Annual Report 2018

We work to the bene t of our Motherland Annual Report JSC “SSC RIAR” 2018

Joint Stock Compuny «—State Scienti c Center Research Institute of Atomic Reactors»

UDC 621.039=161.1 SRSTI 58.33.01 LBC 31.4

Annual Report JSC “SSC RIAR” 2018 [Electronic resource]. — E-text data (~ 8 MB). — Dimitrovgrad: JSC “SSC RIAR”, 2019. — 176 pages — 1 RAM disk (CD-ROM); 12 cm — System requirements: Pentium III or better; 512 MB RAM; 35 MB of available hard disk space; Windows 95/98/XP/7/8; Adobe Acrobat Reader; CD-ROM 2x or higher; mouse. — Annual Heading from the title screen.

GRI The Report covers the key nancial, economic and production results of JSC “SSC RIAR” 102-54 activities for the reporting period as well as the results of the sustainability-related activities 103-1 (economic, ecological and social impact on the world around us). The Report has been prepared in conformity with theGRI Standards. The Report focuses on the strategy and perspectives Report of JSC “SSC RIAR” as well as on the activities targeted at enhancing the e ectiveness of corporate management and nuclear and radiation safety. The Report has been issued on a voluntary basis of 2018 and is addressed to a wide audience.

Approved by the Resolution of Board of Directors, JSC “SSC RIAR” (Protocol # 550 as of May 24, 2019)

Director of JSC “SSC RIAR” A.A. Tuzov

© Joint Stock Company “State Scient Center — Dimitrovgrad Research Institute of Atomic Reactors” 2019 ISBN 978-5-94831-185-2 (JSC “SSC RIAR”), 2019 3 Annual Report JSC “SSC RIAR” 2018 4

Improvement of e iciency, extension of international cooperation and growth of industry-speci c cooperation are priorities of RIAR's sustainable development

3.23.3 For the Report to be more useful and laconic, we have included links 29 28 More than 15 to additional sources of information, foreign long-term international including the RIAR's website. partner countries This integrated report has been delegations R&D contracts prepared in accordance with the Guidelines for Sustainable Development Reporting

(GRI Standards) and regulatory GRI documents in the eld of corporate 102-54 and nancial reporting Russia's IAEA Base Organization Leader ICERR of the CIS Member States on Intergovernmental in the radionuclides Scienti c-Technical production Information Exchange The report uses the following public reporting indicators:

JSC “SSC RIAR” indicator 0 5 339 4 145 ROSATOM indicator borrowed funds mln rub — mln rub — GRI GRI Standards transfers transfers to suppliers from buyers and sub-contractors UN sustainable development indicator and customers (accounting investments) 5 Annual Report JSC “SSC RIAR” 2018 6

Contents

Key Performance Indicators...... 7 Section4. Outputs Appeal of Directors ...... 9 61 Key Events ...... 13 4.1. Financial Capital...... 64 Awards ...... 14 Financial Performance ...... 64 Capital Management...... 68 Section1. General Information 15 Investment Management...... 69 4.2.PC roductivea pital ...... 72 1.1. General Information...... 17 Output...... 72 1.2. Key Competencies. Products and Rendered Services...... 19 PCroductivea pital Management...... 81 1.3. Position in the Industry...... 21 International Activities...... 82 QualityCo nt rol ...... 86

Section2. Strategy 4.3. Intellectual Capital ...... 94 27 Innovative Activities...... 94 2.1. Mission and Values ...... 29 Intellectual Capital ...... 95 2.2. Strategic Tasks and Goals ...... 30 Management of Intellectual Capital ...... 96 2.3. Business Model and Capitals...... 31 2.4. Risk Management ...... 33 4.4. Human Capital ...... 104 Staff Update ...... 104 Human Capital Management...... 109 Section3. Governance 39 Occupational Health and Safety...... 119

4.5.S ocial and R eputationalC apital...... 121 3.1. Corporate Governance ...... 41 Information Sharing and Communication Lines...... 121 Members and Structure of the Governance Bodies ...... 41 Public Stance as to Sustainable Development...... 123 Corporate GovernanceSystem ...... 45 Development in the Region of RIAR's Business Presence ...... 125 Stakeholders’ Engagement...... 131 3.2. Governance strengthening...... 48 Key Performance Indicators...... 48 4.6. Natural Capital ...... 140 CSontrol ystem...... 52 Environmental Policy ...... 140 Anti-Bribery and Anti-CorruptionPolicy ...... 54 Environmental Pr o tection ...... 142 Procurement Management ...... 58 Nuclear and Radiation Safety ...... 151 Property Management ...... 60

Glossary...... 157 List of Abbreviations...... 160 About Report, its issuing and information materiality ...... 167 Feedback Questionnaire...... 174 7 Annual Report JSC “SSC RIAR” 2018 8

GRI 102-7 102-10 6 Key Performance Indicators 8 Di erence between indicators in 2018 and in 2017 — Actual value — Estimates

2.5.10 2.10.2 3.1.2 Sales revenue, M RUB 110. 7 3.1.8 Net pro t (loss), M RUB 69. 9 50. 0 –702. 1 5 174. 5* –90. 3 5 107. 4 4 237. 9 5 017. 2 +779. 3 4 119. 1 +40. 8 * Accounting the experimental base nancing 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

Net assets, M RUB Share of the administrative 21 617. 9 expenses in the revenue, % 19. 6 18. 5 18 334. 2 16. 5 18. 6 15 420. 9 15 849. 9 15. 8 +2 484. 3 11 254. 1 –2. 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

Average monthly salary budget, 58. 9 EBITDA, M RUB K RUB / month per person 369. 7 402. 2 425. 3 52. 6 241. 1 40. 5 43. 6 +9. 0 33. 5 +32. 5 –554. 9 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

Labor capacity, K RUB / person Adjusted free cash ow, M RUB 1 699. 2 805. 2 1 514. 1 1 491. 4 1 613. 3 748. 2 1 120. 8 352. 7 186. 1 +121. 9 +57. 0 –176. 6 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

Average stu ing number, Foreign receipts, M $ persons 3 708 38. 6 33. 5 36. 3 38. 1 28. 5 3 398 –46 3 226 3 180 3 183 +2. 3 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

The dynamics of key performance indicators of JSC “SSC RIAR” is presented in details in Sub-section4.1 «Financial Capital »and 4.4 « Human Capital » herein 9 Annual Report JSC “SSC RIAR” 2018 10

Appeal of Directors

Pavel ZAITSEV

Director General of JSC “Science and Innovations”

GRI Dear Colleagues! 102-14

JSC “SSC RIAR” is the anchor enterprise In 2018, a macrocontract was signed of the ROSATOM's Scientific Division being to design and construct a research reactor for the Nuclear Research and Technology Генеральный директор of the key importance for both domestic nuclear industry and development Center in Bolivia. RIAR will implement the АО «Наука и инновации» of international business. project in close cooperation with a number of industry enterprises. To strengthen its technological, production and financial potential, RIAR successfully As in previous years, JSC “SSC RIAR” did not provides high-tech services and sells have a single nuclear safety violation case radioisotope products. classified according to the International Scale of Nuclear Events. Reliable and safe operation According to the reporting period results, of nuclear facilities is still an absolute priority JSC “SSC RIAR” has demonstrated high-quality for RIAR, Division and industry as a whole. implementation of the production plan. The institute has fully achieved the established RIAR demonstrates a forward movement, key performance indicators, some of which which makes it possible to predict are at the top level. The company has the consistent achievement of strategic goals exceeded its revenue plan. Over the past while obligatory maintaining safety principles years, RIAR's management and personnel and following the priorities of sustainable have done tremendous work to improve development. The basis of this is operational efficiency, and RIAR's development the commitment of the RIAR's personnel program approved in 2018 will ensure its to such corporate-wide values as safety, long-term development. efficiency, responsibility for the result, work in a consolidated team, respect, and aim to be The reporting year of the Russia's always one step ahead. I want to thank RIAR's nuclear industry was a Year of Science. management and personnel for their diligent These are the scientific achievements that and result-oriented work and to express determine the ROSATOM's world's leadership confidence that RIAR's ability to mobilize for the coming decades. JSC “SSC RIAR” is resources to face new challenges will allow actively involved in the implementation it to successfully cope with any large-scale of advanced projects included in a unified tasks. industry roadmap. 11 Annual Report JSC “SSC RIAR” 2018 12

Аlexander TUZOV

Director of JSC “SSC RIAR”

GRI Dear Colleagues and Partners! 102-14 The Annual Report JSC “SSC RIAR” 2018 is industrial, and fire safety, labor protection, 2.5.7 addressed to a wide range of stakeholders environmental protection, and trouble-free 3.6.1. and contains detailed information operation of equipment. In 2018, there were on the RIAR performance in the light no accidents and occupational incidents. of sustainable development. In the reporting year, RIAR continued work Speaking about the reporting year results, on upgrading the main and auxiliary process I would like to start with the successful equipment in order to increase its efficiency completion of the three-year financial and sustainability. The associated largest rehabilitation program, fulfillment of all project we are implementing now is the commitments undertaken, and achievement the refurbishment of the SM reactor core; of the established indicators in full. As a result the project involves specialists from various of a systematic improvement of efficiency departments. An important point is that and reduction of costs and time of production the work is carried out in full accordance processes, we managed to increase with the approved schedule. the revenues by 3.7 billion rubles We continue paying great attention and to optimize costs by 1.3 billion rubles. to the health and well-being of our employees, The next key result to be achieved development of RIAR's habitat; we support by the RIAR's team is the approval industrial-level initiatives related to social, of Development Program until 2022, cultural, sports, and environmental aspects. which includes a set of measures aimed Competent social policy is the most important at achieving even more ambitious goals. component of our work. In the reporting year, The total revenue from sales of products a new collective labor agreement was and services in 2018 exceeded five billion concluded providing even more benefits rubles and again, as in the previous year, for the RIAR's employees and retired persons; the task of obtaining net profit was completed. funding for the voluntary medical insurance All contractual obligations and orders are was increased. The most significant indicator 100 % complete and with guaranteed high for each employee is the average monthly quality. The export being a half of the RIAR's salary level; over the past three years it has revenue, high requirements to the quality been increased by 1.5 times thus exceeding management system remain unchanged the amount of 52 thousand rubles. The gained when working with our foreign customers. competences and experience, as well as RIAR's And in this regard, once again, it is worth business reputation, allow us to look mentioning efforts of relevant RIAR's confidently into the future, guarantee departments to expand the international the necessary level of capacity utilization, cooperation. and also make a significant contribution The priority of JSC “SSC RIAR” has always to the development of the Russia's nuclear been and is the provision of nuclear, radiation, industry and prosperity of the region and our city. 13 Annual Report JSC “SSC RIAR” 2018 14

Key Events Awards

8 17 Regional-level A wards Rostekhnadzor accepted The program of financial for consideration a set of documents rehabilitation has been completed justifying the operating safety of the SM reactor 49 23 Certi cates of Merit 26 Recognition Letters

Under the contract with the China Institute Five institute employees were Munal icip -level A wards of Atomic Energy we have started research recognized winners of the Industry-level in the performance of an experimental competition "A Person of the Year" PWR fuel assembly in MIR reactor in 29 Certi cates of Merit the boron-lithium water chemistry 68 38 Recognition Letters and Appreciations 1 person distingushed at the Board of Honor

GRI A collective labor agreement JSC “SSC RIAR” is recognized as 102-41 Institute A-level wards for 2018–2021 has been concluded an organization able to operate between the employer and employees nuclear facilities and carry out activities persons awarded in this field Certi cates of Merit 10 with an “Honored 48 143 Employee” rank persons distingushed 41 Appreciations and Diplomas 44 at the Board of Honor

Long-term contract signed JSC “SSC RIAR” has successfully passed with the EDF Research Center (France) through the recertification audit Industry A-level wards for research in zirconium alloys of the integrated management system (quality management system and ecology) for compliance with the requirements Recognition Letters, 77Certi cates of Merit 8Appreciations and Diplomas of international standards 117 10 honorable distinctions 22 ranks“” Veteran of Nuclear Industry

A RIAR's employee became the winner The AST-1 facility was decommissioned 3.10.1 of the Rosatom State Corporation Contest to arrange a temporary storage facility on awarding prizes to young scientists for highly active solid radioactive waste Public Reporting-related Awards in the nomination "Defended dissertation" for the higher quality of Annual Report II as the Best Public Annual Report 5 (according to the “Expert-RA” place among the ROSATOM Divisions Stars Agency ranking) 15 Annual Report JSC “SSC RIAR” 2018 16

1

We actively interact

General Information 17 Annual Report JSC “SSC RIAR” 2018 General Information 18 1.1. GRI 102-1 102-3 102-5 17General Information

Company details GRI 102-22 Key information Brand name about JSC “SSC RIAR” stakeholders

Full Short 1.3.1 Share in the charter Legal / postal Number of shares by Акционерное общество «Государственный научный центр — Stakeholders capital, % by АО «ГНЦ НИИАР» address Научно-исследовательский институт атомных реакторов»* 31.12.2017 31.12.2018 31.12.2017 31.12.2018 Joint Stock Company «State ScientiW c Center — Research Institute of Atomic Reactors» JSC «SSC RIAR» Joint Stock Company 119017, Moscow, “Atomic Energy Bolshaya 9 115 605 675 9 503 495 67553.0235 49.0927 Contact details Power Corporation” Ordynka St., 24 Location and postal address 433510, Russian Federation, Ulyanovsk region, Dimitrovgrad, Zapadnoye Shosse, 9 Russian Federation represented 119017, Moscow, E-mail [email protected] by ROSATOM State Atomic Bolshaya 1 710 732 800 3 489 479 4009.9510 18.0258 Energy Corporation Ordynka St., 24 Website http://www.niiar.ru Phone +7 (84-235) 9-83-83 ROSATOM 119017, Moscow, State Atomic Bolshaya 6 365 286 800 6 365 286 80037.0255 32.8815 Fax +7 (84-235) 9-83-84 Energy Corporation Ordynka St., 24

* Hereina[ er referred to as JSC “SSC RIAR” or RIAR

Information about Registrar Subsidiary companies Brand name and joint ventures of JSC “SSC RIAR” Full Short Company Activities Stake, % Joint Stock Company “R.O.S.T. Registrar” JSC “R.O.S.T. Registrar” NIIAR — GENERATSIYA Ltd. Generation and supply of energy: electricity, 100 heat, steam, hot water, drinking and general-use water, Documents giving the right to conduct business water discharge Decision of the Board of Directors License of the Federal Commission for the Securities Market as of JSC “SSC RIAR” as of 30.12.2008 # 4 Production, storage, receipt, usage, transportation of03.12.2002 # 10-000-1-00264 51 Belorussian-Russian of radioactive materials and products; design engineering, Joint Stock Company Registrar details fabrication, assembling, adjustment, failure assessment, “Isotope Technologies” operation, repair and maintenance of radioisotope-based OGRN 1027739216757 TIN 7726030449 devices and facilities

Contact details Beijing CIAE-RIAR Production of Californium-252 neutron sources 50 Radioisotope and other sources, their integration in devices Postal address 107996, Russian Federation, Technology Co., Ltd and equipment, selling at the territory of the People's Moscow, Stromynka St., 18/13 Republic of China, promotion of Californium-252 sources E-mail info@. rrost ru and other sources for their use in the industry of the People's Republic of China, rendering services Phone / Fax +7 (495) 780-73-63 for consumers, export of products to other countries +7 (495) 780-73-67 of South-East Asia and some Asian countries (Japan, South Korea, Australia) The date since the Registrar has maintained January 11, 2009 the register of issuer's inscribed stock 19 Annual Report JSC “SSC RIAR” 2018 General Information 20 1.2. GRI 102-2

1.3.2 Key Competencies.

7Products and Rendered Services 9

JSC “SSC RIAR” today is the largest R&D and engineering activities R&D center in Russia and the world providing high-tech, science-based Reactor tests and research Materials testing services for a wide range of in-pile Radionuclide sources and radiochemicals tests and post-irradiation assays; Radiochemistry and fuel cycles it is also a key scientific, technological NPPs Research Institutes SPAs and research-and-production center of the Rosatom State Corporation Radionuclides production and sale for the development and production of high-tech innovative products that are in demand in various industries.

Medicine Space Industry Research Institutes Universities

Manufacture of FAs containing Generation, transfer and sale of energy mixed uranium-plutonium fuel resources at the regional market

NPPs Population 21 Annual Report JSC “SSC RIAR” 2018 General Information 22 1.3. GRI 102-4 102-6 56 Position

1.3.2 9 in the Industry

Saint- Petersburg Moscow Orel

Norway Nizhny Novgorod Sweden Saransk Ukraine Dimitrovgrad Belarussia Ekaterinburg Poland Novosibirsk Germany Tomsk Denmark Holland Belgium Great Britain Kazakhstan Switzerland France Slovakia Czech Republic Japan Hungary Bulgaria South Korea USA Hong Kong China Israel

India

Bolivia Australia Brazil

Argentina R&D Isotopes production FAs manufacturing Please, see more details in the previous Reports at()http://niiar.ru/annual_report and in Section 4.2. Energy generation 23 Annual Report JSC “SSC RIAR” 2018 General Information 24

The key activities of JSC “SSC RIAR” Position in the ROSATOM' s system In 2018, JSC “SSC RIAR” demonstrated 1.3.1 are focused on the R&D provision 1.2.11 a consistently positive development 2018 — A Year of Science 1.3.2 3.2.1 dynamics, firmly occupying its niche of the ROSATOM's enterprises in the eld Rosatom State Corporation 3.18.9 in the Rosatom State Corporaiton of the NPP fuel lifecycle at the stages 3.24.1 in the industry. Against the backdrop in the scope of government-level orders of its development, fabrication, operation Human life is not eternal, but science and handling of SNF and radwaste. compared to last year, RIAR increased deliveries of radionuclide products and knowledge go through centuries. The ROSATOM's enterprises are known Applied and fundamental science by 858 million rubles. (+ 55 %), including I. Kurchatov to implement two full process runs that for foreign customers in the amount Science is not and will never be a closed book. are related to NPPs and nuclear fuel. of 612 million rubles (+ 47 %). Also, a landmark Every important success evokes event of 2018 was the conclusion new questions... Physical&Power Block of a contract to supply non-standard А. Einstein reactor equipment to the Center for Nuclear Research and Technology Only science teaches how to extract being built in Bolivia, which made it possible the truth from its only original source — to open a new business in the RIAR's from reality. JSC “SSC RIAR” activities. К. Тimiryazev

GRI 102-6 Structure of JSC “SSC RIAR” supplies in 2018, %

1 3 NPP lifecycle* Fuel lifecycle* 12 13 29 4 2 36 4 5 Equipment for NPPS Uranium mining 3 1 02. Fields Orders Customers of activities 68 48 Conversion, enrichment 70. 8 NPP construction Others FSUE “NITI” JSC “Rosenergoatom TerraPower (USA) R&D Fabrication Out-of-the-industry Concern” Nuclear industry-based PJSC “MSZ” Isotopes JSC “VNIINM” State KAERI (South Korea) Energy services JSC “TVEL” NPP operation NPP operation JSC Afrikantov “OKBM” Others

JSC “SSC RIAR” revenue distribution, % NPP maintenance service Radwaste 2015 60 40 and SNF handling Decommissioning 2018 51 49 of a radiation-hazardous facility 2021 39 61

* In red are stages at which JSC “SSC RIAR” services are in demand Domestic Export 25 Annual Report JSC “SSC RIAR” 2018 General Information 26

GRI RIAR's Background 102-6 Export of products and services in 2018, %

3.24.1 Brazil 18. 5 1956 1961 1964 1965 USA 15. 9 Decree of the Council Startup Establishment Startup of Ministers of the USSR of the SM reactor of the Radiochemical of the VK-50 reactor China 15. 4 on construction and Reactor Materials France 14. 8 of a pilot nuclear power Testing Divisions plant South Korea 77. Australia 46. Poland 46. Czech Republic 37. 1967 1969 1975 1984 Germany 29. Startup Startup Startup Startup Belorussia 27. of the MIR reactor of the BOR-60 reactor of the RBT-6 reactor of the RBT-10/2 reactor Argentina 22. Hungary 12. Others 58. 1991 1994 2010 2011 Structure of export in 2018, % Establishment RIAR was assigned Resolution Resolution of the Radioisotopes a status of the state on construction on construction and Radiochemicals scientific center of the MBIR reactor of the Polyfunctional Others 10 Division Radiochemical Complex Czech Republic 5 30. 2 mln $ 84. mln $ Germany 4 Poland 6 45 USA France 12 Belorussia 3 3.23.3 2014 2015 2016 2017 Supply of Molybdenum-99 Decommissioning RIAR was assigned Star of the cobalt 62 38 the ICERR status Brazil 24 on a regular basis of RBT-10/1 reactor production line 26 South Korea

China 19 24 USA 8 France R&D More details about RIAR's background can be Australia 6 found at http:// niiar.ru / history 2018 — A Year of Science South Korea 3 Isotopes 5 Others in the Rosatom State Corporation

Science is the most important, the most beautiful Others— Japan, the Netherlands, India, GB, Belgium, Bulgaria, Slovakia, etc. and necessary thing in a human life. А. Chekhov 27 Annual Report JSC “SSC RIAR” 2018 28

2

We plan our future Strategy 29 Annual Report JSC “SSC RIAR” 2018 Strategy 30 2.1. 2.2. GRI GRI 102-16 102-15

Mission and Values 3.4.5 Strategic Tasks 3.14.1 3.20.1 and Goals Mission of JSC “SSC RIAR” is to solve current issues of both Russia's and world's nuclear science, engineering and medicine Strategic goals Tasks to solve Contribution to the goals achieved by rendering science-intense high-tech services Improving the competitive- Development ness and safety of various of the experimental potential Technological and experimental justi cation on the experimental justi cation of the performance types of nuclear reactors of the RR eet, facilities of materials and design components of various to ensure the long-term and research infrastructure reactors, their performance and lifetime; new of materials and core components of operational and promising sustainable development technical decisions aimed at the improvement reactors, by developing innovative fuel cycle technologies, of Russia's nuclear power of their characteristics important industry for the NPP e ective operation and by producing radionuclides. Ensuring Enhancement Technological and experimental justi cation the implementation of the production culture level of options for low-power reactors; generation of state-level order and labor e iciency of experimental data on the properties of structural materials for innovative power conversion facilities Enhancing nuclear Provision of nuclear Scienti c and experimental justi cation of technological and radiation safety and radiation safety and design decisions for the refurbishment, upgrading, of nuclear facilities at all facilities lifetime management and decommissioning of nuclear facilities, including the development of conventional technologies for handling generated waste SAFETY EFFICIENCY and reprocessing spent nuclear fuel from nuclear ice-breakers; standards for monitoring and interpretation of facility conditions values at all stages of its lifetime E icient management Development Scienti c, technical and experimental substantiation of spent nuclear fuel of the production infrastruc- of technical solutions, development and testing and radioactive waste ture for a full fuel supply cycle, of technologies for the closed fuel cycle; creation SNF of technologies for the production of fuel for fast 1 and radwaste management neutron reactors, typical technologies for the management of radioactive waste generated RESPONSIBILITY in this process and technologies for the treatment OUR TEAM and reprocessing of spent nuclear fuel FOR THE RESULT from an atomic ice-breaking eet Creation of a pilot Development Scienti c-technical and experimental-technological industrial production of the production infrastruc- support, development of technologies and creation of science-based, ture to provide of production of radioisotope products for scienti c, high-tech and unique the innovative high-tech technical and medical purposes innovative products output Development Provision of nancial stability Development of personnel potential for ensuring and strengthening and e iciency of the enterprise promising scienti c and technical tasks facing ONE STEP AHEAD RESPECT of core competencies, activities; development the nuclear industry in Russia, assisting increasing the economic of the scienti c, marketing, in the development of the region and creating result of the current nancial-economical the necessary conditions for attracting activities in the global and production potential and retention of highly quali ed employees market, ensuring to increase the high value- sustainable long-term added output development

2018 — A Year of Science RIAR, being an important experimental base, and services; maintenance of national nuclear in the Rosatom State Corporation contributes to the achievement of the strategic arsenal; provision of nuclear and radiation goals such as: effective provision of the national safety of nuclear facilities, personnel, Science is boundless since new and new tasks Please, nd more details in Section 3 economy with electrical energy; strengthening population and environment; development and Section 4 of the national geological interests of innovative nuclear technologies appear every day… D. Mendeleev and achievement of the leading positions and broadening their application areas at the world's market of nuclear technologies in different industries. 31 Annual Report JSC “SSC RIAR” 2018 Strategy 32 2.3. GRI 102-8 102-9 102-10 401-1 Business Model and Capitals 6 Contribution 1.2.11 Capitals Value creation process Change of capitals Value creation for stakeholders to the sustainable 1.3.2 development 1.6.1 1.7.3 Key processes 2.5.10 Index 2017 2018 State 3 2.8.1 SCIENTIFIC & PRODUCTION 2.10.2 Ÿ R&D (in-pile tests, PIEs, Sales revenue Growth in tax payments to deferent-level budgets by 5% Good health High-tech production base (activities, services), and wealth 3.1.2 radionuclide sources 4 237.. 9 5 017 2 Participation in the space-related programs 3.2.1 Public infrastructure and radiochemicals, mln rub 3.2.3 radiochemistry and fuel cycles) Labor e iciency, 4 3.6.1 1.. 491 1 613 3.7.1 Ÿ Radioisotopes production mln rub / person per year 3.24.1 Ÿ FAs manufacturing Customers High-quality education 3 Number of personnel, persons 4 Ÿ Energy generation 3 333 3 253 789 HUMAN Growth in the radionuclides production 6 Average monthly salary, 43.. 6 52 6 Personnel thous rub and delivery by 1320 mln rub New contract with the Bolivia Center Clean water and sanitation Potential personnel, consultants, Personnel uctuation, % 5.. 70 5 79 retired persons for Nuclear Research and Technology,40 mln USD Trained persons 1 423 1 683 (VAT not includes) 7 Development processes Average index of customers' satisfaction with product—,88 % with R&D — 86 % Cheap and clean energy Ÿ R&D Net assets, mln rub 15 849.. 9 18 334 2 FINANCIAL Increase in the energy sold by 18. 4 % Non-distributed pro t, Ÿ Upgrading of reactor facilities 8 Assets, and equipment Net pro t, mln rub 69.. 9 110 7 Accumulated assets Ÿ Enlargement of international activity Registered capital, bln rub 12.. 686 19 358 Decent job Consolidated investment resources, Personnel and economic growth industry-level resources, FTP resources, Investments, bln rub 2.. 1 1 9 loans, credits, subsidies Customers and Partners Medical insurance expenditures — 74. mln rub 9 Growth in the average monthly salary by 21 % Expenditures Industrialization, Ÿ NPP design o ices 101.. 736 120 449 Net pro t for the second year running innovations and infrastructure and service organizations for environmental protection, NATURAL mln rub Own and leased land Ÿ Industrial enterprises 11 Volume of water taken, 3 9 421. 61 8 252. 33 Environment, natural raw materials Ÿ Foreign customers thous m Ÿ Sustainable cities Produces of radiopharmaceuticals Volume of sewage water 2 636. 95 2 271. 00 Partners Ÿ Medical centers discharge, thous m3 State-level contract was ful lled 12 GRI Ÿ Producers of medical equipment Release of contaminating 5 763 5 763 201-4 SOCIAL & REPUTATIONAL to upgrade the BOR-60 equipment — 12 mln rub Responsible consumption Ÿ Educational centers substances into atmosphere, kg Reputation, position at the world's Licenses got in time and production markets, relations to the domestic Ÿ Research institutes Social expenditures, mln rub 28.740 . 0 Successful re-certi cation audit and foreign customers, competent and centers 13 products and services, recognized Ÿ Tax payments, 838 881 Enlarged nomenclature and reliable brand, publicity capital Producers mln rub of products and services of equipment based Combating climate change Image of the State and industry, on ionizing sources Involvement of personnel,. % 85 83 Pro t at the international market — 25. bln rub State-level and ROSATOM-level initiatives (38. 6 mln USD ) Ÿ Construction, installation Number of publications in media 300 500 15 and repair enterprises Share of export pro t—,49 % including Ÿ Cost of intellectual supply of radionuclides — 37 % Preservation INTELLECTUAL Suppliers property objects, 306.. 84 555 74 of terrestrial ecosystems Objects of intellectual property, and preprocessors mln rub of nuclear fuel Competences of personnel Number of patents 16 World-wide intellectual resources Ÿ Suppliers of systems, for inventions and useful models 15 6 equipment and materials World, justice Number of persons and e ective institutions

Strategy Mission and values and Mission with a scienti c degree 69 71 17 Internal resources External resources No change Increase Decrease Partnership in the sustainable development 33 Annual Report JSC “SSC RIAR” 2018 Strategy 34 2.4.

decisions on necessary risk management elaboration of additional measures Risk Management activities. The risks attributable to business to mitigate them. activities of RIAR mostly do not require The risk management policy of RIAR is and aimed at the timely identification 61 governed by relevant regulatory documents of events that could adversely affect Risk assessment map of the Rosatom State Atomic Energy the achievement of goals, and application There is no need to develop 2.2.1 Corporation. They are used as a basis of adequate response measures. For each an additional action plan 3.2.4 to put in place unified requirements of the identified risks, an assessment is made 3 to minimize risks 7 for analysis of risks affecting achievement of existing measures to minimize it, including 81217of financial and business performance internal control procedures and their High There is a need to develop indicators. The primary goals and objectives adequacy to maintain the residual risk level. an additional action plan of the risk management process are In order to neutralize part of the risks, Operational Risks associated to minimize risks with investment as follows: protective measures have been taken risks There is a need to develop

Risk probability projects Ÿ Identification of risks and their mitigation, to a greater extent associated Medium an additional action plan provision of information and reporting with the implementation of the production to minimize risks program, and possible algorithms have been and to implement about risks to make managerial decisions Legal and social Risks associated Risks associated developed how to act in the event insurance risks with a view to responding the strategic risks with occupational with radiation objectives; of a particular risk. Risk management is Low and nuclear safety The development of extra carried out and monitored at the institute's health and safety Ÿ Promotion of process continuity (stability) measures does not contribute departments in each area of responsibility. through identification, assessment Low Medium High much to risk minimization, The objects of operational risk are internal and mitigation of threats which can affect Impact level a question of the rationale business processes that affect the stability the performance; for the activity is raised of enterprise development. In 2018, in order Ÿ Allocation of risk management responsibility to minimize risks and in accordance area for Institute's employees with the financial recovery program, Our plans: at an appropriate level of management. responsible persons for its implementation The RIAR's risk management policy includes were identified. Risk management measures Ÿ Risk assessment in the framework Ÿ Monitoring of risks in groups of processes the identification and assessment of risk, are consistent with the strategic development of production program2018–2022 ; "Budgeting" and "Medium-Term Planning" the definition of control procedures goals and the main directions of the institute's Ÿ Development of the risk management to analyze their impact on the budget indicators; covering risk factors, the development financial policy. system and its integration into the existing Ÿ Control over the implementation and implementation of control procedures The risks were classified according to their management processes; of risks management activities. to minimize risks, their testing and monitoring significance and likelihood with a view to take GRI 102-11 Risk management at JSC SSC RIAR” 102-15 102-29 Risk Risk factor Risk management activities Results achieved 102-30 Ÿ 102-33 Operational risk Ÿ Uncertain and unforeseen sticking points appearing Ÿ Introduction of the state-of-the-art production methods. Development and implementation of improved methods 102-34 during the production process Ÿ Modernization and technical retrofitting of radiation hazardous facilities. to test materials and new technologies (subsection 4.2 and Scientific Annual Report) Ÿ Mitigation (elimination) of hazards Risk Ÿ A decrease in demand leads to the risk Ÿ Implementation of innovative projects (subsection 4.3). of underemployed Ÿ Financial and industrial support of innovative products during the market slump. of underemployed capacities and underemployment Ÿ Ÿ Increase in sales of radionuclide products (subsection 4.2). capacities of the personnel Increased production and sales of industrial grade products. Ÿ Ÿ Sale of non-core property 5.1 mln rub — profit from the sale of unclaimed movable property

Risks associated Ÿ Violation of technological regimes, Ÿ Production planning, analysis and timely correction of deviations in technological modes. Ÿ Claims and complaints from consumers with the loss failure to meet production deadlines, including due Ÿ Maintenance and preventive maintenance of equipment. of products and services — 0 (subsection 4.2) of products to untimely provision of inventory items. Ÿ Planning and monitoring of procurement activities to provide materials, equipment, quality Ÿ Deliveries of materials, components components, services. with hidden defects. Ÿ Phased inlet quality control of products (works, services) in accordance with established Ÿ Untimely certification of control and measuring requirements, timely identification and tracking of defects and non-conformities. equipment, measurement procedures, Ÿ Monitoring the timing of certification of equipment and techniques. non-observance of service and repair schedules Ÿ Monitoring the timing of maintenance and repair, procurement activities of measuring equipment to provide components and consumables. Ÿ Continuous improvement of the quality management system. Ÿ Customer feedback and responsiveness to new customer needs; improvements based on customer satisfaction assessment 35 Annual Report JSC “SSC RIAR” 2018 Strategy 36

Risk Risk factor Risk management activities Results achieved 1.2.11 2.5.7 Risk associated Ÿ Setback of the worldwide / Russian financial Ÿ ОIdentification of risk owners and defining areas of their responsibility. Ÿ Decrease in the number of staff for 46 and increase 3.2.4 3.13.2 with the increase and monetary system. Ÿ Implementation of programs targeted at energy saving and energy efficiency in the average salary (subsection 4.4). 3.15.1 in the cost Ÿ Changes in the charge rates for public utilities enhancement. Ÿ Reducing the cost of energy resources by 6.3 mln rub 3.15.3 of services and services, of shipping companies etc. Ÿ 3.23.4 Integration of the ROSATOM industrial system to improve processes. (subsection 4.6). Ÿ Increase of the minimal subsistence wage etc. Ÿ Optimization of production areas. Ÿ Failures in the work processes. Ÿ Headcount optimization Ÿ Lower level of equipment capacity utilization. Ÿ Technological obsolescence Risk associated Ÿ Changes in the pricing policies of Contractors provided Ÿ Invention of new market segments. Ÿ Long-term contract with France, expansion of cooperation with movements that the contracts concluded for input supplies enable Ÿ Expansion of the range of products and services rendered with China and South Korea, equipment supply agreement in market prices reconsideration of prices with Bolivia (subsection 4.2). for procured Ÿ Release of a new type of source (for example, based on materials and output selenium-75), development of new technologies (for example, products due express accumulation of californium-252), etc. (section 4.2) to changes in economic situation Ÿ Legal risks Loss of income, capital or loss in connection Ÿ ОImplementation of activities strictly in accordance with the main Ÿ Lack of delays in the implementation of production activities with violations or inconsistencies with internal local normative acts in the field of corporate governance. related to changes in the legislation. and external legal norms Ÿ Compliance and ongoing monitoring of the current legislation of the Russian Federation Ÿ and the presence jurisdictions in the field of nuclear energy, marketing, export control Obligatory coordination of all concluded contracts GRI and non-proliferation of weapons of mass destruction. with the Department for Legal Work and Corporate Relations, 414-1 Ÿ and in some cases, involvement of independent consultants Following all recommendations of regulatory bodies (Section 3) of international and national level Social risks Ÿ Restructuring of society. Ÿ Implementation of the ROSATOM social policy. Ÿ Social-related expenditures made up 39 997 k rub. Ÿ Headcount reduction. Ÿ Implementation of corporative social programs. Ÿ A deposit agreement 2017–2018 amounting to 7.7 mln rub Ÿ Reduction in the enterprise income. was concluded with the insurance company SOGAZ. Ÿ Ÿ Minimization of social tension, if any GRI Personnel gap Ÿ Workplace agreement for 2018–2021. 102-41 Ÿ New workplaces at the newly-constructed PRC and MBIR. Ÿ 33 agreements with 21 Universities (subsections 4.4 and 4.5)

Labor protection Ÿ Violation of safety requirements and rules Ÿ Implementation of ROSATOM unified industrial policy in the field of labor protection. Ÿ Accidents — 0. risk of internal labor regulations. Ÿ Ÿ Functioning of the enterprise's labor protection management system on the prevention Ÿ Cases of professional diseases— 0 ( subsection 4.4.) Dangerous and harmful production factors. of occupational injuries and occupational diseases, improvement of working conditions Ÿ Violation of the regime of work and rest. Ÿ of the RIAR staff. Insufficient resources to perform safety Ÿ Organization of individual dosimetry control for seconded persons and employees arrangements of contractors performing work on radiation hazardous sites and objects of RIAR. Ÿ Reflection in contracts concluded by the enterprise with contract organizations responsibilities of contractors in the field of compliance with labor protection requirements. Ÿ Regular safety compliance checks together with representatives of contracting organizations. Ÿ Perfection of the labor protection and safety culture. Ÿ Implementation of measures to prevent injuries. Ÿ Provision of the staff with collective and individual protection Nuclear Ÿ Infringement of requirements in the field Ÿ Monitoring of the status and implementation of a complex Ÿ Reducing the average dose to personnel — 13%. and radiation of nuclear and radiation safety. of engineering activities to ensure trouble-free operation safety risk of nuclear research facilities and nuclear-hazardous areas. Ÿ Compliance with the standards for the release of radioactive Ÿ Insufficient level of emergency preparedness. substances into the air. Ÿ Implementation of modernization programs for the technological Ÿ Insufficient resources to perform decommissioning Ÿ Violations of level I and higher are INES– 0. activities and provide safety. equipment. Ÿ Implementation of the guidelines of the FMBA of Russia, Ÿ Major accidents / incidents in the enterprise Ÿ Compliance with current standards in production and technological processes when operating nuclear installations, store and handle radioactive materials. federal norms and rules in the field of atomic energy use, standards of the Rosatom State Corporation Ÿ Dosimetric control of external and internal exposure of personnel. Ÿ Control of coming of radioactive substances into the atmosphere 37 Annual Report JSC “SSC RIAR” 2018 Strategy 38

Risk Risk factor Risk management activities Results achieved Ÿ Maintaining the readiness of the special reaction forces to prevent, localize Ÿ Justification of the sufficiency of the amount of the current and eliminate consequences of possible accidents and emergency situations. insurance contract to compensate for damage to third parties Ÿ Staff development. in the event of potential emergencies at the RIAR's nuclear Ÿ Conducting of comprehensive and inspection checks. and radiation facilities. Ÿ Assessment of the maximal possible radiation and economical consequences Ÿ No significant radiation impact on personnel, population of accidents the RIAR's site and the environment (subsection 4.6) Ÿ Investment Failure to achieve goals, performance indicators Ÿ Monitoring of project risks, identifying of key deviations. Ÿ The project for the full cost of the MBIR construction was projects risk and functionality of construction projects due Ÿ Updating the list and risk assessment. approved and an agreement was signed on the MBIR reactor to insufficient funding for the full cost of projects; Ÿ Identification of risk owners and their responsibility, development and implementation construction (full development). lack of investment. Ÿ Ÿ of compensatory measures to minimize risks, identification of the highest priorities. The preparation of a set of licenses site has begun as well as Increased project budgets due to rising prices Ÿ Optimization of investment costs taking into account the priorities and risks of projects. the roadmap for creating and maintaining the MBIR reactor for goods / work / services, additional costs, etc. single information space. Ÿ Ÿ Effective interaction with contractors/suppliers, control over the execution of contracts Deviations from the schedule, failure to meet and terms. Ÿ Implementation of the highest priority investment measures project deadlines due to errors, design problems, Ÿ from the standpoint of ensuring the safety and reliability untimely and/or poor-quality fulfillment Effective interaction with Rosatom State Corporation to solve problematic issues. Ÿ Private-public partnership, attraction of external investors. of the nuclear facilities operation (within the framework of obligations by contractors/suppliers, Ÿ of the approved limits). unforeseen work, etc. Advanced training of specialists, development of competencies. Ÿ The updated key parameters of the project Ÿ Untimely and incomplete project information. Ÿ Creation of a single information space to provide increased safety of project documents, “Modernization of the SM reactor core” were Ÿ Uncoordinated implementation of projects the convenience of their search, analysis and storage. approved (subsection 4.1) Ÿ Creation of project management working groups

Ecological safety Ÿ Infringement of industrial and environmental safety Ÿ Implementation of the environmental policy of the institute. Ÿ Cases with adverse effects on the natural environment — 0, risk with consequences for the nature. Ÿ reduced risk of such violations. Ÿ Implementation of measures to reduce risks in the field of environmental protection. GRI Lack of compliance with requirements in the field Ÿ Ÿ Environmental litigation lawsuit — 0. 201-2 of environmental protection, including insufficient Provision with personnel and material resources sufficient to fulfill the requirements in the field of environmental protection. Ÿ Current environmental costs — 120 449 thous. rub resources for security measures implementation. Ÿ Ÿ Insufficient level of emergency preparedness Analytical control of sources of environmental impact and environmental objects. Ÿ Payment for environmental services — 4 540 thous. rub Ÿ Compliance with environmental requirements. Ÿ Ÿ Investments in environmental protection and rational use Conducting comprehensive and inspection checks, audits. of natural resources — 4 384 thous. rub (subsection 4.6) Ÿ Improving the integrated quality and environmental management system. Ÿ Improving emergency preparedness Ÿ Reputation risk Stakeholders' perceptions of the reliability Ÿ Outreach: the publication on the topics of the institute, interaction with the public Ÿ The Annual Public Report on environmental safety and attractiveness of JSC “SSC RIAR”, and the media, participation in conferences, seminars. (http://niiar.ru/annual_report), the Annual Scientific Report confidence in its activities and quality Ÿ Analysis of the structure of stakeholders, identification of their expectations, and this Report, including in English, Collections of Works of products and services widening of the circle of stakeholders. (4 issues per year). Ÿ Compliance with the industry regulations on the information of public Ÿ Two monographs and an advertising catalog. in abnormal situations that threaten business and public reputation. Ÿ Consumers consider JSC “SSC RIAR” a reliable supplier. Ÿ Implementation of integrated communications. Ÿ Over 500 references to the company's activities in the Russian Ÿ Implementation of targeted communication programs. media (an increase in the number of publications by 66.7%). Ÿ Formation of a positive public attitude to the activities of RIAR via increasing Ÿ 104 specialists from 10 countries visited the institute. information transparency and openness and through constructive The number of excursionists is 1 016 people. interaction with stakeholders. Ÿ Meeting of experts with the younger generation. Ÿ Continuous monitoring and analysis of reports in national and foreign media Ÿ Negative reviews in the media — 0 (subsections 4.2, 4.3, 4.5)

Risk Ÿ Volatility of exchange rate Ÿ Analysis of contracts concluded and future possible contracts. Ÿ +231 mln rub is an increase in foreign exchange earnings of exchange Ÿ Costs optimization associated with the USD growth in 2018 losses

Decrease Increase No change 39 40

3

We manage e ectively

Governance 41 Annual Report JSC “SSC RIAR” 2018 Governance 42 3.1. GRI 102-18 102-19 102-24 102-26 Corporate governance 102-27 102-31 102-33 58 59MEMBERS AND STRUCTURE OF THE GOVERNANCE BODIES 5

2.1.1 Structure of the Corporate The Charter of JSC “SSC RIAR” and the Federal GRI Members of the Board of Directors and the term of its power 2.1.2 Law No. 208-FZ “On Joint Stock Companies” 102-22 102-23 Governance Bodies as of 26 December 1995 govern the powers, the procedure for convening and holding the General Shareholders Meeting that is 2.1.6 From June 28 2017 until 27 June 2018 From 28 June 2018 until 31 December 2018 the supreme corporate body. General Shareholders Meeting The Board of Directors that is a collegial managing body acts in compliance Nikolay A. KONDRATIEV with the scope of its competence stipulated Nikolay A. KONDRATIEV by the Federal Law No. 208-FZ “On Joint (Board Chairperson) (Board Chairperson) Board of Directors Stock Companies” as of 26 December 1995, Sergey P. KASHLEV Alexey V. DUB the Charter of JSC “SSC RIAR” and the Statute of the Board of Directors. It is in charge Vladimir D. RISOVANY Vladimir D. RISOVANY of overall management at RIAR, sets up Alexander A. TUZOV Ivan V. SOBOLEV Sole Executive Bodies a corporate development plan, exercises control over nancial and economic activities Il'ya V. CHEREMUKHIN Alexander A. TUZOV and over the Sole Executive Body for JSC “SSC RIAR “. The number of members Managing for the Board of Directors is speci ed The ongoing activities of JSC “SSC RIAR” of JSC “SSC RIAR” and by the managing Director Organization in the Charter of JSC “SSC RIAR”. It consists were managed by sole executive bodies company that is Joint Stock Company of ve people. There were seven members during the period under report: “Science and Innovations”. in the Board of Directors over time during by Alexander A. Tuzov, Director the period under report. They were males over the age of 31 and under 50 and ve males who are over 51 years old. Fundamental GRI decisions regarding the RIAR's performance 102-35 Remuneration payable to the Director General Meeting were taken by the Board of Directors 102-36 and to the members of the Board of Directors 1 of Shareholders at the meetings during the year under report. 102-37 All the meetings of the Board of Directors The principle of forming remuneration of the Board of Directors and\or reimburse were held with the full participation of its 2.1.4 for the top management is similar for expenses arising out of discharging members. There are no committees under to the principle of forming compensation their duties as the members of the Board the Board of Directors. A collective executive to other employees of JSC “SSC RIAR”. of Directors at RIAR. Meetings of the Board board was not formed at JSC “SSC RIAR” 2.1.5 The amount of remuneration payable 51 of Directors during the year under report. There are to the Director of JSC “SSC RIAR” is determined The general meeting of shareholders at RIAR no independent members in the Board in accordance with the terms and conditions did not resolve to pay any remuneration of Directors in the meaning stipulated of employment contract which are subject during the year under report. Therefore, by the Code of Corporate Governance of approval by the Board of Directors. no remuneration was paid to the members and recommended to be implemented The general shareholders meeting may resolve of the Board of Directors. by the letter of the Bank of Russia to pay remuneration to the members Attendance rate No. 06-52/2463 as of April 10, 2014 “Concerning 100 % the Code of Corporate Governance”. For more detailed information about 2018 — A Year of Science remuneration payable and labor in the Rosatom State Corporation The annual record of the Board of Directors' remuneration see Section 3.2 “Key Matters and topics performance is given inAppendix 3 hereto . performance Indicators” and Section 4.4 Progress of science depends on the work of scientists addressed at the Meetings The information about shareholders “”Sta Pro le 73 of the Company is included in Section 1.1 and the value of their discoveries. “”.General Information L. Paster 43 Annual Report JSC “SSC RIAR” 2018 Governance 44

Board of Directors for JSC “SSC RIAR” As at 31 December 2018

GRI 102-22 102-23

2.1.6

Sergey Nikolay Ivan Alexey Alexander Il’ya Vladimir KASHLEV KONDRATIEV SOBOLEV DUB TUZOV CHEREMUKHIN RISOVANY

Date of birth: 23.02.1960 Date of birth: 19.10.1960 Date of birth: 12.08.1954 Date of birth: 25.07.1960 Date of birth: 09.04.1971 Date of birth: 23.03.1975 Date of birth: 15.03.1955 Academic backgroundе: higher, Academic backgroundе: higher, Academic backgroundе: higher, Academic backgroundе: higher, Academic backgroundе: higher, Academic backgroundе: higher, Academic backgroundе: higher, graduate from Novosibirsk State graduate from Tomsk Polytechnic graduate from Kharkov Law graduate from Moscow Institute graduate from Nuclear Power graduate from Yaroslavl State graduate from Ural Polytechnic University (1982) majoring Institute (1982) named University (1980) named of Steel and Alloys (1983) Engineering Institute in Obninsk University (1997) majoring Institute named a er S. Kirov a er F.E. Dzerzhinsky majoring majoring in studying of physical

Personal details in economic cybernetics a er S. Kirov majoring (1994) majoring in power in jurisprudence majoring in metal science in engineering electronics in jurisprudence and chemical properties generation and automatic control for metallurgical processes engineering

JSC “Science and Innovations”: JSC “Science and Innovations”: JSC TVEL: Moscow Institute of Steel ROSATOM State Atomic Energy “ENERGOPROMSBYT” LLC: JSC “SSC RIAR”: From March 2012 until January From November 2011 until From September 2013 until and Alloys: Corporation: From February 2013 until April 2015 – From March 2013 until January 2013— Advisor; October 2013 – Director General; November 2017 – Head Since 2005 and to the present From November 2010 until April Head of Legal O ice. 2014 – Research Coordinator. of Corporate Governance day – Head of Department. 2015 – Program Executive, From January 2013 until Since October 2013 and Property Department. “ATOMENERGOSBYT” JSC: JSC “Science and Innovations”: December 2015— Deputy JSC NPO “TSNIITMASH”: Deputy Director of the Innovation and to the present day – Chief JSC “Science and Innovations”: Management Unit – Head From February 2013 until April 2015 – From October 2013 until April Director General for Economics Executive O icer From March 2005 until October Chief Executive O icer, Government 2017 – Director General Deputy – and Finance; Since November 2017 2014 – Director General. of Department for Technological and to the present day – Development. Relations Department. Chief Research O icer for From December 2015 until Advisor to director General JSC “Science and Innovations”: JSC “Science and Innovations”: Physics and Power Engineering JSC “Science and Innovations”: Unit; November 2017— Director From October 2013 until From July 2015 until June 2018 – General; October 2015 – Director General From May 2015 Head of Agency for Legal Since April 2017 From November 2017 until and to the present day – and Corporate Performance; and to the present day – R&D Since October 2015 Director. Director, Chief Research O icer January 2018— Deputy Director and to the present day – First Since July 2015 and to the present General for Economics JSC “SSC RIAR”: for Physics and Power Director General Deputy day – Head of the Group, Legal Engineering and Finance. Since October 2015 Support and Claims Administration JSC “OTEK”: and to the present day – Since January 2018 Director. and to the present day — JSC “Reactor Materials Institute”: Deputy Director General From July 2017 until June 2018 –

Place of employment and positions held over the last for ve years Economics Board Chairperson

Share of members of the Board of Directors in the share capital of RIAR is 0 %. Their equity share in the ordinary nominal shares of RIAR is 0 %. There were no transactions related to acquisition and alienation of shares in the year under report. 45 Annual Report JSC “SSC RIAR” 2018 Governance 46

GRI Principles of corporate governance Information about the managing company and its Director General 102-16 102-25 Federal law No.208-FZ “On Joint Stock Companies” as of 26 December 1995 Joint Stock Company “Science and Innovations” Protection Full name and the Charter of JSC “SSC RIAR” set forth the shareholders' rights. (JSC “Science and Innovations”) of shareholders' rights A procedure of information exchange between RIAR and a shareholder and legitimate interests Head Office and Legal Address 26 Staromonetny per., Moscow, 119180 is governed by the applicable Russian Federation laws currently in force, the RIAR's Charter, industry- speci c and internal documents Primary State Registration Number 1117746621211 Individual Taxpayer Identification Number 7706760091 Effective governance The Board of Directors acts in good faith with a view to the best interests Industrial Enterprise Classification Code 770601001 on the part of the Board of shareholders and JSC “SSC RIAR” to ensure the fullest transparency Date of Registration 11August 2011 of Directors of its activities to the shareholders Share in the share capital 0% JSC “SSC RIAR” ensures timely disclosure of reliable information Equity share in ordinary 0% nominal shares Transparency about its nancial standing, economic performance, output including and objectivity ownership and governance structures to its shareholders and parties in information concerned. Such information is disclosed in full compliance with the law Pavel ZAITSEV Director General disclosure on state and trade secrets

Date of birth: 8 May 1981 JSC “SSC RIAR” acts in full compliance with the applicable laws, generally accepted standards of business ethics, ROSATOM's Code of Conduct, Academic background: higher, graduate from Moscow State Technological Rule of law and ethics University “STANKIN” (2005) majoring in technology of machine building Charter and its contractual commitments. Relations between the shareholders and the Board of Directors are based on mutual trust, respect, accountability and control Place of employment and positions held over the last W ve years: FSUE “Luch” Scienti c Production Association: from October 2014 until November 2017 — Director General; , JSC “Science and Innovations”: since November 2017 Plans for enhancing the corporate and to the present day — Director General. governance system There were no transactions related to acquisition and alienation of shares in the year under report Enhancement of the corporate governance of corporate governance and control system at JSC “SSC RIAR” is targeted as well as to submission of the best available GRI at achieving better efficiency, responsibility information regarding the matters 102-12 103-2 and liability, transparency in undertaken discussed at the general meeting CORPORATE GOVERNANCE activities and administration and it is of shareholders. In ongoing efforts primarily attributable to the protection to enhance the corporate governance SYSTEM of shareholders' rights and achieving equity system, JSC “SSC RIAR” continuously keeps of opportunities in exercising their rights track of all the changes in applicable laws For the corporate governance system, that is to say prevention of any actions and advanced standards hereto JSC “SSC RIAR” adheres to the policy Regulatory Framework aimed at affected redistribution of observing recognized national and international standards as well as l Charter of JSC “SSC RIAR” the corporate governance principles l of ROSATOM State Atomic Energy Corporation. Civil Code of the Russian Federation Observance of the principles and recommendations l Regulation for the RIAR's Board of Directors from the Corporate Governance Code l Federal law No.208-FZ “On Joint Stock Certain provisions of the Corporate with due consideration for the legal status 2018 — A Year of Science Companies” as of 26 December 1995 Governance Code are implemented by RIAR of ROSATOM stipulated with the applicable in the Rosatom State Corporation as it was recommended to be put in place laws and regulations of the Russian Federation Science is becoming neural network in our era. based on the letter of the Bank of Russia ensuring the unity of governance for all No. 06-52/2463 as of 10 April 2014 but the nuclear enterprisers. M. Gorky 47 Annual Report JSC “SSC RIAR” 2018 Governance 48 3.2.

Related-party transactions Every ordinary registered share confers Governance on the shareholder owing it the same scope The revised Charter of JSC “SSC RIAR” of rights secured. During the period was registered on the 3rd of February 2017 under report the authorized share capital in the Inter-Regional Inspectorate of RIAR increased by RUB 6 672 469 400 strengthening of the Federal Tax Service of the Russian (six billion six hundred seventy-two million Federation No. 7 for Ulyanovsk region as it four hundred sixty-nine thousand grants a waiver of Article XI of Federal Law four hundred). As of 31 December 2018 No. 208-FZ “On Joint Stock Companies” RIAR's authorized share capital amounted dated 26 December 1995 to RUB 19 358 261 875 (nineteen billion three (see Sub-section 3.11 of the Charter) hundred fifty-eight million two hundred KEY in respect of JSC “SSC RIAR”. sixty-one thousand eight hundred seventy- five) and was divided into 19 358 261 875 The list of transactions effected by RIAR ordinary registered shares with a par value PERFORMANCE and which are recognized as major of RUB 1 each. transactions, and other transactions subject to the approval procedures INDICATORS applicable to major transactions is given Allotment inAppendix 4 hereto. GRI A matrix of key performance indicators Bonus payments are e ected once a year of issued shares, % 103-3 5 (KPI) is an instrument for business upon the ful llment of key performance GRI 8 102-10 Changes in the size Allotment as of the date 16 administration. Its fundamental principle is indicators but within the limits of payroll and structure of ownership Shareholders 17 to decompose strategic goals of ROSATOM budget and with due consideration 31 December 31 December State Atomic Energy Corporation for the annual business performance of the 2017 2018 The RIAR's share capital comprises a nominal and managing company into nancial, enterprise. The amount of remuneration amount of its shares purchased by its Joint Stock Company economic, business performance payable and its relevance to the performance shareholders. As of 1 January 2018 the share “Nuclear Power 53.. 0235 49 0927 Generation Complex” indicators and others assigned are clear and transparent. capital amounted to RUB 12 685 792 475 to the top management for a year term. The established remuneration policy is (twelve billion six hundred eighty-five million The Russian Federation The key performance indicators governing based on the Regulation on Remuneration seven hundred ninety-two thousand legally represented by ROSATOM State 9.. 9510 18 0258 four hundred seventy-five) and was divided economic, business, environmental of Labor at JSC “SSC RIAR”. The amount Atomic Energy and social performance are formalized of remuneration depends on the position into 12685792475 ordinary registered shares Corporation with a par value of RUB 1 each. All the shares into the KPI matrix of JSC “SSC RIAR” held, actual level of KPI ful llment and hours ROSATOM State Atomic 37.. 0255 32 8815 were issued as uncertified ones. Energy Corporation Director and cascaded down or decompose worked. Each key performance indicator for lower level sta members in conformity is assigned with a speci c numeric value with the key goals and relevant to their in the KPI matrix with relevance to the total There were no dividends paid or attributed functional burden. The key performance amount of bonus payable. In its turn to the shares of JSC “SSC RIAR” during indicators are de ned and evaluated the total amount of bonus payment is based bln rubles the year under report and over the last +6672. for compliance during the strategy- on the annual amount of xed salaries five years is an increase focused meeting of RIAR's managers. and target amount of remuneration. of RIAR's share capital The SAP based personnel management Bonus payments are e ected upon ful lling system was adopted to improve the KPI threshold level. The KPI threshold e ectiveness of KPI setting and to evaluate levels are also speci ed in the appropriate their achievement. Performance matrix. When noticeable and signi cant High-priority areas of RIAR's business with the focus on ful lling the needs appraisal is one of the integral parts achievements are made and they are 2018 — A Year of Science of the Physics and Power Engineering Unit of the personnel remuneration policy. beyond the target level of performance, in the Rosatom State Corporation at ROSATOM were presented in the Annual An approved KPI data record is essential bonus payments can be e ected Reports for the previous years (for instance, for bonus payment. at a higher rate. Science is the century— old endeavour to bring http://www.niiar.ru/sites/default/ les/ together by means of systematic thought riar_annual_report_2015small_0.pdf). the perceptible phenomena of this world into as Chapter 4 “OUTPUTS ” provides an overview thorough-going an association as possible. of RIAR's business performance The performance management system has been for 2018. A. Einstein SUCCESSFULLY IMPLEMENTED at JSC “SSCRIAR” since 2009 49 Annual Report JSC “SSC RIAR” 2018 Governance 50

GRI The economic pillar of sustainable development requirements to the occupational and health 102-28 Performance evaluation Linking of key performance together with optimal employment of nite safety standards cannot be violated, events indicators and sustainable natural resources and adoption with severe consequences are not allowed). Strategic goals of ROSATOM State development of environmentally sound, energy- and- material Atomic Energy Corporation saving technologies is formed with due Sustainable development goals are incorpo- and managing company consideration for key performance indicators. Average rate of KPI ful llment rated into the key performance indicators Priority goes to safe business performance from year to year, % (KPI) of the supreme governing body and enhanced production e iciency of RIAR, 2016 and the top management. Sustainable Decomposition of goals expansion of international cooperation 2017 development of RIAR calls for both high and geographical expansion, social bene ts and their transformational change nancial and business performance and guarantees for its employees (See 2018 into key performance indicators and for high social and environmental Section 4.4 “Human Capital Management ” below). performance. RIAR's top management was The key performance indicators are de ned 97. 6 105. 9 given the key performance indicators by the relevant departments at ROSATOM 95. 8 Matrix maps targeted at higher energy performance, and the managing company and they embrace of key performance indicators further development of innovative products the entire range of RIAR's activities. They are as well as the key performance indicators targeted at enhancing nancial and production demonstrating the level of sta motivation performance of both RIAR and nuclear industry. towards higher performance with the use However, there are also non- nancial Assessment of di erent practices and methods, performance indicators (for instance, of KPI ful llment awareness of RIAR strategic goals and their contribution to the overall GRI performance. Strategy matrix with the key performance indicators 102-28 of JSC “SSC RIAR” Director for 2018 Achievement of high economic, Ful llment production and other indexes The key performance indicators are Key performance indicator against the target Strategic goal assigned to the managers at all the levels level, % in a mandatory manner Free adjusted cash flow 358

GRI Labor productivity 97 Increased share 102-16 Decomposition Key performance indicators re ect an area of responsibility on the global market and management sphere for each manager Adoption of research and technology advancement roadmap 100 Reduction Being focused KPI number is limited for the sta to focus Total costs 103 on the key priorities of work of production costs Integrated index 95 Balanced and optimal use of capital investment performance of investments Periodicity KPIs are set for a calendar year term Integrated index 103 Enhanced economic effectiveness of investment performance of investment activities Improved staff motivation and KPIs do not contradict each other but agree 104 Balance Engagement rate loyalty Timely licensing activities Accomplished in the field of nuclear energy use Meeting SMART KPIs are de nable, achievable, actual and measurable Key principles Key criteria LTIFR and nonoccurrence Accomplished of incidence of falling from elevations KPIs are targeted at the growth of nancial and business of appraisal performance Ambitiousness No events with safety relevance of 2 and higher performance and accidents at hazardous production facilities Accomplished RIAR's business environment according to the INES scale The actual level of KPI ful llment is con rmed by the information provided as statistical, accounting and management statements Relevance and can be selectively checked as part of audit procedures Fulfillment of government orders Accomplished and standing orders or internal control 51 Annual Report JSC “SSC RIAR” 2018 Governance 52

The environmental pillar of sustainable salary level achieved is higher compared GRI 102-16 development is also included in the KPI to the average salary level at other 206-1 CONTROL SYSTEM matrixes of top management. They have enterprisers and companies in our city), performance indicators attributable social bene ts and guarantees, engagement 60 An independent auditor and Department The internal control is one of the essential to the environmental impact. RIAR's Director of Contractors within the framework for Internal Control and Audit at JSC “SSC elements of managing risks attributable is fully in charge of environmental of existing cooperation and thus contributing RIAR” are in charge of nancial and business to observance of regulations imposed performance. The RIAR's top management to further development of the regions 2.2.2 performance supervision. Pursuant by applicable laws by the executive was entrusted with responsibility to ensure of their residence. to the resolution of the general meeting departments at JSC “SSC RIAR”. minimization of adverse environmental of RIAR's shareholders (Protocol No. 497 JSC “SSC RIAR” has Department for Internal impact. These duties are shared between dated 21 June 2018), Limited liability Company Control and Audit as a structural unit the Chief Engineer and Deputy Directors. Motivation “Financial and Accounting Consultants” was to be in charge of supervision and control. The Chief ecologist is fully liable for observing designated and approved as Independent It is guided in its activity by the Russian laws environmental laws and regulations of top management Auditor for statutory annual audit currently in force, international standards, (see Section 4.6 “Environmental safety ”). A motivation system of top management of JSC “SSC RIAR” for the time period industry-speci c and internal regulations. oriented towards productive e orts, The Department is directly subordinated The social pillar of sustainable development under report. improved business and economic to the Director of RIAR and undertakes its is described in more detail below performance is based on the Uni ed Information about independent inspections and auditing in conformity in Sections 4.5 “Stakeholders' Engagement ” Standard Remuneration System audit company with a single consolidated plan of control and 4.4 “Human Capital Management ”. activities as directed and ordered of ROSATOM. An annual bonus payment The Head O ice Myasnitskaya street 44/1, Such revenue-generating business indicators by the Director. for the top management depends and legal address Bldg. 2А B, Moscow, as “Free adjusted cash ow”, “Net pro t”, on the ful llment of key performance In 2018 RIAR put in place the IT-system 101990, Russia “Revenue from sale of innovative products” indicators. The amounts of bonuses paid “Internal control and Audit” to support which could bring tangible bene t for RIAR, the activities undertaken by the Department 2.5.6 shall be agreed by the managing company. Phone 8(495) 737-53-53 were achieved in the year under report. Bonus payments are served as a reward for Internal Control and Audit in order to make The amount of internal funds which could the processes of internal control more e ective. for the achievements. Key performance http://www.fbk.ru be used for investing is estimated following O icial website The sta members of the Department indicators provide a basis for making were trained in the use of this system the ful llment of the aforesaid indicators. decisions. They are based on the RIAR's E-mail [email protected] at the premises of Independent Non-Pro t The orders RIAR booked provides for a total performance and targeted at pursuing Organization “Corporate Academy of ROSATOM”. employment higher than 3 000 in the city, both ROSATOM's and its own strategic The information about undertaken control an adequate level of pay (the average goals. activities, their outcomes as well as There is no audit commission (Auditor) about audits were added in the IT-system. at JSC “SSC RIAR” Findings reports were drawn up. GRI A number of employees RIAR adheres to the principle of equal 405-2 Key objectives to be fulfilled by the Department 406-1 engaged in performance opportunities and is notable for a lack for Internal Control and Auditing gender-based discrimination: a rate of fixed assessment, from year to year salary ratio is one to one for men and women ● To assist the governing bodies to pursue fulfillment objectives in their activities through and with relevance to grades for all the categories of staff a timely identification and assessment of risks associated with the business processes by means of preliminary, routine and follow-up control. Grade 4 ● 128 124 To provide assurance regarding the compliance with the Russian laws currently in force, Grade 5 internal policy and applicable internal regulations. Grade 6 119 ● To enhance effectiveness of control systems with the overall aim to achieve financial targets, operational performance, to ensure efficient and careful use of resources and safeguard of assets. ● To ensure reliability and authenticity of generated reports and statements and their provision 2.1.4 in a timely manner. ● To conduct internal audits and review sessions to ensure reliability and effectiveness of risk management system, internal control system, corporate governance system with the focus 41 39 41 106. 097 on operational performance of RIAR. k RUB is the remuneration ● To conduct independent assessment of internal control adequacy and effectiveness. 12 9 11 amount of managing sta ● To put in place and enhance continuously effectiveness of internal control system and corporate governance system to ensure the compliance with the Russian laws currently in force, 2016 2017 2018 requirements of regulatory authorities and international standards. 53 Annual Report JSC “SSC RIAR” 2018 Governance 54

GRI 419-1 Number of audits with breakdown by year 122 ANTI-BRIBERY 2.2.3 2.2.4 2016 2017 2018 112 AND ANTI-CORRUPTION POLICY

GRI Enterprises and organizations subordinate (as of 31 December 2018) are in charge 102-16 83 205-1 to ROSATOM set up a unitary Industry- of organizing a relevant work, implementing speci c mechanism for combating and coordinating activities targeted 7 corruption and protecting assets as well as at countering corruption o ences. 47 they have in place well-de ned mechanisms of functional management, a chain 43 3.2.4 For additional information you can visit 39 of command and business data intelligence. the following websites of ROSATOM 20 16 18 The Deputy Director for Security State Atomic Energy Corporation and Asset Security O ice directed by him (http://www.rosatom.ru/partnership/the[ /) Audits undertaken by the Department Audits undertaken by external Auditing of procurement with a total number of sta of six people and JSC “SSC RIAR” (http://niiar.ru/) for Internal Control and Audit supervisory agencies procedures

E ectiveness Efficient Promotion of economic security of control activities control activities Identi cation of potential 18 and protection of assets during economic risks a ecting the business, nancial and economic corporate interests and its 2016 2017 2018 214* Investigations activities at RIAR business standing 4 against employees

93 Corrective actions 77 under control Elaboration 24 117 and implementation Promotion of business Major activities con delity Corrective of activities targeted undertaken by Assets at preventing and stopping 8 10 actions removed Security O ice from the control list corruption Number of disciplinary Number 70 measures taken of abnormal findings GRI Enhancing 102-17 * Including 40 abnormal findings attributable ×.25 of control activities 205-2 to control activities ROSATOM's communication 07-07 channel “hotline” 8-800-100-07-07 Plans For preventing corruption and fraud in nuclear industry @rosatom.ru The single consolidated plan of control ● Annual internal audit of making Integrated activities elaborated by special Department Annual Report followed by the auditors' for Internal Control under ROSATOM report; A major part of work against corruption of certain categories of o icials as well as in respect of its subordinate companies ● Auditing of financial, business and its prevention is to exercise control they carry out an expert appraisal provides for eight control activities and procurement operations as well as over management of procurement activities. of trustworthiness and business reputation st contract-related activities; for the I half of 2019: The sta members of the Assets Security for some sta members involved ● ● Two focused audits under the supervision Control over fulfillment of key O ice are entitled to check veracity in procurement to reveal a iliation of persons performance indicators defined of ROSATOM's Internal Control of submitted information declaring earned and entities as well as potential con icts Department; on an individual basis. income, property status and liabilities of interest because there are certain 55 Annual Report JSC “SSC RIAR” 2018 Governance 56

positions where the applicants have All the RIAR's divisions and departments RIAR's internal regulations, policies and procedures to provide details of income, assets perform analyses of business processes 3.2.4 and liabilities both in case of job appointment to identify critical control points for combating unlawful actions and corruption and substitution. All the potential vendors and describe potential corruption Unified industry-specific anticorruption policy of ROSATOM and contractors are informed about anti- offences. The results of analyses are used corruption policy in place and practices and its subordinate enterprisers and organizations as a basis for corruption risk mapping available with the help of procurement documentation and procurement terms and working out action plans targeted Unified industry-specific recommended practices for corruption risk assessment and conditions. at minimizing risks. Awareness-rising at ROSATOM's enterprisers and organizations activities are organized to ensure that All the relevant documents are available Anti-bribery and anticorruption policy of JSC “SSC RIAR” at RIAR's website in the Section entitled the employees are intolerant towards “Anticorruption e orts”. The same Section any form of illegal actions. RIAR also of the website has addresses and other takes targeted efforts to prevent, Regulation on establishing relationships with a party to a contract during details of contacts for a special purpose identify and document the cases procurement-related activities communication channel “hotline” designated of corrupt practices. RIAR's register of corruption risks for preventing corruption and fraud in nuclear industry so that any employee Reporting procedure for employees of JSC “SSC RIAR” to inform their employer GRI or an outsider who has knowledge 414-2 about the address facts for the purpose of inducement to make corruption, of fraud or the[ can communicate this of economic loss 419-1 review and verification of such complaints and their filing information even on anonymous basis. 18. 94 was prevented It is mandatory for all the RIAR's employees Procedure for coordination of actions between RIAR's employees mln RUB 2.5.8 and law-enforcement agencies for combating and preventing corruption to study regulatory and procedural documents addressing corruption and fraud. Code of professional ethics and official conduct for the RIAR's employees and other institutions fallen into the ROSATOM's governance system

2018 — A Year of Science Regulatory guide on record-keeping, storage and treatment of data storage The awareness in the Rosatom State Corporation devices with the information constituting trade secrets of JSC “SSC RIAR” of personnel But science can only be created by those who List of information classified as proprietary information of JSC “SSC RIAR” are thoroughly imbued with the aspiration toward truth and understanding… А. Einstein Standing order of the Experts' Board regarding protection of proprietary is 100 % information at JSC “SSC RIAR” Rules and regulations on security checks of information subject to non-disclosure and restricted access Plans (for internal use only) at JSC “SSC RIAR”

Pursuant to the policy of ROSATOM Office are challenged to make efforts *Procedure for handling information reported via communication channel “hotline” State Atomic Energy Corporation and JSC towards further enhancing measures “SSC RIAR” and based on the experience and methods for combating corruption, *Rules and regulations on proprietary information protection gained and identified special focus areas, safeguarding assets and trade secrets at JSC “SSC RIAR” (update) the staff members of the Asset Security at JSC “SSC RIAR” in 2019. *Standing order regarding establishment of ethics commission

*List of positions at JSC “SSC RIAR” under obligation to provide details of income, . (84-235)7-91-00 , [email protected] are the telephone assets and liabilities number and electronic mailbox to report *Plan of actions against corruption for 2018 until 2010 about corruption at JSC “SSC RIAR” *Worked out in the year under report 57 Annual Report JSC “SSC RIAR” 2018 Governance 58

GRI GRI 205-3 102-16 414-2 A number of audits targeted A number of sta members 206-1 PROCUREMENT MANAGEMENT 419-1 at preventing any losses including loss under disciplinary proceedings of assets 56 Procurement activities are undertaken as of 18 July 2011. ROSATOM approved Unified by RIAR at its own costs and expense Industry-Specific Procurement Standard 1831 13 1 722 and with the use of extra-budgetary funding under this Federal Law. This Procurement 2016 2.5.3 and they are governed pursuant Standard was adopted by RIAR as 2017 to the Federal Law No.223-FZ a regulatory document for procurement 9 “On Procurement of Goods, Works activities (see RIAR's official website 2018 7 and Services by Certain Legal Entities” http://niiar.ru/?q=postavshikam). 792 Fundamental principles of procurement activities

Number of checks aimed Loss prevented, Number of checks Transparency Information transparency in procurement activities 2.5.9 at verifying information mln RUB for professional about malpractices and corrupt a iliation activities reported via Competitiveness Equality, justice, non-discrimination and no groundless communication channel “hotline” 56. 90 restrictions on competition as to procurement participants 155 Adherence to the principle of law, collegial work and record Sense of purpose keeping with regard to decisions taken, free qualification for tendering by imposing immeasurable criteria for tenderers 95 Procurement processes are conducted so that to provide Timeliness the ordering customer with a product in a timely manner 3 3 18. 94 and to inform the suppliers about planned procurements in advance 67 0 836. The objective is to ensure purposeful and efficient application Efficiency of funds for purchasing (with due consideration for operational lifetime of purchased product) and implement a number of cost-cutting Number of conducted Number of contract Number of employee measures in favor of ordering customer procurement audits performance audits investigations Priority The absolute priority in conducting procurement activities 1 362 is to ensure safety during work undertaken by nuclear companies to the safety in the field of atomic energy use 534 1 012 883 To promote openness and transparency that makes it possible to engage a maximum 469 32 of procurement process, RIAR makes number of bidders. the information about procurement available Procurements with the participation of small 359 20 24 on the official websites on the Internet and medium-sized business entities are i.e. on the government website relevant made available on specially certified e-trade to the unified procurement information platform JSC Unified Electronic Trading system (www.zakupki.gov.ru ) Platform. and on the dedicated website for placing purchase orders for goods, work Number of case reports handed over Number of criminal proceedings instituted and services for the ROSATOM's needs to the law-enforcement agencies as a result of investigations conducted ().http://zakupki.rosatom.ru/ 2018 — A Year of Science 6 The information regarding competitive in the Rosatom State Corporation 4 procurement procedures as well as 0 0 regarding their outcomes is posted People will reap the rewards of science promises. 2 2 by RIAR at the electronic market place dedicated and authorized by the ROSATOM D. Mendeleev 59 Annual Report JSC “SSC RIAR” 2018 Governance 60

6 2.5.1 is a share of competitive procurements PROPERTY 2.5.2 made by electronic means 2.5.5 100 % MANAGEMENT is a share of contracts made with the small 86. 44 % and medium-sized business entities Key goals for property management GRI Enhanced functioning of property complexes in cooperation 204-1 is a share of expenditures incurred in procuring goods, work with the divisions and departments concerned and services under the contracts entered with the supplies 195%. geographically located in the administrative district of RIAR Grown income and reduced expenses of RIAR because of efficient management and cost-efficient use of premises (estate property) contracts entered according mln RUB to the results of procurement is the total value Enhanced competitiveness of RIAR, improved economic 415 process 37909. of these Contracts and financial performance via efficient management of property including non-core assets

Purchased materials Balanced economy of property complexes including their mass and volume The fundamental principles of procurement activities to achieve their balanced employment undertaken by JSC “SSC RIAR” are available on its Product description Quantity, o icial website ()http://niiar.ru/?q=postavshikam Combined approaches and comprehensive strategies to enhance functioning volume of non-core property complexes, non-core estate property Filter elements, relative units 72 970 and shareholders' equity of RIAR, subsidiaries and associated companies Industrial gases, m3 4 639. 63 68. 909 mln RUB is the amount saved as a result Paper, sheets 5 735 900 As of December 31, 2018 In 2018 the lease of two land plots was of procurements made JSC “SSC RIAR” had the following terminated in connection with their Chemical agents, t 124,. 25 in the actual use: transfer to municipal ownership. Starting materials, g 4 950. 8 ● 104 land plots with a total area RIAR received RUB 53 249 295.00 Ion exchange resins, m3 32. of 231.25 hectares belonged to RIAR (Chinese-Russian Joint Venture “Beijing GRI 6. 64 % CIAE- RIAR Radioisotope Technology 102-45 of the planned purchase price on a property right; Rolled steel, t 55. 208 Co.Ltd”) and RUB 6 153 235.50 (Belorussian- ● 10 land plots with a total area Pipes, t 13. 834 Russian Closed Joint Stock Company of 2 369.13 hectares were on use “Isotope technologies”) as a share Protective outfit, pcs. 335 487 Information regarding procurement activities is on a leasehold basis and continuous available on the following websites: www.zakupki.gov.ru of profit from the companies where (termless) use. Work-wear, pcs. 127 957 and www.zakupki.rosatom.ru it has the coownership share. Diesel fuel, t 139. 818 Information regarding procurement activities 22 239 and their outcomes is available on electronic trading Oils and greases, kg platforms LLC “Fabrikant”, JSC Uni ed Electronic are earnings is the revenue Petrol, liter 47 328. 12 Trading Platform and B2B-Center 59. 4 from joint ventures 60. 7 from the leasing mln RUB mln RUB property is profit land plots Plans 51. on sales of chattel 114 mln RUB ● To increase the percentage of timely of which at least 15 % are the contractors competitive bidding procedures up to 100 %. representing small- and medium-size ● To keep small- and medium-sized business entities. real estate objects belong business entities in procurement ● To increase the percentage of open 260038..ha705 at the level no less than 18 % of the total competitive bidding by reducing is the land size to RIAR under the property right annual value of contracts entered single-source procurement share. (as of 31 December 2018) 61 62

4

We fruitfully work OUTPUTS 63 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 64 4.1.

by more than one and half times (as compared to 2015). Financial Capital To consolidate the progress achieved, a development plan for the period up to 2022 was elaborated and approved at the industry-speci c level. Pro t activity is one of the key indicators. To achieve FINANCIAL PERFORMANCE the targeted purposes and accepted program parameters, plans were made to increase revenue GRI JSC “SSC RIAR” key performance indicators (earnings from R&D, sales of radionuclide products, 102-7 production of BN-800 fuel assemblies; the SM core 8 Values per years 9 modernization project, annual nancing of expenditures Indicator 2018 for maintenance of the experimental facilities 2017 and nuclear heritage sites using special-purpose 1.7.3 Target Actual reserve funds of the State Corporation ROSATOM); 2.4.3 Igor KNYAZKIN 2.5.10 Adjusted free cash flow, bln rubles 0748. 0. 345 0.805 to reduce the volume of annual program for purchasing 3.1.8 GRI standard goods, works and services; to control 3.2.1 Implementation of the roadmap for scientific development – 100 100 102-20 Deputy Director working capital (optimization of reserves and stocks) concept, % 6 for Economics and Finance and non-core assets. Labor efficiency, mln rubles/person a year 1491. 1663. 1. 613 JSC "SSC RIAR" applies best international practices Full costs, bln rubles 3836. 3831. 3,. 728 8 The reporting year was marked by the successful of customer relationship as regards payments Integrated indicator for investment activity 100 100 103 completion of the three-year program of nancial accounting and document management. In 2018, efficiency, % recovery which core indicators were performed RIAR prepared and adopted a process of legally 2.5.6 Capital investment integrated indicator, % – 100 95 2.3.1 signi cant electronic document management 2.5.7 in full. Special note should be taken of the following: Engagement rate, % 85 80 83 in which e-documents had the same legal force 1. Starting the Program with losses (–702 mln rubles), Supervisor appraisal 12. 10. 12. we managed to reach the breakeven point in the past as hard copies. The advantages of the process are Timely receipt of licenses for performance of work – year ahead of schedule and, reversing the situation increased speed of paperwork, prompt transfer No faults in the current decade, gained the net pro t for a second of documents to the contractors, reduced tax risks in the field of atomic energy use consecutive year (more than 100 mln rubles). and maximized use of the automated documentation LTIFR and number of injuries resulted from a fall from height 0 03. (retaining 0 2. The adjusted free cash ow was increased system capabilities. At present, the system operation at production facilities, including Contractors of the base level) on own by 1.0 bln rubles (from –0.2 bln rubles is being tested between organizations of the ROSATOM Events rated at level 2 and higher on the INES scale 0 No events to 0.8 bln rubles). State Corporation. Our traditional customers are going to be involved into the electronic document Performance of state-level tasks, % 100 100 100 3. The debt burden on the enterprise was removed: management system in the coming years. investment credits were repaid in full, loan was not contracted since June 2015, receivables and payables Revenues for 2019 are con rmed one hundred per cent. Contracting as of February is more than were balanced. GRI Structure of revenues from R&D by years, %: 4. By ensuring the growth of revenues and optimizing eighty ve per cent and we are very optimistic 201-4 the full costs, the average wage increased about meeting the goals set for the year 2019. a) including FTPs; b) without FTPs; c) sales of radionuclide products GRI 3.2.2 102-7 Key economic indicators by years, mln rubles 2015 30 70 Indicator 2015 2016 2017 2018 2019 a 3.1.1 2018 99 Revenues from sale of goods, products, work and services 4 119. 1 51074. 4 237. 9 50172. 51745*. 1 Self-cost of sold goods, products, work and services 4 185. 4 4 055. 6 3 370. 2 3 945. 2 4 361. 2 2015 Gross profit / loss –66. 3 1 051. 9 867. 7 10720. 813. 3 50 50 b Administrative costs (data in brackets are share 805. 6 807. 4 781. 9 829. 3 961. 6 2018 31 69 of administrative costs in revenue, %) (19,6) (15. 8) (18. 5) (16. 5) (18. 6) Sales profit / loss –884. 6 110. 7 –70. 5 47. 6 –340. 4 EBITDA –554. 9 241. 1 369. 7 402. 2 425. 3 2015 84 16 Net Operating Profit After Tax (NOPAT) c –335. 6 23. 101. 2 101. 7 92. 8 2018 79 21 Net profit / loss –702. 1 –90. 3 69. 9 110. 7 50. 0 Reserves 1 715. 1 742. 2 722. 8 950. 9 10916. FTPs Contracts Export Sales in Russia *.Including nancing of experimental facilities 65 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 66

Increase in JSC “SSC RIAR” revenues resulted of the compensating measures, GRI Dynamics of revenues from services by years, mln rubles 201-4 3.2.2 from the bigger supplies of radionuclide additional revenues were earned including variations of the 2018 indicators vs. 2017 indicators 3.2.3 products and growth in electric energy from production and supply of radionuclide 3.22.1 3.18.9 Total revenue generation at the VK-50 reactor facility. products, including Molybdenum-99 (+ 160 mln +779 Manufacture of fuel assemblies Volume of the research and development rubles) and Californium-252 (+332 mln rubles). was dictated by the finance under From 2015 to 2018, volumes of isotope 5 107 5 017 5 175* 619 the Federal Target Program “New-generation products production and sale increased 4 119 4 238 Nuclear Energy Technologies for the Period by 1 320 mln rubles, including increase 2010-2015and up to 2020”. The proportion in export by 984 mln rubles (from 16 to 32 mln of federal budget in the overall volume dollars (+ 100 %), which included increase 264 of funds fell from 15 % (2015) to 0.2 % (2018). in production of medical-purpose radiochemical However, the Institute managed Molybdenum-99 by 7 mln dollars (+ 233 %)), 151 0 0 to compensate for this decrease. As a result which made 48 % from the total volume (27 % in 2015). 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

R&D without FTP FTPs Structure of revenues and key contractors, % –9 –126 3.18.9 619 2376 3.34.2 49. 01. bln rub bln rub Contractors 1922 1748 1796 Revenues 97 3 by own efforts 1 442 Isotopes 48 262 80 PJSC “IDGC of Volga” 21 12 20 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 R&D 36 Molybdenum-99 production Production SSC RIAR +160 of other isotopes +698 Energy services 20 JSC “Afrikantov OKBM” 617 1 813 and others 16 475 567 1341 1353 457 1 115 231 879 Dynamics of revenues from services over the year, mln rubles 5 017 4 238 –135 +56 +160 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 +698

2017 Energy services Other services R&D Other work Molybdenum-99 Other isotopes 2018 +102 –46 and services production production 652 256 612 550 476 186 428 173 The analysis of JSC “SSC RIAR” nancial liabilities. In addition, since RIAR refrained and economic activities showed major from attracting external debt nancing, 127 improvements in the paying capacity its dependence on external borrowings 96 as at 31 December 2018. It was because continued reducing and nancial stability growth rates of the highly liquid assets in of the enterprise improved. Increase 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 the total balance (monetary resources in the turnover of current assets happened and debts receivable) outstripped those because growth of the total revenues *.Including nancing of experimental facilities of the debt nance and short-term outpaced that of current assets. 67 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 68

Solvency, liquidity and nancial stability indicators, % Values per years Recommended CAPITAL Indicators 2016 2017 2018 value Financial stability MANAGEMENT Leverage (capitalization) ratio 13 15 17 Less than 100 Financial stability of JSC “SSC RIAR” the Institute and investment of free cash Ratio of borrowed and own funds 31 14 16 Less than 100 owes much to the economic e ectiveness within loan agreements concluded between Equity-assets ratio 88 87 86 40–80 management which basis is the system JSC “SSC RIAR” and JSC “ATOMENERGOPROM” of budget management of nancial (pool leader). These agreements allow Financial stability index 90 88 60–90 91 and economic activities. The system is the funds of the Institute to be placed both Long-term borrowing ratio 4 4 4 – regulated with standards of integrated on the long run and with a return on the next Liquidity and solvency management system and is based working day a er the transfer to the pool on the collection, systematization, treatment leader within cash pooling operations Absolute liquidity ratio 62 102 20–50 143 and analysis of the economic information (working capital nancing and automatic Quick ratio 165 99 144 70–80 in the context of construction projects return). The work with the available cash Quick ratio 250 170 205 100–200 and pro t and loss statements of the RIAR's assets allowed us to get additional income subdivisions. The budget system takes amounting to 52 mln rubles upon placing Turnover of current assets 849 762 697 200–250 account of strategic goals and sets target the funds in the pool leader's accounts. Current assets turnover values of economic indicators by means Positive dynamics of the JSC “SSC RIAR” Current assets turnover ratio 113 109 117 – of periodic plan-fact analyses, provides performance indicators in the reporting latest target deviation information that is period was a consequence of implemented needed by RIAR's Management for making measures aimed at enhancing the e iciency Income distribution by years, mln rubles managerial decisions. E ectiveness of activities in accordance with the approved 3.18.2 of the nancial management is ensured nancial recovery program for 2016–2018. Indicator 2015 2016 2017 2018 2019 by the JSC “SSC RIAR” nancial policy, use Financial and economic targets of the recovery Income (sold products, work, services) 4 119 5 107 4 238 5 017 5 175* of industry–speci c and internal regulations program were met in full and the program Including intra-group turnovers 1 239 2 015 1 312 1 457 1 458 and nancial risk management standards. was successfully completed. In the reporting This allows arranging a system year, a development program for 2018– Distribution by geographical segments: of relationships with banks which provide 2022 was elaborated and approved. Due Russian Federation 2 465 2 882 2 076 2 537 2 776 optimization of the bank accounts to the fact that the target revenue might CIS 34 38 50 67 19 structure, minimizing bank costs, planning not be met in the reporting period, and optimizing cash ows for the e icient additional measures were developed Non-CIS countries 1 620 2 187 2 112 2 413 2 380 allocation of the nancial resources inside which result was an increase in revenue Distribution by areas of business: on international market ($ 38.6 mln) Manufacture of the BN-800 FAs 264 619 0 0 151 and a signi cant reduction in costs as GRI Dynamics of assets R&D 2 061 2 010 1 943 1 808 2 396 102-10 compared with the planned values. We by years, mln rubles managed to improve operating e iciency Isotope production 1 110 1 816 1 572 2 430 1 920 3.1.2 and to get positive results for the second Energy services 428 476 550 652 612 18 334 consecutive year. Among the work carried 2018 Other services 256 186 173 127 96 19 358 out to reduce the costs, we may highlight optimized schedules of minor and major *.Including nancing of experimental facilities repairs, reduced contingencies for radioactive 15 850 2017 waste management through recalculated 12 686 cost of processing stages, limited rise in prices for purchased raw materials 3.24.1 25. — International — Cost reduction and products, savings from tendering bln rubles 249 15 421 procedures, performance of work without revenue mln rubles 2016 12 686 involvement of third parties, optimized working capital in part of reserves. — Net profit — Export revenues Chartered capital Net assets mln111 rubles 49 % 69 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 70

plant. The main task of these investment Plans Investment volume by years, 2.3.1 activities was provision of a high level of reliability of the property bln rubles Forecast indicators for the next year breakeven (increase in revenue, lowering complex. Compensation was made show a positive momentum. The plan is of costs). Achievement of planned outcomes 38. of the “NIIAR — Generatsiya” costs since 2015. to implement nancial recovery measures will allow the enterprise to close 2019 33. approved for 2019–2022 so as to improve with the net pro t of 50 mln rubles. JSC “SSC RIAR” completed key stages 03. the performance e iciency to achieve of the investment activities aimed at creating conditions necessary for service and combat actions of Military Unit No. 3706 1,0 protecting JSC “SSC RIAR”. Acceptance 21. procedures and commissioning 19. 5 of the administrative and warehouse 03. complex are expected in Q2 2019 35. 12. INVESTMENT MANAGEMENT 07. 2.4.1 2.4.2 23. 3.2.4 Improvements in the efficiency of investment activities 06. 3.6.1 17. 3.15.1 Goals Fulfillment of industry-specific orders and off-industry obligations — capital investments 12. Ensuring the accomplishment of the strategic long-term objectives 1,9 in construction, retrofit 06. of the Institute within the established deadlines bln rubles and modernization 2014 2015 2016 2017 2018 Maintaining the current market standing and expansion into new markets for the mid- and long-term perspective Details about MBIR, PRC and BOR-60 External sources Consolidated investment Tasks Servicing and updating RIAR's infrastructure with regard to radiation, projects can be found in sub-section resource of ROSATOM environmental, industrial safety and scientific infrastructure “Innovative Activity ” from Section 4.3. Total volume State Corporation

Investment activities of the Institute are The SM Core Modernization project is being Amount of JSC “SSC RIAR” performed in accordance with the uniform implemented as scheduled. The following 2.4.4 investments with a breakdown Projects on experimental facilities safety, re safety industry-speci c policy of the State work was completed within the established 3.18.2 Corporation ROSATOM. It aims into projects and maintenance of information technology deadlines: design and operational and production assets at maintaining and developing production documentation was developed including 3 % capacity and research potential documents to license the retro tted facility; 6 % Maintenance of the district-heating plant of the enterprise. Investment management a pilot batch of improved fuel elements 3 % operation is provided through management and burnable poison rods was manufactured, 10 % of investment projects at all stages of their it would be tested in 2019. Under the plans BOR-60 retrofitting lifetime. Investment activities involve project for 2019 are equipment deliveries, replacement SM core modernization planning, organization, motivation, control of the reactor core, changes in the conditions 5 % and adjustment and aim at achieving the results Investment activities at the expense of the reactor operating license in view of special reserve fund from investment tasks with constraints of the improved core. 7 % in time, budget and risk levels. of ROSATOM State Corporation We successfully completed a series Other projects/investment activities In the reporting period, the full cost of investment activities titled 43 % of the MBIR construction project, including “Production Assets”, “FP. Required Fire 23 % PRC construction the milestone schedule of the upper level, Protection Activities”, “Formation MBIR construction was approved with commissioning in 2025; of the IT-Structure” which tasks were a contract for the reactor construction provision of the up-to-date equipment designing up to the nal development was to enhance production and experimental signed, in which completion of the design capability and insurance of the nuclear work is scheduled for June 2019 facilities safety in accordance with the actual Plans with the subsequent submission federal rules and regulations. of the design documentation to the State To improve e iciency of the investment als to better ROSATOM's processes of JSC “SSC RIAR” and “NIIAR-Generatsiya” Expert Appraisal Board. The Institute and project activities and also investment activity management Company agreed upon nancing continued the work to construct quality of the investment project manage- and to change existing regulations govern- conditions of the investment activities the poly-functional radiochemical complex ment, we plan to submit ing this activity. to support operation of the district-heating (PRC) and to upgrade reactor BOR-60. to JSC “Science & Innovations” our propos- 71 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 72 4.2.

the necessary data for improving their operational Production characteristics. The results were entered into the zirconium alloys database and were used for their licensing as materials for fuel assemblies of foreign nuclear power plants. In the framework capital of the international project “Zero Level of Nuclear Fuel Failure”, studies were conducted, as a result 3.20.2 of which recommendations were made for improving 3.21.1 the design of fuel assemblies aimed at increasing its OUTPUT reliability. In the “Proryv” design area, new data have been obtained on the behavior of nitride fuel, corrosion state, and mechanical properties Physics and engineering of cladding materials, which will be used to improve Alexey IZHUTOV fast reactor fuel rods and justify safety of continuing of nuclear reactors, GRI testing of experimental fuel assemblies with nitride 102-20 Deputy Director, fuel. irradiation technology Science&Research 1.3.2 Work on the Proryv project was also carried and safety of nuclear reactors out in terms of improving the pyrochemical and hydrometallurgical parts of the scheme 7 l for processing spent mixed uranium-plutonium 12 RIAR operate six reactors and two critical development of methods for calculating In the reporting year, the RIAR's research and 17 assemblies of reactors MIR and SM. nitride fuel and handling high-level waste. thermohydraulic and neutron-physical production activities were carried out as part of the In 2018, the following activities were characteristics to support operation, Experimental results on so chlorination on model nancial rehabilitation program and the further performed: safety analysis of research nuclear improvement of the unique experimental base. samples with ssion products and minor actinides, l capsule and loop tests of fuel rods facilities and their experimental anodic polarization of uranium and fuel re ning; devices; The RIAR's nuclear research installations were quantitative characteristics of the processes are dummies, other components l operated safely, in accordance with the planned determined. The development of pyrochemical of the nuclear reactor cores with various development and manufacture types of coolant under conditions indicators. The temporal reactor e iciency coe icient reprocessing apparatus is continued. of sensors for in-reactor monitoring was in the range of 60–80% of the calendar time. simulating regular operation and of temperature, pressure, neutron ux, According to the schedule, activities were performed In 2018, in accordance with contractual obligations, deviation from normal conditions; linear displacements for equipping related to the refurbishment of the SM reactor core, we produced and delivered radioisotope products l in-reactor studies of the e ect experimental devices; among which the manufacturing of main core and ionizing sources to domestic and foreign of neutron ux and reactor radiation l development and manufacture components should be noted. There were continued customers. The main contribution to the sale on the properties of fuel, structural of automated systems for collecting ampoule and loop tests of prototypes of fuel rods of radionuclide products was made by the sale and absorbing materials of nuclear and processing experimental data and other core components of nuclear reactors of molybdenum-99, strontium-89, iodine-131 installations for various purposes; when conducting in-reactor research; and ionizing sources and irradiated materials 3.22.1 in-reactor studies of the mechanical with various types of coolant under conditions l design and experimental studies to characteristics of materials simulating normal operation and deviations based on selenium-75, iridium-192, cobalt-60, justify the safe handling of unirradiated for nuclear reactors; from normal conditions. New techniques were californium-252. An important result of the year was and irradiated nuclear materials; an increase in sales of medical preparations based l development, creation of irradiation created, irradiation rigs and loop installations were l design and experimental studies on iodine-125 by 1.6 times, iodine-131 by 1.4 times, technologies and the production prepared to test in the MIR reactor so-called in accordance with the work program lutetium-177 by 3 times. Molybdenum-99 shipments of transplutonium elements, various “tolerant” fuel resistant to severe accidents. for the e icient use of fuel in the reactor increased up 589 TBq. radioisotopes of medical and industrial The design of irradiation rig was developed core; and all the necessary arrangements were done purposes, irradiation of materials l obtaining experimental data on physics, to accumulate chromium-51 in the SM reactor in order to change their physical thermophysics, thermohydraulics, in order to produce a neutrino source. In early properties; release and distribution of ssion l development of methods for providing, July 2019, the source will be delivered to the Baksan 2018 — A Year of Science products necessary for veri cation maintaining, monitoring indicators neutrino observatory for the BEST sterile neutrino of design programs, developments in the Rosatom State Corporation of water chemistry, decontamination search experiment. and proposals for existing of equipment of research and power and innovative reactors, The Reactor Materials Testing Complex continued Labor and Science: there is nothing more reactors and experimental research justi cation of safety examinations of VVER-1000 full-scale spent fuel important on the Earth. in these areas; M. Gorky of existing reactors; assemblies of various modi cations to obtain l 73 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 74

l study of the water chemistry transients processes, water-chemical l storage pool for spent nuclear fuel; reactors and justify the safety of continuing characteristics, development and gas modes, characteristics testing of experimental fuel assemblies l equipment for mechanical testing, study of maintenance methods and monitoring and methods of radiation monitoring. with nitride fuel in the BN-600 reactor indicators of water chemistry; of microstructure, crystalline structure, to higher parameters. Complex reactor experiments were elemental and isotopic composition, l study of the neutron-physical simulated at critical stands to ensure their corrosion tests, measurements In 2018, results were obtained on the topic and thermohydraulic characteristics safety; the neutron-physical characteristics of thermophysical characteristics of propulsion nuclear power plants 3.4.5 of cores of boiling reactors with natural of the refurbished SM reactor core were that become the scienti c basis coolant circulation, study studied. of materials both in the initial state and a er reactor tests. for substantiating performance of the performance and resource and forecasting the lifetime characteristics resistance of materials and various Please, see the details on production Based on the results obtained in 2018, of fuel assemblies of promising nuclear and distribution of energy in the sub-section equipment for nuclear power plants, a conclusion was made about the e ect power plants for icebreakers and oating “Environmental protection ”, Section 4.6 of design changes on the performance nuclear low-power plants. of the VVER-1000 fuel assemblies Reactor performance in 2018 and measures were identi ed for their Improving the quality of research is 1.5.1 inextricably linked to the development Parameter SM RBT-6 MIR RBT -10/2 BOR -60 VK- 50 further improvement. Modern equipment used to study mechanical properties, and implementation of more advanced Max power, MW 90 6 39 10 50 200 microstructure and elemental composition material testing methods. In 2018, as part Time factor, relative units: allowed for a series of research of the “Proryv” project implementation regarding the substantiation planned 064. 071. 060. 073. 064. 080. to determine the relationship between the structural phase state, oxidation, of the performence of fuel rods with mixed actual 067. 071. 061. 073. 059. 076. hydrogenation, changes in the strength nitride uranium-plutonium fuel, a method Reactor operation time, days: and ductility characteristics and operating was developed and introduced to tests irradiated tubular samples with internal planned 233 259 219 267 234 293 conditions of the FA skeleton components made from promising zirconium alloys. pressure of hard plastic ller. This method 245 259 222 267 214 283 actual The results are included in the database most adequately meet real cladding stress Shutdowns* 24 35 17 38 9 2 on the zirconium alloys properties and used conditions, allows getting a more accurate assessment of plasticity characteristics *.No unscheduled shutdowns for their licensing as materials for fuel assemblies of foreign nuclear power plants of cladding material and can be used in accordance with the action plan as an alternative method for studying for the quali cation of fuel of Russian design the mechanical properties of spent fuel RIAR's site has almost all types of reactors operated in the USA for 2015–2019. rods claddings. In the framework of the international project in the world thus allowing for unique research 3.20.1 3.20.2 “Zero Level of Nuclear Fuel Failure”, studies were conducted, the results of which gave 2018 — A Year of Science recommendations on improving the fuel in the Rosatom State Corporation assemblies design to increase their reliability. In the “Proryv” project new data have been Science is a shared creative work and cannot be obtained on the behavior of nitride fuel, anything else; it is like a monumental building, 3.14.1 Reactor materials science, 3.15.3 corrosion state and mechanical properties which needs to be built for centuries, of cladding materials, which will be used and where everyone should bring methods to test materials to improve fuel rods of fast neutron a stone... and nuclear components H. Poincaré

The innovative development of the nuclear l automated stands for non-destructive industry provides for the improvement examinations of FAs, fuel rods RIAR has the largest materials science complex allowing con- of existing and development of promising and other core components; ducting research on materials and items from miniature submi- types of nuclear reactors, which require l stand for thermal tests of full-size croscopic irradiated samples to fuel assemblies after their oper- the creation and justi cation of the radiation irradiated fuel rods; resistance of new materials. ation in any of the existing nuclear reactors. The availability of To ensure the safety of research, l remote equipment for the re-fabrication equipment and qualified personnel provides the conditions RIAR has: of irradiated fuel rods to conduct a variety of experiments in research l for successful work on industry-level and federal-level projects hot cells and heavy-shielded boxes; reactors; 75 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 76

GRI Sales of products (services), mln RUB 1.2.10 Reprocessing of spent nuclear fuel 102-7 3.20.2 201-4 and radwaste conditioning 1 260.9 3.2.2 Research and development work with accelerated electrons, absorbed 89.0 10.2 587.9 40.9491.6 41.3 on the “Proryv” project was carried doses are established, at which out in three areas: improving the the destruction of the target phases 1 167.1 pyrochemical and hydrometallurgical parts and their complete decomposition occurs. of the scheme for reprocessing spent No signi cant increase in the leaching rate 89.012.2 579.0 66.4371.1 49.4 mixed nitride uranium-plutonium fuel for all studied cations from radiation- and handling high-level waste. damaged samples was found, the duration 1 % 1 % of the geological storage of the matrix 1. The experiments were carried out: on so 31 % 34 % 8 % 25 % chlorination on model samples with ssion to complete decomposition of the main 1 901.6 phases xing carbon-14 was assessed. products and minor actinides; anodic 587.5 16.0 640.3155.7 482.8 19.3

Research Reactors Complex Reactors Research polarization of uranium and electrical Under the Contract with Marubeni Utilities re ning of fuel; ltration of chloride Services (Japan), there was done melts with precipitation; the rationale metallization of americium from dioxide for transporting molten salt through in a melt of chloride and lithium oxide, an unheated pipeline; metallization of uranium and samples of alloys of americium 636.1 dioxide and MOX pellets by reduction with zirconium, aluminum and iron were 9.2 2.0 352.2 53.1 217.7 1.9 of lithium generated on a solid cathode made to obtain hydride compositions. in a eutectic melt of chloride and lithium The work results will improve the e iciency oxide. The composition of the reduction of americium burning in fast reactors 581.2 products, the ratio of metal to dioxide, and reduce the environmental impact 9.2 384.5 3.8 179.8 3.9 and the quantitative characteristics of nuclear energy. of the secondary reduction process are 2 % determined. The development An important aspect of reducing 1% 1% the negative impact of molybdenum-99 of pyrochemical redistribution apparatuses 598.1 68 % 7 % 21 % continued: metallization, transportation production is the regeneration of irradiated targets. As a result of experiments, it was of molten salt media, so chlorination, Reactor Materials Testing Complex 6.5 4.0 404.8 44.1 125.6 13.1 deposition of oxides, vacuum sublimation, found that the uranium-containing ltration, inert gas preparation precipitates can be completely dissolved, and puri cation systems; the extraction of uranium from the obtained solutions was experimentally veri ed, the documentation has been adjusted 189. 0 for the electrolyzer for metallization which made it possible to show and the radiation-protective chamber the possibility of uranium recycling 38. 97.401 5 46.13 3 . . with an inert atmosphere. and further use to manufacture new targets in the production of molybdenum-99. 2. The study of the microwave denitration 188. 5 Collaboration was developed operation was continued: experiments 38. 106.63 5 69.29 0 . . were carried out to re ne the production with JSC Techsnabexport and Japanese of oxide fuel of a given composition, organizations for the handling of molten fuel 1 % the optimal conditions for microwave and fuel debris. Based on the analysis denitration of nitrate solutions of actinides of the Fukushima-Daiichi NPP accident, 209. 7 39 % 53 % 7 % a model was proposed with the inclusion were determined, the physicochemical 81.139 4 113 0. . 14. properties of the obtained powders were of curium to obtain simulators of fuel debris. determined. This model should be experimentally con rmed and the contribution of sea water 3. The radiation resistance of magnesium- and radiation exposure to fuel materials Planned for 2018 ROSATOM Other companies phosphate ceramics for the immobilization should be evaluated. of carbon-14 was studied. As a result Division for radiochemical technologies Actual 2018 Federal target programs International contracts of irradiation of matrix samples Planned for 2019 Nuclear industry companies Household services 77 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 78

Radionuclides production High-purity californium-252 3.22.1 3.34.2 proceeds with the minimal process losses of californium-252 The main contribution to the proceeds and ionizing sources and irradiated materials ×2 is the result of express accumulation from the sale of radionuclide products based on selenium-75, iridium-192, cobalt-60, sales technology developed by RIAR in 2018 was made by sales of molybdenum-99, californium-252. strontium-89, iodine-131 preparations In 2018, when implementing the technology of a unique chromium-51source intended of californium-252 express accumulation for scienti c research of the fundamental Sales of radioisotope products in 2018, mln RUB from starting nuclides, an advanced properties of matter. In 2018, under technology for the radiochemical the contract with the Institute for Nuclear Tungsten-188 Molybdenum-99 processing of irradiated material was used. Research of the Russian Academy 29. 6 (1 %) 616. 6 (25 %) In 2018, there remained a stable demand of Sciences, the possibility of creating Cobalt-60 in strontium-89, gadolinium-153, a chromium-51-based neutrino source Gadolinium-153 145. 0 (6 %) tungsten-188. The volume of sales with the necessary activity at RIAR was 28. 2 (1 %) of iodine-125, iodine-131 and lutetium-177 justi ed. Calculations and experimental Strontium-89 Iodine-125 in physical terms increased as compared studies were performed. The design 115. 4 (5 %) 27. 9 (1 %) to 2017 gures. In 2018, commercial batches of the device is developed and justi ed. of medical-grade cesium-131 for IsoRay (USA) As part of the safety justi cation, Iodine-131 were produced on a regular basis the e ects of reactivity upon installation Californium-252 67. 7 (3 %) and weekly shipped; in total, more of the irradiation device in the SM reactor 581. 8 (24 %) than 40.7 TBq was delivered. central neutron trap and the parameters Nickel-63 of the cooling mode of the chromium disks 21. 7 (1 %) Initial exploratory work has been carried were determined. The temperature elds out to justify the possibility of application Selenium-75 and dose characteristics of the gamma of vanadium selenide as a material of the radiation eld of a chromium-51-based 299. 6 (12 %) active part of selenium-75sources. Other neutrino source with an activity of more Iridium-192 Currently, such sealed sources are produced than 111PBq were calculated. The completion 92. 9 (4 %) 403. 6 (17 %) in RIAR using elemental selenium. of the manufacturing and supply The use of vanadium selenide of the source to the Baksan neutrino as the material of the active part would Molybdenum-99 was supplied to the CNEN of contractual obligations to supply sources observatory is planned in early July 2019. improve the consumer qualities (Brazil), Karpov Institute of Physical to foreign customers: Source Radiographics of the sources and signi cantly increase Chemistry (Russia), Laboratorios Bacon (Australia) and Areva/Framatome (France). the environmental safety of their A neutrino is a neutral fundamental particle and Technonuclear (Argentine). There were In 2018, the starting material production. with a half-integer spin that participates only started regular deliveries of molybdenum-99 for manufacturing californiun-252 sources in weak and gravitational interactions to the Beijing CIAE-RIAR Radioisotope was obtained by routine radiochemical In 2018, modes of vanadium selenide and belonging to the class of leptons Technology Co., Ltd. Production and processing of irradiated targets with curium synthesis and active part pressing shipment were carried out weekly isotopes, an additional amount technology were developed, a complex on a regular basis and periodically — twice of californiun-252 was produced of thermal and materials science studies a week. by irradiating experimental targets was performed, capsules with vanadium 2018 — A Year of Science in the Rosatom State Corporation The growth in sales of californium-252 with berkelium-249 and californium-249 selenide samples were irradiated in the SM reactor. in the SM reactor. is due to the successful implementation The field of research of all sciences is unlimited. In 2018, RIAR started justifying the technology B. Pascal of in-reactor irradiaion and manufacture Increase in sales volume: × 1.4 ×1.6 ×.73 RIAR is the only Russian producer of curium, berkelium, iodine-131 iodine-125 luthetium-177 and californium isotopes in the form of preparations and radiation sources; nickel-63, strontium-89, ruthenium-106, cesium-131, Tbq Tbq — Tbq gadolinium-153, lutetium-177, tungsten-188; cobalt-60 sealed 40. 7 16. 65 +589 gamma sources with high specific activity (more than 9.25 Tbq / g of cesium-131 average shipment of molybdenum-99 for medicine of molybdenum-99 (250 Ci / g)) and selenium-75 sources 79 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 80

Shipping services Until December 31, 2020, RIAR has valid permis- Until 2022, RIAR has valid 3.23.3 sions for the transit and transportation Rostekhnadzor's license JSC “SSC RIAR” considers shipment not only within Russia and CIS states, of radioactive materials across the territory to handle radioactive sub- of radioisotope products as the essential but also in the EU states, such as Germany, of Poland and for the transportation stances during component in the production cycle; Czech Republic, Poland, Spain, France, of high hahazdr radioactive materials therefore, it pays particular attention and other countries. RIAR has a large in the Czech Republic their transportation to building capabilities in shipment number of special-purpose containers that and logistics, updating the fleet of special- have international certificates to ship purpose vehicles, optimizing logistic radioactive materials and a fleet and international companies on arranging number as the company whose activity schemes and improving service quality of special-purpose vehicles equipped and ensuring delivery to RIAR and return is related to transit and submittal provided that the safety requirements are according to the European requirements of other products engaged in R&D fully met. At present, JSC “SSC RIAR” on road transport of dangerous goods and production (for example, nuclear ensures shipment of Russian radioisotope by vehicles. fuel samples and structural materials products (both domestic products to carry out research, as well as natural In addition to radioisotope shipment, RIAR and products from other companies) minerals for irradiation). RIAR is included renders integrated services to Russian into the EORI system and has the unique

Shipment of radionuclides Fuel manufacturing Almaty Portland Brussels Dimitrovgrad Prague As part of the Roadmap dated 02.16.2018 uranium-plutonium oxide fuel. For the first Seoul Budapest Samara No. 18/6-Pr for the implementation time in RIAR's practice, conformity Vancouver Istanbul of paragraph 1 of the “List of instructions assessment of manufactured products Warsaw Tokyo of the Director General of ROSATOM State was carried out in accordance Hanover Frankfurt Hanoi Corporation based on the results with the requirements of the newly Los Angeles of the workshop in Dimitrovgrad dated introduced GOST R 50.06.01-2017 Munich Helsinki Zurich December 15, 2017 No. 1-1 / 150-PP”, the Fuel (GOST R 50.06.01-2017. Conformity assessment system New York in the field of nuclear energy use. Conformity assessment Osaka Chicago Technology Department manufactured eight fuel assemblies for the BN-800 reactor of products in the form of acceptance. Procedure. — containing fuel rods with vibropacked mixed M.: FSUE Standartinform”, 2018.—44 p .)

Moscow Dimitrovgrad Detailed information on the work performed in 2018 at the nuclear research installations MIR, RBT-10/2, Adelaide New York BOR-60, SM, RBT-6, VK-50 and critical Boston Paris Havana Beijing assemblies SM and MIR, research Damascus Perth in the field of fuel elements and reactor Deli Seoul materials, fuel and fuel cycle components, Johannesburg Sydney transuranium elements, radionuclide Lyon So a preparations and radiation sources, Lisbon Istanbul Madrid Helsinki spent nuclear fuel and radioactive Melbourne Shanghai waste management, radiation and environmental safety are presented in the SCIENTIFIC ANNUAL REPORT of JSC “SSC RIAR” (report on the main research activities carried out in 2018): car vehicles of different load capacity — flights http://niiar.ru/annual_report 11 specialized vehicle fleet of JSC “SSC RIAR” 277 per year 81 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 82

2.5.6 PRODUCTION CAPITAL 1.2.11 INTERNATIONAL 2.5.7 3.20.1 3.2.4 3.21.1 3.23.1 3.23.3 MANAGEMENT 3.24.1 ACTIVITIES

8 JSC “SSC RIAR” is constantly improving used, the purpose of which is to create 54 Historically JSC “SSC RIAR” is of great interest irradiation testing Zr-U fuel rods and their the management system needed to carry a universal management system based to foreign companies and international subsequent post-irradiation examinations. out research and development work on the best examples of domestic and foreign agencies as a site for conducting experiments A few future possible contracts have been and provide services and timely response experience for comprehensive optimization and implementing joint projects in the field discussed during the year under report to to the expectations of its customers. of production and management processes of irradiation testing, reactor material science, continue irradiation experiments with the In accordance with the requirements and improving the efficiency of enterprises radiochemistry, fuel cycles, development use of RIAR's research infrastructure within of international and state standards, in the industry, including reducing costs of innovative nuclear fuels and materials as the framework of the Korean National the enterprise has identi ed processes and increasing labor productivity to the level well as for knowledge-intensive manufacturing Program for development of water cooled necessary for the quality management of Russian and foreign competitors. operations owing to unique experimental small modular reactors. The leading system functioning (managerial, basic capabilities, related infrastructure, scientific Customers are Korea Atomic Energy and supporting) and, developed new To increase the processes efficiency, improve and technical potential. From this perspective, Research Institute and KEPCO Nuclear Fuel and updated existing standards. their transparency and obtain economic one of the high priority tasks of RIAR Co., Ltd. benefits, in 2018, the Financial and Economic The main projects of the reporting year development has been expansion China. Late last year a PWR-type experimental Block of JSC “SSC RIAR” started implementing of international cooperation in science to improve the management system projects to optimize the following processes: fuel assembly was successfully delivered of JSC “SSC RIAR” are: and technology through active collaboration to the RIAR's site by rail and loaded in the test l transport service of RIAR's divisions; with foreign partners, opening new directions loop channel of the MIR reactor under l recerti cation control of certi ed quality l compilation of the plan and services of activities, participation in international the Contract made between China Nuclear management system and integrated meetings and conducting joint experiments Energy Industry Corporation, China Institute management system for compliance on the expense account 23 “Auxiliary production”, unification of the methodology within the framework of large-scale of Atomic Energy and RIAR to study its with state and international standards; international projects. For the last three for allocating costs operational performance. l years higher export earnings from foreign development and improvement (economic effect— 0.2 mln RUB); Possibility of making a few promising of an integrated management system contracts demonstrate that the efforts l contracts for irradiation testing and post- to implement a uni ed policy in the eld accounting costs for maintaining undertaken by the top management irradiation examinations including the contract of quality of the ROSATOM State and operating the electrical grid and staff members have been successful targeted at studying radiation resistance Corporation, updating and integration infrastructure in this area. of graphite under the conditions similar to its of regulatory documents (economic effect — 5 mln RUB); Scientific research work has been done operating conditions in the high-temperature of the management system; l providing IT services at RIAR's site under both the existing gas-cooled reactor as well as another l development and implementation (economic effect— 1.8 mln RUB); contracts and long-term foreign contract contract for irradiation testing entered into during the year under report. and subsequent post-irradiation examinations of quality assurance programs under l compilation a topical plan of work (services, the operator's responsibility, Historically companies from France, USA, of the PWR-type experimental fuel assembly products) on revenue to the budget Republic of Korea, Japan, and China etc. and absorber rods has been already as well as when extending the of nuclear (economic effect— 0.2 mln RUB). facilities lifetime in accordance are among the foreign customers negotiated. Work is currently under way with the requirements of Standard Within the framework of the project of JSC “SSC RIAR”. to sign a Memorandum of Understanding NP-090-11 “Requirements for quality “Creating a new model of a medical Republic of Korea. RIAR pursues an active concerning scientific and technical cooperation in the field of peaceful uses of nuclear energy assurance programs for nuclear facilities”. organization providing primary health care”, cooperation with Korea Atomic Energy work was done to optimize the work Research Institute under the long-term between China Institute of Atomic Energy of registry and blood sampling specialists, contracts within the framework of SFR and JSC “SSC RIAR”. One of the promising lines for cooperation extending is to return Improvement doctors and paramedical personnel. Project (Project for development of Sodium- The patient's stay in the registry was reduced cooled Fast Reactor) that also provides to cooperation in respect of consultancy of production activity efficiency from 40 to 5 minutes; filling out paper within the framework of the Project for CFR-600 (sodium-cooled pool-type fast To constantly improve the production documentation— from 15 to 5 minutes; nuclear reactor) pilot nuclear reactor and management processes, tools patient expectations near the blood Bulk of export revenue from foreign contracts from year to year, construction. Such scientific consultancy of the ROSATOM production system are collection room—. from 40 to 10 minutes services can be rendered owing to a package mln USD of bilateral documents for comprehensive partnership and strategic cooperation Our plans 36 38,6 including state priorities for cooperation 34 with China in the field of nuclear power In 2019, work will continue to improve and to increase efficiency production engineering signed on 8 June during the integrated management system activities of JSC “SSC RIAR”. the state visit of the President of the Russian in accordance with the compiled plan 2016 2017 2018 Federation to the People's Republic of China. 83 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 84

Japan. Strong cooperative relationships has been accomplished during the year the Western and Eastern Europe, Great the authorized representative of JAEA in the field of nuclear power engineering have under report. JSC “SSC RIAR” Britain and other countries. JSC “SSC RIAR” and TENEX Company visited the RIAR's been established between JSC “SSC RIAR” and Commissariat à l'énergie atomique discussed how to enhance cooperation site to discuss areas of cooperation and Japanese companies and Institutions, et aux énergies alternatives were active during the meetings with the customers including future possible research projects in particular with Marubeni Utility Services, in discussing a few promising contracts and prospective partners at the Annual with the focus on Fukushima Daiichi NPP Ltd., Tohoku University and Japan Atomic for irradiation testing of cladding materials Congress of European Association accident management among the other Energy Agency. Fabrication of zirconium- and PWR rodlets, including irradiation test of Nuclear Medicine (EANM-2018) and during things as well as further interaction americium hydride and investigation of its of beryllium. the working visit of the RIAR's top within the framework of the aforesaid properties were continued during the year Memorandum. It is worth noting that as it USA. The Contract for investigation management to Joint Belorussian-Russian under report. This work has been done has been previously reported the Russian of radiation resistance of TWR structural Enterprise “Isotope Technologies”. A great under the Contract made between RIAR Consortium won the tender held materials under high-temperature demand for unique test facilities and nuclear and Marubeni Utility Services, Ltd. The results by Mitsubishi Research Institute (Japan) irradiation in the BOR-60 reactor made research reactors at JSC “SSC RIAR” of this work are of particular importance to carry out research on changes between TerraPower LLC and JSC “SSC and long-term prospects for strengthening to radiation safety for the purposes in corium due to its ageing. JSC “SSC RIAR” RIAR” in 2012 is still under way. Irradiation international activities and scientific of radioactive waste processing has a key role to play in this Consortium. and management. New avenues testing of structural materials specimens is cooperation can be proved out as follows: Ÿ A new initiative has been taken to develop Ÿ Speech made by Alexey Likhachev, for cooperation with the Land of the Rising to be conducted until 2020. The Contract nd Sun are nuclear fuel cycle technologies, also provides for continuing irradiation an infrastructure to conduct international Director General of ROSATOM, at the 62 irradiation tests and post-irradiation beyond 2020. All the stages of irradiation irradiation tests and studies of nuclear fuel IAEA General Conference where he examinations of experimental fuel assemblies testing and out-of-pile tests were and materials employing nuclear research pointed out that one of the first priority and advanced fuel, structural materials successfully accomplished during the year reactors of JSC “SSC RIAR”. Workshops nuclear research projects in the Russian and elements. under Report. held under the auspices of Nuclear Energy Federation was establishing the International Research Center based France. The year under report was as Agency within the Organization for Economic RIAR re-launched gemstone irradiation on the multipurpose fast research rewarding as possible in terms of establishing Co-operation and Development (NEA OECD) in research reactors of JSC “SSC RIAR”. reactor. The MBIR reactor was added cooperation and negotiations with both discussed the possibility of using the RIAR's Work done by RIAR to modify optical to the list of reactors available partners and potential customers site as a base for conducting irradiation properties of naturally occurring minerals for employment for irradiation tests from France. In June the Contract tests and post-irradiation examinations under irradiation in nuclear research within the framework of IAEA Program for Investigation of Hydrogen Effect of new advanced nuclear fuel and materials. reactors is the best example of high-tech for IAEA designated International Research on Thermal Stability of Irradiation and Cold As a follow-up to the aforesaid discussion, export of innovative services and operating Centers based on Nuclear Research Work Defects in Zr Model Alloys was signed a delegation from NEA OECD headed efficiency enhancement of nuclear research Reactors (ICERR). The most up-to-date between JSC “SSC RIAR” and el ELECTRICITE by Daniel Iracane, NEA Deputy Director- reactors. Research Center will be established based DE France SA. Irradiation testing of Inconel General visited JSC “SSC RIAR” at the end on the MBIR reactor. Alloy 718 was accomplished under the long- Fifteen technical reports were drawn up 3.23.4 of November 2018 to discuss possibility term Contract with another French Company and delivered to Customers during the year of conducting experiments at the RIAR's JSC “SSC RIAR” has been actively engaged Framatome. The experimental data obtained under report within the framework of more site targeted at studying fuel behavior in increasing a backlog of foreign contracts under this Contract and gained experience than ten long-term international contracts. under the design-basis accident and promoting the international cooperation of joint work provided a strong basis In 2018 a new way of deliverable report conditions (loss of coolants accidents are altogether. That is why there were a lot transfer as an electronic file via secure file in the first place). of visits and technical meetings for furthering cooperation in the field Ÿ of irradiation testing and post-irradiation transfer system was successfully adopted Increased interaction within the framework with potential foreign customers examinations of structural materials within the framework of ongoing contracts of Memorandum signed between and representatives of foreign customers and fuels. In particular, new future possible with some French Companies in addition ROSATOM and Japan Atomic Energy both at the RIAR's site and abroad contracts for post-irradiation examinations to a traditional way. Such a procedure was Agency (JAEA) in September 2017 to share under the ongoing contracts during of irradiated Inconel Alloy 718 specimens implemented in full conformity with export the intention to exchange information the year under report. In 2018 JSC “SSC and investigation of radiation- induced control regulations under licenses granted and data in the field of reactor RIAR” was visited by 80 representatives corrosion of cladding materials are by the Federal Service for Technology and physics experiments with the focus from 17 Companies and Institutions under discussion. Export Control. Such a novelty made it on transmutation of minor actinides during to discuss prospects for further possible to reduce economic cost and time radioactive waste management. Scientific cooperation and experimental capabilities 3.20. Commissariat à l'énergie atomique et aux spending for dispatching deliverable reports. Centers in Russia and Japan with their of our Institute, attend progress review énergies alternatives, CEA continues considerable expertise and experience meetings to discuss progress and state to demonstrate a high level of interest As to production of high-tech radioactive 3.22.1 in successful research and development of Work and reports delivered in experimental capabilities of JSC “SSC RIAR”. isotopes, JSC “SSC RIAR” was able to supply projects in the field of radioactive waste under the ongoing contracts. Delegates There are also plans to conclude some new radioactive nuclides and ionizing radiation management have a common interest of JSC “SSC RIAR” went to France, the Czech contracts for post-irradiation examinations sources of medical application under sixty in working together to facilitate Republic, Australia, Belorussia, Rumania of irradiated specimens and repatriation eight ongoing contracts during the year sustainable development of nuclear power and China on a regular basis to take part of certain irradiated specimens to France as under report. Among their foreign engineering and environmental protection. in the progress review meetings with foreign a follow-up of work on radiation resistance customers were India, Japan, the Republic During the year under Report, partners, different meetings and working of structural materials for fast reactor that of Korea, China, USA, Brazil, Argentine, 85 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 86

groups which were organized In 2018 seven articles authored under the auspices of different international by researchers from JSC “SSC RIAR” were organizations. They also attended published in flagship foreign periodicals. QUALITY CONTROL 18 international workshop meetings JSC “SSC RIAR” continues to work intensively and conferences both in Russia and abroad as a base institution for the CIS Member 7 Quality management at RIAR is based Quality Assurance Policy to present 47 papers to report States to share the intention on the quality management concept stated Common intentions of the RIAR's management the experimental data and promising trends to exchange information and data in field in international quality management standards. The integrated quality and areas of RIAR's business activities of activities including the attendance of such of nuclear research reactor safety. prominent events: th management system is under the direct to assure quality are set forth in the quality In October 2018 there was the 5 Meeting management policy of JSC “SSC RIAR”. Ÿ supervision of the Chief Engineer who is NEA OECD Workshop on Enhancing of the Consultative Advisory Board the RIAR's top management representative The quality assurance policy was updated Experimental Support for Advancements of the Base Institution in Minsk that was in charge of quality and ecology. in 2018. It was brought to attention of every in Nuclear Fuels and Materials (France); attended by representatives of foreign As to the quality policy guidance, it is also employee and made available to the general Ÿ International Workshop “Building companies, Belorussia, Kazakhstan implemented by the Quality and System public. Multinational Fuel and Materials Testing and the Russian Federation. The outcome Engineering Department that is subordinate Capabilities” on the basis of NEA OECD of this meeting is an adopted Work Plan to the Chief Engineer. (France); for 2018– 2019. Ÿ International Workshop Meeting During the year under report employees The quality management system is intended to ensure “Management of Large-Scale Projects of JSC “SSC RIAR” continued to be active Its timely institutional governance, research, business and engineering for Nuclear Research Reactor in promoting international activities, applicability management at RIAR and is targeted at meeting Construction” (Austria); research and development and thus is verified the Customer's requirements to the full extent Ÿ The 62nd regular session of the IAEA engaging an increasing number of foreign General Conference devoted to further customers to conduct experiments ANNUALLY with a view to provide the desired quality within the fixed development of atomic energy industry and supply radioactive isotopes jointly timeframes as well as safe performance worldwide and new generation of research with every passing year. According reactors (Austria); to the outcomes of 2018, the backlog Ÿ of foreign contracts amounted to almost 3.24.2 RIAR worked out and put in place a series of its integrated quality management system International Scientific Workshop Meeting 3.34.1 “Operation of Russian Nuclear Fuel US $ 95 million for a ten-year period. 2.5.6 of measures and documented procedures and thereby it con rmed its compliance at Nuclear Power Plants operating WWER JSC “SSC RIAR” is the largest experimental aimed at high performance of quality to the aforesaid standards and Certi cation reactors. Experience, Analysis, Prospects site in the Russian atomic sector and it will management system. It has feedback Association “Russian Register” that is (the Czech Republic); continue to expand and strengthen its from consumers of products and services a member of International Certi cation Ÿ International Conference on the WWER presence at the worldwide markets to sustain development and promotion Network IQNet granted appropriate Fuel Performance (the Czech Republic); for technology- and knowledge-intensive of its business performance. Moreover, RIAR certi cates (for a three-year term). Ÿ services and innovative products. conducts regular Customers' satisfaction It also completed supervisory recerti cation The 31st Annual Congress of the European surveys. audit for compliance to the requirements Association of Nuclear Medicine (Germany); A number of potential foreign customers and thus contracts being at different JSC “SSC RIAR” a ected the transition of the State Military Standard GOST Ÿ Bilateral Russian-Japanese Meeting RV 0015-002-2012 “System for Military devoted to decommissioning stages of implementation indicate that to the latest ISO management system the Institute's facilities and related standards ISO 9001:2015 “Quality Equipment Development and Launching and remediation of Fukushima Daiichi into Manufacture. Quality Management Nuclear Power Plant territory organized infrastructure are in demand and thus management systems. Requirements” it will allow RIAR to consolidate its (GOST R ISO 9001-2015) and ISO 14001:2015 Systems. General Requirements”. by Japan Nuclear Safety Research Independent non-pro t company “Institute Association together with Japan Ministry achievement through long-term “Environmental Management Systems. for Testing and Certi cation of Armaments for Education, Culture, Sports, Science contracts and proceed with the mutually Requirements and Guidance for Use” and Technology; beneficial cooperation.. (GOST R ISO 14001-2016). RIAR successfully and Military Equipment” granted Certi cate completed supervisory recerti cation audit No. SDS VS 01.521-2018 that is valid till Ÿ XIII International Nuclear Forum 9 September 2021. “Safety through Nuclear Technologies: Transportation of Radioactive Materials (ATOMTRANS-2018)” (Russia); The integrated quality management system is applicable Ÿ XI International Scientific and technical Conference “Safety, Efficiency to the design engineering, fabrication and supply of fuel elements, and Economics of Nuclear Power Industry (MNTK-2018). fuel assemblies, radiochemicals and radionuclide sources. It also extends to research and development work in the field of nuclear energy application 87 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 88

Compliance Certificates 89 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 90

Regular internal audits of integrated Processes and methods of risk management management systems were conducted attributable to ISO 31000 and ISO/IEC 31010” Plans to provide its high functional status. was held as a part of work on further As evidenced by ndings of internal auditing, development of integrated management To undertake surveillance internal audits l Certified integrated management the integrated management system is rmly system. and confirm the compliance as follows: system to the requirements in place. Yearly RIAR sets goals l Certified quality management system of international standards ISO 9001:2015 and objectives attributable to quality control to the requirements of the State Military (GOST R ISO 9001-2015) and ISO in order to enhance its production Standard GOST RV 0015-002-2012; 14001:2015 (GOST R ISO 14001-2016). capacities. These goals and objectives are The following documents were decomposed as performance indicators updated: and assigned to all divisions and GRI An average level of customers' satisfaction Quality 417-1 Customer's satisfaction grew in 2017 at the expense of grown departments of RIAR. Attainment of goals Standards 417-2 and objectives assigned to both RIAR and its 77 417-3 assessment level of customer's satisfaction 418-1 with R&D activities. divisions and departments is monitored. Activities related to assessing the customer's Quality Assurance 56 Introductory and consulting workshop Programs satisfaction, methods and frequency of data As evidenced by the questionnaire survey, “Risk-based thinking in transition to standards 93 acquisition as well as the data analysis Companies who use services and products of JSC “SSC RIAR” consider RIAR a reliable ISO 9001:2015 and ISO 14001:2015. method are governed in conformity with the RIAR's Standard STO DP 086-410-2015 supplier and they have plans to continue “Integrated Quality Management System cooperation under the contracts. Moreover, of JSC “SSC RIAR”. Monitoring and Customer's they are ready to refer other consumers Satisfaction Assessment”. to RIAR. In their opinion, the information Accomplishment of quality objectives about services rendered by the Company by JSC “SSC RIAR”,% A questionnaire survey was conducted and its products is available. There were the main customers of RIAR's products no claims and complaints from the Consumers Applying for Certificates of Compliance 100 and services rendered following of products and services. the results of 2018. Activities attributable to transition to the latest standards 100

Elaboration of standards and keeping them up to date 100 Average level 2014 Verification of RIAR's standards 100 of customers' satisfaction from year to year,% 90.0 Accomplishment of internal auditing program 100 Production of high quality radioactive nuclides 118 85.0 Fabrication of high quality nuclear fuel 37.5 83.6 2018 2015 Customers' satisfaction with R&D 86 87.0

Customers' satisfaction with the products supplied 88 83.1 Satisfaction of customers with State Orders 89.7 80.0 Actual reactor availability factor 100

Elaboration of Quality Assurance Programs and their updating 100 83.5 99.2 Funding of R&D in the field of reactor materials science 86.4 Funding of R&D for nuclear research reactors 100 2017 2016 Funding of R&D in radiochemistry 99.8

Trouble free operation of nuclear research reactors and test facilities 100 Staff training 60 Averaged Customers' R&D Products 30.0 80.0 satisfaction with 86 % 88 % 91 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 92 4.3.

Level of Corporate Customers' Intellectual satisfaction with R&D % JSC TVEL 88. 8 JSC “VNIINM” 76. 7 capital JSC “VNIINM” 94. 9 JSC “VNIINM” 72. 3 JSC “VNIINM” 90. 5 INNOVATIVE JSC Research Institute of Chemical Technology 84. 8 JSC Research Institute of Chemical Technology 85. 8 ACTIVITY JSC “Science & Innovations” 86. 8 9 One of the main tasks of the innovative of scientific and technological development JSC “Science & Innovations” 94. 8 4 development of JSC “SSC RIAR” is of the State Corporation. PJSC Electrovypryamitel 62. 0 9 to increase the competitiveness The RIAR's employees submitted 27 applications of products and services through for the competition, the expert committee NCCP PJSC 85. 1 3.21.2 the upgrading of existing technologies of Rosatom State Corporation selected nine Roenergoatom, JSC 77. 4 and technical re-equipment of production advance projects, of which three projects were capacities. Various innovation forms Central Research Institute of Structural Materials “Prometey” 81. 9 included into the unified R&D program. are used, but the priority is given Their implementation will start in 2019. FSUE NO RAO 81. 2 to the application of own technologies and competencies. The main innovative The list of projects included PJSC MSZ 98. 8 projects are covered by the Federal Target into the unified R&D program: INR, RAS 100. 0 Program “Nuclear Energy Technologies 1. Development and justification of New Generation for the Period JSC “Afrikantov OKBM” 93. 8 of the technology for heterogeneous 2010–2015 and till 2020”. burning of minor actinides in a fast reactor JSC “Afrikantov OKBM” 86. 7 In the year 2018, which was declared (Supervisor — A.L. Izhutov). JSC “Afrikantov OKBM” 93. ,4 the Year of Science at the Rosatom State 2. Development of technology for the creation Corporation, there was held the first open 100. 0 and application of corrosion-resistant JSC “Afrikantov OKBM” competition of advance projects of nuclear heat-resistant and wear-resistant coatings Tenex, JSC 60. 0 industry employees to include their for zirconium alloy fuel rod claddings proposals into the unified R&D program. (Supervisor — A.L. Izhutov). FSUE PNPI (NRC “Kurchatov Institute”) 99. 5 The main objective of the competition is 3. Radium-223 / thorium-227 generator 00.400.800. the selection of proposals to implement to produce radium-223 chloride the research in the priority areas (Supervisor — O.I. Andreev). Level of Corporate Customers' satisfaction with products, %

JSC “Research and Technology Center “RATEK” 97. 6 “SPB Izotop”, JSC 100. 0 applications to participate in the advanced projects contest JSC Karpov Institute of Physical Chemistry 91. 9 27 JSC “NIKIET” 74. 4 advanced projects selected SSC RF-IPPE, JSC 83. 8 9 by experts for implementation CJSC Qvant 93. 5 FSUE NITI 76. 8 advanced projects included into the unified R&D program JSC PO Sevmash 86. 0 3 93 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 94

Key innovative projects

Design and construction of the multi-purpose Design and construction Retro tting of fast test fast test reactor MBIR of Polyfunctional Radiochemical Complex reactor BOR-60 Purpose A high- ux reactor should become a new technological platform The complex is designed to try out technologies for spent nuclear fuel reprocess- The 60 MW reactor is a unique multi-purpose installation to test 1.5.2 for nuclear energy based on the closed nuclear fuel cycle of fast neutron ing and radioactive waste management. This complex structural, fuel and absorbing materials used and proposed for use 3.6.1 3.7.1 reactors. A peculiar feature of this reactor is a three-circuit scheme will signi cantly reduce the amount of spent nuclear fuel, make it possible in various types of nuclear reactors, as well as materials for fusion 3.14.1 of heat transfer from the reactor to the environment: primary to dispose radioactive waste with a radiation background close to natural. reactors. Tests of individual fast reactor equipment components 3.20.1 and secondary coolant is sodium, the third is water. The reactor thermal The complex will be able to reproduce any spent nuclear fuel reprocessing of the primary and secondary cooling circuits are additionally 3.21.2 power will be 150MW, the electric one up to 55MW, the maximum neutron technology and their combinations, for which modular shielded boxes are performed ux density is about53·10 .15 sm –2 · s –1 provided with the possibility to install biological protection as well as, uni ed installation platforms for operational readjustment and other equipment

Target Reactor tests, including dynamic modes, and post-irradiation Obtaining reliable data for testing, experimental and industrial justi cation Extending the reactor lifetime, increasing the reactor safety examinations, and testing of new types of equipment of various of promising closed-fuel cycle technologies; creation of an International Center and expanding its experimental capabilities to provide technological systems, production of electricity and heat, development for fast reactor fuel handling of at JSC “SSC RIAR” an experimental justi cation of the main parameters of IV-Gen reactors, of new technologies to produce radioisotopes and modi ed materials their nuclear safety and fuel cycle Outcome for the year ● 2 055 m33 of concrete was laid (88 446 m from the beginning of construction). ● The contractor has been changed: instead of JSC” NIKIMT-Atomstroy”, ● Projects have been developed to replace electromagnetic starters ● 392 tons of ttings were installed (15 901 tons from the beginning the construction of the complex is carried out by JSC SNPO “Eleron”. of the sodium circuit heating system and electric motors of construction). ● 1 120 m33 f concrete has been laid (19 553 m from the beginning of the main circulation pumps. ● ● Concreting work was carried out at elevations from +5.900 to +13.100 m. of construction). The strength calculations were made for the reactor gas spectrometric ● ● loop, intermediate heat exchanger, oil and water separator, water heater A system for tensometric monitoring of the stress-strain state 101.8 tons of ttings were installed (2 602.8 tons from the beginning PSV-200U, process and vertical condensers, and bu er capacity of the MBIR reactor vessel was installed. of construction). of steam generator. ● ● Acceptance testing of prototypes of automatic control actuators, 15.9 tons of complex embedded parts were installed ● A new power supply scheme for the operator's information manual control and shim rods of the MBIR reactor control (127.6 tons from the beginning of construction) support system was put into operation. and protection system was completed at the JSC NIKIET site. ● Rechargeable battery was mounted for the rst channel ● The ATOMMASH plant, a branch of JSC “AEM Technologies”, Volgodonsk, launched the rst stage of the MBIR reactor assembly of the emergency power supply system SAE-1 (220 V) Plans for 2019 ● The completion of the control assembly, hydraulic and pneumatic tests ● Continuation of the main period of construction. ● Purchase of equipment according to the retro tting plan. of the reactor in Volgodonsk. ● Continued installation of parts of previously delivered biological ● Construction and installation work to upgrade the reactor radiation ● Completion of acceptance testing of emergency protection actuators protection elements and embedded parts of special systems. control system installation for reactor protection control systems ● Preparation for testing a uni ed technological module and its life support systems (as part of the research work implementation). ● Preparation for testing on equipment simulators, units for medium-level waste handling and vitri cation of high-level waste (as part of related work on the “Breakthrough Project”). ● Development of project documentation, taking into account all the engineering systems and production process chains, including scienti c support

Mid- and long-term plans Continuation of construction, manufacturing, supply and installation of equipment; commissioning. Execution of activities on behalf of the Chairman Continuation of the project in accordance with the plan of the Government of the Russian Federation D.A. Medvedev on the early termination of the Federal Target Program "New Generation Nuclear Energy Technologies for the Period 2010–2015 and till 2020" and the development of activities under the State Program "Development of the Nuclear Energy Industry" 95 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 96

INTELLECTUAL MANAGEMENT CAPITAL OF INTELLECTUAL Being a key to developing innovations of competences. Highly quali ed experts CAPITAL 1.6.1 and achieving strategic goals, RIAR's allow the RIAR's engineering capability 1.6.2 3.1.4 intellectual capital includes intangible assets: to be preserved and the research 3.18.1 knowledge, technology, intellectual to be performed at a high level. In 2018, in addition to solving problems To implement the above measures, 3.18.3 3.18.4 property and people with a variety 2.5.6 and ensuring the ful llment of the target the specialists of the Intellectual 3.18.4 3.18.5 indicators of the ROSATOM's innovative Property Management Department conducted research on the existing as of December 31, 2018 development and technological INTELLECTUAL modernization program for the period technical and technological level CAPITAL PORTFOLIO* up to 2030, the main areas of innovative and development trends in the eld activity of JSC SSC “RIAR” were aimed of developments proposed for inclusion into a uni ed R&D program, their patent at implementing a set of measures purity, competitiveness and possible objects of intellectual capital: to form a uni ed R&D program, 269 commercializability. which includes two main areas: 100 patents for inventions (10) ● participation in the ROSATOM's rst open tender of applications 114 know-how (71) for the implementation of initiative persons research work aimed at achieving holds degrees 35 patents for a useful model (12) the strategic development goals 71 of the State Corporation; ● 17 certi cates for PC programs (7) formation of proposals aimed persons — at implementing ROSATOM's priority 10 Doctors of Science 2 certi cates for database areas of scienti c and technological development in accordance 1 certi cate for a brand name with the criteria for achieving persons defended their technological leadership 3 thesis work in 2018 * In brackets is the number of objects, the copyright of which is the Russian Federation. and excellence.

Full accounting value applications Inventive work in JSC “SSC RIAR” of intellectual property objects for state registration by years, mln rub 6 of intellectual property Values per years Indicator 2016 2017 2018 filed production secrets (know-how) Application for an invention and useful model, 555 8. 38 computer program submitted in the RF 9 8 3 294 8. 306 8. International applications for patents obtained patents for useful models 0 1 3 and inventions, certi cates Patents obtained for an invention and useful model, 16 15 6 2016 2017 2018 6 for computer programs certificates for computer programs Number of filed know-how 0 3 38 publications in peer-reviewed world publications in the eld Inventions, useful models, brand names, 214 228 269 14 of atomic energy use (per year per 100 researchers and developers) computer programs and know-how in force 97 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 98

Knowledge Management System of employees 1.6.3 have higher 2018 — A Year of Science The process of knowledge generation, project has been successfully implemented 57. 2 % education in the Rosatom State Corporation preservation, distribution and use is one in RIAR since 2012. of the essential processes to manage In order to maintain and improve the process, Science-chosen ones should treat knowledge RIAR's innovation activity and development. a functional organization structure of employees as an entrusted to them treasure belonging Preservation of acquired scienti c to all people. of the knowledge management system have industry- and technical competencies is very was established. 30. 1 % speci c education K. Timiryazev important for the safe operation of existing nuclear facilities and e ective Phases of the project are described introduction of new developments. in full in the annual reports Details on publications of RIAR's specialists The purpose of the knowledge management for the prior years (http://niiar.ru) 3.19.2 and their involvement in to various events system is to e ectively use the intellectual 3.19.3 capital, identify and distribute the acquired JSC “SSC RIAR” is a member GRI 102-13 Indicator Value knowledge and arrange conditions of the State Scientific Centers for knowledge transfer. The same-name Association “Science” Total number of publications in peer-reviewed journals 227

Number of publications in journals: 75 Key tasks Innovative ideas international 6 Russian 69 ● minimizing the risks of losing the knowledge ● annual courses and lectures conducted Monographs 2 and skills used in the course of business; by JSC “SSC RIAR” experts and creation of a library of video lectures; ● Attended conferences, symposia, workshops, etc: 85 shaping the mechanisms for commercial ● release of a RIAR-oriented multimedia Russian 67 use of knowledge, including the results teaching video for students of intellectual activity; international 18 and post-graduate students; ● ● integrated approach to preserving launching new sections “Knowledge Including CIS countries 2 and developing critical knowledge and skills; Management System” and “Library” on the RIAR's website; Number of papers (talks) presented at conferences, symposia, workshops, etc: 125 ● motivating the employees to acquire ● release of print media: scientific Russian 78 new knowledge and competencies; publications, popular science editions, international 47 publications about RIAR's history ● improving the e iciency of knowledge Including CIS countries 3 and people; formalization, arrangement of a permanent ● English language courses; teaching and experience transfer system; ● establishment of an interactive platform Number of employees who took part in contests 2018 ● providing access to information sources; on the enterprise website for sharing knowledge, discussing ideas, tasks Contest Number Winners ● improving the e iciency of sta ing business and projects; of participants processes: personnel selection, training ● forming a collection of works of RIAR's Contest to get a scholarship of the President of the Russian Federation and motivation. employees and provision of access for young scientists and graduate students who carry out advanced to full-text publications. research and development in priority areas of modernization 31 of the Russian economy Contest for the ROSATOM award to young scientists working 41 in the nuclear industry “ROSATOM" Contest "Innovative leader of the nuclear industry" 3– Plans Industry tournament of professional skill “Atomskills” 2– l l All-Russian contest "Engineer of the Year" 31 To deal with the tasks of increasing To extend opportunities for critical the use of intellectual property objects knowledge preservation and transfer. Contest among RIAR young employees 78 30 99 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 100

Knowledge Management System Structure Outcomes 2018 Director ● A knowledge map, programs and a list ● Tabs on the RIAR's home website for: of critical knowledge have been developed. – videos of scientific readings Personnel O ice Work Coordinator, ● The topics of critical knowledge in the framework of ROSATOM's Year Assessment Head of the Working Working Group and the carriers of this knowledge have of Science; and Development Office Group been determined. – compilation of information about ● Multimedia modules on the RIAR's activity contests and other public competitions topics have been developed. announced by the Russian Science ● Video materials of JSC SSC “RIAR” Foundation, Russian Foundation for Basic experts' lectures have been prepared Research, participation in which may be for the library of video lectures. of interest to the RIAR's scientists. Scienti c and Technical Scienti c and Technical Intellectual Property O ice Communication O ice O ice

Scienti c and Technical Specialists (Experts) Future plans

● Updating the knowledge map, program ● Expanding ways to store and transfer ● Preservation of knowledge documenting and digitizing and the list of critical knowledge. critical knowledge: introduction of new 3.19.1 critical knowledge; ● tools to implement the knowledge of critical importance ● Creation and placement of critical transfer of key knowledge knowledge multimedia modules preservation process. JSC “SSC RIAR” has a working group and competencies in order to preserve critical knowledge and face to maintain sta continuity; on the portal of the ROSATOM's the following tasks: scientific and technical library. ● development, implementation and updating ● extraction, structuring, formalization, of regulatory and methodological systematization and organization documents. of storage of formalized knowledge; ● identi cation of critical knowledge; Provision of scientific ● 4 collection of works of RIAR' researchers ● assessment of the risks of loss 2018 — A Year of Science 3.19.3 and technical information (39 articles); and development of a list in the Rosatom State Corporation ● 2 proceedings of conferences (87 articles); of knowledge; The provision of sci-tech information ● ● 2 monographs written by RIAR's researchers; development of a program and de nition Science is a huge treasury of knowledge to scienti c workers of JSC “SSC RIAR” aims of tools for implementing the process accumulated by mankind. at ensuring access to information sources ● annual scienti c report (59 articles). of knowledge preservation; of di erent levels and formats. The key N. Krupskaya We continue studying the publication activity task of the Scienti c&Technical Information of individual researchers and the institute as Department the support of the scienti c a whole in the SCIENCE INDEX system (on and technical information content, including the eLIBRARY.RU platform). the formation, storage, distribution and use lectures conducted lectures of information resources that correspond by RIAR's experts in the video library 15 59 to the RIAR's pro le. 2018 — A Year of Science The system of the Russian Science Citation in the Rosatom State Corporation Index (RSCI) on the platform of the scienti c electronic library eLIBRARY.RU contains Every scientific work, every discovery, students multimedia modules collections of works of JSC “SSC RIAR” and every invention is a universal labor. published since 2010. of English courses on RIAR's activities It is made up of work of both contemporaries 55 18 In 2018, there were uploaded in the RSCI: and predecessors. K. Marx 101 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 102

RIAR's employees have access assigned the ISBN number and UDC to the international database of scienti c indexes, SRSTI, LBC, materials are Editorial-Review Board citation indices Web of Science, funds compulsorily edited and published, which of the State Public Scienti c and Technical guarantees high quality of the published Library. Work is underway to organize material and compliance with all standards Editorial sta Editorial sta Editorial sta the participation of RIAR's employees in the eld of editorial and publishing of JSC “SSC RIAR” Collection of JSC “SSC RIAR” of JSC “SSC RIAR” in scienti c and technical events at various activities. All scienti c publications of Scienti c Articles Annual Report Scienti c Report levels, as well as to increase publication of the institute are reviewed by members activity in leading Russian and foreign of the editorial boards, Publishing scienti c journals. RIAR's researchers Board and scienti c and technical RIAR's issues are and experts actively interact in various sections. issues are ready working groups, take part in technical A scienti c report is annually issued for publication in the RSCI database meetings and seminars held under 12 in JSC “SSC RIAR” (report on the key the auspices of international organizations. research activities carried out in the reporting year) in Russian Release of publications and English as well as bulletins on violations at nuclear research installations of Russia JSC “SSC RIAR” continues releasing and the CIS, Environmental Report. printed and electronic publications in order Collection of scienti c articles to preserve critical knowledge on the key of JSC "SSC RIAR" is released on a quarterly topics, expand the competence of scienti c basis, as well as collections of abstracts and technical specialists and horizons and presentations of conferences of young employees, inform about and seminars, books, brochures, booklets. the capabilities and achievements of the institute, strengthen the mentoring system, perpetuate the history Detailed information on the editorial- of the organization. publishing activity of JSC "SSC RIAR" can JSC “SSC RIAR” seeks to ensure that be found in the scienti c annual report: all its publications are o icial, i.e. they are http://niiar.ru/annual_report

Scienti c Board

R&D Boards on research Engineering&Technical Subdivision R&D areas Boards Boards

English language of specialists in international events where Physics, engineering, irradiation Research Reactors Complex Research Reactors Complex technologies and safety courses the working language is English, the ability of nuclear reactors Radiation and environmental Reactor Materials Testing Complex to independently create presentations safety, handling of radioactive In order to ensure the sustainable develop- and make presentations in English, Reactor materials testing Fuel technologies Division and technologies substances and nuclear ment of international scientific and technical and to study scientific articles in the original. materials activities and increase the involvement Nuclear fuel cycle Radiochemical Division Training is carried out on two levels: of young employees into the interaction Radiochemistry and analytical basic and advanced. Employees who have Radionuclides&Radiochemicals with foreign partners, RIAR organized successfully completed a course are chemistry Division Nuclide technology English language courses for scientific involved into international events Reactor facility VK-50 staff and technical specialists. Among and they also have a career priority. the expected results are the participation 103 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 104 4.4.

Another priority is development of sta competencies to successfully meet the business challenges. Human Two RIAR's employees took part in the third championship AtomSkills-2018 held by ROSATOM based on WorldSkills methods. As part of the accomplishment Capital of this task, every year RIAR's employees participate in di erent competitions and conferences (for example, in regional competition “Engineer of the Year”, competition for RIAR's young specialists STAFF aged 35 or less). The Institute continues to implement a distance learning system. UPDATE The next priority is building a result-oriented Dmitry culture: it is necessary not only to keep the achieved GRI As at December 31, 2018 the total number and parental leave, and 35 employees RUSINOV 102-8 sta engagement rate, but also to raise this index of RIAR sta members was 3 253 including returned to work, 21 of them have been GRI and promote ROSATOM's values. Focus groups were 102-20 Deputy Director of JSC “SSC RIAR” 3 205 full-time employees and 48 part-time working at RIAR during 12 months established including those involving subdivision for HR Management employees. The number of employees a er their return. managers to identify the problematic issues and Social Development decreased by 2.4 %, which resulted of sta concern. An action plan is under GRI implementation to improve the certain factors. from the nancial rehabilitation program In accordance with the labor law, the minimum 402-1 to optimize the number of the sta period to notify the employees about important One more important priority is to enhance business changes in the company's activities is stated 3 The key HR management goals are as follows: members. 57.2 % of sta members have 4 satisfaction with HR management activities. in the collective bargaining agreement making up higher education degrees and 30.14 % 5 8 11 l development of sta competencies At the end of the year, a survey on satisfaction at least two months. 12 16 17 of them have industry-speci c education. (with the priority of developing R&D competencies with the HR function was performed. As a result, The sta turnover made up 5.79 %. GRI and competencies to increase the e iciency all HR management services were highly 401-1 2.5.6 GRI In 2018, 18 women and 1 man took maternity 2.6.1 of business operations); appreciated by RIAR's employees. The Institute 401-3 l increase of sta satisfaction continued HR management process computerizing, and parental leave. 4 employees resigned sta members and engagement rate; and new document templates were introduced. from the Institute during the maternity 3 253 l maintenance of competitive labor productivity The cooperation between RIAR and higher educational by reducing the labor intensity of operations; institutions of Ulyanovsk region and other ones was ourished: 306 students underwent hands-on training, GRI Staff composition and structure by categories, l improvement of innovativeness and e iciency, 405-1 including through the reformatting and 33 graduates were employed. age and average age of corporate values and development In the future the above activities will continue, 1.7.1 of the ROSATOM production system. and there will be new objectives. To successfully 1.7.2 The HR management experts implemented successfully meet them, it is necessary that RIAR's employees 44. 8 46. 2 a provision on remuneration of RIAR's employees and management give con dence to HR management with new, more e ective tools for bonuses and KPI services, as trust is the most appreciation 530 and result of high-quality activities. identi cation; the work to raise RIAR subdivision 449 managers' and employees' awareness 433 435 of the motivation tools was also continued. 49. 9 363 326 43. 5 One of the HR management priority areas is leader development at all management levels as well as 2018 — A Year of Science 187 enhancement of a mentorship system. As part 162 121 of the accomplishment of this task, a system is in the Rosatom State Corporation 98 109 initiated for long-term career planning, job rotation 40 Science and life are linked closely and indissolubly, and talent growth. A roadmap for the employment Managers Highly-qualified professionals Workers Office workers of young specialists and trainees is under development. neither of them being absolutely humiliated: the more science serves life, the more life In 2018, three employees of the Institute participated enriches science. Aged 35 or less Aged36 – 50 Aged 51 and more Average age in the competition “Innovative Leader of the Nuclear Industry”. G. Plekhanov 105 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 106

Basic sta categories by year, %

GRI 405-1 Managers Highly-quali ed professionals Workers O ice workers

1.7.2 42. 20 42. 02 41. 41 38. 28 39. 69 33. 67

14. 90 14. 92 11. 96 088. 10. 00 10. 07

2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018

61. 79 Women Men

49. 33 48. 86 48. 53 45. 11 40. 91 35. 18 32. 41 30. 09

Sex 27. 35 26. 27 24. 00 25. 57 18.1796 04 . 20. 14 13. 21 870. 882. 918. 215. 022. 309. 308. 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018

55. 38 Aged 35 or less Aged36 – 50 Aged 51 and more

42. 71 43. 41 43. 74 42. 15 40. 75 41. 55 41. 57 39. 64 38. 77 40. 11 37. 33 38. 39 38. 35 38. 56 34. 58 35. 22 30. 27

Age 17. 93 17. 53 16. 74 15. 63 15. 98 14. 36 14. 66 14. 23 933. 846. 869. 855. 478. 374. 471. 020. 067. 133. 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 107 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 108

GRI GRI One of the key components illustrating Total labor force Staff turnover 401-1 102-38 Decimal coe icient by year 401-3 social tension among the staff by the contract type by age and sex members is a decimal coefficient 2.5.10 97. 73 % 2. 27 % 1.7.2 2.10.2 that describes contrast in wages 492. between 10 % high-paid and 10 % 490. 450. low-paid staff. The world's best practice 9,48 considers this coefficient ranged 9,38 from four to six to be optimal.

Dismissed, % 7,52 In recent years RIAR has the optimal 3,50 decimal coefficient. 2,08 2,07 Aged 35 or less Aged36 – 50 Aged 51 and more 2016 2017 2018 Primary employment Women Fixed-term employment Men Labor productivity by year, Average wage by year, thou. rubles / persons thou. rubles Sta by sex Staff by age 58. 9 1350 1358 1 514 1 699 1275 1 491 1 613 52. 6 43. 6 1 135 1 115 1 128 40. 5 2 234 2233 2 240 864 860 850

1 115 1100 1013

2016 2017 2018 2016 2017 2018 2016 2017 2018 2019 Women Men Aged 35 or less Aged36 – 50 Aged 51 and more

Remuneration Wage structure at JSC “SSC RIAR”

22 The remuneration system no difference between the men's GRI 405-2 • Basic wage of JSC “SSC RIAR” and employee benefits and women's basic salary. The Institute Fixed wage • Increment are targeted at compensation in exchange exercises its best efforts to assess of good production and economic the outputs of its employees in a decent outputs, performance enhancement way, that's why RIAR offers competitive • Performance bonuses and professional development. minimum and average wages. Incentives • KPI bonuses GRI In accordance with the industry's • Priority task bonuses 202-1 A provision on remuneration at RIAR is agreement on nuclear power, industry based on the Unified remuneration system Wage and science for the period of 2018–2020, Compensation • Irregular work bonuses (URS). One of the remuneration basic RIAR undertakes to set the minimum payments • State secret bonuses principles is providing equal opportunities wages at the 1.3 living wage that made up for different age-sex groups. Salaries 13 042 rubles. In 2018, there was of the staff members depend on their a positive trend in the average Others position, professional capabilities monthly wage growth. and outputs. At that, there is 109 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 110

Staff expenses structure GRI 202-2 HR management strategy at JSC “SSC RIAR” Value by year, million rubles Indicator 2.5.6 Human resourcing: 2017 2018 2019 l RIAR is provided with highly-qualified and skilled professionals through attracting best experts, Sta expenses 2 260. 2 2 693. 3 3 024. 6 staff efficient selection, training and development, implementation of the integrated assessment system Including: and career planning; l Payroll 1 688. 9 2 007. 6 2 250. 0 The talent-pool development program is enhanced to make well-arranged selection and appointment of the candidates to the key positions using RIAR's own internal talent pool; compiled are succession plans Social expenses 28. 7 40. 0 54. 4 for the critical positions; Staff recruitment and development expenses 53. 54. 90. l A knowledge management system is implemented and motivation is provided to keep and transfer the key knowledge to young professionals using the mentorship system. Other staff expenses 08. 13. 44. 536. 5 639. 0 706. 8 Enhancement of HR management efficiency: Taxes (insurances) l The unified HR management system is under operation making the following processes computer-aided: keeping the organizational structure and schedule; HR management; working time schedule and recording; social programs implementation; rewards management; employee performance management; analytics and statistical reporting; service rendering to the employees; implementation of a pilot project — average of the Social Insurance Fund of the Russian Federation; +21. 0 % wage growth l Involvement in the projects on introducing the ROSATOM production system, thus enabling HR services to be improved, and their work to be arranged in a more efficient way; l Reduction in the staff expenses including reduced travel costs. — sta expenses Corporate culture development: 2 693. 3 l Use of the ROSATOM values to attract professionals and build their career; mln rubles l Participation in the surveys on the ROSATOM staff engagement rate 14 920 — minimum wage rubles HR management regulating documents 3.2.4 l Labor Code of the Russian Federation l Agreement on nuclear power, industry and science for the period of 2018–2020 l Single industry-based procedure on staff performance management HUMAN CAPITAL in the ROSATOM State Corporation and its organizations l Single industry-based procedure on career and succession management in the ROSATOM State Corporation and its organizations MANAGEMENT l Single industry-based procedure on occupational standards in the ROSATOM State Corporation and its organizations GRI The most precious RIAR's value is of ROSATOM. It is human resourcing 102-16 l a tight-knit team of highly-qualified that ensures viable business aiming Code of Ethics and Staff Conduct of JSC “Science and Innovations” and organizations under its supervision professionals who help the Institute at a maximized shareholder value of RIAR, l Single industry-based social policy of the ROSATOM State Corporation and its organizations 3.2.4 to achieve good results over all these its fully functional business model l Charter of JSC “SSC RIAR” years. That is why the key components within the scope of strategic objectives, l Internal work regulations for JSC “SSC RIAR” staff members of RIAR's social policy are staff training, as well as a considerable growth l development, motivation, social programs in the business scope and profitability due Standard of Enterprise STO KP 086-416-2016 “Integrated Management System of JSC “SSC RIAR”. HR Management” and social responsibility. All these aspects to human capital augmentation, are set forth in a collective bargaining which implies both an increased number l Provision on performance appraisal of JSC “SSC RIAR” staff members GRI l GRI 102-41 agreement, which is applicable to all staff of the staff and competencies building, Collective bargaining agreement between JSC “SSC RIAR” and its staff members (effective 2018–2021) 102-41 403-1 members of the Institute. The human career and professional development, l Main provisions on work arrangement for JSC “SSC RIAR” staff members capital management strategy is based and better working conditions. l Procedure on interaction between JSC “SSC RIAR” subdivisions during staff training arrangement on the RIAR's mission and the top priorities 111 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 112

Social policy industry-based agreement and collective Labor relations management goals bargaining agreement to keep working at JSC “SSC RIAR” and corporate culture positions. Within the framework Establish a system of social and labor relations contributing In compliance with the labor laws, the labor of the common social policy of ROSATOM greatly to stable and productive work, successful relations at RIAR are regulated by a collective and corporate social programs, development, social prestige and business reputation RIAR annually increases expenses. GRI bargaining agreement for all staff members. Establish social and labor rights and guarantees improving 102-41 the position of employees in relation to the current legislation 403-1 The Institute provides employment for each 413-1 of its staff members under the employment JSC “SSC RIAR” is a member of the All-Russian Raise living standards of employees and members contract and acts in accordance with Association of Employers “Union of Employers GRI of their families 102-13 the Russian law, the Charter of RIAR, of the Nuclear Industry, Energy and Science Create a favorable psychological climate of Russia” Implement the principles of social partnership and mutual responsibility of the parties GRI 201-3 Social expenses in 2018 Actual expenses, 2.10.1 Indicator thou. rubles Housing program In 2018, 17 employees received HR related expenses: 29 913. 5 a reimbursement of the rental cost totaling GRI RIAR continued the implementation Cultural and sport events 415 413-1 367 thou. rubles of a housing program launched in 2015 Sanatorium treatment, recreation for children 10 373. 5 to attract young professionals and improve Housing improvement 367 living conditions of employees. This program Prospects Financial assistance and one-time payments 8 844 enables young professionals and highly- From 2019, the RIAR's employees will be able Healthcare 7456 qualified experts to get assistance in case to get assistance in the form of a special- Cultural and sport events arranged by the primary trade union of living in the temporary housing: dormito- purpose loan to make initial credit payment organization 2 458 ries, corporate or rented flats. and purchase a permanent housing. Unemployed retirees related expenses: 8 585. 3 Financial assistance and one-time payments 4332 Health enhancement paigns were arranged for children Treatment at the RIAR's health resort center 4 253. 3 of the RIAR's staff members in the health Annually, RIAR performs rehabilitation Non-HR related expenses: 1 498 resort center, and 163 vouchers activities in a health resort center under to the children health holiday camps Other expenses for trade union organizations 1 498 GRI its supervision for its staff members in Dimitrovgrad and Ulyanovsk region were 201-3 and unemployed retirees. Under the health *TOTAL bought for a total amount of 2.2 mln rubles. 39 997 enhancement program, four health cam- * Excluding insurance payments, healthy meals and charity. Medical services under the voluntary health insurance program — share of employees covered by the collective bargaining agreement Outpatient Inpatient 100 % care care

GRI 102-41 A new collective bargaining agreement was signed between Rehabilitation Dental the employer and employees of JSC “SSC RIAR” for 2018–2021 and remedial care treatment GRI 402-1 Any change in the activity of RIAR conditions or reduced staff number, could only and its subdivisions including liquidation, change be possible after prior notice at least three months — expenses medical services in ownership or legal form, full or partial suspension before such changes take place for medical received 74. of production resulting in worse working 1 820 mln rubles services 113 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 114

GRI Memorial”. Under a signed bilateral Particular attention should be paid Among particularly significant events in 2018 413-1 Corporate culture agreement, concerts are held for RIAR's to success of a RIAR's art and handcraft were: the regional geographic festival 57 The Slavsky Conference Center (a unit employees by the Ulyanovsk State Academic club “Atominka”. In cooperation with other “Frigate Pallada”, the third all-Russian of JSC “SSC RIAR”) is the key venue of local Symphony Orchestra and other well-known Dimitrovgrad handcraft clubs several contest “The Golden Grain of Russia”, and regional cultural, scientific and 3.26.1 groups. One more time the Slavsky handmade fairs were arranged that became “Meetings of Generations” of journalists 3.26.2 educational events. It houses the RIAR's th Conference Center performed great entertainment events. Traditionally, dedicated to the 100 anniversary 3.26.3 Veterans Board, a hobby club, and children's 3.27.5 an international music festival “World, Epoch, some funds received from these fairs were of the city newspaper “Dimitrovgrad”, ensembles. To enhance the corporate Names…”. Such events are very popular given for charity. Memorial Days of Archimandrite Gabriel. o culture and social partnership, young among the citizens. y professionals meetings take place there, Mutually beneficial cooperation continued Special attention was paid to site as well as research meetings, workshops, RIAR held the annual children's festival between RIAR and municipal and regional improvements such as greening. In 2018, festivals, and cultural events including “The Future is Ours” that was confined administrations, public organizations, RIAR's staff members with representatives industry-wide events (“Rosatom Culture to the Children's Day and attended by more cultural and educational departments, mass of nongovernmental organizations and local and regional authorities planted mountain Territory”, “Open-Air Museum”). The highlight than 100 young dancers, reciters and media, and Melekess eparchy. This ash trees, oaks and birch trees. of the year was a gala night dedicated singers from Dimitrovgrad. The festival cooperation is aimed at strengthening th was a bright event for our city; it won to the 30 anniversary of the Slavsky and developing the culture of society a huge audience and gained great interest Conference Center; it was attended and the younger generation. I JSC “SSC RIAR” by painters, local and regional creative among the participants. composed its own anthem communities, RIAR's veterans, staff Another important event initiated members, Dimitrovgrad companies' managers, by the ROSATOM Public Council was RIAR's partners and nongovernmental the municipal phase of an All-Russian organizations. Among significant events creativity contest to perpetuate the living history of the emergence and development Events to develop the corporate of the year there were also the following culture and interact with stakeholders: ones: of the Russian nuclear industry. The contest l All-Russian Conference for young main objectives were to transfer researchers “R&D to ensure the knowledge and best practices from internal corporate events the development of new generation older generations to the younger ones 28 nuclear technologies”; and educate young people for allegiance visits of foreign delegations l XX Russian Conference “Safety to the country, respect for older generations, 16 and pride in the Russian nuclear industry of Research Nuclear Facilities”; concerts and performances l Workshop on current issues achievements. Over 160 schoolchildren from 61 in the pyrochemical processing Dimitrovgrad took part in this event meetings and hearings of the irradiated nuclear fuel; arranged for the third time. 20 l Extended meeting of the trade union In 2018, fruitful cooperation continued committee on the occasion 13 events of regional authorities th between RIAR and Nuclear Energy of the 70 anniversary of the Russian Information Center of Ulyanovsk to include Trade Union of the Workers of Nuclear different events, such as film showing, 15 exhibitions and expositions Power Engineering and Industry; interactive playgrounds, regional forums, l “Meeting of Generations” coincided th tours, performance of RIAR's staff members, with the 100 anniversary of the All-Union and educational quests for the employees' Leninist Young Communist League. children. Staff engagement Staff engagement rate by year 1.7.3 Traditional meetings between the Director In 2018, RIAR's staff members participated of JSC “SSC RIAR” and the Institute's Annually, the Institute conducts in the regional phase of the All-Russian an engagement survey “Your opinion 8%5 employees were held in July and December physical culture campaign “Ready for Labor 84 % 83 % within the framework of Director's Days. is important to Rosatom”, which is the key and Defense”. RIAR's employees who are indicator of work satisfaction of RIAR's staff 75 % The Institute's anthem composed in 2018 was engaged in sports activities initiated members. In 2018, questionnaires were 68 % officially sounded at the celebration and coarranged the whole range of local distributed among 672 staff members of the Nuclear Industry Employee's Day sport events. In particular, a Dimitrovgrad from 19 RIAR's subdivisions. The results at the Slavsky Conference Center. minifootball team with RIAR's staff members obtained from these questionnaires In 2018, the cooperation continued between has been very successful. Traditionally, and focus groups are used by the RIAR's the Institute and the Regional State the Institute's employees became winners management to compile annual plans 2014 2015 2016 2017 2018 Autonomous Institution of Culture “Lenin of regional chess tournaments. on improving the engagement rate. 115 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 116

In accordance with the survey results, ● implementation of voluntary health To create conditions attractive for recent include, for example, open days and career RIAR's staff members are most satisfied insurance and housing programs. graduates including advanced training fairs arranged in Dimitrovgrad, Ulyanovsk, with such factors as “Interaction”, “Scope and mastering skills, transfer of knowledge and Kazan on the basis of MEPhI, UlSU, of work”, “Line manager”, “Employer brand”, Survey results and experience by leading professionals, UlSTU, Kazan State Power Engineering “Work/personal life balance” RIAR has an established and successfully University, etc. The RIAR's management, and “Independence”. Among the Institute's by engagement factors, % functioning Board of Young Professionals HR Office and PR Department's professionals strengths, employees note a decent wage Engagement 83 that represents the interests of young are greatly involved in such campaigns. at the regional level, high production culture, employees. The scientific and engineering This interaction with young people will human potential and team, presence Employer brand 73 unit under this Board is targeted provide further RIAR staffing with local of social facilities (the Slavsky Conference at providing assistance to the young population. Keeping this objective in mind, Center, health resort center). Some Industry top management 58 employees in mastering their job, RIAR arranges regular technical visits respondents point out that they feel 3.26.3 Division top management 53 and acquiring hands-on experience that to its site. Every year schoolchildren a special sense of pride in the fact contribute to fast technical and business and students of Dimitrovgrad, Ulyanovsk that the Institute is a leading research Institute top management 62 center of the region and the whole industry. career growth. region and other neighboring ones (Samara Line manager In their responses, employees also note 80 To provide the knowledge continuity region, Penza region and the Republic for students, post-graduates and young of Tatarstan) visit RIAR. that RIAR and ROSATOM as a whole Career opportunities 59 have scientific and technical potential professionals, RIAR annually holds contests, The key indicator describing RIAR for a successful development. Training and development 63 forums and conferences. interaction with young people Campaigns involving schoolchildren Events and factors that have a positive Performance management 69 is an employer-sponsored target enrolment influence on the engagement rate: are targeted at their career orientation of school leavers in leading higher ● break-even point and growth Bonuses and acknowledgement 56 and understanding the prospects of training educational institutions to be trained in RIAR-needed specialties. Such campaigns of the Institute's profit associated Interaction 80 in RIAR-relevant specialties. with the implementation of the financial rehabilitation program and, as a result, Independence 72 Number of technical tours by year Number of visitors by year increase in the wage fund; Scope of work ● expansion of the orders and new 84 international contracts, which also 72 862 Enablement 64 68 contribute to improving the financial 65 558 543 situation at RIAR and create a sense Work/personal life balance 72 524 454 of stability; 319 249 249 243 GRI 413-1 Highly-qualified and skilled professionals 31 The key projects on RIAR development and collaborates closely with training 2016 2017 2018 require involvement of highly-qualified and specialized departments. 2016 2017 2018 professionals. Therefore, the RIAR's 2. Mentorship for young specialists (recent Schoolchildren Students Adults 3.26.1 management pays much attention graduates). The employer shall provide to sustainable staffing. There are current social and occupational adaptation The target enrolment is performed and secondary vocational educational programs on interaction with young people for its young employees. For recent and mentorship development, as well graduates and young professionals who in accordance with the collective bargaining institutions. RIAR collaborates with higher as hands-on training of students at RIAR, are hired for the first time a mentor agreement of the Institute. An essential educational institutions in the following key award of young specialist status is appointed. in resolving RIAR-sponsored training areas: nuclear reactors and materials, and immunity grants. 3. Mentorship when transferring the key objective is the interaction with higher chemical process of modern energy At JSC “SSC RIAR” mentorship is carried out knowledge and skills. Scientific management educational institutions. In addition to RIAR's materials, physics, nuclear physics of the post-graduates makes in the following areas: involvement in major educational programs, and engineering, radiation safety. All types it possible to keep and transfer GRI 1. Mentorship for students and trainees. such engagement implies joint R&D. Besides, of hands-on training are performed RIAR conducts all types of hands-on the key knowledge and skills. 102-41 training for students of industry-oriented there are long-term contracts at JSC “SSC RIAR”: introductory, on-the-job, and regional higher educational institu- with Dimitrovgrad schools implementing research, and undergraduate training. tions, secondary vocational educational advanced educational programs establishments, 101 mentors 117 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 118

In 2018, 25 RIAR's professionals were Such abovementioned projects enable of employees in order to ensure compliance only in cases when there is no right engaged in training at MEPhI RIAR to attract young professionals with their occupied or planned positions, candidate in the management talent pool. (Dimitrovgrad branch) and Ulyanovsk on an ongoing basis and to resolve to stimulate advanced training and increase In 2018, three RIAR's employees completed the professionalism of the RIAR's employees. State University (UlSU). To enhance the highly-qualified staffing objective. successfully the development programs An appropriate database of employees the efficiency and perform “ROSATOM's Capital” and “ROSATOM's applying for vacant leadership positions Talents” and defended design works RIAR-sponsored training, there are basic is elaborated. The procedure and time frame in the areas of activity. Two of them departments established in these higher for assessing the development level entered the TOP-10 of the best succession educational institutions headed Number of students trained of professional and technical knowledge candidates of 2016-2018. by Director of JSC “SSC RIAR” (at MEPhI) at JSC “SSC RIAR” and skills of employees is determined by local regulations of the ROSATOM and Chief Scientist of the Research Reactors by year GRI State Corporation and JSC “SSC RIAR”. Complex (at UlSU). The academic council 202-2 GRI To plan the career of key professionals Average training hours 306 404-1 of MEPhI (Dimitrovgrad branch) includes at the Institute, a succession plan is formed by employee categories one employee of JSC “SSC RIAR”. 2.7.1 for leadership and critical positions. Category Men Women In implementing joint R&D projects 354 To date, 23 successors have been approved with higher educational institutions 2018 (with maturities of up to five years). Building Managers 44. 8 26. 3 there is a unique opportunity to involve 2017 and development of the management talent 2016 students in joint research related 510 pool provide wider opportunities for career Professionals 46. 5 36. 4 and professional growth, and increase Workers 61. 5 24. 8 to RIAR activities. in motivation and involvement in the process of professional activities, thus helping RIAR to keep unique experts and gifted employed graduates, 2.6.1 professionals in the nuclear industry post-graduates 2.6.3 2018 — A Year of Science 5 33 7 of them – by target enrolment and reducing the dependence on the job market. The talent pool is a priority source in the Rosatom State Corporation for appointment to vacant or newly Every country is to develop its science. contracts on joint activities students trained established management positions with 21 higher educational If not, this country will inevitably turn on RIAR-sponsored program at the Institute. Outside candidates institutions of the country into a colony. 33 21 are appointed for leadership positions F. Joliot-Curie

GRI 404-2 Staff development As part of enhancing the production culture for industrial safety; occupational health GRI Assessment of professional and technical knowledge and skills 404-3 2.8.1 and safety of JSC “SSC RIAR” in 2018, and safety for managers and specialists; 2.10.3 3.15.1 the Institute's employees underwent physical protection; fire safety; Assessment Number mandatory training, which is determined environmental safety; metrology; transport of persons by the regulatory legal acts of the Russian safety, accounting and control of nuclear Assessment of the basic level of professional and technical knowledge Federation and industry-based regulatory materials, radioactive substances and skills in the field of Total Cost Management and Total Cost documents, as well as training aimed and radioactive waste; official secrets Management Nuclear Construction of employees involved 19 at developing professional and technical protection; construction in nuclear energy in the management of costs and terms for the implementation knowledge and skills. Training programs and industry; procurement activities. of investment and construction projects in the nuclear industry include both professional retraining Every year the Institute assesses Assessment of professional and technical knowledge and skills and advanced training. The main areas the development level of professional of employees involved in the design of nuclear facilities 23 of training: nuclear and radiation safety; and technical knowledge and skills that are not subject to certification in accordance with labor law general and special requirements

Scheduled performance appraisal of: 32 l workers of the services performing the functions of a technical — amount — number of trained customer; 4 sta members 5 443 of expenses 1 683 thou. rubles on training l workers involved in the design of nuclear facilities of the project unit 119 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 120

of occupational injuries and occupational Employees' OCCUPATIONAL diseases; preserve the health of workers; increase labor productivity, additional Health Control motivation and attractiveness of labor. GRI Every year RIAR's employees 102-11 HEALTH & SAFETY Since 2015, there have been no accidents go through periodic medical at JSC “SSC RIAR”. For more than 15 years examinations. Medical examinations GRI 2.10.3 The level of occupational injuries workers that perform work at radiation there have been no fatal accidents. are performed in full compliance 3.15.1 102-11 and occupational diseases has a significant hazardous areas and facilities of JSC 403-2 The indicators of injuries for JSC “SSC RIAR” with the Order of the Ministry 403-3 impact on both the economic and social “SSC RIAR”, individual dosimetric control and its subcontractors, — coefficients component of the enterprise's activities. is organized. Contracts concluded of Healthcare and Social Development of production injuries, occupational diseases, of the Russian Federation. In 2018, Preventive measures increase labor with contractors reflect their obligations lost days, absence at the workplace — 2 535 RIAR's employees who worked 3.2.4 productivity, which generally augments in the field of compliance with OHS are equal to zero. the economic efficiency of JSC “SSC RIAR”. requirements; relevant agreements are in contact with harmful and / or The Institute has introduced the ROSATOM concluded and OHS questionnaires are dangerous substances and occupational unified industrial OHS policy, which defines filled out. Regular checks are conducted factors underwent medical the goals, objectives and main activities to ensure compliance with safety requirements Insurance types examinations. in terms of ensuring safe working conditions when fulfilling works together with contractor's of the reporting period and protecting the health of personnel; representatives. A purposeful activity in this In addition to the annual medical the OHS management system is aimed area allows us to talk about reducing examinations, tumor marker assays to prevent occupational injuries the risks associated with the occupational were performed for men born in 1972 Voluntary health insurance and occupational diseases, and to improve and industrial safety in recent years and older and women born in 1978 the working conditions of the employees. (see Sub-section 2.4. “Risk management ” and older to detect early possible For the seconded persons and contractor's of Section 2). changes due to cancer. The total number Accident insurance of persons examined was 1 491; no cases of occupational diseases Goals and objectives of the OHS management system were detected. Civil liability insurance: In accordance with the system of the three-stage administrative-public Minimization Warning Improvement control, the following schedules of the negative impact of production injuries l Operators of nuclear facilities; of production on the health of sta of labor conditions of activities to control the state l Owners of hazardous of occupational health and safety production facility; at the enterprise were developed: l Operators carrying out transportation l checks to examine compliance Organization and coordination Development of measures Consultation of employees of radioactive substances with the health, radiation, and nuclear materials; of the OHS activities to prevent accidents on OHS issues industrial and fire and occupational diseases l Operators and owners Monitoring for compliance Identi cation of hazardous safety requirements; in the workplace and harmful production factors of hydrotechnical facilities; with legislative and other l meetings with representatives Control of the provision in the workplace l Objects under capital construction regulatory legal acts of the RIAR's subdivisions of workers with individual Reducing the number and under design; on OHS issues as a result of the above checks; and collective protection of occupational diseases l Owners of vehicles equipment and accidents in the workplace l inspections by OHS specialists.

Insurance is actively used for risk of 2018–2020 and Collective Bargaining management. In 2018, various types Agreement of the enterprise for the period of insurance contracts were concluded of 2018-2021. JSC “SSC RIAR” has adopted — insurance persons received for the uninterrupted operation a comprehensive plan of measures 20 080 bonus the OHS training of the enterprise. to prevent personnel injuries during rubles 873 The OHS activities at JSC “SSC RIAR” construction and installation works in the Institute's subdivisions and on its — amount GRI are implemented in compliance — insurance 102-41 with the Agreement on Nuclear Power, territory. The objectives of implementing 9.7 537.7 of expenses 403-1 coverage Industry and Science for the period this plan are to ensure a high level mln rubles thou. rubles on the OHS training 403-4 of production culture; minimize the incidence 121 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 122 4.5. Social Reputation Capital INFORMATION SHARING AND COMMUNICATION LINES

GRI In the field of internal lines of communication in the second quarter, Director of RIAR meets 413-1 with local and regional cultural organizations. JSC “SSC RIAR” continued work on improving with the RIAR's staff to report on the results of To promote a healthy lifestyle, 57 the feedback channels: there is a forum the current activity, identify key tasks the development of sailing and water Anna VOLKOVA (with the possibility to an anonymous 3 and answer questions. Thanks to the recreation, the Project “Corporate Sailing GRI 102-20 4 7 8 question); service "Ask Director"; messages announcement of the event, interest in these Regatta” was successfully implemented. Head of PR Department — Press secretary 91117from specially installed mail-collecting boxes meetings is traditionally high. At the end In the course of the year the PR Department are analyzed; personal receptions of the year, RIAR's Director initiated meetings provides information support for events 2.9.1 of management are held. Among the existing with young employees and heads of various and projects implemented by ROSATOM 3.26.1 channels of communication there is RIAR's departments of the Institute. In particular, during in the territory of nuclear energy enterprise The principles on which the institute's information 3.26.3 policy is based have been and remain to strengthen site, radio, television panels and information these meetings held in a festive and informal presence; regional events of different focus boards, printed communications. setting, the results of the contest for the best public con dence in the nuclear industry, and competitions. transparency of RIAR’s activities and openness engineering and technological, as well as scientific In order to understand the format of obtaining Within the framework of communication to dialogue, focus on high professionalism indicators. division of the enterprise were summed up. information most in- demand by employees, activities printed and video materials In our daily work, we seek to inform interested a sociological survey was conducted, The project to update the information panels on the activities of the Institute were posted parties in a timely manner about all signi cant which showed that workers have an interest in the RIAR's museum exposition was fully in federal and industry-level mass media aspects of our activities, reasonably maintaining in “classic” communication channels — completed: RIAR's specialists added the panels (sites of ROSATOM and Scientific Division, a balance between openness and protecting information boards — much higher than with new archival materials, and improved industry-level Internet resources and printed commercial interests, and respond promptly in messengers, which are widely used today, the interface. An innovation was publications). The staff of the PR Department to media inquiries. in mobile applications, and in social networks. the establishment of a separate excursion has always assisted in the preparation In the reporting year, we actively engaged Therefore, a decision was made to resume schedule for employees of the enterprise: of videos for regional and federal TV channels. with customers, partners, public organizations, the publication of the news-bulletin “Vestnik two days a month, any employee can visit Active interaction with the industry-level authorities and other stakeholders using various RIAR”, the first copies of which were already the museum and exhibition exposition press continued — newspaper and radio communication channels. reviewed by readers. and learn more about RIAR's history. "Country ROSATOM", magazine "Vestnik The number of references in federal, regional, The interactive "RIAR Honor Board" is also Atomprom". For several years cooperation In 2018 two Information Days and two Director industry and city mass media exceeded 500, used: photos and achievements of the RIAR's with the Information Center for Atomic and the number of materials posted, mostly neutral Days were held within the framework best employees are updated on the site twice Energy of the city of Ulyanovsk continues: and positive, amounted to more than 300. of the industry-level project, where the work a year - on the Institute Day and Nuclear educational and research projects results of industry, division and institute were A separate area of our activity is steadily Worker Day. Radio programs are broadcasted are being implemented, excursions are developing — the internal communications system, summed up. The cascading of information, three times a week; there are more than organized, joint competitions are held among involvement of the corporate radio the improvement of corporate culture. In addition a thousand radio stations on the RIAR's site. schoolchildren and students. In particular, to the task of providing high-quality information and the site, more than 90 % of the Institute's Three art exhibitions were held at RIAR for the popularization of science, support to the enterprise's activities, new formats employees were covered. Every year, within the framework of cooperation the achievements of Russian nuclear industry of events are constantly being developed to strengthen and the increase of interest in technical the corporate spirit and organization image. occupations, children's creativity competition The Public Annual Report is another opportunity Institute employee was recognized “Atom is our friend” was held. to provide more information about JSC “SSC RIAR” as the best PR specialist of the Ulyanovsk region not only to consumers and suppliers, but also to general public. I am convinced that the Integrated — employees' questions Annual Report, which most fully and in an accessible are responded press releases Information on publications is presented in more detail way re ects information on the results of our 100 % by Director* 330 in Section 4.2 “Intellectual Capital ”, in RIAR's Annual Reports, institute's activities, on its plans and development on excursions and corporate events — in Section 4.4 prospects, will be useful for increasing “”Human Capital * uringDmeetings with Director the involvement and interest of employees. 123 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 124

GRI 102-21 Criteria of sustainable development PUBLIC STANCE AS External environment Criteria Internal environment TO SUSTAINABLE DEVELOPMENT Economic component of sustainability Investment policy Investments GRI The sustainable development is understood Subsection “Human Capital Management ” Economic situation Financial Monetary policy 102-21 and economic as a single process, characterized in Section 4.4) are the key reference points Tax policy Tax assessment by continuous improvement of financial to identify the key performance indicators. indicators, efficiency gains for use of property Financial policy Financing instruments and full implementation of all organization The environmental component of sustainable Competitors' activity Marketing policy development is ensured by the integrity obligations. The sustainable development Market situation Market Price formation of JSC “SSC RIAR” includes a system and viability of biological and physical natural of consistent work of economic, social systems, environmentally sound development Advertising Policy Advertising and environmental implications contributing of RIAR without any harm being done Scientific and technical progress Use of the latest technologies to the attainment of ROSATOM's strategic to the environment and personnel's health Production capabilities Operating Enhancing production capabilities objectives and further overall development of the Institute. (see Subsection "Environmental Protection " Raw material base Expanding raw material base capacity in Section 4.6), efficient utilization of scarce Business model Governance efficiency natural resources and application Governance Sustainable of the latest environmental, low impact, Social component of sustainability Development Components energy- and material-saving technologies, minimizing environmental impact, obligatory Socio-political situation Political Moral environment in the organization compliance with all requirements Legislation Legal Compliance with requirements of environmental legislation (see Section 4.6 of labor legislation “Natural Capital ”). Staffing situation Staffing Staffing policy, staff development The social component of sustainable and training Social development is targeted at preserving Economic Social policy, providing social stability of existing social and cultural Social situation Social guarantees, availability of social arrangements and reducing a number programs of personal conflicts, building a peaceful open society, interacting with all interested Ecological component of sustainability parties, transparency of activities (see Ecological situation Ecological Application of the best purification Subsection “Stakeholders' Engagement ” and environmental technologies in Section 4.5). Environmental Ecological policy Implementation of measures to protect Particular attention is given to development the environment, compliance of corporate culture, human resources with the requirements of environmental and to interaction with educational legislation, pollution charges and institutions (see Subsection 4.5 “Human penalties for exceeding emissions Capital Management” in Section 4.4). and discharges limits Labor Protection Policy Implementation of measures The economic component of sustainable for occupational and industrial safety development is determined by nuclear, The available research and production radiation and industrial safety, operational capacities, optimization of business, and economic efficiency, increasing its share Public Stance as to Sustainable Development on the national and global markets. Safe efficiency enhancement as well as in partnership with Stakeholders extension of its business range business performance and improved JSC “SSC RIAR” puts great importance In accordance with Standard АА1000 APS production efficiency of RIAR, social benefits and expertise contribute to corporate social responsibility, takes (The AA1000 AccountAbility Principles and guarantees for its employees (see to a long-term stable and sustainable into account the views and opinion of all Standard), JSC “SSC RIAR” demonstrates development of JSC “SSC RIAR” the stakeholders and parties concerned a systematic approach to managing interaction The linkage between sustainable development for analysis and management of the RIAR's with the stakeholders and the parties concerned goals of the organization and key performance and thus being a good evidence business in conformity with the requirements as it is considered to be an important factor indicators is described in more detail in Section of high-level social responsibility. 3.2 "Governance Strengthening " of the AA1000-series international standards. for enhancing management performance 125 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 126

and quality of reporting, identification in Section 4.5), provides information GRI Economic value generation and its distribution among 201-1 of the most critical challenges for sustainable on all the aspects of its business, responds the stakeholders on an annual basis development and thereby enabled to the demands and wishes speedily, timely response to them. According implements consistently the principles Criterion, mln RUB 2016 2017 2018 to the requirements of AA1000SES of corporate information policy by maintaining Generated economic value standard (The AA1000 Stakeholder a proper balance between openness (sales revenue, investment revenues, assets revenues) 5 727. 7 4 755 1. 5 578 2. Engagement Standard) JSC “SSC RIAR” tries and accessibility of information and its to engage stakeholders to the maximum commercial interests. For the purpose Direct economic value generated and distributed: 5 499. 9 4 149. 1 4 884. 0 extent possible and thus to consider of successful implementation Operational expenditures 3 058. 7 1 808. 2 2 083 7. their views and ideas for analysis of RIAR's of transparency policy, all currently available business performance, interaction form of communication such as publication Payroll payments 1 652 2. 1 688. 9 2 007 6. with stakeholders is targeted at advancing of reports (Annual Report, Environmental and other benefits for employees in strategic goals and actions. RIAR in its Compliance Report, Annual Scientific Payment to the providers of funds 154. 8 20,7 – efforts to ensure a high level of openness Report(http://niiar.ru/annual_report) , 578. 1 and transparence in its business, more internet, websites, questionnaires, press Gross tax payments 584. 3 742. 4 predictable and sustainable results conferences, public dialogues, consultations, Investing to communities 56. 1 47. 0 50. 3 in enhancement of public reporting system, arrangement of stakeholders' on-site +227. 8 interacts with its stakeholders purposefully visits, distribution of promotional brochures Undistributed economic value +606. 0 +694. 2 (see Subsection “Stakeholders' Engagement ” etc. are used. The ROSATOM State Atomic Energy of entrepreneurship encouraging Principles set forth in the АА1000 Standards 2.5.6 Corporation in cooperation will make it possible to gain extra 3.1.3 with the Government of the Ulyanovsk region revenues for the budget so that Participation of stakeholders in elaboration of crucial strategic decisions 3.28.1 commenced the implementation of joint to spend them for improving social Engagement with a view to attain sustainable development projects targeted at developing digital and economic conditions in the municipal (see Chapter 2 “Strategy ”) economy and digital public administration entity. A particularly important Evaluation with a view to determine timeliness and signi cance in the Ulyanovsk region. For instance, element of the priority social Importance of the information disclosed to the Company and its stakeholders the ROSATOM State Atomic Energy and economic development area (see Appendix 1 and Subsection “Stakeholders' Engagement ” in Section 4.5) Corporation is involved in a joint large- is an establishing Industrial and Business scale cooperation project together Park “Dimitrovgrad”. It will be situated Responsive measures taken by the Company responding to requests with the Ministry of Health of the Russian in close proximity to the RIAR's site Responding of stakeholders as to its business activities and e ecting sustainable development Federation to establish a lean health center. and create the most favorable performance (see Chapter 3 “Governance », Subsection “ Stakeholders' Engagement ” The project is aimed at introducing conditions for siting innovation-driven in Section 4.5 and Appendix 1) ROSATOM's principles of work management enterprises. in the out-patient medical units. Dimitrovgard was granted a status — is the amount of priority social and economic development of charges paid by RIAR GRI area. This status promotes creating 203-1 881 to all level budgets 203-2 DEVELOPMENT IN THE REGION investment-friendly and urban favorable mln rub and non-budgetary funds 413-1 environments. Such a mechanism

3.26.1 OF RIAR'S BUSINESS PRESENCE 3.26.4 JSC “SSC RIAR” is a major taxpayer and an enterprise JSC “SSC RIAR” puts great importance with social and humanist response to the development in the region of its and with the focus on specific goals and given with a high level of social responsibility business presence because the challenging territories. The ROSATOM State Atomic tasks it has been faced up with call Energy Corporation and the government Promotion of healthy lifestyle and their families in physical exercise for substantial development of the of Ulyanovsk region entered and sport on a regular basis. The staff 3.26.3 infrastructure in Dimitrovgrad and bringing into the cooperation agreement. This Healthy lifestyle activities are targeted members take an active part in sports at further development of a municipal sports and athletic meetings, municipal- and regional- it in conformity with the highest standards agreement opens up new extensive infrastructure to increase a number of public known in the world. Relations with the region opportunities for additional targeted financial level sport events, all-Russian completions going in for sport and access to sports organized by various sport-related, where RIAR undertakes its business activities backing of socially important projects facilities. Physical culture and health are established through the intensive work using tax payments of JSC “SSC RIAR” In volleyball and football tournaments, improving activities are undertaken canoe and catamaran racing, tourist with the local authorities and general public, to the budget of the RF constituent by JSC “SSC RIAR” with a view to promote elaboration and financial backing of projects territories. gatherings, family relay races sports activities and engage employees and cross-country running. 127 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 128

Improvement of housing and utilities Nuclear Innovation Cluster Social events for children under the auspices infrastructure and contribution in Dimitrovgrad 3.21.2 of ROSATOM and JSC “SSC RIAR” 3.22.1 to the beautification of public amenities The Nuclear Innovation Cluster 3.28.1 Ÿ ROSATOM School JSC “SSC RIAR” provides electrical power, in Dimitrovgrad was actively promoted Ÿ International creativity contest “Nuclear Kids” supplies cold and hot water as well as heat and supported by municipal administration of Dimitrovgrad, the Government Ÿ to the western district of Dimitrovgrad. All-Russian creativity contest “Praise pioneering creators” Redundant electric power is supplied of Ulyanovsk region, ROSATOM State Atomic Ÿ Educational social project “Towards the Future” to the unified energy grid of Ulyanovsk region. Energy Corporation, Federal Medical and Biological Agency under the RF Ministry Ÿ The construction of a new neighborhood Children Nuclear Academy housing complex “AcademGorodok” of Health and Social Development. Nowadays the main purpose of the Nuclear Innovation Ÿ ROSATOM Schooler in Dimitrovgrad for researchers and people engaged in Nuclear Innovation Cluster is still Cluster is to develop and enhance Ÿ Amateur Theater Festival “Curtain Up” under way. Housing Complex the innovation-driven R&D territory of presence in Dimitrovgrad. A close Ÿ “AcademGorodok” is a comprehensive International dance solo festival “Zolotoe Zernyshko” development of residential area that cooperation among the parties concerned represents itself low-rise prefabricated creates a favorable climate for investment apartment buildings located in the forestall to implement the program on the Nuclear Promotion of education and culture of JSC “SSC RIAR”, ROSATOM State Atomic area and covers an area of 8 ha. Innovation Cluster development 3.26.2 During the year under report RIAR made Energy Corporation, Federal Medical-Biological The accomplishment of adjacent territory with the focus on three major trends 3.26.3 every effort to advance in networking Agency of Russia, organizations from the town provides for construction of children's of activities: implementation of large-scale with educational establishments of all the types and region, as well as а executive bodies playgrounds and sports grounds, recreation cluster projects within the scope of federal to ensure adequate staffing; setting up of State government authorities and local areas for adult residents and vegetation. target-oriented programs; establishment an advanced library-based center to enhance authorities. Various scientific programs There are parking lots for temporary of social, engineering and transport informational support and IT penetration and cultural events initiated by the ROSATOM parking of cars and bicycles. New apartment infrastructure to create favorable conditions as well as intellectual potential of people; State Atomic Energy Corporation were buildings are equipped with individual for living and optimal conditions for business development of cultural properties. RIAR organized, outstanding musicians performed; heating systems which offer significant doing as well as for beginning small innovative collaborates with 28 higher education famous paintings were exhibited in exhibition savings in paying the utility bills. The ground business and its promotion. By end of 2018 institutions in order to educate and train halls. floors of some apartment buildings are one of the major projects of the Nuclear competent specialists (see Section 4.3 RIAR pays considerable attention to general reserved for commercial facilities. Innovation Cluster that is the construction “Intellectual Capita l” and Section 4.4 improvement and landscaping of its territory: There will be 26 three-floored and five- and launching of the Federal High-Tech Center “Human Capital ”). tree seedlings are regularly planted, work is floored apartment buildings with total area for Medical Radiology has been basically Slavsky Conference Center (a unit of JSC “SSC underway to create a comfortable of 39 ths square meters. at the finish line. RIAR pursues its work RIAR”) is a central place where cultural, environment. The project “Comfortable Urban together with the university departments scientific, educational events of city-, living Environment” continued in 2018 for medicine, science and technology More than region- specific relevance are held. Different attended performances, in Dimitrovgrad. The primary goal of this of the Volga Federal Region and the Russian workshops, conferences, negotiations, concerts, meet-the-artist project is to provide necessary conditions meetings, business meetings were traditionally events, exhibitions for promoting and improving the quality held during the year under report at Slavsky 45 and festivals participants and well-being in the urban environment Conference Center with the participation thousand people (see Section 4.4 “Human Capital ”). 60 of Cluster Joint projects sponsored by ROSATOM, Interaction with suppliers key projects JSC “SSC RIAR” and local and contractors in the RIAR's and regional administration business presence 15 Ÿ Interregional Forum “Innovative Nuclear Medicine The construction of multi-purpose Technologies in the XXI century” fast research reactor and multifunctional of investments Ÿ Regional Geographic Festival “Frigate "Pallada"” research module for spent fuel reprocessing 40 with the use radiochemical methods billion RUB Ÿ Christmas and Easter Charity Festivals stimulates the creation of new jobs. Ÿ Some staff members are hired from the local OV icial web-site of the Independent Non- International Festival “Theatrical AtomGrad” proW t Organization “Centre for Development Ÿ residents who live in the Ulyanovsk region. International Festival “Peace, era, names…” Each job in the construction of the aforesaid of Nuclear Innovation Cluster”: http://cluster-dgrad.ru/rus/ Ÿ Creativity shopping festival “Atominka” facilities actually provides opportunities Cluster social networking page: Ÿ Project “Creation of comfortable urban environment” for creating another 10 to 12 jobs in the allied industries. https://www.facebook.com/crk.dgrad 129 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 130

Ministry of Health for human resourcing for Economic Development targeted and staffing support of the Nuclear Cluster at small- and medium-size business support. Foreign Participants of the Nuclear Innovation Cluster projects. Staff members of JSC “SSC RIAR” participated in educational training courses provided by the designated company http://www.franceclusters.fr of the Nuclear Cluster. 2018 — A Year of Science France Clusters France Clusters The Nuclear Innovation Cluster is in the list in the ROSATOM State Corporation of Pilot Innovation- Driven Territorial INTER-MEDICO Clusters. It is supported by the Center INTER- MEDICO GmbH http://www.intermedico.de The job of science is to serve people. GmbH for Nuclear Innovation Cluster Development L. Tolstoy under the program of the RF Ministry NANOPROGRES Unique The only research complex in the country and one of the few in the world NANOPROGRES http://www.nanoprogres.cz infrastructure with research reactors, materials science and radiochemical laboratories Company base to solve a wide range of tasks

Rich National Cluster National Cluster Signi cant number of experimental data related to neutron irradiation, http://www.nca.cz experimental Association Association base reactor material science, and allied elds of research

RAMON Science RAMON Science Single-area http://www.ramon.com.cn) research work Concentration of highly skilled specialists & Technology Co. & Technology Co.

Experience Work on international projects, including in working groups Slovak Innovation Slovak Innovation in international and organizing committees, research and development work http://www.siea.sk cooperation under international contracts and Energy Agency and Energy Agency

Production Production of pharmaceuticals for the Federal Center for Medical Radiology of Federal Le-Marc Le- Marc of radionuclides Medical-Biological Agency of Russia (proton and radionuclide oncotherapy) Projektmanagement Projektmanagement http:// www . le - marc . com / GmbH GmbH Strategic Strategy of social and economic development of the municipal unit planning “The city of Dimitrovgrad” up to 2025; of Ulyanovsk region Frankfurt Innovation Frankfurt Innovation and Volga federal district for the period up to 2020 Center Biotechnology Center Biotechnology http:// www . W z - biotech . de GmbH JSC RIAR” “SSC the forms Cluster core GmbH State Financing Guarantee Participation in federal special-purpose programs Plans

Long-term plans for the implementation Research Reactor and Materials Science Major Projects of cluster interaction, the center Research and Development Center, of which is JSC “SSC RIAR”, are related to the cooperation with the Russian Federal of the Nuclear Innovation Cluster to the expansion of non-energy areas Medical and Biological Agency in the field Ÿ Construction and launching of the Federal High-Tech Center of nuclear technologies application, of radiology (nuclear medicine), development for Medical Radiology increased international cooperation of infrastructure, research consortium, on the basis of Multipurpose Fast exploratory research programs. Ÿ Set up of Research and Production Complex for Radio-Pharmaceuticals and Medical-Use Products More detailed information Ÿ Construction of Multifunctional Radiochemical 2018 — A Year of Science about major projects implemented Research Complex in the ROSATOM State Corporation by the Nuclear Innovation Cluster is available on its official web-site Ÿ Construction of Multipurpose Fast Research Reactor The real and legitimate goal of the sciences (http://cluster-dgrad.ru/rus/proekty-klastera) is the endowment of human life with new inventions and riches. F Bacon. 131 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 132

GRI GRI 102-12 102-40 Ranking map of RIAR's stakeholders 102-21 STAKEHOLDERS' 102-42 102-31 102-32 ROSATOM State Corporation 102-42 2,0 102-43 JSC “Science ENGAGEMENT Russian Partners 55 and Innovations” 1,5

3.27.2 The members Public 1,0 International of RIAR Committee organizations partners 0,5 for Public Reporting express their gratitude to those who 0 have shown their interest Mass media Top management in company activities and read this Report Population Staff Index of the stakeholder influence on the company The system of interaction of integrated reports drafting. The analysis Scientific Authorities Index of the company influence with stakeholders affects significantly results show that the partners have and educational institutions on the stakeholders the development of JSC “SSC RIAR”; a great influence on the directions therefore, consideration of stakeholders' of RIAR's activities (see Chapter 2 In the course of Report drafting, For more detailed information interests in strategic planning is “Strategy ” and Chapter 4 “ Outputs ”). as in previous reporting years, about the activities and involvement an important condition of sustainable Year by year transparency, openness a great deal of work has been done both of the Committee for Public Reporting Activities, Stakeholder Commission development. and public acceptance of RIAR activities by RIAR's professionals and stakeholders' and authorized RIAR's subdivisions are being improved. representatives. RIAR communicates The development of stakeholders' effectively with all stakeholders in the public reporting system development please refer to Annual Report 2014 engagement forms and methods, analysis Thanks to close cooperation by providing in time important information and consideration of their requests enable with the stakeholders and their interest (http://niiar.ru/sites/default/files/pgo2014_ about all activity aspects and responding ln_29062015_c_ssylkami_0.pdf) timely feedback to any possible risk related in company activities within the engagement to stakeholders' requests and wishes. to stakeholders' engagement, particularly framework we reach the understanding in view of social aspects and reputation. of perspectives of future collaboration In the reporting year a ranking map was and RIAR's activity trends. updated based on the survey conducted Regulatory system Functioning of the public reporting system of public reporting among top and senior managers is generally provided by the Committee of JSC “SSC RIAR”, and representatives for Public Reporting Activities Ÿ of the major groups of stakeholders. Provision on the Stakeholder Commission and PR Department. Various divisions in Public Reporting of JSC “SSC RIAR” RIAR has set forth its public stance on all of JSC “SSC RIAR” are responsible Ÿ Provision on the Committee activity aspects to provide a high level for drafting annual public reports; of openness and transparency of its the responsibility is not documented for Public Annual Reporting of JSC “SSC RIAR” activities to stakeholders. During these in the KPI maps of all division heads. Ÿ Standard of Enterprise STO 086-202-2016 years a public reporting system has been “Integrated Management System developed and is still being enhanced. of JSC “SSC RIAR”. Integrated Annual Report Dra ing Procedure” The analysis of a change in the reciprocal For more details related to the public influence between the stakeholders reporting system development see and RIAR is conducted from the beginning Public Reports 2011–2017 (http://niiar.ru ) 133 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 134

Public reporting system improvement

Committee for Public Reporting Activities Object Results of the year Chairperson— Director of JSC “SSC RIAR” Ÿ Issue of an order on activities for dra ing Annual Report and approval of the Report concept,

es work plan, schedule, and terms of reference to provide information for the Report. Ÿ An Order on approval of the updated Stakeholder Commission membership and schedule PR Department of activities involving stakeholders for the period of Report dra ing has been issued. Ÿ Improving a system for information collection and treatment in order to le reporting data

t

Challeng in accordance with the international integrated reporting standards.

Regulatory Ÿ Updating regulatory documents on public reporting, taking into account new international Subdivisions of JSC “SSC RIAR” standards: provisions on the Stakeholder Commission in Public Reporting of JSC “SSC RIAR” and on the Committee for Public Annual Reporting of JSC “SSC RIAR”, as well as standard of Enterprise STO 086-202-2016 (Rev. of 26.11.2018) “Integrated Management System and methodological system of JSC “SSC RIAR”. Integrated Annual Report Dra ing Procedure” Ÿ Analysis of Russian and foreign annual reports, analytical reports of the Russian regional Expert evaluation, GRI International standards Technical network on public reporting. 102-54 and guidelines requesting stakeholders Sta of information assistance Ÿ Participation in public reporting consultative workshops Laws and regulations materiality, Training Ÿ Issue Reports according to new GRI Standards. of the RF in corporate reporting GRI assistance Ÿ 102-54 es and nancial reporting recommendations Dialogue with stakeholders' representatives on key aspects of RIAR's activities. Audit

ystem developmen ystem Regulatory documents Ÿ Increased involvement rate of the stakeholders' representatives in dra ing the Report. Communication sites of ROSATOM State Report dra ing Ÿ Improving the utility of the information presented in the Report. Corporation (mass media, Dra ing conferences, Ÿ Improving the quality of Report design and wording. Objectiv Regulatory documents and promotion exhibitions, etc.) of JSC “SSC RIAR” of the annual report, Ÿ Broadening the range of stakeholders including foreign ones involved in Report dra ing. in public reporting PR Annual public reporting contest Ÿ Establishment the long-term partnerships with major stakeholders. Ÿ Updating the list of major stakeholder groups. Ÿ Stakeholders Using the Report as a reference and analytical information source Ÿ Ÿ ROSATOM Top management Ÿ Questioning of stakeholders and survey of RIAR's top management to identify signi cant Ÿ Managing Company JSC Ÿ Sta (employees) aspects of RIAR's activities as well as reciprocal in uences between RIAR and stakeholders. Veri ers

Public reporting s reporting Public “Science and Innovations” Ÿ Scienti c and Ÿ Surveys on utility and quality of the information contained in the Report. Ÿ Russian partners educational Ÿ Questionnaires and surveys on updating the Report priority topics. (Customers, Suppliers, institutions Ÿ Surveys among the RIAR's sta to identify the Report readability index. Subcontractors) Ÿ Surveys Population of the Ÿ Ÿ International Partners presence regions Questionnaires to identify stakeholders' expectations and wishes.

Stakeholder and questionnaires Ÿ Ÿ Regional authorities Ÿ Mass media Testing of best practices in dra ing and designing public reports as well as Results Commission in the interaction with stakeholders (Ulyanovsk region and Ÿ Public organizations Dimitrovgrad) Ÿ Publication at RIAR's o icial website(),http://www.niiar.ru/annual_report in mass media, addressed mailing, distribution at forums, scienti c conferences, exhibitions, meetings with business partners, etc. Ÿ Participation in Russian public reporting contests: Plans Ÿ Rating of Annual Reports among ROSATOM's enterprises: 2nd place in the category “Best Annual Public Report of ROSATOM Division Organizations”; Ÿ To issue Reports according to new Ÿ To introduce new reporting formats. 7th placein the overall rating; 1 0 th place in the nomination “The best Public Report according GRI Standards. Ÿ To participate in industry and Russian to the Stakeholders' opinion”; Ÿ To increase the rate of stakeholders' corporate reporting competitions. Promotion Ÿ Survey of Corporate Transparency of the Major Russian Companies conducted by the Russian regional reporting network: involvement in Report drafting activities. th Ÿ To promote the Report on the 16 place,;transparency level I (56.15 points) Ÿ To analyze the best practices in drafting organization territory. Ÿ Expert-RA rating agency:5 stars out of 5 rating classes: “5 stars— the highest quality of the and designing public reports. Ÿ Participation of report-related specialists annual report”—— “1 star satisfactory quality of the annual report” Ÿ To increase the Report usefulness for readers. in workshops. 135 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 136

GRI Events with stakeholders 102-44 Engagement in Report Drafting 3.23.4 Event Location and date The stakeholders were involved in all of stakeholders, during which the main 3.27.1 milestones of Annual Report 2018 drafting results of the reporting year, information Scientific and technical workshop “Enhancing Experimental Support for Advancements in Nuclear France, January 8–11 from shaping its concept to discussions on the social and environmental policy Fuels and Materials” of the final draft. They had an opportunity and plans for the future were presented Meeting of regional young scientists board Ulyanovsk, January 24 to give their requests and recommendations by the RIAR's top management, socially Russian-Japanese workshop on decommissioning and site remediation Tokyo, Japan, January as well as ask questions. In the course significant aspects of RIAR's activities planned of the Fukushima Daiichi Nuclear Power Station of Report drafting in accordance for disclosure in the report, and the priority Meeting on social and economic development of the city within the framework of the visit Slavsky Conference Center, of the Plenipotentiary Representative of the President of the Russian Federation M. Babich Dimitrovgrad, February with the АА1000 SES Stakeholder topics of the report were discussed. Meeting of the territorial tripartite commission on labor protection Dimitrovgrad, February 1 Engagement Standard the following activities Public representatives highly appreciated Ceremonial event dedicated to the Day of Russian Science Dimitrovgrad, February 9 were arranged involving the representatives the quality of the presented information Interview of the Director of SSC “JSC RIAR” with the Russian news agency “RIA Novosti” News feed, February of all groups of stakeholders: and the organization level of public prior to the Day of Russian Science Ÿ surveys: reporting in RIAR. Meetings of the Director of SSC “JSC RIAR” with representatives Slavsky Conference Center, - to investigate the reciprocal of RIAR veterans' organization Dimitrovgrad, March 2 influence between the stakeholders Meeting on the federal project “Creating of comfortable urban environment” Dimitrovgrad, March and JSC “SSC RIAR”; Visit of the delegation of Japan Atomic Energy Agency, “Tenex”, “Marubeni Utility Services, Ltd”, JSC “SSC RIAR”, March Stakeholders' Assessment Tohoku University - to identify significant aspects of RIAR's of JSC “SSC RIAR” Report Meeting with Deputy Minister of Industry Slavsky Conference Center, activities, (more than 100 respondents and Trade of the Russian Federation S. Tsyb Dimitrovgrad, March 5 were surveyed, see Appendix 1); 95 % Visit of the delegation of the Expert Council of the State Duma Committee on economic policy, JSC “SSC RIAR”, March 12 - to assess the Report with respect Accessibility industry, innovative development and entrepreneurship, on the development of biotechnology, pharmaceutical and medical industries under the leadership of Chairman Vladimir Gutenev to criteria; Openness 80 % All-Russian Youth Conference “R&D in Provision of Development of New-Generation Nuclear Slavsky Conference Center, Ÿ discussion of the Report concept Technologies” Communication channels quality 60 % Dimitrovgrad, March 27–29 (in absentia, 26 participants); Meeting with Governor Sergei Morozov at the opening ceremony of the second stage Ulyanovsk, March of the nanotechnology center Ÿ meeting with stakeholders (15.03.2019) Clarity 80 % and report drafting activities Workshop of the Interregional Center for the provision of organizational, methodological JSC “SSC RIAR”, March 27 Flexibility 80 % and practical assistance on radiation safety to the population in the Volga region (more than 1 500 participants); General Meeting of Shareholders of CJSC “Isotope Technologies” Minsk, Belarus, March 29 — April 1 Ÿ public consultations on the Report draft Promotion activity 70 % Workshop on MCNP6, OECD/Nuclear Energy Agency Paris, France, March (in absentia, 40 participants). Scientific Workshop within the framework of “Proryv” Project Moscow, March 29–30 Feedback RIAR regularly informs its target audiences 80 % Meetings of Director with the representatives of RIAR's staff JSC “SSC RIAR”, April 01–30 about all important events related to its Rosatom Industry Scientific Conference Moscow Region, April 06–07 Information completeness 82 % Ceremonial event dedicated to the 30th anniversary of Dimitrovgrad town public organization Dimitrovgrad, April 10 primary activities. of war, labor, Armed forces and law enforcement agencies veterans (pensioners) The concept and draft of the Public Report Working visit of Deputy Director General — Director of the Innovation Management Unit JSC “SSC RIAR”, April 2018 were discussed by the stakeholders, of Rosatom State Corporation Yury Olenin, Executive Director of JSC “Science and Innovation” For more information, please see Nikolay Kondratyev, Deputy Director for Human Resources and Organizational Development additionally the public reporting issues were Subsection of this Chapter “Information Ekaterina Rakhmankina brought to the discussion at the events sharing and communication lines” 20th International scientific and technical conference of young specialists “Nuclear Power Plants” Podolsk, April with the participation of a wide range IX Eurasian scientific and technical conference "Strength of heterogeneous structures Moscow, April PROST-2018" Event dedicated to the 62nd anniversary Slavsky Conference Center, Concept of Annual Report 2018 of RIAR's establishment Dimitrovgrad, April 27 Industry Scientific Workshop "Radiation Damage Physics of materials for nuclear engineering” Obninsk, April During the reporting year RIAR continued and a ranking map (see Appendix 1), Industry Conference "People of Rosatom” Moscow, April discussions of the Annual Report concept that reflects the interrelationship between Tenth Anniversary International Forum ATOMEXPO-2018 Sochi, May 14–16 in absentia. The members of the Committee stakeholders and RIAR, and takes Working visit of Executive Vice President and Director of the Division for Strategy JSC “SSC RIAR”, May for Public Reporting Activities and Stakeholder into account wishes related to Report and International Relations of the Japan Atomic Energy Agency, Commission of JSC “SSC RIAR” participated drafting and public reporting system Deputy Managing Director of “Tenex” in these discussions. The Report concept enhancement of those who were polled. XI International Scientific and Technical Conference "Safety, Efficiency and Economics Moscow, May was introduced to the participants based The discussants voiced their recommendations of Nuclear Power Industry" (MNTK-2018) on questionnaire surveys conducted among that contributed to specify and finalize XX Russian Conference JSC “SSC RIAR”, "Safety of Research Nuclear Facilities” May 28 — June 1 the external and internal stakeholders. the Report concept. The concept was Moscow, May The results of these questionnaires were approved by the order of JSC “SSC RIAR” All-Russian Scientific Conference "Welding and Related Technologies for the manufacture of equipment for special and critical purposes" used to compile a relevance matrix issued on January 15, 2019. 137 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 138

Event Location and date EEventvent Location and date

II Industry forum "Safety Day for Nuclear Energy and Industry” Moscow region, June Industry Conference “Closing of the Nuclear Power Fuel Cycle Based on Fast-Neutron Reactors” Tomsk, October Board meeting of Chinese-Russian Joint Venture “Beijing CIAE—RIAR Radioisotope Shenzhen, China, XIII International nuclear forum "Safety nuclear technologies: transportation St. Petersburg, October Technology Co. Ltd.” June of radioactive materials— "ATOMTRANS-2018" Fifth Meeting of the Basic Organization advisory body of the CIS Member States Minsk, Belarus, October Annual scientific and technical workshop on technologies for spent nuclear fuel Moscow, June for information exchange in the area of safety assurance of nuclear research facilities reprocessing and radioactive waste management of thermal and fast neutron reactors Meeting of RAS Council on Heavy Ion Physics Dubna, October 26–27 Meeting of the industry commission for the regulation of social and labor relations Moscow, June Meeting of the interdepartmental working group on attracting federal budget funds to the Ulyanovsk Dimitrovgrad, October 29 Visit of Chinese representatives from “Fangda Carbon New Material”, Tsinghua University, JSC “SSC RIAR”, Region (with the participation of Vladimir Gutenev— First Deputy Chairman of the State Duma Chinese-Russian Joint Venture “Beijing CIAE—RIAR Radioisotope Technology Co. Ltd.” June Committee on Economic Policy, Industry, Innovative Development and Entrepreneurship) Murmansk, June Working meeting of Alexander Tuzov, Director of JSC “SSC RIAR” with Director of the Federal Medical- JSC “SSC RIAR”, November 1 Industry scientific and technical workshop-meeting on "Safety Management System Biological Agency Vladimir Uyba on the prospect of cooperation between organizations in the operation of Nuclear Energy Defense Application" of Federal High-Technology Center for Medical Radiology of FMBA of Russia in Dimitrovgrad Discussion of the prospects for cooperation within the framework of the International Paris, France, July Technical Meeting on the Development and Manufacture of the BRR-2 Research Reactor Nizhny Novgorod, November Research Center, established on the basis of the MBIR reactor for the Bolivian Nuclear Research and Technology Center Workshop-meeting on the support of major projects for the construction of research Vienna, Austria, July Meeting of the Environmental Council on the formation of environmental public expert focus Dimitrovgrad, November nuclear facilities of civil society in Dimitrovgrad and maintenance of urban forests XVI International School-Conference "New Materials: Tolerant Nuclear Fuel” Moscow, November Meeting of Director with the representatives Slavsky Conference Center, of RIAR's staff (Director Day) Dimitrovgrad, July 9 Working visit of JSC "Greenatom" delegation headed by General Director Mikhail Ermolaev JSC “SSC RIAR”, November Assembly of entrepreneurs of nuclear cities—Meeting of business-community representatives Moscow, November Workshop “Rhenium-188 and radiopharmaceuticals based on it. Prospects for development Obninsk, July of cities of Rosatom's enterprises presence and application" Meeting of the Scientific and Technical Council for progress achieved in the preparation Moscow, November Working visit of representatives of the state energy generating company JSC “SSC RIAR”, of JSC “SSC RIAR” information geoecological package of France and operator of nuclear power plants July Working visit of the delegation of the Nuclear Energy Agency of the Organization for Economic JSC “SSC RIAR”, November Industry Conference of Human Resources Management Services Heads Veliky Novgorod, July Cooperation and Development (headed by Deputy Director General Daniel Iracane) Scientific and technical conference "Neutron-physical problems of nuclear energy" Neutronics-2018 "” Obninsk, November Meeting of internal control and audit heads of Rosatom organizations St. Petersburg, July Ulyanovsk, August 25 Industry forum “Leaders of change” Moscow, December 5–7 Competition of professional skill "The best driver of the Ulyanovsk region” Meeting of Director with the representatives of RIAR's staff (Director Day) Slavsky Conference Center, Sosnovy Bor, August 25–29 V International Open Festival of Pure Music “U-235” Dimitrovgrad, December 21 Rock festival “Golden Pines-2018” Dimitrovgrad, September 8 Year 2019 St. Petersburg, September Rosatom Youth Congress Discussion the issues of increasing the efficiency and expanding the radioisotope products sale with JSC “SSC RIAR”, February Slavsky Conference Center, Deputy General Director of “Rusatom Healthcare” JSC Rustam Rakhmatullin Public discussion of materials justifying the license for the operation of the existing facility Dimitrovgrad, Working visit of the delegation of the leaders of ROSATOM and the managing organization JSC JSC “SSC RIAR”, February 5 for the deep burial of liquid radioactive waste of the Federal State Unitary Enterprise September 13 "Science and Innovations” "National Radioactive Waste Management Operator” Prague, Czech Republic, Working visit of the delegation of the Swedish company “Studsvik Nuclear AB” JSC “SSC RIAR”, February International Scientific and Technical Workshop September Days of the Ulyanovsk Region in the Federation Council (exposition) Moscow, February 11-13 on Nuclear Fuel Annual meeting to discuss the status of work on the project to create an International Experimental Saint-Paul-les-Durance, France, 62nd Session of the IAEA General Conference Vienna, Austria, September Thermonuclear Reactor (ITER) February Workshop on SCALE, OECD/Nuclear Energy Agency Paris, France, September 16–22 Meeting of the tripartite commission for the regulation of social and labor relations in Dimitrovgrad Dimitrovgrad, February St. Petersburg, September Workshop “Development of technologies and equipment for the pyrochemical processing of the spent Yekaterinburg, February IX Russian conference with international participation “Radiochemistry-2018” nuclear fuel reactors on fast neutrons” Exhibition "Nuclear Cluster" dedicated Dimitrovgrad, Town Museum Working visit of the leaders of China Isotope and Radiation Corporation and Chinese-Russian Joint JSC “SSC RIAR”, February to the Nuclear Worker Day of Local Lore, September 27 Venture “Beijing CIAE—RIAR Radioisotope Technology Co. Ltd.” Nuclear Worker Day Event Slavsky Conference Center, 3rd International Ural Workshop "Radiation Physics of Metals and Alloys” Yekaterinburg, February Dimitrovgrad, September 28 Informing day. Video conference with Director General of Rosatom State Corporation Alexei Likhachev JSC “SSC RIAR”, March 5 19-th Session of the Commission of CIS Member States on Peaceful Uses of Atomic Energy Bishkek, Kyrgyzstan, September Meeting with stakeholders in celebration of the 63rd anniversary of the founding of JSC “SSC RIAR” JSC “SSC RIAR”, March 15 Meetings of the Scientific and Technical Council of FSBI "Hydrospetsgeology” Moscow, September Meeting of the special-purpose committee of the State Duma on the development of nuclear medicine Dimitrovgrad, March Technical workshop and meeting on the implementation of modern welding technologies Dimitrovgrad, October IAEA Regional Meeting Brussels, Belgium, March Meeting of Director with the representatives of RIAR's staff JSC “SSC RIAR”, March Annual Congress of the European Association of Nuclear Medicine Dusseldorf, Germany, October European Research Reactors Conference (RRFM-2019) Jordan, March International Workshop on Creating a Multinational Infrastructure for Nuclear Fuel Paris, France, October Working visit of the delegation of the National Centre Otwock, Poland, March and Materials Research for Nuclear Research “POLATOM” Radioisotope Centre International Conference “Water Reactor Fuel Performance Meeting” (TopFuel-2018) Prague, Czech Republic, October Workshop-meeting of youth trade union active members of the Russian Trade Union Moscow region, of Nuclear Power and Industry Workers "Vector-2018" October V All-Russian Symposium "Separation and Concentration in Analytical Chemistry Tuapse, October and Radiochemistry" with international participation 139 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 140 4.6.

GRI When drafting this Report, JSC “SSC RIAR” 102-44 Stakeholders' suggestions on the Report drafting took into account all the comments and Natural Capital suggestions of stakeholders participating 3.27.2 In the course of the dialogue and Annual in the dialogue. Report 2018 drafting stakeholders voiced their suggestions and recommendations on the disclosure of this or that information Information on corporate culture development ENVIRONMENTAL POLICY in the Report, improvement of the public and stakeholders' engagement activities is provided in Subsection “Human capital reporting system and interaction management” of Section 4.4. GRI The policy of JSC “SSC RIAR” in the field RF-level strategic documents with stakeholders. 102-11 of ecology (environmental policy) is in the field of environmental protection 6 7 the main document of the organization and environmental safety were adopted, 11 Stakeholders' suggestions made 12 13 15 that declares high-level guidelines and changes in the environmental legislation when drafting report for the environmental protection. were introduced. A new system 2.5.6 It is aimed at the implementation of environmental regulation is put into force, Requests / suggestions Implementation 3.2.4 of the fundamentals of the state policy including general and differentiated on the environmental development requirements. Since 2017, the renewed Describe innovative activities Information is provided in Section: and nuclear and radiation safety version of GOST R ISO 14001-2016 4.3 “Intellectual Capital ” of the Russian Federation. Implementation and the unified industry-level environmental Reflect the environmental information in the report Information is provided in Section of the JSC “SSC RIAR” ecological policy is policy of ROSATOM and its organizations in more detail, given that the Year 2018 was declared 4.6 “Natural Capital” , on the half-title page based on a plan developed in accordance have been in force. Therefore, the task- the Year of Voluntary Ecology in the Ulyanovsk Region of the Scientific Annual Report with the unified industry-level methodical in-hand for 2018 was the update Provide material on risk management Material is provided in Section 2.4 “Risk Management ” instructions for implementation of environmental policy of JSC “SSC RIAR” Provide more detailed information on cooperation, Information is provided in Sections: 1.3 "Position of environmental policy of ROSATOM. and related documents as well plans and results of technological development in the Industry", 2.2 " Strategic Tasks and Goals ", The environmental-related activity of RIAR as the development and performance and long-term leadership in the global market 4.2 “Production Capital ” is conducted regarding the following of the relevant activities. The updated Expand interaction with stakeholders' Information is provided in Sections: 4.4 "Human environmental aspects: energy, water, environmental policy was put into effect representatives Capital", 4.5. “ Social and Reputational Capital ” bio-diversity, products and services, by the RIAR's director order in February allowable emissions and discharges, limits 2018. The scheduled inspection audit Exclude Appendix "Information on compliance The Appendix is not presented of waste generation and disposal, indicators of integrated management system carried with the Corporate Governance Code” of air and water quality, water discharge out in August of the reporting year Place Public Assurance Statement Information is provided in Appendix 1 and water use standards. To achieve by "Russian register" (an independent body into Appendix the performance of environmental-related on management systems certification) Reflect the scientific activity and scientific Information is provided in the Scientific Annual Report activities, JSC “SSC RIAR” took over proved the system conformity to potential of the institute (Year of Science and Sections: 4.2 “Production Capital ”, 4.3 “ Intellectual commitment to implement and maintain international standards ISO 14001: 2015 in the State Corporation) Capital”, taken into account in the design best environmental management practices (GOST R ISO 14001-2016) of the Report and reflected in the text in accordance with international and national and ISO 9001: 2015 (GOST ISO 9001-2015). More detailed information on the capital Information is provided in Section 2.3 standards in the field of environmental and the effectiveness of its use “”Business Model and Capitals management. This commitment is Correlate the wording of RIAR's strategic goals Information is provided in Section “Appendix ”, implemented as an integrated quality with those of UN sustainable and in Subsection “Public Stance as to Sustainable and ecology management system. The text of the environmental policy development Development” of Section 4.5 and in Chapter 2 “ Strategy ” This system is supported in action, is available on the RIAR website: Focus on the leading positions of RIAR among Information is provided in Sections: 4.2 “Production develops in accordance with the principle http://niiar.ru/?q=ecological policy. the ROSATOM enterprises Capital”, 4.3 “ Intellectual Capital ” and in Chapter 2 of continuous improvement; it is effective You can get acquainted with the ecological “”Strategy and meets the international standards activities reports on the: Consider the possibility of issuing Report 2018 The Report was made in accordance GRI requirements. http://niiar.ru/annual_report in accordance with new GRI standards with new GRI standards 102-54

Provide more information on the Key performance Information is provided in Subsection indicators system “Governance strengthening ” of Section 3.2 2018 — A Year of Science RIAR has no imported, exported or reprocessed waste deemed hazardous Issue a short version of the Report prior The short version of the Report was issued in the Rosatom State Corporation the full one and placed on the site prior the full one under the terms of Annex I, II, III and VIII Consider the possibility of either quantitative The suggestion will be considered Ecology is a science of future, and the human's to the Basel Convention. Waste or qualitative comparison of the results in the drafting of Report 2019 existence on our planet would probably depend transported between countries of competing companies in the Russian on its progress. is also absent and international markets F. Dreux 141 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 142

the management system requirements integration GRI 102-11 into the company's business processes. In addition 201-2 ENVIRONMENTAL PROTECTION to the improvement of the management system, 416-1 the practical activities on the implementation Total environmental protection expenditures and investments of the RIAR's environmental policy have been 3.33.1 continued. The amount of non-radioactive pollutant Total expenditures by purpose emissions into the atmosphere over the whole year Payment for services related was within the limits of the e ective permission of environmental activities to the environmental protection (Order No. 1165 of Rosprirodnadzor for the Ulyanovsk in 2018, k RUB region, dated on December 12, 2017). Separate emissions per registered objects having a negative impact on the environment did not exceed 5 tons 38 477 5 414 per year in the absence of Class I and Class II 4 963 455 Andrey VOROBEY substances. This means that the negative impact 259 4 095 GRI is so small that it is not subject to be declared 15 233 102-20 as a form of federal statistical monitoring. Chief Engineer of JSC “SSC RIAR” 2.5.6 4 548 The stable quality was demonstrated during 3.2.4 51 555 120 449 4 540 3.31.1 the operation of the waste water treatment system of the industrial storm sewerage system PLK-1. The project for construction of local sewage water In 2018, the improvement of the integrated treatment plant of the pilot and experimental Waste water collection and treatment management system in quality and environment division has been continued: in 2018 the equipment Investments into environmental was continued. The changes in the international for e luent treatment of the galvanic workshop Waste management protection and rational use standards led to a recerti cation audit, as a result was purchased and installed, the pre-commissioning of natural resources* of which the certi cation authority declared the RIAR's work was started. In 2019, the project Protection and rehabilitation of lands surface and subsurface water integrated management system compliant with implementation will be pursued, it is planned the requirements of ISO 9001:2015 (GOST R ISO 9001-2015) to replace the gas treatment units in all workshops Radiation safety of the environment and ISO 14001:2015 (GOST R ISO 14001-2016) of the pilot and experimental division and to put and issued certi cates of compliance for the period R&D activities and developments into operation the industrial storm waste water 1 842 up to 2021. It should be noted that a new version treatment system. to reduce negative man-caused e ect of GOST R ISO 14001-2016 implies the signi cant on the environment In 2018, the funds provided by the Institute 2 542 changes in the eld of the environmental protection Other areas of environmental activities and response to the environmental change. for current environmental protection activities, payments for environmental protection services This is especially true about the risks Air protection and prevention of climate change 4 384 and opportunities for the environmental aspects and investments made up about 130 million rubles of the RIAR's activities and the commitments that is signi cantly higher than the similar expenses Protection and rational use of water resources undertaken. The eventual emergency and other for the previous year (101.7 million rubles). The amount of investments in 2018 increased more contingency situations that may have negative * In the main capital directed to environmental activities (at the expense of all nancing sources). environmental consequences ought to be identi ed than vefold (from 0.823 million rubles to 4.384 within the scope of environmental management million rubles). system application. In this regard, it is illustrative that no signi cant events occurred at the radiation Waste generation facilities entered into the State Register GRI facilities of the Institute in terms of safety GRI As a result of RIAR production and economic of Waste Disposal Facilities. Delivery 416-1 301-1 assessment and public information according 301-2 activities, nearly 27 types of production of waste to be handed over to special- to the classi cation of the International Scale 2018 — A Year of Science 306-4 and consumption waste generated are Class I-V purpose organizations is made using of Nuclear and Radiological Events (INES) in the Rosatom State Corporation waste. The waste is mostly low-hazardous transport facilities of the organizations for the reporting period. (Class IV) and virtually non-hazardous licensed to conduct waste transport Another signi cant change is the senior Science ought to serve only for the good! (Class V). Waste to be disposed, activities. The ways to dispose waste management role enhancement in demonstrating We do not let it be ahead of the morality. decontaminated or emplaced is sent its leadership and commitment to the environmental correspond to the licenses available to the organizations that hold a license management system and in assuring Jules Verne and types of waste. Data on the amount to conduct waste management activities. of waste are generated based The waste is emplaced at special-purpose on the internal inventory. 143 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 144

GRI Mass of waste transported in the region by type and groups and labor transportation. The transportation transport and reactor facilities VK-50 301-3 Waste referring services are performed using equipped and BOR-60. The increase in heat energy Waste type to Annexes II Waste motor roads and modern vehicles. consumption is explained by lower outside mass, t and VII to the Basel Convention temperature (during the heating period) Mercury, mercury-quartz, luminescent lamps, mercury A1. Metal and metal-containing waste 1.677 with reference to 2017. The reduction thermometers waste, high-pressure sodium lamps Energy efficiency in the consumption of energy resources lost their consumption properties The RIAR power supply system includes was achieved through of the optimization Industrial and motor mineral oil waste А3. Waste comprising mainly organic 1.563 production and consumption of energy of the operation modes of reactors VK-50 elements that can contain metals GRI produced by RIAR, as well as energy and BOR-60: combined production and inorganic materials 302-1 302-2 resources purchased from third-party of electric and thermal energy, repair 302-3 of building contours, optimization of coolant Water-based lubricating uid obtained А4. Waste which can contain 3.5 organizations. JSC "SSC RIAR" 302-4 flow rate in heating and ventilation systems, when working metal nonorganic or organic elements 302-5 does not consume the fuel from renewable sources; in the reporting year and replacement of obsolete power meters. Garbage from o ice and domestic facilities Y46. Waste collected from 741.0 non-renewable fuels were used for motor that is practically harmless; waste (garbage) households from cleaning territory and premises of social- rehabilitation and cultural and sports institutions and from entertainment events Consumption of Purchased Sold heat energy electric energy energy energy JSC “SSC RIAR” neither managers hazardous Dynamics of production waste covered by the Basel Convention and consumption waste + 1.56 % on the Control of Transboundary generation by hazard classes –2.71% –44.33% +18.74% Movements of Hazardous Waste Waste Amount of waste Change in and Their Disposal nor performs hazard generated per year, t waste amount Total fuel consumption from non-renewable sources classes trans-boundary movements of RIAR-owned 2016 2017 2018 2018/2017, t (%) Relative index I 2.312 1.028 1.078 –0.050 (1.05) Energy, GJ Costs, k RUB hazardous waste. The total mass of waste Fuel type 2018 / 2017, % transported per 2018 year (sent for disposal II 0.037 0.053 0.031 –0.022 (0.58) 2016 2017 2018 2016 2017 2018 Energy Costs and decontamination to other organizations) III 1.255 1.950 0.516 –1.434 (0.26) Nuclear fuel 5 169 597 5092631 5 779 924 67 760 102 452 131 096 –13.50 –27.96 deemed hazardous under the terms IV 38.847 309.338 21.6 –287.738 (0.07) Industrial fuel oil 7301 0 0 1064 0 0 0.00 0.00 of Annex I, II, III and VIII to the Basel V 257.672 364.330 1064.3 699.970 (2.92) Diesel fuel 7504 6 042 7928 5601 4969 7937 –31.20 –59.72 Convention makes up 747.74t. Total 300.123 676.669 1087.525 410.856 (1.61) Petrol 2845 2207 2466 2250 2008 2677 –11.76 –33.36 GRI Total 5 187 247 5100880 5790318 76 674 109 429 141 710 –13.51 –29.50 306-2 Waste amounts by hazard classes and type of management Waste amount by hazard classes, t Waste management methods Total energy consumption, GJ I II III IV V Total Relative index Energy type 2016 2017 2018 Transfer from other organizations 0 0 0 0 705.6 705.6 2018 / 2017, % On-site incineration 0 0 0 0 0 0 Bought for consumption 289 122 264 915 147 469 44.33 Transfer to other organizations for disposal Own generation 581 640 1 253 691 1 373 262 –9.54 and deactivation 1.675 0 1.565 3.5 125.3 132.04 Sold to other organizations 460 303 536 684 637 266 –18.74 Transfer to other organizations for emplacement From non-renewable sources 5 187 247 5 100 880 5790318 –13.51 at waste land lls 0 0 0 12,0 939.0 951.0 On-site storage 0 0 0 0 705.6 705.6 Consumption of energy resources per years On-site accumulation 0.523 0.031 0.104 55.8 0 56.458 Costs, k RUB (excluding VAT, Relative index Energy, GJ Energy type reference price 2015) 2018 / 2017, % Consumed materials of which the stability was certified by a third 2016 2017 2018 2016 2017 2018 Energy Costs party is 100%. No significant impact GRI In 2018, the JSC “SSC RIAR” did not conducted Thermal energy on the environment was revealed regarding 384 142 375 012 380 870 124 449.64 120 426.62 120 690.87 –1.56 –0.22 201-2 activities related to the waste processing the transportation of RIAR activities-related Electricity 461 272 461 381 448 891 259 577.19 259 222.01 252 617.13 2.71 2.55 or reuse (deactivation and disposal). products and other goods and materials, The share of purchased or used materials, Total 845 414 836 393 829 761 384 026.83 379 648.63 373 308.00 0.79 1.67 145 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 146

3 GRI Water intake per sources, thou. m Generation of thermal (а ) and electric (b) energy 303-1 303-2 Water consumption Allowable 3.25.1 per reactors and years, GJ by years, Water source Location water VK-50 VK-50 3.29.1 2016 2017 2018 intake 4 144 583 767 543 Surface water used for technical Cheremshan Bay 763351. 866746. 788776. 12 633. 0 4 074 482 848 759 water supply and cooling of the Kuibyshev Reservoir 4 733 906 944 103 Underground water used Mineral resources along 193. 242 207. 544 142. 89 — BOR-60 BOR-60 for drinking, household the bank of the Cheremshan Bay and practical needs of the Kuibyshev Reservoir (well 1 024 770 124 935 from another water gang No. 3) and water intake 1 109 234 138 586 supply system area “Gorka” Recreation center 204. 0601. 0021. 24. 63 934 024 115 387 2016 а b Sewage from other organizations LLC “RIAR– GENERATION” 562 546 221. 66 — 2017 Total 8390792. 9 421. 605 825233. — Output of thermal (а ) and electric (b) energy 2018 per reactors and years because of evaporation. For a part located within the JSC “SSC RIAR” territory VK-50 VK-50 of the technological processes, when there are water use areas on the rivers Yerikla 31 694 Gcal 189.GW·h 391 is a need in cooling water, a straight flow and Bolshoy Cheremshan, in Cheremshan 23 216 Gcal 213.GW·h 224 system is used according to the following Bay of the Kuibyshev reservoir. The impact scheme: surface water (water intake) — of RIAR discharges is insignificant and does 37 604 Gcal 236.GW·h 821 a cooled object — surface water not cause the contamination of habitats as (water discharge). In water recycling well as any changes in the biodiversity. BOR-60 BOR-60 and direct-flow cooling systems technical There were no significant floods detected GRI 29 648 Gcal 18. 249 GW·h water from Cheremshan Bay in 2018. However, the object of protection is 306-3 of the Kuibyshev reservoir is used. quite vulnerable since the RIAR's water 35 425 Gcal 20. 132 GW·h use area is directly located in the Reserve 32 063 Gcal Wastewater discharge and runoff 15. 305 GW·h from the RIAR territory is done through territory. аbthe storm water drainage system into the Cheremshan Bay that is a part GRI of the Cheremshan State Ichthyological You can nd more details about the RIAR's of the Cheremshan Bay from the mouth 304-1 Water intake and waste 304-2 Reserve. The volume of wastewater habitat fauna and ora representatives listed to Dimitrovgrad is more than 60 km, 304-3 discharge over the reporting year made up in the Red Book of Russia: http://niiar.ru/sites/default/ water discharge the maximal width is 14-15 km. The prevailing 304-4 3 306-1 2 271.00 thou. m . The Reserve is intended les/красная%20книга%20России.jpg GRI The RIAR's water sources are the depth is 2–3 m. The depth more than 5 m 102-11 for the preservation and restoration and in the Red Book of the Ulyanovsk region: 303-2 Cheremshan Bay of the Kuibyshev reservoir exists in the Great Cheremshan River bed of the fishing stock of the Kuibyshev http://niiar.ru/sites/default/ les/красная%20книга%20 306-5 and mineral resources, which provide RIAR at the locations of former lakes and hollows. reservoir. It is a shallow well-warmed area Ульяновской%20области.jpg 308-1 with technical and drinking water, The water level is banked up rich in forage reserve and feeding areas Under the program related to preservation respectively. The largest volume of the water from the reservoir: the maximal level makes for young fish. Ichthyofauna is represented intake (97.65 %) is water for technical water up 53.98 m, the minimal level is equal of the Volga population of the imperial eagles by more than 50 fish species, of which 23 is and in order to popularize of the Ulyanovsk region supply and cooling. The volume of water to 47.64 m according to the Baltic height of commercial value. Some representatives consumption in RIAR does not exceed system. The water intake area (well gang natural emblem, a web camera was installed of the ichthyofauna are listed in the Red to observe the life of these birds in the nests. Link the limited values of water intake. No. 3) consists of a number of water intake Book of the Ulyanovsk region (nine-spined to online broadcasting: https://www.ivideon.com/tv/ wells located along the Cheremshan Bay. stickleback and chub) and in the Red Book To get information on water intake, Usually, there is no significant influence camera/100-8Vo2M8hyC9pORlXAOEWvMI/0/?lang=ru water meters are used as well of Russia (European bullhead, Russian spirlin, of technical water intake on the Cheremshan sterlet). The Cheremshan Bay fauna is also as data from the water supplier Bay. In the summer season, there is LLC “RIAR — GENERATION” (wells (gang No. 3) represented by 140 taxonomic groups — the total volume a significant impact on underground drinking of phytoplankton, 30 zooplankton species, are in lease). water (well gang No. 3). of the water intake 25 zoobenthos species. Water ecosystems % from the circulation water The Cheremshan Bay of the Kuibyshev The RIAR water use system provides 306. reservoir is formed by a mouth of the Great for a multiple use of water in the production Cheremshan River, the left tributary process. For certain types of production, GRI — water flow rate in the circulation of the Volga River, and rivers and streams 3 a water reuse is provided with a periodical 303-3 thou. m water supply systems flowing into it. The total length feeding to compensate water losses 257 699 147 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 148

GRI The RIAR activity potentially affects The gamma-radiation exposition dose 304-1 The Cheremshan State Ichthyological Reserve 304-2 the neighboring area 12.5 km in radius. from the ground surface is 4.644 nC/kgH Administrative Melekess district, Ulyanovsk region Based on the many years' experience, (18 R/h). The specific activity of radionuclides area it can be stated about no threat in plants, water and soil is in accordance North-eastern part of the water area of Cheremshan Bay, to the existence of flora and fauna. with the sanitary standards. Location Kuibyshev reservoir (coordinates: 49°51'3 E. and 54°14'9 N) Type of object State Reserve GRI Average indices of water quality 303-2 Area, hectares 2902.0 306-1 in surface water body Regional-level reserve to preserve Place of control Status the sh stock Max acceptable Cheremshan River River concentration*, Regional-level Inspectorate of the Fishery Protection Index Bay Erykla Bolshoy Cheremshan 3 Related regulatory authority mg/dm Background Control Background Background Status Decree # 216 as of March 28, 1985 and decree #303 traverse traverse traverse traverse document as of August 07, 1990 of the Regional Executive Body Concentration, mg/dm3 of: Background value Purpose of establishment Spawning and feeding grounds for commercial sh species Suspended substances 5.2 10.2 4.9 8.7 0.25+0.75* Dissolved oxygen 7.2 6.4 6.4 9.6 More than 6.0 Dry residue 521 433 268 551 1 000 GRI The land area of JSC “SSC RIAR” takes or adjacent to such territories; there is Ammonium ions 0.58 0.36 0.57 0.125 0.5 304-3 304-4 2600.38 hectares. Within the RIAR territory no significant impact of activities, products Nitrate anions 2.8 0.8 1.21 3.0 40.0 more 360 species of higher vascular plants and services of JSC "SSC RIAR" to such Nitrite anions 0.060 0.023 0.051 0.016 0.08 are identified, twelve of them are listed territories. The enterprise is allocated one Sulfate anions 92 41 Less than 50 95 100 in the Red Book of the Ulyanovsk Region. water use site in the protected natural The animal world includes 500 species territory: the north-eastern border Chloride anions 15.7 26.1 Less than 10 11.7 300 GRI of vertebrate and invertebrate animals. of the Cheremshan State Ichthyological 303-2 Forms soluble in water: The reptiles and amphibians fauna includes Reserve is located in the area of the RIAR Iron 0.169 0.25 0.36 0.181 0.100 16 species, of which 2 species are listed water intake. The annual discharge Cooper 0.0010 0.0010 Less than 0.001 Less than 0.001 0.001 in the Red Book of the Ulyanovsk region. of sewage in this water use area is The bird fauna includes 183 species, 2 271.1 thous. m3 ; 42.9 tons of pollutants Zinc 0.002 0.003 Less than 0.005 Less than 0.005 0.010 of which 32 species are listed are discharged together with sewage Chromium in the Red Book of the Ulyanovsk region water, including 23.7 tons of chlorides, chromium (III) Less than 0.01 Less than 0.01 Less than 0.01 0.07 and 14 species are included into the Russian 7.6 tons of organic and 11.5 tons chromium (VI) Less than 0.01 Less than 0.01 Less than 0.01 0.02 Red Book. Three species are in the IUCN of suspended substances. The implemented 3.31.1 Anionic surface active 0.012 0.018 0.012 0.009 – Red List: spotted eagle, imperial eagle measures to manage the impact substances and black-winged pratincole. on biodiversity include reforestation The invertebrate fauna is rather rich. One and cleaning of the sanitary protection Phosphate ions (by Р) 0.130 0.095 0.055 0.053 02. of the largest groups of the invertebrate zones of the Cheremshan Bay Oil and oil products animals is the insect group. The list of most of the Kuibyshev reservoir in dissolved and emulsi ed 0.028 0.029 0.034 0.023 0.05 widespread and frequent insects includes from unauthorized landfills. It is planned state 3 207 species. Some species are listed to introduce mechanical purification Oxidability,О/ mg2 dm : in the Red Book of the Ulyanovsk region of waterstorm sewage discharged Permanganate 4.7 8.3 7.5 4.6 – and four species are in the Red Book into the Bay from the RIAR's site No. 2. Bichromate 15.1 24.7 19.6 14.6 – of Russia: Saga pedo and butterflies Control of the impact includes continuous Biochemical consumption Polyxena, Apollo and Mnemosyne. monitoring of the state of the environment of oxygen, mgО/ dm3 : and ecological risks and periodic 2 There are no production sites that are assessment of the impact for5 days 1.57 2.68 1.77 2.26 2.1 owned, leased or managed by JSC "SSC RIAR" of the enterprise on the environment. for20days 3.2 6.5 3.6 4.9 3.0 and located in protected natural areas and territories with high biodiversity The habitats of flora and fauna pH index 7.8 7.7 7.7 8.2 Background value value that are outside the boundaries in the RIAR-impacted zone are Water t, °С 9.3 21.5 14.6 19.8 – of protected natural territories in a satisfactory ecological state. *.For water objects of commercial shing importance 149 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 150

Polluting substances in discharges methane emissions from sewage water atmospheric emissions from polluting Data on ozone-depleting GRI treatment is carried out according 201-2 3.32.2 in Cheremshan Bay substances received at the purification substances for 2018 305-6 to the guidelines on the calculation plant made up 88 %. There were no peak 305-7 Polluting substance Amount, t of pollutants emissions into the air and emergency emissions of pollutants Mass, kg Substance from the fugitive sources from sewage into the atmosphere. The quantitative At the beginning Consumed At the end Organic compounds (total biochemical 7.5851 water aeration stations. In 2018, there were consumption of oxygen) determination of emissions is based of year of year no direct emissions of carbon dioxide on calculation methods in compliance Suspended substances 11.4709 and methane from the boiler of the recreation with the techniques approved under Carbon 368.6 283.0 85.6 tetrachloride Dry residue 0.0000 center. The heat balance is affected the law-established procedure, with the use Ammonium ion 0.0000 by water vapor and ozone. RIAR annually of the specific indicators and balance method. 3 Nitrate anions 0.0000 emits about 600 thous. m of water vapor, which is formed in the cooling towers Nitrite anions 0.0000 of nuclear installations. In 2018, the ozone Sulfate anions 0.0000 emission was 0.0714 kg. Indirect greenhouse Mass of pollutant emissions Chloride anions 23.6525 gas emissions of RIAR are the results 3.32.1 into atmosphere per years, t Iron* 0.1930 of the electricity and heat production for own consumption when burning fuel oil Substance Hazard class 2016 2017 2018 Copper* 0.0000 and gas at the heat and power supply plant Gaseous and liquid: – 4.496 4.496 4.496 Zink* 0.0022 LLC “RIAR— GENERATION”. Other indirect Incl.: Chromium (III) and (VI) 0.0000 greenhouse gas emissions originate GRI 308-2 Sulfur dioxide III 0.096 from sources under the management 0.096 0.096 Anionic surface Carbon oxide IV 1.577 1.577 1.577 active substances 0.0136 of JSC “Alliancetransatom”, which carries out transportation of employees Nitrogen oxides (in N02 equivalent) III 1.298 1.298 1.298 Phosphate ion (by Р) 0.0000 and cargoes. The estimation of volume Volatile organic compounds – 1.421 1.417 1,.417 Oil and oil products in dissolved releases is quite challenging since there are Others – 0.104 0.108 0.108 and emulsi ed state 0.0022 no data on the consumption of electricity, Solid: 3.356 1.267 1.267 Total 42.9195 heat and use of vehicles by these Incl. suspended substances III 0.017 0.017 0.017 organizations. Total – 7.852 *.All water-soluble forms 3.30.1 5.763* 5.763 Proposals to reduce the greenhouse gas emissions include reducing energy *.In Report 2017 there was an uncertainty resulted from a technical mistake Emissions of hazardous substances consumption, transportation, uncontrolled into atmosphere leaks from refrigeration equipment and air conditioners. The location of RIAR GRI Amount of penalties for adverse GRI Direct emissions of greenhouse gases 307-1 102-11 in the settled land allows implementing 416-2 environmental impact per years, k RUB 201-2 into the RIAR atmosphere resulted rational methods of forest management 305-1 from the combustion of fuel oil in the boiler and reforestation on a sustainable basis Type of fees 2016 2017 2018 305-2 units and operation of sewage water 305-3 with a view to protecting and improving Fees for allowable emissions (discharges) of pollutants and emplacement 305-4 treatment plants of the recreation center, the quality of sinks and storage 305-5 and also due to fuel consumption of production and consumption waste: 104 52. 46. 305-6 of greenhouse gases. From the list to water bodies 8 52. 43. by mechanisms and vehicles. The quantitative of ozone-depleting substances, to air – – – determination of the direct emission the treatment of which is regulated of carbon dioxide from the stationary by the Montreal Protocol on Substances for emplacement of waste 96 – – combustion in the boiler is carried out that Deplete the Ozone Layer, the RIAR GRI Fees for excess emissions (discharges) of pollutants according to the guidelines for the emissions contain carbon tetrachloride. 305-7 and emplacement of production and consumption waste: 365 19652. 121. 0 quantification of greenhouse gas emissions The release of carbon tetrachloride is due to water bodies 165 44. – volume by organizations engaged to technological processes: laboratory tests, to air 103 74. – in economic and other activities in the Russian cleaning and degreasing of equipment. for emplacement of waste 97 1 953. 4 121. 0 Federation. The calculation method is based The source of CFC emissions is Total 469 19704. 125. 6 on the use of release coefficients and direct compressing-condensing units measurement of fuel consumed (fuel (refrigerators) and multi-split systems, including: balance) and ignores methane and nitrous which use ozone-depleting substances. to water bodies 173 96. 43. oxide emissions arising potentially during to air 103 7,. 4 03. the stationary combustion of fuel. In 2018, the average annual indicator The quantitative determination of the direct of purification of the enterprise for emplacement of waste 193 1 953. 4 121. 0 151 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 152

GRI Fines and penalties for breaching In the reporting year, the payment GRI and Biological Agency of Russia. 201-2 for negative impact on the environment 403-3 Number of JSC “SSC RIAR” 307-1 environmental legislation 416-2 JSC “SSC RIAR” annually issues: amounted to 125.6 thousand rubles, 413-2 and regulatory requirements employees under the individual Ÿ a report containing information on individual while emissions of pollutants into the air dosimetric control, per years amounted to 0.2 % of the total, discharges 2.5.6 and collective doses of external and internal In 2018, the following administrative 2.5.7 measures were applied to JSC “SSC RIAR”: to water facilities— 3.4 %, waste 2.11.1 exposure of personnel and public, the results disposal— 96.3 %. JSC "SSC RIAR" does not 3.13.2 2 414 of monitoring of radioactive substances administrative liability for violating 3.15.1 2 312 the requirements of the environmental dispose waste into underground horizons. 3.15.3 2 145 emissions into the atmosphere, as well as legislation of the Russian Federation that 3.32.5 2 064 2 056 other information; Based on the report cover the protection of water body results, measures are being developed and atmospheric air and management Minimized environmental impact to improve the radiation safety system of production and consumption waste; To minimize the environmental risks and reduce the risks of nuclear and radiation an administrative fine at the rate GRI safety; resulted from the RIAR activities, 102-11 of 20 thousand rubles was imposed the Environmental Policy was brought 304-2 Ÿ a nuclear safety report for nuclear on a legal entity. In 2018, there were 2014 2015 2016 2017 2018 into force. More details can be found facilities and nuclear-hazardous objects no non-financial sanctions imposed in Sub-section 4.6 “Natural Capital” of JSC “SSC RIAR”, which analyzes on JSC “SSC RIAR” for non-compliance of the present Section and in Reports dosimetric control to assess the quality comments on the state of nuclear safety with environmental legislation on Ecology of JSC “SSC RIAR” of the measurements performed in accordance with the guidance on safety and regulatory requirements. onhttp://niiar.ru/annual_report . by the indicator “Individual dose equivalent when using nuclear energy “Determination of photon emission”. The test provider of the causes and conditions of safety (JSC “VNIINM”) has issued a certificate requirements violations when using No. 05-067-2018-MSI on successful nuclear energy” (RB-083-13). performance of interlaboratory NUCLEAR AND RADIATION comparative tests. The level of nuclear and radiation safety The system of nuclear and radiation safety achieved in RIAR is acceptable. This is assurance at the facilities is constantly being confirmed by inspections of RIAR-level SAFETY improved. In 2017, JSC “SSC RIAR” introduced commissions on nuclear and radiation safety, and by the ROSATOM general GRI new guidelines on the radiation monitoring 102-11 Dosimetric control In the reporting year, the Laboratory developed by the Federal Medical inspection commission. 403-3 for Radiation Monitoring of the Radiation A dosimetric control of the staff exposure is 416-2 Safety Division took part in the interlaboratory carried out under the requirements comparative tests related to the individual Indicators of nuclear and radiation safety 1.7.4 of the radiation safety standards, principal 3.12.1 radiation safety rules, and methodological assurance during the operation 3.12.3 of JSC “SSC RIAR” facilities: 3.15.3 guidelines of the Federal Medical EV ective dose and Biological Agency of Russia. In 2018, all for Group A personnel, mSv* Group A personnel was subject to individual Ÿ non-exceedance of the basic dose limits dosimetric control. In the reporting period, Less then 1 1–2 2–5 5–20 for personnel exposure; the average annual effective dose Ÿ compliance with emission standards of the personnel is 2.46 mSv. In the year 14.7 % 2017, it was 2.84 mSv. A decrease for radioactive substances in the average effective exposure dose in the atmosphere; of the personnel by 13% is explained Ÿ absence of violations in the work of the RIAR by the reduction in its number 54.0 % 16.5 % facilities characterized by level 1 when carrying out the volume of radiation 2018 г. hazardous work at reactor facilities during and higher according to INES scale the scheduled preventive repair. There were 2018 14.8 % no cases of exceeding the effective dose The achieved level of radiation safety emissions is carried out in order to prevent of 50 mSv per year or 20 mSv on average in JSC “SSC RIAR” allows assuring the public their entering in the human body with food for five consecutive years that indicates radiation safety in the supervised area. and drinking water as well as the significant the implementation of the principles * Limited value is 50 mSv according to the radiation The Institute implements a set of measures contamination of the public habitation of radiation safety personnel at RIAR. safety standard. to prevent the radiation exposure territory. to humans: monitoring of radionuclide 153 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 154

The stations for radiation monitoring are the specific activity of cesium-137 The Laboratory for Radiation Monitoring Ÿ Quantitative indicators of individual organized in the supervised area. They and strontium in the samples of the Radiation Safety Division performs and collective risks related to stochastic provide for comparative measurements of the atmospheric air, soil, water the samples measurements according effects of the public exposure are less to the certified methods and in compliance than the regulated level of negligible of the effective dose rates of gamma- from surface water bodies, drinking water, –6 radiation from the territory surface, agricultural products of local production. with the approved regulations for radiation radiation risk (10 ) of stochastic monitoring of territories and periodicity effects— harmful biological effects of sampling and conducting measurements (especially oncological malignant Activity of the key man-made radionuclides in the sanitary protection area diseases) caused by ionizing radiation. and supervised area of JSC “SSC RIAR”. Stochastic effects are non-specific, in other Monitored Admissible Values per years Radionuclide According to the results of the control words they are practically undistinguishable object level 2016 2017 2018 carried out using the federal methods, from the similar effects initiated by the non- 2 the activity of the key normalized man- radiation factors, so it is almost impossible Radionuclide surface activity, Bq/km made radionuclides in environmental objects to establish the causal relation between the ionizing radiation and the diagnosis Precipitations Cesium-137 Not normalized (0.. 8–4 0)106 (0.. 6–2 1)106 (0.. 8–3 2)106 in the supervised area for the period from 2016 to 2018 was one or two orders of malignant neoplasms. 5 3.12.2 Strontium-90 (5.. 0–20 0)10 Not provided for by JSC “SSC RIAR” less than the regulatory values. Based on the results of monitoring radiation monitoring regulations The values of the collective effective annual of radiation situation in Dimitrovgrad Plutonium-239 (15.2.0 0– 5 )104 16·10. 4 Not provided radiation dose and the average individual and indicator analysis of the radiation risk for by JSC “SSC RIAR” related to the public exposure stochastic radiation monitoring effective annual radiation dose regulations of the population living in Dimitrovgrad effects, it can be concluded that the production activity of RIAR's radiation 6 6 6 in the supervised area have been less than Snow Cesium-137 (0.5 – 3.1 )10 (0. 4–2 .3 )10 (0. 6–1 .1 )10 the minimal significant one for a number facilities does not have a significant negative 5 μ Strontium-90 (10.. 0–38 0)10 of years (1 person/Sv and 10 Sv, impact on human habitat and health Not provided for by JSC “SSC RIAR” respectively) and may not be taken of the town population. radiation monitoring regulations into account. Plutonium-239 (0.. 13–0 45)105 9 9 The results of radiation and hygienic 10 9 (0.32. 2 – 2)10 (0.. 17–1 3)10 Soil* Cesium-137 37·10. (0. 1 3 – 2.9 )10 certification of JSC “SSC RIAR” 8 8 2018 — A Year of Science Strontium-90 11·10. 10 (0. 68–12 . 0)108 (1.. 5–3 6)10 (1.. 0–3 5)10 and Dimitrovgrad territory for 2015– 2018 in the Rosatom State Corporation 8 7 9 8 (0.. 41–7 1)10 (1.. 5–1 9)10 (in accordance with NRB-99/2009) are as Plutonium-239 37·10. (0.. 26–1 1)10 follows: Ÿ A scientific truth is established neither Radionuclide speci c activity, Bq/kg Quantitative indicators of individual risk by a logical proof and nor by rationalistic way, related to the group A personnel but by the experience and observation in nature Vegetation* Cesium-137 60·10. 2 0–.07 9.1 0.. 2–4 2 0.. 15–0 6 exposure stochastic effects do not exceed individual life-long risk10·10 . –3 ; and reality. Strontium-90 10·10. 2 12–72.. 03–14.. 09–73.. V. Vernadsky 0.. 12–0 45 Crops* Cesium-137 60 0.. 1–0 9 0.. 07–0 43 GRI Strontium-90 Not normalized 0.. 11–0 48 0.. 23–0 46 There is In 2018, activities at the nuclear hazardous areas 413-2 no standard of JSC “SSC RIAR” as well as the operation of nuclear research 416-2 Milk* Cesium-137 100 01.4 – 0.24 006–.0.2 3 0.0. 035– 090 facilities were conducted WITHOUT ACCIDENTS Strontium-90 25 00. 4 – 0.07 00.40. – 49 There is no standard Improving the safety nuclear facilities); activities are carried out Fish* Cesium-137 130 0..5 25–2 047. No more than035 . in full compliance with standards and taking 2.5.7 and efficiency of the reactor into account changes in the existing Strontium-90 100 0.2– 1.4 0.2 There is 3.6.1 no standard 3.15.1 Russian legislation. Information on the risks experimental base of nuclear and radiation safety can be found Provision of accident-free, safe in Sub-section 2.4 “Risk management ”. * The acceptable levels are set by the following regulatory and Food of the Russian Federation, and sustainable operation of nuclear The project “Production Funds documents: dated on December 1, 1994); and radiation hazardous objects is the main Ÿ For soil— Methodology “Criteria for assessing Ÿ For crops, milk and fish— Decree No.36 of the Chief State of the Company” ensures the modernization goal of RIAR activities. RIAR systematically of the reactor experimental base, of which the environmental situation of territories to determine Sanitary Doctor of the Russian Federation dated monitors their state and implements a set the environmental disaster zones" (approved on November 14, 2001 “On the Introduction of Sanitary improvement is necessary not only because by the Ministry of Natural Resources of the Russian Rules into Effect” and “SanPiN. 2.3.2.1078-01 2.3.2. Food raw of engineering measures to ensure accident- of physical and moral obsolescence Federation, dated on November 30, 1992); materials and food products. Hygienic requirements free operation of nuclear research facilities of equipment, but also in connection Ÿ For vegetation— Instruction No. 13-7-2/216 on radiological of safety and nutritional value of food products. Sanitary and nuclear hazardous areas (modernization with the new requirements of federal control of feed quality. Control levels of cesium-134, and Epidemiological Rules and Standards” of the process equipment and compliance (approved by the Chief State Sanitary Doctor regulations for assuring safe operation cesium-137 and strontium-90 radionuclides content in feed with current standards in production of nuclear facilities. and feed additives (approved by the Ministry of Agriculture of the Russian Federation, dated on November 06, 2001). and technological processes when operating 155 Annual Report JSC “SSC RIAR” 2018 OUTPUTS 156

In 2018, the following activities were Expected results of radioactive waste Ÿ Justification and making decisions Ÿ Reduction in expenditures implemented under the project: management are as follows: on classification of all accumulated for radioactive waste long-term Ÿ purchase of containers for transferring Ÿ Partial disposal of medium-level solid radioactive waste as special or removable storage ; radioactive waste to the solid radioactive radioactive waste and safety assurance and implementation Ÿ Ensuring the financial and economic waste container storage area as well as during the additional lifetime of the facility; of work on decommissioning independence of the safe and effective a radioactive waste shredder; of facilities for non-conditioned radioactive Ÿ Progressive increase in the proportion functioning of the radioactive waste Ÿ development of concept of the VK-50 waste storage; of processed, conditioned and disposed management system in the Institute. reactor decommissioning; radioactive waste generated in the Institute; Ÿ purchase of three beryllium blocks for the MIR reactor; Ÿ purchase of a sealing ring and a centrifugal Radioactive waste management scheme pump for the VK-50 reactor facility cooling system; Ÿ replacement of the compressor cryogenic system with the air separation equipment; Ÿ purchase of equipment for radiation monitoring system of the critical stands of the MIR and SM reactors; Ÿ purchase of equipment to update the automated radiation monitoring system; Ÿ comissioning of the automated radiation monitoring system of the Reactor Materials Testing Complex and the alarm system at the nuclear-hazardous areas of the Radionuclide Sources and Radiochemicals Department and the Radiochemical Technology Department; Ÿ update of ionizing radiation sources physical protection system equipment. The investment project “Production Funds of the Company” allowed increasing the level of nuclear and radiation safety of research nuclear facilities, scientific methodological and instrument support for their operation, R&D and technological work carried out to solve the problems of the industry and international cooperation. Strategy to manage the radioactive waste Control In 2018, JSC “SSC RIAR” updated the local GRI strategy for radioactive waste management. 102-11 The strategy is a key element for adapting the company to the requirements of a unified 1.2.10 state radioactive waste management system. 2.5.6 It contains a plan for the transformation 3.14.1 of the existing waste management scheme and basic indicators of this transformation for the period up to 2025, as well as the target state of the system, the main directions and terms to solve the accumulated problems. 157 Annual Report JSC “SSC RIAR” 2018 Glossary 158

Glossary Fuel element — is the smallest structural unit MOX fuel — is a nuclear fuel that contains several of a reactor or fuel assembly containing nuclear oxides of fissile materials. fuel and/or breeding material and located either Nuclear fuel — is a material containing fission Absorbing element —a) is an assembling unit Class III — moderately hazardous waste: a medium in the reactor core or breeding zone to produce radionuclides that allows a nuclear chain reaction of a nuclear reactor that has a strong sealed degree of the harmful effect with a period of self- thermal energy and transfer it to coolant loaded in a nuclear reactor. cladding, usually in the form of a cylinder or ball, recovery at least 10 years after the exposure level as well as accumulate secondary nuclear fuel. and an absorbing material embedded into is reduced; Class IV — low-hazard waste: the low Nuclear fuel cycle — is a chain of operations to ensure Global Reporting Initiative (GRI) — is a reporting it to control the reactor reactivity; b) is a key degree of harmful effect on the environment nuclear reactor operation from mining of uranium system accepted in international practice construction part of a control rod that contains with the minimal period of recovery to be three to radwaste disposal. and concerning economic, environmental absorbing material. years; Class V — virtually non-hazardous waste: and social efficiency; it is based on Sustainability Nuclear medicine — is a branch of medicine involving the exposure effect is very low, ecological system Activity — is a measure of radionuclides radioactivity Reporting Guidelines. the application of radioactive pharmaceuticals and its components are not violated. equal to the number of radioactive decays occurred in diagnosis and treatment of a disease; methods HR-functions — are functions accomplished in the given amount of a radionuclide per time unit. Closed nuclear fuel cycle — is a nuclear fuel cycle, of remote X-ray therapy. by a specialist in human resources. in which spent nuclear fuel is reprocessed to recover Affiliate — is a physical or legal person who can Nuclear power engineering —is a branch of power uranium and plutonium to refabricate nuclear fuel. IAEA Safeguards — is a system of inspection affect the activities of the physical and/or legal engineering concerned with the application of nuclear and verification of the peaceful uses of nuclear persons conducting the entrepreneurial activities. Discharge of radioactive substances — is a controlled energy for heat and electricity supply purposes. energy established under the international discharge of radionuclides to tanks with liquid A-group personnel contains persons working non-proliferation policy and supervised Nuclear safety — is a general term describing radwaste at a nuclear facility. with man-caused emission sources and getting by the International Atomic Energy Agency. the characteristics of a nuclear facility under normal an average annual effective emission dose Division — is a business entity that has operation and accidental conditions to minimize Impact factor (IF)— is a formal numerical indicator of 2.3 mSv/year. an established procedure of relationships the radiation exposure on personnel, population of a scientific journal importance. It is calculated as with the corporation; according to this procedure and environment within the admissible limits. B-group personnel contains persons working a number of references in a specific year divided this entity is defined as a division managing at a radiation object or within its sanitary-protective into a number of articles published in the journal Operator — is an organization that has an approval other business entities within the management territory and being under the effect of man-caused for three previous years and is a characteristic from the regulatory authorities to operate a nuclear circuit of such division. emission sources and getting an average annual of the journal credibility to a certain extent. facility. effective emission dose of 0.8 mSv/year. Enrichment — a) is a content of atoms of a specific Internal control and audit system — is a set Person Sievert (Sv) — is a unit to measure the collective isotope in a mixture of isotopes of the same element Business model — is an integrated organizational of organizational structure, inspection radiation dose if this content increases the fraction of this isotope and financial chart of company activities, which and monitoring methods and procedures adopted in a mixture occurring in nature (expressed Pool — is a form of companies association, characterized describes comprehensively the creation of enterprise by the management of an economic entity in percentage); b) is a process resulting in that the profits of all pool members are transferred value (added value), reveals capital transformation as the mechanisms to conduct financial in the increase of a specific isotope in a mixture to a common fund (pool) and then distributed among processes and results and their influence and economic activities (business processes) of isotopes. them according to a predetermined proportion. on the stakeholders. in an effective and arranged manner. These activities Enterprise value — is the whole of produced Radiation monitoring — is obtaining data on radiation Classes of hazardous substances — a conventional are performed by the economic entity and aimed products, results of production activities situation in an organization, environment and people degree intended to simplify the classification at identifying, correcting and preventing significant and implementation of projects aimed at achieving irradiation levels (includes dosimetric and radiometric of potentially hazardous substances. The hazard errors and misrepresentation of accounting strategic goals, improving efficiency control). class is set according to industry-oriented information. and competitiveness, as well as economic, regulatory documents. In the Russian Federation International Standard Book Number (ISBN) — Radiation safety — activities to minimize radiation environmental and social mutual influence there are five hazard classes of industrial and bio is a unique identification number of an edition exposure on personnel and population to the lowest between the company and stakeholders. waste by its environmental impact and harmful used worldwide in book business, publishing possible values using the means acceptable to the public effect: Class I — extra hazardous waste: the harmful Fast neutrons — are neutrons with kinetic energy and librarianship. in order to prevent early radiation effects and minimize effect on the environment is estimated as extra high; exceeding the given value. In reactor physics late radiation effects to the admissible level; the level Isotopes — are variants of atoms and nuclei accumulation of such waste results in irreversible this value is usually equal to 0.1 MeV. of protection of present and future generations of a chemical element which have the same atomic damages of the ecosystem with no recovery period; of people against the harmful effects of ionizing radiation Fuel assembly — is a set of fuel elements (rods, (ordinal) number and different mass numbers. Class II — highly hazardous waste: the harmful effect on their health. rodlets, plates, etc.) fixed together by a spacer is estimated as high, the balance of ecosystem is Mission — is one of the basic terms used in strategic grid and other structural components that Radioactive waste — nuclear materials and radioactive greatly disturbed, and the period for system and its management; the main objective of a company, are non-dismountable during the transportation substances for which no future is foreseen components recovery is not less than 30 years reason for its existence from the viewpoint and irradiation in a reactor. Fuel assemblies are and the radionuclides content exceeds the levels after the entire elimination of the exposure source; of meeting customers' needs, competitive inserted in the nuclear reactor core. determined in accordance with the criteria established advantages and motivation of company's employees. by the Government of the Russian Federation. 159 Annual Report JSC “SSC RIAR” 2018 LIST OF ABBREVIATIONS 160

Radionuclide — is an atom with a specific mass Science Citation Index — is the scientifically accepted number, atomic number and nuclei energy state indicator of the significance of the scientist's works, LIST that has the lifetime sufficient for observations. which is the number of references to scientific publications in the refereed scientific periodicals. Release of radioactive substances — is the release of radionuclides in the atmosphere as a result Science Index — is the information-analytical system OF ABBREVIATIONS of a nuclear facility operation, from a radiation built on the basis of data from the Russian Science source or nuclear materials and radioactive Citation Index and offering a whole range substances storage facility. of additional services for authors of scientific AA1000 —a generally applicable standard to assess FSUE CRISM “Prometey” — Federal State Unitary publications, scientific organizations and publishing REMIX (regenerated mixture) — is the Russian an organization's reporting in terms of its sustainable Enterprise 'Central Research Institute of Structural houses. innovative nuclear fuel for the VVER type reactors; development, as well as to assess the sustainable Materials “Prometey” named after Academician development fundamental processes, systems and level I.V. Gorynin'. it is produced from a non-separated mix SMART — is a mnemonic abbreviation used of competence. of regenerated uranium and plutonium obtained in management and project management to FSUE 'NII NPO “Luch”' — Federal State Unitary when reprocessing spent nuclear fuel. determine goals and objectives: S— specific; AA1000 APS — a standard that reveals the basic Enterprise 'Research Institute — Research M——— measurable; A attainable; R relevant; principles of efficiency, responsibility and sustainability. and Production Association “Luch”’. Reprocessing of spent nuclear fuel — is a set T— time-bounded. The very word "smart" in Russian of chemical and technological processes AA1000 AS — an assurance standard for social FSUE “NITI” — Federal State Unitary Enterprise means "very clever". Thus, the correct goal setting to remove fission products from spent nuclear fuel and sustainable development information. “Technology Research Institute named means that the goal is concrete, measurable, after A.P. Alexandrov”. and regenerate fissile material for re-use. AA1000 SES — a stakeholder engagement standard. achievable, meaningful and correlates FSUE “NO RWM” — Federal State Unitary Enterprise Reprocessing of radioactive waste — is process B2B-Center — Russian IT company that develops with a specific time frame. “National Operator for Radioactive Waste Management”. operations to change the aggregate state software for corporate purchases and sales. Stakeholder — is a physical and / or legal person and / or physical and chemical properties of radioactive FSUE 'PA “Mayak”' — Federal State Unitary Enterprise and groups of persons who affect or can be affected BN — a fast sodium-cooled reactor. waste to convert them to conditions acceptable 'Production Association “Mayak”'. by organization's activities. BOR-60 — a fast research reactor (60 MW). for transportation, storage and/or disposal. GOST — a state standard of the Russian Federation. Supply chain — is a system of relations Research reactor — is a nuclear reactor intended CIAE — China Institute of Atomic Energy. with counterparties (suppliers, contractors GOST RV — a state military standard of the Russian for generating data on reactor physics and technologies Federation. and consumers), which is an integral component CIS — the Commonwealth of Independent States. required to design and develop reactors of such type of the business model of the enterprise and has GRI — Global Reporting Initiative. or their components. CJSC — Closed Joint Stock Company. a direct impact on the process of creating value CJSC “Isotope technologies” — Belarus and Russian HSNP — a heat supply nuclear plant. Risk management — is a process to make (value added) in the short, medium and long term. Closed Joint Stock Company “Isotope Technologies”. and implement management decisions focused HTGR — a high temperature gas-cooled reactor. Web of Science — is a multi-disciplinary abstract- on minimizing a probability of unfavourable results EBITDA — Earnings before Interest, Taxes, Depreciation bibliographic database of the Institute for Scientific IAEA — International Atomic Energy Agency. and potential losses caused by its implementation. and Amortization. Information (ISI), which is based on: Science Citation IEC — International electro-technical commission. Russian Science Citation Index is a national Index Expanded (natural sciences)— the citation FA — a fuel assembly. INES — International Nuclear Event Scale. information and analytical system accumulating index for natural and exact sciences (natural FAA — a fuel assembly of an alternative design more than 2 million publications of Russian authors, sciences, technical and medical journals); with a rigid skeleton formed by six corners and spacer InPO CDC — Independent Non-Profit Organization as well as information on citing these publications Social Sciences Citation Index (social sciences) — grids. It has an increased fuel burn-up, improved “Center for Development of Nuclear Innovative Cluster from more than 2,200 Russian journals; the main index citation in social sciences (journals operational reliability and enhanced bending stiffness. of Dimitrovgrad, Ulyanovsk region”. criterion for assessing is the relative index in economics and social sciences); Arts & Humanities FE — a fuel element. INR RAS — Federal State Budgetary Enterprise of citations of articles published in a particular Citation Index (Humanities)— the index of citation “Institute for Nuclear Research of the Russian FSBE — Federal State Budgetary Enterprise. journal— impact factor. on art and humanities (magazines on archeology, Academy of Sciences”. architecture, all kinds of art, literature, history, FSBE 'NRC “Kurchatov Institute”' — Federal State Safety of nuclear facilities — is a property of nuclear International Framework — International Standard Budgetary Enterprise 'National Research Center facilities to provide radiation safety both philosophy, religion). Integrated Reporting. “Kurchatov Institute”’. under normal operation and in case of accident ISBN — International Standard Book Number. for the personnel, population and environment FSBE “PNPI” (NRC “Kurchatov Institute”) — Federal within the designed limits. State Budgetary Enterprise “Petersburg Nuclear ISEA — Institute of Social and Ethical Accountability. Physics Institute named after B.P. Konstantinov”. ISO — International Organization for Standardization. FSUE — Federal State Unitary Enterprise. IT — information technology. 161 Annual Report JSC “SSC RIAR” 2018 LIST OF ABBREVIATIONS 162

JSC — Joint Stock Company. JSC “SSC RIAR” — Joint Stock Company “State Scientific PUREX process — plutonium-uranium recovery VK-50 — a boiling water reactor. Center — Research Institute of Atomic Reactors”. by extraction; nuclear fuel recycling procedure. JSC “AEM-technology” — Joint Stock Company VVER — a water-water energy reactor. “AEM-technology Engineering Company”. JSC “TVEL” — Joint Stock Company “TVEL”. QMS — Quality Management System. InPO CDC — Independent Non-Profit Organization JSC “Afrikantov OKBM” — Joint Stock Company JSC “VNIIKhT” — Joint Stock Company “Leading R&D — Research and development. “Center for Development of Nuclear Innovative Cluster “Afrikantov Experimental Design Bureau for Mechanical Research Institute for Chemical Technology”. of Dimitrovgrad, Ulyanovsk region”. Engineering”. RBT — a pool-type reactor. JSC “VNIINM” — Joint Stock Company “A.A. Bochvar JSC “ATA” - Joint Stock Company “Alyanstransatom”. High-Technology Research Institute for Inorganic RS — radiation safety. Materials”. JSC “Atomenergoprom” — Joint Stock Company RSCI — Russian Science Citation Index. “Atomic Energy Power Corporation”. LBC — Library Bibliographic Classification. PWR — pressurized water reactor. JSC FCS&HT “SNPO Eleron” — Joint Stock Company LLC — Limited Liability Company. RF — the Russian Federation. 'Federal Center for Science and High-Technologies LTIFR — Lost Time Injury Frequency Rates. “Special Scientific & Production Enterprise “Eleron”'. RIAR — Research Institute of Atomic Reactors. MBIR — a multi-purpose fast reactor. JSC “GSPI” — Joint Stock Company “State Specialized Rosatom State Corporation — Rosatom State Nuclear Design Institute”. 'MC “UES”', LLC — Limited Liability Company Energy Corporation. 'Management Company “Uralenergostroy”'. JSC “IRM” — Joint Stock Company “Institute for Reactor Rosprirodnadzor — Federal Service for Supervision Materials”. MIR — a multi-loop research reactor for material of Natural Resource Usage. testing. JSC “IRC — R.O.S.T.” — Joint Stock Company “Independent Rostechnadzor — Federal Environmental, Industrial Registrar Company R.O.S.T.”. MOX-fuel — mixed uranium plutonium oxide fuel. and Nuclear Supervision Service of Russia. JSC “L.Ya. Karpov NIFKhI” — Joint Stock Company NOPAT — Net Operating Profit after Tax. RW — radioactive waste. “L.Ya. Karpov Research Institute of Physics NPP — a nuclear power plant. SCSTI — State Classifier of Scientific and Technical and Chemistry”. Information. NP — norms and regulations. JSC “NIKIET” — Joint Stock Company “N.A. Dollezhal SAP — System Analysis and Program Development; Research and Development Institute of Power NRB — Radiation safety norms. a German company that makes software for enterprises, Engineering”. the most famous product is SAP ERP. NRHF — a nuclear- and radiation-hazardous facility. JSC “NIKIMT–Atomstroy” — Joint Stock Company SFA — a spent fuel assembly. 'Research and Design Institute for Assembly NSR — nuclear safety regulations. SHF —super-high frequencies. Technology “Atomstroy”’. OGRN — primary state registration number. SM — a high-flux vessel-type pressurized-water JSC 'OKB “Gidropress”' — Joint Stock Company OJSC — Open Joint Stock Company. 'Experimental Design Office for Water and Steam Press reactor; according to its name in Russian it is Equipment”’. OJSC “STC RATEC” — Open Joint Stock Company translated as the most powerful reactor due “Scientific and Technical Center RATEC”. to a high density of thermal neutron flux. JSC “OTEK” — Joint Stock Company “Integrated Thermal Power Company”. OST — an industry-specific standard. STO — company standard. JSC “Rosenergoatom Concern” — Joint Stock Company PJSC — Public Joint Stock Company. TCM — total cost management. “Concern for Generation of Electric and Thermal Power PJSC “IDGC of Volga” — Public Joint Stock TIN — a taxpayer identification number. at NPPs”. Company “Interregional Distribution Grid UDC — universal decimal classification of books used Company of Volga”. JSC 'SPA “TsNIITMASh”' — Joint Stock Company worldwide; its index is an obligatory imprint element. 'Scientific Production Association “Central Research PJSC “MSZ” — Public Joint Stock Company “Uralenergostroy”, LLC — Limited Liability Company Institute for Machine Building”’. “Mashinostroitelny Zavod”. 'Managing Company “Uralenergostroy”'. JSC 'SPb “IZOTOP”' — Joint Stock Company 'Saint PJSC “NCCP” — Public Joint Stock Company USA — the United States of America. Petersburg “IZOTOP”’. “Novosibirsk Chemical Concentrates Plant”. USSR — the Union of Soviet Socialist Republics, JSC “SSC RF — IPPE” — Joint Stock Company “State PJSC “TGC-14” — Public Joint Stock Company Scientific Center of the Russian Federation — Institute “Territorial Generating Company No. 14”. VAT — a value added tax. for Physics and Power Engineering named after A.I. Leypunsky”. PRC — the People's Republic of China. 163 Annual Report JSC “SSC RIAR” 2018 APPENDICES 164

We are responsible for the result

Appendices 165 Annual Report JSC “SSC RIAR” 2018 APPENDICES 166

Appendix 1

2. Global Reporting Initiative Sustainability Reporting Standards (GRI Standards). Priority topic About Report, its issuing 3. International Integrated Reporting Events occurred in JSC “SSC RIAR” Standard (International Framework) within the reporting period and their impact and information materiality on the development strategy, efficiency – Documents of the Russian Federation: and effectiveness of the JSC “SSC RIAR” 1. Federal Law of the Russian Federation performance were reviewed in order No. 208-FZ “On Joint Stock Companies” GRI to select the priority topic of the Report – to enhance the transparency and dated December 26, 1995 (revised June 102-50 Report description accountability; (“Improvement of efficiency, extension 102-51 29, 2015). of international cooperation and growth 102-52 The present Report is the eighth integrated – to provide communications between 102-54 2. Provision No.454-P of the Bank of Russia of industry-specific cooperation are report that covers the key financial, JSC “SSC RIAR” and customers; “On Information Disclosure by Registrable priorities of RIAR's sustainable economic and production results of JSC – to improve the stakeholders Security Issues Bodies” dated December development”). All groups of stakeholders “SSC RIAR” performance over the calendar engagement. 30, 2014. were greatly involved in direct discussions year. The Report also presents the results The previous annual report was issued 3. Letter No. 06–52/2463 of the Bank and survey. The key information about of the sustainability-related activities on May 2018. of Russia “On Corporate Governance covering the priority topic is given and management approaches allowing code” dated April 10, 2014. in Chapter 3 “Governance” and Chapter 4 the efficiency to be improved in accordance 4. Federal Law No. 5485-1 “On State Report outline GRI “Outputs”, as well as in the other Report with the strategic objectives of ROSATOM Secrets” dated July 21, 1993. 102-46 chapters and sections in part. State Atomic Energy Corporation. The Report covers the whole scope 102-48 5. Federal Law No. 98 “On Commercial of the JSC “SSC RIAR” activities 102-49 Secrets” dated July 29, 2004. The level of information disclosure from January 1 to December 31, 2018 Determination in the Report complies with the Sustanability 6. Federal Law No. 149-FZ “On Information, GRI and discloses the information Information Technologies and Protection Reporting Guidelines GRI and ROSATOM of relevance 102-47 about the Company to the maximum of Information” dated July 27, 2006. requirements in public reporting. extent, state and commercial secrets being 7. Federal Law No. 129-FZ “On Accounting” When developing the Report in accordance The Report is addressed to a wide audience kept. The Report presents the dynamics dated November 21, 1996. with the Sustanability Reporting Guidelines of stakeholders, it has been translated of the key indicators for a three-year and International Integrated Reporting into English and it is available on the JSC period, plans for 2019, medium- and long- – Industry-specific documents: Standard the JSC “SSC RIAR” activity “SSC RIAR” website (http://www.niiar.ru) term purposes as well as the information 1. the Public Reporting Policy of ROSATOM relevant aspects were determined. The work and on website “Interfax — Center on strategic objectives and actions State Atomic Energy Corporation; was carried out in several stages: for corporate information disclosure” to create the basis for the long-term 2. the Public Annual Reporting Standard 1) drawing up a list of the RIAR activity (http://www.e-disclosure.ru/portal/ sustainable development. No changes of ROSATOM and its enterprises. relevant aspects by the working group; files.aspx?id=18477&type=1). in the scope and boundaries of aspects as compared to the previous reporting – documents of JSC “SSC RIAR”: 2) questioning (oline and online The key objectives of the Report are as periods. The aspect relevance boundaries 1. Provision on the JSC “SSC RIAR” at the corporate site) and surveying Stakeholder Commission in Public follows: were defined based on the rank map the main stakeholders including Reporting. – to sustain a recognized image and with the account of the JSC “SSC RIAR” the foreign partners and the company 2 Provision on the JSC “SSC RIAR” of JSC “SSC RIAR” as the largest research top-management's opinion. No new top-management in order to update verbiage of aspects is given in the previous Committee for Public Annual Reporting. center for provision of science-intensive and determine the RIAR activity relevant reports. All the given data match 3. Standard of Enterprise STO 086-202- services, development and production aspects; of innovative high-technology products the previous ones. 2016 “The Integrated Management System of JSC “SSC RIAR”. The Integrated in Russia and in the world; 3) assessing the importance of every Annual Report Issuing Procedure” aspect proposed by the members – to inform the target audience Regulatory documents (revised November 26, 2018). and public in general about the results of JSC “SSC RIAR” Committee of RIAR's activities over the year, The Report has been issued in compliance – Recommendations of the Russian Union for Public Annual Reporting; with the following regulatory documents: of Industrialists and Entrepreneurs development strategies and plans 4) making the JSC “SSC RIAR” activity for the short- and mid- term, to be used in the management relevant aspects rank map. sustainability of the company; – International standards and guidelines: practice and corporate non-financial – to improve the investment 1. AA1000 series standards (Institute reporting (effectiveness basic attractiveness; of Social and Ethical Account Ability). indicators). 167 Annual Report JSC “SSC RIAR” 2018 APPENDICES 168

Figures on the rank map correspond 33. Investment practice. JSC “SSC RIAR” activity relevant to the following topics (in bold are RIAR's 34. No discrimination. aspects rank map aspects to compliment the GRI): 35. Freedom of associations and collective 1,0 1. Economic eiciency. bargaining. 54 6 8 19 2. Market presence. 36. Employment of children by a company 9 3. Indirect economic eects. or subcontractor. 0,9 1 7 14 4. Purchase practice. 37. Forced and compulsory labor used 56 57 58 1618 5. Investment activities. by a company or subcontractor. 26 23 0,8 60 61 24 43 31 25 38. Safety provision approaches. 6. Key activities results. 4 12 38 22 39. Assessment of human rights observance. 59 5 7. Quality and safety. 0,7 11 13 8. Optimization of production processes. 40. Assessment of human rights observance 55 by suppliers. 9. Innovative activities. 41. Mechanisms to settle human rights 0,6 49 2 10. Materials consumption. observance disputes. Importance for management for Importance 11. Energy consumption. 42. Local community. 44 0,5 48 15 47 12. Water consumption. 43. Anti-corruption practice. 35 10 28 13. Discharges. 44. Competitive barriers. 17 3 41 42 30 14. Eluent and waste. 45. Conformity to community 0,4 27 40 20 32 15. Transport. requirements. 46. Assessment of suppliers' community 51 37 29 16. Conformity to ecological requirements. 0,3 33 interaction practices. 34 17. Bio-diversity. 46 47. Mechanisms to settle disputes related 18. Products and services. 36 45 to community interaction. 0,2 19. Ecology. 48. Labeling of products and services. 53 21 39 20. Ecological assessment of suppliers. 49. Conformity to products requirements. 0,1 50 52 21. Mechanisms to settle ecological disputes. 50. Infringement of native and low-numbered 22. Labor remuneration. peoples' rights. 23. Employment. 51. State policy. 0,0 0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1,0 24. Relations between employees and 52. Consumer's health and safety. Interest for audience administration. 53. Marketing communications. 25. Health care and safety at a workplace. 54. International cooperation. Detailed disclosure Suicient disclosure Not discloded in the report 26. Training and information. 55. Interaction during the report issuing. 27. Diversity and equal opportunities. 56. Interaction with suppliers. GRI 27. Assessment of the supplier's 57. Corporative communications. 102-43 Stakeholders' engagement dialogue and public consultation; HR practice. 55 the investigation to determine the activity 58. Board of directors. 28. Mechanisms to settle labor disputes. To enhance the transparency relevant aspects to be disclosed 59. Organizational management model. and accountability and to determine in the Report. 29. Equal labor remuneration the materiality of the disclosed information for men and women. 60. Inside monitoring and audit. Concurrently, the best world's practices the Report was prepared in interaction in public reporting and annual reports 61. 31. Personnel training. Risk management. with the stakeholders in accordance of nuclear enterprises were reviewed 32. Consumer's privacy. with the international standard AA1000SES. (see the details in section 4.5 “Stakeholders The following activities were conducted: engagement”). Based on the stakeholders the analysis of the reporting system The preliminary list of the activity relevant The detailed information on principles to make engagement results the priority topics aspects was detrmined in 2015 in accordance the relevance rank map and to divide it and the previous integrated report issuing and information contents were selected, with the technique for relevance assessement into zones is given in the annual report 2016 quality; questionnaire surveys including a stakeholder ranging chart was generated, (http://www.niiar.ru/sites/default/ (http://niiar.ru/sites/default/les/riar_annual_ those concerned the Report concept; and proposals on public annual reporting les/riar_annual_report_2015small_0.pdf) report_2016_fonts_links-nal_0.pdf) 169 Annual Report JSC “SSC RIAR” 2018 APPENDICES 170

Appendix 2

and the information to be presented GRI Statement on liability 102-56 in the Report were considered. Public Assurance When submitting the Report dra limit for publishing to the Stakeholders Commission and Commetee for Public Reporting prognosticative information in the course of the dialogues and public Statement consultations with stakeholders' The Report contains prognosticative statements regarding future events representatives, the JSC “SSC RIAR” has The management of Joint Stock Company Assessments, comments or nancial indices of JSC “SSC RIAR”. an opportunity to get the feed-back “State Scientic Center – Research Their feasibility depends as well on a number and recommendations in the matter of completeness Institute of Atomic Reactors” (hereinaer and coverage of the essential topics of economical, political and legislative factors We share a common positive attitude and indicators in the Report. being outside of the company's control JSC “SSC RIAR”) oered us to verify (global nancial, economic and political integrated Annual Report 2018 to Annual Report 2018, its format situation, key market situation, changes (hereinaer Report) in terms and scope of the information provided. in scal, custom and ecological law etc.) of completeness and materiality RIAR has prepared an informative Verication of information Therefore, the actual activity results to be of the disclosed information related and well-arranged document that meets presented in the forthcoming reports may to the most important issues our expectations. It is particularly Following the Resolution of the ROSATOM dier from the prognosticative ones for the stakeholders. In doing so, important that the Report has been Operations Committee as of December 16, provided in this Report. JSC “SSC RIAR” we and our representatives were given 2013, an independent audit of the Report issued on a voluntary basis, and is does not represent or warrant that an opportunity to participate in discussion cannot be conducted. The members a good illustration of a transparency the activity results as well as any indicators of the Report concept (in absentia), of the Public Annual Reporting Committee and openness principle of RIAR policy, and events specied in prognosticative meetings and public consultations of JSC “SSC RIAR” were involved thus showing both a high level statements will be achieved or will occur. on the Report dra during November in all the key milestones of Report issuing. of information disclosure and willingness 2018 — April 2019, and freely express One of the main objectives of the Committee to conduct an open dialogue is the assessment of accuracy and completeness our opinion on the issues under discussion. with the stakeholders on dierent issues of the disclosed information. The accuracy We also took part in identifying of the information published in the Report important aspects / topics to be disclosed related to multiple activities including is conrmed by as follows: in the Report. Our statement is based safe operation of research reactors – Annual nancial reporting audit by the on a comparative analysis of two Report and other facilities. We consider that due FBK Company, which is an independent revisions: Report dra and Report to more detailed information about RIAR auditing company; nal revision, comments made by RIAR risk-management model, the Report – Statement of the Internal Control and managers and employees during could clearly reect the relation between Audit Department of JSC “SSC RIAR”; the dialogue and assurance statement strategic objectives and management – Public assurance statement in as well as provided information based approaches and sustainable development Additional relevant information about accordance with the AA1000AS JSC “SSC RIAR” activities is available on the results of the activities (dialogue objectives. A full picture of RIAR activities Standard (appendix 2). at the oicial website (http://www.niiar.ru) minutes, table with stakeholders' including socially important activity proposals accounted). During this aspects, social, ecological and economic assurance procedure we were not impact factors, challenges and mid- focused on checking the data acquisition and long-term plans is presented and analysis system, nor did we study to the Report readers. in a special way the data and management processes. The reliability of the actual The Report has an indisputable data presented in the Report was not advantage that lies in applying Russian as well the subject of public assurance. and international standards in public All the undersigned persons had all reporting. We have a positive attitude opportunities to freely express their towards the RIAR's management opinion, and did not receive from RIAR decision to continue issuing annual any reward for participation in the Report reports in Russian and in English assurance procedure. as well as in a short (presentation) version. 171 Annual Report JSC “SSC RIAR” 2018 APPENDICES 172

It was highlighted that in contrast to public the readers to draw the conclusions reports issued by dierent ROSATOM's on RIAR performance during the reporting Annual Report 2018 enterprises, the Annual Report year. We believe that the reduced Report of JSC “SSC RIAR” is an oicial publication: scope in disclosing all material aspects assurance statement it was assigned an ISBN; the information complies with best international reporting presented in the Report was edited, practices and gives an opportunity thus ensuring its high quality. to show a complete picture of RIAR approvals page activities. References to other information We believe that the information has sources enable obtaining all the necessary been disclosed suiciently both in terms data. At the same time, they do not of taking into consideration unduly burden the Report with extra data the recommendations made presented both on RIAR's oicial website Deputy Director of International by the stakeholders during the Report and in recent annual reports. Activities Unit – Director of International M.P. Belyaeva draing activities. In our opinion, Relations Department, ROSATOM it is an integrated Report that should Response to requests, Head for Innovative Activities Office, present an oicial viewpoint of RIAR's oers and recommendations “Science and Innovations”, JSC N.M. Mantsevich management on all key issues of the stakeholders and activities. The following conclusions We believe that once again RIAR has can be drawn from our analysis. shown major progress in developing Director, stakeholder engagement system. JSC “SSC RIAR” A.A. Tuzov Materiality of information The stakeholders traditionally become We believe that RIAR has taken into engaged at the stage of concept Chief Engineer, consideration international standards development before Report draing. JSC “SSC RIAR A.O. Vorobey to identify materiality of information. The stakeholders had an opportunity Aer conducting a questionnaire survey to voice their proposals Deputy Director among top managers and Stakeholder and recommendations on information for Economics and Finance, I.A. Knyazkin Commission members, and identifying disclosure and public reporting system the material aspects of its activity, development. Upon the stakeholders' JSC “SSC RIAR” RIAR has fully and comprehensively request RIAR has updated and provided disclosed the relevant information additional information in the nal revision Deputy Director in the Report. The Report provides of the Report, or it has explained for Staff Management, D.M. Rusinov the information important both the reasons why the requested JSC “SSC RIAR” for RIAR and its stakeholders. information can't be disclosed. In Report draing RIAR has shown We consider the priority topic Chief Technologist of Design Office “New its readiness to provide a constructive of the Report (“Improvement of eiciency, Platform, JSC “Rosenergoatom Concern V.M. Troyanov response to the stakeholders' extension of international cooperation requirements and proposals. We hope and growth of industry-specic that RIAR will continue implementing Chief Technologist of Design Office cooperation are priorities of RIAR's the principles of good corporate conduct “Proryv” of Rosatom State Corporation sustainable development”) has been by developing the public reporting Private Enterprise “Innovative Yu.S. Mochalov rightly chosen because they have been system and stakeholder engagement. and Technological Center attracted the most readers' interest. of Proryv Project” Completeness of information In our viewpoint, the information related to the key aspects and provided in the Report is complete and allows Governor of Ulyanovsk region S.I. Morozov 173 Annual Report JSC “SSC RIAR” 2018 APPENDICES 174

Head of the Government A.A. Smekalin of Ulyanovsk region

Director of Center for Development A.N. Gataullin of Nuclear Innovative Cluster of Dimitrovgrad, Ulyanovsk region, Independent Noncommercial Organization

Trade Union Chairperson, JSC “SSC RIAR” I.A. Kungurtsev

Acting Head of Dimitrovgrad Engineering I.I. Beginina and Technological Institute, Branch of NRNU “MEPhI” in Dimitrovgrad

Deputy Head for Research Management of Ulyanovsk State University, V.M. Plottsev Director of USU — RIAR Consortium

Chairperson of Organization of Veterans of War and Labor A.D. Voronin in Dimitrovgrad

Director — Chief Editor of the Regional Autonomous Agency R.I. Minsafina «Information Agency "East-Media"»

Head of Department for the Main Activities of the Regional Autonomous Agency S.E. Knyaginina «Information Agency "East-Media"» 175 176

GRI 102-53