Address by Energoatom by Energoatom Address ENERGOATOM president TODAY Energoatom today Energoatom Over 20 years of its existence, SE NNEGC Energoatom Ever since its inception, SE NNEGC Energoatom has: ARSMS1 in the supervised areas of NPPs, and started the upgrade has improved production performance and generated of the physical protection at nuclear facilities, using innovative 1.7 trillion kWh of electricity. The Company has become • completed and put into operation two new power units technologies. a source of environmentally friendly low-carbon power with VVER-1000 reactors and two hydroelectric units of the for every second consumer in the country and raised hydroelectric pumped storage power plant; However, all these achievements have become possible thanks the largest loan in the history of Ukraine from European to the Company's great asset, our employees who are real institutions in the energy sector. SE NNEGC Energoatom • created a national staff training system for nuclear power professionals committed to the cause. Their work is the key to also started the implementation of a pilot project, plants and the network of staff training centres; put into safe and reliable electricity production and the implementation of governance Corporate and sustainability Ukraine – EU Energy Bridge. operation full-scale training simulators at all existing ambitious plans for SE NNEGC Energoatom’s development. nuclear power plants; We still have much to do. We will keep on working to improve • settled the radioactive waste treatment issues at NPPs, safety of nuclear power plants, complete the construction of put into operation a storage facility for spent nuclear fuel power units No. 3 and 4 at Khmelnytska NPP, extend the life (SF) at Zaporizhzhya NPP, as well as started preparing for cycle of power units, build the Central Spent Fuel Storage Facility, the construction of the Central Spent Fuel Storage Facility and implement many other investment projects to generate the (CSFSF) for three other nuclear power plants; most environmentally friendly electricity for the nation, boost Investment projects Investment Ukraine's export potential and strengthen the country’s energy • established a unified system of R&D support for NPPs and independence. an in-house industrial base for the provision of nuclear power plants with materials, equipment and services. We are looking into the future with confidence thanks to the expertise we have gained during these 20 years in implementing We have joined efforts with government agencies to create a the most complicated large-scale projects and the unity of national emergency alert and response system, implemented nuclear engineers in addressing every challenge. culture Safety Environmental Environmental responsibility Olexandr Shavlakov, First Vice President –Technical Director, SE NNEGC Energoatom Our employees and Our employees local communities local 1 АСКРО – автоматизована система контролю радіаційної обстановки. 6 SE NNEGC Energoatom Non-Financial Report 2016 Non-Financial Report 2016 SE NNEGC Energoatom 7 Appendices Appendices YEARS. Energoatom ranks seventh worldwide in installed nuclear SAFE. RELIABLE. PROMISING 1 capacity 4 nuclear power plants: Zaporizhzhya, Rivne, SE NNEGC ENERGOATOM 2016 2 South-Ukraine and Khmelnytska Energoatom is one of world’s leading nuclear companies due to its high level of technological Zaporizhzhya NPP of the total capacity advancement and safety of nuclear power plants of 6,000 MW is the largest nuclear operation, as well as due to high qualification of 3 power plant not only in Ukraine, but NPP staff. also in Europe Being one of the leaders of the Ukrainian economy, Energoatom contributes to the social and economic development of Ukraine. Over these 20 years, the Company has proved it with actions, not just words. 15 power units with a total 4 capacity of 13,835 MW 8 research-and-production and service subdivisions that develop and produce equipment for NPPs in 5 Ukraine, carry out repairs and refurbishment, and provide R&D support 1.7 trillion kWh of 80-90 billion kWh is the annual electricity generated by contribution of the Company to 7 Energoatom nuclear power 9 electricity generation in Ukraine plants over 20 years of operation The Company covers 55% of Ukraine’s 8 electricity needs (both households and industrial consumers) Over these 20 years, Energoatom has paid a total 10 of UAH 51.036 billion in taxes €600 million — Energoatom has raised the largest loan in the history of Ukraine from European institutions (European Bank for Reconstruction and 15 separate subdivisions and 11 Development and the European Atomic Energy 6 more than 34,000 employees 11 investment projects worth over Community) to implement the project Complex UAH 66 billion were being (Consolidated) Safety Upgrade Programme of Power 12 implemented by the Company as of Units of Ukrainian NPPs (CCSUP) the beginning of 2017 The level of safety at Ukrainian NPPs Energoatom has established cooperation with Energoatom has started building the Central Energoatom has opened a representative meets the IAEA nuclear safety international organisations: World Association of Spent Fuel Storage Facility, using technologies office in Brussels to attract new partners and 13 requirements according to the results of 15 Nuclear Operators (WANO) International Atomic Energy 17 of US-based Holtec International5 19 pursue the European vector of the Company's the IAEA and EU experts' assessment3 Agency (IAEA6), European Bank for Reconstruction and development Development (EBRD7), European Commission8, European Atomic Energy Community (Euratom9), International Group EUR10 and many others The Company has developed the Ukraine-EU Energoatom ranks 1st in the transparency No radiation accident, no event that would The Company has established cooperation with the Energy Bridge project4, which will provide the ranking by Transparency International mean a low level of nuclear safety at the US-Japan company Westinghouse, diversifying 18 opportunity to supply electricity from Khmelnytska 20 Ukraine among the largest Ukrainian 14 Company's facilities in 20 years 16 nuclear fuel supplies to Ukraine NPP to Poland and other EU countries and will companies2 strengthen the energy independence of Ukraine 8 9 ENERGOATOM TODAY Address by Energoatom by Energoatom Address president ABOUT THE COMPANY Energoatom today 2015 2016 State Enterprise “National Nuclear Energy Generating Company “Energoatom” is the operator of all running nuclear power plants in Ukraine, as well as Olexandrivska Hydro Power Plant and Number of employees, 35,186 34,950 Tashlyk Hydroelectric Pumped Storage Power Plant. persons Company's goal today Energoatom Energoatom is in the list of companies of strategic importance Electricity generation, safe and efficient for the economy and security of Ukraine11. operation of nuclear power plants, uninterrupted Staff training 24.2 37.2 power supply to economic entities and the expenses, million UAH population, as well as within its competence, Energoatom is a leader in the national energy actions to ensure Ukraine's readiness for rapid market. and effective response in the event of accidents at nuclear power plants and radiation accidents Payroll fund, million UAH 4,224.1 5,309.6 governance Corporate in the industry. and sustainability Energoatom is a reliable electricity provider for millions of Ukrainian citizens. Allocations to a special state The key mission of Energoatom is the safe budget fund for social and electricity production. economic payments,12 million UAH 314 349 Energoatom covers approximately 55% of the electricity needs in Ukraine. In autumn-winter Investment projects Investment period, this figure reaches 70%. H&S expenses, million UAH 232.1 272.1 Environmental expenses, 160.6 182.5 culture Safety million UAH Investment in development (financing capital investments), 3,840.2 6,049.4 million UAH Environmental Environmental responsibility Taxes paid to the budgets of all 7.268 8.612 levels and insurance settlements, billion UAH including UAH 5.371 billion paid including UAH 7.190 billion paid to the budgets of all levels, of to the budgets of all levels, of which UAH 710.3 million in which UAH 778.7 million in environmental taxes environmental taxes Our employees and Our employees local communities local 10 SE NNEGC Energoatom Non-Financial Report 2016 Non-Financial Report 2016 SE NNEGC Energoatom 11 Appendices Appendices ENERGOATOM TODAY Energoatom structure REPRESENTATIVE OFFICE Address by Energoatom by Energoatom Address IN BRUSSELS president DONUZLAVSKAYA VES13 Energoatom today Energoatom UPRAVLINNIA SPRAVAMY ATOMREMONTSERVICE Corporate governance governance Corporate and sustainability ZAPORIZHZHYA NPP RIVNE NPP ATOMPRYLAD ATOMENERGOMASH ENERGOATOM’S Investment projects Investment HEAD OFFICE SCIENTIFIC AND TECHNICAL CENTER ATOMKOMPLEKT Safety culture Safety KHMELNYTSKA NPP SOUTHUKRAINE NPP SKLADSKE GOSPODARSTVO ATOMPROJECTENGINEERING Environmental Environmental responsibility Our employees and Our employees local communities local AUTOMATION & ENGINEERING EMERGENCY AND TECHNICAL CENTER 12 SE NNEGC Energoatom Non-Financial Report 2016 Non-Financial Report 2016 SE NNEGC Energoatom 13 Appendices Appendices ENERGOATOM TODAY Address by Energoatom by Energoatom Address COMPANY'S STRUCTURE president Energoatom runs four operating NPPs of Ukraine, with 15 power The main purpose of Energoatom's activity is to safely increase According to the Law of Ukraine On the Use of Nuclear Energy functions of an