Jsc Atomenergoprom

Credit rating: BBB-/Stable/A-3

National scale rating: ruAAA/--/--

ATOMIC ENERGY POWER CORPORATION JSC ATOMENERGOPROM

PRESENTATION

www.atomenergoprom.ru 1 Presentation contents

ATOMENERGOPROM in brief Nuclear energy industry development forecast Affiliates of ATOMENERGOPROM

www.atomenergoprom.ru 2 Restructuring of the atomic industry State Atomic Energy Corporation ROSATOM

Atomic Energy Power Corporation

JSC “Atomenergoprom”

Nuclear and Nuclear Nuclear fuel Engineering Machine Power radiation safety, defense complex cycle export Engineering generation decommissioning

Sales of Non - nuclear Nuclear Science Nuclear Navy Technology R&D uranium and development activities services

Goals of the establishment of JSC “Atomenergoprom”: To consolidate the civil part of nuclear industry, to increase its efficiency and to enhance its competitiveness To split commercial and defense sectors of nuclear industry To provide conditions to meet requirements of international integration processes To realize effectively a large-scale program of NPP construction in Russia

www.atomenergoprom.ru 3 General Company Information JSC Atomenergoprom was established in 2007 according to Russian Federation Presidential Decree № 556 dated 27.04.2007. The State Atomic Energy Corporation Rosatom owns 100% shares of JSC Atomenergoprom (Federal law N 317-FL of 01.12.2007) According to Government Decree N 319 “On Measures for Creation of Joint Stock Company “Atomic Energy Power Corporation” dated May 26, 2007 shares of Russian nuclear industry enterprises were contributed into the equity of JSC Atomenergoprom. The staff total is approximately 177,000 employees. JSC Atomenergoprom imbibes a unique experience, which has been accumulated through all sectors of nuclear fuel cycle and NPP construction during last 60 years. In 2008 consolidated proceeds of JSC Atomenergoprom constituted 290 billion RUR. Government Support: the State Nuclear Energy Corporation Rosatom’s activity program for long-term period (2009-2015) envisions financing totaling 2,08 trillion RUR JSC Atomenergoprom is 45% of the world market of uranium enrichment services, 17% of the world nuclear fuel market, the 1st in the world in terms of nuclear power plants construction, the 2nd in the world in terms of uranium reserves and electric power generation at nuclear power plants

www.atomenergoprom.ru 4 Mission

Atomenergoprom‟s mission is to provide safe and effective economic development, life quality growth and preservation of the environment. Atomenergoprom contributes to economic growth, social stability, prosperity and progress, provides protection of environment and rational usage of natural resources. The company aims at being a responsible member of the business community, known and respected all over the world. Core strategic principle – technological leadership in the global nuclear industry. Company’s strategy is to advance to both to unification and technological improvement of product and to diversification of sources of revenue and the geographic expansion.

www.atomenergoprom.ru 5 Responsibility

ATOMENERGORPOM is responsible to: The world community Atomenergoprom produces and supplies products that meet and even exceed the most advanced ecological standards The customers Atomenergoprom delivers its customers high-quality products that are really value for money and supports the products during the whole life cycle The employees The company is focused on creating favorable conditions for professional and personal growth. Atomenergoprom aims at maintaining a reasonable balance of work load and private life The shareholders and investors The company is focused on efficient use of the available resources and seeks to maximize the profit

www.atomenergoprom.ru 6 Board Of Directors Chairman of the Board of Directors: Sergey V. Kirienko – Director General of the State Atomic Energy Corporation Rosatom

Members of the Board :  Evgeniy V. Evstratov - Deputy Director General of the State Atomic Energy Corporation Rosatom

 Tatjana L. Elfimova - Deputy Director General of the State Atomic Energy Corporation Rosatom

 Alexander M. Lokshin - Deputy Director General of the State Atomic Energy Corporation Rosatom

 Vladimir V. Travin - Director of JSC “Atomenergoprom”

www.atomenergoprom.ru 7 Management Board Chairman of the Management Board: Vladimir V. Travin - Director of JSC “Atomenergoprom”

Members of the Management Board:

Kirill B. Komarov - Executive Director of JSC “Atomenergoprom”

 Vladislav I. Korogodin - Deputy Director of JSC “Atomenergoprom”

 Alexander K. Polushkin – Deputy Director of JSC “Atomenergoprom”

 Vladimir V. Sinicin - Deputy Director of JSC “Atomenergoprom”

www.atomenergoprom.ru 8 ATOMENERGOPROM in brief Nuclear energy development forecast Affiliates of ATOMENERGOPROM

www.atomenergoprom.ru 9 World Energy Forecast Till 2030

World Energy Consumption, World Electricity Generation by Fuel, Quadrillion Btu trillion kWh 35,0 700,0 44% growth 77% growth 30,0 650,0 25,0

600,0 20,0 15,0 550,0 10,0 500,0 5,0 450,0 0,0 2006 2010 2015 2020 2025 2030 400,0 2006 2010 2015 2020 2025 2030 Liquids Nuclear Natural Gas Coal Renewables Total Due to limitation of fossil fuel and growth of its negative effect on climate, the problem of world energy demand can be solved by providing the increase of nuclear electricity generation Forecasts of International Agencies : Suggest the sustainable growth of world energy consumption till 2030 Suggest growth of world electricity generation (electricity generation from nuclear power increases by 10% from 2.7 trillion kWh in 2006 to 3.0 trillion kWh in 2015)

Source: Energy Information Administration (USA) 2009

www.atomenergoprom.ru 10 World СО2 Emission Growth

СО2 Emission by Fuel (Gt of CO2) СО2 Emission Growth (Gt of CO2) 50 30 + 55% + 73% 40 - 9 % 20 30

20 10 10

0 0 1973 2006 2006 2030 2030п Oil Gas Coal

** 73% emission growth over 33 years CO2 emission reaches 41 Gt till 2030

* CO2 emission decreases by 3,7 Gt Today NPPs save СО2 emission by 2,5 Gt world wide thanks to putting into operation of new NPPs Russia prevents 210 mln. tonns of СО2 emission annually by using nuclear energy *Source: WNA, IAE Outlook&Key World Energy Statistic 2008 **Source: IEA, World Energy Outlook 2008

www.atomenergoprom.ru 11 The Worldwide Nuclear Installed Capacity Forecast Till 2030

GW 120% installed capacity growth 900 818 800 807

700 Average 597 600 600

500 511

400 371 372 -33% 300 248 200 2008 2009 2010 2020 2030

Reference scenario WNA Lower scenario WNA Upper scenario WNA Low estimate IAEA High estimate IAEA

WNA 2008 reference and upper scenarios are higher than in 2007, reflecting the emergence of India and China as major nuclear nations

Sources: Electricity and Nuclear Power Estimates for the period up to 2030 (IAEA,Edition 2009) The Global nuclear fuel market. Supply and demand 2007-2030 (WNA 2009)

www.atomenergoprom.ru 12 Construction of new NPPs

Projects under construction 2 2 4 Planned projects -

Inputs according to Government order 800)

НВАЭС

Baltic 2 Baltic

(

Baltic 1 Baltic

Beloyarsk Beloyarsk

2 2 2

2 1 2

2 1 1 2

2 1* 2

1 1* 1

2 4 2

2 2 2

–

Kalinin 4 Kalinin

Rostov 4 Rostov

Rostov Rostov

Rostov 3 Rostov

Leningrad

New NPP NPP New

Leningrad Leningrad

Novovoronezh Novovoronezh

2008 2009 2010 2011 2012* 2013 2014 2015 2016 2017 2018 2019 2020 2021

January 19, 2010 - was started the stage of physical startup of power unit No. 2 Rostov NPP

*Decision about new NPPs: Nizhny Novgorod, Central (Kostroma), Kola -2

www.atomenergoprom.ru 13 Geography of Russian NPPs

Active NPPs

NPPs under construction BILIBINO

PATES

KOLA

BALTIC LENINGRAD LENINGRAD -2

KALININ PATES SMOLENSK Viluchinsk

KURSK NOVOVORONEZH -2 BELOYARSK NOVOVORONEZH

BALAKOVO VOLGODONSK

Units statistics 10 NPP 31 units Installed capacity – 23,2 GW

www.atomenergoprom.ru 14 World nuclear power units under construction (2009 )* 9 10 19 3 1 2 Finland 14 9 Russia 10 2 Belene 6 Canada 2 NPP 1 10 4 France Bulgaria 1 Slovakia 6 2 1 1 2 Iran 1 USA S. Korea 2 Japan Pakistan China Bucher NPP India Тaiwan

Kudankulam - nuclear units under NPP construction 4 - nuclear units planned Brazil

AREVA 1 1 AECL Argentina NPCIL KHNP JSC “Atomenergoprom” : Today there are about 60 nuclear power CNNC 9 in Russia, 5 abroad units under construction, 14 of them CGNPC ATOMENERGOPROMАТОМЭНЕРГОПРОМ are being constructed with participation of Atomenergoprom. 0 2 4 6 8 10 12 14 Nuclear units under construction simultaneously *Sources: IAEA, WNA «Plans for New Reactors Worldwide» (September 2009)

www.atomenergoprom.ru 15 Active Units Worldwide

Toshiba/Westinghouse 120 AREVA 95 ATOMENERGOPROMАтомэнергопром 68 rd GE-Hitachi 63 3 worldwide by AECL 30 quantity MHI 19 NPCIL 15 DOOSAN 11

0 40 80 120 units

Toshiba/Westinghouse 110 AREVA 100 GE-Hitachi 55 th worldwide by ATOMENERGOPROMАтомэнергопром 48 4 installed capacity AECL 19 MHI 15 DOOSAN 10 GW 0 20 40 60 80 100 120 Source: IAEA, Atomenergoprom

www.atomenergoprom.ru 16 ATOMENERGOPROM in brief Nuclear energy development forecast Affiliates of ATOMENERGOPROM

www.atomenergoprom.ru 17 Main Enterprises

JSC “ATOMENERGOPROM”

MINING GENERATION JSC “Atomredmetzoloto” JSC “ROSENERGOATOM CONCERN” JSC “PIMCU”, JSC “Khiagda”, СJSC “Dalur”, JV “Zarechnoye”, JV “Akbastau”, JV with Cameco MACHINEBUILDING JSC “Atomenergomash”, JV “Alstom CONVERSION, ENRICHMENT AND EXPORT Atomenergomash”, JSC “ZiO - Podolsk”, OF URANIUM PRODUCTS & SERVICES JSC “CDBMB” JSC “TENEX”, JSC “United Company Enrichment ENGINEERING Sublimation Complex”: JSC “AECC”, JSC “SCC”, JSC“UECC”, JSC “PO ECP” JSC “Atomenergoproekt”, FABRICATION JSC “SPAEP”, JSC “NIAEP”, JSC “Design-bureau Hydropress”, JSC “OKBM”, JSC “NIKIET”, JSC “TVEL”, JSC “MSZ”, JSC “NCCP”, JSC “Atomtechenergo”, JSC “Leading institute JSC “ChMP”, JSC “CMP” “VNIPIET”, JSC “GSPI”, JSC “VNIIAM”

TECHNOLOGY R&D PROCUREMENT OF EQUIPMENT FOR NPPs JSC “Engineering Centre “Russian Gas Centrifuge”, JSC “NPK Khimprominginiring” Integrated Procurement Department (branch)

RESEARCH AND DEVELOPMENT JSC “VNIINM”, JSC “NIIAR”, JSC “IRM”, JSC “SNIIP”, JSC “Research-and-production association “CNIITMASH”, JSC “ARRICT”

www.atomenergoprom.ru 18 Technology Chain

Fuel fabrication

Uranium mining Research and development

Conversion and NPP enrichment construction

Manufacturing of Machine gas centrifuge engineering

Spent nuclear fuel Generation management

www.atomenergoprom.ru 19 Global Presence of JSC “Atomenergoprom”

Finland, Sweden, the Netherlands, Belgium, Germany, France, Spain, Russia USA Great Britain, Switzerland, Kazakhstan Canada Czech Republic, Hungary, Slovakia, Lithuania, Ukraine Mexico Bulgaria, Slovenia Armenia

Japan China South Korea Vietnam India Mongolia Iran Jordan Bangladesh

Brazil South Africa Namibia about 40 countries Libya Morocco Algeria Egypt

www.atomenergoprom.ru 20 Uranium mining

ATOMENERGOPROM Uranium Mining Forecast, „000 t 10 9,2

Atomredmetzoloto (ARMZ) 8

6 4,7 PIMCU Dalur Khiagda 4

UDK Olovskaya Elkonskiy 2 Gornoye MCU Mining 0 JVs in JV in Namibia Perspective 2009 2010 2011 2012 2013 2014 2015 Kazakhstan: projects: Source: ARMZ, 2009 JV in Armenia Mongolia, Zarechnoye, Ukraine, World reserves of uranium among largest Akbastau stake in African countries Uranium One Inc. companies, % Foreign assets of ARMZ 12% ARMZ Main Business Activities: Supply the increased demand for natural uranium in Russian nuclear industry and building a global player of uranium market by: development of production on operating and new enterprises; development and diversification of uranium raw material base of company; establishment of JVs on the territory of the CIS and abroad; 88% Others establishment of new mining companies on reserve mines (Jakutia, Transbaikalia). Source: ARMZ, 2009

www.atomenergoprom.ru 21 Enrichment / Conversion

ATOMENERGOPROM SWU World Market*

Enrichment / Conversion Division 5% others Atomenergoprom 45% 11% Usec Export and trading Conversion & enrichment United Company TENEX Enrichment sublimation complex 19% Areva Gaseous centrifuges UEIP AECC Engineering center 20% Urenco “Russian Gaseous SCC ECP Centrifuge” * Taking into account Russian market

Source:TENEX, 2009 Main Business Activities : Secured supply of enriched uranium and enrichment / conversion services to domestic NPPs and export supply to NPP operators Development of enrichment technologies

www.atomenergoprom.ru 22 Fuel Fabrication

ATOMENERGOPROM Nuclear Fuel World Market (Fuel Assembly)

17% TVEL ОАОTVEL «ТВЭЛ»

Novosibirsk Mashinostroitelny Chepetsky Chemical Zavod (Electrostal) Mechanical Plant Concentrates Plant Chemical and Metallurgical TVEL representative office: Plant Slovakia, Ukraine Others 83%

Main Business Activities Source: TVEL data, 2009 Increased Domestic and Export Fuel TVEL-labeled fuel keeps running Market Demands Secured Supply Nuclear Fuel Development and 76 commercial reactors – 15 countries Optimization; Fuel assembly “TVS-Kvadrat” project 30 research reactors – 17 countries development ; Participation in MOX project development; In cooperation with AREVA NP supplies fuel for PWR/BWR (7 reactors in 2009) Participation in ITER project development ; Expanding international cooperation Continuation of Czech fuel supply projects (in 2010)

www.atomenergoprom.ru 23 Nuclear Electric Generation

ATOMENERGOPROM Installed Capacity TOP-5 Operators, GW

EDF 63 ROSENERGOATOMОАО «ТВЭЛ»CONCERN Rosenergoatom ЭНЕРГОАТОМConcern 23,2 Balakovo NPP Beloyarsk NPP EXELON Number 2 (4хVVER 1000) (1хLWGR-600) KHNP worldwide 4000 MW 600 MW 63 TEPCO Bilibino NPP Volgodonsk NPP (4хLWGR-6 12)48MW (1хVVER 1000) 1000 MW 0 22 44 66 Kalinin NPP Kola NPP Source: IAEA (NPP World Wide Report 2008), Rosnergoatom Concern (4хVVER 440) (3хVVER 1000) Reactor Number TOP-5 Operators 3000 MW 1760 MW

Kursk NPP Leningrad NPP EDF 59 (4хRBMK 1000) (4хRBMK 1000) Rosenergoatom ЭНЕРГОАТОМ 4000 MW 4000 MW Concern 31 Novovoronezh NPP KHNP Smolensk NPP (2хVVER Number 2 (3хRBMK 1000) EXELON 31 417, 1хVVER 1000) worldwide 3000 MW 58 1834 MW TEPCO

Total: 10 NPPs, 31 reactors with 0 10 20 30 40 50 60

23242 MW capacity installed Source: IAEA (NPP World Wide Report 2008), Rosenergoatom Concern

www.atomenergoprom.ru 24 Position of Rosenergoatom Concern among Russian generation companies

ТОР-5 Installed capacity, GW

RusHydro 25,4 Rosenergoatom Energoatom 23,2 Concern 23,2 Irkutskenergo 2-d place in 63 Mosenergo installed capacity OGK-1

0 5 10 15 20 25 30

ТОР-5 Generation of electricity, bln. kWh

Rosenergoatom 162,3* EnergoatomConcern RusHydro 80,3* Mosenergo 1-st place in 31 82,3 generation 58 Irkutskenergo of electricity OGK-1

0 50 100 150 200

*Data Concern Rosenergoatom, RusHydro (2009)

www.atomenergoprom.ru 25 Nuclear Machinebuilding Industry

JSC “ATOMENERGOPROM”

GROUP ATOMENERGOMASH more than 30 enterprises

CONSTRUCTION AND MAIN AND AUXILIARY POWER EQUIPMENT INSTALLATION ACTIVITIES

ARMATURE/PUMPS TRANSPORT TECHNOLOGIC TURBINE EQUIPMENT SevKavEnergoMontazh, Arako (Czech ENGINEERING Alstom-Atomenergomash Atomenergomontazh, Republic), Intelenergomash, CDBMB Ganz Energetika (Hungary) Kaluga Turbine Plant TrestSpetsAtomEnergoMontazh, TverAtomEnergoMontazh, PIPE LINES AIR HANDLING EQUIPMENT STEAM GENERATORS, Construction and installation company Stalenergoproekt, Venta BOILER EQUIPMENT, «South», E-4 Centrenergomontazh, Atomtruboprovodmontazh Mospromtechmontazh EQUIPMENT FOR GAS AND MEASUREMENT AND CONTROL OIL STORAGE NON-TYPICAL EQUIPMENT EQUIPMENT ORGANIZATION OF COMPLETE ZIO Podolsk, ZIOMAR SverdNIIKHimmash, Krasnaya SNIIP, NIITFA, IFTP, NII Zvezda, OKTBIS, Experimental plant of Kontrolpribor, Molniya, Signal DELIVERIES TANK EQUIPMENT Refractory Metals and Hard Alloys, Perlovsky Power Equipment ELECTRICAL EQUIPMENT AEM - technologies Energomashcomplex (EMCO) Plant Progress plant Key activities: securing order processing for NPP equipment in the volume necessary to execute current and future plans of NPP construction in Russia and abroad; increasing of scope and business profitability, diversification of activities in neighbouring sectors, development of cooperation with world leaders of energy machine building industry and increasing services portfolio; realizing programs of R&D, introduction of advanced and effective construction and production processes.

www.atomenergoprom.ru 26 Research and development

Enterprises of JSC “Atomenergoprom” realize a great sector of scientific research and design and survey works in different fields, which provide development and support current technological platform and also provide building of new technological platform and realizing innovative projects.

Short- and mid-term priorities: Creation of VVER -1000 Type design as multidimensional information model (6D), complying with the modern requirements VVER-technology for : optimization - safety, - life-cycle management at all stages, - economic characteristics at construction and exploitation stages.

Power technologies of new producing platform, including new Nuclear fuel cycle generation fast-reactor technologies, fuel provision and spent closing nuclear fuel handling technologies as the part of closed-loop nuclear fuel cycle .

Developments, products and services by directions: Innovative - superconductor industry, projects - plain water, - industrial diagnostics, realization - nuclear medicine. The possibility of project realization in the sphere of nanotechnologies is being studied.

www.atomenergoprom.ru 27 Future Business Development Activities

TVS-Kvadrat – realization of this project will allow to strengthen market positions by entry to the market of fuel for reactors of western design

Fast Neutron Reactor – construction of an advanced power generation plant with increased level of economic performance and ecological safety (transition to closed fuel cycle on the basis of MOX-fuel)

Floating NPP (PATES) – construction and operation of floating NPPs as energy sources for remote and isolated regions of Russia and others world regions. PATES can be used for desalination of water

NPP – 2006 – increase competitiveness due to improvement of technical and economic characteristics providing guaranteed safety