Title pageCompany’s Background
GRI:

Company’s Background

Rosatom State Corporation Engineering Division operates using 50-year experience of the nuclear industry in Russia and state-of-the-art technologies.
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The Engineering Division was established by integration of the industry’s leading companies: JSC ASE EC (Nizhny Novgorod) — managing company, JSC ASE (Nizhny Novgorod), JSC “Atomenergoproekt” (Moscow) and JSC ATOMPROEKT (St. Petersburg) and other.

According to the results of 2018, the Engineering Division of Rosatom State Corporation is the leader of the global NPP construction market.

Vision:

We seek to build a competitive business that is successful in implementation of construction projects and complex engineering construction management projects and aims to maximize the shareholder value of the Engineering Division.

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The Division’s values

correspond to those of Rosatom State Corporation:

Safety
Responsibility for the result
Efficiency
One team
One step ahead
Respect
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Mission:

We manage construction of complex engineering facilities based on the vast experience in implementing nuclear projects. We create shareholder value and ensure implementation of their objectives on the Russian and global markets.

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Main areas of activities:

Design of high-power NPPs
Construction of high-power NPPs on the terms of EPC, EPC(M)
Multi-D-based digital technologies for management of complex engineering facilities
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Membership of associations:

  • Federation of employers of atomic industry, power engineering and science of Russia;
  • Association of innovative design;
  • European Utility Requirements;
  • Self-regulating organization “Association of the engineering-prospecting organizations in nuclear branch “SOJUZATOMGEO”;
  • Self-regulating organization “Association of the designing organizations in nuclear branch “SOJUZATOMPROEKT”;
  • National Association of consulting engineers in the construction field;
  • Czech nuclear forum;
  • Association “Self-regulatory regional industry federation of employers “Association of Nizhny Novgorod developers”;
  • Association of construction companies in the nuclear industry (ASKAO);
  • Russian department of buildingSMART;
  • International Federation of Consulting Engineers (FIDIC);
  • Engineering Construction Risk Institute (ECRI).
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International Footprint

The operations areas are Europe, Middle East, Asia, Northern Africa, Asia-Pacific Region.

The project owners are countries that seek to diversify their power system and provide their economy with cheap electricity

30%
of the global NPP construction market
80%
of the Engineering Division’s revenue is provided by foreign projects
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Russia
Novovoronezh NPP-2
Rostov NPP
Kursk NPP-2
Leningrad NPP-2
Austria
Bangladesh
Rooppur NPP
Belarus
Belarus NPP
Belgium
Bulgaria
Hungary
Paks II NPP
Germany
Egypt
El-Dabaa NPP
India
Kudankulam NPP
Kazakhstan
China
Tianwan NPP
Lithuania
The UAE
Slovakia
Turkey
Akkuyu NPP
Ukraine
Finland
Hanhikivi-1 NPP
Switzerland
Japan
Russia
Novovoronezh NPP-2
Rostov NPP
Kursk NPP-2
Leningrad NPP-2
Austria
Bangladesh
Rooppur NPP
Belarus
Belarus NPP
Belgium
Bulgaria
Hungary
Paks II NPP
Germany
Egypt
El-Dabaa NPP
India
Kudankulam NPP
Kazakhstan
China
Tianwan NPP
Lithuania
The UAE
Slovakia
Turkey
Akkuyu NPP
Ukraine
Finland
Hanhikivi-1 NPP
Switzerland
Japan

2018 Milestones

January
January
19.01.2018
Power start-up of Rostov NPP Unit 4.
February
February
15.02.2018
Putting into commercial operation of Tianwan NPP Unit 3 (China).
March
March
09.03.2018
Power start-up of Leningrad NPP-2 Unit 1 (Russia).
23.03.2018
Completion of installation of the reactor pressure vessel of Belarus NPP Unit 1.
30.03.2018
Start of the foundation slab concreting in the reactor building at Akkuyu NPP Unit 1 (Turkey).
April
April
28.04.2018
Start of the foundation slab concreting in the reactor building at Kursk NPP-2 Unit 1 (Russia).
May
May
14.05.2018
Awarding of International Project Management Association Certificate corresponding to grade 4 competence in project, program and portfolio management based on IPMA Delta model.
22.05.2019
JSC ASE EC and JSC ASE obtain ISO 9001:2015 and ISO 14001:2015 international standard certificates.
June
June
08.06.2018
Signing a strategic package of documents defining the guidelines for the Russian-Chinese nuclear cooperation that includes inter alia:
  • Frame Contract for joint construction of new units at the Tianwan NPP site (Units 7&8);
  • Frame Contract for construction of Russia-designed NPP at the new site in China (Xudapu NPP Units 3&4).
July
At the photo: Sheikh Hasina, the Honourable Prime Minister of the People’s Republic of Bangladesh, Yury Borisov, the Deputy PM of the Russian Federation for the military-industrial complex and Alexander Lokshin, the First Deputy Director General for Operations Management, Rosatom State Corporation participate in an official ceremony of the first concreting of the Rooppur NPP Ppower Unit 2 foundation
July
08.07.2018
Start of the foundation slab concreting for the reactor building at Rooppur NPP Unit 2 (Bangladesh).
24.07.2018
Detailed design documentation was issued for commencement of earthworks and excavation of pits for the main buildings of Kudankulam NPP Unit 5 (India).
August
August
18.08.2018
Start of installation of the molten corium trap at Rooppur NPP Unit 1 (Bangladesh).
25.08.2018
Physical start-up of Tianwan NPP Unit 4 (China).
27.08.2018
Start of the foundation slab concreting of the turbine building at Rooppur NPP Unit 1 (Bangladesh).
September
September
28.09.2018
Commissioning of Rostov NPP Power Unit 4 (Russia).
October
October
10.10.2018
Signing of the Contract for development of the basic design for Tianwan NPP Units 7 & 8 (China).
26.10.2018
Safety systems flushing on the open reactor completed at Belarus NPP Unit 1.
28.10.2018
Submitting documents for of El-Dabaa NPP Units 1,2 construction licensing.
November
November
13.11.2018
Beginning of installation of the molten corium trap (core catcher) at Kursk NPP-2 Unit 1.
18.11.2018
Start of assembly works at the reactor at Belarus NPP Unit 1. Core barrel installed in the reactor pressure vessel.
December
December
07.12.2018
Start of the foundation slab reinforcing of the reactor building at Kursk NPP-2 Unit 2.
22.12.2018
Putting Tianwan NPP Unit 4 (China) into commercial operation.

Events after the Reporting Date

February
February
18.02.2019
Commencement of physical startup of Novovoronezh NPP-2 Unit 2.
18.02.2019
Installation of the molten corium trap at Kursk NPP-2 Unit 1.
19.02.2019
Power supply for auxiliary loads under the design layout at Belarus NPP Unit 1.
March
March
07.03.2019
Signing of General Contract for construction of Tianwan NPP Units 7 & 8, signing of Technical Design Contract for Xudapu NPP Units 3 & 4.

Financial and Operational Highlights 2018

EBITDA, bln RUR
20182017201616.813.932.4+20.8%

The losses incurred over Belene NPP Project were reimbursed upon the Final Award by the Arbitration Court in 2016. This factor influenced the EBITDA index. The index growth in 2018 resulted from the efficient cost management process and the restrained management expenses.

CAPEX, bln RUR
7.72.71.5201820172016+185.2%

Summing up the investment program implemented by the Engineering Division in 2018, the amount of 4.2 billion rubles has been saved owing to the procurement procedures and withdrawal from or cancellation of earlier scheduled actions of the investment program.

Revenue, bln RUR
201820172016201.9175.2152.9+15.2%

In 2018, the revenue amounted to 202 billion rubles. The parameter had grown compared to 2017 by 15.2%. The most sizeable shares in the revenue are those accounted for by CEW and equipment businesses. The biggest contribution to the revenue was made by Rooppur NPP (Bangladesh), Kudankulam NPP (India) and Belarus NPP projects.

10-year Portfolio of Overseas Orders (traditional products), mln USD
20182017201676,95090,84592,344–15.3%

Dynamics of the project portfolio is related to the change in the portfolio structure and implementation of contracts.

Number of Power Units in the Company Portfolio
333320162017312018

The number of power units is estimated with account of commissioning of Tianwan NPP Units 3&4 and Rostov NPP Unit 4 and signing of new NPP construction contracts.

Average Headcount (considering external part-timers), pers.
20182017201619,19114,45014,919+32.8%
Number of New Jobs
2018201720166,8523,6782,447+86.3%
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Total Number of Employees as of December 31 of each year, pers.
20182017201623,55416,67714,562+41.2%

The growth of newly generated jobs and staff size is explained by:

  • transition to the active stage of NPP construction abroad, such as Rooppur in Bangladesh, Belarus NPP and Kursk NPP in Russia;
  • enhancing the competence of employees of the design division as part of the foreign projects;
  • development of IT-competences as part of implementation of the “Digital Economy” program.
Salary and Other Employees’ Remunerations and Benefits, mln RUR
22,36117,11617,448+30.6%201820172016

The benefits increase owing to the annual indexation of salaries.

Labor Productivity (in terms of proper revenue), mln RUR/pers.
3.853.733.30+3.2%201820172016

The actions aiming to raise the efficiency of the basic operational processes stimulate a steady growth of labor productivity and business efficiency.

Average Age of Employees, years
412016412017402018

The average age of the Engineering Division employees has remained to be at most 41 year for the last three years, and it demonstrates a tendency towards decreasing. This is owing to methodical endeavors to rejuvenate the staff provided that the key competences in designing and construction of complex engineering facilities are retained. We appreciate knowledge and industry background of our personnel in the age of maturity. Simultaneously, we aim to employ young staff members with competences in the area of digital technologies, knowledge of foreign languages who are ready to perceive the experience and learn to take decisions.