COMMISSION DECISION (EU) 2017/1021
of 10 January 2017
on State aid SA.44727 2016/C (ex 2016/N) which France is planning to implement in favour of the Areva group
(notified under document C(2016) 9029)
(Only the French text is authentic)
(Text with EEA relevance)
1.
PROCEDURE
2.
DETAILED DESCRIPTION OF THE AID
2.1.
Beneficiary and background to the granting of the aid
2.1.1.
Overview of the Areva Group
Figure 1
Overview of the Areva Group's activities
Figure 2
Simplified organisation chart for the Areva Group as at 31 December 2014
2.1.2.
The difficulties encountered by the Areva Group
2.2.
Areva Group's restructuring plan
2.2.1.
Refocusing on the fuel cycle business
2.2.1.1.
Divestments made or planned by the Areva Group
2.2.1.2.
Hive-down of the nuclear fuel cycle business
2.2.1.3.
Ring-fencing of certain liabilities of the Areva Group
2.2.2.
Performance and Competitiveness Plan
2.2.3.
Financial restructuring
2.3.
Notified aid
2.4.
Grounds for initiating the procedure
2.4.1.
Doubts about the plan for returning the restructured Areva Group to long-term viability
2.4.2.
Doubts about the proportionality of the aid
2.4.3.
Doubts about the measures to limit distortions of competition
3.
COMMENTS BY THIRD PARTIES
3.1.
The Areva Group
3.2.
Urenco
3.3.
TVO
3.4.
Siemens
3.5.
Third party wishing to remain anonymous
4.
COMMENTS BY FRANCE
4.1.
Only the capital injection could constitute State aid
4.2.
The Areva Group is implementing a restructuring plan to restore its long-term viability
4.2.1.
New Areva's business plan takes into account the consequences of the proposed divestments
4.2.2.
Sensitivity analysis and risk reduction strategy
4.2.3.
New Areva will be able to refinance itself on the markets over the period 2015-2025
4.2.4.
Areva SA will have the resources to cover its financial needs over the period 2016-2025
4.3.
The aid measure is proportionate and limited to the minimum necessary
4.3.1.
The principle of fair burden-sharing is respected with regard to minority shareholders
4.3.2.
The Areva Group's own contribution is sufficient, real and actual
4.4.
The Areva Group proposes measures to minimise the distortions of competition
4.4.1.
Quantification of the compensatory measures
4.4.2.
The divestment of New Areva NP penalises all of New Areva's activities over the long term
4.4.2.1.
Front-end operations
4.4.2.2.
Back-end operations
4.4.3.
The overall strategic and industrial partnership between New Areva and EDF would not allow the synergies currently associated with Areva NP's integration within the Areva Group to be restored
4.4.4.
The French authorities undertake to ensure that the Areva Group takes the behavioural measures referred to in point 84 of the Guidelines
4.5.
Observations by the French authorities on the comments by interested parties
4.5.1.
Comments by TVO and Siemens
4.5.2.
Comments by Urenco
4.5.2.1.
On the alleged distortions of competition
4.5.2.2.
On the compensatory measures
5.
ASSESSMENT OF THE AID
5.1.
Existence of aid
5.1.1.
The French State's subscription to the capital injections into Areva SA and New Areva
5.1.2.
Divestments carried out under the restructuring plan
5.1.2.1.
Sale of a majority stake in New Areva NP
5.1.2.2.
Divestment of Areva TA
5.2.
Compatibility of the aid with the internal market
5.2.1.
Eligibility of the Areva Group for restructuring aid
5.2.2.
Contribution to a well-defined objective of common interest
5.2.3.
Restructuring plan and return to long-term viability
5.2.3.1.
New Areva's business plan
EUR million |
2012 |
2013 |
2014 |
2015 |
O2016 |
O2017 |
O2018 |
B2019 |
B2020 |
B2021 |
B2022 |
B2023 |
B2024 |
B2025 |
Total 16-25 |
Turnover |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
% growth |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
|
Gross margin |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
as % of turnover |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
|
R&D |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
|
Comm and marketing costs |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
|
Administrative costs |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
|
Other costs and proceeds from operations |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
|
Total non-operational costs |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
EBIT |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
as % of turnover |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
|
D&A and movements in provisions |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
EBITDA |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
as % of turnover |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
|
Var. operational working capital requirements |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Operational investments |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Operational divestments |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Proceeds from divestments |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Operational cash flow |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
EUR million |
2012 |
2013 |
2014 |
2015 |
O2016 |
O2017 |
O2018 |
B2019 |
B2020 |
B2021 |
B2022 |
B2023 |
B2024 |
B2025 |
Total 16-25 |
Turnover |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
% growth |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
|
Gross margin |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
as % of turnover |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
|
R&D |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
|
Comm and marketing costs |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
|
Administrative costs |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
|
Other costs and proceeds from operations |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
|
Total non-operational costs |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
EBIT |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
as % of turnover |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
|
D&A and movements in provisions |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
EBITDA |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
as % of turnover |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
|
Var. operational working capital requirements |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Operational investments |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Operational divestments |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Proceeds from divestments |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Operational cash flow |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
5.2.3.2.
Areva SA's business plan
5.2.4.
Need for State intervention and incentive effect
5.2.5.
Appropriateness of the aid measure
5.2.6.
Proportionality of the aid
5.2.6.1.
Adequate burden-sharing
5.2.6.2.
Own contribution
State aid |
Own contributions |
|||
Type |
Amount (EUR billion) |
Type |
Amount (EUR billion) |
|
Capital injection into Areva SA |
2,00 |
Own funding |
Divestment of New Areva NP |
2,50 |
Capital injection into New Areva |
2,50 |
Divestment of Canberra |
[0-1] |
|
|
Divestment of Areva TA |
[0-1] |
||
Other divestments |
[0-1] |
|||
Own funding |
[0-1] |
|||
External finance |
Third-party participation in the capital injection into New Areva |
0,50 |
||
TOTAL |
4,50 |
TOTAL |
[3-7] |
|
Cost of restructuring: around [8-9] |
Costs of restructuring |
|
EUR million |
Total 2015-2019 |
1. Financial restructuring |
|
Interest |
[…] |
Repayment of existing debt |
[…] |
Financial restructuring total (A) |
[…] |
2. Industrial restructuring |
|
2.1. Included in the operational cash flow |
|
Company reorganisation |
[…] |
Production losses |
[…] |
Carve-out costs |
[…] |
[…] |
[…] |
Contingencies |
[…] |
Total operational cash flow (B) |
[…] |
2.2. Included in the non-operational cash flow |
|
Costs linked to SET and Eurodif |
[…] |
[…] |
[…] |
CIGEO |
[…] |
Additional cost of hive-down scheme |
[…] |
Total non-operational cash flow (C) |
[…] |
Industrial restructuring total (D) = (B) + (C) |
[…] |
Grand Total (A) + (D) |
[8-9] |