Closing the feedback loop in the end it

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

Content • Structure operations Urenco • Stakeholders • Urenco management system • Closing the feedback loop • Cultural aspects Paul de Jong / OECD Conference Cologne - May 30, 2006 2

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” Paul de Jong / OECD Conference Cologne - May 30, 2006 3

Company Structure Urenco’s operations is organised around two distinct business activities: UEC ETC 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 Urenco Deutschland Gmb. H Urenco Capenhurst Ltd Urenco Nederland BV NEF New Mexico Jülich D Capenhurst UK Almelo NL Paul de Jong / OECD Conference Cologne - May 30, 2006 is the owner of the centrifuge technology and sells and constructs centrifuge enrichment plants for its customers URENCO PROPRIETARY 4

The Urenco stakeholders 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 t he s hare hold ers the regulat or ciety e so th Paul de Jong / OECD Conference Cologne - May 30, 2006 the cus t om ers mployees the e 5

Principles Management System Therefore we continuously have to improve, we use the PLAN – DO – CHECK – ACT approach! PLAN ACT DO CHECK Paul de Jong / OECD Conference Cologne - May 30, 2006 6

Management System: Plan phase (1) Requirements stakeholders Vision, mission and values Strategy and policy What do we want to achieve? − − − − Technical Personnel Quality Safety Environment Security Safeguards Risk control reduction Risk management Improvements from check and act phase Business plan Long-term operational plans Do Paul de Jong / OECD Conference Cologne - May 30, 2006 7

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 Paul de Jong / OECD Conference Cologne - May 30, 2006 8

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 Paul de Jong / OECD Conference Cologne - May 30, 2006 9

Management System: Plan phase (2) Requirements stakeholders Vision, mission and values Strategy and policy What do we want to achieve? − − − − Technical Personnel Quality Safety Environment Security Safeguards Risk control mitigation Risk management Improvements from check and act phase Business plan Targets Long-term operational plans Do Paul de Jong / OECD Conference Cologne - May 30, 2006 10

Risk Assessment Consequence Insignificant (1) Minor (2) Moderate (3) Major (4) Catastrophic (5) Financial impact € 0 – 10 k p. a. € 10 k – 500 k p. a. € 500 k – 10 M p. a. € 10 M - € 100 M p. a. > € 100 M p. a. On time delivery 1 to 3 deliveries per year which require the delivery schedule with the fabricator to be adjusted, no impact on the customer 1 to 3 deliveries per year where product is not available on due date, but available for transport within 3 to 5 days, no impact on the customer Missing 1 to 3 product deliveries to the customer per year, which can be rectified within 2 weeks Missing up to 5 product deliveries to the customer per year, which can not be rectified within 2 weeks Missing 6 or more product deliveries to the customer per year, which can not be rectified within 4 weeks Quality Process outage without damage Process error corrected before delivery Single minor delivery requirements are not met Single major delivery requirements are not met Repeatedly major delivery requirements are not met Health and Safety People are frightened. No casualties Accidents without permanent injury Accident with lasting effects Death whilst company business Multiple deaths whilst company business Environment Contamination immediately contained On-site environmental contamination contained after prolonged effort On-site environmental contamination contained with outside assistants Off-site environmental contamination with detrimental effects Security and Safeguards Minor infringement of arrangements Correctable errors Unreliable systems Legal or regulatory non compliance Major breach of safeguards and security treaty Reputation Letters to local/industry press Series of articles in local/industry press Extended negative local/industry media coverage Short term (inter)national negative media coverage Extensive negative (inter)national media coverage Effort An event, the impact of which can be absorbed through normal activity An event, the consequences of which can be absorbed but management effort is required to minimize the impact A significant event which can be managed under normal circumstances A critical event which with proper management can be endured A disaster with potential to lead to collapse of the business Area Paul de Jong / OECD Conference Cologne - May 30, 2006 11

Consolidation net risk matrixes c 2 10 9 9 14 • Major 12 14 3 4 6 3 7 15 4 8 8 e • Impact • Moderat • Insignificant • Minor 12 xx Important xx Gross risk Net risk Moderate Low • Possible • Likely 9 9 7 12 3 14 4 6 4 7 8 8 15 5 5 6 11 15 13 2 10 9 9 7 12 3 14 1 11 xx Gross risk Net risk • Unlikely • Possible • Likely • Almost certain 9 9 14 7 1 10 12 14 3 3 7 4 15 4 8 8 5 11 13 12 11 Key Critical Important xx xx Gross risk Net risk Moderate Low • Rare • Unlikely 10 2 9 9 14 7 6 5 13 1 6 15 2 • Major 10 2 • Possible • Likelihood 1 e 2 c • Catastrophi Marlow c • Catastrophi xx Low • Rare UNL certain • Major 11 Moderate 4 4 7 8 8 15 1 5 6 11 15 • Likely • Almost certain 2 10 9 9 7 12 3 14 4 6 13 12 1 11 • Likely • Almost certain 10 12 14 3 3 7 4 15 4 8 8 5 13 1 6 15 5 11 13 12 11 Key Critical Important xx xx Gross risk Net risk Moderate Low • Rare • Unlikely • Possible • Likelihood • Likely • Almost certain 14 3 4 7 8 8 15 5 13 1 5 6 11 15 13 12 11 • Minor • Insignificant • Possible • Likelihood 12 Important 14 3 5 13 • Insignificant • Unlikely • Almost 6 13 Critical Paul de Jong / OECD Conference Cologne - May 30, 2006 • Rare 5 11 Key • Minor 12 15 1 6 15 • Likelihood 6 • Minor 13 4 4 8 8 5 • Catastrophic 1 • Impact • Moderate 1 3 • Likely Material Handling Enrichment 14 • Major 10 • Moderate 10 2 3 7 certain Logistics 2 12 13 • Almost • Likelihood • Possible 14 3 1 • Impact • Unlikely 9 9 14 7 e 11 • Unlikely • Impact • Moderat • Rare e 13 Critical • Catastrophic Low 10 6 5 Key • Rare 10 xx • Impact • Moderat 5 11 Gross risk Net risk xx Moderate • Insignificant • Minor 15 1 6 15 • Major 4 4 8 8 • Impact • Moderat e • Impact • Moderat 3 7 2 • Moderate 12 13 • Major Important • Rare • Unlikely • Possible • Likelihood • Likely • Almost certain • Insignificant 3 1 • Impact Critical • Likelihood 2 • Insignificant • Minor 9 9 14 7 14 • Major 10 6 • Insignificant • Minor Key c • Catastrophi c 10 2 5 11 13 UCL 2 • Major • Catastrophi UD 1 6 15 • Insignificant • Minor • Catastrophi Consolidated risk matrix 2 12 • Rare • Unlikely • Possible • Likelihood • Likely • Almost certain

Management System: Do phase How are we going to achieve that? Deliver within specification according to planning Secure (nuclear) licence & law Annual (short term) plans Execute according to plans − − − Agreed delivery planning Budget Quality Safety Environment Improvements from check and act phase From plan phase Check Paul de Jong / OECD Conference Cologne - May 30, 2006 13

Yearly planning of the MT diary Paul de Jong / OECD Conference Cologne - May 30, 2006 14

Measure and Monitor by plant-walk around Internal Reports Analyse data and correct non-conformances Risks determination & evaluation Management reports Continual improvement plan Quality report Safety report Environmental report Review report law & regulations External Reports Execute audits & inspections Management Review Paul de Jong / OECD Conference Cologne - May 30, 2006 Act VROM/KFD operational report VROM discharge air/water Safeguards Euratom/IAEA Improvements from check and act phase Management System: Check phase (1) 15

Management System: Check phase (2) Operational Safety & Environment Security Analyse data and correct non conformances Risks determination & evaluation Execute audits & inspections Management Review Paul de Jong / OECD Conference Cologne - May 30, 2006 Act Customers Internal audits and KEMA audits KFD, Safeguards and local inspections Accountants and tax authorities Stakeholder satisfaction Mission, vision and values Strategy and policy Audits and inspections Licences, law and regulations Continual improvement Effectiveness of Management System Improvements from check and act phase Risk areas: Measure and Monitor 16

Management System: Act phase Take and follow up corrective and preventive measures Improve continuously Paul de Jong / OECD Conference Cologne - May 30, 2006 Registers Unwanted events Audits, inspections & exercises Safety Continual improvement plan Improvements from check and act phase From check phase 17

Unwanted Events Register Paul de Jong / OECD Conference Cologne - May 30, 2006 18

Continual improvement plans Central Paul de Jong / OECD Conference Cologne - May 30, 2006 Local 19

Closing the feedback loop Analyse plant behaviour Plant commissioning Plant construction Long-term technical plan PLAN ACT Plant Operations DO CHECK Plant design Maintenance master plan Functional specification Paul de Jong / OECD Conference Cologne - May 30, 2006 Maintain and modify 20

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 Paul de Jong / OECD Conference Cologne - May 30, 2006 21

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 Paul de Jong / OECD Conference Cologne - May 30, 2006 22

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 Paul de Jong / OECD Conference Cologne - May 30, 2006 23

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! Paul de Jong / OECD Conference Cologne - May 30, 2006 24

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