
    in operating income, net of changes in receivables on the sale of fixed
    assets,
  *plus prepayments received from customers during the period on non-current
    assets,
  *plus acquisitions (or disposals) of consolidated companies (excluding
    equity associates), net of the cash acquired.

Gearing: the ratio of net debt to net debt plus equity.

Like for like: at constant exchange rates and consolidation scope.

Net cash (debt): net cash (debt) is defined as the sum of cash and cash
equivalents plus other current financial assets minus current and non-current
borrowings. Current and non-current borrowings include the present value of
puts held by minority interests.

Operating margin: the ratio of operating income to sales revenue.

Operating working capital requirement (OWCR): operating WCR represents all of
the current assets and liabilities related directly to operations. It includes
the following items:

  *inventories and work-in-process,
  *trade accounts receivable and related accounts,
  *advances paid,
  *other accounts receivable, accrued income and prepaid expenses,
  *minus: Trade accounts payable and related accounts, trade advances and
    prepayments received (excluding interest-bearing advances), other
    operating liabilities, accrued expenses, and deferred income.
  *Note: Operating WCR does not include non-operating receivables and
    payables such as income tax liabilities, amounts receivable on the sale of
    non-current assets, and liabilities in respect of the purchase of
    non-current assets.

Contact:

AREVA
Press Office
Julien Duperray
Katherine Berezowskyj
Jérôme Rosso
Alexandre Thebault
+33 (0) 1 34 96 12 15
F: +33 (0) 1 34 96 16 54
press@areva.com
or
Investor Relations
Marie de Scorbiac, +33 (0) 1 34 96 05 97
marie.descorbiac@areva.com
or
Philippine du Repaire, +33 (0) 1 34 96 11 51
philippine.durepaire@areva.com
 
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