R EPROCESSING S PENT N UCLEAR F UEL IN I NDONESIA : A N O VERVIEW OF A REVA ’ S O PPORTUNITY FOR FDI

P ROJECT B RIEF & F INAL D ECISION Proposed Project Build and operate a 200 tonne uranium nuclear fuel reprocessing and treatment facility in Indonesia by 2027 Final Decision Project is infeasible due to inordinately high risks and uncertain returns Relevant Stakeholders PT PLN: Indonesian state-owned electric utility KEPCO: Korean Electric Power Company Investment Criteria Investment Rationale Proposed scope, structure, and costs Investment Risks

C OMMERCIAL N UCLEAR P OWER V ALUE C HAIN Front End: Mining, conversion, and enrichment AREVA and KEPCO have a joint venture to develop a uranium mine in Niger. KEPCO will use this mine to supply the nuclear power stations it has built around the world. Reactors & Services: Construction and operation of plants KEPCO entered into a memorandum of understanding to build turnkey nuclear power plants for PLN, the state-owned electric utility which will transmit and distribute the electricity generated by the power plant. Back End: Fuel recycling, reprocessing, and treatment Reprocessing and treatment creates new energy resources from 96% of the content of spent nuclear fuel and stores the remaining 4% (final waste). Areva is the world leader in nuclear fuel recycling; KEPCO does not offer this service line.

I NVESTMENT R ATIONALE Indonesian growth potential and current macroeconomic stability Elevation to G-20 status in 2009 Favorable FDI investment climate Commitment to nuclear energy: 4 commercial nuclear power plants (first by 2017) Good fit with Areva’s growth strategy to grow its Back-End Division Sources: CIA World Factbook, IMF, OECD

I NDONESIA ’ S E NERGY N EEDS & A MBITIONS Energy Needs >90% current energy needs primarily fulfilled by natural gas, oil, and coal Electricity demand is expected to grow 6 - 7% annually Renewable energy sources must account for 5% of supply by 2025 Nuclear History Research reactors since 1957 Member of the IAEA since 1957, signed non-proliferation treaty in 1970 Passed the Nuclear Policy Act in 1997, establishing a framework for commercial nuclear operations KEPCO to build 4 commercial reactors Sources: John Chipman, “Preventing Nuclear Dangers” and Indonesian Institute for Energy Economics, “Indonesian Energy Overview,” PowerPoint presentation, July 2007

Project: Build 200 tonne uranium nuclear fuel processing facility Investment vehicle: Joint Venture FDI Domestic ownership of nuclear FDI must be ≥5% Proposed joint venture partner: PLN Primary customer: PLN Estimated cost: US$5b to US$10b Financing: Public-Private Partnership Project start: 2022 Project duration: 5 years Operations start: 2027 Projected annual revenue: $250 m Projected annual net income: $35 m P ROJECT S COPE, S TRUCTURE & C OSTS

I NVESTMENT R ISKS