1. The UK Nuclear Market

2. Paul Lester CEO

3. Lord Mandelson Secretary of State for Business, Innovation and Skills

4. Q & A Session

6. John Chubb Managing Director, Environment

7. The Global Nuclear Market Today and 2014 (Source: URENCO, NDA, Areva, British Energy. UK spend includes T1 expenditure) £2bn £12bn £2.5bn £5.5bn £3.5bn Market: £0.25bn 2009 2014 ENRICHMENT FUEL FABRICATION REACTOR BUILD AND SERVICES REPROCESSING WASTE MANAGEMENT DECOMMISSIONING & £0.5bn£2bn £1.25bn£0.5bn£2.5bn

8. Current Business Performance Revenue £65m Profit contribution£4.5m Margin 7% Investment net of cash £33.8m

9. Nuclear Capability Nuclear Engineering 450 engineers Project Management Safety Case / Specialist Consultancy Waste Management and Characterisation Radiometric Instrumentation Design and through life service Radiological Analysis VT has a broad range of nuclear capabilities in a market where supply is becoming increasingly stretched

10. World Leading Capabilities Graphite decommissioning - support to EDF Programme management - support to EBRD Waste retrieval projects - major Sellafield projects: B29, B30 Reprocessing technology - support to Japan Nuclear Fuel Ltd Radiological analysis - Sellafield & security services

11. Strategic Repositioning - Markets

12. Example: Sellafield Instrument Service Waste processing as a service Waste stores as a service Waste and decommissioning projects Training Service provided Service capability Asset Care

13. Thought Leadership – Service Approach  Plutonium contaminated waste measurement service  Dry spent fuel storage  Deconversion of Uranium Hexafluoride  Capability contract – intermediate level waste store

14. Where we work Dounreay Sellafield Hunterston Chapelcross Wylfa Berkeley Sizewell Capenhurst Oldbury Hinkley Dungeness Bradwell LLWR Drigg Hartlepool Heysham Trawsfynydd Harwell Aldermaston Torness

15. Major Customers

16. Capability Comparison

17. Example: Waste and Decommissioning B29 Project value: Circa £50m

18. Example: Waste and Decommissioning B29 Project value: Circa £50m Project Management Concept Design Waste Characterisation Operation Procurement

19. Structure of the New Build market International Utility, eg: EDF Utility or Reactor Vendor Reactor Vendor eg: Westinghouse Non-nuclear Island eg: Turbine Nuclear Island eg: Reactor General Support eg: Licensing Developer Prime Contractor Technology Provider Specialist Contractors VT can provide support to all of these sectors Early Traction:  NII Frameworks  Reactor components  Expert support to reactor vendor  Ongoing discussions with utilities and reactor vendors

20. Example: New Build Opportunity Total cost of a new build station will be in excess of £2bn per unit: ~15% is currently addressable by VT Group Nuclear Island £900m Non-Nuclear Island £700m General Support: £400m Design for Decommissioning Radwaste Plant Engineering Validation/ Inspection Specialist Manufacturing Source: IBM General Engineering Support Safety Case/ Environmental Impact Assessments

21. Example: New Build Opportunity – Operational Support Each Reactor costs ~10p/ KWh in operational support costs - £300M over the life of the plant Operations, Training, Logitsics c.4p/ KWh Maintenance, Repair, Spare Parts, Engineering c.6p/ KWh General Engineering Support Waste Processing Service Spent Fuel Storage Service Operator & Apprentice Training Source: Areva/ Nucleonics Week March 2009 40 Years of through life support

22. Summary  Strong nuclear engineering and technical capability  Bringing the VT Group customer-critical service delivery model to the nuclear sector  Broadening into adjacent sectors of the nuclear market with long-term potential  Positive feedback from early engagement with customers on this new approach

23. Q & A Session