1. © 2012 Rolls-Royce plc The information in this document is the property of Rolls-Royce plc and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of Rolls-Royce plc. This information is given in good faith based upon the latest information available to Rolls-Royce plc, no warranty or representation is given concerning such information, which must not be taken as establishing any contractual or other commitment binding upon Rolls-Royce plc or any of its subsidiary or associated companies. The Nuclear Supply Chain Quality Assurance and Localisation ‘Trusted to Deliver Excellence’ Andy Storer – Programme Director

2. Rolls-Royce proprietary information Agenda Introduction to our approach to developing a world-class nuclear supply chain, focusing on the key enablers and ways to overcome the challenges Rolls-Royce Nuclear Global Organisation Key enablers to a quality supply chain Delivering a nuclear supply chain What we are doing in the UK Summary

3. Rolls-Royce proprietary information Rolls-Royce Nuclear 50 years Naval Nuclear Propulsion Plant Support 80 years Heavy Pressure Vessel Manufacturing 50 years I&C systems in 200 reference sites around the world Operate Licensed Sites New Facilities A global business with over 2600 employees

4. Rolls-Royce proprietary information What makes a Quality Supply Chain? An effective & trusted supply chain that delivers the customer requirements right first time, on time Key Enablers – working together…. Safe working environment Understanding of requirements Standardised integrated processes Sustainable capabilities Governance, compliance and process control Training, competency and nuclear safety culture Continuous improvement Advanced planning Investment in the supply chain “Accept nothing nearly right or good enough.” – Sir Henry Royce

5. Rolls-Royce proprietary information Delivering a Nuclear Supply Chain Using a nuclear experienced resource pool with the culture and skills to support Selecting suppliers that demonstrate the capability or an ability to develop Early contract planning for success Engage with customers, regulators and code authorities Introduction of customer, code and regulatory requirements to suppliers Understanding current status with robust plans to address the gaps Develop skills, capabilities and safety culture Application of safety related surveillance measures Effective flow down of customer requirements Manage consequence of non-conformance Knowledge management and sharing Continuous improvement activities Engage Develop Sustain and Improve Select

6. Quality Standards (Inter)national Legislation Company Policies Regulatory Requirements Customer Requirements Classification Societies Best Practice Lessons Learned Business Requirements HS&E Standards Rolls-Royce proprietary information Localisation of Quality Systems Requirements Governance Nuclear Management System Behaviour Leadership & Sponsorship Local culture & language Believe in the benefits Training & learning Good experience Communication Consequence Deliver customer satisfaction Integrated activity road map Demonstrable compliance Appropriate & scalable Relevant & up to date Ease of navigation Dynamic Process & output performance Management Review Audits & Reviews Baseline for Improvement

7. Rolls-Royce proprietary information Meeting the Challenge in the UK Design Engineering & Safety Case Design Engineering & Safety Case Civil/Site Construction Product Delivery Install & Commission (Mech & Elec) Current State Current State Future State Future State HMG Nuclear Supply Chain Action Plan Nuclear Readiness Steering Committee Quality Working Group Nuclear Energy Skills Alliance

8. Summary To establish a Nuclear Quality Supply Chain … l Takes time, effort and strong leadership l Engage early and plan for success l Use existing expertise to establish, develop and deliver the enablers l Knowledge sharing and learning from experience l Build and develop a strong compliance and nuclear safety culture l Remove jargon and barriers to market entry l Understand and communicate requirements and benefits to the supply chain l Fleet approach will support developing an in-country capability l The bigger the opportunity the more likely to get localisation Finally, consider… l What is important? What capabilities? How to retain the investment? Requirements Behaviour Governance

9. 9 Trusted to Deliver Excellence Thank you for your attention Andy Storer – Rolls-Royce Andrew.Storer2@Rolls-Royce.com