AREVA : 2014 Half-year results

  AREVA : 2014 Half-year results

  *Backlog: €44.9bn (+€3.5bn vs. 12/31/2013 thanks to the treatment-recycling
    agreement with EDF)
  *Negative net income attributable to equity owners of the parent (-€694m):

       *Losses in discontinued renewable activities (-€373m)
       *One-off impact of treatment-recycling agreement with EDF (-€95m)
       *Provisions and assets impairment

  *Positive free operating cash flow despite lower activity level

       *Revenue: €3.889bn (-12.4% LFL)
       *EBITDA^1: €256m (-€231m vs. H1 2013)
       *Free operating cash flow^1: €98m (+€256m vs. H1 2013)

  *Strengthened recovery actions in an unfavorable economic environment

       *2015 cost reduction objective secured and raised to €1.2bn by 2016
       *Capital expenditure reduced over 2014-16

  *Revised financial outlook

Business Wire

PARIS -- August 1, 2014

Regulatory News :

The Supervisory Board of AREVA (Paris:AREVA), meeting yesterday under the
chairmanship of Pierre Blayau, examined the financial statements for the
period ended June 30, 2014 submitted by the Executive Board. Chief Executive
Officer Luc Oursel offered the following comments on the results:

“The group posted a net loss in the first half of the year.  This is the
consequence of losses recorded in renewables operations, additional
project-related provisions, asset write-downs and a nuclear market environment
that has still deteriorated.
Our backlog has strengthened thanks to the signing of the agreement through
2020 with EDF for used fuel treatment and MOX fuel production.  Though it has
a short-term adverse impact on the group’s results, it provides these
operations with long-term visibility and strengthens our strategic partnership
with EDF.
Despite a decline in revenue that was greater than anticipated, the group
achieved positive free operating cash flow, an increase compared with the
first half of 2013.  The success of our recovery actions partially offset the
downturn in activity.  These actions will be reinforced in the second half of
the year to adapt to market conditions.
The group continues to restructure its operations in renewable energies by
entering into partnerships in promising markets, such as offshore wind and
energy storage, and by discontinuing loss-making operations, such as
concentrated solar power.”

I – Key financial data of the group

In accordance with IFRS 5 and IFRS 11, the financial statements for the first
half of 2013 were restated to present proforma information using a
consolidation scope comparable to that of the first half of 2014. Income from
discontinued renewables operations or in joint ventures is presented on a
separate line in the income statement under “net income from discontinued
operations”.

                                                     H1 2013        Change
(in millions of euros)              H1 2014        proforma     
                                                                    2014/2013
Backlog                             44,916         42,786        +€2,130m
Revenue                             3,889          4,513         -12.4% LFL
Of which nuclear operations^2       3,797          4,402         -12.6% LFL
Of which renewables operations      32             40            -18.1% LFL
Restated EBITDA^3 Restated for
asset disposals (Duisburg and        256             487            -€231m
Euriware)
In percentage of sales revenue       6.6%            10.8%          -4.2 pts
including impact of 4 major         -225           -242          +€17m
projects generating losses
Reported EBITDA                      226             487            -€261m
In percentage of sales revenue      5.8%           10.8%         -5.0 pts
Restated free operating cash flow    98              -158           +€256m
before tax^1
Reported free cash flow from        71             -158          +€229m
operations before tax
Restated operating income^1          -280            290            -€569m
Reported operating income           -305           290           -€594m
Net result from discontinued
operations (attributable to equity  -373           -41           -€332m
owner of the parent)
Net income attributable to equity    -694            0              -€694m
owners of the parent
Earnings per share                  -€1.81         €0,00         -€1.81
                                   June 30, 2014  December 31,  
                                                     2013
Net debt (+) / cash (-)              4,734           4,468          +€266m
Net debt / net debt + equity        54.1%          47.3%         +6.8 pts

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

Financial indicators are defined in the financial glossary in Appendix 6 -
Definitions.

Backlog

The group had 44.9 billion euros in backlog at June 30, 2014, representing
five years of revenue. The backlog has grown significantly in comparison with
December 31, 2013 (41.4 billion euros). Backlog in the Front End and Back End
Business Groups (BG) rose sharply over 6 months, while that of the other
nuclear Business Groups fell as contracts were successfully completed over the
period. The treatment and recycling agreement with EDF for the 2013-2020
period covering the shipment and recycling of used fuel and the fabrication of
MOX assemblies added more than 5.5 billion euros to the backlogs of the Back
End and Front End BGs in the first half of the year.

A total of 7.9 billion euros in new orders were added to the backlog in the
first half of 2014, a sharp increase from the first half of 2013 (2.9 billion
euros).

Analysis of backlog by BG

The Mining BG had 9.009 billion euros in backlog at June 30, 2014. With the
uranium market situation still uncertain, marked by a drop in market prices
and low volumes in the spot market, the order intake was limited in the first
six months of the year.

The Front End BG had 17.867 billion euros in backlog at June 30, 2014. In
addition to the contribution from the treatment and recycling agreement with
EDF, it benefitted from the signature of several significant contracts,
including:

  *two contracts for the supply of enriched uranium (integrated offer) in the
    United States and Europe;
  *a contract with Vattenfall to supply fuel assemblies to four of its seven
    reactors in Sweden over the 2016-2020 period;
  *contracts with European utilities in the Enrichment business;
  *fuel assembly supply contracts with American utilities.

The Reactors & Services BG had 8.372 billion euros in backlog at June 30,
2014. In the first half of 2014, commercial activity was marked in particular
by:

  *a contract for a global offer covering fuel supply and maintenance and
    inspection services during unit outages;
  *several contracts under the Safety Alliance program to supply safety
    improvement systems to existing power plants, most notably for the Asco 1
    & 2 and Vandellos 2 reactors in Spain. Orders represented a cumulative
    total of approximately 640 million euros;
  *several contracts under the Forward Alliance program for the modernization
    of instrumentation and control systems for backup generators and
    electrical systems at the Gösgen power plant in Switzerland and to replace
    stators at the Kori 3 & 4 reactors in South Korea;
  *a contract to install the digital instrumentation and control system for a
    power plant under construction.

The Back End BG had 9.621 billion euros in backlog at June 30, 2014, a sharp
increase from the first half of 2013, in particular with the addition to the
backlog of the treatment and recycling agreement with EDF for the period
running until 2020.

The Renewable Energies BG had 40 million euros in backlog at June 30, 2014.

Revenue

The group had consolidated revenue of 3.889 billion euros in the first half of
2014, a decrease of 13.8% compared with the first half of 2013 (-12.4% like
for like). Foreign exchange had a negative impact of 54 million euros,
principally in the Mining and Reactors & Services BGs. The consolidation scope
had a negative impact of 18 million euros over the period.

Revenue from the nuclear operations amounted to 3.797 billion euros in the
first half of 2014, compared with 4.402 billion euros in the first half of
2013, a 13.7% decrease (-12.6% like for like).

Revenue from the renewables operations declined in the first half of 2014 to
32 million euros, compared with 40 million euros in the first half of 2013, a
18.1% decrease (-18.1% like for like).

Analysis of revenue by BG

The Mining BG had revenue of 457 million euros in the first half of 2014, a
decrease of 43.0% compared with the first half of 2013 (-40.9% like for like).
Foreign exchange had a negative impact of 29 million euros.

This change is the net result of two developments:

  *the sharp drop in volumes sold (-41%) following the completion of sales
    under HEU agreements in 2013 and the large inventory drawdowns carried out
    over the same period in 2013;
  *the reduction of the average sale price of uranium sold under contracts in
    relation to the first half of 2013 due to a less favorable contract mix
    over the period.

Revenue in the Front End BG totaled 1.128 billion euros, representing a 25.9%
increase year on year (+26.7% like for like).  Foreign exchange had a negative
impact of 6 million euros.

  *The Chemistry-Enrichment business posted strong growth due to:

       *a substantial increase in volumes sold in the United States, France
         and Asia in Enrichment in parallel with the production ramp-up at the
         Georges Besse II plant;
       *steady Conversion business with French and US customers widely
         offsetting the business downturn in Asia.

  *Revenue in the Fuel Business Unit (BU) benefitted from a favorable
    delivery schedule in France and was up significantly.

Revenue for the Reactors & Services BG fell 11.9% to 1.501 billion euros
(-10.6% like for like). Consolidation scope had a negative impact of 12
million euros. Foreign exchange had a negative impact of 14 million euros.

  *Revenue in the Installed Base operations was down compared with the first
    half of 2013, when it benefitted from strong business in France. In
    addition, installed base business declined in the United States and Europe
    due to deteriorated market conditions.
  *Revenue from Major Projects was down compared with the first half of 2013
    in line with the developments of the major EPR projects. The increased
    revenue associated with the Angra 3 project in Brazil and the Flamanville
    3 project in France does not offset the decreased revenue expected from
    the Taishan project in China. In addition, in conformity with paragraph 32
    of IAS 11, which have been applied since the second half of 2013, no
    revenue was recognized for the Olkiluoto 3 project in Finland during the
    half-year period.

Revenue in the Back End BG was down 28.9% to 695 million euros (-28.9% like
for like). Consolidation scope had a positive impact of 6 million euros.
Foreign exchange had a negative impact of 5 million euros.

  *Revenue from the Recycling Operations division fell sharply over the
    period. Despite strong activity at our la Hague plant (in preparation for
    scheduled maintenance outages in the second half) and our Melox plant,
    this decrease is due to:

       *an unfavorable basis of comparison in relation to the first half of
         2013, when it had benefitted from strong business under contracts
         signed with foreign customers for MOX fuel fabrication campaigns;
       *the one-off impact of the treatment and recycling agreement reached
         with EDF for the 2013-2020 period, with commercial concessions
         granted to EDF in exchange for greater schedule visibility and
         increased volumes.

  *Revenue from the Nuclear Logistics Operations division was down due to a
    lower level of business in the supply of dry storage solutions in the
    United States.

Revenue in the Renewable Energies BG totaled 32 million euros in the first
half of 2014, down 18.1% (-18.1% like for like) compared with the first half
of 2013 due to a lower level of Bioenergy business in Europe.

Earnings before interest, taxes, depreciation and amortization (EBITDA)

Restated EBITDA^1 was down in relation to the first half of 2013, going from
487 million euros in the first half of 2013 to 256 million euros in the first
half of 2014.

Analysis of Earnings before interest, taxes, depreciation and amortization^1
(EBITDA) by BG

In the Mining BG, EBITDA amounted to 159 million euros in the first half of
2014, compared with 311 million euros in the first half of 2013. This change
is explained in particular by:

  *the sharp drop in volumes sold (-41%), as expected, following the
    completion of sales under HEU agreements in 2013 and the large inventory
    drawdowns carried out over the same period in 2013;
  *the reduction of the average sale price of uranium sold under contracts in
    relation to the first half of 2013, when it had benefited from a favorable
    contract mix;
  *an unfavorable resource mix over the period.

In the Front End BG, restated EBITDA^1 amounted to 213 million euros in the
first half of 2014, compared with 91 million euros in the first half of 2013.
This sharp increase is explained in particular by:

  *a higher level of activity compared with the same period in 2013;
  *the ramp-up of the Georges Besse II enrichment plant;
  *the positive impact of performance improvement plans across all of the
    BG’s operations.

EBITDA in the Reactors & Services BG was -96 million euros in the first half
of 2014, up in relation to the first half of 2013 (-121 million euros). This
change is due in particular to developments on the Olkiluoto 3 EPR project and
the cost control efforts carried out in all operations.

The Back End BG recorded EBITDA of 63 million euros in the first half of 2014,
compared with 306 million euros in the first half of 2013. This sharp drop is
the result of:

  *an unfavorable basis of comparison in relation to the first half of 2013,
    when it had benefitted from strong business under contracts signed with
    foreign customers for MOX fuel fabrication campaigns;
  *the one-off impact of the agreement reached with EDF on the terms of the
    treatment - recycling agreement for the 2013-2020 period, in particular in
    terms of commercial concessions;
  *this despite strong business in our la Hague and Melox facilities and good
    production cost control.

EBITDA in the Renewable Energies BG was -15 million euros in the first half of
2014, a downturn in relation to the first half of 2013 (-8 million euros).
This change is due to a lower level of performance in the Bioenergy business.

Reported EBITDA went from 487 million euros in the first half of 2013 to 226
million euros in the first half of 2014, a reduction of 261 million euros.

Free operating cash flow

Restated free operating cash flow before tax^1 rose 256 million euros compared
with the first half of 2013 (+98 million euros in the first half of 2014
versus -158 million euros in the first half of 2013).

Analysis of change in operating working capital requirement (WCR) by BG

Overall, the change in operating working capital requirement was positive,
reaching 325 million euros in the first half of 2014 versus -75 million euros
in the first half of 2013, and benefitted in particular from the increased
assignment of trade receivables, without recourse (+145 million euros of net
contribution in the first half of 2014).

The change in the Mining BG’s operating working capital requirement was
negative by 61 million euros (versus a positive contribution of 128 million
euros in the first half of 2013, when it benefitted from major inventory
reduction operations).

The change in operating WCR in the Back End BG was negative by 63 million
euros (compared with 8 million euros in the first half of 2013).

The change in operating WCR in the Reactors & Services BG was positive by 209
million euros (compared with a negative contribution of 13 million euros in
the first half of 2013), reflecting optimization of account receivables.

The change in operating WCR in the Back End BG was positive by 77 million
euros (compared with a positive contribution of 19 million euros in the first
half of 2013).

The change in operating WCR in the Renewable Energies BG was negative by 3
million euros (compared with a negative contribution of 14 million euros in
the first half of 2013).

Analysis of capital expenditure by Business Group

The group’s gross operating capital expenditure totaled 484 million euros in
the first half of 2014, compared with 574 million euros in the first half of
2013.

Capital expenditure was fully funded by the operating cash flow generated by
the business^3 in the first half of 2014, compared with 72% in the first half
of 2013.

In the first half of 2014, 47% of the group's gross operating capital
expenditure was on sites located in France.

Restated net operating capital expenditure^1 amounted to 481 million euros in
the first half of 2014, versus 573 million euros in relation to the first half
of 2013.

The Mining BG’s net operating capital expenditure totaled 220 million euros in
the first half of 2014, compared with 209 million euros in the first half of
2013. It was concentrated on the mining sites in Canada and Niger.

Net operating capital expenditure in the Front End BG came to 158 million
euros, down from the first half of 2013 (243 million euros), in accordance
with the planned pace of construction and ramp-up of enrichment and conversion
facilities.

The Reactors & Services BG reported total net operating capital expenditure of
39 million euros in the first half of 2014, down from 63 million euros in
2013.

The Back End BG had 56 million euros in net operating capital expenditure, an
increase compared with the first half of 2013 (42 million euros), due to
increased capital expenditure on the la Hague facilities.

Net operating capital expenditure in the Renewable Energies BG was essentially
unchanged in the first half of 2014 at 2 million euros, compared with 3
million euros in the first half of 2013.

Reported free operating cash flow before tax was 71 million euros.

Operating income

The group's restated operating income^1 totaled -280 million euros in the
first half of 2014, compared with +290 million euros in the first half of
2013.

Analysis of operating income by Business Group

Operating income in the Mining BG totaled 60 million euros, versus 250 million
euros in the first half of 2103, a 189-million-euro decrease, chiefly for the
same reasons as for this BG's EBITDA. In the first half of 2014, it included
35 million euros in expenses related to the postponement of pre-production
development work at the Imouraren site.

The Front End BG had 33 million euros in restated operating income^3, compared
with 64 million euros in the first half of 2013, a decrease of 31 million
euros. In particular, it includes impairment in the amount of 96 million euros
for Comurhex II assets pursuant to the increase in the cost to completion of
the first phase of this project.

The Reactors & Services BG reported operating income of -174 million euros,
down compared to the first half of 2013 (-117 million euros). It included an
additional 90 million euros for the provision for losses at completion
constituted in previous years for a reactor modernization contract in Europe.
This addition was recognized to reflect the deferral of the project's
completion date due to the complexity of the field working environment,
software configuration changes requested by the customer, and the deferral of
the operator training program at the customer’s initiative. The amount of the
additional provision does not reflect the value of any of AREVA’s claims
submitted to the customer for these items. It also included an impairment of
capitalized R&D expenses and benefitted from a provision reversal in a
positive amount following the agreement with Fortum concerning the termination
of a modernization contract for the Loviisa power plant in Finland.

The Back End BG posted an operating loss of 83 million euros in the first half
of 2014, a substantial downturn compared with the first half of 2013 (228
million euros), in particular due to the one-off impact of the agreement with
EDF on the terms of the 2013-2020 treatment and recycling agreement. Added to
the impact in terms of EBITDA is the impairment of industrial assets at la
Hague and Melox, given the capital project financing terms agreed upon with
EDF for these sites since 2013.

The Renewable Energies BG reported operating income of -19 million euros in
the first half of 2014, compared with -8 million euros in the first half of
2013.

The group reported operating income of -305 million euros in the first half of
2014, compared with +290 million euros in the first half of 2013.

Net income attributable to equity owners of the parent

Net income attributable to equity owners of the parent totaled -694 million
euros in the first half of 2014, compared with a nil net income in the first
half of 2013.

  *The group’s net income from discontinued operations totaled -373 million
    euros in the first half of 2014 due to provisions for losses at completion
    on Wind and Solar contracts, provisions for contingencies, and provisions
    for impairment, compared with -41 million euros in the first half of 2013.
  *The share in net income of associates and joint ventures was -8 million
    euros in the first half of 2014, compared with 6 million euros in the
    first half of 2013.
  *Net financial income amounted to -68 million euros in the first half of
    2014, compared with
    -87 million euros in the first half of 2013. Net borrowing costs came to
    -101 million euros in the first half of 2014, versus -97 million euros in
    the first half of 2013. The change in net financial income is explained by
    the share related to end-of-lifecycle operations, which improved over the
    period (116 million euros in the first half of 2014 versus 105 million
    euros in the first half of 2013).
  *The net tax income for the first half of 2014 was 38 million euros,
    compared with a net tax expense of 113 million euros in the first half of
    2013.

Net debt, liquidity and shareholding

The group’s net debt totaled 4.734 billion euros at June 30, 2014, compared
with 4.468 billion euros at December 31, 2013. For the most part, this
increase in net debt reflects payments for tax expenses (-57 million euros)
and impact of financial result (-111 million euros), and the increase in net
debt of discontinued operations (-233 millions euros), offset in part by cash
flow from end-of-lifecycle operations (+118 million euros) and by free
operating cash flow from continuing operations (+71 million euros).

In the first half of 2014, the group’s liquidity was strengthened by:

  *a nine-year bond issue for a total amount of 750 million euros maturing in
    2023 with an annual coupon of 3.125%, the lowest since the group’s EMTN
    program was launched;
  *the establishment of an innovative financing scheme on a limited recourse
    basis for the Georges Besse II enrichment plant with a group of 10 banks
    in the amount of 650 million euros.

AREVA’s total bond debt outstanding thus amounted to 5.9 billion euros at June
30, 2014. The group has no major reimbursement due before 2016.

At June 30, 2014, the group had available net cash^4 of 2.335 billion euros
(versus 1.180 billion euros at December 31, 2013) and undrawn lines of credit
totaling more than 2 billion euros (syndicated credit of 1.25 billion euros
maturing in 2018 and bilateral lines of credit totaling 795 million euros
maturing in 2015 and 2017).

II – Financial outlook

The following items were considered in revising the financial outlook:

For recurring activities:

  *extension of outage work for the nuclear power plant modernization
    contract in northern Europe;
  *delay in the start of major overhaul operations in France;
  *a market situation that is more difficult than anticipated in the
    Installed Base activities;
  *commercial concessions granted to EDF in connection with the
    treatment-recycling agreement with EDF.

For new projects:

  *delay in the start of new construction projects abroad;
  *slower than anticipated ramp-up of the Angra 3 project.

Based on these items and at constant consolidation and change scope, excluding
the impacts of asset disposals:

For the full year of 2014, AREVA has set the following targets:

  *a 10% decrease in organic revenue;
  *an EBITDA margin of c. 7% of revenues;
  *gross capital expenditure brought back to 1.1 billion euros;
  *free operating cash flow before tax close to breakeven.

For the 2015-2016 period, AREVA has set the following targets:

  *organic revenue growth averaging around 4 to 5% per year;
  *an EBITDA to revenue ratio of approximately 10-11% in 2015 and of about
    14-15% in 2016;
  *gross capital expenditure of less than an average of 1.1 billion euros per
    year;
  *free operating cash flow before tax close to breakeven in 2015 and
    distinctly positive in 2016.

ABOUT AREVA
AREVA is a world leader in nuclear power. The group’s offering to utilities
covers every stage of the fuel cycle, nuclear reactor design and construction,
and operating services. Its expertise and uncompromising insistence on safety
make it a leading industry player.
AREVA also invests in renewable energies to develop, via partnerships,
high-technology solutions.
Through the complementary nature of nuclear and renewables, AREVA’s 45,000
employees contribute to building tomorrow’s energy model: to supply ever safer
and cleaner energy to the greatest number of people.

The presentation of AREVA's half year results will be available live on the
Internet on August 1, 2014 at 10:00 CEST.

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

French version: http://webcast.areva.com/20140801/resultats_1er_semestre_2014/

English version: http://webcast.areva.com/20140801/2014_first_half_results/

Upcoming events and publications

August 1, 2014 – 10:00 CEST    Telephone conference and webcast
                                Half-year 2014 financial results
October 30, 2014 – 17:45 CEST   Press Release
                                Third quarter 2014 sales and related
                                information

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 March 31, 2014 (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.

^1 Restated for asset disposals (Duisburg and Euriware)
^2 Nuclear operations: operations in the Mining, Front End, Reactors &
Services and Back End Business Groups and in Engineering & Projects
(recognized under Corporate & Other)
^3 Before capital expenditure
^4 Available net cash: Cash and cash equivalents less current borrowings

                 Appendix 1 - Consolidated revenue by quarter

                                                          Change
                                         Change
(in millions of euros)  2014   2013                   2014/2013
                                         2014/2013 in %
                                                          in % like for like*
1^st quarter
Mining BG               145    392    -63.0%          -62.3%
Front End BG             561     353     +59.0%           +59.8%
Reactors & Services BG   684     796     -14.1%           -12.5%
Back End BG             325    558    -41.7%          -41.6%
Renewable Energies BG   18     29     -38.2%          -34.6%
Corporate and Other**   48     46     ns              ns
Total                   1,781  2,174  -18.1%          -17.3%
2^nd quarter
Mining BG                312     410     -23.9%           -19.5%
Front End BG             567     543     +4.3%            +5.2%
Reactors & Services BG   817     909     -10.1%           -8.9%
Back End BG             370    420    -11.7%          -12.2%
Renewable Energies BG   14     10     +37.8%          +19.5%
Corporate and Other**   26     47     ns              ns
Total                   2,107  2,339  -9.9%           -7.9%
1^st half
Mining BG                457     802     -43.0%           -40.9%
Front End BG             1,128   896     +25.9%           +26.7%
Reactors & Services BG   1,501   1,705   -11.9%           -10.6%
Back End BG             695    977    -28.9%          -28.9%
Renewable Energies BG   32     40     -18.1%          -18.1%
Corporate and Other**   74     93     ns              ns
Total                   3,889  4,513  -13.8%          -12.4%

* 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 2 – Income Statement

(in millions of euros)               H1 2014      H1 2013      Change 14/13
Revenue                              3,889        4,513        -13.8%
                                                                  
Other income from operations          4             6             -€2m
Cost of sales                         (3,551)       (3,714)       +€163m
Gross margin                          341           806           -€465m
                                                                  
Research and development expenses     (96)          (123)         +€27m
Marketing and sales expenses          (96)          (113)         +€17m
General and administrative expenses   (184)         (187)         +€3m
Other operating income and expenses   (270)         (93)          -€177m
Operating income                      (305)         290           -€594m
Share in net income of associates     (8)           6             -€14m
and joint ventures
Operating income after share in net
income of associates and joint        (313)         296           -€609m
ventures
                                                                  
Income from cash and cash             18            20            -€2m
equivalents
Gross borrowing costs                 (119)         (116)         -€3m
Net borrowing costs                   (101)         (97)          -€4m
Other financial income and expenses   33            10            +€23m
Net financial income                  (68)          (87)          +€19m
                                                                  
Income tax                            38            (113)         +€151m
                                                                  
Net income from continuing            (343)         96            -€439m
operations
                                                                  
Net income from discontinued          (384)         (43)          -€341m
operations
Net income for the period             (726)         53            -€779m
                                                                  
Including net income attributable     (32)          52            -€84m
to minority interests
Net income attributable to owners     (694)         0             -€694m
of the parent
                                                                  
Comprehensive income                  (932)         (35)          -€897m
                                                                  
Average number of shares
outstanding, excluding treasury       382,398,185   378,742,082   3,656,103
shares
                                                                  
Basic earnings per share (in euros)   -1.81         0.00          -1.81

                Appendix 3 – Consolidated Cash Flow Statement

(in millions of euros)                      H1 2014  H1 2013  Change 14/13
Cash flow from operations before interest   187      470      -€283m
and taxes
Net interest and taxes paid                  (98)      (113)     +€15m
Cash flow from operations after interest     89        358       -€269m
and tax
Change in working capital requirement        339       (68)      +€407m
Net cash flow from operating activities      427       290       +€137m
Net cash flow from investing activities      (395)     (605)     +€210m
Net cash flow from financing activities      1,503     (142)     +€1,645m
Increase (decrease) in securities
recognized at fair value through profit      8         181       -€173m
and loss
Impact of foreign exchange movements         11        (3)       +€14m
Net cash from discontinued operations        (247)     31        -€278m
Increase / (decrease) in net cash            1,308     (248)     +€1,556m
Net cash at the beginning of the period      1,582     1,451     +€131m
Cash at the end of the year                 2,890     1,204     +€1,686m

                    Appendix 4 – Condensed balance sheet^1

(in millions of euros)                      June 30, 2014  December 31, 2013
ASSETS                                                    
Goodwill                                     3,777           3,764
Property, plant and equipment (PP&E) and     11,322          11,241
intangible assets
Assets earmarked for end-of-lifecycle        6,193           6,256
operations
Investments in associates and joint          265             254
ventures
Other non-current financial assets           272             261
Deferred taxes (assets – liabilities)        1,271           1,099
Operating working capital requirement        (1,801)         (1,319)
Assets from discontinued operations*         481             643
LIABILITIES
Equity                                       4,013           4,982
Provisions for end-of-lifecycle operations   6,448           6,437
Other provisions and employee benefits       4,960           4,779
Other assets and liabilities                 1,279           1,144
Net debt                                     4,734           4,468
Liabilities from discontinued operations     346             389
Total – Condensed balance sheet             21,780         22,199

* Excluding equity from discontinued operations

^1Assets 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 figures by Business Group

                                                         Change
                                 1^st half   1^st half            Change
(in millions of euros)          2014       2013       14/13   14/13 (LFL)*

                                                         (M€)
Backlog                         44,916     42,786     +2,130 
including:
Mining BG                        9,009       11,377      -2,368
Front End BG                     17,867      17,757      +111
Reactors & Services BG           8,372       7,730       +641
Back End BG                      9,621       5,742       +3,879
Renewable Energies BG            40          78          -37
Corporate & Other**             7          102        -95     
Revenue                          3,889       4,513       -625     -12.4%
including:
Mining BG                        457         802         -345     -40.9%
Front End BG                     1,128       896         +232     +26.7%
Reactors & Services BG           1,501       1,705       -204     -10.6%
Back End BG                      695         977         -282     -28.9%
Renewable Energies BG            32          40          -7       -18.1%
Corporate & Other**             74         93         -19     -7.8%
Operating income                 -305        290         -594
including:
Mining BG                        60          250         -189
Front End BG                     21          64          -43
Reactors & Services BG           (174)       (117)       -57
Back End BG                      (83)        228         -312
Renewable Energies BG            (19)        (8)         -10
Corporate & Other**             (110)      (126)      +16     
EBITDA                           226         487         -261
including:
Mining BG                        159         311         -152
Front End BG                     196         91          +106
Reactors & Services BG           (96)        (121)       +25
Back End BG                      63          306         -243
Renewable Energies BG            (15)        (8)         -7
Corporate & Other**             (81)       (92)       +10     
Free operating cash flow         71          -158        +229
before tax
including:
Mining BG                        (122)       232         -354
Front End BG                     (25)        (144)       +120
Reactors & Services BG           73          (196)       +269
Back End BG                      83          282         -199
Renewable Energies Business      (19)        (24)        +5
Group
Corporate & Other**             81         (308)      +389    

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

Earnings before interest, taxes, depreciation and amortization (EBITDA):
EBITDA is equal to operating income after depreciation, depletion,
amortization and provisions, net of reversals. EBITDA is restated to exclude
the cost of end-of-lifecycle operations performed in nuclear facilities during
the year (facility dismantling, waste retrieval and packaging). It should be
noted that the cash flows linked to end-of-lifecycle operations are presented
separately.
Note: AREVA modified its definition of EBITDA as of June 30, 2014 in order to
exclude all non-cash items of operating income for purposes of greater
consistency. The definition used previously was “EBITDA is equal to operating
income plus net amortization, depreciation and operating provisions (except
for provisions for impairment of working capital items).”

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,
  *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: Ratio of net debt / (net debt + equity)

Like-for-like (LFL): at constant exchange rates and consolidation scope.

Net debt: Net debt is defined as the sum of current and non-current
borrowings, minus cash and cash equivalents. Note: AREVA's definition of net
debt was modified at December 31, 2013 in order to comply with the definition
published by the French Accounting Standards Authority. The definition used
previously was “net debt is defined as the sum of current and non-current
borrowings, minus cash, cash equivalents and other current financial assets.”

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.

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Contact:

AREVA
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Aurélie Grange
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press@areva.com
or
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marie.descorbiac@areva.com
or
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