JSC ATOMENERGOMASH 2016 INTEGRATED ANNUAL REPORT ar2016.aem-group.ru JSC Atomenergomash provides access to the integrated interactive version of the annual report for 2016 for its stakeholders. This product allows easy information presentation of the main annual results of the Company, as well as the access to additional data, which was not included in the print version in a analysis-friendly format. i – Links to online version GRI – GRI indicators Approved by the Board of Directors on May 26, 2017 Preliminarily approved by the Chief Executive Officer on May 19, 2017 Chief Executive Officer Andrey Nikipelov JSC ATOMENERGOMASH THE COMPANY IN BRIEF Contents 10 YEARS OF PROGRESS ............................................................................................................................4 THE COMPANY IN BRIEF ..............................................................................................................................6 6. ENVIRONMENTAL IMPACT ...................................................................................................................66 2016 PERFORMANCE HIGHLIGHTS ............................................................................................................8 6.1. Ecological management ................................................................................................................................................................................................66 6.2. Emissions and Wastes .....................................................................................................................................................................................................70 KEY EVENTS IN 2016 ...................................................................................................................................9 7. HR MANAGEMENT .................................................................................................................................74 1. THE COMPANY’S BUSINESS MODEL AND DEVELOPMENT STRATEGY ...........................................14 7.1. Personnel Composition ....................................................................................................................................................................................................74 1.1. Business Model ........................................................................................................................................................................................................................14 7.2. Labor Conditions and Organization .....................................................................................................................................................................78 1.2. Strategic Vision and Objectives ..............................................................................................................................................................................22 7.3. Occupational Safety and Health .........................................................................................................................................................................79 1.3. Company Position in the Market .............................................................................................................................................................................23 7.4. Managing the performance of staff .................................................................................................................................................................81 1.4. Sustainable Development of the Company ..................................................................................................................................................29 7.5. Availability of Replacement Personnel ........................................................................................................................................................82 2. CORPORATE GOVERNANCE .................................................................................................................. 30 8. INTERACTION WITH SOCIETY ..............................................................................................................86 2.1. Corporate Governance System ..............................................................................................................................................................................30 8.1. Social investments and charity ............................................................................................................................................................................88 2.2. Ethics and Anti-Corruption Practices ..............................................................................................................................................................36 8.2. Compliance with Applicable Laws ......................................................................................................................................................................90 2.3. Internal control and audit .......................................................................................................................................................................................37 2.4. Risk Management ................................................................................................................................................................................................................37 9. COMMUNICATION ACTIVITIES .............................................................................................................92 9.1. External communications and corporate branding ............................................................................................................................92 3. FINANCIAL AND ECONOMIC ACTIVITIES ............................................................................................40 9.2. Internal Communications .............................................................................................................................................................................................95 3.1. Economic performance and financial position ..........................................................................................................................................40 3.2. Commercial Activities .....................................................................................................................................................................................................46 APPENDICES ...............................................................................................................................................96 3.3. Investment Activities ......................................................................................................................................................................................................48 Appendix 1. Glossary .................................................................................................................................................................................................................96 Appendix 2. Information about the Report.............................................................................................................................................................98 4.PRODUCTION ACTIVITIES ......................................................................................................................50 Appendix 3. GRI SRS content indicator.......................................................................................................................................................................100 4.1. Results of Production Activities ...........................................................................................................................................................................50 Appendix 4. Accounting Statements of JSC Atomenergomash ............................................................................................................105 4.2. Quality and Industrial Safety ...............................................................................................................................................................................53 Appendix 5. Combined Accounting Statements ..................................................................................................................................................107 4.3. Optimization of Production Processes .............................................................................................................................................................55 Appendix 6. Auditor’s Report on Accounting (Financial Statements) ..........................................................................................109 4.4. Procurement Activities .................................................................................................................................................................................................57 Appendix 7. Report on Analysis of Combined Financial Statements ..............................................................................................110 5.INNOVATION ACTIVITIES .......................................................................................................................60 CONTACT INFORMATION ........................................................................................................................