Can nuclear energy meet the challenges ? French experience & achievements Erwan Hinault, AREVA India 6 th Nuclear Energy Conclave October 14 th, 2014

In the past 30 years, nuclear energy has brought significant benefits to France 59 reactors for 66 million inhabitants 75+% of electricity generated by nuclear power Control of its environmental footprint through CO 2 emissions reduction (one of the lowest carbon emission per capita in Europe) Energy independence and security of supply Competitive energy price (one of the cheapest tariff in Europe) 400,000 direct, indirect and induced jobs Exports of nuclear electricity to European countries, including countries which have given up on nuclear Can nuclear energy meet the challenges ? French experience & achievements – 6 th Nuclear Energy Conclave - Oct. 14 th 2014 p.2

France doubled its energy independence rate in the 80s’ while implementing its nuclear power generation program Can nuclear energy meet the challenges ? French experience & achievements – 6 th Nuclear Energy Conclave - Oct. 14 th 2014 p.3 (1): Energy independence rate =1- net energy imports / gross inland consumption (2): EU refers here to the aggregate of all 28 EU Member States as of 2013 Source: Enerdata (2013) ~x Share of nuclear in generation mix Energy independence rate Civil nuclear program France’s energy independence rate (1) doubled from ~25% before 1980 to ~50% since 1990 Nuclear programs contributed to increasing the EU (2) energy independence from 50% to 65% Energy independence vs. nuclear share in power mix (%) +15% Share of nuclear in generation mix Energy independence rate 53%48% Energy independence vs. nuclear share in power mix (%) Energy securityCompetitivenessSocial benefitsEnvironment Decrease of domestic oil & gas production

French retail electricity prices are amongst the lowest in Europe for both businesses and households Can nuclear energy meet the challenges ? French experience & achievements – 6 th Nuclear Energy Conclave - Oct. 14 th 2014 p.4 EU retail electricity prices for businesses and households stand on average at least 30% below French ones Finland Bulgaria Sweden France Netherlands Estonia Hungary Czech Republic Belgium UK Portugal Spain EU 27 Ireland Germany Italy Denmark +30% +36% Germany Ireland Denmark Italy Spain Belgium Sweden Portugal EU 27 Netherlands UK Finland Czech Republic France Hungary Estonia Bulgaria European retail prices for households (1), 1 st semester 2013 (€/MWh, tax included) European retail prices for industrials (2), 1 st semester 2013 (€/MWh, tax included) Energy securityCompetitivenessSocial benefitsEnvironment (1) Consumption between 2500 and 5000 kWh (‘DC’ consumption band) (2) Consumption between 500 and 2000 MWh (‘IC’ consumption band Source: Eurostat (2013)

Can nuclear energy meet the challenges ? French experience & achievements – 6 th Nuclear Energy Conclave - Oct. 14 th 2014 p.5 Nuclear provides France with stable electricity prices thanks to lower dependency on primary resources prices Electricity tariffs vs. coal and gas prices (1) €/MWh for electricity, €/toe for coal and gas prices (1): industry prices excluding taxes Source: Enerdata (2013) €/toe€/MWh Coal - UK Electricity - UK Electricity - France Gas - UK UKFrance 4% 2% 76% 4% 19% 40% Power generation mix, 2012 Gas Renewables Other Nuclear Coal Energy securityCompetitivenessSocial benefitsEnvironment

French oil & gas imports bill levelled at €66bn in 2013, which is above the total French trade deficit Can nuclear energy meet the challenges ? French experience & achievements – 6 th Nuclear Energy Conclave - Oct. 14 th 2014 p.6 Electricity is the only positive contributor of the energy bill to the balance of trade, with +€2bn French 2013 energy bill of €66bn is higher than its trade deficit Total -€66bn Electricity +€2bn Coal & Uranium -€2bn Gas -€15bn Oil -€51bn Evolution of energy bill vs. balance of trade (current € billion, excl. defense exports) Sources: Ministère de l’Economie et des finances (2014), Douanes françaises (2014) Energy bill Trade balance Breakdown of energy bill by fuel, 2013 (current € billion) Net Imports Energy securityCompetitivenessSocial benefitsEnvironment

France almost fully decarbonized power sector is unique globally Can nuclear energy meet the challenges ? French experience & achievements – 6 th Nuclear Energy Conclave - Oct. 14 th 2014 p.7 1, ~x6 China World United States France Germany 71 Global carbon intensity of the power sector is about 6 times higher than France’s The French power mix is over 90% low carbon, which is 3 times higher than the global mix Source: Enerdata (2013) 100% Australia 89% 11% China 79% 21% US 70% 30% Russia 68% 32% Germany 67% 33% Brazil 22% 78% Norway 2% 98% France 91% World 70% 30% Carbon-intensive fuels (oil, gas, coal) Low-carbon fuels (nuclear and renewables) Share of low CO 2 technologies in the power mix, 2012 (% of TWh generated) Evolution of power sector CO 2 emissions, (kgCO 2 / MWh generated) Energy securityCompetitivenessEnvironmentSocial benefits

UK -24% Netherlands -6% Italy -7% France -8% Finland -2% Denmark -16% Austria -9% 4% Germ. -24% 5% France enjoys high ranking for the environmental performance of its economy Can nuclear energy meet the challenges ? French experience & achievements – 6 th Nuclear Energy Conclave - Oct. 14 th 2014 p.8 Sources: Enerdata (2013), SoES (2013) Chiffres clés du climat - France et Monde 7.3 China 5.6 France 4.9 EU 6.8 G World 4.2 +~130% US 16.1 Germ. 9.0 UK CO 2 emissions per capita 130% higher in G8 countries than in France CO 2 emissions per capita, 2012 (tCO 2 per capita) France exceeded its Kyoto target by reducing its CO 2 emissions by 8% over Achieved reduction of CO 2 emissions in % over Missing reduction of CO 2 emissions to meet Kyoto targets Evolution of CO 2 emissions over (% of 2008 level) Reduction required by Kyoto non- binding targets Given its already limited CO 2 emissions, France was given no additional reduction target in the Kyoto protocol 12% 21% 0% +~40% Energy securityCompetitivenessEnvironmentSocial benefits

The nuclear industry supports 410,000 total jobs in France Can nuclear energy meet the challenges ? French experience & achievements – 6 th Nuclear Energy Conclave - Oct. 14 th 2014 p.9 125,000 people are directly employed in France by the nuclear industry Source: CSFN (2012) Cartographie de la situation nucléaire 2010; PwC (2011) Le poids socioéconomique de l’électronucléaire en France induced jobs direct jobs indirect jobs 410, , , , Employment in the nuclear sector in France (# employees) Mid Caps Large Cap 3% Small firms 46% Utilities 125,000 employees 2009 Direct Employment breakdown by firm size (%) Nuclear Waste Exploitation Others Construction Decomissioning Nuclear Fuel Upstream 2009 Nuclear employment over the value chain (% total French nuclear sector employees) Energy securityCompetitivenessEnvironment Social benefits

French nuclear program Key success factors A national ambition and a long-term vision to achieve energy security and independence Strong, consensual and continuous political support since the inception of the program The French government:  Made all strategic decisions  Defined and implemented the necessary industrial policy  Enforced decisions through its control of CEA and EDF  Kept the program on track Nuclear fleet standardization (PWR: 34 x 900MW ; 20 x 1 300MW ; 4 x 1 500MW) in order to :  Reduce the costs (engineering & construction, operation & maintenance)  Fasten the construction pace  1977~1979: Commissioning of 6 reactors  1980~1986: Commissioning of 36 reactors (5 reactors/y)  1987~1993: Commissioning of 12 reactors  1996~1999: Commissioning of 4 reactors  Increase safety levels Can nuclear energy meet the challenges ? French experience & achievements – 6 th Nuclear Energy Conclave - Oct. 14 th 2014 p.10

French nuclear program Key success factors Few strong actors committed to the implementation of the nuclear program driven by central government:  EDF, the utility entrusted with the construction and O&M of the nuclear power plants  AREVA (ex-Framatome), the supplier of the Nuclear Island  Alstom, the supplier of the Turbine Island  CEA, the organization in charge of R&D efforts  AREVA (ex-COGEMA), the company entrusted with the construction and O&M of all nuclear fuel cycle facilities French government did not provide subsidies or tax credits  Program mostly financed by debt  Regulated retail prices did not reflect real program costs Can nuclear energy meet the challenges ? French experience & achievements – 6 th Nuclear Energy Conclave - Oct. 14 th 2014 p.11 Although capex intensive, a firm, time-bound, committed and inclusive approach can provide safe, clean, cheap and consistent source of power leading to a self-reliant energy state