Civil Nuclear. Tony Moore Managing Director 30 September 2009

Transcription

1 Civil Nuclear Tony Moore Managing Director 30 September

2 The story so far no position in civil nuclear Exceptional growth over 3 years both organically and through acquisition Profit growth in line with revenue growth Revenue m 2006/7 2007/8 2008/9 Operating profit m /7 2007/8 2008/9 2

3 UKAEA Limited Strong nuclear brand over 50 years at forefront of UK civil nuclear programme Significant successful track record of managing UK nuclear sites Dounreay, Winfrith, Harwell Already managed the safe dismantling of 15 reactors and over 40 radioactive facilities Employs over 200 nuclear SQEP people with industry experts bringing deep technical knowledge and experience in decommissioning and waste management Established position in European decommissioning market 3

4 Civil nuclear market leader 50+ years of continuous involvement in UK civil nuclear industry The largest nuclear engineering and support service business in the UK Unrivalled capability c 150m annual revenue (including UKAEA Ltd) Positioned for future growth 4

5 A spread of revenue sources Broad and deep Evenly balanced Growth potential in all three markets 46% 2% 28% 24% Power generation Nuclear defence and research Nuclear clean up Other 5

6 The nuclear opportunity - UK Clean up Nuclear legacy clean up Waste management and decommissioning Power generation Increasing demand for power and nuclear as part of the energy mix New build Life extension Material condition Optimised operations Defence Strategic defence capability Investment in capability and infrastructure assets Government seeking private sector skills 6

7 Market resilience Power generation Nuclear clean up Nuclear defence and research New build Existing plant to 2035 Continuing need for nuclear engineering support services Strategic supplier to EDF/British Energy Programmed beyond end 21st century Safe and innovative solutions Key supplier with long track record 10 yr programme of decommissioning refurbishment and new facilities Operate in all 3 areas Strong market position Proposed reactor programme to 2025 Potential for 10 reactors for 60 yrs Experience, resource and capability to actively support the licensing, build and operation 250m pa (BE supply chain) 2.7bn pa (NDA) 500m pa (AWE) 2-3bn per reactor 7

8 Market focus and customers Power generation Nuclear clean up Nuclear defence and research New build British Energy NDA NDA Overseas AWE 7 AGR stations PWR station Operating stations Wylfa Oldbury SL Sellafield DSRL Dounreay RSRL Winfrith/ Harwell Magnox stations Drigg Springfield Capenhurst Tokai mura Andreeva Bay EBRD Ispra Ignalina Puram Aldermaston Burghfield Dockyard support Babcock Marine Devonport Faslane Rosyth Research and Science Jet ITER Rutherford Appleton Laboratory EDF/Centrica EON/RWE GDF Suez/ Iberdrola/ Scottish & Southern Energy 8

9 General market structure Civil Nuclear where we operate Site Owner Tier 1 Managing the site Tier 2 Main contractors Defence Nuclear where we operate Tier 3 Sub contractors Only UK company with this position 9

10 Value chain Increasing value to customer Increasing importance to customer s key outputs Increased sharing of risk Larger contracts Output solution Through-life service capability Integrated service package Dounreay Site Management BE Fuel route support AWE Re-kit Discrete support service Sellafield MDDH framework 10

11 Key industry characteristics Nuclear industry highly regulated high barriers to entry safety number one priority Demonstrable track record in safety Understanding of the complex issues Deep and broad technical competence Strong relationships with Regulator A nuclear pedigree 11

12 Civil Nuclear background power generation explained Babcock Civil Nuclear Babcock Networks Pressure Water Reactor (PWR) 12

13 Civil Nuclear background Fuel and waste cycle explained 13

14 What we do Deliver nuclear management services Provide specialist nuclear consultancy Design, build, upgrade, operate and maintain nuclear plant and systems. Deliver full project life-cycle capability enhanced via reachback Support significant installed OEM product base in UK Derive the majority of business through partnerships, alliances and long-term framework agreements 14

15 Covering the UK Babcock has had involvement on every UK nuclear site 15 15

16 The way we operate Safety case and environmental impact Feasibility studies Concept design Development of solutions Legislation compliance and validation Peer reviews / independent validation Project management and controls Systems integration Detail design Manufacture Procurement and supply chain management Site support services Reachback into other Babcock Divisions 16

17 Where we fit power generation Operational power stations Plant refurbishment and upgrade Fuel handling and management including cranes Reactor protection systems In-core inspection Waste and active effluent management High integrity spares Outage support Life extension support 17

18 Where we fit nuclear clean-up Decommissioning sites Site management Safety case and consultancy services Waste management, recovery, encapsulation, storage Plant decommissioning Decommissioning and site services Facilities operations and maintenance Fuel manufacturing and reprocessing sites Safety case and consultancy services Fuel and radioactive materials handling Glove boxes Manipulators, remote handling equipment and cranes Process plant Site support services 18

19 Where we fit nuclear defence and research AWE Plant Refurbishment Production facility construction Process plant Site services Decommissioning projects Dockyards Fuel and radioactive materials handling Waste and active effluent handling Plant and facilities decommissioning Research sites Facilities maintenance Outage services Plant refurbishment Construction management 19

20 Nuclear and the energy gap Nuclear currently provides 15-18% of UK electricity 10 operating nuclear power stations All but 1 currently scheduled to close by 2025 Life extensions under active consideration At least GW of investment in electricity generation needed in next two decades Government committed to a low-carbon economy Utilities intend to build 10 new nuclear stations to 2025 EDF publicly committed to first EPR station generating by Christmas

21 Future new reactor build programme - worldwide Over 300 reactors are planned or proposed for construction Significant increase in number of countries with intent to expand or launch nuclear programme in the last 3 years In Europe the number of countries with active nuclear programme may increase from 19 to 22 Huge investment in nuclear is expected over next 20 years Courtesy of Areva 21

22 New build customers Customers Regulator Babcock services Specialist consultancy and support Developer/ Prime Contractor Licensing support Build modules for nuclear island Nuclear steam supply system construction services Specialist equipment supply General engineering support Specialist Contractors Specialist consultancy General engineering support 22

23 New build opportunity 900m 700m Nuclear Island Conventional Island General Build Support: 400m Through Life Support 23

24 Summary Long and established track record Strong customer relationships Highly experienced across all sectors Significant SQEP resource Great market positions A demonstrable track record of growth 24

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