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Social and Relationship Capital

Publicity capital allows TVEL Fuel Company to position iself as a global technology leader, global player in the Front End of Nuclear Fuel Cycle, powerful competitive and deversified company of engeneering and nuclear industries and as a socially responsibe business.


Publicity Capital

(image property, reputation capital) is qualitative and quantitative totality of all information related to TVEL JSC and known within public communications space. Growth of the publicity capital volume means increase public confidence, strengthening of a positive image, formation of increasingly favorable public opinion, escalation of political weight, etc.

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TVEL JSC was the third in “Development of multi-sectoral partnership to address social issues of the territories” at the All-Russian contest “Russian Business Leaders: Dynamics and Responsibility 2016”

PUBLICITY CAPITAL

Publicity capital growth was favored in 2016 by the integrated communications model implemented by the Company, the adopted in 2015 Uniform Information Policy, the target communicationssupported global-scale promotion of a wide range of non-nuclear products, the new PR strategy “TVEL-Progress” (conceptual core: technological achievements and foreign-economic gains).

In 2016 the organizations of TVEL Fuel Company applied a systematic approach to enhance the communicative function (public relations) with the view of improving the efficiency of its impact on business results and ensuring the publicity capital growth:

  • Audit of “mass and internal communications management” function (integrated communications) and analysis of engagement of all employees involved in the communication sphere (total — 101 persons).
  • Reorganization of the Public Relations Department in TVEL JSC into Information Policy and Communications Department was substantiated and performed, proposals were submitted for centralization of communication functions (formation of competence centers in the sphere of communications), transfer of public relations departments in the subsidiaries (totally — 12) into immediate subordination of director general.
  • The Uniform Information Policy of TVEL Fuel Company is implemented with the purpose of coordinated delivery to the media and target audiences the information concerning the activities of TVEL JSC and its subsidiaries, provision of public acceptance and transparency, the fundamental principles thereof are:
    — regularity,
    — promptitude,
    — availability,
    — reliability,
    — completeness,
    — balance,
    — equal rights,
    — security of corporate information
    resources;
  • The technology of target communications support of specific business objectives and commercial projects has been introduced. Totally TVEL Fuel Company enterprises elaborated and implemented more than 20 transient target communication programs, including 7 ones on non-nuclear products;

Target communication programs in TVEL FC


Subsidiary Company Target Communication Program Basic Types of Communications
NCCP JSC Lithium metal - International communications with companies from Germany, USA and Japan;
B2G (Business-to-Government), B2B (Busienss-to-Business) communications for raw materials base expansion; broadcasting the slogan: Our lithium is the purest lithium in the world.
SGChE JSC Fluoride technology based pigmentary titanium dioxide - B2B communications: with leading Russian PWM manufacturers: Raduga LLC, Diamand Mirkolor Paint and Coating Factory LLC, Kolorit Paint and Coating Plant LLC, Raduga Paint and Coating Plant LLC, Sibirsky Paint and Coating Plant Trading House LLC, Etalon Paint and Coating Plant (Novosibirsk) LLC, Kemerovo Paint and Coating Plant LLC, Progress Kemerovo Paint and Coating Plant CJSC (Kemerovo), Tsvetnoy Boulevard Omsk Paint and Coating Plan (Omsk), Kapitel East Siberian Paint and Coating Plant State Company (Irkutsk), Tomsk Paint and Coating Plant (Tomsk);
Major Russian consumers of pigment titanium dioxide: Tikkurila LLC (St. Petersburg), Yaroslavl Paints Association JSC, Russian Paints JSC (Yaroslavl). Pilot batches of titanium dioxide were sent to some of these companies to assess their consumer properties.
- В2В meetings and regular VCs with a prospective supplier of raw materials Ilmenit Tugansky Mining and Processing Works JSC (Tomsk).
- В2В-communications with polymer materials manufacturers of SIBUR LLC NIOST (Tomsk).
ChMP JSC Calcium injection wire - Brand communications (brand development and formation of unique sales propositions of a product);
- international communications with the companies in Asia-Pacific region;
- conclusion of pilot product supply contract for India;
- identification of needs in industrial-scale supplies to the Russian Federation and India.
For the 5 months of market entry, the brand HighMet has attracted commercial bids for more than RUB 0.5 bln.
Centrotech SPA LLC Hyper heat-conductive sections (HHCS) - B2B communications with telecommunication equipment producers, the companies of space and electronic industries;
-brand communication (brand development, competitive advantages translation, presentation materials generation);
- advertising communications (emphasis on the ten-year experience of HHCS operating in the heat removal system of 12 Russian navigation satellites);
- negotiations of Centrotech SPA LLC technical specialists with concerned companies.
Centrotech SPA LLC Automated gas filling station (AGFS) B2B communications with the fuel and energy complex companies: Gazprom NGV Fuel LLC, Gazprom Automation JSC. Separate compressor units were demonstrated to the branch partners of Metakhim-Project LLC, Yekaterinburg, Yugorsk TransGas. At the present moment, research and technological work is performed to finalize design documentation and prototyping of a hydrodrive compressor for AGFS.
AECC JSC Triflates - Marketing communications (development of distribution network);
-brand communication;
- B2B communications with consumers of pharmaceutical, chemical and food industries. Orders raised in 2016 amounted RUB 0,25 bln.
VNIINM JSC Endoprosthesis - Communicational support of roadmap project for establishment of a joint production company (JC) of VNIINM JSC and TREK-E Composite LLC under communication program within Endoprosthesis Project was rendered, being an essential condition for successful development of import-substituting high-tech serial production of domestic endoprostheses. The communication basis has been laid for cooperation with the Ministry of Industry and Trade of the Russian Federation, the Ministry of Education and Science of the Russian Federation and the Ministry of Health of the Russian Federation, representatives of Russian and foreign specialized companies, large medical institutions: Injury Treatment and Orthopedics Center, Ryazan State Medical University, Belgorod State University, research centers of materials science. The problem of investment attractiveness increase was successfully solved. The recognition of the product was ensured, its positive positioning was achieved, and a pool of supporters for the production of domestic endoprostheses was formed.
- Russian specialists performed 25 operations with endoprostheses manufactured by JC of VNIINM JSC and TREK-E Composite LLC.
  • Timplementing the decisions of the strategic sessions of top management of TVEL Fuel Company, the Department for Information Policy and Communications has been developing an independent objective “Increase of Publicity Capital”, adopting the metrics in the form of target communication strategy for the period up to 2020 and further on, and aligning with the “information favored index” (IFI) (the indicator was measured in a pilot mode, IFI monitoring and index calculation on a permanent basis is assumed to begin from 2017); [i]
  • The target communication program was realized to confirm by the international and Russian public attitudes the reputation of TVEL as the “company of continuous improvement” and the “company of advanced technological development”, according to which program there were published more than 1.7 thousand information materials in foreign and domestic media. The balance of positive and negative assessments of the programs of nuclear power industry development, that were formed by the RF population under the information influence, increased in 2016 by 58%[i]) thus ensuring preservation and the growth of the publicity capital of the Russian nuclear power industry and proving the operating efficiency of communication subdivisions of TVEL Fuel Company.

References to TVEL JSC and TVEL Fuel Company in the Russian Media

Totally 12,949 references to TVEL JSC and enterprises of TVEL Fuel Company were recorded in the Russian media in 2016. Dynamics of the activity of the information field is characterized as smooth, without strong outbursts and critical slowdowns.

The following tendencies were revealed: regardless of the number and specificity of the newsworthy information the most popular format of information presentation was news, and while in distribution by media types in the leading role took federal web-based media and the sectoral media. Tonality of the major number of messages was positive and neutral. Some publications raised issues related to changes in regular staffing of some enterprises of TVEL Fuel Company in the process of restructuring and optimization.

Media references to TVEL Fuel Company in 2016

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The growth of public (information) popularity of the Company in 2016 is directly dependent on the Uniform Information Policy adopted by TVEL JSC, according to which standards for information generation and promotion were introduced; the course of increasing the share of production news in the structure of the information content was defined, all information messages were tagged by values of ROSATOM, which in its turn had a positive effect on references to TVEL JSC and its subsidiaries in the mass media.

Over the year 2016 there were produced totally 469 press releases, out of which 51 information messages (11%) were prepared by the press service of TVEL JSC. Every third press release of the Company contains in its title an indication to the brand of TVEL JSC. Production news in the content structure take about 83%. At least 20% of the posts covering the production theme are devoted to non-nuclear production, thereby making possible for the target audiences and the wide public to consider the TVEL Fuel Company not only as the global leader for front-end part of the nuclear fuel cycle, but also as an exclusive developer and manufacturer of a wide range of high-tech non-nuclear products. Every third message contains an expert’s quote and 80% of such information, bearing expert opinion shall be subject to an external evaluation, which contributes to the growth of publicity and reputation capital, increase of reliance toward the information provided by TVEL Fuel Company.

Dynamics of information content production, number of press-releases

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Exhibition activities of TVEL Fuel Company in 2016


Event Date Place
NDExpo international exhibition — Nuclear Energy for sustainable development 2016 April 5–7 Moscow, Russia
The International Forum Atomexpo — Belarus 2016 April 19–21 Minsk, Belarus
International Forum ATOMEXPO 2016 May 31 — June 2 Moscow, Russia
The World Nuclear Exhibition June 28–30 Paris, France
The International Industrial Trade Fair INNOPROM 2016 July 11–14 Ekaterinburg, Russia
ARMY 2-16 International Military-Technical Forum September 6–11 Kubinka, Russia
The exhibition of industrial products and advanced developments of the enterprises of Novouralsk industrial site within the framework of industrial Information Day in UEIP JSC with the participation of the Director General of Rosatom SC S.V. Kirienko September 12 Novouralsk, Russia
Annual symposium of the World Nuclear Association WNA 2016 September 14–16 London, UK
Exhibition within the IAEA General Conference September 26–30 Vienna, Austria
Forum of Nuclear Power Industry Suppliers ATOMEX 2016 October 19–20 Moscow, Russia
ATOMEX-Region October 20–22 Krasnoyarsk, Russia
VVER 2016 International Scientific and Technical Conference October 31 — November 2 Prague, the Czech Republic
Scientific and Technical Conference New-Generation Nuclear Fuel for NPP. Development outcomes, operational experience and development trends ovember 16–17 Moscow, Russia
Exhibition-presentation of TVEL Fuel Company enterprises within the meeting of the Plenipotentiary Presidential Envoy to the Siberian Federal District of Russia S.I. Meniyailo with the President of TVEL JSC Yu.A. Olenin. December 6 Seversk, Russia

"First Step to the Nuclear Project" Information and Training Program

TVEL JSC and its subsidiaries have been cooperating with ANO "Nuclear Power Information Centers" since 2010.

Within the framework of cooperation TVEL JSC provides continual charitable support for educational initiatives in the field of nuclear energy

One of the main directions of such cooperation is the information and training program "First Step to the Nuclear Project" that is being accomplished in regions of presence of the Company since 2008. Program organizers and participants: TVEL JSC, SCs, educational and public agencies in regions of presence of TVEL Fuel Company's enterprises, Nuclear Power Information Centres, the community.

Goals and objectives of the program:

  • achieving public acceptance of nuclear technology development;
  • strengthening the positive image and reputation of TVEL JSC in in regions of presence;
  • demonstration of TVEL Fuel Company and its enterprises as innovative and high-tech safe facilities that are attractive to employment by young people;
  • development of social partnership for improving the system of professional orientation of pupils;
  • increasing the prestige of the Russian nuclear technologies and scientific knowledge.

TVEL JSC is a member of All- Russian Industrial Association of Employers “Association of the Employers of the Nuclear Industry, Energy and Science of Russia” (President of the Company is a member of the Board), and National Association of Procurement Institutes (NAPI).

Under this program, more than 10,000 students of schools and vocational education institutions took part in it, learning about nuclear fuel and the activities of nuclear enterprises in an interesting and accessible way, increasing their erudition and interest towards technical specialties. According to sociological research, the biggest share of people supporting nuclear power development live in the cities where this project is being implemented.

Complaints and Appeals Handling

Complaints and appeals handling in TVEL JSCis performed in conformity with the Federal Law "On procedure for handling the appeals from citizens of the Russian Federation" No. 59-FZ d/d February 2, 2006. Feedback is compulsory: every appeal shall be registered, as well as every answer

Appeals are received directly from TVEL JSC, as well as from the ROSATOM hotline and state authorities.

Results of appeals handling in 2016

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To establish direct communication "Employee-President of TVEL JSC", the so called "post boxes" were installed in all subsidiaries of the Company, thus any employee may address the top management of TVEL Fuel Company confidentially.

SOCIAL PARTNERSHIP IN THE TERRITORIES OF PRESENCE

Achievement of strategic objectives by TVEL Fuel Company is impossible without social accord in the territories of presence or compliance with social and environmental acceptability requirements. Social strain in regions and on territories of presence may cause reputation damage to TVEL JSC which has the image of a reliable supplier of nuclear fuel and uranium enrichment services, and therefore may cause reorientation by foreign partners towards the Company’s competitors (see also Section Risk Management).

The Company developed strategic initiatives and target projects on social and economic development of the regions / territories of presence and ensuring their social stability. The “TVEL JSC Program for Regional Work and Social Projects” is being implemented, systematizing the experience in this area and including three groups of projects:

  • formation and preservation of social accord environment in the regions of presence of TVEL FC;
  • cooperation with local and regional public authorities with respect to the concept of the territories’ development, the growth of regional taxes and maintenance of social and economic stability;
  • enhancement of social programs efficiency and social partnership development.

Regional and Social Projects Program monitors the performance and efficiency of regional development programs implementation.

Social and political situation in the cities of presence of TVEL Fuel company is monitored monthly since 2011. Social and political situation in CATU (Zelenogorsk, Seversk, Novouralsk) and Glazov providing for 29 scenarios of social and political crises and their relevant indicators is monitored weekly since 2014:

  • inter-elite conflicts;
  • emergency situations;
  • growth of social strain.

Monitoring purpose: reduction of social strain risks and possible impact of protest moods. The findings are used to develop and to correct plans of joint activities with local authorities on preservation of social cohesion environment in regions of presence of the Fuel Company.

Indicators of social and political monitoring in the cities of TVEL Fuel Company’s presence

Social sphere

Recorded unemployment level

Events held by employment center

Acute social problems of city

Hazards related with the Company strategy


Political sphere

Influential figures in city and in region

Situation in the city

Possible scenarios

Major decisions taken at local and regional levels


Mass media monitoring

Character and availability of publications
about Rosatom State Corporation


In order to minimize socio-political and socio-economic risks in the territories of the presence of enterprises of TVEL Fuel Company, agreements were signed in 2016 with local authorities of CATU Zelenogorsk, Seversk, Novouralsk and Glazov on supplying monitoring information.

Monitoring purpose: reduction of social strain risks and possible impact of protest moods, development and correction of social and economic development programs in territories of presence.

Continuous monitoring of:

  • implementation of Agreements between ROSATOM and entities of the Russian Federation on cooperation;
  • implementation of activities within the framework of charitable and social projects in the cities of presence;
  • works on establishment of TASED in CATU and in Glazov.

Such comprehensive monitoring allows TVEL Fuel Company to participate effectively and in a timely manner in the development and implementation of social and economic development programs for the cities of presence in order to improve the living standards of the population, attract highly qualified specialists and carry out activities to damp the risks of political and social tension in order to maintain social stability.

Алексей Рассказов
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Nuclear industry and its flagship — our SGChE JSC — play a major role in Tomsk Region life. You boost the regional economy, give confidence in the future for thousands of specialists and workers, residents of the biggest CATU in the country — Seversk. You extend ties of academic and industrial sectors by demonstrating what the innovative production should look like. I take pride in unique global projects of our nuclear experts.

Sergey Zhvachkin

Governor of Tomsk Region


Development of Territories of Presence


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Agreements on Cooperation with the Regions

In 2012 TVEL JSC initiated the drawing up and signing of Agreements on Cooperation between ROSATOM and public authorities of the territorial entities of the Russian Federation.

Presently there are agreements with Sverdlovsk region, Irkutsk region, Tomsk region, Krasnoyarsk territory and the Udmurt Republic.

Annually under the concluded agreements, local government bodies, regional government agencies and TVEL Fuel Company develop and implement joint program of social and economic development of cities of presence of the Company’s enterprises.

Such agreements result from effective interaction with public authorities and provide for the implementation of a whole range of activities aimed at the social and economic development of regions and cities of presence of the Fuel Company. These agreements determine the following key aspects:

  • co-financing of programs for social and economic development of nuclear cities;
  • the terms of co-funding of Entrepreneurial Development and Supporting Fund;
  • the terms of joint participation in establishment of Physical and Mathematical Lyceums.

Financing of the Program for social and economic development of the cities of TVEL Fuel Company’s presence, 2016


City Scope of finance, RUB mln Events
CATU Novouralsk 209,5
  • construction of a dwelling house for young specialists, an exhibition and marketing center of the NCED;
  • reconstruction of the Central stadium;
  • major overhaul of the pool of the MAEI “Secondary General School No.48”; major repair of buildings 8b and 8c of Samotsvety Children resting camp;
  • modernization and repair of social facilities, repair and re-equipment of the Neiva Cinema Center;
  • small and midsized business support;
  • “Safe city” Project.
CATU Seversk 30,0
  • activities aimed at small and midsized business support (increase of business microfinancing).
Glazov 222,4
  • construction of an ice hall;
  • сconstruction of a gym hall and workshops for Physics and Mathematics Lyceum;
  • city’s sports clubs supporting.
TOTAL 461,9

Gross tax liabilities of TVEL Fuel Company, RUB mln

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TVEL Fuel Company is a major taxpayer in the budgets of various regions of the Russian Federation. Gross tax liabilities (actually paid) made RUB 22.2[i] bln in 2016.

Direct economic value generated and distributed[i], RUB mln


Indicator 2014 2015 2016
Direct economic value generated 159,539 222,908 198,858
Economic value distributed, including: 142,142 173,489 177,749
  operating costs[i] 89,224 106,200 104,066
  employee wages and benefits[i] 20,632 26,000 26,934
  payments to providers of capital 17,021 16,021 30,019
  community investments (investments into associations and charities) 1,337 1,800 1,719
  payments to government (gross tax payments[i]) 15,021 23,468 15,010
Economic value retained 17,640 49,419 21,109

Working-age population employed by subsidiaries of TVEL FC


City (enterprise) Region % of working-age population employed by subsidiaries of TVEL FC
Angarsk (AECC JSC) Irkutsk Region 0,7
Vladimir (Tochmash VPA JSC) Vladimir region 0,7
Kovrov (KMP PJSC) Vladimir region 1,3
Glazov (ChMP JSC) the Udmurt republic 5,9
Zelenogorsk (PA ECP JSC) Krasnoyarsk territory 6,0
Novouralsk (UEIP JSC) Sverdlovsk region 4,8
Seversk (SGChE JSC) Tomsk region 5,4
Elektrostal (MSZ PJSC) Moscow region 4,5

Civil Forum-dialogues

In 2016 the Fuel Company in cooperation with local authorities and non-commercial organizations conducted municipal civil forumdialogues in Glazov, CATU Zelenogorsk, Novouralsk, Seversk.

The purpose of these events was to reduce social strain, to create the platform for consolidation of sound social force, to strengthen relations between different participants of social processes, and to reach a new level in the work of non-commercial organizations.

TVEL JSC was the third in "Development of multi-sectoral partnership to address social issues of the territories" at the All-Russian contest "Russian Business Leaders: Dynamics and Responsibility -2016"

In recent years public organizations play an increasingly important role in the life of the country and urban community. Social partnership policy makes it possible to address the most complicated issues by negotiations, dialogue, search of a balance of interests of different population groups. The idea of social partnership is to reach the compromise.

The agenda of the dialogue forum in Glazov “Start to the Future” had economic nature, performance of TVEL Fuel Company in 2015 was discussed, as well as the situation in export markets, the prospects for the development of the city-forming enterprise ChMP JSC, creation and development of the territory of advanced social and economic development in Glazov.

The agenda of the forum “Social Partnership for Development” in Zelenogorsk was socially oriented, the audience raised issues of big business participation in the development of the city, interaction of government and public organizations.

The main theme of the dialogue forum in Seversk “The way to a successful future through agreement” was the position of TVEL Fuel Company in the nuclear fuel markets and the development of PDEC project.

TASED (territory of the advanced social and economic development) is the part of a territorial entity of the Russian Federation with the special legal regime for entrepreneurial and other activities.

The second civil dialogue forum “Social Initiatives of Novouralsk and Civil Support Mechanisms” in Novouralsk had several different discussion platforms devoted to business, youth, science, sports, the older generation and communications, the participants met at strategic session after the discussion.

Representatives of the authorities, deputy corps, business and community attended the events.

Forum-dialogues held in the territories of presence of TVEL FC in 2016


City Number of participants Date Number of city public organizations — participants of the Forum-dialogue
Glazov 150 19.04.2016 9
Zelenogorsk 700 14.05.2016 38
Novouralsk 900 25.08.2016 7
Seversk 470 24.06.2016 7
Total 2,220 61

In 2017 it is planned to hold at least 4 forum-dialogues in the cities of presence of TVEL Fuel Company.

TASED Creation

Federal Law No.473-FZ d/d December 29, 2014 “About the territories of advanced social and economic development in the Russian Federation” provides for possibility of establishment, starting from June 1, 2016, of the territories of advanced social and economic development in the territories of closed administrative territorial units in order to create additional conditions for support of citizens residing and working in CATU, attraction of investments and creation of additional jobs.

Establishment of TASED in CATU is aimed at creation of new jobs, increase of investment attractiveness of CATU and level of development as compared to the average level of social and economic development of the entities of the Russian Federation.

At the stage of the concepts formation, the declared projects assume creation of more than 8 thousand jobs, the investments will amount to more than RUB 70 bln. The third part of the declared projects — are the projects of ROSATOM and TVEL Fuel Company.


2014

  • in 2016 the enterprises of TVEL Fuel Company have formed task groups;
  • drew up CATU passports for CATU Integrated Development Programs;
  • CATU Integrated Development Programs were developed and approved by local and regional authorities, and submitted for inspection and approval to the Government of RF.

2015

  • Basing on EDP working teams with the involvement of developers formed the concept of the territory of advanced social and economic development in nuclear industry CATU.

2016

  • the concepts of TASED creation were considered at at the level of territorial entity of the Russian Federation.
  • concepts were sent to the Ministry of Economic Development of the Russian Federation and to the Ministry of Finance of the Russian Federation;
  • ROSATOM SC working team on issues of TASED property in CATU was formed;
  • proposals (applications) for TASED creation were sent to authorized federal executive bodies / the Ministry of Economic Development of the Russian Federation:
    – CATU Seversk (July 2016),
    – CATU Zelenogorsk (August 2016),
    – CATU Novouralsk (August 2016);
  • The concept of TASED in Glazov was approved at the level of territorial entity of the Russian Federation.

2017 (planned)

  • formation of TASED Managing company (Rosatom SC performs Shareholder rights):
    – formation of property complex,
    – formation of subsidiary managing,
    – companies,
  • creation of TASED in nuclear industry CATU:
    – issue of Russian Federation Government Regulations,
    – conclusion of agreements between the Ministry of Economic Development, the government of a constituent entity of the Russian Federation, municipal authority),
  • registration of first residents:
    – formation of marketing strategy.

New production launched at vacant facilities of UEIP JSC (CATU Novouralsk)

In August 2016, Penotherm Company LLC opened a new enterprise for production of insulating and packaging materials made of expanded polypropylene and polyethylene.

The maximum annual capacity of the plant will be 28.5 million square meters of finished products of different nomenclature. Advanced technologies of the enterprise allow to process waste products into secondary raw materials and put them into use.

Penotherm Company LLC concluded an agreement with UEHK JSC on long-term lease of vacant production site. Jointly the partners have formed appropriate technical, organizational and corporate solutions for the project. It is planned to create 100 new jobs.

For TVEL Fuel Company and Novouralsk this project is socially significant, it will perform one of the key objectives: open new production in CATU in order to create jobs and increase tax payments, including to the local budget.

CATU-based TASED managing company ATOM-TOR was established on January 31, 2017 under Resolution of the RF Government.

The features of TASED Creation in CATU

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The projected effect of TASED creation


City Zelenogorsk Seversk Novouralsk Glazov
Number of new jobs, including: 1,616 2,181 2,633 1,448
under the project of ROSATOM and TVEL FC 242 740 979 142
under the projects of CATU and the entity of the Russian Federation 1,374 1,441 1,654 1,306
Amount of investment, RUB mln, including: 10,895 26,037 19,659 10,318
under the project of ROSATOM and TVEL FC 1,520 4,971 3,598 635
under the projects of CATU and the entity of th, Russian Federation 9,375 21,066 16,061 9,683
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1,500
Due to activities of Entrepreneurship Support and Development Funds more than 1.5 thousand jobs were created in 2013–2016 in Glazov, CATU Zelenogorsk, Novouralsk, Seversk.

SOCIAL AND CHARITABLE ACTIVITY

TVEL Fuel Company’s contribution to social and economic development of the regions of presence implies both participation in the regional and local budgets income base, and realization of the whole body of social and charity programs.

Since 2012 the Charity Council has been working within TVEL JSC; its functions include determination of purposes and priority areas of charitable activity, approval of the budget and charity events, assessment of charitable activity efficiency in TVEL Fuel Company, etc.

PJSC “KMZ” was recognized as Patron of the Year-2016 among large enterprises in Kovrov

The Charity Council comprises managers of TVEL JSC in charge of economics, finance, HR, regional and social work, public relations. Scheduled meetings of Charity Council are held on a monthly basis and consider appeals on financial assistance from individuals and organizations. In 2016 the Council held 19 meetings.

The principles of charitable activity:

  • support for charitable programs and projects in the cities of the Company’s subsidiaries presence (social projects contests);
  • backing-up common values (promotion of business environment, creation of new jobs, development of the educational, health-care, culture and sports infrastructure);
  • co-funding of charitable programs jointly with the local authorities and central government bodies of the Russian constituent entities.
  • Entrepreneurship Support and Development Funds supporting is another tool for new jobs formation. Due to their activities more than 1.5 thousand jobs were created in 2013–2016 in Glazov, CATU Zelenogorsk, Novouralsk, Seversk.

    In 2016 the Fuel Company spent RUB 226.1 million on social and charitable programs with the view to develop the territories of presence of its enterprises. The amount equal to RUB 106.4 million was taken out of the funds of TVEL JSC, and RUB 119.7 million — out of the funds of the Fuel Company.

Performance of entrepreneurship support and development funds in 2012–2016


City Funds allocated to the Fund, RUB mln Including financing by TVEL JSC, RUB mln Volume of support rendered by the Fund, RUB mln Number of implemented projects Number of created jobs
Glazov 88,5 43,5[i] 218,3[i] 249 492[i]
Zelenogorsk 50 25 45,5 21 142
Novouralsk 145 64,7[i] 145 200 800[i]
Seversk 50 25 47,5 15 138
Total 333,5 158,2 456,3 485 1 572

Operating pattern of entrepreneurships Support and development funds

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In 2016 the Fuel Company spent RUB 226.1 millionon social and charitable programs with the view to develop the territories of presence of its enterprises. The amount equal to RUB 106.4 millionwas taken out of the funds of TVEL JSC, and RUB 119.7 million- out of the funds of the Fuel Company.

Funds allocated for charity and social projects in 2016


Major directions Amount, RUB mln
1 Installation of outdoor fitness and work out in the cities of presence 59,2
2 Support to the activities of the nuclear industry information centers in the regions of presence 20,44
3 Creation of School Technoparks in the cities of the presence of FC enterprises 16,8
4 Atomclasses opening and support in the cities of the presence 2,45
5 Participation and holding of a contest “Businessman of the year” in the cities of presence 1,8
6 Provision of gratuitous assistance in organizing and holding sports events for nuclear industry workers 7,51
7 Organization and holding of social projects contest in the cities of presence 9,75
8 ROSATOM social projects, including activities on organization and establishment of TASED in cities of CATU and Glazov, as well as activities to damp social risks in the cities of presence 48,52
9 Gratuitous aid to veteran organizations, orphanages, disabled persons, retirees, persons in hardship, in the cities of presence 8,52
10 Organization and holding of municipal and regional social and cultural, gratuitous aid to cultural institutions (including support of the IV Okudzhava bard song festival, the contest of brass and jazz bands in Novouralsk, organization of the Sodruzhestvo children’s recreation and education camp at Baikal, visits to ATOMEXPO of children from the cities of presence 19,36
11 Gratuitous aid to municipal organizations, societies and institutions, including land improvement activities in the cities of presence and memorial works 10,93
12 Supporting educational projects in the cities of presence, including activities aimed at children’s research and technical development (robotechnics) 7,4
13 Поддержка образовательно-просветительских проектов в городах присутствия, включая мероприятия по развитию научно-технического творчества детей (робототехника) 4,37
14 Other activities aimed at developing the cities of the presence of enterprises, raising the living standards of the population, creating an attractive social environment (environmental measures, support of the parishes of the ROC, work with unscheduled appeals, etc.) 9,08
TOTAL 226,13
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Support of Schoolchildren

Atomclasses

There are organized so called “Atomclasses” in the cities of the Company’s presence (Angarsk, Glazov, Zelenogorsk, Kovrov, Novouralsk, Seversk, Elektrostal). The Atomclasses are specialized classes in the best schools of the cities with advanced teaching of physics and mathematics. The specific feature of such classes is the profound study of nuclear physics and nuclear technologies. The important part of the project is procurement of the advanced laboratory equipment for teachers to demonstrate innovative physical presentations, and for students of Atomclasses to have their training laboratory courses and to carry out research works. Such advanced training will help the students to succeed at academic competitions, contests, school children’s academic achievements festivals. Further on the Atomclasses graduates will be able to continue their education in relevant technical universities.

To implement the project RUB 2.5 million were allocated in 2016.


Physics and Mathematics Lyceums

One of the primary areas of TVEL Fuel Company’s charitable activity is creation and development of Physics and Mathematics Lyceums for training of future skilled specialists for the nuclear industry.

This project is designed to create conditions for children’s self-expression, to reveal and support talented schoolchildren, bring up the prospective scientists.

The project is being implemented in four cities: CATU Seversk, Zelenogorsk and Glazov under the terms of cofunding with the local authorities and government bodies of the Russian constituent entities.

The Coordination Board for Physics and Mathematics lyceums development coordinates their work and serves a site where teaching stuff and managers of TVEL Fuel Company can exchange ideas. Meeting of intra-extramural All- Russian training conference for Physics and Mathematics Lyceums is held on a quarterly basis, where teachers discuss essential problems of education in the sphere of physics and mathematics and possible ways to solve them in an actual teaching practice.

In June 2016 heads of MEPhI NNRU and schools-members of the Association of Physics and Mathematics lyceums of TVEL Fuel Company have signed agreements on cooperation in the sphere of remote training.

Within the framework of agreements, the MEPhI will provide students and teachers of Physics and Mathematics lyceums an access to its remote training courses and e-library. Annually MEPhI will allocate up to 15 quotas for training in its network school to lyceums. Besides, teachers of schools will be able to take refresher courses at MEPhI.

New Generation — Resource of the Future

TVEL Fuel Company was the partner of the II All-Russia Educational Forum-Contest “New Generation — Resource of the Future”, held in September 2016 in CATU Seversk. 150 students of 9-10 classes and 30 teachers of schools and lyceums from 10 municipalities, delegated by Sverdlovsk, Tomsk, Chelyabinsk regions, Krasnoyarsk territory and the Udmurt Republic participated in the forum.

The forum was held in the format of “Open Foresight Laboratory of High School Students” in order to support and develop the intellectual elite of the cities of presence of Rosatom, the formation of educational self-determination and the professional orientation of talented high school students in various areas of high tech development.

In the process of work, high school students analyzed modern trends in the development of science and technology, developed versions of their own professional and educational priorities as the basis for making personal decisions about individual educational trajectories. The program included lectures of scientists, masterclasses of scientists of RI TSU, RI TPU, TSUAB, Tomsk State University of Control Systems and Radioelectronics, Seversk Institute of Technology of MEPhI NRNU, intellectual debates, expert sessions, visits to laboratories and university creativity centers.

School Technoparks

In continuation and development of the existing project aimed at support of Physics and Mathematics Lyceums, TVEL Fuel Company in 2016 launched the project on creation of polyvariant education environment “School Technopark” in Glazov, CATU Zelenogorsk, Novouralsk, Seversk. School technoparks are established in partnership between the enterprises of TVEL Fuel Company and the schools in the cities of presence.

Agreements between enterprises and schools determine the main priorities of cooperation within the framework of this project:

  • education quality improvement under joint project activities;
  • professional self-determination of high school students, creation of optimal conditions for revealing creative potential and early development of students’ abilities;
  • sharing experience between enterprises and general educational institution in design and engineering sphere.

Establishment of the centers for innovative technical creative work will contribute to retention in Russia of motivated staff with a taste for design, inventive activity, and to involvement of talented school age youth in solution of design and engineering problems in favour of the nuclear industry.

The areas of technoparks operation were determined under the project, the methodology of the educational process was developed, gifted students search system was created, the material base of technoparks was formed and necessary equipment was procured and supplied.

The starting point of the project was an agreement on staff training concluded by municipal authorities and enterprises. The projects of technoparks creation were presented at the VIII ATOMEXPO International Forum in June 2016 and were widely covered by the media.

The final event of the project in 2016 was opening of technoparks with the participation of representatives of local authorities and the management of TVEL Fuel Company enterprises.

To implement the project RUB 20 million were allocated in 2016.


Key indicators of the project “School Technopark”


City Number of laboratories Specialization profile
1 Glazov 3 Physics, robotechnics, computer based simulation
2 Zelenogorsk 3 (lyceum)
8 (schools)
Process technology, design engineering, robotechnics
3 Novouralsk 4 Computer based simulation, practical modelling using machinery equipment
4 Seversk 5 Robotechnics, ecological monitoring, chemical-biological research, materials treatment, 3D modeling and prototyping

Objectives 2017:

  • development and approval by Coordination Council of Physics and Mathematics lyceums of the cities of the Company presence of the industry educational standard — a list of educational programs, evaluation criteria for graduates and teachers of technoparks;
  • development and implementation of network model of interaction of technparks students and teachers, integration of this model in the Russian and global educational space;
  • conclusion of agreements with the main technical universities about expertise of technopark students’ projects;
  • approval of cooperation programs for school technoparks with the subsidiaries of TVEL JSC in the cities of presence, including approval of supervisors and the council of experts;
  • organization and holding of the contest “Brand of TVEL Fuel Company School Technopark” among the students of Physics and Mathematics lyceums of the cities of presence;
  • organization and holding of school, municipal and interregional competitions in educational robotics;
  • organization and holding of school, municipal and interregional competitions in computer modeling;
  • formation of local youth communities on the basis of school technoparks in the cities of presence.
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Healthy Lifestyle

Social project ”My house. My yard. My family”

In 2011 the project “My yard. My house. My family” was initiated. During three years 240 playgrounds for children were installed in eight cities of presence of TVEL Fuel Company enterprises.

In continuation of the project, indistrict and adjacent territories were improved there in 2016, courts with sport equipment and Workout complexes were erected. Places for sport areas were determined by local authorities taking in account public opinion, within participatory budgeting and with account of the playgrounds that were installed earlier.

Work out playgrounds set in 2016


City Number of playgrounds/ number of playground elements
CATU Seversk 50/7
CATU Zelenogorsk 50/7
CATU Novouralsk 34/11
Glazov 50/7
Kovrov 25/2
Elektrostal 4/8
Angarsk 25/2
Vladimir 9/7
Total 247

Launch of playgrounds for residents of the territories of the presence, “The Yard Day” involving young athletes. Souvenirs were presented to participants of contests. All events were covered by local and corporate media.

This project is the continuation of the strategic social initiative of TVEL JSC for development of the cities of presence and creation of comfortable living conditions. Residents of cities made proposals on further development of yards, culture and sports.


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Work out

amateur sports including exercises on horizontal bars, P-bars, wallmounted ladders and other structures installed on outdoor sports grounds.

Plans 2017:

  • proceed with installation of work out and street fitness facilities;
  • organize and hold work out district, municipal and interregional festivals;
  • involve official organizations (Workout Federation) and significant popular communities in holding workout festivals in the territories of presence of TVEL Fuel Company;
  • form local youth communities on the basis of out-of-door sports grounds in the cities of presence.

STAKEHOLDER ENGAGEMENT


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TVEL FC always applies the principles of transparency [i] and constantly interacts with stakeholders, systematizes, analyses and takes into consideration their requests. This approach allows to respond quickly to potential risks related with stakeholders relations, in particular with those of social and reputational nature.

TVEL JSC stakeholders rank chart

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System of relationships with each group of stakeholders influences and will influence the operations of TVEL Fuel Company, that’s why due consideration of their interests in planning and in the course of daily operations is the most important condition of sustainable development. Analysis of the key events, major financial and production outcomes and the Company’s performance in the sphere of sustainable development demonstrates that social capital is among the major sources of business stability. Position of the Company in the sphere of sustainable development is shown in Annual Report of TVEL JSC for 2014

Public Reporting System of TVEL Fuel Company

In accordance with the Policy of ROSATOM State Corporation applicable to public reporting, TVEL JSC generated the system of public reporting which represents the combination of elements, processes and connections between them ensuring the activity with regard to public reporting and its development.

Public Reporting System of TVEL FC

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The primary elements of the public reporting system are the following: the operational centre of responsibility, regulatory framework, the representatives of stakeholders (participating in preparation of the reporting data), and infrastructure support (consultative and instructional support, audit, etc.).

Documents governing the public reporting of TVEL JSC:

  • The standard of public annual reporting of TVEL JSC;
  • The rules of public annual reporting of TVEL JSC;
  • Charter of the committee of stakeholders of TVEL JSC;
  • Charter of the committee on public annual reporting of TVEL JSC.

The operation of the public reporting system of TVEL JSC is based on the work of variety of subunits. The main functions are divided between the vice-presidents of TVEL JSC, the Committee on public annual reporting of TVEL JSC, and the Information Policy and Communications Department.

The KPI card of the Head of Information Policy and Communications Department includes the index "Awards in Federal Contests"; the KPI indicator was on the top level during the last four years - Annual Reports of the Company obtained more than 3 awards.

In 2017, the annual report was prepared in accordance with the new GRI standards for the purpose of improving public reporting system.

Public reporting system development in 2016:

  • Preparation of material aspects matrix under GRI Sustainability Reporting Standards
  • Audience building in dialogues with stakeholders in the course of preparing public reporting

Public reporting system improvement plans in 2017:

  • Organization of a hotline and seminars on preparation of public reporting by subsidiaries, in particular, on practical issues of new GRI Sustainability Reporting Standards application;
  • Holding of a series of presentations of the Annual Report 2016 and its brief version at internal and external events
  • Advanced training of company's staff engaged in preparation of public reporting at specialized seminars and round-table conferences.

Relationships between TVEL FC and stakeholders


Group of stakeholders Key interests Performance indicators for TVEL FC Institutes and system-based interaction Programs and events
Stakeholder TVEL FC

ROSATOM

Better manageability

Efficiency

Quality

Implementation of advanced management technologies

Efficiency

Labor efficiency increase

Resource saving

Positive dynamics of financial, economic and production indicators

ROSATOM Production System

Personnel Management System Project management application

RPS introduction

RPS training and development program

Small group leaders development program

Replication of information solutions for all TVEL FC subsidiaries

Organizational chart transformation

Consumers

Stability of supplies, price, quality and reliability of supplies, products and services

Order stability

Market development

Growth of income

Fuel failure probability decrease

Long-term contracts

Satisfaction appraisal

Feedback system

Quality appraisal

Expectation analysis

Subsidiary companies

Assistance to operating business and development of new ones

Management efficiency

Earnings growth

Dividend growth

Non-nuclear products sales result

Centralized management

Decomposition of business processes and information decisions

Regulations

Feedback system

Intercorporate communications:

  • Informing days
  • Industry-specific paper "STRANA ROSATOM", "Element of the Future"

Labor collective and trade unions

Stable salary and payment

Socially responsible employer

Professional growth

Effective work

Qualified personnel

Employee loyalty

Labor efficiency increase

Staff turnover reduction

Earnings growth

Salary growth

Collective agreement

HR Policy

Values system

Intercommunication buildup design

Staff development programs

Involvement assessment

Informing days.

Social programs

Partners

Mutually beneficial cooperation.

Competitiveness enhancement

Growth of income

Client and resource base expansion

Joint ventures

Joint projects and contracts

ALVEL Joint Venture

UEC

TVS-KVADRAT

ITER

Suppliers

Procurement system transparency

Financial solvency

Order stability

Quality, stability and reliability of supplies

Favourable price

Cost saving

Uniform Industrial Procurement Standard

E-Procurement with feedback

Uniform Industrial Procurement Standard enforcement

Local authorities, regional authorities

Social and economic development of regions

New investors attraction

Formation of business environment

Employment of population

Ecology

Stability in regions of presence

Staff density

Unemployment level

Average salary

Tax allowances

Ecological situation

Number of new jobs

Agreements with regional authorities

Agreement on consolidated taxpayer group formation

Entrepreneurship promotion funds

Upcoming:

Strategic development program for nuclear industry in CATU

Joint social and charitable projects with authorities

Territory development programs (industrial parks, technoparks)

Ecological reports

Meetings

Conferences

Dialogues

Nuclear Power Information Centres

Federal authorities

Taxes

Ecology

Safety

Financing

Legal framework perfection

Scope of funding

Gross tax allowances

FTP indicators execution

Considered proposals on legal framework improvement

Federal target programs

Intergovernmental agreements

Statutory legal acts

FTP events

Compliance with terms of intergovernmental agreements

Participation in ROSATOM legislative initiatives

Public and environmental organizations

Compliance with legal requirements and international standards

Charity support

Social stability in regions of presence

Charity donations

Number of comments and suggestions

Stakeholder commission.

Public dialogues

Charity council

Public hearings on the Fuel Company projects

Activities held in Information centre of nuclear industry.

Scientific and expert community

Order, funding and commercialization of prospective developments

Breakaway developments

R&D funding in universities

Scientific and technical councils

Stakeholder commission

Public dialogues

Programs for implementation of cooperation agreements between TVEL JSC and core universities

TVEL JSC Annual Report 2015 Awards

  • Four-time Gold winner in the International Competition MarCom Awards 2016 (USA) in the following categories:
    — “Best Annual Report of the StateCompany”;
    — “Best Annual Report on Corporate Social Responsibility”;
    — “Best Integrated Annual Report of the State Company”;
    — “Best Annual Report (Design and Printwork)”.
  • For the first time it was awarded by League of American Communications Professionals, having won the “silver title” in LACP 2016 Spotlight Awards Global Communications Competition in the category “Print version of the Annual Report of Companies with a Turnover USD 1–10 bln”, and is in TOP- 50 world’s best annual reports.
  • Award in the nomination “Comprehensive Information Disclosure on the Company’s Development Strategy” in Expert RA contest of annual reports (RAEX)“; Joined the 5 stars group — the highest quality of annual reports.
  • The title “Leader of Corporate Transparency among State-Owned Companies” (3d place) in the rating “Corporate Transparency of the Largest Russian Companies-2016”,, formed by the Russian Regional Networks on Integrated Reporting.
  • 3d place in the category “Best Public Annual Report of ROSATOM State Corporation Division” in the industryspecific contest of annual public reporting of ROSATOM..
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Stakeholder Engagement During the Preparation of the Report 2016

While preparing the Report the principles of Standard AA1000APS were adhered to, in particular, the compliance of the information published with the requests of stakeholders involved was ensured. Two dialogues with stakeholders (live and off-site dialogue) were conducted to implement this principle, as well as public consultations on draft Report.

Participants of these dialogues were the representatives of ROSATOM, industry partner organizations, subsidiaries, environmental, public, trade union organizations, higher educational institutions, local governmental authorities, mass media, consultants and auditors.

In November 2016 TVEL JSC organized the off-site dialogue on the concept of the Annual Report for 2016. The Report concept developed by the Company with account of the proposals of stakeholders commission was presented; the participants advanced recommendations which allowed finalizing and specifying the concept of the Report.

In the course of the dialogue on February 28, 2017, the matters of preparation of TVEL FC Public Annual Report 2016 were discussed, some outcomes 2016 were summarized, priority issues to be disclosed in the Report have been touched: "New markets and partners of TVEL Fuel Company".

The draft annual report of TVEL JSC for 2016, which was prepared in accordance with recommendations of stakeholders introduced in the course of the dialogues, was presented during the public consultations on April 18, 2017. Following the event, the proposals were made by stakeholders on information disclosure in the Report.

The table specifying the stakeholders’ comments is given in an interactive version of the Report. The minutes of dialogues are available at site.

Estimated index was developed by the specialists of the Russian company “Medialogia”. Information favored index reflects not only qualitative but also qualitative presence of a person in the information field. IFI depends on the media forcefulness and influence, visibility of the message, brightness of the object reference, citation, conflict nature, nature of reference in the media and other parameters.

Data of Levada Center that were provided by the Communication Department of ROSATOM State Corporation.

Additionally, VAT paid by TVEL Fuel Company amounted to RUB 7.1 bln. Thus actually paid gross tax liabilities were RUB 29.3 bln.

The data from the Consolidated Financial Statement of the Fuel Company prepared under the Russian Accounting Standards were used for estimations. IFRS reporting shall be prepared later.

Miscellaneous expenses and income were used for estimates in full. Operational costs exclude amortization.

Social expenses and insurance fees are included in calculation since 2015.

Amount of main tax liabilities due and payable to the budgets of different levels for the reporting period, including: taxes included in expenses, payments to extra-budgetary funds, corporate profit tax.

Including due to performance of agreements on cooperation between ROSATOM State Corporation and constituent entities of the Russian Federation.

Including repayable funds.

Including self-employed.

Including due to performance of agreements on cooperation between ROSATOM State Corporation and constituent entities of the Russian Federation.

Including self-employed.

Taking into account objective industry-specific limitations.

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)