Urenco Annual Report 2022

Capital expenditure Reflects investment in property, plant and equipment plus the prepayments in respect of fixed assets and intangible asset purchases for the period. Deconversion This is the process of removing the volatile fluorine component from uranium hexafluoride to make stable uranium oxide (U 3 O 8 ). Urenco has chosen to use U 3 O 8 as the long term retrievable storage form of uranium. EBITDA EBITDA is defined as earnings before exceptional items, interest (including other finance costs), taxation, depreciation and amortisation and results of joint venture and other investments. Depreciation and amortisation are adjusted to remove elements of such charges included in changes to inventories and SWU assets and net costs of nuclear provisions. The reconciliation between EBITDA and income from operating activities is made in note 4 and this is disclosed in relevant footnotes. 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). ERM Enterprise Risk Management – a framework used by organisations to manage risks and opportunities related to the strategic objectives. ETC Enrichment Technology Company Limited – a joint venture company jointly owned with Orano (previously Areva). ETC provides enrichment plant design services and gas centrifuge technology for enrichment plants through its subsidiaries in the UK, Germany, the Netherlands, France and the US. Euratom The European Atomic Energy Community, established in 1957 by members of the European Union. EUP Enriched Uranium Product, i.e. UF 6 enriched, typically, to between 3 % and 5 % U 235 content. Feed Natural or reprocessed uranium, converted to UF 6 , and fed into the cascades for enrichment. FFO/TAD The ratio of funds from operations (FFO) to total adjusted debt (TAD). FFO is defined as EBITDA adjusted for interest costs, current tax expenses and pension obligations. TAD is interest bearing loans and borrowings adjusted for cash and short term bank deposits, the nuclear decommissioning trust fund, lease liabilities, retirement benefit obligation deficit, and tails and decommissioning provisions. HALEU High-Assay Low-Enriched Uranium fuel, which is enriched up to 19.75 % to power the next generation of nuclear reactors such as small modular reactors (SMRs). IAEA The International Atomic Energy Agency is the world’s central intergovernmental forum for scientific and technical cooperation 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. LEU+ Low Enriched Uranium Plus – UF 6 enriched to between 5 % and 10 % U 235 content, which can be used in existing light water reactors seeking to achieve higher levels of safety and efficiency. Location Based Approach GHG emissions associated with the generation of purchased electricity, heat or steam calculated using the national or regional average emission factor for this supply. Low Assay Feed (LAF) Tails material with a U 235 assay such that there is economic rationale to include in plans to re-enrich. LTI A Lost Time Incident is any work related injury or illness which prevents that person from doing any work the day after the accident. Market Based Approach GHG Emissions associated with the generation of purchased electricity, heat or steam calculated using the contractually agreed emission factor for this supply. Net assets Total assets less total liabilities. Net costs of nuclear provisions The net costs charged to the income statement associated with the creation and release of provisions for tails, decommissioning and re-enrichment of LAF. Net debt/Net cash and investments Loans and borrowings (current and non-current) plus obligations under leases less cash and cash equivalents and short term deposits and investments in the nuclear decommissioning trust fund. Net finance costs Finance costs less finance income, net of capitalised borrowing costs and including costs/income of non-designated hedges and charges/ reversals of expected credit losses on financial assets. Net interest Net finance costs excluding gains and losses on non-designated hedges and excluding capitalised borrowing costs. Glossary 180 Urenco Annual report and accounts 2022 Financial statements 03