2015 Annual Results
GROUP / RESULTS
February 26, 2016
- Operating performance shows distinct improvement
- Results heavily impacted by the cost of remedial measures
Figures presented with application of IFRS 5 rules to “operations sold, discontinued or held for sale”.
- Backlog: €29 bn
- Revenue: €4.199 bn (vs. €3.954 bn in 2014, + 1.9% LFL)
- EBITDA: €685 m (vs. €471 m in 2014)
- Operating income: - €1.388 bn (vs. - €2.115 bn in 2014)
- Net income attributable to owners of the parent: - €2.038 bn (vs. - €4.833 bn in 2014)
- Operating cash flow: €297 m (vs. - €579 m in 2014)
- Net cash flow from company operations: - €590 m (vs. - €1.282 bn in 2014)
- Net debt: - €6.323 bn (vs. - €5.809 bn in 2014)
Highlights of the recent period
• Implementation of the strategic roadmap:
- Announcements of a capital increase of 5 billion euros and of the convergence between EDF and AREVA on the valuation of AREVA NP (excluding the OL3 project);
- Sale of Canberra and of AREVA TA decided;
- AREVA and TVO have initiated discussions aiming at ensuring the completion of OL3 project and to settle the disputes. All parties consider that preliminary discussions have proceeded positively;
- Signature of a memorandum of understanding with CNNC on possible cooperation involving a capital-related component and an industrial component;
- Decision to create a “New AREVA” group in 2016 bringing together all fuel cycle operations.
• Consolidation of AREVA’s base of operations:
- Reduction of the cost basis by close to 4501 million euros in 2015 (including more than 3201 million euros of recurring impacts in EBITDA) through efforts carried out group-wide;
- Start of social procedures in November concerning the voluntary departure plans.
• Progress of the major projects:
- Cold tests carried out on Taishan unit 1
- Progress of the OL3 project in line with the critical path defined in 2014
- Progress of the Flamanville 3 project in line with EDF's master schedule of September 2015
- Start of a test program on forged domes analogous to those of Flamanville 3, in agreement with ASN
- Quality review launched in the component manufacturing plants
1 Scope of continuing operations and of operations sold, discontinued and held for sale
Financial outlook for the current year
Net cash flow from company operations in the range of -2.0 billion euros to -1.5 billion euros is expected in 2016, a sharp decrease attributable to the impact of the remedial measures taken, expenses to be incurred on the large projects, and an unfavorable change in WCR.
AREVA reached an agreement with a banking pool on a 1.1-billion-euro bridge loan designed, along with other resources, to ensure the company's liquidity for 2016.
The Board of Directors of AREVA, meeting yesterday under the chairmanship of Philippe Varin, approved the financial statements for the period ended December 31, 2015. Chief Executive Officer Philippe Knoche offered the following statement concerning the results:
“The 2015 results illustrate the progress we have made this year and open up favorable prospects for 2016 and the following years in view of our fundamentals. The group’s competitiveness plan had a very positive impact on costs and cash, despite the heavy net loss situation which continues and in a market environment that remained difficult in 2015. Half of this loss of 2 billion euros is due to additional provisions for OL3 and half to provisions for restructuring and impairment related to market conditions. Concerning the group’s liquidity, 2016 is funded and the capital increase which will be launched in the coming months will enable us to gradually regain the group’s positive profile. A new phase awaits us in 2016, one we can enter with clarity and confidence in the implementation of the restructuring announced in 2015 and in particular the autonomy of AREVA NP and the creation of New AREVA.”