Glossary Areva The French energy group. Capital expenditure Purchases of property, plant and equipment including prepayments relating to payments to ETC in advance of contracted cascade deliveries, which will be supplied in future periods. Cascade The arrangement of centrifuges connected in parallel and in series is termed a “cascade”. In a uranium enrichment plant several cascades are operated in parallel to form an “operational unit” producing one U235 assay. Various operational units form one enrichment plant. ChemPlants URENCO ChemPlants, a subsidiary company of URENCO, is responsible for the construction and operation of the Tails Management Facility at URENCO’s UK site at Capenhurst. CNS Capenhurst Nuclear Services Limited. This company has taken responsibility for storage of certain uranic materials on behalf of the Nuclear Decommissioning Authority at the Capenhurst facility in the UK. Deconversion This is the process of removing the volatile fluorine component from uranium hexafluoride to make stable uranium oxide (U3O8). URENCO has chosen to use U3O8 as the long-term retrievable storage form of uranium. EBITDA Earnings before interest (including other finance costs), taxation, depreciation and amortisation and joint venture results (or income from operating activities plus depreciation and amortisation, plus joint venture results). Enrichment The step taken in the nuclear fuel cycle that increases the concentration of U235, relative to U238, in order to make uranium usable as a fuel for light water reactors. Enrichment Group A collective name for URENCO Enrichment Company Ltd and its subsidiaries namely: URENCO UK Ltd (UUK); URENCO Nederland B.V. (UNL); URENCO Deutschland GmbH (UD) and URENCO Inc (UI). ETC Enrichment Technology Company Limited. Euratom The European Atomic Energy Community, established in 1957 by members of the European Union. EUP Enriched Uranium Product, i.e. UF6 enriched, typically, to between 3% and 5% U235 content. Feed Natural or reprocessed uranium, converted to UF6, and fed into the cascades for enrichment. FFO/TAD The ratio of Funds From Operations (FFO) to Total Adjusted Debt (TAD), where FFO is operating cash flow before working capital changes, and TAD is Net Debt plus Decommissioning and Tails provisions and Retirement Benefit Obligations. Gas centrifuge Gas centrifugation is a uranium enrichment process which uses the gas centrifuge to accelerate molecules so that particles of different masses are physically separated along the radius of a rotating container. This increases the proportion of the useful U235 isotope. Global Reporting Initiative (GRI) The GRI is the reporting framework which provides guidance on sustainability performance reporting. IAEA The International Atomic Energy Agency is the world’s central intergovernmental forum for scientific and technical co-operation in the nuclear field. IAS International Accounting Standards. IFRS International Financial Reporting Standards. Joint Committee The committee of representatives of the governments of the Netherlands, the United Kingdom and Germany that oversees URENCO’s compliance with the Treaty of Almelo. Louisiana Energy Services LLC Parent company for URENCO USA; 100% owned by the URENCO Group. Net assets Total assets less total liabilities. Net debt Loans and borrowings (current and non-current) plus obligations under finance leases less cash and cash equivalents. Net finance costs Finance costs less finance income. Net interest Net finance costs excluding income and costs on non-designated hedges and excluding capitalised borrowing costs. Nuclear fuel supply chain The multiple steps that convert uranium as it is extracted from the earth to nuclear fuel for use in power plants. Uranium enrichment is one step in the nuclear fuel supply chain. Order book Contracted and agreed business estimated on the basis of “requirements” and “fixed commitment” contracts. Supplier of choice Increasing available capacity and experience of new operating environments facilitates first class service delivery and the flexibility to meet the changing needs of our customers. This will enable URENCO to be considered the “supplier of choice” by our customers. SWU Separative Work Unit. The standard measure of the effort required to increase the concentration of the fissionable U235 isotope. Tails (Depleted UF6) Uranium hexafluoride that contains a lower concentration than the natural concentration (0.711%) of the U235 isotope. Tails Management Facility (TMF) The facility managed by URENCO ChemPlants that will manage the deconversion of tails to stable uranium oxide (U3O8). Currently under construction at URENCO’s UK site in Capenhurst, UK, it will consist of a number of associated storage, maintenance and residue processing facilities to support URENCO’s long-term strategy for the management of tails. Treaty of Almelo In the early 1970s the German, Dutch and British governments signed the Treaty of Almelo, an agreement under which the three partners would jointly develop the centrifuge process of uranium enrichment. Treaty of Cardiff In July 2005 the German, Dutch, British and French governments signed the Treaty of Cardiff, an agreement between the four governments to supervise the collaboration between URENCO and Areva in their joint venture, ETC. Treaty of Washington In July 1992 the German, Dutch, British and United States of America governments signed the Treaty of Washington, an agreement which was required in order to permit the establishment of the National Enrichment Facility. tSW Tonnes of Separative Work. tSW/a Tonnes of Separative Work per annum. Turnover Revenue from the sale of goods and services. UEC URENCO Enrichment Company Limited. UK GAAP The Generally Accepted Accounting Practice in the UK. Uranium A fairly abundant metallic element. Approximately 993 of every 1,000 uranium atoms are U238. The remaining seven atoms are U235 (0.711%), which is used in today’s nuclear power stations to generate energy by fission. Uranium hexafluoride (UF6) All enrichment processes today work with gaseous material; therefore uranium is converted to UF6. URENCO USA URENCO’S enrichment facility in New Mexico, US, owned and operated by Louisiana Energy Services LLC. USNRC Nuclear Regulatory Commission – the United States Nuclear regulator. U235 The fissionable uranium isotope found in natural uranium. U235 Assay The weight percent of U235 atoms in uranium presented as a percentage of U235 atoms divided by all uranium atoms. U238 The non-fissionable uranium isotope that makes up most of natural uranium. U3O8 Uranium oxide, the most stable form of uranium. Working capital Inventories, trade and other receivables, and cash and cash equivalents, less the current portion of trade and other payables.