TENEX Public Annual Report 2018 001 Публичный годовой отчет АО «Техснабэкспорт» 2018 002 8 Approved by the resolution of the Board of Directors dated 28.05.2019 Director General Sergey Polgorodnik TENEX Public Annual Report 2018 2 Key Indicators of 2018 3 Key Indicators of 2018 Uranium contracting Financial results 107.0 Revenue RUB billion Contracts 18 concluded 21.1 Net profit RUB billion Total value 2.0 of concluded Earnings US $ billion contracts before Interest, 33.4 Taxes, RUB billion Depreciation and Amortization Number (EBITDA) 12 of customers Uranium sales HR and social policy Sales Average staff number Social volume programs 1.7 324 15.6 funding US $ billion people RUB million Funds directed on charity Number 4.0 80 of supplies RUB billion Number of country- 11 recipients TENEX Public Annual Report 2018 4 Stakeholder Public Assurance 5 Stakeholder Public Assurance1 Full name Company and position Signature Full name Company and position Signature Akisheva Оlga Deputy Director General for Economics and Finance, JSC “UECC” Head of Department for NFC Lifecycle Projects Integration with Koryakin Konstantin Sectorial Policies System, ROSATOM Deputy Director for International Operation — Director Belyaeva Marina of International Cooperation Department, ROSATOM Krupnik Pavel Director of International Programs, Centrus Energy Corp. Bochkin Oleg Strategic Communications Director, LLC Rusatom Overseas Deputy Head, Department for Safety Regulation of Nuclear Lavrinovich Andrey Fuel Cycle Facilities, Nuclear Power Plants for Ships and Radiation-hazardous Facilities, Rostechnadzor Head of Department for Back-end Enterprises Vasilyev Vladimir Management, ROSATOM Linyaev Oleg Head of the NFC Lifecycle Projects Department, ROSATOM Vlasov Alexander Deputy Director of International Business Department, ROSATOM Director of Strategy and Development Department, Lychev Ilya JSC “Atomenergomash” Golovachev Sergey Adviser of the Department of Communications, ROSATOM Mamiy Ekaterina Adviser of the Department of Communications, ROSATOM Grigoriev Alexander Project Manager, INPRO section, IAEA Davydova Natalya Head of the Institute of Environmental Projects Consulting Muraviev Denis Managing Director, TENEX-Korea Со. Ltd. Dementsova Nina Head of Communications Department, JSC IC ASE Newton Fletcher President, TENEX-USA Inc. Efremov Gleb Director General, JSC “IUEC” Pluzhnik Sergey Head of Moscow Branch, TENEX-Japan co. Fomichev Igor Chairman, Russian Union of Nuclear Energy and Industry Employees Executive Director, Interregional Ecological Non-government Plyamina Olga Organization “GREENLIFE” Director General, All-Russian Employers’ Organisation “Union Hitrov Andrey of Nuclear Industry, Energy and Science Employers of Russia” Sinev Alexander Director of Moscow office, NAC International Inc. Director General, JSC Pilot and Demonstration Center Izmestyev Andrey for Decommissioning of Uranium-Graphite Reactors Director of the Department of Information and Public Relations, Timonov Andrey JSC “Concern Rosenergoatom” Director of Global Projects Supporting Department, JSC Rusatom Karasev Andrey Energy International Senior Vice President, Private Institution Rusatom — International Titov Vadim Network Deputy Director General for Non-nuclear Businesses Development, Karaulov Sergey JSC “PA ECP” Yanko Leonid Director of the Market Development Department, JSC “TVEL” Director, NPO Center for Energy and Security Studies Khlopkov Anton Zatekina Dina Director, Tradewill Limited Senior expert, Department for Safety Regulation of Nuclear Fuel Cycle Kislov Andrey Facilities, Nuclear Power Plants for Ships and Radiation-hazardous Zakharov Sergey Deputy Head of Department, FSTEC Facilities, Rostechnadzor Kolesov Andrey General Director, JSC “UEC” Zhelnin Alexander Director, JSC “SPb “IZOTOP” Konchak Andrey Director of Dangerous Cargo Department, CJSC BALTIC-MERKUR Zulkharneev Albert Director, NPO PIR-Center Konstantinov Vasiliy President, Uranium One Group 1 Public Assurance Statement is provided in Appendix No. 8. TENEX Public Annual Report 2018 6 Table of Contents 7 Table of Contents Key Indicators of 2018 2 IV. Corporate Social Responsibility 36 Address by Chief Executives 8 4.1. Environmental Policy 38 4.2. Social Policy 40 I. General Information 10 4.3. Charity 41 1.1. Information about TENEX 12 4.4. Information Openness 42 1.2. Corporate Governance System 13 Appendices 44 1.3. The Company in the Structure of ROSATOM 16 1.4. Strategic Prospects 18 Appendix No. 1. Responses to Key Risks 46 Appendix No. 2. Information about Staff Number, 48 II. Main Activity Outcomes 20 Structure and Movement Appendix No. 3. Procurement Activities 50 2.1. Contracting and Sales in NFC Front-end 22 Appendix No. 4. Nuclear Material Control and Accounting 50 2.2. Promotion of Products in NFC Back-end 23 Appendix No. 5. Accounting (Financial) Statements 51 2.3. Logistics Support of Supplies 24 Appendix No. 6. Auditors’ Conclusion on Accounting 54 2.4. Financial Results 26 (Financial) Statement Appendix No. 7. Information about the Report and 58 III. Performance Management 28 its Preparation 3.1. Risk Management 30 Appendix No. 8. Public Assurance Statement 61 3.2. Quality Management 31 Appendix No. 9. Statement on Results of Independent 62 Assurance of the Report 3.3. Control System 32 Appendix No. 10. Glossary, List of Abbreviations 67 3.4. Human Resources Management 33 TENEX Public Annual Report 2018 8 Address by Chief Executives 9 Address by Chief Executives Dear Friends! cessing services, which is a cost In 2018, the Company continued ticipated in the international con- effective secondary feedstock for further advancement of its cor- test of annual reports ARC Awards TENEX has successfully finished nuclear fuel, to foreign customers, porate management system: the International run by MerComm Inc. 2018 — the jubilee year for the TENEX considers this business area German certification service TÜV (USA) for more than three decades, Company founded 55 years ago as perspective and competitive in Thüringen e.V. certified TENEX’s TENEX received the Grand Prix ‘Best by the governmental resolution. the context of sustainable develop- occupational health and safety of Russia’ for the best annual report 17.4 High business standards formed ment implying the far-sighted use management system as meeting for 2017 in Russia, according to the during the decades of operation in US $ billion of resources. the international standard OHSAS jury opinion. the area of foreign trade allow the 18001:2007 on rendering services Company to steadily maintain its This is the context to view the con- We would like to wish TENEX’s team the total of nuclear fuel cycle back-end. positions within the global uranium cept of the so-termed balanced nu- to increase the gained results and order market by offering a broad range of clear fuel cycle promoted by TENEX, Corporate social responsibility is thank all the Company’s employees services in the front-end and back- which is based on the customer-ori- a constituent of the Company’s for their devoted work. We would portfolio end of the nuclear fuel cycle (NFC). ented approach giving an opportu- long-term success strategy. This is also like to thank our Russian and In the reporting year, TENEX again nity to tailor a kit of technological the context where TENEX carries foreign partners — the meaningful demonstrated a flexible approach solutions, goods and services in the out and intends to continue the cooperation with them is the secu- responding to the environment NFC front- and back-end meeting practice of providing its staff with rity of the Company’s further suc- changes and the ability to concen- the current and perspective needs broad opportunities in education cesses. of any specific customer. and development of competences, trate forces on solving the indus- social and health care, and good try’s priority tasks. In the reporting year, the measures labor conditions. An important el- Describing in brief the key out- aimed at competitive growth of ement of the corporate social re- comes of TENEX’s activity, it is with the Russian uranium product and sponsibility is target financing of satisfaction that we state that the modernization of its sectorial sales the ecological, sports, education key performance indicators estab- system included integration, as per and cultural programs and projects lished by ROSATOM were fulfilled the strategic goals of ROSATOM, of in the framework of the joint sec- by one hundred and more per- TENEX and JSC «U1 Group»’s com- torial charity initiatives carried out cent. The Company’s sales volume mercial activities which resulted in by TENEX in accordance with the amounted to US $ 1.7 billion, and the unity of the natural uranium ROSATOM’s Charity Board resolu- the total long-term order portfolio sales management, optimization tions. 1.7 totaled US $ 17.4 billion. of the corporate structure of both companies, and reduction of the TENEX’s management focuses on US $ billion In the continuing low demand for cumulative implicit costs. ensuring transparency of the Com- uranium product and aggravation pany’s activity. TENEX’s Public an- sales of competition among the suppli- TENEX’s strategic plans foresee — nual reports being the main tool ers, TENEX concluded deals with a along with the traditional contracting volume to bring the detailed information total cost of US $ 2 billion, includ- activity — work on a number of prom- about the Company’s operation to ing the large-scale long-term con- ising areas in the field of the balanced