2. 2 Rob Harries-Harris Strategy and Commercial Model Date: February 2014

3. Agenda Key Principles Governance Best Athlete Approach Effective Planning and Control Commercial Model Contractual Architecture Collaborative Management Plan 3

4. Ways of working based on: –Best athlete commercial arrangements –Resource mobility –Common goals –Trusting, but not cosy, relationships –Best practice without a nuclear premium Partner Capabilities –Effective planning and control at the heart of delivery –Supply chain innovation –Construction expertise during client design –Delivery integration Guiding Principles for DDP

5. Governance Decommissioning Division DDP Board Sellafield Programmes DDP Lead Partners DDP Management Group Other Sellafield Alliances / Contracts DDP Delivery Work Allocation Independent Cost Scrutiny Decommissioning Programme Partner Client / Contract Management Safety / Commercial Financial / Intelligent Customer SL Self- Perform

6. Best Athlete Approach Decommissioning Division (Client) DDP Board Sellafield Programmes DDP Lead Partners DDP Management Group Other Sellafield Alliances / Contracts DDP Delivery Work Allocation SL Self- Perform DDP Umbrella Agreement

7. Work Allocation/Reallocation

8. Delivering Improved Performance Phase 1Phase 2 Phase 3 Effective Planning and Control SPI CPI SPI CPI SPI

9. Effective Planning and Control Asset Performance and condition/level of risk Future Demand Client strategies New Issues e.g. resilience Client SpecificationsRisk Baseline Work Programme Optimised Work Programme

10. Annual Work Programmes Other Activity Schedules Accelerations & Carry Over Optimised Work Programme Current Risk Level Emergent WorkFunding Annual Work Programme Incentives Through Work

11. Commercial Models Fixed Fee modified annually in light of annual work programme (for costs not associated with project execution) Project Execution –Target Cost –Cost Reimbursable –Fixed Price

12. Incentive Model Four levels of incentives: project, programme, fee and annual work programme Limited project incentives immediately available to Delivery Partner Greater part of project incentives attributed to programme-level fund Programme fund shared with Delivery Partners on annual basis. Fund moderated by KPIs: –Customer service & Relationship/Integration –Socio-Economic/SME Performance, Capacity/Capability Improvements –Innovation –Delivery on Time –Delivery on Cost –Delivery to Quality –Health, Safety and Environmental Requirements –Adherence to DDP Processes KPI Performance will also moderate Fee and Annual Work Programme

13. Contractual Architecture Delivery Partners Sellafield Ltd. New Supply Chain Existing Supply Chain Delivery partner access to / management of SL supply chain Delivery partner access to / management of SL supply chain Work packages Umbrella Agreement Collateral Warranties

14. Collaborative Management Plan

15. Disclaimer Important Information This communication and its contents have been provided to you for informational purposes only. This communication is not advice on or a recommendation of any kind with respect to the matters described herein, including without limitation, contracting structures, contracting instruments, contracting strategies, related legal and commercial issues or any combination of such matters. This communication does not offer advice. No information contained herein constitutes an offer or solicitation by or on behalf of Sellafield Ltd to enter into any contractual arrangement. Sellafield Ltd. makes no representations or warranties, express or implied, regarding the accuracy, adequacy, reasonableness or completeness of the information, assumptions or analysis contained herein or in any supplemental materials, and Sellafield Ltd. accepts no responsibility or liability in connection therewith. Opinions expressed in this presentation are subject to change without notice. 15