Urenco Annual Report 2022

55 Urenco Annual report and accounts 2022 Strategic report 01 Urenco Group Financial Policy Statement The Financial Policy Statement defines the broad parameters for financing the Urenco Group and has the agreement and support of all of our shareholders. The Groupwill finance itself through a combination of equity, including retained reserves and debt. Due consideration is given to the Group’s long termunfunded nuclear liabilities when considering financing options. Urenco Limited cannot issue new equity without the agreement of all of its shareholders. In order to achieve an efficient financial profile, the gearing level and financial ratios will bemaintained to retain a solid investment grade credit rating for the Group. At all times, the Groupwill maintain sufficient liquidity to ensure that it is a going concern andwill manage the composition of its debt tominimise risks frommarket deterioration in liquidity, interest rates or currencies. Detailed treasurymanagement policies set parameters for themanagement of these risks. Dividend policy TheGroupwill aimto pay a dividend out of its cumulative earnings. The dividend shall be set to take account of net income, cash flows, reserves and the level of credit ratios. Until financial ratios comfortably exceed theminimumthreshold for BBB+ at S&Pand Baa1 atMoody’s, the annual dividendwill not exceed 100 % of the net income for the year.A lower dividendmay be set when credit ratios, cash flowor funding conditions dictate that this is necessary and, equally, a higher dividendmay be declaredwhen theminimum thresholds of the key financial ratios are comfortably exceeded. In 2022, an interimdividend of €150.0million for the year ended 31 December 2022was paid to shareholders on 20December 2022 and a final dividend of €150.0millionwas paid in respect of 2021 on 23March 2022. TheBoard has approved that a final dividend of €150.0million be paid on 16March 2023.The level of the total dividend for 2022 is less than the net income. Consideration has been given to both the Group’s favourable cash position and credit ratios, and the availability of sufficient distributable reserves. As at 31 December 2022, theCompany had distributable reserves available of €974.1million (31 December 2021: €1,069.9million). Order book Urenco has a strong order book which extends into the 2030s with an approximate value at 31 December 2022 of €10.8 billion based on €/$ of 1 : 1.07 (2021: €8.7 billion based on €/$ of 1 : 1.14). Outlook We are a unique uraniumenrichment company and due to our international diversity we offer security of supply to our customers. We have four enrichment facilities in four countries and our operations are underpinned by robust international treaty commitments on nuclear safeguards and non-proliferation. We are signing new contracts at higher prices than a year ago, and amending existing contracts,maintaining our customer base, and raising our profile in newmarkets. We are optimistic about the prospects for our core enrichment business as themarket looks to security and certainty of supply and there are significant opportunities in themarket for advanced fuels whichwe believe we are well positioned to offer.