Closing the feedback loop, in the end it is a people thing!

1. Closing the feedback loop,in the end it is a people thing! Paul de Jong Managing Director Urenco Nederland B.V. May 30, 2006

2. Structure operations Urenco Stakeholders Urenco management system Closing the feedback loop Cultural aspects Content

3. The Urenco Role “The establishment of joint industrial enterprises to build plants for the enrichment of uranium by the gas centrifuge process, to operate such plants and exploit that process on a commercial basis”

4. Company Structure Urenco’s operations is organised around two distinct business activities: UEC: Enrichment of uranium owns the enrichment plants and the nuclear licences to operate and provides enrichment services to its customer ETC: Supply of technology is the owner of the centrifuge technology and sells and constructs centrifuge enrichment plants for its customers UEC ETC Urenco Deutschland GmbH Jülich D Urenco Capenhurst Ltd Capenhurst UK Urenco Nederland BV Almelo NL NEF New Mexico URENCO PROPRIETARY

5. It starts with stakeholders, needs and expectations! Urenco is in a long term nuclear business which has to be reflected in the operational performance We have to keep all direct and indirect Urenco stakeholders (long term) satisfied The Urenco stakeholders the regulator the shareholders the customers the employees the society

6. PLAN ACT DO CHECK Principles Management System Therefore we continuously have to improve, we use the PLAN – DO – CHECK – ACT approach!

7. Management System: Plan phase (1) Requirements stakeholders Vision, mission and values Strategy and policy Business plan Long-term operational plans • Technical • Personnel • Quality • Safety • Environment • Security • Safeguards What do we want to achieve? Improvements from check and act phase Risk management Risk control  reduction Do

8. Urenco’s Vision & Mission Vision: • We believe the Future needs nuclear power to meet the demand for sustainable global energy Mission: • Enriching the Future is our commitment, through the global deployment of our nuclear products, services and technology to support sustainable nuclear energy

9. Urenco’s Values Safety • We will operate to the highest standards of safety, environmental and security requirements Integrity • We will conduct all our relationships with honesty, fairness and respect Flexibility • We will be responsive to the market to best meet our customers’ needs through the flexible deployment of our skills Development • We are committed to the sustainable growth of our business through the continuous development of our employees, services and products Profitability • We are committed to making profits to secure our future and reward our shareholders and employees

10. Management System: Plan phase (2) Requirements stakeholders Vision, mission and values Strategy and policy Business plan  Targets Long-term operational plans • Technical • Personnel • Quality • Safety • Environment • Security • Safeguards What do we want to achieve? Improvements from check and act phase Risk management Risk control  mitigation Do

11. Risk Assessment

12. 2 2 2 2 2 2 2 2 10 10 10 10 14 14 14 14 • Catastrophic • Catastrophic • Catastrophic • Catastrophic 9 9 9 9 12 12 12 12 3 3 3 3 4 4 4 4 1 1 1 1 5 5 5 5 10 10 10 10 7 7 7 7 9 9 9 9 7 7 7 7 8 8 8 8 6 6 6 6 11 11 11 11 • Major • Major • Major • Major 3 3 3 3 8 8 8 8 14 14 14 14 15 15 15 15 15 15 15 15 4 4 4 4 6 6 6 6 1 1 1 1 5 5 5 5 13 13 13 13 • Impact • Impact • Impact • Impact • Moderate • Moderate • Moderate • Moderate 13 13 13 13 12 12 12 12 11 11 11 11 Enrichment • Minor • Minor • Minor • Minor Key Key Key Key Critical Critical Critical Critical Gross risk Gross risk Gross risk Gross risk xx xx xx xx Important Important Important Important Net risk Net risk Net risk Net risk 2 2 10 14 2 2 10 14 2 2 10 14 xx xx xx xx Moderate Moderate Moderate Moderate • Catastrophic • Catastrophic • Catastrophic • Insignificant • Insignificant • Insignificant • Insignificant Low Low Low Low 9 12 3 4 1 5 9 12 3 4 1 5 9 12 3 4 1 5 10 7 10 7 10 7 9 9 9 7 8 6 11 7 8 6 11 • Major • Major 7 8 6 11 • Major 3 3 3 8 8 8 14 14 14 15 15 15 15 15 15 4 4 4 6 6 6 1 5 13 1 5 13 1 5 13 • Rare • Rare • Rare • Rare • Unlikely • Unlikely • Unlikely • Unlikely • Possible • Possible • Possible • Possible • Likely • Likely • Likely • Likely • Almost certain • Almost certain • Almost certain • Almost certain • Impact • Impact • Impact • Moderate • Moderate • Moderate • Likelihood • Likelihood • Likelihood • Likelihood 13 12 11 13 12 11 13 12 11 • Minor • Minor • Minor • Insignificant • Insignificant • Insignificant • Rare • Rare • Rare • Unlikely • Possible • Likely • Almost certain • Likelihood Consolidation net risk matrixes Consolidated risk matrix 2 2 10 14 • Catastrophic 9 12 3 4 1 5 9 7 8 6 11 • Major 3 8 14 15 15 4 6 13 • Impact • Moderate • Minor Key Critical Gross risk xx Important Net risk xx Moderate • Insignificant Low UD UCL UNL Marlow • Rare • Unlikely • Possible • Likely • Almost certain • Likelihood Logistics Material Handling • Unlikely • Possible • Likely • Almost certain • Unlikely • Possible • Likely • Almost certain • Likelihood • Likelihood

13. Management System: Do phase From plan phase How are we going to achieve that? Deliver within specification according to planning Secure (nuclear) licence & law Annual (short term) plans • Agreed delivery planning • Budget • Quality • Safety • Environment Improvements from check and act phase Execute according to plans Check

14. Yearly planning of the MT diary

15. Management System: Check phase (1) Measure and Monitor • Monitor by plant-walk around • Internal Reports • Management reports • Continual improvement plan • Quality report • Safety report • Environmental report • Review report law & regulations • External Reports • VROM/KFD operational report • VROM discharge air/water • Safeguards Euratom/IAEA Analyse data and correct non-conformances Risks determination & evaluation Improvements from check and act phase Execute audits & inspections Management Review Act

16. Management System: Check phase (2) Measure and Monitor • Risk areas: Operational Safety & Environment Security Analyse data and correct non conformances Customers Internal audits and KEMA audits KFD, Safeguards and local inspections Accountants and tax authorities Risks determination & evaluation Improvements from check and act phase Execute audits & inspections Stakeholder satisfaction Mission, vision and values Strategy and policy Audits and inspections Licences, law and regulations Continual improvement Effectiveness of Management System Management Review Act

17. Management System: Act phase From check phase Take and follow up corrective and preventive measures Registers Unwanted events Audits, inspections & exercises Safety Improvements from check and act phase Improve continuously Continual improvement plan

18. Unwanted Events Register

19. Continual improvement plans Central Local

20. Plant commissioning PLAN Plant construction Plant Operations ACT DO Plant design Maintenance master plan CHECK Functional specification Maintain and modify Closing the feedback loop Analyse plant behaviour Long-term technical plan

21. Satisfy stakeholders: What does it really mean? • Short and long term security of supply • We always need to deliver the customer the agreed product within specification according to planning • Against competitive production costs • Under the highest possible security and safety standards with respect to people (neighbours and employees) and environment

22. Cultural aspects • Of course we need to have quality manuals, continuous improvement plans, ISO-certificates, etc. • But for reaching the highest possible standards it is my conviction that it is necessary to set the right culture and to have a high level of employee training & motivation

23. Setting the right culture: HR-policy • We are continuously increasing the training level of our employees • Example shift personnel: we hire up to BSc-level, we continuously train them in-house and we certify them • We do our bests to continuously keep them fit for their jobs • understanding • awareness • ownership • enthusiasm • With our remuneration policy we reward our employess for their performance

24. Housekeeping:the first step to safety and quality! • Have a vision how to organise the site infrastructure • Keep the site infrastructure and buildings clean • Encourage the employees to organise their workplace • what do you really need at your workplace? • give equipment, tools and materials a place of their own • keep workplaces clean • standardise for the site • maintain the standard reached • Show your people the benefits  this takes time • Be around by management walk around!

25. We may not be at the top yet ….. but looking down we are closer to the top then to the valley! Questions?