URENCO FY Results 2011 Presentation FINAL

7/31/2019 URENCO FY Results 2011 Presentation FINAL

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Investor

Presentation:2011 Results

5 April 2012, London


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Contents

URENCO: Markets URENCO: Operational Performance

URENCO: Financial Performance URENCO: Outlook


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Our global presence


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The world energy challengeDemand and population growth through 2050

0

50,000

100,000

150,000

200,000

250,000

300,000

1950 2000 2050

Renewables Nuclear

Gas Oil

Coal Electricity Demand

1.6

2.5

6.1

8

9.2

1900 1950 2000 2025 2050

TWh equivalent*

Source: IAEA, OECD, WEC, WETO

* Ignores thermal to electrical coefficient

New demand forelectricity, incl.:

- Transport

- Desalination

Population (Billion)


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0

10

20

30

40

50

60

70

80

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Existing Centrifuge CapacityGDP and secondary supply

New Capacity (Unproven technology) WNA 2011 Ref. Demand

Project on hold

MSWU 0.22 w/o

CentrifugeSWU

GDP SWU, HEU

ACP, SILEX

SWU market equilibriumPrimary and secondary supply vs. global demand


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Capex

Regulatory

Impact from Fukushima

Mitigating FactorsPotential Impact

URENCO plant design safe

URENCO plant low chemical risk only

Sales

Geographic diversification

Replacement sales in new markets

Long-term order book in excess of20 billion extending beyond 2025

URENCO capacity expansion modular

Capacity expansion in line with customerneeds

Easily adjusted to market requirements

Committed to build close to customer demand


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Competition overview

Continued operation of gas diffusion plant in the US in question; ongoing

complex funding discussions reported for American Centrifuge Project.

Russia continuing on track to remove quotas and trade barriers in all

markets; Russian market still closed to URENCO.

European gas diffusion operations due to shut down; competitors centrifuge

plant operational ramp up continues.

China intent on having capacity to supply largest nuclear new build

programme globally. Seeking to access foreign enrichment capacity and

technology whilst developing domestic capability.

Laser enrichment approval issued following environmental impact

application.


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Global market share development

URENCO Group AREVA USEC

Other(s)TENEX/TVEL

2011 29%(Source: URENCO)

12%

21%

29%

10%

28%

Order Book

0

5

10

15

20

25

2006 2007 2008 2009 2010 2011

Billions

EUROPE EAST ASIA NORTH AMERICA REST OF WORLD

CAGR 8%


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Contents

URENCO operating markets

Operational performance

Financial performance Outlook


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Good 2011 performance

Fulfilled all customer commitments

Flexible business model: Solid revenue growth up 3.4% to 1.3 billion

Increased global market share to 29% *

Limited impact from Fukushima

Successful capacity expansion

Additional capacity of 1,600 tSW/a brings the Group to more than 14,600 tSW/a

On target to achieve 18,000 tSW/a by 2015

Enrichment capacity expanded in Germany, the Netherlands and the USA

Initial challenges in USA overcome; project expansion on schedule

Tails Management Facility project on schedule for operations in 2015

Strong platform to maintain growth

Order book continues to be strong: In excess of 20 billion extending beyond 2025

Future focus on internal efficiencies

*source:URENCO


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Our unique strengths

Being the most favourable supplier of

enrichment services: close relationships with all our customers

focus on quality and flexibility

100% delivery against commitments

Safety is our priority for the protection of:

our employees the communities where we operate

the suppliers we work with

the customers we supply

Our workforce is made up of very talented

people:

operating with great integrity

compliance in a highly regulated industry

directly responsible for the success of our

business

Centrifuge technology is the worlds

preferred uranium enrichment technology:

recognised as the most cost effective

proven form of enrichment globally


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Committed to build close to our

customers


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Contents



Financial performance Outlook


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Key indicators

NET INCOME

(m)

250.6

260.1

342.8

387

.1

359.1

07 08 09 10 11

REVENUE

(m)

1,30

2.4

1,2

59.4

1,1

17.6

1,1

24.6

1,0

20.4

07 08 09 10 11

EBITDA

(m)

542.4 6

54.3

655.3 8

09.2

784

.6

07 08 09 10 11

CAPITAL EXPENDITURE

(m)

574.

0 782.

3 996

.6

798.

5

752.

0

07 08 09 10 11


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Robust results and positiveoutlook

Operatingperformance

Solid financialstructure

EBITDA margin

1.3bn

60%

Expected growth in output, revenue and earningsin 2012

Net financial debt + 230m

Revenue

Net income margin 28%

Capital Investment 752m

No significant debtmaturities until 2015

Continued strongoperating cash flows


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2011 key figures

Financ ia l h igh l igh ts

2 0 1 1 2 0 1 0( i )

% I n cr ease/

m m ( Decr ease)

Revenue 1,302 .4 1,259.4 3%

EBITDA 784 .6 809.2 (3)%

Income from operating activities 525 .7 590.5 (11)%

Net Income 359 .1 387.1 (7)%

Capital expenditure(ii)

752 .0 798.5 (6)%

Cash generated from operations (before interest & tax) 902 .8 858.2 5%

(i) The December 2010 results have been restated for a change in accounting policy under IAS 31 Interests in Joint Ventures.

(ii) Capital expenditure reflects investment in property, plant and equipment plus the prepayments in respect of fixed asset

purchases for the year.


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Revenue, EBITDA, net income

2011 vs 2010 Reduction in SWU sales

compensated by increase in feed

sales

Operating costs impacted byincreased energy costs, ongoing

UUSA build-up costs and lower

margins due to sales mix

Higher depreciation following

installed capacity coming online

Reduction in tax effective rate

Group EBITDA 2011 vs 2010

785

15

5343

809

600

650

700

750

800

850

900

Actual 2010 Revenue impac t Change in Opex FX result Ac tual 2011

M

Group Net Income 2011 vs 2010

35933

35

45

25

387

300

320

340

360

380

400

Actual 2010 EBITDA

impact

Change in

depreciation

Change in

JV income

Change in

finance

costs

Change in

tax

Actual 2011

M

Group Revenue 2011 vs 2010

1,302

5

19

43

241,259

1,200

1,220

1,240

1,260

1,280

1,300

1,320

Actual 2010 SWU sales ENU/Feed

Sales

Hedging Other Actual 2011

M


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Capital Structure

Sufficient forward cover from our

committed funding facilities for the

medium term

New syndicated and bilateral

facilities totalling 750m due March

2016; 75m of additional European

Investment Bank funding drawn in2011

Continuing investor interest in

URENCOs corporate credit: Access to the US Commercial

Paper market

Access to a broad variety of

long-term funding

Facilities and funding

0

200

400

600

800

1,000

1,200

1,400

1,600

< 3 months 3-12 months < 3 Years < 5 Years 7 Years

000s

Facility Maturity Profile

Finance Facilities as at 31 Dec 2011

EIB 376m

European Private Placements 184m

Committed and bilateral Bank Facility 750m

( draw n 177m)

US Private Placements 496m

Eurobond 2017 500m

Eurobond 2015 500m

Bilateral Loans 93m

Commercial Paper Programme $500m

(draw n 242m)


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Contents



Financial performance

Outlook


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Positive outlook

Build and maintain strong customer relationships

Strong order book: 20 billion confirmed extendingbeyond 2025

Capacity increasing in line with demand no excessor shortfalls

Continued investment in technology, people and

innovation to maintain leading position

Flexibility of business model facilitating diversificationand future growth


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InvestorPresentation:2011 Results

5 April 2012, London

Documents

URENCO FY Results 2011 Presentation FINAL