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7/31/2019 URENCO FY Results 2011 Presentation FINAL
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Investor
Presentation:2011 Results
5 April 2012, London
7/31/2019 URENCO FY Results 2011 Presentation FINAL
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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
URENCO operating markets
Operational performance
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
URENCO operating markets
Operational performance
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
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