Appendices

Appendix 1.
Auditor’s Report on Financial Statements for the Year 2016

THE AUDITED ENTITY

Name: Joint-Stock Company “TVEL” (hereinafter referred to as JSC “TVEL”).

Location: 49 Kashirskoe shosse, Moscow 115409, Russian Federation.

State registration: Registered by Moscow Registration Chamber on September 12, 1996, certificate No. 061.775. Registered in the Unified State Register of Legal Entities under Unified State Number 1027739121475.

THE AUDITOR

Name: Financial and Accounting Consultants Limited Liability Company (FBK LLC).

Location: 44/1 Myasnitskaya St, Building 2AБ, Moscow 101990.

State registration: Registered by Moscow Registration Chamber on November 15, 1993, certificate: series ЮЗ 3 No 484.583 РП. Registered in the Unified State Register of Legal Entities on July 24, 2002 under Unified State Number 1027700058286.

Membership in Self-Regulating Organization of Auditors: Audit Chamber of Russia Non-profit Partnership.

Number in the audit organizations register of the self-regulating organization of auditors: Certificate of membership in Audit Chamber of Russia Non-profit Partnership No. 5353, PRNE — 10201039470.


We have performed the audit of the attached financial statements of JSC “TVEL” consisting of the Balance sheet as of December 31, 2016, Profit and Loss Statement, Capital Statement and Cash Flow Statement for the year 2016, other appendices to the Balance sheet and Profit and Loss Statement.


LIABILITY OF THE AUDITED ENTITY FOR FINANCIAL STATEMENTS

The Management of the Audited Entity shall be liable for execution and reliability of the mentioned financial statements in accordance with the Russian regulations on preparation of the financial statements, as well as for internal control system required for preparation of the financial statements free from material misstatements due to unfair practices or errors.


AUDITOR’S RESPONSIBILITY

Our liability lies in expression of opinion on reliability of annual financial statements on the basis of conducted audit. We have conducted audit in accordance with the Federal Auditing Standards. These standards require compliance with applicable ethical practices, as well as planning and conduction of audit in such a way to get reasonable assurance that financial statements contain no material misstatements.

The audit included auditing procedures aimed at obtaining of audit evidence to confirm index numbers in financial statements and disclosure of information therein. Choice of audit procedures is the subject of our judgement which is based on assessment of risk of material misstatements due to unfair actions or errors. In the course of this risk assessment we have considered internal control system ensuring execution and reliability of financial statements with the view to select appropriate audit procedures, but with no view to express opinion on efficiency of internal control system.

The audit also included assessment of appropriate applicable accounting policy and validity of estimated figures obtained by management of the Audited Entity, as well as assessment of financial reporting in whole.

We believe that audit evidence obtained in the course of the audit provides reasons enough to offer an opinion on reliability of the financial statements.


OPINION

In our opinion the financial statements give true and fair to all intents view of the financial situation of JSC “TVEL” as of December 31, 2015; its business and financial performance and cash flow for the year 2016 are in accordance with Russian regulations on financial reporting.

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On the grounds of the Articles of Association Auditor qualification certificate 01-001230, PRNE 21606043397

Date of the auditor’s report March 1, 2017

Appendix 2.
Financial Statements for the Year 2016

BALANCE SHEET AS AT DECEMBER 31, 2016

Organization Joint-Stock Company “TVEL”
Taxpayer Identification Number 7706123550
Type of business Production of nuclear fuel
Form of incorporation / form of ownership Joint-Stock Company
Measurement unit in thous. RUB
Location (address) Bld. 24, Bolshaya Ordynka st., Moscow, 119017
Codes
Form under OKUD 0710001
Date (day, month, year) 31.12.2016
under OKPO 45046040
under OKVED 24.46
under OKОPF / OKFS 12267/16
under OKEI 384
Index description Code As on December 31, 2016 As on December 31, 2015 As on December 31, 2014
ASSETS
I. NON-CURRENT ASSETS
Intangible assets 1110 1,055,754 1,329,604 1,230,846
Results of research and development 1120 470,339 511,917 740,754
Intangible development assets 1130 _
Tangible development assets 1140 _
Fixed assets 1150 114 382 205,058 274,047
Buildings, vehicles, equipment etc. 1151 114,382 200,808 273,996
Capital investments in progress 1152 _ _ 51
Advances to suppliers 1153 4,250 _
Income-bearing investments in tangibles 1160 456,569 467,682 485,646
Financial investments 1170 209,655,354 223,589,430 227,032,338
Deferred tax assets 1180 4,042,626 805,569 227,032 338
Other non-current assets 3,310,529 4,042,626 2,867,665 3,621,900
Total I 1100 219,105,553 230,451,954 234,191,100
II. CURRENT ASSETS
Stock 1210 68,750,309 84,916,423 93,806,971
Raw, materials and other similar assets 1211 8,578,293 8,581,245 6,884,676
Work in progress expenditures 1212 48,957,800 61,716,761 70,817,625
Finished products and goods for resale 1213 11,214,216 14,618,417 16,100,094
Shipped goods 1214 _ 4,576
Other stock and expenses 1219 _ _
Value added tax on purchased assets 1220 8,575,202 13,017,390 12,250,848
Accounts receivable 1230 30,104,703 20,641,223 19,644,302
Settlements with buyers and customers 1231 18,387,786 14,927,726 8,435,974
Advances made 1232 611,518 2,151,253 4,596,807
Other debtors 1233 11,105,399 3,562,244 6,611,521
Unpresented for payment accrued revenue 1234 _ _
Financial investments (excluding cash) 1240 27,797,237 1,640,000 1,437,730
Cash 1250 9,435,365 42,826,542 5,651,930
Other current assets 1260 454,658 863,924 327,915
Total II 1200 145,117,474 163,905,502 133,119,696
BALANCE 1600 364,223,027 394,357,456 367,310,796
LIABILITIES
III. CAPITAL AND RESERVES
Equity capital (pooled capital, collective capital, contribution of partners) 1310 22,962 22,962 22,962
Own shares redeemed from shareholders 1320 (-) (-) (-)
Received contributions from stockholders to share capital before registration of changes in constituent documents 1130 _ _
Revaluation of non-current assets 1140 _ _
Additional capital (without revaluation) 1350 181,731,834 181,732,335 181,734,382
Reserve capital 1360 258,255 125,886 103,393
Reserves formed in accordance with legislation 1361 257,107 124,738 102,245
Reserves formed in accordance with founding documents 1362 1,148 1,148 1,148
Undistributed profit (uncovered loss) 1370 97,246,595 105,197,731 82,458,042
Total III 1300 279,259,646 287,078,914 264,318,779
IV. LONG-TERM LIABILITIES
Borrowed funds 1410 _ 12,751,384
Deferred tax liabilities 1420 _ _
Estimated liabilities 1430 _ _
Other liabilities 1450 1,062,434 925,753 901,345
Total IV 1400 1,062,434 925,753 13,652,7295
V. SHORT-TERM LIABILITIES
Borrowed funds 1510 40,181,112 63,008,851 48,464,746
Accounts payable 1520 442,507,215 42,253,983 40,051,361
Suppliers and contractors 1521 25,586,785 20,874,830 22,127,329
Advances received 1522 12,434,174 18,249,393 15,487,422
Accounts payable to employees 1523 1,496 1,356 1,369
Accounts payable to state non-budget bodies 1524 70 68
Accounts payable in respect of taxes and levies 1525 3,318 17,472 7,440
Other creditors 1526 4,481,442 3,110,862 2,427,733
Deferred income 1530 369,039 912 863
Estimated liabilities 1540 843,581 1,089,043 817,560
Provisions 1546 _ 4,758
Accounts payable to customers 1547 _ _
Other liabilities 1550
Total V 1500 83 900 947 106,352,789 89,339,288
BALANCE 1700 364,223,027 394,357,456 367,310,796
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“01” March 2017

PROFIT AND LOSS STATEMENT FOR THE YEAR 2016

Organization Joint-Stock Company “TVEL”
Taxpayer Identification Number 7706123550
Type of business Production of nuclear fuel
Form of incorporation / form of ownership Joint-Stock Company
Measurement unit in thous. RUB
Location (address) Bld. 24, Bolshaya Ordynka st., Moscow, 119017
Codes
Form under OKUD 0710002
Date (day, month, year) 31.12.2016
under OKPO 45046040
under OKVED 24.46
under OKОPF / OKFS 12267/16
under OKEI 384
Index description Code Over 12 months of 2016 Over 12 months of 2015
Proceeds, including 2110 147,245,526 150,708,146
proceeds from sale of own products 129,289,163 133,942,423
proceeds from sale of goods 2112 _ _
proceeds from carrying out work, rendering services 14,426,701 15,721,972
Prime cost of sales, including 2120 (94,636,751) (93,740,391)
prime cost of sales of own products (83 ,08,951) (80,966,383)
prime cost of sales of goods _ _
prime cost of carrying out work, rendering services (10,236,737) (12,169,479)
Gross profit (loss) 2100 52,608,775 56,967,755
Commercial expenses 2210 (2,142,985) (2,171,015)
Management expenses 2220 (8,167,555) (6,717,281)
Sales profit (loss) 2200 42,298,234 48,079,459
Income from participation in other entities 2310 2,816,603 1,929,684
Interest receivableInterest receivable 2320 1,589,293 595,691
Interest payable 2330 (4,181,471) (4,893,493)
Other income, including: 2340 2,661,314 5,296,603
Income from parcels sales in main company and subsidiaries _ 462 000
Income from raw material, supplies and unmarketable goods (net) 350,381 _
Income from courses margin of imputations and assets in foreign currency _ 4,146,927
Income from reevaluating of capital issues according to market value _
Income from foreign currency sales or purchases 774,039
Income from reversal of provision for depreciation of investment/ contribution to legal capital of associated company
Income from sales of fixed assets (net) _ 1,062
Income from lease out of fixed assets (net) movable assets _ 24,091
Income from lease out of fixed assets (net) properties _ _
Income from granting rights of using the results of intellectual activity 205,221
Other income (net) _ _
Income from inventory surplus and other property as a result of inventory check _ _
Other expenses, including: 2350 (21,352,489) (4,587,357)
Income from parcels sales in main company and subsidiaries _
Expenses from currency differences on liabilities and assets in foreign currency (6,171,144) _
Worth from commodities and materials sales _
Amortization of intangible assets _
Amortization of leased out fixed assets, lease _ _
Expense from reevaluating of capital issues according to market value _
Expenses for provisions for financial investments impairment _ (3 241 305)
Expense for reversal of provision for tax claims _ (283 420)
Expenses for bank service besides percental expenses _
Expense for reserve of investment depreciation/contribution to legal capital of other companies purchased for other purposes (12,709,792)
Depreciable value from fixed assets sales _ _
Expenses of leased out fixed assets, lease _ _
Penalty and charges to the budget _ _
Expenses for charity purposes and voluntary contributions _ (244,605)
Income (loss) before tax 2300 23,831,484 46,420,587
Current profit tax 2410 (6,978,752) (9,710,855)
including permanent tax liabilities (assets) 2421 (218,385) (119,631)
Variation of deferred tax liabilities 2430 8,959 41,631
Variation of deferred tax assets 2450 2,548,432 651,412
Other 2460 (65,867) (24,260)
Redistribution of profit tax within consolidated group of taxpayers 2465 2,237,544 657,254
Net profit (loss) 2400 21,581,800 38,035,769
For reference only Result of revaluation of non-current assets not to be included in net profit (loss) of the period 2510 _ _
Result of other operations not to be included in net profit (loss) of the period 2520 (501) (2,047)
Cumulative financial result for the period 2500 21,581,299 38 033 722
Basic earnings (loss) per share 2900 0,94 1,60
Diluted earnings (loss) per share 2910 _ _
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“01” March 2017

CAPITAL STATEMENT FOR THE YEAR 2016

Organization Joint-Stock Company “TVEL”
Taxpayer Identification Number 7706123550
Type of business Production of nuclear fuel
Form of incorporation / form of ownership Joint-Stock Company
Measurement unit in thous. RUB
Location (address) Bld. 24, Bolshaya Ordynka st., Moscow, 119017
Codes
Form under OKUD 0710003
Date (day, month, year) 31.12.2016
under OKPO 45046040
under OKVED 24.46
under OKОPF / OKFS 12267/16
under OKEI 384

1. Flow of capital

Index description Code Equity capital Own shares redeemed from shareholders Additional capital Reserve capital Undistributed profit (uncovered loss) Total
Value of the capital as of December 31, 2014 3100 22,962 181,734,382 103,393 82,458,042 264,318,779
FOR THE YEAR 2015
Increase of capital — total 3210 _ _ _ 814 3,067,705 38,035,769 41,104,288
including:
net profit 3211 Х Х Х Х Х 38,035,769 38,035,769
revaluation of property 3212 Х Х Х Х _
income charged directly to increase of capital 3213 Х Х Х 814 3,067,705 3,068,519
additional emission of shares 3214 Х _
increase in the par value of shares 3215 Х _
reorganization of the legal entity 3216 _
use of industry-based reserves for investment purposes 3217 Х Х Х Х Х _
share capital payment before changes in constituent documents were recorded 3218 Х Х Х Х Х _
Reduction of the capital — total: 3220 _ _ _ (2,861) (3,045,212) (15,296,080) (18,344,153)
including:
loss 3221 Х Х Х Х _
revaluation of property 3222 Х Х Х _
expenses charged directly to reduction of the capital 3223 Х Х (2,861) (3,045,212) (3,048,073)
decrease in the par value of shares 3224 Х _
decrease in the number of shares 3225 Х _
reorganization of the legal entity 3226 _
dividends 3227 Х Х Х Х (15,296,080) (15,296,080)
share capital payment before changes in constituent documents were recorded 3228 Х Х Х Х Х _
Change in the additional capital 3230 Х Х Х Х
Change in the reserve capital 3240 Х Х Х Х Х
Value of the capital as on December 31, 2015 3200 22,962 _ _ 181,732,335 125,886 105,197,731 287,078,914
FOR THE YEAR 2016
Increase of the capital — total: 3310 _ _ _ 278 4,699,894 21,581,800 26,281,972
including:
net profit 3311 Х Х Х Х Х 21,581,800 21,581,800
revaluation of property 3312 Х Х Х Х _
income charged directly to increase of capital 3313 Х Х Х 278 4,699,894 4,700,172
additional emission of shares 3314 Х _
increase in the par value of shares 3315 Х _
reorganization of the legal entity 3316 _
use of industry-based reserves for investment purposes 3317 Х Х Х Х Х _
share capital payment before changes in constituent documents were recorded 3318 Х Х Х Х Х _
Reduction of the capital — total: 3320 _ _ _ (779) (4,567,525) (29,532,936) (34,101,240)
including:
loss 3321 Х Х Х Х _
revaluation of property 3322 Х Х Х _
expenses charged directly to reduction of the capital 3223 Х Х (779) (4,567,525) (4,568,304)
decrease in the par value of shares 3324 Х _
decrease in the number of shares 3325 Х _
reorganization of the legal entity 3326 _
dividends 3327 Х Х Х Х (29,532,936) (29,532,936)
share capital payment before changes in constituent documents were recorded 3328 Х Х Х Х Х _
Change in the additional capital 3330 Х Х Х Х
Change in the reserve capital 3340 Х Х Х Х Х
Liability on December 31, 2016 3300 22,962 _ _ 181,731,834 258,255 97,246,595 279,259,646

2. Corrections due to change in the accounting policy and elimination of errors

Index description Code As of December 31, 2015 Changes in the capital for 2016 As of December 31, 2016
on account of the net profit (loss) based on other factors
Capital — total
before corrections 3400 _ _ _ _
correction due to:
change in the accounting policy 3400 _ _ _ _
elimination of errors 3200 _ _ _ _
after corrections 3500 _ _ _ _
including:
undistributed profit (uncovered loss):
before corrections 3401 _ _ _ _
correction due to:
change in the accounting policy 3411 _ _ _ _
elimination of errors 3421 _ _ _ _
after corrections 3501 _ _ _ _
other capital items, where corrections were made:
before corrections 3402 _ _ _ _
correction due to:
change in the accounting policy 3412 _ _ _ _
elimination of errors 3422 _ _ _ _
after corrections 3502 _ _ _ _

3. Net assets

Index description Code As of December 31, 2016 As of December 31, 2015 As of December 31, 2014
Net assets 3600 279,261,955 287,079,734 264,319,192
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CASH FLOW STATEMENT FOR THE YEAR 2014

Organization Joint-Stock Company “TVEL”
Taxpayer Identification Number 7706123550
Type of business Production of nuclear fuel
Form of incorporation / form of ownership Joint-Stock Company
Measurement unit in thous. RUB
Location (address) Bld. 24, Bolshaya Ordynka st., Moscow, 119017
Codes
Form under OKUD 0710003
Date (day, month, year) 31.12.2016
under OKPO 45046040
under OKVED 24.46
under OKОPF / OKFS 12267/16
under OKEI 384
Index description Code Over 12 months of 2016 Over 12 months of 2015
CASH FLOW ASSOCIATED WITH DAY-TO-DAY OPERATIONS
Receipts — total 4110 139,075,345 150,720,783
including:
from sale of products, goods, works and services 4111 137,008,106 146,923,729
from lease payments, license payments, royalty and other similar payments 4112 446,160 199,936
from re-sale of financial investments 4113
other receipts 4119 1,621,079 3,597,118
Payments — total 4120 (94,644,551) (105 307 854)
including:
поставщикам (подрядчикам) за сырье, материалы, работы, услуги 4121 (77,250,914) (86,456,357)
associated with remuneration of employees labor 4122 (2,130,913) (2,274,553)
interest on debt obligations 4123 (3,984,701) (4,893,835)
corporate profit tax 4124 (6,406,575) (6,369,643)
other payments 4129 (4,871,448) (5,313,466)
Balance of cash flow associated with day-to-day operations 4100 44,430,794 45,412,929
CASH FLOW ASSOCIATED WITH INVESTMENT ACTIVITIES
Receipts — total 4210 121,234,156 40,493,140
including:
from sale of non-current assets (except for financial investments) 4211 115,855 2,526
from sale of shares (participation shares) in other organizations 4212 916,442 371,593
from return of loans granted, from sale of debt securities (rights of funds claim from third parties) 4213 114,942,600 37,772,446
dividends, interest from long-term financial investments and similar revenues from share interests in other companies 4214 4,230,926 2,346,575
other receipts 4219 1,028,333 2,346,575
Payments — total 4220 (142,314,916) (38,693,172)
including:
associated with acquisition, creation, modernization, reconstruction and preparation for current assets operation 4221 (1,100,888) (1,139,878)
associated with acquisition of shares (participation shares) in other organizations 4222 _
associated with acquisition of debt securities (rights of funds claim from third parties), loans provision to third parties 4223 (141,214,028) (37,553,283)
interest on debt obligations included in the value of investment asset 4224 _
other payments 4229 (11)
Balance of cash flow associated with investment activities 4200 (21,080,760) 1,799,968
Index description Code Over 12 months of 2016 Over 12 months of 2015
CASH FLOW ASSOCIATED WITH FINANCIAL ACTIVITIES
Receipts – total 4310 58,507,400 37,548,499
including:
getting credits and loans 4311 58,507,400 37,548,499
owners’ (participants’) money deposits 4312
from issue of shares, increase in participation shares 4313
from issue of bonds, promissory notes and other debt securities and etc. 4314
budgetary provisions and other target financing 4315
other receipts 4319
Payments — total 4320 (107,197,008) (53,266,652)
including:
to owners (participants) due to repurchase their shares or their resignation 4321 _
for payment of dividends and other payments under distribution of profit in favour of owners (participats) 4322 (28,232,936) (15,296,080)
associated with payment (repurchase) of promissory notes and other debt securities, repayment of credits and loans 4323 (78,964,072) (37,970,572)
other payments 4329 _
СBalance of cash flow associated with financial operations 4300 (48,689,608) (15,718,153)
Balance of cash flow for the reporting period 4400 (25,339,574) 31,494,744
Balance of cash and cash equivalents as of reporting period beginning 4450 42,826,542 5,651,930
Balance of cash and cash equivalents as of reporting period end 4500 9,435,365 42,826,542
Effect of exchange rate changes to ruble 4490 (8,051,603) 5,679,868
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“02” March 2016


Appendix 3.
Report of the Internal Control and Audit Department of TVEL JSC following the Results of “Public Annual Reporting Preparation” Audit Process


The internal audit of the process of preparing the public annual report of TVEL JSC (further — the Report) was executed in compliance with “The Procedure for Planning and Conducting Internal Audits of Business Processes Carried out by TVEL JSC and the Companies Included in the Management System of the Fuel Company”, to be approved by the Order No.271 of the President TVEL JSC dated December 14, 2011.

In conformity with the Regulation of Public Annual Reports (Order of the President d/d February 10, 2016 No. 4/32-P), TVEL JSC approved the order d/d November 23, 2016 No. 4/393-P “Concerning preparation of Annual Report of TVEL JSC for 2016”, which defines the basic stages and dates of the Report generation, including preparation of the Concept for the Report, information accumulation, the draft Report, obtaining the conclusions from the permanent technical commission, expertise of the draft Report of the public reporting working group of ROSATOM, conducting public events (dialogues, public consultations) with the stakeholders, ensuring public approval of the Report by the Board of Directors of TVEL JSC and the annual meeting of shareholders.

The auditing covered the following:

  • Assessment of efficiency of the internal control system for the process of rendering the public annual reporting (including the analysis of regulations and formalization of the key processes related to generation of the public annual report; analysis of effective implementation of key control procedures ensuring the accuracy of the public annual reports);
  • Assessment of conformity of the public annual reporting generation procedure with the requirements of applicable laws and internal statutory requirements regulating the business process of public annual reporting preparation.
  • The recommendations of improving the quality of preparing public annual report were given.

The audit results proved the satisfactory status of the internal control system for the process of making the public annual reporting and the compliance of the annual public reporting generation procedure of TVEL JSC with the applicable laws, Policy of ROSATOM in the sphere of public reporting and the requirements of internal statutory documents of TVEL JSC regulating the process of public annual reporting preparation.


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Appendix 4.
Independent Assurance Report on Joint-Stock Company “TVEL” Annual Report 2016


INTRODUCTION

The Independent Assurance Report is addressed to the Management of Joint-Stock Company “TVEL” (hereinafter referred to as JSC “TVEL”).

The subject of assurance is the annual report of JSC “TVEL” (hereinafter referred to as the Report) including information on key organisations of TVEL Fuel Company within the declared consolidation perimeter, as well as sustainability activities of JSC “TVEL”.


RESPONSIBILITIES

The management of JSC “TVEL” bears full responsibility for the preparation and accuracy of the Report.

We are responsible for the results of independent assurance of the Report only to JSC “TVEL” within the engagement and do not assume any responsibility to any third party.


SCOPE, CRITERIA AND LEVEL OF ASSURANCE

Sustainability activities of JSC “TVEL” was evaluated considering the following criterion:

  • Nature and level of JSC “TVEL” compliance with the principles of the AA1000 Accountability Principle Standard 2008 — inclusivity, materiality, responsiveness.

The Report was evaluated considering the following criteria:

  • Compliance with the requirements of GRI Sustainability Reporting Standards (Comprehensive option);
  • Compliance with the requirements of the International Integrated Reporting Framework;
  • Compliance of the Report preparation process with the requirements of State Corporation “Rosatom” in the sphere of public reporting.

The engagement was planned and performed in accordance with AA1000 Assurance Standard 2008 (moderate level of assurance) and International Standard on Assurance Engagement ISAE 3000 (revised) “Assurance engagements other than audits or reviews of historical financial information” (limited level of assurance). The statement corresponds to type 2, as defined by АА1000AS 2008, in accordance with the limitations specified in section “Limitations of the engagement” of the present statement.

The selective verification of information in the Report performed under aforementioned levels of assurance does not claim to provide a high level of assurance. The work was based on the supporting materials provided by the management of the entity and its employees, publicly available information and analytical methods of confirmation. In relation to the quantitative information contained in the Report the work performed cannot be considered sufficient for identification of all possible deficiencies and misstatements. However, the collected evidence is sufficient for expressing our conclusion in accordance with the above levels of assurance.


METHODOLOGY OF ASSURANCE

In our engagement, we have performed the following procedures:

  • Study and selective testing of systems and processes implemented by JSC “TVEL” to ensure and analyze the compliance of the activities with AA1000APS 2008 principles; collection of evidence confirming practical implementation of these principles.
  • Participation in the dialogues and public presentation of the Report, study of minutes of public dialogues.
  • Interviewing the management and employees of JSC “TVEL” and obtaining documentary evidence.
  • Study of information available on the web-sites of JSC “TVEL” and its subsidiary companies related to their activities in the context of sustainable development.
  • Analysis of non-financial reports of foreign companies working in the similar market segment for benchmarking purposes.
  • Analysis of the current system of internal audit of non-financial reporting in JSC “TVEL”.
  • Selective review of documents and data on the efficiency of the management systems of economic, environmental and social aspects of sustainable development in JSC “TVEL”.
  • Study of the existing processes of collection, processing, documenting, verification, analysis and selection of data to be included into the Report.
  • Analysis of information in the Report for compliance with the aforementioned criteria.

LIMITATIONS OF THE ENGAGEMENT

The engagement was performed only in relation to data for the year ended 31 December 2016.

The evaluation of reliability of the information on performance in the Report was conducted in relation to compliance with the criteria to be applied to prepare sustainability report ‘in accordance’ with the GRI Standards and nonfinancial information referred to in the GRI Con-tent Index, as well as in relation to compliance with requirements of the International Integrated Reporting Framework. In respect to the quantitative performance indicators the conformity assessment to external and internal reporting documents provided to us is performed.

Assurance does not apply to forward-looking statements, as well as statements expressing the opinions, beliefs and intentions of JSC “TVEL” to take any action relating to the future. The assurance on the statements which are based on expert opinion is not performed.

Assurance is performed only in relation to the Russian version of the Report in the MS Word format which includes information to be published in a hard-copy form as well as in digital form on the JSC “TVEL” website. This assurance report is the translation of the Russian original. The Russian version prevails.


CONCLUSIONS

The following conclusions are based on the assurance work performed within the limitations of the engagement specified above.


Nature and extent of compliance of JSC “TVEL” with AA1000 APS 2008 principles

As a result and within the scope of our work, we did not identify material non-compliance with criteria of AA1000APS 2008 in respect to adherence of JSC “TVEL” to the principles (Inclusivity, Materiality, and Responsiveness).


Compliance of the Report with the GRI Sustainability Reporting Standards (Comprehensive option)

Analysis of compliance to the GRI Standards requirements

In order to form a position on this issue, we have performed analysis of compliance to the GRI Standards requirements concerning principles and disclosures for the chosen ‘in accordance’ option.

  • General disclosures are reported mainly in compliance with the requirements of the standard GRI 102 (2016) for the chosen ‘in accordance’ option. Employees’ structure (102-8) is reported not in absolute but in relative indicators.
  • Management approach disclosures are re-ported mainly in compliance with the requirements of the standard GRI 103 (2016): explanations of why the topic is material and of how the organization manages the topics are reported for material topics as well as explanations of how the organization evaluates the management approach for some material topics.
  • Topic-specific disclosures required for the Comprehensive option are reported in compliance with requirements of GRI Standards. If it is not possible to disclose required information, the Report identifies the information that has been omitted and explains reason for omissions.

Overall assessment of the Report

  • As a result and within the scope of our work, we did not identify material non-compliance to the requirements to the report prepared ‘in accordance’ with the Comprehensive option of the GRI Standards. The conclusion is stated taken into account abovementioned analysis of compliance to the GRI Standards requirements.

Compliance of the Report with the requirements of the International Integrated Reporting Framework

Based on the procedures performed and evidence obtained, we did not identify material non-compliance with the guiding principles of the International Integrated Reporting Framework and with requirements to the structure of content elements of integrated reports.


Compliance of the Report preparation process with the requirements of State Corporation “Rosatom” in the sphere of public reporting

Based on the procedures performed and evidence obtained, we did not identify material non-compliance of the Report preparation process with the Unified Sectoral Policy of the State Corporation “Rosatom” in the sphere of public reporting and the Standard of Public Reporting of the State Corporation “Rosatom” and its organisations.


Recommendations

  1. It is reasonable to disclose GRI indicators in relation to target values.
  2. In case of significant changes in the list of material topics, explain reasons of changes in impact assessment.
  3. Increase completeness of reporting on material topics by reducing the number of disclosures with omissions.
  4. In case of disclosure with omissions due to absence of a recording system, provide more specific information about plans to obtain data in future.
  5. Take into account remarks in the foregoing sections of the statement.

STATEMENT OF COMPETENCE AND INDEPENDENCE

“NP Consult” LLC, an independent audit firm, professionally rendering assurance services, is a licensed provider of assurance services in accordance with AA1000 Assurance Standard. “NP Consult” LLC is a member of Self-regulatory organization of auditors Association “Sodruzhestvo”. “NP Consult” LLC complies with the independence and other ethical requirements of the Code of Ethics for Professional Accountants issued by the International Standard Board for Accountants, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior. “NP Consult” LLC applies International Standard on Quality Control 1 and, accordingly, maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. “NP Consult” LLC employs a system of quality con-trol of audit services, including control of compliance to ethical norms.

“NP Consult” LLC states that the present assurance report is an independent auditor’s position on the Report. “NP Consult” LLC and its staff have no relations with JSC “TVEL” and its subsidiary companies that could result in the conflict of interest related to the independent assurance of the Selected Indicators.


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Appendix 5.
Statement on Public Assurance of the JSC TVEL Report for 2016


INTRODUCTION

JSC “TVEL” management (parent company of the TVEL Fuel Company) contacted us with an offer to assure the 2016 Annual Report of the TVEL Fuel Company (hereinafter “the Report”) in terms of completeness and relevance of information disclosed therein, and to assess the performance of management in response to recommendations and remarks of stakeholders.


DRAFT REPORT EVALUATION PROCEDURE

We are sufficiently competent and skilled in the sphere of corporate social responsibility, sustainable development and non-financial reporting.

We hereby confirm that we are acting independently and undertake to be objective in our evaluation, thereby expressing our personal expert opinion rather than the opinion of organizations we represent. No remuneration has been received from TVEL FC for our efforts and time invested in this project.

Our conclusion is based on the study of the Report and the analysis of information obtained in the course of dialogues and public consultations, where we and our representatives were allowed to participate and freely express our opinion on the matters under discussion.

We are not aware of any facts that compromise reliability of data set forth in this Report. However, checking of the data collection system and verification of reliability and completeness of information is not the subject matter of public assurance.

The results of our work are formalized in this Statement on Public Assurance wherein the opinions we all agreed upon are presented.


ESTIMATES, COMMENTS AND RECOMMENDATIONS

We all share positive opinion about the Report and note the endeavors of TVEL FC management to apply advanced international standards. Another characteristic feature of the Report 2016 is preparing the report according to the new version of GRI Standards (comprehensive option)

TVEL FC has prepared an informative and well-structured document that meets our expectations. It is our opinion that the priority topic of the Report – “New markets and partners of TVEL Fuel Company” is fully disclosed: The information about international and social partners was given. Also the information about expansion into new markets both in primary activity and in new businesses was presented. The Report was supplemented by the quotations of the Company partners, giving an opportunity to hear not only the opinion of TVEL Fuel Company but also the opinions of its contracting parties.

The Report sums up the results for 2016 and demonstrates the dynamics over the period of three years. The existence of such features as KPI on the next reporting period and either medium- or long-term outlook gives an opportunity to evaluate the effectiveness of Company’s activity. There are also such features as: Company’s strategy described in details, contribution of the reporting year in realization of this strategy, SWOT-analysis and factors of stability of the Company. These features definitely contribute to the merit of this Report. We would like to point out the constructive nature of stakeholder engagement demonstrated by the management in the course of preparation of the Report and during the dialogues and public consultations, as well as top quality organization of these events.

For providing more clear and complete information we recommend to include in the Report more analytical comments which would explain changes in measures or deviation of plan/actual.


COMPLETENESS AND MATERIALITY OF INFORMATION

In our opinion, the Report covers all spheres of core activity of the Company, as well as social, environmental and economic aspects of its sustainable development, material for stakeholders. The Report contains relevant information that is sufficiently complete for proper understanding of the current state and prospects of the Company.


COMPANY’S RESPONSE TO COMMENTS AND RECOMMENDATIONS OF STAKEHOLDERS

The Company has duly noted recommendations of the stakeholders in the minutes of dialogues and public consultations, conducted thorough analysis and used most of them in the Report, some of the recommendations to the Company activities were forwarded to the responsible departments. Hereby we confirm that all our suggestions and comments are set forth in the Table of Comments of Stakeholders (Appendix No. 7 to the Report).

Therefore, TVEL FC has demonstrated a responsible approach to implementation of requirements set forth in Public Reporting Policy of ROSATOM, and showed constructive attitude to wishes and suggestions of stakeholders.

We are confident that traditionally high quality of interaction between TVEL FC and stakeholders will be preserved in the future.


Councillor of the Head of the Federal Service for Environmental, Technological and Nuclear Supervision
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A. I. Kislov
Department Head of Federal Environmental, Industrial and Nuclear Supervision Service
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E. G. Kudryavtsev
Executive Director of the Association of Closed Administrative Territorial Unit for Nuclear Industry
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A. I. Makarenko
Chair of the Russian Trade Union of Nuclear Power and Industry Workers
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I. A. Fomichev
Head of Project Department of the Nuclear Fuel Life Cycle ROSATOM State Corporation
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O. I. Linyaev
Deputy head of Kovrov administration on social issues
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S. K. Stepanova
Member of Public Council of ROSATOM State Corporation Member of the Board of the Center for Russian Ecological policy
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V. F. Menshikov
Candidate of Science, Honorable Worker of Russian Water Industry, Director of Institute on consulting for ecological projects, Member of Public Council of ROSATOM
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N. G. Davydova
Head of the Center for Corporate Social Responsibility and Non-financial Reporting of the Russian Union of Industrialists and Entrepreneurs
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E. N. Feoktistova
Executive Director of Interregional Public Ecological Organization “GREENLIGHT”
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O. V. Plyamina
Director General of the Institute of Natural Monopolies Issues
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Yu. Z. Saakyan

Appendix 6.
RUIE Public Endorsement of the Report


EXTRACT FROM MINUTES OF THE COUNCIL OF RUIE ON NON-FINANCIAL REPORTING FROM 22ND OF JUNE 2017 ON THE QUESTION OF THE AGENDA “ABOUT THE PUBLIC ENDORSEMENT OF THE ANNUAL REPORT OF TVEL JSC FOR 2016”.

Regarding the question of the Agenda “About the Public endorsement of the Annual Report of TVEL JSC for 2016” the following decisions were made:

1. To declare the public endorsement of the report as accomplished.

1.1. Put on record in the Statement of public endorsement the following:

Annual Report of TVEL JSC for 2016 covers the key areas of responsible business conduct according to the principals of the Social Charter of the Russian Business and provides sufficient information about company activities in these areas.

1.2. To approve the Statement of public endorsement taking into account discussions.

2. To pay Company’s attention on the following:

The Statement is prepared for TVEL JSC Company, which can use it for intercorporate aims and for aims of communications with stakeholders by means of its publishing in whole without any changes.


Chair of the Council of RUIE on non-financial reporting

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Deputy Chair of Council of RUIE on non-financial reporting

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Appendix 7.
GRI CONTENT INDEX


GRI Standard Disclosure Page number (s) and/or URL Omission
GRI 101: Foundation 2016
General Disclosures
GRI 102: General Disclosures 2016 102-1 Name of the organization "Link",
102-2 Activities, brands, products, and services "Link",
102-3 Location of headquarters "Link",
102-4 Location of operations "Link",
"Link",
102-5 Ownership and legal form "Link",
102-6 Markets served "Link",
102-7 Scale of the organization "Link", "Link", "Link", "Link", "Link", "Link", "Link",
102-8 Information on employees and other workers "Link",
102-9 Supply chain "Link",
102-10 Significant changes to the organization and its supply chain No significant changes have taken place
102-11 Precautionary Principle or approach According to Precautionary Principle TVEL Fuel Company stribes to avoid negative potential impact on environment even if there is lack of full scientific certainty that any given activity can do serious or irreversible damage.
102-12 External initiatives "Link",
102-13 Membership of associationsх "Link",
102-14 Statement from senior decision-maker "Link",
102-15 Key impacts, risks, and opportunities "Link",
"Link",
102-16 Values, principles, standards, and norms of behavior "Link",
102-17 Mechanisms for advice and concerns about ethics "Link",
102-18 Governance structure "Link",
102-19 Delegating authority "Link",
102-20 Executive-level responsibility for economic, environmental, and social topics "Link",
"Link",
102-21 Consulting stakeholders on economic, environmental, and social topics Special consultations between stakeholders and Board of Directors are not carried out
102-22 Composition of the highest governance body and its committees "Link",
"Link",
102-23 Chair of the highest governance body "Link",
"Link",
102-24 Nominating and selecting the highest governance body "Link",
102-25 Conflicts of interest
102-26 Role of highest governance body in setting purpose, values, and strategy "Link",
102-27 Collective knowledge of highest governance body "Link",
"Link",
102-28 Evaluating the highest governance body’s performance "Link",
102-29 Identifying and managing economic, environmental, and social impacts "Link",
102-30 Effectiveness of risk management processes "Link",, Board of Directors does not take part in risk-management
102-31 Review of economic, environmental, and social topics "Link",
102-32 Highest governance body’s role in sustainability reporting Integrated annual report of “TVEL” JSC, that contains information on sustainable debelopment, is approved by Board of Directors
102-33 Communicating critical concerns
102-34 Nature and total number of critical concerns
102-35 Remuneration policies "Link",
"Link",
102-36 Process for determining remuneration "Link",
102-37 Stakeholders’ involvement in remuneration Stakeholders are not involved.
102-38 Annual total compensation ratio
2014 2015 2016
60,7 55,7 53,8
Annual total compensation ratio of “TVEL” JSC president to the median annual total compensation for all employees of TVEL FC (excluding president) in 2016 was 53.8.
102-39 Percentage increase in annual total compensation ratio
2014 2015 2016
10% 18,5% -3%
102-40 List of stakeholder groups "Link",
102-41 Collective bargaining agreements "Link",
102-42 Identifying and selecting stakeholders "Link",
102-43 Approach to stakeholder engagement "Link",
102-44 Key topics and concerns raised "Link",
102-45 Entities included in the consolidated financial statements "Link",
102-46 Defining report content and topic Boundaries "Link",
102-47 List of material topics "Link",
102-48 Restatements of information None
102-49 Changes in reporting
102-50 Reporting period "Link",
102-51 Date of most recent report "Link",
102-52 Reporting cycle "Link",
102-53 Contact point for questions regarding the report "Link",
102-54 Claims of reporting in accordance with the GRI Standards "Link",
102-55 GRI content index "Appendix 7",
102-56 External assurance "Appendix 4. Independent non-financial auditor is selected within the frame of open procurement procedure on the basis of the Company’s president order on Report preparation. ",
Material topics
Economic Performance
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
GRI 201: Economic Performance 2016 201-1 Direct economic value generated and distributed "Link",
201-2 Financial implications and other risks and opportunities due to climate change Not measured
201-3 Defined benefit plan obligations and other retirement plans "Link",
201-4 Financial assistance received from government "Link",
In the reporting period “TVEL” JSC did not receive financial assistance from government.
Anti-corruption
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
205-1 Anti-corruption 2016 7 Disclosure 103-1 Explanation of the material topic and its Boundary "Link",
205-2 Communication and training about anti-corruption policies and procedures "Link",
205-3 Confirmed incidents of corruption and actions taken "Link",
Energy
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
GRI 302: Energy 2016 302-1 Energy consumption within the organization "Link",
Data on amount of sold energy and on total energy consumption are not disclosed due to lack of centralized record-keeping system.
302-2 Energy consumption outside of the organization There is no record-keeping system on energy consumption in supply chain.
302-3 Energy intensity Not measured due to lack of data on total energy consumption.
302-4 Reduction of energy consumption "Link",
302-5 Reductions in energy requirements of products and services Not applicable.
Emissions
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
GRI 305:Emissions 2016 305-1 Direct (Scope 1) GHG emissions "Link",
305-2 Energy indirect (Scope 2) GHG emissions Not measured due to lack of record-keeping system.
305-3 Other indirect (Scope 3) GHG emissions Not measured due to lack of record-keeping system.
305-4 GHG emissions intensity "Link",
305-5 Reduction of GHG emissions "Link",
Reduction of GHG emissions is not measured with regard to reduction activities.
305-6 Emissions of ozone-depleting substances (ODS) "Link",
305-7 Nitrogen oxides NOx, sulfur oxides SOx and other significant air emissions "Link",
Effluents and Waste
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
GRI 306: Сбросы и отходы 306-1 Water discharge by quality and destination "Link",
306-2 Waste by type and disposal method "Link",
306-3 Significant spills There were no significant spills in the reporting period.
306-4 Transport of hazardous waste "Link",
306-5 Water bodies affected by water discharges and/or runoff "Link",
Environmental Compliance
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
GRI 307: Environmental Compliance 2016 307-1 Non-compliance with environmental laws and regulations "Link",
Employment
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
GRI 401: Employment 2016 401-1 New employee hires and employee turnover "Link",
401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees "Link",
Temporary or part-time employees get the same benefits if this is their primary place of employment.
401-3 Parental leave "Link",
m f total
Took parental leave 24 188 212
Returned to work after parental leave 24 225 249
still employed 12 months after their return to work 10 195 205
Total number of employees that returned to work after parental leave ended that were 41,7 86,7 82,3
Labor/Management Relations
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
GRI 402:Labor/Management Relations 2016 402-1 Minimum notice periods regarding operational changes "Link",
Occupational Health and Safety
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
GRI 403: Occupational Health and Safety 2016 403-1 Workers representation in formal joint management–worker health and safety committees "Link",
403-2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities "Link",

Region Value
Moscow (JSC "VNIINM", JSC "MZP") 0,000
Moscow region(JSC "МСЗ") 0,024
Vladimir region( JSC " VPA "Tochmash", JSC "KMZ "). 0,000
Udmurt Republic (JSC ChMP) 0,072
Novosibirsk (ПJSC "NCCP") 0,000
Sverdlovsk Region(JSC "UEIP, LLC "UGCMP", LLC "NRDC", LLC "Uralpribor"). 0,000
Tomsk Region (JSC "SGChE") 0,024
Krasnoyarsk Territory (JSC "PA ECP") 0,000
Irkutsk region(JSC "AECC") 0,000
Saint-Petersburg (JSC "Centrotech-SPb "). 0,000
Nizhny Novgorod (JSC "EDB-Nizhny Novgorod"). 0,000
Lost day rate in 2016
Moscow (JSC "VNIINM", JSC "MZP") 0,000
Moscow region(ПJSC "МСЗ") 0,000
Vladimir region( JSC " VPA "Tochmash", ПJSC "KMZ "). 0,000
Udmurt Republic (JSC ChMP) 0,000
Novosibirsk (JSC "NCCP") 0,000
Sverdlovsk region(JSC "UEIP, 000 "UGCMP", LLC "NRDC", LLC "Uralpribor"). 0,000
Tomsk Region (JSC "SGChE") 0,000
Krasnoyarsk Territory (JSC "PA ECP") 0,000
Irkutsk region(JSC "AECC") 0,000
Saint-Petersburg (JSC "Centrotech-SPb "). 0,000
Nizhniy Novgorod ("EDB-Nizhniy Novgorod JSC"). 0,000
Breakdown by gender is excluded. Injury rates for workers are excluded due to lack of report-keeping system. Absentee rate and lost day rate are calculated by dividing on actual work time and not on scheduled work time.
403-3 Workers with high incidence or high risk of diseases related to their occupation й "Link",
403-4 Health and safety topics covered in formal agreements with trade unions "Link",
Training and Education
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
GRI 404: Training and Education 2016 404-1 Average hours of training per year per employee "Link",
404-2 Programs for upgrading employee skills and transition assistance programs Programs for upgrading employee skills and transition assistance programs
404-3 Percentage of employees receiving regular performance and career development reviews "Link",
Local Communities
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
GRI 419: Socioeconomic Complianceс 2016 413-1 Operations with local community engagement, impact assessments, and development programs "Link",
413-2 Operations with significant actual and potential negative impacts on local communities No operations have significant negative impact on local communities
Socioeconomic Complianceс
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
GRI 419: Socioeconomic Compliance 419-1 419-1 Non-compliance with laws and regulations in the social and economic area In 2016 no material law violations were recorded, no fines or non-monetary sanctions were applied.
Product Quality
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
_ Number of revealed nonconformities "Link",
_ Customers' satisfaction assessment "Link",
Business Continuity
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
Position in the world market
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",0
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
_ Company’s share in the global market of fuel fabrication "Link",
_ Export proceeds "Link",
_ Export orders portfolio for products and services of FE NFC for a 10 year period "Link",
New business directions
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
"Link"
103-3 Evaluation of the management approach "Link",
"Link",
_ Revenue from general industrial activities "Link",
_ Structure of revenue from general industrial activities "Link"
International Cooperation
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
Environment protection
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
_ Environmental expenses "Link",
Radiation environmental impact
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its componentsа "Link",
103-3 Evaluation of the management approach "Link",
Radiation environmental impact
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
_ Pollution of the environment with radionuclides "Link",
RW and SNF Treatment, Rehabilitation of Contaminated Areas
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
_ Presence of RW on the sites of the TVEL Fuel Company subsidiaries "Link",
Decommissioning of Nuclear Facilities
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
_ Federal Target Program activities "Link",
Innovation Activity
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
_ Investments into R&D "Link",
_ Number of registered inventions, utility models, industrial designs and production secrets (know-how) "Link",
_ Number of applications for inventions, utility models, software and databases, production secrets (know-how) "Link",
_ Number of patents of foreign countries "Link",
Remuneration
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
_ Average salary "Link",
_ Ratio of average pay in the subsidiaries of TVEL Fuel Company to average pay in regions of operations "Link",
Demand for Qualified Staff
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
_ Succession pool "Link",
Investment Activities
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary "Link",
103-2 The management approach and its components "Link",
103-3 Evaluation of the management approach "Link",
_ Amount of financing for TVEL FC investment projects "Link",

Appendix 8.
TABLE OF CONSIDERATIONS OF PROPOSALS MADE BY STAKEHOLDERS

No. Proposals of Stakeholders Response by TVEL Fuel Company
1. Revise the description of labor efficiency increase and remove the exchange rate differences from the amount of revenue. Modified accordingly in "Business Assets and Operational Results",, "Second Business Core Development", "Social Partnership in the Territories of Presence".
2. To formulate and show in the report the issue of "hydrogen energy" in the part of second core projects The possibility of disclosing this information in the next report will be considered.
3. Add comparative information to employees' satisfaction assessment (by industry, competitors/partners). The possibility of disclosing this information in the next report will be considered.
4. It is necessary to disclose information on a comprehensive program of employment creation in the territories of presence, to point out where local residents can be employed in case of slump of production. This information should be furnished to public reception offices. Considered in "Social Partnership in the Territories of Presence". The possibility of annual report distribution in public reception offices will be considered.
5. Disclose information about ecological acceptability, the results of the implementation of FTP NRS. Considered in "Nuclear and Radiation Safety Assurance".
6. Add explanatory comments to the data on transfers to local budget from the consolidated group of taxpayers. Not taken into account
7. Indicate that 100% of employees are insured under VHI policy or add a comment, why this rate is less than 100%. Modified accordingly in "Social Guarantees".
8. Indicate information how local communities participate in decision taking on social investments allocation. Considered in "Social Partnership in the Territories of Presence".»
9. Specify information about NSPF bankruptcy Information is not disclosed in the report.
10. Include in the report the scheme of strategic purposes and add the results 2016 thereto. Similar scheme is included in the report
11. Make the section on fuel more analytical, disclose information about competitive advantages as compared to competitors Modified accordingly in "The Role of TVEL Fuel Company in the FE NFC Global Market".
12. Structure the second core projects according to implementation stage, specify the choice of such projects (competences, knowledge of the market, etc.), specify market prospects, competitors, advantages, plans, current status. Considered partially in "Business Assets and Operational Results".
13. Disclose in the report information about the Proryv project and the role of TVEL Fuel Company Considered in "Innovative Activities in the Nuclear Industry"
14. Disclose detailed information about social adaptation, employment creation Considered in "Social Partnership in the Territories of Presence".
15. Disclose in the report information about charity expenses Considered in "Social Partnership in the Territories of Presence".
16. Issue a report no later than in six months To be considered Key Results brochure was issued in March 2017, brief version of the Annual Report - in June 2017.
17. To specify in the report the second core revenue share Considered in "Financial Results".
18. Disclose in the report detailed information on investments and of the forms of state support used by the Company (for example, development institutes) Not considered, since the Company does not sue the said forms of state support.
19. Disclose in the report information on transition to best available technologies, include in the Report plant on best available technologies adoption Considered partially in "Environmental policy".
20. Disclose in the report information on disposal and storage of spent nuclear fuel, and proportion of accumulated and processed fuel Not considered, since spent nuclear fuel processing is beyond the TVEL Fuel Company's management system.
21. Disclose information on RW and SNF storage facilities control Considered in "Nuclear and Radiation Safety Assurance".
22. Specify the anticipated environmental effect from production and technical measures To be considered in the Report 2017.
23. Specify, that the Company took part in six and more environmental actions. Considered partially in «"Environmental policy".
24. Accurately specify in the Report the market potential for TVS-K and general industrial markets Considered in "The Role of TVEL Fuel Company in the FE NFC Global Market", "Business Assets and Operational Results", "Intellectual Capital".
25. Provide brief information on "second core" in General Information about the Company Considered in "TVEL Fuel Company".
26. Show the relationship between the reduction of headcount, development of new businesses and TASED establishment, which will create new jobs, and disclose information on measures to support dismissed employees Considered in "Social Partnership in the Territories of Presence", "Staff Composition".
27. Disclose the principles of social policy in the Report Not considered, as the principles are determined by ROSATOM and the Company cannot make changes to them.
28. Show increase of labor performance, social package value, as well as the costs of labor protection and social guarantees in dynamics Considered in "Human Capital".
29. Reflect partnership with public organizations, youth, trade union Учтено в разделе Considered in
30. Disclose in the Report information on leadership of TVEL FC in social indicators at the industry level fixed in the Industry Agreement, and disclose relevant performance indicators To be considered in the Report 2017.
31. Disclose information on tolerant nuclear fuel development Not considered, the information is commercial secrecy.
32. Disclose information on quantity of young specialists demanded by the Company. To be considered in the Report 2017.
33. Specify regulatory base for TASED establishment. Considered in "Social Partnership in the Territories of Presence".»
34. Disclose information on institutional investors negotiating with the Company. The possibility of disclosing this information in the next reports will be considered.
35. Disclose information on public private partnership The possibility of disclosing this information in the next reports will be considered.

1.
Москва
АО «ТВЭЛ», АО «ВНИИНМ»,
АО «МЗП», АО «ЦПТИ»

2.

Московская область

АО «МСЗ» (электросталь)

3.

Санкт-Петербург

Филиал ООО «НПО «Ценротех»

4.

Владимирская область

АО «ВПО «Точмаш» (Владимир),
ПАО «КМЗ» (Ковров)

5.

Удмуртская республика

АО ЧМЗ (Глазов)

6.

Свердловская область

АО «УЭХК»,
ООО «НПО «Центротех» (Новоуральск)

7.

Новосибирская область

ПАО «НЗХК» (Новосибирск)

8.

Красноярский край

АО «ПО «ЭХЗ» (Зеленогорск)

9.

Томская область

АО «СХК» (Северск)

10.

Иркутская область

АО «АЭХК» (Ангарск)