SAFE ENERGY SOURCE
INNOVATIVE TECHNOLOGIES
ANNUAL SUSTAINABLE ENERGY SUPPLY REPORT 2017 FOR ALL CONTENTS
Business Geography 2 2.5 Contribution to Russian Digital Economy. APPENDICES 208 Appendix 10. Information Technology 102 Auditor’s Report Certifying Annual Appendix 1. Accounting Statements 258 Key Performance Indicators in 2015-2017 International Sci-Tech Cooperation 4 2.6 108 About Annual Report.Material Aspects 210 2.7 International Business and New Products 112 Appendix 11. Key Events of 2017 8 Appendix 2. Report on Rosenergoatom’s Compliance with Corporate Corporate and Contact Details 214 Governance Code Recommended by the Bank of Russia 261 03. Sustainability Management 121 Address by Board of Directors Chairman Financial Stability 13 3.1 123 Appendix 3. Appendix 12. 3.2 Investment Program 130 GRI, RSPP Content Index 215 Operating NPP Power Units 270 Address by CEO 14 3.3 Environmental Impact 132 Appendix 4. Appendix 13. 3.4 Radiation Effect Table on Consideration of Suggestions Installed Capacity and Power Output of Nuclear Overview on Personnel and Population 140 01. 17 by Stakeholders 231 Power Plants of Rosenergoatom in 2015-2017 1.1 General Information 20 3.5 HR Policy 147 by Russian UES 271 1.2 Mission, Vision and Values 23 3.6 Labor Protection 157 Appendix 5. System of Public Reporting Indicators Appendix 14. 1.3 Value Creation 24 3.7 Social Policy. at Rosenergoatom 237 Main Personnel Characteristics 272 1.4 Strategic Goals and Objectives 29 Developing Areas of Presence. Charity 161 1.5 Risk Management 34 Appendix 6. Appendix 15. 1.6 Sustainable Development Goals 38 04. Operating Efficiency 169 Public Assurance Statement 242 Glossary 274 4.1 Corporate Governance 171 Appendix 7. Appendix 16. Technological Leadership and Innovations Economic Security 02. 43 4.2 188 Non-Financial Audit Report 245 Abbreviations 277 2.1 Situation in Power Sector 45 4.3 Internal Control and Auditing 190 2.2 Generating Capacities. 4.4 Property Management 194 Appendix 8. Appendix 17. Report of Internal ControlDepartment Rosenergoatom Historical Background 278 Developing Generating Potential 52 4.5 Purchase Management 195 of Rosenergoatom 248 Ensuring Safety of Russian NPPs Quality Assurance 2.3 84 4.6 197 Appendix 18. 2.4 Innovations. Sci-Tech Policy. Knowledge 4.7 Interaction with Stakeholders 201 Appendix 9. Feedback Form 279 Management System 90 4.8 Public Reporting System 206 Accounting (Financial) Statements 249 48Business Geography osenergoa o on ern Annual esu s report o 2017 49Rosenergoatom osenergoa o on ern esu s2 o — 3
102-4 102-6 BUSINESS GEOGRAPHY
1 27.9 GW — FLOATING NUCLEAR POWER PLANT RUSSIA’S NUMBER ONE ins a e apa i y o s BILIBINO NPP po er pro u er G KOLA NPP BALTIC NPP 2 LENINGRAD NPP B THE WORLD’S NUMBER TWO po er pro u er an ins a e apa i y o ner
KALININ NPP SMOLENSK NPP ROSENERGOATOM, JOINT-STOCK COMPANY B is a largest power generating NOVOVORONEZH NPP company in Russia and the country’s only operator of Russian KURSK NPP nuclear power plants. B 202.87 ROSTOV NPP BALAKOVO NPP BELOYARSK NPP BLN KWH — po er genera ion in B B B B
10 REGIONS o opera ing
POWER UNITS PERCENT SHARE IN THE RUSSIAN FEDERATION ENERGY BALANCE
18.9%
35 6 2 2 3 PERCENT CAPACITY FACTOR n opera ion un er ons ru ion hysi a s ar up e o is un er an oa ing in sioning shu o n 83.3% Key Performance Indicators in 2015-2017 Annual report 2017 Rosenergoatom 4 — 5
102-7 KEY PERFORMANCE INDICATORS IN 2015-2017 202.87 360,386 BLN KWH — MLN RUBLES — po er generat on n 2017 re enue n 2017
A A A R 10 R R A A R 100 mln ru les
actual 2017 83.29 2017 793,123
plan 2017 82.1 2016 793,123
2016 83.1 2015 671,517 2015 85.95
R RA ln R R 10 ln Ru les
195.2 196.4 199.841 202.87 263,757 282,036 360,386 2015 2016 plan 2017 actual 2017 2015 2016 2017
1 e A alan e target po er generat on as spe e as t e planne n ator Key Performance Indicators in 2015-2017 Annual report 2017 Rosenergoatom 6 — 7
A RA A R A AR AR A R A R A A A A A R 1 R R R 18,169 21,986 32,847 2017 33,8861 2017 115,097.02 2017 46.7 2017 505 2015 2016 2017 35,248 117,767.9 37.0 505.5 2016 35,394 2016 128,975.1 2016 41.0 2016 498 e eral u get u gets o t e Russ an e erat on o al u gets ersonal n ome ta onst tuent ent t es 2015 37,179 2015 121,932.6 2015 51.3 2015 565 2017 14,878 2017 13,387 2017 63 2017 4,519 2016 8,203 2016 9,264 2016 56 2016 4,463 2015 6,504 2015 7,125 2015 139 2015 4,401
n a t on trans erre n a or o Atomenergoprom a respons le part pant n t e onsol ate group o ta pa ers a tual A R R A A R R R A A R A R A R R R A R R R plan R R A A A R A R R R 2017 10.64 2017 1,741,657 2017 45,981 2017 1,509,615 2017 15,401 2017 9,375 2017 152,730 2016 7.97 2016 1,614,094 2016 10,605 2016 1,389,225 2016 1,033 2016 6,891 2016 105,583 2015 7.09 2015 1,470,670 2015 13,922 2015 1,298,091 2015 5,215 2015 6,237 2015 103,616
1 n ormat on a out t e reasons or a e rease n t e ea ount ma e oun n e t on R ol 1 Amount o ta es pa m nus ta re un s rom u gets 2 ul lment o Rosenergoatom n estment program or 2017 as re ers to n estment n e u t s relate to ers on o t e n estment resour e t at as earl er planne or n estment n e u t repa ment o t e pr n pal amount o t e loan or opt m at on o e penses or repa ment o nterest on loans Key Events of 2017 Annual report 2017 Rosenergoatom 8 — 9
102-10 KEY EVENTS OF 2017
th 25 The Rostov NPP hosted a Rosenergoatom celebrated its large-scale emergency drill th 1. 25 anniversary complex involving observers from six countries, the NPP The Balakovo NPP obtained Rosenergoatom Competence emergency response team the license from Rostekhnad- The 1st loop of the Academi- Novovoronezh NPP-2 power unit Center for APCS Cybersecurity at (NPP ERT), Russian Emercom, zor for the power unit No.2 cian Lomonosov floating pow- No.1 with VVER-1200 reactor was Nuclear Power Plants was estab- Defense Ministry and National operation during an additional er unit reactors was washed put into commercial operation. lished on the basis of VNIIAES. Guard. 26-year period. out.
FEBRUARY 27 APRIL SEPTEMBER 7 SEPTEMBER 20-22 OCTOBER OCTOBER 01.01.2017 01.10.2017
MARCH 28-31 JUNE AUGUST AUGUST 10 – SEPTEMBER 10 SEPTEMBER 30 OCTOBER
Ekaterinburg hosted the first The Best Russian NPP corporate In support of the international The Multimedia Art Museum (Mos- The Smolensk NPP started The Beloyarsk NPP employees championship of vocational contest results were summa- contracts implemented by cow) held a photo exhibition of the producing cobalt isotope as part of the author team re- skills among the employees of rized. Year 2016 title was won Rosatom State Corporation, world’s two leading nuclear power Co-60 (the first extra cobalt ceived the Russian Federation Rosatom’s power engineering by the Balakovo NPP. Among top a decision was made to create producers – Rosenergoatom and absorber was loaded into the Government Sci-Tech Award division – REASkills 2017. three were the Kursk (number a single educational center – Electricite de France (France). The reactor of the power for improving the efficiency Competitions were also held two) and Beloyarsk (number Rosatom Technical Academy exhibition was devoted to the 25th unit No.1). of the fast neutron reactor in Sosnovy Bor and Novovor- three) NPPs. within the power engineering anniversary of Rosenergoatom. operation, development and onezh. division structure. life extension.
1. Further details of Rosenergoatom history may be found on the official website http://www.rosenergoatom.ru/en/about-us/history/, and in the 2016 Annual Report – 25 Years of Safe Operation (http://report2016.rosenergoatom.ru/#/en/) Key Events of 2017 Annual report 2017 Rosenergoatom 10 — 11
102-10 KEY EVENTS OF 2017
1 2 2 Vladimir Putin, President of the The Smolensk NPP started First criticality (nuclear fuel Russian Federation, gave start Employees of the Rostov transferring spent nuclear fuel loading into the reactor) at the 200 to the program of bringing the and Kola NPPs became gold to dry storage – the first spent Rostov NPP power unit No.4 Russian nuclear plants Rostov NPP power unit No.4 and silver prize winners at fuel assembly was disman- started at 7:53 PM (Moscow surpassed the power output to design capacity (power WorldSkills Hi-Tech 2017. tled. time). level of 200 bln kWh. start-up).
NOVEMBER DECEMBER DECEMBER 6 DECEMBER 27 FEBRUARY 1 09.03.2018 01.11.2017 01.01.2018
NOVEMBER NOVEMBER 30 DECEMBER 6 DECEMBER 8 JANUARY 20 MARCH 9
The POWER Magazine named The IAEA Operational Safety The Rostov NPP became the First criticality at the Lenin- The Leningrad NPP demon- The innovative power unit the innovative power unit No.1 Review Team (OSART) praised winner of the corporate safety grad NPP-2 power unit No.1 strated a record high power No.1 pertaining to Genera- of the Novovoronezh NPP-2 the Leningrad NPP efforts culture contest in 2017. started at 10:33 AM (Moscow output of 1 trillion kWh among tion III+ with the VVER-1200 among the world’s best three aimed at observing the safety time). domestic nuclear plants. reactor at the Leningrad NPP-2 power units. principles and streamlining was connected to the Unified these activities. Energy System of Russia. Address by Board of Directors Chairman Annual report 2017 Rosenergoatom 12 — 13
102-14 ADDRESS BY BOARD OF DIRECTORS CHAIRMAN
DEAR READERS, In 2017, another all-time record was set on the power output of nuclear power plants in the Year 2017 ended up with good results for contemporary history of the Russian nuclear Rosenergoatom as a power engineering divi- power industry. Rosatom State Corporation sion of Rosatom State Corporation and for the continues implementation of foreign projects Russian nuclear industry in general. We are providing the nuclear industry enterprises with working on a scheduled basis to commission orders for years ahead. new power units at nuclear plants, increase power output in accordance with the national Among the key stratic objectives of the whole energy needs, rapidly develop new business industry and Rosenergoatom as the ordering lines, and diversify the activities. customer of new nuclear capacities are im- proving the operational efficiency, reducing the One of the most important results of 2017 power units construction time and cost. The was the first criticality at two new power processes of digitalization, implementation of units of the Rostov and Leningrad NPP-2 innovative projects, and compliance with global ALEXANDER connected to the grid in early 2018. In the re- sustainability standards play an important role LOKSHIN, Chairman of the porting year, the Novovoronezh NPP-2 power in taking leadership today. Board unit No.1 was put into commercial operation. of Directors, This is the first of a series of power units In the long run, and in line with the strategic Rosenergoatom with VVER-1200 reactors. The NPP-2006 priorities of Rosatom State Corporation, Rosen- Joint-Stock Company; project implemented at first power units of ergoatom faces the challenges of retaining First Deputy CEO for Operations the Novovoronezh NPP-2 and Leningrad NPP- achieved performance, increasing the share of Management, 2 pertains to the most advanced generation nuclear power generation in Russia, upgrading Rosatom State “three plus”. This generation of reactors lays the power units, constructing and commission- Corporation the basis for the commercial proposal of ing new capacities, and decommissioning of Rosatom State Corporation in international the shutdown power units, as well as personnel markets, which is highly appreciated by our training for Russian and foreign NPPs con- foreign colleagues. structed in accordance with Russian designs.
At present, seven1 new NPP power units are un- I am sure Rosenergoatom will successfully der construction in Russia, including a floating meet new challenges as we have everything power unit. These will ensure national energy needed: government support, technological security in the long term. potential and highly professional employees.
1. Including: Novovoronezh NPP-2 power unit No. 2, Leningrad NPP-2 power unit No. 2, two power units of the Kursk NPP-2, two power units of the Baltic NPP, and a floating power unit. Address by CEO Annual report 2017 Rosenergoatom 14 — 15
102-14 ADDRESS BY CEO
DEAR COLLEAGUES AND PARTNERS, Year 2017 was significant for us due to imple- ject to first criticality, and the power unit will be non-nuclear ones. One of the most important mentation of the major innovative projects in commissioned a year after at the base site in events of 2017 for Rosenergoatom in this area You are holding in your hands the tenth inte- the nuclear power industry, which underpin the Pevek, Chukotka Autonomous Okrug. was the start of cobalt isotope production at grated Rosenergoatom, Joint-Stock Company leading positions of Rosatom State Corpora- the Smolensk NPP. Another step was made annual report summarizing the results of our tion in the domestic and global markets. Key In 2017, the year of Rosenergoatom anni- on the way to large-scale growth of modern work in 2017 and accessing the prospects for events in the reporting year are connected with versary, all key performance indicators were Russian radiation technologies. Isotopes have the Company’s activities in the short, medium the start-up of new power units. The Novovor- achieved, and another all-time record was set successfully been produced by the Leningrad and long term. onezh NPP-2 power unit No.1, a pilot unit with on the power output of nuclear power plants, NPP for many years now. We are planning to the new post-Fukushima Generation III+ nucle- which became one of the main achievements develop this area of activity in future at the Today, the global community is focused on ar reactor VVER-1200. First criticality (nuclear of the year. While prioritizing safe operation, Kursk and Beloyarsk power plants. shaping a new economy based on equal op- fuel loading into the reactor) was started by Russian nuclear plants surpassed the perfor- portunities for all people without any excep- experts in December 2017 at the second unit mance of 2016 in terms of power generation The results of 2017 lay the basis for further tion and environmental protection principles of this series, the Leningrad NPP-2 power unit and increased the total output by more than 6.5 development of the power engineering busi- relating to the global climate change risk. The No.1. Moreover, first criticality was started in bln kWh – to 202.9 bln kWh (versus 196.4 bln ness and new business lines of Rosenergoa- Russian nuclear power industry in general and December 2017 at the Rostov NPP power unit kWh in 2016). The annual target of the Federal tom, including the non-nuclear sector. Safe particularly Rosenergoatom make a considera- No.4, the last unit of the VVER-1000 (V-320) Antimonopoly Service was exceeded by 3 bln operation of nuclear power plants along with ANDREY PETROV, ble contribution to creation of such an econo- reactor series (its power start-up was success- kWh (with the planned value of 199.84 bln full compliance with occupational health and CEO, my and implementation of the 2030 Agenda for fully completed in February 2018). kWh). Thus, it was a record-breaking year for safety standards and rules remain a perma- Rosenergoatom, Sustainable Development adopted by the UN the Russian nuclear power industry throughout nent priority of Rosenergoatom and a focus of Joint-Stock Company (Sustainable Development Goals). A considerable achievement in the moderniza- its history. It approached to the absolute output its public annual reports for many years. The tion and life extension areas was the license record of 212.6 bln kWh achieved in the times safety principle hinges on implementation and The nuclear power industry is one of the most obtained from Rostekhnadzor by the Balakovo of the Soviet Union. constant upgrade of integrated solutions, as rapidly-developing and high-tech sectors of the NPP for operation of the power unit No.2 for an well as maintenance of safety culture and high present-day economy due to its ample opportu- additional 26-year period (above the scheduled According to the results of 2017, the share of professionalism among the personnel. nities in supplying the growing energy needs of 30 years) owing to major efforts focused on the nuclear plants in the Russian energy output the economy and the society, the contribution equipment upgrade. grew to 18.9%, which is 0.6% up versus 2016. I am convinced that Rosenergoatom team will made by the industry into reducing the carbon The capacity factor of Rosenergoatom nuclear cope with each and every task ensuring the emissions, developing the areas of presence As for the innovations, I can not leave unmen- plants is at the world’s best level – 83.3%. The energy safety of Russia and sustainable devel- and the countries of potential market partners. tioned an important project for the industry – installed capacity of NPPs increased to 27.9 opment of our Company. Technological leadership of Rosenergoatom is construction of a floating nuclear power plant GW. based on the uninterrupted development and (FNPP). The project entered the final construc- introduction of innovative solutions, and the tion stage in 2017. Upon delivery of the floating In addition to traditional businesses, we con- process of digital transformation. power unit to Murmansk in 2018, it will be sub- tinue working on new product lines, including 01. Overview Annual report 2017 Rosenergoatom 16 — 17
01. OVERVIEW
1.1 General Information 20
1.2 Mission, Vision and Values 23
1.3 Value Creation 24
1.4 Strategic Goals and Objectives 29
1.5 Risk Management 34
1.6 Sustainable Development Goals 38
57 YEAR CONTINUOUS FLIGHT OF A CARGO DRONE WILL BE POWERED BY ONE NPP UNIT RATED AT 1,000 MW PER HOUR 01. Overview Annual report 2017 Rosenergoatom 18 — 19
ROSENERGOATOM, JOINT-STOCK COMPANY IS ONE OF THE KEY PLAYERS IN THE THE COMPANY EXERTS CONSIDERABLE INFLUENCE ON THE SOCIOECONOMIC WELFARE OF THE SOCIETY POWER INDUSTRY AND THE ONLY OPERATOR OF RUSSIAN NUCLEAR POWER PLANTS, AND ENVIRONMENTAL PROTECTION IN THE AREAS OF PRESENCE – LOCATIONS OF NUCLEAR POWER WHICH IS CLOSELY COOPERATING WITH INTERNATIONAL PARTNERS AND MARKETS. PLANTS AND REGIONS OF BUSINESS ACTIVITIES, AS WELL AS ON THE GLOBAL SCALE.
ROSENERGOATOM’S MAJOR CONTRIBUTIONS INTO THE SUSTAINABLE DEVELOPMENT OF THE SOCIETY ARE AS FOLLOWS:
Maintenance of a high safety level of the Increase in the level of installed capacity and Innovative development of the nuclear power Company’s activities for people and environ- power output of NPPs in order to enable ac- industry and utilization of the intellectual and ment by means of renewable energy, inter alia, cess to cheap, reliable, sustainable and modern technological potential of the Company with a advanced and cleaner technologies, as well as energy sources for all. view to promote other economic sectors in order higher energy efficiency. to improve the efficiency of resource use and wid- er application of clean and environmentally safe technologies and industrial processes. 01. Overview Annual report 2017 Rosenergoatom 20 — 21
1.1 GENERAL INFORMATION
ROSENERGOATOM, JOINT-STOCK COMPANY (HEREINAFTER – THE COMPANY OR SUBSIDIARY COMPANIES ROSENERGOATOM) IS ONE OF THE LARGEST SINGLE-PRODUCT PLAYERS IN THE RUSSIAN ROSENERGOATOM, JOINT-STOCK COMPANY STOCKHOLDERS*: 27.9 No. Company Stake, % Core Business Headcount, POWER MARKET, IT IS NUMBER ONE IN RUSSIA IN TERMS OF POWER OUTPUT AND NUMBER GW — Pers. Rosatom State Corporation (12.4849%) TWO IN TERMS OF INSTALLED CAPACITY. IN ADDITION, THE COMPANY IS THE ONLY total installed capacity Atomenergoprom, OPERATOR OF RUSSIAN NUCLEAR POWER PLANTS. Joint-Stock Company (87.5151%) 1 Atomenergoremont JSC 100 Ensuring operational capabilities of power 8,945 plants, performing repairs at NPP power units
2 AtomEnergoSbyt JSC 100 Power sales in the retail market 2,319 The core businesses of Rosenergoatom are gen- The Company integrates as branch compa- eration of power and heat by its nuclear plants, nies, operational nuclear plants, directorates 3 EREC JSC 100 Research and development in natural and 224 and operation of nuclear plants, sources of of nuclear plants under construction, Directo- engineering sciences radiation, nuclear material and radioactive sub- rate for Construction and Operation of Floating 202.9 stance storage sites pursuant to the procedure Nuclear Power Plants, as well as engineering 4 Baltic NPP JSC 100 Power sales of the Baltic NPP under construc- 20 set forth by the Russian Federation laws. centers, design and technology branch offices. BLN KWH – tion power output 5 IKAO JSC 100 Consulting in commercial activities and 41 102-2, 102-4, 102-7 management
6 Atomtrans JSC 100 Activities of road freight transport and trans- 278 portation services
7 Atomtechenergo JSC 100 Ensuring operational capabilities of power 2,339 CORPORATE STRUCTURE1 102-10 plants ROSENERGOATOM HEADQUARTERS 8 NPP RTC JSC 100 Research and development in natural and 45 engineering sciences
9 ZAES Production Association 100 201 Technical supervision, testing and analysis JSC
10 CONSYST-OS JSC 100 Computer software development 788
11 Energoatominvest LLC 100 Provision of miscellaneous financial services 39 not included into other groups, except for insurance and pension coverage ROSENERGOATOM AFFILIATES – ROSENERGOATOM AFFILIATES ROSENERGOATOM AFFILIATES – NUCLEAR POWER PLANTS DIRECTORATES OF NUCLEAR POWER 12 Rusatom Service JSC 96.7 144 IN OPERATION PLANTS UNDER CONSTRUCTION Ensuring operational capabilities of power plants, running international business
• Balakovo NPP • Directorate for Construction and • Directorate of Baltic NPP under • Bilibino NPP Operation of Floating Nuclear construction 13 Beloyarsk NPP-2 JSC 80 (under liquidation) • Beloyarsk NPP Power Plants • Directorate of Nizhny Novgorod • Kalinin NPP • Technology Branch Office NPP under construction 14 VNIIAES JSC 75 Research and development in natural and 581 • Kola NPP • Pilot and Demonstration Engineer- • Directorate of Voronezh NPP engineering sciences • Kursk NPP ing Center for Decommissioning under construction • Leningrad NPP • Capital Projects Implementation • Directorate of Kostroma NPP 15 Termoxid PNF JSC 67 Chemicals production 19 • Novovoronezh NPP Branch Office under construction • Rostov NPP • Smolensk NPP
1. As of December 31, 2018. Until May 1, 2017 Rosenergoatom also included the Science and Engineering Center. * The reasons for changes in the equity holding structure are given in Section 4.1 – Corporate Governance. On January 17, 2017, the Board of Directors resolved to liquidate the Center. Material Changes in Size, Structure, or Ownership in Reporting Period. 01. Overview Annual report 2017 Rosenergoatom 22 — 23
1.2 MISSION, VISION AND VALUES
REVENUE AND NET PROFIT OF MAJOR SUBSIDIARIES IN 2017 OUR MISSION: OUR VALUES:
Supplying consumers with power and heat Rosenergoatom is primarily focused on energy Company Revenue, Mln Rubles Net Profit, Mln Rubles 3.038 BLN RUBLES produced by the nuclear power plants of safety, protection and safety of people. As an Dividends from equity holdings Rosenergoatom with guaranteed safety as its operator company, Rosenergoatom is fully Atomenergoremont JSC 11,148.7 334.97 in subsidiaries according to the top business priority responsible for ensuring nuclear and radiation results of 2017. SAFETY Atomtechenergo JSC 6,556.4 1,176.77 safety at all stages of the NPPs life cycle, while The Power Engineering Division of Rosatom facing a whole range of challenges related to VNIIAES JSC 1,494.2 94.88 State Corporation is headed by Rosenergoatom location, design, construction, operation, and JSC. decommissioning of NPPs. Important aspects of the Company's activities are socioeconomic PARTICIPATION IN RUSSIAN MEMBERSHIP IN INTERNATIONAL The Company’s activities are closely related to development of Russian and environmental the business priorities of the State Corporation protection. Rosenergoatom implements the NON-COMMERCIAL ORGANIZATIONS● and based on its three strategic objectives: following principles during performance of its ACCOUNTABILITY main activity on operation of NPPs: ORGANIZATIONS 102-12, 102-13 • Increasing the share in international markets; On October 12, 2017, Rosenergoatom became • Ensuring nuclear, radiation, technical, fire and one of the founding members of Rosatom • International Atomic Energy Agency (IAEA)1; • Reducing prime cost and accelerating pro- environmental safety, as well as labor protec- Technical Academy (Autonomous Non-Com- cesses; tion; mercial Organization for Continuing Vocational • WANO – World Association of Nuclear Oper- Education). The Organization is an education ators; • Providing new products to the Russian and • Unconditional compliance with legislation EFFICIENCY and research center of Rosatom State Corpo- international markets. of the Russian Federation, compliance with ration in the areas of ensuring safe utilization • Materials Ageing Institute (MAI) under the requirements of federal standards and rules of nuclear energy and increasing the level of auspices of EDF; OUR VISION: for security, compliance with institutional operational processes competence among the standards; nuclear industry personnel. An educational • European Utility Requirements (EUR); A globally diversified power engineering com- counter-terrorism center for protection of nu- pany being one of the global industry leaders • Safety culture improvement; clear facilities and materials of Rosatom State • Nuclear Energy Agency under the Organiza- and ensuring failsafe and reliable energy supply Corporation is working on the basis of the tion for Economic Cooperation and Develop- as well as competitive cost if compared to the • Economic efficiency of power and heat pro- ONE TEAM Academy. In addition, the Academy is imple- ment (NEA/OECD)2. power generated by other sources. duction at NPPs. menting international educational programs for foreign experts. The unified corporate industry-specific values shaped by Rosatom State Corporation are Rosenergoatom is also one of the founding applicable to the entire nuclear power industry members of the National Nuclear Innovative of Russia. These values underpin the activities Consortium (2014). of Rosenergoatom and the companies within RESPECT its control circuit.
ONE STEP AHEAD
1. The Russian Federation is a member of the Agency; Rosenergoatom participates in activities under the auspices of the Agency via an authorized organization – Rosatom State Corporation.
2. The Russian Federation is a member of the Agency; Rosenergoatom participates in activities under the auspices of the organization via an authorized organization – Rosatom State Corporation. 01. Overview Annual report 2017 Rosenergoatom 24 — 25
1.3 VALUE CREATION
The Company’s business model entails cre- ation of value in the short, medium and long The Company understands term owing to transformation of capitals into capitals as internal and external tangible results – stockholder value, products resources (tangible and and services demanded in the market – aimed PRODUCTION: INTELLECTUAL: intangible assets) used in its at achieving strategic objectives. activities. • Nuclear power plants operated by the • Results of activities of the engineering and The Company’s value chain forms part of com- Company, including equipment and infra- design organizations developing front-end en- mon industry-level processes of Rosatom State structure. gineering design, project design and detailed Corporation organized in accordance with fuel engineering design documentation for NPPs and equipment life cycles. • Services of construction, assembly and re- contrstruction. pair organizations, rendered for the Compa- Integral gains or losses of ny at the stages of NPPs construction and • Result of activities of the industry-level en- capitals lead to increase or operation. terprises dealing with engineering of reactor decrease of the value created plants for new NPP power units, auxiliary by the Company for the • Services of the enterprises supplying equipment and its components. stakeholders, therefore, we pay much attention to enhancement reactor fuel assemblies (FAs) to NPPs and of efficiency of the available BUSINESS MODEL AND VALUE accepting spent nuclear fuel for storage and • The operations related to sci-tech support of resources use. CREATION IN ROSENERGOATOM, JSC reprocessing. nuclear plants operation and enhancement of reliability, safety and efficiency of NPPs, • Services of the industry-level enterprises and performed by research and development that produce management and control organizations. equipment and systems for NPPs, as well as other suppliers of materials and equipment • The intellectual systems, software and used at NPPs. hardware complexes, simulators, automated FINANCIAL: process control systems, technical diagnos- • Servicing (system operators, sales system tics systems and virtual modeling of NPPs for Equity (authorized capital) and the funds bor- administrators, etc.). new projects, which were developed for the rowed from banks and financial institutions. Company.
HUMAN: NATURAL: SOCIAL CAPITAL AND GOODWILL:
The Company's personnel with their compe- First of all, water resources required in the Relations of Rosenergoatom with stakehold- tences, experience, and motivation level for power and heat production process at NPPs, ers, their attitude to the Company and its achievement of the strategic objectives of and land plots for construction of new NPP activities, including trust and readiness to Rosenergoatom. power units. cooperate. 01. Overview Annual report 2017 Rosenergoatom 26 — 27
102-9 BUSINESS MODEL AND VALUE CREATION IN ROSENERGOATOM, JSC
FINANCIAL CAPITALS VALUE CREATION PROCESS KEY RESULTS SHIFT IN CAPITALS CONTRIBUTION TO SUSTAINABLE DEVELOPMENT
VALUE CREATION FOR ROSENERGOATOM PRODUCTION FINANCIAL KEY PROCESSES see Section 2.2 FINANCIAL see Section 3.1 Increasing of EBITDA, mln rubles 1,508,466 mln rubles Equity 3 4 perat on o e st ng s 2017 190,982 INTELLECTUAL 74,046 mln rubles Debt • Implementation of new NPP power units 42% 2016 134,614 construction projects 1,509,615 mln rubles et assets HUMAN Good Health and Quality • Sales of power and heat 815,841 mln rubles Authorized capital Well-Being Education • Servicing of Russian design NPPs abroad Increasing of power output, SOCIAL CAPITAL PRODUCTION bln kWh PRODUCTION see Section 2.1, 2.2 AND GOODWILL 2017 202.87 6 7 3% 2016 196.4 35 power units in operation NATURAL DEVELOPMENT PROCESSES see Sections 2.2 2.5 2.6 2.7 The Company’s partners: construction, assembly and repair enterprises; suppliers of nuclear fuel; systems R&D organization and performance Increasing of labor productivity, and equipment suppliers1 Clean Water and Affordable and an tat on Clean Energy mln rubles pers. Strategy Upgrade of existing NPPs and their service life INTELLECTUAL e tens on 2017 10.64 INTELLECTUAL see Section 2.4, 2.5 Development of international activity 23% 2016 7.97 Value creation process 8 9 1,790 mln rubles Intangible assets value
Key processes Increasing of intangible assets (see Section 2.2) IN COOPERATION WITH CONSUMERS see Section 2.1 Decent Work and Industry, Innovation value, mln rubles Economic Growth and Infrastructure WECM participants Operation of existing NPPs 2017 1,790 HUMAN AtomEnergoSbyt JSC 58 % 2016 1,131 HUMAN see Section 3.5 Implementation of new NPP power units construction projects Regional heat markets 33,886 pers. Average staff number 11 12 Servicing companies within Power Engineering Sales of power and heat hours of training 10.64 mln rubles/pers. Labor productivity Division Servicing of Russian design NPPs abroad 92 per employee 3,115,027 Total number of staff training Sustainable Cities Responsible hours Development processes (see Sections 2.4, 2.5, 2.6, 2.7) and Communities Consumption and 81 % Satisfaction level Production R&D organization and performance SOCIAL CAPITAL IN COOPERATION WITH KEY PARTNERS VALUE CREATION FOR THE SOCIETY SOCIAL CAPITAL Upgrade of existing NPPs and their service life extension AND GOODWILL AND GOODWILL see Section 3.7 Environmental costs, Development of international activity Construction, assembly, and repair organizations and companies mln rubles 74 % Level of the nuclear energy sector 13 14 In cooperation support in the Russian Federation Plants supplying and reprocessing nuclear fuel With consumers (see Section 2.1) 2016 3,447 Reputation of the Company and its activities 3,837 Climate Life below Suppliers of systems, equipment among stakeholders, including trust and WECM participants Action ater and materials AtomEnergoSbyt JSC collaborative approach NATURAL Engineering and design organizations Regional heat markets NATURAL see Section 3.3 Research and development centers 2016 1.68 Servicing companies within Power 1.98 6,665.7 mln m3 Amount of water withdrawn from 16 Engineering Division Servicing companies bln rubles out of additional taxes sources SUSTAINABLE DEVELOPMENT accrued to regions were 6,255.0 mln m3 Diverted water, the share of Peace, Justice and channeled to municipal entities’ contaminated wastewater – 0.03%. GOALS With key partners Strong Institutions
STRATEGY MISSION AND VALUES activities Construction, assembly, and repair organizations 35,112 t Produced waste and companies 1. The information about the Company’s key partners is given in 2014 Annual Report (page 31). Plants supplying and reprocessing nuclear fuel Suppliers of systems, equipment and materials Engineering and design organizations Research and development centers Servicing companies
Mission and Values
Key results Value creation for Rosenergoatom • EBITDA increased by 42% (190,982 mln rubles – 2017; 134,614 mln rubles – 2016)Power output increased by 3% (202.87 bln kWh – 2017; 196.4 bln kWh – 2016) • Labor productivity increased by 23% (10.64 mln rubles/pers. – 2017; 7.97 mln rubles/pers. – 2016) • Intangible assets value increased by 58% (1,790 mln rubles – 2017; 1,131 mln rubles – 2016) • 92 hours of training per employee Value creation for the society
• Environmental costs – 3,837 mln rubles (3,447 mln rubles in 2016) • 1.98 bln rubles out of additional taxes accrued to regions were channeled to municipal entities’ activities (1.68 bln rubles in 2016)
Shift in capitals
Financial capital (see Section 3.1) Production capital (see Sections 2.1, 2.2) Intellectual capital (see Sections 2.4, 2.5) Human capital (see Section 3.5) Social capital and goodwill (see Section 3.7) Natural capital (see Section 3.3, 3.4)
Contribution to sustainable development 3. Good health and well-being 4. Quality education 6. Clean water and sanitation 7. A ordable and clean energy 8. Decent work and economic growth 9. Industry, innovation and infrastructure 11. Sustainable cities and communities 12. Responsible consumption and production 13. Climate action 14. Life below water 16. Peace, justice and strong institutions SUSTAINABLE DEVELOPMENT GOALS 01. Overview Annual report 2017 Rosenergoatom 28 — 29
KEY PROCESSES OF CAPITALS MANAGEMENT 102-15 103-1 1.4 STRATEGIC GOALS OPERATION OF EXISTING CONSTRUCTION MANAGEMENT POWER SERVICING OF RUSSIAN DESIGN 103-2 NPPS OF NEW NPP POWER AND HEAT SALE NPPS ABROAD 103-3 AND OBJECTIVES Management of equipment, nuclear Shaping of the Company’s fixed Power sale in the wholesale Activities related to provision of fuel, and the process of power and productive assets and infrastructure, electricity and capacity market services to foreign customers at heat production for subsequent from the investment plan to delivery (WECM) and interaction with end Russian design NPPs with a view to marketing. of a finished asset for operation. consumers of power and heat, increase the Company’s revenues in including execution of a contract external markets. with the end consumer.
CAPITALS DEVELOPMENT PROCESSES
ORGANIZATION/PERFORMANCE OF R&D DEVELOPMENT OF INTERNATIONAL ACTIVITIES:
The search initiated by the Company for solution of long-term tasks in • Marketing – collection and analysis of information to determine parameters of production and sci-tech activities to the extent of modernization of NPP effective demand, desired commodity (consumer) properties, target markets power units design and construction technologies, increase of main and consumers, and promotional channels; equipment service life, introduction of new materials and technologies, and • Service development – forming a line of services with required consumer development of new reactor units. properties, approaches to pricing and interaction with target customers; • Sales and contracting – services promotion, consumer search, and interaction with consumers up to conclusion of a contract; • Production (provision) of services – processes of contractual obligations MODERNIZATION OF EXISTING NPPS discharge; • After-sale service – provision of additional services to ensure competitive Activities aimed at increasing NPPs operation performance subject to performance and establishment of long-term mutually beneficial relations with unconditional safety at all stages of their life cycle. consumers.
VALUE CREATION FOR STAKEHOLDERS
The Company uses sales channels for sale of products power supply to end consumers at a competitive price, (basic: power, capacity, and heat) to consumers. As a yields profit to stockholders and asset growth, promoting result of its activities, Rosenergoatom offers uninterrupted development of the Company and the industry in general.
CAPITALS TRANSFORMATION RESULT
The current situation in the Russian and global Rosenergoatom has a unique experience in markets requires that the Company improves creating the nuclear power infrastructure in the The strategy Rosenergoatom is part and parcel of the business FINANCIAL CAPITAL PRODUCTION CAPITAL INTELLECTUAL CAPITAL the efficiency of capital projects, including op- Russian Federation that provides it with the key • Equity, mln rubles ...... 1,508,466 • Power units in operation...... 35 • Intangible assets value, mln rubles ...... 1,790 timization of NPPs construction cost and time competitive advantages, rendering technical strategy of Rosatom State Corporation, which, in its turn, • Debt, mln rubles ...... 74,046 • The Company’s partners: construction, while ensuring a high safety level, and reduces supervision services at Russian design power is based on provisions of the • Net assets, mln rubles ...... 1 509,615 assembly and repair enterprises; suppliers of operating expenses in order to keep the target units, performing start-up and commissioning nuclear fuel; systems and equipment suppliers1 Russian Federation Energy • Authorized capital, mln rubles ...... 815,841 profitability level. Moreover, product and geo- operations in Russia and abroad, operating and Strategy. graphic diversification is required. maintaining the power units at Russian NPPs. In 2017, Rosatom State Corporation confirmed its strategic objectives approved a HUMAN CAPITAL SOCIAL CAPITAL AND GOODWILL NATURAL CAPITAL year before. • Average staff number, pers...... 33,886 Reputation of the Company and its activities • Amount of water withdrawn from sources, 3 • Labor productivity, mln rubles/pers...... 10.64 among stakeholders, including trust and mln m ...... 6,665.7 collaborative approach 3 • Total number of staff training hours . 3,115,027 • -Diverted water, mln m ...... 6,255.0 • -... Level of the nuclear energy sector support in • Satisfaction level ...... 81 % • the share of contaminated wastewater, the Russian Federation ...... 74 % mln m3...... 0.03 % • Produced waste, t...... 35,112
1. The information about the Company’s key partners is given in 2014 Annual Report (page 31). 01. Overview Annual report 2017 Rosenergoatom 30 — 31
KEY MARKET CHALLENGES STRATEGIC GOALS CORE OPERATIONS OF ROSENERGOATOM CONTRIBUTION TO STRATEGY MAIN DEVELOPMENT OF ROSENERGOATOM IMPLEMENTATION IN 2017 AREAS AND CONTRIBUTION
TO ACHIEVING Low energy consumption STRATEGIC growth rates in the Russian market – <1% OBJECTIVES IN 2017 until 2022 • Services throughout the whole • 60.2 bln rubles – revenues from new products NPP life cycle (outside Rosatom State Corporation circuit) Implementation of strate- Increasing the share in gic objectives requires that • Nuclear infrastructure creation and • 48.4 bln rubles – portfolio of new product international markets Rosenergoatom is constantly development services orders for the period of 10 years (outside developing processes and Rosatom State Corporation circuit) • Decommissioning of NPP power units technologies, as well as advancing new business lines. Among the key development Surplus of generating vectors of the Company's capacities in Russia activities are: (according to experts’ assessments) • Operational improvements • Balakovo NPP power unit No.2 operation license obtained for another 26 years • NPP construction efficiency improvement • Commissioning of the Rostov NPP power Reducing prime cost and unit No.4 accelerating processes • Equipment upgrade • Start-up of the innovative Generation III+ power unit No.1 at the Leningrad NPP-2 Long-term government- supported strategy • Record output for domestic NPPs at the of the end consumer Leningrad NPP – 1 tln kWh support through the “inflation minus” tariffication principle
• Services for various types of • Co-60 cobalt isotope production started at generating facilities the Smolensk NPP • Isotope business • The Smolensk NPP started transferring • Data processing centers construction spent nuclear fuel to dry storage Higher competitiveness New products for Russian at NPPs and international markets of steam generating units • NPPs decommissioning and (combined heat and power radioactive waste treatment plants) • Electricity distribution vv 01. Overview Annual report 2017 Rosenergoatom 32 — 33
CONTRIBUTION TO STRATEGY A joint meeting of the Sci-Tech Council of Ro- OBJECTIVES FOR 2018 IMPLEMENTATION IN REPORTING PERIOD satom State Corporation held on July 18, 2017 AND MEDIUM TERM considered the results of feasibility optimi- The most significant events of 2017 are: zation for the engineering design of BN-1200 The Strategic Council of Rosatom State Cor- Moreover, in 2018, the Strategic Council of Ro- reactor unit and the materials of the power unit poration set the target indicators for Rosener- satom State Corporation set ambitious targets • Novovoronezh NPP-2 power unit No.1 was with BN-1200. goatom in 2018-2020. A new key performance for all divisions in improving labor productivity, put into commercial operation; indicator (KPI) of EBITDA Contribution (Power which stimulates enterprises to introduce Among the key events of 2017 in NPPs Servic- Generation) was added to the KPI matrix. Its new products to the market and increase the • First criticality at the Rostov NPP power unit ing Abroad are: target value is on the ambitious level achieva- efficiency of existing ones. Rosenergoatom, No.4 and the Leningrad NPP-2 power unit ble through positive influence of power (capac- as the Power Engineering Division of Rosatom No.1; • Signing of a contract for servicing of the El ity) prime cost reduction, additional revenue State Corporation, was set with the target value Dabaa NPP planned for construction in Egypt; generation by means of production ramp-up, of 9.2 mln rubles/pers. for 2018, which entails In addition, the following investment projects and a favorable price environment in the power productivity growth of 6.3% versus the level are up and running: • Signing of a contract for provision of eval- (capacity) market. achieved in 2017. This is really challenging for uation services and nuclear infrastructure the Company. • Construction of the Novovoronezh NPP-2 development in the Republic of Zambia; The KPI of Specific Forecast Cost of NPP power unit No.2 and the Leningrad NPP-2 Construction, Taking into Account Time Limits, power unit No.2 is being completed; • Signing of a contract for servicing of the Rubles/KWh was replaced for Compliance with Akkuyu NPP (Turkey); Deadlines and Costs of NPPs Construction, % • The main construction stage of the Kursk setting additional requirements for improving NPP-2 power units No.1 and No.2 is underway; • Signing of contracts for personnel training efficiency of nuclear plants construction. and commissioning operations at the Roop- • Construction of the Floating Nuclear Power pur NPP (Republic of Bangladesh). Plant (FNPP) is being completed. KEY INDICATORS FOR ROSENERGOATOM ACTIVITIES IN 2018-2020 In 2017, as part of the new contract the Smo- As part of achieving the Fulfilment of A series of operations aimed at extending the lensk NPP power unit No. 1 started producing Key Indicators 2016 2017 2018 2019 2020 State Objectives KPI, service life of the Balakovo NPP power unit Co-60, preparations required for Co-60 produc- (actual) (actual) Rosenergoatom will face No.2 was accomplished, and a license for the tion in 2018 are underway at the Smolensk NPP the challenges of the additional operation period was received. power unit No.2 at the moment. The Beloyarsk EBITDA contribution (power generation), bln — — 213,4 297,3 285,2 Leningrad NPP power NPP is getting prepared for highly active Co-60 rubles unit No.1 and the Rostov NPP power unit No.4 A permit of Rostekhnadzor was received to production start-up in 2018. Investment program fulfilment, % 98,6 98,7 100 100 100 commissioning within increase the reactor thermal output to 104% of the specified deadlines, the nominal value in the pilot operation mode A key event of 2017 was implementation of as well as preparation for for the Rostov NPP power unit No.3, and in the one of the Company’s major projects – con- Power generation at NPPs, bln kWh 196,4 202,87 201,33 202,6 220,7 comprehensive harbor testing of the floating power commercial operation mode for the Kalinin NPP struction of the Data Processing and Storage unit, construction of the power units No.1 and No.2. Center of Rosenergoatom (DPC) at the site onshore infrastructure and close to the Kalinin NPP. DPC Stage 1 facilities Installed capacity of NPPs, GW 27,1 27,89 30,1 30,4 30,4 hydraulic facilities for the Innovative operations worth more than 1.7 were commissioned in December 2017. DPC FNPP. bln rubles were performed as part of the R&D Stage 2 facilities are under construction. They Compliance with deadlines and costs of NPPs — — 100 100 100 section of the Company’s investment program are scheduled for completion in April 2018 and construction in Russia, % in 2017. commencement of lease in June 2018. Labor productivity across Power Engineering 7,04 8,65 9,2 9,7 10,2 Division, mln rubles/pers. Research on extending the fuel campaign of In 2017, AtomEnergoSbyt, a subsidiary of Rosen- the BN-600 and BN-800 power units continued ergoatom, continued operations under the status LTIFR and reducing accident severity at enterpris- 0 0,08/20 % 0,15/20 % — — with introduction of new structural materials of of the ‘last resort supplier’ of power in the Kursk, es, including contractors (versus base level of fuel element jackets, as well as implementation Tver, Smolensk, and Murmansk Oblasts through previous year) of a series of measures for gradual transition of established branches and standalone structural BN-800 to full loading with MOX fuel. units. No events above INES Level 2 0 0 0 0 0 A comprehensive R&D Program for 2017-2024 Decommissioning of the Novovoronezh NPP was enacted for substantiation of the 1st stage power units No.1 and No.2 continued in 2017. R&D funding, bln rubles — 1,8 > 2,0 > 2,0 > 2,0 of the two-component nuclear energy system Reference experience was obtained in disas- of a closed loop cycle on the basis of heat reac- sembly and fragmentation of Circuit 1 equip- Fulfillment of state objectives, % 90 100 100 100 100 tors (VVER) and fast sodium reactors (BN). ment. 01. Overview Annual report 2017 Rosenergoatom 34 — 35
102-11 1.5 RISK MANAGEMENT 102-15 102-29 102-30 201-2 103-1 103-2 103-3
The Company’s risk management system (RMS) special attention to the risks of nuclear, radiation, SYSTEM OF RISK MANAGEMENT COMPETENCE DISTRIBUTION AMONG MANAGEMENT AND CONTROL BODIES shall support implementation of the strategy occupational and fire safety, physical protection and the business plan at all levels through inte- of NPPs, therefore any decisions related to the gration of the risk management process with the Risk Management System functioning are taken LEVELS MANAGEMENT CONTROL BODIES managerial decision making processes, ensur- with due account of the requirements stipulated ing timely identification, evaluation and efficient by the standards applicable to all kinds of safety, mitigation of the risk level. as well as uninterrupted operation and streamlin- Risk control Risk planning ing of the safety management system as part of Development of the Company’s RMS is car- the Company’s overall management system. ried out in line with the Regulation on Power Strategic CEO Engineering Division Risk Management System In 2017, as in the previous years, Rosenergoatom of Rosatom State Corporation. Due to specific did not allow for considerable adverse conse- Risk officer nature of its activities, Rosenergoatom pays quences of risk occurrence. Dedicated structural unit for risk management
BASIC PRINCIPLES OF RISK RISK MANAGEMENT SYSTEM Risk owners Tactical MANAGEMENT SYSTEM GOALS AND OBJECTIVES Independent internal inspector • Mandatory accounting for the necessity of GOAL compliance with the applicable standards of all kinds of safety, and ensuring of uninter- • Organization of risk management activities rupted functioning and streamlining of the capable of making a considerable impact on Mitigation measures Identification and analysis Operational safety management system being an integral the goals of the Company and organizations part of the overall management system of within the Company’s management circuit. Rosenergoatom. OBJECTIVES • Main processes of production, financial, organizational planning (strategic planning, • Timeliness and completeness of identifica- business planning, investment planning, tion of the risks significantly influencing the budgeting) include the risk identification and Company’s goals achievement. assessment procedures. • Correct assessment of risks with a view • Comprehensive assessment of risks is to support the planning system ensuring carried out with consideration of mutual in- predictability of the range of changes in the fluence of all risks emerging in various fields key performance indicators of the Company of the Company’s activities. and organizations within its management circuit.
• Constant monitoring of risks and control of action plans execution in order to prevent, consciously perceive, and decrease the probability and exposure to risks. 01. Overview Annual report 2017 Rosenergoatom 36 — 37
MAJOR RESULTS OF 2017 Further development of the methodological 1. RISK OF DECREASE IN ELECTRICITY AND CAPACITY PRODUCTION VOLUME AND PROSPECTS FOR 2018 and regulatory support of the risk manage- ment system is scheduled for 2018. A focus Risk factors: Risk level: Risk management: will be placed on introduction of risk manage- Violations, equipment failures resulting in full or partial Risk level reduced. Introduction and All cases of upsets and failures in equipment oper- unloading of the power unit, and NPP unpreparedness application of the RPS for streamlin- ation were investigated pursuant to the established The Company’s major efforts in streamlining ment into international activities. to meet production commitments. ing of production activities allowed procedure. Corrective and preventive measures were the risk management system are focused on for full elimination of the adverse developed. They are aimed at removal of the root its further integration with all basic processes UPDATED LIST OF KEY RISKS: factors impact in 2017. causes of upsets and prevention of their repetition. including investment planning and budgeting. • Coordination and Development Planning A Regulation on Risk Management System of Risks the Power Engineering Division of Rosatom State Corporation was developed in a sched- • Safety Risks 2. RISK OF UNFAVORABLE CHANGES IN MARKET PRICES uled manner (in lieu of the previous Risk Man- agement Policy); the list of key risks and their • External Environment Risks Risk factors: Risk level: Risk management: owners was updated, aggregate influence • Price environment changes in the electricity and ca- The risk level is moderate, the risk The risk depends exclusively on external factors. Risk pacity market (due to reduced electricity consumption, was partially observed as the system hedging with the use of financial instruments does of risks (including the risks of considerable • Operational Risks emergence of more economically viable generation in operator limitations in 2017. not seem possible due to low market liquidity. For the changes in the global commodity markets) on the market, fluctuation of prices for fossil fuel) purpose of risk reduction, energy distribution service major financial and economic indicators was • Supporting Processes Related Risks • Full or partial absence of demand for potential capabil- providers are taking efforts to agree repair times for assessed, scheduled monitoring of risk man- ities of NPPs due to specific requirements of the sys- network equipment with Federal Grid Company of agement measures was accomplished. tem operator for the energy system operation mode. Unified Energy System, and Unified Energy System POTENTIALLY CONSIDERABLE Operator. Procedural Guidelines for Process Risks Man- RISKS TO ROSENERGOATOM 3. RISK OF COUNTERPARTY’S FAILURE TO TIMELY DISCHARGE ITS OBLIGATIONS IN FULL agement were developed as part of transition to the integrated management system. Large- GOALS ACHIEVEMENT Risk factors: Risk level: Risk management: scale integration of the risks management Deterioration of financial and economic stability and Moderate • Reviewing claims related to WECM non-payers; procedures with each and every process was The most significant risks capable of making payment discipline among counteragents • Settling the debts of existing WECM players in an out-of-court manner; launched. Work was organized to compile considerable impacts on achievement of the • Returning a portion of WECM receivables in accord- reports in accordance with the Procedural Company’s strategic goals and objectives ance with the results of tenders organized by the Guidelines, and preliminary reports on risks were identified on the updated list of key Russian Federation Energy Ministry to replace the management in all processes were received. risks: suppliers of last resort; • Applying the system of financial guarantees in the wholesale market.
RISKS BEHAVIOR CONSIDERABLE RISKS BEHAVIOR MATRIX IN 2017: 4. RISK OF GROWING COSTS AND EXTENDING TERMS OF NPPS CONSTRUCTION Changes are caused by considerable potential influence of risk factors PROBABILITY IN RUSSIA
Increase Risk factors: Risk level: Risk management: Low Medium High • Violation of obligations by sub-contractors in relation The risk level was throughout 2017 For the purpose of risk management, the system of to work schedules and quality due to high probability of construc- management is under improvement for all stages of 4 Decrease • Violation of obligations by suppliers in relation to the tion time and cost impacts on the NPPs construction, starting from pre-design prepara- High 1 equipment supplies schedule and quality. Company’s financial indicators. tions and ending with power unit commissioning.
Requirements for organization of the assembly and construction work monitoring system were devel- 2 4 No considerable changes oped and introduced at NPP construction sites. The
Medium requirements ensure a unified procedure at all sites SENSIBILITY for collection and analysis of data and information on assembly and construction work quality.
Low 1 3 01. Overview Annual report 2017 Rosenergoatom 38 — 39
1.6 SUSTAINABLE DEVELOPMENT GOALS
Being one of the largest power industry enter- UNSUSTAINABLE THE COMPANY’S SUSTAINABLE prises and the only operator of Russian nuclear DEVELOPMENT GOALS DEVELOPMENT ACTIVITIES INCLUDE: plants, which closely cooperates with interna- tional partners and markets, Rosenergoatom • Maintaining energy security of the Russian • Observing the principles of corporate social significantly influences the socioeconomic wel- On September 25, 2015, the UN member Federation through safe, reliable and efficient responsibility and efficient personnel man- fare of the society and the environment in the states adopted the 2030 Agenda for Sustaina- operation of nuclear power plants; agement; areas of presence – locations of nuclear plants ble Development. It contains a series of goals and regions of business activities, as well as on aimed at liquidating poverty, preserving the • Developing the power industry and increas- • Increasing the transparency and accounta- the global scale. planet resources, and ensuring well-being for ing energy efficiency; bility of activities, following the best interna- all. Each of the 17 Goals contains a series of tional practices and standards of sustainabil- The Company fully understands its economic, indicators that shall be achieved during 15 • Minimizing the environmental impact, on the ity reporting (including the Global Reporting social and environmental responsibility before years. global scale, inter alia; Initiative Standards, and the International the society and completely supports the UN Integrated Reporting Framework); Sustainable Development Goals that can be • Exerting the economic and social influence in achieved through combination of efforts of the regions of presence; • Positive interaction with stakeholders. governments, private sector, civil society, and the global community. 01. Overview Annual report 2017 Rosenergoatom 40 — 41
DUE TO SPECIFIC ACTIVITIES, THE COMPANY MAKES A CONSIDERABLE CONTRIBUTION DELINEATION OF FUNCTIONAL RESPONSIBILITY AREAS TO ACHIEVEMENT OF THE FOLLOWING UN SUSTAINABLE DEVELOPMENT GOALS: The matters related to OF SUSTAINABLE DEVELOPMENT AMONG CORE STRUCTURAL sustainability management UNITS IS GIVEN BELOW: are regularly put on meetings agenda of Clean Water and Sanitation Affordable and Clean Energy 6 7 the Company’s Board of Directors and its Ensure availability and sus- Ensure access to affordable, re- directorate. tainable management to water liable, sustainable and modern First Deputy CEO for Corporate Functions and sanitation for all energy for all Social Responsibility
Environmental impact, power generation, Decent Work and Industry, Innovation and First Deputy CEO for NPPs Operation 8 9 energy efficiency improvement Economic Growth Infrastructure
Promote sustained, inclusive Build resilient infrastructure, and sustainable economic promote inclusive and sus- growth, full and productive tainable industrialization and Economic responsibility Deputy CEO – Director for Economics and Finance employment and decent work foster innovation for all
IN ADDITION, ROSENERGOATOM MAKES A DIRECT IMPACT ON OTHER SUSTAINABLE DEVELOPMENT GOALS, NAMELY:
Good Health and Well-Being Quality Education 3 4 Ensure healthy lives and Еnsure inclusive and equitable promote well-being for all at quality education and promote all ages lifelong learning opportunities for all
Sustainable Cities and Responsible Consumption and 11 Communities 12 Production
Make cities and human settle- Ensure sustainable consump- ments inclusive, safe, resilient tion and production patterns and sustainable
13 Climate Action 14 Life below Water Take urgent action to com- Conserve and sustainably use bat climate change and its the oceans, seas and marine impacts resources for sustainable development
Peace, Justice and Strong Institutions 16 Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 42 — 43
02. TECHNOLOGICAL LEADERSHIP AND INNOVATIONS
2.1 Situation in Power Sector 45
2.2 Generating Capacities. Developing Generating Potential 52
2.3 Ensuring Safety of Russian NPPs 84
2.4 Innovations. Sci-Tech Policy. Knowledge Management System 90
2.5 Contribution to Russian Digital Economy. Information Technology 102
2.6 International Sci-Tech Cooperation 108
2.7 International Business and New Products 112
12 000 ELECTRIC CARS COULD BE CHARGED DURING ONLY 1 HOUR BY ONE REACTOR RATED AT 1,000 MW 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 44 — 45
103-1 103-2 2.1 SITUATION 103-3 IN POWER SECTOR
KEY RESULTS OF 2017: THE COMPANY’S CORE BUSINESS IS POWER AND HEAT GENERATION AT NUCLEAR Rosenergoatom is a Power PLANTS. ROSENERGOATOM TRADITIONALLY TAKES THE LEADING POSITIONS Engineering Division of Rosatom, CONTRIBUTION TO ACHIEVMENT OF UN SDGS AMONG RUSSIAN AND FOREIGN GENERATING COMPANIES IN TERMS OF INSTALLED the only operator of all Russian NPPs. CAPACITY AND POWER OUTPUT. 7 Affordable and Clean Energy 27.89 Ensure access to affordable, reliable, sustaina- ble and modern energy for all GW (+0.79 GW) Installed capacity MACROECONOMICS1 GLOBAL PRODUCTION nd VOLUME GROWTH, % Global economic activity is growing further. 2 The global production volume grew by 3.7% Rosenergoatom is the world's in 2017, which is 0.5 percentage points more second largest company in terms 3.7 of generating capacities and 2017 than in 2016. Unexpectedly rapid economic 18.9 % 3.7 installed capacity. Decent Work and Economic Growth 20172018 3.9 8 growth was observed in Europe and Asia. The Company’s NPPs take the 2018 3.93.9 Promote sustained, inclusive and sustainable 2019 The global growth forecast for 2018 and share of 18.9% in the total amount 2019 3.9 of power generated in the Russian economic growth, full and productive employ- 2019 increased by 0.2 percentage points to 2017 2.3 Federation ment and decent work for all 3.9%. Such a revision reflects the higher pace 2017 2018 2.32.3 of the global economy growth. In 2017, high- 2018 2.3 2019 2.2 er rates of economic growth, if compared 2019 2.2 to the previous year, were observed in some 2017 4.7 120 countries making up three-fourths of the The innovative power unit No. 2017 4.7 2018 4.9 global GDP. That was the widest synchro- 1 of the Novovoronezh NPP-2 2018 4.9 pertaining to Generation III+ was 2019 5.0 nized growth of the global economy since 202.87 2019 5.0 awarded 2017 Top Plant by the 20102. BLN KWH POWER Magazine, the oldest Global economy (+6.5 bln kWh) magazine in the US, highlighting GlobalDeveloped economy economies Rosenergoatom set another Industry, Innovation and Infrastructure The global trade ramps up owing to higher innovative and promising projects 9 DevelopedEmerging economies markets and developing economies record in power generation rates of investments growth, especially in that illustrate the development Build resilient infrastructure, promote inclu- Emerging markets and developing economies the developed countries. thrusts of the whole industry. sive and sustainable industrialization and foster innovation RUSSIAN GDP FLUCTUATION, % YOY3 The current status of the Russian economy Rosstat estimates is assessed by analysts as steady, and the growth as “moderate”. The influence of the 83.29 % 4 EU and US economic sanctions continued in 42.5 2017. The GDP index totaled 1.5%. The Rus- Capacity factor 2.5 sian economy growth rates are estimated on 0 the same level of 1.5-2% in 2018. 0 11 Sustainable Cities and Communities -2.5 Make cities and human settlements inclusive, -2.5 2012 2013 2014 2015 2016 2017 1.8 safe, resilient and sustainable 2012 2013 2014 2015 2016 2017 BLN KWH R&D funding 1. http://www.imf.org/ru/About/infographics/world-economic-outlook-update-january-2018-infographic 2. http://www.imf.org/ru/Publications/WEO/Issues/2018/01/11/world-economic-outlook-update-january-2018 3. http://www.vestifinance.ru/infographics/10360 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 46 — 47
WORLD’S TOP 5 COMPANIES (AS OF END OF 2017)
No. Operator International Country Number Number Installed Installed Ca- Generation Generation Generation Company Abbreviation of Units of Sites Capacity, pacity, Gross in 2016 GWh in 2015 GWh in 2014 GWh Net MW MW (Power) (Supply) (Supply) (Supply) (Power)
1 Électricité EDF France 58 19 63,130 65,880 386,452.88 419,022.15 418,001.40 de France
1 ELECTRICITY to increase its share to 7%. Meanwhile, the 2 Rosenergoatom REA Russia 35 10 26,111 27,890 183,180.81 182,807.13 169,048.56 (supply) (supply) (supply) nuclear power development trends will differ in A considerable growth of nuclear AND CAPACITY MARKET 196,366.00 195,214.00 180,500.00 developed and developing countries. The share capacities (by five times) will (generation) (generation) (generation) of NPPs in power generation in the OECD mem- be ensured by developing Asian 2 Contrary to many expectations of the 1950- ber states is forecast to decrease from 17.9% countries, primarily China and 3 Korea Hydro and KHNP South 24 6 22,501 23,519 151,455.4 157,198.94 169,916.23 60s when the first NPPs appeared, the nuclear in 2015 to 17.5-17.7% in 2040. The respective India. Nuclear Power Korea power industry has not become the dominat- share outside the OECD will increase from 4.5% 4 Exelon Corporation Exelon USA 22 13 22,092 22,912 186,875.71 182,810.48 182,161.63 ing energy source. At present, it only supplies in 2015 to 7.9-8.1% in 2040 on the contrary. 5% of the global energy consumption. In the 15 4 13,107 13,835 76,077.79 82,405.17 83,122.78 period until 2040, all scenarios contemplate In 2017, the global generating capacities of 5 NNEGC Energoatom NNEGC Ukraine that the nuclear industry will grow faster than nuclear plants grew to 391 GW (power), the the energy consumption, enabling the industry number of operating reactors totaled 448.
NUCLEAR CAPACITIES USE FROM 2016 TO 2040 BY COUNTRIES, MOST LIKELY SCENARIO1 NPP POWER GENERATION IN WORLD COUNTRIES (LEFT SCALE) considerable increase in the number of countries with nuclear energy is expected AND OUTPUT IN TWH (CIRCLE SIZE), MOST LIKELY SCENARIO In terms of the number of reactors in operation, Russia takes the 5th place after France, USA, Japan and China (as of ИРАН n a December 31, 2017). In terms 7 84 228 apan of installed capacity of NPPs ra ne and the amount of operating ana a power units Rosenergoatom 6 103 243 holds the 2nd place in the world out orea among leading global companies Russ a operating NPPs (1st place – EDF, 280 na 5 148 France). ran e CIS A 313 4 195
364 3 232 NORTH EUROPE AMERICA DEVELOPING ASIA 870 2 427 MIDDLE EAST AFRICA 1147 1 826 SOUTH AND CENTRAL AMERICA DEVELOPED ASIA 0 not a a la le an not ore ast 2015 2040 not a a la le ut planne a a la le ut e pe te to s r n a a la le an e pe te to e pan
1. Hook-up of the Rostov NPP power unit No.3 on December 27, 2014, Beloyarsk NPP power unit No. 4 on December 10, 2015, Novovoronezh NPP-2 power unit No.1 on August 5, 2016, final shut-down of the Novovoronezh NPP power unit No.3 on December 25, 2016. Power generation data of 2014 pertain to 34 units, 2015 – 35 units, 2016 – 36 units. 2. Shin-Wolsong NPP power unit No.2 commissioned in February 2015, Shin-Kori NPP power unit No.3 – in January 2016. The Kori-1 NPP power unit was finally shut 1. Global and Russian Energy Forecast of 2016: https://www.eriras.ru/. down in June 2017. 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 48 — 49
Rosenergoatom is the leader of Russian generating companies in 748 27.89 terms of power output. power stations with the capacity GW — total installed capacity of Rosenergoatom exceeding 5 MW are embraced in the NPPs by the end of 2017. This is 11.63% of the Russian UES capacity Russian UES power complex
In 2017, the Russian UES CHPPs 671,349.4 -0.3% No. UES NPP Installed Power Generation HPPs 178,901.6 +0.3% power plants generated Capacity, 1,053,861.9 mln kWh, includ- NPPs 202,868 +3.3%1 GW WPPs 131 +126 mln kWh Power Generation, Share in Russia in General in ing power output of captive Bln KWh Russian UES1, % 2 power plants (0.5% increase SPPs 563 +491.3 mln kWh versus 2016). Out of this Total for Rosenergoatom NPPs 27.890 202.87 18.9/19.3 amount, the annual power mln 1 Central UES Kalinin NPP 13.597 100.36 42.2 output by types of power output e rease Kursk NPP plants was as follows: output n rease Novovoronezh NPP2 Smolensk NPP
2 Northwest UES Kola NPP 5.760 36.90 34.1 FORECAST DEMAND FOR POWER IN RUSSIAN UES IN 2017-20233 Leningrad NPP
3 Volga UES Balakovo NPP 4.000 32.00 29.7
Annual growth , 4 South UES Rostov NPP 3.000 23.20 23.2 1.85% 5 Urals UES Beloyarsk NPP 1.485 10.20 3.9 1.49% European part (1 + 2 + 3 + 4 + 5) 27.842 202.64 24.9 1.30% 1.28% 0.97% (1.00%)4 0.048 0.23 0.46 0.88% 1.00% 6 East UES Bilibino NPP
POWER OUTPUT AND INSTALLED CAPACITY OF ROSENERGOATOM COMPARED TO LARGEST GENERATING COMPANIES OF RUSSIA, 0.09% 2015-2017 2016 2017 2018 2019 2020 2021 2022 2023 Actual Company Power Output, Bln kWh Installed Capacity, GW
Unified Energy System of Russia, bln kWh 2015 2016 2017 2015 2016 2017 1090.5 1101.0 1026.9 1027.8 1041.1 1054.4 1070.2 1079.7 Rosenergoatom 195.2 196.4 202.9 26.2 27.1 27.9
Gazprom Energoholding3 147.0 153.8 150.8 38.0 38.0 39.0
RusHydro4 114.3 124.8 126.96 35.7 35.8 39.0
INTER RAO – Electric Power Plants5 140.7 133.8 134.8 34.9 32.5 32.7
T Plus Group6 56.5 55.3 55.0 15.3 17.5 15.7
Irkutskenergo7 46.9 49.3 60.9 12.9 12.9 12.9 2016 2017 2018 2019 2020 2021 2022 2023 Actual
1. Including the energy system power output data according to the SO UPS press 3. http://www.gazenergocom.ru/ 1. Including the Bilibino NPP (part of the isolated energy system). release (http://so-ups.ru). 4. http://www.rushydro.ru/, http://www.rushydro.ru/press/news/105268.html 2. http://www.so-ups.ru/fileadmin/files/company/reports/disclosure/2018/ups_rep2017.pdf. 2. Installed capacity of the Novovoronezh NPP in 2017, including the Novovoro- 5. http://www.interrao.ru/activity/ 3. Russian Energy Ministry Order No.143 dated March 1, 2017 on Approval of the Development Pattern and Program for Unified Energy System of Russia in 2017-2023. nezh NPP-2 power unit No. 1 (put into commercial operation on February 27, 6. http://www.tplusgroup.ru/ 4. Annual growth in 2017-2023,%. 2017). 7. http://www.irkutskenergo.ru/ 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 50 — 51
DISTRIBUTION RESULTS 202.64 0.23 BLN KWH BLN KWH 102-6 (or 99.89% of total power output) (or 0.11%) supplied to the retail market supplied to WECM (generated by Bilibino NPP)
1 ROSENERGOATOM – WECM SUPPLIER POWER MARKET
SUPPLY
POWER MARKET
SUPPLY
COMPETITIVE CAPACITY AUCTION NEW CAPACITIES SUPPLY UNDER PURCHASE AND SALE REGULATED AGREEMENTS PURCHASE AND SALE AGREEMENTS AGREEMENTS A long-term competitive capacity Sales at the tariff of the supplier auction for the year of 2021 was In 2010, Rosenergoatom made Made between the supplier and the of last resort for supplies to DAY-AHEAD MARKET BALANCING MARKET DEREGULATED AGREEMENTS REGULATED AGREEMENTS held in 2017. 1,915 contracts with consumers purchaser as agreed by the parties. the population and equivalent in the wholesale market in relation consumer groups. Competitive selection of suppliers’ Competitive selection of suppliers’ Made between the supplier and the Sales at the tariff of the supplier All bidden capacity of NPPs was to 9 new NPP power units for the price quotes and purchasers with quotes with short-term generation purchaser as agreed by the parties. of last resort for supplies to fully contracted and will be sold amount of some 4.4 tln rubles Payments for the power capacity supply during the day following and consumption planning in the the population and equivalent in 2021 at market prices defined (without VAT) from the sales of supplied under regulated the selling day. online mode consumer groups. in line with the auction results capacity of new NPP power units agreements were made at the with consideration of the relevant between 2011 and 2040. tariffs (prices) set by the Russian In 2017, the weighted average Payments for the power supplied price of the capacity required for FAS for Rosenergoatom in 2017. annual price of NPP generated under regulated agreements ensuring safe operation of NPPs power sales in the day-ahead were made at the tariffs (prices) (approved by the Russian FAS). market was equal to 1,124.89 set by the Russian FAS for rubles per MWh. Rosenergoatom in 2017.
CONSUMPTION CONSUMPTION
CONSUMERS CONSUMERS
The actual revenue from electricity and capacity In 2017, the Company’s revenue from the sale of ROSENERGOATOM POWER SUPPLY STRUCTURE IN WECM IN 2013-2017, BLN KWH sales equaled 357,548.3 mln rubles in 2017. The heat totaled 1,315 bln rubles. actual revenue surpassed the planned level by 1,819.4 bln rubles (0.5%). A considerable growth The heat market is fully regulated, the sales 0.95 1.12 29.85 142.84 of the revenue versus 2016 was stipulated by are performed at the tariffs set by municipal 2013 174.76 Deregulated bilateral agreements capacity supply two new power units in 2017: authorities. Rosenergoatom has developed and 150.21 2014 0.90 1.29 30.43 182.83 Balancing market the Beloyarsk NPP No.4 and the Novovoronezh is implementing a program for centralization of 158.41 Regulated agreements 2015 1.36 37.01 196.78 NPP-2. For further details refer to the Generat- heat distribution activities aimed at future intro- Day-ahead market ing Capacities and Financial Stability sections. duction of the competitive heat market model. 2016 0.98 2.52 36.32 159.72 199.54 AtomTeploSbyt, having relevant competences 1.12 2.08 37.37 165.33 2017 205.9 Production and sales of heat to consumers and a respective branch network in the cities are a separate line of the Company's business. where NPPs are located, was selected as the NPPs produce heat in various carrier media: hot centralized heat distribution operator. water, vapor, condensate, and sell it to con- sumers in the heat market in the cities where nuclear plants are located.
1. Additional information may be found in the Company’s 2016 Annual Report, Sales Market and Product Consumers section, page 39. 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 52 — 53
103-1 103-2 2.2 GENERATING CAPACITIES. 103-3 EU1 EU2 DEVELOPING GENERATING POTENTIAL EU10
202.87 199.84 18.9 % 83.29 % 85.36 % BLN KWH BLN KWH — is the share of Rosenergoatom is the capacity factor of 2017 is the availability factor of 2017 Rosenergoatom traditionally set the balance of the FTS for NPPs in the total power generated (83.13% in 2016). (85.32% in 2016). a record in power generation in 2017 (minimum annual amount in the Russian Federation 2017 – 202.87 bln kWh, which is of power to be generated by (18.3% in 2016). 3.3% more than in 2016. Rosenergoatom). The planned level was surpassed by 3 bln kWh or 1.5%.
POWER GENERATION BY NPPS OF RUSSIA, BLN KWH CAPACITY FACTOR,% 202.9 195.2 196.4 85.95 202.9 80.2 81.3 81.2 80.9 77.9 81.6 83.13 83.3 180.5 195.2 196.4 77.2 79.5 85.95 177.3 80.2 81.3 81.2 80.9 77.9 81.6 83.13 83.3 170.1 172.1 172.2 180.5 77.2 79.5 163.3 177.3 158.3 162.3 170.1 172.1 172.2 158.3 162.3 163.3
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
MAIN FACTORS OF OUTPUT INCREASE IN 2017/2016: Russian NPPs set an absolute all-time record DIAGRAM OF RUSSIAN NPPS LOADING IN 2017 (AS OF JANUARY 1, 2018), MW in the Russian nuclear industry, having approached to the absolute output record FAS balance • Decreased aggregate duration of sched- FAS balance reached by nuclear power plants of the Soviet Actual uled repairs at NPP power units (optimized 25,963 Union in 1989 (212.58 bln kWh, including 26,000 Actual repairs duration in 2017 – 168.5 days if 26,000 25,963 25,521 nuclear plants of Ukraine, Lithuania and 25,521 compared to the FAS balance; Armenia). 24,104 24,104 • Power generation at the Beloyarsk NPP 23,178 23,306 power unit No.4 (commissioned on October 23,178 22,710 23,306 22,129 22,710 22,250 31, 2016); 22,250 22,129 21,417 21,542 21,000 21,196 21,417 21,542 • Power generation at the Novovoronezh 21,000 20,440 21,196 NPP-2 power unit No.1 (commissioned on 20,440 February 27, 2017);
• Slippage of in-vessel storage operations at the Kursk NPP power unit No.3. 16,000 16,000Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 4802. Technological Leadership and Innovations Rosenergoatom on ern Annual Results report o 20172017 49Rosenergoatom Rosenergoatom on ern Results54 o — 201755
BALAKOVO NPP
SARATOV OBLAST
According to the results of 2017 – Year of Ecology BALAKOVO in Russia – the Balakovo NPP was named as SARATOV 12 m 31,995.3 the Russian Environmental Protection Leader 1 m MLN KWH for the 10th time and was one of the winners of power generation in 2017 the traditional contest for the Nuclear Industry Organization of Environmental Excellence.
OPERATING PERFORMANCE OF BALAKOVO NPP IN 2017 OPERATING POWER UNITS AT BALAKOVO NPP
758.8 15.8 % 3,302 Power Unit Reactor Type Installed Capacity, Start-Up Date Number MW BLN KWH of the Company’s total power PERSONS were generated by the Balakovo output were produced by the employed NPP (from the power unit No.1 Balakovo NPP in 2017. 1 VVER-1000 1,000 28.12.1985 start-up date). 2 VVER-1000 1 ,000 08.10.1987
3 VVER-1000 1 ,000 24.12.1988 95.2% GENERATION VS 2016 1 2 3 4
103.6% RUSSIAN FAS BALANCE TARGET ACHIEVEMENT 4 VVER-1000 1, 000 11.04.1993
91.31% CAPACITY FACTOR Aggregate installed capacity, 4,000 MW 02.48 Technological Leadership and Innovations Rosenergoatom on ern Annual Results report o 20172017 Rosenergoatom49 Rosenergoatom on ern Results56 o — 201757
BELOYARSK NPP
SVERDLOVSK OBLAST
“The Beloyarsk NPP is important for the industry in terms of economic return and fast reactor mathematics. Here, in the Sverdlovsk land, we have a serious growth point – not only in technology, 10,201.9 but in creating the offers that will maintain our leadership in the global nuclear industry in the coming MLN KWH decades.”. power generation
ALEXEY LIKHACHEV, CEO of Rosatom State Corporation
EKATERINBURG m ZARECHNY m
OPERATING PERFORMANCE OF BELOYARSK NPP IN 2017 OPERATING POWER UNITS AT BELOYARSK NPP
187.7 5.0 % 2,518 Power Unit Reactor Type Installed Capacity, Start-Up Date Number MW BLN KWH of the Company’s total power PERSONS were generated by the Beloyarsk output were produced by the the employed. NPP (from the power unit No.1 Beloyarsk NPP. 3 BN-600 600 08.04.1980 start-up date). 4 BN-800 885 10.12.2015
Aggregate installed capacity, 1,485 121.5% GENERATION VS 2016 MW 3 4
107.7% RUSSIAN FAS BALANCE TARGET ACHIEVEMENT
78.42% CAPACITY FACTOR 02.48 Technological Leadership and Innovations Rosenergoatom on ern Annual Results report o 20172017 Rosenergoatom49 Rosenergoatom on ern Results58 o — 201759
BILIBINO NPP
CHUKOTKA AUTONOMOUS OKRUG
In 2009, the Bilibino NPP shared the first place in the BILIBINO m Best NPP in Safety Culture contest with the Balakovo 226.1 NPP. MLN KWH power generation
ANADYR 10 m
OPERATING PERFORMANCE OF BILIBINO NPP IN 2017 OPERATING POWER UNITS AT BILIBINO NPP
10.09 0.11 % 700 Power Unit Reactor Type Installed Capacity, Start-Up Date Number MW BLN KWH of the Company’s total power PERSONS were generated by the Bilibino output were produced by the the employed. NPP (from the power unit No.1 Bilibino NPP. 1 1 EGP-6 12 12.01.1974 start-up date). 2 2 EGP-6 12 30.12.1974 81.63% AVAILABILITY RATIO
3 3 EGP-6 12 22.12.1975 102.3% GENERATION VS 2016 1 2 3 4
110.8% RUSSIAN FAS BALANCE TARGET ACHIEVEMENT 4 4 EGP-6 12 27.12.1976
53.77% CAPACITY FACTOR Aggregate installed capacity, 48 MW 02.48 Technological Leadership and Innovations Rosenergoatom on ern Annual Results report o 20172017 Rosenergoatom49 Rosenergoatom on ern Results60 o — 201761
KALININ NPP
TVER OBLAST UDOMLYA m In 2017, the Kalinin NPP produced more power 32,672.4 than any other nuclear plant in Russia. MLN KWH power generation TVER 12 m
OPERATING PERFORMANCE OF KALININ NPP IN 2017 OPERATING POWER UNITS AT KALININ NPP
568.9 16.1 % 3,238 Power Unit Reactor Type Installed Capacity, Start-Up Date Number MW BLN KWH of the Company’s total power PERSONS were generated by the Kalinin NPP output were produced by the the employed. (from the power unit No.1 start-up Kalinin NPP. 1 VVER-1000 1 ,000 09.05.1984 date). 2 VVER-1000 1 ,000 11.12.1986
3 VVER-1000 1 ,000 16.12.2004 120.3% GENERATION VS 2016 1 2 3 4
100.4% RUSSIAN FAS BALANCE TARGET ACHIEVEMENT 4 VVER-1000 1, 000 24.11.2011
93.24% CAPACITY FACTOR Aggregate installed capacity, 4 ,000 MW 02.48 Technological Leadership and Innovations Rosenergoatom on ern Annual Results report o 20172017 Rosenergoatom49 Rosenergoatom on ern Results62 o — 201763
KOLA NPP
MURMANSK KOLA PENINSULA 170 m
The Kola NPP is the first nuclear power plant 10,152.4 of Russia built beyond the Arctic Circle. MLN KWH power generation POLYARNYE ZORI 11 m
OPERATING PERFORMANCE OF KOLA NPP IN 2017 OPERATING POWER UNITS AT KOLA NPP
409.3 5.0 % 2,101 Power Unit Reactor Type Installed Capacity, Start-Up Date Number MW BLN KWH of the Company’s total power PERSONS were generated by the Kola NPP output were produced by the the employed. (from the power unit No.1 start-up Kola NPP. 1 VVER-440 440 29.06.1973 date). 2 VVER-440 440 09.12.1974 83.84% AVAILABILITY RATIO
3 VVER-440 440 24.03.1981 103.2% GENERATION VS 2016 1 2 3 4
99.5% RUSSIAN FAS BALANCE TARGET ACHIEVEMENT 4 VVER-440 440 11.10.1984
65.85% CAPACITY FACTOR Aggregate installed capacity, 1,760 MW 02.48 Technological Leadership and Innovations Rosenergoatom on ern Annual Results report o 20172017 Rosenergoatom49 Rosenergoatom on ern Results64 o — 201765
KURSK NPP
KURSK OBLAST
The Kursk NPP was among Russia’s three most efficient nuclear plants in 2017. KURSK 28,631.8 KURCHATOV 0 m MLN KWH m power generation
OPERATING PERFORMANCE OF KURSK NPP IN 2017 OPERATING POWER UNITS AT KURSK NPP
887.7 14.1 % 4,158 Power Unit Reactor Type Installed Capacity, Start-Up Date Number MW BLN KWH of the Company’s total power PERSONS were generated by the Kursk NPP output were produced by the the employed. 1 2 3 4 (from the power unit No.1 start-up Kursk NPP. 1 RBMK-1000 1,000 12.12.1976 date). 2 RBMK-1000 1,000 28.01.1979
3 RBMK-1000 1,000 17.10.1983 104.2% GENERATION VS 2016
104.6% RUSSIAN FAS BALANCE TARGET ACHIEVEMENT 4 RBMK-1000 1,000 02.12.1985 *Power Units No. 1 and 2 at Kursk NPP- 2 with VVER-TOI type reactors under construction. 81.71% CAPACITY FACTOR Aggregate installed capacity, 4,000 MW 1* 2* 4802. Technological Leadership and Innovations Rosenergoatom on ern Annual Results report o 20172017 49Rosenergoatom Rosenergoatom on ern Results66 o — 201767
LENINGRAD NPP
LENINGRAD OBLAST
On December 7, 2017, first criticality started at the Leningrad NPP-2 power unit No.1 of the new 26,751.9 Generation III+. MLN KWH power generation SOSNOVY BOR SAINT PETERSBURG m 70 m
OPERATING PERFORMANCE OF LENINGRAD NPP IN 2017 OPERATING POWER UNITS AT LENINGRAD NPP
998.3 13.2 % 5,652 Power Unit Reactor Type Installed Capacity, Start-Up Date Number MW BLN KWH of the Company’s total power PERSONS were generated by the Leningrad output were produced by the the employed. 1 2 3 4 NPP (from the power unit No.1 Leningrad NPP. 1 RBMK-1000 1,000 21.12.1973 start-up date). 2 RBMK-1000 1,000 11.07.1975
3 RBMK-1000 1,000 07.12.1979 * VVER-1200 Power Unit No.1 at Lenin- 94.6% GENERATION VS 2016 grad NPP-2 (under construction). First criticality was started in 2017. 99.7% RUSSIAN FAS BALANCE TARGET ACHIEVEMENT 4 RBMK-1000 1,000 09.12.1981 ** VVER-1200 Power Unit No.2 at Len- ingrad NPP-2 (under construction). 76.35% CAPACITY FACTOR Aggregate installed capacity, 4,000 MW 1* 2** 02.48 Technological Leadership and Innovations Rosenergoatom on ern Annual Results report o 20172017 Rosenergoatom49 Rosenergoatom on ern Results68 o — 201769
NOVOVORONEZH NPP
VORONEZH m VORONEZH OBLAST NOVOVORONEZH At present, 3 power units are in operation: m No. 4 (VVER-440), No.5 (VVER-1000), and the 16,514.5 Novovoronezh NPP-2 power unit No.1 (VVER-1200 MLN KWH reactor put into commercial operation in February power generation (including 6,123.9 mln kWh were generated by Novovoronezh NPP-2 power unit No.1) 2017).
OPERATING PERFORMANCE OF NOVOVORONEZH NPP IN 2017 OPERATING POWER UNITS AT NOVOVORONEZH NPP
544.1 8.1 % 3,898 Power Unit Reactor Type Installed Capacity, Start-Up Date Number MW BLN KWH of the Company’s total power PERSONS were generated by the output were produced by the the employed. Novovoronezh NPP (from the Novovoronezh NPP. 4 VVER-440 417 28.12.1972 power unit No.1 start-up date). 5 VVER-1000 1,000 31.05.1980
6** VVER-1200 1,180.3 05.08.2016 120.3% GENERATION VS 2016 4 5 1** 2*
Aggregate installed capacity 2,597.3 RUSSIAN FAS BALANCE TARGET ACHIEVEMENT 100.4% in 2017, MW
93.24% CAPACITY FACTOR ** Novovoronezh NPP-2 power unit No.1 * VVER-1200 Power Unit at Novovoronezh NPP-2 is under constructuion. 02.48 Technological Leadership and Innovations Rosenergoatom on ern Annual Results report o 20172017 Rosenergoatom49 Rosenergoatom on ern Results70 o — 201771
ROSTOV NPP
ROSTOV OBLAST
First criticality was started at the new power unit No.4 (VVER-1000 23,177.7 reactor) on December 6, 2017. MLN KWH Since 2001, the power plant has become the four times winner of the power generation industry-level contest in the safety culture area, including the year of 2017 (together with the Beloyarsk NPP). VOLGODONSK ROSTOV-ON-DON 1 m 2 0 m
OPERATING PERFORMANCE OF ROSTOV NPP IN 2017 OPERATING POWER UNITS AT ROSTOV NPP
210.6 11.4 % 2,933 Power Unit Reactor Type Installed Capacity, Start-Up Date Number MW BLN KWH of the Company’s total power PERSONS were generated by the Rostov output were produced by the the employed. NPP (since the beginning Rostov NPP. 1 VVER-1000 1,000 30.03.2001 of operation). 2 VVER-1000 1,000 18.03.2010
3 VVER-1000 1,000 27.12.2014 96.6% GENERATION VS 2016 1 2 3 4*
Aggregate installed capacity, 3,000 RUSSIAN FAS BALANCE TARGET ACHIEVEMENT 101% MW
88.2% CAPACITY FACTOR * First criticality was started at the new power unit No.4 (VVER-1000 reactor) on December 6, 2017. SMOLENSK NPP 4802. Technological Leadership and Innovations Rosenergoatom on ern Annual Results report o 20172017 49Rosenergoatom Rosenergoatom on ern Results72 o — 201773
SMOLENSK NPP
SMOLENSK OBLAST
In 2017, the Smolensk NPP became the Company’s organization of environmental excellence by winning the nation-wide Health and Safety SMOLENSK 22,544.6 contest held under the auspices of the Russian Federation Ministry of 10 m MLN KWH Labor and Social Protection. power generation
DESNOGORSK m
OPERATING PERFORMANCE OF SMOLENSK NPP IN 2017 OPERATING POWER UNITS AT SMOLENSK NPP
639.2 11.1 % 3,622 Power Unit Reactor Type Installed Capacity, Start-Up Date Number MW BLN KWH of the Company’s total power PERSONS were generated by the Smolensk output were produced by the the employed. NPP (from the power unit No.1 Smolensk NPP. 1 RBMK-1000 1,000 09.12.1982 start-up date). 2 RBMK-1000 1,000 31.05.1985
3 RBMK-1000 1,000 17.01.1990 101.0% GENERATION VS 2016 1 2 3
Aggregate installed capacity, 3,000 RUSSIAN FAS BALANCE TARGET ACHIEVEMENT 97.7% MW
85.79% CAPACITY FACTOR 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 74 — 75
EXPANSION OF POWER PRODUCTION CAPABILITIES NEW POWER UNITS /CASE STUDY/ Innovative, most powerful power units as of today Rosenergoatom is a participant AT OPERATING NPPS CONSTRUCTION with water-cooled reactors VVER-120 pertain to the of the Total Cost Management cutting-edge Generation III+. These reactors use Nuclear Construction (TCM most advanced achievements and developments NC) system of Rosatom State NEW POWER UNITS MODERNIZATION AND SERVICE LIFE VVER POWER UNITS REPAIR CAMPAIGNS Pursuant to the Russian Energy Strategy until meeting all post-Fukushima requirements. VVER- Corporation. The TCM NC system COMMISSIONING EXTENSION OF POWER UNITS CAPACITY INCREASE OPTIMIZATION 2030, and the General Allocation Pattern for 1200 project is primarily specific with a unique fully covers all management Russian Energy Facilities until 2035, a strate- combination of active and passive safety systems processes with a focus on cost gic goal of Rosenergoatom is to provide for an making the power plant most tolerant to external management. increase in the share of nuclear power in the and internal impacts. In particular, VVER-1200 national energy balance while ensuring the reactor units use melt traps – devices designed to 2.1 121.1 3.5 2 necessary safety level, by means of building localize melting of the reactor core, a passive heat new power units of NPPs, inter alia. removal system (PHRS) based on vapor generators GW BLN KWH BLN KWH BLN KWH and aimed at ensuring long-term removal of heat Novovoronezh NPP-2 power 26 power units of Russian 11 VVER-1000 power units are is the additional power output In 2017, 8 power units1 of NPPs and a float- into the atmosphere from the reactor core in the unit No.1, Beloyarsk NPP NPPs are operating with operating with Nheat = 104% achieved through optimization power unit No.4 put into extended service life and of repair campaigns ing nuclear power plant (FNPP) were under absence of all sources of power supply, etc. commercial operation (11.7 aggregate installed capacity construction. bln kWh output) of 17,825 MW General contractors: Atomstroyexport, Atom- energoproekt, Concern Titan-2 (engineering procurement construction). General contrac- tors and contractors were selected in accord- ance with the requirements of the Unified Industry-Level Standard for Procurement of Rosatom State Corporation.2
RESULTS ACHIEVED IN CONSTRUCTION OF NEW NPP POWER UNITS IN 2017
“We have completed all No. NPP Name Power Unit Availability milestones of the last year in construction abroad and within 1. Novovoronezh NPP-2, power unit No.2, The power unit was supplied with auxiliary voltage. The sub-stage of equipment start-up and the Russian Federation. First VVER-1200 commissioning, testing and proofing started. Process systems are being prepared to testing with criticality of new units has been the unsealed reactor. started in the Russian Federation for the first time ever in the new 2. Leningrad NPP-2, power unit No.1, First criticality started at the unit Russian history.” VVER-1200
ALEXEY LIKHACHEV, 3. Leningrad NPP-2, power unit No.2, Reactor facility equipment was installed to proper locations using the open top technology. CEO of Rosatom State VVER-1200 Concrete embedding of the reactor building was completed at mark 26. The generator stator was Corporation installed in a proper location.
4. Rostov NPP, power unit No.4, First criticality started at the unit. VVER-1000
5. Baltic NPP, power unit No.1, Funds were earmarked to pay out interest on the loan, to support the capital construction directo- VVER-1200 rate, land lease and maintenance of ASE (former NIAEP) site.
6. Baltic NPP, power unit No.2, VVER-1200
7. Kursk NPP-2 power unit No.1, Soil was replaced and artificial infrastructure was created for the power unit facilities. Reinforcing VVER-TOI of the reactor building underframe started.
8. Kursk NPP-2 power unit No.2, Preparatory operations are underway. VVER-TOI
1. As of December 31, 2017. Two power units were started up in 2018 – the Rostov NPP power unit No.4 and the Leningrad NPP-2 power unit No.1. 2. For information related to the quality of equipment supplied to the Company’s NPPs see Section 4.6 – Quality Assurance. 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 76 — 77
Construction and commissioning of the nu- facility. In addition, each job at the NPP HEAT CAPACITY INCREASE SERVICE LIFE EXTENSION clear industry facilities, including NPP power construction site actually promotes creation AT POWER UNITS FOR EXISTING NPP POWER UNITS units, creates new jobs: a number of employ- of another 10-12 jobs in adjacent sectors ees are hired from among local inhabitants of economy (metallurgy, machine building, within a 160-km radius from the construction etc.). A permit of Rostekhnadzor was received in 2017 Service life extension (SLE) for existing NPP to increase the heat output to 104% of the nomi- power units is one of the Company’s priorities nal value in the pilot operation mode for the Ros- aimed to maintain generating capacities and tov NPP power unit No. 3, and in the commercial increase NPP safety. NUMBER OF ORGANIZATIONS AND EMPLOYEES INVOLVED IN CONSTRUCTION OF NPPS IN 2017 It is planned to maintain operation mode for the Kalinin NPP power units the numbers reached No.1 and No.2. in 2018. Number of Main Total Including: Organizations Employees So far, all 11 power units of VVER-100 type par- Involved Involved ticipating in the program for installed capacity Engineers and Technical Employees Blue collar workers increase have obtained permits for operation at 141 12,910 2010 10,900 104% of the nominal capacity level:
MODERNIZATION control and protection systems, personnel In pilot operation Rostov NPP power units No.2 and No.3, AND SERVICE LIFE EXTENSION training simulators, and communications equipment, among other things; Kalinin NPP power units No.3 and No.4; OF POWER UNITS In commercial operation Balakovo NPP power units Nos.1-4 • Replacement of exhausted NPP equipment Rostov NPP power unit No.1 NPPs upgrade management is based on the items with the modern ones in order to Kalinin NPP power units No.1 and No.2 industry-level regulatory documents, and imple- increase reliability and extend mean time mentation of long-term, medium-term, and an- between repairs; “The Rostekhnadzor license nual (current) operations planning procedures1. obtained by the Balakovo NPP • Improving safety and reliability of opera- for another 26-year period of The target-oriented work planned for 2017 in or- tion of systems and equipment involved in the power unit No. 2 operation in addition to its 30-year der to upgrade NPPs was fully completed and handling spent nuclear fuel and radioactive STAGES OF EXISTING NPP POWER UNITS UPGRADE design service life as a result made a considerable contribution to improving waste at existing NPPs; of large-scale efforts aimed safety, reliability and cost-effectiveness of fur- at streamlining the power unit ther operation of upgraded NPP power units. . • Implementation of systems for diagnostics equipment has become an and monitoring of operating condition of STAGE 1 A series of operations aimed at assessing the technical important achievement in the area capability, safety and feasibility of SLE. AMONG THE CORE AREAS OF UPGRADE heating, mechanical and electrical equipment of modernization.” Stage 1 beginning – 10 years before the power unit design EFFORTS ARE: of NPPs; service life expiry. ANDREY PETROV, • Support of NPP power unit safety in accord- • Implementation of modern energy efficient CEO, Rosenergoatom ance with the requirements of standards and processes and equipment; rules in the area of nuclear power use; STAGE RESULT: • Optimization of processes in order to im- 5 years before the power unit service life expiry, an • Compliance with the terms and conditions of prove energy efficiency of NPP power units investment project for SLE is developed and a decision is made to prepare the power unit for life extension. licenses for power unit operation; operation; 820,8 • Compliance with post-Fukushima safety • Implementation of automated NPP energy BLN KWH STAGE 2 Implementation of the program on the unit preparation requirements; efficiency management systems; of electricity produced by power for extended service life, including large-scale upgrade, units with the extended service and improvement of the safety level in line with the up- to-date global standards and IAEA recommendations • Execution of industry-level programs for en- • Renovation and modernization of worn out life (as of January 1, 2018) hancing NPP safety by means of upgrade of and obsolete equipment of auxiliary industri- main reactor turbine, electrical, measurement al facilities that ensure proper operation of and control equipment, process systems, NPPs.
1. Diagram of operating NPP power units upgrade management may be found in the Company’s 2015 Annual Report (page 75). 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 78 — 79
NPP GENERATING CAPACITY PRESERVATION DUE TO SERVICE LIFE EXTENSION, CAPACITY, MW
18,825 18,813 Novovoronezh NPP 16,242 17,825 3 3 17,777 Leningrad NPP 4 17,242 2 4 Kola NPP 2 2 Bilibino NPP 1 13,242 Kursk NPP Beloyarsk NPP 4 1 Smolensk NPP 11,802 Kalinin NPP 9,802 10,802 3 Balakovo NPP 3 1 8,362 5 3 6,762 4 2 4,762 3 2,738 3,750 1 2 2 4 2,274 1 3 1 2 417 834 1 3 4
’01 ’02 ’03 ’04 ’05 ’06-08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20-23
PLANS FOR SLE AT POWER UNITS EXPIRING BETWEEN 2018 AND 2023 NPP POWER UNITS A complex for plasma treatment of RAW (not including repeated SLE was put into commercial operation. at the Novovoronezh NPP DECOMMISSIONING In 2017, the operations were power unit No.4 and Kola Item Unit Reactor Type Commissioning Design Service Planned Expiry Target indicators of 2017 were achieved, carried out in compliance with Year Life Expiry, Year of Additional NPP power unit No.1 in 2018, the Programs of Measures for Service Life, Year and the Kola NPP power unit Rosenergoatom is decommissioning the No- particularly: Ensuring NPPs Decommissioning No.2 in 2019, and including vovoronezh NPP power units No.1 and No.2. approved by Rosatom State Balakovo NPP 3 VVER-1000 1988 2018 2048 decommissioning of the The Beloyarsk NPP power units No.1 and • LRW treated in the amount of 337.3 m3, Corporation, and the Federal Novovoronezh NPP power unit No.2, and the Novovoronezh NPP power unit 4 VVER-1000 1993 2023 2053 Target Program for Ensuring No.3, Leningrad NPP power No.3 will be finally shut down for preparation • SRW treated in the amount of 1,303 m3, Nuclear and Radiation Safety 3 RBMK-1000 1990 2019 2034 units No.1 and No.2, Bilibino Smolensk NPP to decommissioning. in 2016-2020 and until 2030 NPP power units Nos.1-4 and • Equipment and construction structures stipulating, inter alia, that the Kursk NPP power unit No.1 Decommissioning operations are carried disassembled (691 t), Beloyarsk NPP power units No.1 between 2017 and 2023) PLANS FOR SLE (UP TO 60 YEARS) AT POWER UNITS WITH FIRST EXTENDED SERVICE LIFE EXPIRING out by the Company’s specialized branch – and No.2, Bilibino NPP power BETWEEN 2017 AND 2019 Pilot and Demonstration Engineering Center. • Metal structures deactivated (421.5 t), units Nos.1-4 and first-generation Pursuant to the existing Rostekhnadzor NPP power units with VVER-440 license and in accordance with the project • 45 non-return protective containers were and RBMK-1000 reactors were Item Unit Reactor Type Commission- Design Service First Extended Planned Year of for decommissioning in 2017, the decommis- sent for long-term storage. prepared for decommissioning. ing Year Life Expiry, Year Service Life Second Extended sioning operations continued at the Novovor- Expiry, Year Service Life onezh NPP power units No.1 and No.2. Novovoronezh NPP 4 VVER-440 1972 2002 20171 2032 Reference experience was obtained in Kola NPP 1 VVER-440 1973 2003 2018 2033 disassembly and fragmentation of Circuit 1 VVER-440 1974 2004 2019 2034 equipment.
1. The power unit is under overhaul, the operation license with generation will be received in August 2018. 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 80 — 81
ROSATOM PRODUCTION SYSTEM indicators and compliance with the status of a RPS Enterprise. (RPS) IMPLEMENTATION PROGRAM FOR RPS DEVELOPMENT BY RPS TRAINING POWER ENGINEERING In order to fulfill the business indicators set be- DIVISION IN 2017-2019: fore Rosenergoatom by Rosatom State Corpo- It was planned to arrange for 12,867 pers./ STAGE 1 (2017) – ration, and gradually increase the efficiency of courses in this area of training in 2017. This Establishment activities and further development of the Power demand was supplied by 105% by efforts of the Engineering Division of the State Corporation, Division-level trainers, Rosatom Corporate Acad- STAGE 2 (2018) – a three-year Program for Rosatom Production emy, and by means of distance learning. 25 Standardization System (hereinafter – RPS) Development by persons passed certification as internal trainers Power Engineering Division in 2017-2019 was at the Corporate Academy. At present, there are STAGE 3 (2019) – compiled. 56 experts who perform training in RPS at the Streamlining Division. PROGRAM FOR RPS DEVELOPMENT BY POWER ENGINEERING DIVISION IMPROVEMENT PROPOSALS IN 2017-2019: Think Tanks started their activities at all NPPs • Management involvement on the level of the of Rosenergoatom in 2017. In accordance with Division and its enterprises into the process the results of 2017, the Think Tank system of constant streamlining. registered 3,596 implemented improvement FINAL SHUT-DOWN OF POWER equipment maintenance is based on scheduled proposals. UNITS FOR DECOMMISSIONING (preventive) maintenance and on-condition • Methodological support of the RPS deploy- maintenance. ment in the Division. DIVISION-LEVEL CONTEST OF RPS PROJECTS 168.5 AND IMPROVEMENT PROPOSALS In 2017, three power units shut down for As part of the maintenance operations cam- days was the total optimization • RPS projects implementation in the organiza- decommissioning were in operation without paign implementation in 2017, the annual of maintenance duration in 2017. tions of the Division. The first contest for the best RPS projects and generation: the Beloyarsk NPP power units No.1 schedule of Russian NPPs maintenance for improvement proposals was held in 2017 among and No.2, and the Novovoronezh NPP power unit 2018 was developed and approved. With a view • Replication of best practices and exchange the Division employees. More than 90 RPS pro- No.3. Two power units – No.1 of the Leningrad to improve the quality of long-term planning of in accumulated experience during the RPS jects and over 150 improvement proposals were NPP and No.2 of the Bilibino NPP – were pre- NPP maintenance and repair, Rosenergoatom deployment. contesting. In accordance with the assessment pared for final shut-down scheduled for 2018. developed a ten-year schedule of Russian NPP results, 16 best RPS projects and 26 proposals units maintenance for 2019-2028. The Policy for Organization of Rosatom Produc- were selected. tion System in Power Engineering Division was MAINTENANCE CAMPAIGN Optimization of maintenance duration by approved with a view to organize a systematic PRIORITIZED RPS PROJECTS RESULTS 168.5 days in total became possible due to the approach to the RPS development. Implemen- following: tation of the personal RPS project of Rosen- In 2017, the Company’s top managers initiated ergoatom CEO – Power Engineering Division 35 prioritized RPS projects aimed at achieving The goal of the Company’s maintenance • Targeted search and removal of downtimes Transformation into RPS Division – continued the target performance indicators of Rosen- operations strategy is to support the working during scheduled repairs as a part of Rosa- in 2017. ergoatom. 19 projects were completed, imple- capacity of NPP systems and equipment in tom production system development mentation of 16 RPS projects will be continued order to ensure safe, reliable and cost-effective All branches and subsidiaries of Rosener- in 2018. In 2017, their implementation resulted operation of nuclear plants in accordance with • Conservative approach to preparation of goatom included into the Division-level RPS in the total reduction of lead time by 714 days, the standards and rules applicable to the nucle- power unit repair schedules, allowing for time deployment program (over 60 production sites) additional output of 3,651.75 mln kWh, and the ar power industry. margin to remove possible defects; confirmed achievement of the RPS deployment decrease of inventory turnover to 39.9 days.
Pursuant to the concept endorsed by the opera- • Absence of defects that may affect the dura- tor and the IAEA technical documents, NPP tion of the critical path of repairs.
/CASE STUDY/ /CASE STUDY/ In 2017, Rosenergoatom prioritized the strategy of transfer from the concept of delayed disassembly of MAINTENANCE CAMPAIGN power units to immediate disassembly. At present, immediate disassembly is the most effective and the The innovative solutions introduced during the scheduled maintenance at the Balakovo NPP units in 2017 cheapest option if compared to delayed disassembly – the cost is 20% lower. This option is approximately enabled reduction of the total duration by 22.9 days. This exceeded 500 mln rubles of additional profit in money 4 times shorter (some 15 years) instead of 60-70 years in case of delayed disassembly. Thus, the concept terms. Maintenance and upgrade operations optimizing solutions were introduced as part of the Rosatom implementation will not only cut down the cost of NPP units decommissioning operations, but to avoid Production System. Only the fourth power unit was subject to a record high number of upgrade operations – shifting the burden of decommissioning expenses on future generations. almost equipment was renewed in the turbine island, improvements were made in the reactor building as well. 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 82 — 83
5S SYSTEM ENERGY SAVING implemented in the scope scheduled for 2017 – 499.4 AND ENERGY EFFICIENCY 1.23 bln rubles. As part of the program execu- In 2017, the Procedural Recommendations for MLN RUBLES tion, work was continued to upgrade thermal Organization of Workplaces in Compliance with Savings from Implemented RPS ENHANCEMENT and mechanical equipment, implement energy 5S System (system for jobs organization and Projects and Improvement Proposals resource accounting systems, improve lighting rationalization) in Rosenergoatom was updated, in 2017 systems using LED lights, reduce heat losses 302-1, 302-2, 302-4 the third audit was held at the headquarters in heat supply systems, and replace obsolete by NPP personnel in accordance with the 5S thermal insulation. System. Subsidiary companies continued work 480.2 19.2 In 2017, Rosenergoatom successfully achieved to implement the 5S System in 2017. the target cost saving indicator due to the Work continued to upgrade the high pres-
Implemented RPS projects saving of energy resources in the conditions sure cylinder, high pressure and intermediate COST OPTIMIZATION PROGRAM (COP) comparable to those of the reference year of pressure cylinder of turbines, replace circu- Improvement Proposals 2015. This indicator reached 2.92% in 2017. In lation pumps, clean turbine condensers of Rosatom divisions, including the Power Engi- the comparable conditions of power and water sediments, modernize automatic regulation neering Division, launched the Cost Optimization allocation averaged 2.53% (279,997 thousand and control devices at several NPPs with a program (COP) in 2016. The Program is aimed at kWh) and 1.34% (86,060 thousand m3) respec- view to boost the operational safety of main cutting down the costs without compromising tively, with heat consumption increased by equipment, the energy efficiency of operating safety and operational needs: business trips, 2.42% (30.11 thousand Gcal) in 2017. power units due to the increase of the turbines transportation, rental and others. Considerable efficiency factor, decrease of the number and success was attained in centralized divisional Energy resource saving became possible owing duration of repairs. purchases in the reporting period. to the actions taken to reduce consumption, energy resource losses, increase energy efficien- Work was performed to substantiate the cy of production processes, and boost power increase in VVER-1000 power units capacity to output. 107% of the nominal value in order to step up the power output in 2017. Auxiliary power consumption totaled 5.52% in 2017 (6.48% in 2016). According to the results of surveillance audit, 60 compliance of the Company’s energy manage- MLN RUBLES The consolidated energy saving and energy effi- ment system with the ISO 50001:2011 interna- The Division cut down the ciency improvement program for 2017-2021 was tional standard was confirmed. operational expenses in the IT sector by 60 mln rubles in total in 2017. ENERGY RESOURCE CONSUMPTION IN 2017
Item In Kind Thousand Rubles
by 80 % Nuclear power (used as a fuel), FA, pcs 4,827 1 mobile communications tariffs 501 24,526 were reduced. Automotive gasoline, t The number of direct phone lines Diesel fuel, t 7,863 322,720 and communication channels was optimized. Fuel oil, t 14,711 185,948
Gas (natural), m3 2,168,371 21,236 26 Oil, carbon, peat, shale oil Not purchased MLN RUBLES were saved in purchases of computing hardware.
/CASE STUDY/ Rosenergoatom joined the nation-wide #BrighterTogether action to support a careful attitude to energy resources. The declaration states the necessity of a careful attitude energy resources, nature, development of modern energy efficiency technologies allowing for improvement of competitive ability of the national economy.
1. The information constitutes commercial secret. 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 84 — 85
103-1 103-2 2.3 ENSURING SAFETY 103-3 102-11 48 OF RUSSIAN NPPS Rosenergoatom on ern Results o 2017 49 Rosenergoatom on ern Results o 2017
e on s ale e el 0 SAFETY IS AN UTMOST PRIORITY OF ROSENERGOATOM AS THE OPERATING COMPANY. INCIDENTS AT OPERATING NPP POWER UNITS, INJURIES, UNPLANNED AUTOMATIC SCRAMS, FIRES (IGNITIONS) e el 1 2017 37 18 15+3* 1* Rosenergoatom ensured failsafe THE COMPANY’S BRANCHES HAVE BEEN DEMONSTRATING FAILSAFE AND SECURE e el 2 an a o e and reliable operation of Russian 2016 66 18+10* 26+10* 2 NPP Incidents Unplanned Automatic Scrams Critical Injuries (Number) Fires/Ignitions (Number) OPERATION IN EVERY ASPECT OF ACTIVITY DURING THE WHOLE LIFE CYCLE. NPPs in 2017. 2015 35 6+1* 25 3 2014 201643 18+1* 2017 20+2* 2016 20172* 2016 2017 2016 2017 2013 50 11 25+13* 1 Bal 3 3 0 0 0 0 0 0 Rosenergoatom performs its activities related The Company participates in international co- 2012 44 12 30 2 1+101 3 1+31 0 0 0 0 / 0 0 to providing consumers with power and heat operation under the auspices of the IAEA in line 2011Bel 46 14 26+4* 2 2010 43 7+5* 25+4* 2 produced by the Company’s nuclear pow- with the Unified Industry-Specific Interaction Bil 2 0 2 0 0 0 0 0 er plants with guaranteed safety as its top Procedure for Rosatom State Corporation and 2009 29 5 23 1 14 5 0 0 3 0 1 / 0 0 business priority. The Company consistently Its Organizations with IAEA. Kln and purposefully discharges the obligations Kol 5 3 3 1 0 2 0 0 arising from the Convention on Nuclear Safety, 3 3 1 0 10+7*0 0 0 0 accounts for the recommendations of the RESULTS OF 2017 Kur 16 15 International Atomic Energy Agency (IAEA) 14 14 Len 13 5 8 1 2 13 0 0 0 0 / 1 safety regulations and guidelines, as well as The operating NPPs safety status in 2017 had 1 1 1 1 11 regulations and principles of the IAEA Interna- positive trends if compared to 2016. 416-2 Nvo 11 2+10 1+4 10 4 10 2 0 0 0 0 10 9 9 9 8 8 tional Nuclear Safety Group (INSAG) formulat- 3 7 4 7 0 0 7 0 0 0 0 Ros 9 6 6 6 ed in the Basic Safety Principles for Nuclear 5 5 3+2* 6 8 4 34 2 4 0 4 0 0 0 0 Power48 Plants, and the Safety Culture. Rosenergoatom on ern Results o 2017 Smo494 3 3 Rosene3 rgoatom on ern Results o 2017 2 2 2 2 2 11 1 1 1 1 1 1 Total0 46+200 33+4 0 10+7 0 3+2 3 2 1 / 0 0 / 1 2011 2012 2013 2014 2015 2016 2017 e on s ale e el 0 THERE WERE NO e el 1 UNPLANNED AUTOMATIC5 23 SCRAMS PER 7,000 HOURS1 2009 29 e el 2 an a o e Incidents accompanied by radiation consequences Malfunctions of safety systems elements that could 2010 43 7+51 25+41 2 0.61 s orl e (Regulation NP-004-08), nuclear materials and lead to safety functions loss 14 26+41 2 20110.56 46 s n Russ a radioactive substances loss 0.49 0.5 2012 440.4612 30 0.45 20.44 Events classified as INES Level 1 2013 50 11 25+131 1 0.38 Injuries and incidents at the registered hazardous 1 0.29 1 1 0.31 production facilities of the Company 2014 43 18+1 20+2 0.26 2 6+10.21 25 3 2015 35 0.15 0.14 2016 66 18+101 26+101 2 2011 2012 2013 1 2014 20151 2016 2017 2017 37 18 15+3 1
THERE WERE CHANGES IN UNPLANNED AUTOMATIC SCRAMS BETWEEN 2011 AND 2017
3 unplanned automatic reactor scrams 10+72 36 deviations in NPP operations classified 16 critical. 15 as INES Level 0 / Below Scale 14 14 13 13 +2 at the Novovoronezh NPP-2 power unit Among them: 11 11 10 10 No.1 low power testing stage 33 at power units in commercial operation, 10 9 9 9 8 8 3 at the Novovoronezh NPP-2 power unit No.1 at 7 7 7 2 accidents (Kola NPP) the low power testing stage. 9 6 6 6 5 5 3+22 6 4 4 4 4 4 3 3 3 1 ignition (Leningrad NPP) There were 66 deviations in 2016 2 2 2 2 2 1 1 1 1 0 0 0 0 1 event INES Level 1 at the Novovoronezh NPP-2 power unit No.1 2011 2012 2013 2014 2015 2016 2017
1. Power units under low power testing. 2. Events associated with low power testing of power units at the stage of their commissioning. s orl e s n Russ a 0.61 0.56 0.49 0.5 0.46 0.45 0.44 0.38 0.31 0.29 0.26 0.2 0.15 0.14
2011 2012 2013 2014 2015 2016 2017 48 Rosenergoatom on ern Results o 2017 49 Rosenergoatom on ern Results o 2017 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 86 — 87
e on s ale CHANGES IN INES INCIDENTS AT NPPS e el 0 SAFETY CULTURE (SC) DEVELOPMENT IN 2017 – COMMITMENT TO SAFETY AMONG NPP MANAGERS AND PERSONNEL e el 1 5 23 1 2009 29 e el 2 an a o e 2010 43 7+51 25+41 2 Up and running 2011 46 14 26+41 2 DIVISION-LEVEL PROGRAM FOR SAFETY CULTURE DEVELOPMENT 2012 44 12 30 2 2013 50 11 25+131 1 1 1 1 Shaping the management Developing the management Promoting individual commitment to safety among employees through 2014 43 18+1 20+2 2 structure for SC development Leadership in the safety area remunerative incentives and moral encouragement 2015 35 6+11 25 3 2016 66 18+101 26+101 2 2017 37 18 15+31 11
CONTROL OF RUSSIAN NPPS ed and expedient in several functional areas at certain NPPs, and on the corporate level. Meanwhile, the average (per 7,000 SAFETY STATUS 10+72 16 hours of operation) number of • The programs are up and running STIMULATING : 15 • Rosenergoatom SC Council 14 14 critical reactor scrams (WANO headed by CEO for training in leadership among • No cover-ups of operational mistakes; 13 13 indicator) for Russian NPPs • SC Councils at all NPPs the managers of all levels • Use of the principle of fair attitude to the employees who allowed for Rosenergoatom takes a series of internal and INCREASING SAFETY11 AND and reported faulty (wrong) actions; 11 10 10 remains considerably lower than external10 measures confirming9 the compliance9 9 • Motivation of employees for demonstration of intolerance to the facts of 8 STABILITY OF NPPS8 AGAINST that for other nuclear power plants with Russian and international7 requirements7 for 7 cover-up of faulty (wrong) actions admitted by other employees, etc. 9 6 6 6 worldwide. nuclear power plant safety. 5 EXTREME EXTERNAL5 IMPACTS 3+22 6 4 4 4 4 4 3 3 3 2 2 2 2 2 The OSART mission1 was held at the Leningrad 1 In connection1 with the1 events occurred in 0 0 0 0 NPP in November 2017. The mission decided that Japan which caused the accident at the 2011 2012 2013 2014 2015 2016 2017 the operating condition at the moment was in full Fukushima NPP, Rosenergoatom has analyzed compliance with the IEAE safety requirements possible accident development scenarios at FIRE SAFETY • Implementing and supervising preparations (the mission did not make any recommendations, Russian nuclear power plants against extreme for the spring-summer and autumn-winter fire The level of performance of s orl e fire-fighting activities associated it gave 7 proposals and 4 good practice exam- external impacts, determining activities aimed s n Russ a In 2017, Rosenergoatom paid much effort hazard periods at all NPPs; ples).0.61 Preparations are underway for the corporate at mitigating consequences and reducing the to ensure and increase fire safety at nuclear with rectification of points of OSART0.56 mission in Rosenergoatom in 2018 and impact on population and environment in case plants, namely: • Developing, manufacturing and deploying criticisms indicated by the state 0.49 0.5 the OSART mission0.46 at the Kalinin NPP in 2019. of severe0.45 off-design0.44 accident. All activities innovative types of special-purpose fire-fight- fire supervision authority is 100% 0.38 scheduled for 2017 were0.31 completed. • Implementing the Action Plan for Improving ing equipment for extinguishing of fires at 0.29 0.26 As part of cooperation0.2 with the IAEA, 33 inter- Fire Safety at Operating NPPs in 2013-2017; NPP facilities (including a fire vehicle with a national events were held at the Company’s Each year0.15 the Company updates its activities0.14 compression technique of fire fighting and a Headquarters and branches, and Rosenergoa- according to the results achieved in the previ- • Checking up and assessing the fire safety mobile robotized unit for fire fighting in the tom employees participated in 23 IAEA events ous period. status of NPPs during comprehensive and environment of hazardous fire factors, radia- 2011 2012 2013 2014 2015 2016 2017 abroad in 2017. ad-hoc inspections of the operating NPPs (9 tion and chemical accidents); inspections), and during NPP units construc- NPPs are internally inspected according to the SAFETY CULTURE2 tion (14 inspections); • Deploying a full-scale training simulator at the annual action plan, NPP inspection schedule, Novovoronezh NPP for extinguishing fires at management instructions of Rosenergoatom The safety culture is a set of characteristics • Developing the measures to increase efficien- electric plants with regulated voltage of up to and Rosatom State Corporation. and peculiarities of the organizations’ activities “… The [Leningrad] plant is very cy of fire safety control at the NPPs under 10 kV; and behavior of individual persons, which stip- well prepared for the mission. construction; 42 scheduled process audits and safety inspec- ulates that NPP safety as a top priority is in the It has performed a deep self- • Developing a plan of organizational and tions were held in 2017 at the existing NPPs focus required by its importance (NP-001-15). assessment in the areas where • Enacting the Program for Improving Fire technical measures for arrangement and and those under construction by the Company’s there are deviations from the Safety and Upgrading Fire Fighting Systems operation of in-house fire safety at the FNPP IAEA international standards, commissions. In accordance with the inspec- Safety culture is a cornerstone principle of at NPPs in 2018-2022; in Pevek, Chukotka Autonomous Okrug; developed a good mitigation plan, tion results, improvement measures have been NPP safety management. In accordance with and many of such measures were developed, their progress is under control and the results of the cutoff safety culture day held demonstrated during the mission.” • Target Program for Equipment and Re-Equip- • Holding corporate competitions among volun- supervision. in 2017, the Beloyarsk and Rostov NPPs were ment of Facility-Based Structural Units of teer fire-fighting units at operational NPPs on named as the most successful power plants in VESSELINA RANGELOVA, State Fire Service for NPPs Protection in the basis of the Fire Department No.4 at the The operating NPPs safety condition was as- terms of the safety culture development in the Leading Nuclear Safety Expert, 2016-2018 was completed by 90% (as of Novovoronezh NPP. sessed as suitable, with corrective actions need- reporting period. IAEA January 1, 2018); In order to improve fire protection of NPPs and • Ensuring the implementation of the Plan for readiness of NPP facility-based fire-fighting Enhancing Fire Safety for Rosenergoatom units for fire extinguishing, 12 units of modern 1. Events associated with low power testing of power units at the stage of their commissioning NPPs under Construction and Improving fire equipment of general and special purpose 2. Further details – in the Company’s 2016 Report, page 90. Efficiency of Control over Fire Safety; were supplied in 2017. 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 88 — 89
INDUSTRIAL SAFETY to plan, ensure preparedness, and conduct PHYSICAL PROTECTION activities aimed at protecting personnel The Company’s emergency and nuclear power plant premises against The government-set objectives of first criticali- prevention and elimination 416-2 system currently in place emergency situations, both natural and man- ty at the Leningrad NPP-2 power unit No. 1 and meets all requirements set made. the Rostov NPP power unit No.4, particularly for the participants of the Rosenergoatom pays great attention to in- related to the power plant engineering and Unified State System for dustrial safety of NPP Hazardous Production Among the measure aimed at improving the technical means complex creation. The said Emergency Prevention and Facilities (HPFs). NPP safety (in case of simultaneous acci- power units were placed under protection of Response, and corresponds dents at several power units of a monoblock the National Guard, which allowed to obtain to the best global practice. As of the end of 2017, 75 HPFs were NPP, inter alia) and taken in 2017 after anal- Rostekhnadzor licenses for their operation. registered with the departmental (indus- ysis of the Fukushima-Daiichi NPP accident, try-specific) section of the state register of Rosenergoatom implemented the measures Streamlining of the physical protection sys- hazardous production facilities according targeted at raising the efficiency of emergen- tems at NPPs was in line with the Action Plans to the Federal Law on Industrial Safety of cy planning and response. for Ensuring Physical Protection, Accounting Hazardous Production Facilities1. All these and Control of Nuclear Materials during NPPs HPFs were insured pursuant to the Federal A special focus of emergency preparedness Operation in 2017. There were no unauthorized Law on Compulsory Civil Liability Insurance is placed on regular personnel training at actions related to the Company’s branches – for Owners of a Hazardous Facility for Caus- power plants related to natural and man-in- nuclear power plants, including trespassing ing Harm as a Result of an Accident at the duced accidents response. into restricted areas. No cases were reviewed Hazardous Facility. for administrative sanctions, license suspen- Comprehensive emergency response drill sion and/or termination by Rostekhnadzor in- Industrial Safety Declarations were prepared (CERD-2017) aimed at coordination and spectorates (in relation to physical protection). pursuant to regulatory requirements for interaction among forces and facilities hazardous production facilities of 1st and involved in emergency response at NPPs 2nd hazard classes in compliance. Rosener- were held at the Rostov NPP in accordance COMPREHENSIVE EMERGENCY RESPONSE DRILL OF NPPER TEAM (ROSTOV NPP, SEPTEMBER 20-22, 2017) goatom employees involved in operation of with the most realistic scenario of a real No industrial accidents at PARTICIPANT: HPFs undergo training and certification on accident. Among the participants of CERD- hazardous production facilities the matters of industrial safety in the ap- 2017 were: the nuclear power plant emer- operated by the Company were registered in 2017. propriate committees of Rostekhnadzor, the gency response (NPPER) team, emergency Russian Russian Company’s Headquarters, and NPPs. center of Rosatom State Corporation, local > 1100 85 15 SCC IAC Defense Emercom authorities, Russian Emercom, and Defense persons units of specialized observers Ministry Rosenergoatom has the industrial safety Ministry. The drill fully involved specialized machinery and management system in place in order to mobile emergency response machinery and equipment prevent industrial accidents and incidents, equipment. as well as in order to plan and implement priority and long-term measures aimed at In 2017, the NPPER team and technical increasing industrial safety of hazardous support centers (TSC) participated in 9 production facilities and at providing due emergency response drills and trainings training for the Company’s personnel making held at Rosenergoatom NPPs to practice them ready to containment and elimination the actions in the environment similar to the of consequences of accidents and incidents Fukushima-Daiichi power plant accident. In at HPFs. the same period, the Regional Crisis Center operated by the WANO Moscow Center, the Company’s Crisis Center, and TSCs were in- EMERGENCY PREPAREDNESS volved in international emergency trainings AND RESPONSE2 at foreign NPPs: Paks (Hungary), Dukovany (Czech Republic), Tianwan (China), Ko- zloduy (Bulgaria), Bushehr (Iran), as well as Rosenergoatom has created and currently the Armenian NPP (Armenia), Rovno NPP operates the Emergency Prevention and Re- (Ukraine), and the Belarus NPP (Belarus) sponse System (EPRS). The system is used under construction.
1. No.116-FZ dated July 21, 1997. 2. Details of emergency response at Russian NPPs are given in the Company’s 2014 Annual Report (page 89). 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 90 — 91
2.4 INNOVATIONS. SCI-TECH POLICY. KNOWLEDGE MANAGEMENT SYSTEM
IN ORDER TO MULTIPLY TECHNOLOGICAL LEADERSHIP AND IMPROVE COMPETITIVE ABILITY POWER UNITS WITH FAST continued in 2017 with introduction of new structural materials of fuel element jackets, The POWER Magazine, the oldest IN THE INTERNAL AND EXTERNAL MARKETS WITH METICULOUS MAINTENANCE OF A HIGH NEUTRON REACTORS, as well as implementation of a series of magazine in the US, named the SAFETY LEVEL, ROSENERGOATOM PRIORITIZES ITS INNOVATION MANAGEMENT ACTIVITIES, AND CLOSED FUEL CYCLE measures for gradual transition of BN-800 to innovative power unit No.1 of the Novovoronezh NPP-2 as one the KNOWLEDGE PRESERVATION AND TRANSFER. full loading with MOX fuel. ”We believe that the future of the global nuclear world’s best three power units energy is inextricably linked to closure of the The technology of sodium-cooled fast reac- The Novovoronezh NPP was nuclear fuel cycle, with ‘fast’ reactor technologies tors is advancing through development of a awarded the 2017 Top Plant being an integral part of it. Closure of the fuel INNOVATIVE ACTIVITY Award by this most influential and cycle will enable the peaceful atom to become high-power BN-type main power unit. A joint reputable international periodical an environmentally safe energy source nearly meeting of the Sci-Tech Councils No.1 and specializing in the energy industry. inexhaustible for many millennia. What’s important No.8 of Rosatom State Corporation held on TECHNOLOGICAL LEADERSHIP is that the technology is not a remote prospect: July 1, 2017 considered the results of feasi- with the available science and technology bility improvement for the engineering design development level we have every reason to of the BN-1200 reactor unit and the materials suppose that an integrated product in this area of the BN-1200 reactor power unit. In general, will be offered to the market in the coming 10-15 the Sci-Tech Council approved the results of IMPORTANT EVENTS BEYOND R&D. KNOWLEDGE PRESERVATION years. On the scale of the nuclear industry, it is a the engineering design optimization for the REPORTING PERIOD: INTELLECTUAL PROPERTY AND TRANSFER technology of tomorrow”. reactor unit, turbine unit, and materials of the BN-1200M reactor unit project. In accord- In March 2018, an innovative ALEXEY LIKHACHEV1, power unit No.1 pertaining to CEO of Rosatom State Corporation ance with the Sci-Tech Council recommenda- SAFETY tions, the Terms of Reference were compiled Generation III+ with the VVER- 1200 reactor at the Leningrad A comprehensive R&D Program was enacted for the BN-1200M reactor unit. NPP-2 was connected to the grid. in 2017 by Rosenergoatom for substantiation The generator was synchronized st of creating the 1 stage of the two-com- The Beloyarsk NPP site laid the basis for with the grid, and the power unit ponent nuclear energy system of a closed core infrastructure allowing to start con- started supplying the first kilowatt- loop fuel cycle on the basis of heat reactors struction of the power unit No.5, competent hours of power to the unified NEW GENERATION III+ consumer appeal while maintaining the appro- (VVER) and fast sodium reactors (BN) in construction and assembly organizations energy system of Russia. POWER UNITS WITH VVER TYPE priate level of safety. 2017-2024. and technicians are available there. In addition, core documents were prepared for (VVER-1200, VVER-TOI) REACTORS The evolutionary NPP-2006 project with the At present, basic technologies of the closed the launch of this project (investment plan, VVER-1200 reactor (Generation III+) takes into nuclear fuel cycle (CNFC) are tested during declaration of intent, investment rationale, Among the key factors of further development account the experience gained in construction operation of the Beloyarsk NPP energy com- environmental impact assessment), public of the nuclear industry in Russia and worldwide and operation of serial VVER-1000 reactors. ”VVER-1200 is a breakthrough plex (power units with BN-600 and BN-800 re- hearings were held to consider the power are primarily safety, absence of limits on raw The NPP-2006 project has been developed power unit combining all innovative actor units) in combination with the existing unit location. material resources, solution of issues related to in two scenarios (designed by Atomenergo- solutions demanded in Russia and fuel production facilities, spent nuclear fuel In the reporting year, under nuclear fuel cycle waste, and competitive advan- proekt, Moscow, and ATOMPROEKT, Saint-Pe- abroad. In fact, right in front of our reprocessing facilities, spent nuclear fuel and the auspices of the IAEA, tage among other types of power generation. tersburg) and is targeted at large-scale con- eyes the technological generation radioactive waste treatment facilities, as well Ekaterinburg hosted a struction of nuclear plants in the short term in is currently evolving in the nuclear as those being created. specialized international The water-cooled pressurized reactor (VVER) Russia and abroad. industry. And this is obviously an conference devoted to fast neutron reactors – International technology will remain the practical basis of exciting moment for the Russian On October 31, 2016, the Beloyarsk NPP pow- Conference on Fast Reactors the nuclear industry in the decades to come Rosenergoatom constructs new power units nuclear experts.” er unit No.4 with BN-800 fast neutron reactor and Related Fuel Cycles: Next not only in Russia, but worldwide. with the VVER-1200 reactor at the Novovor- with the installed capacity of 885 MW was ALEXEY LIKHACHEV, Generation Nuclear Systems onezh NPP-2 and the Leningrad NPP-2 (the put into commercial operation. CEO of Rosatom State for Sustainable Development Its further development and improvement are Novovoronezh NPP-2 power unit No.1 was Corporation (FR17). aimed at reducing capital and operational launched in 2016, and the Leningrad NPP-2 Research on extending the fuel campaign expenses, streamlining fuel use, strengthening power unit No.1 – in 2017). of the BN-600 and BN-800 power units
1. Source: https://rosatom.ru/journalist/news/glava-rosatoma-a-likhachyev-na-ministerskoy-konferentsii-magate-nazval-glavnye-prioritety-razvitiya-/ 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 92 — 93
INNOVATION PROJECTS
NEW GENERATION III+ POWER UNITS WITH VVER TYPE (VVER-1200, VVER-TOI) REACTORS by 30‑40 % HEADCOUNT DECREASED
20 % 60 CAPACITY INCREASED YEARS Reactor unit capacity Design life of main increased by 20% equipment grew versus the previous twice generation (VVER- 1000)
The evolutionary NPP-2006 project with the advanced NPP unit with the VVER-TOI reactor VVER-1200 reactor (Generation III+) takes into assuming further optimization of design solu- account the experience gained in construction tions at the Novovoronezh NPP-2 and Leningrad Innovative reactors VVER-1200 and operation of serial VVER-1000 reactors. NPP-2 units. At present, detailed engineering and VVER-TOI pertaining to The NPP-2006 project has been developed in and construction operations are carried out at Generation III+. KEY RESULTS OF 2017 two scenarios (designed by Atomenergoproekt, the Kursk NPP-2 site, which lays the basis for Moscow, and ATOMPROEKT, Saint-Petersburg) the new VVER-TOI project implementation. and is targeted at large-scale construction of Kursk NPP-2 Novovoronezh Novovoronezh NPP- Leningrad NPP-2 Leningrad NPP-2 The Leningrad nuclear plants in the short term in Russia and If compared to conventional power units of the power unit No. 1, NPP-2 power unit 2 power unit No. 2, power unit No. 1, power unit No. 2, NPP-2 abroad. same type, Generation III+ NPP projects feature VVER-TOI: No. 2, VVER-1200:) VVER-1200: VVER-1200: VVER-1200: several advantages that considerably improve Soil replacement and The stage of pilot oper- Auxiliary power was sup- Cold and hot trials of The reactor facili- Power units No. 3 Rosenergoatom constructs new power units their economics and safety: shaping of artificial ation of the power unit plied to the power unit; the reactor unit, and ty equipment was and No. 4 are being with the VVER-1200 reactor at the Novovor- substructures underly- was completed; the start-up, commis- the main equipment installed in proper designed in line with onezh NPP-2 and the Leningrad NPP-2 (the • Reactor unit capacity increased by 20% versus ing the power unit were the unit was put into sioning and equipment revision sub-stages locations using the the VVER-1200 Novovoronezh NPP-2 power unit No.1 was the previous generation, completed; the reactor commercial operation testing sub-stage were completed; first open top method; the project. launched in 2016, and the Leningrad NPP-2 building underframe on February 27, 2017. commenced. criticality started in reactor building con- power unit No.1 – in 2017). • Headcount decreased by 30-40%, reinforcing started. December 2017. crete embedding was completed at mark 26; the generator stator In the period between 2021 and 2025, among • Design life of main equipment grew twice and was installed in its the goals and objectives for further develop- totals 60 years (with potential extension for proper location. ment of the VVER technology is to introduce an another 20 years). 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 94 — 95
POWER UNITS WITH FAST NEUTRON REACTORS, 1. Mine. 2. Mining and processing plant. 3. Conversion FLOATING NUCLEAR POWER PLANT (FNPP) facility. 4. Enrichment facility. 5. Fuel elements AND CLOSED FUEL CYCLE production facility. 6. Nuclear plant. 7,8, 9. RAW storage facility. 10. Recycling point. 11. Storage facility. 12. Plutonium and uranium extraction. On-site production of mixed-oxide fuel. CLOSED FUEL CYCLE FLOWCHART
7
RA
ello a e 5 + 6 4 ears
2 u 3 2 + u 1 7
2
1 12 11 10
POWER UNITS WITH FAST BREEDER REACTORS
ROSENERGOATOM IS IMPLEMENTING AN INVESTMENT PROJECT FOR CONSTRUCTION OF COMPOSITION OF FNPP The closed nuclear fuel cycle enables: unit and the materials of the power unit with At present, basic technologies WITH KLT-40S REACTOR BN-1200. of the closed nuclear fuel THE FNPP WITH THE CAPACITY OF 70 MW FOR PEVEK, CHUKOTKA AUTONOMOUS OKRUG. UNIT • involving the Uranium-238 isotope, which is cycle (CNFC) are tested during THE FNPP OPERATING PERSONNEL IS CURRENTLY BEING HIRED AND TRAINED. not used, into effective production (through The meeting analyzed operation of optimized operation of the Beloyarsk NPP 1. Hot water tanks its conversion into new fuel), that will supply BN-1200 in normal conditions, beyond normal energy complex (power units 2. Heat supply unit the nuclear industry with fuel for hundreds of operation, design basis accidents and beyond with BN-600 and BN-800 reactor The FNPP is an innovative power source cre- The basic construction period operations con- 3. Electricity distribution device years and minimize radioactive waste; design basis accidents, ensuring nuclear and units) in combination with the 4. Steam turbine units existing fuel production facilities, ated on the basis of Russian technologies of tinued at the FNPP onshore infrastructure and radiation safety on the basis of experience in 5. Reactor units spent nuclear fuel reprocessing nuclear shipbuilding, and aimed at reliable year- hydraulic facilities construction site in Pevek in • using plutonium from spent nuclear fuel development and operation of BN-600 and BN- 6. Hydraulic facilities facilities, spent nuclear fuel and round energy supply to the Russian Arctic and 2017, including: 7. Underwater trench (SNF) accumulated by reactors of all types; 800 reactors (Beloyarsk NPP power units No. 3 radioactive waste treatment Far East, as well as other isolated, fuel-lacking • Completion of construction and assembly of and No. 4). facilities, as well as those being areas in Russia and abroad. the mooring berth approach section; • afterburning of most troublesome and long- created. • Beginning of the mooring berth construction; lived isotopes from SNF of all types of reac- In general, the Sci-Tech Council approved the The following operations were performed in • Beginning of the onshore infrastructure facili- tors, including actinides (eliminating their results of optimization of the engineering design, relation to the FPU construction in 2017: ties construction. future long-term storage under supervision). turbine unit, and power unit design materials, as well as prepared the terms of reference for BN- • Washing of the systems of the 1st loop of the Accomplishment of the onshore and hydraulic The technology of sodium-cooled fast breeder 1200M reactor unit. FPU reactor assemblies 1 and 2; facilities construction, the FPU transportation reactors is advanced through development of • Comprehensive preparation of the FPU for to Pevek, and the FNPP commissioning are a high-power BN power unit. A joint meeting of The Beloyarsk NPP site laid the basis for core transportation to the port of Murmansk; scheduled for 2019. Sci-Tech Councils No.1 and No.8 of Rosatom infrastructure allowing to start construction of • Mooring tests started; State Corporation held on July 18, 2017 con- the power unit No. 5 with BN-1200 reactor, com- • Transshipment complex equipment testing sidered the results of feasibility improvement petent construction and assembly organizations held. for the engineering design of BN-1200 reactor and technicians are available there. 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 96 — 97
The FNPP operating personnel is currently The Company’s main expert body in charge TECHNOLOGICAL LEADERSHIP being hired and trained. for streamlining reactor technologies and In 2017, the Russian Energy their innovative development is the Sci-Tech Ministry approved the The FNPP includes: Council (STC) of Rosenergoatom, which close- investment program of ly cooperates with the STC No. 1 – Nuclear Rosenergoatom. Among other The Forecast of Sci-Tech The state objective of Development in Russia Up to Strengthening Innovative Potential • a floating power unit (FPU) with two KLT-40S Power Units and Nuclear Plants of Rosatom indicators, the program specifies annual funding of R&D in the 2030 (approved in 2016) of Russian Nuclear Technologies reactor units being the source of power and State Corporation. In accordance with the and Expanding Positions of amount of above 2 bln rubles heat generation with the capacity of 70 MW Federal Law No. 317 dated December 1, 2007, Technological Leadership until 2020. and 50 Gcal/h respectively; it is a permanent consultative and advisory body created for methodological, information • onshore infrastructure and hydraulic analysis and expert support of Rosenergoa- engineering structures in Pevek, Chukotka tom activities. Autonomous Okrug designed to supply heat and power from the FPU to energy grids. The Technology Development Block com- Program for Innovative Participation of Rosenergoatom This document lays the basis for prising the Directorate for Technology Devel- Development and Technological experts in compilation of the the Program of VVER Technology The FNPP peculiarity is that the floating opment is responsible for the industry-level Upgrade of Rosatom State draft Strategy for Development Improvement and Increase power unit (FPU) is fully created by ship- Innovations Management function ensuring Corporation Up to 2030 (Civil of Russian Nuclear Energy Up to in Its Customer Appeal under Part) (approved in 2016) 2050 and Prospects Up to 2100 Conditions of Two-Component builders with the use of the mastered nuclear a functional vertical in the Company. The Tech- together with Rosatom State Nuclear Energy System ship-building technology. After comprehen- nology Development Block also comprises the Corporation sive testing and delivery to the customer, New Platform Project Office that is focused on the FPU is conveyed to the berth where it managing fast sodium reactors development. >1.7 is connected to onshore grids and starts BLN RUBLES supplying power to the grid. The floating Rosenergoatom uses various forms of inno- were channeled for R&D funding design minimizes the scope and cost of cap- vations implementation in its activities. The as part of the Company’s ital construction of the plant in the location focus is placed on innovative development investment program in 2017. area. The customer receives environmentally owing to technologies and competencies pri- SPOTLIGHTS OF R&D IN 2017 friendly power and heat, while the matters of marily created during the R&D ordered by the RAW storage, qualified servicing and decom- Company. R&D is an integral stage of creating • Streamlining design and engineering solu- • Innovations in the nuclear industry facili- missioning of the plant when overaged are innovative products. tions ties design, construction and operation tackled by the operating organization with the use of the existing engineering capabili- On the basis of the Long-Term Investment • Developing, verifying, validating calculation • Research and development in substan- ties of the nuclear fleet. Program, Rosenergoatom annually compiles codes used for substantiation of design and tiation of the BN-1200 reactor unit NPP three-year and annual R&D plans. The ap- engineering solutions project proved spending target is stated in the respec- Joint R&D with MEPhI National R&D AND INNOVATIONS tive section of the Integrated Investment Pro- Research Nuclear University was • Ensuring materials engineering support for • Research and development in substantia- 1 ongoing to create diagnostic MANAGEMENT. R&D FUNDING gram of the Company for the planning year . generation and fuel supply to VVER tion of extended fuel campaigns of BN-600 The Company's approved R&D plans stipulate equipment in order to ensure and BN-800 reactors, fuel make-up of BN- MECHANISM, R&D INVESTMENTS development of materials and substantiation the safety of NPPs and other • Metal testing for extending the service life 800 with full loading of MOX fuel operations. The ECRAN 3D of NPPs safety, creation of domestic com- of VVER-1000 reactor vessels and in-vessel PRODUCTIVITY system of calculation and petitive equipment and materials by leading devices up to 60 years and beyond • System-wide analysis and evaluation of measurement diagnostics was Russian companies, invention of breakthrough implemented and deployed at the feasibility indicators of the commercial The nuclear industry is the leader in terms of technologies and products for power markets Kursk NPP in 2017. • Substantiating VVER-TOI design solutions, fuel energy complex of BN-1200 under the number and the level of sci-tech develop- of new reactor units. preparations for the Kursk NPP-2 construc- operation in the two-component structure ments in engineering and construction of new tion on the basis of the VVER-TOI project of the Russian nuclear power industry. NPP power units, creation of new nuclear fuel, A comprehensive R&D program was under extension of the operational NPP life cycles implementation to prevent and manage severe and boosting of the power units capacity. The accidents at VVER-type NPPs. The program target is not only to preserve these positions, was based on analysis of Rostekhnadzor but to strengthen them primarily through comments and R&D related to creation and innovative development, improvement of com- operation of the Virtual NPP software and hard- petitive ability of the products and services at ware complex. The complex enables forecast- nuclear power markets by means of upgrade ing, analyzing and assessing the risks of severe of the existing technologies and re-equipment accidents during operation of the power units of the production capacities. constructed in line with the VVER-1200 design.
1. Detailed information regarding the investment program is given in Section 3.2. 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 98 — 99
/CASE STUDY/ Against the order of Rosenergoatom, USPTK (Chelyabinsk) has developed, manufactured and put into operation at the Beloyarsk NPP a sample of the mobile fire-fighting complex featuring all advantages of the compression technology of foam fire extinguishing. The mobile complex is made as a fire-fighting vehicle and allows for simultaneous use of traditional extinguishing methods and compressed air foam, as well as the water mist fire suppression technology under high pressure. A combination of several advanced technologies in a single vehicle is a big step forward in fire-fighting techniques. The created international novelty technologies are legally protected as inventions with the respective patents being executed by Rosenergoatom.
INTELLECTUAL PROPERTY: for Computational Modeling of Severe Be- The Company’s intellectual INVENTIONS, KNOW-HOW, yond Design Basis Accidents, Including Crea- tion and Transfer of Radioactive Substances property portfolio comprises NEW TECHNOLOGIES at Pressurized Water-Cooled Reactor Units of exclusive rights to 328 items of intellectual property, including 120 VVER Type (SOCRATES/VZ). invention patents and 43 utility The industry-level Information System for model patents, 145 items of PC Intellectual Property Rights Management • 8 applications for the Russian Federation software and databases, among (ISIPRM) is a basic tool for information analy- invention patents and 6 applications for PC them 13 items of PC software sis support of the intellectual property rights software registration were filed. and 1 database have certificates management. The system was fully deployed of their state registration issued in Rosenergoatom in 2016. The system cre- • 6 applications were filed in line with the RST by Rospatent. In addition, ates a single information medium for intellec- procedure (Patent Cooperation Treaty) in Rosenergoatom possesses 4 tual property rights management within the order to receive patents abroad. Another 5 registered trademarks and 16 nuclear power industry. The ISIPRM integrates applications for foreign inventions patenting production secrets. all processes and procedures for intellectual are planned for filing on the basis of informa- property management, applied in the nuclear tion about technical solutions considered as power industry, and stipulated by the appli- production secrets in 2017. cable laws and local regulations of Rosatom PATENT APPLICATIONS FILED IN 2015-2017 State Corporation. In 2017, the industry-level All foreign patenting activities related to in- ISIPRM was constantly adapted and updated ventions are carried out by Rosenergoatom in Item 2015 2016 2017 with current data on the Company’s intellectu- close and fruitful cooperation with the indus- al property. try-level center of competence in intellectual Invention patents obtained in the Russian Federation 7 (2)1 1 7 (5) property management – IP operator. 0 1 (1) 1 Protected intellectual property obtained by Utility model patents obtained in the Russian Federation the Company primarily as a result of work The Company completed the accounting of Certificates of trademark registration obtained 2 (2) 0 0 performance by contractors according to R&D intellectual property resulting from the work contracts at the expense of Rosenergoatom. performed by the industry-level organizations Applications for invention patents filed in the Russian Federation 0 8 (5) 8 (3) under contracts made with Rosenergoatom Applications for utility model patents filed in the Russian Federation 2 0 0 IN 2017: as part of VVER-reactor NPP projects develop- ment (VVER-1200, VVER-TOI) (under the con- Applications for trademark registration filed 0 0 0 • Rosenergoatom executed 11 production tracts with Science and Innovations, and the 1 4 (1) 6 (3) secrets related to the technologies of a high industry-level Center of Competence in Intel- Applications for software and database registration filed
innovative potential, namely: the technolo- lectual Property Management of Rosatom – IP State registration certificates for software obtained 1 (1) 4 (1) 5 (3) gies of fast neutron reactor and closed fuel Operator). These activities were carried out as cycle. part of Rosatom program for implementation State registration certificates for databases obtained 0 1 0 of the project for comprehensive protection of Know-how formalized — 5 11 • 5 applications received certificates of PC NPP technologies associated with VVER-1200 software registration, including the Program reactor units, fast reactors and the FNPP. Foreign application filed, including PCT 2 0 6
1. The number of introduced and used applications, patents, etc. is given between the brackets. 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 100 — 101
TECHNOLOGY AND INTELLECTUAL REDUCTION OF KNOWLEDGE RESOURCE TRANSFER LOSS RISKS
Social network Archives Technology digitalization transfer KNOWLEDGE TRANSFER KNOWLEDGE ELICITATION KNOWLEDGE MANAGEMENT • NPP operation experience data pertaining In 2017, Sochi hosted the SYSTEM to knowledge management and optimiza- tion during NPPs construction monitoring, industry-level conference – Preservation of critical engineering support of NPPs operation was Nuclear Knowledge Infrastructure. Challenges knowledge The Knowledge Management System (KMS) is handled. and Solutions. A joint implemented in Rosenergoatom with a view to project of Rosenergoatom manage sci-tech content, intellectual property • Work was initiated to support power units and VNIIAES was awarded KMS and communities of experts as the holders of decommissioning with involvement of engi- the main prize of Rosatom Rosatom Knowledge Management critical knowledge as well as to ensure efficient neering and technical support organizations State Corporation in the Best System protection of intellectual property rights and of the Company. Comprehensive Project in ISIPRM creation of the Company’s intellectual assets1. Knowledge Management IP IDENTIFICATION KNOWLEDGE FORMALIZATION nomination in 2017 for the • There is a column devoted to the Company’s AND PROTECTION KMS Principles: innovations on the web portal of Rosatom Introduction of Integrated State Corporation: www.innov-rosatom.ru. Approach to Creation Corporate sci-tech of Nuclear Knowledge • Prioritized safety, Anti-plagiarism information library Management System in Rosenergoatom. • Intellectual capital value, CRITICAL KNOWLEDGE R&D QUALITY ENHANCEMENT CONTENT CONSOLIDATION IN UNIFIED DATABASE MANAGEMENT SYSTEM PRESERVATION AMONG • Generations continuity, PERSONNEL • Critical knowledge preservation. In 2015, a project was launched to implement These principles were fixed in the Knowl- the system for preservation of critical knowl- edge Management System Policy approved edge among personnel, as an element of the by Rosenergoatom in 2017. The Innovative intellectual capital, into the activities of the Development Directorate is a single center of Company and the Division. As part of the responsibility for organization of this work in project, the Balakovo and Leningrad NPPs in Rosenergoatom. cooperation with Rosatom Technical Acad- emy successfully introduced pilot projects The Company’s knowledge management to create a critical knowledge management activities are carried out in all KMS processes system. The Personnel Training Department (management of sci-tech communities, sci- is a center of responsibility for organization tech content and intellectual property), which of work aimed at preserving critical personnel are within the Innovations Management group knowledge in Rosenergoatom. of processes in a single model of the Compa- ny's integrated management system, and are In accordance with the results of the pilot related to many other processes. projects, the Company developed and enacted in 2017 the Procedure for Critical Personnel RESULTS OF 2017: Knowledge Preservation, the Procedural Guidelines for Organization and Performance • The automated management system for of Work in this area, and deployed the knowl- technical documentation (more than 280 edge preservation system in its branches. 45 thousand documents) was introduced in NPP employees were trained to use the basic Rosenergoatom and its branches. methods of such work.
1. Further information regarding Rosatom KMS may be found on the website: http://www.atomkms.com 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 102 — 103
103‑1 103‑2 2.5 CONTRIBUTION TO RUSSIAN 103‑3 DIGITAL ECONOMY. INFORMATION TECHNOLOGY
DIGITALIZATION ALLOWING FOR REDUCTION IN EXPENSES FOR AND COSTS OF ENERGY RESOURCES INCREASES THE RELIABILITY AND EFFICIENCY OF ENERGY SYSTEMS OWING TO CREATION OF RISK ORIENTED MANAGEMENT ON THE BASIS OF INFORMATION TECHNOLOGIES AND PREDICTIVE ANALYTICS ENSURING A COMMON ACCESS TO DATA, WHICH UNDOUBTEDLY MAKES THE COMPANY HIGHLY COMPETITIVE IN THE ENERGY MARKET.
ROSENERGOATOM PARTICIPATION sumer and the distribution grids become the MAJOR EFFECTS OF TRANSFER TO SMART ENERGY PROGRAM AREAS IN RUSSIAN DIGITAL ECONOMY object of management and self-balancing. • Statutory regulation PROGRAM Rosenergoatom is a direct participant of • Staff and education the process of transfer to SESR. In order to • Shaping of research competences In compliance with the Russian Federation transfer to the SESR, a nation-wide platform and technological back-logs Government Directive No. 1632-r dated June solution is being developed. Rosatom State • Information infrastructure 28, 2017, a state-run economic development Corporation and Rosenergoatom, together • Information security program was launched – the Russian Digital with Russian companies will create a unified Economy. The program stipulates that digital digital platform, IoT-energy, ensuring inte- Transfer to risk-oriented Enhancement of reliability, New products, including highly- Reduction of losses and damages management based on predictive availability and energy efficiency intellectual and export-oriented arising from emergency modes data is a key factor of production. gration and processing of information about analysis and information due to the energy system ones (energy solutions export) and boosting of the energy quality energy facilities on the basis of an approved technologies flexibility and adaptability The meeting of the Government Commission CIM model. “Digital transformation of in charge for the use of information technol- the power industry is quite ogies for improvement of the life quality and a large set of measures, business environment held on December 18, NEW PRODUCTS OF establishment of a common 2017 approved the action plan in the Program language and communication ROSENERGOATOM AS PART OF space among all participants sector for Shaping of Research Competences of the industry-level processes. and Technological Back-Logs. Representing DIGITAL ECONOMY DEVELOPMENT Meanwhile, the interests of all a center of competences of Rosatom State stakeholders shall be taken into Corporation, Rosenergoatom is mentioned in In 2017, the work continued to create digital consideration, and the safety of the action plan in the respective area. products based on information systems for such communications shall be production processes support, operation, main- ensured.” As part of digitalization of the Russian econo- tenance and repair of equipment, operation Decrease of the life cycle cost to Reduction of the level of Making a straight vertical of Cutdown of the share of my, a transfer shall be made to the Smart En- experience accounting, technical documenta- YEVGENY RYBCHAK2, 15-30% owing to introduction of redundant installed capacity management of the current and expenses for the energy resource ergy System of Russia (SESR) envisaging syn- tion management, collection and transfer of the Director of the Department for new construction principles for owing to consumer load trustworthy information allowing and enhancement of the grid and energy storage systems for prediction of the equipment infrastructure availability thesis of the energy and information systems, power unit parameters, time and cost manage- Monitoring and Control of Power the energy sector, management management, self-balancing of status in various planning horizons changes in the structure of the energy system ment of the capital construction facilities, as Industry, Russian Energy Ministry systems, technologies and equipment equipment and the principles of its management: the con- well as a series of others.
1. Details of the program may be found at: www.government.ru 2. Source: https://www.eprussia.ru/epr/345-336/8885981.htm 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 104 — 105
SPOTLIGHTS OF R&D IN 2017 SERVICING MANAGEMENT PLATFORM
Streamlining design and engineering Innovations in the nuclear industry facilities design, 1. REFERENCE PROJECT: EMR PLATFORM DEVELOPMENT (2017/2018 2. PRODUCT PROPOSAL solutions construction and operation BALAKOVO NPP + SMOLENSK NPP) CREATION
Developing, verifying, validating calculation codes NPP FACILITIES STATUS AND SERVICING SITUATION CRISIS CENTER OF RESPONSE MANAGEMENT used for substantiation of design and engineering MONITORING: (POWER UNIT RECORDS) Research and development in substantiation of the solutions BN-1200 reactor unit NPP project • status assessment • process parameters collection INTELLECTUAL SEARCH FOR NON-STRUCTURED DATA, • malfunctions and defects statistics CORRELATION OF EVENTS/PARAMETERS, NPP OPERATION • status modeling EXPERIENCE Ensuring materials engineering support for generation and fuel supply to VVER Research and development in substantiation of KNOWLEDGE MANAGEMENT AND E-LEARNING (INTERACTIVE extended fuel campaigns of BN-600 and BN-800 NPP OPERATION PROCESSES SUPPORT TECHNOLOGIES AND AUTOMATED PARAMETRIZATION OF NPP reactors, fuel make-up of BN-800 with full loading of AND SAFETY: OPERATION COURSES) MOX fuel Metal testing for extending the service life of VVER- • EAM 1000 reactor vessels and in-vessel devices up to 60 • Documentation management, event registration COMPREHENSIVE SOLUTION OF NPP CYBERSECURITY years and beyond • Event logs, inspection control ISSUES, APCS/CIM • Quality records System-wide analysis and evaluation of feasibility indicators of the commercial fuel energy complex SERVICING PROJECT MANAGEMENT AND CLIENT DOSSIER, Substantiating VVER-TOI design solutions, of BN-1200 under operation in the two-component REPAIR PROGRAM RESOURCE PLANNING, SOLUTIONS FOR INFORMATION FIELD, MOBILE PLATFORMS, preparations for the Kursk NPP-2 construction on the structure of the Russian nuclear power industry. EMR ERP: CUSTOMER’S DASHBOARD COMPONENTS RENTAL, basis of the VVER-TOI project CUSTOMER'S PORTAL • Material and labor resources (valuation map) • Dosimetry limits for personnel and labor intensity MODULAR DPCS INTEGRATED INTO NPP UTILITIES, • Assessment of readiness for repair beginning IT SERVICES OF DPCS • Service requirements management
DIGITAL PATTERN OF NPP OPERATION SERVICING MANAGEMENT DIGITAL PATTERN OF NPP OPERATION EXPERIENCE EXPERIENCE PLATFORM
Present-day management of NPPs shall be The Company’s platform for NPP servicing carried out in a digital format with the use of IT management (maintenance and repair, opera- solutions aimed at supporting the processes. tion experience) lays the cornerstone for devel- CONSTRUCTION SUPPLIES CS SYSTEMS MONITORING Rosenergoatom faces the challenge of the opment of a new product proposal of the Com- “A separate stage of the digital UPGRADE MANAGEMENT Dispatch Receipt, treatment and RPS center transfer of process processes automation and creation of a unified pany's services on the basis of 'big data'. Pilot transformation is the completion parameters tool of the NPP systems management – facilities, the Balakovo and Smolensk NPPs, of a reference pattern in Russia, a full-scale digital pattern (or model) of op- are facing the challenge of developing the MRP build-up of the digital shell, eration that embraces resource, personnel, (equipment maintenance and repair) platform multi-language translation of the created solution and its maintenance and repair, analytics, risks and with further creation of a digital product. replication in foreign markets – knowledge base management and that can be we are planning to complete it replicated as an integrated solution, at foreign INFOPANELS ERP ERM PILOT OPERATION within three-four years.” Analytics, Resource Repair MANAGEMENT projects of Rosenergoatom, inter alia. modeling management management Analysis of considerable SERGEY MIGALIN, events, interaction detection, Deputy CEO – Director for root cause analysis, etc. Economics and Finance, Rosenergoatom1
MANAGEMENT AUTOMATED DESIGN OPERATION SUPPORT AUTOMATED REFERENCE DATA AND ENGINEERING Operation logs INFORMATION DOCUMENT Patrolling SUPPORT SYSTEM MANAGEMENT SYSTEM Configuration change, etc. Inspections Technical documentation
1. Source: Digital Transformation Newsletter, https://www.cio.ru/articles/041217-Rosenergoatom--na-puti-k-atomnoy-energetike-40 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 106 — 107
INFORMATION al efficiency, transparency and reliability of TECHNOLOGY information. INFORMATION SECURITY In 2017, Rosenergoatom won the National IT Leadership Prize in the Energy Industry Enter- Rosenergoatom continued working on the up- prise nomination, and the SAP Value Award grade of the integrated system of information 2017 in the Digital Transformation Leader security according to the guidelines of the Rus- nomination. sian Federal Service for Technical and Export Control, and the Industry-Level Requirements In 2017, as part of the approved Strategy for for Information Security. Developing Information Technologies of Power Engineering Division until 2020, Rosenergoa- The network traffic protection and firewall -sys tom worked in four main areas: applicable infor- tems were upgraded in order to defend the cor- mation systems, IT infrastructure, information porate network perimeter from cyber threats. security and improving operational efficiency (Cost Optimization Program). Information security products were introduced, including the information security events mon- APPLIED INFORMATION SYSTEMS itoring system, with a view to raise the level of information security of Rosenergoatom. In the reporting period, an important step was made on the way to digital transformation – The division-level enterprises identified and implementation of corporate information sys- repelled mass virus attacks (WannaCry, Petya) tems was completed: the centralized enterprise with the use of modern information security resource management system (SAP ERP), the products. In order to speed up the response personnel management system (SAP HCM), to events and incidents related to information the unified industry-level electronic document security, the Information Security Competence DATA PROCESSING The new DPC will become the nation’s largest management system in all 16 branches of the Center has been established and is under de- and one of the largest in Europe, its power The DPC project is included into Information security products AND STORAGE CENTERS (DPC) Company. The total number of the SAP ERP velopment on the basis of CONSYST-OS. consumption will reach 80 MW. the Russian Federation Digital were introduced, including the Economy Program implementation users at enterprises exceeded 4 thousand information security events plan. Rosenergoatom is planning to persons. We ensured operation and upgrading of antivi- monitoring system, with a view The DPC construction project is implemented The DPC project is implemented in partner- transfer all IT systems to the DPC rus tools, and unauthorized access protection to raise the level of information near the Kalinin NPP taking into account the ship with Rostelecom being an anchor tenant during 2018 and further on in as An important aspect of such transformation tools. Monitoring, analysis, and review of the security of Rosenergoatom. advantages of direct connection of the site of the DPC machinery rooms. Under the terms stage-wise manner. is integration of information systems allowing information security incidents are carried out immediately to NPP power supply grids. and conditions of the agreement, Rostelecom for elimination of double data entry, operation- on a weekly basis. rents the buildings and structures for the DPC The DPC objective is to implement a proprie- organization for 30 years, it will design and tary disaster-proof system for the production create the engineering infrastructure of the ACTIVITIES RELATED TO KEY PROJECTS IN IT INFRASTRUCTURE AREA1 process data processing and storage accessi- center and organize the respective communi- ble 24/7 year round, as well as to diversify the cation channels. In its turn, Rosenergoatom business portfolio, and bring Rosenergoatom will design the center, construct buildings and to a new development area of data process- structures, communications and the energy ing and storage services. system, create the engineering infrastructure for a part of its own capacities. Designing of a disaster-proof IT Terms of reference developed Terms of reference developed and As part of the project for Boosting The federal-level DPC Stage 1 facilities were infrastructure of Rosenergoatom on and approved for creation of an approved for designing of typical Functionality and Productivity of commissioned in December 2017. In order the basis of the federal-level Data automated technical support system IT infrastructure of the Company’s Corporate Services and Replication Processing Center at the Kalinin for IT services users. The project branches. of Solutions at Enterprise-Level to use vacant capacities of the DPC, active NPP. implementation is scheduled for The project implementation is DPCs, work was performed to pre-contractual work is underway with the 2018-2020. scheduled for 2018-2020. migrate the infrastructure of state and commercial companies for provi- VNIIAES and dedicated branches sion of a wide range of DPC infrastructure of Atomenergoremont. The project services. This allowed to reduce risk load completion is scheduled for 2018. on the project and ensure a stable portfolio of orders in the long run. The DPC Stage 2 facilities construction is underway, their completion and commencement of lease are scheduled for 2018.
1. Implementation of these projects is scheduled for 2018-2020. 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 108 — 109
102‑12 - 102‑13 2.6 INTERNATIONAL SCI TECH COOPERATION
WORLDWIDE STRATEGIC PARTNERS – EUROPEAN UTILITY REQUIREMENTS (EUR) NUCLEAR ENERGY AGENCY UNDER ORGANI- INTERNATIONAL ORGANIZATIONS ZATION FOR ECONOMIC COOPERATION AND Design documentation of the VVER-TOI reactor DEVELOPMENT (NEA/OECD). was verified for compliance with the European operators' requirements in the reporting year. A representative of Rosenergoatom has been EDF was the technical leader of evaluation. on the Secretariat of the Nuclear Energy Among the experts were ČEZ (Czech Republic), Agency under the Organization for Economic MVM Paks (Hungary), GEN energija (Slovenia). Cooperation and Development (NEA/OECD), Radiological Protection and Human Aspects of Nuclear Safety starting from December 1, 2017. In addition, Rosenergoatom participated in the NEA/OECD project for the Information System on Occupational Exposure (ISOE).
IAEA WANO
In 2017, Rosenergoatom actively participated The OSART mission was held at the Leningrad Rosenergoatom is the largest member organ- A key initiative of the year was to perform a in the 7th meeting of the contracting parties NPP in November 2017. The mission defined ization of the World Association of Nuclear complex of measures in the safety culture area: of the Convention of Nuclear Safety. that the power plant operation safety level “The innovative technologies Operators (WANO) in the WANO Moscow the support mission at the Company’s Head- MEMBERSHIP is currently fully in line with the IAEA safety used at the Novovoronezh Center. As part of cooperation with the WANO, quarters and 4 nuclear plants with a view to IN INTERNATIONAL ORGANIZATIONS As part of cooperation with the International requirements. The mission gave no recom- NPP, such as virtual reality representatives of the Company’s Headquarters check up the status of the safety culture and Atomic Energy Agency (IAEA), the Compa- mendations, 7 proposals and 4 good practice and computer visualization, and branches participated in 125 international raise its level. These activities will be continued • International Atomic Energy ny’s Headquarters and branches hosted 33 examples. impressed all our team. This events in 2017. In addition, Rosenergoatom in 2018. Agency (IAEA)1 really helps students put international events in the reporting year. In arranged the activities of the WANO Moscow • World Association of Nuclear themselves into the situation addition, Rosenergoatom employees partici- Center representatives at the NPP sites. In 2017, Rosenergoatom continued operation Operators (WANO) similar to a real environment • Materials Ageing Institute (MAI) pated in 23 IAEA events abroad. at the unit. This practice will of the WANO Crisis Center on the basis of under the auspices of EDF be included into the data basis In 2017, top management of the Company par- the Company’s Crisis Center, 10 international As part of the long-term IAEA Operational summarizing the results of ticipated in all major events of the WANO: the emergency drills were held with participation of • European Utility Requirements Safety Review Team (OSART) program, a fol- the OSART mission, and other General Assembly, the Main Governing Board the Regional Crisis Center. The Regional Crisis (EUR) low-up visit to the Novovoronezh NPP was held power plants across the world meetings, the International Council of Technical Center embraced nuclear plants with RBMK, BN • Nuclear Energy Agency under in March 2017 by OSART. The visiting team will be able to get access to our Managers of Operating Companies and NPPs. and EGP reactors in the reporting year. the Organization for Economic defined that recommendations and proposals “The Leningrad NPP passed a thorough self- experience. If someone from the Cooperation and Development 1 of the OSART mission held in 2015 were 90% assessment in accordance with the IAEA standards, IAEA asks for contact details of Russian NPPs passed three full-scale peer re- Rosenergoatom is also an active participant of (NEA/OECD) fulfilled, with the remaining 10% being fulfilled which resulted in initiation of such measures as the the power plant that has done a views (with the design information component), the WANO Reorganization project stipulating integrated management system introduction with good job in personnel training, at a fast pace. three follow-up peer reviews, and two pre-launch creation of the fifth regional WANO center in a view to improve its activities. Execution of the we will definitely point out the peer reviews by the WANO in 2017. Shanghai, PRC. proposals made by the OSART will further raise the Novovoronezh NPP.” Coordinated preparations for the OSART power plant operation safety level, and the identified mission are underway for the corporate OSART good practices will help increase the safety level PETER TERREN, mission (2018), and the OSART mission at the worldwide, if implemented at other power plants.” Operational Safety Section Head, Kalinin NPP (2019) with international experts IAEA involved. In April 2017, the Kalinin NPP hosted Vesselina Rangelova, the IAEA workshop devoted to the Safety Deputy Team Head, Lead Specialist for IAEA Nuclear Safety Culture. 1. The Russian Federation is a member of the Agency; Rosenergoatom participates in activities under the auspices of the Agency via an authorized organization – Rosa- tom State Corporation. 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 110 — 111
REGIONAL SCALE STRATEGIC PARTNERS
ÉLECTRICITÉ DE FRANCE (EDF, FRANCE) As part of the interchange, the Modern Russian IBERDROLA (SPAIN) KEY INTERNATIONAL EVENTS OF 2017 and French NPPs photo exhibition was organ- In 2017, 23 joint actions were held involv- ized and held in Moscow. IN 2017, OPERATIONS WITHIN The main result of the year was signing of the WANO General Assembly with WANO international conference of technical ing representatives from the Headquarter MAI PROJECTS CONTINUED, Memorandum of Understanding between Iber- participation of CEO and First Deputy CEO managers of operating companies and INCLUDING: and branches of Rosenergoatom (including During preparations for the corporate OSART drola Generación Nuclear and VNIIAES for NPPs Operation chief engineers of NPPs (Rosenergoatom papers) NPPs), organizations and enterprises of the mission, a workshop on the Experience in IAEA • Reactor vessel ageing assessment (Kurchatov OSART mission at Leningrad NPP industry: Rosatom State Corporation, NIKIET, Corporate OSART Missions was held in France Follow-up visit of OSART to Novovoronezh Atomenergoproekt, Gidropress, ASE, VNIIAES, with participation of EDF representatives. Institute), NPP International insurance inspections at VNIIEF, Alexandrov Research Institute of • Deformation of elements of Rostov and Smolensk NPPs Technology, Science and Innovations, Kur- Under the agreement between Rosenergoatom reactor vessel components Pre-launch peer reviews of Rostov and chatov Institute, etc. Cross-visits were made and the EDF Materials Ageing Institute (MAI), (GIDROPRESS), Leningrad NPPs by WANO Follow-up peer reviews of Kalinin, Balakovo by Andrey Petrov, Rosenergoatom CEO to the experts from Russian organizations and • Further understanding of the COOPERATION WITH NORDIC COUNTRIES (NOR- and Bilibino NPPs by WANO Flamanville NPP in France, and by Dominique MAI member companies exchanged experi- mechanism for irradiation- WAY, FINLAND AND SWEDEN) Peer reviews of Kola, Smolensk and Kursk Minière, Executive Vice President, Nuclear mental data and knowledge. The R&D results assisted stress corrosion NPPs by WANO and Thermal to the Beloyarsk and Leningrad achieved by Rosenergoatom in cooperation cracking (IASCC), and As part of existing agreements, cooperation of the 7th meeting of contracting parties of Convention of Nuclear Safety with NPPs. with MAI are used by Russian organizations development of the model Leningrad and Kola NPPs was furthered with SSM IAEA international conference devoted to to forecast reactor vessel participation of Rosenergoatom delegation current issues of nuclear plants safety: in comparative analysis of methods and (Sweden), STUK (Finland), and IPE/NRPA (Nor- headed by First Deputy CEO for NPPs elements resistance to safety demonstration of advanced NPPs The following areas feature the largest approaches for extension of Russian NPP way). Projects were focused on the following are- Operation (operators' joint paper) IASCC (PROMETEY Central with water-cooled reactors (Rosenergoatom paper) number and widest scope of actions, as operation periods. Joint work with global lead- Research Institute of Structural as in 2017: emergency preparedness, decommis- well as the most active interest from both ers in this sector enables developing Russian sioning, radioactive waste handling and disposal, Visit by Dominique Minière, Executive Vice Materials) President, Nuclear and Thermal to the sides: NPP operation, NPP engineering and technologies in the area of NPP equipment etc. Rosenergoatom representatives participated Beloyarsk and Leningrad NPPs Comprehensive emergency drill at Rostov support, inventory and logistics manage- durability and lifespan, and conducting joint in the activities of the Russian-Scandinavian task NPP attended by 15 foreign observers ment, design techniques and experience international research, comparative analysis of force for emergency preparedness created by CEO visit to Flamanville NPP (France) in implementing new reactor projects, fast methods and approaches for ensuring reliabili- Rosatom State Corporation at the initiative of the breeder reactors. ty of obtained results. Scandinavian countries. 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 112 — 113
2.7 INTERNATIONAL BUSINESS AND NEW PRODUCTS
DEVELOPMENT OF NEW BUSINESSES AND EXPANSION OF FOREIGN PRESENCE ARE RESULTS OF NEW BUSINESS LINES DEVELOPMENT ACCORDING TO KEY INDICATORS IN 2016–20171 “Today, we need to move towards AMONG THE COMPANY’S TOP PRIORITIES. exponential growth in financial indicators owing to product and geographic diversification. Firstly, Business Line Revenues from New Products2, New Product Orders this is a service oriented model Being one of the key participants of the NEW BUSINESS LINES Bln Rubles Portfolio for 10 Years, of business surrounding the core, comprehensive proposal of Rosatom State Bln Rubles DEVELOPMENT provision of a full range of services Corporation in the international markets for throughout the life cycle of NPPs 2016 2017 2016 2017 construction of NPPs abroad, Rosenergoa- when implementing international tom closely watches the safety and reliability Creation of new products and their sales in projects. Secondly, this is NPP Servicing Abroad 4.9 4.66 34.31 of their operation, as well as quality of their the Russian and international markets is development of new technologies 48.44 servicing. In order to facilitate the access of rapidly developing. Currently, the Compa- and the business lines based foreign customers to a wide range of servic- ny’s new business lines portfolio contains on them as the cornerstone of Penetration of B2B and B2C segments with new 0.08 – – 0.12 es provided by the Power Engineering Divi- five major areas surrounding mainly the future leadership in the Russian products sion, Rusatom Service is defined as a single Division’s core activities, and several new and international markets. Let me emphasize that one of the factors Electricity Marketing (Supplier of Last Resort) 49.15 – – industry-wide integrator of the foreign NPPs businesses focused on their diversification 55.33 servicing proposal. and support. of success in international markets is coordinated interaction of the Total 54.13 34.31 Division with Rosatom structures 60.11 48.44 involved in international activities. Thus, it is we – with our will, business acumen, and persistence NEW BUSINESS LINES DEVELOPMENT AREAS – who will successfully face the NPP SERVICING ABROAD strategic challenges. It is well-known that those who aim high, reach high.” NON-NUCLEAR BASIC PRODUCT PROPOSALS IN NPP SERVICING ABROAD: ANDREY PETROV, NPP Servicing Abroad is an important strategic initiative of CEO, Rosenergoatom the Division, which is coordinated in Rosenergoatom by the International Business and Development Department, and ELECTRICITY DISTRIBUTION ADJACENT MARKETS DATA PROCESSING CENTER Rusatom Service. Nuclear Personnel Commissioning Training Operation Expanding available compe- Using available competencies Expanding available compe- infrastructure training center Such operations involved 12 tencies and acquiring addi- in new markets tencies and acquiring addi- countries of the world: Armenia, tional ones in basic markets tional ones in basic markets Belarus, Bulgaria, Czech Republic, Slovakia, Hungary, Lithuania, Iran, China, India, Bangladesh, Finland. Rusatom Service is the market NUCLEAR leader in Armenia, Bulgaria, and Iran.
Servicing Simulators Technical supervisor
NPP SERVICING ABROAD ISOTOPES PRODUCTION
Using available competencies Acquiring additional 1. In 2015-2016 the revenues and portfolio of new product was calculated with consideration of intra-group turnover, starting from 2017 calculations are made outside in new markets competencies in new markets Rosatom State Corporation circuit only (external customers). Therefore, the data of 2015-2016 were reassessed and reflect the amount of revenue and the portfolio of new orders outside Rosatom State Corporation circuit only. 2. Outside Rosatom State Corporation circuit. 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 114 — 115
48.44 MAJOR INTERNATIONAL PROJECTS BLN RUBLES – total New Product Orders Portfolio for 10 years, NPP Servicing Abroad business line (outside Rosatom State Corporation circuit). Substantiation of possible life Commissioning and start-up, Service life extension of the Spare parts extension of the Kozloduy NPP personnel training at the Belarus Metsamor NPP power unit No.2 supplies power unit No.6; equipment NPP upgrade
PRODUCT OWNERS PRODUCT INTEGRATOR CUSTOMER
Division organizations – product Specific activity (supplies, work, An authorized organization of A company that is an existing or manufacturers having relevant services) offered for sales in line Rosatom State Corporation for potential buyer (customer) of the competencies and reference.ФИНЛЯНДИЯwith the NPP Servicing Abroad managing NPP servicing abroad. product. business. A ‘single window’ for an integrated offer of the Division BELARUS and international contracts execution. БЕЛАРУСЬ
СЛОВАКИЯ ВЕНГРИЯ • Nuclear infrastructure INTEGRATED PRODUCT OFFER БОЛГАРИЯ •АРМЕНИЯ Technical supervisor BULGARIA ТУРЦИЯ FUNCTIONS: • Personnel training КИТАЙ ARMENIA
TURKEY • DocumentationИРАН development • Shaping an integrated offer • Simulators БАНГЛАДЕШ ЕГИПЕТ • Marketing IRAN CHINA
• Commissioning • Market packaging of the • Personnel training product EGYPT BANGLADESH • Interacting with the • Operation customer in relation to all matters during the contract • Maintenance and repair making and execution ЗАМБИЯ
• Equipment and nuclear fuel quality control Servicing and personnel training Servicing of the El Dabaa NPP Maintenance and repair, spare Personnel training, start-up and
Technical at the Akkuyu NPP planned for planned for construction in Egypt parts supply, engineering services commissioning of the Rooppur Academy TECHNICAL • Personnel training construction and technical support of the NPP power units No.1 and No.2 ACADEMY (technology integrator) Rosatom Tech Bushehr NPP power unit No.1 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 116 — 117
KEY PROJECTS OF 2017 IN NPPS SERVICING ABROAD
103‑1, 103‑2, 103‑3
NUCLEAR INFRASTRUCTURE PERSONNEL TRAINING OPERATION AND SERVICING SLOVAKIA In 2017, Rusatom Service was registered in the In 2017, Rusatom Service was defined as a BELARUS ARMENIA Partners Register of the State Sector of the Repub- single integrator of the nuclear infrastructure As part of the Belarus NPP construction and As part of the service life extension for the Arme- lic of Slovakia in accordance with the requirements (industry-level coordination center) responsible commissioning project in line with the ap- nian NPP power unit No. 2, operations were on- of the Slovakian laws, and passed a remote audit for assessment, Russian support in planning, proved schedule of operational personnel ap- going for assessment of the technical condition of Slovenske Electrarne suppliers’ quality manage- creation and development of national nuclear prenticeship, 189 Belarusian experts passed and substantiation of the remaining equipment ment system (QMS). The first direct contract was infrastructure and industry in the customer apprenticeship in 2017. life. During the period of scheduled maintenance made with Slovenske Electrarne for spare parts countries. of the power unit No.2, repair operations were supply for the Mochovce NPP main circulation FINLAND held in 2017 with the use of equipment elements pumps GTsN-317, as well as a contract for consul- THE REPUBLIC OF ZAMBIA Over 200 persons passed the basic training welding. Russian experts’ activities in 2017 tancy services related to remote engineering and In June 2017, a contract was made for pro- course in Finland for the Hanhikivi-1 NPP laid the basis for early start-up of the NPP after technical support during operation of the Mocho- vision of services in assessment and devel- personnel. A personnel training plan has been scheduled maintenance of 2017. vce NPP power units No.1 and No.2, the Bohunice opment of the nuclear infrastructure in the developed and is being approved by the foreign NPP power units No.3 and No.4. Republic of Zambia between the Zambian customer. BULGARIA Government and Rusatom Service. In 2017, the Kozloduy NPP power unit No.5 ob- HUNGARY tained the license for an extended service life In accordance with the contract made with of 10 years, SLE operations at the power unit MVM ERBE, 20 persons passed training in the No.6 are on schedule. Assembly of upgraded NPP-2006 Technology Basics subject. generator equipment at the power unit No.5 was completed in 2017. BANGLADESH COMMISSIONING An agreement was made with ASE for Rooppur IRAN COMPREHENSIVE SERVICE CONTRACTS NPP operating personnel training (1,424 pers.). Maintenance and repair of mechanical, electri- SLOVAKIA The training start was scheduled for 2018. cal and APCS equipment, as well as metal and Technical support of start-up and commission- EGYPT welded joints control operations were held at the ing operations continued during completion of In 2017, a Service Contract was made for main- TURKEY Bushehr NPP power unit No.1. Consultancy and the Mochovce NPP power units No.3 and No.4. tenance and operation support of El Dabaa A comprehensive service contract was made technical support services were rendered to the NPP with the effective date of December 11, with the Akkuyu NPP. Training of the NPP oper- Customer in the amount of 132 pers./month at BELARUS 2017. Construction start is scheduled for 2018. ating personnel (1,310 pers.), and the training the stage of preparation for and execution of the Work continued to commission the Belarus The Contract is the largest one in terms of ren- center equipment were planned for 2018 as second midlife repair. In 2017, a unique four-year NPP, washing of the safety systems started at dered services among similar comprehensive part of the contract. contract was made between Rusatom Service the power unit No.1 open reactor. service contracts in the industry. and the Nuclear Power Production and Develop- IRAN ment Company of Iran (NPPD) for organization BANGLADESH TURKEY A contract was made with NPPD for repair and execution of scheduled maintenance, and A contract was made with ASE for start-up A comprehensive service contract was made and training of the repair personnel at the the Customer’s repair personnel training. during the commissioning of the Rooppur NPP with Akkuyu Nuclear providing for execution of Bushehr-1 NPP. The training will start in 2018. For the purpose of timely completion of sched- power units No.1 and No.2. repair operations, supply of spare parts, equip- uled maintenance at the Bushehr-1 NPP, two ment and materials, rendering of Akkuyu NPP contracts were signed between Rusatom operating personnel training, equipment of the Service and NPPD for spare parts supply to the Akkuyu NPP training center, including a simula- Bushehr-1 power plant in 2018-2021. tor complex for the main control room/standby control room (duplex: full-scale simulator – CHINA analytical simulator). This long-term contract A series of contracts for spare parts supply, and stipulates long-lasting cooperation related to a service contract for the Tianwan NPP power the Akkuyu NPP servicing (60 years, which is units Nos.1-4 were signed in 2017. comparable to the nuclear plant life cycle). 02. Technological Leadership and Innovations Annual report 2017 Rosenergoatom 118 — 119
ADJACENT MARKETS CERTIFICATION BODY AND TESTING LABORATORY In 2017, Atomtechenergo and Atomenergore- mont continued execution of a series of repair, construction and assembly operations at the EREC successfully passed the procedures to PIK reactor equipment. expand the accreditation area of the Certifi- cation Body and the Testing Laboratory. First EREC made and agreement with GMZ Kh- agreements were made in 2017 for provision of immash in 2017 promoting generation of a product certification services that previously considerable share of EREC revenue outside were outside the Body's accreditation area. the Rosatom State Corporation circuit, and an agreement with Cryogenmash. LIQUID RAW REPROCESSING AS A NEW BUSINESS LINE ELECTRICITY MARKETING
In 2017, AtomEnergoSbyt continued opera- In 2017, Rosenergoatom initiated R&D on De- tions in the status of the “last resort supplier” velopment of Liquid RAW Processing Plant in of electricity in the Kursk, Tver, Smolensk, and Modular Design with Production of Conditioned Murmansk Oblasts. RAW Meeting Acceptance Criteria for Burial.
The revenue totaled 55.3 bln rubles in 2017, 55.3 which is 13% higher than the target indicator. DATA PROCESSING CENTERS BLN RUBLES – Additional products were under development in total revenue in 2017, which all corporate branches in 2017 (B2B and B2C). A key event of 2017 was implementation of one is 13% higher than the target The revenue from this project implementation of the Company’s major project – construction indicator. in 2017 totaled 117.4 mln rubles, which is 20% of the Data Processing Center at the site locat- higher than the target indicator. ed near the Kalinin NPP.
ISOTOPE BUSINESS AS A NEW BUSINESS LINE PROMISING AREAS
CO-60 PRODUCTION AT SMOLENSK at the Smolensk NPP power unit No.2 at the TURKEY SAUDI ARABIA AND KURSK NPPS moment. In 2018, it is planned to hold negotiations and A series of meeting with the customer are In order to ensure failsafe production and make an addendum to the service contract for scheduled for 2018 with a view to discuss an increase the share of export to the global Co- Iodine-131 production also started at the start-up and technical support of the Akkuyu integrated proposal of Rosatom State Corpora- balt-60 markets after expiry of the service life Leningrad NPP in 2017. The isotope will be NPP commissioning. tion, which influences the services rendering. of the Leningrad NPP RBMK-1000 power units, used for production of the radiopharmaceuti- which currently hosts Cobalt-60 production, a cals required for diagnostics and treatment of BANGLADESH BULGARIA, IRAN, UZBEKISTAN project was launched to organize production at oncological diseases. Historically, among the Completion of approval and signing of the As part of development of a new promising the Smolensk and Kursk NPP. enterprises of the Rosatom State Corporation Service Contract with the Nuclear Energy product line – Heat Energy – by the Company's isotope complex involved in Iodine-131 pro- Commission of the Republic of Bangladesh are subsidiary, Atomtechexport, a design office In 2017, the Smolensk NPP power unit No.1 duction were NIIAR and NIFKhI. At present, a scheduled for 2018 in order to provide tech- was established in 2017. Negotiations on this started producing Co-60, preparations required decision is made to involve the Leningrad NPP nical support of operation, and participate in product line with Bulgaria, Iran and Uzbekistan for Co-60 production in 2018 are underway capacities as well. maintenance and repair of the Rooppur NPP. are scheduled for 2018.
1. For additional information refer to Section 2.2 – Generating Capacities. Developing Generating Potential. 2. For additional information refer to Section 2.5 – Contribution to Russian Digital Economy. 03. Sustainability Management Annual report 2017 Rosenergoatom 120 — 121
03. SUSTAINABILITY MANAGEMENT
3.1 Financial Stability 123
3.2 Investment Program 130
3.3 Environmental Impact 132 3.4 Radiation Effect on Personnel and Population 140
3.5 HR Policy 147
3.6 Labor Protection 157 3.7 Social Policy. Developing Areas of Presence. Charity 161
1.5 MLN SMART HOMES WILL BE SUPPLIED WITH POWER DURING A MONTH BY THE NUCLEAR POWER UNIT RATED AT 1,000 MW 03. Sustainability Management Annual report 2017 Rosenergoatom 122 — 123
102-7 3.1 FINANCIAL STABILITY 103-1 103-2 103-3 201-1
KEY RESULTS OF 2017: Key financial and economic indicators characterizing the financial status of Rosenergoatom, and the Company’s efficiency and performance are shown in the below table.
CONTRIBUTION TO ACHIEVMENT OF UN SDGS KEY FINANCIAL AND ECONOMIC INDICATORS OF ROSENERGOATOM ACTIVITIES Good Health and Well-Being 3 Ensure healthy lives and promote well-being for 3,837 all at all ages Indicator 2015 2016 2017 ∆2017/2016, % MLN RUBLES Revenue mln rubles 263,757 282,036 360,386 28 % Environmental costs of NPPs in 2017 Gross profit mln rubles 103,616 105,583 152,730 45 %
Percent of gross profit to revenue 39% 37% 42% 13 %
Business expenses mln rubles -21 -22 -18 –18 % Quality Education 4 10,712.0 Ensure inclusive and equitable quality educa- Management expenses mln rubles -10,364 -10,004 -11,570 16 % RUBLES tion and promote lifelong learning opportuni- EBITDA mln rubles 135,535 134,614 190,982 42 % The minimum salary of the ties for all Company’s employee from Net profit mln rubles 13,922 10,605 45,981 334 % September 1, 2017 (with the minimum monthly wage of 7,800.0 Net cash flow mln rubles 12,073 1,807 8,742 384 % rubles from July 1, 2017) Net assets mln rubles 1,298,091 1,389,225 1,509,615 9 %
Return on sales (by net profit) % 5.28% 3.76% 12.76% 239 % Clean Water and Sanitation 6 Return on assets % 18.7% 18.3% 21.5% 17 % Ensure availability and sustainable manage- 3,115,027 ment of water and sanitation for all Return on equity % 1.12% 0.79% 3.17% 302 % HOURS Rosenergoatom employees received EBITDA margin (EBITDA/revenue), estimated % 51.39% 47.73% 52.99% 11 % 3,115,027 hours of training EBITDA margin (EBITDA/revenue), budgeted % 43.49% 41.22% 46.73% 13 %
Debt/equity ratio 0.07 0.07 0.05 –28 %
Current liquidity ratio 1.10 1.83 2.29 25 % Climate Action 13 2,645,342 Equity mln rubles 1,296,820 1,388,030 1,508,466 9 % Take urgent action to combat climate change THOUSAND RUBLES and its impacts The Company’s social policy expenses Debt mln rubles 87,932 95,131 74,046 –22 %
Life below Water 14 Conserve and sustainably use the oceans, seas and marine resources for sustainable develop-
ment 1. Management expenses are shown excluding accrued industry-specific reserves (allocated to prime cost) 03. Sustainability Management Annual report 2017 Rosenergoatom 124 — 125
VALUE CREATED AND DISTRIBUTED BY ROSENERGOATOM IN ACCORDANCE WITH RUSSIAN ACCOUNTING STANDARDS, BLN RUBLES ACTUAL REVENUE STRUCTURE
Item No. Indicator 2015 2016 2017 Total Revenue From Sale of Power (Capacity) Total (Mln Rubles) in Accordance with Accounting Statements 1 Created economic value 279.7 294.3 375.8 357,548 2 Incomes (sales revenue, gains from financial investments, and sold assets) 279.7 294.3 375.8 Including: 3 Distributed economic value 160.3 178.3 217.2 Revenue from sales of own products 354,730 4 Operating costs1 (payments to suppliers and contractors, cost of purchased materi- 105.6 120.8 141.4 als) Including: 5 Salaries and other payments and benefits for employees 28.6 29.1 30.1 Bilibino NPP 2,253 6 Payments to capital providers 1.5 1.6 3.8 Regulated agreements (power) 9,081 7 Gross tax payments (before individual profit tax and VAT) 24.1 26.2 41.4 2016 3,790 2016 968 Regulated agreements (capacity) 24,221 2017 5,568 2017 6,124 8 Investments in communities, including donations 0.6 0.5 0.5
Day-ahead market 183,653 9 Retained economic value (Line 1 – Line 3) 119.4 116.0 158.6
10 Contribution to GDP (Line 5 + Line 6 + Line 7 + Line 8 + Line 9) 174.1 173.5 234.5 Deregulated bilateral contracts 1,050
Balancing market 1,371
REVENUE ANALYSIS Capacity supply agreements (capacity) 96,921
Capacity according to competitive capacity offtake agreements 36,180 Revenue from sales of the Company’s products in 2017, Mln Rubles 2017 360,386 Revenue from sales of purchased products 2016 3,790 2,818 2016 968 Revenue from electricity and capacity sales by Rosenergoatom at the 2017 5,568 2017 6,124 2017 354,730 2,818 WECP, taking into account the Bilibino NPP, Mln Rubles 357,548 Including: 2016 2,591 2016 31,692 Mln kWh 44 2017 4,233 2017 32,604 Mln kWh Revenue from own products sales ATOMENERGOPROMSBYT Revenue from purchased products sales Regulated agreements (power) 141 2016 6,389 MW per month Day-ahead market 2,321 2017 6,587 MW per month
Balancing market 312
2016 2,591 20162016 31,692839,318 Mln kWh KEY FACTORS INFLUENCING ACTUAL REVENUE INCREASE 2017 4,233 20172017 1,908,06532,604 Mln kWh
VOLUME FACTORS: PRICING FACTORS: 78,02028.6 2016 6,389 MW26.0 per month MLN RUBLES23.5 Increase in the actual volume of electricity produced Difference in the actual weighted average capacity 2017 6,587 MW per month by the Company and supplied at deregulated prices price under capacity supply agreements The increase in actual revenue from (day-ahead market and balancing market) by all electricity and capacity sales by blocks over 12 months of 2017 Rosenergoatom over 12 months of 2017 (if compared to the similar 8.6 7.5 6.6 6.6 period of 2016). 5.4 2.9 1.5 0.6 0.7 2016 159,373 2016 839,318
2017 164,754 VVER 2017 1,908,065 BN RBMK EGP
1. Without depreciation
2016 159,373 2017 164,754 03. Sustainability Management Annual report 2017 Rosenergoatom 126 — 127
45,981 1,509,615 127,563 1,556,578 MLN RUBLES MLN RUBLES MLN RUBLES MLN RUBLES The net profit of business The value of net assets as of The amount of assets of The value of net assets as of activities December 31, 2017. Rosenergoatom increased. December 31, 2017.
NET ASSET VALUE, MLN RUBLES INCREASE IN ROSENERGOATOM PRODUCED ELECTRICITY SUPPLY TO WECM AT DEREGULATED As of December 31, 2017, the PRICES BY NEW POWER UNITS PUT INTO COMMERCIAL OPERATION IN 2016-2017 net assets of Rosenergoatom exceeded the registered capital by 206,108 Indicator Actual Indicator Value Variation 1.85 times. BELOYARSK2016 3,790 NPP POWER UNIT No.4, NOVOVORONEZH2016 968 NPP-2 POWER UNIT No.1, MLN KWH As of December 31, As of December 31, This ratio positively characterizes the financial situation of MLN KWH MLN KWH The actual volume of electricity 2017 2016 2017 5,568 2017 6,124 Rosenergoatom and fully meets sold by Rosenergoatom in the Net assets 1,509,615 1,389,225 120,390 the statutory requirements for the WECM, including the Bilibino NPP. net asset value of an organization. 2016 3,790 2016 968 Registered capital, including: 815,841 793,122 22,719 2017 5,568 2017 6,124 Taking into account that the registered capital 793,122 793,122 0 net assets both exceeded the 412,867 registered capital and increased MLN KWH equity payment before registration of changes in 22,719 0 22,719 during the reporting period, we Electricity and capacity incorporation documents may say that the financial status of INCREASE IN THE ACTUAL MONTHLY INCREASE IN THE VOLUME OF ROSENERGOATOM payments over 12 months of Rosenergoatom is healthy. AVERAGE CAPACITY SUPPLY UNDER PRODUCED ELECTRICITY AND CAPACITY 2017 (including the Bilibino NPP, Net assets over registered capital 693,774 596,103 97,671 Atomenergopromsbyt, AtomSbyt, CAPACITY SUPPLY AGREEMENTS, SUPPLY BY OPERATIONAL POWER UNITS UNDER with VAT). MW PER MONTH REGULATED AGREEMENTS BALANCE SHEET STRUCTURE of expenses for connection to power grids (Ros- tov, Novovoronezh NPPs). 2016 2,591 2016 31,692 Mln kWh The amount of assets of Rosenergoatom 2017 4,233 2017 32,604 Mln kWh increased by 8% (127,563 mln rubles) in 2017. As of December 31, 2017, the non-current assets The increase in the amount of assets is due to value totaled 1,556,578 mln rubles, or 89% of the growth in the value of both non-current assets total asset value. 2016 2,591 2016 31,692 Mln kWh by 6%, or 82,941 mln rubles, and current assets 2017 4,233 20172016 6,38932,604 MW Mlnper kWhmonth 2017 6,587 MW per month by 32%, or 44,622 mln rubles. The value of current assets of Rosenergoatom increased by 44,622 mln rubles, or 32% in 2017. An increase in the value of non-current assets is The share of short-term financial investments 2016 6,389 MW per month caused by the growth in the value of buildings, in the Company's current assets considerably PROFIT ANALYSIS ASSETS2017 6,587 ANALYSIS MW per month machinery and equipment by 23%, or 137,292 increased in 2017 (by 34,465 mln rubles) due to mln rubles, due to commissioning of the Novov- lending to Atomenergoprom in line with Rosen- The net profit of business activities totaled According to the accounting balance sheet, the oronezh NPP power unit No. 6, and accounting ergoatom Financial Policy. 2016 839,318 45,981 mln rubles in 2017, which is 35,376 mln value of net assets as of December 31, 2017 2017 1,908,065 rubles more than the similar indicator of 2016. totaled 1,509,615 mln rubles. The growth in net (10,605 mln rubles of net profit). The net profit assets value of 120,390 mln rubles in 2017 was CHANGES IN ASSETS OF ROSENERGOATOM, MLN RUBLES 2016growth is 839,318supported by the increase in the due to the increase in the eligible assets value 2017sales income1,908,065 due to higher revenue. by 127,563 mln rubles resulting from higher 2015 122,380 1,348,290 Current assets fixed assets value. This was related to com- 2016 141,182 1,472,912 missioning of the Novovoronezh NPP power 2017 185,079 1,556,578 Non-current assets unit No. 6 and taking account of the expenses for connection of NPPs to power grids, as well as implementation of investment projects for extension of service lives of NPP units, and the STRUCTURE OF ACCOUNTS RECEIVABLE, MLN RUBLES program for ensuring safe and reliable opera- 2016 159,373 Advance payments for capital construction tion of existing power units. 2015 78,600 6,099 17,419 14,536 16,652 2017 164,754 Buyers and customers 2016 58,432 3,751 19,103 25,199 17,141 Bad debt provisions Advance payments for current operations 2017 60,213 3,578 26,041 17,339 19,047 2016 159,373 Other receivables 2017 164,754
2015 53,519 120,330 1,296,820 Long-term liabilities Short-term liabilities 141,087 84,977 1,388,029 2016 Capital and reserves 2017 143,306 89,884 1,508,466 2015 78,600 6,099 17,419 14,536 16,652 Advance payments for capital construction Buyers and customers 2016 58,432 3,751 19,103 25,199 17,141 Bad debt provisions Advance payments for current operations 2017 60,213 3,578 26,041 17,339 19,047 Other receivables
03. Sustainability Management Annual report 2017 Rosenergoatom 128 — 129
CHANGES IN LIABILITIES СOST MANAGEMENT IN 2017
The cost of Rosenergoatom property as of the depreciation deductions and provisions aimed Considerable cost optimization is only possi- value of adjusted free cash flow. Branches end of the reporting period totaled 1,508,466 at ensuring nuclear power plants safety at all ble on the basis of a systemic targeting and and structural units of the Headquarters mln rubles. The Company’s structure of sourc- stages of their life cycle and development, management of all enterprise resources and received individual tasks for reduction of es of funds is dominated by the equity – its and created in accordance with the Russian expenses. Expenses of structural units of the costs with inclusion in the KPI matrix. specific weight totals 87%. Federation Government Regulation dated Jan- Company’s Headquarters and branches are uary 30, 2002 No. 68 on Approval of Rules for controlled on a monthly basis, consolidated During the year, the branches performed The property value increased as a result of Funds Allocation by Operating Companies for estimates are analyzed (plan/actual), and constant monitoring of the expenses level, the increase in equity value by 120,437 mln Provisions Aimed at Ensuring Nuclear Power forecasts until the year end are made on a additional corrective measures were taken rubles due to construction of fixed assets Plants Safety at All Stages of Their Life Cycle quarterly basis. Pursuant to the target indica- if required. As a result, specific semi-fixed and construction work in progress through and Development. tors for 2017, the Company continued keeping costs were maintained on the level of 1,667 expenses under control both as part of the thousand rubles/MW, measured at the pric- administrative costs optimization program es of 2013, which is slightly lower than the and for the purpose of achieving the target level of 2016 (1,670 thousand rubles/MW). CHANGES IN LIABILITIES OF ROSENERGOATOM, MLN RUBLES
2015 53,519 120,330 1,296,820 Long-term liabilities Short-term liabilities 141,087 84,977 1,388,029 2016 Capital and reserves 2017 143,306 89,884 1,508,466
BUDGETING
In order to achieve key performance indicators, approved on the annual basis through corporate Rosenergoatom applies a systematic approach procedures in order to execute the Company’s to planning and accounting of incomes, costs, production program, and guarantee financing and cash flows. The budgeting process is of top-priority business and development areas. performed in line with the approved Unified Cost estimates are the documents laying the Industry-Level Procedure of Mid-Term Business basis for spending funds of Rosenergoatom Planning in Rosatom State Corporation and Its and its branches for the planned period. Organizations. The budget is detailed quarterly planning of the first year of the business plan Funds are spent strictly within the limits com- developed for five years. The process is run municated to structural units in accordance through the Distributed Planning and Budgeting with the approved consolidated income and System of Rosatom. expense estimates subject to adjustments made pursuant to the approved procedure. The The budget, income and expense estimates for Company is also engaged in operational finan- manufacturing and sales of products by types cial planning (planning horizon of 1 month). of activity across branches, Headquarters, and Spending is funded according to the cash flow Rosenergoatom as a whole are developed and budget. 03. Sustainability Management Annual report 2017 Rosenergoatom 130 — 131
201-4 3.2 INVESTMENT PROGRAM
THE COMPANY'S INVESTMENT ACTIVITY IN THE FORM OF CAPITAL The Company’s investment program for 2017 ROSENERGOATOM INVESTMENT was approved by the joint Order of the Russian The Power Engineering Division INVESTMENTS IS AIMED AT IMPLEMENTING THE RUSSIAN FEDERATION PROJECTS FUNDED FROM The estimated demand for Energy Ministry and Rosatom State Corpora- project portfolio funded from CIR PROGRAM FOR NUCLEAR POWER INDUSTRY COMPLEX DEVELOPMENT. investments to fixed capital tion dated December 29, 2017 No. 35/1/1388-P CONSOLIDATED INVESTMENT is dominated by the DPC project. in 2018 and in 2019–2022 on Approval of Rosenergoatom Investment The project milestones planned for is as follows (in mln rubles, RESOURCE (CIR) OF ROSATOM Program for 2018-2022 and Changes Made in 2017 were passed. without VAT): Rosenergoatom investment programs are pre- Investment activities of the Company are Rosenergoatom Investment Program Approved STATE CORPORATION. pared in full conformity with the strategic goals financed from the Company’s own funds, from by Russian Energy Ministry Order No. 1459 dat- 2018 106,526.52 of the Power Engineering Division of Rosatom the assets contributed by Rosatom State Corpo- ed December 30, 2016 . CIR funding totaled 2,266.2 mln rubles. 20192018 137,096.29106 526,52 State Corporation, aimed at providing con- ration, and borrowed funds. 2018 106,526.52 20202019 94,888.08137 096,29 sumers with electricity and heat produced at 2019 137,096.29 The planned amount of the investment program CIR funded projects implemented in 2017 20212020 65,751.3694 888,08 Russian nuclear power plants with guaranteed Pursuant to the Resolution by the General Stock- 2020 94,888.08 for 2017 totaled 160,252.12 mln rubles, the actu- (1,900.2 mln rubles allocated, with VAT): safety as a top priority of its activities. holder Meeting (Minutes No. 23 dated June 27, 20222021 88,034.4465 751,36 al amount of 2017 – 161,048.09 mln rubles. 2021 65,751.36 2017 with consideration of the Minutes of Rosa- 2022 88 034,44 • Rosenergoatom DPC construction – 1,878.9 2022 88,034.44 Distribution of functions among the parties tom State Corporation Management Committee Furthermore, the funds of the Rosatom State mln rubles, with VAT; involved in the investment process is regulated Meeting No. 27 dated September 14, 2017), Corporation’s asset contribution totaling 22,719.0 by the Investment Agreement between Rosa- Rosenergoatom profit of 8,458.39 mln rubles was mln rubles were channeled to investment projects • Co-60 production arrangement at RBMK-type tom State Corporation, Atomenergoprom, and channeled to fund projects and measures of the related to construction of NPP units. reactors – 21.3 mln rubles, with VAT. Rosenergoatom. investment program for 2017-2019.
INVESTMENT ACTIVITY 4% 4% 4% Investment projects for construction of NPP units 65% Projects and measures at existing power units: investment projects for service 29% 65% life extension of the power units pertaining to Generations I and II, Ensuring PROJECTS OF THE COMPANY'S SUBSIDIARIES INCLUDED INTO THE CONSOLIDATED BUDGET OF ROSATOM STATE 65% 29% 29% Safe and Reliable Operation of Existing Power Units CORPORATION IN 2017: Investment projects at spent nuclear fuel and radioactive waste handling facilities Other investment projects and measures: facilities conservation, research and Company Project Amount, Mln Rubles, VAT 2% Included 2% development operations 2% Atomenergoremont Acquisition of maintenance aids, jigs, fixtures and tools, etc. 123.1
Atomtechenergo Acquisition of equipment for start-up and commissioning, etc. 146.0 INVESTMENTS IN 2010-2017, MLN RUBLES AtomEnergoSbyt Supporting activities of last resort suppliers in the Kursk, Tver, Smolensk and Murmansk Oblasts 40.8 201,778.4 177,270.3 201 778,4 Changes in investments in 201,778.4 177 270,3 154,191.0 equity, mln rubles VNIIAES Creation of the monitoring system for engineering structures of NPP facilities, etc. 30.1 177,270.3 154 191,0 121,932.7 128,354.1 116,185.7 146,230.5 136,554.3 154,191.0 121 932,7 128 354,1 Changes in asset contribution, 128,354.1 116 185,7 Rusatom Service IT equipment acquisition, etc. 11.7 136 554,3 146 230,5 121,932.7 116,185.7 mln rubles 68,496.5 146,230.5 Atomtechenergo 136,554.3 58,207.5 57,208.2 68 496,5 55,297.2 68,496.5 58207,5 57 208,2 55 297,2 42,778.7 53,239.8 CONSYST-OS Acquisition of IT equipment and administrative support equipment 9.9 58,207.5 57,208.2 55,297.2 42 778,7 23,530.1 22,719.0 53 239,8 42,778.7 53,239.8 23 530,1 22 719,0 ZAES Acquisition of computer devices and uninterrupted power supply equipment 4.4 2010 2011 2012 2013 2014 2015 23,530.1 2016 22,719.0 2017 2010 2011 2012 2013 2014 2015 2016 2017 TOTAL 366.0 2010 2011 2012 2013 2014 2015 2016 2017 03. Sustainability Management Annual report 2017 Rosenergoatom 132 — 133
103-1 103-2 3.3 ENVIRONMENTAL IMPACT 103-3
THE COMPANY’S ENVIRONMENTAL POLICY IS AIMED AT ENSURING SUSTAINABLE
ENVIRONMENTALLY-FRIENDLY DEVELOPMENT OF THE NUCLEAR INDUSTRY, AND PROVIDING Pursuant to the Russian President Decree, the year of 2017 was THE LEVEL OF NPP SAFETY WHEN THE IMPACT ON THE ENVIRONMENT, PERSONNEL, AND named as the Year of Ecology and POPULATION WOULD BE MINIMAL IN THE SHORT AND LONG TERMS, THUS CONSERVING Specially Protected Natural Areas NATURAL SYSTEMS, AND SUPPORTING THEIR INTEGRITY AND LIFE-SUSTAINING FUNCTIONS.
MAIN GOALS AND OBJECTIVES • Self-assessment of NPP compliance with en- OF ENVIRONMENTAL POLICY vironmental laws and results of the environ- mental protection measures was organized and carried out; Rosenergoatom environmental policy ensures implementation of the basic provisions of the • New revisions were developed and enacted “The main change in the nuclear power industry in the Russian Federation Constitution and laws, defi- of STO 1.1.1.01.003.0761-2017 – Environ- recent decade is transfer to nition of main principles and obligations in the mental Management System of Rosenergoa- environmental information area of environmental protection, assurance of tom. General Provisions, Structure, Require- disclosure. Transparency helps environmental safety, and sustainable environ- ments, and STO 1.1.1.01.003.0762-2017 solving environmental problems mentally-friendly development of nuclear power – Environmental Management System of and ensuring broad support of the plants1. Rosenergoatom. Internal Audit; industry.”
• The action plan of Rosenergoatom and Rosa- SERGEY BARANOVSKY, ENVIRONMENTAL POLICY tom State Corporation was implemented for Chairman of Green Cross Inter- • The Kalinin NPP commissioned modular • The Leningrad NPP commissioned pumping Regional Public Environmental IMPLEMENTATION RESULTS arrangement of the Year of Ecology in 2017; treatment facilities at the outlet No.4 of the plants for process and storm water; Organization, Doctor of storm water drain of Stage 1; Engineering IN 2017 • Actions scheduled for 2017 by the Com- • Biological treatment facilities were upgraded prehensive Plan for Implementation of the • The Kola NPP acquired and assembled a at the Smolensk NPP. Neutralization and buri- 307-1 Environmental Policy of Rosatom State quick-mount oil-catching device at the diver- al (emplacement) of waste of hazard classes Corporation for 2016 and until 2018, and the sion canal to prevent oil products leakage to I to III stopped. All waste of hazard class III “New standards of safety and NPP production activities were carried out in industry-level Prioritized Action Plan for Re- the Molochnaya Bay (Imandra Reservoir). Silt was unloaded and transferred for disposal environmental friendliness, as well as the chosen direction to the unconditional compliance with standards and duction of Negative Impacts on Environment detention ponds No.1 and No.2 were over- from detention pond No.3 of the landfill for fuel cycle closure let us say that rules of the applicable environmental laws. of Rosatom State Corporation until 2020 hauled, and the oil product treatment com- non-radioactive industrial waste and con- 3,837 the nuclear industry is one of the NPPs were operating in a safe and reliable were taken (as refers to Rosenergoatom and MLN RUBLES plex was installed at the common discharge struction debris. 'greenest’ today. Nevertheless, we manner, making as low environmental impact operational NPPs). Environmental costs of NPPs pipe for treated sewage water of the outlet need to continue improvement as possible. totaled in 2017 No.2 of the oil-contaminated sewage water of technologies, safety and As part of the Environmental Policy imple- treatment facilities; economic attractiveness.” In 2017: mentation, the following major activities were performed: ALEXEY LIKHACHEV, • Positive opinions of the state environmental < 0.01 % CEO of Rosatom State Corporation expert review were received in relation to the • The Balakovo NPP stopped placing hazard The share of NPPs in the amount /CASE STUDY/ NPPS OF ENVIRONMENTAL EXCELLENCE materials substantiating licenses for power class III waste at the Landfill for NPP Waste of pollutant emissions into units operation; Containing Radionuclides within Tolerable atmospheric air by all Russian In accordance with the results of the Rosatom sponsored contest for Nuclear Industry Organization of Environmental Excellence, the second place Limits; enterprises did not exceed 0.01% was taken by the Balakovo NPP, the third place – by the Novovoronezh NPP, special nomination – the Kalinin NPP. The judging commission noted a considerable contribution made by the Company and its branches to environmental protection and ensuring environmental safety, which was evidenced by the materials presented at the contest. 1. The Company’s Environmental Policy (EP) is available at http://www.rosenergoatom.ru/environment_safety/environment/. 03. Sustainability Management Annual report 2017 Rosenergoatom 134 — 135
EMISSIONS OF NOX, SOX, AND OTHER SIGNIFICANT POLLUTANTS INTO ATMOSPHERE, INDICATING THEIR TYPE AND MASS, T
Indicator 2015 2016 2017
Sulfur dioxide 613.6 463.5 480.8
Carbon oxides 143.3 146.1 114.1
222.8 213.6 186.2 Nitrogen oxides (in NO2 equivalent)
Hydrocarbons 162.4(among them: 164.0 154.7 MAIN INDICATORS OF ENVIRONMENTAL IMPACT (excl. volatile organic compounds) 161.9 t of methane) (methane) (methane)
ATMOSPHERIC EMISSIONS OF POLLUTANTS efficiency of fuel combustion, use fuel oil of Volatile organic compounds 102.9 70.1 71.9 higher quality (with a lower sulfur content), Other gaseous and liquid 23.8 24.1 23.0 The amount of atmospheric pollutants emis- improve technologies used in painting, put sion by the nuclear power plants does not ex- into operation efficient gas cleaning and dust Total 1,268.8 1,081.4 1,030.7 ceed the permitted values, and is considerably capturing units. lower than the limits set by the environmental authorities. The bulk of pollutant emissions 306-1 EMISSIONS OF OZONE-DESTROYING SUBSTANCES (ODS) IN 2015-2017 at NPPs are attributed to boiler houses, boiler DISCHARGE OF POLLUTANTS facilities of health and recreation resorts, and INTO WATERS WHERE: standby diesel generator plants started on an HCFC-22 – difluorochloromethane occasional basis for scheduled test runs. Gross 303-2 Name of ODS ODS Emitted, T (ODP = 0.055); atmospheric emissions of pollutants at all HCFC-141b – 1,1-dichloro-1- NPPs did not exceed the standard values: Nuclear power plants are large water 2015 2016 2017 consumers, therefore the issues of water fluoroethane (ODP = 0.11); • 1,069 t of air pollutants (23.3% of the amount consumption and water disposal play an HCFC-22 7.446 10.729 11.107 allowed in the reporting year) were emitted; important role in environmental activities. HCFC-142b – 1-chloro-1,1- 7.446х0.055=0.410 10.729х0.055=0.590 11.107х0.055=0.611 difluoroethane (ODP = 0.065). Almost all water extracted from water bodies Total, including ODP • Amount of solid pollutants – 38 t, gaseous (over 99%) was used at NPPs as industrial HCFC-141b 1.670 1.745 1.550 and liquid pollutants – 1,031 t; water (cooling of process media in turbine condensers and heat exchange equipment), Total, including ODP 1.670х0.11=0.184 1.745х0.11=0.192 1.550х0.11=0.171 • Gas cleaning and dust capturing units and returned to water bodies. HCFC-142b 0.805 0.015 2.853 received 153.8 t of pollutants, 151.1 t out of them were collected and decontaminated Nuclear power plants do not make a consid- Total, including ODP 0.805х0.065=0.052 0.015х0.065=0.001 2.853х0.065=0.185 (above 98.2% collecting efficiency). erable impact on water sources. The water 0.646 0.783 0.967 sources used by nuclear power plants do not Total emissions, including ODP Nuclear power plants strive to further reduce belong to protected areas. Nuclear power harmful effect on the atmosphere: we are plants have no effect on the wetlands includ- improving the technology used for increasing ed in the Ramsar List.
VOLUME OF POLLUTANT EMISSIONS INTO ATMOSPHERE BY NUCLEAR POWER PLANTS USE OF WATER BY SOURCES, MLN M33 303-1 IN 2015-2017, T
Extracted Water by Sources 2015 2016 2017 1,314 4,291 2015 Standard value 2016 1,132 4,267 Potable water from natural water 11.8 (among them 11.5 (among them 11.1 (among them Actual emissions 2017 1,069 4,585 sources 8.1 – ground water) 8.0 – ground water) 7.5 – ground water)
Potable water from water supply 7.3 6.8 5.9 utility systems and other water supply TOTAL VOLUME OF MULTIUSABLE AND REUSABLE WATER, MLN M3 303-3 systems
Fresh process water from natural 1,683.3 1,665.6 1,679.0 Water Consumption 2015 2016 2017 bodies of water
In water recycling systems 31,203.4 32,469.1 32,618.3 Sea water 5,149.5 5,234.4 4,969.7
In reused water systems 410.4 474.1 456.7 Total 6,851.9 6,918.3 6,665.7 03. Sustainability Management Annual report 2017 Rosenergoatom 136 — 137
SEA / POTABLE WATER WITHDRAWAL AND DISCHARGE In 2017, the total of 6,255.0 mln m3 were As of the beginning of 2017, there were DISTRIBUTION OF WASTE removed, and the share of contaminated waste 5,101.9 t of waste, and 6,552 t as of the year GENERATED IN 2017 BY water was equal to 0.03%. end. HAZARD CLASSES NPP Water Withdrawal Discharge Bodies 6,244.8 mln m3 of partially clean waste water In 2017, nuclear power plants transferred 42.02% 49.09% and 7.9 mln m3 of waste water treated to stand- waste to other organizations for: Balakovo Saratov Reservoir ard quality were discharged into water bodies Beloyarsk Beloyarsk Reservoir in 2017, including: • Treatment – 2,259 t;
Olkhovskoye Swamp • 5.6 mln m3 at the mechanical water treat- • Disposal – 10,284 t; ment facilities; Bilibino Reservoir on Bolshoi Ponneurgen Stream • Neutralization – 7,130 t; • 2.3 mln m3 at the biological water treatment Bolshoi Ponneurgen Stream facilities. • Burial – 10,998 t. 8.67% Kalinin Kalinin NPP Reservoir (heat sinks) 0.11% The discharge volumes of polluted waste Waste is sourced from auxiliary structural 0.11% Volchina River, Khomutovka River waters are steadily reduced owing to consist- units and units supporting nuclear power ent modernization and reconstruction of waste plants operation (maintenance and repair of 0.11% – Class 1 Class 4 Kola Glubokaya Bay of the Imandra Reservoir water treatment facilities at NPPs. buildings, equipment, NPP personnel servic- 0.11% – Class 2 Class 5 ing, waste water treatment, metal and wood Class 3 Molochnaya Bay of the Imandra Reservoir processing). All production and consumption HANDLING PRODUCTION waste is emplaced at specially equipped Kursk Seym River AND CONSUMPTION WASTE sites, in special storages, and its disposal is WASTE MANAGEMENT controlled by ecological services of nuclear Leningrad Koporye Bay in the Gulf of Finland, Sista River, Kovashi River 306-2 IN 2017, T power plants. Kopanskoye Lake As far as handling production and consumption waste (hereinafter – waste) is concerned, NPPs 30,669.8 35,111.6 ENVIRONMENTAL COSTS Peipia River effect their environmental protection activities in accordance with legislation of the Russian 307-1 Novovoronezh Don River Federation in the area of environmental protec- tion, and based on the license and approved The environmental costs incurred by NPPs Rostov Tsimlyansk Reservoir draft standards for waste generation and limits include expenses for protection and rational
Heat sink of the Tsimlyansk Reservoir on waste emplacement. use of water resources (including payments to other enterprises for acceptance and 5,101.9 Smolensk Reservoir on Desna River Like any other enterprises, nuclear power treatment of waste waters), atmospheric plants generate waste of five hazard classes, air, environmental protection against the ad- 6,210.8 resulting from their production activities. In verse impact of production and consumption 527.4 1,808.6 In 2017, NPP wastewater disposal was within All water reservoirs used for process and 2017, nuclear power plants produced 35,112 waste (including payments under contracts 996.9 the limits of water balance and the amount recycling water supply at nuclear power plants t of waste, which is 1,791 t less than in 2016 on transfer of waste to specialized organiza- enerate of generated power, and totaled 94% of the (except for the Leningrad and Bilibino NPPs) 496 % (36,903 t). tions). Handed over to other volume of water used. It is a good indicator are included into the List of Water Reservoirs enterpr ses The share of recycled and reused of water resources use. Water resources were (including Water Reservoirs with Capacity Ex- water averaged 496% of the total 527.4 – t l e used in compliance with the limits estab- ceeding 10 mln m3) subject to development of water intake in the reporting year. PRODUCTION AND CONSUMPTION WASTE BY CLASSES, T Buried at own facilities lished by environmental authorities. Waste the rules of use for each water reservoir1. Available as of the year end waters of household sewage and storm water 303-3 Available as of the year beginning drainage were treated before their discharge 306-5 Indicators 2015 2016 2017 into surface waters at all NPPs. Control of the Placed at own facilities content of pollutants entering surface water Operation of waterworks at federal water bod- Class 1 47 53 39 with waste waters from NPPs was effected ies imposes additional responsibility on nuclear 131 68 39 in accordance with duly agreed and approved power plants for preservation and rational use Class 2 rules. of water resources, cleanliness of water protec- Class 3 2,795 2,296 3,045 The bulk of waste (91.1%) tion areas, etc. generated in 2017 consisted of 12,782 14,931 14,754 Class 4 class 4 waste (low hazardous waste) and class 5 waste (virtually Class 5 29,501 19,555 17,234 non-hazardous waste).
1. Approved by the Russian Federation Government Directive No.197-r dated February 14, 2009. 03. Sustainability Management Annual report 2017 Rosenergoatom 138 — 139
A fine in the amount of 30.0 thousand rubles following types of the adverse environmental ENVIRONMENTAL RISKS ENVIRONMENTAL AUDIT AND was imposed on the Leningrad NPP in 2017 for impact: MANAGEMENT ENVIRONMENTAL MANAGEMENT violation of the environmental regulations. A high level of nuclear power • Atmospheric emissions of pollutants; SYSTEM (EMS) CERTIFICATION plants safety has been achieved recently. NPP radiation impact Applicable legislation provides for a fee for the The most efficient scientific approach allow- on environment through its adverse environmental impact as a form of • Discharge of pollutants into waters; ing for quantitative assessment of the impact With a view to achieve its goal and implement actual emissions and discharges partial compensation for the damage caused made by various human-induced factors on the the basic principles of the Environmental Princi- of radioactive substances into to the environment by a natural resource • Production and consumption waste emplace- environment and human health, is a risk analysis ples, Rosenergoatom assumed the obligation to atmospheric air and bodies user. Nuclear plants are obliged to pay for the ment. methodology. Since the late 1980s, this method- introduce and support best practices of environ- of water is significantly below ology was successfully applied in all economical- mental management according to international allowable values and does not ly developed countries as one of the top priority and national standards in the area of environ- exceed the minimum significant and most efficient tools of scientific substan- mental management. dose equal to 10 mSv per ENVIRONMENTAL COSTS, MLN RUBLES tiation of managerial solutions in the area of year. The radiation risk for the environmental and health protection. The Company ensures environmentally safe population is guaranteed to be 2015 3,406 production of power and heat at NPPs, im- unconditionally acceptable with 2016 3,447 such values (less than 10-6). This In the recent years, the Nuclear Safety Institute proves the EMS and certifies it according to the 2017 3,837 allows us to consider the actual under the Russian Academy of Sciences com- requirements of the ISO 14001:2015 internation- level of emissions and discharges pleted a series of scientific projects that allowed al standard, and the GOST R ISO 14001-2016 of NPPs as optimized. to perform comparative analysis of radiation national standard, which is an efficient way ENVIRONMENTAL COSTS BY AREAS, MLN RUBLES risks imposed by Russian NPPs operation, and of confirming the Company’s commitment to chemical risks related to coal-fired CHPPs, other ideas of environmental protection, as well as an industrial facilities and human-induced factors opportunity to increase competitive ability, and Item Current Payments for the health of the Russian population. This to improve interaction with stakeholders and (Operating) for Environmental kind of research in evaluation of radiation and general public. Expenses Services chemical risks for human health in NPP locations were carried out in the Sverdlovsk and Voronezh In 2017 inspection and/or recertification audits Protection of atmospheric air and prevention of climate change 148 15 Oblasts, and where it was decided to construct of the EMS were conducted at Rosenergoatom Collection and treatment of waste waters 1,050 118 new NPP units. The outcomes were taken into Headquarters and operating NPPs. Inspection account in preparation of the Company’s environ- audits were performed by highly qualified ex- Waste handling 366 166 mental policy, and development of Rosenergoa- perts holding national and international accredi- tom Environmental Management System (EMS). tation, who appraised a high level of work organ- Protection and rehabilitation of lands, surface and ground waters 118 20 ization in the area of shaping and development Protection against noise, vibration, and other types of impact 0 2 of the EMS of Rosenergoatom and operational ECOLOGICAL ACCEPTABILITY NPPs. The validity of all environmental certifi- 19 19 Preservation of biodiversity and protection of natural areas cates of Rosenergoatom was confirmed. Ensuring environmental radiation safety 1,213 348 Rosenergoatom developed program activities in key areas, including environmental, along with Research and development activities aimed at reducing adverse human-in- 1 4 corporate standards which reflect short-term duced impact goals and comply with the Company’s strategic Miscellaneous areas 170 60 concept on EMS improvement.
The following documents were developed and enacted to harmonize the environmental activ- ities of NPPs with the requirements of Russian FEE FOR ADVERSE IMPACT ON ENVIRONMENT, THOUSAND RUBLES laws and regulatory acts of various levels: The Federal Medical-Biological Agency of Russia identified an • Basic Rules of Ensuring Environmental Protec- administrative offence at the Kola tion at NPPs; Item 2015 2016 2017 NPP in the reporting year.
Fee for allowable and excessive emission (discharge) of pollutants: production 13,755 10,315 6,748 • Procedural Guidelines for Arrangement of Indus- and consumption waste emplacement trial Environmental Monitoring at NPPs;
Funds (charges) and fines recovered in compensation for damage caused by 0 60 30 • Guidelines for Organization of Work during Pro- breach of environmental legislation duction and Consumption Waste Handling. 03. Sustainability Management Annual report 2017 Rosenergoatom 140 — 141
103-1 3.4 RADIATION EFFECT 103-2 10,28103-3 ON PERSONNEL AND POPULATION 9,36
8,57
7,81 R 7,1 MAINTENANCE OF THE HIGHEST POSSIBLE RADIATION SAFETY LEVELAll NPPsFOR THE PERSONNEL SLIDING (OVER THREE YEARS) COLLECTIVE RADIATION EXPOSURE AT NPPS BY TYPES OF 6,48 R Current radiation exposure of OF NPPS AND THE POPULATION6,07 IN THEIR LOCATION AREAS, AND PREVENTION OF ANY REACTOR UNITS, PERSON-SV/UNIT Non-serial (EGP, AMB, BN) personnel at nuclear power plants RADIOACTIVE CONTAMINATION5,4 OF THE ENVIRONMENT ARE THE PRIORITIZED OBJECTIVES with VVER and BN type reactors almost reached the optimal level OF ROSENERGOATOM. 4,83 10.28 4,52 comparable to similar indicators 4,06 4,0 of foreign NPPs, slight deviations 3,85 9.36 3,67 3,57 3,53 10.28 from which are usually defined by 3,4 3,31 3,34 3,34 3,14 3,19 3,13 3,16 3,19 3,08 8.57 the number and duration of repairs The Company strictly abides2,91 by sanitary rules, The Company maintains a trend of decreasing 2,94 2,68 9.36 during the year. 2,45 radiation safety standards and rules 2,2with con- the personnel exposure as a result of its activ- 7.81 1,86stant monitoring of the radiation situation1,87 at ities aimed at improving the radiation situa- 8.57 R 1,6 1,72 1,61 0.06-0.20 7.1 1,56 1,51 1,47 1,45 NPPs and1,32 in adjacent1,36 1,31 areas,1,33 personnel doses, tion at the process equipment1,38 1,31 and1,3 in process1,28 1,26 All NPPs 1,16 1,15 1,24 ΜSV / H 7.81 1,03 0,96 6.48 R radioactive substances emission and discharge0,81 0,78rooms,0,69 reducing0,73 the personnel exposure to Gamma radiation intensity 0,64 0,63 0,59 0,55 0,53 0,51 0,51 0,53 6.07 R 1,13values; consistently conducts the policy of ionizing radiation fields, as well as the organi- 7.1 Non-serial (EGP, AMB, BN) 1,01 1,01 All NPPs 0,84 0,85 0,77 0,78 0,77 implementation and further development0,71 0,63of the zational measures0,59 0,6 for streamlining the radia- The radiation environment in the 5.4 0,56 0,53 0,57 0,57 0,52 0,49 0,47 0,46 0,51 0,51 6.48 R methodology on radiation protection optimi- tion protection at nuclear plants. areas of NPPs shows natural 6.07 4.83 Non-serial (EGP, AMB, BN) zation at nuclear power plants, which consists background levels that are typical 4.52 00 00 02 02 0 0 0 0 0 0 10 10 12 12 1 1 1 5.4 for Russia. 4.06 4.0 in maintaining individual exposure doses and 3.85 7 7 01 01 0 0 0 0 07 07 0 0 11 11 1 1 1 1 17 3.67 4.83 3.4 3.57 3.53 number of exposed persons on the lowest 4.52 3.31 3.34 3.34 3.14 3.19 3.13 3.16 3.19 3.08 2.91 2.94 possible levels taking into account economic 4.06 4.0 2.68 3.85 and social factors. 3.67 2.45 3.4 3.57 3.53 2.2 3.31 3.34 3.34 3,38 1.86 3.14 1.87 3.19 3.13 3.16 3.19 1.72 3.08 2.94 1.6 2.91 1.61 1.56 1.36 2.68 1.51 1.47 1.45 1.38 201 1.32 1.31 1.33 2.45 1.31 1.3 1.28 1.26 1.261.24 3,23 1.16 1.15 2.21.03 0.96 RESULTS OF 2017 IN RADIATION3,19 SAFETY MAINTENANCE 403-3 0.81 201 1.87 0.78 0.69 0.73 0.64 3,06 1.86 0.63 0.59 0.59 3,11 0.55 0.53 0.51 0.51 0.53
2,99 1.72 1.13 1.6 1.61 1.56 2017 1.01 1.01 1.36 1.51 1.47 1.45 1.38 2,76 1.32 1.31 1.33 1.31 1.3 18 NOT EXCEEDED MORE THAN 90% OF NPP PERSONNEL 0.84 0.85 0.77 1.160.78 1.150.77 0.71 1.28 1.26 1.261.24 Лен 2,61 1.03 0.960.63 0.56 0.53 0.57 0.59 0.6 0.57 0.52 0.51 0.51 2,23 0.49 0.47 0.46 17,4 The basic exposure dose limits among personnel were not exposed above the individual dose limit of 0.81 0.78 0.69 0.73 0.64 0.63 0.59 0.590.55 0.53 0.51 0.51 0.53 at all NPPs were not exceeded 5mSv set for the population 1.13 18 1.01 1.01 Бил 0.84 0.85 0.78 00 0.77 00 02 0.77 02 0 0.71 0.63 0 0 0 0 0 10 10 12 12 1 1 1 16,6 1,29 0.56 0.53 0.57 0.59 0.6 0.57 0.52 0.49 0.47 0.46 0.51 0.51 1,24
1,18 7 7 01 01 0 0 0 0 07 07 0 0 11 11 1 1 1 1 17 0,76 0,78 0,72 0,67 18 ELIMINATED 0,67 NO UNAUTHORIZED DISCHARGE 0,64 0,65 0,64
Кур 0,59 0,57 0,56 0,49
Unauthorized exceeding of the reference level of the of radioactive nuclides0,42 into the environment took
15,97 0,37
0,34 00 00 02 02 0 0 0 0 0 0 10 10 12 12 1 1 1 0,33 0,31 0,26 0,16
individual exposure dose (mSv) was eliminated place 0,15 0,15 18 7 7 01 01 0 0 0 0 07 07 0 0 11 11 1 1 1 1 17 Смл 15,93 COLLECTIVE RADIATION EXPOSURE AT NPPS IN 2015-2017, PERSON-SV/UNIT LOWERВсе АЭС THAN КурAPPLICABLEСмл STANDARDSЛен Бил Нво Кол Бал Клн Бел Рст 3.38 17 Gas-aerosol emissions by NPPs and radioactive substances discharge into water bodies were considerably lower The maximum individual exposure Нво 201 15,02 than applicable standarts 3.23 dose among NPP personnel does 3.19 201 3.38
3.06 not exceed the target indicators 3.11 16 2.99 Кол 2017 2.76 201 set for nuclear plants.
14,07 18 3.23
Лен 2.61 3.19 MAXIMUM INDIVIDUAL DOSES AT NPPS, MSV 17,4 2.23 201 3.06
16 3.11 Клн 2.99 1 18 2017 Бил 18 2.76 2.61 Лен 16,6 1.29 2.23 16 17,4 1.24 1.18
Бал 0.76 0.78 0.72 0.67 13,2 18 0.67 0.64 0.65 0.64 18 18 18 0.59 18
17.4 Кур 0.57
17 18 16.6 0.49 0.56 15.97 15.93 0.42 16 16 16 Бил 0.37
15.02 15,97 0.34 15 14.07 0.33 1.29 0.31 13.8
15 16,6 0.26 13.2 Бел 0.16 1.24 0.15 Target value 0.15 1.18
(бл. 1-2) 9,75 18 0.76 0.78 9.75 10 0.72 10 0.67 Смл 18 0.67 0.64 0.65 Value of 2017 0.64 7.46 Кур 0.59
15,93 0.57 0.56 0.49 6.13
All NPPs Kur NPP Smo NPP Len NPP Bil NPP Nvo NPP Kol NPP Bal NPP0.42 Kln NPP Bel NPP Rst NPP
15,97 0.37 Бел 10 Целевой 0.34 0.33 0.31 0.26 0.16 0.15 (бл. 3-4) 7,46 17 0.15 показатель Нво 18 Смл 15,02 10 Показатель 15,93 Рст en l ur ml o ol ln al Bel Bel Rst All NPPs Kur NPP Smo NPP Len NPP Bil NPP Nvo NPP Kol NPP Bal NPP Kln NPP Bel NPP Rst NPP 6,13 2017 16 (un. 1-2) (un.Кол 3-4) 17 76 Нво 14,07 72.5 15,02 16 Клн 16 Кол 1 76 14,07 72.5 16 Бал 16 Клн 13,2 1 Бел 15 16 (бл.Бал 1-2) 9,75 13,2 Бел 10 Целевой Бел 15 (бл. 3-4) 7,46 показатель (бл. 1-2) 9,75 10 Показатель БелРст 10 Целевой 6,13 2017 (бл. 3-4) 7,46 показатель
10 Показатель Рст 6,13 2017 03. Sustainability Management Annual report 2017 Rosenergoatom 142 — 143
RADIATION CONTROL Constant radiation control at NPPs, including AUTOMATED SYSTEM OF INDIVIDUAL DOSIMETER CONTROL THE ASIDC KEEPS RECORD OF the safety barriers integrity control, is ensured POPULATION EXPOSURE AN EMPLOYEE’S INDIVIDUAL Radiation control is aimed at determining through the use of the NPP radiation control DOSES IN AREAS OF NPPS ARE DOSE: the level of compliance with radiation safety system (RCS). CONSIDERABLY LOWER THAN principles and standard requirements, including THE ADMISSIBLE VALUES ASIDC: Information about personnel exposure at NPPs and • During 1 year; non-exceedance of specified limits of doses and In order to ensure compliance of the radiation Balakovo NPP contractors that was shaped on the basis of NPP • During 5 years; admissible levels for normal operations, as well control efficiency with the current requirements • Maximum emission of inert Novovoronezh NPP ASIDC data is transferred in the electronic format • During the whole period of labor as procurement of the information required for at all stages of the NPP life cycle, it is planned to radioactive gases per year Smolensk NPP established by Russian FMBA to: activity. Belgorod NPP optimizing protection and making decisions on upgrade the RCS at power plants. The upgrade ≤ 30% of the standard value Rostov NPP Rosenergoatom • the Unified State System for Control and Accounting interference in case of radiation accidents. is carried out in a scheduled manner in line with • Maximum emissions of Bilibino NPP Crisis Center of Personnel and Population Exposure Doses the programs. NPP radiation control organiza- iodine compounds ≤ 3% of the Leningrad NPP • the territorial bodies of state sanitary and epidemio- For control of dose loads and radiation risks, tion (scope, frequency, control points, perform- standard value Kalinin NPP ASIDC logical supervision (on an annual basis) Kola NPP ASIDC • Rosatom in the amount and procedure defined by the Company’s NPPs use the automated system ers, and result record-keeping) is determined by • Maximum aggregate discharge Kursk NPP ASIDC Form 10 RTB-5 (Information on Radiation and Toxic index ≤ 0.65 of individual dosimeter control (ASIDC) and the relevant rules approved by regional directorates Headquarters Safety Status of Organization) for industry-level automated workstation calculating individual of the Federal Medico-Biological Agency (FMBA) statistical survey radiation risk (AWCIR). of Russia, which perform independent random radiation control of the natural environment In 2017, a series of measures for implementation locations and locally produced food items. at the NPPs of the best practices in the sanitary admittance regime, including application of In order to ensure compliance of the radiation INERT RADIOACTIVE GASES EMISSION BY NPPS IN 2015-2017, % OF PERMISSIBLE VALUE CCTV for control of compliance with the require- control efficiency with the current requirements ments for radiation safety, upgrade of stationary at all stages of the NPP life cycle, it is planned sanitary air locks, etc. to upgrade the RCS at power plants. The up- 28.6 28.3 201 26.0 grade is carried out in a scheduled manner in 201 The maximum values characterizing industrial line with the programs. NPP radiation control 2017 emissions of radionuclides by NPPs into the organization (scope, frequency, control points, environment received with the use of a conserv- performers, and result record-keeping) is deter- 8.4 7.7 6.6 ative approach to accounting of emissions and mined by relevant rules approved by regional 5.8 5.3 5.3 2.9
discharges (consisting in presumed presence directorates of the Federal Medico-Biological 1.4 0.5 of radioactive substances in emissions and Agency (FMBA) of Russia, which perform inde- discharges, even if they are not observed by re- pendent random radiation control of the natural R R spective instruments and techniques) are at the environment locations and locally produced level of 0.5 of the lower measurement limit. food items.
KEY FACTORS OF RADIATION IMPACT OF NPPS ON POPULATION AND ENVIRONMENT
Emission of radioactive substances to atmosphere Discharge of radioactive substances to water bodies by NPPs by NPPs
Limited by Rostekhnadzor regulations set for NPPs
In 2017, Rosenergoatom continued implementing In 2017, the Guidelines for Development of Limits for the Action Plan for Introduction of Guidelines for Radioactive Substances Emission into Water Bodies Development and Establishment of Permissible for Water Users developed by Rostekhnadzor and Standards for Radioactive Substances Discharge enacted from February 27, 2017 were approved for to Atmosphere by Rosatom State Corporation. The execution in 2017. Pursuant to the Guidelines, nuclear Action Plan implementation is coordinated by a task plants performed radiation and engineering survey of force comprised of representatives of Rosenergoatom, the sources of radioactive substances discharge to the Scientific and Engineering Center for Nuclear and water bodies by NPPs. Radiation Safety, Russian FMBA, RPA Typhoon, VNIIAES. 03. Sustainability Management Annual report 2017 Rosenergoatom 144 — 145
EMISSIONS OF INERT RADIOACTIVE GASES (IRG) AND IODINE-131 INTO ATMOSPHERE IN 2017 • Satisfactory radiation safety situation at NPPs; ities, regulatory and procedural documents, and technical means which provide for accounting For the entire period of NPPs • Minimal impact of operational NPPs on the and control, and prevention of unauthorized operation, there were no losses, NPP IRG 131I radiation situation in the controlled access operations with nuclear fuel at all stages of its theft, or unauthorized use of areas and radiation control areas; handling at NPPs. nuclear materials. TBq % of Allowable MBq % of Allowable Emissions Emissions • Zero level values of radionuclides content Physical inventory count of nuclear materials
Balakovo 22.9 3.3 73.7 0.4 and specific activity in the environment, and takes place in order to comply with the pro- gamma radiation intensity in the controlled cedure for accounting and control of nuclear 1 Beloyarsk 1.9 0.5 25.7 0.1 access areas and radiation control areas; fuel at the places of storage and use of fuel Bilibino 516.3 28.3 163.31 0.05 assemblies. • Unconditionally acceptable radiation risk for Kalinin 20.5 3.0 126.4 0.7 the population living in the areas of NPPs.
Kola 14.7 2.1 62.8 0.4 HANDLING RADIOACTIVE WASTE AND SPENT NUCLEAR FUEL Kursk 480.2 13.0 1,008.3 1.1 NONPROLIFERATION OF NUCLEAR Leningrad 281.7 9.5 245.6 0.4 MATERIALS Rosenergoatom creates new and upgrades 45.0 6.6 402.0 2.2 Novovoronezh the existing RAW processing plants, storage Rostov 83.8 14.2 33.7 0.2 Nonproliferation of nuclear materials is en- facilities construction at NPP sites ensuring sured through the Company’s system of state environmental protection throughout their life Smolensk 658.1 0.5 135.0 0.01 accounting and control of nuclear materials. cycles, and during decommissioning. All opera- This system functions in full compliance with tions related to RAW are carried out in compli- the requirements of international and Russian ance with the applicable federal laws. RADIATION CONTROL SYSTEM regulations and is under control of Rosatom State Corporation and Rostekhnadzor. The system comprises a set of organizational activ- Process radiation monitoring Automated radiation monitoring system used outside NPP facilities Radiation monitoring of NPP rooms and facilities Automated radiation control system used at NPP and HANDLING RADIOACTIVE WASTE AND SPENT NUCLEAR FUEL its facilities Radiation control of radioactive contamination On-line radiation monitoring and laboratory analysis Spent Nuclear Fuel (SNF) Management Radioactive Waste (RAW) Handling equipment Radiation monitoring of environment Automated system of individual dosimeter control • Timely removal from the Company’s nuclear plant • Gradual reduction of volumes and production sites • Conditioning that ensures safe temporary storage of • Ensuring nuclear and radiation safety during storage RAW at NPPs and its further transfer to burial facilities and handling of SNF of the National Operator for Radioactive Waste Man- Major requirements for organization, con- submitted in radiation hygienic data sheets agement. trolled parameter range, frequency, tech- of relevant organizations and annual reports niques, and methods of radiation control of about radiation environment at NPP loca- the environment in the areas of the Com- tions. pany’s NPPs are defined by the Procedural RAW MANAGEMENT AND CONDITIONING TECHNIQUES USED AT NPPS Guidelines for Organization of Radiation Regular measurement of radioactive sub- Control in Nuclear Power Plants Location stances concentration in the atmosphere Areas, coordinated with the Russian FMBA. and heat sinks, measurement of soil and Radiation control of the environment at plant activity, and food stuff at the control LIQUID RAW SOLID RAW • Deep evaporation • Burning the location of NPPs is exercised accord- points located at a distance of 50 km from • Cementation • Compaction ing to the rules for radiation control taking NPP confirm the absence of a detectable • Bituminization • Fragmentation into account the type of reactor units and impact of NPP operation on the condition of • Ion-selective treatment • Decontamination particulars of their locations. The results are objects of outside environment: • Melting
1. Actual discharge of radioactive iodine was not registered during the year. The calculated value equal to the product of 0.5 of the lower measurement limit times the aggregate emission amount. 03. Sustainability Management Annual report 2017 Rosenergoatom 146 — 147
103-1 3.5 HR POLICY 103-2 103-3 EU25
RESULTS OF 2017: SAFETY WAS ENSURED DURING • The first SNFA (RBMK-1000) was dismantled ”ROSENERGOATOM STRENGTH IS IN CONTINUITY OF THE TRADITIONS INHERITED FROM SNF AND RAW MANAGEMENT. at the SNF container storage and handling OUR FOUNDERS. PRIORITIES OF SAFETY, EFFICIENCY, QUALITY OF WORK ARE PASSED complex being constructed at the Smolensk • RAW production was reduced in 2017 by 3% NPP (November 2017); DOWN FROM GENERATION TO GENERATION OF NUCLEAR EXPERTS.THIS IS A CLUE TO SAFETY versus 2016; OUR SUCCESS AND CONFIDENCE IN OUR FUTURE.” • Construction of RAW processing complexes • SNF volumes removed from NPP sites corre- continued at the Kursk and Leningrad NPPs; ANDREY PETROV, spond to the level planned for 2017; CEO, Rosenergoatom • 636 t of metal waste contaminated with radi- • In 2017, preparation was ensured for removal oactive substances were removed from NPP of 3 trains with SNF from the Beloyarsk NPP sites (Balakovo, Kalinin, Kola, Kursk, Lenin- AMB reactors, and 2 trains with SNF, by 6 grad, and Smolensk NPPs). Human capital is the most valuable re- One of the focuses of the Company’s HR policy ACCOUNTABILITY transport packages TUK-84/1 in each were source of the nuclear industry due to its is development of the talent pool, which stipu- removed to PO Mayak; As part of the Federal Target Program for high technology intensity and a long cycle lates interaction with school children, students Ensuring Nuclear and Radiation Safety for of qualified staff training. Rosenergoatom and young experts, as well as personnel of • Trial removal of 18 SNFAs (VVER-1000) in a 2016-2020 and until 2030, federal RAW were HR policy aims at providing competent and foreign customers and construction suppliers of new transport package (TUK-1410) from the transferred for further burial in 2017: 1,400 m3 highly-professional employees to the Com- Russian NPPs. Balakovo NPP to PO Mayak; from the Balakovo NPP, 1,719.2 m3 from the pany and the industry as a whole to achieve Smolensk NPP; treatment of federal liquid RAW strategic objectives and economic stability. The Company’s average headcount is annually • Trial removal of 18 SNFAs (VVER-1000) with was arranged at the Balakovo, Kola, Novovor- decreasing (with unconditional compliance with EFFICIENCY enrichment of 4.4% in transportation packages onezh, Smolensk NPP – 955 m3, solid RAW – The principles of equality and non-discrim- the principle of safe operation of NPPs) pursuant TUK-13 from the Kalinin NPP to GKhK with the from the Balakovo, Leningrad, Smolensk NPPs ination lay the basis for Rosenergoatom to to the instructions of the Russian Federation Gov- use of the SNFA burn-up measurement plant; – 1,210 m3. maintain the labor conditions that allow for ernment and Rosatom State Corporation related all employees to equally and fully unlock to improvement of labor productivity. their potential. As a responsible employer, the Company primarily acts in line with the Rosenergoatom activities are underpinned by uni- Russian Federation Social Policy standards, fied industry-level values of Rosatom State Cor- ensures compliance of labor conditions with poration and its organizations. In case of absence ONE TEAM high standards of safety, and cares about of clear instructions, decisions are made on the social welfare and additional social support of basis of the values. Knowledge of and adherence its employees1. to the values are mandatory for all employees of the nuclear power industry.
RESPECT
BASIC PERSONNEL INDICATORS (AS OF DECEMBER 31, 2017)
1,956 201 Total number of fired 3,981 employees 1,611 201 2,921 2017 Total number of hired 1,133 ONE STEP AHEAD employees 1,790 36,435 Total number of employees 34,655 102-16 (average headcount) 33,886
1. Detailed description of social programs for the Company’s employees is given in Section 3.7. 2. The main personnel characteristics are provided in Appendix 14. 03. Sustainability Management Annual report 2017 Rosenergoatom 148 — 149
In 2017, the Company was actively promoting PERSONNEL REMUNERATION. The evaluation system used to assess man- factors influencing safe, reliable and efficient corporate values, including the relations with KPI SYSTEM The Ethics Code provisions are agers’ performance is based on the annual operation of NPPs. In 2017, the minimum salary of Top 1,000 employees, integration of values into applicable to all employees evaluation system including, among other an employee totaled 10,300.0 HR processes, assessment against values, and irrespective of their position things, KPI achievement assessment. More- In order to implement unified approaches and rubles in Rosenergoatom (until transmission of values in the internal communi- The Company’s system for operational per- level and period of work in the over, top managers, Heritage level reservists, streamline the regulatory basis in relation to September 1, 2017), and 10,712.0 cations system. formance management (OPM) and personnel Company. Rosenergoatom Ethics successors for critical jobs are evaluated personnel management, the following doc- rubles (from September 1, 2017) motivation is aimed at attaining the planned per- Code hinges on uniform values using the 360 Degrees method: in addition uments were approved in 2017: the general (with the minimum monthly wage Corporate values are incorporated by Rosener- formance level. The system is based on the use for all enterprises of the nuclear to self-evaluation and upward feedback, provisions for a personnel management of 7,500.0 rubles from January goatom into the personnel management system, of key performance indicators (KPIs) that permit power industry. it stipulates a poll among colleagues and system, the procedure for vocational training 1, 2017 to June 30, 2017, and namely: measuring the efficiency and define performance subordinates. of Rosenergoatom employees. The Company’s 7,800.0 rubles from July 1, 2017). criteria of each employee. The remuneration pro- personnel training and career development sys- • Employment interview for compliance with cess and its relation to personnel performance tem hinges on the internal and external training the values; and development are open and transparent. PERSONNEL ASSESSMENT, systems. VOCATIONAL TRAINING • Decisions on staff appointment to superior KPI target values for the current and subsequent Special attention in Rosenergoatom personnel positions are made on the basis of annual years are set up based on the out-performance AND DEVELOPMENT training is given to safety culture. assessment with the RECORD system and on the main indicators that characterize the 360 Degrees method, consisting of questions target status – implementation of the Compa- KEY PRINCIPLES OF KPI SETTING Successful functioning of the Company’s on compliance with values; ny’s strategic goals. An automated system for personnel training, psychological support human resource development (RECORD System) 1. Principle of compliance with and career development is one of the key 103-1, 103-2, 103-3 • Promotion to Rosatom talent pool on the is under implementation on the basis of ETWeb. SMART criteria basis of assessment against the values; 2. Principle of goals The remuneration of Rosenergoatom personnel ambitiousness • Programs of non-financial rewarding stipu- is governed by the Company’s Typical Regulation 3. Principle of KPI decomposition late that compliance with the values is the on Labor Compensation. 4. Principle of focus WHAT DOES THE REMUNERATION DEPEND ON? 5. Principle of balance most important and the cut-off criterion for 6. Principle of periodicity selection of winners; the annual industry-lev- The personnel motivation system hinges on 7. Principle of KPI achievement Position level (in line Position function Level of vocational Level of KPI el recognition program – Rosatom Man of awarding bonuses for KPI achievement. Bonuses justification and evaluation. the Year – introduced three separate nomina- are only paid upon achievement of KPI threshold with differentiating type competence and labor achievement factors) productivity tions in the area of values (One Step Ahead, values. If achievements significantly excel the Efficiency, Team of the Year). target, the bonus can be increased. The employ- ees are assessed via the RECORD System. In The Ethics Code is a baseline for Rosenergoatom addition to the employee efficiency, development employees. The Code defines ethic principles of of vocational and technical knowledge and skills, MINIMUM AMOUNT OF REMUNERATION BY EMPLOYEE CATEGORY, THOUSAND RUBLES PER YEAR 202-1 the Company’s activities and sets the require- assessment includes uniform industry-specific ments for the personnel behavior1. evaluation since 2016. Employee Category Base Pay KPI Achievement Bonus
KEY ELEMENTS OF OPM 2015
WHAT? HOW? Managers 456.5 up 149.4 up
Specialists 238.5 up 44.3 up 1 KPI 2 VALUES, VOCATIONAL KNOWLEDGE AND SKILLS 105.2 up 10.3 up • KPI setting (Until March 31) • Assessment against values Blue collar workers • KPI assessment (Until March 31) • Evaluation of vocational knowledge and 2016 skills (Until March 31) Managers 463.2 up 149.4 up KPI MATRIX EVALUATION FORM Specialists 249.9 up 44.3 up
Blue collar workers 115.8 up 10.3 up 3 FINAL GRADE А, B, C, D, E 2017 • Round table • Final meeting with the employee (Until April 30) Managers 501.0 up 149.4 up MINUTES OF THE ROUND TABLE MEETING Specialists 270.3 up 44.3 up
Blue collar workers 125.2 up 10.3 up 1. Detailed information on the Ethics Code may be found in Section 4.1 – Corporate Governance. 03. Sustainability Management Annual report 2017 Rosenergoatom 150 — 151
With a view to provide human resources to the tively, 2,189 job training programs, 60 comput- PERSONNEL TRAINING SUMMARY OF 2017 404-1 nuclear industry for achievement of strategic er systems used at NPP personnel training and On average, each employee of objectives of Rosenergoatom and the Power apprentice centers for teaching and assess- an existing NPP received 97.2 Total hours of training Engineering Division, the Company performed ment. hours of training, including 80.7 Internal training (training hours of internal training, and 16.5 2,501,580Total hours of training 613,447 3,115,027 personnel assessment and career development. and apprentice centers hours of external training in 2017. 2,501,580 613,447 Internal training (training Training and apprentice centers are staffed 3,115,027 of power plants and subsidiaries) Meanwhile, the NPP personnel Hours of training per employee and apprentice centers PERSONNEL VOCATIONAL TRAINING with the instructors having the required job Trainingof power at plants external and subsidiaries) 277.7 training and apprentice centers Hours73.8 of training per employee 18.1 education centers AND DEVELOPMENT experience who passed special psychological 91.9 Training at external MLN RUBLES provided 1,001.4 thousand hours 73.8 18.1 91.9 education centers The costs of external training of and pedagogical training. In order to ensure of training, in structural units – the Company’s employees in 2017 Training of Rosenergoatom personnel is car- standardized approaches to professional train- 1,500.2 thousand units, in research totaled (8.1 thousand rubles per ried out in accordance with the industry-level ing of personnel, the Company operates the In- organizations – 511.3 thousand HOURS OF TRAINING BY EMPLOYEE HOURS OF TRAINING PER EMPLOYEE person a year on average). programs for development of the manage- structor School. 336 NPP instructors attended hours. CATEGORY rial talent pool, Global Professionals, New advanced training courses in 2017. Managers Products, HR school, as well as the Rosatom 1,218,098 706,251 91.5 129.8 Production System (RPS) program and the Pre-appointment training is carried out for SpecialistsManagers and officers 1,218,098 706,251 91.5 129.8 corporate English language program. In addi- newly hired or transferred employees. In 2017, BlueSpecialists collar workers and officers tion, on the basis of the results of the annual pre-appointment training of NPP personnel Blue collar workers performance assessment, training is held for totaled 1,025.6 thousand hours. development of corporate values. NPP personnel training also Proficiency maintenance is performed on an includes psychological training Rosenergoatom created internal coaching in annual basis among all employees of nuclear provided by experts of the psycho- order to promote the RPS methodology and power plants. In 2017, Rosenergoatom devel- physiological support laboratory. develop managerial skills among personnel. oped and introduced the Program for Creation 12,390 employees of nuclear plants passed psychological training in In 2017, 27 internal coaches were certified to and Introduction of Continuous Training Quali- the amount of 54.9 thousand hours perform training in the RPS area, and 3 internal fication Maintenance System for Russian NPP in 2017. coaches – training of junior executives in line Personnel.
1,190,679 78.7 with the Manager’s School program. The Company’s NPP personnel pass advanced 1,190,679 78.7 NPP personnel training is organized and training in two areas: vocational and manageri- arranged by training and apprenticeship units al competences development. (centers), hereinafter – TAU, which have train- ing facilities and resources allowing to suc- Certain types of activities are performed by NPP SAFETY CULTURE cessfully perform vocational training activities. employees upon availability of Rostekhnadzor Special attention in permits for execution of nuclear power industry Rosenergoatom personnel In 2017, Rosenergoatom enacted the Long- operations. The employees of Rosenergoatom QUALIFICATION TRAINING PSYCHOLOGICAL TRAINING training is given to safety culture. Term Program for Equipment of NPP Personnel NPPs received 1,634 Rostekhnadzor permits1. Training and Apprentice Centers with Typical Meanwhile, 253 Rostekhnadzor permits were Packages of Training Facilities Ensuring Per- received and 226 – extended in 2017. Pursuant General and special courses sonnel Career Development for Safe Perfor- to the license conditions, holders of Ros- Psychological and pedagogical mance of Work at NPP Units and Common tekhnadzor permits annually pass qualification support of vocational training of Systems (Including Operations at Electrical maintenance. In 2017, 1,174 employees holding NPP employees was carried out 161.2 Plants). The Company developed and revised Rostekhnadzor permits passed qualification by psycho-physiological support ENACTED IN 2017 WERE: 989 and 1,367 educational materials, respec- maintenance at TAUs, and 332 – at MEPhI. laboratories (PPSL). NPP PPSL THOUSAND HOURS perform psych-physiological In 2017, Rosenergoatom • Program for Rosenergoatom Personnel Training in Safety Culture investigation of the employees HOURS OF TRAINING AT NPPS BY EMPLOYEE CATEGORY • Program for Training of Personnel Involved in Investigation and Analysis employees passed training holding Rostekhnadzor permits28.6 26.0 of Causes of Safety and Reliability Critical Events at Nuclear Plants courses in Safety Culture with the and those 23.5influencing the28.6 • Program for Rosenergoatom Personnel Training in Analysis and Applica- total duration of 161.2 thousand 26.0 Personnel Category TAU Training Training at NPP Structural Training at External operational safety of NPPs. In tion of Nuclear Plants Operation Experience hours, which is 10.8 hours per 23.5 Units Organizations 2017, investigation was passed by employee on average. 8,480 persons, and 479 conclusions Operations 638,740 558,881 96,713 were issued to obtain and extend 8.6 7.5 Rostekhnadzor permits. 6.6 6.6 5.4 8.6 7.5 Repair 192,0956.6 234,879 2.9 105,272 6.6 1.5 5.4 0.6 0.7 2.9 Ensuring the safety of nuclear power plants is the employees’ prioritized 1.5 170,524 0.6 706,4610.7 309,317 objective and internal need leading to appreciation of responsibility and self- Administrative VVER BN RBMK EGP control during execution of all types of work influencing the safety. VVER BN RBMK EGP 1. In line with the Unified List of Nuclear Plant Employee Jobs Subject to Approval of Federal Service for Environmental, Technological and Nuclear Supervision to Per- form Work in Nuclear Power Industry. 03. Sustainability Management Annual report 2017 Rosenergoatom 152 — 153
PERSONNEL TRAINING FOR hikivi NPP (Finland) – 405 training courses. CRITICAL PERSONNEL KNOWLEDGE PRESERVATION SYSTEM CUSTOMERS AND SUPPLIERS • 189 experts of the Belarus NPP (apprentice- Technical OF RUSSIAN NPPS ship at the Novovoronezh NPP-2 power unit Academy INTELLECTUAL CAPITAL OF ROSENERGOATOM CONSTRUCTION ABROAD No. 1). • 212 representatives of 47 countries (IAEA CRITICAL KNOWLEDGE The decision to establish the Technical Acad- programs); emy was made by Rosatom State Corporation Rosatom Tech to promote the activities of the Consortium of • 143 students from Jordan, Vietnam and Turkey Rosatom Technical Academy Contractors for Personnel Training of Foreign (operational experience at the Novovoronezh (Autonomous Non-Profit Customer and Supplier of NPP Construction. and Rostov NPPs). Organization for Further Implementation project for the system of critical personnel knowledge preservation Rosatom Technical Academy will enable reduc- Vocational Education) was ing operational expenses, using the available Vocational competencies were developed and established in 2017 under the industrial resources in an efficient way, and assessed among the Company’s employees in management of Rosenergoatom. Pilot projects at the Balakovo and Leningrad NPP providing a full package of services related 2017 through participation of employees in the to personnel training at Russian and foreign vocational skills championships according to the As a result of 2017: nuclear plants, including: World Skills standards. In 2017, the first qualifi- cation tournament of vocational skills REASkills • Rosenergoatom developed and enacted: Procedure for Critical Personnel Knowledge Preservation, and • Creation of a single training base for prepara- 2017 was held among 11 core competences of Procedural Guidelines for Organization and Performance of Work to Preserve Critical Knowledge among Personnel; tion in the Russian Federation of the foreign the Division (67 participants and over 70 experts • Deployed the critical personnel knowledge preservation system in the Company’s branches; customer and supplier’s personnel for nucle- representing the existing NPPs and subsidiaries). • Trained 45 employees of nuclear plants in application of the basic techniques recommended for critical ar power plants; The Division team was represented by 45 partici- personnel knowledge preservation. pants and 67 experts at AtomSkills 2017 – the 2nd • Preparation of proposals to make contracts industry-level championship. The Division employ- (agreements) on provision of turnkey ser- ees won 12 medals (4 gold, 5 silver, 3 bronze). As vices for creation of the personnel training part of the nuclear industry team, 24 employees In accordance with the results of these pro- Problems of the academic competition in system, and the foreign customer knowledge of the Division participated in WorldSkills Hi-Tech jects, the Company developed and enacted in Engineering are within the school curriculum management and implementation system; national championship: 9 participants and 15 2017 the following documents: Procedure for in Physical Education, but have a clear engi- experts. They won 3 medals for Rosatom State Critical Personnel Knowledge Preservation, neering focus. Among the problems are those • Personnel training on a turnkey basis of the Corporation: one gold and two silver. In addition, and the Procedural Guidelines for Organization considering the operating principles of specific foreign customer and the supplier of nucle- on the conditions of partnership between the Belo- and Performance of Work to Preserve Critical engineering systems (How Does It Work? or ar power plants constructed abroad under yarsk NPP and the Ural Radio Engineering College Knowledge among Personnel, as well as de- Physics in Engineering). In the academic year Russian designs; named after A.S. Popov, an industry-level Electron- ployed the critical personnel knowledge preser- of 2017-2018, prize winners of the Engineering ics Competence Center was established in 2017. vation system in the Company’s branches. academic competition among school children • Qualification maintenance and upgrade The Center is aimed at the qualification upgrading will get significant benefits when entering the among personnel of the foreign customer among the workers and engineers of the nuclear In order to unify the approaches to these Russian universities, and additional points and the supplier of NPPs; industry in accordance with the industry-level and activities, 45 employees of nuclear plants were when entering employer-sponsored education international requirements. 14 employees of the trained in application of the basic techniques in NPP related fields of study. • Development of industry-specific regulatory Power Engineering Division upgraded their qualifi- recommended for the activities related to criti- documents of the foreign customer; cation as part of the pilot group. cal personnel knowledge preservation. Among the established leaders in staff train- ing for Rosenergoatom are MEPhI National • Organization of the training base creation, Research Nuclear University with branches and support of activities of the foreign cus- CRITICAL KNOWLEDGE HUMAN RESOURCE (Volgodonsk, Obninsk), Ivanovo State Power tomer's NPP training centers; PRESERVATION AMONG DEVELOPMENT University, National Research Tomsk Polytech- nic University, Ural Federal University. • Minimizing the risks when providing a full PERSONNEL package of services. Rosenergoatom is running a multi-level human In 2017, the second contest was announced for In 2015, Rosenergoatom launched a project to resource development system: starting from awarding of corporate student scholarships, and In 2017, training was received at the Company’s introduce a system of critical knowledge pres- professional orientation work with secondary university teacher grants based on the results various training and industrial sites by: ervation among the employees of the Company school and university students, and completing of the academic year of 2016/2017. Pursuant and the Power Engineering Division. As part of with preparation of personnel for critically to the contest results, 17 best teachers of the • 98 representatives of nuclear infrastructure the project, the Balakovo and Leningrad NPPs in important top management positions. The subjects demanded by Rosenergoatom and 41 organizations from the Republic of Belarus; cooperation with Rosatom Technical Academy Company is interested in attracting the best students (MEPhI with branches in Volgodonsk successfully introduced pilot projects to create a students and graduates for work at NPPs and Obninsk, National Research Tomsk State • 240 experts from among the Belarus NPP critical knowledge management system for the and other organizations forming part of the University, Ivanovo State Power University) operating personnel, over 200 experts of Han- personnel of these NPPs. management circuit. received grants of 200,000 rubles and scholar- 31% 17%
03. Sustainability Management Annual report 2017 Rosenergoatom 154 — 155
9% ships of 100,000 rubles for the academic year, development of professional and managerial NUMBER OF GRADUATES CAREER AND SUCCESSION for top management level. Employees who respectively. competencies among the employees. In total, 4% have potential to management activities, are HIRED20% IN 2017, PERS., % MANAGEMENT. DEVELOPMENT 1,773 employees acted as mentors in 2017. 4% motivated to achieve high results, professional Rosenergoatom hired 208 university graduates 31% 15% 17% OF TALENT POOL growth and development become selected to 31% in 2017. Every newly hired young specialist and pro- 17% the talent pool. Employees are selected to the MEPhI National Research Nuclear bationer is assigned with a mentor from University branches The career and succession management talent pool pursuant to the annual performance According to preliminary estimates, education among highly qualified employees who helps 31%(Obninsk, Volgodonsk); 42 17% process has to be organized in order to prepare evaluation and approval of succession plans at of over 2,000 specialists will additionally be re- the young specialist during the on-boarding MEPhI National Research successors for the management positions. The all levels of management. Nuclear University ; 30 9% quired by 2027 taking into account power units period, transfers the knowledge necessary for 9% process also includes management of career construction abroad. the specialist to carry out work, and monitors Moscow Power Engineering 4% expectations of employees increasing their The information system for career planning and 20%Institute; 9 4% performance of assigned tasks. 20% 4% level of involvement. Development of a strong succession based on ETWeb was considerably Saint Petersburg Polytechnic4% 9% talent pool is one of the links of career and extended in 2017 (to 28,500 employees). The University; 8 15% MENTORING In 2017, a mentoring program was available for 15% succession management. system enables the career and succession Ivanovo State Power University;4% 35 the members of the talent pool. Mentoring, as 20%MEPhI National Research Nuclear management process automation in Rosener- 4% MEPhIUniversityNational National Research branches Research Tomsk Nuclear An employee development program is available informal tutorship, is applied to high potential UniversityPolytechnic branches University Rosenergoatom successfully implements the goatom. Employees are planning their careers (Obninsk, Volgodonsk);15% 42 (Obninsk, Volgodonsk); 42 in Rosenergoatom – mentoring. Among the employees with a view to create development Miscellaneous 32 universities unified industry-specific system for develop- within the Division: from an engineer with no MEPhI National Research (in total); 65 goals are adjustment of employees, ensuring opportunities, and unveil their leadership MEPhINuclear National University Research ; 30 Nuclear ment of the talent pool for various position labor grade to deputy CEO. 124 employees succession of generations, and assisting in abilities. UniversityNuclear University branches ; 30 levels: Rosatom’s Talents for initial manage- joined the managerial talent pool in 2017. 116 (Obninsk,Moscow PowerVolgodonsk); Engineering 42 MoscowInstitute; Power 9 Engineering ment level, Rosatom’s Capital for medium managers from the talent pool received new MEPhIInstitute; National 9 Research NuclearSaint Petersburg University Polytechnic ; 30 management level, and Rosatom’s Legacy appointments. SaintUniversity; Petersburg 8 Polytechnic MoscowUniversity;620 Power 8 Engineering 655 Institute;Ivanovo State9 Power University; 35 Ivanovo State Power University; 35 404-3 SCHOOL – UNIVERSITY – DIVISION SaintNational Petersburg Research Polytechnic Tomsk TALENT POOL PERFORMANCE INDICATORS, NationalPolytechnic Research University Tomsk 488 University;Polytechnic 8 University % OF APPOINTMENTS FROM TALENT POOL IN 2017 Miscellaneous 32 universities Ivanovo State Power University; 35 Miscellaneous(in total); 65 32 universities National(in total); Research65 Tomsk SCHOOL CHILDREN RELATIONS STUDENT RELATIONS Appointments from talent pool Polytechnic University to top management level positions • Atom Classes with in-depth study of Physical Educa- • Over 300 students attend leading technical univer- Miscellaneous 32 universities 950 53.6 % (in total); 65 tion sponsored by Rosenergoatom are operational in sities under employer-sponsored contracts. If such ROSENERGOATOM305 the cities of NPPs students are successful in their studies, they receive DEMAND221620 FOR UNIVERSITY655 Talent pool members appointed • Another academic competition in Engineering was additional financial support, attend practical training 620 67655 208 101 to new positions 127 106 held in 2017. Over 500 school children from the cities at NPPs, and obtain an employment offer upon gradu- GRADUATES, PERS. 46.4 % where NPPs are located participated in this academic ation from the university. 488 MEPhI National Research Nuclear competition owning to the Company’s support. • In 2017, all branches of Rosenergoatom – operating 488 University620 branches (Volgodonsk,655 power units participated in traditional Rosatom Career Obninsk, Balakovo, Seversk) Days in Ekaterinburg (Ural Federal University), Ivanovo Appointments from talent pool 28.6 National Research Tomsk AppointmentsNumber of Mentors, from talent Pers.: pool 26.0 (Ivanovo State Power University), and MEPhI. 488 Polytechnic University to top management level positions 23.5 950 to top management level positions Ivanovo State Power University 53.6 % 950 Probationers 53.6 % 955 Nuclear power plants: design, operation and 305MEPhI National Research Nuclear 66 305 Appointments from talent pool engineering University221 Talent pool members appointed 539 67 toTalentNewly top managementpool hired members young employees level appointed positions 221 208 101 to new positions Moscow Power127 Engineering106 67 Institute950 Electrical power and electrical engineering 27 208 101 to new positions 53.6 % 27 127 106 For transfer of key knowledge and skills 46.4 % 8.6 305 Sevastopol State University 46.4 % 7.5 MEPhI National Research Nuclear 6.6 6.6 Thermal power and thermal engineering 23 5.4 MEPhIUniversityBoris221 NationalYeltsin branches Ural Research Federal (Volgodonsk, Nuclear University TalentYoung pool employees members appointed appointed as junior executives 79 67 2.9 NUMBER OF GRADUATES EMPLOYED IN 2017, BY FIELDS OF STUDY, PERS. UniversityObninsk,208 Balakovo, branches Seversk) (Volgodonsk,101 to new positions 1.5 0.6 0.7 Electronics and automation of physical plants 12 Obninsk,Saint Petersburg Balakovo,127 Polytechnic 106Seversk) University Managerial talent pool members 46.4 % 173 28.6 National Research Tomsk Voronezh State Technical University (mentoring) 26.0 28.6 Nuclear physics and technologies 11 MEPhINationalPolytechnic National Research University Research Tomsk Nuclear VVER BN RBMK 26.0EGP UniversityPolytechnicBauman Moscowbranches University State (Volgodonsk, Technical 23.5 23.5 Obninsk,IvanovoUniversity StateBalakovo, Power Seversk) University NuclearNuclear power power plants: and thermal design, physics operation and 11 Ivanovo State Power University Nuclear power plants: design, operation and MEPhIMiscellaneous National universitiesResearch Nuclear 28.6 engineering 66 NationalMEPhIUniversity National Research Research Tomsk Nuclear 26.0 engineeringMiscellaneous fields of study (aggregate) 58 66 Polytechnic(aggregate) University Routine Performance Evaluation University 23.5 Moscow Power Engineering Institute and Career Development in 2017 Electrical power and electrical engineering 27 IvanovoMoscow State Power Power Engineering University Institute Electrical power and electrical engineering 27 8.6 Nuclear power plants: design, operation and Sevastopol State University 7.5 MEPhI National Research Nuclear 6.6 8.6 6.6 Thermal power and thermal engineering 23 66 Sevastopol State University 5.4 7.5 14,911 6.6 engineering UniversityBoris Yeltsin Ural Federal University Employees subject to routine performance evaluation6.6 Thermal power and thermal engineering 23 5.4 2.9 Boris Yeltsin Ural Federal University and career development, pers. 1.5 MoscowSaint Petersburg Power Engineering Polytechnic Institute University 0.6 0.7 2.9 ElectricalElectronics power and automationand electrical of engineering physical plants 12 27 1.5 0.6 0.7 Electronics and automation of physical plants 12 Saint Petersburg Polytechnic University 8.6 SevastopolVoronezh State State Technical University University Men 7.5 39 % 6.6 6.6 ThermalNuclear physicspower and and thermal technologies engineering 11 23 Voronezh State Technical University VVER 5.4 BN RBMK EGP Nuclear physics and technologies 11 BorisBauman Yeltsin Moscow Ural Federal State Technical University VVER BN RBMK EGP 2.9 61 % BaumanUniversity Moscow State Technical Women 1.5 0.6 0.7 ElectronicsNuclear power and and automation thermal physicsof physical plants 1112 SaintUniversity Petersburg Polytechnic University Nuclear power and thermal physics 11 Miscellaneous universities 65 % VoronezhMiscellaneous State universities Technical University Managers NuclearMiscellaneous physics fields and technologies of study (aggregate) 11 58 (aggregate) VVER BN RBMK EGP Miscellaneous fields of study (aggregate) 58 Bauman(aggregate) Moscow State Technical Specialists 20 % University Nuclear power and thermal physics 11 Miscellaneous universities Miscellaneous fields of study (aggregate) 58 (aggregate) 03. Sustainability Management Annual report 2017 Rosenergoatom 156 — 157
103-1 3.6 LABOR PROTECTION 103-2 103-3 403-2
PERSONNEL INVOLVEMENT PERSONNEL SUPPORT, According to the Russian Federation Labor INJURY RATE DEVELOPMENT Code and the state-run labor policy, the Compa- Lost Time Injury Frequency Rosenergoatom studies involvement and sat- ny’s labor protection policy is aimed at prior- In 2017, 2 incidents occurred with the Compa- Rate (LTIFR) in Rosenergoatom isfaction of its employees on an annual basis AND MOTIVATION PROGRAMS itized preservation of the employee’s life and ny’s employees at the operational NPP facili- averaged 0.03 in 2017 (0.065 in through Your Opinion is Important to Rosatom health during labor activities. ties (Kola NPP – 1 severe and 1 light). There 2016), with the KPI limit of 0.15. poll. Some 12 thousand employees of the Pow- Rosenergoatom employees annually par- were no incidents among NPP personnel at the er Engineering Division participated in the poll ticipate in the industry-level recognition Occupational health and safety measures are NPP units under construction in 2017. in 2017. The poll showed that the Company’s program – Rosatom Man of the Year. Among focused on improving labor conditions, mitigat- working environment and team spirit remained the main criteria for selection of the win- ing and managing personnel injury risks, which Causes of incidents: on the 85% performance level. ners are considerable performance results, yield economic advantages: reduction of costs efficient approaches to problem solving, related to compensations for work in harmful • Violation of job procedures, According to Aon Hewitt, an international and commitment to corporate values. An and heavy conditions, decrease in losses con- company surveying global engagement, Rosen- employee can become a participant of the nected with injuries, occupational diseases, a • Unsatisfactory job engineering (deficient ergoatom performance exceeds the average contest either by himself or upon recommen- drop in personnel turnover. pre-job briefing), engagement level of Russian production dation of the immediate manager. companies and corresponds to the level of the The matters of safety and health are included • Non-use, wrong use or lack of supervision of nation’s best employers. Winners in Division-level vocations are in the Industry-Wide Agreement on Nuclear personal protective equipment use, defined at the level of Rosenergoatom, in Power, Industry, and Science for 2015-2017 The engagement improving measures are corporate-level vocations – at the level of made between the employees and employers • Personal negligence of the injured. shaped and implemented in line with the functional responsibility centers of Rosatom with participation of Rosatom State Corpora- engagement survey results and the employees’ State Corporation, and in special nomina- tion. In 2017, in addition to the said incidents, 2 feedback. The key measures of 2017 were tions devoted to Rosatom values – by the incidents occurred as a result of the road acci- aimed at: Central Contest Committee headed by Ro- 403-4 dents involving the Leningrad NPP employees satom CEO. The number of Rosenergoatom (1s (female) and 2l) and the Kola NPP (2l) due • Improving trust to managers and developing nominees is growing year on year. Labor protection committees (commissions) to the faults of third parties. feedback; were created at each of the Company’s NPPs In 2017, 273 contest applications were filed, in line with the Standard Regulation on Labor In order to prevent injuries and eliminate the • Enhancing employees recognition and value; which is 23% more than in 2016. Protection Committee (Commission)1, taking causes of occurred incidents, certain correc- into account the trade union's opinion. Commit- tive measures have been developed and are • Developing employees. tees are an integral part of the labor protection implemented: management system, as well as one of the forms of employees’ participation in labor • Comprehensive measures are underway to protection management. The committees' work ensure labor protection and safety during hinges on the principles of social partnership, start-up operations and their acceptance at and their activities involve all NPP employees the power units under construction; (some 97% of the total number of Rosenergoa- tom employees). • Special operating regime enacted at the ex- isting NPPs was extended in order to ensure full commitment to engineering discipline 403-1 and its control;
1. Standard Regulations on Labor Protection Committee (Commission) were approved by the Order of the Russian Ministry of Labor No.412n dated June 24, 2014. The Order was registered by the Russian Justice Ministry on July 28, 2014, No.33294, and entered into effect on August 29, 2014. 03. Sustainability Management Annual report 2017 Rosenergoatom 158 — 159
• Measures were introduced to strengthen CONTRACTORS’ PERSONNEL NUMBER OF INJURIES AT OPERATING NPPS IN 2015-2017 1 — fatal There were no occupational responsibility for deliberate: non-use or LABOR SAFETY 1 — severe incomplete use of individual protective diseases among the Company's 1 — group employees in 2017. equipment when performing work and NPP 2015 2016 2017 1 — light changing over; violation of requirements for Causes of incidents: work processes, job instructions and stand- Balakovo — — — ard operating procedures, requirements for • Faults in design and scheduled maintenance, — — — safe work, equipment operation and repair, Beloyarsk
as well as labor protection rules, safety • Unsatisfactory organization of work perfor- Bilibino — — — techniques, occupational health, fire safety mance, and environmental protection. Kalinin — 3 (1 + 1 + 1) — • Wrong procedure of process operations of Kola — — 2 (1 + 1) scheduled maintenance. Kursk 1 — —
Leningrad — — —
Novovoronezh — — —
INJURY RATE AMONG CONTRACTORS’ PERSONNEL 1 — fatal Rostov — — — 1 — severe Smolensk — — — 1 — group NPP Injuries, Total: 1 — light Total: 1 (1l) 3(1s,1gr,1l) 2 (1s,1l)
Rosenergoatom on ern Results o 2017 Rosenergoatom on ern Results o 2017 48 2015 2016 2017 49
At the Company's operational NPPs CHANGES IN NUMBER OF INJURIES AT ROSENERGOATOM NPPS IN OPERATION IN 1992-20171 Balakovo — — 1
— 1 — Beloyarsk 2017 2 atal e ere Kalinin — — — 2016 3 2015 1 g t Kola — 1 — 2014 2 2013 0 Kursk — — 1 2012 2 Leningrad — — 1 (1 + 1) 2011 6 2010 2 — 1 — Rostov 2009 1
Smolensk — 1 — 2008 1 2007 1 Total 0 4 3 2006 3 2005 4 At construction sites of the Company’s NPPs under construction 2004 9 Beloyarsk, power unit No. 4 1 — 2003 9 2002 13 — 1 Kursk NPP-2 2001 17
Leningrad NPP-2 — — 1 (1 + 1) 2000 16 1999 14 Novovoronezh NPP-2 2 — 1998 24 1997 45 Rostov, power units No. 3 2 (1 + 1) 2 (1 + 1) 1996 34 and No. 4 1995 22 Sub-total 5 3 1 1994 32 1993 30 TOTAL 5 7 4 1992 49
1. All injuries happened to men 03. Sustainability Management Annual report 2017 Rosenergoatom 160 — 161
103-1 3.7 SOCIAL POLICY. 103-2 103-3 DEVELOPING AREAS OF PRESENCE. CHARITY
LABOR PROTECTION EXPENSES IN 2017 AMONG THE STRATEGIC GOALS OF THE COMPANY’S POLICY IS INCREASING ITS 102-41 ATTRACTIVENESS AS THE EMPLOYER IN THE LABOR MARKET, ENHANCING THE EMPLOYEES ENGAGEMENT, ATTRACTING AND RETAINING HIGHLY-QUALIFIED EXPERTS, AND QUALITY NPP Amount, Mln Rubles Expense Items MANAGEMENT OF SOCIAL EXPENSES1. Balakovo 305.2 • Performing labor protection activities according to collective agreements; Beloyarsk 276.2 • Ensuring normal working environment; • Improving labor conditions and protection; Bilibino 73.2 • Acquiring personal protective equipment; ROSENERGOATOM SOCIAL EXPENSES IN 2014-2017, THOUSAND RUBLES • Therapeutic and preventive nutrition; Kalinin 490.9 • Purchasing detergents and disinfectants. Kola 341.4 2015 2016 2017
Kursk 352.4 Costs per employee 71.56 77.25 78.07
Leningrad 426.7 Total costs of social policy implementation 2,660,145 2,734,016 2,645,342
Novovoronezh 504.8 Including by main programs:
Rostov 266.4 Health programs (VHI + accident insurance) 321,435 358,408 358,396
Smolensk 358.7 Health resort treatment 260,780 342,496 433,363
TOTAL 3,395.9 NGO 196,650 120,975 116,526
Cultural and sports events 588,302 562,662 558,150
MAIN RESULTS OF LABOR PROTECTION IN 2017: KEY OBJECTIVES FOR 2018: Improving housing conditions 260,150 264,303 277,887
• Measures were implemented to improve • Elimination of pre-conditions for injuries, Retirees support 289,469 332,162 351,296 occupational safety and health at operational NPPs and those under construction; • Implementation of a series of measures to ensure appropriate labor conditions for • Occupational health and safety checks were personnel during construction and start-up of SOCIAL EXPENSES BREAKDOWN BY KEY PROGRAMS IN 2017, performed at NPPs according to the safety NPP facilities, THOUSAND RUBLES inspection schedule for 2017; • Further performance of special evaluation of 27% • Full-scale application of the occupational labor conditions, safety and health management system start- 17% ed during NPP facilities construction. • Prevention of injuries resulting from traffic Health programs (VHI + accident accidents and operation of electrically-pow- insurance) ered equipment, assessment of the measures Health resort treatment 6% efficiency, improvement of labor protection Retirees support activities efficiency. Improving housing conditions 20% 13% Cultural and sports events
17%
1. Basic provisions of the social policy and trade union relations are disclosed in the Company’s 2013 Annual Report (pages 203-206). 03. Sustainability Management Annual report 2017 Rosenergoatom 162 — 163
HEALTH PROGRAMS CULTURAL AND SPORTS EVENTS YOUTH POLICY PRIVATE PENSION INSURANCE
In addition to medical care received by the In the reporting year, 27% of total expenses for Rosenergoatom places a focus on the youth 201-3 employees as part of compulsory health in- key social policy programs of Rosenergoatom policy. Decent material, social and living condi- surance (CHI) and state guarantees, Rosener- were channeled for this area. tions, as well as vocational and career develop- goatom provides its employees with voluntary ment opportunities are created for every young Rosenergoatom provides private pension in- health insurance (VHI), as well as accident person hired by a nuclear plant. This is possi- surance to employees through industry-based and sickness insurance. Employees can at IMPROVING HOUSING CONDITIONS ble due to existing programs and regulations Atomgarant Non-Government Pension Fund their expense insure their family members at providing the employer’s guarantees to a young under the Regulation on Co-Funding of Private corporate special prices and receive special Provision of employees with housing is one of employee. Pension Insurance of Rosenergoatom Employ- information, consulting, and medical assis- the most important conditions in attracting qual- ees approved by the Company’s Order No. 1720 tance both at health care institutions of their ified personnel. It is especially important given Youth organizations are operational at NPPs. dated December 23, 2010, and pension agree- region, and at the institutions located in Mos- the scale of construction of new NPPs. Housing They unite socially active young employees who ments executed between the Company and the cow and Saint Petersburg. construction and assistance to employees in successfully perform research and develop- Fund. Pension obligations are covered from the obtaining housing was carried out in accordance ment, participate in environmental and socially Company’s general resources with the estimat- with the Company’s housing program approved significant projects, actively do sports. Work is ed value of 117 mln rubles in 2017 (121 mln PERSONNEL REHABILITATION in 2017, and the respective needs. ongoing for military training and patriotic up- rubles in 2016). The obligations are covered in bringing of the youth, participation in the search their entirety according to the pension benefit Each year, Rosenergoatom conducts activities A residential building was commissioned in movement. arrangement1. for personnel rehabilitation in departmental Volgodonsk in 2017 with 116 flats for the Rostov clinics and Russian health resort institutions. NPP employees and their family members. 360 The International Association of Young Nuclear Upon retirement of an employee, the degree employees of Rosenergoatom received inter- Engineers is cooperating with industry-level of participation in the pension plan is deter- Thus, 11,849 persons received health rehabil- est-free loans to pay their mortgage downpay- youth associations. Support is provided to mined on the basis of the length of service in itation and treatment in 2017 at 10 clinics of ment, over 3,000 persons – reimbursement of young employees and experts in line with the the industry – at least 15 years at the time of nuclear power plants under various medical interest on the mortgage loan. Program for Support of Young Employees and achieving the retirement age according to pen- programs. Another 4,624 employees enjoyed Experts of Rosenergoatom Headquarters and sion legislation of the Russian Federation. health rehabilitation treatment at 63 health Pursuant to the comprehensive housing program Branches (appendix to Collective Agreement) centers on the Black Sea, the Mineral Waters for 2017-2021, over 60,000 m2 of housing is and similar programs of NPPs. The total number of the Company’s retirees area of the Caucasus, and midland Russia. planned to be built (about 900 apartments). receiving non-government pension in Atomga-
KEY CULTURAL AND SPORTS EVENTS OF 2017 MEASURES TAKEN FOR YOUTH IN 2017
• The 9th Winter Spartakiada Games among • The 10th Live Spring 2017 Festival – folk art • Meeting of authorized representatives of • Delegation of the Company’s young employ- Rosenergoatom employees – NPP Sport contest among Rosenergoatom employees youth organizations of nuclear plants attend- ees participated in the Boost 2017 innovative 2017 (Kola NPP) devoted to the 25th anniversary of Rosener- ed by representatives of the Scouting Teams forum for the youth (Kaluga Oblast) goatom (Pitsunda, Republic of Abkhazia) Association of Russian Nuclear Plants • The international children’s creative contest (Moscow) • 15th International Youth KVN Festival among of the art project – We are Children of Atom- • Russian championship in Kyokushin Karate nuclear industry teams – Autumn Maximum opolis! (Leningrad NPP) among men and women for the prizes of • 13th tournament of intellectual games (What? 2017 (Leningrad NPP) Rosenergoatom (Novovoronezh NPP) Where? When?, and Brain Ring) among young • All-Russia open tournament in unarmed employees of the Power Engineering Division combat commemorating the 72nd anniversary of Rosatom State Corporation (Novovoro- of the Victory in the Great Patriotic War of nezh NPP) 1941-1945. (Rostov NPP) • 10th military and patriotic convention Home- • The Inter-Regional Guard of Memory 2017 land among the teenager from cities where with the participation of a joint team of the nuclear power plants are located (Smolensk Company’s Scouting Teams Association NPP) (Smolensk NPP) 1. The obligations with respect to the pension plan for 2017 were evaluated as of December 31, 2016 and obtained on the basis of the actuarial expectation with due regard to the number of employees who participate in the Company’s pension plan and an average contribution per pension plan participant employee. 03. Sustainability Management Annual report 2017 Rosenergoatom 164 — 165
DEVELOPING AREAS OF ture facilities in the cities of NPPs presence PRESENCE1 were created during the process of plants construction. Today, Rosenergoatom faces the >50 objective of balancing the development rates BLN RUBLES 413-1, 103-1, 103-2, 103-3, of core production facilities and areas of their 203-1, 203-2 of tax deductions were made presence. between 2013 and 2017.
“Rosenergoatom has always been and will be a The objective of raising the development level socially oriented company. This means we need in the areas of presence is also met through rant Non-Government Pension Fund is 14,369 In 2017, the actual number of retired employ- to create good conditions not only at productions implementation of the cooperation agree- persons (15,780 persons in 2016). The aver- ees in the Inter-Regional Public Organization of sites, but in the areas of our presence – in the ments made between Rosatom State Corpora- age private pension amounts to 2,674 rubles. Rosenergoatom Veteran Employees (IPORVE) cities where nuclear plants are located. Only in tion and the Russian Federation constituents, (2,478 rubles in 2016). The amount of private totaled 17,811 persons (17,424 persons in this case well-educated, smart, thinking persons and effective for five years now. Under these pensions paid by Atomgarant NGPF in 2017 2016). From the funds allocated by Rosen- will further join NPP teams, and the lives of agreements, tax payments are made by the totaled 301.3 mln rubles (312.2 mln rubles in ergoatom under charity contracts, IPORVE current employees and their family members will enterprises as part of the consolidated group 2016). provided 85.5 mln rubles as financial aid to be really comfortable, eventful and diverse. Better of taxpayers. Funds are channeled for im- retirees in difficult situations (69.7 mln rubles living conditions in the areas of presence, more provement of the social and engineering infra- Among the participants of pension co-funding in 2016); 72.9 mln rubles for health resorts comfortable conditions in the cities make solving structure, construction of sports facilities, and programs in 2017 were 8,178 employees of and medical rehabilitation of retirees (65.9 mln the HR issues easier for the nuclear industry. This landscaping in the cities of Rosenergoatom Rosenergoatom (6,824 persons in 2016). rubles in 2016). complies with the strategic goals of our Company presence. New supplementary agreements and the State Corporation as a whole. If we see were made with the Saratov and Sverdlovsk Rosenergoatom spent 20.3 mln rubles for the horizons of the future, it means we have Oblasts in 2017. VETERANS’ MOVEMENT organization of recreational and cultural events chosen the right way.” among the veterans (9.8 mln rubles in 2016). JUMBERI TKEBUCHAVA, As part of the cooperation agreements Support of the veterans’ movement helps to Veterans received nursing services, and pre- First Deputy CEO for Corporate Functions, between Rosatom State Corporation and the preserve the achieved level of relations with sents on holidays and anniversaries. Financial Rosenergoatom regions, additional tax payments to regional veterans, involving them in ‘can-do’ work aid was provided to pensioners in 42,910 cases budgets in 2017 equaled 19.6 bln rubles (7.1 and transfer of knowledge and experience to (48,186 cases in 2016). The Company’s investment programs typi- bln rubles in 2016). Out of this amount, 1.97 young experts, as well as to provide them with cally include construction of social facilities bln rubles were channeled for municipal enti- quality medical care. This is one of the impor- in the cities of presence. The core infrastruc- ties’ events (1.68 bln rubles in 2016). tant thrusts of the Company’s social policy.
INFORMATION ON SHARE OF SALARY CONTRIBUTED BY EMPLOYEE/EMPLOYER
Participant Age Ratio of Pension Contributions (% of Employee’s Monthly Salary)
Employee Employer
18–29 0.8 1.6
30–35 1 2
36–39 1.3 2.6
40–44 1.5 3
45–49 1.7 3.4
50+ 2 4
1. More details regarding operations in the areas of presence may be found in Section 4.7 – Interaction with Stakeholders (AAPNP Fund sub-section). 03. Sustainability Management Annual report 2017 Rosenergoatom 166 — 167
• Restoring and renovating the places related Area (NPP) Amount, Key Events of 2017 under CHARITY Mln Rubles Agreements with Regions of Presence “Dreams come true owing to to Saint Sergius the Radonezh and Seraphim the people who care about our Rosenergoatom maintains an important cor- of Sarov, church building in the cities and Novovoronezh town, Voronezh Oblast 344.8 Ice arena to be constructed in March 2018 children, about creating a safe porate tradition of annual charity allocations, towns of presence; 505.0 (Novovoronezh NPP) environment in the socially as part of the social policy implementation. MLN RUBLES significant institutions of the city.” The support is granted in accordance with the • Support and promotion of sports and a were spent by Rosenergoatom Zarechny urban district, Sverdlovsk 300 Repair of educational institutions, acquisition of furniture and co-funding principle in relations between the healthy lifestyle, and patriotism; for charity in 2017 Oblast (Beloyarsk NPP) inventory, equipment, computers and office appliances, prepara- ZHANNA SUKHANOVA, Company and the charity recipient. In addition tions for the heating season; repair of motorways; repair of ur- Head of Forest Wonderland to Rosenergoatom partnership with other enter- • Events aimed to improve social and sport in- ban boiler houses and modular rural boiler houses, replacement Kindergarten, (Desnogorsk, prises, employees of the NPPs and the Head- frastructure, and landscaping in the satellite Smolensk Oblast) and repair of heat grids, repair of equipment and grids quarters participate in charitable projects. towns of NPPs;
53.8 Polyarnye Zori town, Construction of a sports and recreation center The Company provides charity in the following • Support for cultural projects that promote Murmansk Oblast (Kola NPP) areas: moral values and responsibility.
106.3 Volgodonsk town, Rostov Oblast • Repair of roads • Support of socially disadvantageous social (Rostov NPP • Acquisition of vehicles and ambulance cars groups (orphaned children or persons in dire straits, disabled persons, the Chernobyl dis- 29.3 Balakovo municipal district, Saratov Repair of motorways aster liquidators, veterans of war and labor, Oblast (Balakovo NPP) large families, etc.);
Desnogorsk town, Smolensk Oblast 30.1 Construction, reconstruction and overhaul of roads (Smolensk NPP) ROSENERGOATOM EXPENSES FOR CHARITY IN 2015-2017, MLN RUBLES
Roslavl district, Smolensk Oblast 230.1 • Construction, reconstruction and overhaul of roads (Smolensk NPP) • Landscaping of crowded places Charity Areas 2015 2016 2017
Traditional events under the charity policy 118 273.2 230.8 Kurchatov, Kursk Oblast 147.8 Repair of roads (Kursk NPP) Charitable activity in the regions of NPPs (including aid for the pensioners and 132 139 159.1 the poor, children’s and sports institutions, etc.) Sosnovy Bor, Leningrad Oblast 128.0 • Construction of the Baltics rehearsal hall (Leningrad NPP) • Reconstruction of the Koporye highway Industry-level programs 315 85.8 115.1 • Construction of the gas distribution pipeline Total 565.0 498.0 505.0
/CASE STUDY/ /CASE STUDY/
Two kindergartens (Forest Wonderland and Mishutka) were refurbished in Desnogorsk under A monument commemorating the Chernobyl NPP “Two years ago we laid a financial support of Rosenergoatom and the Smolensk NPP. Overhaul of the buildings facades, accident liquidators was installed in the Victory Park cornerstone of the future roofs, window and door replacement, street lighting was installed, gyms and the pool were on Poklonnaya Hill (Moscow) with financial support monument commemorating repaired within a short time period. Landscaping, including pavement of roads and installation of of Rosenergoatom. Participating in funds raising Chernobyl liquidators. This small play forms, was scheduled for 2018. were citizens of all Russian regions and Chernobyl monument is devoted to the liquidators from other countries. The monument people, Chernobyl liquidators, new inauguration was linked to the Shelter facility generators of nuclear experts. It construction accomplishment at the Chernobyl NPP: /CASE STUDY/ was erected to immortalize the in December 1986. The state committee signed a deed of the liquidators. It was our The Careful Medical Industry joint project of Rosatom State Corporation and the Health commissioning certificate. war and our victory.” Ministry was launched in 2017. Volgodonsk, Ryazan Oblast was selected as a pilot region for its approbation. Personnel load, reception desk, laboratories, periodic health examinations were VLADIMIR ASMOLOV optimized, flows of healthy and sick patients were split at the child and adult clinics through Advisor to CEO, Rosatom State efforts of RPS offices of the State Corporation and the Rostov NPP. Positive experience in the Corporation, project implementation will be further replicated at other health care institutions throughout the Research Advisor of Chernobyl regions of Rosenergoatom presence. NPP Confinement Project 04. Operating Efficiency Annual report 2017 Rosenergoatom 168 — 169
04. OPERATING EFFICIENCY
4.1 Corporate Governance 171
4.2 Economic Security 188
4.3 Internal Control and Auditing 190
4.4 Property Management 194
4.5 Purchase Management 195
4.6 Quality Assurance 197
4.7 Interaction with Stakeholders 201
4.8 Public Reporting System 206
200,000 INDUSTRIAL ROBOTS OPERATING IN THE AUTOMOTIVE INDUSTRY WILL BE POWERED BY THE FOUR-UNIT NPP RATED AT 4,000 MW PER HOUR 04. Operating Efficiency Annual report 2017 Rosenergoatom 170 — 171
102‑29 102‑30 4.1 CORPORATE GOVERNANCE 102‑33
KEY RESULTS OF 2017: THE COMPANY’S CORPORATE GOVERNANCE SYSTEM HINGES ON COMPLIANCE WITH THE RUSSIAN LAWS AND CONSIDERATION OF BASIC RECOMMENDATIONS OF THE CORPORATE
CONTRIBUTION TO ACHIEVMENT OF UN SDGS ETHICS CODE1. IN ADDITION, ROSENERGOATOM ABIDES BY THE STANDARDS OF BEST PRACTICES IN CORPORATE GOVERNANCE OF ROSATOM STATE CORPORATION. rd Peace, justice and efficient institutions 3 16 PLACE in the rating of Corporate Promote peaceful and inclusive societies for Transparency of Russian sustainable development, provide access to A high level of responsibility and large-scale Governance Code recommended by letter No. Companies 2017 in the justice for all and build effective, accountable objectives set before the Russian nuclear 06-52/2463 dated April 10, 2014 of the Bank of Among the key internal nomination of the Leader in and inclusive institutions at all levels industry enterprises required that Rosener- Russia to its daily practice taking into account documents governing corporate Corporate Transparency among goatom consistently improves the quality of the specifics of the legal status of Rosatom management in the Company State-Owned Companies. corporate governance, comply with the princi- State Corporation set forth in regulations and ensuring stockholder rights ples of transparency and general availability of of the Russian Federation, which provide observation are: information, observation of the acknowledged for unified management of organizations • Rosenergoatom Articles of ethical standards, maintenance of the manage- operating in the nuclear power industry. The Association2; 86% ment efficiency, and respect for the rights of standards of the Corporate Governance Code • Regulation on Rosenergoatom of the identified corruption risks stockholders and other stakeholders. are reflected in a number of local regulations General Meeting of were eliminated or minimized providing the stockholder with all possibilities Stockholders3; by owners of the business The Company has not approved the corpo- to participate in the corporate governance and • Regulation on Rosenergoatom processes. rate management code. Rosenergoatom familiarization with the information related to Board of Directors4. applies certain standards of the Corporate the Company’s activities.
• Full and timely disclosure of reliable information about Rosenergoatom POLICY THRUSTS • Implementation of corporate governance procedures corresponding to best Russian and international practices
• Compliance of the corporate governance system with the requirements and recommendations of the regulato- GOALS ry bodies, best Russian and international practices • Improvement of the Company’s activities perception
• Observation of all stockholders' rights • Transparency PRINCIPLES • Accountability • Recognition of stakeholders' statutory rights
1. The information regarding compliance of Rosenergoatom with the principles and recommendations of the Corporate Governance Code approved by the Board of Direc- tors of the Bank of Russia on March 21, 2014, are given in Appendix 9. 2. http://www.rosenergoatom.ru/upload/iblock/738/7385acd24646522f6e8bf95f885bce09.pdf 3. http://www.rosenergoatom.ru/upload/iblock/db5/db577f161550a196c0e10dd949319cf1.pdf 4. http://www.rosenergoatom.ru/upload/iblock/877/8775338f3cbccfaec0d87ff0ad2af61b.pdf 04. Operating Efficiency Annual report 2017 Rosenergoatom 172 — 173
ROSENERGOATOM GOVERNING BODIES
102‑18, 102‑19, 102‑20, 102‑26, 102‑31
Governing Function Regulatory Documents Events Frequency Governing Function Regulatory Documents Events Frequency Body Body
General Supreme governing body Russian Federation laws, The General Meeting of Directorate An advisory collegiate body of Rosener- Russian Federation laws, The Directorate operates Meeting of of Rosenergoatom. Rosenergoatom Articles of Stockholders is held once goatom, headed by CEO. Rosenergoatom Arti- under an approved quarterly Stockholders Association1, Regulation a year. The Directorate competence includes con- cles of Association, the plan. on General Meeting of Extraordinary General sideration of the issues related to perfor- Company’s regulatory and Rosenergoatom Stock- Meeting of Stockholders is mance of target benchmarks of safe and administrative documents holders2. held on the resolution of the efficient power production at the existing as refer to the Directorate Board of Directors. NPP power units, physical protection and activities, the Regulation A new revision of the Ar- The sole executive body anti-terrorist stability of NPPs, economic on Directorate. ticles of Association was – the Company’s CEO – ar- safety, supervisory control of NPP safety, adopted by the General ranges the General Meeting, occupational safety management system, Meeting of Stockholders in including its information strategic development, personnel related December 2017. and documentary support. and social issues, as well as consideration of the issues related to summarizing of the Board of A collegial governing body in charge for Russian Federation laws, Meetings of the Board of Company’s activities in the reporting peri- Directors overall management of the Company’s Rosenergoatom Articles of Directors are held as often od, and defining the goals and objectives activities. Association4, Regulation on as required, with due regard for the planning period. It is responsible for development of the Board of Directors. for the scale of activity, and strategy, control of the executive bodies’ A new revision of the the objectives faced by the activities, observation of the rights and Regulation was adopted Company. Coordination An advisory collegiate body of Rosenergoa- Russian Federation laws, legitimate interests of the Company's by the General Meeting of Council tom, headed by CEO. Rosenergoatom Articles stockholders. Stockholders in 2017. Milestones: of Association, corporate Goals and objectives of the Company’s • Development of Strategy of Rosener- organizational and admin- Board of Directors are defined in the Regu- goatom and organizations included in istrative documents, the lation on Board of Directors3. its management circuit; Regulation on Coordination • Preparation of the mid-term develop- Council. ment program for the Company and The quantitative and Board of Performs the functions of the corporate Russian Federation laws, organizations; personal composition of Directors secretary. Regulation on Rosenergoa- • Elaboration of the implementation Rosenergoatom Coordina- Secretary tom Board of Directors. mechanisms for strategic initiatives; tion Council, including its (Corporate • Arrangement of efficient management secretary, and changes in Secretary) of prospects and current activities; the composition are ap- • Consideration of key issues related to proved by CEO's orders. CEO A sole executive body of the Company. Russian Federation laws, reorganization of Rosenergoatom and Pursues the goals and performs the Articles of Association. organizations. functions of the Company’s operations management.
1. http://www.rosenergoatom.ru/upload/iblock/738/7385acd24646522f6e8bf95f885bce09.pdf 2. http://www.rosenergoatom.ru/upload/iblock/db5/db577f161550a196c0e10dd949319cf1.pdf 3. http://www.rosenergoatom.ru/upload/iblock/877/8775338f3cbccfaec0d87ff0ad2af61b.pdf 4. http://www.rosenergoatom.ru/upload/iblock/738/7385acd24646522f6e8bf95f885bce09.pdf 04. Operating Efficiency Annual report 2017 Rosenergoatom 174 — 175
GOVERNING BODIES STRUCTURE THE STOCKHOLDERS OF ATOMENERGOPROM ARE THE FOLLOWING ENTITIES: Rosatom State Corporation and The governing bodies are structured according When shaping the governing bodies structure, Atomenergoprom JSC are the to the governance principles that apply in the the Company strives to take account of the Entity Name Share in Registered Number of Stocks Held stockholders of Rosenergoatom. Capital parent company – Rosatom State Corporation, requirements and recommendations of Rosatom and predetermine the Company’s functioning as State Corporation, and follow the best practices Rosatom State Corporation 94.439 272 31% 100% the operator of the Power Engineering Division in this sector. of Rosatom State Corporation. The Russian Federation represented by the Russian 5.5607% 0% Ministry of Finance
GOVERNING BODIES STRUCTURE 102‑18 ROSENERGOATOM STOCKHOLDERS (AS OF DECEMBER 31, 2017), % Atomenergoprom 102-20 Rosatom State Corporation GENERAL MEETING 9.98% 12.48% OF STOCKHOLDERS Election Opinion
Reports and INDEPENDENT Election recommendations AUDITOR Election BOARD OF DIRECTORS Promotion of efficient work Reports and recommendations BOARD OF DIRECTORS SECRETARY Reports
Coordination of the candidate and 90.02% 87.52% agreement signing CEO Opinion
Election of members of the Directorate • 227,280,981,000 stocks issued (unpaid) as of the Company’s Articles of Association, distri- Reports and the Coordination Council part of the Company’s additional stock issue bution of net profit, election of the Company’s in line with the resolution on the Company’s Board of Directors. additional stock issue dated December 29, COORDINATION DIRECTORATE 2016. COUNCIL BOARD OF DIRECTORS The resolution on additional stock issue was approved by the Board of Directors (Minutes 102‑24 No.285 dated December 7, 2016), and regis- GENERAL MEETING OF quisition of the Company's additional stocks tered with the Bank of 5Russia on December Members of the Board of Directors are elected by Rosatom State Corporation. 30, 2016 under state registration number through a transparent procedure that permits STOCKHOLDERS REPORT ON DIVIDENDS PAID 4 1-01-55417-Е-007D. The number of additionally stockholders to obtain information about candi- > 6 лет 3 The Company’s General Meeting issued stocks is 250,000,000,0003 with a nom- dates sufficient to get an idea about their person- 102‑10 MATERIAL CHANGES IN SIZE, STRUCTURE, OR > 1 года 2 of Stockholders dated June 27, inal value of 1 ruble, totaling2 250,000,000,000 al and professional qualities. OWNERSHIP IN REPORTING PERIOD 2017 (Minutes No. 23) approved rubles. The additionally1 issued stock shall be No amendments were made to the Company’s As of December 31, 2017, the number of the resolution to omit declaring placed no later than September 4, 2018. BALANCED COMPOSITION OF BOARD OF DIRECTORS > 30 лет 3 Articles of Association in 2017 regarding the circulating stocks of Rosenergoatom totaled and paying out dividends on the Company’s common stock > 10 лет 2 increase of the registered capital. As of Decem- 1,043,122,539,874, including: according to the results of 2016. EXERCISING OF STOCKHOLDERS’ RIGHTS 102‑22 ber 31, 2017, the Company’s registered capital Rosenergoatom channeled all totaled 793,122,539,874 rubles. The registered • 815,841,558,874 placed (paid up) stocks of its profit to financing of the Rosenergoatom guarantees equal and fair The Board of Directors composition is defined capital is divided into 793,122,539,874 common comprising the Company's registered investment program. attitude to all of its stockholders when exer- according to the Russian Federation laws with stocks with a nominal value of one (1) ruble capital, including 793,122,539,874 author- cising their rights stipulated by the Company's due consideration of the balance of knowledge, each. ized capital stocks registered with the Articles of Association. qualification and experience, including produc- Federal Tax Service, and 22,719,019,000 tion, industry-specific, environmental and social In the reporting period, the share of Atomener- stocks placed (paid up) in 2017 in favor of In 2017, five General Meetings of Stockholders competencies. goprom shrank from 90.02% to 87.52%, and the Rosatom State Corporation in line with the were held against the resolutions of the Board share of Rosatom State Corporation expanded resolution on the Company’s additional of Directors. The issues tackled by stockhold- There were no changes in the composition of the from 9.98% to 12.48% respectively due to the ac- stock issue dated December 29, 2016; ers are as follows: approval of the new revision Board of Directors in the reporting year. 04. Operating Efficiency Annual report 2017 Rosenergoatom 176 — 177
ALEXANDER MARKOVICH LOKSHIN ANDREY YUVENALYEVICH PETROV BORIS GEORGIEVICH SILIN SERGEY ANATOLYEVICH ADAMCHIK OLEG STANISLAVOVICH BARABANOV
102‑23 • Member of the Board of Directors, • Member of the Board of Directors, • Member of the Board of Directors, • Member of the Board of Directors, Rosenergoatom (since 2016) Rosenergoatom (since 2010) Rosenergoatom (since 2010) Rosenergoatom (since 2016) • Chairman of the Board of Directors, • CEO, Rosenergoatom • Advisor to First Deputy CEO for Operations • Inspector General, Rosatom State Nuclear • First Deputy CEO, Atomredmetzoloto Rosenergoatom (since 2008) Management, Rosatom State Nuclear Energy Corporation • Executive Director • Non-Executive Director • First Deputy CEO for Operations Energy Corporation • Non-Executive Director Management, Rosatom State Nuclear • Born in 1963. • Born in 1971. • Non-Executive Director Energy Corporation • Born in 1954. • Graduated from Ivanovo Power Engineering • Education: higher technical, higher • Born in 1954. • Non-executive director Institute majoring in Thermal Power Plants. • Graduated from Tomsk Polytechnic economic, PhD in Economics. PhD in Engineering. • Graduated from Moscow Institute of Institute. • Born in 1957. • In 1996, he graduated from Moscow State Chemical Machine Building. • Andrey Petrov possesses 30-year • Since July 2010 – Inspector General, Geological Prospecting Academy named • Graduated from M.I. Kalinin Leningrad experience in the industry: he started • 2004–2008 – Head of Department, Rosatom Nuclear Energy State Corporation. after Sergo Ordzhonikidze, majoring in Polytechnic Institute. his career at Khmelnitsky NPP under the Deputy Head of Directorate for Nuclear Engineering and Technologies for Natural • Stake owned in the registered capital of • 2010–2011 – Deputy CEO, Director USSR Nuclear Energy Ministry as grade Power Industry and Nuclear Fuel Cycle Resources Prospecting, mining engineer, Rosenergoatom: none. of the Directorate for Nuclear Energy 5 inspection engineer of the turbine of the Federal Agency for Nuclear Energy in 2002 – Enterprise Economics and Complex, Rosatom State Nuclear Energy workshop. (Rosatom). • Common stocks owned in Rosenergoatom: Management, economist manager. Corporation. none. • 2009-2015 – Deputy CEO, Director of • From May 2008 to January 2010 – Head • 2011-2014 – Director of Treasury, Rosatom • 2011–2012 – First Deputy CEO, Director Smolensk Nuclear Power Plant (Branch of of Department, Deputy Director of the State Corporation of the Directorate for Nuclear Energy Rosenergoatom). Department for Nuclear Power Complex, • From 2014 to 2018 – Director for Complex, Rosatom State Nuclear Energy Rosatom State Nuclear Energy Corporation. • Since September 7, 2015 – CEO, Development and Restructuring, Rosatom Corporation. Rosenergoatom. • Since February 2010 – Advisor, Nuclear State Nuclear Energy Corporation • From 2012 to date – First Deputy CEO for Energy Complex Directorate, Rosatom State • Andrey Petrol was decorated with Order • From 2018 to date – First Deputy CEO, Operations Management, Rosatom State Nuclear Energy Corporation. Medal for Merits to Homeland, II degree Atomredmetzoloto. Nuclear Energy Corporation. (2003), Academician I.V. Kurchatov award • Stake owned in the registered capital of • Stake owned in the registered capital of • Awarded with the honorary title of pin, II degree (2007), Rosatom State Rosenergoatom: none. Rosenergoatom: none. Honored Power Engineer of the Russian Corporation badge of Merit for Nuclear • Common stocks owned in Rosenergoatom: Federation. Power Industry, I degree (2013). Andrey • Common stocks owned in Rosenergoatom: none. Petrov Awarded with the honorary title none. • Stake owned in the registered capital of of the Honored Power Engineer of the Rosenergoatom: none. Russian Federation (2009) according to the • Common stocks owned in Presidential Decree. Rosenergoatom: none. • Stake owned in the registered capital of Rosenergoatom: none.
• Common stocks owned in Rosenergoatom: none. 04. Operating Efficiency Annual report 2017 Rosenergoatom 178 — 179
Independent directors were not elected to the dence gender inequality. The age of the Board ters of business in the approved budget, planned tors to close 9 interested party transactions Board of Directors of Rosenergoatom. The of Directors members averages 57. DURATION OF MEMBERS’ WORK indicators of financial and economic activity, and in accordance with the Company’s Articles of The Board of Directors held 75 ON BOARD OF DIRECTORS Company’s internal documents neither set the target performance indicators of the Company’s Association; meetings and reviewed 89 issues AS OF DECEMBER 31, 2017 minimum number of independent members on activity for 2017, main reference points for activity in 2017. The Board of Directors BOARD OF DIRECTORS CHAIRMAN the Board of Directors, nor the independence in the long-term, and approved key performance • In order to control the transactions with real attendance was equal to 100%. > 6 years 3 criteria. indicators. estate, approval was granted by the Board of 102‑23 > 1 year 2 Directors to close 34 transactions; Members of the Board of Directors do not par- The Chairman of the Board of Directors organiz- In 2017, the Board of Directors activity was ticipate in the Company’s registered capital, es the activity of the Board and performs other EXPERIENCE OF BOARD focused on achieving the strategic goals of • As part of the process for Restructuring Non- do not hold the Company’s common stock, functions stipulated by the Regulation on Board MEMBERS’ WORK IN NUCLEAR Rosenergoatom. Core Assets and Equity, and reduction of man- and have not entered into transactions on ac- of Directors. The Board members elect the Board INDUSTRY agerial (administrative), financial resources for AS OF DECEMBER 31, 2017 quisition or alienation of the Company’s stock. of Directors Chairman from among themselves Among the most important resolutions taken upkeep of the asset complex, it is resolved to by a majority of votes. The Company’s CEO can in the reporting year and related to prioritized hand over immovable and movable property In 2017, The Board of Directors approved no not be the Board of Directors Chairman. > 630 yearsyears 3 activities were: to Energoatominvest for further transfer to resolutions on recommendations regarding > 110 yearyears 2 subsidiary companies located in NPP areas the amount of dividends based on the re- Alexander Lokshin was Chairman of the Board • As part of the AKKUYU Project Contraction in order to ensure transportation services and sults of the first quarter, half of the year, nine of Directors in the reporting period. Strategy implementation with a view to render food supply; months of 2017. technical support for AKKUYU NUCLEAR at the Akkuyu NPP units construction and commis- • Approval was granted for Rosenergoatom par- REPORT ON ACTIVITIES OF BOARD OF DIRECTORS The Board of Directors has no committees. sioning stages, a decision was made to estab- ticipation in AtomTeploElectroSet by means lish the Akkuyu Engineering Center, Branch of of making an additional contribution to the 102‑31, 102‑34 Gender composition of the Board remained un- Rosenergoatom in the Republic of Turkey; registered capital of AtomTeploElectroSet in changed: 100% of the members are men. Such > 30 years 3 the form of movable and immovable property a composition is reasoned by the Company’s In 2017, as a part of its current activity, the > 10 years 2 • In order to avoid the conflict of interests, an amounting to 81.6764% of the registered capi- industry-specific features and does not evi- Board of Directors determined the main parame- approval was granted by the Board of Direc- tal at the market5 (6%) value5 of (6%) 668,617,010 rubles; Strategy 89 5 1 10 (11%) 4 KEYCorporate PROFESSIONAL COMPETENCES3 AGE STRUCTURE OF BOARD OF DIRECTORS NUMBER OF ISSUES 70TACKLED STRUCTURE OF ISSUES TACKLED Governance 1 7 (8%) OF BOARD MEMBERS2 Finance (AS OF DECEMBER 31, 2017) BY BOARD61 OF DIRECTORS BY BOARD OF DIRECTORS 1 and Audit
3 5 (6%) 5 (6%) Strategy 1 89 13 (15%) 5 1 10 (11%)
4 48 (54%) Corporate 3 70 Governance Legal Issues o er 7 (8%) 2 Finance 61 Engineering 49 years 2015 2016 2017 Strategy and prioritized activities 1 and Audit 50 59 years Control and reporting
360 64 years Corporate governance 1 Branches and affiliates management 13 (15%) Approval of transactions related to 48 (54%)alienation/transfer of title to immovable property use. Legal Issues o er Staff and remunerationя Engineering 49 years 2015 2016 2017 Strategy and prioritized activities 50 59 years Control and reporting 60 64 years Corporate governance
Branches and affiliates management Approval of transactions related to alienation/transfer of title to immovable property use.
1. Key competences are shaped on the basis of the data regarding the education and experience of the Board members, including the analysis of Staff and remunerationя jobs and specific features of the organizations. Key competences are not a full list of competences held by the Board members. 04. Operating Efficiency Annual report 2017 Rosenergoatom 180 — 181
Chairman. Svetlana Roganova was the Board • Approval was granted for an increase in Directors developed and approved 17 new Performance of the Board of Directors was PERFORMANCE DISCIPLINE Rosenergoatom participation in VNIIAES revisions of the regulations on branches; not evaluated in 2017. of Directors Secretary in 2017. to 100% of the registered capital through 3% acquisition of 28,632 common stocks worth • As part of preparations for the Company’s DIRECTORATE 102‑28 371,360,000 rubles; general meeting of stockholders, the Board 3% of Directors approved the 2016 annual report There were no considerable changes in the • Transactions were approved for acquisition and annual accounting statements, and gave With a view to control the execution of the Directorate composition during the reporting of additional stocks in Baltic NPP worth recommendations on distribution of profits Board of Directors’ decisions, the Board period. Boris Arseev and Stanislav Antipov 160,511,000 rubles, and additional stocks of and payment of dividends. annually considers a report on execution of were excluded from the Directorate in the Atomtrans (61,697,228 rubles); its decisions (requirement of the Regulation reporting period. on Board of Directors). • Approval was granted for Rosenergoatom In terms of gender composition, the Directo- participation in the registered capital of CON- 97% rate mostly consists of men: there are only CEO CERN TITAN-2 through acquisition of 3,575 two women out of 26 members. This is due Executed 97% common stocks worth 549,999,450 rubles; Andrey Petrov, Member of the Board of to the Company’s industry-specific features Not executed Directors is the Company’s CEO (elected on and not related to gender discrimination. Executed • As part of the labor and activities efficiency October 7, 2015). Not executed improvement efforts, a decision was made to The Directorate members age averages 57. wind up the Science and Engineering Center, All members of the Directorate possess BOARD OF DIRECTORS SECRETARY Branch of Rosenergoatom; considerable experience in the nuclear power industry, enabling efficient management of The Company’s Board of Directors Secre- • In order to enhance the Company's level Rosenergoatom and its branches. tary is a corporate officer subordinate to of safety and make it compliant with Ros- the Company’s CEO and Board of Directors tekhnadzor requirements, the Board of
AGE STRUCTURE OF BOARD OF DIRECTORS AGE STRUCTURE OF BOARD OF DIRECTORS (AS OF DECEMBER 31, 2017) (AS OF DECEMBER 31, 2017)
2 1 1 1 1 1 2 2 1 1 1 1 2 1 2
2
7 9 7 24 9 en 31 35 years 61 65 years 24 omen1 41 45 years 70 years en 31 35 years 61 65 years 50 years 71 75 years omen1 41 45 years 70 years 51 55 years 90 years 50 years 71 75 years 60 years 51 55 years 90 years 60 years
1. Including Svetlana Dubrovina, Directorate Secretary – Head of CEO Administration, Rosenergoatom. 04. Operating Efficiency Annual report 2017 Rosenergoatom 182 — 183
COMPOSITION OF ROSENERGOATOM DIRECTORATE (AS OF DECEMBER 31, 2017) 102‑20
ANDREY YUVENALYEVICH ALEXANDER VIKTOROVICH ALEXEY GENNADYEVICH JUMBERI LEONTOVICH ALLA IGOREVNA BESLAN ANDREYEVICH VALERY NIKOLAYEVICH ANDREY ALEXANDROVICH VIKTOR IGOREVICH PAVEL LEONIDOVICH PETROV SHUTIKOV ZHUKOV TKEBUCHAVA ARKHANGELSKAYA BARGANJIYA BESSONOV DEMENTYEV1 IGNATOV IPATOV CEO First Deputy CEO for NPPs First Deputy CEO – Director of First Deputy CEO for Corporate Deputy CEO — Director for Deputy CEO – Director for Legal, Deputy CEO – Director of Deputy CEO – Director for Deputy CEO – Director of Kalinin Deputy CEO – Director for Operation Capital Projects Implementation Functions Strategy, Tariffs and Investments Corporate and Property Affairs Balakovo NPP Branch Production and Operation of NPP Branch Special Projects and Initiatives Branch Office NPPs
PAVEL ALEXEEVICH SERGEY ALEXANDROVICH VASILY VASILYEVICH VLADIMIR IVANOVICH VLADIMIR PETROVICH NIKOLAY NIKOLAYEVICH ANDREY ALEXANDROVICH NIKOLAY NIKOLAYEVICH VLADIMIR ALEXEYEVICH IVAN IVANOVICH LUBENSKY MIGALIN OMELCHUK PEREGUDA POVAROV PONOMAREV-STEPNOY SALNIKOV SAFRONOV SERVETNIK SIDOROV Deputy CEO – Director of Deputy CEO – Director for Deputy CEO – Director of Kola Deputy CEO – Director of Deputy CEO – Director of Science Advisor to CEO Deputy CEO – Director of Rostov Deputy CEO – Director for Deputy CEO – Director for Deputy CEO – Director of Smolensk NPP Branch Economics and Finance NPP Branch Leningrad NPP Branch Novovoronezh NPP Branch NPP Branch Security Purchases and Logistics Beloyarsk NPP Branch
NIKOLAY MIKHAYLOVICH VYACHESLAV ALEXANDER ALEXEYEVICH KONSTANTIN ALEXEY VITALYEVICH SVETLANA VASILYEVNA SOROKIN ALEXANDROVICH FEDYUKIN KHVALKO GENNADYEVICH KHOLOPOV SHALIMOV DUBROVINA Deputy CEO – Inspector General Deputy CEO – Director of Kursk Deputy CEO – Sales Director Deputy CEO – Director of Bilibino Chief Accountant Head of CEO Administration NPP Branch NPP Branch (Directorate Secretary)
1. Starting from September 1, 2016 04. Operating Efficiency Annual report 2017 Rosenergoatom 184 — 185
CORPORATE GOVERNANCE the persons authorized in making a transac- Federation nuclear industry complex organi- the following unified procedures were intro- SYSTEM STREAMLINING IN 2017 tion on behalf of the company; zations; duced to subsidiary companies and organiza- The bulk of the corporate tions within the Company’s control circuit: The Corporate Affairs Directorate • a register of individuals who are provided with governance system improvement • Creation of an efficient corporate governance performed audit of 12 Organizations measures aim at ensuring The General Meeting of Stockholders approved the respective authorities, and their relatives system allowing for maximum protection of • Unified industry-level procedural guidelines in 2017. Procedures were assessed end-to-end management of a new revision of the Articles of Association on (more than 700 individuals) was compiled and the interests of Rosenergoatom as a stock- for preparation of corporate documents by for convocation and holding of all organizations within the January 9, 2017 in order to improve the corpo- is regularly updated; holder (participant) of the Organizations; nuclear industry organizations; general meetings of stockholders/ Company’s control circuit. participants, meetings of collegiate rate governance level in Rosenergoatom. governing bodies, submitting • Analysis of all transactions in order to identify • Improvement of efficiency and optimization • Procedure for preparation and coordination transactions for consideration by Considerable changes in the Articles of Asso- the interested party transactions; of techniques of managerial functions; of materials for the annual general meet- governing bodies pursuant to the ciation are related to redistribution of compe- ing of stockholders (participants) of the criteria set forth by the articles of tences of the General Meeting of Stockholders • Development of guidelines for Rosenergoatom • Unification and standardization of indus- organizations within Rosenergoatom control association, subject to approval by in favor of the Company's Board of Directors, and the organizations within its control circuit try-level documents; circuit; the Organization's governing bodies, cancellation of the provisions of Chapter 11 in order to standardize the approaches to as well as quality and timeframes of of the Federal Law on Joint Stock Companies special transactions. • Creation of mechanisms of control and • Procedural guidelines for preparation of the information disclosure, etc. related to interested party transactions1, and decision making in relation to the operating annual report by the organization within the criteria different2 from the Federal Law on The Procedure for Maintenance of Register of activities of the Organization, its subsidiaries Rosenergoatom control circuit; Joint Stock Companies were defined in relation Persons Obliged to Provide Information Regard- and affiliates; to approval of the interested party transactions ing Availability of Interest in Transactions was • Procedure for maintenance of the register (hereinafter – special transactions)3. developed and approved in 2017. • Improvement of quality of executed docu- of persons obliged to provide information ments and approved decisions of the Organi- regarding availability of interest in transac- Procedure for identification of features of In line with the Procedure for Interaction zation, its subsidiaries and affiliates; tions pursuant to specified criteria; special transactions were developed and between Rosenergoatom and Rosatom State introduced on the basis of the changes in order Corporation4, the Company’s control circuit as of • Implementation of a unified information • Procedural guidelines for assessment of the to avoid conflicts of interest of the parties that December 31, 2017 embraces 30 organizations, policy of the Corporation, the Company, the Organizations’ corporate governance. may be considered as interested therein. including 15 subsidiaries. Organization, its subsidiaries and affiliates.
For the purpose of efficient organization of the The Procedure for Interaction sets forth the Rosenergoatom executed interaction orders INFORMATION ABOUT MAJOR interested party transactions approval process, mechanisms of organizations management, with the key organizations within its control TRANSACTIONS AND INTERESTED the following efforts are taken: including the execution of the Interaction Proto- circuit (hereinafter – the Organizations). The cols stipulating: interaction orders define basic terms and con- PARTY TRANSACTIONS • collection, processing and systematization ditions for the Company’s participation and of information about the parties that may be • Implementation of the corporate policy in decision making in relation to industry-level No major transactions subject to approval by considered as interested in a transaction, e.g. the process of management of the Russian and division-level processes in subsidiaries. the Company’s governing bodies were made in the reporting year. In 2017, the Board of A business curator is appointed for each of Directors approved 9 interested party trans- the key Organizations from among the top- actions involving the persons authorized to MANAGEMENT OF ORGANIZATIONS WITHIN ROSENERGOATOM CONTROL CIRCUIT and mid-level management of Rosenergoatom, close transactions on behalf of the Company who is in charge for implementation of the pursuant to the Articles of Association, who Company's interests, achievement of the goals simultaneously held positions on the govern- ROSENERGOATOM and objectives of the Company’s participation ing bodies of the transaction counter-parties. in the Organization, as well as control of the current activities of the Organization, and its Between January 1, 2017 and September interaction with Rosenergoatom. 1, 2017, Rosenergoatom did not make any Interaction interested party transactions. On September 1, BUSINESS CURATORS procedures Over 400 corporate procedures of the Organiza- 2017, a new revision of the Company's Articles tions were arranged and held in 2017. of Association was registered and stipulated that Chapter 11 of the Federal Law on Joint ORGANIZATIONS In order to improve the efficiency, standardiza- Stock Companies No.208-FZ dated December tion and operational performance of processes, 19, 1995 would not apply to the Company.
1. Clause 3.10 of the Articles of Association. 2. Clause 14.2.35 of the Articles of Association. 3. Additional information on the changes may be found in page 178 of the 2016 Annual Report or on the website: http://www.rosenergoatom.ru/shareholders/raskryt- ie-informatsii/ustav-i-vnutrennie-dokumenty/ 4. Approved by the Order of Rosatom State Corporation No. 1046a-P dated September 27, 2013, and Rosenergoatom Order No. 9/939-P dated October 11, 2013 as amended on November 3, 2017 No. 1/1079-P, and the Order No. 9/1733-P dated December 15, 2017. 04. Operating Efficiency Annual report 2017 Rosenergoatom 186 — 187
DISCLOSURE OF INFORMATION REGARDING HEAT AND WATER depends on achieved key performance indica- tors (KPI). Key performance indicators, covering SUPPLY, AND WATER REMOVAL economic, environmental and social aspects, are established for Rosenergoatom as a whole and Rosenergoatom, as an organization supplying included in the indicator matrix of the CEO. The heat and water, as well as removing water, is Company's KPIs are decomposed and translated obliged to publish information on official websites to executives of all levels1. Payment of the varia- of the executive authorities in the Russian Federa- ble part is made after approval of the amount of tion constituents in charge for state regulation of remuneration by the Board of Directors. prices (tariffs) within the timelines specified by the Russian Federation Government Resolutions No. The final KPI performance ratio equaled 6 dated January 17, 2013 and No.570 dated July 107.47% in 2017 (95.46% in 2016). Basic KPIs 5, 2013 (the process is assigned to the Company’s outran the target values. branches). 605.4 mln rubles is the total amount of remuner- For the purpose of centralization of the informa- ation paid in 2017 to key management per- tion disclosure process, and minimization of the sonnel: executives (CEO and his Deputies) and risk of administrative fines for untimely and in- other officers vested with authority and respon- complete publication of information, the process sibility for planning, directing, and controlling was optimized in 2017 through additional publi- activities of the company. cation of information on the Company's official website, and reporting of information disclosure by the Company's branches (Rosenergoatom ETHICAL PRACTICE Order No. 9/1185-P dated September 1, 2017). 102‑16, 102‑17, 102-25 The disclosed information may be found at: CEO KPIS ACHIEVEMENT IN 2017 http://www.rosenergoatom.ru/shareholders/ras- Rosenergoatom approved the Ethics Code2 de- krytie-informatsii/ fining the ethical principles of the company’s ac- KPI, Achievement Levels Actual KPI tivities and setting forth the employee conduct Units of Measurement Achievement Level requirements. The Ethics Code provisions are Bottom Level Target Value Top Level CRITERIA FOR DETERMINING applicable to all employees irrespective of their position level and period of work in the Com- Adjusted free cash flow of the State Corporation (including the adjusted free cash flow of 257 285 342 308.7 REMUNERATION OF CEO, the Division), bln rubles pany. Rosenergoatom Ethics Code hinges on 147.2 163.5 196.2 177.5 DIRECTORATE, AND BOARD OF uniform values for all enterprises of the nuclear - 101,744 96,657 101,744 DIRECTORS MEMBERS power industry. Forecast NPP unit construction cost, rubles/kW Specific semi-fixed cost, thousand rubles/MW 1,863 1,776 1,598 1,667 In order to implement ethical practices, Rosenergoatom created the Ethics Panel and Fulfillment of Rosenergoatom Investment Program, % 95 100 110 98.7 102‑35, 102‑36, 102-37 appointed the Ethics Officer. The Ethics Panel THE ETHICS CODE COVERS THE 199.84 201.10 203.00 202.87 is a collegiate body responsible for settling FOLLOWING AREAS: Power generation at NPPs, bln kWh
According to the Company’s Articles of Asso- the issues of ethical misconduct. The Ethics • Preventing corruption and Labor productivity, mln rubles/pers.1 8.1 8.5 9.8 8.65 ciation and Regulation on Board of Directors, Officer is responsible for taking preventive conflicts of interest (including remuneration and (or) compensation may be paid measures, ethics review and employees con- joint work of relatives, presents Integral performance on new products, % 90 100 150 112.61 for the expenses related to discharge of the Board sulting. giving and receiving, business Revenues from new products outside circuit, bln rubles 48.15 53.50 80.25 60.48 members’ obligations. The General Meeting of entertainment); Stockholders is authorized to make decisions on Violations of ethical standards may be reported • Safety culture, occupational Accompanying revenues, bln rubles 2.84 3.16 4.74 3.43 such payments. by email: [email protected] (applicants health; 81 100 121 158.4 are guaranteed confidentiality, anonymous • Environmental protection; Attaining the results of measures related construction in progress/equipment to be installed/intangible assets, % No remuneration was paid to members of the reports are considered, but the Ethics Panel • Property and resource Board of Directors in 2017. reserves the right to omit replies to anonymous preservation; LTIFR and injury rate reduction at construction sites of enterprises, including contractors - 0.15/20% - 0.08/20 reports). In case an ethical dilemma is not • Information integrity; (versus 2016) Remuneration of the CEO is defined by the labor settled on the level of the Ethics Panel, the em- • Information transparency, - no events - 0 contract and consists of a constant part and a ployee is entitled to apply to the hotline of the feedback and dialog; No events above INES Level 2 variable part. The variable part of remuneration Company or Rosatom State Corporation. • Interaction with stakeholders. Fulfillment of state objectives, % - 100 - 100 1. For additional information on the KPI system refer to Section 3.5 – HR Policy. 2. The KPI account for labor productivity across the Power Engineering Division. 1. The KPI account for labor productivity across the Power Engineering Division. 04. Operating Efficiency Annual report 2017 Rosenergoatom 188 — 189
102‑16 102‑25 4.2 ECONOMIC SECURITY 103‑1 103‑2 103‑3 205‑1 205‑2 205‑3
In 2017, Rosenergoatom efforts were focused • Anti-corruption sections were added to corpo- tom aimed at corruption risks elimination and well as feedback channels that may be used to on creation of a safe anti-corruption measures rate websites and internal information portals minimization. report corruption. system ensuring timely prevention of possible of the Company and filled with the information corrupt practices, and take efficient measures and materials relevant to the subject. 36 Out of 36 key business processes implemented Feedback channels allow to directly contact in order to stamp them out1. in Rosenergoatom: the Asset Protection Department of Rosatom key business processes are In 2017, Rosenergoatom initiated development implemented in Rosenergoatom State Corporation via Hotline, email or paper When achieving the specified goals, the Com- and execution of supplementary agreements • 15 processes (40%) were identified as most mail. Meanwhile, the applicants are guaranteed pany places a focus on completion of shap- to labor contracts with all employees of the prone to corruption; independent consideration of any message, and ing and improvement of the local regulatory Company and its subsidiaries on compliance non-disclosure of the message source. Anony- framework for prevention and combating of with due diligence principles when discharging • 13 owners (65%) of corruption risks from mous messages are also considered. corruption. job duties related to purchasing and contractu- among managers of the Company’s Head- al activities in order to stick to the principle of quarters were determined. As a result, 100% of local anti-corruption regu- inevitable responsibility for failure to observe the lations recommended by Rosatom State Corpo- standards and procedures set for the Company’s Most of the corruption risks identified by busi- ration were developed, executed and enacted at employees in the anti-corruption area. ness process owners were eliminated or min- all branches and subsidiaries: imized (86%), the rest (14%) require additional As part of the anti-corruption training plan for mitigation procedures and measures. • A new procedure was enacted for taking of the Company’s employees, over 20 persons re- measures by the Company’s employees to pre- sponsible for prevention of corruption and other Monitoring results showed that: vent any possible conflict of interests; crimes passed career development at Rosatom Technical Academy in 2017 according to the • Local anti-corruption regulations issued by • A procedure was approved for notification of educational programs agreed with the Russian the Company complied with the requirements the employer by the Company’s employees Federation President Administration. of laws, regulations and industry-level docu- about conflicts of interests and cases of being ments; induced to corruption; Corruption risks were assessed resulting in approval of the following documents: • All employees of the Company and its • Measures were taken to settle above 60 subsidiaries complied with most of the re- pre-conflict situations that could lead to con- • List of business processes subject to highest quirements of anti-corruption standards and flicts of interests; probability of corruption offences; procedures, there was no criminal prosecu- tion for corruption. • Implementation of the Company's Anti-Cor- • List of jobs holding corruption risks; ruption Plan for 2016-2017 was completed The Corruption Prevention section1 on the and resulted in a considerable mitigation • Corruption risks matrix; Company’s website was created. The section of the risks of corruption and other crimes provides information on anti-corruption regula- among employees; • Register of local regulations of Rosenergoa- tions, list of corruptive and other violations, as
1. In compliance with the provisions of the federal laws on combating corruption, and the requirements of industry-level 1. http://www.rosenergoatom.ru / employees / protivodeystvie-korruptsii / . anti-corruption local regulation. 04. Operating Efficiency Annual report 2017 Rosenergoatom 190 — 191
103‑1 103‑2 4.3 INTERNAL CONTROL 103‑3 AND AUDITING
INTERNAL CONTROL AND AUDITING IN ROSENERGOATOM ARE INTEGRATED INTO THE INTERNAL CONTROL SYSTEM PRINCIPLES MANAGEMENT SYSTEM, AND TARGETED AT MINIMIZING OPERATIONAL RISKS AND ENHANCING REASONABLE ATTAINABILITY OF STRATEGIC GOALS. 1 2 GENERAL INVOLVEMENT AVAILABILITY Each employee of the Company is responsible for The system is available for stakeholders (internal internal auditing customers) to exert a controlling effect Streamlining of the internal control system FINANCIAL PERFORMANCE of Rosenergoatom is an essential task in the CONTROL environment of the nuclear power industry 3 4 development. ANTICIPATORY ORGANIZATION RISK ORIENTATION Rosenergoatom approved regulatory documents Auditing systems in variable processes and The Company’s internal auditing system development The Company’s internal control system is and guidelines on financial statements internal structures shall be provided with resources, processes are based on the results of identification, built according to the Internal Control Policy control system (FS ICS) as part of the common organized, rebuilt, and adapted in advance forecasting and assessment of risks inherent to of Rosatom State Corporation and Its Organ- internal control system. The main purpose of Rosenergoatom and its organizations izations (hereinafter – Industry-Level Policy) the FS ICS is to provide reasonable assurance of aimed at raising the guarantees of strategic the reliability of financial statements for exter- targets achievement and corporate govern- nal and internal users. The Company’s FS ICS ance efficiency, and with due regard of the Improvement Plan comprising measures aimed at 5 6 FOCUSING DELIMITATION OF RESPONSIBILITY requirements of the general guidelines for the enhancing the quality of accounting, and ensuring Conditions are created for focusing of the efforts Auditing functions are distributed among the operating company’s quality. the reliability of financial statements, is prepared of all participants of the auditing activity on auditors in such a way that auditing targets are each year. development of the elements that ensure efficient efficiently achieved achievement of targets
INTERNAL CONTROL SYSTEM COMPONENTS 7 8 LEGITIMACY HIERARCHY The internal auditing system operation and Each management body and structural unit plays its Corporate culture and its shaping Processes of target definition and Monitoring activity (independent development are based on the provisions of Russian own role in internal auditing with due account of the processes target system (targeting) reviews) and international laws general structural hierarchy
Information systems Personnel management Risk management and communications processes and their results activity 9 10 Changes management COMPLETENESS DEVELOPMENT BALANCE activity The Company’s internal auditing system is complete, The auditing development activity takes into Corporate structure and Internal auditing comprehensive, and harmonized. It embraces all account the risks of unbalancing of its integral delimitation of powers activity Compliance aspects of the Company’s activities, and takes into parts, and ensures timely response account all particulars of its sub-systems 11 SUFFICIENCY The scale and scope of auditing functions corresponds to the discovered risks and threats, which ensures sustainable and safe development, and efficient achievement of targets 04. Operating Efficiency Annual report 2017 Rosenergoatom 192 — 193
SPECIALIZED INTERNAL CONTROL implementing the mechanism for interested RESPONSE TIME, DAYS SPECIALIZED INTERNAL CONTROL BODY OF ROSENERGOATOM BODY party control of purchasing activities. Potential suppliers are provided with the possibility to DIRECTOR FOR INTERNAL CONTROL apply to a corporate body (Arbitration Commit- AND AUDIT – CHIEF CONTROLLER 2016 7.25 Shaped according to the Industry-Level Policy, tee) for elimination of violations of the Unified 2017 6.00 the Company’s Specialized Internal Control Industry-Level Purchasing Standard. Response Body performs its activities as a structural time and decision delivery time, as well as the unit headed by Chief Supervisor: number of reasonable complaints filed with the INTERNAL CONTROL AND Arbitration Committee reduced in the reporting RESULT DELIVERY TIME, Deputy Chief Chairman of Controller AUDIT DIRECTORATE AUDITING the Arbitration In the reporting period, the Specialized Internal period due to increased quality of purchasing DAYS Functional management of DIRECTORATE Committee – Control Body met the requirements for inde- procedures. activities Division Head pendence, supervisory action plans were 100% 2016 6.60 Competitive Policy completed. Rosenergoatom developed and implemented the 2017 3.80 Program of Internal Control and Auditing Quality Control Division Control and Directorate Head Directorate Head KEY SUBJECTS OF THE SUPERVISORY MEASURES Buildup for 2017. In addition, with a view to Senior Auditors – Analysis Group ARE AS FOLLOWS: strengthen control of the financial and economic Internal Controllers of Rosenergoatom activities at the operational NPPs, an action plan SHARE OF VALIDATED Group for Inspection branches – operating Group for Internal • Efficiency of Rosenergoatom Investment was launched for further streamlining of internal of Financial and COMPLAINTS NPPs Audit of Projects Economic Activities Program execution; control. As part of the action plan, directors of IN PURCHASES branches assumed personal responsibility for SICB of organizations Group for Internal • Supervision (compliance) of the competitive creation and functioning of an efficient internal within Rosenergoatom 2016 0.50 Audit of Business Group for Control of policy implementation, including purchasing, control system at nuclear plants. control circuit 2017 0.43 Processes Contractual Work contracting activities, organizing bids for the sale of property; The IT system supporting the Specialized Internal Control Body was put into full-time • Evaluation of efficiency of subsidiary compa- operation in 2017. This allowed to improve the EXTERNAL AUDIT auditing of the annual accounting (financial) nies’ asset portfolio management; auditing efficiency and to optimize the control statements in 2017. procedures. Transparency and reliability of the organiza- • Issues related to prime cost composition. tion's financial statements define long-term Selection of the external auditor was per- The main areas of internal control and auditing prospects for the business development, and formed on the level of Rosatom State Development of the supervision environment in the medium and long term are as follows: lay the basis for its investment attractiveness. Corporation as part of general centraliza- in 2017 was focused on unconditional elimi- 27 External auditing allows reducing risks for tion of accounting and taxation processes, nation of identified deviations through weekly • Improvement of the control environment stockholders, on the one hand, and broaden- budget planning, internal control of financial supervisory measures were monitoring of corrective actions and communi- and the internal control procedures efficien- completed in 2017. ing the range of potential investors, on the reporting, and risk management. The external cating their results to the Company’s governing cy through reduction of intervals between other. auditor selection procedure was carried out bodies, among other things. the identification of deviations as part of according to the provisions of the Unified control activities and the decision making Therefore, in compliance with legal require- Industrial Standard (Procurement Regulation) Raising the procurement efficiency is one of (corrective action). ments, the Company is annually subject to of Rosatom State Corporation. FAA auditors the Company’s strategic goals. Therefore, con- 286 external auditing – assessment of accounting studied the annual financial statements stant control in this area is reasonably required. • Independent assessment of the Specialized statements by an external auditor according prepared for 2017 according to Russian corrective measures were According to the principles of the industry-lev- Internal Control Body compliance with inter- developed and are ongoing as a to international or national standards. Fi- Accounting Standards by several enterprises el Internal Control Policy, Rosenergoatom is national standards of internal audit. result of the supervision. nancial and Accounting Advisors (FAA) were of Rosatom State Corporation, including the selected for accomplishment of mandatory Company. 04. Operating Efficiency Annual report 2017 Rosenergoatom 194 — 195
103‑1 4.4 PROPERTY MANAGEMENT 103‑2 4.5 PURCHASE MANAGEMENT 103‑3
Rosenergoatom owns immovable property with From 2014 to December 31, 2017, this project Purchasing activities of Rosenergoatom within of Rosenergoatom and its organizations with the total area of some 13.8 mln m2, including resulted in savings of some 123 mln rubles, in- Rosatom State Corporation are governed and a view to promote fair competition and fair industrial sites, laboratories, administrative cluding some 36 mln rubles through measures The automated property executed according to the following federal- and market prices, ensure efficient use of funds, buildings, social facilities and non-core assets. taken in 2017. management system (APMS) is industry-level regulatory documents: transparency of order placement, and integrity used to increase the efficiency of the economic space. As of December 31, 2017, the Company de-fac- Restructuring of non-core assets through their of operations with immovable • Federal Law No. 223-FZ dated July 18, 2011 on to was using 760 land plots with the total area sales resulted in the income of above 605 mln property. This database allows Purchasing of Products, Work, and Services by The key functions of Rosenergoatom as the receiving information about of 20,804 ha, among them: rubles (without funds received by subsidiar- Specific Corporate Entities; customer of purchasing activities include: any item of the Company’s ies). immovable property in the • ● 371 land plots with the total area of 6,218 ha online mode irrespective of its • Unified industry-level purchasing standard • Ensuring introduction and execution of (fully owned by the Company); As of December 31, 2017, Rosenergoatom location. The database contains (Purchasing Regulation) of Rosatom State the purchasing techniques, performing the 1 fully owned 7,160 items of immovable property information about more than Corporation (hereinafter – the Standard); function of the methodologist; • ● 389 land plots with the total area of 14,586 (including 4 items of water transport). 100 characteristics of each ha (used by the Company under tenancy). item of immovable property, • Unified industry-level procedure for planning, • Planning of purchases and reporting on In line with the requirements of the Federal including technical parameters, preparation to procurement processes, report- purchases; The total cadastral value of the land plots Law No.226-FZ dated July 3, 2016 on the balance sheet value, legal ing at its expense for the needs of Rosatom and exceeded 49 bln rubles, the Company’s land tax Russian Federation National Guard Troops as status and utilization status, the State Corporation's organizations, including • Arranging and holding purchasing payments – some 170 mln rubles per year. refers to housing provided to personnel of the etc. ensuring prompt retrieval typical forms of technical specifications2; procedures; of the information required for National Guard units involved in protection of managerial decision making. In order to cut down the land payments, projects important national facilities (nuclear power • Other federal- and industry-level statutory acts, • Monitoring and control of the purchases are underway to establish a reasonable basis of plants) and special cargo, 168 housing units regulations of Rosatom State Corporation and correctness; taxation on immovable property and contesta- (apartments) were donated to the Russian Rosenergoatom as related to procurement and tion of the cadastral value of land plots. Federation Treasury. adjacent areas. • Execution and supervising of contracts;
The Company’s purchasing activity regulates the • Taking other actions clearly stipulated/ relations arising from purchasing for the needs provided for by the Standard.
MAIN GOALS AND PRINCIPLES OF ROSENERGOATOM PURCHASING ACTIVITY
Goals Principles
• Ensuring a single economic space • Transparency: purchasing information disclosure • Creating conditions for timely and complete satisfaction of the Company’s needs • Competitive ability: equal rights, fairness, absence of discrimination and for products with desired price, quality and reliability unreasonable limitation related to purchasing participants • Using the funds channeled for purchasing of such products in an efficient way • Justification: compliance with regulations, collegiate character and • Shaping the fair market price for the products purchased by the customers, and documentation of the decisions made, absence of limitations on access reasonable cutdown of the customers’ expenses to participation in purchases through setting of invariable requirements • Expanding possibilities of legal entities and individuals participation in purchas- for the purchasing participants es, and promoting such participation, developing a fair competition • Timeliness: implementation of purchasing processes for timely provi- • Ensuring disclosure and transparency of purchases sion of products to the customer, early notification of suppliers on the • Observing the applicable laws planned purchases • Preventing corruption and other offences in purchases • Efficiency: ensuring purposeful, feasible and cost-efficient spending • Using purchase procedures for implementation of Rosatom State Corporation of funds for purchasing of products (inter alia, taking into account the strategy for development of the nuclear industry (in general and in individual purchased product life cycle) and implementation of measures aimed at aspects) reducing the customer’s expenses
1. Approved by the resolution of Rosatom State Corporation Supervisory Council No. 37 dated February 7, 2012 as amended. 2. Rosatom State Corporation Order No. 1/284-P dated March 30, 2015, the Company’s Order No. 9/304-P dated March 17, 2016, as amended, most recent amendment – the Company’s Order No. 9/1557-P dated November 17, 2017. 04. Operating Efficiency Annual report 2017 Rosenergoatom 196 — 197
In order to achieve the strategic goal of Rosatom In 2017, category management coverage of State Corporation – Reducing Prime Cost and Ac- the annual purchasing plan implemented by 4.6 QUALITY ASSURANCE celerating Processes, and to execute the updated the Company was as follows: EXAMPLE OF EFFICIENT CATEGORY STRATEGY Power Engineering Division Strategy until 2030 as part of the strategic initiative of Operational • Materials and equipment purchasing – As part of the program for Improvements for Reduction of Costs and Boost- 87% with the target level of 80% (28.2 bln substitution of imported ing of Output, the following actions were taken in rubles) (82.99% in 2016 with the target level foreign resins with domestic Purchases Management: of 80%); ion-exchange resins, a single category purchase strategy worth 373.48 mln rubles was • Reduction of processes duration as part of the • Work/services purchasing – 76% with AT ALL LIFE CYCLE STAGES OF THE NUCLEAR INDUSTRY FACILITIES ROSENERGOATOM developed in 2017. A provision industry-level Purchasing Activities Manage- the target level of 50% (29.9 bln rubles) is made for an option with DEFINES ITS QUALITY ASSURANCE POLICY ON THE BASIS OF THE MAIN GOALS OF ITS ment function; (66.73% in 2016 with the target level of at selection of winners for every lot ACTIVITY: COST-EFFICIENT GENERATION AND RELIABLY SUPPLY OF ELECTRICITY AND HEAT least 50%). with the possibility of making • Decrease in expenses for the function due to separate supply agreements TO CONSUMERS WHILE ASSURING THE SAFETY PRIORITY. automation and standardization of processes; The Division approved 2,740 category strate- by NPPs. The open bidding gies worth 63.5 bln rubles in 2017. procedure resulted in execution • Ranging, unification and standardization of of agreements for Russian resins purchases; Efficiency of category management of pur- supply to NPPs in 2017. The chasing activities exceeded 7.5 bln rubles actual savings from purchases QUALITY POLICY QUALITY POLICY IMPLEMENTATION • Reduction of prime cost in core business (21.6% of the previous purchases). of domestically manufactured products (if compared to previous areas. The Company continuously performs Quality All activities regarding the Company’s quality agreements for resins supply) assurance, which is planned and consistent system development scheduled for 2017 by ROSENERGOATOM PURCHASING OBJECTIVES totaled 136 mln rubles (72%). According to the Standard, Rosenergoatom de- activity aimed at ensuring that all services administrative orders of Rosenergoatom were FOR 2018: veloped and enacted the regulatory documents and work related to creation, operation and performed in full. that govern the activities and the procedure of • Annual volume of purchases from small and decommissioning of NPPs are performed in interaction among the Company’s Headquar- medium businesses2 – at least 18% of the accordance with the established procedure, The Company achieved the quality targets set ters, branches, and subsidiaries when carrying aggregate annual value of contracts made by and their results meet the pre-set require- for 2017 by Rosatom State Corporation (as out purchasing activities. the Company as a result of purchases; ments. confirmed by monitoring of the existing system of quality management in the civil segment of Pursuant to the Federal Law No.223-FZ dated • Efficiency of category purchases (achieve- Rosenergoatom quality assurance system is Power Engineering Division) in the following are- July 18, 2011 and the Standard, information ment of savings from competition, optimiza- The share of the contracting a basic sub-system of the integrated man- as: coordination of engineering documentation, on goods, work, or services to be purchased is tion of technical requirements, cutdown of agents from the ‘local suppliers’ agement system. The system hinges on the acceptance control, assembly and construction published in the unified information system: operational expenses) – 5%. as a result of purchasing ISO standards of 9000 series, federal stand- work inspection, commissioning control, mainte- www.zakupki.gov.ru, and the official website on procedures totaled 57.4% in 2017, ards and rules NP-090-11 – Requirements nance and operation activities. purchasing in the nuclear sector: www.zakupki. where ‘local suppliers’ means for Quality Assurance Programs for Nuclear suppliers of goods, work, and rosatom.ru; thus a wide range of bidders may Facilities, the IAEA General Safety Rules GSR In 2017, five NPPs successfully passed check- services located in the presence join the procedure, and a competitive environ- Part 2 – Leadership and Management for ups of compliance with the requirements of areas of the Company and its ment is created. branches (33% in 2016, 58.4% in Safety. NP-090-11, GOST ISO 9001-2011/2015, GS-R-3 2015, 18% in 2014). (GSR Part 2): We are constantly streamlining the purchasing Rosenergoatom is implementing the Quality procedures in order to increase the efficiency of The share of contracts made by Policy Statement with its basic provision • Kalinin NPP on February 6-10, 2017; procurement activities. Respective indicators Rosenergoatom with small and concerning cost-effective power generation, of efficiency are monitored by heads of the Pro- medium businesses amounted to and reliable supply of electricity and heat to • Kola NPP on March 20-24, 2017; curement and Logistics Support Service of the 72.77% in 2017, which is 28.2% consumers, while maintaining unconditional 1 Headquarters, as well as Procurement Directo- higher than in 2016 (44.57%) . compliance with safety requirements. • Novovoronezh NPP on June 19-30, 2017; rates created in the Company’s branches. • Kursk NPP on June 5-9, 2017; In 2017, Rosenergoatom and its branches held 9,930 purchasing procedures amounting to • Rostov NPP on September 11-15, 2017. 200,722 mln rubles. Savings from competitive purchasing procedures totaled 6,085% mln 102‑10, 204-1 rubles (8.0%).
1. Pursuant to the Russian Government Resolution No. 1352 dated December 11, 2017 on Peculiarities of Small and Medium Businesses Participation in Purchases of Goods, Work, Services by Specific Types of Legal Entities. 2. In the amount specified by the Russian Federation Government Resolution No. 1352 dated December 11, 2014. 04. Operating Efficiency Annual report 2017 Rosenergoatom 198 — 199
Results of 2017 Plans for 2018 QUALITY MANAGEMENT OF significant for the safety of the Company’s NPPs; • Rosenergoatom integrated management system was implemented and doc- • Development of the integrated quality system in the following areas: EQUIPMENT SUPPLIED TO NPPS umented at the level of Headquarters and NPPs in line with the requirements • Shaping of the integrated management system for its demonstration, inter • Approval of decisions on applicability of of GSR Part 2. alia, to the corporate OSART mission of the IAEA (Corporate Governance); In line with the applicable laws in the nuclear general purpose industrial articles as part • Regulatory documents and standards were developed, updated and enacted • Implementation of the integrated engineering policy in the area of safety; to develop the quality system in accordance with GOST R ISO 9001-2015 • Updating of the regulatory basis for the quality system. industry, Rosenergoatom as the operating of equipment being significant for the safe- requirements, ensure the quality of products supplied to the NPPs • Accomplishment of internal audits of the quality system at the Headquarters company participates in managing the quality ty of the Company’s NPPs ; • Schedule and program of internal audits in the Headquarters and branches of and branches of the Company in the Moscow region regarding their compli- of the equipment supplied to nuclear plants. the Company in the Moscow region regarding their compliance with GOST R ance with GOST R ISO 9001-2015, NP-090-11, and the IAEA GSR Part 2 • Acceptance control of the equipment deliv- ISO 9001-2015, NP-090-11, and the IAEA General Safety Rules (GSR Part 2) • Harmonization of the quality system processes with the integrated manage- The quality management function is under- ered to the Company’s NPP sites (control of ment system processes pinned by the following actions. equipment compliance with the NPP project • Full transfer of Rosenergoatom to ISO 9001 series standards as amended • Centralized training of the Novovoronezh, Kola, Rostov NPPs employees in requirements); in 2015. the QMS buildup and documentation, as well as the QMS internal auditing on • Coordination of terms of reference, techni- • The quality system documentation was updated in line with ISO the basis of ISO 9001:2015 (GOST R ISO 9001-2015) cal specifications for imported equipment, • Testing, compliance assessment and ac- 9001:2015 (GOST R ISO 9001-2015) taking account of the integrated • The first supervision audit at the HQ, Capital Projects Implementation Branch testing programs and techniques, working ceptance control are performed by Rosen- management system implementation Office, Novovoronezh, Kola, Rostov NPPs as part of compliance of the Com- design documentation for the equipment ergoatom (NPPs and HQ) with participation • Application on Quality Assurance Policy with Consideration of Develop- pany’s quality system with the requirements of ISO 9001:2015 (GOST R ISO (control of completeness and compliance of Authorized Organizations (VO Bezopas- ment Strategy was developed and implemented 9001-2015) 1 • The employees of the Headquarters and branches were trained in the of the said documentation with the initial nost, ZAES Production Association) . QMS buildup and documentation, as well as QMS internal auditing on the technical specifications, federal standards basis of ISO 9001:2015 (GOST R ISO 9001-2015)1. Certificate validity from and rules in the nuclear sector, require- In addition, the Company considers, coordi- December 27, 2017 to December 26, 2020. ments of the regulatory documents); nates, controls execution and evaluates per- formance of the quality assurance programs • Functional KPI of Rosatom – Observation of Acceptance Control Time- • Achievement of functional KPIs of Rosatom: Percentage of Timely Cer- • Audits of the manufacturers’ data integrity of organizations involved in design and/or frames at NPP Construction Sites – was 90.5% achieved (with the target tificates of Acceptance Control of Products – 5 and 10 working days for as part of purchasing procedures for the manufacturing of NPP equipment. value of 90%). equipment with long manufacturing cycle – 90% supply of critical products; • Jointly with the Company’s Inspectorate, inspections were held at the Kalinin • Inspections of compliance with the requirements of NP-090-11, GOST R ISO Actions and powers of Rosenergoatom are NPP, Kursk NPP-2, Kola NPP, Novovoronezh NPP, Rostov NPP for conformity 9001-2015, GSR Part 2, organization of acceptance control at the Beloyarsk, • Participation in testing (acceptance, qualifi- governed by federal laws, standards and rules with NP-090-11, GOST R ISO 9001-2015, GSR Part 2, organization of accept- Bilibino, Smolensk, Leningrad, Kursk NPPs cation, periodic, routine); in the area of nuclear power use. In turn, the ance control of the Company’s NPP equipment operating procedures and authorities of the • 16 quality assurance inspections of equipment manufacturing plants. • 16 inspections of compliance with NP-090-11, GOST R ISO 9001-2015 at the • Coordination of technical requirements and Company’s structural units are specified in • 10 audits of data integrity (as part of purchasing procedures) organizations performing work and rendering services for the Company. changes in them according to the testing the regulatory documents and standards • Audits of data integrity (as part of purchasing procedures) results (control of testing completeness, of the operating organization. Once includ- compliance of the applied methods, testing ed into the general contractor agreements • 12 enterprises certified within the Certification System for NPP Equipment • 12 certified enterprises manufacturing equipment for the Company’s NPPs. results with the requirements of the terms (standard general contractor agreement form) Manufacturing Enterprises with item groups: fittings, electrical and engi- neering equipment, pumps, APCS of reference and technical specifications); and supply agreements (standard supply agreement form), the regulatory documents • National standards were developed: GOST R 50.06.01-2017, GOST R • Development of national GOST R standards – Assessment of Products • Assessment of equipment compliance and standards of the operating organization 50.07.01-2017 Compliance through Testing. Procedure; Development and Commencement with quality plans (control of manufactur- become binding. of Production of Reactor Cores and Their Spare Parts. Assessment of Com- ers’ compliance with the requirements of pliance through Testing Procedure federal standards and rules, working design The Company introduced the System of Vol- • Input into the integrated list of documents related to standardization under GOST R 50.06.01-2017, GOST R 50.07.01-2017, PNST 164-2016, PNST 165- documentation, process flow documen- untary Certification of Production Facilities 2016, PNST 166-2016, PNST 167-201 tation for manufacturing of equipment in at NPP Equipment Manufacturing Enter- a stagewise manner, against quality plan prises for Compliance with Requirements of • Monitoring of products quality for NPPs by means of continuous collec- • Maintenance of use of the analysis data from the supplied equipment quality milestones); Rosenergoatom as Operating Organization2. tion, processing, storage, and analysis of data with the use of software, data base The System is aimed at providing bona fide hardware, and methodical complexes allowing to make managerial • Coordination and approval of decisions on manufacturers (certified within the system) decisions, set the requirements in local regulations of the Company and Rosatom State Corporation. applicability of imported equipment being with advantages in bidding procedures.
1. Validity area: Generation and supply of power, management of design and construction of nuclear industry facilities (follow-up visits of the HQ, the Company’s Branch for Capital Projects Implementation, Balakovo, Kalinin, Smolensk NPPs), certification body – TÜV Rheinland Cert GmbH, certificate registration number 01 100 1. The organizations are authorized by a joint decision of Rosatom State Corporation and Rostekhnadzor No. 06-4421 dated June 25, 2007. 1718842. 2. Registration number in the unified register of voluntary certification systems No. РОСС RU.31086.04ЖИЧ0. 04. Operating Efficiency Annual report 2017 Rosenergoatom 200 — 201
EQUIPMENT MANUFACTURERS CERTIFICATION SYSTEM 102‑21 102‑43 4.7 INTERACTION 102‑44 103‑1 WITH STAKEHOLDERS 103‑2 103‑3
PNST PRE-STANDARD – GENERAL Rosenergoatom strives for ensuring a high level AA PNP FUND CERTIFICATION OBJECTS TECHNICAL REQUIREMENTS... of availability and transparency of its opera- tions by implementing the principle of active The Fund for Promotion of Development of Mu- • QMS 3 item groups (fittings pertaining • Personnel dialog with stakeholders. We support active nicipalities "Association of Areas of Presence of • Equipment capacity to safety class 4, electrical communications with all stakeholders, timely Nuclear Plants" (AA PNP Fund) was established • Industrial processes execution equipment pertaining to safety providing significant information on all aspects in 2013 at the initiative of Rosenergoatom. The • Product documentation class 4, pumps pertaining to of its operations, and responding to requests founding partners are Rosenergoatom and local safety classes 2 to 4). and suggestions of stakeholders. authorities of municipal entities where the NPPs are located. DIRECTORATE FOR CERTIFICATION AUTHORITY The approach to interaction with stakeholders RELATIONS WITH EQUIPMENT (QUALITY SUPERVISION is based on the principles of regular and con- In 2017, the municipal entity of the city of MANUFACTURERS AGENCY) structive dialog, partnership, mutually beneficial Obninsk, Kaluga Oblast joined the Fund Council cooperation, trust and sincerity, public availa- pursuant to the city administration's application. IN 2016, THE NUMBER OF bility and transparency, fulfillment of assumed At present, the Fund unites 14 municipal entities BIDDING MANUFACTURERS obligations1. and territories of nuclear plants presence, and TOTALED 16, AMONG THEM: 11 Russian NPPs.
PRODUCTION QMS AUDIT DOCUMENTATION ANALYSIS INSPECTION MONITORING PUBLIC DISCUSSIONS2 Composition of the Fund, the audit commission (EXPERT REVIEW) (INCLUDING NON-INFRINDGEMENT and the supervisory board was changed in 2017. RELATED TO CERTIFIED 7 102‑40, 102‑42 Sergey Chestikin, Head of the Novovoronezh MANUFACTURER’S PRODUCTS) manufacturers of electrical equipment; Urban District Administration, Voronezh Oblast In strict compliance with legislation of the was elected as a new chairman. Four meetings Russian Federation, when planning its activities of the Fund Council were held in 2017. that may have a considerable impact on the 7 environment and local communities, Rosener- The Fund pays much attention to development Achieving the quality plan milestone (Checkup of Supplying the equipment pertaining to safety class 4 goatom initiates public discussions. Among of international cooperation and partner- manufacturers of fittings; Facilities Readiness for Production Startup) on the subject to acceptance in accordance with the quality the participants are experts representing R&D ship through “public diplomacy”, the Council basis of the Rosenergoatom System certificate issued plant, with the Rosenergoatom System certificate only organizations and designers, supervisory agen- members actively participate in industry-level for the equipment pertaining to safety classes 2 and 3 (without process inspection) cies, federal, regional, and local government events: 2 agencies, NGOs, environmentalists, the press, and the broader public. • 10th regional public forum-dialog (Ekater- manufacturers of pumps. inburg) – Nuclear Energy. Future Technolo- In 2017, over 10 public discussions were held gies – Reducing Environmental Impact; MANUFACTURER’S CERTIFICATION in the areas of the Company’s presence (over ASSESSMENT CRITERION 3,250 participants). The ‘case’ of each discus- • 12th international public forum-dialog (Mos- sion includes 100 or more activities involving cow), including AtomEco 2017 exhibition; communities, public authorities and mass media, and involves explaining of planned • Industry-level workshops on key aspect of activity, and its safety principles for human and achieving state objectives in the areas of • 5% (if two certified manufacturers are available) BIDDING environment. NPPs presence. • 7.5% (if three certified manufacturers are available) • 10% (if at least four certified manufacturers are available) 1. The stakeholders ranking matrix is given in the Company’s 2015 Annual Report (page 181). 2. Public discussions are a set of activities forming part of evaluation of environmental impact of prospective economic and other activity held with a view to inform the public about planned activities and its possible impact on the environment, to identify public preferences and consider them for impact assessment, and to protect the rights, liberty, and legitimate interests of citizens within areas targeted for specific business operations of significance. 04. Operating Efficiency Annual report 2017 Rosenergoatom 202 — 203
AMONG THE PROJECTS IMPLEMENTED AS PART OF information about the state of ecological, radi- of enterprises, the Company annually holds Duma and Federation Council members to the THE 5TH OPEN CONTEST OF SOCIAL PROJECTS OF ation, and energy safety of NPPs. the Energetic People contest for the best Novovoronezh NPP was arranged. THE AAPNP FUND IN 2017 ARE: Results of the 5th open contest treatment of the nuclear industry subject in The Company’s Stakeholders Commission of social projects of the AAPNP regional mass media. The results of the 2017 In November 2017, traditional educational work- • Pilot projects – Careful Clinic (Volgodonsk) comprises representatives of various environ- FUND were summarized on June contest were summarized at the Rostov NPP shops were held in format of a video conference >70 9, 2017. The winners were 42 and Careful City (Sosnovy Bor) aimed at mental organizations and movements, includ- during the Energetic People festival of region- for employees of educational and healthcare PRESS TOURS projects worth 45 mln rubles improving the quality of medical service and ing Nongovernmental Ecological Fund named al and corporate mass media. Participating institutions in municipal entities of NPPs pres- press tours were held at (four projects were additionally municipal services rendered to the population after V.I. Vernadsky, Bellona Ecology and Law in it were journalists from leading periodicals, ence (jointly with Nongovernmental Ecological NPP sites (more than 750 funded in the amount of 2.5 mln (jointly with Rosatom RPS office); Center, Oka Inter-Regional Environmentalist information agencies, radio and TV channels Fund named after V.I. Vernadsky, and the AAPNP participants) in 2017. More rubles for the areas recognized than 1,300 press releases were Movement, Green Cross Inter-Regional Public as the contest winners in 2016). from 18 regions of Russia (some 100 people Fund). Participating in the workshops were some published on the Company’s • Best Municipal Practices (3 projects from Environmental Organization. Representatives All projects were successfully in total, including representatives of press 500 persons. website about the activities of each municipal entity were applied for par- of these organizations participate in key implemented. services of Rosatom enterprises). Mikhail ticipation in the federal contest); The basis events. Kozyrev, a Russian journalist, musical critic, Rosenergoatom and its branches was laid, exchange in the best practices was producer, TV and radio host and actor, was a PUBLIC OPINION SURVEYS – nuclear power plants. organized among the cities of NPPs location, Annual reports on environmental safety of all special guest of the festival in 2017. and with restricted access territories; 10 operating NPPs are issued and published According to the results of social studies per- on the Company’s website (publication of formed by Levada-Center, the balance between • ● The new program for development of small reports for 2017 is scheduled for the second SPECIAL PROJECTS FOR positive and negative evaluations of the nuclear and medium businesses (started in 2017). half of 2018), as well as in interactive annual RELATIONS WITH GENERAL industry development programs among the For selection of projects, the Fund jointly with reports of Rosenergoatom. Public presenta- Russian population averaged 57% in 2017 (the the Association of Restricted Access Territo- tions of environmental reports are held in all PUBLIC AND AUTHORITIES indicator varied from 49.2 to 62.1% during the ries of Nuclear Industry established a Fund municipal entities and regional centers of recent five years). The share of supporters of for Socioeconomic Development of Nuclear NPPs location. From August 10 to September 10, 2017, the nuclear power use in Russia totaled 73.9% Industry Cities; the most promising and so- Multimedia Art Museum in Moscow hosted a (the indicator varied from 66.5 to 75.5% during cially significant projects may seek Rosatom unique joint photo project of two global leaders the recent five years). Thus, the result of 2017 support; INTERACTION WITH MASS MEDIA of the nuclear industry – Rosenergoatom and corresponds to a general trend of the recent Électricité de France (France) in commemora- years and confirms a persistently high level of • Urban Environment federal project. As part of The Company’s interaction with mass media tion of the 25th anniversary of Rosenergoatom. support of the nuclear power industry develop- the project, work was performed to improve hinges on the policy of maximum transpar- 25 French and 5 Russian photographers were ment programs among the Russian population. the residential areas, repair of yards, creation ency and availability. The information on invited to participate in the international photo Preservation of the balance between positive of new recreation zones in all areas; operation of nuclear plants and radiation project (Uniting Energy of Atom. Russia and and negative evaluations is forecast at the level environment in the towns of NPP location is France) allowing to demonstrate the scale of of 55-59% in 2018. • Documentaries were produced for children available on the Company’s official website activities of the two leaders in nuclear power about veterans with their participation. Per- (www.rosenergoatom.ru). Press releases and generation. formances will stage on their basis in the DOC information communications are posted there BLOGOSPHERE AND SOCIAL format; without delays. Real-time information about A most important area of informational interac- NETWORKS radiation monitoring of Russian NPPs may be tion is educational work among population and • A joint Russian-Hungarian project (started in found at: www.russianatom.ru. communities. Exhibitions located in Community 2017) – the contest of children’s photos, In Information Centers of NPPs receive from 3 to 5 Work was intensified to highlight the Company's Arms of Nature, was organized by the AAPNP All nuclear power plants have 24/7 automatic thousand visitors each year. activities in social networks. The total number of Fund in cooperation with Rosenergoatom and responding machines providing information Rosenergoatom corporate accounts followers in Paks NPP (Hungary): more than 350 children about current operation of NPPs, and radiation Atom Classes is one of the unique education- social networks (Vkontakte, Facebook, Insta- aged between 14 and 17 from the areas of environment on a daily basis. Public Aware- al projects1. A new Atom Class was opened gram) in 2017 grew by almost 6 times (versus presence. Photo exhibitions of the winners ness Centers at nuclear plants have a chain of in Moscow in 2017, additional software and 2016) and exceeded 9,500 persons (1,650 per- were held in all areas of the Company’s pres- Clean Energy clubs as a meeting place for lo- equipment was purchased in order to maintain sons as of the end of 2016). ence, and the best works were presented at cal reporters who regularly write on the issues the activities of Atom Classes in all cities of the the international forum-dialog AtomEco 2017. of the nuclear sector. Company's presence. Training workshops were held in 2017 for the Company’s branches – nuclear plants. The In 2017, more than 70 press tours were held at Over 130 technical tours for regional and local workshops were devoted to the subject of the en- LIAISON WITH NPP sites (more than 750 participants). More authorities, and general public were held in terprises' activities promoting in social networks NON-GOVERNMENTAL AND than 1,300 press releases were published on 2017. Participating in such tours were over with involvement of SMM management experts. the Company’s website about the activities of 2,500 people. ENVIRONMENTAL ORGANIZATIONS Rosenergoatom and its branches – nuclear This work will be continued in 2018 at the level of power plants. In June 2017 as part of the IAEA international Rosenergoatom and NPPs. A corporate contest Rosenergoatom is active in partnering with conference in Ekaterinburg, the Beloyarsk NPP for the best pubic in social networks will be held 1. Additional information regarding the non-governmental environmental organizations In order to improve the competences among was attended by 250 foreign experts. In April among NPPs, and new accounts of Rosenergoa- project may be found in the Compa- that have a real possibility to obtain unbiased personnel of mass media and press services 2017, a technical tour of the Russian State tom will be created in Twitter and Telegram. ny’s 2015 Annual Report, page 135. 04. Operating Efficiency Annual report 2017 Rosenergoatom 204 — 205
INTERACTION AS THIS ANNUAL devoted to Discussing Prioritized Subjects of STAKEHOLDERS COMMISSION REPORT WAS PREPARED 2017 Annual Report. The participants had a tour over the floating power unit, asked their In 2017, the Commission members participated questions about disclosure in the annual report in discussing the urgent matters of Rosenergoa- In view of the nature of the Company’s activity, of the information related to the results of 2017 tom development, including the stakeholders’ the following subjects were selected as the and measures ensuring safety of Russian NPPs, dialogs on discussing prioritized subjects of the THE COMMISSION'S EFFORTS priority issues of the Annual Report in 2017: and key innovative projects. Participating in the 2016 Annual Report (February 2017 – a visiting ARE AIMED AT: Safe Operation of NPPs, and Technological Dialog were representatives of public and envi- meeting (dialog) at the Beloyarsk NPP), and Leadership and Innovations. Representatives of ronmental organizations, research and educa- public consultations on the draft 2016 Report • Ensuring public acceptance key stakeholder groups were involved in dialogs tional institutions, Rosatom State Corporation, (April 2017 – at the Company's Headquarters). of the nuclear power industry discussing the overall concept, priority issues etc. development in Russia; and the draft of the Annual Report, as well as In addition, members of the Commission active- • Providing collective participated in public affirmation of the Report. Public consultations on the draft Annual Report ly participated in exhibitions and other events recommendations for were held on April 20, 2018 at the Company’s arranged for the public throughout the year, decision making in the area of Dialog No.1 was held in November 2017 in the Headquarters and involved a wide range of stake- including the ATOMEXPO-2017 International sustainable development of form stakeholders questioning. The Dialog was holders, representatives of government bodies Forum, and the international public forum-dialog Rosenergoatom and the nuclear ROSENERGOATOM industry in general; devoted to Discussing Concept of 2017 Annu- and local authorities, public and environmental IN SOCIAL NETWORKS: and exhibition AtomEco-2017. al Report of Rosenergoatom. All participants organizations, mass media, Rosenergoatom • Communicating with population received the draft concept of the Company’s branches and subsidiaries, etc. Stakeholders • Vkontakte: and NGOs on the matters Annual Report. Representatives of stakeholders were familiarized with the draft Annual Report, https://vk.com / rearu related to nuclear power use. could express their comments and suggestions expressed their respective suggestions, notes • Facebook: on the Company’s report and activities. and comments. https://www.facebook.com / rosenergoatom.ru / Dialog No.2 was held on February 22, 2018 in The suggestions and comments received during • Instagram: the format of a visiting meeting in Saint Peters- the dialogs and public consultations are speci- https://www.instagram.com / burg at the Academician Lomonosov floating fied in the table of suggestions by stakeholders rosenergoatom_ru / power unit under construction. The Dialog was (Appendix 4).
CHANGES IN NUMBER OF ROSENERGOATOM FOLLOWERS IN SOCIAL NETWORKS Instagram OVER 2017 Vkontakte 4,269 Facebook
3,320
2,700
2,269
1,800 1,968 1,386 1,416 1,506 1,008 1,172 715
Q1 2017 Q2 2017 Q3 2017 Q4 2017
CHANGES IN NUMBER OF DIALOGS PARTICIPANTS, PERS. Dialog 1 (INCLUDING VIDEOCONFERENCING) Dialog 2 Public consultations 2015 34 42 52 2016 52 100 50 2017 32 116 65 04. Operating Efficiency Annual report 2017 Rosenergoatom 206 — 207
102‑21 4.8 PUBLIC REPORTING SYSTEM
The following regulatory documents were used • Global Reporting Initiative (GRI) Sustainability • Rosatom State Corporation’s Public Account- • Procedure for Preparation of the Company’s in preparation of the Annual Report: Reporting Guidelines; ability Policy; Annual Report; Additional information about the Company’s public reporting • Federal Law dated December No.208-FZ • АА1000 series of standards housed by Ac- • Unified Industry-Level Procedural Guidelines • List of Standard Elements of the Company’s system may be found in the 2014 dated December 26, 1995 on Joint Stock countAbility АА1000 CIC (Community Interest for Public Reporting of Rosatom State Corpo- Public Annual Reporting; Annual Report (page 158). Companies; Company); ration and Its Organizations; • Regulations on the Company’s Stakeholders • Federal Law No. 402-FZ dated December 6, • Integrated Reporting Standard of the Interna- • Rosenergoatom Ethics Code. Commission. 2011 on Corporate Accounting; tional Integrated Reporting Council (IIRC); Rosenergoatom annual reports are prepared on • Regulation on Information Disclosure by Is- • Public Non-Financial Reporting Development the basis of the regulatory documents approved suers of Securities (approved by Order of the Concept (approved by the Russian Federation by orders of the Company’s CEO: Central Bank of the Russian Federation No. Government Resolution No.876-r dated May 5, 454-P dated December 30, 2014); 2017); • Unified Industry-Level Procedural Guidelines for Public Reporting of Rosatom State Corpo- • Letter of the Central Bank of the Russian Fed- • Key Performance Indicators. Recommendations ration and Its Organizations (approved in 2017 eration No.06-52/2463 dated April 10, 2014 of the Russian Union of Industrialists and Entre- by the order of Rosatom State Corporation); on Recommendations for Applying Corporate preneurs (RSPP) on their use within managerial Governance Code; practices and corporate non-financial reports; • Rosenergoatom Public Reporting Policy;
PUBLIC REPORTING AWARDS OF 2017 PUBLIC REPORTING SYSTEM IMPROVEMENT AREAS IN 2017–2018
Russian Contests Action Plans for 2017 Results of 2017 Plans for 2018
Regulatory • Pursuing new trends in report- • Revision of the regulatory document – Unified Indus- • Pursuing new trends in reporting, includ- Public reporting contest among Rosatom State Winner of the Best Public Report According to Stakeholder Representatives nomination base improve- ing, including new standards (if try-Level Guidelines of Rosatom State Corporation for ing new standards (if available) Corporation organizations ment available) Public Reporting, enacted by the Company • Rotation of the Stakeholder Commission • Rotation of the Stakeholder Com- • Stakeholder Commission composition rotated members Annual reports contest of RA EXPERT rating agency 5 Star rating awarded (Best Quality Report) mission members • Foreign stakeholders involved, including EDF represent- • Involvement of foreign stakeholders • Attraction of foreign stakeholders atives (France) during the events commemorating the 20th Annual Reports Contest of the Moscow Exchange Short listed (Top 10) in the Best Non-Public Company Report nomination Company’s 25th anniversary
rd Corporate Transparency of Russian Companies 2017 3 place in the final rating of the Leader in Corporate Transparency Among State Companies Personnel • Participation in workshops, study- • Participation in workshops, roundtable discussions, • Participation in workshops, studying of rating nomination; development ing of best practices conferences dedicated to reporting with a view to best practices master best practices International Contests Research and • Opinion polls among stakeholders • Public opinion reviewed in the areas of presence, ques- • Public opinion polls and questionnaire surveys in the areas of presence tionnaire survey held during dialogs on discussing the surveys among stakeholders, including Hermes Creative Awards 2017 Platinum winner in the Publications / Annual Report nomination • Collection and accounting of report those in the areas of presence suggestions • Collection and accounting of suggestions • Collection and accounting of sugges- DotComm Awards 2017 Platinum winner in the Online Annual Report, and the Online Communications nominations tions Promotion • Holding of dialogs at NPPs • Dialog with stakeholders at the Beloyarsk NPP (Febru- • Dialogs with stakeholders, including a MarCom Awards 2017 Platinum winner in the Corporate Social Responsibility, the Corporate Report, and the Power • Participation in Russian and inter- ary 21, 2017) and public consultations (April 2017) visiting dialog to the FNPP (completed) Engineering Company Report nominations national contests of reports • Participation in annual report contests • Participation in Russian and international • Promotion in social networks and • Promotion in social networks and mass media contests of reports LACP Spotlight Awards / LACP Inspire Awards Two gold medals in the Print: Annual Report, and the Annual Report nominations. No. 46 in the mass media • Report presentation • Promotion in social networks and mass overall rating of the world’s top 100 companies • Report presentation media • Presentation of the report at NPP sites. Appendices Annual report 2017 Rosenergoatom 208 — 209
APPENDICES
Appendix 1. About Annual Report. Material Aspects 210 Annual Accounting Statements 258
Appendix 2. Corporate and Contact Details 214 Appendix 11. Report on Rosenergoatom’s Compliance with Corporate Governance Code Recommended Appendix 3. GRI, RSPP Content Index 215 by the Bank of Russia 261 Appendix 4. Table on Consideration of Suggestions Appendix 12. Operating NPP Power Units 270 by Stakeholders 231 Appendix 13. Installed Capacity and Power Output Appendix 5. System of Public Reporting Indicators of Nuclear Power Plants of Rosenergoatom at Rosenergoatom 237 in 2015-2017 by Russian UES 271 Appendix 6. Public Assurance Statement 242 Appendix 14. Main Personnel Characteristics 272 Appendix 7. Non-Financial Audit Report 245 Appendix 15. Glossary 274 Appendix 8. Report of Internal Control Department Appendix 16. Abbreviations 277 of Rosenergoatom 248 Appendix 17. Rosenergoatom Historical Background 278 Appendix 9. Accounting (Financial) Statements 249 Appendix 18. Feedback Form 279 Appendix 10. Auditor’s Report Certifying Appendices Annual report 2017 Rosenergoatom 210 — 211
102-46 APPENDIX 1. 102-50 102-51 102-52 ABOUT ANNUAL REPORT. 102-54 102-56 MATERIAL ASPECTS.
DESCRIPTION OF REPORT Accuracy implemented to ensure that the selected priority subjects were relevant and significant
Reporting cycle Annual The data contained in the Report is accurate for preparation of the Report according to and detailed to the extent that the stakeholders the Global Reporting Initiative standards for Report format Integrated, as nine previous ones may assess the Company’s activities on its sustainability reporting – the GRI Standards. basis. Stakeholder representatives were invited to Prioritized Report subjects • Safe operation of NPPs discuss the Report through dialogue, public • Technological leadership and innovations Material presentation clarity consultations, and public affirmation. Inter- GRI disclosure level Comprehensive option under the GRI Standards action with stakeholders was arranged as The information is published in the form acces- recommended by the Stakeholder Interaction Date of previous Report June 2017 sible and clear to the widest public. Standard AA1000 SES. publication
Report coverage Rosenergoatom, including branches – operating NPPs, and those under construction Comparability Rosenergoatom’s top executive management Information about subsidiaries is given in individual cases was involved in preparation of the Report The information is published in the form through questionnaire surveying and selection Forms of reporting information • Auditor’s report certifying annual financial statements allowing for the stakeholders to assess the of material aspects of activity. assurance • Non-financial audit report • Report of the Internal Control Department on auditing of the public report building Company’s activities in the course of time and process compare it to the activities of other organiza- This Annual Report discloses key performance tions. indicators of business operations for the period between January 1 and December 31, 2017, Timeliness and describes Rosenergoatom’s outlooks for growth, information on the strategic goals and Rosenergoatom’s integrated report com- Sustainable development context The Company’s Annual Report is published activities aimed at laying the basis for long- bines a traditional annual report of a public on an annual basis in line with the approved term sustainability. joint stock company, and a sustainability Information on the Company’s activities is schedule. There are no considerable deviations report. The Report is subject to approval by included in a potentially wider context of from the deadlines for annual public reporting. 102‑45 the general meeting of stockholders. sustainable development aspects (including the context of the UN Sustainable Development 102‑46 This Annual Report covers information on Goals). performance of Rosenergoatom and its branch 102‑32 companies (nuclear power plants). The Annual REPORT BUILDING PROCESS Significance and completeness of the Report Report comprehensively discloses financial, The report has been prepared in compliance information During the annual report building process, the economic, and production-related information with the global standards for sustainability context of the Rosenergoatom’s operations in on Rosenegoatom’s key activities, as well as reporting - GRI Standards, as well as the The Report covers all of the most significant 2017 was subject to analysis. Just as before, their economic, environmental, and social International Integrated Reporting Frame- impacts of the Company's activities on the safety of NPPs operation remained one of the impact. work and Rosatom State Corporation Public economy, environment, and the society. Rosenergoatom’s focuses. Rosenergoatom Reporting Policy. defined another prioritized subject as Tech- LEVEL OF ANNUAL REPORT COMPLIANCE WITH GRI Balance nological Leadership and Innovations taking STANDARDS: COMPREHENSIVE 102‑54 into account the suggestions of stakeholders, The Report is compiled in consideration of the the urgency of technological leadership and 102-46 102-56 When preparing the Report, Rosenergoatom reporting year events irrespective of their posi- innovations on the global scale. In addition, applied the following principles: tive or negative nature. we described the influence of this subject on Disclosure of information in the Annual various aspects of the Rosenergoatom’s ac- Report: the Comprehensive option under the Interaction with stakeholders when Reliability tivity in the reporting year and in the medium GRI Standards is proven by an independent preparing the Report term. third-party audit. To conduct an independent The information is collected, registered, sys- third-party audit, Rosenergoatom annually Significant subjects of the Report were de- temized, analyzed, and displayed in such a way The principles of highlighting material as- hires an independent auditor as determined fined with participation of stakeholders. that it may be verified and confirmed. pects and interacting with stakeholders were during the relevant tender. Appendices Annual report 2017 Rosenergoatom 212 — 213
DIFFERENCES FROM 2016 ANNUAL REPORT At the same time, with a view to update the list RANKING MAP OF MATERIAL ASPECTS OF ACTIVITY (GRI STANDARDS AND IIRC FRAMEWORK) of significant subjects and to identify additional 102‑49 issues interesting to stakeholders, a question- The 2016 Annual Report difference is in the naire survey was held among representatives of 50 47 1,00 prioritized report subjects given in the Report stakeholders in late 2017. All suggestions were Building Process subsection. considered and taken into account, if possible, when preparing the Report. In addition, the received suggestions will be used to complete DISCLAIMER the procedures for adjustment and identification 1;9 Information included in this Annual Report of significant subjects for disclosure in the 2018 contains, among other things, estimates and Report1. 20 other forecasts as an attempt to describe 19 49 future events or future financial activities of The ranking map was updated on the basis Rosenergoatom. Such estimates and fore- of the survey results. The methodology is as 14 10 casts are speculative by their nature, and may follows: the horizontal axis reflects the aspect 2;35, 3 48 ultimately differ from real-life events or results. significance for the company according to the 0,50 42;51 17 Forecast information is disclosed before the survey among Rosenergoatom’s top managers, respective reporting period begins. Many of the vertical axis reflects the aspect significance the existing factors may cause actual results for stakeholders according to the survey among to significantly depart from those stated in them. Indicator values on each axis were deter- our assumptions or estimates. This includes mined as a ratio between the number of pos- general economic conditions, competitive envi- itive answers to the total number of respond- ronment, risks related to the operations inside ents. The threshold value was determined to be 6 and outside Russia, changes in technologies equal to 0.5 on either axis. The aspects entering AND DECISIONS OF STAKEHOLDERS ON EVALUATION INFLUENCE and the market situation in the nuclear power the said zone, taking into account the working industry, and other factors relevant to Rosener- group’s opinion, were considered material. They 0,00 goatom's business. are marked in red and green. 0,00 0,50 1,00
For additional updates on Rosenergoatom’s The description of impact boundaries for the SIGNIFICANT ECONOMIC, ENVIRONMENTAL, AND SOCIAL INFLUENCES activities, please visit http://www.rosenergoa- aspects is provided in Rosenergoatom’s 2013 tom.ru Annual Report (pages 36-37). All material as- pects are important for the organization within 1. Economic performance 31. Rights of indigenous and small peoples 2. Market presence 32. Evaluation the report perimeter. There are no specific SELECTING MATERIAL ASPECTS 3. Indirect economic impacts 33. Evaluation of suppliers’ respect for human rights limits regarding aspect boundaries within the OF ACTIVITY 4. Procurement practices 34. Procedures for submitting complaints on violation organization. The issue of on-the-job injuries 5. Materials of human rights 6. Energy 35. Local communities 102-46 102-47 102-48 102-49 103-1 in supplying companies is considered material outside the organization. 7. Water 36. Corruption Prevention 8. Biodiversity 37. State policy In the process of developing the concept and 9. Emissions 38. Competitive barriers content of the Annual Report, the Company No restatements of the indicators are provid- 10. Discharges and waste 39. Conformance to requirements (society) used the results of the questionnaire survey- ed in the previous reports. All data provided 11. Products and services (ecology) 40. Evaluation of suppliers’ impact on society ing among stakeholder representations and is correlated with the previous reports. The 12. Conformance to requirements (ecology) 41. Procedures for submitting complaints on social top management of Rosenergoatom held in Emissions aspect has been deemed immate- 13. Transport impacts 14. General information (ecology) 42. Consumer health and safety December 2014 as part of the first dialog with rial because NPP emission values are situated 15. Evaluation of suppliers (ecology) 43. Marking of products and services stakeholders. close to the low limit of indicator measurement. 16. Procedures for submitting complaints (ecology) 44. Marketing communications 17. Occupation 45. Consumer privacy 18. Relations between employees and management 46. Conformance to requirement 19. Occupational health and safety 47. Safe operation of NPPs * 20. Training and education 48. Reliability of electricity supplies to consumers* 21. Diversification and equal opportunities 49. Public acceptance* 22. Equal remuneration of women and men 50. Interaction with state supervision agencies and 23. Evaluation of suppliers’ labor relation practices non-governmental organizations* 24. Procedures for submitting complaints on labor 51. Company transparency* relation practices 52. Charity and sponsorship projects* 25. Investments 53. Interaction with trade unions* 26. Non-discrimination 27. Freedom of associations and collective bargaining Purple and blue font — material aspects; 28. Child labor black font – immaterial aspects; 29. Forced and compulsory labor Rosenergoatom specific aspects are marked with 1. Information about the questionnaire survey is given in Appendix 4. Table on Consideration of Suggestions by Stakeholders, page 231. 30. Safety assurance practices asterisks (*). Appendices Annual report 2017 Rosenergoatom 214 — 215
APPENDIX 2. CORPORATE 102-55 APPENDIX 3. GRI, AND CONTACT DETAILS RSPP CONTENT INDEX
Full Name: Russian Concern for Production of Registrar Details: Registrar R.O.S.T. (Joint Stock GRI Content Index for Comprehensive Report Prepared in the GRI Standards1, RSPP Electric and Thermal Energy at Nuclear Power Company). Plants (Joint Stock Company). Registrar Location: Moscow. GRI Standard RSPP Information Disclosure Disclosure Comprehensiveness / Report Page Non-Compliance Abbreviated Name: (GRI Standards Index Comment / Report Section and/or URL Rosenergoatom. Registrar Address: 107996, Moscow, ul. Stromyn- Match) ka, d. 18, korpus 13 102-1, 102-5 GRI 101: Foundation 2016
Details of License for Share Register Manage- General Disclosures Location: 25 Ferganskaya Street, 109507, ment: Comprehensive Option Moscow. GRI 102: Organizational Profile License Number: 045-13976-000001 General 102-3 Disclosures Issue Date: December 3, 2002 2016 Contact Phone: +7 (495) 647-41-89. Licensing Authority: Federal Commission for Secu- 102-1 Name of the Appendix 2. Corporate and Contact Page 214 Fax: +7 (495) 647-46-03. rities Market organization Details 102-2 Activities, brands, 1.1. General Information Page 20 Email: [email protected] License Period: without restriction of the validity products, and services period. Website: http://www.rosenergoatom.ru 102-3 Location of head- Appendix 2. Corporate and Contact Page 214 quarters Details Stockholders Details: Auditor Details: Accountants & Business 102-4 Business geog- Business Geography Page 2–3, 20 The Company runs its business in two Advisers (Limited Liability Company), loca- as of December 31, 2017: Rosatom State Cor- raphy 1.1. General Information countries tion: 101990, Moscow, ul. Myasnitskaya, poration – 12.4849%, Atomenergoprom JSC – 44/1, str. 2AB, Primary State Registration 87.5151%; 102-5 Ownership and Appendix 2. Corporate and Contact Page 214 legal form Details Number: 1027700058286, Taxpayer Identifi- cation Number/Taxpayer Classification Code: as of December 31, 2016: Rosatom State Cor- 102-6 Markets served Business Geography Page 2–3, 7701017140/770101001. poration – 9.9780%, Atomenergoprom JSC – 2.1. Situation in Power Sector 50–51 90.0220%; 102-7 Scale of the Key Performance Indicators in 2015-2017 Page 4–7, 20, organization 1.1. General Information 123 as of December 31, 2015: Rosatom State Cor- 3.1. Financial Stability poration – 8.3941%, Atomenergoprom JSC – 91.6059%. 102-8 Information on Appendix 14. Main Personnel Page 272 The average staff number is disclosed employees and other Characteristics in breakdown by region and gender. Con- workers tractors’ total number of employees is not accounted for. The data collection system does not permit to provide information on this indicator in full. The staff breakdown by employment contract and employment type is not specified.
102-9 Supply chain 1.3. Value Creation Page 25
102-10 Significant Key Events of 2017 Page 174, 196 changes to the organiza- 1.1. General Information tion and its supply chain 4.5. Purchase Management
1. The Report passed external assurance by a third-party auditor. Appendix 7 – Non-Financial Audit Report, page 245. Appendices Annual report 2017 Rosenergoatom 216 — 217
GRI Standard RSPP Information Disclosure Disclosure Comprehensiveness / Report Page Non-Compliance GRI Standard RSPP Information Disclosure Disclosure Comprehensiveness / Report Page Non-Compliance (GRI Standards Index Comment / Report Section and/or URL (GRI Standards Index Comment / Report Section and/or URL Match) Match)
102-11 Precautionary 1.5. Risk Management Page 34, 84–89 Governance principle 2.3. Ensuring Safety of Russian NPPs 102-18 Corporate 4.1. Corporate Governance Page The Board of Directors of Rosenergoa- 102-12 External 1.1. General Information Page 22, Governance Structure 172–174 tom has no committees initiatives 2.6. International Sci-Tech Cooperation 108–111 102-19 Delegating 4.1. Corporate Governance Page 102-13 Membership of 1.1. General Information Page 22, authority Regulation on the Board of Directors: 172–174 associations 2.6. International Sci-Tech Cooperation 108–111 http://www. rosenergoatom.ru/re- sources/0728e8804f4b0980aa0daac Sector EU1 2.2. Generating Capacities. Developing Page 52–53, 8c4699268/Pologenie_sd.pdf. Disclosures – Generating Potential 270, 271 (Pages 14–15) Electric Appendix 12. Operating NPP Power Utilities Units 102-20 Executive-level 4.1. Corporate Governance Page Appendix 13. Installed Capacity and responsibility for eco- 172–174, Power Output of Nuclear Power Plants nomic, environmental, 182–183 of Rosenergoatom in 2015-2017 by and social issues Russian UES 102-21 Consulting 4.7. Interaction with Stakeholders Page Special consultations among stake- stakeholders 4.8. Public Reporting System 201–205, holders and the supreme corporate EU2 2.2. Generating Capacities. Develop- Page 52–53, on economic, 206–207 governance body are not held. ing Generating Potential 270, 271 environmental, and Appendix 12. Operating NPP Power social issues Units Appendix 13. Installed Capacity 102-22 Composition of 4.1. Corporate Governance Page The Board of Directors of Rosenergoa- and Power Output of Nuclear Power the supreme corporate 175–178 tom has no committees Plants of Rosenergoatom in 2015- governance body and 2017 by Russian UES its committees
EU3 Not applicable as the Company is not 102-23 Chairman of 4.1. Corporate Governance Page 176, responsible for sales activity the supreme corporate 178 governance body EU4 Not applicable as the Company is not responsible for power transmission 102-24 Appointment 4.1. Corporate Governance Page 175 and election of the EU5 Not applicable as emissions of СО2 and corporate governance equivalents are negligible body
Strategy 102-25 Conflict of 4.1. Corporate Governance Page 186, interests 4.2. Economic Security 188 102-14 Statement from Address by Board of Directors Chairman Page 13, Regulation on the Board of Directors: senior decision-maker Address by CEO 14–15 http://www. rosenergoatom.ru/re- sources/0728e8804f4b0980aa0daac 102-15 Key impacts, 1.4. Strategic Goals and Objectives Page 8c4699268/Pologenie_sd.pdf. risks, and opportunities 1.5. Risk Management 22–33, (Pages 5–6) 34–37 102-26 Role of the 4.1. Corporate Governance Page Ethics and Integrity supreme corporate Regulation on the Board of Directors: 172–173 governance body in http://www. rosenergoatom.ru/re- 102-16 Values, 3.5. HR Policy Page 147, setting purpose, values sources/0728e8804f4b0980aa0daac principles, standards, 4.1. Corporate Governance 186, 188, and strategy 8c4699268/Pologenie_sd.pdf. (Pages 2) and norms of behavior 4.2. Economic Security 261 Appendix 11. Corporate Governance 102-27 Collective GRI, RSPP Content Index Special measures for generation and Code Compliance Report knowledge of the improvement of collective knowledge of supreme corporate gov- the supreme corporate governance body 102-17 Mechanisms for 4.1. Corporate Governance Page 186 ernance body members members are not taken. advice and concerns about ethics Appendices Annual report 2017 Rosenergoatom 218 — 219
GRI Standard RSPP Information Disclosure Disclosure Comprehensiveness / Report Page Non-Compliance GRI Standard RSPP Information Disclosure Disclosure Comprehensiveness / Report Page Non-Compliance (GRI Standards Index Comment / Report Section and/or URL (GRI Standards Index Comment / Report Section and/or URL Match) Match)
102-28 Assessment of 4.1. Corporate Governance Page 181 Interaction with Stakeholders the supreme corporate governance body 102-40 Stakeholder list 4.7. Interaction Page 201 activities with Stakeholders
102-41 Collective agree- 3.7. Social Policy. Developing Areas of Page 161 Collective bargaining agreements were 102-29 Identifying and 1.5. Risk Management Page No special consultations with Stakeholders ments Presence. Charity. made by and are applicable to all oper- managing economic, 4.1. Corporate Governance 34–37, 171 are held. ational nuclear plants and those under environmental, and Regulation on the Board of Directors: construction, as well as the Headquarters, social impacts http://www. rosenergoatom.ru/re- and embrace all employees of the said sources/0728e8804f4b0980aa0daac structural units of the Company. 8c4699268/Pologenie_sd.pdf. (Pages 2)
102-30 Effectiveness 1.5. Risk Management Page 102-42 Identifying and 4.7. Interaction with Stakeholders Page 201 of risk management 4.1. Corporate Governance 34–37, 171 selecting stakeholders processes Regulation on the Board of Directors: http://www. rosenergoatom.ru/re- 102-43 Approach to 4.7. Interaction with Stakeholders Page 201–205 sources/0728e8804f4b0980aa0daac stakeholder engagement 8c4699268/Pologenie_sd.pdf. (Pages 2) 102-44 Key issues and 4.7. Interaction with Stakeholders Page 210–205, 102-31 Review of eco- 4.1. Corporate Governance Page concerns raised Appendix 4. Table on Consideration of 231 nomic, environmental, 172–173, Suggestions by Stakeholders and social issues 178–180 Reporting 102-32 Supreme corpo- Appendix 1. About the Report. Relevant Page 210 rate governance body’s Subjects 102-45 Entities includ- Appendix 1. About the Report. Relevant Page 211 The Report information and data cover the role in sustainability ed in the consolidated subjects activities of the Companies and its branch- reporting financial statements es (NPPs).
102-33 Communicating 4.1. Corporate Governance Page 171 102-46 Defining the Appendix 1. About the Report. Relevant Page 210–212 Critical Concerns Regulation on the Board of Directors: Report content and subjects http://www. rosenergoatom.ru/re- subject boundaries sources/0728e8804f4b0980aa0daac 8c4699268/Pologenie_sd.pdf. (Pages 9) 102-47 Subject list Appendix 1. About the Report. Relevant Page 212–213 subjects 102-34 Nature and 4.1. Corporate Governance Page total number of critical 178–180 102-48 Restatements Appendix 1. About the Report. Relevant Page 212 concerns of information subjects
102-35 Remuneration 4.1. Corporate Governance Page 186 102-49 Changes in Appendix 1. About the Report. Relevant Page 212 policy reporting subjects
102-36 Process for de- 4.1. Corporate Governance Page 186 102-50 Reporting period Appendix 1. About the Report. Relevant Page 210 termining remuneration subjects
102-37 Stakeholders’ 4.1. Corporate Governance Page 186 102-51 Date of the Appendix 1. About the Report. Relevant Page 210 involvement in most recent report subjects remuneration
102-38 Total annual The indicator is not disclosed as there 102-52 Reporting cycle Appendix 1. About the Report. Relevant Page 210 compensation is no accounting for median wage with- subjects out account of the best-compensated person. 102-53 Contact details Appendix 18. Feedback Form Page 279 for reporting related questions 102-39 Percentage The indicator is not disclosed as there 102-54 Requirements Appendix 1. About the Report. Relevant Page 210–211 This Report is prepared in accordance with increase in total annual is no accounting for median wage with- for reporting in ac- subjects GRI Standards: Comprehensive option compensation out account of the best-compensated cordance with the GRI person. Standard Appendices Annual report 2017 Rosenergoatom 220 — 221
GRI Standard RSPP Information Disclosure Disclosure Comprehensiveness / Report Page Non-Compliance GRI Standard RSPP Information Disclosure Disclosure Comprehensiveness / Report Page Non-Compliance (GRI Standards Index Comment / Report Section and/or URL (GRI Standards Index Comment / Report Section and/or URL Match) Match)
102-55 Content index GRI, RSPP Content Index Page 215 202‑2 100% of top managers (deputy CEOs of the Company – directors of branches – operat- ing NPPs and NPPs under construction) are 102-56 External Appendix 1. About the Report. Relevant Pages 210, 211, citizens of the Russian Federation, where assurance subjects 242, 245 the Company operates. Workforce migration Appendix 6. Public Assurance State- only occurs within the Company’s branches. ment Top managers in the areas of the Company’s Appendix 7. Non-Financial Audit Report core activities (regions where NPPs are located) are not hired from among the local GRI 103: 103-1 Subjects content Appendix 1. About the Report. Relevant Page 212 community. Management and their boundaries subjects Approach GRI 203: Indirect Economic Impacts 2016 2016 GRI 103: 103-1 Relevant subjects 3.7. Social Policy. Developing Areas of Page 165–167 ECONOMICS Management description and their Presence. Charity GRI 201: Economic Performance 2016 Approach boundaries, 103-2 2016 Management approach GRI 103: 103-1 Relevant subjects 3.4. Financial Stability Page 123–129 and its components, Management description and their 103-3 Evaluation of the Approach boundaries, management approach 2016 103-2 Management approach and its com- GRI 203: Indi- 203‑1 3.7. Social Policy. Developing Areas of Page 165–167 ponents, rect Economic Presence. Charity 103-3 Evaluation of the Impacts 2016 management approach 203‑2 3.5. Social Policy. Developing Areas of Page 165–167 Presence. Charity GRI 201: 1.2, 201-1 Direct economic 3.4. Financial Stability Page 123–129 Economic 1.3, value generated and GRI 204: Procurement Practices 2016 Performance 1.4, distributed 2016 1.5, GRI 103: 103-1 Relevant subjects 4.5. Purchase Management Page 195–196 1.6 Management description and their Approach boundaries, 103-2 201-2 Evaluation of financial implications and 2016 Management approach other risks and opportunities for the and its components, activities of the organization due to climate 103-3 Evaluation of the change was not carried out. management approach
201-3 3.7. Social Policy. Developing Areas of Page 163–164 Presence. Charity GRI 204: 204‑1 4.5. Purchase Management Page 196 Procurement 201-4 3.2. Investment Program Page 130–131 The government does not participate in the Practices organization as a stockholder. The govern- 2016 ment provided no financial assistance in the reporting period. GRI 205: Anti-Corruption 2016
GRI 202: Market Presence 2016 GRI 103: 103-1 Relevant subjects 4.2. Economic Security Page 188–189 Management description and their GRI 103: 103-1 Relevant subjects 3.7. Social Policy. Developing Areas of Page 165–167 Approach boundaries, 103-2 Management description and their Presence. Charity 2016 Management approach Approach boundaries, 103-2 and its components, 2016 Management approach 103-3 Evaluation of the and its components, management approach 103-3 Evaluation of the management approach GRI 205: 205‑1 4.2. Economic Security Page 188–189 The risks connected with corruption are GRI 202: 202‑1 3.5. HR Policy Page 149 Employees’ salaries do not depend on their Anti-Corrup- evaluated on the basis of specific facts Market Pres- gender tion 2016 (communications) with respect to all ence 2016 subsidiaries. Appendices Annual report 2017 Rosenergoatom 222 — 223
GRI Standard RSPP Information Disclosure Disclosure Comprehensiveness / Report Page Non-Compliance GRI Standard RSPP Information Disclosure Disclosure Comprehensiveness / Report Page Non-Compliance (GRI Standards Index Comment / Report Section and/or URL (GRI Standards Index Comment / Report Section and/or URL Match) Match)
205‑2 4.2. Economic Security Page 188–189 All regular employees and governing bodies 302‑4 Energy consump- 2.2. Generating Capacities. Developing Page 83 Due to changes in the Company’s data col- of the Company have been informed about tion decrease Generating Potential lection system and processing procedures, the existence of the Anti-Corruption Policy the reporting for 2016 does not present in the organization and the policy practic- information related to this indicator in full. es. The data collection system used by Not disclosed: indicator value in J. the Company does not permit to provide information on this indicator in full. There is 302-5 Decrease in ener- Not applicable no breakdown of the number and share of gy capacity of products employees who passed training and educa- and services tion by category and region. GRI 303: Water 2016 3.3.4 205‑3 4.2. Economic Security Page 188–189 GRI 103: 103-1 Relevant sub- 3.3. Environmental Impact Page 132–139 Availability and Reliability Management jects description and GRI 103: 103-1 Relevant subjects 1.4. Strategic Goals and Objectives Page 29–33 Approach their boundaries, 103-2 Management description and their 2016 Management approach Approach boundaries, and its components, 2016 103-2 Management 103-3 Evaluation of the approach and its com- management approach ponents, GRI 303: 2.3, 303‑1 3.3. Environmental Impact Page 135–136 103-3 Evaluation of the Water 2016 2.3.1 management approach
G4 Sector EU10 Construction of nuclear power industry 303‑2 3.3. Environmental Impact Page 134 Disclosures – facilities is carried out in accordance with Electric Utili- the energy strategy of the Russian Federa- 2.4 303‑3 3.3. Environmental Impact Page 134, 136 ties 2013 tion until 2030, and the master plan of the GRI 306: Effluents and Waste 2016 power industry facilities location until 2020, and up to 2030. GRI 103: 2.12 103-1 Relevant subjects 3.3. Environmental Impact Page 132–139 ENVIRONMENT Management description and their Approach boundaries, GRI 302: Energy 2016 2016 103-2 Management approach and its compo- GRI 103: 103-1 Relevant subjects 3.3. Environmental Impact Page 132–139 nents, Management description and their 103-3 Evaluation of the Approach boundaries, management approach 2016 103-2 Management approach and its com- GRI 306: 2.7, 2.7.1, 306‑1 3.3. Environmental Impact Page 134–137 ponents, Effluents and 2.7.2, 2.8, 103-3 Evaluation of the Waste 2016 2.8.1, 2.12 management approach 2.9, 2.10, 306‑2 3.3. Environmental Impact Page 137 The Company abides by the classification GRI 302: 2.2 302-1 Energy 2.2. Generating Capacities. Developing Page 83 The Company’s data collection system is 2.12 set forth in the Russian Federation Govern- Energy 2016 consumption inside the Generating Potential based on energy consumption accounting ment Resolution No. 1069 dated October organization in metric units. The Company intends to 19, 2012 on Criteria for Solid, Liquid and present the 302-1 disclosures in full in Gaseous Waste Referral to Radioactive subsequent reports. Waste, Criteria for Referral of Radioactive 302-2 Energy con- Energy consumption outside the organiza- Waste to Special Radioactive Waste and to sumption outside the tion is not accounted for. Disposal Radioactive Waste, and Disposal organization Radioactive Waste Classification Criteria.
302-3 Energy capacity The indicator is not accounted for due to 2.12 306‑3 There were no significant spills in the the limits applicable to the indicator 302-1. reporting period. Appendices Annual report 2017 Rosenergoatom 224 — 225
GRI Standard RSPP Information Disclosure Disclosure Comprehensiveness / Report Page Non-Compliance GRI Standard RSPP Information Disclosure Disclosure Comprehensiveness / Report Page Non-Compliance (GRI Standards Index Comment / Report Section and/or URL (GRI Standards Index Comment / Report Section and/or URL Match) Match)
2.12 306‑4 NPPs do not transport, import, or export G4 Sector EU18 100% of the Company’s contractor and hazardous waste. Disclosures – subcontractor employees attend health Electric Utili- and safety training. 2.12 306‑5 3.3. Environmental Impact Page 136 NPPs did not discharge any waste water ties 2013 outside the schedule in 2017. The Compa- ny did not discharge hot water since NPPs GRI 402: Labor/Management Relations 2016 do not discharge hot water into surface wa- ters thanks to the branch channel system GRI 103: 103-1 Relevant subjects 3.1. HR Policy Page 147–156 and coolers. Management description and their Approach boundaries, GRI 307: Environmental Compliance 2016 2016 103-2 Management approach and its compo- GRI 103: 2.12 103-1 Relevant subjects 3.3. Environmental Impact Page 132–139 nents,103-3 Evaluation Management description and their of the management Approach boundaries, 103-2 approach 2016 Management approach and its components, GRI 402: 3.1 402‑1 The Company complies with legislation of 103-3 Evaluation of the Labor/Man- the Russian Federation (Labor Code) with management approach agement Rela- respect to minimum notice periods re- tions 2016 garding significant operational changes. GRI 307: 2.12 307‑1 3.3. Environmental Impact Page 132–138 The collective bargaining agreement Environmental provides for the notice on coming staff Compliance reduction. The indicated term is two 2016 weeks.
SOCIETY GRI 403: Occupational Health and Safety 2016 GRI 401: Employment 2016 GRI 103: 103-1 Relevant subjects 3.6. Labor Protection Page 157–160 GRI 103: 103-1 Relevant subjects 3.5. HR Policy Page 147–156 Management description and their Management description and their Approach boundaries, 103-2 Approach boundaries, 103-2 2016 Management approach 2016 Management approach and its components, and its components, 103-3 Evaluation of the 103-3 Evaluation of the management approach management approach GRI 403: 403‑1 3.6. Labor Protection Page 157 Occupational GRI 401: 3.1.1 401-1 Appendix 14. Main Personnel Character- Page 272 The data collection system used by the Health and Employment istics Company does not permit to provide 403‑2 3.6. Labor Protection Page 157–160 The data collection system used by the Safety 2016 2016 information on this indicator in full. Not Company does not permit to provide infor- disclosed: breakdown of the number and mation on this indicator in full. The Compa- share of newly hired employees by gender ny intends to present the 403-2 disclosures and age; breakdown of the total number in subsequent reports. of outgoing employees by gender and age; Rosenergoatom and industry-level docu- breakdown of employee turnover by age ments do not stipulate any requirements The Company intends to present the 401-1 for maintaining rates of injury, occupational disclosures in subsequent reports. diseases, lost days, and absenteeism data. Information about the system of rules used 401‑2 All employees enjoy benefits irrespective of in registration of occupational accidents is the number of their working hours. contained in the Labor Code of the Russian Federation. 401‑3 The information collection system used by the Company does not permit to calculate 3.1.5, 3.1.6, 403‑3 3.4. Radiation Effect on Personnel and Page 140 Some employees of Rosenergoatom are the number of employees who were entitled 3.1.7 Population professionally involved in activities asso- to maternity/paternity leave, the number of ciated with occupational hazard. These employees who took a leave and returned categories of employees are distributed from the leave; the number of employees according to classes of labor conditions. who continued work in 12 months after return to work, and the retention factor. Approximately 100% of employees return to 3.1.8, 403‑4 3.6. Labor Protection Page 157 work after a child care leave. 3.1.9 Appendices Annual report 2017 Rosenergoatom 226 — 227
GRI Standard RSPP Information Disclosure Disclosure Comprehensiveness / Report Page Non-Compliance GRI Standard RSPP Information Disclosure Disclosure Comprehensiveness / Report Page Non-Compliance (GRI Standards Index Comment / Report Section and/or URL (GRI Standards Index Comment / Report Section and/or URL Match) Match)
GRI 404: Training and Education 2016 GRI 410: Secu- 410‑1 Standard duty regulations for all of the Com- rity Practices pany’s employees provide for knowledge of GRI 103: 103-1 Relevant subjects 3.5. HR Policy Page 149–151 2016 and compliance with legislation of the Rus- Management description and their sian Federation, this includes conformance Approach boundaries, with human rights. No third-party personnel 2016 103-2 Management are involved in this type of work. approach and its com- ponents, GRI 411: Rights of Indigenous Peoples 2016 103-3 Evaluation of the GRI 103: 103-1 Relevant subjects 3.1. HR Policy Page 147–156 management approach Management description and their Approach boundaries, 103-2 GRI 404: 404‑1 3.5. HR Policy Page 150 The breakdown by gender is not recorded. 2016 Management approach Training and The Company intends to present the 404-1 and its components, Education disclosures in full in subsequent reports 103-3 Evaluation of the 2016 management approach
3.1.10, 404‑2 The system of obligatory training of GRI 411: 411‑1 No incidents of violations involving rights 3.1.11 employees adopted in Rosenergoatom Rights of of indigenous and small peoples were provides for enhancing knowledge in the Indigenous identified in the reporting period. area of labor safety, and acquisition of first Peoples 2016 aid skills in case of occupational accidents and in everyday life. Educational and GRI 412: Human Rights Assessment 2016 mandatory training programs implemented in the Company enhance the professional GRI 103: 103-1 Relevant subjects 3.1. HR Policy Page 147–156 level of employees and their subsequent Management description and their employment in case of dismissal. Approach boundaries, 103-2 2016 Management approach 404‑3 3.5. HR Policy Page 155 and its components, 103-3 Evaluation of the GRI 407: Freedom of Association and Collective Bargaining 2016 management approach
GRI 103: 103-1 Relevant subjects 3.5. HR Policy Page 147 GRI 412: 3.2.3 412‑1 Human rights compliance or human rights Management description and their Human Rights impact assessment was not performed. Approach boundaries, Assessment 2016 103-2 Management 2016 approach and its com- 412‑2 Once employed, 100% of employees are ponents, made familiar with internal labor rules, 103-3 Evaluation of the policies, and procedures of the Company, management approach including those related to human rights aspects. Every employee is trained for at GRI 407: 3.2.2 407‑1 The Company builds up its activity in strict least two hours. Freedom of compliance with the applicable legislation Association of the Russian Federation. In the report- 412‑3 All existing investment agreements are and Collective ing period there were no restrictions on concluded in strict compliance with Bargaining freedom of associations and collective requirements of the Russian legislation, 2016 bargaining. and provide for conformance with human rights. No separate evaluation of conform- GRI 410: Security Practices 2016 ance with human rights is carried out.
GRI 103: 103-1 Relevant subjects 3.5. HR Policy Page 147–156 GRI 413: Local Communities 2016 Management description and their Approach boundaries, GRI 103: 103-1 Relevant subjects 3.7. Social Policy. Developing Areas of Page 165–167 2016 103-2 Management Management description and their Presence. Charity approach and its com- Approach boundaries, 103-2 ponents, 2016 Management approach 103-3 Evaluation of the and its components, management approach 103-3 Evaluation of the management approach Appendices Annual report 2017 Rosenergoatom 228 — 229
GRI Standard RSPP Information Disclosure Disclosure Comprehensiveness / Report Page Non-Compliance GRI Standard RSPP Information Disclosure Disclosure Comprehensiveness / Report Page Non-Compliance (GRI Standards Index Comment / Report Section and/or URL (GRI Standards Index Comment / Report Section and/or URL Match) Match)
GRI 413: Local 3.3.3 413‑1 3.7. Social Policy. Developing Areas of Page 165–166 Pursuant to the Russian Federation laws, in G4 Sector EU25 3.5. HR Policy Page 147–156 Communities Presence. Charity all cases of planning of the activity which Disclosures – 2016 may significantly affect the environ- Electric Utili- ment and local population, the Company ties 2013 participates in public hearings and public discussions. GRI 419: Socioeconomic Compliance 2016
413‑2 The Company has no subsidiaries which GRI 103: 103-1 Relevant subjects 2.3. Ensuring safety of Russian NPPs Page 84–89 significantly or adversely affect, in fact or Management description and their potentially, the local community. Taking Approach boundaries, into account the high level of safety of 2016 103-2 Management modern NPPs, nuclear plants cannot be approach and its com- considered as such subsidiaries. ponents, 103-3 Evaluation of the G4 Sector EU22 The Company did not perform any activity management approach Disclosures – requiring displacement of people. Electric Utili- GRI 419: So- 419‑1 No incidents of non-compliance with legal ties 2013 cioeconomic or statutory requirements were identified Compliance in the reporting period. In the reporting GRI 415: Public Policy 2016 2016 period no significant fines were applied to the Company for non-compliance with legal GRI 103: 103-1 Relevant subjects 2.5. Contribution to Russian Digital Page 102–107, and statutory requirements. Management description and their Economy. Information technology 116–119, Approach boundaries, 103-2 2.7. International Business and New 190–193 Access 2016 Management approach Products and its components, 4.3. Internal Control and Auditing GRI 103: 103-1 Relevant subjects 2.2. Generating Capacities. Developing Page 52–83 103-3 Evaluation of the Management description and their Generating Potential management approach Approach boundaries, 2016 103-2 Management GRI 415: Pub- 415‑1 Pursuant to the Federal Law No. 135-FZ approach and its com- lic Policy dated August 11, 1995 on Charitable Activ- ponents, ities and Organizations, and the Guidelines 103-3 Evaluation of the for Accounting of Charitable Contributions management approach (approved by Order No. 1/811-P dated September 26, 2011 of Rosatom State G4 Sector EU10 Appendix 13. Installed Capacity and Page 271 Corporation), no financial contributions for Disclosures – Power Output of Nuclear Power Plants political purposes are allowed. Electric Utili- of Rosenergoatom in 2015-2017 by ties 2013 Russian UES GRI 416: Customer Health and Safety 2016
GRI 103: 103-1 Relevant subjects 3.4. Radiation Effect on Personnel and Page 140–146, Management description and their Population 161–164 Approach boundaries, 103-2 3.7. Social Policy. Developing Areas of 2016 Management approach Presence. Charity and its components, 103-3 Evaluation of the management approach
GRI 416: Cus- 416‑1 2.3. Ensuring safety of Russian NPPs Evaluation of nuclear, radiation, industrial, tomer Health technical, and fire safety is performed and Safety throughout the life cycle. 2016
3.4.2 416‑2 2.3. Ensuring safety of Russian NPPs Page 84–86, No incidents of non-compliance with regu- 88–89 lations and voluntary codes concerning the impact on health and safety of products and services were identified in the reporting period Appendices Annual report 2017 Rosenergoatom 230 — 231
Specific Subjects of Rosenergoatom 102-44 APPENDIX 4. TABLE
BASIC STANDARD ASPECTS OF REPORTING ON CONSIDERATION OF Subject Report Section Report Page SUGGESTIONS BY STAKEHOLDERS Safe Operation of Nuclear Plants 2.3. Ensuring safety of Russian NPPs Page 84–89, 140–146 103-1, 103-2, 103-3 3.4. Radiation Effect on Personnel and Population
Reliability of Electricity Supplies to Consumers 2.1. Situation in Power Sector Page 45–51 (Pursuant to Results of Dialogs with Stakeholders Regarding 2017 Annual Report 103-1, 103-2, 103-3 of Rosenergoatom) Public Acceptance 4.6. Interaction with Stakeholders Page 201–205 103-1, 103-2, 103-3
Interaction with State Supervision Agencies and 4.6. Interaction with Stakeholders Page 201–205 Non-Governmental Organizations 1. CONSIDERATION OF PREVIOUSLY ASSUMED OBLIGATIONS OF REPORTING CAMPAIGN 2016-2017 103-1, 103-2, 103-3
Product Selling Prices 2.1. Situation in Power Sector Page 45–51 Suggestions by Stakeholders Consideration of Suggestions 103-1, 103-2, 103-3 Describing in the report the advantages of the Company’s consolidation, Accounted for in Section 2.1 – Situation in Power Sector. Company Transparency 4.6. Interaction with Stakeholders Page 201–205 including those in the global market. 103-1, 103-2, 103-3 Specifying the details of the strategy, the goals, and the approaches to Accounted for in Section 1.4 – Development Strategy and Risk Manage- Social Responsibility 3.7. Social Policy. Developing Areas of Presence. Charity Page 161–167 implementation. ment. 103-1, 103-2, 103-3 Drawing attention to intangible assets value, their evaluation and influence Accounted for in Section 1.3 – Business Model and Capitals. on the Company value.
Covering the information on Workspace Management. Will be considered during the 2018 report preparation
Taking efforts to adapt international standards to Russian reality and the Suggestion within Rosatom State Corporation competence. nuclear power industry specifics.
Considering the provisions of the Paris climate agreement, and expressing Will be accounted for in the following reports. the Company’s stand on this matter.
Performing monitoring of the Company’s positions in international ratings Accounted for in the Company's Awards section. and indices, and supplementing the next year’s report with such information.
2. CONSIDERATION OF SUGGESTIONS MADE DURING REPORTING CAMPAIGN OF 2017-2018
Suggestions by Stakeholders Consideration of Suggestions
SUGGESTIONS RESULTING FROM DIALOG 1 (IN ABSENTIA)
Report Concept Related Suggestions
Stockholders
1. Supplementing the regulatory documents with the Public Non-Financial Reporting Development Concept. Accounted for.
2. Changing the wording of Chapter 4 as the results that will be stated there have been achieved not only by Accounted for. the management, but the whole team of Rosenergoatom. Supplementing Chapter 3 with the sustainability management approaches (agenda), or including this information in Section 1.5 about the strategy.
Business Partners
3. Considering the practicability of spending funds for the interactive version of the Report. Creation of the interactive version of the Report is reasonable due to high web traffic and good usability of the online version. Appendices Annual report 2017 Rosenergoatom 232 — 233
Suggestions by Stakeholders Consideration of Suggestions Suggestions by Stakeholders Consideration of Suggestions
4. Moving the Historical Background section to the appendices containing background information. Accounted for. The section was moved Business Partners into Appendix 17. 13. Shall be supplemented with relevant subjects: Partially rejected as the Emissions, and 5. Increasing the number of assuring persons in order to ensure representativeness (ecologists currently Partially considered. A dominating 1. Combating Corruption. Environmental Compliance subjects prevail). share of environmental organizations is 2. Environmental Compliance. in accordance with the GRI Standards reasoned by the fact that these stake- 3. Emissions. terminology are irrelevant for the holders are one of the most important Company. The information related to groups. Environmental Compliance, and Emis- sions is disclosed in the Report section 6. The saying that Rosenergoatom is the nation’s largest power generating company is not correct (RusHy- In terms of power output, Rosenergoa- of Environmental Impact. The informa- dro, Gazprom Energoholding, and Inter RAO are larger in terms of installed capacity; Rosseti – geography of tom is the nation’s largest company. tion related to Combating Corruption is presence and personnel number). disclosed in the Report Section 4.1 – Corporate Governance. Environmental and Non-Governmental Organizations 14. Showing the company's influence on socioeconomic development of the areas of presence. Accounted for. The information is st 7. The table of contents does not separately mention the section pertaining to the 1 subject – Safe Oper- Accounted for. disclosed in the Report Section 3.7 – ation of NPPs. It is included as a sub-section into Section 2 – Technological Leadership and Innovations, Social Policy. Developing Areas of which, in turn, has to be focused on the subject of technological and other innovations, which may be referred Presence. Charity. to sub-sections of Section 2. Therefore, the general concept of Section 2 is still unclear. Environmental and Non-Governmental Organizations Research and Educational Institutions, Expert Community 15. If a decision is made to update the relevance pattern (in accordance with the presentation, it was created Accounted for. The questionnaire survey 8. A sub-section of Section 2 – Situation in Power Sector refers more to Section 1, than to Section 2. This is Rejected due to inexpediency, as in November 2015), then it is necessary to deal with the whole set of subjects, including those specified in was made during public consultations more logical, this is how it was presented in the 2016 Report. Section 2 is devoted to the Company’s the GRI, but not with separate ones. And each subject shall be double assessed (against both axes). In case related to the Report draft on April 20, activities related to power generation. the decision is made to work with these subjects only (not understandable why), double assessment shall be 2018. made anyway, otherwise the map won’t be able to include these subjects. 9. Section 3 could be supplemented with the Strategic Goals article, before the Investment Program, as tech- Rejected due to inexpediency, as gener- nological leadership and the investment program are not only important by themselves, but for achievement al strategic goas and benchmarks are Research and Educational Institutions, Expert Community of certain strategic and current goals. given in Section 1 – Overview. 16. Item 37 of the Relevant Aspects List – State Policy in Nuclear Power Industry may be added. At the Rejected as the State Policy subject in 10. Section 4 could be supplemented in the context of prioritized subject 2 with the events related to RPS The information about RPS projects present stage of increasing the share of renewable energy sources in the power sector,–the state policy in accordance with the GRI Standards is management with involvement of R&D and innovations, i.e. innovations aimed at RPS goals and objectives, is given in Section 2.2 – Generating the nuclear power industry in various countries is very important as it defines the corporate development irrelevant for the Company. including inter-sector and inter-divisional RPS projects. Capacities. Developing Generating sustainability and the possibility of investing in future projects. Potential.
Prioritized Report Subjects Related Suggestions Suggestions on Information Disclosure in Report
Business Partners Subsidiaries and Branches
11. Taking into account that Year 2017 is the year of ecology in Russia, it is reasonable to consider contribu- Accounted for in Section 3.4 – Envi- 17. Expanding the information regarding subsidiaries, specifying core businesses and economic indicators in Accounted for in Section 1 – Overview tion of NPPs in reduction of greenhouse gas emissions. ronmental Impact, and Section 3.4 approximately the same way as regarding Rosenergoatom branches. – Radiation Effect on Personnel and Population Business Partners
Suggestions Related to Defining Material Report Aspects List 18. Trying not to be limited with disclosure of prioritized subject No. 2 in Section 3.1 only. Accounted for. Section 2 – Technologi- cal Leadership and Innovations is fully Subsidiaries and Branches devoted to prioritized subject No. 2 12. Shall be supplemented with the aspects of New Products and Services, including Those in Extra-Industry The New Products and Services subject 19. Reporting the information regarding the Company’s participation in achievement of strategic targets by Accounted for in Section 1 – Overview, Market. will be discussed by stakeholders in subsidiary companies. and Section 4.1 – Corporate Govern- 2018 among relevant subjects with a ance. view to update the relevant subjects of the Company's annual reports. In the 20. Disclosing the following information in the Report: Accounted for in Section 2.1 – Situation 2017 Report, the subject is revealed in 1. Vision of the domestic wholesale electricity and capacity market future, and Rosenergoatom role/posi- in Power Industry. Section 2.7 – International Business tion in it. and New Products. 2. Role of NPPs in the UES of Russia.
21. Participation of the Company in the work aimed at creating the digital platform of the life cycle manage- Accounted for in Section 2.5 – Contribu- ment at complex capital facilities. tion to Digital Economy. Appendices Annual report 2017 Rosenergoatom 234 — 235
Suggestions by Stakeholders Consideration of Suggestions Suggestions by Stakeholders Consideration of Suggestions
Environmental and Non-Governmental Organizations 34. Considering the possibilities of using hybrid technologies (with wind plants, smart grid systems, etc.). The suggestion will be considered in the future. 22. If there is some certainty (in general or in local projects/work) in relation to the Company's participation Accounted for in Section 2.5 – Contri- in digital transformation of the industry, then it shall definitely be mentioned. Probably, this shall be noted in bution to Digital Economy of Russia. 35. Participating in the WorldSkills movement (and AtomSkills), including arrangement of competitions for NPP Accounted for (the information is given addresses by top managers in general. Information Technology operators, and training various experts in the nuclear industry. in the Key Events of 2017 section.
Research and Educational Institutions, Expert Community 36. In case there are innovative developments, they shall be patented and mentioned in the Report. Accounted for in Section 2.4 – Inno- vations. Sci-Tech Policy. Knowledge 23. The 2017 Report shall describe the subject of Risk Identification and Management System as well as in 2016, Partially accounted for in Section Management System. the risk of operation in the domestic electricity and capacity market may be added due to the update in certain 1.4 – Strategy and Risk Management. rules of the Russian power market. Updating of the list of key risks is under 37. In case research institutions are involved in R&D, the institutions shall be broadly involved in communications, Will be considered during the 2018 supervision of Rosatom State Corpo- and the research subjects shall be included in discussions with stakeholders. Report preparation. ration. Auditing and Consulting Organizations 24. Describing the goals and objectives of the DPC in more detail is suggested to the Company. This is important Accounted for in Section 2.5 – Contri- in the context of the 2nd prioritized subject and the issues of digital technologies implementation in the processes bution to Digital Economy of Russia. 38. When substantiating innovative activities of the Company, the following definition shall be used: “Innovation is Will be considered during the 2018 management. Information Technology. not only invention of novelties, but finding new aspects in old solutions.” Report preparation.
25. If NPPs decommissioning is a new serious business of the Company today, then special attention shall be paid to Accounted for in Section 2.2 – Generat- SUGGESTIONS RESULTING FROM PUBLIC CONSULTATIONS this line in the context the Technological Leadership subject. ing Capacities. Developing Generating Potential. Suggestions on Information Disclosure in Report
26. Does the Company have a policy (or it is the domain of Rosatom) in relation to the projects of medium and small Rejected as the FNPP project is the Business Partners scale? If Rosenergoatom participates in developing these lines, then the information shall be given, except for the Company’s top priority in the area of 39. Reducing the Report volume. Partially accounted for (the volume will FNPP, as small-scale nuclear power generation is developing at a high pace in various countries. small-scale power generation at the be reduced owing to appendices and the moment. interactive version). SUGGESTIONS RESULTING FROM DIALOG NO. 2 40. Considering the viability of combining different GRI formats, integrated reporting and UN sustainable develop- Will be considered during the 2018 Suggestions on Information Disclosure in Report ment goals in a single report. Report preparation
Stockholders Environmental and Non-Governmental Organizations
27. Defining the position of the FNPP : why the floating plant is used? Is it a pilot or serial oject?pr What novelties Accounted for in Section 2.4 – Inno- 41. Including the materials of the environmental expedition by the Oka Inter-Regional Environmentalist Movement to Will be considered during the 2018 does it feature? Will the FNPP be used in remote areas of the Russian North only? Will the FNPP be regarded as vations. Sci-Tech Policy. Knowledge the Leningrad NPP into the report, in terms of public relations. Report preparation replacement capacity of the Bilibino NPP that will be decommissioned in the coming years (if no, then the range of Management System. 42. Taking efforts to adapt international standards to Russian reality and the nuclear power industry specifics. The suggestion is related to Rosatom the FNPP power consumers may be very small)? State Corporation. 28. The question related to what exactly will be the novelty of the FNPP project shall be answered. Partially accounted for in Section 2.4 – 43. Arranging future discussions at neutral sites to enable wider external connections and expand the range of Will be considered during the 2018 Innovations. Sci-Tech Policy. Knowledge stakeholders. Report preparation Management System. 44. Suspending the practice of visiting meetings at the Company’s nuclear plants Will be considered during the 2018 Environmental and Non-Governmental Organizations Report preparation 29. When preparing the Report, attention shall be paid to the interview given by Alexander Lokshin, Chairman of the Accounted for in Section 2.7 – Interna- 45. A suggestion related to the Report structure alteration: Disclosing 25-28 indicative subjects with preparation of The suggestion will be considered Board of Directors to the Kommersant Newspaper in 2017, where he unveils the plans of the Company's commerciali- tional Business and New Products. very serious expanded topical appendices during the 2018 Report preparation, zation. The Company shall answer if this is achievable. however in line with applicable reporting 30. Human capital shall be highlighted in the Report. Accounted for in Section 3.5 – HR requirements (Russian laws, corporate Policy; Section 3.6 – Labor Protection; standards, etc.). Section 3.7 – Social Policy. Developing 46. As part of future activities of the Company, with absolute priority of the safety issues, attention shall be paid to Accounted for. Areas of Presence. Charity. developing human capital, including a considerable increase in the minimum wage, a decrease in the gap between 31. Care shall be taken when defining the FNPP as an innovative project. This project is obsolete, inter alia, in terms Will be accounted for in the future. the minimum and maximum wages, avoidance of job cut, and labor productivity growth through production ramp-up. of safety. As the feasibility of the project is not substantiated, the Report shall mention that the project will be as- 47. Selecting several UN Sustainable Development Goals, and including the information on the work done into the Accounted for. sessed in the process of operation. Report. 32. Mentioning the youth relations and involving the youth in public hearings in the future. Accounted for in Section 3.5 – HR Research and Educational Institutions, Expert Community Policy. 48. Supplementing the intellectual property related section with the information about entry of intellectual property in Will be considered during the 2018 Research and Educational Institutions, Expert Community the books (what amount is entered in the books and commercialized) Report preparation 33. The Report shall pay special attention to analytical information related to the situation in the power market, Accounted for in Section 1.5 – Risk 49. Giving more details regarding the information about two power units of the Baltic NPP (current conservation Accounted for. including return on investments, strategic risk planning, and competitors' operations analysis, which is important. Management, and Section 2.1 – Situa- stage, ongoing operations), and the required comments tion in Power Industry. Appendices Annual report 2017 Rosenergoatom 236 — 237
Suggestions by Stakeholders Consideration of Suggestions APPENDIX 5. SYSTEM OF PUBLIC
50. Disclosing the information in the Report regarding the potential sites, which have already been investigated, for Will be considered during the 2018 NPPs construction, with no construction work started. The present status shall be specified. Report preparation REPORTING INDICATORS
51. The Report section regarding the digital economy in the Company’s activities shall be supplemented with the Accounted for. information security subject. AT ROSENERGOATOM
52. Providing details of the Company’s direct participation in the Russian Digital Economy program, specifying the Accounted for. program areas urgent for the Company, and the major effects for the Company from transition to smart energy.
53. Providing more information about the subject of power units decommissioning. Accounted for.
Indicator Item Report Section / Chapter
Mainline Activity Efficiency
Electricity Supply to National Economy
1.1.1. Electricity generation by 1.1.1.1. Share of electricity produced by NPPs in the total power 2.2. Generating Capacities. Developing NPPs output of the Russian Federation Generating Potential
1.1.1.2. Electricity production by nuclear power plants in the report- 2.2. Generating Capacities. Developing ing period Generating Potential
1.1.2. Use of installed capacity 1.1.2.1. NPP capacity factor 2.2. Generating Capacities. Developing of NPPs Generating Potential
1.2.1. Power units capacity 1.2.1.1. Target for increase of equivalent capacity 2.2. Generating Capacities. Developing increase Generating Potential
1.2.1.3. Number of retrofitted VVER-1000 units (in reporting period 2.2. Generating Capacities. Developing and total) Generating Potential
1.2.1.4. Number of retrofitted RMBK units (in reporting period and 2.2. Generating Capacities. Developing total) Generating Potential
1.2.2. Service life of power units 1.2.2.1. Number of power units with service life extended to 15 2.2. Generating Capacities. Developing years in the reporting period Generating Potential
1.2.2.2. Number of NPP power units for which the documents for 2.2. Generating Capacities. Developing service life extension, upgrade and retrofitting were prepared Generating Potential
1.2.3. Power units operation 1.2.3.5. Total reduced time of planned repairs, after rescheduling, 2.2. Generating Capacities. Developing mode including through Generating Potential • reducing repair times; • rescheduled repair start without changing its total duration.
1.2.3.7. Availability ratio 2.2. Generating Capacities. Developing Generating Potential
1.3.1. Power units built and 1.3.1.1. Number of power units under construction in the Russian 2.2. Generating Capacities. Developing commissioned in the Russian Federation Generating Potential Federation
Securing Leadership for Russian Companies in Global Markets
2.1.1. Financial Stability 2.1.1.1. Gross profit 3.1. Financial Stability
2.1.1.2. Total profit tax accrued and paid 3.1. Financial Stability
2.1.1.3. Net operating profit after taxes (NOPAT) 3.1. Financial Stability
2.1.1.4. Income (total products (work and services) sold) 3.1. Financial Stability Appendices Annual report 2017 Rosenergoatom 238 — 239
Indicator Item Report Section / Chapter Indicator Item Report Section / Chapter
2.1.2. Production efficiency 2.1.2.1. Labor productivity 3.1. Financial Stability 5.3.3. Floating NPP 5.3.3.1. Description of work accomplished in the reporting year 2.4. Innovations. Sci-Tech Policy. Knowl- edge Management System. 2.1.2.2. Own production efficiency (added value) 3.1. Financial Stability 5.4.3. Line of fast breeder reactors 5.4.3.1. Description of work accomplished in the reporting year 2.4. Innovations. Sci-Tech Policy. Knowl- 2.1.3. Financial Stability 2.1.3.1. Debt / equity ratio 3.1. Financial Stability edge Management System.
2.1.3.2. Significant funds obtained from the government 3.1. Financial Stability 5.5.2. Radiation technologies 5.5.2.2. Description of plans for radiation technology development 2.4. Innovations. Sci-Tech Policy. Knowl- (targets, tasks, and efficiency) edge Management System. 2.2.1. Positions of Russian engineering 2.2.1.1. Number of power plants under construction abroad (in the 2.7. International Business and New in global NPP construction market reporting period) Products Creating Efficient Management Mechanisms for Nuclear Industry
2.3.1. Investments in equity in the 2.3.1.1. Total spending under the investment policy (indicating the share 3.2. Investment Program 6.1.2. Implementation of the Rosatom 6.1.2.1. Results of implementation of the program to raise production 2.2. Generating Capacities. Developing reporting period of funds used to retrofit plants and technology) Production System project efficiency (reduced area of preparation shops; shorter production cycle; Generating Potential fewer defects per specific components; lower manufacturing cost of Assurance of Nuclear and Radiation Safety specific equipment; and greater output in specific product positions)
4.1.1. Projects to create national sys- 4.1.1.1. Pieces of legislation to support creation of unified state sys- 2.3. Ensuring Safety of Russian NPPs 6.1.2.2. Economic benefit from implemented production development 2.2. Generating Capacities. Developing tems to process RAW and SNF tems for RAW and SPF handling were adopted programs and cost reduction in business units Generating Potential
4.1.4. Emergency response and read- 4.1.4.1. Description of reliable safety barriers for nuclear and radiation 2.3. Ensuring Safety of Russian NPPs 6.1.3. Reorganizing financial and 6.1.3.1. Evaluation of reorganization results (evaluation of targets 4. Operating Efficiency iness hazardous sites, and their life cycle planning economic management achieved)
4.1.4.2. Description of the emergency response system, including 2.3. Ensuring Safety of Russian NPPs 6.1.5. Purchase management 6.1.5.1. Tools used to ensure more open and transparent purchasing 4.5. Purchase Management improvement of safety control monitoring systems at nuclear power facilities, organization of professional rescue teams 6.1.5.2. Total savings as a result of open tender purchasing procedures 4.5. Purchase Management (% and rubles) 4.1.4.3. Description of public alert and communication systems 2.3. Ensuring Safety of Russian NPPs 6.1.6. Developing in-house 6.1.6.1. Projects to develop communication channels between executives 3.5. HR Policy 4.1.4.4. Description of protection system for employees, population, 3.4. Radiation Effect on Personnel and communication and employees 4.7. Interaction with Stakeholders and areas in radiation emergencies Population 6.1.8. Risk Management 1.5. Risk Management 4.1.5. Assuring physical protection of 4.1.5.1. Description of up-to-date engineering and technological sys- 3.4. Radiation Effect on Personnel and nuclear power facilities tems of control and personnel access management Population 6.1.9. IT-based management 6.1.9.1. List of IT implementation projects 2.5. Contribution to Russian Digital Econo- my. Information technology 4.2.2. Violations during handling 4.2.2.1. Number of registered cases at nuclear power facilities in ac- 3.4. Radiation Effect on Personnel and of nuclear and radiation hazardous cordance with the International Nuclear Event Scale (INES) Population 6.1.11. Control of financing and busi- 4.3. Internal Control and Auditing materials ness activities
4.3.1. Decommissioning 4.3.1.1. Number of decommissioned nuclear and radiation hazardous 2.3. Ensuring Safety of Russian NPPs Making Development of Nuclear Power Industry Publicly Acceptable sites 7.1.1. Public reports of the Company 7.1.1.1. Compliance with international requirements for non-financial Appendix 1. About the Report. Relevant 4.4.1. Reclamation of contaminated 4.4.1.1. Area of reclaimed contaminated territories There are no contaminated territories and its organizations reporting and interaction with stakeholders subjects territories 7.1.1.2. Interaction with stakeholders while preparing public reports 4.7. Interaction with Stakeholders. Creating Innovative Nuclear Technologies and Promoting Them to Various Sectors of Economy Appendix 1. About the Report. Relevant subjects 5.1.1. Inventions related to use 5.1.1.1. Number of patents, utility models, and industrial samples 2.4. Innovations. Sci-Tech Policy. Knowl- of nuclear power edge Management System. 7.1.1.3. Compliance with corporate requirements to public reporting Appendix 1. About the Report. Relevant subjects 5.1.2.3. Expenses on R&D 2.4. Innovations. Sci-Tech Policy. Knowl- edge Management System. 7.1.2. Industry information resources 7.1.2.1. Number of information centers 4.7. Interaction with Stakeholders
7.1.2.2. Public and culture activities (museums, popular science, career 3.5. HR Policy consulting, and others) 4.7. Interaction with Stakeholders
7.1.2.3. Industry-level mass media 4.7. Interaction with Stakeholders 5.2.2. Participation in international 5.2.2.1. Participation in implemented international innovation projects 2.6. International Sci-Tech Cooperation innovation projects (INRFC, ITER, Generation-IV, and FAIR) 2.7. International Business and New 9.1.2. Training for Employees 9.1.2.1. Employees subject to routine performance evaluation and career 3.5. HR Policy Products development 5.3.1. VVER-TOI 5.3.1.1. Description of work accomplished in the reporting year 2.4. Innovations. Sci-Tech Policy. Knowl- 9.1.2.3. Expenses on training of employees 3.5. HR Policy edge Management System 9.1.3. Building and using human 9.1.3.1. Number of employees in the succession pool 3.5. HR Policy 5.3.1.2. Work plan implementation progress 2.4. Innovations. Sci-Tech Policy. Knowl- reserves edge Management System. Appendices Annual report 2017 Rosenergoatom 240 — 241
Indicator Item Report Section / Chapter Indicator Item Report Section / Chapter
9.1.3.2. Share of employees appointed to vacant positions from the 3.5. HR Policy 12.4.5.2. Number of cases when established standard exposure limits 3.4. Radiation Effect on Personnel and succession pool were exceeded Population
EFFICIENCY IN SUSTAINABLE GROWTH 12.4.5.4. Share from the total number of employees subject to individual 3.4. Radiation Effect on Personnel and radiation control, included in the ARMIR system Population Environmental Impact (Impact on Environment and Environmental Protection) 12.4.5.5. Share of employees exposed to negligible risk of radiation 3.4. Radiation Effect on Personnel and 11.1.4. Initiatives to reduce hazardous 11.1.4.1. Information on initiatives to reduce hazardous atmospheric 3.3. Environmental Impact Population atmospheric emissions, reduction emissions achieved 12.4.5.6. Share of employees exposed to life-long radiation risk 3.4. Radiation Effect on Personnel and Population 11.1.5. Initiatives to reduce harmful 11.1.5.1. Information on initiatives to reduce harmful discharges to water 3.3. Environmental Impact discharge to water bodies, reduction bodies INFLUENCE ON SOCIOECONOMIC SITUATION IN AREAS OF PRESENCE achieved Interaction with Society 11.1.5.2. Quantitative data on reduction of harmful discharges to water 3.3. Environmental Impact bodies 13.2.1. Preparing restricted access 13.2.1.1. Preparing restricted access municipalities development program3.7. Social Policy. Developing Areas of municipalities development program Presence. Charity 11.1.11. Environmental management 11.1.11.1. Number of structural units certified for compliance with ISO 3.3. Environmental Impact systems adopted in structural units of 14001 13.4.1. Charity projects and the volume 13.4.1.1. Charity projects and the volume of funds for these projects 3.7. Social Policy. Developing Areas of the Corporation of funds for these projects Presence. Charity
11.2.5. Consumption of water for own 11.2.5.1. Consumption of water for own needs 3.3. Environmental Impact Ethical Practices and Public Regulation needs 14.4.2. Organization format for ethical 14.4.2.1. Existence of the Ethics Code 4.1. Corporate Governance 11.3.15. Payments for air-polluting 11.3.15.1. Payments for air-polluting emissions from permanent and 3.3. Environmental Impact practices emissions from permanent and mobile mobile sources, discharges of pollutants to surface and ground water sources, discharges of pollutants to bodies, and emplacement of production and consumption waste surface and ground water bodies, and emplacement of production and con- sumption waste
11.5.1. Radionuclide emissions to 11.5.1.1. Total radionuclide emissions to atmosphere 3.3. Environmental Impact atmosphere
11.5.2. Discharge of waste waters 11.5.2.1. Volume of discharge of waste waters containing radionuclides 3.3. Environmental Impact containing radionuclides
11.5.2.2. Total activity of waste waters containing radionuclides 3.3. Environmental Impact
11.5.4. Radionuclide-polluted areas 11.5.4.1. Area of radionuclide-polluted areas 3.3. Environmental Impact
11.5.4.2. Gamma radiation dose in polluted areas 3.3. Environmental Impact
Social and Labor Relations (Organization of Labor and Decent Work)
12.1.8. Average paycheck compared to 12.1.8.1. Average paycheck compared to labor market average 3.5. HR Policy labor market average
12.3.3. Number of employees with non- 12.3.3.1. Number of employees with non-government pension plans 3.7. Social Policy. Developing Areas of government pension plans Presence. Charity
12.3.4. Total personnel expenses 12.3.4.1. Total personnel expenses 3.5. HR Policy
12.3.5. Total expenses on social 12.3.5.1. Total expenses on social programs for employees 3.7. Social Policy. Developing Areas of programs for employees Presence. Charity
12.3.6. Social payments per employee 12.3.6.1. Social payments per employee per year 3.7. Social Policy. Developing Areas of per year Presence. Charity
12.3.7. Expenses on additional health 12.3.7.1. Expenses on additional health insurance 3.7. Social Policy. Developing Areas of insurance Presence. Charity
12.4.5. Control of personnel exposure 12.4.5.1. Annual average effective exposure of personnel to radiation 3.4. Radiation Effect on Personnel and to radiation Population Appendices Annual report 2017 Rosenergoatom 242 — 243
102-56 APPENDIX 6. PUBLIC ASSURANCE STATEMENT
STATEMENT OF PUBLIC ASSURANCE OF 2017 ANNUAL REPORT digital transformation, and describes its ap- • As part of comprehensive and systemic de- OF ROSENERGOATOM proaches to implementation of responsible velopment of the sustainable development business practice principles. practices, Rosenergoatom updates the com- position, channels and forms of interaction PREAMBLE Accountability АА1000 Series Standards, and • The Report contains information significant with stakeholders, and the ranging pattern the IIRC Integrated Reporting Standard) were for stakeholders. The priority subjects of the of material aspects of the Company’s activi- Rosenergoatom (hereinafter – the Company) applied during the procedure of preparation and Report were selected taking into account ties and their boundaries. requested that we assess its 2017 Annual public affirmation of the Report. However, this the opinion of stakeholders after the dialogs Report, the completeness and relevance of statement is not intended to evaluate the con- held with them. We regard the format and Most questions raised by representatives of information disclosed therein, and the way the formance of the Report with the international scope of information represented in the stakeholders were answered in the course Company responds to and takes into account reporting systems. Report favorably. of dialogs and public consultations. We stakeholders’ suggestions and inquiries. would like to make a special note about the We are unaware of any facts that would make • The Report is prepared in accordance with active use of modern communication means We have the required knowledge and compe- us question any information contained in the the GRI Standards, and the principle of (website, blogs, virtual tours, availability of tencies in corporate responsibility, sustaina- Report. However, this public affirmation is not selecting particular material aspects and in- feedback, etc.) by Rosenergoatom to keep ble growth, and non-financial reporting. While intended to confirm the authenticity of the ac- teraction with stakeholders was implement- the community and all stakeholders informed we comply with ethical requirements of inde- tual data contained in the Report. We have not ed (in compliance with АА1000SES Stand- about the Company’s position. pendent and unbiased judgment, we express received any remuneration from the Company ard recommendations). The stakeholders our personal opinion as experts, but not that for our participation in the public affirmation actively participated in discussions during of the corporate entities we represent. procedure. the dialogs, public consultations, and public INTERACTION WITH STAKEHOLDERS, affirmation. CONSIDERATION OF THEIR COMMENTS We were offered an opportunity to participate The text of this statement has been approved by AND SUGGESTIONS in public consultations that discussed the all signatories. Rosenergoatom may use it for • During preparation of the Annual Report, the draft Report held on April 20, 2018, and in internal purposes and for communications with Company’s management enthusiastically During its activities that involved stakehold- dialogs with stakeholders. On November 8, stakeholders, and publish it without any changes. responded to opinions, suggestions, and ers between November 2017 and April 2018, 2017, an absentee dialog was held in Moscow recommendations made by the stakeholders Rosenergoatom made available extensive where the concept of the 2017 Annual Report EVALUATIONS, COMMENTS, involved in the discussions and dialogs. information about its strategic goals, de- was discussed by over 15 representatives of AND RECOMMENDATIONS velopment priorities, and operating perfor- stakeholders. On February 22, 2018, a dialog Noting the advantages of the 2017 Report, we mance. We would like to note the wide circle meeting was held with stakeholders in Saint Based on all information we received and think that the following suggestions shall be of participants who actually represented key Petersburg at the Academician Lomonosov analyzed, including of the Report text, corporate taken into account in the subsequent report- stakeholders, and active role of the Company’s floating power plant under construction in website, and collective discussion, we confirm ing cycles: management in the discussions. order to discuss prioritized subjects of the the following: Company’s 2017 Annual Report. Over 20 • Continuing reduction of excessive use of ob- Our experience shows that the Company’s representatives of stakeholders participated • In the 2017 Report the Company disclosed tuse professional terminology and presenting management actively responds to stakehold- in the dialog meeting. In the course of these all relevant subjects of its activity significant the Report materials in a reader-friendly way. ers’ questions, comments, and suggestions. activities all participants and stakeholder to stakeholders, including safe operation of In particular, it is confirmed by adjustment of representatives were able to ask questions nuclear power plants, sustainability manage- • Ensuring comprehensive description of the the final version of the Report which contains and state their opinions without any restric- ment, including the impact made by Rosen- Company’s contribution to economic devel- clarifications and additional information in- tions. The following materials were given to ergoatom on the environment, society, and opment of the areas of presence, including cluded as per suggestions of the participants us: draft and the final version of the 2017 economy in its areas of presence, and the creation and enhancement of infrastructure involved in the discussions. Annual Report, and minutes of dialogs and management system efficiency. All material facilities in small towns and nuclear indus- hearings, including the table on consideration aspects of activities are disclosed with a try cities. We conclude that during preparation of the of suggestions made by stakeholders. reasonable level of detail. final version of the 2017 Annual Report the • Focusing on a more accurate definition of Company’s management demonstrated a high As a merit of the 2017 Report, we should • The Report represents the Company’s stra- the novelty and innovation terms as appli- level of availability, openness for dialog, and note that the international standards (GRI tegic development priorities to a sufficient cable to the Company’s activities and the positive response to problems and sugges- Standards, Institute of Social and Ethical extent, including innovative development and nuclear industry in general. tions indicated by stakeholders. In view of the Appendices Annual report 2017 Rosenergoatom 244 — 245
102-56 APPENDIX 7. NON-FINANCIAL AUDIT REPORT
above, we favorably evaluate the Company’s A.V. KHASIEV Report, and support the Company’s commit- ment to the principles of responsible business Chairman of the Oka Inter-Regional Environ- practice. We also confirm that the 2017 Report mentalist Movement of Rosenergoatom has successfully passed public assurance. L.A. BOLSHOV
Research Advisor of the Nuclear Safety Insti- G.I. SKLYAR tute under the Russian Academy of Sciences Member of the Energy Committee under the State Duma of the Federal Assembly of the YU.M. SEMCHENKOV Russian Federation Deputy Director for Nuclear Energy and Nuclear Technologies, Kurchatov Institute V.V. RYAZANSKY
Chairman of the Social Policy Committee under the Federation Council of the Federal Assembly E.N. FEOKTISTOVA of the Russian Federation Managing Director for Corporate Responsibility, Sustainable Development and Social Entrepre- V.I. AKSENOV neurship of the Russian Union of Industrialists Director of the WANO Moscow Center and Entrepreneurs
V.A. GRACHEV I.A. FOMICHEV
President and CEO of the Nongovernmental Chairman of the Russian Trade Union of Nucle- Ecological Fund named after V.I. Vernadsky ar Power Industry Employees
A.K. NIKITIN S.A. CHESTIKIN
Head of Bellona Ecology and Law Center Chairman of the Association of Areas of Pres- ence of Nuclear Plants Fund (AAP NP Fund) Appendices Annual report 2017 Rosenergoatom 246 — 247 Appendices Annual report 2017 Rosenergoatom 248 — 249
APPENDIX 8. REPORT OF APPENDIX 9. ACCOUNTING INTERNAL CONTROL DEPARTMENT (FINANCIAL) STATEMENTS OF ROSENERGOATOM
ACCOUNTING BALANCE SHEET STATEMENT REPORT OF INTERNAL CONTROL DEPARTMENT OF ROSENERGOATOM AS OF DECEMBER 31, 2017 Codes ON INTERNAL AUDITING OF ROSENERGOATOM 2017 ANNUAL REPORT OKUD Form 0710001 Organization: Rosenergoatom Date (day, month, 31/12/2017 BUILDING PROCESSES COMPLIANCE WITH REQUIREMENTS OF Taxpayer ID: year) ROSATOM STATE CORPORATION PUBLIC REPORTING POLICY. Type of economic activities: Generation of electricity by nuclear power plants, including the activities related to by OKPO 08844275 their operability assurance INN 7721632827 Form of incorporation/ownership: Non-public joint stock company / state by OKVED 35.11.3 The internal audit of preparation of the public Annual Report of «Rosenergoatom» JSC (hereinaf- corporation ownership by OKOPF/OKFS 12267 61 ter – Rosenergoatom) is performed in virtue of the plan of control measures of the specialized Units of measurement: thousand rubles by OKEI 384 body of Internal Control Department of Rosenergoatom for the first half of 2018 and in accordance Location (address): ul. Ferganskaya, d. 25, Moscow 109507 with the Rules for Organization and Performance of Internal Audit as part of the Internal Audit process carried out by the Internal Audit Department of Rosenergoatom approved by order No. Comments Item Description Code As of December 31, December 31, December 31, 9/300-P dated March 24, 2015 of Rosenergoatom (with changes). 2017 2016 2015 2.3, 6.1 ASSETS 1110 In the course of the audit: I. NON-CURRENT ASSETS Intangible assets 1,790,831 1,131,343 1,081,940 • the efficiency of the internal control system with respect to preparation of public reporting 2.5, 6.2 Results of research and development 1120 9,656,686 11,274,312 6,227,962 (including analysis of regulation and formal description of key processes related to preparation Intangible development assets 1130 of public reporting) was assessed; Tangible development assets 1140 2.4, 6.3 1150 1,409,710,722 1,349,049,778 1,268,280,560 • compliance with the public report preparation procedure with applicable Russian legislation, Fixed assets international standards, and corporate standard requirements that regulate the public report Buildings, machines, equipment and other fixed assets 1151 746,149,575 608,857,823 475,622,137 building process was checked; 6.4 Construction in progress invested in fixed assets 1152 603,416,911 681,769,555 714,085,152 6.5, 6.9 Advanced payments to suppliers and contractors for capital 1153 60,144,236 58,422,400 78,573,271 • recommendations on steps to improve the internal control system during preparation of public construction, suppliers of fixed asset items reporting were developed. 6.3 Yield-bearing investments in material values 1160 27,227 47,756 42,533 2.7, 6.6 Financial investments 1170 53,934,873 42,184,374 36,776,120 In general, the public report building process of Rosenergoatom was carried out according to the Deferred tax assets 1180 applicable Russian legislation, international standards, Rosatom State Corporation Public Report- 6.7 Miscellaneous non-current assets 1190 81,457,920 69,949,702 35,881,039 ing Policy and internal standard requirements of Rosenergoatom that regulate the public report 1191 15,580,841 15,287,550 21,941,181 building process. Meanwhile, the task force noted a derogation from the local regulations and In-progress capital investments in R&D 1192 6,607,829 7,360,058 5,350,552 standards that did not affect significantly the quality and accuracy of the Report. Non-current receivables Deferred expenses for electric grid connection 1193 58,501,456 46,366,298 7,624,904 Section I subtotal 1100 1,556,578,259 1,473,637,265 1,348,290,154 2.6, 6.8 II. CURRENT ASSETS 1210 Inventory 47,516,973 45,628,162 TASK FORCE HEAD U.S. FROLOVA Materials, stock and similar assets 1211 47,428,771 45,153,819 Expenses for work in progress 1212 47,428,771 Finished products and resellable stock 1213 458,777 947,930 Shipped goods 1214 88,202 15,566 171,335 Miscellaneous inventory and costs 1219 Value Added Tax on values purchased 1220 7,584 41,452 1,201,480 6.9 Accounts receivable 1230 40,351,608 40,693,020 32,704,345 Settlements with buyers and customers 1231 25,865,369 19,047,125 17,342,418 Advanced payments issued 1232 2,842,118 3,231,690 5,607,129 Appendices Annual report 2017
Comments Item Description Code As of December 31, December 31, December 31, 2017 2016 2015 Miscellaneous debtors 1233 11,644,121 18,414,205 9,754,798 Underbillings 1234 2.7, 6.10 Financial investments (except cash equivalents) 1240 68,355,000 33,889,870 20,293,355 6.11 Cash and equivalents 1250 28,473,049 19,750,160 17,980,760 Miscellaneous current assets 1260 374,727 454,182 212,569 Section II subtotal: 1200 185,078,941 140,456,847 122,379,946 BALANCE 1600 1,741,657,200 1,614,094,112 1,470,670,100
FORM 0710001 PAGE 2
Comments Item Description Code As of December 31, December 31, December 31, 2017 2016 2015 6.14 LIABILITIES 1310 793,122,540 793,122,540 671,516,563 III. EQUITY AND PROVISIONS Registered capital (share capital, registered fund, partners’ contributions) Treasury shares 1320 6.14 Shareholders' capital contributions before records of constitu- 1330 22,719,019 98,075,834 ent documents Revaluation of non-current assets 1340 Surplus capital (not revalued) 1350 6,959 6.14 Reserve capital 1360 222,664,844 244,382,900 251,825,792 6.15 Provisions established under legal requirements 1361 219,263,367 241,511,688 249,650,660 Provisions established under incorporation documents 1362 3,401,477 2,871,212 2,175,132 Retained profits (unrecovered loss) 1370 469,959,983 350,524,071 275,394,723 Section III subtotal 1300 1,508,466,386 1,388,029,511 1,296,819,871 2.8, 6.17 IV. LONG-TERM LIABILITIES 1410 50,044,411 68,434,347 33,865,335 Borrowed funds Deferred tax liabilities 1420 20,500,830 6,186,146 6.20 Appraisal-related liabilities 1430 3,607,983 15,129,057 3,030,328 6.21 Miscellaneous liabilities 1450 69,153,006 3,816,039 10,437,822 Section IV subtotal 1400 143,306,230 53,707,945 53,519,631 2.8, 6.17 V. SHORT-TERM LIABILITIES 1510 24,002,039, 141,087,388 54,066,556 Borrowed funds 6.22 Accounts payable 1520 56,642,576 26,696,308 57,411,598 Suppliers and contractors 1521 41,917,810 50,038,466 41,768,906 Advance payments received 1522 22,468 39,453 61,839 Owed to employees 1523 1,121,859 988,885 1,141,588 Owed to government off-budget funds 1524 465,228 498,486 505,805
Debts in taxes and duties 1525 5,590,188 2,755,967 2,568,899 Miscellaneous creditors 1526 7,525,023 8,591,593 11,364,561 6.12 Deferred revenue 1530 102,96 83,911 308,092 6.20 Appraisal-related liabilities 1540 9,015,050 7,978,096 8,394,872 6.13 Special-purpose financing 1546 121,956 180,432 149,480 Owed to customers 1547 Miscellaneous liabilities 1550 Section V subtotal 1500 89,884,584 84,977,213 120,330,598 BALANCE 1700 1,741,657,200 1,614,094,112 1,470,670,100
MANAGER A.YU. PETROV CHIEF ACCOUNTANT A.V. SHALIMOV FEBRUARY 26, 2018 Appendices Annual report 2017
PROFIT AND LOSS STATEMENT OR YEAR 2018
Codes Appendices Rosenergoatom Annual report 2017 252 Organization: Rosenergoatom OKUD Form 0710001 Taxpayer ID: Date (day, month, 31/12/2017 Type of economic activities: Generation of electricity by nuclear power year) plants, including the activities related to Comments Item Description Code 2017 2016 by OKPO 08844275 their operability assurance Result of miscellaneous operations not included in the net profit/loss of the period 2520 73,985,562 65,213,161 INN 7721632827 Form of incorporation/ownership: Non-public joint stock company / state Consolidated financial result of the period 2500 by OKVED 35.11.3 corporation ownership REFERENCE 75,818,468 by OKOPF/OKFS 12267 61 Units of measurement: thousand rubles Base profit/loss per share of stock 2900 0.00005797 0.00001579 by OKEI 384 Diluted profit/loss per share of stock 2910
Comments Item Description Code 2017 2016 MANAGER A.YU. PETROV CHIEF ACCOUNTANT A.V. SHALIMOV 2.10, 7.1 Revenues 2110 360,385,842 282,035,779 FEBRUARY 26, 2018 Electricity 2111 195,385,675 188,465,168 Capacity 2112 159,344,169 87,880,766 2.11,7.1 Sales costs 2120 (207,655,847) (176,452,597) Electricity 2121 (110,714,714) (115,929,396) EQUITY DYNAMICS STATEMENT FOR YEAR 2016 Capacity 2122 (90,291,902) (54,057,544) Gross profit/loss 2100 152,729,995 105,583,182 Codes
Commercial expenses 2210 (17,955) (21,775) Organization: Rosenergoatom OKUD Form 0710001 Administrative costs 2220 (75,955,089) (78,224,142) Taxpayer ID: Date (day, month, 31/12/2017 year) Profit/loss after sales 2200 76,756,951 27,337,265 Type of economic activities: Generation of electricity by nuclear power Gains from interest held in other corporate entities 2310 3,038,971 3,242,011 plants, including the activities related to by OKPO 08844275 their operability assurance Interest receivable 2320 6,702,125 3,890,334 INN 7721632827 Form of incorporation/ownership: Non-public joint stock company / state Interest payable 2330 (4,079,728) (1,618,891) corporation ownership by OKVED 35.11.3 7.2 Miscellaneous incomes, including 2340 5,689,424 5,131,289 Units of measurement: thousand rubles by OKOPF/OKFS 12267 61 Asset sales 2341 2,374,077 1,785,365 by OKEI 384 Fines and penalties 2342 604,511 858,313 Insurance compensations 2343 300,350 345,565 CASH FLOW In the form of surplus of the value of property contributed to registered (sabre) capital, com- pared to the book value 2344 177,544 563,387 Item Description Code Registered Treasury Shareholders' Capital Con- Surplus Reserve Retained Profit/ TOTAL Recovery of provisions for remuneration payment 2345 78,134 Capital Shares tributions before Records of Capital Capital Uncovered Loss Constituent Documents 7.2 Miscellaneous expenses, including 2350 (22,579,988) (17,789,514) Asset sales 2351 (2,320,369) (1,299,164) Size of capital as of December 31, 2015 3100 671,516,563 - 98,075,834 6,959 251,825,792 275,394,723 1,296,819,871 Depreciation, repair, upgrade and reconstruction of fixed and current assets 2352 (6,949,946) (4,510,866) 3210 121,605,977 - 23,530,143 - 68,219,826 75,825,428 289,181,374 Bad debt provision 2353 (2,066,872) (749,984) For year 2016 Increment in capital, total: Charity and subscriptions 2354 (3,332,704) (1,338,043) Social expenses 2355 (1,246,035) (1,482,462) Including, net profit 3211 Х Х Х Х Х 10,605,307 10,605,307 Gratuitous conveyance of property 2356 (575,574) (365,711) Revaluation of assets 3212 Х Х Х - Х - - Profit/loss before tax 2300 65,527,755 20,192,494 3213 Х Х Х - 68,219,826 - 68,219,826 6.18 Current profit tax 2410 (15,401,282) (1,032,659) Income recognized directly as capital increment 6.18 Including fixed tax liability/assets 2421 (7,667,534) (5,931,131) 2.9 Change in deferred tax liability 2430 (5,520,970) (9,001,926) 2.9 Change in deferred tax assets 2450 149,168 64,955 Other 2460 43,353 51,349 6.18 Profit tax reallocation within the consolidated taxpayers group 2465 1,182,591 331,094 Net profit/loss 2400 45,980,615 10,605,307 Result of non-current assets revaluation not included in the net profit/loss of the period 2510 Appendices Rosenergoatom Annual report 2017 253
Item Description Code Registered Treasury Shareholders' Capital Con- Surplus Reserve Retained Profit/ TOTAL Capital Shares tributions before Records of Capital Capital Uncovered Loss Constituent Documents
Additional issue of shares 3214 121,605,977 - - - Х - 121,605,977
Increase in par value of shares 3215 - - - - Х - -
Reorganization of corporate entity 3216 ------
Industry-level provisions use for investment 3217 Х Х Х Х Х 65,220,121 65,220,121 purposes
Shareholders' capital contributions before records 3218 Х Х 23,530,143 Х Х Х 23,530,143 of constituent documents
Decrement in capital, total: 3220 - - (121,605,977) (6,959) (75,662,718) (696,080) (197,971,734)
Including, loss 3221 Х Х - Х Х -
Revaluation of assets 3222 Х Х - - Х - -
Expenses recognized directly as capital decrement 3223 Х Х - (6,959) (76,358,798) - (76,365,757)
Decrease in par value of shares 3224 - - - - Х - -
Decrease in number of shares 3225 - - - - Х - -
Reorganization of corporate entity 3226 ------
Dividends 3227 Х Х - Х Х - -
Shareholders' capital contributions before records 3228 Х Х (121,605,977) Х Х Х (121,605,977) of constituent documents
Change in surplus capital 3230 Х Х Х Х
Change in reserve capital 3240 Х Х Х Х 696,080 (696,080) Х
Size of capital as of December 31,2016 3200 793,122,540 - - - 244,382,900 350,524,071 1,388,029,511
For year 2017 3310 - - 22,719,019 - 64,384,603 119,966,177 207,069,799 Increment in capital, total:
Including, net profit 3311 Х Х Х Х Х 45,980,615 45,980,615
Revaluation of assets 3312 Х Х Х Х -
Income recognized directly as capital increment 3313 Х Х Х - 64,384,603 - -
Additional issue of shares 3314 - - - - Х - 64,384,603 Appendices Rosenergoatom Annual report 2017 254
Item Description Code Registered Treasury Shareholders' Capital Con- Surplus Reserve Retained Profit/ TOTAL Capital Shares tributions before Records of Capital Capital Uncovered Loss Constituent Documents
Increase in par value of shares 3315 - - - - Х - -
Reorganization of corporate entity 3316 ------
Industry-level provisions use for investment 3317 Х Х Х Х Х 73,985,562 73,985,562 purposes
Shareholders' capital contributions before records of 3318 Х Х 22,719,019 Х Х Х 22,719,019 constituent documents
Decrement in capital, total: 3320 - - - - 86,102,659 (530,265) (86,632,924)
Including, loss 3321 Х Х - Х Х - -
Revaluation of assets 3322 Х Х - Х -
Expenses recognized directly as capital decrement 3323 Х Х - - (86,632 924) - (86 632,924)
Decrease in par value of shares 3324 - - - - Х - -
Decrease in number of shares 3325 - - - - Х - -
Reorganization of corporate entity 3326 ------
Dividends 3327 Х Х - Х Х - -
Shareholders' capital contributions before records of 3328 Х Х - Х Х Х - constituent documents
Change in surplus capital 3330 Х Х Х - - - Х
Change in reserve capital 3340 Х Х Х Х 530,265 (530,265) Х
Size of capital as of December 31, 2017 3300 793,122,540 - 22,719,019 - 222,664,844 469,959,983 1,508,466,386 Rosenergoatom МС — 256
CASH FLOW STATEMENT FOR YEAR 2017
Codes Organization: Rosenergoatom Appendices Rosenergoatom Annual report 2017 255 OKUD Form 0710001 Taxpayer ID: Date (day, month, 31/12/2017 Type of economic activities: Generation of electricity by nuclear power year) plants, including the activities related to by OKPO 08844275 ADJUSTMENTS DUE TO ACCOUNTING POLICY CHANGE AND CORRECTION OF ERRORS their operability assurance Form of incorporation/ownership: Non-public joint stock company / state INN 7721632827 corporation ownership by OKVED 35.11.3 Item Description Code December 31, 2016 Equity Changes in 2017 December 31, 2017 Units of measurement: thousand rubles by OKOPF/OKFS 12267 61 by OKEI 384 On Account of Net Other Profit/Loss Item Description Code 2017 2016 Equity, total CASH FLOW FROM CURRENT OPERATIONS before adjustments 3400 - - - - Revenues– total 4110 376,659,720 286,877,618 adjustment due to: Including: • accounting policy change 3410 - - - - from sold products, work, services 4111 350,997,081 278,181,615 • correction of errors 3420 - - - - payments in lease, rent, royalty fees, commission fees and similar amounts 4112 193,265 184,858 after adjustments 3500 - - - - resold financial investments 4113 including retained profit/ uncovered loss: miscellaneous revenue 4119 25,469,374 8,511,145 before adjustments 3401 - - - - Payments, total 4120 (196,035,258) (163,883,031) adjustment due to: • accounting policy change 3411 - - - - Including: to suppliers/contractors, for materials, products, work, services 4121 (120,709,551) (99,261,651) • correction of errors 3421 - - - - to employees 4122 (40,434,721) (39,228,584) after adjustments 3501 - - - - interest payable on debentures 4123 (2,844,303) (1,755,722) other equity items adjusted (per item) corporate profit tax 4124 (9,374,601) (6,891,054) before adjustments 3402 - - - - miscellaneous payments 4129 (22,672,082) (16,746,020) adjustment due to: • accounting policy change 3412 - - - - Balance of cash flow from current operations 4100 180,624,462 122,994,587 Cash flow from investments • correction of errors 3422 - - - - Revenues – total 4210 646,757,954 458,542,199 after adjustments 3502 - - - - Including: from sold non-current assets (except financial investments) 4211 2,031,885 1,288,500 from sold corporate stock or holdings in other corporate entities 4212 from repaid loans issued, sold debentures (claim rights to third parties) 4213 635,377,202 450,780,587 ADJUSTMENTS DUE TO ACCOUNTING POLICY CHANGE AND CORRECTION OF ERRORS dividends, interest on financial debt investments, and similar revenue from holdings in other corpo- rate entities 4214 8,945,873 6,356,748 miscellaneous revenues 4219 402,994 116,364 Item Description Code December 31, 2017 December 31, 2016 December 31, 2015 Payments – total 4220 (820,812,126) (610,220,815) Including: Net assets 3600 1,509,615,000 1,389,224,758 1,298,091,034 to purchase, create, upgrade, retrofit and set up non-current assets 4221 (129,558,438) (133,233,378) to purchase corporate shares (stakes) in other corporate entities 4222 (4,404,669) to purchase debentures (claim rights to third parties), issue loans to third parties 4223 (680,342,264) (464,005,479) interest payable on debentures included in the price of an investment asset 4224 (8,556,012) (8,577,236) MANAGER A.YU. PETROV CHIEF ACCOUNTANT A.V. SHALIMOV miscellaneous payments 4229 (2,355,412) (53) FEBRUARY 26, 2018 Balance of cash flow from investments 4200 (174,054,172) (151,678,616) CASH FLOW FROM FINANCIAL OPERATIONS Revenues – total 4310 149,894,632 101,634,834 Including: Received loans and credits 4312 127,175,613 78,104,691 Cash investments from owners (stakeholders) 4312 from issued shares or increased stakes 4313 22,719,019 23,530,143 from issued bonds, promissory notes, security debentures, etc. 4314 Rosenergoatom МС — 257
Item Description Code 2017 2016 government budget allocations, and other government financing 4315 miscellaneous revenues 4319 Payments – total 4320 (147,722,713) (71,143,771) Including to incorporators/stakeholders to finance buyout of shares/stakes in the corporate capital, or their retirement from the corporation 4321 Paid as dividends and otherwise to distribute profits among owners/stakeholders 4322 redemption/buyout of promissory notes and other securities, repayment of loans and credits 4323 (147,722,713) (71,141,890) Miscellaneous payments 4329 (1,881) Balance of cash flow from financial operations 4300 2,171,919 30,491,063 Balance of cash flow for the reporting period 4400 8,742,209 1,807,034 Balance of cash and equivalents at the beginning of the reporting period 4450 19,750,160 17,980,002 Balance of cash and equivalents at the end of the reporting period 4500 28,473,049 19,750,160 Impact by change of foreign currency exchange rate to the ruble 4490 (19,320) (36,876)
MANAGER A.YU. PETROV CHIEF ACCOUNTANT A.V. SHALIMOV FEBRUARY 26, 2018 Appendices Annual report 2017 Rosenergoatom 258 — 259
APPENDIX 10. AUDITOR’S REPORT CERTIFYING ANNUAL ACCOUNTING STATEMENTS
AUDITOR'S REPORT and using the going concern basis of accounting unless management either intends to liquidate the audited entity or to cease operations, or has no realistic alternative but to do so.
FOR STOCKHOLDERS Members of the board of directors are responsible for overseeing the annual accounting reporting OF RUSSIAN CONCERN FOR PRODUCTION OF ELECTRIC AND process. THERMAL ENERGY AT NUCLEAR POWER PLANTS (JOINT STOCK COMPANY) AUDITOR’S RESPONSIBILITY FOR THE AUDIT OF THE ANNUAL ACCOUNTING OPINION STATEMENTS
We have reviewed the attached annual accounting statements filed by Rosenergoatom, herein- Our objectives are to obtain reasonable assurance about whether the annual accounting after Rosenergoatom, comprising its Accounting Balance Sheet Statement as of December 31, statements as a whole are free from material misstatement, whether due to fraud or error, and 2017, its Profit and Loss Statement, its Equity Dynamics Statement, and its Cash Flow Statement to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of for year 2017, and other appendices to the Accounting Balance Sheet Statement, and Profit and assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always Loss Statement for year 2017. detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected It is our opinion that the reviewed annual accounting statements reliably represent all relevant to influence the economic decisions of users taken on the basis of these annual accounting aspects of the financial situation in Rosenergoatom as of December 31, 2017, its financial and statements. business performance, and its cash flows during 2017, in conformity with the Russian standards for accounting statements As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: BASIS FOR OPINION a) identify and assess the risks of material misstatement of the annual accounting statements, We conducted our audit in accordance with International Standards on Auditing (ISAs). Our whether due to fraud or error, design and perform audit procedures responsive to those risks, responsibilities under those standards are further described in the Auditors’ Responsibilities for and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. the Audit of the Annual Accounting Statements section of our report. We are independent of the The risk of not detecting a material misstatement resulting from fraud is higher than for one re- audited entity in accordance with the Rules of Independence of the Auditors and Audit Organiza- sulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresenta- tions and The Code of Professional Ethics of the Auditors, which are in accordance with Inter- tions, or the override of internal control; national Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these b) obtain an understanding of internal control relevant to the audit in order to design audit pro- requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to cedures that are appropriate in the circumstances, but not for the purpose of expressing an provide a basis for our opinion. opinion on the effectiveness of the audited entity’s internal control;
AUDITED ENTITY’S MANAGEMENT AND MEMBERS OF THE BOARD c) evaluate the appropriateness of accounting policies used and the reasonableness of account- OF DIRECTORS RESPONSIBILITY FOR THE ANNUAL ACCOUNTING ing estimates and related disclosures made by the audited entity’s management; STATEMENTS d) conclude on the appropriateness of management’s use of the going concern basis of account- Management is responsible for the preparation and fair presentation of the aforementioned ing and, based on the audit evidence obtained, whether a material uncertainty exists related to annual accounting statements in accordance with Russian accounting standards, and shall events or conditions that may cast significant doubt on the audited entity’s ability to continue enforce the internal control system as may be required to prepare annual accounting statements as a going concern. If we conclude that a material uncertainty exists, we are required to draw free of any material misrepresentation through either fraudulence or error. attention in our auditor’s report to the related disclosures in the annual accounting statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the In preparing the annual statements, management is responsible for assessing the audited entity audit evidence obtained up to the date of our auditor’s report. However, future events or condi- ability to continue as a going concern, disclosing, as applicable, matters related to going concern tions may cause the audited entity to cease to continue as a going concern; Appendices Annual report 2017
Appendices Rosenergoatom Annual report 2017 261
102-16 APPENDIX 11. REPORT ON ROSENERGOATOM’S e) evaluate the overall presentation, structure and content of the annual accounting statements, including the disclosures, and whether the annual accounting statements represent the under- COMPLIANCE WITH CORPORATE GOVERNANCE CODE lying transactions and events in a manner that achieves fair presentation.
We сommuniсate with the audited entity’s members of the board of directors regarding, among RECOMMENDED BY THE BANK OF RUSSIA other matteгs, the planned sсope and timing of the audit and significant audit findings, inсluding any signifiсant dеfiсienсies in internal control that we identify during our audit.
AUDIT TASK LEADER AUDITOR Item Corporate Governance Principles Criteria for Assessment of Compliance with Corporate Governance Principle Status of Compli- Explanation of Deviation from Criteria for ance with Corpo- Assessment of Compliance with Corporate N. YU. RODZEIKO, Corporate name: rate Governance Governance Principle Auditor Qualification Certificate 06-000346 Principle dated November 20, 2015, ORNZ (Primary Reg- Accountants & Business Advisers Limited 1.1. The company shall be equal and fair in relation to all stockholders exercising their right to participate in corporate governance. istration Entry Number) 21506047435 Liability Company (FBK LLC). 1.1.1 The company creates most favorable conditions for 1. The company’s internal document approved by the general meeting of stockholders is Compliant Auditor’s Report date: March 1, 2018 Location: stockholders to participate in the general meeting, publicly available. The document governs the general meeting procedures. to take a reasonable stand on the items of the gen- 101990, Moscow, ul. Myasnitskaya, 44/1, str. eral meeting agenda, to coordinate their efforts, and 2AB. to express their opinions on the considered issues. AUDITED ENTITY 2. The company provides available ways of communication with citizens, such as a ‘hot- Partially compliant Rosenergoatom did not establish the Statutory registration: line’, email, or Internet forum allowing the stockholders to express their opinion and send «hotline» in 2017. Meanwhile, the company Corporate Name: questions regarding the agenda items during preparations for the general meeting. provides accessible means of communica- Registered by Moscow Chamber of Regis- Similar actions were taken by the company before every general meeting held during the tion with two stockholders Russian Concern for Production of Electric and tration, on November 15, 1993, Certificate: reporting period. (through email, Unified Industry-Wide Thermal Energy at Nuclear Power Plants (Joint series UZ 3 No. 484.583 RP. Record of July 24, Document Management System). Therefore, all stockholders are treated Stock Company), hereinafter – Rosenergoa- 2002, in the Unified State Register of Legal in an equal and fair way in exercising tom. Entities, Primary State Registration Number their rights. 1027700058286. Location: 1.1.2 The procedure of general meetings arrangement 1. A notice of the general meeting of stockholders is posted (published) on the website Non-compliant Taking into account that Rosenergoatom has Membership in Self-Regulated Association of and general meeting materials provision enables no later than 30 days before the general meeting date. two stockholders, they were given due notice 109507, Moscow, ul. Ferganskaya, d. 25 Auditors: the stockholders to appropriately prepare for taking delivered by courier, and they are supplied part in it. with the required materials through available communication channels. Statutory Registration: Self-regulatory organization of auditors Assoсi- ation «Sodruzhestvo». 2. The general meeting notice specifies the meeting venue and the documents required Compliant Registered by Federal Tax Service Interdistrict for admission to the venue. Tax Inspectorate No. 46 in the city of Moscow, ID Record in Registry of Self-Regulated Asso- 3. The stockholders were provided with access to information on who proposed the Compliant on September 17, 2008; Certificate: series ciation of Auditors: agenda items, and the nominees for the board of directors and auditing committee. 77 No. 010416448. Record of September 17, 2008 in the Unified State Register of Legal Сertifiсate of membership in the self-regulatory Entities, Primary State Registration Number organization of auditors Association «Sodru- 5087746119951. zhestvo» No.7198, number in the register – 11506030481. Appendices Rosenergoatom Annual report 2017 262 Appendices Rosenergoatom Annual report 2017 263
Item Corporate Governance Principles Criteria for Assessment of Compliance with Corporate Governance Principle Status of Compli- Explanation of Deviation from Criteria for Item Corporate Governance Principles Criteria for Assessment of Compliance with Corporate Governance Principle Status of Compli- Explanation of Deviation from Criteria for ance with Corpo- Assessment of Compliance with Corporate ance with Corpo- Assessment of Compliance with Corporate rate Governance Governance Principle rate Governance Governance Principle Principle Principle
1.1.3 During preparations for the general meeting and 1. In the reporting period the stockholders were given opportunities to ask questions Compliant 1.2 Stockholders are provided with equal and fair opportunities to share the company’s profits via distribution of dividends. during the meeting itself the stockholders were to members of the company’s management bodies and board of directors before the provided with unhampered and timely delivery of in- annual general meeting and during it. 1.2.1 The company developed and implemented a clear 1. The company developed and disclosed the dividend policy, which was approved by the Non-compliant The dividend policy was not approved by the formation on the meeting and the related materials, 2. The position of the board of directors (including individual opinions recorded in the and transparent mechanism for determining the board of directors. board of directors. they were capable of asking questions to members minutes of the meeting) regarding each item of agenda of the general meetings held dividend size and their payment. 2. If the company’s dividend policy uses the company’s reporting indicators to determine However, recommendations for the divi- of the company’s management bodies and board of in the reporting period was included in the materials related to the general meeting of the dividend size, then the respective provisions of the dividend policy specify consoli- dend policy of Rosatom State Corporation directors, and communicating with each other. stockholders. dated indicators of financial statements. business entities were approved with a local 3.The stockholders were provided with access to information on who proposed the regulation in order to observe the operations agenda items, and the nominees for the company’s board of directors and auditing support principle. committee. 1.2.2 The company does not resolve to pay out dividends, 1. The company’s dividend policy contains explicit description of financial/economic Compliant A resolution on payout (passing) of dividends if such a resolution, without violation of legal re- circumstances, which shall prevent the company from paying out the dividends. is adopted by the general meeting of stock- strictions, is economically unviable and may lead to holders. Recommendations for the dividend misconception of the company’s activities. policy of Rosatom State Corporation 1.1.4 Execution of stockholders’ rights to convene the 1. In the reporting period, the stockholders were able to propose items to be included Compliant business entities contain basic terms and general meeting, to make nominations for the in the annual general meeting, during at least 60 days after the end of the respective conditions for dividends payout. management bodies, and propose items to be put calendar year. See Item 1.2.1. on the general meeting agenda was not related to 2. In the reporting period, the company did not reject proposals on agenda items or 1.2.3 The company does not allow for impairment of 1. In the reporting period, the company did not take measures to impair the dividend Compliant The company does not allow for impairment unreasonable complications. nominees for the management bodies due to misspelling and other insignificant errors dividend rights of the existing stockholders. rights of existing stockholders. of dividend rights of all existing stockhold- in the stockholder’s proposal. ers.
1.2.4 The company strives to eliminate the possibilities 1. For the purpose of eliminating the possibilities for the stockholders to use other Compliant The company rules out the possibility for the 1.1.5 Each stockholder was able to seamlessly exercise 1. The company's internal document (internal policy) contains provisions entitling a par- Non-compliant for stockholders to use other ways of getting profit ways of getting profit (income) on the account of the company, except for dividends and stockholders to use other ways of getting its voting right in the manner it found most conven- ticipant of the general meeting to request a copy of the bulleting filled by the participant (income) on the account of the company, except for liquidation value, the company’s internal documents specify the control mechanisms profit (income), besides the dividends. ient and easy. and certified by the vote count panel. the dividends and liquidation value. that ensure timely discovery and a procedure for approval of transactions with entities The local regulation also approved proce- affiliated (related) to substantial stockholders (persons entitled to dispose the votes dural guidelines for analysis of applications attached to voting stocks) and planned transactions for arm’s length principle observation. 1.1.6 The procedure established by the company for the 1. When general meetings were held in the reporting period in the form of meetings Compliant general meeting ensures equal opportunities for (joint attendance by stockholders), enough time was allocated for reports on the agenda all persons attending the meeting to express their items, and for discussion of the items. 1.3 The system and practice of corporate governance ensure equal conditions for all stockholders – owners of stock of one category (type), including minority stockholders and foreign stockholders, as well as opinions and ask questions. 2. Nominees for the management and supervision bodies were available for answering equal attitude to them on behalf of the company. the stockholders’ questions at the meetings, when they were nominated for voting. 1.3.1 The company created conditions for fair attitude 1. During the reporting period, the procedures for management of potential conflicts Compliant Equal conditions are ensured for all stock- to each stockholder on behalf of the company’s of interest among the substantial stockholders were efficient. The board of directors holders, there were no conflicts of interest. 3. When adopting resolutions related to preparation and organization of general meeting Non-compliant Taking into account that Rosenergoatom management and supervisory bodies, including the properly tackled the conflicts among stockholders, if any. In addition, Rosenergoatom approved and of stockholders, the board of directors considered the issue of telecommunications has two shareholders the issue of telecom- conditions preventing abuse by majority stockhold- enacted the Procedural Guidelines for Rosen- use in order to provide the stockholders with remote access to participation in general munications use was not considered due to ers in relation to minority stockholders. ergoatom Employees’ actions to prevent meetings in the reporting period. the fact that they are both able to participate any possibility of conflicts of interest, for in the meetings of stockholders, which is notifying about conflicts of interest, and for sufficient. consideration of such notices. Appendices Rosenergoatom Annual report 2017 264 Appendices Rosenergoatom Annual report 2017 265
Item Corporate Governance Principles Criteria for Assessment of Compliance with Corporate Governance Principle Status of Compli- Explanation of Deviation from Criteria for Item Corporate Governance Principles Criteria for Assessment of Compliance with Corporate Governance Principle Status of Compli- Explanation of Deviation from Criteria for ance with Corpo- Assessment of Compliance with Corporate ance with Corpo- Assessment of Compliance with Corporate rate Governance Governance Principle rate Governance Governance Principle Principle Principle
1.3.2 The company does not take measures that lead, or 1. There are no quasi-treasury stocks, or these did not participate in voting during the Compliant 2.1.5 The board of directors plays a key role in preven- 1. The board of directors plays a key role in prevention, detection, and settlement of Compliant may lead, to contrived redistribution of corporate reporting period. tion, detection, and settlement of internal conflicts internal conflicts. control. among the company's bodies, stockholders, and 2. The company created an identification system for transactions related to conflicts of employees. interest, and a system of measures aimed at settling such conflicts. 1.4 Stockholders are provided with reliable and efficient ways of registering their title to stocks, and a possibility of free and unhampered transfer of their stocks. 2.1.6 The board of directors plays a key role in ensuring 1. The board of directors approved a provision on information policy. Partially compliant Rosenergoatom discloses information 1.4 Stockholders are provided with reliable and efficient 1. The quality and reliability of activities of the company's registrar related to maintain- Compliant the company’s transparency, timeliness and com- 2. The company defined the persons responsible for implementation of the information voluntarily. ways of registering their title to stocks, and a ing records of stock holders correspond to the needs of the company and its stockhold- pleteness of information disclosure by the company, policy. The information policy is approved by a local possibility of free and unhampered transfer of their ers. unhampered access of stockholders to the compa- regulatory act. stocks. ny’s documents.
2.1.7 The board of directors exercises control of the 1. The board of directors considered the corporate governance practice in the company Compliant 2.1 The board of directors performs strategic management of the company, defines basic principles and approaches to organization of the company’s risk management and internal control system, supervises the corporate governance practice in the company, and during the reporting period. activities of the company’s executive bodies, and exercises other key functions. plays a key role in important corporate events of the 2.1.1 The board of directors is responsible for making 1. The articles of association provide the board of directors with powers to appoint and Compliant company. decisions related to appointment and removal of remove members of executive bodies, and define conditions of their contracts. 2.2 The board of directors reports to the company’s stockholders. executive body members, particularly in case of 2. The board of directors considered the report (reports) of the sole executive body and misconduct. The board of directors also makes sure members of the collegiate executive body on the company's strategy implementation. 2.2.1 Information on the activities of the board of direc- 1. The company’s annual report for the reporting period includes information on the Compliant that the company’s executive bodies act according tors is disclosed and provided to the stockholders. attendance of meeting of the board of directors and committees by individual directors. to the approved development strategy and the com- pany’s core business lines. 2. The annual report contains information on major results of evaluation of the work Non-compliant Performance of the board of directors was performed by the board of directors during the reporting period. not evaluated in 2017. 2.1.2 The board of directors sets the guiding principles for 1. During the reporting period, the board of directors considered the progress in execu- Compliant The board of directors considered the matter the company’s long-term activities, evaluates and tion and updating of the strategy, approval the cost estimates (budget) of the company, of the budget and investment program 2.2.2 Chairman of the board of directors is available for 1. The company adopted a transparent procedure enabling the stockholders to ask Compliant approves key performance results, and basic busi- and reviewed the criteria and indicators (including interim) of the company’s strategy approval in 2017. communication with the company’s stockholders. the board of directors chairman questions, and express their opinions related to such ness targets of the company, assesses and proves and business plans implementation. matters. the strategies and business plans for major areas of 2.3 The board of directors is an efficient and professional corporate governance body capable of making reasonable and independent judgments and decisions that correspond to the interests of the company and its the company’s activities. stockholders.
2.3.1 Only those persons who have spotless business 1. The procedure adopted by the company for evaluation of efficiency of the board of Partially compliant The Regulation on Board of Directors 2.1.3 The board of directors defines the principles and 1. The board of directors defined the principles and approaches to organization of the Partially compliant The risk policy is approved by internal local and personal reputation, and having the skills and directors includes assessment of professional qualifications of the board of directors contains the requirements for chairman and approaches to organization of the risk management risk management and internal control system of the company. regulations. experience required for making decisions within members. members of the board of directors. These re- and internal control system of the company. 2. The board of directors assessed the company’s risk management and internal control the competence of the board of directors, and for 2. During the reporting period, the board of directors (or its committee for nominations) quirements include the absence of economic system during the reporting period. efficient discharge of its functions are elected as assessed the nominees for the board of directors in terms of required experience, knowl- fraud, or public order crimes, abuse of public members of the board of directors. edge, business reputation, absence of conflicts of interest, etc. and local authorities, as well as administra- 2.1.4 The board of directors defines the company's 1. The company developed and implemented, and the board of directors approved the Non-compliant Remuneration payments to the board of tive violations, primarily in entrepreneurial ac- policy for remuneration and (or) reimbursement of policy (policies) for remuneration and reimbursement of expenses (compensation) of the directors are not mandatory, the procedures tivities, finance, taxes and duties, securities expenses (compensation) of the board of directors board of directors members, members of the company’s executive bodies and other top for defining the remuneration of the board of market. This proves that members of the members, members of the company’s executive executives. directors member will be developed in case board of directors have to be impeccable in bodies and other top executives. 2. The board of directors considered the matters related to the said policy (policies) such a decision is made by Rosenergoatom terms of business and personal reputation, during the reporting period. stockholders. and possess knowledge in corporate law. Appendices Rosenergoatom Annual report 2017 266 Appendices Rosenergoatom Annual report 2017 267
Item Corporate Governance Principles Criteria for Assessment of Compliance with Corporate Governance Principle Status of Compli- Explanation of Deviation from Criteria for Item Corporate Governance Principles Criteria for Assessment of Compliance with Corporate Governance Principle Status of Compli- Explanation of Deviation from Criteria for ance with Corpo- Assessment of Compliance with Corporate ance with Corpo- Assessment of Compliance with Corporate rate Governance Governance Principle rate Governance Governance Principle Principle Principle
2.3.2 Members of the Board of Directors are elected 1. At all general meetings of stockholders held during the reporting period with election Partially compliant In 2017, the company provided the stock- 2.4.2 Evaluation of nominees for the board of directors 1. During the reporting period, the board of directors (or a committee for nominations Non-compliant The board of directors has no committees. through a transparent procedure that permits of board of directors on agenda the company provided the stockholders with biographies holders with biographies of every nominee are assessed for compliance with independence under the board of directors) shaped an opinion on independence of each nominee for stockholders to obtain information about nominees of every nominee for the board of directors, results of the nominees assessment carried for the board of directors and information criteria, compliance of independent members of the the board of directors, and submitted a respective report to the stockholders. sufficient to get an idea about their personal and out by the board of directors (or its committee for nominees), as well as information about availability of the nominees’ written board of directors with independence criteria is ana- 2. At least once during the reporting period, the board of directors (or the committee for professional qualities. on nominees compliance with independence criteria according to recommendations consent to election on the board of directors. lyzed on a regular basis. The content shall prevail nominations under the board of directors) reviewed the independence of the incumbent 102-107 of the code, and a written consent of the nominees with election to the board of Compliance assessment of the board of over the form during such assessment. members of the board of directors who the company mentions in the annual report as directors. directors nominees was not performed. independent directors. 3. The company developed procedures defining the required actions of a member of the 2.3.3 The composition of the board of directors is bal- 1. As part of the procedure for assessment of the activities of the board of directors Partially compliant Composition of the board of directors is board of directors in case he/she ceases to be independent, including the responsibili- anced, including the qualification of its members, accomplished during the reporting period, the board of directors analyzed its needs in balanced and meets the respective require- ties for timely provision of information to the members of the board of directors. their experience, knowledge and business qualities. professional qualifications, experience, and business skills. ments approved by the Regulation on Board 2.4.3 Independent directors comprise at least one third of 1. Independent directors comprise at least one third of the board of directors. Non-compliant There are no independent directors on the Members of the board enjoy credibility among of Directors. Assessment of the board of the elected board of directors. board of directors. stockholders. directors was not performed in 2017. 2.4.4 Independent directors play a key role in preventing 1. Independent directors (without conflicts of interest) preliminary assess significant Non-compliant There are no independent directors on the 2.3.4 The quantitative composition of the company's 1. As part of the procedure for assessment of the board of directors held during the Partially compliant The board of directors is comprised of five internal conflicts in the company, and making signif- corporate actions related to possible conflicts of interest, and the results of assessment board of directors. board of directors allows organizing its activities reporting period, the board of directors considered compliance of the quantitative com- persons allowing to arrange its activities in icant corporate actions by the company. are submitted to the board of directors. in the most efficient way, including the possibility position of the board of directors with the company's needs and stockholders' interests. the most efficient way. of establishing committees under the board of direc- 2.5 Chairman of the board of directors helps perform the functions vested in the board of directors in the most efficient way. tors, and electing a nominee proposed by substan- tial minority stockholders, and voted for by them as 2.5.1 An independent director is elected as chairman 1. Chairman of the board of directors is an independent director, or a chief independent Non-compliant There are no independent directors on the member of the board of directors. of the board of directors, or a chief independent director is chosen from the independent directors. board of directors. director is chosen among the elected independent 2. The role, rights, and obligations of the chairman of the board of directors (and the directors who coordinates the work of independent chief independent director, if applicable) are duly defined by the company’s internal 2.4 The board of directors is comprised of a sufficient number of independent directors. directors and interacts with the chairman of the documents. board of directors 2.4.1 An independent director is a person possessing 1. During the reporting period, all independent members of the board of directors met Non-compliant There are no independent directors on the sufficient professionalism, experience, and inde- all criteria of independence specified in recommendations 102-107 of the code, or were board of directors. 2.5.2 Chairman of the board of directors ensures a 1. Efficiency of the board of directors chairman was evaluated as part of the procedure Non-compliant Chairman of the board of directors ensures a pendence to shape own position, make reasonable considered independent according the decision of the board of directors. constructive atmosphere of the meetings, uncon- for assessment of the board of directors during the reporting period. constructive atmosphere. and fair judgments that are not dependent on the strained discussion of the meeting agenda items, influence made by the company's executive bodies, implementation control of the resolutions adopted individual stockholder groups, or other stakeholders. by the board of directors. At the same time, it should be taken into considera- tion that usually a nominee (elected member of the 2.5.3 Chairman of the board of directors takes measures 1. The responsibility of the board of directors chairman to take measures for timely Compliant board of directors) can not be considered independ- required for timely provision of the board of direc- provision of the board of directors members with the materials related to agenda items ent if connected with the Company, its substantial tors members with the information needed to adopt of the board of directors meeting is specified in the company’s internal documents. stockholder, substantial counteragent, or competitor resolutions on the agenda items. of the company, or related to government. Appendices Rosenergoatom Annual report 2017 268
Item Corporate Governance Principles Criteria for Assessment of Compliance with Corporate Governance Principle Status of Compli- Explanation of Deviation from Criteria for ance with Corpo- Assessment of Compliance with Corporate rate Governance Governance Principle Principle
2.6 Members of the board of directors act in good faith and reason for the benefit of the company and its stockholders on the basis of sufficient information, with due regard and consideration.
2.6.1 Members of the board of directors make decisions 1. The company’s internal documents stipulate that a member of the board of directors Compliant with due regard of all information, with no conflict of shall inform the board of directors in case there is a conflict of interest related to any interest, with consideration of equal attitude to the agenda item at a meeting of the board of directors, or a committee of the board of direc- company's stockholders as part of usual entrepre- tors, before discussion of the respective agenda item. neurial risk. 2. The company’s internal documents stipulate that a member of the board of directors shall abstain from voting on any matter that he/she has a conflict of interest in. 3. The company adopted a procedure allowing for the board of directors to receive professional consultations on the matters within its competence, at the expense of the company.
2.6.2 Rights and obligations of the board of directors 1. The company adopted and published an internal document that clearly defines the Compliant members are explicitly formulated and specified in rights and obligations of the board of directors members. the company’s internal documents.
2.6.3 Members of the board of directors have enough 1. Individual attendance of the board and committee meetings, and the time devoted to Compliant time for discharge of their obligations. getting ready for participation in the meetings were considered during assessment of the board of directors in the reporting period. 2. According to the company’s internal documents, members of the board of directors shall inform the board of directors on their intention to become members of manage- ment bodies in other organizations (except for the company’s subsidiaries and affiliates), as well as on the facts of such appointment.
2.6.4 All members of the board of directors are equally 1. According to the company’s internal documents, members of the board of directors Compliant entitled to access the company’s documents and are entitled to access documents and make inquiries related to the company and its sub- information. Newly elected members of the board sidiaries, and the company’s executive bodies shall provide the respective information of directors are provided with sufficient information and documents. about the company and the board of directors activi- 2. There is a formalized familiarization program in the company for newly elected mem- ties as soon as reasonably possible. bers of the board of directors.
2.7 Preparation for the meetings of the board of directors and participation in them by the board of directors members ensure efficient activity of the board of directors.
2.7.1 Meetings of the board of directors are held as often 1. The board of directors held at least six meetings during the reporting period. Compliant as required, with due regard for the scale of activity, and the objectives faced by the company at the moment. Rosenergoatom
EU1,EU2 APPENDIX 12. OPERATING NPP
Приложение АО «Концерн Росэнергоатом» Годовой отчет 2017 269 POWER UNITS
NPP Name PU No. Reactor Type Capacity (P), MW Hook-Up Date Item Corporate Governance Principles Criteria for Assessment of Compliance with Corporate Governance Principle Status of Compli- Explanation of Deviation from Criteria for ance with Corpo- Assessment of Compliance with Corporate Balakovo NPP 1 VVER-1000 1,000 28.12.1985 rate Governance Governance Principle Principle 2 VVER-1000 1,000 08.10.1987
3 VVER-1000 1,000 24.12.1988 2.7.2 The company's internal documents specify the 1. The company adopted the internal document defining the procedure for preparation Compliant procedure of preparation for the board of directors and arrangement of the board of directors meetings. The documents stipulates, inter 4 VVER-1000 1,000 11.04.1993 meetings and of their arrangement ensuring that the alia, that a notice of the board of directors meetings shall be made no later than five board of directors members are capable of getting days before the date of the meeting. Beloyarsk NPP 3 BN-600 600 08.04.1980 ready for them in a proper way. 4 BN-800 885 10.12.2015
2.7.3 The format of the board of directors meetings is de- 1. The company’s articles of association or internal document stipulate that the most Partially compliant The procedure of preparation and arrange- Bilibino NPP 1 EGP-6 12 12.01.1974 fined on the basis of the agenda items importance. important matters (according to the list specified in recommendation 168 of the code) ment of the board of directors meetings 2 EGP-6 12 30.12.1974 Most important items are discussed at the meetings are considered at in-person meetings of the board. ensures efficient consideration of the most in person. important 3 EGP-6 12 22.12.1975 issues at meetings held either in person or in absentia. 4 EGP-6 12 27.12.1976 Kalinin NPP 1 VVER-1000 1,000 09.05.1984 2 VVER-1000 1,000 03.12.1986
3 VVER-1000 1,000 16.12.2004
4 VVER-1000 1,000 22.11.2011
Kola NPP 1 VVER-440 440 29.06.1973 2 VVER-440 440 09.12.1974
3 VVER-440 440 24.03.1981
4 VVER-440 440 11.10.1984
Kursk NPP 1 RBMK-1000 1,000 12.12.1976 2 RBMK-1000 1,000 28.01.1979
3 RBMK-1000 1,000 17.10.1983
4 RBMK-1000 1,000 02.12.1985
Leningrad NPP 1 RBMK-1000 1,000 21.12.1973 2 RBMK-1000 1,000 11.07.1975
3 RBMK-1000 1,000 07.12.1979
4 RBMK-1000 1,000 09.02.1981
Novovoronezh NPP 4 VVER-440 417 28.12.1972 5 VVER-1000 1,000 31.05.1980
Novovoronezh NPP-2 1 VVER-1200 1,200 05.08.2016
Rostov NPP 1 VVER-1000 1,000 30.03.2001 2 VVER-1000 1,000 16.03.2010
3 VVER-1000 1,070 27.12.2014
Smolensk NPP 1 RBMK-1000 1,000 09.12.1982 2 RBMK-1000 1,000 31.05.1985
3 RBMK-1000 1,000 17.01.1990 Appendices Annual report 2017
EU1 APPENDIX 13. INSTALLED CAPACITY EU2 EU10 AND POWER OUTPUT OF NUCLEAR Appendices Rosenergoatom Annual report 2017 272 POWER PLANTS OF ROSENERGOATOM 102-8 APPENDIX 14. MAIN PERSONNEL IN 2015-2017 BY RUSSIAN UES 401-1 CHARACTERISTICS
Item UES Power Plant Name 2017 2016 2015 Indicators - No.
Installed Power Output, Installed Capacity, Power Output, Installed Capacity, Power Output, Capacity, MW1 bln kWh MW bln kWh MW bln kWh
1 Central UES Kalinin NPP 13.60 100.36 12.83 92.00 12.83 100.17
Kursk NPP Headquarters NPP Balakovo NPP Beloyarsk Bilibino NPP Kalinin NPP NPP Kola NPP Kursk Leningrad NPP NPP Novovoronezh NPP Rostov Smolensk NPP NPP (heat Voronezh only) - Directorate of Ko stroma NPP (under construction) Directorate for Construction and Operation of Floating Plant Nuclear Power Directorate of Baltic NPP (under construc tion) Novovoronezh NPP Smolensk NPP Total Headcount by Gender
5.76 36.90 5.76 38.13 5.76 36.99 2 Northwest UES Kola NPP 2015 Total, pers. 815 3,632 3,065 728 3,939 2,510 4,619 5,998 4,053 2,702 4,065 54 38 99 118 Leningrad NPP Men 436 2,755 2,269 494 2,751 2,039 3,545 4,545 3,067 1,906 2,886 35 17 71 59 3 Volga UES Balakovo NPP 4.00 32.00 4.0 33.61 4.0 32.75 Women 379 877 796 234 1,188 471 1,074 1,453 986 796 1,179 19 21 28 59 4 South UES Rostov NPP 3.00 23.18 3.0 24.00 3.0 20.51 2016 Total, pers. 779 3,445 2,684 715 3,604 2,269 4,315 5,849 3,912 2,825 3,877 38 33 102 97 5 Urals UES Beloyarsk NPP 1.49 10.20 1.5 8.40 0.6 4.58 Men 406 2,617 2,016 485 2,556 1,809 3,329 4,438 2,967 2,008 2,769 20 15 77 49 European part 27.84 202.64 27.08 196.15 26.19 195.00 (1+2+3+4+5) Women 373 828 668 230 1,048 460 986 1,411 945 817 1,108 18 19 24 48
6 East UES Bilibino NPP 0.048 0.226 0.048 0.221 0.048 0.216 2017 Total, pers. 793 3,302 2,518 700 3,238 2,101 4,158 5,652 3,898 2,933 3,622 33 30 116 75
Total for Rosenergoatom NPPs 27.89 202.868 27.13 196.367 26.24 195.214 Men 411 2,509 1,842 476 2,302 1,719 3,188 4,270 2,984 2,090 2,597 15 13 98 36
Women 382 793 676 224 936 382 970 1,382 914 843 1,025 18 17 18 39
Total Number of Hired Employees, and Their Percentage of Headcount
2015 Total, pers. 87 112 124 38 163 24 105 1,422 418 336 55 1 1 25 10
% 10.67 3.08 4.05 5.22 4.14 0.96 2.27 23.71 10.31 12.44 1.35 1.85 2.63 25.25 8.47
2016 Total, pers. 46.00 54 36 42 69 8 167 134 208 336 8 0 0 23 2
% 5.91 1.57 1.34 5.87 1.91 0.35 3.87 2.29 5.32 11.90 0.21 0.00 0.00 2.63 2.06
2017 Total, pers. 94 119 138 51 252 47 231 267 193 291 31 3 2 69 2
% 11.85 3.60 5.48 7.29 7.78 2.24 5.56 4.72 4.95 9.92 0.86 9.09 6.67 59.48 2.67
1. • Including installed capacity of the power unit No. 1 Novovoronezh NPP-2 (put into commercial operation 27.02.2017). Rosenergoatom 274
APPENDIX 15. GLOSSARY
Appendices Rosenergoatom Annual report 2017 273
Automated radiation background control sioning setup, physical and power start-up, Indicators - (ARBC) – an automated system that measures pilot operation, and finally commissioning of strength of exposure to gamma rays within the NPP. residential communities. Core zone – part of the reactor that houses Automated radiation control system (ARCS) nuclear fuel, the moderator, beta absorber, heat – an automated system including information medium, reactive impact devices, and structur- Headquarters NPP Balakovo NPP Beloyarsk Bilibino NPP Kalinin NPP NPP Kola NPP Kursk Leningrad NPP NPP Novovoronezh NPP Rostov Smolensk NPP NPP (heat Voronezh only) - Directorate of Ko stroma NPP (under construction) Directorate for Construction and Operation of Floating Plant Nuclear Power Directorate of Baltic NPP (under construc tion) and instrumentation systems, and equip- al elements used to enable a controlled nuclear Number of Fired ment that enable its functioning. This system fission chain reaction and transmit the energy collects and processes information about to the heat medium. 47 81 164 28 80 84 127 149 149 98 73 14 0 2 5 2015 Men controlled parameters that characterize the Women 44 102 160 17 112 44 95 42 81 86 50 7 2 2 11 radiological status in NPP controlled areas, at Emergency drill set – a set of exercise activ- industrial sites, in the buffer area and radia- ities Rosenergoatom holds to train its NPP 2016 Men 56 265 356 30 384 276 346 410 278 107 165 12 4 16 15 tion-control area, in all NPP operating modes, management, forces, and facilities to respond including design basis accidents and beyond to an emergency. Women 64 86 97 22 262 70 161 112 185 51 85 2 3 14 14 design basis accidents, as well as the NPP 2017 Men 26 88 75 37 198 51 92 147 84 97 150 6 1 23 16 condition during decommissioning of its power Energy efficiency – efficient (rational) use of units. energy resources, to achieve economically 39 45 38 21 75 15 56 55 30 44 80 0 1 4 17 Women justified efficiency at the existing level of engi-
Employee Turnover by Gender Availability factor (AF) – refers to the capability neering and technology, given compliance with of rated electrical load bearing of the power environmental protection regulations. 2015 Men 10.78 2.94 7.23 5.67 2.91 4.12 3.58 3.28 4.86 5.14 2.53 40.00 0 2.82 8.47 unit, expressed as the ratio of the sum of power generated by the unit, and power that wasn’t Fast reactor (fast breeder reactor) – nuclear Women 11.61 11.63 20.10 7.26 9.43 9.34 8.85 2.89 8.22 10.80 4.24 36.84 9.52 7.14 18.64 generated by reasons unrelated to the power reactor in which the fission chain reaction is 2016 Men 13.79 10.13 17.66 6.19 15.02 15.26 10.39 9.24 9.37 5.33 5.96 60 27.59 20.70 30.61 unit, to the power generated during this period sustained by fast neutrons (with an energy of of time under rated (installed) capacity. The >105 eV). 17.16 10.39 14.52 9.57 25.00 15.22 16.33 7.94 19.58 6.25 7.67 10.96 16.16 57.45 29.17 Women standard value for a NPP is AF = 80%. 2017 Men 6.33 3.51 4.07 7.77 8.60 2.97 2.89 3.44 2.82 4.64 5.78 40 7.69 23.47 44.44 Floating nuclear power plant (FNPP) – a mobile Beyond design basis accident – an accident nuclear power plant with small output capacity Women 10.21 5.67 5.62 9.38 8.01 3.93 5.77 3.98 3.28 5.22 7.80 0 5.88 22.22 43.59 caused by the initiating events that are not to be used in remote regions of Russia, and considered as such for the design basis abroad, for the desalination of seawater, inter accidents, or when a single failure of a design alia. The plant is a non-propelled craft with a basis accident is accompanied by additional nuclear power unit, transported to the region of safety system failures, wrong decisions made operation via waterways. by personnel. Fuel element – the key structural component in Capacity factor – ratio of a power unit (power a nuclear reactor’s core zone in which nuclear plant) output for a specific time interval to the fuel is encapsulated. power unit output at the nominal (installed) capacity for this time interval. INES – International Nuclear Event Scale, adopted to facilitate communication and un- Closed nuclear fuel cycle – a nuclear fuel cycle derstanding between nuclear industry experts, (NFC) where spent nuclear fuel unloaded from mass media, and the public, as regards the the reactor is recycled to recover uranium and magnitude of events (incidents) at nuclear plutonium to be reused in nuclear fuel. units in terms of safety. The Scale places all events into one of its seven levels: higher-level Commissioning – a process when the systems events (4-7) are known as ‘emergency’; low- and equipment of the power unit or the entire er-level events (1-3) are ‘incidents’. Events that NPP are launched, and their project compliance are negligible in terms of safety are placed at is checked. The process includes pre-commis- Level 0 beyond the Scale, and are known as Rosenergoatom МС — 275
‘deviations’. Events irrelevant to safety are Radiation control – collecting information placed beyond the Scale, and are known to be about the radiation situation at NPPs, in the ‘off-scale’. environment, and people exposure.
Intellectual capital – organizational intangible Radiation dose – in radiation safety, a measure assets, including development of potential of impact by ionizing radiation on a biological of already hired personnel and prospective object, typically a human. Distinction is made employees (university graduates). among exposure, absorbed, and equivalent doses. NPP life cycle – all stages of evolution that a nuclear plant passes through during its Radiation safety – condition when the existing existence; this includes design, construction, and future human generations are protected commissioning, operation, and decommis- against health-damaging impacts of ionizing sioning. radiation.
NPP safety – a nuclear plant’s ability, during Radioactive emission – a substance (or mix) as normal and abnormal operation, including a gas and/or aerosol, released into the environ- emergencies, to keep the radiation impact on ment (air) from emitting sources. its personnel, citizens, and the environment within specific required limits. RBMK (high-power channel reactor) – chan- nel-type, water-cooled graphite-moderated Nuclear Energy Agency (NEA) – dedicated power reactor with the power capacity of 1 GW agency under the Organization for Economic and above, where water boils in duct channels, Cooperation and Development (OECD), an and saturated steam is supplied from separa- intergovernmental organization of developed tors into the turbines. nations, having its headquarters in Paris, France. To date 30 countries are part of Reactor unit – a set of NPP systems and com- OECD. NEA’s objective is to promote research ponents designed to convert nuclear power to and technological development and harmo- heat, including a reactor and directly related nization of national regulatory documents of systems that support its normal operation, member countries for safe, cost-effective, and emergency cooling, emergency protections, ecologically clean use of nuclear power for and safety assurance, and provide compliance peaceful purposes. with mandatory auxiliary and support functions from other systems of the power plant. The Nuclear power industry – section of the limits for the reactor unit are stated specifically power industry that engages nuclear energy for each NPP in its project pack. to produce heat and electricity. Rosenergoatom’s Crisis Center – a key compo- Nuclear power plant (NPP) – nuclear equip- nent within the structure of emergency support ment used to generate energy in preset opera- to NPPs, it monitors main parameters of pro- tional modes and conditions, installed within duction, radiation, environment, and fire safety. project-defined boundaries that uses for that purpose one or more nuclear reactors and a Safety culture – culture where all individu- set of related systems, devices, equipment, als are trained, skilled, and psychologically and buildings with personnel. prepared, ensuring that NPP safety becomes a priority and inherent need that results in under- Nuclear reactor protection shell – a device in standing of own responsibility, and self-control a nuclear reactor designed to hold radioactive during safety-related activities. nuclides within the volume of the shell, in the event of emergency decompression of the Safety protections – systems (components) reactor equipment. designed to prevent or mitigate damage to nu- clear fuel, fuel element jackets, equipment, and Nuclear reactor shell – a tight reservoir pipelines that contain radioactive substances. designed to hold the core zone of the nuclear reactor, neutron reflector, monitoring and exper- Situation Crisis Center – a center that ensures imental hardware, and to organize the cooling technical, technological, information exchange, of the reactor using a heat medium flow. and analytic support to activities of the HQ of Appendices Annual report 2017 Rosenergoatom 276 — 277
Rosatom State Corporation, and involvement in information support to ongoing management of APPENDIX 16. ABBREVIATIONS the industry both under routine conditions and in emergencies.
Spent nuclear fuel – nuclear fuel contaminated in the reactor’s core zone and withdrawn from it completely.
VVER-TOI – a typical, optimized and IT-based ACPS – automatic control and protection system OSART – IAEA Operational Safety Review Team project for a two-unit NPP with VVER reactor, implemented in a modern IT medium in com- APCS – automated process control system RAW – radioactive waste pliance with the requirements for nuclear and radiation safety. CF – capacity factor RBMK – high-power channel reactor
WANO – World Association of Nuclear Plant CNFC – closed nuclear fuel cycle R&D – research and development Operators, whose mission is to maximize the safety and reliability of nuclear plant operations EDS – Emergency drill set RPS – Rosatom Production System worldwide through exchange of information and encouraging contacts among its members, EF – efficiency factor SDGs – Sustainable Development Goals comparing their working results and promoting best practices. ESL – extended Service Life SLE – service life extension
Water-cooled water-moderated power reactor FAs – reactor fuel assemblies SLEхp – service life expiry (VVER) – a shell-protected power reactor using water under pressure as heat medium, modera- FAS – Federal Anti-Monopoly Service SNF – spent nuclear fuel tor, and neutron reflector. FNPP – floating nuclear power plant STC – sci-tech council
FPU – floating power unit TSC – technical service center
HIPC – high and intermediate pressure cylinder UES – unified energy system
HME – heating and mechanical equipment UES – unified energy system (Russia)
HPC – high pressure cylinder UIEDMS – unified industry-level electronic document manage- ment system HPF – hazardous production facilities VVER – water-cooled water-moderated power reactor IAEA – International Atomic Energy Agency WANO – World Association of Nuclear Operators ILM – inventory and logistics management WECM – wholesale electricity and capacity market IP – intellectual property
KMS – knowledge management system
KPI – key performance indicators
LTIFR – lost time injury frequency rate
NPP – nuclear power plant
NRPC – non-return protective containers Appendices Annual report 2017 Rosenergoatom 278 — 279
APPENDIX 17.ROSENERGOATOM 102-53 APPENDIX 18. HISTORICAL BACKGROUND FEEDBACK FORM
DEAR READERS, On September 7, 1992, State-Owned Enter- On March 18, 2010, power was started up at prise "Russian State Concern for Production of the Rostov NPP power unit No.2 with VVER- We have been pleased to offer for your con- Please send the completed form to: Electric and Thermal Energy at Nuclear Power 1000 type reactor. Vladimir Putin, Chairman sideration the 2017 Annual Report of Rosen- Rosenergoatom, ul. Ferganskaya, d. 25, Moscow Plants" (Rosenergoatom) was established in of the Russian Federation Government gave a ergoatom. It is important for us to ensure that 109507, or by email to: [email protected]. accordance with Russian Federation President command for power supply to the grid. the dialogue with all of our stockeholders is as Decree No. 1055 on Operating Entity of Nuclear transparent and as honest as possible. Contact person for Report content – Alexander Plants of The Russian Federation. June 30, 2010 – launch of the world’s first Berenzon, Senior Specialist, Department of Infor- floating power unit, Academician Lomonosov, Your comments and suggestions will help us to mation and Public Relations, tel. +7 (495) 647-46- December 24, 1999 – Vladimir Putin, Chairman at the Baltic Shipyard in Saint Petersburg. improve the quality of future reports and make 36, email: [email protected]. of the Russian Federation Government held a them more informative and relevant. meeting on the nuclear power industry issues December 12, 2011 – Vladimir Putin, Chairman at the Leningrad NPP (Sosnovy Bor). of the Russian Federation Government took part in the power ascension ceremony at the In accordance with Russian Federation Govern- Kalinin NPP power unit No.4 to scale it up to ment Directive No. 1207-r dated September 8, 50% of the nominal value. To which group of stakeholders do you Did this Report answer your questions? 2001, starting from April 1, 2002, with the inten- belong? tion to improve operating efficiency at nuclear o Yes, all of them plants, Rosenergoatom SOE was reorganized o Stockholder / investor into a generating company (Rosenergoatom o Yes, partly FSUE) by merging with all nuclear plants, both o Employee of Rosenergoatom in operation and under construction, as well as o No the enterprises ensuring operation and sci-tech o Representative of government support. Apart from its functions as an oper- structures/ public organizations What other information would you like to see in ator, Rosenergoatom became capable to act the next Rosenergoatom Annual Report? independently on the power market, and sell o Media representative power generated by nuclear plants to solvent users. All ten Russian NPPs joined Rosener- o Member of the expert community goatom as branches. o Other (please specify) 2008-2009 – construction of NPP-2006 project power plants with VVER-1200 reactors began.
In August 2008, Rosenergoatom FSUE was reorganized into Energoatom JSC, which sur- rendered 100% of its stock to Atomenergoprom OJSC, by Directive No. 1235-r of the Federal PLEASE ASSESS THIS REPORT USING THE FOLLOWING CRITERIA: Agency for State Property Management.
Criterion Excellent Good Satisfactory Poor In September 2009, Rosenergoatom became entitled to use the word “Russian” in its corpo- rate name according to the Russian Federation Relevance and substance of issues addressed
Government Resolution No. 1307-r. In Novem- Reliability of information ber 2009, the sole stockholder of Energoatom OJSC decided to add modifications into the Structure of information and ease of search Articles of Incorporation, related to its new Design name: Rosenergoatom JSC.
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