2013
ANNUAL REPORT
Annual Report of JSC Atomenergoprom for 2013
ATOMENERGOPROM
АТОМENERGOPROM
ANNUAL REPORT OF JSC ATOMENERGOPROM FOR 2013
4 BackgroundofJSCAtomenergoprom
4 ShareholdersofJSCAtomenergoprom
4 AuditorofJSCAtomenergoprom
4 RegistryholderofJSCAtomenergoprom
shares
5 Reportinformation
6 Keyresultsof2013
10 Keyeventsof2013
95 Annex 4.Summaryconsolidated
financialstatementspreparedon
thebasicofconsolidatedfinancial
statementsfortheyearended31
December2013andAuditors’report
108 Annex 5. Listoftransactionsmadeby
JSCAtomenergoprominthereporting
period,andrecognisedasmajor
transactions,towhichtheprocedure
forapprovalsofmajortransactions
applyasspecifiedintheArticlesof
Association
109 Annex 6.Listofinterestedparty
transactionsbyJSCAtomenergoprom
inthereportingyear
117 Abbreviations
119 Glossary
123 Feedbackform
125 Contactdetails
70 3.3.Managementofhumancapital
76 3.4.Managementofsocialand
reputationalcapital
84 3.5.Managementofnaturalcapital,
environmentalsafety,andprotection
oftheenvironment
86 Annex 1.Generalandspecific
GRI(G4)standarddisclosuresand
compliancewiththeRUIE’skey
performanceindicators(KPI)
88 Annex 2.AuditingCommission’sreport
ontheauditfindingswithrespecttothe
financialandbusinessactivitiesof
JSCAtomenergopromin2013
89 Annex 3. ObservanceoftheCorporate
ConductCodebyJSCAtomenergoprom
12 AddressfromtheChairpersonofthe
BoardofDirectors
13 AddressfromtheDirectorKomarovK.B.
Chapter1.
JSCAtomenergopromprofile
16 1.1.Companybackground
17 1.2.Managementofsustainable
development
18 1.3.Corporatemanagement
25 1.4.Riskmanagement
Chapter2.
Strategyandimplementationresults
in2013
32 2.1.Activitiesstrategy
33 2.2.Financialandeconomic
performance
37 2.3.Efficientnuclearelectricitysupplies
forRussianindustries
45 2.4.Strengtheningoftheglobalplayer
positionintheglobalmarketofnuclear
services
58 2.5.Nuclearandradiationsafety
Chapter3.
Efficiencyofcapitalmanagement
64 3.1.Managementoffinancialcapital
67 3.2.Managementofmanufactured
capital
TABLE OF CONTENTS
JSC ATOMENERGOPROM AnnualReport 2013- 2 3
The annual public report of Joint-Stock CompanyAtomenergoprom (JSC Atomenergoprom, referredto as “the Company”, in the Report) for 2013 is theCompany’sfirstintegratedreport.Thereportprovidesan integrated account of the Company’s strategy andJSCAtomenergoprom’smajorfinancial,economic,andproduction performance data for 2013, as well as itsperformanceinthefieldofnuclearandradiationsafety,the field of environmental protection, contributions tothesustainabledevelopmentofoperatingareas,socialpolicyimplementation,andotheraspectsofsustainabledevelopment.
JSC Atomenergoprom issues reports on a yearlybasis, and the previous annual report was publishedin2013.ThisReportdisclosestheperformancedataoftheCompanyand itsorganisations for theperiodof1January through 31 December 2013. It also disclosesselected information and performance data for theentireRussiannuclearindustry.
Standardsandregulatoryrequirements
The report has been prepared using the followingdocuments:
» The State Atomic Energy Corporation ROSATOM’spublicreportingpolicy;
» International IntegratedReportingStandardof theInternational Integrated Reporting Council (theInternationalIRFramework);
» The Guidelines on Sustainable Development bythe Global Reporting Initiative (GRI, version G4).See Annex 1 for the index of the StandardDisclosures;
» TheAA1000SeriesofStandardsof the InstituteofSocialandEthicalAccountability;
» FederalLaw“OnJoint-StockCompanies”No.208-FZ,dated26.12.1995;
» FFMSorder,entitled“OntheApprovaloftheBylawonthe InformationDisclosureby IssuersofEquitySecurities, No. 06-117/pz-n, dated 10.10.2006, asrevisedon04.10.2011;
» FSMC instruction, entitled “On RecommendationsfortheApplicationoftheCorporateConductCode”,No.421/r,dated04.04.2002;and
» FSMC instruction, entitled “On ProceduralRecommendationsfortheComponentsandFormsof the Delivery of Information on the CorporateConduct Code Observance in Annual Reportsof Joint-Stock Companies”, No. 03-849/r, dated30.04.2003.
Verificationofreportinginformation
The authenticity of the reported information hasbeen certified by JSC Atomenergoprom’s auditingcommissionandbyanindependentauditingorganisationthathascertifiedtheauthenticityoftheannualfinancialstatements.
Predictivedatapublicationdisclaimer
TheReportcontainsinformationontheCompany’smedium-andshort-termplansandinitiatives.Theplansareofapredictivenatureandthe feasibility thereforedependsonanumberofeconomic,political,and legalfactorsbeyondtheCompany’scontrol(globalfinancial,economic,andpoliticalsituations;keymarketsituations;changes to tax, customs, and environmental laws;and others). For this reason, the actual performancedatainthefutureyearsmaydifferfromthepredictivestatementspublishedherein.
REPORT INFORMATION
BackgroundofJSCAtomenergoprom» Primarystateregistrationnumber:1077758081664
» Stateregistrationdate:19 July 2007
» Registeringauthority:Moscow Inter-district Inspectorate No. 46 of the Federal Tax Service
» Location:24 Bolshaya Ordynka Str., Moscow
» Tel:(495) 969-29-39
» Fax:(495) 969-29-36
» Corporatewebsite:www.atomenergoprom.ru
ShareholdersofJSCAtomenergoprom» Asof31.12.2013,theregisteredshareholderofJSCAtomenergopromwas:The State Atomic Energy Corporation
ROSATOM
» Location:24 Bolshaya Ordynka Str., Moscow 119017, Russia
» Statusofregisteredperson:shareholder
» StakeintheCompany’sauthorisedcapital:100%
» Votingstockheldbyregisteredperson:100%
AuditorofJSCAtomenergoprom» Fullname:Financial and Accounting Consultants, Limited Liability Company
» Fulltitle:44/1 Myasnitskaya Str., Moscow 101990, Russia
» TIN:7701017140
» PSRN:1027700058286
» Tel:+7 (495) 737-53-53
» Fax:+7 (495) 737-53-47
» E-mail:[email protected]
AuditorofthesummaryconsolidatedfinancialstandingstatementandconsolidatedfinancialstandingstatementisJSCKPMG.
RegistryholderofJSCAtomenergopromshares» Theregisterof the registeredholdersofJSCAtomenergoprom iskeptbyJoint-Stock Company Registrator
R.O.S.T.
» Abbreviatedcompanyname:JSC Registrator R.O.S.T.
» Title:18-13, Stromynka Str., Moscow 107996, Russia
» TIN:7726030449
» PSRN:1027739216757
» Licence:10-000-1-00264
» Issuedate:03.12.2002
» Expirydate:Perpetual
» Licensingauthority:Federal Securities Market Commission (Federal Securities Market Service) of Russia
» Thedatefromwhichtheregistryholderkeepsregisteroftheissuer:28.10.2009.
JSCRegistratorR.O.S.T.alsokeepsregistersofmostofJSCAtomenergoprom’ssubsidiaries,whichenablesmorerapidandreliabletransactionsofsharesinthecourseofreformingtheholding’scorporatestructure.
JSC ATOMENERGOPROM Annual Report 2013- 4 5
636.7 550.5+155.0*
541.9+229.45*
96.3%2013/2012
2011
2012
2013
172.7 177.3 172.2
97.1%2013/2012
96 % 105 % 103 %
2011 2012 2013
9 9 9
100%2013/2012
2011
2012
2013
2011
2012
2013
81.2 % 80.9 % 77.9 %
2011
2012
2013
2011 2012 2013
7.1 7.6 8.3
109.2%2013/2012
2011 2012 2013
7,563 6,579 6,866
104.4%2013/2012
2011 2012 2013
50.9 66.5 72.7
2011 2012 2013
10 12 11
91.7%2013/2012
2011
2012
2013
389.4 394.8 436.1
IFRSREVENUES,BILLIONROUBLES
110.5%2013/2012
92.2%2013/2012
2011
2012
2013
60,9 26.8 24.7
*Thebottomline,markedwith+,presentsdataonthemineraland raw material base of Uranium One Inc. Due to the changeofthecalculationtechniquein2012,thedataisgivenseparatelyfortheRussianassetsandthemineralandrawmaterialbaseofUraniumOneInc.The2013dataisgivenonlyforRussianassets.
JSC ATOMENERGOPROM AnnualReport 2013- 6 7
1Inthistableandhereinafter,the2012dataistakenasthereferencelevelforcalculatingtheindicatorsinthe‘2013/2012,%’column.
CAPACITYFACTORSOFNPPS,% URANIUMRESOURCESBASE(RUSSIANASSETS),THOUSANDTONNES
POWERGENERATIONBYNPPS,BILLIONKWH
NUMBEROFNPPUNITSUNDERCONSTRUCTIONINRUSSIA
KEY RESULTS OF 20131
URANIUMPRODUCTION,THOUSANDTONNES
PORTFOLIOOFFOREIGNCONTRACTSOVER10YEARS,BILLIONUSD
NETPROFIT,BILLIONROUBLES
NUMBEROFFABRICATEDFAsJSCCONCERNROSENERGOATOM’SINVESTMENTPROGRAMMEPERFORMANCEINDEX
NUMBEROFNPPUNITSUNDERCONSTRUCTIONOVERSEAS
109,3%2013/2012
163.2 118.3 150.4
127.1%2013/2012
2011 2012 2013
2011 2012 2013 2011 2012 2013
1,226.0 49.971,280.9 54.981,347.0 61.76
151.6%2013/2012
123.3%2013/2012
33.4 42.4 37.4
2011
2012
2013
88.2%2013/2012
EVENTSTHATQUALIFIEDLEVEL-2ANDABOVEONTHEINESSCALE
20.3%2013
2011
2012
2013
*Mining,Fuel,MachineEngineering,andPowerEngineeringDivisions.
0 0 0
JSC ATOMENERGOPROM AnnualReport 2013- 8 9
EBITDA*,BILLIONROUBLES
AVERAGEWAGEOFJSCATOMENERGOPROM’SPERSONNEL,
THOUSANDRUB/MONTH
INTANGIBLEASSETS,BILLIONROUBLES
AVERAGEDECREASEINENERGYCONSUMPTIONCOSTWITHINDIVISIONS*
*ThefollowingformulawasusedtocalculatetheEBITDAindicator:Revenues–Operatingcosts–Administrativecosts–Commercialcosts+Depreciation.
NETASSETS(IFRS),BILLIONROUBLES
РОСАТОМ Публичныйгодовойотчет2013
2013
KEY EVENTS OF 2013
FEBRUARY
» A memorandum of cooperation in the field ofnuclearmedicineandtheproductionofradioactivemedicalpreparationswassignedwiththeNuclearEnergy and Advanced Technology Agency of theRepublicofCuba’sMinistryofScience,Technology,andEnvironment.
JUNE
» AnagreementofcooperationinthepeacefuluseofatomicenergywassignedwiththeAtomicEnergyAuthority of the Democratic Socialist Republic ofSriLanka.
» AmemorandumofcooperationwassignedwiththeUSDepartmentofEnergyandtheAtomicEnergyCommissionofFrancefortheestablishmentoftheInternationalResearchCentrebasedontheMBIR
multipurposefast-neutronresearchreactor.» TheIAEAMinisterialConferenceonNuclearPower
in the 21st Century and the International ForumATOMEXPO-2013 were held in St. Petersburg,Russia.
JULY» Themusical“We”premieredinKeszthely,Hungary
aspartoftheNucKids-2013project.
AUGUST
» Start of an engineering survey at the site ofSmolensk NPP II as part of the investmentfeasibilitystudyphase.
» Moody’s Investors Service, an international
rating agency, assigned JSC Atomenergoprom aBaa2long-terminternationalscalerating(stableoutlook)andanAaa.runationalscalerating.
» Fitch Ratings, an international rating agency,assignedJSCAtomenergopromaBBBlong-terminternationalscalerating(stableoutlook).
SEPTEMBER
» JSCUraniumEnrichmentCentre(UEC),aRussian-Kazakh joint venture, completed the transactionofpurchasinga25%stake+1shareinJSCUECC(an organisation within the Fuel Division ofJSCAtomenergoprom)
» AnagreementbetweenthegovernmentsofRussiaandtheUSAoncooperationinnuclearenergyandR&Dwassigned.
» A memorandum on economic cooperation in thepeaceful use of atomic energy was signed withtheDepartmentofenergyandClimateChangeofGreatBritain.
» Powerstart-upofKudankulamNPP’sUnit1intheRepublicofIndia.
OCTOBER
» The 3rd overseas Atomic Energy InformationCentrewasopenedinDhaka,Bangladesh.
» First concretingatUnit1ofTianwanNPP in theChinesePeople’sRepublic.
» Along-termcontractwassignedbyJSCTVELwiththe People’s Republic of China for the supply ofnuclearfuelforUnits3and4ofTianwanNPPandaccessoriesfortheNPP’sPhase2.
» A technical contract was signed between theRussianFederationandtheRepublicofBangladeshfortheconstructionofRuppurNPP
» The100%stakeinUraniumOneInc.wasconsolidatedby JSC Atomredmetzoloto (an organisation withintheMiningDivisionofJSCAtomenergoprom).
» Standard&Poor’s,aninternationalratingagency,confirmed JSC Atomenergoprom’s BBB/A-2long-term and short-term credit ratings (stableoutlook), as well as the company’s ruAAAnational scale rating at the maximum possiblesovereign level. Simultaneously, the BBB/ruAAAcredit ratings were confirmed with respect toJSC Atomenergoprom’s circulating bonds, seriesNo.6,ofthenominalvalueof10billionroubles.
NOVEMBER
» Reopening the operations on the LeningradNPP’sUnit1after therestoring theRBMK-1000reactor’sservicelifecharacteristics.
» Winning a tender for the NPP construction inJordan.
DECEMBER
» A memorandum of cooperation in the field ofradioactive preparations was signed with theAtomicEnergyCommissionof theStateof Israelas part of the meeting of co-chairpersons ofthe Russian-Israeli Joint Trade and EconomicCooperationCommission
» The BN-800 reactor at Beloyarsk NPP waspreparedforfirstcriticality.
» A package of agreements on the constructionof Hanhikivi NPP in Finland was signed with theFinnishcompanyFennovoima.
» Standard&Poor’s,aninternationalratingagency,confirmed the BBB-/A-3 long-term and short-termcreditratingsandtheruAAAnationalscalerating(stableoutlook)forJSCTENEX-Service(anorganisationwithinJSCAtomenergoprom).
- 10 11 JSC ATOMENERGOPROM AnnualReport 2013
ADDRESS FROM THE CHAIRPERSON
OF THE BOARD OF DIRECTORS
ADDRESS FROM THE DIRECTOR
DearColleagues,JSC Atomenergoprom is an integrated company
thatconsolidatescivilianassetsoftheRussiannuclearindustry. The Company incorporates many leadingnuclear organisations and enterprises, combiningthose assets with its more than 70-year history andunique experience across the spectrum of nuclearfuel cycle and NPP construction technologies. Thisimmense base of experience forms the foundationfor the company’s leadership in the world market ofnucleartechnologies.
This annual report discloses the financialperformanceandproductiondataofJSCAtomenergo-promanditsorganisations,aswellastheirrespectivecontributions to the national economy and the
sustainable development of Russia and its regionsin2013.Theperformanceachieved(uraniumoutput,electricity generation, implementation of JSCConcern Rosenergoatom’s investment programme)has exceeded the target figures. The Company’skey financial performance indicators also showedsustained growth. In the reporting period, themanagement of JSC Atomenergoprom and itsorganisationsachievedallkeyefficiencyindicators.
In terms of nuclear installed capacity,JSC Atomenergoprom is the world’s second largestnuclear generating company after EDF, France.The nuclear electricity generation in 2013 in Russiaamounted to 172.2 billion kWh. In 2013, Russiannuclearpowerplantsaccountedfor16.8%ofthetotalelectricitygeneratedinRussia.
The most important project in 2013 was thecreationofatechnologyforrecoveringtheservicelifecharacteristics of the RBMK-1000 reactor graphitestack. The repair activities were successfullycompletedatUnit1ofLeningradNPPand,presently,thetechnologyisbeingreplicatedinrepairoperationsat other RBMK-type units at Kursk and SmolenskNPPs. This technology is unique so that it makes itpossible to extend the life of the RBMK uranium-graphite reactors until the replacement capacity isput into operation, which is of special importancebecausetheRBMKreactorsaccountforabouthalfofthenuclearpowergenerateddomestically.
The Company’s 2013 performance allows us tolooktowardsthefuturewithconfidenceandformulatefurtherchallengingtasksaspartofourstrategicgoal–globaltechnologicalleadershipintheinternationalmarketsofnucleartechnologiesandservices.
BoardofDirectors,Chairperson
JSCAtomenergoprom
E. V. LYAKHOVA
Dearcolleaguesandpartners,TheCompany’sperformancewasveryimpressive
last year. The portfolio of foreign contracts over 10yearsgrew fromUS$66,5billion toUS$72,7billion.Therewasalsomajorgrowthintheuraniumproductionvolume,ascomparedto2012,from7.6to8.3thousandtonnes.In2013,wecarriedoutconstructionactivitiesfor9NPPunits inRussiaand11moreunits inothercountries.
There were also a number of notable events inthereportingyear.Unit1ofKudankulamNNPinIndiasawapowerstart-up,whileresearchactivitiesfortheconstructionofSmolenskNPPIIbeganinRussia.TheBN-800 fast-neutron reactor was prepared for firstcriticality at Beloyarsk NPP, which is an important
eventfortheindustry,asweregardtheso-calledfast-neutron technology as the future of nuclear power.Fast-neutronreactorsallowforpracticallyallnaturaluranium to be engaged in the nuclear fuel cycle,making it possible to resolve the fuel problem forcenturiestocome.Asaresult,efficiencyisincreased,natural resources are saved, and the quantities ofradioactivewastearedecreaseddozensoftimes.
The20-year-longRussian-UScooperationundertheHEU-LEUprogrammeendedinthereportingyear.As part of the programme, the Company acquiredvaluable experience concerning operations in theUSmarketandproveditselftobearesponsibleandreliablesupplierunderthecontractsmade.
In2013,theassetsintheuraniumminingsegmentwere restructured: Uranium One Holding N.V. wasformed to concentrate the overseas nuclear fuelcycle front-end assets; JSC Atomredmetzoloto willfocusfurtheronthedevelopmentofuraniumassetsinRussia.
Regardingfinancialperformanceinthereportingyear, it is worth emphasizing that the Company’sreturns grew by more than 10%, as compared to2012, to reach 436.1 billion roubles. The Company’snetprofitamountedto24.7billionroubles.
ThemostimportantdemonstrationofJSCAtom-energoprom’ssolvencyand financialstability is thatin 2013 the Company was assigned credit ratingsfromtwointernationalratingagencies:FitchRatings(at theBBBmaximumpossiblesovereign level)andMoody’s Investors Service (at the Ваа2 level). Alsoin 2013, Standard & Poor’s, a global rating agency,confirmedtheCompany’slong-termandshort-terminternationalscalecreditratingsattheВВВ/А-2level.
I would like to express my gratitude to allthe employees of JSC Atomenergoprom and itsorganisations, as well as to our business partners,thanks to whom the Company’s impressiveperformance could be achieved. I am sure that thecomingyearwillbenolesssuccessful!
Director,
JSCAtomenergoprom
K.B.KOMAROV
JSC ATOMENERGOPROM Annual Report 2013- 12 13
JSC ATOMENERGOPROM PROFILE
1 16 1.1. COMPANY BACKGROUND
17 1.2. MANAGEMENT OF SUSTAINABLE DEVELOPMENT
18 1.3. CORPORATE MANAGEMENT
25 1.4. RISK MANAGEMENT
1.1. Companybackground1.1.1.Activities
JSC Atomenergoprom (named as “the Company”hereinafter)isanintegratedcompanythatconsolidatescivilianassetsoftheRussiannuclearindustry.
The organisations of JSC Atomenergopromencompass the entire cycle of nuclear production
activities, from uranium mining to construction ofNPPsandelectricitygeneration,withpriorityplacedontheimprovementofproductionquality,theintroductionof innovative technologies, and environmentalmanagement.
JSCAtomenergopromisoneofthelargestnucleargenerationcompanies inRussiaandisa leader intheglobalmarketofnuclearservicesandtechnologies.TheCompanyisinapositiontoensureturnkeyNPPdesignand construction, to provide NPPs with a lifetime offuel supplies, and to carry out upgrading, after-salesservicing, and personnel training. The Company hasintegratedmanyleadingorganisationsandenterprisesin thenuclear industryover itsapproximately70-yearhistory of operations, and boasts a unique range ofexperience across the spectrum of nuclear fuel cycleandNPPconstructiontechnologies.
JSCAtomenergopromisapartoftheStateAtomicEnergy Corporation ROSATOM (named as “RosatomStateCorporation”or“Rosatom”hereinafter).RosatomState Corporation is responsible for pursuing thegovernmental policies related to nuclear power andensuringtheunityofmanagementinthefieldofnuclearpower, as well as for the sustained operation of thenuclear power generation complex, the evolution oftheRussiannuclearindustry’sinnovativepotential,theactivities of the nuclear icebreaker fleet, and nuclearand radiation safety. Rosatom is also assigned thetask of enforcing Russia’s international commitmentsinthepeacefuluseofatomicenergyandnuclearnon-proliferation. The activities of Rosatom are aimed atcontributing to the implementation of federal target
programmes, establishing new conditions for thenuclearindustry’sevolution,andstrengtheningRussia’scompetitiveadvantage in theworldmarketofnucleartechnologies.
ThereisnolinkbetweenmilitaryactivitiesandthecivilianoperationsofRosatom, including thebusinessoperations of JSC Atomenergoprom. Therefore, theactivitiesofJSCAtomenergoprom,asacompany thatconsolidatesthecivilianassetsoftheRussiannuclearindustry,havenothingtodowithmilitaryoperations.
1.1.2.Formationanddevelopmentalhistoryof
JSCAtomenergoprom
JSC Atomenergoprom was formed in July 2007as part of the Russian Federation Nuclear IndustryDevelopment Programme approved by RussianPresident V. V. Putin on 8 June 2006 pursuant toFederal Law No. 13-FZ, dated 5 February 2013, “OnPeculiarities of the Management and Disposal of thePropertyandSharesHeldbytheOrganisationsCarryingOut Activities in the Field of Nuclear Power and OnMakingAmendmentstoSelectedLawsoftheRussianFederation”, by Russian Presidential Decree No. 556,dated27.04.2007,“OnRestructuringtheNuclearPowerGeneration Complex of the Russian Federation”, andby the Russian Government Resolution No. 319, dated26.05.2007,“OnMeasurestoFormJoint-StockCompany‘NuclearPowerGenerationComplex’”.
According to respective regulations and lawsconcerning the formation of JSC Atomenergoprom,it was determined that the Company would integrate89 enterprises with operations in all nuclear industryand nuclear fuel cycle segments, as well as threefederal-level educational establishments. The stakesin 31 federally owned companies served as thegovernment’s contributions to the authorised capitalof JSC Atomenergoprom at the time of its formation(includingthesharesinsuchcompaniesasJSCTVEL,JSC Techsnabexport, JSC Atomredmetzoloto, andothers). The rest of the companies had the status offederalstateunitaryenterprises (FSUE)andrequiredtransformation into joint-stock companies for theirintegration into thenuclearholding.Within theperiodof 2008–2011, 55 FSUEs were transformed into joint-stockcompaniesandjoinedJSCAtomenergoprom.ThiscompletedtheCompany’sauthorisedcapitalformationprocedure.
In 2011, the measures taken made it possiblefor JSC Atomenergoprom to begin forming a newstructureofcompaniesinthecivilianpartofthenuclearindustry, as well as to pursue a uniform policy in thefields of finance, corporate management, personnelmanagement,andthemanagementofmarginalassets.
As of 31.12.2013, JSC Atomenergoprom’s groupof companies had incorporated 111 companies withdifferentorganisationalandlegalstatuses.
RosatomStateCorporationisthesoleshareholderofJSCAtomenergoprom.
1.2.Managementofsustainabledevelopment
The approach to the sustained development ofJSC Atomenergoprom is based on the traditionalconcept of sustained development adopted withinthe international community and relies on a numberof guidelines that are specific to nuclear sectoractivities (e.g. ensuring nuclear and radiation safety).Intandemwiththetasksinvolvedinitsownsustaineddevelopment,JSCAtomenergopromaimstoaccomplishcertain goals related to tackling current problems ofglobal significance, such as environmental pollution,globalwarming, international terrorism, thedepletionofnaturalresources,theanticipatedshortageofenergyresources,andothers.
JSCAtomenergoprompaysagreatdealofattentionto minimising its impacts on the environment andpreserving the natural ecosystems. Numerousactivitiesarecarriedouttointroducetechnologiesthatenable consistent reductions in harmful emissions/releases and waste formation. Nuclear plants do notreleasegreenhousegasesintheprocessofelectricitygeneration.
That being said, the absolute top priority inJSCAtomenergoprom’sactivitieshasbeenthesafeandreliable operation of nuclear installations. The designand construction of NPPs relies on integrated effortsaimedatensuringsafety,studyingnaturalandhuman-induced hazards, and performing probabilistic safetyanalyses.Asrequiredbylaw,theconstructionphaseismandatorilyprecededbyassessmentsofenvironmentalimpactsfromnuclearinstallations.
The objective of JSC Atomenergoprom’s strategyimplementation is global technological leadership inthe field of nuclear power. The Company’s strategicgoals consist of maintaining and strengthening theirleadership position, thanks to the development ofinnovative technologies,andabroaderrepresentationin the key nuclear and adjacent markets. To a greatextent,thisleadershippositionisstrengthenedthrough
Mining and production of enriched uranium
Geological prospecting
Exploreddeposits
Uranium
Gas centrifuges
GC carbon fibre
Equipment NPP
UF6
EnrichedUF6
Uranium dioxide UO2
Uranium dioxide UO2
Electricity and heat
Mining Conversion Enrichment Deconversion Fuelfabrication
Energygeneration
JSC Atomredmetzoloto(Russian uranium assets) JSC Techsnabexport
Production of gas centrifuge
JSC GNTs NIIAR, JSC VNIIKhT, JSC GIREMET, and others
SCIENCE/INNOVATIONS
JSC EC RGS
JSC KhPI
JSC TVELJSC OK RSK
JSC Concern Rosenergoatom
Machineengineering
JSC Atomenergo-mash
JSC TsKBMJSC OKBM Afrikantov
United Company JSC NIAEP - JSC ASE
JSC Head Institute VNIPIET
JSC Atomenergoproekt
NPPdesign
NPPconstruction
Uranium One(overseas uranium assets)
Fabrication of fuel Electricity and heat generation
NUCLEARINDUSTRYPRODUCTIONCHAIN
JSCATOMENERGOPROMTODAY:
» theholderoftheworld’sbiggestportfolioof foreign NPP construction projects (19units);
» the world’s second largest installedcapacity holder and nuclear electricitygenerator;
» the world’s second largest holder ofuranium reserves and the world’s thirdlargesturaniumminingcompany(thejointshareofAtomredmetzolotoandUraniumOne);
» holds a 40% share in the market ofuraniumenrichmentservicesforforeign-designedreactors;and
» holds a 17% share in the nuclear fuelmarket.
JSC ATOMENERGOPROM
PROFILE
JSC ATOMENERGOPROM Annual Report 2013- 16 17
evolution inRussiaandworldwide inorder toachievelong-termandsteady improvement in thestandardoflivingfortheRussianpeople.Tothisend,theCompany,throughenlightenment,awareness,andcommunicationprojects,carriesoutvariousactivitiestoensurethattheessenceofJSCAtomenergoprom’sgoalsisunderstoodbyallthepartiesconcerned.
1.3.CorporatemanagementThe major corporate management goal of
JSCAtomenergopromin2013wasthehigh-qualityandtimely implementation of corporate procedures thatwerefullyinaccordancewithRussianlaw.
1.3.1.Managementbodies
Management bodies of JSC Atomenergoprom
K.B. Komarov was appointed as the Director ofJSC Atomenergoprom on 14.04.2010 (minutes of themeetingofJSCAtomenergoprom’sBoardofDirectorsNo.27,dated13April2010).
activitiesinthefieldofsafetyandvalueimprovement,environmental protection, and the development ofdesignsforadjacentindustries.
The key investment project of Rosatom StateCorporation and JSC Atomenergoprom is thedevelopment and commercialisation of a newtechnology platform. An innovative project namedProryv (Breakthrough) is being implemented in thenuclearindustry,whichisintendedtoestablishanuclearpower complex comprised of NPPs with fast-neutronreactors, nuclear fuel regeneration (processing) andre-fabrication facilities, and the ability to prepare allRW types for final elimination from the technologicalcycle for the purposes of environmental safety andvalue improvement in the nuclear industry. Anotherpromising field of activity is the creation of a fusionreactor, which is expected to provide mankind, withinthe next few decades, with a practically inexhaustiblesourceofenergyforcontinuedglobaldevelopment.
JSC Atomenergoprom contributes a great dealto the creation and fair division of economic value inRussia,supportsdomesticmanufacturersandserviceproviders,createsnewjobsinthenuclearindustry,andpromotes the creation of jobs in adjacent industries.The Company’s designs contribute significantly to themodernisationoftheRussianeconomy.
An important aspect of JSC Atomenergoprom’sactivities is ensuring the public’s acceptance of thenuclearindustry.TheCompany’sleadersseektosecurea public consensus on problems of nuclear power
Dateofbirth:29.12.1973
Placeofbirth:Leningrad
Education:Higher
Graduatedfrom:
LawLyceumunderUralStateLawAcademyin1992(awardedagoldmedal)andtheFacultyofJudicatureandProcuracyatUralStateLawAcademyin1997(honoursdegree).CandidateofScience(Law).
Positionsinrecentyears:
» 2000–2005:LegalandProjectManagementDirector(JSCRENOVA),FirstDeputyDirectorGeneral(JSCRENOVA),andDirectorGeneral(JSCRENOVA-Razvitiye);
» 2005–2006:DeputyHead(FederalAgencyforWaterResourcesofRussianFederation);
» 2006–2007:VicePresident(JSCTVEL);
» 2007:DirectorGeneral(JSCAtomenergomash);
» 2007–2010:DeputyDirector(JSCAtomenergoprom)andExecutiveDirector(JSCAtomenergoprom);and
» 2010–Present:ExecutiveDirector (NuclearPowerComplexDirectorate,RosatomStateCorporation),DeputyDirectorGeneral(DevelopmentandInternationalBusinessUnit,RosatomStateCorporation),andDirectorofJSCAtomenergopromonapluralitybasis.
DoesnotholdanyCompany’sshares.
BOARD OF DIRECTORS OF JSC ATOMENERGOPROM
MEMBERSOFTHEBOARDOFDIRECTORSOFJSCATOMENERGOPROMINTHEPERIODFROM01.01.2013TO31.12.2013(ELECTEDON29.06.2012ANDRE-ELECTEDON28.06.2013):
» Komarov, Kirill Borisovich;
» Lyakhova, Ekaterina Viktorovna (Chairman of the Board of Directors);
» Popov, Andrey Vladimirovich;
» Rebrov, Ilya Vasiliyevich; and
» Shpagin, Igor Georgiyevich.
MEMBERSOFTHEBOARDOFDIRECTORSOFJSCATOMENERGOPROMINTHEPERIODFROM06.06.2012TO31.12.2012(ELECTEDON06.06.2012ANDRE-ELECTEDON29.06.2012):
» Komarov, Kirill Borisovich;
» Lyakhova, Ekaterina Viktorovna (Chairman of the Board of Directors);
» Popov, Andrey Vladimirovich;
» Rebrov, Ilya Vasiliyevich; and
» Shpagin, Igor Georgiyevich.
KOMAROV, KIRILL
BORISOVICH
JSC ATOMENERGOPROM Annual Report 2013- 18 19
LYAKHOVA, EKATERINA
VIKTOROVNA
POPOV, ANDREY
VLADIMIROVICH
Dateofbirth:07.06.1975
Placeofbirth:Yekaterinburg
Education:Higher
Graduatedfrom:
UralStateLawAcademy,EMBAUniversitetAntverpenManagementSchool
Positionsinrecentyears:
» 2008–2010:DirectorGeneral(JSCKoltsovo-Invest);
» 2010–2011:VicePresident(JSCTVEL);and
» 2011–Present:DeputyDirector(JSCAtomenergoprom)andInvestmentManagementandOperationalEfficiencyDirector(RosatomStateCorporation),ChairmanoftheBoardofDirectorsatJSCAtomenergopromonapluralitybasis.
DoesnotholdanyCompany’sshares.
Dateofbirth:03.03.1971
Placeofbirth:Leningrad
Education:Higher
Graduatedfrom:
St.PetersburgStateUniversity
Positionsinrecentyears:
» 2003–2009:HeadoftheLegalDepartment(JSCMCCEuroChim);
» 2009–2011:Director(DepartmentforLegalIssuesandCorporateGovernance,RosatomStateCorporation);and
» 2011–Present: Director for Legal Issues, Corporate Governance, and Property Management / Director(DepartmentforLegalIssuesandCorporateGovernance,RosatomStateCorporation).
DoesnotholdanyCompany’sshares.
JSC ATOMENERGOPROM Annual Report 2013- 20 21
REBROV, ILYA
VASILIYEVICH
SHPAGIN, IGOR
GEORGIYEVICH
Dateofbirth:10.10.1976
Placeofbirth:Leningrad
Education:Higher
Graduatedfrom:
St.PetersburgStateTechnicalUniversity
Positionsinrecentyears:
» 2008–2009:DeputyDirectorforEconomicsandControlling(JSCSCEC);
» 2009–2011:Director(DepartmentforEconomicsandInvestments,RosatomStateCorporation);
» 2010–2011:Director(DepartmentforEconomicsandFinancialControlling,RosatomStateCorporation);and
» 2011–Present:DirectorforEconomicsandFinance(RosatomStateCorporation).
DoesnotholdanyCompany’sshares.
Dateofbirth:14.02.1971
Placeofbirth:Vologda
Education:Higher
Graduatedfrom:
UralStateLawAcademy
Positionsinrecentyears:
» 2007–2010:DeputyDirector(DepartmentforCorporateRelations,RosatomStateCorporation);
» 2010–2014: Deputy Director (Department for Legal Issues and Corporate Governance, Rosatom StateCorporation);and
» 2014–Present:Adviser to thestaffof theDeputyDirectorGeneral forManagementofNuclearProjects (JSCRusatomOverseas).
DoesnotholdanyCompany’sshares.
JSC ATOMENERGOPROM Annual Report 2013- 22 23
1.3.2.BoardofDirectors’2013performance
statement
In2013,54meetingsoftheBoardofDirectorswereheldbywayofcorrespondencevoting.
ResolutionsonthekeyaspectsofJSCAtomenergo-prom’sactivitieswereadoptedattheBoardofDirectors’meetings,includingresolutionson:
» holding,induemanner,themeetingoftheBoardofDirectors preceding the annual general meeting ofJSCAtomenergoprom’sshareholders;
» approving the budget of JSC Atomenergoprom for2013;and
» carrying out a number of resolutions to optimisethe structure of JSC Atomenergoprom’s group ofcompanies,includingresolutionsconcerning:- addingthesharesinJSCSSMULenatomenergo-
stroy, JSC SPb NIII EIZ, JSC Sibirskiy Orgstroy-proekt, and JSC VNIPIET to the authorised
capital of JSC Atomenergoprom, in exchangefor the additionally issued shares ofJSCAtomenergoproekt;
- a 100% stake in the authorised capital ofKWINDERHOLDINGSLIMITEDtobeacquiredbyJSCAtomenergoprom;
- adding the shares in JSC Atomtekhenergo,JSC Atomtrans, JSC PVO ZAES, and JSC NITsAES to the authorised capital of JSC ConcernRosenergoatom, in exchange for additionallyissuedsharesinJSCConcernRosenergoatom;
- decidingontheterminationofparticipationintheauthorisedcapitalofJSCEFKONbywayofholdingapublicauction;
- terminatingtheparticipationofJSCAtomenergo-promintheauthorisedcapitalofJSCINTERRAOEESthroughthesaleofitsstakeinthiscompanytoROSNEFTEGAZ;and
- decidingonforming(founding)ajoint-stockcompany,Rusatom–InternationalNetwork,witha100%stakeinthistobeheldbyJSCAtomenergoprom.
1.3.3.Paymentofdeclared(accrued)dividends
ontheCompany’sshares
Subsequenttotheresultofthe2012financialyear,JSCAtomenergopromhaspaidatotalof15.441.804.000roubles of dividends, as resolved by Rosatom StateCorporationasthesoleshareholder(ResolutionNo.1,dated28.06.2013).
The declared dividends were paid within the fixeddatesandinfull.
1.3.4.Auditingcommission
ofJSCAtomenergoprom
The auditing commission of JSCAtomenergoprom isin charge of supervising the Company’s financial andbusinessactivities.
Auditing commission member Position
Kurbatov,G.A. DeputyChiefAccountant,RosatomStateCorporation(asofthetimeofelection)
Blazhnova,T.V. HeadoftheConsolidatedBookkeepingDepartment,AccountingOffice,RosatomStateCorporation(asofthetimeofelection)
Zhukova,Z.A. ChiefExpert,InternalAuditDepartment,InternalAuditOffice,RosatomStateCorporation(asofthetimeofelection)
Theauditingcommission’sfindingsareprovidedinAnnex 2.
MEMBERSOFTHEAUDITINGCOMMISSIONOFROSATOMSTATECORPORATION(ASAPPROVEDON28.06.2013)
No remunerationwas paid to the members of theBoardofDirectorsinthereportingperiod.The Director of JSC Atomenergoprom receivedremunerationbasedonthecontractofemployment,and inaccordancewiththeUnifiedBranchLabourPayment Scheme established by Rosatom StateCorporation for its joint-stock companies and forsubsidiariesofJSCAtomenergoprom.
DETERMINATIONCRITERIAANDAMOUNTOFREMUNERATION(REIMBURSEMENTOFCHARGES)
FORTHEMEMBERSOFTHEBOARDOFDIRECTORS
1.4.Riskmanagement1.4.1.Corporateriskmanagementsystem
Theprocessofformingthecorporateriskmanagementsystem(CRMS)withinRosatomStateCorporationandJSCAtomenergopromwasstartedin2010.ThemajorlinesoftheCRMSevolution,asdefinedbytheRiskManagementPolicy,are:
» developmentoftheCRMSorganisationalstructure;» integrationwithbusinessprocesses;» developmentoftheCRMSmethodology;and» developmentoftheexpertiseandcompetenciesofthoseinvolvedintheCRMSoperation.
Integration with business processes
INTEGRATIONOFTHECRMSWITHPLANNINGPROCESSES
Director General
Risk committee
Risk management department/Risk officers of divisions
Risk owners at Corporation and
division level
Strategic level Ensuring risk management’s compliance with the Corporation’s corporate strategy
Tactical level Organisation of efficient operation of CRMS in accordance with the strategy and the Corporation’s established preparedness for risks
Operational level
Organisational and procedural support for the CRMS processes and management arrangements
Inte
rnal
con
trol
an
d au
dit
dire
ctor
ate
(Ind
epen
dent
ass
essm
ent
of C
RM
S o
pera
tion
)
Uranium One Holding N.V.
JSC Techsnabexport
JSC Concern Rosenergoatom
JSC TVEL
JSC Atomenergomash
UC JSC NIAEP – JSC ASE
JSC Atomredmetzoloto
Corporation’s organisations where the organisational structure has been formed and corporate risk management processes are in effectCorporation’s organisations where it is planned to form the organisational structures and introduce corporate risk management processes
JSC Rusatom Overseas
Risk management processes Link to decision-making
Strategic planning
Mid-term planning
Budget planning
KPI establishment and evaluation
Management of major investment projects
Preparednessfor risks
Riskreport
Riskidentification
Riskmanagement
measures
Riskassessment
Goals of CRMS integration with business processes
» Regularidentificationandre-assessmentofriskwhenformingplans
» Establishmentofallowabledeviationsfromgoalsatdifferentplanninghorizons
» Timelyformationofriskmanagementplanswithdistinctdistributionsofresponsibility
» Regularmonitoringofriskeffects(observanceofpreparednessboundaries)andindicatorsthatcharacteriserisksforimplementingcompensatingmeasures
ORGANISATIONALMODELOFTHECORPORATERISKMANAGEMENTSYSTEM
JSC ATOMENERGOPROM Annual Report 2013- 24 25
Evolution of the CRMS methodology
For the purpose of further developing themethodological frameworkof theCRMS, the followingwasintroducedin2013:
» uniform requirements (guidelines) for analysingthe risks that affect the attainment of financialand business targets and that are planned inthe “Budgeting”, “Mid-term Planning”, and“Strategic Management” processes, includingthe identification and assessment of risks,identificationofriskmanagementmeasures,andthedeterminationofthelevelofpreparednessforfacing risks, streamlining monitoring activities,reviewing the risks of investment projects, andevaluating the effects of risks on the projecttargets (completion dates, project budgeting,andIRR);
» criteriaforsettingthelimitsonnon-residentbankstoreducethecreditrisksforJSCAtomenergoprom’sorganisations engaged in overseas businessactivities;and
» requirements to assess the buyer and customercredit risk under contracts for the supply ofproducts and services that suggest a paymentdelay, as well as the application of credit riskmanagement measures depending on the riskassessmentlevel.
Development of the expertise and competencies of those involved in the CRMS operation
To improve the awareness of and to enable theexchange of expertise and the development of thecompetenciesofthoseinvolvedintheCRMSoperation,asfarasriskmanagementactivitiesareconcerned,theCRMSregulatorydocuments,aswellasinformationonthe best practices adopted and the risk managementresearchresults,aremadeavailableonthecorporatewebsite.WorkshopsareregularlyheldfortheCompany’spersonnel and organisations concerning the CRMSoperationalaspects, themanagementofselectedrisktypes,andthequalitativeriskassessmenttechniques.
1.4.2.Managementofkeyrisks
Outlinedbeloware themajorresultsobtained fromthemanagementofthemostsignificantkeyrisksin2013.
Management risks and results in 2013
Theapprovedparametersofpreparednessforriskswere observed in 2013 both in terms of quantitative(financial) indicatorsand in termsofparameterswithzero preparedness for failing to observe these, suchasensuringnuclearandradiationsafety,aswellastheattainmentofstate-definedtargets.
DYNAMICSOFRISKSCOMPARED2012
(Dynamicsofrisks:
increase,
decrease,
nomajorchanges)
Risks and risk dynamics Risk management results
Financial risks
Currency risk TheCurrencyRiskManagementStrategyandtheCurrencyRiskHedgingProgrammehavebeenapproved.The Hedging Programme implementation has made it possible to minimise the risk of loss caused byunfavourableexchangeratefluctuations.
Interest risk
Againstthebackgroundofinterestrategrowthinthereportingyear,riskreductionhasbeentheresultofthefixed-ratefive-yearloanrising,withasubsequentincreaseintheaverageloanportfolioterm.Astheresult,theduedatesfortheintereststobereceivedandtheintereststobepaidhavelevelledoff.
Credit risk
Therisk increasehasbeentheresultofagrowth inthefrequencyof licencerevocationsfromproblembanksbytheCentralBank,thefailuretofulfiltheobligationstowardsJSCConcernRosenergoatomintheelectricityandpowermarket(failurestopayfortheelectricityconsumed),andageneraldecreaseintheRussianeconomygrowthrate.Tomanagetheriskstominimisethese:
» limitationofagentbanks;» guaranteesandlimitationofadvancepaymentstoexternalcounteragents;» regularmonitoringofthestatusofthedebtsreceivablebytheindustry’senterprises(includingthe
functioningofcommitteesthathandlethedebtreceivable);» credit risks assessment under contracts for the supply of products and services with delayed
payment;» creditriskmanagement(measuresdependonitsassessmentlevel)
Liquidity risk
This risk reduction has been caused by the fact that in the reporting year, JSCAtomenergoprom wasassignedaMoody’sInvestorsServiceratingofВаа2(outlookstable)andanational-scaleratingofAаа.ru.Also in 2013, JSCAtomenergoprom was assigned a long-term credit rating at the maximum possiblesovereignlevelofВВВfromFitchRatings,aninternationalratingagency,andanationallong-termratingofAAA(rus)(outlookstable).Besides, in accordance with a rating report of S&P, in October 2013, JSCAtomenergoprom receivedaconfirmationofitssovereignratinglevelofВВВ/А-2(outlookstable).
Risks and risk dynamics Risk management results
Commodity risks
Nuclear cycle products and services market risk
Thisrisk increasehasbeencausedbythecurrentstagnationofdemandandapricereductiontrend inthemarketsofNFCproductsandservices,largelyasaresultofadelaywiththeresumedNPPoperationinJapan,thenuclearphase-outpolicy,andareductionintheshareofnucleargenerationwithinthetotalgeneration insomeEuropeancountries (primarily inGermany,Switzerland,andBelgium),aswellasofthecompetitivepressuresofshalegassuppliesonnucleargenerationintheUSA,increasedcompetitionamongtheNFCmarketplayers,andconsiderableunsoldreservesheldbyuraniumproductvendorsandtraders.In2013,thespotpricesfornaturaluraniumdeclinedby21%andthelong-termpricesdeclinedby11%,withthespot-andlong-termquotationsforenrichmentserviceshavingdeclinedby17%and15%,respectively.Toensuretheriskreduction:
» agreements are reached with suppliers on pricing mechanisms that are inverse to the pricingmechanismsofcontractsinvolvingahighlevelofcommodityrisk;
» volumesoffuturebuyerordersundercontractsarejointlystudiedinadvancewithbuyers,andvolumesoffuturebuyerordersareestimatedwithregardtothehistoryofthecustomerrelationshipandthemarketconditions.Alternativesofreplacement/extracontractionarereviewed;and
» quantitativeflexibilitiesandoptionsleadingtotheharmonisationofsaleandpurchasevolumesarefixedincontractswithsuppliersofU3O8,conversionservices,andSWU.
Actually,in2013,despitethecontinueddemandandpricestagnationinthemarketsoftheNFCproductsandservices, thevolumeof the ten-yearportfolioof foreignorders forNFCproductsandserviceswassuccessfullymaintainedatthelevelofthepreviousyear.
See the International Business section and the 2013 annual reports of JSC Techsnabexport, JSC TVEL, and JSC Atomredmetzoloto for further details.
Electricity market risks
TheriskincreasehasbeentheresultofaslowdownintheeconomicgrowthrateinRussiaandhasbeenimpactedbytheexpectedabsenceofagrowthintheelectricitydemand,which,inturn,mayhaveanadverseeffectontheelectricitymarketprice.Theriskmanagementcapabilitiesarelimited.Useofderivativefinancialtools,asapotentialmanagementtool,isfairlycomplicatedduetothepoorliquidityoftradingplatforms.In2013,thegrowthintheday-aheadpriceforelectricitysoldbyJSCConcernRosenergoatomwas12.5%comparedtothelevelin2012,whichwascausedtoagreatextentbythegaspriceincreaseinRussia.
Operational risks
Risk of decrease in electricity generation
volumes
In2013:» theservicelifecharacteristicsofLeningradNPP’sUnit1wererestoredand» the Federal Tariff Service’s balance (the yearly minimum amount of electricity to be generated by
JSCConcernRosenergoatom)wasachievedtoalevelof101.6%.Morespecifically,172.22billionkWhofelectricityweregenerated.
See the Power Engineering Division section and JSC Concern Rosenergoatom’s 2013 report for further details.
Risks of industrial safety and ecology
Safeoperationoftheindustry’senterpriseswasensuredin2013(therewerenoin-serviceICUFdeviationsrelatedtopublicandenvironmentaldangers).
See the Nuclear and Radiation Safety section, Natural Capital Management section, and the annual reports of the Corporation’s organisations for further details.
Investment risk Anoptimisationofprojectswasundertakenin2013,whichresultedintheportfolio’stotalreturnsuccessfullyincreasingby1.5%.
See the Management of Financial Capital section for further details.
Political risks
Themajorriskfactorsthathamperedthedevelopmentandextensionofinternationalcooperationstemmedfromthepoliticalinstabilityinsomepartsoftheworld,thepost-Fukushimasyndromethatcontinuedtoexistinsomecountries,unfaircompetitiononthepartofsomeforeigninternationalmarketplayers,stove-pipingcampaignsinforeignmassmediaaimedatdiscreditingtheCompany’sactionsandtechnologies,andattemptstoputcertainnationallawsaboveinternationallaw.In2013,allof theCompany’skeyoverseasprojectswerecompletedorcontinuedashadbeenplanned.Furthermore, a positive indicator of the renewed interest in the development of nuclear power shownby foreign states was seen in the conclusion of 11 intergovernmental agreements and 7 interagencyarrangementsoncooperationinthepeacefuluseofatomicenergyinthefieldofnuclearsafety,scientificresearch,developmentalactivitiesinnuclearandenergysectors,andothers.
See the International Business and International Cooperation sections for further details.
JSC ATOMENERGOPROM Annual Report 2013- 26 27
Risks and risk dynamics Risk management results
Reputational risks
Theriskincreasehasbeencausedby:» negative outlooks with respect to the economic growth in Russia, which entails a decreased fiscal
capacityofRussia’smunicipaldistrictsandsubjectterritorieswherenuclearinstallationsaredeployed;» asteadilynegativedynamicoftheworld’suraniumpricelevel,whichmakesitunprofitabletomine
naturaluraniumatPriargunsky IndustrialMiningandChemicalUnion (PIMCU) in theTrans-Baykalterritory,Russia,aswellasatsomedomesticandoverseasminingprojectswithahighcostofmining,duetowhichtheCompanyhastoundertakeoperatingefficiencyimprovementprogrammes,includingtheoptimisationofPIMCU’sworkforce;and
» a“background”factoralsointheformofthecontinuedinstabilityintheaccidentresponseactivitiesatFukushimaDaiichiNPPinJapan(continuedradioactivewaterleakage).
To decrease the risk, integrated activities are under way to shape the public acceptance of nucleardevelopmentthankstogreaterawarenessandopeninteractionswithallpartiesconcerned.In2013,asshownbyasurveyconductedbyLevadaCentre,apublicopinionpollagency,theshareofthoseinfavourofthecontinueduseofatomicenergyremainedatthelevelofthepreviousyear,amountingto51.3%ofthetotalnumberofthosepolled.
See the Social Capital and Goodwill Management section for further details.
Risk of loss or damage to assets
TheCompanyoperatesanintegralbranchanti-corruptionandassetsecuritysystem.In 2013, the effect from preventative and checkout asset security activities was estimated at 5.1 billionroubles.
Compliance risks In2013,acompliancefunctionauditwasconductedwithintheindustry,whichresultedincompliancerisksbeingidentifiedandprioritised,andtheirrespectiveownersbeingappointed.Acompliancefunctiondevelopmentroadmapwasapproved.
1.4.3.Riskinsurance
Riskinsuranceisoneofthekeyriskmanagementapproaches.
The Company’s enterprises and organisationsfullymeettherequirementsofin-effectlawsandtherespectivebylawsrelatedtocarryingoutcompulsoryandimputedinsurancetypes,includingnuclearliabilityinsurance,compulsoryliabilityinsuranceofownersofhazardousproduction facilitiesandhydraulicworks,compulsory liability insuranceofownersofvehicles,liability insurance for construction and assemblyoperations,compulsorypassengerinjuryandpropertydamagecarrierpublicliabilityinsurance,andothers.To reduce the risk of financial losses from propertydamageor loss,aswellaspersonnel lifeandhealthrisks,propertyandpersonnelareinsured.
To improve the strength of insurance coverage,theCompany,togetherwiththeinsurancecommunity,carriesoutcontinuedactivitiestoenablepropertyriskreinsuranceofRussianoperatorsintheinternationalpoolingsystem.In2013,alargeportionofthenuclearliability of Russian NPPs was ceded for reinsuranceto the international pooling system, which served toconfirm that sufficient safety and reliability levelsof Russian NPPs have been recognised by theinternationalnuclearinsurancecommunity.
International insurance inspections have beenconducted at the Bilibino, Kalinin, Kursk, and KolaNPPs (with the participation of international poolingsystemexperts).Risksrelatedtonuclearfuelhandling,themanagementofNPPs,personnelqualification,firesafety, environmental surveillance, and other issueswerereviewedaspartoftheinspections.Asaresult
of these inspections, a conclusion was reached by theinternationalexpertsthatthelevelofsafetyattheinspectedNPPs was in compliance with international standards. Itwas confirmed that Russian operators could be insuredagainst property risks within the international poolingsystem. At the Kursk and Kola NPPs, the internationalinsuranceinspectionswereconductedrepeatedly;astheresult of the repeated inspections, an expert conclusionwas drawn that a fairly high level of safety had beenachievedandthatagreatdealhadbeendonetoimplementtherecommendationsfromearlierinspections.
Further insurance inspections are planned to beconductedatmajorsiteswithintheindustryin2014.
1.4.4.CRMSevolutiontasksfor2014
As part of further CRMS evolution, it is plannedthatin2014:
» formation of the organisational structure andimplementation of corporate risk managementprocesses in Uranium One Holding N.V. andJSCRusatomOverseas;
» development of the key risks managementtechnologyanditsimplementationintheoperatingandprojectactivities;
» integrationoftheinformationonrisks(reports)intothecorporatereportingsystem;
» holding of regular workshops for the Company’spersonnelanditsorganisationsbasedonRosatomCorporateAcademy.
JSC ATOMENERGOPROM AnnualReport 2013- 28 29
STRATEGY AND IMPLEMENTATION RESULTS IN 2013
2 32 2.1. ACTIVITIES STRATEGY
33 2.2. FINANCIAL AND ECONOMIC PERFORMANCE
37 2.3. EFFICIENT NUCLEAR ELECTRICITY SUPPLIES FOR RUSSIAN INDUSTRIES
45 2.4. STRENGTHENING OF THE GLOBAL PLAYER POSITION IN THE GLOBAL MARKET
OF NUCLEAR SERVICES
58 2.5. NUCLEAR AND RADIATION SAFETY
2.1.ActivitiesstrategyThe “Strategy of Activities of the State Atomic
EnergyCorporationROSATOMforthePerioduntil2030”wasdeveloped in2011.TheStrategywasapprovedbytheCorporation’sBoardofDirectorson24.11.2011.TheStrategy implementation objective is to attain globaltechnologicalleadership.
The Strategy of Activities defines the following
strategicgoalsforthenuclearindustry’sciviliansector:» efficient nuclear electricity supplies for Russian
industries;» strengthening of the innovative potential for the
further evolution of Russian nuclear technologiesandfortheextensionoftheirapplicationrange;and
» strengthening the global player position in theinternational market of nuclear technologies andservices.
» ConceptoftheLong-TermSocialandEconomicDevelopmentoftheRussianFederationforthePerioduntil2020(approvedbytheRussiangovernmentresolutionNo.1662-r,dated17.11.2008);
» EnergyStrategyofRussiaforthePerioduntil2030(approvedbytheRussiangovernmentresolutionNo.1715-r,dated13.11.2009);
» MasterPlanforDeploymentofElectricityGenerationFacilities(approvedbytheRussiangovernmentresolutionNo.215-r,dated22.02.2008);
» Long-TermProgramofActivitiesbyRosatomStateCorporation(2009-2015)(approvedbytheRussiangovernmentresolutionNo.705,dated20.09.2008);and
» StrategyfortheInnovativeDevelopmentoftheRussianFederationforthePerioduntil2020(approvedbytheRussiangovernmentresolutionNo.2227-r,dated08.12.2011).
STRATEGY AND IMPLEMENTATION RESULTS IN 2013
Target Target indices for 2030
Technologicalleadership Costsofnewdevelopments–4.5%ofrevenues
Shareofnewproducts–40%
Numberofinternationalpatents–15peryearby2020
Globalscope Shareofforeignoperations–50%
Shareofforeignassets–25%
Brandrecognition–World’sTop100
Shareintheinternationalenrichmentmarket(notincludingHEU-LEU)–≥33%
ShareinthePWRreactorfuelmarket–5%
Scale ShareintheNPPservicingmarket–notlessthan10%beginningin2020
NPPpower–growthbyafactorof2.5(from25.2to60GW)
OverseasNPPconstruction–about30units
Operationalefficiency Procurementcostreduction–by30%by2015(ascomparedto2011)
Labourproductivityincreasetotheleveloftheworldmarketleaders
TARGETSFOR2030
THESTRATEGYISBASEDONTHEFOLLOWINGDOCUMENTS: » coordinationofactivitiescarriedoutbysubsidiaries
and associates, and the pursuit of a uniformscientific and technical, investing, manufac-turingand technological, financial, pricing, social andstaffing policy of subsidiaries and associates inaccordance with Russian law and their respectiveconstituentdocuments.
In long-term perspective JSC Atomenergoprompositions itself as a global technological leader in thenuclear industryandapartof theworldtop3playersinmajorsegments.TheCompanyalsoaspirestoobtaintherecognitionofitsleadershipinapplicationofnucleartechnologiesintheadjacentmarkets.
2.2.Financialandeconomicperformance2.2.1.Majorfinancialandeconomicperformancedatain2013
KEYFINANCIALINDICATORS,BILLIONROUBLES
2013 2012* 2013/2012, %
2011 2012/2011, %
Revenues 436.1 394.8 110.5 389.4 101.4
Costofsales (277.8) (269.2) 103.2 (226.8) 118.7
Grossprofit 158.3 125.6 126.1 162.6 77.2
Businessandadministrationexpenditures (78.5) (72.3) 108.5 (66.0) 109.5
Otherincomesandexpenditures(net) (19.0) (18.1) 105.3 (10.3) 174.9
Financialincomesandexpenditures(net) (9.7) 1.8 (535.8) (8.2) (21.9)
Shareinthenetprofit/(loss)ofcompaniesatequity (1.9) (0.2) 930.9 2.7 (7.6)
Profittaxexpenditures (18.0) (12.1) 148.0 (19.7) 61.5
(Loss)/profit on discontinued operations (less profittax)
(6.6) 2.2 (305.3) – –
Profitfortheyear 24.7 26.8 92.1 60.9 44.0
Otherintegratedincome/(loss) 7.1 (20.3) (35.1) 5.2 (388.3)
Totalintegratedincomefortheyear 31.8 6.5 487.3 66.2 9.9
Netoperatingprofitaftertax(NOPAT) 42.8 23.0 185.9 66.5 34.6
*The2012datahasbeenrecalculatedinconnectionwiththeentryintoforceofrevisedIAS19EmployeeBenefitsconcerningtheframeworkfordeterminationofincomesorcostspertainingtoplanswithfixedpost-employmentpayments,aswellasinconnectionwiththedisclosureoftheeffectfromdiscontinuedoperationsastheresultofthelossofcontrolofUraniumOneInc.,owingtothedealtosellashareinUraniumOneHolding.AsspecifiedinIAS,whereanoperationisclassifiedasdiscontinued,thecomparativedataintheprofitorlossstatement,orinanotherintegratedincomestatement,isshownasiftheoperationinquestionwasdiscontinuedfromthetimetherespectivecomparativeperiodstarts.
In2013,therevenuegrowthrate(10.5%)wasgreatlyinexcessofthecostgrowthrate(3.2%).
Thedynamicshiftofrevenues(agrowthof10.5%,morespecificallyof41.3billionroubles,ascomparedto2012)waspredominantlyinfluencedbythefollowingfactors:
» agrowthintherevenuesfromelectricity,capacity,andheat sales. This was caused by a favourable pricingenvironmentinthefreeelectricitymarket,acapacitypricegrowthastheresultofthecompetitivecapacityouttake,andthelaunchofthecapacitysuppliesfromKalininNPP’sUnit4;
» a growth in the revenues from the supply of NFCproducts. These changes were caused by a drop inthe market prices for uranium-containing productsand enrichment services, but were compensated byan increase in the volume of nuclear fuel supplies toforeignNPPs,includingthoseincreasesasaresultofentryintonewsalesmarkets;and
» agrowth in therevenuesasaresultofan increasedvolumeofdesignservicesforforeignNPPs.In2013, theprofitamounted to24.7billionroubles,a
decrease of 2.1 billion roubles compared to the previousyear’s respective figure (the 2012 profit was 26.8 billionroubles).
The following factors had the greatest effect on the2013financialperformance:
» anoutrunninggrowthofrevenuesascomparedtothecostgrowth,whichledtoagrossprofitincreaseof32.7billionroubles;
» the negative revaluation of shares in Inter RAO UESfor 2013 (19.4 billion roubles) was partially made upfor by the profit from the sales of said shares in theamountof5.8billionroubles,withthetotaleffect(loss)being 13.6 billion roubles (shown as part of financialexpenditures);
» an income fromrevaluationat fairvalueofshares inUranium One Holding and Uranium One Inc. as ofthedateoftheretirementintheamountof8.9billionroubles(disclosedaspartofthefinancialincome);
» the disclosure of a loss from the impairmentof assets in the amount of 31.4 billion roubles (therespective2012figurewas26.3billionroubles)aspart
ThemajorgoalsofJSCAtomenergoprom’sactivitiesare:
» implementation of Rosatom’s strategy of activitiesand the overall evolution strategy of the nuclearpowerindustrycomplex;
» an improvement in the management efficiency ofRussia’snuclearpowerorganisations;
» preservationanddevelopmentofthenuclearpowerindustry complex’s research and manufacturing
potential;» mobilisation and concentration of intellectual,
manufacturing and financial resources toimplement long-term programmes for increasingthecompetitivenessofproducts(works,services);
» profit earning, including profits in the form ofdividends (share of profit) on shares (stock,equities) in subsidiaries and associates owned byJSCAtomenergoprom;and
JSC ATOMENERGOPROM AnnualReport 2013- 32 33
Thedynamicsofcost(agrowthof3.2%or8.6billionroubles, as compared to 2012) was predominantlyinfluencedbythefollowingfactors:
» agrowthinproductionpersonnelcosts(9.1%orby5.9billionroubles),whichwasprimarilycausedbytheindexationofwagesinthesecondhalfof2013toraisewagestotheconsumerpriceindexlevel;
» a growth in depreciation (9.7% or by 5.7 billionroubles), as well as the property tax charges andother budgetary payments (29.9% or by 2.6 billionroubles)astheresultofthecommissioningoffixed
assets,includingKalininNPP’sUnit4;» a decrease in the volume of manufacturing and
services provided by outside contractors (23.3%or by 7.6 billion roubles), achieved due to theoptimisation of manufacturing processes, thelaunchoftheenergyefficiencyprogramme,andtheresultsoffulfillingtheRussiangovernment’sorderto reduce the cost of purchasing goods (works,services);and
» an increase in the volume of inventories and thestockintrade(78.4%orby6.6billionroubles).
2.2.2.Coststructure
COSTSTRUCTURE,BILLIONROUBLES
Cost of sales 2013 2012* 2013/2012, %
2011 2012/2011, %
Feed,materials,andfuel 66.3 64.2 103.3 55.4 115.9
Personnelexpenditures 70.8 64.9 109.1 56.5 114.9
Costofelectricitypurchasedforresaleandauxiliaryneeds
23.2 21.6 107.4 19.5 110.8
Depreciation 64.8 59.1 109.6 60.8 97.2
Manufacturingandservicesbyoutsidecontractors
24.9 32.5 76.6 22.5 144.4
Cost of sales 2013 2012* 2013/2012, %
2011 2012/2011, %
Propertytaxchargesandotherbudgetpayments
11.3 8.7 129.9 7.1 122.5
Otherexpenditures 31.5 26.7 118.1 26.5 100.7
Changesinfinishedstockandinventories (15.0) (8.4) 178.6 (21.6) 38.9
TOTAL 277.8 269.3 103.2 226.7 118.8
*The2012datahasbeenrecalculatedinconnectionwiththeentryintoforceofrevisedIAS19EmployeeBenefitsconcerningtheframeworkfordeterminationofincomesorcostspertainingtoplanswithfixedpost-employmentpayments,aswellasinconnectionwiththedisclosureoftheeffectfromdiscontinuedoperationsastheresultofthelossofcontrolofUraniumOneInc.,owingtothedealtosellashareinUraniumOneHolding.AsspecifiedinIAS,whereanoperationisclassifiedasdiscontinued,thecomparativedataintheprofitorlossstatement,orinanotherintegratedincomestatement,isshownasiftheoperationinquestionwasdiscontinuedfromthetimetherespectivecomparativeperiodstarts.
ofotherexpenditures,whichwaslargelycausedby:- a reduction in the long-term forecast of uranium
prices with a resultant impairment of the miningassets in the Mining operations segment of theRussian Federation (7.6 billion roubles and 14.6billion roubles, respectively, inside and outsideRussia);and
- areducedvolumeofordersandadeterioratingsteelmarketenvironmentwitharesultantimpairmentofthe assets in the Machine Engineering operationssegment(4.7billionroubles);
» thedisclosureofthepositiveeffectfromthechangesintheestimatedvalueofdecommissioning,RW,SNF,andotherreserves(totalamountingto12.1billionroubles)aspartofotherincomes;and
» theotherconsolidatedincomefor2013amountedto7.1billion roubles, the major positive effect having beendisclosed as part of the actuarial gain on corporatepensionschemes.Thus,totalintegratedincomefor2013increasedin
companisonwith2012by25.3billionroublesandwasequalto31.8billionroubles
BREAKDOWNOFREVENUESFROMSALESTOEXTERNALBUYERS,BILLIONROUBLES
81.220.9%
61.615.8%
20.85.3%
6.41.6%
17.14.4%
202.352.0%
SEGMENTSOFOPERATIONS
2011 2012*2013
389.4 394.8 436.1
69.015.8%
68.615.7%
26.56.1%
4.91.1%
33.47.7%
233.753.6%
70.017.7%
65.416.6%
28.07.1%
4.81.2%
24.96.3%
201.751.1%
Electricitygeneration
Machineengineering
Salesandtrading
Mining
Fuel
Others
*The2012datahasbeenrecalculatedinconnectionwiththeentryintoforceofrevisedIAS19EmployeeBenefitsconcerningtheframeworkfordeterminationofincomesorcostspertainingtoplanswithfixedpost-employmentpayments,aswellasinconnectionwiththedisclosureoftheeffectfromdiscontinuedoperationsastheresultofthelossofcontrolofUraniumOneInc.,owingtothedealtosellashareinUraniumOneHolding.AsspecifiedinIAS,whereanoperationisclassifiedasdiscontinued,thecomparativedataintheprofitorlossstatement,orinanotherintegratedincomestatement,isshownasiftheoperationinquestionwasdiscontinuedfromthetimetherespectivecomparativeperiodstarts.
FINANCIALSTABILITYINDICATORS
Indicator 2013 2012
Ratioofborrowedandownedfunds 0.35 0.35
LIQUIDITYINDICATORS
Indicator 2013 2012
Quickratio 0.94 1.18
Currentratio 1.50 1.91
TURNOVERINDICATORS,DAYS
Indicator 2013 2012
Inventoryturnoverperiod 206 194
Accountsreceivableturnoverperiod 51 47
Accountspayableturnoverperiod 63 63
RETURNINDICATOR,%
Indicator 2013 2012
Returnonsales(ROS) 6.6 6.7
Returnonassets(ROA) 1.3 1.4
Returnonequity(ROE) 1.8 2.1
2.2.3.Majorfinancialandeconomicindicators
In the reporting year, the quick ratio decreasedby 20% as compared to 2012, predominantly due to areductioninthecashbalance.
A21%decreaseinthecurrentratiowascausedbythe outrunning growth in the short-term liabilities as
oftheendoftheperiod,ascomparedtothegrowthinworkingassets.
Nomajorchangesintheturnoverandprofitabilityratiostookplacein2013.
- 34 35 JSC ATOMENERGOPROM AnnualReport 2013
2.3.EfficientnuclearelectricitysuppliesforRussianindustries2.3.1. Mining Division
2.3.1.1.Strategyandactivities
ThemanagingcompanyofRosatom’sMiningDivisionis JSC Atomredmetzoloto (ARMZ Uranium Holding).Prior to 2013, the Mining Division united Russian andforeign uranium mining assets. A decision was madein 2013 to restructure the division, and Uranium OneHoldingN.V.wasformedfortheconcentrationofforeignassetsat thenuclear fuelcyclestage’s frontend.TheMiningDivisionwillprovideforthefurtherdevelopmentofassetsintheterritoryofRussia,includingnewminingprojects.Therefore,the2013uraniumminingdatawillbe disclosed in this section with respect to Russianassets (thedataon foreignassetswillbegiven in theInternationalBusinesssection).
Thepositionof theMiningDivision in theuraniummarket is supported by the guaranteed demand foritsproductsfromthenuclearenterprisesinRussia,ageographically diversified production and feedstockbasewiththeavailablereservesofanefficientminingcost, and activities undertaken for the sustainabledevelopmentofongoingandfutureprojects.
Other contributors to the evolution of the MiningDivision’s business are adjacent and associatedactivities(coalmining,heatandelectricitygeneration,production of sulphuric acid and mining equipment,drilling, design, surveying, and engineering services).The consumers of said products and services are
the Division’s manufacturing enterprises and otherorganisations controlled by JSCAtomenergoprom, aswell as other Russian and foreign organisations andenterprises.
ThemissionoftheMiningDivisionistosupportthedevelopment of advanced technologies by providingfeedstockresources. Itsstrategicgoal is tomaximisethe value of business to the shareholders’ benefitthroughensuring:
» ahighlevelofuraniumminingefficiencyand» an increase in the scale and diversification of
business through the development of new miningprojects.
2.2.4.Structureofassets
A goodwill decrease by 29 billion roubles wasthe result of the recognised loss from the goodwillimpairment with respect to Mantra Resources LimitedandJSCEnergomashspetsstal (by12.4billionroubles),aswellasinconnectionwiththewithdrawalofUraniumOne Inc. from JSCAtomenergoprom’s control throughthesaleofthecontrollingstakeinUraniumOneHoldingN.V.toanotherRosatom-controlledcompany.
Adecrease in intangibleassetsby5billionroublesresulted largely from the 2013 disclosure of the lossfromimpairmentoftheintangibleassetsintheMiningoperationssegment.
A growth in the balance cost of fixed assets by124 billion roubles occurred largely due to the capitalinvestmentswithinaffiliatedcompaniesofJSCConcernRosenergoatom.
The long-term financial investments decreased by18billionroubles(aneteffect),primarilyastheresultoftheretirementofequityinvestments(takingintoaccountthesaleofthecontrollingstakeinUraniumOneHoldingto another Rosatom-controlled company), the sale in2013ofthestakesinInterRAOUES,andthepurchaseoflong-termnotesfromJSCVTBandJSCVTB-Leasing.
Nomajorchangesunderotherassetcategoriestookplacein2013ascomparedto2012.
2.2.5.Capitalandliabilitystructure
The increase in the equity capital by 91 billionroublesin2013wasprimarilytheresultofanincreasein the authorised capital due to the placement ofJSCAtomenergoprom’s additional shares (worth 83billionroubles).
A credit and loan increase by 18 billion roubles(a net effect) was due to the loans received in 2013from JSC Sberbank of Russia, JSC VTB Bank, andGazprombank (Joint-StockCompany),aswellasduetoareduction,asoftheendof2013,intheliabilitiesthanks to the withdrawal of Uranium One Inc. fromthe Group through the sale of the controlling stakein Uranium One Holding N.V. to another Rosatom-controlledcompany.
A 17 billion-rouble increase in the debts payablewaspredominantlytheresultofgrowthintheliabilitiesundercontractsofcommission.
A reduction in the sum of reserves by 25 billionroubleswaslargelyduetoadecreaseinthereserveondecommissioningoffixedassets(by8billionroubles),as well as of the reserve on the spent nuclear fuelhandling(by10billionroubles).
No major changes took place on other itemsofliabilitiesin2013ascomparedto2012.
MAJORCHANGESINTHESTRUCTUREOFASSETS,BILLIONROUBLES
CAPITALANDLIABILITYSTRUCTURE,BILLIONROUBLES
29
1,192397
793
91
204
179
119
106
42
91
73
153
222
80
7
0
1,316
401
884
62
222
206
94
103
37
73
77
161
231
69
7
Goodwill Equity
Fixedassets Retainedprofit
Intangibleassets
Shareofminorityshareholders
Financialinvestments
LoansandcreditsOthernon-
currentassets
Accountspayable
Inventories
Reserves
Accountsreceivable
Otherliabilities
Monetaryfunds
Othercurrentassets
31.12.2012 31.12.201231.12.2013 31.12.2013
POSITIONOFTHEMININGDIVISIONINJSCATOMENERGOPROM’SNFCPRODUCTIONCYCLE
MINING DIVISION
01 - geological prospecting 02 - mining03 - ore processing
04 - conversion05 - enrichment06 - fuel fabrication
12 - NPP design, engineering, and construction
13 - nuclear power generation14 - NPP equipment servicing
07 - equipment design08 - equipment production09 - equipment supply10 - assembly and commissioning11 - service and upgrading
01 02 03 04 05 06
1409 10 11 12 130807
NFC FRONT END
NPP CONSTRUCTION AND NUCLEAR POWER GENERATION
POWER ENGINEERING
THE PRODUCTIVITY OF LABOUR WITHIN
JSC ATOMREDMETZOLOTO IN 2013 WAS
115.1% COMPARED TO THE REPORTING
PERIOD TARGET
JSC ATOMENERGOPROM Annual Report 2013- 36 37
The Fuel Division supplies nuclear fuel for 76powerreactorsin15countries,forresearchreactorsin9EuropeanandAsiancountries,andfortransportreactorsoftheRussiannuclearfleet.
TheFuelDivisionpossessestheentirespectrumof characteristics that serve to prove the division’slong-term stability in conditions of increasingcompetitionintheinternationalmarketofthenuclearfuelcyclefront-end(NFCFE)productsandservices.TheFuelDivisionincludesseparation/sublimationandfabricationprocesses,whichmakeitpossibleforthedivisiontooffertheNFCFEproductsandservicesintheformofpackagesupplies.Thisensurestheflexibilityof contract price formation and optimised transportlogistics. Highly reliable supplies are supportedby the existence of several enterprises in each ofthe NFC FE areas. Furthermore, the Fuel Divisionhas competencies in the supply of fuel for Russian-designedreactorsandWestern-designedlight-waterreactors(PWRandBWR),aswellascomponentsforforeignheavy-waterreactors(PHWR).
Strategically, the division aims to attain globalleadership in theNFC front-end marketandachieveacompetitiveglobaledgeintheNFC.
The strategic goals of the Fuel Division are to
» securegrowthintheNFCmarkets;» developthe2ndbusinesscore;» increasetheefficiencyofmanufacturingprocesses;
and» ensureitssocialandenvironmentalacceptance.
2.3.2.2.2013results
Key production results:
» manufacturingof6.866fuelassemblies(6,579FAsweremanufacturedin2012)
» creation of the first batch of experimental fuelassemblieswithadensefuelatJSCSCCaspartofthebranchindustryProryv
» supplyoftheinitialfuelbatchfortheBN-800reactorunderconstructionatBeloyarskNPPII
» manufacturingoftheKVADRATFAcartridgestobeloadedintotheforeignPWRreactorin2014
EXPLORATION
R&D, INNOVATIONS
PRE-DESIGN ENGINEERING
DESIGN OF ENTERPRISES
CONSTRUCTION OF ENTERPRISES
ACQUISITION OF SUBSOIL USER RIGHTS
GEOLOGICAL PROSPECTING
RECLAMATION AND DECOMMISSIONING
OPERATION OF ENTERPRISES:
uranium mining and production
TheMiningDivision’svaluechainisbasedonamodeloftheproductioncyclecomprisinganintegrationofinterlinkedprocesses.
Labor productivity in JSC Atomredmetzolotoamounted115,1%comparedtotheplannedfigure.
2.3.1.2.2013results
Key production results
In 2013, Russian enterprises within the MiningDivision mined 3.135 tonnes of uranium. JSC PIMCU(Krasnokamensk, Trans-Baykal Territory) mined2.133tonnesofuranium,andJSCDalur(Uksyanskoye,Kurgan Region) and JSC Khiagda (Bagdarin, Republicof Buryatia) mined 562 and 440 tonnes of uranium,respectively.
The 2013 expenditures on innovative projectstotalled 253.5 million roubles, 101,9 million roubles ofwhichwereallocatedforR&Dactivities.
See JSC Atomredmetzoloto’s 2013 annual report for further details.
Nuclear safety
As part of JSCAtomenergoprom’s programme,entitled Improvement of the Physical Protection ofNuclear Materials, Nuclear Facilities and NuclearMaterial Storages for the Period until 2015, acombinationofengineeredphysicalprotectionfeatures(CEPPF) was put into commercial operation at JSCPIMCU’sleachplant,whileconstruction,assembly,and
commissioningoperationsfortheCEPPFcreationwerecompletedatJSCKhiagda’scentralproductionsite.2.3.1.3.Plansfor2014:
» outputof2.963tonnesofuraniumbytheDivision’senterprisesinRussia
» further geological prospecting activities andcontinued pilot operations for uranium mining attheKhokhlovskoyedeposit
» handoveroftheprojectofapilotcommercialheapleaching facility at the Berezovoye deposit for thegovernment’sexpertreviewofdocuments
» field geological prospecting activities at thePavlovskoyedeposit
» development, together with foreign investors, ofthebaseconditionsforthepilotcommercialrare-earthfacilitiesatJSCPIMCU’ssite
» development of the project to build a pilotcommercial scandium concentrate productionplantatJSCDalur
2.3.2.FuelDivision
2.3.2.1.Strategyandactivities
The Fuel Division comprises nuclear fuelfabrication, uranium conversion/enrichment, and gascentrifugeproductionfacilities,aswellasresearchanddesign organisations. Structurally, the Fuel Divisionincorporates 16 subsidiary and affiliated companiesbased in different constituent regions of Russia. TheholdingcompanyoftheFuelDivisionisJSCTVEL.
VALUECHAINOFTHEMININGDIVISION
POSITIONOFTHEFUELDIVISIONINJSCATOMENERGOPROM’SNFCPRODUCTIONCYCLE
FUEL DIVISION
01 - geological prospecting 02 - mining03 - ore processing
04 - conversion05 - enrichment06 - fuel fabrication
12 - NPP design, engineering, and construction
13 - nuclear power generation14 - NPP equipment servicing
07 - equipment design08 - equipment production09 - equipment supply10 - assembly and commissioning11 - service and upgrading
01 02 03 04 05 06
1409 10 11 12 130807
NFC FRONT END
NPP CONSTRUCTION AND NUCLEAR POWER GENERATION
POWER ENGINEERING
THE PRODUCTIVITY OF LABOUR WITHIN THE FUEL DIVISION
IN 2013 WAS 104.9%
COMPARED TO THE REPORTING PERIOD TARGET
JSC ATOMENERGOPROM Annual Report 2013- 38 39
supportingitsplanstoachievealeadershippositionintheglobalmarketofnucleartechnologies.
To date, the equipment manufactured by theMachineBuildingDivision’senterprisesisinoperationinover20countriesoftheworld.Beyondthetraditionalmarkets of presence (Russia, the CIS countries, theBaltic states, and Eastern European countries), thedivision’s top-priority markets include Asian-Pacificcountries,aswellasAfrican,MiddleEastern,andLatinAmericancountries.
For increased reliability, improved economicperformanceandalongerspecifiedlifeoffacilities,thedivision’s enterprises carry out continual activities toupgradetheequipmentattheNPPsandcogenerationplants inoperation.Anemphasison thedevelopmentof hydraulic power engineering is placed on theconstruction of small and micro-hydro plants thatareexpectedtoofferaperfectalternativetoheatandnuclear power stations, as small water courses havepractically unlimited resources and are relativelyunderused.
Due to a great deal of vertical integration,the Machine Building Division is involved in NPPconstructionprojectsatallnuclearproductionprocesschainstages,fromdesign,installation,andadjustmenttoafter-salesservicingandequipmentupgrading.
2.3.3.2.2013results
Key production results:
» equipmentwassuppliedtoLeningradNPPII(Units1 and 2), Belorussian NPP (Unit 1), Rostov NPP(Unit3),andNovovoronezhNPPII(Units1and2)
» adecisionwasmadebyAlstom-AtomenergomashCo.Ltd.todeploytheproductionoftheturbineroomcomponentsusingaFrenchtechnology(Arabelle)basedon the facilitiesofAtommash,anaffiliatedcompany of JSC AEM-Technologii in Volgodonsk.This is expected to make the Machine BuildingDivisiononeoftheworld’sfewintegratedsupplierswiththecapabilitytomanufactureequipmentbothforthereactorandturbineNPPislands
» auniquefirst-heatingotweighing415tonnestobeused for manufacturing the extended VVER-TOIreactorvesselcoreshellwasproducedaspartoftheVVER-TOI reactor facility project implementationatthesiteofJSCEnergomashspetsstal
» retrofitting of JSC Energomashspetsstal wascompleted,whichhasmadeitpossibletoestablisha modern, energy-efficient enterprise with thecapability tomanufacturethecompletespectrumofkeyintermediateproductsforNPPcomponents
» retrofitting of JSC Petrozavodskmash wascompleted,whichhasresultedintheestablishmentof a new facility for production of the steamgenerator vessels (complete cycle) and maincirculationpumpcasingsforNPPs.Newproductswere commercialised, including the TUK-146
shippingcask,whichisintendedfortransportationandstorageofspentnuclearfuelfromreactorsoftheVVER-1000/1200type
» JSC SNIIP won two tenders for the supply ofthe automated radiation monitoring systemcomponentsfortheretrofitoftheKalininNPP(Unit1)andfortheconstructionoftheTianwanNPPinChina(Units3and4)
» technology sections of the design documentationfor the nuclear fuel fabrication plant in theKirovogradRegion,Ukraine,weredeveloped
» activities of the Centre for Modern AutomatedWelding Technologies were organised atSPASRIBMTIn improving the efficiency of the Company’s
activitiesanditsglobalcompetitiveedge,significantemphasis is placed on the implementation of theIntegrated Efficiency Improvement Programme andthe introduction of Rosatom’s Production System(RPS).
See JSC Atomenergomash’s 2013 annual report for further details.
2.3.3.3.Plansfor2014andmid-term:
» auditing of processes at the Machine BuildingDivision’senterprisesin2014
» further implementation of the Energy EfficiencyImprovementProgrammescheduledfor2010–2015
» repeated energy auditing for the development oftheEnergyEfficiencyImprovementProgrammeforthePeriodof2016–2020by2015,atthelatest
POSITIONOFTHEMACHINEBUILDINGDIVISIONINJSCATOMENERGOPROM’SNFCPRODUCTIONCYCLE
» optimisation of the technology and output ofexperimental fuel assemblies of the BN-1200 andBRESTKETVS-2andKETVS-3typeswithanitridefuel
» productionandshipmentof50 tonnesofasuper-conductingstrandfortheITERproject
» signing of a memorandum between JSC Tech-snabexportandJSCTVELconcerning interactionsas part of the project to establish the Centre forIntegrated Servicing of Foreign-Made ShippingCasksbasedonJSCUECC
» thelaunchofPhase2ofafacilityfortheproductionof lithiumhydroxide,enriched in lithium-7 isotope,atJSCNPCC
See JSC TVEL’s 2013 annual report for further details.
2.3.2.3.Plansfor2014andmid-term:
» completionofthelicensingprocedurefortheTVSA-12PLUS,analternative-designfuelassembly
» supply, within the scope of complete makeup, toKalinin-3
» developmentoftheTVS-2MFAdetaileddesignwithalternativedesignsolutions:withmixinggridsandwithprofiledgadoliniumfuelrods
» commercialisation and launch into the pilotoperationof the2MfuelassemblybatchwithpilotoperationoftheTVS-2MFAbatchwithmixinggridsatBalakovoNPP’sUnit4
2.3.3.MachineBuildingDivision
2.3.3.1.Strategyandactivities
The holding company of the Machine BuildingDivisionisJSCAtomenergomash.
JSCAtomenergomash is the supplier of the keyequipment needed by JSCAtomenergoprom for theconstruction of nuclear generating facilities, thussupportingitsplanstoachievealeadershippositionintheglobalmarketofnucleartechnologies.
In 2013, JSC Atomenergomash actualised itsstrategy up to the year 2030 that suggests thetransformationofthedivisionintoahigh-techdiversifiedholdinginordertobecompetitiveintheglobalmarketandstableoverthelong-termperiod.
Structurally, the Machine Building Divisionincorporates 47 subsidiary and affiliated companiesbasedbothinsideandoutsideofRussia.Theenterpriseswithin the Machine Building Division supply keycomponents needed by JSCAtomenergoprom for theconstruction of nuclear generating facilities, thereby
MACHINE BUILDING DIVISION
01 - geological prospecting 02 - mining03 - ore processing
04 - conversion05 - enrichment06 - fuel fabrication
12 - NPP design, engineering, and construction
13 - nuclear power generation14 - NPP equipment servicing
07 - equipment design08 - equipment production09 - equipment supply10 - assembly and commissioning11 - service and upgrading
01 02 03 04 05 06
1409 10 11 12 130807
NFC FRONT END
NPP CONSTRUCTION AND NUCLEAR POWER GENERATION
POWER ENGINEERING
THE PRODUCTIVITY OF LABOUR WITHIN THE MACHINE
ENGINEERING DIVISION IN 2013 WAS
98.3% COMPARED TO THE REPORTING
PERIOD TARGET
IN2013,THECORPORATEINTEGRATED
MANAGEMENTSYSTEM(IMS)INTHEFIELDSOF
QUALITY,ECOLOGY,HEALTHPROTECTIONAND
LABOURSAFETYFORCOMPLIANCEWITH
ISO9001,ISO14001,OHSAS18001
REQUIREMENTSWASSETUPINTHE
FUELDIVISION.THECORPORATEIMSHAS
UNDERGONEANEXTENDEDCERTIFICATE
AUDITINVOLVINGSEVERALSUBSIDIARIES.
JSC ATOMENERGOPROM Annual Report 2013- 40 41
2.3.4.2.2013results
Key production results:
» the nuclear electricity generation amounted to16.8%ofthetotalelectricitygenerationinRussia
» a total of 172.22 billion kWh of electricity wasgenerated. The target volume of the nuclearelectricity generation, as set in the balanceassignment determined by Russia’s FederalTariff Service, was 169.54 billion kWh. The extravolume of nuclear electricity generation totalled2.68billionkWh(1.6%)
» integratedarrangementswereundertakentocuttheoveralldurationofrepairs; the total timeofrepairoperationswasreducedby27daysin2013
» integrated arrangements were undertaken torecover the service life characteristics of theRBMK-1000graphitestack,whichmadeitpossibleto secure Rostekhnadzor’s permit to beginoperatingLeningradNPP’sUnit1from25.11.2013
» a programme was implemented for increasedpowergenerationattheactiveNPPunits
» a programme was implemented to retrofit theNPPs in operation. As part of the programme toextendthelifeoftheactiveNPPunits,investmentprogrammes were implemented in 2013 forextending, as planned, the service life of theBalakovo NPP’s Units 1 to 3, the Kursk NPP’sUnit 4, the Kola NPP’s Unit 4, and the KalininNPP’sUnits1and2.The investmentprojectwascompleted and a Rostekhnadzor licence wasobtained for the extended operation of Kursk-3,andsiteswereselectedforthedeploymentoftheVVER-TOIprojectunits
» fundingof2.8billionroubleswasprovidedforR&Dactivities, including those involved in innovativeprojectswithfast-neutronreactors(over1billionroubles)
» 16 intellectual property items were registered astheresultofR&Dactivitiesin2013
See JSC Concern Rosenergoatom’s 2013 annual report for further details.
Contributions to the energy security of the Russian Federation’s constituent regions
TheshareofnuclearelectricitygenerationoutofthetotalvolumeofelectricitygenerationinRussiaamountedto 16.8%. Nuclear generation is a major contributor topower generation by the unified grids in Russia (NPPsaccountfor21.7%ofthegenerationintheEuropeanpartofRussia).
2.3.4.PowerEngineeringDivision
2.3.4.1.Strategyandactivities
The holding company of the Power EngineeringDivision is JSC Concern Rosenergoatom. The primeactivity of the division is nuclear electricity and heatgeneration and the operation of nuclear facilities(nuclear plants) and radiation sources, as well asnuclearmaterialandradioactivesubstancestoragesinthemannerprescribedbyRussianlaw.
The Power Engineering Division is Russia’s onlyoperatorofalleffectiveRussianNPPs,andisalsotheprimeorderingparty forallNPPsunderconstructionin Russia. This division is Russia’s largest electricity-generatingcompany,thesecondlargestintermsofthenumberofunits inoperationand in installedcapacityamong the world’s leading NPP operators, as well astheworld’ssecondlargestelectricitygenerator.
As subsidiaries, the Power Engineering Divisionis comprised of 10 active nuclear power plants andthe directorate of the nuclear plants that are underconstruction. The division also has a representativeofficeinthePeople’sRepublicofChina.
The division’s products are consumed by allenterprises and companies listed in Section 2(ElectricityandCapacityConsumers)oftheRegisteroftheWholesaleElectricityandCapacityMarketEntities,as well as any company or organisation that has dulyjoined the WEPM trading system for the purpose ofelectricityandcapacitypurchasetransactions.
ThestrategicgoalsofthePowerEngineeringDivisionareto:
» ensure safe, efficient, and reliable operationof effective NPPs, nuclear and radiation safetyof nuclear installations, as well as personnel,
public,andenvironmentalprotection;» increase electricity generation while ensuring the
requiredlevelofsafety;» implementthenuclearfuelcycleclosurebasedon
theBN-1200andVVER-TOIunitswithMOX-fuel;» implementsmallandmediumNPPunitprojects;» increase the share of nuclear generation due to
the growth in the NPP installed capacity and thegeneration of atomic energy, while ensuring therequiredlevelofsafety;
» improvetheefficiencyoftheNPPoperation;» improvetheefficiencyoftheNPPdesignandcapital
construction;and» developinternationalbusinessactivities.
THE PRODUCTIVITY OF LABOUR WITHIN THE ELECTRIC
POWER DIVISION IN 2013 WAS
101.4% COMPARED TO THE REPORTING
PERIOD TARGET
POSITIONEOFTHEPOWERENGINEERINGDIVISIONINJSCATOMENERGOPROM’SNFCPRODUCTIONCYCLE
SHAREOFTHENUCLEARELECTRICITYGENERATIONINRUSSIA(WITHAREGIONALBREAKDOWN)
Unified gridsTotal electricity generation, million
kW·hNuclear electricity generation,
million kW·hShare of nuclear
generation, %
Russia 1,023,537.3 172,217.441 16.8
Europeanpart 791,284.2 172,001.903 21.7
CentralRussia 235,807.9 87,432.956 37.1
MiddleVolga 113,380.4 33,690.862 29.7
North-West 101,076.3 29,622.068 29.3
South 82,842.0 17,135.723 20.7
Ural 258,177.6 4,120.294 1.6
SHAREOFNUCLEARELECTRICITYGENERATIONOUTOFTHETOTALGENERATIONBYTHEUNIFIEDGRIDS
INRUSSIAIN2013,%
Russia
Europeanpart
UnifiedpowersystemofCentralRussiaUnifiedpowersystemoftheVolgaregionUnifiedpowersystemofNorth-WestRussiaUnifiedpowersystemofSouthRussiaUnifiedpowersystemoftheUralregion
16.8
21.7
37.1
29.7
29.3
20.7
1.6
POWER ENGINEERING DIVISION
01 - geological prospecting 02 - mining03 - ore processing
04 - conversion05 - enrichment06 - fuel fabrication
12 - NPP design, engineering, and construction (function of new NPP ordering party and construction contractor)
13 - nuclear power generation14 - NPP equipment servicing
07 - equipment design08 - equipment production09 - equipment supply10 - assembly and commissioning11 - service and upgrading
01 02 03 04 05 06
1409 10 11 12 130807
NFC FRONT END
NPP CONSTRUCTION AND NUCLEAR POWER GENERATION
POWER ENGINEERING
JSC ATOMENERGOPROM Annual Report 2013- 42 43
Safety of nuclear operations and nuclear material handling
The system of ensuring the safety of RussianNPPs based on the defence-in-depth concept formsthe framework for the Division’s technology policyand is regulated by federal NPP safety standards,taking intoaccount the IAEAguidelines.AllNPPsareequippedwithintegratedRWprocessingfacilities:theexisting RW storage spaces are retrofitted and newones are being built at the NPP sites to ensure theenvironmentalsafetyofnuclearplantsthroughoutthetimeofoperation.
2.3.4.3.TargetKPIsfor2014:
» productivityoflabour» JSC Concern Rosenergoatom’s investment
programmeperformanceindex» nuclearelectricitygeneration» EBITDA» integrated index for new products (with regard to
theefficiencyofsales,asshowninkWh)» specificsemi-fixedcostsper1kW/hourofinstalled
capacity» specificlevelledcostoftheNPPconstruction» LTIFR» no malfunctions of level 2 on the INES scale or
personnelirradiationincidentswithintheindustry
2.3.5.Capitalconstructionandengineering
The engineering and NPP construction activitiesof JSCAtomenergoprom are intended to achieve theCompany’sgoalsofensuringtheenergyindependenceof and guaranteed power supplies to the Russianpopulationandindustries,aswellasthecompetitivenessoftheNPPunitserialconstructionprojects.TheNPPdesign, construction, and engineering activities arecarried out by the following Company organisations:NIAEP–Atomstroyexport,JSCAtomenergoproekt,andJSCVNIPIETHeadInstitute.
ThecompetitiveadvantageofRussianengineeringis its extension of the best practices to all nucleardesign and construction project market players,which manifests itself in the creation of a modelcontractfortheentirecycleofpre-designanddesignactivities,aswellasamodelEngineeringProcurementConstructionManagement(EPCM)contractforpowerunit construction. EPCM projects cover engineering,supply, construction, and project managementactivities.
In Russia, as of the end of 2013, there were ninelarge power unit projects under construction at fiveNPPsites,andtherewasalsoafloatingcogenerationplant (FCP) in theprocessofbeingconstructed.Overthe next five years, JSCAtomenergoprom plans tobuildandstartupninelargeunits.Uptoeight2 large
powerunitsareplannedtobecompletedinthefuture(2019–2024).
Implementation of modern information technology in NPP construction.
Multi-D technology
To develop competencies in the construction ofnuclear and thermal power installations, a projectwaslaunchedin2013fortheadaptationoftheMulti-Dprojectmanagementsystem.
The Multi-D technology makes it possible tosimulate in detail the construction and assemblyprocessesbasedontheproject’s3Dmodel,tooptimisetheNPPconstructionasearlyas thepreproductionstage, to review various scenarios of using theavailable resources, and to alter the 3D model for
optimisingitsdesign.TheMulti-Dmodelconsistsofa spatial intellectual model of the facility, includingdrawings and 3D visualisations, the work schedulebased on performance standards, and informationon physical volumes. The Multi-D model detailinglimits are in accordance with the Level 4 activityprogresscharts.Thetechnologyoftheconstructionandassemblyplanningbasedonsuchaschedule isapplied, in a phased manner, to elevations, rooms,andassemblyareas.
2.4.1.1.TheNaturalUraniumMarket
The demand for uranium depends directly on thenuclear electricity output. In 2013, the global demandfor natural uranium amounted to 64–68 thousandtonnes.By2030,theglobaldemandfornaturaluraniumisexpectedtoincreaseto74–80thousandtonnes.
In 2013, the natural uranium mining volumeworldwide was 59.1 thousand tonnes (a 3% increasefromthe2012level).Theremainderofthedemandwascovered by secondary uranium sources (HEU-LEU,further enrichment of depleted uranium hexafluoride,regenerated uranium, etc.). Within the period until2030, uranium mining growth will follow the increasein demand, with the overall uranium mining growthpotential for the respective time span reaching95 thousand tonnes. The natural uranium marketis dominated by a stable group of leaders, which,as of the end of 2013, was comprised, apart from
TARGETMARKETSANDPRODUCTSOFJSCATOMENERGOPROM
2.4.Strengtheningoftheglobalplayerpositionintheglobalmarketofnuclearservices2.4.1.Targetmarkets
MAJORNATURALURANIUMMARKETPLAYERS,%
14ATOMENERGOPROM
21KAZATOM-PROM
15CAMECO
11AREVA
5RIOTINTO
5PALADIN
23OTHERS6
BHP-BILLITON
Value chain ProductsMarkets
Naturaluraniummarket
Uranium conversion
and enrichment services market
Nuclearfuel market
Naturaluranium Conversion
Powerengineering
market
Electricitygenerationand salesmarket
Design / engineering
Manufac-turing
Enrichment
Assembly Servicing
Fabrication ofNF compo-
nents
FAfabrication
NFcomponents
Nuclearsteamsupplysystem
FA
Operation Electricitytrading Electricity sale Servicing
Electricity
Servicing
Servicing
Power equipment
Development of mineral raw material base
Ore mining Oretreatment
Natural uranium
Natural uranium Conversion Enrichment UHF, EUP
2PlansforthereactorconstructionaspartoftheProryvproject(BREST-OD-300andBN-120)havenotbeentakenintoaccount;thesameistruefortheconstructionofapilotunitwiththeSVBR-100reactorfacility.
JSC ATOMENERGOPROM Annual Report 2013- 44 45
is comprised of Westinghouse/Toshiba, AREVA,JSCAtomenergoprom,andGlobalNuclearFuel.
Westinghousefabricatesnuclearfuelforpracticallyalltypesoflight-water(LWR)reactors,includingPWR,BWR,andVVER.Themajormarketsare theUSAandWesternEuropeancountries.
GlobalNuclearFuel(GNF),ajointventureestablishedby GE, Hitachi, and Toshiba, accounts for 17% of themarketshare.GNFcomprisestwoenterprises:GNF-J(for the Japanese market operations) and GNF-A (foroperations in all other markets). This organisationmanufacturesfuelforBWRreactors.
See JSC TVEL’s 2013 annual report for further details.
2.4.1.4.Powerengineeringmarket
The current global power engineering marketis valued at over $172 billion3 per year. By 2030, it is
expectedtogrowtoover$189billionperyear.Prior to 2013, most of the investments in the
equipment for newly built plants were in the heatpowersector.Intheperioduntil2030,thepercentageofequipmentcostsinnuclearpower,heatpower,andgas and petrochemical industries are expected toleveloff.
Trends in Russian power engineering
Intheyearstocome,theRussianpowerengineeringmarketwillbeevolvinginlinewithglobaltrends,butthenuclearpowerengineeringmarketisexpectedtotaketheleadintheperiodlastinguntil2020.
Themajorevolutionarytrendsofthenuclearpowerengineering market in Russia stem from the plans to
decommissionnewgeneratingfacilities,asprescribedbytheRussianFederationRegionalPowerDevelopmentPlan that was approved by the Russian governmentresolutionNo.2084-r,dated11.11.2013.
Apartfromthis,theRussianUnifiedEnergySystemDevelopmentPlanandProgrammefor2013–2019wasapprovedbyRussia’sEnergyMinistryin2013.
See JSC Atomenergomash’s 2013 annual report for further details.
2.4.1.5.Electricitygenerationandsalesmarket
In 2013, according to data from the WNA (WorldNuclear Association), nuclear power accounted forabout6%ofglobalenergysupplies.Asoftheendof2013,therewere437powerreactorsinoperationworldwide(totalpower,373.3GW)(withoutconsideringtheinterimshutdownofJapanesereactors),and72reactorsunderconstruction.
Thereportingyearsawthelaunchoftheconstructionof ten new units, including new units in the USA(4 units), Canada (3), South Korea (1), Belarus (1),and the United Arab Emirates (1). According to theWNA’s data relevant in the reporting period, theplans for NPP construction worldwide until 2030were estimated to be 484 units with a total powergenerationof544GW,a3%decreaseagainstthe2011estimates. According to WNA’s reference scenariopublished in 2013, the global NPP fleet will consistof 589 units with a total power of 574 GW in 2030.Asian countries had the greatest demand for theconstructionofnewNPPs.
In terms of nuclear installed capacity, JSCAtom-energoprom is the world’s second largest nucleargeneratingcompanyafterEDF,France(74GW).
In the period until 2030, AREVA and Toshiba-WestinghousewillremainthemajorrivalstoJSCAtom-energoprom, while competition from Chinese andKoreancompaniescontinuestogrow.
See JSC Concern Rosenergoatom’s 2013 annual report for further details.
JSCAtomenergoprom(accountsfor14%oftheworld’smining volume), of NAC Kazatomprom (Kazakhstan,~21%),Cameco(Canada,~15%),AREVA(France,~11%),BHP Billiton (Australia/Great Britain, ~ 6%), PaladinEnergy (Australia,5%),andRioTinto (Australia/GreatBritain, 5%). The seven largest players account forabout78%ofthetotalglobaluraniumminingvolume.
In 2013, a number of companies continued theconstructionofnewenterprisesandplan,iftheconditionsarefavourable,tolaunchproductionfacilitiesin2014atfullpower,equallinganaverageof3.046tonnesperyear.
See Atomredmetzoloto’s 2013 annual report for further details.
2.4.1.2.Uraniumconversionandenrichmentmarket
Uraniumenrichmentisamajorstepatthefrontendof the nuclear fuel cycle (NFC). The products offered
in the market include enriched uranium products(EUP) and uranium enrichment services measured inseparativeworkunits(SWU).
In 2013, the international market for uraniumenrichmentserviceshadacapacityofabout49millionSWU,withthatfigurehavingremainedapproximatelyatthesamelevelasin2012.Thedemandfortheuraniumenrichmentservices isexpected to increase to60–63millionSWUby2020andto75–85millionSWUby2030.
Apart from JSCAtomenergoprom, the world’smajor suppliers of uranium enrichment services areURENCO (Great Britain/Germany/the Netherlands),AREVA (France), and USEC (USA), having a combinedcontrolofapproximately95%ofthemarket.
In recent years, JSCAtomenergoprom hasaccounted for over a third of the supplies to coverthe demand of foreign-design reactors for uraniumenrichment services (40% in 2013). URENCO is the
Company’s major rival in the uranium enrichmentmarket.Asoftheendof2013,URENCO’stotalinstalledcapacitywas~15.3millionSWU/year.By2015,URENCOexpectstoreach18millionSWUperyear.
See the 2013 annual reports of JSC TVEL and JSC Techsnabexport for further details.
2.4.1.3.Nuclearfuelfabricationmarket
In2013,theglobalnuclearfuelmarkethadacapacityof approximately 11 thousand tonnes of heavy metal(THM),ofwhichroughly8thousandTHMisfuelrequiringuraniumenrichment(withnearly1thousandTHMbeingfuelforVVER-typereactors),and3thousandTHMisfuelforheavy-waterreactors.Dependingonthereactorfleetgrowth,thedemandforthesefuelfabricationservicesisexpectedtoincreaseto13.8thousandTHMby2020andto15.6thousandTHMby2030.
Thegroupoftheglobalfabricationmarketsuppliers
EXPLORATIONCOMPANIESCONTINUETHEACTIVE
EXAMINATIONOFPERSPECTIVEMID-TERM
PROJECTS.ACTIVEWORKSAREHELDINCANADA,
USAALONGWITHAUSTRALIA,AFRICANANDLATIN
AMERICANCOUNTRIES.GREENLANDMAYALSO
REJOINTHEGROUPOFPROMISINGREGIONS,AS
THEBANONMININGRADIOACTIVEMATERIALSWAS
REVOKEDINOCTOBER2013.
NUCLEARFUELFABRICATIONMARKETSUPPLIERS,%
(intermsofthenumberofreactorunitstowhichcomponentsaresupplied)
17ATOMENERGO- PROM
5 OTHERS
31WESTINGHOUSEELECTRICCOMPANY
30AREVA
17GNF
LEADINGCOUNTRIESINTHENUMBEROFNPPUNITSINOPERATIONIN2013
Russia
23
SouthKorea
50
Japan
58
France
104
USA
ATPRESENT,AREVAHASCOMMISSIONEDANDIS
EXPANDINGTHECAPACITYOFAPLANTBASEDON
AGAS-CENTRIFUGETECHNOLOGY,GEORGESBESSEII
(GBII),WITHTHERESULTANTCAPACITYEXPECTEDTO
REACH7.5MILLIONSWUPERYEARBYTHEEND
OF2016.
USECCLOSEDITSURANIUMENRICHMENTPLANT
WITHTHEINSTALLEDCAPACITYOF8MILLIONSWU/
YEARINJUNE2013,ANDNOWPLANSTOBUILDA
GAS-CENTRIFUGEPLANTINTHEUSA(AMERICAN
CENTRIFUGEPLANT(АСР))WITHACAPACITYOF
3.8MILLIONSWU/YEAR(ATTHER&DSTAGEASOF
THEENDOF2013).
33
3Thevolumesofthemarketsaregivenhereandhereinafterinthefixedpricesof2010.
JSC ATOMENERGOPROM Annual Report 2013- 46 47
2.4.2.Internationalcooperation
In 2013, the international activities ofJSCAtomenergoprom were aimed at building afavourable international legalandpoliticalenvironmentfor the global expansion and establishment of theCompanyasthe leader intheglobalmarketofnucleartechnologies,strengtheningnuclearsafetyandnuclearproliferation resistance, and promoting the Company’sinterestswithinternationalorganisationsandforums.
Intergovernmental and interagency agreements made in the reporting period
Work was continued in 2013 to expand theinternational legal framework for the promotion ofRussian nuclear power technologies around the globe.Thenumberofcountrieswithwhichintergovernmentalagreementsinthefieldofpeacefulusesofatomicenergywereineffectorsignedreached60.
NUMBEROFINTERGOVERNMENTALAGREEMENTSANDINTERAGENCYARRANGEMENTSMADE
IN2011–2013,SHOWNINDYNAMICS
COOPERATIONWITHMAJORPARTNERSINSTRENGTHENINGTHEINTERNATIONALLEGALFRAMEWORKIN2013
Partner countries Results of activities
Hungary AdraftagreementtobuildtwonewPaksNPPunitswaspreparedforsigning.
Finland Adraftofapeaceful-atomcooperationagreementwaspreparedforsigningtosubstitutetheframeworkagreementthatexpiredin2004.
SouthAfrica Adraftagreementonthestrategicpartnershipinthenuclearpowerindustrywaspreparedforsigning.
Mexico Aframeworkintergovernmentalagreementoncooperationinthepeacefuluseofatomicenergywassigned.
USA AnintergovernmentalagreementoncooperationinR&Dofthenuclearandenergysphereswassigned.Itspecifiestheareasofscientificand technical cooperation thatare inkeepingwith the tasks involvedwith the innovativedevelopmentoftheRussianeconomy.ForthepurposeoftheFrameworkAgreementonaMultilateralNuclearEnvironmentalProgrammeintheRussianFederation(MNEPRFrameworkAgreement),dated21.05.2003,theRussian-USIntergovernmentalProtocolandAgreement to the MNEPR Framework Agreement were signed. The Protocol is subject to ratification and hasbeendeliveredtotheRussianGovernmenttobesubmittedtotheStateDumaoftheRussianFederation’sFederalAssembly.
Belarus An intergovernmental agreement was signed concerning the early notification of a nuclear accident and theexchangeofnuclearsafetyinformation.ThiswasaimedatfulfillingtheIAEArecommendationswithrespecttotheconclusionofbilateralormultilateralarrangementsrelatedtotheConventionontheEarlyNotificationofaNuclearAccident.Anintergovernmentalagreementonnuclearsafetycooperationwasalsosigned.ThisisevidenceoftheemphasisplacedbytheRussianFederation,asthecontractorcountryfortheNPPconstruction,onnuclearsafetyissues,anddemonstratesthecapabilityandreadinessofRussiatoprovideassistanceinthecreationofanuclearsafetyinfrastructureinacountrybuildingitsfirstNPP.
Ukraine Anintergovernmentalagreementwassignedontheearlynotificationofanuclearaccidentandtheexchangeofnuclearsafetyinformation,whichaimedatfulfillingtheIAEArecommendationswithrespecttotheconclusionofbilateralormultilateralarrangementsrelatedtotheConventionontheEarlyNotificationofaNuclearAccident.
Armenia An intergovernmental agreement was signed on nuclear safety cooperation. The successful conclusion of thisagreementdemonstratestheprogressofRussian-Armenianrelationsinthefieldofnuclearpower,includingthestrengtheningofnuclearsafetyatMetsamorNPP.
France Duringthe18thsittingoftheintergovernmentalcommission,chairedbytheheadsofstatefromRussiaandFrance,aRussian-Frenchdeclarationwasadoptedonbilateralcooperationinnuclearpower.
SriLanka Amemorandumofcooperationinthefieldofpeacefulusesofatomicenergywassigned.
Israel Amemorandumofcooperationinthefieldofnuclearmedicinewassigned.
Cuba Amemorandumofcooperationinthefieldofnuclearmedicinewassigned.
GreatBritain AmemorandumofunderstandingonnuclearcooperationwassignedwithGreatBritain’sDepartmentofEnergyandClimateChange.
CJSCRUSATOMOVERSEASISASUBSIDIARYOF
JSCATOMENERGOPROMTHATWASFORMED
IN2011FORTHEPURPOSEOFPROMOTING
RUSSIANNUCLEARTECHNOLOGIESINTHE
WORLDMARKET.RUSATOMOVERSEASACTS
ASTHEINTEGRATOROFTHEINTEGRATED
OFFERINTHEFIELDOFNUCLEARPOWER,AND
LEADSTHEPROMOTIONANDDEVELOPMENT
OFRUSSIANNUCLEARBUSINESSINFOREIGN
COUNTRIES.FURTHERMORE,THECOMPANYIS
THEDEVELOPEROFOVERSEASBOO(BUILD-OWN-
OPERATE)PROJECTS.
2011 2012 2013
4 8 8 14 11 7
intergovernmentalagreements
intergovernmentalarrangements
In2013,theRussianFederationalsocontributedsignificantly to the activities of such internationalorganisations as the International Atomic EnergyAgency (IAEA), the OECD Nuclear Energy Agency(OECD NEA), the Council for the Cooperation inthe Field of the Peaceful Use of Atomic Energyunder the Integration Committee of the EurasianEconomic Community (EurAsEC), the Commissionof the CIS Member States on the Peaceful Use ofAtomicEnergy,andtheGroupofEight.
All financial obligations of the RussianFederation, as part of its international activities,werefulfilledinthereportingyear.
Plans and tasks in the extension of international cooperation and influence for 2014 and the mid-term perspective
Plansfor2014:» tofinalisetheprocessingofthecontractdocuments
with India to enable the commencement of theconstructionofKudankulamNPPsUnits3and4
» to sign intergovernmental agreements withHungary,Finland,andUzbekistan
» tocontinuenegotiationswiththeRepublicofSouthAfricaconcerning theextensionof thecontractuallegalframework
» todevelopanintergovernmentalagreementonNPPconstructioninJordan
» todevelopanewintergovernmentalpeaceful-atomagreementwithArgentinaThe major mid-term goals of JSCAtomener-
goprom in terms of international activities includepromotingwithinforeigncountriesandinternation-al organisations an integrated offer of services inthe construction and servicing of NPPs overseas,further evolving the international contract frame-work of cooperation, adhering to the internation-al commitments of the Russian Federation, andstrengtheningnuclearproliferation resistanceandnuclearsafety.
2.4.3.Internationalbusiness
2.4.3.1.TransformationofJSCAtomenergopromintoaglobalnuclearindustryleader
Achieving the global technological leadership innuclearpoweristheobjectiveofJSCAtomenergoprom’sstrategy.Onalong-termhorizon,theplanistoconsi-derably expand the scope of international businessactivities,asdefinedbythe2030targetsoftheCompanyand its organisations (see the Strategy of Activitieschapter).
Integrated offer of the NPP construction and maintenance
The Company’s key competitive advantage inthe global nuclear power market is the integrated
offerofoverseasNPPconstruction,operation,andmaintenance services. As the executive supplierof nuclear technologies, the Company offers anintegrated solution for the implementation of NPPconstruction projects and actively contributes tothedevelopmentofnuclearpowerincountrieswithnoNPPs.
Russian NPP construction projects are ofgeneration III+ and are equipped both with activeand passive safety systems. The NPP units underconstruction use a defence-in-depth concept andfullymeetthepost-Fukushimasafetyrequirements.The multiple successful operations in foreignmarkets prove that Russian nuclear technologiesarehighlycompetitive.
- 48 49 JSC ATOMENERGOPROM AnnualReport 2013
2.4.3.2.2013results
In the reporting year, JSCAtomenergopromcontinued to work actively on expanding its ten-year
portfolio of foreign orders. By the end of 2013, thoseorders had amounted to a total of $72.7 billion (a 9%increasecomparedto2012).
ИНТЕГРИРОВАННОЕПРЕДЛОЖЕНИЕПОСООРУЖЕНИЮИОБСЛУЖИВАНИЮАЭС
ROSATOM, responsibleintegrated
offer supplier
REGULATION AND INFRASTRUCTURE
BACK-END NFC SERVICES
ENGINEERING SOLUTION
HUMAN CAPITAL (KNOWLEDGE, SKILLS)
INDUSTRIAL SOLUTION
FINANCIAL SOLUTION
SAFETY AS THE FUNDAMENTAL CONDITION
GOALS:1 - Maximisation of the share of the project stakeholders on behalf of Rosatom2 - Maximisation of the cumulative financial result
» SNF management services» RW management services» nuclear facility decommissioning services (research reactors, NPP)
» Modern NPP designs (Generation III+)» NPP construction (equipment, construction and installation, commissioning)» NFC products (natural uranium, EUP/SWU, fuel)» Servicing (spare parts and accessories, scheduled maintenance, upgrades)» NPP operation services (Operation and Maintenance)
» Localisation of products and services» Certification of foreign national suppliers» Participation of suppliers in Rosatom’s projects in third countries
» Implementation of BOO projects» State loans» Support from ECA
» Development of scientific and research framework and university education» Training of qualified personnel, including operating personnel» Services for the NPP owner (customer) to build up NPP operation competences
» Development of the legal regulatory framework» Support for the development of required nuclear power infrastructure (power grid infrastructure, NFC facilities, etc.)
TEN-YEARPORTFOLIOOFFOREIGNORDERS(INCLUDINGEXPORTOPERATIONSBYRUSSIAN
ENTERPRISES,NOTINCLUDINGHEU-LEU),$BILLIONUSD
DYNAMICSOFTHEFOREIGNORDERPORTFOLIO
INTEGRATEDNPPCONSTRUCTIONANDMAINTENANCEOFFER
2011 2012 201366.5 50.9 72.7
28.9
24.7
12.9
19
19.5
17.8
13.6
21
34.5
24.2
14.0
19
OverseasNPPconstruction
Uraniumproducts
FAsandotheractivities
PortfolioofoverseasNPPconstructionprojects,numberofunits JSC ATOMENERGOPROM AnnualReport 2013- 50 51
MAP OF GLOBAL PRESENCE
Uranium exploration and mining
Supplies of LEU and uranium enrichment services
Supplies of nuclear fuel and its components
NPP construction
(P) Promising project
(I) Project under implementation 7
1
9
35
20
27
13
14
12
5
2
4
3
366
2911 25 33
15
8
31
18
1637
10
26
21
23
19
17
32
30
22
25
28
3 I
1 P P
P
2 I I I
4 P I
5 P I
6 I
8 I
7 P
36 I
15 I 37 P I
14 I I
16 I
18
27
P I
P
I
10
20 I
21 P
I
I PP 19 9
ArgentinaStudy of the possibilities for implementing Atucha-3 project
ArmeniaNuclear fuel supplies.Preparation of Metzamor-3 construction project for implementation
AustraliaDevelopmentof Honeymoon Deposit
BangladeshPreparation of Ruppur-1,2 project for implementation
BelarusPre-construction activities at Ostrovets-1,2
BelgiumSupply of uranium products
BrazilCooperation with Brazilian companies \s part of the IGA on cooperation in the peaceful uses of atomic energy
BulgariaNuclear fuel supplies for Kozloduy-5,6
CanadaOperation of Uranium One Inc. Headquarters (Toronto)
ChinaSupply of 6 TVS-2M reloads for Tianwan-1,2. Fuel supplies to the experimental fast neutron reactor. Supply of uranium products. Construction of Tianwan-3,4
Czech RepublicNuclear fuel supplies to Dukovany 1-4 and Temelin-1,2.
FinlandNuclear fuel supplies to Loviisa-1,2. Supply of uranium products
FranceSupply of uranium products
Germany Supply of uranium products
HungarySupplies of nuclear fuel for Paks-1,2
IndiaConstruction of Kudankulam-1,2. Preparations for the construction of Kudankulam-3,4. Nuclear fuel supplies for Kudankulam-1,2
Japan Supply of uranium products
JordanBidding for NPP construction
KazakhstanDevelopment of joint ventures AO JV Zarechnoye, AO JV Akbastau, TOO Karatau, TOO JV Betlak Dala, TOO Kyzyl Kum. Implementation of the project to establish the Uranium Enrichment Centre (Russian-Kazakh JV – JSC UEC) under the Alternative Option
MexicoSupply of uranium products
MongoliaImplementation of the Russian-Mongolian intergovernmental agreement on cooperation in natural uranium mining
Namibia
RussiaUranium exploration and mining,conversion and enrichment of uranium products, fabrication of fuel, design and construction of NPPs, machine engineering, generation of heat and electricity, nuclear facility decommissioning, RW and SNF management
SlovakiaNuclear fuel supplies to Mohovce-1,2 and Bohunice-3,4
South AfricaSupply of uranium products
South KoreaSupply of uranium products
SpainSupply of uranium products
SwedenSupplies of regenerated uranium fuel to Oskarshamn. Supply of uranium products
SwitzerlandSupplies of regenerated uranium fuel to Goesgen and Beznau. Supply of uranium products
TanzaniaDevelopment of Mkuju River project
TurkeyPre-construction activities for Akkuyu 1-4
UAESupply of uranium products
UkraineNuclear fuel supplies to Rovno 1-4, Khmelnitsky-1,2, Zaporozhe 1-6 and South Ukrainian 1-3. Construction of a nuclear fuel fabrication plant. Supply of uranium products. Preparations for implementation of Khmelnitsky-3,4 construction project
USADevelopment of Willow Creek Deposit (Wyoming) Supplies of low enriched uranium under the HEU Agreement. Commercial supply of uranium products
United KingdomSupplies of regenerated uranium fuel to Sizewell NPP
VietnamPreparation of Ninh Thuan-1 construction project for implementation
22 P
32 I
23 I I I I
24 P I P
35 I P I
30 I
31 P I
I
I P I
33 I I I
12 I P I I
13 I
11 I P
29 I I
28 I I
25 I
26 I
17 I
JSC ATOMENERGOPROM Annual Report 2013- 52 53
Results of overseas NPP construction
The portfolio of the overseas NPP constructionprojectsaccountedformostofthegrowth,primarilyduetothenewNPPconstructioncontractsthatweremade.Asoftheendofthereportingyear,thenumberofNPPunitsintheCompany’sportfoliowas19.
As of the end of 2013, operations were under wayatconstructionsitesinfivecountries,withatotalof11units under construction: the Akkuyu NPP in Turkey(four units), the Ostrovets NPP in Belarus (two units),two Tianwan NPP units in China (Units 3 and 4), theKudankulamNPPinIndia(Unit2isunderconstructionandUnit1 is in theprocessofapowerstart-up), andthe Ruppur NPP in Bangladesh (two units). Apartfromthis,documentsofentitlementweresignedasof31.12.2013 with respect to eight more overseas NPPunits,including:
» KudankulamNPP(India)–Units3and4;» NinhThuanNPPIinVietnam–twounits;
» KhmelnitskyNPPinUkraine–twounits;» HanhikiviNPPinFinland–oneunit;and» ArmenianNPP–oneunit.
Inthereportingyear,JSCAtomenergopromenteredthe international Russian-designed NPP servicingmarket, for which purpose CJSC Rusatom Service,a specialised company, started its operations at theendof2012.During2013,CJSCRusatomServicesignedcontracts with NPPs in Armenia, Bulgaria, Hungary,China,Slovakia,TheCzechRepublic,and theUkraineforactivitiestobecarriedoutrelatedtomaintenance,repair,upgrading,lifeextension,andpowerascension,aswellasthesupplyofcomponents,spareparts,tools,andaccessories.CJSCRusatomServiceformedapoolof partners, including Russian and foreign suppliersof equipment and maintenance services (over 50companies), to make it possible to respond, in anintegrated way, to requirements and requests fromforeignclients.
The Company’s overseas NPP construction plansApartfromthecurrentNPPconstructionactivities,
theCompany’s2014plansinclude:» powerstart-upoftheKudankulamNPP’sUnit2in
India;» preparationfortheimplementationoftheHanhikivi
NPPconstructionprojectinFinland;» participation in the preparation for the signing of
an intergovernmentalagreement (IGA)concerningcooperationfortheconstructionofandtheexportloaningtofundtheconstructionofthePaksNPP’sUnits5and6inHungary;
» participationinthepreparationforthesigningofanIGAregardingcooperationinNPPconstructioninJordan;
» preparatoryoperationsfor theproject tobuild theRuppurNPP’sUnits1and2inBangladesh;and
» preparationandsigningofthecontracttodevelopadetaileddesignfortheNinhThuanNPP’sUnit1inVietnam.In the mid-term, activities will be continued for
enteringnewmarkets,includingplansforcooperationwithNigeria,Brazil,SaudiArabia,theRepublicofSouthAfrica,Argentina,Indonesia,andMalaysiatopromoteRussian nuclear technologies in these countries. Forthe purpose of concentrating the competencies andresourcesfortheevolutionofbusiness,thelong-termplan is todevelopan infrastructureandanetworkofinternational representation offices that will also beopened in the regions of the Company’s top-priorityinterests.
Results of the Company’s activities in the NFC front-end markets in 2013
Foreign natural uranium market activities
In2013,theassetsintheuraniumminingsegmentwererestructured:thecompanyUraniumOneHoldingN.V. was formed to concentrate overseas assetsat the NFC front end (JSC Atomredmetzoloto willincreasinglyfocusitsactivitiesonthedevelopmentofuraniumassetsinRussia).Atotalof5.086tonnesof
uraniumwasminedbyUraniumOne’sfacilitiesinthereportingyear.
In 2013, the government of Tanzania granted aspecial licence for carrying out mining operations aspartoftheMkujuRiverproject.NegotiationsarestillinprogresswiththeTanzaniangovernmentonthetermsand conditions of the agreement, on the developmentof the deposit, and various other issues that requireregulatoryapproval.
In the reporting year, the Yuzhny Inkay mine inKazakhstan started to operate at full capacity (2.000tonnesofuraniumperyear).
Aspartoftheactivitiestoreducesensitivitytotheuraniumprices,expenditureswerereduced, includingby abandoning the Honeymoon pit in Australia andsuspending the mining output increase at the WillowCreekpitintheUSA.
Nuclear fuel supplies
ThemajoreventsinthefieldofoverseasfuelandFAsupplieswere:
» thesigningofthecontracttoextendthefuelsuppliesfortheDukovanyNPP;
» the signing of the contract to supply fuel andaccessoriesfortheTianwanNPP’sUnits3and4;
» the signing of the contract to supply fuel for thestart-upandfurtheroperationoftheHanhikiviNPP;
» successful completion of the qualification of JSCCMP (a daughter company of JSC TVEL) by theCanadian company Candu Energy Inc. as thesupplier of zirconium pressure tubes for CANDUreactors;and
» thedevelopmentbyJSCAtomenergopromand thepromotiontooperatorsofNPPswithPWRreactorsutilisingnuclearfuelofauniquedesign,knownasTVS-KVADRAT. Its design relies on a significantlevelofexperienceworkingontheVVERreactorFAdevelopment.Thesolutionsusedinthedesignmakethefuelhighlyrobustand increasethecapacityofthereactors.
POSITIONSOFJSCATOMENERGOPROMINTHEINTERNATIONALNPPCONSTRUCTIONMARKET,NUMBEROFUNITS
4
4
1
2
41 2
3
2
2
2
5
4
1
2
12
2
2
2
2
22
2
2
21
2
8
2
2010
2013
IGAsandcontracts Potentialprojects:startofnegotiations/tenderuntil2013
12units
19units
31units
32units
Projectportfolio
Projectportfolio
Tender/negotiations
Potential
Constructionnegotiations,bidding
Argentina
Brazil
RepublicofSouthAfrica
Nigeria
Egypt
SaudiArabia
Jordan
India
Bangladesh
China
Kazakhstan
ArmeniaTurkey
CzechRepublicSlovakia
Hungary
GreatBritain
Finland
Belarus
Ukraine
Vietnam
Malaysia
Indonesia
ONEOFTHEPROJECTSTOBUILDANAUXILIARY
INFRASTRUCTUREINTHEPARTNERCOUNTRIES
FORPROMOTINGITSPRODUCTSANDEXTENDING
THEBUSINESSACTIVITIESISTHEINITIATIVE
TOCREATEANETWORKOFSCIENTIFICAND
TECHNICALCENTRES.THECZECHREPUBLIC
WASSELECTEDASTHEPILOTCOUNTRYFOR
ESTABLISHINGTHESETYPESOFCENTRES.AS
PARTOFTHEPROJECT,ANUMBEROFCONTRACTS
WEREMADEIN2013WITHLEADINGEUROPEAN
OPERATORSOFWESTERN-DESIGNEDREACTORS,
ANDTHECOMPANY’SPORTFOLIOOFORDERS
WASEXPANDEDGREATLY,WHICHSERVESAS
THESTARTINGPOINTFORTHELONG-TERM
EVOLUTIONOFTHECOMPANY.
ON18.10.2013,ATRANSACTIONWASCLOSEDTO
BUYOUTTHE100%STAKEINURANIUMONE.
ASARESULTOFTHATDEAL,89.07%OFTHE
COMPANY’SSHARESWERECONSOLIDATEDAS
THEPROPERTYOFURANIUMONEHOLDING
N.V.,WHICHCONTROLSINTERNATIONALMINING
ASSETSANDPROJECTS.
- 54 55 JSC ATOMENERGOPROM AnnualReport 2013
At the present time, restrictions are in effect forsuppliesofRussianuraniumproducts,includingthosethatareapartofnuclearfuel,totheEUandUSmarkets.Theeconomicbasisforimposingtherestrictionswasthe desire of some European countries to supportdomesticsuppliersofnuclearfuelcycleproductsandservices, which could lose their market positions inan open trade environment, primarily in the marketof uranium enrichment services. In Russia’s opinion,the situation needs to be normalised by reachingarrangementsthatdonotruncountertotheprinciplesoffreetrade.
As requiredby theAISA, restrictionsare ineffectintheUSAforthesupplyofuraniumproducts.In2008,amendments to theAISAweresigned that introducedlimitsfortheRussiansupplyofuraniumproductstotheUSAfrom2011.Thelimitswillbeadjustedin2016and2019bytheUSDepartmentofCommerce.Mostofthesupplyingprocedureswillbeginin2014aftertheHEU-LEUagreementisover.
Export of uranium products
JSCAtomenergoprom completed its supplyagreement with the USA for low-enriched uranium(LEU) obtained by dissolving 500 tonnes of highlyenriched uranium (HEU) that was extracted fromdismantlednuclearwarheads (HEU-LEUAgreement).The LEU shipment schedules and the obligationsof supplying the LEU natural component (NC) toconsumerswerefulfilledinfullandontime;thevolumeofthe2013suppliesamountedtoover$1billion.
On 18 December 2013, the US Energy SecretarysignedadocumentthatguaranteedRussia’scompletefulfilment of its obligations under the Agreementbetween the Government of the Russian Federationand the Government of the United States of America“Concerning the Disposition of Highly EnrichedUraniumExtracted fromNuclearWeapons”,dated18February1993.
See JSC Techsnabexport’s annual report
The Company’s plans in international NFC front-end markets
Miningofnaturaluranium:» activities to optimise the operations by Uranium
One, enhance the efficiency, and cut costs at thecompanylevel
» increase in the volume of mining at the AkbastauandKharasanminesinKazakhstan,asprescribedbyproductionplansAs of the mid-term, Uranium One will continue
working to expand its existing portfolio of assets inKazakhstan and Africa to ensure mining growth forthe next three to five years. Given the capabilities ofUranium One, including a potential increase in theminingvolume inKazakhstanand the implementationoftheMkujuRiverprojectinTanzania,full-scaleuseofthe entire portfolio of assets will make it possible fortheCompanytoincreaseitsminingvolumeby50%ascomparedtothe2013level.
NuclearfuelandFAsupplies:» signingofcontractdocumentsforthefuelsupplies
oftheSlovakNPPsafter2015» supply of the TVS-KVADRAT FA batch for loading
intothePWRreactor» approvalwiththeESAofthecontracttosupplyfuel
totheHanhikiviNPPinFinland
Supplyofuraniumproducts:
» participationinthepreparationandorganisationofexchangeofnotificationswiththeUSside,whichsetthearrangementwithrespecttotheterminationoftheHEU-LEUAgreement
» consultationswiththeUSDepartmentofCommerceonpreparinganewamendmenttotheAntidumpingInvestigationSuspensionAgreement(AISA)
» preparation and exchange of notes with theJapanesesideregardingthemeasuresforcontrolofJapanesenuclearmaterialsinRussia
2.4.3.3.Cooperationwithinternationalnuclearcompanies
Throughout 2013, work was actively under way todevelopstrategiccooperationwithmajorplayersintheinternationalnuclearsector.
INTHEUSA,AGROUPOFAMERICANURANIUM
MININGCOMPANIESINSTIGATEDANANTIDUMPING
INVESTIGATIONIN1991CONCERNINGURANIUM
SUPPLIESFROMTHEFORMERUSSR,INCLUDING
THOSEFROMTHERUSSIANFEDERATION.BASED
ONTHERESULTSOFTHEINVESTIGATION,A
PROVISIONALANTIDUMPINGDUTYOF115.82%
WASINTRODUCEDFORALLURANIUMPRODUCTS
SUPPLIEDFROMEX-USSRCOUNTRIES.THIS
ACTUALLYMADEFURTHEREXPORTIMPOSSIBLE.
THROUGHNEGOTIATIONS,ATRADE-OFFWAS
REACHED,WHICHWASFINALISEDON16OCTOBER
1992,TOGETHERWITHSIXNEWCISMEMBER
COUNTRIES,INTHEFORMOFTHEANTIDUMPING
INVESTIGATIONSUSPENSIONAGREEMENT(AISA).
THEAGREEMENTABOLISHEDTHEPROVISIONAL
DUTY,BUTINTRODUCEDANUMBEROFTOUGH
RESTRICTIONSWITHRESPECTTOSUPPLIESOF
URANIUMPRODUCTSTOTHEUSA,INCLUDING
PARTSOFFINISHEDNUCLEARFUEL.IN1994,THE
ANTIDUMPINGRESTRICTIONSWERELIFTEDFOR
RUSSIA’SENRICHMENTSERVICESUNDERTHE
HEU-LEUCONTRACT(MEGATONSTOMEGAWATTS).
ACCORDINGTOTHEAMENDMENTSTOTHEAISA,
31DECEMBER2020WASAPPOINTEDASTHE
DATEFORTHECOMPLETETERMINATIONOFTHE
ANTIDUMPINGINVESTIGATIONANDTHEAISA.
2011 2012 2013 2011 2012 20133,388 3,219 3,046
EXPORTOFURANIUMPRODUCTSBYJSCATOMENERGOPROM,MILLIONUSD
REGIONALBREAKDOWNOFURANIUMPRODUCTSUPPLIES,%
1,009
2,330
1,033
2,186
1,002
2,044
50
HEU-LEU USAOther Asian-Pacific
Commercialsuppliesofuraniumproducts
WesternEurope Africa
44 48 43
2 121 15 10
33 36 47
COOPERATIONWITHINTERNATIONALNUCLEARCOMPANIESIN2013
International partner Result of cooperation
Toshiba,Japan On18.04.2013,anadditionalagreementtotheGeneralFrameworkAgreementonBusinessCooperationbetweenJSCAtomenergopromandToshibaCorporation,dated20.03.2008,wassigned,whichdefinedthenewfieldsofcooperation.
Fortum,Finland;Rolls-Royce,GreatBritain
On 05.09.2013, as part of the development of cooperation with Great Britain (with theFortumandRolls-Roycecompanies),acooperationagreementwassigned,underwhichthecompanieswillinvestigatethefeasibilityofaRussian-designedNPPtobebuiltandoperatedinGreatBritain.
AREVANP,France AspartofthecooperationbetweenJSCTVELandAREVANP,nuclearfuelandcomponentswerefabricatedatJSCMBP,usingregenerateduranium,forthePWRandBWRreactors.InSeptember2013,alsoaspartofthecooperation,aceremonyofhandingoverthe3.000thfuelassemblytotheconsumerwasheld.
NuclearFuelStateConcern,Ukraine In 2013, the development of design documentation was completed, an endorsement wassecuredastheresultofastateexpertreview,andthepracticalon-siteoperationsenteredtheactivephaseaspartofthepreparatoryperiod.TheprojectisimplementedbasedonPJSCNuclearFuelFabricationPlant,ajointUkrainian-Russianventure.
Fennovoima,Finland A contract was signed with Fennovoima, Finland to supply nuclear fuel for Hanhikivi I, anewnuclearplant,andalsoproviderespectiveservices.ThecontractstipulatessupplyingtheTVS-2006cartridgesforHanhikivi’sinitialfuellinganditsten-yearoperation,withthepotentialforthatoperatingtimetobeextended.
JSCNAKKazatomprom In2013, implementationof theUraniumEnrichmentCentre (UEC)projectwasstartedaspartofthearrangementsbetweenthepresidentsofRussiaandKazakhstan,asspecifiedintheIntegratedProgrammesofRussian-KazakhCooperationintheFieldofPeacefulUseof Atomic Energy, including provisions for the acquisition by JSC UEC, a Russian-Kazakhventure,ofa25%+1shareintheauthorisedcapitalofJSCUEIP.Aspartoftheactivities,thejointventurewillhaveaccesstouraniumenrichmentservicesofupto5millionSWUperyear.
JSC ATOMENERGOPROM Annual Report 2013- 56 57
2.5.Nuclearandradiationsafety
The mid-term and long-term tasks of JSC Atom-energopromrelatedtoensuringnuclearandradiationsafety of nuclear installations, personnel, the public,and the environment are regulated by the Long-Term Programme of Activities by the Rosatom StateCorporation (Russian government resolution No. 705,dated20.09.2008).
2.5.1.Nuclearandradiationsafetyofnuclear
installations
In 2013, the Company’s management bodiesand departments ensured the sustainable and safeoperations of the nuclear industry. There were noradiologicalaccidentsoroverexposureincidents.
In2013,therewerenoeventsofLevel2orhigher(ontheINESscale)attheCompany’ssites.Noeventsclassifiedasaccidentsor incidentsontheINESscalehavetakenplaceintheRussiannuclearindustryforthepast15years.
Nuclear plants
TherewerenoeventsclassifiedoveraLevel2ontheINESscaleatRussianNPPsin2013.
Altogether,41deviationswererecordedatRussianNPPunitsthatwereinoperationin2013.Therewere40deviationsatthe“0”/“below-scale” level,andonedeviationwasclassifiedasLevel1,withnoimpactonthepublicortheenvironment.
As compared to the two previous years, thenumberofdeviationscausedbyfailuresofelectricalcomponentsdecreasedinthereportingyear(12casesin2013,17casesin2012,and20casesin2011).Thisdecrease was the result of implementing actualisedindustry-generic measures to upgrade and replaceexpiredelectricalengineeringcomponents.
The number of unscheduled reactor trips froma critical state at Russian NPPs that involved theactuationofemergencyprotectionwas10in2013.
In 2013, there were no nuclear incidents thatinvolved radiological impacts within the scope ofNP-004-08, Provisions for the Investigation andAccounting of Nuclear Plant Malfunctions. RussianNPPs operated safely and reliably, with a generaltrend maintained towards improving the safetyofNPPs.
2.5.2.Physicalprotectionofnuclearand
radiation-hazardousinstallations
Security and physical protection of the Company’snuclearandradiation-hazardousinstallations(NRHIs),andofthenuclearandradiationmaterialsinuseorinstorage,includingthoseintheprocessoftransportation,
is ensured in accordance with Russian regulatoryrequirements. The activities aimed at ensuring thereliablephysicalprotectionoftheCompany’sNRHIsarecarriedout inanintegratedmannerandonaplannedbasis.
All NRHIs within the industry have valid nuclearlicences,whichisevidencethatthemandatorylicensingprerequisite (ensuring the required level of physicalprotection)issatisfied.Nocasesoflicencecancellationhavebeenrecordedtodate.
Therewerenosuccessfulcasesofnuclearmaterialtheftorunauthorisedintrusionintotherestrictedareaforactsofsabotage.
2.5.3.Readinessforemergencyresponse
Toensurethesafeoperationofnuclearinstallationsandtoprotectthepersonnel,thepublic,andlocalitiesagainst potential accident (emergency) effects, anemergency prevention and response system is inoperation within the industry. This is a functionalsubsystem of the national emergency prevention andresponsesystem.
The readiness level of forces and means, as wellas the completeness and realism of the emergencyresponseplans,isassessedasapartoftheCompany’sexercisesanddrills.In2013,therewere271emergencyresponse, special tactical, and command and staffexercises and drills conducted within the industry,including70conductedatnuclearplants.
2.5.4.Industryautomatedradiationsituation
monitoringsystem(ARMS)
One of the most important components of thesystemforthestatecontrolofradiologicalconditionsintheNRHIdeploymentareasistheindustryautomatedradiationsituationmonitoringsystem(ARMS),whichis
operatedaspartoftheRussianFederationUnifiedStateAutomatedRadiationSituationMonitoringSystem.
TheARMSiscomprisedof26on-siteARMSsystemsoperated by nuclear enterprises and organisations,includingallNPPs,with355fixedpostsintotal.Long-term measurement data indicates that the NPPcontribution to the measured background radiation isnegligiblysmallduringnormaloperation,andthattheradiological conditions at the measurement locationsarewithinthenaturalbackgroundradiationrange.
TheARMSradiationmonitoringdataispubliclyavailableinrealtimeonthewebathttp://www.russianatom.ru/.
2.5.5.Safetyoflabour
Workplace injuries
Extensive work is carried out withinJSCAtomenergopromanditsorganisationstoreducethe number of workplace injuries and the negativeeffectsofharmfulproductionfactorsonpersonnel.
In2013,theoccurrencerateofworkplaceinjurieswithinthenuclearindustry(thecoefficientKrreflectsthe number of workplace injury cases per 1.000employees)wasnot inexcessof therespective2012figure,andwasapproximately4timeslowerthanthenationalaveragelevel.
2.5.6.ExposureoftheCompany’spersonnel
AproductionfactorspecifictoJSCAtomenergoprom’sfacilitiesisionisingradiation.
The personnel radiation safety criteria are statedand set in effective radiation safety regulations(RSR-99/2009), basic sanitary radiation safety rules(BSRSR-99/2010), and other regulatory documents.Mostofthesitesmeettheserequirements.
Personnel exposure doses
The annual average effective dose (AAED) of thepersonnelexposurewithinthe industrywas1.67mSv,withnomajorAAEDvariationshavingtakenplaceoverthepastfiveyears.
No cases of the specified base dose limits5 beingexceededwererecordedintheindustryin2013.Annualeffective doses in the range of 20 to 50 mSv werereceivedby19persons.
The personnel do not include people with acumulativeeffectivedose4ofover100mSvforthepastfive consecutive years. For approximately half of the
THESAFETYSTATUSOFNUCLEARINSTALLATIONSISASSESSEDBASEDONTHENUMBERANDTHESCALEOFTHEMALFUNCTIONSRECORDED,ASCOMPAREDTOTHEIAEA-DEVELOPEDINTERNATIONALNUCLEAREVENTSSCALE(INES).THISSCALEHASSEVENLEVELSOFEVENTCLASSIFICATION:THEUPPER-LEVELEVENTS(LEVELS4TO7)AREREFERREDTOAS“ACCIDENTS”,WHILETHELOWER-LEVELEVENTSAREREFERREDTOAS“INCIDENTS”(LEVELS2AND3)OR“ANOMALIES”(LEVEL1).THEEVENTSCONSIDEREDTOBEOFMINORSAFETYSIGNIFICANCEARECLASSIFIEDASBELOW-SCALE(LEVEL0)EVENTS.EVENTSTHATDONOTRELATETOSAFETYARECONSIDEREDTOBE“OUTOFSCALE”.
UNDERTHE2012–1014INDUSTRYAGREEMENT
ONNUCLEARPOWER,INDUSTRYANDSCIENCE,
EMPLOYERSWITHINTHENUCLEARINDUSTRY
FUNDACTIVITIESTOIMPROVETHECONDITIONS
ANDTHEPROTECTIONOFLABOURATTHEIR
RESPECTIVEFACILITIESINANAMOUNTOFNO
LESSTHAN0.5%OFTHETOTALMANUFACTURING
COSTS.
COMPARATIVEDATAOFWORKPLACEINJURIESINRUSSIAANDWITHINTHENUCLEARINDUSTRYFROM2003–2013
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Russia
Rosatom
4ThedoselimitforpersonnelinGroupAis20mSvperyearonaverageforanyfiveconsecutiveyears,butnomorethan50mSvperyear.
3.9
3.4
3.12.9
2.72.5
2.1 2.2 2.2 2.1 2.0
1.3
0.81 0.83 0.84 0.84 0.81 0.880.69
0.820.57 0.51
- 58 59 JSC ATOMENERGOPROM AnnualReport 2013
personnelintheindustry(53%),theexposurewasnotinexcessofthebasedoselimitspecifiedforthepublic(1mSv/year).
Estimated individual personnel risk
In 2013, the ARMIR system (Automated systemto measure individual radiation risks) was usedat nuclear sites to estimate individual radiologicalrisks. This work is aimed at further optimisingthe radiological protection of personnel and atimproving the efficiency of medical insuranceto direct it at named assistance to persons in ahigh-riskgroup. In2013,using theARMIRsystem,personal data of 91% (91.4% in 2012 and 90.4% in2011) of the total workforce subjected to personalradiation monitoring was processed. The relativenumber of people with a high individual risk was1.25%(1.3%in2012).
2.5.7.Publicexposure
According to data from the radiological andmedical certification in Russia in 20125, the extraoccupationalexposureinthenuclearplantdeploymentareas (with a total population of 2.3 million) was0.004 mSv/year per person. The risk of negativestochastic effects (malignant tumours) at such anexposure level was below 5.7·10–7. This is 150 times
lower than the acceptable risk level set by effectiveradiationsafetyregulations(1.0·10–5).
In2012,theaverageannualeffectivepublicdoseofexposure fromallsourcesof ionisingradiation inRussia amounted to 3.9 mSv/year per person. Thekey factors of this public exposure in the RussianFederationarenaturalandmedicalsourcesofionisingradiation. The contribution from the enterprisesusingnucleartechnologiesisestimatedathundredthsofonepercent(0.04%or0.002mSv/year)oftheannualaverage effective exposure dose from all sources.This level of public exposure dose is representativeof all localities where large radiation-hazardousfacilitiesaredeployed.
0.04enterprisesusingnuclear
technologies
0.22 technogenicbackground
CONTRIBUTIONOFDIFFERENTSOURCESTOTHEANNUALAVERAGEPUBLICEXPOSUREDOSE
INTHERUSSIANFEDERATIONIN2012,%
5Atthetimeofthereportcompilation,theresultsofthe2013radiologicalandmedicalcertificationwereintheprocessofbeingpreparedforpublication.TheywillbepublishedbyRospotrebnadzorintheautumnof2014.
PERSONNELEXPOSUREIN2003–2013,MSV/YEAR
Collectiveexposuredoseforpersonnel,Person*Sv Theannualaverageeffectivedoseofthepersonnelexposure,mSv
2003200220012000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
3.25
2.78
2.84
2.50
2.45
2.28
2.24
2.10
2.01
1.74
1.72 1.76
1.7
1.67184.6 192.3
172.1 168.4 156.9 155.4 153.3 143.7122.3 120.7 120.2 116.3 113.0
85.3 naturalsources
14.44 medicalsources
206.2
- 60 61 JSC ATOMENERGOPROM AnnualReport 2013
3EFFICIENCY OF CAPITAL MANAGEMENT
64 3.1. MANAGEMENT OF FINANCIAL CAPITAL
67 3.2. MANAGEMENT OF MANUFACTURED CAPITAL
70 3.3. MANAGEMENT OF HUMAN CAPITAL
76 3.4. MANAGEMENT OF SOCIAL AND REPUTATIONAL CAPITAL
84 3.5. MANAGEMENT OF NATURAL CAPITAL, ENVIRONMENTAL SAFETY,
AND PROTECTION OF THE ENVIRONMENT
3.1.Managementoffinancialcapital
The management of the financial capital includesimplementation of the financial strategy, managementofinvestmentoperations,andperformanceofactivitiesto improve the efficiency of financial and economicoperations.
3.1.1.Managementoffinancialactivities
The prime objective of the financial strategy isto ensure the financial stability of the Company andits organisations in the changing conditions of theenvironment, as well as to organise financing andthe management of financial risks as efficiently aspossible.
To improve the efficiency of treasury functions,thefollowingactivitieswerecontinuedin2013:
» concentrationoftemporarilyredundantcashontheaccountsofthepoolleaders;
» improvingtheaccuracyofpaymentplanning(rollingpredictionofliquidity);
» ensuringthecostoftheconsolidateddebtportfolioservicingatacompetitivelevel;and
» centralising the treasury operations (fulfilment ofthefinancialpolicyrequirements).
Key results of 2013
Thetop-prioritytasksin2013werethoseinvolvedin raising the efficiency of cash management withinJSCAtomenergoprom’sorganisationsdueto:
» theaccuracyofmanagerialdecisions;» increasingtherateofmanagerialdecision-making;
and» reducing the labour input in the delivery of
information.
Corporation Settlement Centre, a treasuryinformation system encompassing 127 nuclearenterprises, was commissioned in 2013. The use ofthe information system has contributed to greatlyreducingthelabourinputintheformationoftreasurymanagement reports, as a result of which theprocess of collecting and consolidating reports fromsubordinateorganisationswasfacilitated.
To ensure the liquidity for the timely and overallfinancing of the investment programme of nuclearorganisations under the best possible terms andconditions,worktocentralisethetreasuryoperationsand develop intra-group financing, which began in2009–2010,wascontinued in thereportingperiod. In2011–2013,theeconomiceffectfromtheutilisationofintra-groupfinancingacrosstheindustryamountedtoapproximately9.8billionroubles.
Toreducethecostofdocumentaryoperationsandloans,suretyshipscontinuedtobeusedtosecurethereturnontheadvanceandthecontractualobligationswhen carrying out procurement operations usinginternal and extra-budgetary funds, as well as toreducethecostoffundraising.Thesesuretyshipsledtoensuredsavingsin2013onthecommissionpaymentsunder bank guarantees and on loan interests in theamountof1.6billionroubles.
Financial management plans for 2014 and the mid-term
Given theexistingriskof thedebt load togrowasaresultofexternalfactors,itisplannedto:
» maintainadistinctrepaymentdisciplineintermsofintra-groupfinancing;
» improve the accuracy of mid-term cash flowplanning;
» avoid internal competition between organisationsfortheloanresources;
» continue activities for centralising cash flowmanagement;
» focus on the relationships with the base banksthat are the most reliable partners based on theavailabilityoffunding,bothintermsofamountandcost;and
» strictly adhere to the obligations, including thefulfilmentofcovenants, towardsexistingcreditors(including on the Company’s co-loan) and ratingagencies.
3.1.2.Interactionwithratingagencies
The ratings of JSC Atomenergoprom mirror theratingagencyexpectationsofa“veryhigh”probabilitythattheholdingwillreceivetimelyandsufficientstatesupport, if required. Furthermore, the company’ssolvency is positively influenced by its verticallyintegratedbusinessmodel,bytheguaranteedmonopolyintheciviliannuclearindustryinRussia,andbyitsfirmpositions in the NPP construction, uranium mining/conversion/enrichment, and fuel assembly fabricationmarkets.
EFFICIENCY OF CAPITAL
MANAGEMENT
Given the capacity of the industry’s investmentprogramme,highratingsareessential for loanstobeacquiredforlongertermsandatlowermarketrates.In2011–2013,thesavingsonthefreecreditportfoliorateamountedto270–350millionroublesannually.
3.1.3.Managementofinvestmentactivities
Approachtoinvestmentmanagement:
» collegial decision-making on investments byRosatom’s Investment Committee and by theinvestment committees of the divisions (the leveloftheinvestmentdecision-makingdependsontheproject’sstrategicimportance);
» formation of the yearly and mid-term ProjectPortfolioasapackageofnuclearprojects,anditsannualactualisation;
» supervision,atthelevelofJSCAtomenergoprom,oftheprojectprogresswithinnuclearorganisations;
» decision-making on the milestones for majorprojects, and the supervision of projectimplementationatthelevelofJSCAtomenergoprom;
» useofa“gating”approachfortheimplementationandsupervisionofprojects;and
» collection of expert opinions for improving thequalityofinvestmentdecision-makingasapartofmajorprojects.
Key results of 2013:
» theProjectPortfoliowasactualisedfortheindustry’sorganisationsforaperiodlastinguntil2018
» theefficiencyoftheProjectPortfoliowasassessed,whichhasmadeitpossibletosetthelevelofrequiredprofitabilityfromprojectsandtomakeinvestmentdecision-makingmoretransparent
» a motivation system was developed to promotetheimprovementoftheProjectPortfolioefficiencyindicators, with target key efficiency indicatorsof investment activities set for the industry’s topofficials
» a mechanism was defined for the integratedauditingofprojects,whichmakesitpossibletoformrecommendations on improving project planningand implementation; a field feasibility study wasalso conducted regarding project implementationandpost-investmentsupervision
» aunifiedindustryinvestmentsystemwasintroduced» a unified industry project decision-making
interaction procedure was put into operation forgoverning,amongotherthings,theproceduresforand the duration of functional expert reviews, aswellasformakingitmandatorytotakeintoaccounttheopinionsoffunctionalexpertsandofthepartiestakinginterestinthegivenproduct.
LISTOFJSCATOMENERGOPROM’SCREDITRATINGSASOF31.12.2013
Rating agency Rating level
Standard&Poor’s » Long-terminternationalrating–BBB» Short-terminternationalrating–A-2» Nationalrating–ruAAA» Ratingoutlook–Stable
Rating confirmation date: 21.10.2013.
FitchRatings » Long-termissuerdefaultforeign-currencyrating–BBB» Long-termissuerdefaultlocal-currencyrating–BBB» Short-termissuerdefaultforeign-currencyrating–F3» Nationallong-termrating–ААА (rus)» Short-termissuerdefaultlocal-currencyrating–F3» Ratingoutlook–Stable
Rating assignment date: 20.08.2013
Moody’sInvestorsService/JSCMoody’sInterfax » Long-terminternationalrating–Baa2» Nationalrating–Ааа.ru» Ratingoutlook–Stable
Rating assignment date: 02.08.2013
MAJORAREASOFINVESTMENTSIN2013
Major areas of investments
MiningDivision » developmentoftherawmaterialbaseandnaturaluraniummininginRussia» leadershipinuraniumminingandprocessingtechnologies» diversificationintostrategicandinnovativematerials
UraniumОneHolding » developmentoftheglobalrawmaterialbaseandnaturaluraniumminingbasedonaglobalgrowthplatform
JSC ATOMENERGOPROM Annual Report 2013- 64 65
Plans for 2014 and the mid-term
The short- and mid-term plans provide forthe undertaking of measures aimed at improvingthe efficiency of the Project Portfolio through thedevelopment of the design documentation qualitymanagementandimprovementsystem,including:
» development(detailingandmoreaccuratedefinition)of regulatory and procedural documentation ondesign management processes, along with theformalisationofresponsibilitiesindesignactivities;
» standardisationoftheinvestmentdecision-makingprocessforprojectsatdifferentprojectstagesandfordifferentprojecttypes;
» perfectionofthesystemforcontrolofthetargetedinvestments,particularlyintermsofefficientuseofsaidinvestmentsintheprojectscope;
» replication of the decision on automating theinvestmentreportingsystem;
» establishment of a single investment and designmanagementknowledgestore;
Major areas of investments
FuelDivision » supportandoptimisationofthenuclearfuelfabrication» supportandoptimisationoftheseparationandsublimationactivities» R&Dindevelopmentofnewnuclearfueltypesandthefuelcycle» R&Dindevelopmentandperfectionofgascentrifugesandnewauxiliaryequipmentmodelsfor
separationfacilities» developmentofnon-nuclearproductionactivities
Salesandtrading » developmentofanindustrytransportinfrastructure,includingthepurchaseof30V-typecasksforthetransportationofuraniumproductsasapartofformingacorporatetransportequipmentfleet
» safetyoftranshipmentandtransportationofuraniumproducts» perfectionoftheinformationprotectionsoftwareandhardwarepackage» organisationofaremotebackupsystem
MachineBuildingDivision » improving the competitiveness of nuclear enterprises based on an integrated efficiencyimprovementprogramme
» development of manufacturing competencies in the heat power, gas, and petroleum chemistrysectors
» implementationofretrofitprogrammes
PowerEngineeringDivision » constructionofNPPunitsandtheconstructionoffloatingnuclearcogenerationplants» implementationofprojectsandactivitiesateffectiveNPPunitsforextendingthelifeofgenerationI
andIIunits,theprogrammeentitled“EnsuringSafeandSteady-StateOperationofEffectiveUnits”» implementationofspentnuclearfuelandRWhandlingprojects» implementationofotherinvestmentprojectsandactivities,includingR&D,planning,andsurveying
activitiesfornewNPPsites,amongothers
Overseasconstruction » providingconstructionsiteswithrequiredhigh-capacitymechanisms,aswellaswithbuildingandassemblyimplementsandtools
» formationanddevelopmentofaffiliatedinfrastructuresatnewNPPconstructionsitesandatthecompanyheadquarters
» purchaseofequipmentandtechnologyforsurveyingoperations,monitoringofconstruction,andoperationoftheprojectattheconstructionsite
» developmentofthetelecommunicationandITinfrastructure,purchaseofadvancedsoftwarefordevelopingkeydesignandengineeringcompetencies
» extension of competencies in the construction of complex engineering projects by purchasinginterestsinbuildingcompanies
ConstructioninRussia » constructionsiteequipmentforconductingconstructionandassemblyoperations» formationofaffiliatedinfrastructuresofnewNPPconstructionsites» replacementoffixedassetsforincreasingtherateofconstruction» developmentoftheITinfrastructureandsoftware,R&Dforimprovingthequalityofproducts,and
aphasedtransitiontoindustrialconstructionpractices» completionofsociallyimportantfacilitiesregionally» extensionofproductioncompetenciesandobservanceoffederalsafetylaws
*Outofallthesourcesoffunding,notincludingintra-groupturnoverswithinRosatom’sorganisations,fortheconsolidatedorganisationsinaccordancewiththeeffectivebudgetingscopeasof31December,asreducedtocomparableconditions.
FUNDINGVOLUMESFORINVESTMENTACTIVITIESWITHINTHECOMPANY’SORGANISATIONSIN2013
Actual volume of project funding*, billion roubles, VAT included
ElectricPowerDivision
9.1 46.4 27.8 1.20.2 1.84.8 236.6
Min
ing
D
ivis
ion
Fuel
D
ivis
ion
Ove
rsea
s
Cons
truc
tion
Sale
san
dTr
adin
g
Cons
truc
tion
in
Rus
sia
UraniumОneHolding
Mac
hine
Bui
ldin
gD
ivis
ion
» improvementofthecompetenciesoftheinvestmentanddesignstakeholders;and
» adjustment of the current processes and thecompletion of the current base of regulatoryand procedural documents related to the aboveadjustments.
3.2.Managementofmanufacturedcapital
3.2.1.Improvementofenergyefficiency
Energy saving and the improvement of energyefficiency is a top-priority activity that contributes toincreasedcompetitivenessofnuclearorganisations inthe target markets through a reduction in the cost ofproductsandservices.
Tostreamlinetheactivities intendedtoreducetheexpenditures on energy resources and improve theenergy efficiency of nuclear organisations, a numberof regulatory documents were developed to provideenterprises with a single procedural framework,given the requirement for defining the mechanismsand algorithms to calculate the amount of the energyresourcecostreduction.Aspartoftheactivitiestobuildasystematicapproachtoimprovingtheenergyefficiencyoforganisations,unifiedtargetvaluesweredevelopedfor a five-year period (2010–2015) and mechanismswereidentifiedtoachievethepresetparameters.
Approaches to improving energy efficiency within the industry
To identify the potential key areas of energyefficiency,withregardtotherequirementsofRussianFederalLawNo.261-FZ,energysurveyswereconductedin2010–2013withinallnuclearorganisations.Theresultof the surveying activities was that the ProgrammeforEnergySavingandEnergyEfficiency Improvementwithin Nuclear Organisations for the Period of 2012–2016wasdeveloped.
To improve the reliability of the data obtainedfrom organisations concerning the saving of energyresources,monitoringoftheenergy-savingprogrammeprogress, and the assessment of the efficiency ofthe measures taken, an automated energy efficiencymanagementsystem(referredtoasAEEMShereinafter)has been introduced within JSC Atomenergoprom’sorganisations, which, among its other key functions,provides for the integration of data with the EnergyEfficiencyStateInformationProgramme.
In2013,theAEEMSwasputintopilotoperationat38sitesofJSCAtomenergoprom,including:
» thePowerEngineeringDivision–10sites(allNPPs);» theFuelDivision–11sites:» theMachineBuildingDivision–7sites;» overseasconstruction–1site;and» constructioninRussia–2sites.
A 22.2% reduction in the cost of energy resource
consumption in 2013, as compared to 2009, the baseyear,wasachievedasaresultofinvestmentactivities.The total savings in 2010–2013 amounted to 13.9billion roubles, while the investments made in theimplementationofmeasuresbynuclearorganisationsforthepurposeofenergysavingandenergyefficiencyimprovementtotalled9.2billionroubles.
Introduction of the energy management system within organisations
To improve the quality of energy cost reductionand energy efficiency improvement management, anenergy management system has been in place sincemid-2012withinJSCAtomenergoprom’sorganisationsbased on the requirements of ISO 50001:2001, anew international standard. As a result, in 2013,Rosenergoatom underwent a certification procedurewithDQS,aninternationalcertifier.WorkisalsounderwaytorestructuretheenergymanagementsystematJSCTVELaccording to therequirementsof theabovestandards.
Plans for 2014 and the mid-term
Thefirstenergyauditwasconductedin2010–2013and encompassed 113 nuclear organisations. Anotherenergyauditisexpectedtobeconductedin2015–2016forthepurposeofaccomplishingthefollowingtasks:
» developing a new energy certificate for fuel andenergyconsumers;
» acquiring objective data on the amount of energyresourcesusedbyconductinganassessmentofthefuelandenergyconsumptiondynamics;
» supervising the measures taken and updatingthe existing energy saving and energy efficiencyimprovement programme, taking into accountthe reorganisation of enterprises, as well as thereconstructionofthemainprocessequipment;
» determining variations in the indicators for theperiod following the previous energy survey, as
MAJORCONSUMERSOFENERGYRESOURCESWITHABREAKDOWNBYTHECOMPANY’S
MAJORDIVISIONS,2013% of overall energy consumption costs
JSCTVEL JSCARMZ
JSCConcernRosenergoatom
JSCAtomenergomash
46.2 % 5.2 % 3.5 % 45.1 %
JSC ATOMENERGOPROM Annual Report 2013- 66 67
MODELFORMANAGINGTHETOTALCOSTOFOWNERSHIPOFDURABLEEQUIPMENTINTHENFCANDNPPLIFECYCLE
wellasanassessmentofthefuelandenergycostreductionforthegivenperiod;
» an in-depth audit of selected processes andenergy consumers, and the introduction of newtechnologies and solutions in the field of energyefficiencyimprovement;
» determiningtheenergysavingandenergyefficiencyimprovementpotential;
» developing individual five-year energy efficiencytargetsforeachenterprise;
» developing a list of the energy saving and energyefficiencyimprovementmeasures,acostestimationforthese,andthecalculationofthepaybackperiodsforthesaidmeasures;and
» determining the correctness of the physical dataentry in the AEEMS, and reviewing the targetachievement calculation techniques approved byorganisations.
3.2.2.ManagementoftheNFCandNPPlifecycle
The purpose of the NFC and NPP lifecycle projectmanagementistoprovidesupportfortheachievementof JSC Atomenergoprom’s goals by implementing theCompany’s policy that enables decisions to be madebasedontheincomeandcostestimationforthewholeof the lifecycle, themanagementof theNFCandNPPlifecycleprojects,and theorganisationof interactionsamongallNFCandNPPlifecyclestakeholders.
In 2013, the launch of the Lifecycle ManagementSystem(LMS)required:
» themajorfieldsofactivitiestobeidentified;» the pilot project selection criteria for the LMS
introductiontobespecified;» the pilot project objectives, tasks, performance
requirements, and completion dates to bedetermined;
» proposalsconcerningthesystemformanagingtheintroductionoflifecycleapproachestobedeveloped;and
» proposalsonITsolutionstobedevelopedinordertosupportandensureprojectimplementation.The selection of pilot projects was based on
the principles of maximum readiness, actuality,potential economic efficiency, and replicationcapability (incorporation into the decision-makingand information interaction organisation system). Aspart of this selection, the technological and economicframeworks for the pilot projects were elaborated,includingtheproductlifecyclemanagement(PLM)andtheminimisationofthetotalcostofownership(TCO).
Theintroductionofthelifecycleprojectmanagementsystem is based on analysing the global experience,proceeding from the identified “gaps” in the existingorganisational and business models, as well as fromthe requirement for adjusting the existing rules andprocedures, building a system of motivation, definingtherequirementsofchangeinthesystemofinteractionsamongtheCompany’sdivisionsandfunctions,shapingcompetencies, and replicating the results of pilotprojects.
Operated equipment
New equipment
CONCEPT,PRE-DESIGN DESIGN TCORODUCTION OPERATION WITHDRAWAL FROM
OPERATION
PRINCIPLE: REDUCTION IN THE TOTAL COST OF OWNERSHIP (TCO) OF THE FACILITY’S EQUIPMENT (SUBSYSTEMS) AND THE FACILITY AS A WHOLE;TOOL: SYSTEM OF DECISION-MAKING FOR INCREASING THE COMPETITIVENESS OF FACILITIES (ICUF INCREASE, CONSTRUCTION COST REDUCTION, PROFITABILITY INCREASE, AND RELIABILITY AND SAFETY IMPROVEMENT);EFFECT: THE COMPANY’S VALUE INCREASES THANKS TO THE TCO REDUCTION AND THE GROWTH OF COMPETITIVENESS.
Cost reduction thanks to energy efficiency of new equipment Repair time reduction, ICUF increase thanks to reduction
Major results of the NFC and NPP lifecycle management activities in 2013
In the reporting year, the results of implementingmeasures as part of the following pilot projects wereselectedandapproved:
» PilotProject1-“ManagementoftheEquipmentTCO.Introduction of MCP 1753 and the Contract for ItsSupply,AssemblyandMaintenanceforKurskNPPII”;
» PilotProject2-“OptimisationoftheVVERFuelTCO”comprisingtwosubprojects:– “ValidationoftheOptimisedIsotopeComposition,
FuelCyclesandBurn-upofVVERNuclearFuel”;– “ValidationoftheVVERFuelREMIXApplication”;
and» PilotProject3-“SelectionofNPPSubsystemsfor
ImprovingtheCompetitivenessthroughtheUseoftheNPPLifecycleCostManagementTool”.Fortheintroductionofthenuclearindustrylifecycle
managementsystem,thedecisionwasmadetoestablishanNPPlifecycleinformationsupportcompetencycentrebasedononeoftheindustry’sorganisations.
NFC and NPP lifecycle management plans for 2014 and the mid-term:
» completion in2014ofPilotProject2“Optimisationof the VVER Fuel TCO”: assessment of optionaluses for theSNFprocessingproducts in thermal-
neutron nuclear generation, and the integrationof the nuclear fuel cost management model intoadynamicnuclearplantcostmodel
» finalisationofthedynamicnuclearplantcostmodel,which makes it possible to estimate the total costof NPP ownership, the efficiency parametersdepending on the operating cycle electricity rate,andthecostoffunding
» finalisation and scaling within the industry ofa standardised decision-making process basedon the estimated total cost of ownership and thespecific expenditures per unit of product in theoveralllifecycle
3.2.3.Managementofprocurement
To ensure the openness and informationtransparency of the procurement activities, theCompany’stechniquesinclude:
» unifiedrules, includingthoseforthecalculationofinitial (maximum) prices, the review of bids, andcalculationoftheextenttowhichtheprocurementstakeholdersareprovidedwithfinancialresources,aswellasmodelprocurementdocumentations(alldocumentsarepubliclyavailable);
» anincreaseintheshareofcompetitiveproceduresinanelectronicform;
» applicationofthere-auctionprocedureintenderingformalities;
VALUECHAINFORTHENUCLEARFUELLIFECYCLE
ADDED VALUE CHAIN
FEEDSTOCK MARKET TECHNOLOGY MARKET
FA
EUP
Geological prospecting/mining
Techsnab-export
TVEL (Enrichment)
TVEL(Fabrication)
UHF
PR
OD
UCT
S
SA
LE
S
NATURAL URANIUM
Conversion
Enrichment
Fabrication
Fuel processing
ARMZ
NFC FRONT END
SWU
Conversion
Resources/Uranium mining licences
Fabrication and components
JSC ATOMENERGOPROM Annual Report 2013- 68 69
» possibilityofalternativebids;» determinationoftheinitial(maximum)priceinthe
currentyearattheactualprioryear’spricelevel;» classificationofdraftcontracttypes;» classificationofbiddocumentformtypes;» classification of procurement documentation
types for order placement procedures anddocumentations;
» classification of procurement procedure protocoltypes;
» uniform selection and assessment criteria that isapplicabletoeachstakeholder;and
» conclusionoflong-termcontractswithafixedcostfortheentiretyofthecontractvalidityperiod.Thebasicdocumentthatregulatestheprocurement
activities of a nuclear organisation is the UnifiedIndustryProcurementStandard(ProcurementBylaw),which was approved by a decision of Rosatom’ssupervisoryboard.
3.3.Managementofhumancapital
The major goals of JSC Atomenergoprom in themanagementofhumancapitalare:
» to raise the Company’s attractiveness as theemployer, both to university graduates and toexperiencedspecialistsandexecutivestaff;
» implement,attheindustrylevel,uniformcorporatepolicies for efficiency management, carriermanagement,andexecutivestafftraining;
» trainthestaffreserveforexecutivepostsatdifferentlevels,and
» increasethepersonnel’sinvolvementlevel.The major processes aimed at increasing the
efficiency of nuclear personnel management ser-vices are: automation of staffing processes, de-
termination of the key performance indicators forpersonnel management service leaders, unificationof the personnel management service organisation-al structures, and control of the personnel manage-ment transaction processes within a shared servic-ing centre (SSC). These processes will contribute toa more than 20% increase in the personnel servicestaffperformanceby2015.
The average number of JSC Atomenergoprom’spersonnelin2013was100.7thousand.
The average age of the company’s industrial andproduction personnel is 42.8, and the average age ofexecutivestaffmembersis46.7.
Inthereportingyear,theshareofpersonnelunder35yearsofagewas30.7%.
Thenumberofpersonneldismissedinthereportingperiod was approximately 19.600, including 5.000dismissalsastheresultofoptimisationactivities.
Thepersonnel turnover,excluding thosedismissedas a result of the optimisation activities, was 19.42%in2013.
3.3.1.Remunerationsystemandsocialpolicy,
includingsocialsecurityofpersonnel
In 2013, the personnel expenditures totalled 99.6billion roubles, and the average expenditures peremployeeamountedto988.800roublesperyear.
Single standardised remuneration system
Thecorporate(industry)remunerationsystemcovers:» performance remuneration: strengthening the
dependencebetweenthematerialremunerationofpersonnel and their performance and consequentmeeting of key performance indicators. The KPIsfortheexecutivestaffmembersaredevelopedwithafocusonachievingthecompany’sstrategicgoalsand the KPIs set by Rosatom State Corporation’ssupervisory board. The strategic tasks, to whichorganisations and enterprises are assigned, are
Executivestaff Workers
Specialistandofficestaff
37.136.8%
14.914.8% 48.7
48.4%
99Industrial
andproductionworkers
1Non-industrialstaff
AVERAGENUMBEROFJSCATOMENERGOPROM’SPERSONNELIN2013,THOUSANDPERSONS
SHAREOFJSCATOMENERGOPROM’SINDUSTRIALANDPRODUCTIONWORKFORCEIN2013,%
100.7
transformedintoKPIchartsforparticularexecutivestaffmembersandaredisseminatedtothelevelofdepartments and individual employees. IndividualKPIcharts,basedonaunifiedcorporatestandard,have been developed for about 11 companyexecutives;and
» adecent levelof remuneration for labour: in2013,the monthly average wage per one employee atJSC Atomenergoprom was 61.760 roubles permonth. The average wage within the Company is55.6%higherthantheaveragewageacrossRussia(accordingtodatafromtheFederalStateStatisticsService, the average payable wage in December2013intheRussianFederationwas39.700roublespermonth).
Implementation of social policy
The Company’s social policy is aimed at achievingthefollowinggoals:
» increasingtheattractivenessoftheCompanyasanemployer;
» therecruitmentandretentionofyoungprofessionalsandhighlyskilledstaff;
» increasingpersonnelinvolvement;and» improvingtheefficiencyofexpenditures.
The social package for employed and retired staffmembers is based on the Single Industry Social Policy(SISP)guidelinesbasedonstandardisedcorporatesocialprogrammes(referredtoasCSPhereinafter).EachCSPis implementedwithregardtothestaffingobjectivesofeachorganisation,aswellastheirfinancialcapabilities.
Compensation and benefits are only provided aspart of CSPs to full-time personnel. The personnelremuneration and benefit standards suggest equalconditions for all staff members employed througha contract of employment with the industry’sorganisations,notwithstandingtheemploymenttermsandconditions.
Thetotalsumofsocialexpendituresforpersonnelamountedto4.2millionroublesin2013.
18Insurancepayments
78Payrollbudget
1Otherpersonnelexpenditures(includingtraining)
3Socialexpenditures
STRUCTUREOFJSCATOMENERGOPROM’SPERSONNELEXPENDITURESIN2013,%
MAJORCORPORATESOCIALPROGRAMMESOFJSCATOMENERGOPROM,MILLIONROUBLES
Corporate social programmes
2011 2012
2013 results
2013 Comments
Voluntaryhealthinsurance,millionroubles
626.2 531.4 545.4 Thevoluntaryhealthinsurancesystemcovers79.4thousandpersonnel(78.8%ofthepersonnelemployed)
Accidentandhealthinsurance,millionroubles
0.0 31.0 27.0 Accidentandhealthinsuranceprovidedfor64.4thousandpersonnel(64%ofthepersonnelemployed)
Healthresorttreatmentservicesforpersonnelandtheirchildren,including:
200.2 264.9 406.4 –
healthresortandrehabilitationtreatment,millionroubles
152.9 202.9 337.3 8.8thousandpersonnelprovidedwithhealthresorttreatmentandrehabilitationservices,including:–7.0thousandpersonnelprovidedwithhealthresortservicesand–1.8thousandpersonnelprovidedwithcorporateresthomeservices.
children’shealthresorttreatmentandrecreation,millionroubles
47.3 62.0 69.1 Healthtreatmentandhealth-improvingrestservicesprovidedto3.5thousandchildrenofpersonnel.
2011 2012 2013
41.4 37.8 41.9
AMOUNTOFSOCIALEXPENDITURESPEREMPLOYEEOFJSCATOMENERGOPROM,THOUSANDROUBLES
JSC ATOMENERGOPROM Annual Report 2013- 70 71
Corporate social programmes
2011 2012
2013 results
2013 Comments
Personnelhousing,billionroubles
92.3 126.5 190.8 Today,9.7thousandpersonnelarecoveredbytheprogramme,ofwhich2.481hadtheirhousingconditionsimprovedin2013,including50.3%ofyoungprofessionals(ascomparedto37.6%in2012).
Non-statepensionpayments,millionroubles
201.0 233.0 275.4 Atotalof43.8thousandpersons(43.5%ofemployedstaff)arecoveredbythenon-state pension payment programme, including 17.4 thousand who hadjoinedtheschemeonaco-fundingbasisbythebeginningof2014.
Supportofretirees,millionroubles
1,032.3 951.8 1,113.0 There are over 60 thousand pensioners registered within the industry’sorganisations.Healthresorttreatmentserviceswereprovidedto1.5thousandpensioners.0.6thousandpensionerswereprovidedwithcorporateresthomeservices.1.536pensioners were provided with one-time retirement payments. The averageamountofpaymentsperpensionerexceeded138.5thousandroubles.28.5 thousand pensioners are paid monthly state pension supplements. Themonthlypensionsupplementamountstoanaverageof1.2thousandroubles.48thousandpensionerswereprovidedwithwelfareassistance.
Personnelcatering,millionroubles
328.2 157.6 20.4 Over 3.2 thousand personnel are provided with meal allowances. A sharpdecreaseinexpenditureshasbeencausedbythewithdrawalofcateringservicesfromthecorporatebalance.
Organisationofsportandculturalevents,millionroubles
459.7 377.1 377.3 Everyyear,some1.3thousandpersonneltakepartincorporateandinternationalcompetitions. Over 11.3 thousand personnel (11.2% of those employed) areinvolvedinathleticprogrammesonaregularbasis.
Personnelrelief,millionroubles
518.4 321.5 846.1 In 2013, over 19.3 thousand personnel were provided with relief payments,a decrease of 6.7 thousand from the 2012 figure (due to the introduction oftransparentreliefcriteria).Atthesametime,theexpendituresincreasedbyafactorof2.6,whichwastheresultoftheminimumreliefsumhavingbeenintroducedandofanincreaseinthereliefpaymentamountaddedtothebasepaymentsinthecaseofchildbirth,thedeathofcloserelatives,deathofpersonnel,orseverediseases.
Other,millionroubles 643.8 760.5 416.4 Includesawiderangeofsocialbenefits(medicalservicesunderdirectcontracts,compensation of the health resort treatment package cost to the employee’srelatives,inducementsinconnectionwithawarding,etc.),aswellastheexpendituresformaintainingthesocialinfrastructurefacilitiesandtaxpayments.
Total: 4,102.1 3,755.3 4,218.2
In2013,toensuretheunityofthenuclearindustrymanagement, the Unified Industry ProceduralGuidelines were developed and put into operation fortheexpertassessmentofdraftsoftheunioncontracts.Unioncontractscover81.4%ofthoseemployedwithinnuclearorganisations.
TheminimumtermfornotifyingJSCAtomenergo-prom’s personnel on any major changes to theCompany’s activities is defined by Article 74 of theRussianFederationLabourCode.Accordingtothelaw,the notification term is two months prior to the datethatthegivenchangetakesplace.Nootherpersonnelnotification term is defined in the nuclear power,industry,andsciencebranchagreementfor2012–2014;however, paragraph 1.3 stipulates that any union andlabour contract terms and conditions that make thesituationworseforpersonnel,ascomparedtoRussianlawandtheindustryagreement,areinvalid.
3.3.2.Improvementofpersonnelmanagement
efficiency
ImplementationofthekeyKPIsinthefieldofnuclearpersonnelmanagementfor2013included:
» an increase in the share of the appointments ofpeoplefromthestaffreservefrom20.2%to28.5%;
» introduction of a standard for the formation oforganisational structures within the industry’sorganisations;
» simplificationoftheorganisationalstructures:- areductioninthemanagementlevel,depending
on theorganisation’sactivityandstaffnumber,fromseventofourmanagementlevels;and
- an increase in the efficiency of administrativework (the span of control extended from 5.4subordinatestaffper1leaderto7.75);
» establishment of functional verticals andimprovement in the efficiency of interactionsbetweenthemanagementlevelswithintheindustry;
» switchover of 9 enterprises with a workforce of23 thousand to a target IT system (SAP HR). Theoverall workforce transferred to the industry ITsystem is over 50 thousand. The processes beingcomputerisedinclude:personnelandtime-keepingrecords, payroll preparation, organisationalmanagement,andperformancemanagement(KPIsandcompetencyassessment);
» transferof18enterpriseswithatotalworkforceof23.5thousandtothepersonnelmanagementSSCinchargeoftransactionstaffingprocesses;
» successful optimisation of the personnelmanagementcostsbyasumof200millionroublesin2013,thankstotheautomationandthetransfertotheSSC;
» formation of individual KPIs for 19 thousandexecutivestaffin2013;
» trainingofapproximately3.000employeesaspartof standard managerial competency developmentprogrammesin2013(ascomparedto2.000in2012);
and» areductionintheoperatingcostsforthepersonnel
management function by 200 million roubles in2013thankstotheautomation,standardisationandcentralisationofpersonnelmanagementprocessesand the transfer of transaction processes to theSSC.
Personnel incentive system. Carrier management
Formation and development of the executive staff reserve
The formation of the executive staff reserve isoneofthetoppriorities inthenuclear industry’sstaffdevelopmentsystem.
Thestaffreserveprovidesforthecontinuityoftheindustryvaluesandexpertise,andtheevolutionofthemanagementsystem,whilealsocontributingtogreaterstaffloyaltywithinJSCAtomenergoprom.
Asoftheendof2013,thetotalpooloftheexecutivestaffreservewas369(0.37%oftheaverageexecutive,specialist,andofficestaffamount).
Integrated executive staff reserve developmentprogrammesareimplementedbasedontheCorporateAcademy of Rosatom, an autonomous nonprofitorganisation. In 2013, 15.7% of those involved in thestaffreserveprogrammesreceivednewappointments.
Non-financial incentives
The unified industry award policy is one of themost important components in the non-financialincentive system. In 2013, 30 staff members ofJSC Atomenergoprom had state and governmentawards conferred upon them for their respectivecontributions to the evolution of the nuclear industry,nuclearandradiationsafety improvements, increasednuclearelectricitygeneration,andglobaltechnologicalleadership.
In 2013, 5.157 Russian nuclear industry staffmembers were awarded for professional excellence,greatindividualcontributionstotheachievementofthenuclear industry’s top-priority objectives, and a longhistoryofdedicatedservice.
3.3.3.Personneltraining
Training and advanced training
The personnel competencies within JSC Atom-energopromanditsorganisationsaredevelopedaspartofintegratedmanagerialstaffreservedevelopmentandmultiple-levelexecutivetrainingprogrammes,functional
training,andadvancedtrainingprogrammes;mentoringschemes;andarangeofindustryworkshopsandtrainingcoursesconductedbyoutsidetrainingsuppliers.
The training and development programmes havebeen developed for different management levels andactivitiescarriedoutbynuclearindustrypersonnel.
Thepersonnelreceivetraininginavarietyofformsthat are based on efficient development techniques,including classroom training, participation in projects,on-the-job training, self-training,mentoring, coaching,andotherstrategies.
Classroom training is provided by the industry’seducational establishments, such as the CorporateAcademyofRosatom,theCentralInstituteforAdvancedTraining,andtheNationalResearchNuclearUniversityMEPhI(MoscowEngineeringPhysicsInstitute),aswellasbyleadingconsultingandtrainingcompaniesinRussia.In2013,26.410 industrypersonnel received trainingattheindustry’seducationalestablishments.
The average level of expenditures for training oneemployee in the nuclear industry was 3.260 roublesin 2013. On average, an employee within the industryreceives29to64hoursoftrainingperyear,dependingontheindividual’smanagementlevel.
Mentoring is a special component of the nuclearstaffdevelopmentsystem.Itisusedinthestudentandprobationercareerguidanceprocess,atthenewcomeradaptationstage,inexecutivestaffappointmentswithina higher management level, and in the developmentof potential successors. The total number of mentorswithintheindustrywasover200in2013.
Industry development programmes suggestintermodularsupportandtraining,includingparticipation
NUMBEROFTRAININGHOURSPEREMPLOYEEWITHABREAKDOWNBYMANAGEMENTLEVELS,
2013
Top
Senior
Middle
First-line
Specialiststaff
36
64
50
50
29
NUMBEROFEXECUTIVESTAFFRESERVE
Levels of executive staff reserve Development programme Number of people involved as of the end of 2013
Senior PatrimonyofRosatom 65
Middle CapitalofRosatom 139
First-line TalentsofRosatom 165
Total 369
JSC ATOMENERGOPROM Annual Report 2013- 72 73
in cross-divisional projects and self-training. In 2013,in a partnership with Russian publishers, a corporatee-library, known as “Rosatom Leader Library”, wasformed; it contains over 100 e-books and businesseditions.SinceSeptember2013,articlesonmanagementissues have been published for industry personnel inpartnershipwithaleadingbusinessmagazine.
Interaction with universities
In the reporting year, an educational association,theConsortiumofBaseUniversitiesforRosatomStateCorporation, continued its activities. It unites 14 job-oriented higher vocational educational establishmentstraining personnel for the nuclear industry. The baseuniversitiescoverover49%(42%in2012)oftheindustry’sdemand for young professionals. Together with theCorporation, the association’s member universitiesconsideredtheproblemsinvolvedintheindustryorder
placementforthetrainingofnuclearspecialiststaff.The industry’s innovative development programme
suggestsamajorscalingofjointresearchactivitieswiththe job-oriented universities. By 2020, the share of theR&Dorderfundingforuniversitiesisexpectedtoamountto10%ofRosatom’stotalR&Dfunding,whichisequivalentto4.3billionroubles.Since2009,apositivegrowthtrendhasbeenobservedinthedynamicsofRosatom’sportfolioofR&Dordersforjob-orienteduniversities.
Staffing of organisations with young professionals
The employment of university graduates withinthe nuclear industry’s organisations was monitoredin 2013. In 2013, 907 people were employed withJSC Atomenergoprom’s organisations (795 in 2012).A forecast for the period until 2012 was also made intermsofthedemandoforganisationsfortherecruitment
ofspecialiststaffwithhigherandsecondaryvocationaldegrees. A tool was built to model the developmentdynamicsoftheyoungprofessionallabourmarket.Themostsought-afterprofessionsinwhichspecialistsaretrainedwere listed.Offeringon-the-jobtrainingwithintheorganisationsofJSCAtomenergopromtostudentsofjob-orienteduniversitieswascontinuedinthereportingyear.In2013,3.217universitystudentsreceivedon-the-jobtraining(3.180in2012).ProbationtrainingwithintheenterprisesofJSCAtomenergopromwasalsoreceivedby 152 postgraduate students and university facultymembers(87in2012).
Given the existing demand for professional trainingwithin the organisations of JSC Atomenergoprom,459 people enrolled in 76 universities in 2013 (443 in2012).The totalnumberofstudentswhowerereceivinguniversitytrainingin2013aspartoftargetordersfromtheorganisationsofJSCAtomenergopromamounted to761(779in2012).Therewere340peoplewhoreceivedtrainingthatwaspaid forbyvariousorganisations (214 in2012).Theamountofin-housefundsspentbyorganisationsforthetargetuniversitytrainingofstudentsamountedto31.86millionroublesin2013(23.05millionroublesin2012).
TheorganisationsofJSCAtomenergopromactivelyuse the opportunities offered by the extra vocationaluniversity training system. In 2013, 3.302 employeesof JSC Atomenergoprom’s enterprises underwentprofessional retraining or advanced training at auniversitylevel(2.110in2012)andapproximately72,98million roubles were spent for the training services(103,16millionroublesin2012).
Therecruitmentandretentionofgiftedyoungpeoplewithin thenuclear industry, aswell as the improvementandpromotionofjob-orientededucation,aresignificantlyaided by initiatives on annual tenders for awarding 150scholarships (each one of 5.000 roubles per month) touniversity students trained in the professions that aremostindemandwithinthenuclearindustry,aswellasforawarding100prizes(of100.000roubleseach)totalentedandpromisingyoungscientistsemployedwithinnuclearorganisations.
In2013,aforecastwasmaderegardingtheevolutionoftheyoungprofessionalmarketwithintheindustryfor
EXPENDITURESFORR&DWITHUNIVERSITIES,MILLIONROUBLES
DYNAMICSOFCHANGESINTHENUMBEROFFOREIGNSTUDENTSRECEIVINGNUCLEARTRAINING
INTHERUSSIANFEDERATION(THROUGHROSATOMSTATECORPORATION/
JSCATOMENERGOPROM),PEOPLE
2009 2010 2011 2012 2013 2014 ... 2020200
46 307 472 702
550 739 810 877 900 4,300
2010 2011 2012 2013 2014168
JSC ATOMENERGOPROM AnnualReport 2013- 74 75
theperioduntil2015,andatoolwasbuiltformodellingthedevelopmentaldynamicsoftheyoungprofessionallabourmarket.Thelevelofthespecialiststaffemploymentintheindustry-specificjobareasisexpectedtoincreaseto75%by2020(ascomparedto35%in2011).
A study on the demand for the training of youngspecialiststaffmembersinthemostsought-after(target)professions,under industryevolutionconditions,showsfourfoldgrowthinthedemandforpersonneltraininginthe period of 2010–2015, including 2.500 highly skilledstafftobetrainedduringthatfive-yearspanfortheR&DsectorofRosatomandJSCAtomenergoprom.
International cooperation in education
The system of exporting Russian nucleareducation to potentially interesting markets forJSCAtomenergopromcontinuestobeformed.Russianuniversitiesprovidenucleartrainingtoforeignstudents,such as at the National Research Nuclear UniversityMEPhI, as well as its branch department in Obninsk(387 persons), and its partner universities. In 2013,472 Vietnamese, Turkish, Mongolian, and JordanianstudentswerestudyingatRussianuniversities.
3.4.Managementofsocialandrelationshipcapitalcapital
Management of social and relationship capitalsuggeststheestablishmentofstructuralinteractionswithstakeholders,raisingthepersonnelinvolvement
level, contributing to shaping public acceptance ofnuclear technology evolution, brand management,and the development of JSC Atomenergoprom’soperationalareas.
3.4.1.Interactionswithstakeholders
3.4.1.1.Approachestointeractionswithstakeholders
Due to the scale and diverse nature of itsactivities,JSCAtomenergopromhasabroadrangeofstakeholdersbothinsideandoutsideRussia.Focusedrelations with stakeholders are primarily aimedat achieving the company’s strategic goals and atcontributingtothepublicacceptanceofnuclearpowerevolution.
The philosophy of interactions is based onrespecting and taking into account the stakeholderinterests, open prolific cooperation, timely and fulldisclosure of information concerning the Company’sactivities,thedesiretoensureparticularbenefitsforallstakeholders,andthefulfilmentofone’sobligations.
Duetothewidevarietyofmajoractivities(uraniummining, NPP construction, electricity generation,fabrication of fuel, power engineering, and others),as well as of auxiliary activities (internationallegal cooperation, legislative activities, etc.),each activity has its own stakeholders; therefore,JSC Atomenergoprom establishes systemic andplanned interactions with them. Meanwhile, someof JSC Atomenergoprom’s activities are aimed atcollaborating with all stakeholders and the publicatlarge.
International organizationspromoting standards
Training organisations Expert
community (Russia)
International expert community
Government bodies of other countries
Professional associations
Scientific organisations
Local self-government bodies
Mass media
Local communitiesPublic
organisations
Rating agenciesand market analysts
Public environmentalorganisations
Top management of subsidiaries and associates
Top management of the Corporation
Corporation’s personnel, including subsidiaries and associates
Trade union organisations Government bodies of the Federation’s subject territories
Consumers of products, goods, and services on the Russian market
Suppliers of equipment
Business partnersin the global market
Consumers of products, goods, and services in global market
State supervising authorities
State as the only founder and investor
State as the regulator of activities
9,18,17,16,15,14,13,12,11,19,08,07,05,0 6,04,03,02,01,0 2,01,00,0
2,0
1,9
1,8
1,7
1,6
1,5
1,4
1,3
1,2
1,1
0,9
0,8
0,7
0,6
0,5
0,4
0,3
0,2
0,1
1,0
STAKEHOLDERRANKINGMATRIX
(Х) Impacts of the Corporation’s activities on stakeholder
(Y
) S
tak
eh
old
er
imp
acts
on
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orp
ora
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act
ivit
ies
СОЦИОЛОГИЧЕСКИЕИССЛЕДОВАНИЯОБЩЕСТВЕН-НОГОМНЕНИЯ
ОБЩЕСТВЕННОЕМНЕНИЕОРАЗВИТИИАТОМНОЙЭНЕРГЕТИКИВРОССИИ
INTERACTIONSWITHSTAKEHOLDERENGAGEMENT
1 – 15 B C E F G
1 2 4 6 7 10 B C N
2 6 10 14 B C E F
2 14 C E F G K
1 2 6 7 10 A K
3 5 8 12 15 D K
5 7 10 K L
3 5 6 7 8 9 11 K
5 6 7 8 10 12 K MP Q
6 13 15 F D K O
2 10 14 C E G K
6 10 13 15 F D I E
14 C E F G H K
3 13 15 D J
3 5 8 10 K
5 10 12 K
1 2 4 6 10 11 14
3 K O
H
O
O
O
H O
G
Government bodies of the Russian Federation
State supervising authorities
Regional government bodies
Local self-government bodies in the operating areas
International organisations, including in the nuclear sector
Rosatom’s organisations
Producers and suppliers of equipment and services
Consumers of technologies, products, and services
Business partners
Professional associations
Public, including environmental organisations
Local communities in the operating areas
Training organisations
Financial institutions
Rating agencies, market analysts, and experts
Citizens of the Russian Federation
Scientific organisations
Employees of the Corporation and its organisations, as well as organisations representing their services
Stakeholder interests
Non-proliferationofnuclearmaterialsandtechnologies
Faircompetitionandresponsiblemarketbehaviour
Decentremunerationforpersonnelandprofessionalgrowthofemployees.Safelabourconditions
Nuclear,radiation,andenvironmentalsafety Competitivenessinworldmarkets Improvementoflivingstandardsinthe
operatingareas
Upgradingofnuclearindustry Improvementinthequalityofproductsandservices
DevelopmentofAtomenergoprom’sstaffingpotential
EfficiencyofbudgetspendingTransparencyofAtomenergoprom’sactivities,includingtransparencyofprocurement
EconomicefficiencyofRosatom’sorganisations Reliableelectricitysupplies
AdherencetointernationalandRussianlaw
Introductionofinternationalregulationsandstandards
Types of interactions with stakeholders
Cooperationwithdesignatedinternationalorganisations,participationininternationalprogrammesandprojects
Charitableactivities Programmesofcooperationwithothercompanies
Participationinlegislativeactivities Publicsurveys,usersatisfactionstudiesProgrammesofcooperationwithgovernmentsupervisingauthoritiesandlawenforcementbodies
PublichearingsandpublicenvironmentalexpertreviewsforNPPconstructionprojects
Hotlines Publicmanagementandsupervisingbodies
Personneltrainingandadvancedtrainingprogrammes
Programmesofcooperationwithjob-orienteduniversities Awarenessandcommunication
Socialprogrammesandprojects Dialogues,presentations,forums,andconferences Publicreporting
Participationinthedevelopmentofoperatingareas Publicandcompetitivetenderprocedures
JSC ATOMENERGOPROM Annual Report 2013- 76 77
3.4.1.2.Communicationsandawareness
In 2013, communication and awareness activitieswerecarriedoutwithrespecttotwoobjectives:
» improving the public acceptance of nuclear powerevolutioninRussiaandothercountries;and
» explainingthestrategyoftheCompanyasaglobaltechnologicalleaderthatoffersinnovativesolutionsnot only in nuclear power, but also in nuclearmedicine,materialtechnology,spaceexplorations,energysavings,andsafetyimprovement.
Direct external communications
Public Council
The Public Council of Rosatom State Corporationwas formed in 2006 for the stated purpose of havingRussianpublicandprofessionalassociations,scientificorganisations, and local self-government bodiesinvolvedinthedevelopmentofnucleardecision-makingguidelines.
In 2013, the Public Council continued to activelycarry out numerous activities concerned with thesafeusesofatomicenergy.Thefollowingeventswerestagedinthereportingyear
» the 8th International Public Forum Dialogue,entitled Atomic Energy, Society, Safety, Moscow(200 delegates, 9 countries, and 22 publicorganisations);
» the 6th Regional Public Forum Dialogue, entitledNuclearGeneration,Society,Safety,St.Petersburg,(150delegatesand15publicorganisations);
» three technical tours, including members of thepublic,toRussiannuclearsites;
» fivescientificandpracticalconferencesandroundtables for education and health workers, as wellasforthepublicinnuclearinstallationdeploymentlocalities;
» two research paper contests involving scientistsand university/school students (Energy of Future
Generations, International Contest of ResearchPapersontheEnvironmentalProblemsofNuclearPower);
» an open public competition among nonprofitorganisations related to the development andimplementation of socially significant projects fornuclear installationdeployment localities (in2013,over193projectsfrom29regionsweresubmittedforthecompetition,ofwhich127wereacceptedbythePublicCouncil);and
» thepublicationofsixreferenceandpopular-sciencebooksandbookletsaspartoftheproject,entitledLibrary of the Public Council, including IAEA’sbooklet,CommunicationwithPublicinaNuclearorRadiologicalEmergency.
Atomic energy information centres
Since 2008, a project has been under way withinthe industry to set up atomic energy informationcentres(AEIC)intheoperatingareasoftheCompany’sorganisations(www.myatom.ru).
The primary tasks of the centres are thedissemination of basic knowledge about the nuclearindustry,publicawarenessactivities,andthepromotionof science, innovative technologies, and technicaleducationtosecondaryschoolstudents.
The first of these centres was opened in Tomsk.Today,thisinformationnetworkinRussiaincorporates17informationcentres.
InDecember2012, the first foreigncentresbeganoperations in Hanoi, Vietnam and in Mersin, Turkey.In 2013, an information centre was opened in Dhaka,Bangladesh.
Over the course of five years, the centres havereceivedoveronemillionvisitors,includingmorethan344.000in2013.Visitorstothecentresareabletowatchmultimediaprogrammesonnuclearpower,astronomy,and regional geography, and can also take part inartistic,educational,andawarenessprojects.
TheysaythatRussiawillhaveexhausteditsoilandgasresourcesin20years.Whatdoyouthinkmight
substitutetheseasenergysources?(%ofrespondents)
Howdoyouthinknuclearpowershouldbetreated:developedactively,maintainedatthesamelevel,phased
out,orabandonedabsolutely?(%ofrespondents)
coal hydraulicresources
atomicenergy
other hardtosay developedactively
maintainedatthesame
level
phasedout abandonedabsolutely
hardtosay
9.1
21.3
39.9
6
23.8
30.8
39.5
14.5
4.810.4
ThesurveywasconductedbytheLevadaCentre,aRussiannon-governmentalpublicopinionpollagency;itisbasedonarepresentativeselectionofRussia’spopulation(1.601peopleaged18yearsorolder)andwasconductedinSeptember2013.
PUBLICOPINIONSURVEYSPUBLICOPINIONONTHEEVOLUTIONOFNUCLEARPOWERINRUSSIA
AEIC-based nuclear education projects
In 2013, a number of AEIC-based traditionaleducationalprojectsweresuccessfullyimplemented.Inthereportingyear,thefederalawarenessprojects,entitled Energy of Science and Science and Sports:Full Contact, were implemented for the first timeby the AEICs. As part of Energy of Science, over700 residents of Chelyabinsk, Vladimir, Smolensk,Ulyanovsk, Tomsk, and Rostov-on-Don could takepart in the events conducted by Russian sciencepromoters.
Overfivethousandschoolanduniversitystudentstook part in the AEIC-based federal awarenessproject, Science and Sports: Full Contact, whichwas sponsored by the Russian sports ministry andJSCAtomenergoprom.Theparticipantsintheprojectattended the AEIC-based Olympic classes, whichinvolved both scientists and athletes, and met withthelegendaryice-hockeyplayerVladislavTretyak,aswell as renowned athletes Olesya Vladykina, UlyanaDonskova,andGlebGalperin.
In 2013, as is tradition, the AEICs held the 8thAll-Russian Research Paper and Abstract Contestfor School and University Students, entitled NuclearScienceandTechnology.
Inthereportingyear,itwasthefirsttimethattheinformation centres acted as partners for the All-RussianFestivalofScience. InSt.Petersburg’sAEICalone, the festival’s events (public lectures, cinemaclubs, scientific shows, and artistic contests) wereattendedbyover2.500schoolstudents.
Forsazh-2013 forum
The 3rd Young Generation Innovative Forum,Forsazh-2013,washeld in theKalugaRegion from30June to 6 July 2013. The total number of participantsandvisitorsexceeded700.Youngemployeesofnuclearenterprises were in high attendance at the forum.The programme was divided into the Innovative,Global, Energopolis, and Information sectors. For aweek, young professionals of JSC Atomenergoprom’sorganisations and partner companies attendednumerous master classes and business games, took
Murmansk
Kaliningrad
St. Petersburg
SmolenskMoscow
VladimirNizhny Novgorod
YekaterinburgUlyanovskVoronezh
Rostov-on-Don SaratovChelyabinsk
Novosibirsk
Tomsk Krasnoyarsk
- acting- preparing to open
Petropavlovsk-Kamchatskiy
Hanoi (Vietnam)
Dhaka (Bangladesh)
Mersin (Turkey)
Minsk (Belorussia)
ATOMICENERGYINFORMATIONCENTRES
DYNAMICSOFTHEAEICOPENING
1 3 8 15 19 212008 2009 2010 2011 2012 2013
- 78 79 JSC ATOMENERGOPROM AnnualReport 2013
partincasestudies,anddefendedprojectsbeforetheleaders and representatives of leading Russian andforeign companies, competent experts, analysts, andscientists.
Innovations Train
Theyear2013saw thecontinuationof InnovationsTrain, an information and enlightenment projectimplementedjointlywithJSC“RussianRailways”.ThisisauniquemobileexhibitionandlecturecomplexthatreceivesvisitorsacrossRussiawhile travellingon thecountry’s railways. Of particular interest were NPPsafety improvement designs developed by Russianscientistsandengineers,includingamelttrap,reactorcontrolandprotectionrods,andthecontainmentarea.The operation of these strategies was demonstratedwith the aid of interactive teaching modules. Afterthe tourof theexhibition,everyvisitorcouldmeasurehis/her radioactivity using a multipurpose radiationdetector.
In 2013, the Innovations Train covered a total ofnearly72.000kilometres,visiting123townsandcities;the exposition was seen or visited by over 148.000people.
Forums and exhibitions
В2013годуОАО«АтомэIn2013,JSCAtomenergo-prom took an active part in awareness and displayactivitiesbothinsideandoutsideRussia.
A very special event was the 5th InternationalExhibition ATOMEXPO-2013, which was held 26–28June2013 inSt.Petersburg, in tandemwith the IAEAMinisterial Conference. This defined ATOMEXPO’smajor topic Nuclear Power in the 21st Century:ResponsiblePartnershipforSustainableDevelopment.Theforumwasattendedbydelegationsof42countriesandrepresentativesfrom153corporateexhibitors.Theforum’sbusinessprogrammeattracted791delegatesfrom 275 organisations. A number of internationalagreements were signed as part of the forum todemonstrate and prove the efficiency of internationalcooperation.
The major topic of the 7th International ForumAtomExpo-2013 (30–31 October 2013, Moscow) wasNuclearPowerasaZero-DamageStrategy,whichdefinedthe agenda of the business programme discussions.The forum was attended by about 1.000 representativesfrom 18 countries. As part of the business programme,reportsweredeliveredby296Russianandforeignleadersand experts. Accomplishments by 31 companies weredisplayedaspartoftheexhibitionandtheforum’sbusinessprogrammewasalsocomprisedof10breakoutsessions.
The international forum of nuclear suppliers,ATOMEX-2013, (2–4 December 2013, Moscow) wasmarked by a highly topical business programme,includingthankstosmallandmediumbusinessesbeinginvolvedintheprocurementactivities,andthankstotheimprovementintheefficiencyofprocurement;extensionof the number of suppliers, including messages ofthanks to the small and medium businesses involvedintheprocurementactivities;andtheimprovementin
the efficiency of procurement. A great deal of interestwas shown by the delegates in the customer-supplierbusiness meetings (in a B2B format), which had beenorganised for the first time as part of the forum. Theforumwasattendedbyover630representativesfrom322companiesthroughoutRussia,Belarus,Germany,Spain,Ukraine,Finland,France,CzechRepublic,andJapan.
Internal communications
Involvement level studies
Aseriesofinvolvementstudieshavebeenconductedwithinthenuclearindustryforthreeyears(2011–2013).Since2011,thenumberoftheparticipatingorganisationshasgrown from45 to57, thanks toagreater interestintheindustry’senterprisesanddivisionsinthegiventool(including32enterprisesofJSCAtomenergoprom).Theseenterpriseshaveaworkforceof200.000people,
ofwhichover42.000takepartinthesurveyseachyear.The following activities were undertaken during
thethree-yearperiod:
» eight awareness days were conducted at216 nuclear organisations (of which 67 areJSC Atomenergoprom’s) with a total of 90.000 to187.000peoplecovered;
» a public feedback mechanism was establishedandhasbeenregularlyusedtohandlepersonnel’squestionstoindustryleadersandprovideanswerstothesequestions;
» over 300 articles were published in the industry’speriodicals, including answers to the personnel’squestionsconcerningsocialpackage,wage,career,andotherissues;
» over 2.400 events were conducted for improvingpersonnelinvolvementwithinnuclearorganisations,
2011 2012 2013
LEVELOFTHENUCLEARPERSONNELINVOLVEMENTIN2011–2013,SHOWNINDYNAMICS,%
60 62 67
including the installation of information terminals,thetrainingofproductionleaders,wageindexation,corporate parties, the development of mentoringprogrammes,on-the-jobtraining,repairs,children’scamps (enterprises of JSCAtomenergomash),achildren’sfestival inSnezhinsk,andmanymore;and
» regularvisitsmadebytheindustry’stopleaderstokeysites.Thekeyeventsandprojectsin2013were:
» visitsmadebythenuclearindustry’sleaderstotheindustry’skeysites(over170visitsto50sites);and
» auditing of the labour payment system (UnifiedStandardised Remuneration System) at some ofJSCAtomenergoprom’senterprises.
Theprimelong-termobjectiveoftheinvolvementproject within the nuclear industry is to achieve thesamepersonnelinvolvementleveloftheworldleaders
in technological industries (70% or higher) withinthreetofiveyears.
Industry personnel recognition programme
Anindustrynominationprogramme,Rosatom’sManof theYear,wasdevelopedand introduced in2013 forthepurposeofrecognisingthepersonnelservices.Thenominationlistconsistsof53nominations,including35divisionalnominations,13corporate-levelnominations,and5DirectorGeneral’sspecialnominations.
For three weeks, during which the new contestwas announced within the industry, 768 personnelapplications for participation in the contest werereceived,ofwhich378werefordivisionalnominations,243forcorporate-levelnominationsand147forspecialnominations. JSC Concern Rosenergoatom accountedfor the largest number of the applications for special
nominations(47).Theapplicantswereagedbetween23(theRisingStarnomination)and83years(theMentoroftheYearnomination).
The course of the contest was highlighted by allcorporate media. In 2013, there were 177 shortlistedparticipantswhorepresented65enterprises(including29 JSC Atomenergoprom’s organisations). The awardceremony, which involved the participation of theindustry’sleaders,washeldon27FebruaryinMoscow.Theceremony’s leveloforganisationandformatwerehighlypraisedbytheparticipantsingeneral,aswellasbythecontestwinnersandtheindustryleaders.
Public communications, mass media, and Internet
What? Where? When? TV game show
One of the most important projects in the field ofpublic communications in 2013 was the cooperationwithWhat?Where?When?,aRussiantelevisiongameshow. The placement of image-building clips aboutthe Corporation of Knowledge in the most intellectualTVgameofferedbytheRussianTVnetworkhasbeena successful example of accessing and dealing withthe target audience. Furthermore, a number of theCompany’s employees joined the Rosatom Team forparticipation in the game as the result of internalselection. The young team of nuclear specialistsbecamethediscoveryof theseasonand,at thesametime,theembodimentofthenuclearindustry’sstaffingand intellectual potential in the eyes of Russian TVviewers. By qualifying for the game’s final stage, theRosatomTeampositionedtheRussiannuclearindustryas an activity and business sphere based on humanknowledge,innovation,andhightechnologies.
Horizons of Atom
In collaboration with Rossiya television channel,JSCAtomenergopromisaproducerofaTVprogramme,HorizonsofAtom,whichhighlightsvariousaspectsofthe nuclear industry’s activities and innovative designdevelopment. The purpose of the programme is topublicisetheindustry’splansandactivities,provideforthe psychological perception by the public at large ofthe safety of the peaceful uses of atomic energy, andcontributetotheinflowofyoungpeopleintotheindustry.
The programme is broadcast on the Rossiya-24channel on a regular basis. Altogether, there were 23programme editions broadcast in 2013. In December2013, a documentary, entitled Encyclopedia of Atom.Volume11.DealoftheCentury:MegatonstoMegawatts,wasalsoshownontelevision.
Industry press
The publication of Strana Rosatom (“RosatomLand”), the industry newspaper with a circulation of55.000 copies, was continued in 2013. Annually, aspartoftheinvolvement levelstudies,thenewspaper’scurrent confidence index, as a source of informationabout the activities of the company and the industryas thewhole, ismeasured. In2013,StranaRosatom’s
JSC ATOMENERGOPROM Annual Report 2013- 80 81
confidenceindexgrewby14%toreach64%.Vestnik Atomproma (“Atomprom Herald”), the
industry journal with a circulation of 3.600 copies,continued to be published in the reporting year. Thejournalisprimarilyaperiodicalfornuclearspecialists.Itpublishescontentonthemosturgentproblemsoftheindustry’sevolution.
Atomnyekspert(“NuclearExpert”)isasupplementto the scientific edition Atomnaya Energiya (“AtomicEnergy”)thathasbeenissuedsince2011.Thisjournalis an information and analytical project for nuclearprofessionalstaffandiscirculatedonatargetedbasis.Itscurrentcirculationis1.500copies.In2013,tenissueswerepublished.
There are 27 additional industry periodicals, themajority of which are such newspapers as Novoyevremya (“New Time”) (publisher: Siberian ChemicalCombine, Seversk; circulation: 15.700 copies) andImpuls (“Pulse”) (publisher: Electrochemical Plant,Zelenogorsk;circulation:10.000copies),whichhavethestatusofmunicipaleditions.
A Ring of Websites project
In 2013, JSC Atomenergoprom continued toconsistentlyextenditspresenceintheInternetnetworkto keep the public at large informed on its activitiesandtheeventstakingplace inthe industry.Workwascontinued to upgrade the existing websites of theCompany’sorganisations.
Aspartof theprojectARingofRosatomWebsites,which was launched in 2009 to invigorate the webcoverage of JSC Atomenergoprom’s activities,informationwasalsoextensivelypostedonthewebsitesof the Company’s major subsidiary enterprises. Inparticular, JSC Atomenergoprom’s website postedinvestor-relatedinformationrequiredtobedisclosedbyapplicableRussianlaw.In2013,intermsofinformationdisclosure, the Company’s major divisions were highlyactive, specifically the Machine Building Division(JSCAtomenergomash)andtheFuelDivision(JSCTVEL).Thesecorporatewebsitesandportalsarebasedontheindustry-genericITPlatform(IBMWebsphere)andhavean identical design, which contributes to the increasedrecognisabilityoftheCompany’scorporatedesign.
3.4.2.Activitiesinoperatingareas
ManagementofsocialandeconomiccapitalintheCompany’soperatingareasincludesthemanagementof social and socio-economic programmes in theoperating areas, including investments in socialinfrastructuresandtheestablishmentofconstructiveinteractionswithstakeholders.
TheeconomicimpactofJSCAtomenergopromonthedevelopmentoftheoperatingareasisintegrated.TheCompanycontributessignificantlytoensuringtheenergy security of the whole range of regions, andtakes an active part in the creation and fair divisionof value. JSC Atomenergoprom is a major taxpayerintheoperatingareas,makingtaxpaymentsintothebudgetsatalllevels.ThegreateconomiceffectsfromtheCompany’soperationsshowthemselvesinalargenumberofqualifiedjobsbeingcreatedinthenuclearindustryandintheadjacentsectors,whileprovidingnotonly foragreatdealofemploymentcapabilities,but also for decent labour conditions and paymentlevel.
CREATIONANDDIVISIONOFVALUE,MILLIONROUBLES
Description 2013 2012
Crated value 437,435 399,601
incomes(salesproceeds,aswellasincomefromfinancialinvestmentsandsaleofassets)
437,435 399,601
Divided value 302,676 291,545
operating costs (payments to suppliers and contractors, materialprocurementcosts)
(162,220) (170,471)
wagesandotherpaymentsandallowancestopersonnel (83,400) (77,154)
paymentstocapitalsuppliers (17,283) (9,082)
grosstaxpayments(lesspersonalincometaxandVAT) (33,478) (28,805)
investmentsincommunities,includingdonations (6,295) (6,033)
Undivided value 134,759 108,056
3.4.2.1.Contributiontocreationanddivisionofvalue
The overall economic performance ofJSC Atomenergoprom is disclosed in the tablegiving data on the creation of value and its divisionamong the stakeholders. The created value is dividedamong the suppliers and the contractors (as part ofoperating costs), the capital suppliers (as interestpaymentstocreditors),thepersonneloftheCompanyand its organisations (labour payments and socialexpenditures),thestate(intheformoftaxpayments),local communities, and the regional and municipalauthorities(associalinvestments,charityexpenditures,andtaxpayments).ApartofthevaluecreatedisretainedbytheCompanyintheformofundividedvalue,includingthefundsearmarkedforbusinessdevelopment.
3.4.2.2.Creationofnewjobsandcontracting
Traditionally, for thenuclear industry, theactivitiesof JSC Atomenergoprom and its organisations havebeengovernedbyresponsiblebusinessprinciples.TheCompanytakesintoaccountthesignificanceofbusinessresponsibility principles and gives them precedence,whilehaving thisas itsprimeobjective: thesocialandeconomicdevelopmentofRussia,alongwithitsregionsandcities.Anumberofindustry-widesocialprogrammeswere embarked upon and have been consistentlyimplementedbytheCompany.
3.4.2.3.Implementationofsocialandcharityprogrammesinoperatingareas
Traditionally, for the nuclear industry, the activities ofJSC Atomenergoprom and its organisations have beengovernedbyresponsiblebusinessprinciples.TheCompanytakesintoaccountthesignificanceofbusinessresponsibilityprinciplesandgivesthemprecedence,whilehavingthisasitsprimeobjective: thesocialandeconomicdevelopmentof Russia, along with its regions and cities. A number ofindustry-wide social programmes were embarked uponandhavebeenconsistentlyimplementedbytheCompany.
Charity activities
The Concept of Charity Activities and Interactions with Local Communities
Pursuant to the Concept of Charity Activities andInteractions with Local Communities adopted in 2010,JSC Atomenergoprom and its organisations have thefollowing as their top priorities in terms of charityactivities:
» implementation of local initiatives aimed atimproving the standards of living and maintainingfavourableenvironmentalconditions;
» implementation of initiatives aimed at protectingpeople’s life and health (including disabled andelderly people, orphaned children, people indistress);
» support of educational initiatives, includingcontests,grantsupporttoeducationalprojectsandprogrammes,advancedtrainingofteachers;
» maintenanceofhighsocialandculturalstandardsintheoperatingareasoftheCompany’sorganisations:- supportofculturalandenlightenmentinitiatives,- dvancedtrainingofcultural,social,andmedical
workers,and- participation in the promotion of patriotism,
dissemination of spiritual values, and thepromotionofgroupsportsandhealthywaysofliving;and
» assistance in forming professional managementtraditions for ensuring the social and economicdevelopmentofthenuclearsitedeploymentareas.In2013,over570charityinitiativeswereimplemented
inside and outside the operating areas of the Company’sorganisations.Thefundingforthecharityactionsamountedto833millionroubles.
In 2013, the industry’s organisations successfullyconducted more than 30 contests of local-level charityinitiatives.Thetotalfundsdistributedonacompetitivebasisamountedtoabout110millionroublesandcovered32citiesinRussia.
FUNDSSPENTFORCHARITYACTIONSINTHENUCLEARINDUSTRYIN2013
106 33185 597986 110112 63
InitiativesonformingthehistoricalandculturalheritageofRussia
Promotionofpatriotismanddonationsfororganisingceremonialeventstimedtocoincidewithcommemorativedatesandmemorialevents
Environmentalinitiativesandtheeliminationofthenuclearlegacy
Free aid on applications, including emergency medical aid andnon-financialparticipation
Initiatives on the development of children’s and group amateursports
Initiativesinthefieldofcultureandspiritualandmoraleducationofyoungpeople
Educational initiatives and support of design activities byeducationalestablishments
Competitivecharityactions
Assistance to war veterans, disabled people, and people indistress
833 millionroubles
- 82 83 JSC ATOMENERGOPROM AnnualReport 2013
3.5.Managementofnaturalcapital,ecologicalsafety,andenvironmentalprotection
3.5.1.ImplementationoftheEnvironmental
Policy
EnvironmentalsafetyisanabsolutetoppriorityintheactivitiesofJSCAtomenergoprom’senterprises.Since 2008, the Environmental Policy has beenimplementedwithintheRussiannuclearindustry.Itsobjective is to ensure the environmentally friendlyand sustainable evolution of nuclear organisationsin the process of atomic energy generation andutilisation.
One of the key organisational activities in 2013was the actualisation of the Environmental PolicypursuanttotheapprovedFundamentalsoftheStatePolicyintheFieldoftheEnvironmentalDevelopmentoftheRussianFederationforthePerioduntil2030,asdictatedbytheneedforimprovingtheenvironmentalsafetyofnuclearsites.
Thesystematicactivitiesfortheimplementationof the Environmental Policy may be carried outonly as part of the existing annual planning andreportingsystem.In2013,55nuclearorganisationswere listed as environmentally significant andthey include facilities with potential sources ofimpactonpeople’shealthandtheenvironment.Inthe reporting year, environmental safety reportswere issued by the environmentally significantorganisations for the purpose of disclosinginformationonactivitiesinthefieldofenvironmentalprotectionandenvironmentalsafety;anumberoforganisational, manufacturing, and technological
arrangements were also undertaken for theprotectionoftheenvironmentandtherationaluseofnaturalresources.
Aspartofthenuclearindustry’sEnvironmentalPolicy,organisationsaremonitoredforhavingvalidenvironmentalpermits(withrespecttoemissionsandthereleaseofharmfulchemicalandradioactivesubstances and the handling of waste, includingradioactivewaste,watermanagement,andsoon).In 2013, 159 nuclear organisations (over 200 withindividualsitestakenintoaccount)deliveredtheirstatisticalenvironmentalprotectionstatements.
In 2013, as part of the Environmental Policyimplementation, JSC Concern RosenergoatomreceivedpositivestateenvironmentalexpertreviewopinionswithrespecttotheoperationoftheRostovNPP’s Unit 1 and the Balakovo NPP’s Unit 3 at apower level of 104% of the rated value. Activitieswere also undertaken to upgrade the productionwaste handling facilities at the Kalinin, Kursk andSmolenskNPPs.
In 2013, the following was done at JSC TVEL aspartoftheenvironmentalpolicyimplementation:
» gascleaningequipmentfortheammoniaemissionentrapmentwascommissioned(JSCCMP);
» work was completed to replace low-efficiencydust catchers on boiler Units 2 and 6 for high-efficiency wet dust-collecting plants (JSC SCC);and
» a mobile plant was put into operation forrecovering the integrity of the uraniumhexafluoride tanks in the depleted uraniumhexafluoride storage area, making it possibleto greatly reduce the emergency radionuclideandhydrogen fluorideemissionsgoing into theenvironment(JSCPAECP).In 2013, as part of the environmental policy
implementation, a full-scale domestic sewagebiological treatment station with a 100 m3/daycapacitywascommissionedwithinJSCAtomenergo-prom(atJSCKhiagda).
By a Russian presidential decree, 2013 wasdeclared the Conservation Year throughout theRussian Federation. The main objective of theConservation Year, conducted by JSC Atomenergo-prom, was to promote the shaping of the public’secological thinking in the nuclear site deploymentareas,thepreservationoffavourableenvironmentalconditions, and the adherence to environmentalsafetyprinciples.
In the reporting year, major organisational,production, technological, information, scientific,public awareness, and regional events, asprovided by the Plan of Activities for the Year ofEnvironmental Protection, were conducted by theindustry’senvironmentallysignificantorganisations(altogether,1.135eventswereconductedwithin theindustry). One of the key organisational events in2013wasacontest,entitledEnvironmentallyPerfectNuclear Organisation, in which 51 environmentallysignificantnuclearorganisationstookpart.ThethreeprizewinnersweretheKurskNPP,theBalakovoNPP,andJSCSCC.
JSC ATOMENERGOPROM AnnualReport 2013- 84 85- 84 85
Annex1.GeneralandspecificGRI(G4)standarddisclosuresandcompliancewiththeRSPPbasicperformanceindicatorsUseofgeneralstandarddisclosures
General standard reporting disclosure Report chapter/section/comment
Strategy and Analysis
G4-1.Statementbythemostseniordecision-makeroftheorganisation(e.g.CEO,chair,orequivalentseniorposition)abouttherelevanceofsustainabilitytotheorganisationanditsstrategy
AddressfromtheChairpersonoftheBoardofDirectorsAddressfromtheDirector
Organisational Profile
G4-3.Nameoftheorganisation Companybackground
G4-4.Primarybrands,products,andservices Companybackground
G4-5.Locationoftheorganisation’sheadquarters JSCAtomenergopromprofile
G4-6. Number of countries where the organisation operates, andnamesofcountrieswitheithermajoroperationsorthatarespecificallyrelevanttothesustainabilityissuescoveredinthereport
Internationalbusiness
G4-7.Natureofownershipandlegalform Companybackground
G4-8. Markets served (including geographic breakdown, sectorsserved,andtypesofcustomersandbeneficiaries)(partiallydisclosed)
EfficientnuclearelectricitysuppliesforRussianindustriesStrengtheningof theglobalplayerposition in theglobalmarketofnuclearservices
G4-9.Scaleofthereportingorganisation(partiallydisclosed) CompanybackgroundFinancialandeconomicperformanceManagementofhumancapital
G4-10.Numberofemployees Managementofhumancapital
G4-11.Percentageoftotalemployeescoveredbycollectivebargainingagreements
Managementofhumancapital
G4-13.Significantchangesduringthereportingperiodregardingtheorganisation’ssize,structure,ownership,oritssupplychain
Corporatemanagement
G4-14.Howprecautionaryprincipleisaddressed Nuclearandradiationsafety
G4-15. Economic, environmental, and social charters, principles,orother initiatives towhich theorganisationsubscribesorwhich itendorses
Internationalcooperation
G4-16. Membership of associations and international/nationaladvocacyorganisations
Internationalcooperation
Identified Material Aspects and Boundaries
G4-22.Explanationof theeffectofanyrestatementsof informationprovidedinearlierreports,andthereasonsforsuchrestatements
Therewerenorestatements
G4-23. Significant changes from previous reporting periods in thescope,boundary,ormeasurementmethodsappliedinthereport
There were no significant changes from the previous reportingperiodsinthereportingyear
Stakeholder Engagement
G4-24.Listofstakeholdergroupsengagedbytheorganisation Interactionswithstakeholders
G4-26.Approachtostakeholderengagement(partiallydisclosed) Interactionswithstakeholders
Report Profile
G4-28. Reporting period (e.g. fiscal/calendar year) for informationprovided
Reportbackground
G4-29.Dateofmostrecentpreviousreport(ifany) Reportbackground
G4-30.Reportingcycle(annual,biennial,etc.) Reportbackground
G4-31.Contactpointforquestionsregardingthereportoritscontents Contactdetails
G4-32.GRIcontentindex Annex 1. General and specific GRI (G4) standard disclosures andcompliancewiththeRUIE’SkeyperformanceindicatorsThisreportcontainsstandarddisclosuresfromtheGRISustainabilityReportingGuidance
G4-33.Externalassurance Thereporthasnotbeenexternallyassured
Governance
G4-34.Governancestructure Corporatemanagement
Ethics and Integrity
G4-56.Values,principles,standards,andnormsofbehaviour,suchascodesofconductandethicalcodes
Annex 3. Observance of the Corporate Conduct Code byJSCAtomenergoprom
GeneralandspecificGRI(G4)standarddisclosuresandcompliancewiththeRSPPbasicperformance
indicators
Indicator Compliance with the RUIE’s base indicator number
Section of Report
Economic performance indicators
G4- ЕС1. Direct economic value generatedanddistributed
1.2.–1.7. Managementofsocialandrelationshipcapital
G4- ЕС3. Coverage of the organization’sdefinedbenefitplanobligations
1.8. Managementofhumancapital
G4- ЕС7. Development and impact ofinfrastructure investments and servicessupported
Managementofsocialandreputationalcapital
G4- ЕС8. Significant indirect economicimpacts,includingtheextentofimpacts
Managementofsocialandreputationalcapital
Labour practices and decent work performance indicators
G4- LA2. Benefits provided to full-timeemployeesthatarenotprovidedtotemporaryor part-time employees, by significantlocationsofoperation
Managementofhumancapital
G4-LA4.Minimumnoticeperiodsregardingoperationalchanges,includingwhetherthesearespecifiedincollectiveagreements
Managementofhumancapital
G4- LA6. Type of injury and rates of injury,occupational diseases, lost days, andabsenteeism, and total number of work-relatedfatalities,byregionandbygender
3.1.5–3.1.8. Nuclearandradiationsafety
Product responsibility performance indicators
G4- PR1. Percentage of significant productandservicecategories forwhichhealthandsafetyimpactsareassessedforimprovement
RiskmanagementNuclearandradiationsafety
JSC ATOMENERGOPROM Annual Report 2013- 86 87
Annex2.AuditCommision’sreportontheauditfindingswithrespecttothefinancialandbusinessactivitiesofJSCAtomenergopromin2013
AuditingCommission’sreportontheauditfindingswithrespecttothefinancialandbusinessactivitiesofJSCAtomenergoprom
in2013
Moscow 16May2014
InaccordancewiththeFederalLaw“OnJoint-StockCompanies”andtheArticlesofAssociationof Joint-Stock Company Nuclear Power Generation Complex (named as “the Company”hereinafter),thefinancialandbusinessactivitiesoftheCompanyin2013wereauditedbytheCompany’sAuditingCommissionintheperiodof5May2014through16May2014.
TheCompany’sAuditingCommissionwasapprovedbyaresolutionoftheSoleShareholderofJoint-StockCompanyNuclearPowerGenerationComplex(No.1,dated28.06.2013).TheAuditingCommission’smembers:
-Kurbatov,GrigoriyAleksandrovich,DeputyChiefAccountant,RosatomStateCorporation(asoftheelectiontime);- Blazhnova, Tatyana Viktorovna, Head, Consolidated Reporting Department, AccountingOffice,RosatomStateCorporation(asoftheelectiontime);and-Zhukova,ZoyaAleksandrovna,ChiefSpecialist, InternalAuditDepartment, InternalAuditOffice,RosatomStateCorporation(asoftheelectiontime).
NoshareholderordirectordemandsforextraordinaryauditsorinspectionstobeconductedwerereceivedbytheAuditingCommissioninthereportingyear.In the course of the audit, the Auditing Commission examined, on a random basis, theconstituent documents, accounting registers, accounting (financial) statements, analyticalmaterials,corporateprocedureobservanceissues,andotherdocumentsthatdisclosethematerialaspectsoftheCompany’sactivities.In the course of the audit, the Auditing Commission relied on, among other things, theCompanyAuditor’sreport,areportbyFBKCompanyLimitedfrom31March2014.
Astheresultoftheaudit,theAuditingCommission:
1.CertifiesthatthedatacontainedintheCompany’sfinancial(accounting)statementsistrue,andthatthefinancialresultsoftheCompany’sactivitiesfor2013arecredible.2.Hasnotrevealedanybreachesofprocedures,asspecifiedinRussianlegalactsforaccountingandfinancialstatementsubmissioninthecourseoffinancialandbusinessactivities,norinRussianlegalactsthatmightmateriallyaffectthecredibilityoftheCompany’sreportingdata.
ChairoftheAuditingCommission T.V.Blazhnova
MembersoftheAuditingCommission Z.A.Zhukova
Annex3.ObservanceoftheCorporateCodeofConductbyJSCAtomenergoprom
No. CCC regulation Applicable / Not applicable
Note
General meeting of shareholders
1. Notification of the shareholders on the general meeting ofshareholders at least 30 days prior to the date of the meeting,notwithstandingtheissuesontheagendathereof,unlessalongertermisprovidedbylaw
Notapplicable For most of the reporting period, thecompany had one shareholder by whichresolutionsarepassedasspecifiedinpar.3,Art.47,ofFederalLawNo.208-FZ(OnJoint-StockCompanies),dated26.12.1995
2. Access of the shareholders to the list of people who are entitledtoattend thegeneralmeetingofshareholders,starting fromthedate of the notice of the general meeting of shareholders untiltheclosureofthegeneralmeetingofshareholdersthatisheldinperson,and,intheeventofageneralmeetingofshareholdersheldremotely,untilthedatewhenthevotingballotsstopbeingcollected
Notapplicable For most of the reporting period, thecompany had one shareholder by whichresolutionsarepassedasspecifiedinpar.3,Art.47,ofFederalLawNo.208-FZ(OnJoint-StockCompanies),dated26.12.1995
3. Access of the shareholders to the information (materials) to bemade available in the preparations for the general meeting ofshareholders, by means of electronic communications, includingtheInternet
Notapplicable For most of the reporting period, thecompany had one shareholder by whichresolutionsarepassedasspecifiedinpar.3,Art.47,ofFederalLawNo.208-FZ(OnJoint-StockCompanies),dated26.12.1995
4. Possibility forashareholdertoputan issueontheagendaofthegeneralmeetingofshareholdersorrequireageneralmeetingofshareholderstobecalledwithoutpresentinganextract fromtheshareholders’ register, where the shareholder’s rights to sharesare recorded, where the shareholder’s rights to shares arerecordedinthedepositaccount,presentingastatementfromthedepositaccountwillbeenoughforexercisingtheaboverights
Notapplicable For most of the reporting period, thecompany had one shareholder by whichresolutionsarepassedasspecifiedinpar.3,Art.47,ofFederalLawNo.208-FZ(OnJoint-StockCompanies),dated26.12.1995
5. Availability in the joint-stockcompany’sarticlesofassociationorbylaws of the requirement regarding the mandatory attendanceof the general meeting of shareholders by the Director General,the members of the Board of Directors, the members of themanagementboard,themembersoftheauditingcommissionandtheauditorofthejoint-stockcompany
Notapplicable For most of the reporting period, thecompany had one shareholder by whichresolutionsarepassedasspecifiedinpar.3,Art.47,ofFederalLawNo.208-FZ(OnJoint-StockCompanies),dated26.12.1995
6. Mandatory presence of nominees for the positions of membersof the Board of Directors, the Director General, members of themanagement board, and members of the auditing commission,during the discussion by the general meeting of shareholdersregardingtheirpotentialelection,aswellasoftheappointmentofthejoint-stockcompany’sauditor
Notapplicable For most of the reporting period, thecompany had one shareholder by whichresolutionsarepassedasspecifiedinpar.3,Art.47,ofFederalLawNo.208-FZ(OnJoint-StockCompanies),dated26.12.1995
7. Availabilityinthejoint-stockcompany’sbylawsoftheregistrationprocedureforparticipationinthegeneralmeetingofshareholders
Notapplicable For most of the reporting period, thecompany had one shareholder by whichresolutionsarepassedasspecifiedinpar.3,Art.47,ofFederalLawNo.208-FZ(OnJoint-StockCompanies),dated26.12.1995
Board of Directors
8. Provisionbythejoint-stockcompany’sarticlesofassociationoftheBoardofDirectors’authoritytoannuallyapprovethefinancialandeconomicplanofthejoint-stockcompany
Applicable Par. 56, subpar. 3, 20 of the Articles ofAssociation
9. Availability in the joint-stock company of a risk managementprocedureapprovedbytheBoardofDirectors
Notapplicable
10. Provision by the joint-stock company’s articles of association ofthe right of theBoardof Directors to suspend thepowersof theDirectorGeneralappointedbythegeneralmeetingofshareholders
Notapplicable
11. Provisionbythejoint-stockcompany’sarticlesofassociationoftherightoftheBoardofDirectorstoestablishrequirementsregardingthequalificationofandthesizeoftheremunerationpayabletotheDirectorGeneral,themembersoftheBoardofDirectors,andtheheadsofthejoint-stockcompany’smajordivisions
Applicable Par. 56, subpar. 12 of the Articles ofAssociation
JSC ATOMENERGOPROM Annual Report 2013- 88 89
12. Provisionbythejoint-stockcompany’sarticlesofassociationoftherightoftheBoardofDirectorstoapprovethetermsandconditionsofcontractswiththeDirectorGeneralandthemanagementboardmembers
Applicable Par. 56, subpar. 12 of the Articles ofAssociation
13. Availability in the joint-stock company’s articles of associationor bylaws of the requirement that the votes of the members ofthe Board of Directors who act as the Director General and themanagementboardmembersshallbetakenintoaccountwhenthetermsandconditionsofthecontractsfortheDirectorGeneral(themanagingorganisation,themanagingdirector)areapproved
Notapplicable
14. Presence on the joint-stock company’s Board of Directors of atleast3independentdirectorsthatmeettheCCCrequirements
Notapplicable
15. Absenceonthejoint-stockcompany’sBoardofDirectorsofanyonewho has been found guilty of committing crimes in the field ofbusiness, crimes against the public order, the public serviceinterests,orthelocalself-governmentserviceinterests,orthosewho have been administratively punished for business, financial,tax,duty,orsecuritiesmarketoffences
Applicable
16. Absence on the joint-stock company’s Board of Directors of anyperson who acts as a member, the Director General (managingdirector),memberofamanagementbody,oranemployeeofanycompetitortothejoint-stockcompany
Applicable
17. Availability in the joint-stock company’s articles of association ofthe requirement that the Board of Directors shall be elected bycumulativevoting
Notapplicable For most of the reporting period, thecompany had one shareholder by whichresolutionsarepassedasspecifiedinpar.3,Art.47,ofFederalLawNo.208-FZ(OnJoint-StockCompanies),dated26.12.1995
18. Provisionbythe joint-stockcompany’sbylawsoftheobligationofthemembersoftheBoardofDirectorstorefrainfromanyactionsaswillormaypotentiallyleadtoaconflictbetweentheirinterestsand the interests of the joint-stock company, and, where suchconflictarises,oftheobligationtodiscloseinformationonsuchaconflicttotheBoardofDirectors
Notapplicable
19. Provisionbythejoint-stockcompany’sbylawsoftheobligationofamemberoftheBoardofDirectorstonotifytheBoardofDirectorsinwritingoftheintenttomaketransactionswithsecuritiesofthejoint-stockcompanyofwhichheorsheisamemberoftheBoardofDirectors,orofitsdaughter(dependent)companies,aswellasto disclose information on such transactions with securities thataremade
Applicable JSC Atomenergoprom’s order No. 5/65-P,dated29.12.2011
20. Provisionbythejoint-stockcompany’sbylawsoftherequirementthat themeetingsof theBoardofDirectorsshallbeheldat leastonceeverysixweeks
Notapplicable
21. HoldingofmeetingsoftheBoardofDirectorswithafrequencyofatleastonceeverysixweeksintheyearforwhichthejoint-stockcompany’sannualreportisprepared
Applicable There were 97 meetings of the Board ofDirectorsinthereportingperiod
22. Availability inthe joint-stockcompany’sbylawsoftheproceduresforholdingthemeetingsoftheBoardofDirectors
Applicable BylawoftheBoardofDirectors
23. Provisionbythejoint-stockcompany’sbylawsoftherequirementregarding securing the Board of Directors’ approval for anycompanytransactionsforasumof5%ormoreofthecostofthecompany’sassets,excludingthetransactionsmadeintheregularcourseofbusiness
Applicable Par. 56, subpar. 29 of the Articles ofAssociation
24. Availability in the joint-stock company’s bylaws of the right ofthemembersof theBoardofDirectorstoreceive fromthe joint-stockcompany’sexecutivebodiesandtheheadsofthecompany’smajordivisionstheinformationrequiredbythemtoperformtheirrespectivefunctions,aswellastheliabilityofthosemembersforthefailuretomakesuchinformationavailable
Applicable BylawoftheBoardofDirectors
25. Existence of the Board of Directors’ committee on strategicplanningordelegationofthesaidcommittee’sfunctionstoanothercommittee(excludingtheauditcommitteeandthepersonnelandremunerationcommittee)
Notapplicable No Board of Directors committee wasformed
26. Existence of the Board of Director’s committee (the auditcommittee) that recommends the joint-stock company’s auditortotheBoardofDirectorsandcommunicateswithhim/herandthejoint-stockcompany’sauditingcommission
Notapplicable No Board of Directors committee wasformed
27. Presence on the audit committee of only independent and non-ExecutiveDirectors
Notapplicable No Board of Directors committee wasformed
28. Leadershipoftheauditcommitteebyanindependentdirector Notapplicable No Board of Directors committee wasformed
29. Provision by the joint-stock company’s bylaws of the right ofaccess of all members of the audit committee to any documentsand information of the joint-stock company, provided that noconfidentialinformationisdisclosedbythem
Notapplicable No Board of Directors committee wasformed
30. Formation of the Board of Directors committee (personnel andremuneration committee), the function of which is to determinethecriteria for theselectionofnominees for thepositionsof themembers of the Board of Directors and develop the joint-stockcompany’sremunerationpolicy
Notapplicable No Board of Directors committee wasformed
31. Leadership of the personnel and remuneration committee by anindependentdirector
Notapplicable No Board of Directors committee wasformed
32. Absenceofthejoint-stockcompany’sofficialsonthepersonnelandremunerationcommittee
Notapplicable No Board of Directors committee wasformed
33. FormationoftheBoardofDirectors’riskcommitteeordelegationofthesaidcommittee’sfunctionstoanothercommittee(excludingtheauditcommitteeandthepersonnelandremunerationcommittee)
Notapplicable No Board of Directors committee wasformed
34. FormationoftheBoardofDirectors’corporatedisputesettlementcommittee or delegation of the said committee’s functions toanother committee (excluding the audit committee and thepersonnelandremunerationcommittee)
Notapplicable No Board of Directors committee wasformed
35. Absence of the joint-stock company’s officials on the Board ofDirectors’corporatedisputesettlementcommittee
Notapplicable No Board of Directors committee wasformed
36. LeadershipoftheBoardofDirectors’corporatedisputesettlementcommitteebyanindependentdirector
Notapplicable No Board of Directors committee wasformed
37. Existence of the joint-stock company’s bylaws, as approved bythe Board of Directors, which establish the procedures for theformationandoperationoftheBoardofDirectors’committees
Applicable BylawoftheBoardofDirectors
38. Availability in the joint-stock company’s articles of associationof the procedures for determining the quorum of the Board ofDirectorsthatmakesitpossibletoensurethemandatorypresenceofindependentdirectorsatthemeetingsoftheBoardofDirectors
Notapplicable
Executive bodies
39. Existenceofacollectiveexecutivebody(managementboard)ofthejoint-stockcompany
Notapplicable
40. Availabilityinthejoint-stockcompany’sbylawsoftherequirementthat the management board shall approve real estate and loan-raising transactions of the joint-stock company unless these aremajordealsandarebeyondthescopeofthejoint-stockcompany’sregularbusiness
Notapplicable Noformationofacollectiveexecutivebodyisprovided,andrealestatetransactionsaresubject to the approval from the Board ofDirectors
41. Availabilityinthejoint-stockcompany’sbylawsoftheprocedurefortheapprovalofoperationsthatarebeyondthescopeofthejoint-stockcompany’sfinancialandeconomicplan
Notapplicable
42. Absenceofanypeoplewhoactasmembers,theDirectorGeneral(managing director), a member of a management body, or anemployee of a competitor to the joint-stock company on thecompany’sexecutivebodies
Applicable
JSC ATOMENERGOPROM Annual Report 2013- 90 91
43. Absence of any people on the joint-stock company’s executivebodieswhohavebeenfoundguiltyofcommittingcrimesinthefieldofbusinessorcrimesagainstthepublicorder,thepublicserviceinterests,andthelocalself-governmentserviceinterests,orwhohave been administratively punished for business, financial, tax,duty, or securities market offences. Where the functions of thesoleexecutivebodyareperformedbythemanagingorganisationortheManagingDirector,complianceofthemanagingorganisation’sDirectorGeneralandmanagementboardmembersortheManagingDirector with the requirements to the joint-stock company’sDirectorGeneralandmanagementboardmembers
Applicable
44. Provision by the joint-stock company’s articles of association orbylaws of a prohibition with respect to the performance by themanaging organisation (Managing Director) of similar functionswithin a competitor company, and with respect to being in anyproperty relations with the joint-stock company, except therendering of services as the managing organisation (ManagingDirector)
Notapplicable
45. Provision by the joint-stock company’s bylaws of the obligationof the executive bodies to refrain from any actions that will orpotentiallymay lead toaconflict between their interestsand thejoint-stockcompany’sinterests,and,intheeventofsuchaconflict,toinformtheBoardofDirectorsofsuchaconflict
Notapplicable
46. Availability in the joint-stockcompany’sarticlesofassociationorbylawsofthecriteriafortheselectionofthemanagingorganisation(ManagingDirector)
Notapplicable
47. Submission by the joint-stock company’s executive bodies ofmonthlyreportsonitsactivitiestotheBoardofDirectors
Notapplicable
48. Provisioninthecontractsmadebythejoint-stockcompanywiththeDirectorGeneral(managingorganisation,ManagingDirector)andthemembersofthemanagementboardoftheliabilityforabreachoftheconfidentialandinsiderinformationbylaw
Applicable
Company secretary
49. Existence within the joint-stock company of a special official(companysecretary)whose function is toensuretheobservancebythejoint-stockcompany’sbodiesandofficialsoftheproceduralrequirementsthatguaranteethattherightsandlawfulinterestsofthecompany’sshareholdersareexercised
Applicable
50. Availability in the joint-stockcompany’sarticlesofassociationorbylaws of the procedures for appointing (electing) the companysecretaryandoftheresponsibilitiesofthecompanysecretary
Applicable BylawoftheBoardofDirectors
51. Availability in the joint-stock company’s articles of association ofrequirementsforthenomineecompanysecretary
Notapplicable
Significant corporate actions
52. Availability in the joint-stock company’s articles of associationorbylawsof therequirement thatanymajor transactionshallbeapprovedpriortobeingmade
Notapplicable
53. Mandatory engagement of an independent appraiser for theappraisalofthemarketvalueofthepropertythatisthesubjectofamajortransaction
Notapplicable
54. Availability in the joint-stock company’s articles of associationof the prohibition as to the undertaking, when acquiring majorblocks of shares in the joint-stock company (absorption), of anyactions seeking to protect the interests of the executive bodies(themembersof thesebodies)andthemembersof theBoardofDirectorsofthejoint-stockcompany,and/ormakingthesituationworse for shareholders, as compared to the existing situation,(specifically,oftheprohibitionfortheBoardofDirectorstoresolve,prior to the expiry of the expected stock acquisition period, onadditional convertible securities or the securities entitling to theacquisitionofsharesinthecompanytobeissued,eveniftherightofresolvingsoisprovidedbythearticlesofassociation)
Notapplicable
55. Availability in the joint-stock company’s articles of association oftherequirementforthemandatoryengagementofanindependentappraiser for appraising the current market value of shares andthepotentialchangesinthemarketvaluethereofastheresultoftheabsorption
Notapplicable AnindependentappraiserisengagedonlyinsuchcasesasstipulatedbytheFederalLawonJoint-StockCompanies
56. Absence in the joint-stock company’s articles of association ofa provision that the acquirer shall be relieved of the obligationto propose that the shareholders should sell the shares in thecompany they hold (issuance securities convertible to ordinaryshares)duringtheabsorption
Applicable
57. Availability in the joint-stockcompany’sarticlesofassociationorbylawsoftherequirementthatanindependentappraisershallbemandatorily engaged for determining the stock conversion ratioduringreorganisation
Notapplicable AnindependentappraiserisengagedonlyinsuchcasesasstipulatedbytheFederalLawonJoint-StockCompanies
Disclosure of information
58. Existenceofabylaw,asapprovedbytheBoardofDirectors, thatdefinesthejoint-stockcompany’sinformationdisclosurerulesandapproaches(InformationPolicyBylaw)
Notapplicable Respectivedocumentshavebeenapprovedbythedirector
59. Availabilityinthejoint-stockcompany’sbylawsoftherequirementregardingthedisclosureof informationonthegoalsof theshareplacement,onthepeoplewhoaregoingtoacquirethesharesplaced,includingamajorblockofshares,aswellastherequirementifthejoint-stockcompany’stopofficialswilltakepartintheacquisitionofthejoint-stockcompany’ssharesplaced
Notapplicable Under effective law, the Company’sshares may be held only by RosatomState Corporation and/or by the RussianFederation
60. Availability in the joint-stock company’s bylaws of a list of theinformation,documents,andmaterialstobemadeavailabletotheshareholders for deciding on issues brought before the generalmeetingofshareholders
Notapplicable For most of the reporting period, thecompany had one shareholder by whichresolutionsarepassedasspecifiedinpar.3,Art.47,ofFederalLawNo.208-FZ(OnJoint-StockCompanies),dated26.12.1995
61. Existence of the joint-stock company’s website and regulardisclosureofinformationonthejoint-stockcompanythereon
Applicable Information is disclosed on the website athttp://www.atomenergoprom.ru
62. Availabilityinthejoint-stockcompany’sbylawsoftherequirementregardingthedisclosureofinformationonthejoint-stockcompany’stransactions with people who, for the purpose of the articles ofassociation,actastopofficialsofthejoint-stockcompany,aswellas on the joint-stock company’s transactions with organisationsin which the joint-stock company’s top officials hold directly orindirectly 20% or more of the joint-stock company’s authorisedcapital,orwhichmaybeinanywaymateriallyinfluencedbysuchpeople
Notapplicable
63. Availabilityinthejoint-stockcompany’sbylawsoftherequirementsforthedisclosureofinformationonalltransactionsasmayaffectthemarketvalueofthejoint-stockcompany’sshares
Notapplicable
64. ExistenceofabylawapprovedbytheBoardofDirectorsconcerningthe use of material information on the joint-stock company’sactivities, the shares and other securities of the company, andthetransactionstherewith,whichisnotpubliclyavailableandthedisclosureofwhichmayhaveamajoreffectonthemarketvalueofthejoint-stockcompany’ssharesandothersecurities
Notapplicable Approvedbythedirector’sorder
Control of financial and economic activities
65. Existenceoftheprocedures,asapprovedbytheBoardofDirectors,for internal control of the joint-stock company’s financial andeconomicactivities
Notapplicable
66. Existence within the joint-stock company of a special divisionto enforce the internal control procedures (control and auditingservice)
Notapplicable
67. Availabilityinthejoint-stockcompany’sbylawsoftherequirementfor the determination by the Board of Directors of the structureandcompositionofthejoint-stockcompany’scontrolandauditingservice
Notapplicable
JSC ATOMENERGOPROM Annual Report 2013- 92 93
68. Absence of people in the control and auditing service who havebeenfoundguiltyofcommittingcrimesinthefieldofbusinessorcrimes against the public order, the public service interests andthe local self-government service interests, or who have beenadministratively punished for business, financial, tax, duty, orsecuritiesmarketoffences
Notapplicable
69. Absenceofpeople in thecontrolandauditingservicewhoactasmembers of the joint-stock company’s executive bodies, as wellas of the persons who act as members, the Director General(managing director), members of a management body, or anemployeeofacompetitortothejoint-stockcompany
Notapplicable
70. Provision in the joint-stockcompany’sbylawsof the termfor thedocumentsandmaterialsrequiredfortheappraisalofthefinancialor business transaction to be made available to the control andauditing service, and of the liability of the joint-stock company’sofficialsoremployeesforthefailuretomaketheseavailablewithinthesaidterm
Notapplicable
71. Provision in the joint-stock company’s bylaws of the control andauditingservice’sobligationstoreportthebreachesrevealedtotheauditcommitteeor,wheresuchacommitteehasnotbeenformed,tothejoint-stockcompany’sBoardofDirectors
Notapplicable
72. Availabilityinthejoint-stockcompany’sbylawsoftherequirementforthepreliminaryassessmentbythecontrolandauditingserviceof the practicality of transactions, other than envisaged by thejoint-stock company’s financial and economic plan (nonstandardoperations),tobemade
Notapplicable
73. Availability inthe joint-stockcompany’sbylawsoftheproceduresfor a nonstandard transaction to be authorised by the Board ofDirectors
Notapplicable
74. Existence of a bylaw, approved by the Board of Directors, thatdefinestheproceduresforthejoint-stockcompany’sfinancialandeconomicactivitiestobeauditedbytheauditingcommission
Notapplicable
75. Assessment by the audit committee of the auditors’ report priorto its submission to the shareholders at the general meeting ofshareholders
Notapplicable
Dividends
76. Existenceofabylaw,approvedbytheBoardofDirectors,bywhichtheBoardofDirectorsisguidedwhenmakingrecommendationsonthedividendsize(DividendPolicyBylaw)
Notapplicable
77. Availability in the Dividend Policy Bylaw of the procedures fordetermining a minimum share of the joint-stock company’s netprofit to be paid as dividends, and the conditions under whichnodividendsarepaidorpaid in fullon theprivilegedshares, thedividend size for which is specified by the joint-stock company’sarticlesofassociation
Notapplicable NoDividendPolicyBylawhasbeenapproved
78. Publication of information on the joint-stock company’s dividendpolicyandthechangestothesameinaperiodicalissuedasperthejoint-stockcompany’sarticlesofassociationforthepublicationofnoticesofthegeneralmeetingsofshareholders,andthepostingofsuchinformationonthejoint-stockcompany’swebsite
Notapplicable NoDividendPolicyBylawhasbeenapproved
Annex4.Summaryconsolidatedfinancialstatementspreparedonthebasicofconsolidatedfinancialstatementsfortheyearended31December2013andAuditors’report
JSC ATOMENERGOPROM Annual Report 2013- 94 95
2 3
JSC ATOMENERGOPROM Annual Report 2013- 96 97
OAO Atomenergoprom
Summary consolidated statement of financial position as at 31 December 2013
(in million Russian roubles)
4
OAO Atomenergoprom
Summary consolidated statement of financial position as at 31 December 2013
(in million Russian roubles)
5
JSC ATOMENERGOPROM Annual Report 2013- 98 99
ОАО Atomenergoprom
Summary consolidated statement of profit and loss for the year ended 31 December 2013
(in million Russian roubles)
ОАО Atomenergoprom
Summary consolidated financial standing statement for the year ended 31 December 2013
(in million Russian roubles)
6 7
JSC ATOMENERGOPROM Annual Report 2013- 100 101
ОАО Atomenergoprom
Summary consolidated statement of of changes in equity for the year ended 31 December 2013
(in million Russian roubles)
OAO Atomenergoprom
Summary consolidated statement of of changes in equity for the year ended 31 December 2013
(in million Russian roubles)
ОАО Atomenergoprom
Summary consolidated statement of changes for the year ended 31 December 2013
(in million Russian roubles)
ОАО Atomenergoprom
Summary consolidated statement of changes in equity for the year ending 31 December 2013
(in million Russian roubles)
108
9 11
JSC ATOMENERGOPROM Annual Report 2013- 102 103
ОАО Atomenergoprom
Summary consolidated statement of cash flows for the year ended 31 December 2013
(inmillionRussianroubles)
12
ОАО Atomenergoprom
Summary consolidated statement of cash flows for the year ended 31 December 2013
(in million Russian roubles)
13
JSC ATOMENERGOPROM Annual Report 2013- 104 105
ОАО Atomenergoprom
Note to the Summary consolidated financial statements for the year ended 31 December 2013
(inmillionRussianroubles)
1 Criterion for the preparation of the summary consolidated financial statements
These summary consolidated financial statements, which include the summaryconsolidated financial standing statement as of 31 December 2013, a summaryconsolidated integrated income statement, a summary consolidated profit andlossstatement,asummaryconsolidatedequity changestatement,andasummaryconsolidatedcashflowstatementfor2013,werepreparedwithnoamendmentsmadeto the respectivestatementsbeing partof theconsolidated financial statementsofJSCAtomenergopromanditsdaughtercompanies,preparedinaccordancewiththeInternationalFinancialReportingStandards, for theyearending31December2013(hereinafter referred to as “consolidated financial statements”). The notes to theconsolidatedfinancialstatementswerenotincludedinthegivensummaryconsolidatedfinancialstatements.
Accordingly,theseconsolidatedfinancialstatementsareinlinewiththeconsolidatedfinancialstatementspublishedonJSCAtomenergoprom’sofficialwebsite.
14
JSC ATOMENERGOPROM Annual Report 2013- 106 107
Annex5.ListoftransactionsmadebyJSCAtomenergoprominthereportingperiod,andrecognisedasmajortransactions,towhichtheprocedureforapprovalsofmajortransactionsapplyasspecifiedintheArticlesofAssociation
TherewerenotransactionsmadebyJSCAtomenergopromin2013thatcouldberecognisedasmajortransactionsinaccordancewithRussianlawandrequiredapprovalsfromtheCompany’authorisedmanagementbody.
Annex6.ListofinterestedpartytransactionsbyJSCAtomenergoprominthereportingyear
No. Date of the resolution by the Board of Directors of JSC Atom-energoprom
Material terms and conditions of the interested party transactions, and the requirement for the approval by the Board of Directors of JSC Atomenergoprom
1. 11.01.2013 1)Acquisitionofconsultingservices,betweenJSCAtomenergopromandJSCAtomenergomash,onthefollowingtermsandconditions:Partiestothetransaction:JSCAtomenergoprom(Agent),JSCAtomenergomash(Principal).Subjectofthetransaction:thePrincipalcommissionstheAgentwithmakinganagreementwiththeawardwinnerfortherenderingofconsultingservicesonthetransferpricingissuesonsuchtermsandconditionsasspecifiedintheadditionalagreement.Priceofthetransaction:nomorethan1.400.000.00roubles,VATincluded,plustheAgent’scommissionof1%oftheAgent’sexpenditures.Transactionterm:fromthetimeofthesigningoftheadditionalagreementuntil30.04.2013.
2)Acquisitionofconsultingservices,betweenJSCAtomenergopromandJSCGrinatom,onthefollowingtermsandconditions:Partiestothetransaction:JSCAtomenergoprom(Agent),JSCGrinatom(Principal).Subjectofthetransaction:thePrincipalcommissionstheAgentwithmakinganagreementwiththeawardwinnerfortherenderingofconsultingservicesonthetransferpricingissuesonsuchtermsandconditionsasspecifiedintheadditionalagreement.Priceofthetransaction:nomorethan560.000.00roubles,VATincluded,plustheAgent’scommissionof1%oftheAgent’sexpenditures.Transactionterm:fromthetimeofthesigningoftheadditionalagreementuntil30.04.2013.
3)Acquisitionofconsultingservices,betweenJSCAtomenergopromandJSCAtomredmetzoloto,onthefollowingtermsandconditions:Partiestothetransaction:JSCAtomredmetzoloto(Principal),JSCAtomenergoprom(Agent).Subjectofthetransaction:thePrincipalcommissionstheAgentwithmakinganagreementwiththeawardwinnerfortherenderingofconsultingservices;Priceofthetransaction:nomorethan2.240.000.00roubles,plustheAgent’scommissionof1%.Transactionterm:fromthetimeofthesigningoftheadditionalagreementuntil30.04.2013.
4)Acquisitionofconsultingservices,betweenJSCAtomenergopromandJSCTechsnabexport,onthefollowingtermsandconditions:Partiestothetransaction:JSCAtomredmetzoloto(Principal),JSCAtomenergoprom(Agent).Subjectofthetransaction:thePrincipalcommissionstheAgentwithmakinganagreementwiththeawardwinnerfortherenderingofconsultingservices.Priceofthetransaction:nomorethan1.820.000.00roubles,plustheAgent’scommissionof1%.Transactionterm:fromthetimeofthesigningoftheadditionalagreementuntil30.04.2013.
5)Ongranting therightofuseof theunified industryenterpriseresourcemanagementsystembasedon thesoftwareproduct“1C:ManufacturingEnterpriseManagement8”–1СERP:Rosatom(“theSystem”hereinafter),madebetweenJSCAtomenergopromandJSCOZTMiTSonthefollowingtermsandconditions:Partiestothetransaction:Licensor–JSCAtomenergoprom;Licensee–JSCOZTMiTS.Subjectofthetransaction:theLicensor,beingtheholderoftheexclusiverightsontheunifiedindustryenterpriseresourcemanagementsystembasedonthesoftwareproduct“1C:ManufacturingEnterpriseManagement8”–1СERP:Rosatom(“theSystem”hereinafter),undertakestogranttotheLicenseetherightofuseof(anordinary(nonexclusive)licencefor)theSystem,andtheLicenseeundertakestoremuneratetheLicensorforthegrantingoftherightofuseoftheSysteminsuchamountandonsuchtermsandconditionsasspecifiedintheAgreement.Priceofthetransaction:theremunerationsumis6.169.629(sixmillion,onehundredandsixty-ninethousand,sixhundredandtwenty-nine)roublesand78kopecks.TheremunerationisVAT-exempt,asperArt.149,par.2,subpar.26oftheRussianFederationTaxCode.Term:therightofuseoftheSystemisgrantedbytheLicensortotheLicenseeforatermof3(three)years.
6)Agreementsongrantingtherightofuseofasystem(CorporationSettlementCentreInformationSystem,CSCIS)betweenJSCAtomenergopromandtheindustry’senterprises,aslistedinthetablebelow,onthefollowingtermsandconditions:
JSC ATOMENERGOPROM Annual Report 2013- 108 109
No. Date of the resolution by the Board of Directors of JSC Atom-energoprom
Material terms and conditions of the interested party transactions, and the requirement for the approval by the Board of Directors of JSC Atomenergoprom
Parties Subject Price of transactions (roubles)
Term
Licensee–JSCAtomenergopromSublicensee–JSCUECC
GrantingoftherightofuseoftheCSCIS
909.607.20 4yearsfromthetimeofconclusion
Licensee–JSCAtomenergopromSublicensee–JSCNIKIMTAtomstroy
GrantingoftherightofuseoftheCSCIS
181.921.44 4yearsfromthetimeofconclusion
Licensee–JSCAtomenergopromSublicensee–JSCBalticNPP
GrantingoftherightofuseoftheCSCIS
181.921.44 4yearsfromthetimeofconclusion
Licensee–JSCAtomenergopromSublicensee–JSCNPCC
GrantingoftherightofuseoftheCSCIS
545.764.32 4yearsfromthetimeofconclusion
7) On granting the right of use of intellectual property (CONTENT SERVER ST, WEBTOP CLIENT ST) betweenJSCAtomenergopromand the industry’senterprises,as listed in the tablebelow,on the following termsandconditions:
Parties Subject Price of transactions (roubles)
Term
Licensee–JSCAtomenergopromSublicensee–JSCRusatomService
Agreementongrantingtherightofuseofintellectualproperty(CONTENTSERVERST,WEBTOPCLIENTST)
206.901.60 4yearsfromthetimeofconclusion
Licensee–JSCAtomenergopromSublicensee–JSCASE
Agreementongrantingtherightofuseofintellectualproperty(CONTENTSERVERST,WEBTOPCLIENTST)
594.842.10 4yearsfromthetimeofconclusion
Licensee–JSCAtomenergopromSublicensee–JSCScienceandInnovations
Agreementongrantingtherightofuseofintellectualproperty(CONTENTSERVERST,WEBTOPCLIENTST)
217.246.68 4yearsfromthetimeofconclusion
2. 14.01.2013 Onrenderingconsultingservices,betweenJSCGrinatomandJSCAtomenergoprom,onthefollowingtermsandconditions:Partiestotheagreement:JSCAtomenergoprom(Customer),JSCGrinatom(Contractor).Subjectoftheagreement:TheContractorundertakestorendertotheCustomerfixedassetaccountingservicesasperinternationalfinancialaccountabilitystandardsusingsuchproceduresandonsuchtermsandconditionsasspecifiedintheAgreement.Priceoftheagreement:66.511.286(sixty-sixmillion,fivehundredandeleventhousand,twohundredandeighty-six)roublesand88kopecks,includingan18%VATof10.145.789(tenmillion,onehundredandforty-fivethousand,sevenhundredandeighty-nine)roublesand52kopecks.Termoftheagreement:fromthetimeofconclusionuntilcompletefulfilmentofobligationsbytheparties.
TheLoanAgreementbetweenJSCAtomenergopromandJSCATAonthefollowingtermsandconditions:Partiestothetransaction:JSCATA(Lender),JSCAtomenergoprom(Borrower).Subjectofthetransaction:theLenderprovidesmoneyontheloantermsandconditionsinwholeorinpart,thetotaldebtsumonwhichatalltimesduringtheLoanAgreementvalidityperioddoesnotexceed100.000.000.00(onehundredmillion)roubles,andonsuchtermsandconditionsasspecifiedintheLoanAgreement,andtheBorrowerundertakestorepaythereceivedmoneyandpayaninterestonthesamewithinsuchdatesandusingsuchproceduresasspecifiedintheLoanAgreement.Interestrate:nolessthan3%(threepercent)perannum.TermoftheLoanAgreement:until31December2015,inclusively.Loaningprocedure:TheLendergrantstheloaninkindbytransferringtheloaninwholeorinparttotheBorrower’saccountshownintheBorrower’sApplications,asspecifiedintheBorrower’swrittenApplication.
No. Date of the resolution by the Board of Directors of JSC Atom-energoprom
Material terms and conditions of the interested party transactions, and the requirement for the approval by the Board of Directors of JSC Atomenergoprom
3. 18.01.2013 1)ThesuretyagreementbetweenJSCAtomenergoprom,JSCNIAEPandJSCConcernRosenergoatominregardtotheobligationsarisingfromworkandservicesagreementNo.5885,dated15.11.2012,madebetweenJSCNIAEPandJSCConcernRosenergoatom,onthefollowingtermsandconditions:
Partiestothetransaction:JSCAtomenergoprom(Guarantor),JSCNIAEP(Debtor),JSCConcernRosenergoatom(Creditor).
Subjectof the transaction: JSCAtomenergopromundertakes tobe liable toJSCConcernRosenergoatom fortheproperfulfilmentofworkandservicesagreementNo.5885,“RenderingofServicestotheOperatorfortheDevelopmentandHandoverofDocumentationRequiredandSufficientforSecuringthePermitstoBuildPowerUnits1and2ofKurskNPPII”,dated15.11.2012.
Termoftheagreement:Thetermofthesuretyagreementisfromthesigningtimeuntil15.07.2016.
2) The surety agreement between JSC Atomenergoprom, JSC NIAEP and JSC Concern Rosenergoatom inregardtotheobligationsarisingfromworkandservicesagreementNo.5810,dated30.10.2012,madebetweenJSCNIAEPandJSCConcernRosenergoatom,onthefollowingtermsandconditions:
Partiestothetransaction:JSCAtomenergoprom(Guarantor),JSCNIAEP(Debtor),JSCConcernRosenergoatom(Creditor).
Subjectof the transaction: JSCAtomenergopromundertakes tobe liable toJSCConcernRosenergoatom fortheproperfulfilmentofworkandservicesagreementNo.5810“DevelopmentofDesignDocumentationfortheConstructionofPowerUnits1and2ofNizhnyNovgorodNPPintheAmountRequiredandSufficientforSecuringtheConstructionLicenceswhileEnsuringtheImprovementintheNPPDesignSafetybasedontheReferencetotheVVER-TOIBaseDesign”,dated30.10.2012.
3)ThesuretyagreementbetweenJSCAtomenergoprom,JSCSPbAEPandJSCAtomstroyexport in regard totheobligationsarisingfromworkandservicesagreementNo.3087/LYG2-7765/11575,dated02.04.2012,madebetweenJSCSPbAEPandJSCAtomstroyexport,onthefollowingtermsandconditions:
Parties to the transaction: JSC Atomenergoprom (Guarantor), JSC SPbAEP (Debtor), JSC Atomstroyexport(Creditor).
4. 21.01.2013 Onrenderingconsultingservices,madebetweenJSCGrinatomandJSCAtomenergoprom,basedonthefollowingtermsandconditions:
Parties to the agreement Subject of the agreement Price of transactions (roubles)
Term of the agreement
JSCAtomenergoprom,JSCGrinatom
RenderingofservicesregardingthecalculationofwagesforthepersonnelofJSCAtomenergopromundertheagreement,andpreparationofreportstobesubmittedtoaspecialisedorganisation
259.883.16 Fromthetimeofconclusionuntilthecompletefulfilmentofobligationsbytheparties.
JSCAtomenergoprom,JSCGrinatom
Renderingofservicesinbookkeepingandtaxaccountingofproperty,liability,andbusinesstransactions,andthepreparationofreports
22.292.955.00 Fromthetimeofconclusionuntilthecompletefulfilmentofobligationsbytheparties.
5. 22.01.2013 1)Onrenderingservicesforthepreparationofconsolidatedtaxpayergroupreports,betweenJSCAtomenergopromandJSCGrinatom,onthefollowingtermsandconditions:Partiestothetransaction:JSCAtomenergoprom(Customer),JSCGrinatom(Contractor).Subjectofthetransaction:theContractorundertakestorender,onapermanentbasisandonsuchtermsandconditionsasspecifiedintheAgreement,servicesforpreparingthereportsofaconsolidatedtaxpayergroup(theCTGhereinafter),asspecifiedinAnnex1totheAgreement,totheCustomerbeingaResponsibleMemberoftheCTG.ThelistoftheCTGmemberorganisationsisgiveninAnnex2oftheAgreement.ThelistandthescopeoftheServicesissubjecttomodificationorupdate,wherebythePartiesmakeamendmentstoAnnexesNos.1,2and3oftheAgreementbysigninganadditionalagreement.Priceofthetransaction:26.917.611(twenty-sixmillion,ninehundredandseventeenthousand,sixhundredandeleven)roublesand00kopecksincludingan18%VATof4.106.076.24(fourmillion,onehundredandsixthousand,seventy-six)roublesand24kopecks.Transactionterm:fromthetimeoftheconclusionuntilthecompletefulfilmentofobligationsbytheparties.
JSC ATOMENERGOPROM Annual Report 2013- 110 111
No. Date of the resolution by the Board of Directors of JSC Atom-energoprom
Material terms and conditions of the interested party transactions, and the requirement for the approval by the Board of Directors of JSC Atomenergoprom
2)TheLoanAgreementmadebetweenJSCAtomenergopromandJSCMachine-BuildingPlant:Partiestothetransaction:JSCAtomenergoprom(Borrower),JSCMachine-BuildingPlant(Lender).Subjectofthetransaction:undertheAgreement,theLendertransferstotheBorrower’sownershipthemoneyintheamountof200.000.000(twohundredmillion)roubles,andtheBorrowerundertakestorepaythereceivedloansumandpayaninterestforusingtheloanwithinsuchdatesandusingsuchproceduresasspecifiedintheAgreement.Loangrantingterm:until31.01.2013.Interestrate:8.95%(eightpointninety-fivepercent)perannum.Termoftheagreement:until06.11.2013.
3)TheLoanAgreementmadebetweenJSCAtomenergopromandJSCMachine-BuildingPlant:Partiestothetransaction:JSCAtomenergoprom(Borrower),JSCMachine-BuildingPlant(Lender).Subjectofthetransaction:undertheAgreement,theLendertransferstotheBorrower’sownershipthemoneyintheamountof400.000.000(fourhundredmillion)roubles,andtheBorrowerundertakestorepaythereceivedloansumandpayaninterestforusingtheloanwithinsuchdatesandusingsuchproceduresasspecifiedinintheAgreement.Loangrantingterm:until31.01.2013.Interestrate:9.1%(ninepointonepercent)perannum.Termoftheagreement:until18.11.2013.
6. 26.10.2012 Theinterestedpartytransaction,–AdditionalAgreementNo.1totheLoanAgreement,dated20.03.2012,betweenJSCAtomenergopromandJSCNPKKhimpromengineering,onthefollowingtermsandconditions:Partiestothetransaction:JSCAtomenergoprom(Lender),JSCNPKKhimpromengineering(Borrower).Subjectofthetransaction:theLenderprovidesthemoneyontheloantermsandconditionsinwholeorinpart,thetotaldebtamountonwhichatalltimesduringtheLoanAgreementvalidityperioddoesnotexceed1.095.400.000(onebillion,ninety-fivemillion,fourhundredthousand)roubles,andonsuchtermsandconditionsasspecifiedintheLoanAgreement,andtheBorrowerundertakestorepaythereceivedloansumandpayaninterestforusingtheloanwithinsuchdatesandusingsuchproceduresasspecifiedintheLoanAgreement.Interestrate:nomorethan11%(elevenpercent)perannum.Termoftheagreement:until31.12.2015.
7. 23.01.2013 1)LoanAgreementmadebetweenJSCAtomenergopromandLLCUnitedInvestingCorporationonthefollowingtermsandconditions:Partiestothetransaction:JSCAtomenergoprom(Lender)andLLCUnitedInvestingCorporation(Borrower).Subjectofthetransaction:theLenderprovidesthemoneyontheloantermsandconditionsinwholeorinpart,thetotaldebtamountonwhichatalltimesduringtheLoanAgreementvalidityperioddoesnotexceed52.000.000(fifty-twomillion)roubles,andonsuchtermsandconditionsasspecifiedintheAgreement,andtheBorrowerundertakestorepaythereceivedloansumandpayaninterestforusingtheloanwithinsuchdatesandusingsuchproceduresasspecifiedintheLoanAgreement.Loangrantingterm:31.12.2015.Interestrate:theloanisgrantedonaninterestrateofnolessthan3%(threepercent)oftheloansumperannum.Termoftheagreement:until31.15.2015.Sourceoffinancing:ownandloanmoneyofJSCAtomenergoprom.
2)ThesuretyagreementmadebetweenJSCAtomenergoprom,LLCESKARMZandJSCKhiagdawithrespecttotheobligationsarisingfromthesulphuricacidsupplyagreementplannedfortheconclusionbetweentheCreditorandtheDebtorastheresultofconductedtenderNo.121026/0619/819,onthefollowingtermsandconditions:Partiestothetransaction:JSCAtomenergoprom(Guarantor),LLCESKARMZ(Debtor),JSCKhiagda(Creditor).Subjectofthetransaction:JSC Atomenergoprom undertakes to be liable to JSC Khiagda for the improper fulfilment by LLC ESK ARMZof its obligations arising from the sulphuric acid supply agreement, in accordance with the name, technicaldocumentation,quality,quantity,anddatesandforsuchpriceasshowninthespecificationenclosedwiththesupplyagreement.Termoftheagreement:Termofthesuretyagreement:fromthetimeofthesigninguntil31.12.2013.
8. 24.01.2013 1)ThesuretyagreementmadebetweenJSCAtomenergoprom,FSUENITInamedafterA.P.Aleksandrov,andJSCVNIIAESwithrespect to theobligationsarising fromequipmentsupplyagreementNo.7000/54-17,dated15.10.2012,madebetweenFSUENITInamedafterA.P.AleksandrovandJSCVNIIAES,onthefollowingtermsandconditions:Partiestothetransaction:JSCAtomenergoprom(Guarantor),FSUENITInamedafterA.P.Aleksandrov(Debtor),JSCVNIIAES(Creditor).Subjectofthetransaction:JSCAtomenergopromundertakes tobe liable toJSCVNIIAES for the improper fulfilmentby theDebtorof itsobligationsarisingfromequipmentsupplyagreementNo.7000/54-17,dated15.10.2012.Termoftheagreement:thetermofthesuretyagreementisfromthetimeofsigninguntil25.12.2013.
No. Date of the resolution by the Board of Directors of JSC Atom-energoprom
Material terms and conditions of the interested party transactions, and the requirement for the approval by the Board of Directors of JSC Atomenergoprom
8. 24.01.2013 2)ThesuretyagreementmadebetweenJSCAtomenergoprom,FSUENITInamedafterA.P.Aleksandrov,andJSC VNIIAES with respect to the obligations arising from equipment supply agreement No.7000/54-17, dated15.10.2012,madebetweenFSUENITInamedafterA.P.AleksandrovandJSCVNIIAES,onthefollowingtermsandconditions:Partiestothetransaction:JSCAtomenergoprom(Guarantor),FSUENITInamedafterA.P.Aleksandrov(Debtor),JSCVNIIAES(Creditor).Subjectofthetransaction:JSCAtomenergopromundertakestobeliabletoJSCVNIIAESfortherepaymentoftheadvancemoneytransferredasperpar.7.1ofequipmentsupplyagreementNo.7000/54-17,dated15.10.2012.Termoftheagreement:Thetermofthesuretyagreementisfromthetimeofsigninguntil25.12.2013.
9. 29.01.2013 TheLoanAgreementmadebetweenJSCAtomenergopromandJSCPOMZMolniyaonthefollowingtermsandconditions:Partiestothetransaction:JSCPOMZMolniya(Lender),JSCAtomenergoprom(Borrower).Subjectofthetransaction:theLenderprovidesmoneyontheloantermsandconditionsinwholeorinpart,thetotaldebtamountonwhichatalltimesduringtheLoanAgreementvalidityperioddoesnotexceed15.000.000(fifteenmillion)roubles,andonsuchtermsandconditionsasspecifiedintheLoanAgreement,andtheBorrowerundertakestorepaythereceivedloansumandpayaninterestforusingtheloanwithinsuchdatesandusingsuchproceduresasspecifiedintheLoanAgreement.Interestrate:nolessthan3%(threepercent)perannum.TermoftheLoanAgreement:upto31December2013inclusively.Loangrantingprocedure:theLendergrantstheloanbytransferringtheloanmoneytotheBorrower’saccountinwholeorinpartinaccordancewiththeBorrower’swrittenApplications.
10. 30.01.2013 1)TheAgencyAgreementmadebetweenJSCAtomenergopromandLLCUnited InvestingCorporationon thefollowingtermsandconditions:Partiestothetransaction:JSCAtomenergoprom(Agent)andLLCUnitedInvestingCorporation(Principal).Subjectofthetransaction:Under theAgreement, thePrincipalcommissions theAgent inwriting,and theAgentundertakes,on itsownbehalfbutforthePrincipal’saccount,toperformactivitiesforsearchingfororganisationsthatrenderservicesinthesourcingandselectionofmanagerialstaff,andmakeagreementswithsaidorganisationsfortherenderingofsourcingandselectionservicestothePrincipal.Agent’scommission:theAgent’scommissionis1%(onepercent)ofthepriceoftheservices.Termoftheagreement:until31.12.2013.
2)OntherenderingofprojectmanagementserviceswithrespecttoprojectNo.111-01050“CompletionoftheAutomatedBudgetingSystem(ABS)subjecttotheRequirementsoftheUpdatedEPS”betweenJSCGrinatomandJSCAtomenergoprom,onthefollowingtermsandconditions:Parties:JSCAtomenergoprom–Customer,JSCGrinatom–Contractor.Subjectof the transaction:on theCustomer’scommission, theContractorundertakes to render theservicesforthemanagementofprojectNo.111-01050“CompletionoftheAutomatedBudgetingSystem(ABS)subjecttotheRequirementsoftheUpdatedEPS”(referredtoas“theProject”hereinafter),asperAnnexesNo.1and2tothisAgreement (“theServices”hereinafter),andtheCustomerundertakestoacceptandpayfortheservicesrenderedwithinsuchdatesandusingsuchproceduresasspecifiedintheAgreement.Priceoftheagreement:2.400.903(twomillion,fourhundredthousand,ninehundredandthree)roublesand00kopecks,includingan18%VATof366.239(threehundredandsixty-sixthousand,twohundredandthirty-nine)roublesand45kopecks.Termoftheagreement: fromthetimeoftheconclusionuntil thecompletefulfilmentof theobligationsbytheparties.
11. 01.02.2013 Additional agreement No.2 to agency agreement No. 1/2259-D/5/1432-D, dated 22 February 2012, as madebetweenRosatomStateCorporationandJSCAtomenergopromonthefollowingtermsandconditions:Partiestothetransaction:RosatomStateCorporation(Agent),JSCAtomenergoprom(Principal).Subjectofthetransaction:thePrincipalcommissionstheAgentinwritingandtheAgentcommitsitself,onitsownbehalfbutforthePrincipal’saccount,toperformactivitiesforthevoluntaryhealthinsuranceofthepersonnelofJSCAtomenergopromandtheirfamilymembers.Priceofthetransaction:–thepriceoftheserviceis807.976(eighthundredandseventhousand,ninehundredandseventy-six)roublesand75kopecks,–theAgent’scommissionis1%(onepercent)ofthepriceoftheservices,includingan18%VAT.Termoftheagreement:until31December2013.
JSC ATOMENERGOPROM Annual Report 2013- 112 113
No. Date of the resolution by the Board of Directors of JSC Atom-energoprom
Material terms and conditions of the interested party transactions, and the requirement for the approval by the Board of Directors of JSC Atomenergoprom
12. 04.02.2014 1)ThesuretyagreementbetweenJSCAtomenergoprom,JSCOKBMAfrikantov,andJSCConcernRosenergoatomconcerningtheobligationsarisingfromworkagreementNo.9/1713-D,dated28.08.2012,madebetweenJSCOKBMAfrikantovandJSCConcernRosenergoatom,onthefollowingtermsandconditions:Parties to the transaction: JSC Atomenergoprom (Guarantor), JSC OKBM Afrikantov (Debtor), JSC ConcernRosenergoatom(Creditor).Subjectof the transaction:JSCAtomenergopromundertakes tobe liable toJSCConcernRosenergoatomfor therepaymentoftheadvancemoneytransferredasperpar.2.3ofagreementNo.9/1713-D,dated28.08.2012,fortheresearchanddevelopmenteffortentitled“R&DfortheFeasibilityStudyoftheBN-1200ReactorCore”.Price:37.500.000.00(thirty-sevenmillion,fivehundredthousand)roubles.Termoftheagreement:thetermofthesuretyagreementisfromthetimeofthesigninguntil05.12.2016.
2)ThesuretyagreementmadebetweenJSCAtomenergoprom,JSCOKBMAfrikantov,andJSCConcernRosenergoatomwithrespecttotheobligationsarisingfromworkagreementNo.9/1713-D,datedasof28.08.2012,madebetweenJSCOKBMAfrikantovandJSCConcernRosenergoatom,onthefollowingtermsandconditions:Parties to the transaction: JSC Atomenergoprom (Guarantor), JSC OKBM Afrikantov (Debtor), JSC ConcernRosenergoatom(Creditor).Subjectofthetransaction:JSCAtomenergopromundertakestobeliabletoJSCConcernRosenergoatomfortheproperfulfilmentofcontractNo.9/1713-D,dated28.08.2012,fortheresearchanddevelopmenteffortentitled“R&DfortheFeasibilityStudyoftheBN-1200ReactorCore”.Price:6.250.000.00(sixmillion,twohundredandfiftythousand)roubles.Termoftheagreement:Thetermofthesuretyagreementisfromthetimeofthesigninguntil05.12.2016.
3) The surety agreement made between JSC Atomenergoprom, JSC SPbAEP, and JSC Concern Rosenergoatomconcerning the obligations arising from work agreement No. 3115/BN/5611, dated 07.06.2012, as amended byAdditionalAgreementNo.1,dated14.12.2012,madebetweenJSCSPbAEPandJSCConcernRosenergoatom,onthefollowingtermsandconditions:Partiestothetransaction:JSCAtomenergoprom(Guarantor),JSCSPbAEP(Debtor),JSCConcernRosenergoatom(Creditor).Subjectof the transaction:JSCAtomenergopromundertakes tobe liable toJSCConcernRosenergoatomfor theproper fulfilmentofagreementNo.3115/BN/5611,dated07.06.2012 (asamendedbyAdditionalAgreementNo.1,dated14.12.2012),fortheeffortentitled“R&DfortheFeasibilityStudyoftheBN-1200NPPDesign”.Price:22.600.000(twenty-twomillion,sixhundredthousand)roubles.Termoftheagreement:Thetermofthesuretyagreementisfromthetimeofthesigninguntil05.12.2016.
4)ThesuretyagreementmadebetweenJSCAtomenergoprom,JSCIndustrialInnovations,andJSCOKBMAfrikantovconcerningtheobligationsarisingfromagreementNo.25/35/382,dated09.10.2012,asmadebetweenJSCIndustrialInnovationsandJSCOKBMAfrikantov,onthefollowingtermsandconditions:Parties to the transaction: JSC Atomenergoprom (Guarantor), JSC Industrial Innovations (Debtor), JSC OKBMAfrikantov(Creditor).Subjectofthetransaction:JSCAtomenergopromundertakestobeliabletoJSCOKBMAfrikantovfortherepaymentoftheadvancemoneytransferredaspersubpar.2.4ofcontractNo.25/35/382,dated9October2012.Price:18.974.500.00(eighteenmillion,ninehundredandseventy-fourthousand,fivehundred)roubles.Termoftheagreement:Thetermofthesuretyagreementisfromthetimeofthesigninguntiltheactualdateoftheequipmentsupplytotheconsigneeasperpar.1.2ofagreementNo.25/35/382,dated09.10.2012,plus365(threehundredandsixty-five)calendardays.
13. 07.02.2013 1) The surety agreement made between JSC Atomenergoprom and Nomos-Bank (Joint-Stock Company) on thefollowingtermsandconditions:Parties to the transaction: JSC Atomenergoprom (Guarantor), Nomos-Bank (Joint-Stock Company) (Creditor),JSCVNIIAM(Debtor).Subjectofthetransaction:JSCAtomenergopromundertakestobeliabletoNomos-Bank(Joint-StockCompany)forthefulfilmentbyJSCVNIIAMofallitsobligationstotheCreditor,asarisingfrombankguaranteeagreementNo.1808-12/DBG,infavourofJoint-StockCompanyDirectorateoftheIntegratedOrderfortheNPPEquipment(JSCDIO).Price:tobedeterminedbasedonthefollowingindicators:– overall scope of liability under the guarantee – 63.679.933 (sixty-three million, six hundred and seventy-ninethousand,ninehundredandthirty-three)roublesand84kopecks;–commissionforgrantingtheguarantee-0.3%(naughtpointthreetenthspercent)perannumoftheGuaranteesum;–theone-timecommissionis10.000.00(tenthousand)roubles;–bankguaranteevalidityperiod:fromthetimeofthegrantinguntil30April2014;–intheeventoftheDebtor’sfailuretofulfilorproperlyfulfilitsobligationstotheCreditor,theDebtorwillpaytotheCreditorapenaltyof5.000.00(fivethousand)roubles;and–intheeventoftheDebtor’sfailuretofulfilorproperlyfulfilthesurety-securedobligation,theGuarantorandtheDebtorshallbesolidaryliabletotheCreditor.Termoftheagreement:Thetermofthesuretyagreementisfromthetimeofthesigninguntil30.07.2016.
No. Date of the resolution by the Board of Directors of JSC Atom-energoprom
Material terms and conditions of the interested party transactions, and the requirement for the approval by the Board of Directors of JSC Atomenergoprom
2)OnprovidingasecurityintheformofsuretyNo.5/2319-DmadebetweenJSCAtomenergopromandJSCVNIIAM,onthefollowingtermsandconditions:Partiestothetransaction:JSCAtomenergoprom(Guarantor),JSCVNIIAM(Debtor).Subjectofthetransaction:JSCAtomenergopromundertakestomakeasuretyagreementwithNomos-Bank(Joint-StockCompany)asasecuritywithrespecttotheproperfulfilmentbyJSCVNIIAMofallitsobligationsarisingfrombankguaranteeagreementNo.1808-12/DBG.Priceofthetransaction:1.180.00(onethousandonehundredandeighty)roubles,includingan18%VATof180.00(onehundredandeighty)roubles.Termoftheagreement:Thetermoftheagreementofsecurityintheformofsuretyisfromthetimeofthesigninguntil30.07.2016.Othermaterialtermsandconditionsofthetransaction:theGuarantor’sobligationsshallbedeemedtohavebeenfulfilledatthetimeoftheconclusionofthesuretyagreement.
3) The surety agreement made between JSC Atomenergoprom and Nomos-Bank (Joint-Stock Company) on thefollowingtermsandconditions:Partiestothetransaction:JSCAtomenergoprom(Guarantor),Nomos-Bank(OpenJoint-StockCompany)(Creditor),JSCVNIIAM(Debtor).Subjectofthetransaction:JSCAtomenergopromundertakestobeliabletoNomos-Bank(Joint-StockCompany)forthefulfilmentbyJSCVNIIAMofallitsobligationstotheCreditor,arisingfrombankguaranteeagreementNo.1810-12/DBGinfavourofJoint-StockCompanyDirectorateoftheIntegratedOrderfortheNPPEquipment(JSCDIO).Price:tobedeterminedbasedonthefollowingindicators:–overallscopeofliabilityundertheguarantee–7.959.991(sevenmillion,ninehundredandfifty-ninethousand,ninehundredandninety-nine)roublesand73kopecks;–commissionforgrantingtheguarantee-0.3%(naughtpointthreepercent)perannumoftheGuaranteesum;–theone-timecommissionis10.000.00(tenthousand)roubles;–bankguaranteevalidityperiod:fromthetimeofthegrantinguntilMay30,2014;–intheeventoftheDebtor’sfailuretofulfilorproperlyfulfilitsobligationstotheCreditor,theDebtorwillpaytotheCreditorapenaltyof5.000.00(fivethousand)roubles;and–intheeventoftheDebtor’sfailuretofulfilorproperlyfulfilthesurety-securedobligation,theGuarantorandtheDebtorshallbesolidaryliabletotheCreditor.Termoftheagreement:Thetermofthesuretyagreementisfromthetimeofthesigninguntil30.08.2016.
4)OnprovidingasecurityintheformofsuretyNo.5/2318-DmadebetweenJSCAtomenergopromandJSCVNIIAMonthefollowingtermsandconditions:Partiestothetransaction:JSCAtomenergoprom(Guarantor),JSCVNIIAM(Debtor).Subjectofthetransaction:JSCAtomenergopromundertakestomakeasuretyagreementwithNomos-Bank(OpenJoint-StockCompany)asasecurityfortheproperfulfilmentbyJSCVNIIAMofallitsobligationsarisingfrombankguaranteeagreementNo.1810-12/DBG.Priceofthetransaction:1.180.00(onethousand,onehundredandeighty)roubles,includingan18%VATof180.00(onehundredandeighty)roubles.Termoftheagreement:Thetermoftheagreementonprovidingasecurityintheformofsuretyisfromthetimeofthesigninguntil30.08.2016.Othermaterialtermsandconditionsofthetransaction:theGuarantor’sobligationsshallbedeemedtohavebeenfulfilledatthetimeoftheconclusionofthesuretyagreement.
5)ThesuretyagreementmadebetweenJSCAtomenergopromandNomos-Bank(OpenJoint-StockCompany)onthefollowingtermsandconditions:Partiestothetransaction:JSCAtomenergoprom(Guarantor),Nomos-Bank(OpenJoint-StockCompany)(Creditor),JSCVNIIAM(Debtor).Subjectofthetransaction:JSC Atomenergoprom undertakes to be liable to Nomos-Bank (Joint-Stock Company) for the fulfilment by JSCVNIIAMofallitsobligationstotheCreditor,arisingfrombankguaranteeagreementNo.3245-12/DBG,infavourofJoint-StockCompanyGruppaE4 (location:12Krasnopresnenskayanaberezhnaya,entrance9,Moscow12123610,TIN7720554943,RRC774501001).Price:tobedeterminedbasedonthefollowingindications:–overallscopeofliabilityundertheguarantee–5.070.600(fivemillion,seventythousand,andsixhundred)roubles;–commissionforgrantingaguarantee-0.3%(naughtpointthreepercent)perannumoftheguaranteesum;–theone-timecommissionis10.000.00(tenthousand)roubles;–bankguaranteevalidityperiod:fromthetimeofgrantinguntil14July2013;–intheeventoftheDebtor’sfailuretofulfilorproperlyfulfilitsobligationstotheCreditor,theDebtorwillpaytheCreditorapenaltyof5.000.00(fivethousand)roubles;and–intheeventoftheDebtor’sfailuretofulfilorproperlyfulfilthesurety-securedobligation,theGuarantorandtheDebtorshallbejointlyliabletotheCreditor.Termoftheagreement:Thetermofthesuretyagreementisfromthetimeofthesigninguntil14.10.2015.
JSC ATOMENERGOPROM Annual Report 2013- 114 115
No. Date of the resolution by the Board of Directors of JSC Atom-energoprom
Material terms and conditions of the interested party transactions, and the requirement for the approval by the Board of Directors of JSC Atomenergoprom
6)OnprovidingasecurityintheformofsuretyNo.5/2320-DmadebetweenJSCAtomenergopromandJSCVNIIAM,onthefollowingtermsandconditions:Partiestothetransaction:Guarantor–JSCAtomenergoprom,Debtor–JSCVNIIAM.Subjectofthetransaction:JSCAtomenergopromundertakestomakeasuretyagreementwithNomos-Bank(OpenJoint-StockCompany)asasecuritywith respect to theproper fulfilmentbyJSCVNIIAMofall itsobligationsarising frombankguaranteeagreementNo.3245-12/DBG.Priceofthetransaction:1.180.00(onethousand,onehundredandeighty)roubles,includingan18%VATof180.00(onehundredandeighty)roubles.Termoftheagreement:Thetermoftheagreementonprovidingasecurityintheformofsuretyisfromthetimeofthesigninguntil14.10.2015.Othermaterialtermsandconditionsofthetransaction:theGuarantor’sobligationsshallbedeemedtohavebeenfulfilledatthetimeoftheconclusionofthesuretyagreement.
7) The surety agreement between JSC Atomenergoprom, JSC Atomenergoproekt, and JSC Atomstroyexport withrespecttotheobligationsarisingfromworkandservicesagreementNo.7717/12073/12120/222,dated25.12.2012,madebetweenJSCAtomstroyexportandJSCAtomenergoproekt,onthefollowingtermsandconditions:Partiestothetransaction:JSCAtomenergoprom(Guarantor),JSCAtomenergoproekt(Debtor),JSCAtomstroyexport(Creditor).Subjectofthetransaction:JSC Atomenergoprom undertakes to be liable to JSC Atomstroyexport for the improper fulfilment byJSCAtomenergoproektofitsobligationsarisingfromagreementNo.7717/12073/12120/222,dated25.12.2012,fortheeffortentitled“DevelopmentofEngineeringSurveyMaterialsfortheAkkuyuNPPSiteintheTurkishRepublic,DesignDocumentationPhase”.Price:5.000.000.00(fivemillion)roublesand00kopecks.Termoftheagreement:Thetermofthesuretyagreementisfromthetimeofthesigninguntil04.03.2014.
14. 08.02.2013 1) The surety agreement between JSC Atomenergoprom, JSC Industrial Innovations, and JSC OKBM Afrikantovconcerning the obligations arising from agreement No. 25/35/467, dated 28 December 2012, made betweenJSCIndustrialInnovationsandJSCOKBMAfrikantov,onthefollowingtermsandconditions:Parties to the transaction: JSC Atomenergoprom (Guarantor), JSC Industrial Innovations (Debtor), JSC OKBMAfrikantov(Creditor).Subjectofthetransaction:JSCAtomenergopromundertakestobeliabletoJSCOKBMAfrikantovforthetimelyfulfilmentbytheDebtorofitsobligationsarisingfromagreementNo.25/35/467,dated28December2012.Price:9.975.000.00(ninemillion,ninehundredandseventy-fivethousand)roubles.Termoftheagreement:Thetermofthesuretyagreementisfromthetimeofthesigninguntiltheactualdateoftheequipmentsupplytotheconsigneeasperpar.1.2ofagreementNo.25/35/467,dated28December2012,plus365(threehundredandsixty-five)calendardays.
2)ThesuretyagreementbetweenJSCAtomenergoprom,JSCVNIPIpromtekhnologii,andJSCDalurwithrespecttotheobligationsarisingfromagreementNo.099/2012/12-03/321-2246,dated6November2012,madebetweenJSCVNIPIpromtekhnologiiandJSCDaluronthefollowingtermsandconditions:Parties to the transaction: JSC Atomenergoprom (Guarantor), JSC VNIPIpromtekhnologii (Debtor), JSC Dalur(Creditor).Subjectofthetransaction:JSCAtomenergopromundertakestobeliabletoJSCDalurfortheimproperfulfilmentbytheDebtorofitsobligationsarisingfromagreementNo.099/2012/12-03/321-2246,dated6November2012madewiththeCreditor.Price:959.353.80(ninehundredandfifty-ninethousand,threehundredandfifty-three)roublesand80kopecks.Termoftheagreement:Thetermofthesuretyagreementisuntil28.04.2013.
3)ThesuretyagreementmadebetweenJSCAtomenergoprom,JSCVNIPIpromtekhnologii, andJSCPPMCAwithrespecttotheobligationsarisingfromcontractoragreementNo.100-10-05/18312,dated04.12.2012,madebetweentheCreditorandtheDebtor,onthefollowingtermsandconditions:Parties to the transaction: JSC Atomenergoprom (Guarantor), JSC VNIPIpromtekhnologii (Debtor), JSC PPMCA(Creditor).Subjectofthetransaction:JSCAtomenergopromundertakestobeliabletoJSCPPMCAfortheimproperfulfilmentbyJSCVNIPIpromtekhnologiiofitsobligationsarisingfromthecontractoragreement.Price:5.000.000.00(fivemillion)roublesand00kopecks.Termoftheagreement:Thetermofthesuretyagreementisfromthetimeofthesigninguntil15.12.2014.
No. Date of the resolution by the Board of Directors of JSC Atom-energoprom
Material terms and conditions of the interested party transactions, and the requirement for the approval by the Board of Directors of JSC Atomenergoprom
4)Ongrantingtherightofuseofasystem(UnifiedIndustryElectronicDocumentManagementSystem,UIEDMS)betweenJSCAtomenergopromandtheindustry’senterprises,aslistedinthetablebelow,onthefollowingtermsandconditions:
Parties Subject Price of transactions (roubles)
Term
Licensor–JSCAtomenergopromLicensee–JSCLeadingResearchInstituteofChemicalTechnology(VNIIKhT)
GrantingoftherightofuseoftheUIEDMS
468.714.80 4yearsfromthetimeofconclusion
Licensor–JSCAtomenergopromLicensee–JSCScienceandInnovations
GrantingoftherightofuseoftheUIEDMS
492.150.54 4yearsfromthetimeofconclusion
Licensor–JSCAtomenergopromLicensee–JSCPilotDesignBureauofMachine-BuildingnamedafterI.I.Afrikantov(JSCOKBMAfrikantov)
GrantingoftherightofuseoftheUIEDMS
24.701.269.96 4yearsfromthetimeofconclusion
Licensor–JSCAtomenergopromLicensee–JSCAtomkomplekt
GrantingoftherightofuseoftheUIEDMS
468.714.80 4yearsfromthetimeofconclusion
Licensor–JSCAtomenergopromLicensee–JSCKovrovMechanicalPlant
GrantingoftherightofuseoftheUIEDMS
7.616.615.50 4yearsfromthetimeofconclusion
Licensor–JSCAtomenergopromLicensee–JSCNovosibirskPlantofChemicalConcentrates
GrantingoftherightofuseoftheUIEDMS
4.335.611.90 4yearsfromthetimeofconclusion
Licensor–JSCAtomenergopromLicensee–JSCAngarskElectrolysisChemicalCombine
GrantingoftherightofuseoftheUIEDMS
5.858.935.00 4yearsfromthetimeofconclusion
Licensor–JSCAtomenergopromLicensee–JSCTENEX-Komplekt
GrantingoftherightofuseoftheUIEDMS
152.332.31 4yearsfromthetimeofconclusion
Licensor–JSCAtomenergopromLicensee–JSCKraun
GrantingoftherightofuseoftheUIEDMS
363.253.97 4yearsfromthetimeofconclusion
JSC ATOMENERGOPROM Annual Report 2013- 116 117
ListofAbbreviations
AAED annualaverageeffectivedose
AEIC atomicenergyinformationcentres
ARSMS automatedradiationsituationmonitoringsystem
BOO build-own-operate
CATF closedadministrativeandterritorialformation
CNFC closednuclearfuelcycle
CIS CommonwealthofIndependentStates
CRMS corporateriskmanagementsystem
EBIDTA EarningsBeforeInterestDepreciationTaxandAmortisation
ESS examinationandsearchsystem
EUP enricheduraniumproduct
EurAsEC EurasianEconomicCommunity
FA fuelassembly
FFMS FederalFinancialMarketsService
FSMC FederalSecuritiesMarketCommission
FTP federaltargetprogramme
FTS FederalTariffService
HEU highlyenricheduranium
HLW high-levelwaste
IAEA InternationalAtomicEnergyAgency
ICUF installedcapacityutilisationfactor
IFRS InternationalFinancialReportingStandards
IGA intergovernmentalagreement
INES InternationalNuclearEventScale
IP intellectualproperty
IRAW individualriskassessmentworkstation
IRG inertradioactivegas
ITER InternationalThermonuclearExperimentalReactor
IUEC InternationalUraniumEnrichmentCentre
JSC joint-stockcompany
JV jointventure
KPI keyperformanceindicator
LC lifecycle
LEU low-enricheduranium
LRW liquidradioactivewaste
LWR light-waterreactors
MSSC multifunctionalsharedservicingcentre
NFC nuclearfuelcycle
NFC FE nuclearfuelcyclefront-end
NPP nuclearpowerplant
NRHI nuclear-andradiation-hazardousinstallation
NRS nuclearandradiationsafety
OECD NEA OrganisationforEconomicCooperationandDevelopmentNuclearEnergyAgency
PSRN primarystateregistrationnumber
R&D researchanddevelopment
ROSATOM theStateAtomicEnergyCorporation“Rosatom”
RBMK high-powerchannel-typereactor
RF RussianFederation
Rostekhnadzor FederalEnvironmental,TechnologicalandNuclearSupervisionService
RUIE RussianUnionofIndustrialistsandEntrepreneurs
RW radioactivewaste
SNF spentnuclearfuel
SWU separativeworkunit
TIN taxpayeridentificationnumber
UIDMS unifiedindustrydocumentmanagementsystem
UNO UnitedNationsOrganisation
USRS unifiedstandardisedremunerationsystem
VVER water-cooledwater-moderatedpowerreactor
JSC ATOMENERGOPROM Annual Report 2013- 118 119
Glossary
BOO (Build – Own – Operate) contract acontractthatprovidesfortheobligationoftheconstruction,ownership,andoperationofafacility.
Closed nuclear fuel cycle anuclear fuelcycle, inwhichspentnuclear fuel isprocessed foruraniumandplutoniumextractionfornuclearfuelre-fabrication.
Corporate social accountability aconceptbasedonwhichanorganisationtakesaccountofthestakeholderrequests.Thisisapackageofobligationsgenerated,onavoluntarybasis,bytheorganisation’sexecutiveswithregardtotheinterestsofpersonnel,shareholders,localcommunitiesintheoperatingareas,state,andmunicipalpowerbodies,andotherstakeholders.Theseobligationsare largelyfulfilled at the expense of the organisation’s funds and are aimed at the implementationof significant internal and external social (in the broad sense of the word) programmes,theresultsofwhichcontributetothedevelopmentoftheorganisationandtoitsimprovedreputationandimage,aswellastoconstructivestakeholderengagement.
Depleted uranium uraniumthatcontainslessisotopesofU-235thannaturaluranium(forexample,uraniuminthespentfuelofreactorsfuelledbynaturaluranium).
Dialogue with STAKEHOLDERS (as part of the annual report preparation)
anarrangementundertakenundertheAA100internationalstandardsfortheengagementof representatives of the stakeholders during the report preparation to enhance theorganisation’stransparencyandaccountability.
Dump of radioactive material controlledentryofradionuclidesintowaterbodieswithliquidwasteofanuclearfacility(e.g.anuclearplant).
Enrichment (isotopic) a)thecontentofatomsofacertainisotopeintheisotopicmixtureofthesameelementifthisexceedstheshareofthegivenisotopeinanaturallyoccurringmixture(expressedasapercentage);b)aprocessresultinginanincreasedcontentofacertainisotopeintheisotopicmixture.
EPC (Engineering – Procurement - Construction) contract
acontractthatprovidesfortheobligationoftheturnkeyconstructionofafacility,includingthefacilityengineering,supply,andconstructionobligations.UnlikeaBOOContract,itdoesnotprovidefortheownershipofthefacilitytobebuilt.
EPCM (Engineering – Procurement – Construction - Management) contract
acontractthatprovidesfortheobligationoftheturnkeyconstruction(includingengineering,supply,andconstruction)andmanagementofafacility.UnlikeaBOOContract,itdoesnotprovidefortheownershipofthefacilitytobebuilt.
Fast neutrons neutrons,thekineticenergyofwhichexceedsaparticulargivenmagnitude.Thismagnitudeisvariableinabroadrangeanddependsontheapplication(reactorphysics,protection,orradiationmonitoring).Inreactorphysics,thismagnitudeismostlyselectedasequalling0.1MeV.
First criticality astageinthenuclearplantcommissioning,includingthereactorfuelling,firstcriticality,andrequiredphysicalexperimentsconductedatthepowerlevelatwhichheatisremovedfromthereactorthankstonaturalheatlosses.
Fuel assembly a package of fuel elements (rods, bars, plates, and others) held together with the aid ofspacergridsandotherstructuralmembers,whichareintegralduringtransportationandin-pileirradiation.Assembliesareloadedintothenuclearreactorcore.
Global Reporting Initiative (GRI) an international reporting system concerning the economic, environmental and socialperformance, based on the Sustainability Reporting Guidelines, Technical Protocols, andindustryapplications.
HEU-LEU Agreement the Agreement between the Government of the Russian Federation and the Governmentof the United States of America Concerning the Disposition of Highly-Enriched UraniumExtractedfromNuclearWeapons,underwhichRussiahadcommitteditselftosupplyingtotheUSAduring20years(untiltheendof2013)low-enricheduranium(LEU)obtainedfrom500tonnesofhighlyenricheduranium(HEU)extractedfromnuclearwarheadsandfoundbytheRussiansidetobeexcessivefordefensiveapplications.
Installed capacity utilisation factor (ICUF) the relation of the actual electricity generation by a reactor facility during the period ofoperationtotheelectricitygenerationduringrated-poweroperationswithnoshutdowns.
Integrated report a report that consolidates all material data on the organisation’s strategy, corporatemanagement, performance indicators, and prospects such that it would “show” in anintegratedwaytheorganisation’seconomic,social,andenvironmentalstatus.Thereportgivesaclearanddistinctideaabouthowtheorganisationcarriesoutreasonablecontrol,aswellashowitcreatesitsvalueatthepresenttimeorwillcreateitinfuture.
International Integrated Reporting Council (IIRC)
aninternationalorganisationengagedinthedevelopmentofagloballyintegratedreportingstandard to allow for managerial, financial, social, environmental, and other informationto be provided in an understandable, concise, self-consistent, and comparable reportingdocument.TheIIRCobjectiveistodevelopversatileapproachestothedeliveryofcorporatereportsinordertocontributetothesustainabledevelopmentofglobaleconomy.
Key performance indicators (KPI) keyefficiency indicatorsmeeting thegoalsofRosatomStateCorporation,whichdisclosetheefficiencyandperformanceoforganisations(andoftheactivitiesbydivisions)andtheindividualefficiencyofemployees.
Non-financial reporting reporting provided by an organisation regarding its performance outside the scope ofmanufacturing and financial activities (and the management of this performance). Non-financialreportingincludessustainabledevelopmentreports,corporatesocialaccountabilityreports,environmentalreports,charityreports,andothers.
Nuclear fuel amaterialcontainingfissionablenuclides,which,beingplacedinthenuclearreactor,makesitpossibletorunanuclearchainreaction.
Nuclear fuel cycle thesequenceofmanufacturingprocessesforensuringtheoperationofnuclearreactors,rangingfromuraniumproductiontothedisposalofradioactivewaste.
Nuclear plant safety thepropertyofanuclearpowerplanttoensure,withinthespecifiedlimits,theradiologicalsafetyofthepersonnel,thepublic,andtheenvironmentduringnormaloperationandintheeventofanaccident.
Nuclear power abranchofpowerengineeringthatusesatomicenergyforelectricityandheatgeneration.
Nuclear safety ageneral termthatdescribes thepropertiesofanuclear facility tokeep theradiologicalimpactonthepersonnel,thepublic,andtheenvironmentwithinpermissiblelimitsduringnormaloperationandintheeventofanaccident.
Operator anorganisationthatpossessestheregulatorpermittooperateanuclearplantoranothernuclearfacility.
Organisational business model a model including the key business processes and the resources (capitals) employed,throughtheuseofwhichtheorganisationcreatesandmaintainsitsvalueoverthelongterm.
Phase Gate thePhaseGateapproachtocarryingoutinvestmentactivities,aprincipleofplanningandcarryingoutinvestmentactivitiesthatsuggests,whenapplied,thatinvestmentprojectsarebrokendownintophases,ofwhicheachisprecededbyaGateReviewoftheresultsachievedandthefurtherprojectimplementationplansandrisk,andadecisionisthenmadeonthefurtherprojectimplementationphasetobeproceededto.
Power start-up astageinthenuclearplantcommissioningduringwhichthenuclearplantstartstogenerateenergy and the nuclear plant operation is checked at different power-up levels to thatspecifiedforcommercialoperations.
Radiation exposure atotalofindividualexposuredosesreceivedorplannedintheoperationstodecommission,maintain, repair, replace, or dismantle components of a nuclear facility, e.g. of a nuclearplant.
Radiation safety asetofarrangementsseekingtolimittheexposureofpersonnelandthepublictothelowestpossibleradiationdosevaluesinasociallyacceptableway,aswellastoavoidearlyeffectsofexposureandkeepthedelayedradiationeffectswithinthetolerablelimits.
Radioactive release atmosphericemissionofradionuclidesastheresultofnuclearplantoperation.
Radioactive waste nuclearmaterialsandradioactivewastesnotsubjecttofurtheruse.
JSC ATOMENERGOPROM Annual Report 2013- 120 121
Recommendations of the Russian Union of Industrialists and Entrepreneurs (RUIE) for Use in the Practice of Management and Corporate Non-financial Reporting (key performance indicators)
asystemofeconomic,socialandenvironmentalperformanceindicatorsfornon-financialreports, as developed by the RUIE for the purpose of contributing to the introduction ofresponsiblebusinessprinciples.Itisbasedonanumberofunderlyingdocumentsdevelopedby the UN structures (including the UN Global Compact), the Global Reporting Initiative,as well as methodological and procedural recommendations of the Russian Federation’sFederal State Statistics Service and guidance of the RUIE (Social Charter of RussianBusiness, Recommendations on the Preparation of Non-financial Reports “Five StepsTowardstheSocialSustainabilityofCompanies”andothers).
Research reactor anuclearreactordesignedforuseasasubjectofresearchforthepurposeofobtainingdataonreactorphysicsandtechnology,whichisrequiredforthedesignanddevelopmentofareactorofthesametypeorofcomponentsthereof.
Separative work unit (SWU) ameasureoftheeffortsappliedtoseparatethegivenquantityofamaterialofacertainisotopiccompositionintotwofractionswithdifferentisotopiccompositions;itdoesnotdependontheseparationprocessused;akilogramisaseparativeworkunit,andtheenrichmentandenergyconsumptioncostiscalculatedperkilooftheseparativeworkperformed.
Stakeholders physicaland/or legalpersons,aswellasgroupsofpersons,whichhaveaneffecton theorganisation’s activities through their actions and/or are subjected to effects from theorganisation. An organisation may have different stakeholders (public and internationalsupervisingauthorities,shareholders,consumersofgoodsandservices,businesspartners,suppliersandcontractors,civilsocietyorganisations,localcommunities,tradeunions,andothers)withbothmutuallyremoteandconflictinginterests.
Sustainability Reporting Guidelines (Global Reporting Initiative, GRI)
The Sustainability Reporting Guidelines containing the guidelines that define the contentand ensure the quality of reporting information, standard disclosures comprising theperformanceindicatorsoftheorganisation’seconomic,environmentalandsocialimpacts,approaches to the management of said impacts, and other characteristics, as well asrecommendationsonspecifictechnicalaspectsofreporting.
Sustainable development thedevelopment thatcovers thepresent-dayneeds,whilenotendangeringthecapabilityof future generations to cover their own needs. In this connection, the organisation’stransparency and accountability, with respect to its economic, environmental, and socialimpacts,arethefundamentalrequirementsapplicabletoeveryeconomicentity.
Uranium conversion achemicalengineeringprocessoftransforminguranium-containingmaterialsintouraniumhexafluoride.
Uranium hexafluoride achemicalcompoundofuraniumandfluorine(UF6).Thisistheonlyhighlyvolatileuraniumcompound(whenheatedto53°C,uraniumhexafluoridepassesdirectlyfromsolidintogas)andisusedasfeedstockfortheseparationofuranium-238anduranium-235isotopesusingagas-diffusiontechnologyoragas-centrifugetechnology,andfortheproductionofenricheduranium.
Uranium ore enrichment a combination of processes for the primary treatment of uranium-bearing mineral rawmaterialtoseparateuraniumfromothermineralscontainedintheore.Thisdoesnotinvolveanychangesinthecontentofminerals,butratheronlyamechanicalseparationthereofwiththeresultantproductionofanoreconcentrate.
VVER awater-cooledwater-moderatedpowerreactor,inwhichwaterisusedbothasthecoolantandthemoderator.ThemostcommontypeofRussianNPPreactorshastwomodifications:VVER-440andVVER-1000.
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You have read the public annual report of JSC Atomenergoprom, which is intended for a broad range ofstakeholders.Theopinionofthereaders,forwhomthereportwasprepared,isveryimportanttous.WewillbeverygratefulifyoucanmakeacontributiontoimprovethequalityoftheCompany’sreportsinthefuturebyansweringthequestionsbelow.
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Excellent Good Satisfactory Unsatisfactory
Completeness and relevance of information
Excellent Good Satisfactory Unsatisfactory
Structure of the report, ease of reference of the information needed, wording
Excellent Good Satisfactory Unsatisfactory
2.Indicatethereportsection(s)thatyouhavefoundtobesignificantorusefulinthespacebelow:
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3.Whatsubjectsdoyouthinkneedtobecoveredinthenextreport?
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JSC ATOMENERGOPROM Annual Report 2013- 122 123
4.Yourrecommendationsoradditionalcomments:
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5.Indicatewhichstakeholdercategoryyoubelongto:
EmployeeofJSCAtomenergopromorRosatomStateCorporation
Representativeofaclient/consumerofgoodsandservices
EmployeeofanorganisationwithinJSCAtomenergopromorRosatomStateCorporation
Businessrepresentative
Representativeoffederalpowerbodies Representativeofapublicorganisation
Representativeofregionalpowerbodies Representativeofmassmedia
Representativeoflocalself-governmentbodies Representativeofexpertcommunity
Representativeofcontractor/supplierorganisation Other(state)
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Contactdetails
Joint-StockCompanyNuclearPowerGenerationComplex(Atomenergoprom)24BolshayaOrdynkaStr.,Moscow119017,RussiaTel:+7495969-29-39Corporatewebsite:http://www.atomenergoprom.ru/
TreasuryDanilova,IrinaIgorevna,DeputyDirectorTel:+7499949-29-79Kareva,ViktoriyaOlegovna,ChiefSpecialistTel:+7499949-20-77
CommunicationsDepartmentNovikov,SergeyGennadiyevich,DirectorofDepartmentTel:+7499949-44-12Golovachev,SergeySergeyevich,LeaderoftheProject“DevelopmentofthePublicReportingSystemforRosatomStateCorporationanditsOrganisations”Tel:+7499949-22-45
JSC ATOMENERGOPROM Annual Report 2013- 124 125
JSC ATOMENERGOPROM Annual Report 2013- 126 127
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