Highlights 2018 : Transformation Reloading Table of Contents
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ROSATOM STATE CORPORATION ENGINEERING DIVISION Highlights 2018 : Transformation Reloading Table of Contents CEO Statement 2 Company’s Background 4 Our Markets 6 International Footprint 8 Milestones 12 Key Performance Results 18 Corporate Governance 20 Science and Innovations 22 Innovative Design Technology: Virtual NPP 26 Sustainable Development 28 Environmental Safety Management 29 Procurement Activity 32 HR Policy 36 ROSATOM STATE CORPORATION CEO STATEMENT ENGINEERING DIVISION CEO Statement Dear colleagues and partners, The year 2018 was a major landmark The engineering business is considered The concept of the Division’s in two areas — implementation by Rosatom State Corporation’s management sustainable development is generated of the projects in the current product portfolio to be the key priority. That is why in 2018 according to the UN Sustainable and transformation aimed at enhancing the management especially focused on Development Goals until 2030 and the efficiency of business operations. enhancement of the internal processes efficiency respective international standards. in order to ensure that the deadlines and In the reporting year, the Division The construction of Akkuyu the costs criteria are met during implementation pursued a consistent policy of social of all projects in the project portfolio. The main responsibility through high standards NPP Unit 1 (Turkey) principles of the transformation are reducing in the area of environmental protection, and Rooppur NPP Unit 2 the number of the Engineering Division’s occupational health and safety (Bangladesh) reached management levels, enhancing the project which is essential for the company’s managers’ functions and responsibilities, sustainable development. the stage of first concrete” optimizing the performance of the design unit. Successful implementation As of December 2018, the Division’s product As to other aspects of its activities, of the projects in the project portfolio portfolio included 31 NPP units. The reporting the Engineering Division is engaged in continuous offers a challenge for both our year witnessed the commissioning of Tianwan process of digitalization, in particular, the use organization and the whole industry. NPP Units 3&4 in the People’s Republic of of the digital model during NPP design I am confident that this challenge will China. Against the background of our growing and construction, which is a prerequisite be met owing to the comprehensive efficient cooperation with the Chinese partners, for ensuring quality and standardization support rendered by Rosatom State General Contract for construction of Tianwan of designs. As part of the digitalization process, Corporation and the Division employees’ NPP Units 7&8 came into effect and Frame the Division operates according to Rosatom State professional competence, dedication Contract for construction of Xudapu NPP Corporation’s digital strategy adopted in 2018. and commitment to results. Units 3&4 was signed. As to the projects implemented within the Russian Federation, the major milestones of the Engineering Division’s operation were commissioning of Rostov NPP Unit 4, power startup of Leningrad NPP-2 Unit 1 — a power plant of generation III+, the first concrete pouring in the foundation slab of the reactor building of Kursk NPP-2 Unit 1 that is the first NPP in Russia, the construction of which applies VVER-TOI — the state-of-the-art national design. In 2018, the Engineering Division’s income reached the point of 202 billion rubles which makes a 15.2% increase compared to 2017. Alexander Lokshin The growth of this value is mostly accounted for by implementation of such projects as President of JSC ASE EC, Rooppur NPP in Bangladesh, Kudankulam NPP First Deputy Director General in India, Belarus NPP. One fifth of Rosatom State Corporation’s total revenue was provided for Operations Management by the Engineering Division. of Rosatom State Corporation 2 3 ROSATOM STATE CORPORATION COMPANY’S BACKGROUND ENGINEERING DIVISION Rosatom State Corporation Engineering Division operates using half-century experience of the nuclear industry Company’s in Russia and state-of-the-art technologies” Rosatom State Corporation Background Engineering Division JSC ASE EC — managing company 1 (Nizhny Novgorod) Vision Mission JSC ASE We seek to build a competitive We manage construction (Nizhny Novgorod) business that is successful of complex engineering facilities 2 in implementation of construction based on the vast experience projects and complex in implementing nuclear projects. engineering facilities construction We create shareholder value JSC “Atomenergoproekt” management projects and aims and ensure implementation (Moscow) to maximize the shareholder of their objectives on the Russian 3 value of the Engineering Division. and global markets. JSC ATOMPROEKT 4 (St. Petersburg) Safety Responsibility for the result Efficiency The Division’s One team values Respect One step ahead 4 5 ROSATOM STATE CORPORATION COMPANY’S BACKGROUND ENGINEERING DIVISION Our Markets Our Markets Design of high-power NPPs Construction of high-power NPPs with Pressurized Multi-D-based digital technologies Water Reactors on the terms of EPC, EPC(M) for management of complex engineering facilities VVER-1000 VVER-1200 VVER-TOI Safety generation III Safety generation III+ Safety generation III+ Production type: full-scale 1,000 MW 1,200 MW 1,255 MW Electric power Electric power Electric power 3,000 MW 3,212 MW 3,300 MW Thermal capacity Thermal capacity Thermal capacity Kudankulam NPP (India) Novovoronezh NPP-2 (Russia) Kursk NPP-2 Leningrad NPP-2 (Russia) Rooppur NPP (Bangladesh) Tianwan NPP (China) Xudapu NPP (China) Akkuyu NPP (Turkey) El-Dabaa NPP (Egypt) Hanhikivi-1 NPP (Finland) Paks II NPP (Hungary) Belarus NPP (Belarus) 6 7 ROSATOM STATE CORPORATION INTERNATIONAL FOOTPRINT ENGINEERING DIVISION International Bangladesh Footprint Belarus Bulgaria Hungary Germany Egypt Core projects (NPP design and construction) India China Branch offices Russia Slovakia Turkey Representative offices Ukraine Finland Subsidiaries 8 9 ROSATOM STATE CORPORATION INTERNATIONAL FOOTPRINT ENGINEERING DIVISION The European Utility Organization has recognized the advanced Russian VVER-TOI NPP design as meeting the European Utility Requirements” 30% 80% OF THE GLOBAL NPP OF THE ENGINEERING CONSTRUCTION MARKET DIVISION’S REVENUE IS PROVIDED BY FOREIGN PROJECTS JSC ASE EC and JSC ASE are the first nuclear companies that have been granted a certificate to prove that their information security management systems comply with ISO/IEC 27001:2013 international standard requirements. The scope of certifications covers the information security management system when organizing electronic workflow of design documentation with foreign partners” 10 11 ROSATOM STATE CORPORATION MILESTONES ENGINEERING DIVISION Milestones LENINGRAD NPP-2 KURSK NPP-2 (Russia) (Russia) 09.03.2018 28.04.2018 Power start-up Start of the foundation slab of Power Unit 1. concreting in the reactor building at Power Unit 1. 15.04.2019 Concreting of the foundation plate of the innovation Unit 2 VVER TOI reactor building has started at the Kursk NPP-2 construction site. JANUARY MARCH APRIL SEPTEMBER APRIL MAY JULY 2018 2018 2019 2019 ROSTOV NPP NOVOVORONEZH (Russia) NPP-2 (Russia) 19.01.2018 01.05.2019 Power start-up of Power Unit 4. The power start-up of Novovoronezh NPP-2 Power Unit has taken place. 28.09.2018 The innovation Gen III+ Power Unit with VVER-1200 reactor Commissioning was synchronized with the grid of Power Unit 4. and achieved the 240 MW level. 31.07.2019 Novovoronezh NPP-2 Power Unit 2 has achieved the 100% power level. 12 13 ROSATOM STATE CORPORATION MILESTONES ENGINEERING DIVISION AKKUYU NPP (Turkey) PAKS II NPP (Hungary) 30.03.2018 20.06.2019 Start of the foundation slab The first civil and erection works concreting in the reactor building started at Paks II NPP. at Power Unit 1. MARCH OCTOBER NOVEMBER FEBRUARY APRIL JUNE 2018 2018 2019 2019 EL-DABAA NPP (Egypt) BELARUS NPP (Belarus) 28.10.2018 26.10.2018 Preparation of the documents Safety systems flushing on the open reactor for obtaining of the license for construction completed at Power Unit 1. of Power Units 1&2. 18.11.2018 Start of assembly works at the reactor at Power Unit 1. Core barrel installed in the reactor pressure vessel. HANHIKIVI-1 NPP (Finland) 19.02.2019 Power supply for auxiliary loads under 09.11.2018 the design layout at Power Unit 1. Highly detailed 3D-model of the NPP was developed. 05.04.2019 The specialists started to implement the Power Unit 1 commissioning programme. 14 15 ROSATOM STATE CORPORATION MILESTONES ENGINEERING DIVISION KUDANKULAM NPP ROOPPUR NPP (India) (Bangladesh) 07.08.2019 08.07.2018 The supplies of the main equipment Start of the foundation slab for Power Unit 3 reactor plant have concreting for the reactor been completed. building at Power Unit 2. 06.08.2019 The works for Power Unit 2 turbine hall foundation plate concreting have been completed at the Rooppur NPP site. FEBRUARY JULY AUGUST DECEMBER MARCH JUNE AUGUST 2018 2018 2019 2019 TIANWAN NPP (China) XUDAPU NPP (China) 15.02.2018 07.03.2019 Putting into commercial operation Signing of Technical Design Contract of Power Unit 3. for Power Units 3&4. 25.08.2018 05.06.2019 Physical start-up of Power Unit 4. Signing of the General Contract for construction of Xudapu Power Units 3&4 of the Russian design with VVER-1200 reactors. 22.12.2018 Putting Power Unit 4 into commercial operation. 07.03.2019 Signing of General Contract for construction of Tianwan NPP Power Units 7&8. 16 17 ROSATOM STATE CORPORATION KEY PERFORMANCE RESULTS ENGINEERING DIVISION Key Performance Results Revenue, bln RUR EBITDA, bln RUR CAPEX, bln RUR Labor Productivity (in terms of proper revenue), mln RUR/pers. 201.9 200 175.2 2018 16.8 152.9 7.7 150 2017 13.9 8 2018 3.85 100 2016 32.4 6 2017 3.73 4 2.7 2016 3.3 2016 2017 2018 1.5 2 The losses incurred over Belene NPP Project were reimbursed upon the Final Award by the Arbitration Court in 2016.