Annual report - Техснабэкспорт

Transcription

RELIABILITY SUSTAINABILITY SAFETY
ANNUAL REPORT
TENEX
2014
TENEX
Annual Report
2014
Approved by the resolution
of the Sole Shareholder 30.06.2015
Preliminary approved
by the resolution of the Board of Directors
29.05.2015
General Director
L. M. Zalimskaya
2
1.0
TENEX Annual Report
2014
Stakeholder
Public Assurance*

G4-33
Kurbatova, T. G.
Chief Specialist of International Business
Department, the State Atomic Energy
Corporation Rosatom
Linyaev, O. I.
Head of the Unit of the NFC Lifecycle Projects
Corporation Rosatom
Regional Vice President of AREVA, Russia,
Ukraine & CIS Mamiy, E. A.
Advisor to Communications Department,
the State Atomic Energy Corporation Rosatom
Commercial Director of JSC International
Uranium Enrichment Centre
Muraviov, D. E.
Managing Director of TENEX-Korea Со. Ltd.
Emelianova, Yu. V.
Deputy Director General of Nexia Pacioli LLC
Plyamina, O. V.
Executive Director of Interregional Ecological
Non-government Organisation “GREENLIFE”
Emets, P. E.
Senior Advisor of the Department
for Coordination, Development and Regulation
of External Economic Activity of the Ministry
of Economic Development of Russia
Ryzhenko, N. S.
Director of TRADEWILL LIMITED
Samoshin, Yu. V.
Deputy Head of International Business
Department, Chief of International Operations
Planning and Coordination Department,
the State Atomic Energy Corporation Rosatom
Shishkin, A. P.
Director of JSC SPb IZOTOP
Sinyov, A. N.
Director of Moscow Representative Office,
NAC International Inc.
Starodumov, V. V.
Head of Unit for Commercial and External
Economic Activity, Deputy Head of Public
Reporting Committee of JSC Siberian Chemical
Combine
Titov, V. P.
Central Europe Vice President of Rusatom –
International Network
Tulupov, K. V.
Director for Strategic Development of
JSC Uranium One Group
Kondratenkov, M. Yu. Chief Advisor of the Nonproliferation and Arms
Control Department, the Ministry for Foreign
Affairs of Russia
Usoltcev, A. V.
Director of the International
Cooperation Department, the State Atomic
Energy Corporation Rosatom
Koryakin, K. I.
Expert of the NFC Lifecycle Projects
Corporation Rosatom
Vandyshev, V. I.
Acting Director General of SC Angarsk
Electrolysis Chemical Complex
Yanko, L.T.
Krukov, A. N.
Manager of the NFC Lifecycle Projects
Corporation Rosatom
Director of the Market Development
Department of JSC TVEL
Zakharov, S. A.
Deputy Head of Department, Federal Service
for Technical and Export Control of Russia General Director’s Advisor, the State Atomic
Energy Corporation Rosatom
Zulkharneev, A. F.
Director of PIR Center
Batov, D. I.
Vice President for International Cooperation
of JSC Uranium One Group
Baumstein, S. V.
Acting Deputy Director General for Economics
and Finance of SC Ural Electrochemical
Integrated Plant
Devos, Ludovic
Efremov, G. V.
Fokina, T. A.
Project Director, the State Atomic Energy
Corporation Rosatom
Irgang, Michael
Director of Business Development, Russia,
CIFAL
Karasyov, A. V.
Director of the International Cooperation
Department, JSC Rusatom Overseas
Khlopkov, A. V.
Director of the Centre for Energy and Security
Studies, Editor-in-Chief of Nuclear Club Journal
Kislov, A. I.
Senior Expert of the Department for Safety
Regulation of Nuclear Fuel Cycle Facilities,
Nuclear Power Installations of Vessels
and Radiation Hazardous Facilities, the Federal
Environmental, Industrial and Nuclear
Supervision Service
Kuchinov, V. P.
* Public Assurance Statement is provided in Appendix No. 4.
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TENEX Annual Report
2014
Table of Contents
Table of Contents
Key Performance Indicators of TENEX (the Company) in 2014
Highlights of the Reporting Period
Address from the Chairman of the Board
Address from the General Director
Address from the Chairman of the Public Reporting Committee
6
7
8
10
11
I. General Information
1.1. Mission and Basic Principles of Business
1.2. Core Businesses 1.3. Structure
1.4. Corporate Governance and Control System
1.4.1. General Shareholders’ Meeting
1.4.2. Board of Directors
1.4.3. General Director
1.4.4. Top Management 1.4.5. Audit Commission
1.5. Information about the Company
1.6. Historical Background
1.7. The Company in the Global Uranium Market 1.7.1. Market Situation and Competitive Environment
1.7.2. Position of the Company
1.8. The Company in the Nuclear Industry
14
14
15
16
16
17
23
24
25
25
27
29
29
30
31
II. Strategy
2.1. Strategic and Mid-term Planning 2.2. Factors Influencing Formation of Business Strategy
2.3. Key Tools of Achievement of Strategic Goals
36
36
37
III. Outcomes of the Core Business
3.1. Contracting and Sales 3.2. Transportation and Logistics
3.2.1. Diversification of Shipping Points
3.2.2. Building an Own Equipment Fleet
3.2.3. Internal Programme of Export Control, Licensing and Customs Support
3.3. Financial and Economic Results
3.3.1. Main Financial Indicators
3.3.2. Key Financial Standing Indicators 3.3.3. Dividends
3.3.4. Payments to Budgetary and Extra-budgetary Funds
3.3.5. Investments
40
42
43
44
44
46
46
48
50
51
52
IV. Performance Management
4.1. Key Performance Indicators
4.2. Risk-management and Development of Compliance System 4.3. Finance Management
4.4. Cost Management
4.5. Procurement Management
56
56
62
64
64
4.6. Management Systems
4.6.1. Quality Management
4.6.2. Environmental Management
4.6.3. Supply Chain Security Management
4.7. Human Resources Management
4.7.1. Description of Personnel
4.7.2. Remuneration
4.7.3. Recruitment, Training and Advancement of Personnel
4.8. Internal Control and Audit
4.9. Nuclear Material Control and Accounting 4.10. Economic Security and Anticorruption 65
67
68
69
69
70
73
73
77
78
79
V. Environmental Impact
5.1. Environmental Policy
5.2. Radiation Safety of Shipments
5.3. Use of Energy Resources and Water
82
84
86
VI. Social Policy
6.1. Labour Protection 6.2. Social Programmes
6.3. Development of Corporate Culture
6.4. Charity
6.5. Development of Communications
90
90
92
93
96
VII. Appendices
Appendix No. 1. Information about the Report and its Preparation
1.1. Information on Previous Reports
1.2. Description of the Report
1.3. The Report Preparation and Engagement of Stakeholders
1.4. The Report Boundaries and Information Disclosure
1.5. Disclaimer
1.6. Validation of the Reported Information and Conformity to Standards Appendix No. 2. Accounting Table of Stakeholder Recommendations and Requests,
Received during the Report Drafting Process
Appendix No. 3. Table of Elements and Indicators of Public Reporting Disclosures Appendix No. 4. Public Assurance Statement on the Report
Appendix No. 5. Statement on Results of Independent Assurance of Public Annual
Report of TENEX for 2014
Appendix No. 6. Membership in Professional Organisations and Associations Appendix No. 7. Response to Key Strategic and Financial Risks
Appendix No. 8. Accounting (Financial) Statements
Appendix No. 9. Auditors’ Conclusion on the Accounting (Financial) Statements Appendix No. 10. Issues Reviewed by the Board of Directors in 2014
Appendix No. 11. Conclusion of the Internal Control and Audit Service on results
of the internal audit of the public reporting preparation process Appendix No. 12. Glossary, List of Abbreviations 98
98
99
100
102
104
104
105
109
116
118
125
127
129
141
143
144
145
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TENEX Annual Report
2014
Highlights of the Reporting Period
Key Performance Indicators of TENEX
(the Company) in 2014
Uranium product export, US $ billion
~ 2.2
Long-term export contract portfolio, US $ billion in comparable prices ~ 23.0
Increment in long-term export contracts portfolio against 2011, %
G4-9
Highlights
of the Reporting Period
Proceeds, RUR mln
117
• 22 transactions for uranium products
deliveries totalling US $0.8 billion were
concluded.
• 51 deliveries of uranium products
to customers in 17 countries were
completed.
93,397
Earnings before interest, taxes, depreciation, and amortisation (EBITDA),
RUR mln
31,733
Net profit, RUR mln
11,947
Number of customer-companies for delivered uranium products
37
Number of country-recipients of the products 17
•
•
Share of world NPP operators supported by the Company’s deliveries, %
44
Share of NPPs with reactors of western design supported
by the Company’s deliveries, %
50
•
G4-9
Number of deliveries
51
Violations of contractual terms 0
Number of employees (average, persons)
326
Free (targeted) charity funding of programmes and projects, RUR billion
~ 1.8
Personnel engagement rate, %
• According to the results of the year,
the total long-term order portfolio
was approximately US $23 billion
in the comparable prices.1
93
•
•
•
•
•
•
MARCH
All payments were settled under the contracts
concluded in pursuance of the Agreement
between the Government of the Russian
Federation and the Government of the United
States of America Concerning the Disposition
of Highly-Enriched Uranium Extracted
from Nuclear Weapons of 18.02.1993
(HEU Agreement).
A delegation of TENEX led by the General
Director took part in the III Nuclear Industry
Summit.
APRIL
Four long-term contracts with a large
U.S. utility were concluded.
Director took part in the annual conference of
the Japan Atomic Industry Forum (JAIF).
Nordea Bank AB opened TENEX a credit line
with a limit of US $264 million for three years.
JUNE
In New York, on the side-lines of the World
Nuclear Fuel Market conference, the Material
Account Agreement was signed with
the South Korean KEPCO Nuclear Fuel (KEPCO
NF).
Director took part in the VI International
Forum ATOMEXPO 2014.
JULY
The statement was signed regarding
the completion of the main equipment
warranty operation of the 4th stage of
the gas centrifuge plant (GCP) for uranium
enrichment with a production capacity
of 500,000 SWU/year. The TENEX’s commitment
under the contract2 with the China Nuclear
Energy Industry Corporation for technical
assistance in construction of the 4th stage
of the GCP in China was accomplished in full.
The Material Account Agreement
was concluded with ConverDyn,
one of the world’s largest suppliers of natural
uranium conversion services.
1 In the prices of 2011, the year that preceded three-year period 2012–2014.
SEPTEMBER
A delegation of TENEX led by General Director
took part in the 39th Symposium of the World
Nuclear Association (WNA).
• General Director of TENEX L. M. Zalimskaya
was elected to the Board of Management
of the WNA.
•
OCTOBER
A delegation of TENEX led by General Director
took part in the first World Nuclear Exhibition
in Le Bourget, France.
• On the side-lines of the exhibition
in Le Bourget, a Memorandum
of Understanding on deepening cooperation
in the field of logistics was signed with
the French holding company DAHER.
•
NOVEMBER
The trial of the new route for shipping
uranium product to APR countries
was completed: the fifth over the last
two years’ shipment of enriched uranium
from Vostochny Seaport in Maritime Territory
of Russia to the South Korea was completed.
• In the framework of participation in ROSATOM’s
strategic project on the promotion of services
of the nuclear fuel cycle (NFC) back-end
in the market, the Company held a two-day
Russian-Japanese science and technology
seminar, where Russia’s leading specialists
presented the delegation of the Japan Atomic
Energy Agency (JAEA) with detailed information
regarding the current state and development
perspectives of the Russian NFC.
•
DECEMBER
Nine contracts with utilities from
APR countries were signed.
• Following the results of the regular
certification audit of the TENEX
integrated management system, carried
out by Intercertifica-TÜV jointly with
TÜV THÜRINGEN e.V. (Germany), the system
conformance to the requirements of
the international standards DIN EN
ISO 9001:2008 and DIN EN ISO 14001:2009
was confirmed.
•
2 The contract was concluded in furtherance of the Supplementary
Protocol of 06.11.2007 to the Russian-Chinese Intergovernmental
Agreement on Cooperation in Construction of GCP for Enrichment
of Uranium for Nuclear Power in the Territory of the PRC of 18.12.1992.
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TENEX Annual Report
2014
Address from the Chairman of the Board of Directors
Address
from the Chairman
of the Board of Directors
G4-1
The Public Annual Report of TENEX
for 2014, prepared in accordance with
the new version of the Global Reporting
Initiative (GRI, version G4), is addressed
to a broad circle of stakeholders
and contains detailed information about
the Company’s performance in 2014
in a context of the activity’s material
aspects.
The sustainability of the business and
the Company’s standing in the global
market, financial and economic results
are among the aspects that the Company’s
stakeholders recognise as material ones.
There is a reason behind that: for decades,
TENEX has brought up to half of the total
currency earnings from foreign operations
to ROSATOM.
This reporting year was no exception.
In a rather uneasy political and economic
situation, the Company managed not only
to exceed the 2013 indicators in terms
of commercial export and proceeds
in the global market, but also signed more
than twenty new deals for the supply
of uranium products.
In 2014, TENEX successfully completed payments under contracts concluded
in pursuance of the Agreement between the Government of the Russian Federation
and the Government of the United States of America Concerning the Disposition
of Highly-Enriched Uranium Extracted from Nuclear Weapons of 18.02.1993. The total
currency proceeds from the implementation of this unprecedented project, in terms
of scale, complexity and duration, were over US $13 billion.
TENEX fulfilled in full scope its obligations under the contract with the China Nuclear
Energy Industry Corporation (CNEIC) on the technical assistance in construction
of the 4th stage of the gas centrifuge plant (GCP) for uranium enrichment of 500,000
SWU/year capacity in China: on 31.07.2014, the statement of completion of the warranty
operation period of the GCP essential equipment was signed.
Development of the transport and logistics infrastructure is one of the material aspects
of TENEX’s activity. In 2014, the pilot trying out the shortest transportation route
for uranium products to customers in the APR countries via a Russian Far East seaport
successfully ended. In 2015, this new route will be used regularly. The near-term plans
include testing out import operations through Vostochny Seaport. This aims to achieve,
among other things, higher reliability and shortening the term of empty transportation
equipment for enriched uranium.
As usual, the Company has been focused on human resource management issues.
It is the main capital of the Company, professionalism and competence whom, allows
TENEX to achieve success from year to year, not only in the promotion of the Russian
uranium product to the global market, but also in solving other tasks of various complexity
set by ROSATOM.
I hope that the TENEX team retains and increases its accumulated potential for the sake
and in the best interest of Russia’s nuclear industry.
The total amount of the long-term
order portfolio was about US $23 billion
in comparable prices based on the results
of the year.
Kirill Komarov
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TENEX Annual Report
2014
Address from the Chairman of the Public Reporting Committee
Address from
the General Director
G4-1
Building up the export potential
and generation strategic backlog
for the future on a par with traditionally
impeccable fulfilment of contractual
obligations, was the leitmotif of TENEX
work in 2014.
The Company not only achieved
all of its key performance indicators
set by ROSATOM, but also exceeded
the most important of them – proceeds
in the global market and the portfolio
of foreign orders for ten years.
In 2014, TENEX concluded new deals
for the supply of products and services
of Russian NFC totalling US $0.8 billion.
Strictly according to the schedule, over fifty
shipments of products to the customers
were completed, including three to South
Korea via the new transportation route
from Vostochny Seaport in the Maritime
Territory of Russia.
Today, under TENEX’s belt, there are
not only long-term contracts for the supply
of uranium products to foreign companies
from countries of Europe, Asia, America
and Africa, but also a whole set of
new projects aimed at strengthening
the Russian nuclear industry’s
competitiveness.
The Company is developing its marketing
and logistics tools: in the reporting year,
the material account agreements were
done with the South Korean KEPCO
NF and the U.S. ConverDyn, which
allowed for the optimising of interaction
with partners and increased flexibility
of work with the common customers.
In the framework of the Material Account
Agreement with Westinghouse Electric
Sweden AB, the delivery of enriched
uranium product (EUP) from Russia
to Sweden was carried out for the first
time with aim to subsequent assignment
by book-transfer to TVO of Finland.
In 2015, the Company plans to further
broaden its fleet of transportation
equipment.
TENEX is actively participating
in ROSATOM’s strategic project to promote
Russian NFC back-end services to the global
market. As such, in 2014, it took the first
practical steps by fixing a number
of arrangements on the reprocessing
in Russia of regenerated uranium owned
by foreign customers.
The development of key competences
of personnel has been and remains
one of the top priorities of the social
policy of TENEX. The Company provides
its employees with the broadest possible
opportunities for professional education
and development of managerial
competences. Traditionally, the personnel
engagement rate is one of the highest
in the sector; in 2014, it was 93%.
I express my sincere gratitude
to the Russian and foreign partners
for the many years of structural interaction
and to the Company’s team for one more
year of honest and effective work.
Liudmila Zalimskaya
Address from
the Chairman
of the Public Reporting
Committee
Over five years of participation in the pilot
project of ROSATOM to develop a corporate
system of public reporting, TENEX, as
one of the key participants, has not only
mastered the laws of the new for us genre
of communicating with a broad circle
of stakeholders, but going creatively
has introduced a number of approaches
that relate to specifics of the Company’s
activities. This allowed for the optimisation
of interaction with the distinguished
stakeholders and facilitated a more open,
informative and prompt dialogue.
By establishing and developing the system
of TENEX’s public reporting according
to the best international standards
and practices, we have tried to make
it as effective and as inexpensive
as possible, keeping in mind the inclusion
of the active usage of correspondence
formats of communication with a broad
circle of stakeholders via electronics,
which in the era of the Internet appears
absolutely logical, when writing the annual
reports of the Company.
During previous campaigns, we proposed
the discussions of the draft concept
of the report by stakeholders through
correspondence, via questionnaires. This
approach was tested now at the final stage
of preparation of the Public Annual Report
of TENEX for 2014: its draft was forwarded
in advance to the stakeholders via e-mail
to obtain substantial recommendations
and comments. This allowed for a more
precise consideration of the demands
and expectations of the stakeholders
and, no doubt, an improvement
in the quality of the document.
The effectiveness of the chosen approach
was confirmed many times by awards
received by the Company at authoritative
Russian and international contests of public
reports.
In 2014, for the first time in the history
of the industry, TENEX’s report for
the past year was awarded the highest,
platinum prize in the “Energy: Equipment
and Services” category of the prestigious
annual international competition
held by the League of American
Communications Professionals. It received
99 points out of 100 and ranked 12th
in the world raking for the top 50
companies with the best reports.
I would like to express my sincere gratitude
to the Russian and foreign stakeholders
for their constructive cooperation,
including in the preparation of this report.
Valery Govorukhin
11
GENERAL
INFORMATION
*.txt
*
1. General Information
1.1.
1.2.
1.3.
1.4.
1.5.
1.6.
1.7.
1.8.
Mission and Basic Principles of Business
Core Businesses
Structure
Corporate Governance and Control System
Information about the Company
Historical Background
The Company in the Global Uranium Market
The Company in the Nuclear Industry
File format *.txt
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14
1.1
TENEX Annual Report
2014
General Information
Mission and Basic Principles
of Business
Mission:
TENEX operates in the interests
of the Russian nuclear industry while
making the best possible use of its export
potential and competitive advantages
in strict compliance with the applicable
law and quality standards, security and social
responsibility.
An aggregative of the functional diagram of the Company is given in the figure below.
Basic Principles of Activity:
G4-56
• Fair competition, observance of ethical
standards of business, strict fulfilment
of obligations and a tailored approach
to each customer,
• Strengthening of public confidence
in nuclear power and industry,
transparency of activity and openness
to a dialogue with partners,
1.2
G4-4
G4-8
Export of Nuclear Fuel Cycle Products and Services
• Assistance to sustainable development
through economic efficiency, social
fairness and environmental safety,
• Orientation to high professional
standards and assistance in
the professional advancement
of employees.
Core
Businesses
Joint Stock Company “TENEX”
(the trademark TENEX) is one of the
world’s largest suppliers of NFC products,
which over the past forty years has covered
the notable part of uranium enrichment
requirements of western design reactors.
1.3
Structure
In the reporting year, the Company’s core
businesses were:
• foreign supplies of Russian
NFC companies’ products (for details,
see Section 3.1.);
• improvement of transportation
and logistic support (for details,
see Section 3.2.).
Transport and Logistics
Corporate Law Support
Strategy and Marketing
Internal Control and Audit
Economics and Finance
Risk Management
Information Policy
and Communications
Procurement and Management
Systems
Assets and Data Protection
Information Technologies
Human Resources
and Administration Support
Upcoming Projects
15
16
1.4
TENEX Annual Report
2014
General Information
17
Corporate Governance
and Control System
TENEX persistently improves the corporate
governance system by following the best
Russian and international practices
and standards, as well as actively
participating in the programmes
and projects to increase the effectiveness
increase of corporate governance
of the nuclear industry companies
implemented by ROSATOM.
In the reporting year, the Company:
• has updated standards for procedures
of corporate governance, including
the procedure for the preparation
and agreement of draft decisions
of the Board of Directors and Sole
Shareholder of the Company, as well
as the procedure for the corporate
information exchange with ROSATOM;
• has developed and approved
a new revision of the Articles
of Association with the aim of bringing
them into compliance with
the regulations of Chapter 4 of the Civil
Code of the Russia Federation
(in the revision of the Federal
Law No. 99-FL).3
1.4.2. Board of Directors
In 2014, the corporate procedures
were fulfilled in full compliance
with the requirements of the existing
Russian legislation and constituent
documents of TENEX. Certain principles
and recommendations of the Code
of Corporate Governance4 are reflected
in a number of local regulatory acts and
are used by the Company in practice. This
is being done according to the features
associated with TENEX being the Sole
Shareholder and the features of the legal
standing of ROSATOM, as fixed in the legal
regulatory acts of the Russian Federation,
which provide for unity in the governance
of nuclear industry organisations. Such
actions are also motivated by the fact that
the Company’s securities are not subject
to listing.
According to the Articles of Association
of TENEX, the governance and control bodies
of the Company are:
As per the Articles of Association, the Board
of Directors of TENEX includes five
persons. The Chairman of the Board
is not concurrently the sole executive body
of TENEX. The commissions and boards
within the Board of Directors have not been
set up. Members of the Board do not hold
Company shares.
In 2014, members of the Board were
not paid remuneration; no transactions
took place related to the acquisition
or carve-out of the Company’s shares
by members of the Board.
G4-41
G4-34
• General Shareholders’ Meeting
(in the person of the Sole Shareholder);
• Board of Directors;
There are no independent directors
in the Board of Directors of the Company –
all its members are representatives
of ROSATOM and its organisations.
In the reporting year, the Board
of Directors of TENEX held 12 meetings.
Information on the issues reviewed
by the Board of Directors in 2014 is given
in Appendix No. 10.
• General Director (the Sole Executive
Body);
From 01.01.2014 until 30.06.2014, the Board
of Directors (as elected on 28.06.2013)
consisted of:
• Audit Commission.
• Kirill Komarov, Chairman of the Board,
• Vadim Zhivov,
1.4.1. General Shareholders’ Meeting
The highest governance body of TENEX
is the General Shareholders’ Meeting,
in the person of the Sole Shareholder,
JSC Atomenergoprom. The jurisdiction
of the Sole Shareholder is to decide on
key aspects of the Company’s activities.
• Liudmila Zalimskaya,
• Yuri Olenin.
• approved the annual report and annual
financial statements for 2013;
• made decisions on paying dividends to
the shareholder;
• shaped the Board of Directors
and the Audit Commission
of the Company;
• approved the new revision of the Articles
of Association.
3 Among others, the firm-name of the Company has been changed
and the dividend payment provision has been updated.
• Vladislav Korogodin,
In the reporting year, the Sole Shareholder:
4 Recommended to application by a letter of the Central Bank
of the Russian Federation No. 06-52/2463 of 10.04.2014.
G4-38
By the resolution of the Sole Shareholder of TENEX
on 30.06.2014 the elected the Board of Directors
in a new composition (biographical data
of the Board members are provided below):
• Kirill Komarov, Chairman of the Board,
• Nikolay Drozdov,
• Liudmila Zalimskaya,
• Vladislav Korogodin,
• Yuri Olenin.
In 2014, the Board of Directors and
the Sole Shareholder of TENEX, by their
resolution, did not approve significant
transactions and related party transactions
acknowledged as such, in accordance with
the Federal Law “On Joint Stock Companies”.
G4-39
18
TENEX Annual Report
2014
General Information
Kirill Borisovich
KOMAROV
Biographical data
Liudmila Mikhailovna
ZALIMSKAYA
Biographical data
Date of birth
29 December 1973
Career (employers, positions, temporary
activities at said employers)
Date of birth
31 July 1956
Language skills
English, German, and Dutch
Place of birth
Leningrad
• JSC Atomenergoprom (Deputy Director,
CEO, Director, 2007 – present)
Place of birth
Moscow
TENEX (1978 – present)
Education and specialty, academic
degree (if any)
Higher education, jurisprudence
Ph.D. in law
• ROSATOM (Executive Director for
Nuclear Energy Directorate, Deputy
Director – Director for Corporate
Development and International Business
unit, First Deputy General Director –
Director for Corporate Development
and International Business unit; 2010 –
present)
degree (if any)
Higher education, international economic
relations
Graduated from, year of graduation
The Urals State Law Academy, 1997
Language skills
English
Period of stay in the Board
of Directors of the Company
Since 2010, since 2012 – Chairman of the
Board
• Moscow State Institute of International
Relations of the Ministry for Foreign
Affairs of the USSR, 1978
• State Educational Establishment
for Higher Professional Education –
State University of Management, 2009
Since 2013
19
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TENEX Annual Report
2014
General Information
Nikolay Sergeevich
DROZDOV
Biographical data
Vladislav Igorevich
KOROGODIN
Biographical data
Date of birth
23 June 1972
Date of birth
25 October 1969
Language skills
English
Place of birth
Moscow
• JSC Atomenergomash (Project Manager,
2006–2010)
Place of birth
Moscow
degree (if any)
Higher education, economics
• JSC Alstom (Deputy General Director,
2010–2012)
degree (if any)
Higher education, applied mathematics and
physics
• JSC Atomenergoprom (Head
of Department of Marketing and Sales
Market and Deputy Director, 2007–
February 2010)
• ROSATOM (Deputy Director
of the Nuclear Energy Directorate/Head
of the Department for NFC and NPP
Life Cycle Management, March 2010 –
present)
Plekhanov Russian Academy of Economics,
1993
Language skills
English
• JSC Rusatom Overseas (General
Director’s Advisor to CEO, 2013)
• ROSATOM (Head of Department,
2013 – present)
Since 2014
• Moscow Institute of Physics
and Technology, 1992
• Federal State-Funded Educational
Institution of Higher Professional
Education “Russian Presidential Academy
of National Economy and Public
Administration”, 2011
Over five years
21
22
TENEX Annual Report
2014
General Information
1.4.3. General Director
Yuri Alexandrovich
OLENIN
Biographical data
Date of birth
13 November 1953
Place of birth
Kirovabad, Azerbaijan SSR
• R&D Research and Design Institute
of Radio-Electronic Engineering
(NIKIRET), State Unitary Enterprise
“Special Scientific and Production
Enterprise “Eleron” in Zarechny, Penza
Region (Director – Chief Designer,
2001–2004)
degree (if any)
Higher education, radio engineering,
jurisprudence, Ph.D. in engineering,
professor
• Karl Marks Yerevan Polytechnic Institute,
1976
• Penza State Technical University, 1996
• Manchester Business School: Programme
for Top Management, 2000
Language skills
Armenian and English
• Federal State Unitary Enterprise
“Production Association “Start”
in Zarechny, Penza Region (General
Director 2004–2007)
• JSC TVEL (First Vice President, President,
2007 – present)
Over five years
Liudmila Zalimskaya
was born in Moscow on 31 July 1956.
In 1978, she graduated from the Moscow
State Institute of International Relations
under the USSR Foreign Ministry
as an ‘economist in international economic
relations with a foreign language’
specialising in Economic International
Relations. In 2009, she gained a Master’s
Degree in Business Administration from
the State University of Management.
Since 1978, Liudmila Zalimskaya
has worked as foreign-language
correspondence clerk, engineer, senior
engineer, senior expert, Deputy Director
and General Director at Uranservice,
and Deputy General Director, head
of the Uranium Products Directorate
at TENEX.
From 2007 until 2012 she held the position
of TENEX’s First Deputy General Director.
From October 2012 until April 2013
Liudmila Zalimskaya served temporarily
as Acting General Director of TENEX.
5 It is determined as per the grade (level) of the position in the sectoral position
hierarchy.
Since April 2013 she has served as General
Director of TENEX.
Liudmila Zalimskaya has been
awarded Medals of the Order of Merit
for the Fatherland 1st and 2nd class, Badge
Long-Service Employee of the Nuclear
Energy Industry, Badge Academician
I.V. Kurchatov 2nd and 3rd class,
Anniversary Medal 65 Years of Russia’s
Nuclear Industry, and the Badge of Merit
for the Nuclear Industry 1st class.
The General Director holds no shares
of the Company. During the reporting
year, the General Director did not enter
acquisition or transfer transactions related
to the Company’s shares. The General
Director’s cumulative remuneration
is determined according to the provisions
of the unified remuneration system
and consists of a position salary
and a monthly-integrated weighting5,
as well as an annual bonus.6
6 It is determined by a target and the achievement of key performance
indicators.
23
24
TENEX Annual Report
2014
General Information
1.4.4. Top Management7
Full Name, Position
GOVORUKHIN Valery Nikolayevich,
First Deputy General Director for Strategy
and Communications
GOROKHOVIK Alexey Vasilyevich,
Deputy General Director for Security
1.4.5. Audit Commission
In the reporting year, the Audit Commission
controlled the financial and economic
activities of the Company. This included
an independent credibility evaluation
of the financial data in both the annual
report and the annual financial statements
of the Company for 2013.
Record of Service
in the Company
Since 2004
As per the Sole Shareholder’s resolution No. 36
of 26.03.2014, the Company’s Audit Commission
elected as follows:
Since 2004
LOSHAKOV Igor Vyacheslavovich,
Deputy General Director for HR and Administration
• Natalia V. Klishevich, a Project Manager
at the Internal Control and Audit Service
of TENEX;
Since 2007
Since 1989
POLGORODNIK Sergey Igorevich,
First Deputy General Director for Commerce
Since 2006
TOVSTENKO Andrey Vladimirovich,
Deputy General Director for Strategy and Marketing
ULYANIN Yuri Alexandrovich,
Deputy General Director for Economics,
Finance and IT
7 Detailed biographies are given on the website of the Company at:
http://www.tenex.ru/wps/wcm/connect/tenex/site/company/management/.
Since 1994
Since 2002
• Ilya E. Nikolsky, Head of Operations
Efficiency Office at ROSATOM;
In 2014, the Sole Shareholder did not request
that the Audit Commission8 of the Company
conduct additional audits.
The Audit Commission held four
meetings in 2014.
Since 2010
As per the Sole Shareholder resolution No. 38
of 30.06.2014, the Audit Commission was reelected as follows:
• Anna V. Fomenkova, a Chief
Methodologist of Methodology
and Control Unit of Department
for Accounting and Taxation at TENEX.
• Ilya E. Nikolsky, Deputy Head
of Operations Efficiency and Head
of Project Office at ROSATOM.
LYSOVA Galina Alexandrovna,
Chief Accountant
or violations of legal acts of the Russian
Federation, which would have substantially
affected the credibility of the Company’s
reporting data, were revealed
in the financial and economic activity
in question.
• Denis M. Vasiliev, an Advisor
at the Accounting Methodology
Unit of the Finance Management
at ROSATOM;
• Denis M. Vasiliev, an Advisor
at the Accounting Methodology Unit of
the Accounting Office at ROSATOM;
KOZIN Oleg Igorevich,
Deputy General Director for Logistics
25
The Audit Commission audited the financial
and economic activities of the Company
for 2013 and issued a conclusion
on the credibility of the financial data
contained in the Company’s accounting
(financial) statement and Public Annual
Report for 2013 in any material respect.
No violations of the accounting procedure
and financial reporting established by
the regulations of the Russian Federation,
1.5
Information
about the Company
Name of the Company in Russian
Акционерное общество «Техснабэкспорт»
Name of the Company in English
Location and mailing address:
28, bld. 3, Ozerkovskaya naberezhnaya, Moscow, 115184, Russia
Corporate website:
http://www.tenex.ru
Corporate e-mail:
[email protected]
Contact phone number:
+7 (499) 949-26-83, +7 (495) 545-00-45
G4-13
8 As per the Sole Shareholder of TENEX resolution No. 41 of 30.01.2015, the Audit Commission of the Company was abolished and authorities
of its members were terminated early, due to the state registration of the new Articles of Association of the Company. In 2014, financial
and economic activities of the Company were not audited.
G4-7
G4-5
G4-3
26
TENEX Annual Report
2014
General Information
Fax:
+7 (495) 953-08-20
Primary State Registration Number:
1027700018290, registered on 11.07.2002 with
the Department of the Ministry of Taxes and Levies of Russia
for Moscow
Licence for Handling Nuclear Materials during Transportation:
No. GN-05-401-2586 of 31.01.2012
Branches and representative offices:
None
As of 31.12.2014, the Company’s
authorised capital was 638,118,652 roubles.
The Company placed 26,636 registered
ordinary shares at a par value of 23,957
roubles each. The Company has no preferred
shares.
The Sole Shareholder of TENEX is the Joint
Stock Company Atomic Energy Power
Corporation (JSC Atomenergoprom).
The Russian Federation has no special right
(“golden share”) to manage TENEX.
In June 2014, the Sole Shareholder
of TENEX resolved to approve the Financial
and Accounting Consultants Limited Liability
Company as the Auditor of the Company
for 2014 (Resolution No. 38 of 30.06.2014).
The Register of the Company’s shareholders
is maintained by the open JSC Registrator
R.O.S.T. 9
Auditor
Registrar
TIN (Taxpayer Identification Number): 7701017140
PSRN (Primary State Registration Number): 1027700058286
Location: 44/1 Myasnitskaya St., Moscow 101990, Russia
Phone: +7 (495) 737-53-53
Fax: +7 (495) 737-53-47
TIN (Taxpayer Identification Number): 7726030449
PSRN (Primary State Registration Number): 1027739216757
Location: 18 Stromynka St., Moscow 107996, Russia
Phone: + 7 (495) 771-73-35
Fax: + 7 (495) 771-73-34
№ Russian subsidiaries of TENEX
Share (%)
1.
JSC SPb IZOTOP
100
2.
JSC SPC Khimpromengineering
51.52268
3.
CJSC TENEX-Logistics
100
4.
LLC Kraun
99.9998
№ Foreign subsidiaries of TENEX
Share (%)
1.
INTERNEXCO GmbH, Germany
100
2.
TENEX-Korea Co., Ltd., Republic of Korea
100
3.
TENEX-Japan Co., Japan
100
4.
TRADEWILL LIMITED, United Kingdom
100
5.
TENAM Corporation, USA
100
9 Since 06.04.2015, it is JSC Registrator R.O.S.T.
1975
Reorganisation of the All-Union Bureau
Techsnabexport in All-Union Association
Techsnabexport (A/A Techsnabexport)
of the Ministry of Foreign Trade
of the USSR.
Start of large-scale uranium product export
to Western Europe.
1987
First delivery of uranium enrichment
services to the USA.
Information on subsidiaries as of 31.12.2014
G4-6
1963
According to the resolution of the Council
of Ministers of the USSR No. 1477-rs
of 17.07.1963 the All-Union Bureau
Techsnabexport was established based
on V/O Mashinoexport, tasked with
carrying out export-import operations
involving rare-earth, rare, and refractory
metals, radioactive and stable isotopes,
ionising radiation sources, control
and measuring instruments, accelerator
and X-ray equipment.
1971
Conclusion of the first contract for
the supply of uranium enrichment services
with the Atomic Energy Commission
of France.
Details of the Auditor and Registrar are given
in the Table below.
G4-9
1.6
Historical
Background
1988
Transfer of A/A Techsnabexport from
the authority of the Ministry for Foreign
Trade of the USSR to that of the Ministry
of Medium Machine Engineering
of the USSR (later the Ministry of Atomic
Power and Industry of the USSR, now
the State Atomic Energy Corporation
Rosatom). Conclusion of the first longterm contract for the enriched uranium
deliveries to the Republic of Korea.
1990
Start of natural uranium deliveries
to the USA and EU countries.
1993
Conclusion of the first contract with
the PRC for uranium product delivery
in the framework of the Agreement
between the Government of the Russian
Federation and the Government
of the People’s Republic of China
on Cooperation in Construction
of GCP for Enrichment of Uranium
for Nuclear Power in the Territory
of the PRC of 18.12.1992.
1994
Conclusion of the contract with
USEC Inc. for the delivery of lowenriched uranium (LEU) produced
as a result of reprocessing of highly
enriched uranium (HEU) extracted
from dismantled nuclear warheads
for further use as fuel at the US NPPs
in pursuance of the Agreement between
the Government of the Russian Federation
and the Government of the United States
of America Concerning the Disposition
of HEU Extracted from Nuclear Weapons
of 18.02.1993 (HEU Agreement).
1995
Broadening of export geography: start
of deliveries of LEU to the RSA under
a contract with ESKOM, which is
the operator of the only NPP on the African
continent.
1999
Conclusion of the contracts with the Group
of Western Companies (CAMECO, Canada;
Cogema/AREVA, France; Nukem, Germany/
USA) for selling part of the feed component
of low-enriched uranium (FC LEU) being
returned under HEU Agreement.
Conclusion of the first contract for uranium
product delivery to the Japanese utility
TEPCO.
27
28
TENEX Annual Report
2014
General Information
2000
Obtained the licence from Gosatomnadzor
of Russia the licence for handling nuclear
material: the transition from mediatory
functions in trading nuclear and radiation
materials to full-scale manufacture of
and trade in of NFC goods and services.
2010
Acquisition of 100% of shares
of JSC SPb IZOTOP to improve
transportation and logistics infrastructure.
The environmental management system
of TENEX certification to the international
standard DIN EN ISO 14001:2009.
2001
The state accreditation of the Company
as an organisation that created an company
internal export control system
2011
Conclusion of the large-scale contract
with USEC Inc. for delivery of uranium
enrichment services in 2013–2022.
2003
Start of uranium product deliveries
to Mexico.
2012
Conclusion of the long-term contract
for the delivery of enriched uranium
product (EUP) with Emirates Nuclear
Energy Corporation (ENEC) for Barakah
NPP, the first example of this in the Arab
world.
The pilot delivery of EUP to Japan through
the Russian seaport Vostochny in Maritime
Territory.
The certification of the supply chain
security system to the international
standard ISO 28000:2007, the first
in the Russian nuclear industry.
2005
Acquisition and consolidation of assets
in uranium mining, machine engineering
and chemical industries in the interests
of ROSATOM.
2007
Inclusion of TENEX in the list of Russian
legal entities that entitled to own nuclear
material and nuclear installations according
to the Decree of the President of the Russian
Federation “On Restructuring of Nuclear
Power Industry Complex of the Russian
Federation” No. 556 of 27.04.2007.
2008
Conclusion of the contracts between
TENEX and China Nuclear Energy Industry
Corporation (CNEIC) related to rendering
technical assistance in construction
of the 4th stage of the GCP in China
and the delivery of uranium products
for Chinese NPPs from 2010–2020.
The quality management system
certification to the international standard
ISO 9001:2000.
2009
Conclusion of the first six direct contracts
with US utilities in the framework
of the Amendment to the US-Russia
Agreement Suspending the Antidumping
Investigation on Uranium Products
from the Russian Federation of 2008,
prepared in direct participation with
the Company, which created the legal
conditions to resume commercial deliveries
of the Russian uranium products to
the US market.
2013
50th anniversary of the Company:
TENEX team awarding a Diploma
of the Government of the Russian
Federation.
Successful completion of the LEU delivery
programme in the framework
of implementation of the HEU Agreement.
Shipping of the two batches of
EUP to the Republic of Korea through
Vostochny Seaport in Maritime Territory
as a trial of the new transportation route.
1.7
The Company in the Global Uranium
Market
1.7.1. Market Situation and Competitive Environment
In the reporting year, the conjuncture
in the front-end NFC product and service
market (natural uranium, conversion
and enrichment services) could
be described as unfavourable: decline
of demand with excessive supply, inventory
pressure on the market, not the best
pricing situation for uranium suppliers
and strengthening of the competition
of nuclear power with other types
of electricity generation, primarily with
fossil energy sources. To a great extent, this
was due to the remaining negative impact
of the Fukushima-Daiichi NPP accident’s
consequences on the global nuclear power
and uranium market.
In the natural uranium segment,
the worsening of the market conditions
was partially due to more pressure on
the market from the secondary feed
sources, but this did not lead to a notable
drop of supply from the primary sources
(production): 59,000 tonnes of natural
uranium were mined in 2013 and about
56,000 tonnes – in 2014.
Spot price indicators despite large
fluctuations during the year (from
US $28.25 up to US $40 per pound)
in December 2014 came up to the January
price of the same year and were US $35.5
per pound.10 At the same time, as compared
to natural uranium prices of preceding
years, in the reporting year, the level
of prices, including long-term ones,11
may be described as quite low.
10 From this point on the quotes published by Ux Consulting Company LLC
are given.
The general situation where supply
exceeds demand has led to the ultimate
termination of Westinghouse’s conversion
plant in Springfield’s Fuels Ltd in the United
Kingdom. During 2014, spot prices
of conversion dropped from US $8.25
to US $7.25 per kgU and from US $8.75
to US $7.5 per kgU in the North American
and European markets, respectively. Longterm conversion price indicators remained
the same, i.e., US $16 per kgU and US $17
per kgU for the North American
and European markets, respectively.
In the most significant segment of the market
for TENEX, namely the uranium enrichment
market, the situation in 2014 was determined
by the competitive environment, which
qualitatively changed due to the ultimate
transition of the world’s enrichment industry
to gas centrifuge technology.
Over the course of the year, price indicators
for uranium enrichment notably declined,
i.e., the spot indicators dropped from
US $99 per SWU to US $88 per SWU and
the long-term – from US $114 per
SWU to US $90 per SWU.
At the same time, in spite of some slowing
down in rate as compared to the previous
years, a build-up of capacities of new
URENCO gas centrifuge plants in the USA
and AREVA in France was noted.
The USA continued implementing projects
associated with new uranium enrichment
technologies (“American Centrifuge”,
SILEX). In September 2014, the USEC, Inc. –
one of the traditional uranium enrichment
suppliers – was reformed into Centrus
Energy.
11 As of December 2014, US $49 per pound.
29
30
TENEX Annual Report
2014
The main competitors of TENEX
are still URENCO (UK, Germany
and the Netherlands) and AREVA (France).
Competitive pressure is also growing
on the part of the Chinese uranium
enrichment supplier – CNEIC.
General Information
Restraints on the supplies of Russian
uranium products to the USA and EU still
remain in place, owing to Euroatom’s
policy on the diversification of sources
supply and limits on deliveries of Russian
uranium products to the USA remaining
effective until 2020, as per the Amendment
to Suspension Agreement of 2008.
1.7.2. Position of the Company
Despite the unfavourable market situation
and completion of the HEU Agreement
in 2013, TENEX has retained its position
as the leading uranium enrichment services
supplier to the world market, providing
uranium enrichment services for nearly
a quarter of the needs of western design
reactors.
The Company supplies products
to 50% of NPP operators of western
design reactors (or 44% of all world
NPP operators).12
G4-8
This is the result of the consistent work
to implement the business strategy
and is evidence of the efficiency
of the marketing approaches being used
(for details, see Chapter II. Strategy).
In the reporting year, the Company supplied
its products to 17 countries: 14 customers
from North America, 10 – European,
and 13 – from the APR, Middle East
and Africa.
The chart below shows the Company’s export
structure (2012, 2013 – without taking into
account supplies under the HEU Agreement)
by regions.
24%
71%
6%
2012
15%
15%
APR, Middle East
and Africa
Europe
65%
20%
2013
48%
North America
37%
2014
12 The calculations were done using the data of the World Association of Nuclear Operators (http://www.wano.info/en-gb/members/members) and the IAEA
http://www.iaea.org/PRIS/CountryStatistics/CountryStatisticsLandingPage.aspx.
1.8
G4-DMA
The Company
in the Nuclear Industry
With 100% of its shares held by
the nuclear industry holding company
JSC Atomenergoprom, TENEX is managed
by ROSATOM’s Corporative Development
and International Business unit.
TENEX has led the charge to promote
of uranium conversion and enrichment
services, as well as enriched uranium
for power and research reactors
in the global market. In doing so,
it carries out global marketing
and deliveries of products to utilities
operating NPP of western design
reactors in Europe, the Americas, Asia,
and Africa.
G4-EC8
G4-4
G4-8
The Company’s activities substantially
influence the financial and economic
performance of the industry. The proceeds
from the export of NFC products carried
out by TENEX account for nearly half
of the total proceeds of ROSATOM
obtained from foreign operations and are
an important resource for the development
of the Russian nuclear industry.
The Company sends nearly all
net profit to ROSATOM for financing
the common industry-wide development
and modernisation projects.
The Company also acts as an integrator
of business proposals for large customers
and attracts foreign loans on beneficial
terms in the interests of nuclear industry
enterprises.
A number of projects of strategic
importance undertaken by the Company
enable the possibility of making direct
foreign investments in transportation
and logistics infrastructure and enterprises
of the Russian nuclear industry.
TENEX has built up a multibillion-rouble
portfolio of long-term export contracts
for the delivery of Russian NFC products
and services until 2030, supporting over
10,000 jobs in ROSATOM’S Separationsublimation complex (SSC) enterprises,
most of which are hosted by so-called
“closed” (restricted access) cities
and forming a company town.
The Company interacts with suppliers
of uranium feed and its conversion
and enrichment services on the basis
of long-term contracts.
Resources needed to fulfil the contractual
commitments of the Company generally
come from long-term delivery contracts
for uranium feed signed with companies
of ROSATOM’s Mining Division,
including United Uranium Enterprises
LLC, and uranium feed deliveries from
the customers.
31
32
G4-12
TENEX Annual Report
2014
General Information
Uranium conversion services are provided
by JSC TVEL under a long-term contract.
Enriched uranium product is produced
under long-term contracts with JSC TVEL
and CJSC UEC at production capacities
of SC UEIP, JSC PA ECP, and JSC SCC.
Export orders of TENEX provide
up to half the workload of the enrichment
capacities of JSC TVEL, proven by decades
of experience and reliable Company
partners.
Changes in the volumes of supply of services
and goods in 2014 against 2013 are
not significant.
On the whole, the long-term contracting
of product deliveries implemented
by the Company is in line with global
practices and creates objective prerequisites
for the advanced planning of the operations
of vendors and participants
of the transportation and logistics chain,
while also ensuring employment at these
companies and their host regions, which
is secured by the available orders.
A detailed business model is given in the scheme
below.
Other
Customers
Foreign Customers
U3O8 /
natural UF6
Enriched UF6
Enriched UF6
Subsidiaries
JSC SPb IZOTOP
Subsidiaries abroad
Other suppliers
of uranium feed
U3O8 /
natural UF6
United Uranium
Enterprises
U3O8
JSC
ARMZ
Mining
enterprises
(U3O8
production)
TENEX
Enriched UF6
• freight forwarding services
• isotope products deliveries
• deliveries of medical equipment
and instruments
freight
forwarding
services
Enriched UF6
U3O8
Dividends
Credits / loans,
interest rates
U3O8 / natural UF6
U3O8
Uranium
One
Holding
JSC Atomenergoprom
G4-13
Within its jurisdiction, the Company
actively participates in ROSATOM’s
work to improve the existing legislation
and legal basis of international
cooperation, primarily on issues that
relate to foreign economic interests
of the industry.
In the reporting year, as a result of joint
work with ROSATOM concerning
the formation of the legal regulatory
basis needed for foreign deliveries
of HEU to make fuel for research nuclear
reactors, on the 27.01.2014, the Decree
of the President of the Russian Federation
No. 37 “On Amendment of the Decree
of the President of the Russian Federation
No. 556 of 27.04.1997 “On Restructuring
of the Nuclear Power and Industry Complex
of the Russian Federation” was adopted.
In the reporting year, TENEX traditionally
rendered expert support to ROSATOM
related to working out the interagencyconcerted position of Russia on issues
within the jurisdiction of the Nuclear
Suppliers Group,13 including the process
of updating existing export control lists.
Specialists of the Company are regularly
involved as experts in the development
of sectoral and professional standards.
The draft professional standard
“Specialist of Internal Control (Internal
Controller)”14 approved by the National
Council under the President of the Russian
Federation for Professional Qualifications
(Record of Meeting No. 7 of 17.12.2014)
was developed with their active
participation.
In September 2014, the RussianGerman intergovernmental agreement
for cooperation in operation of research
reactors was signed. The agreement
was prepared with participation of
the Company’s specialists.
freight
forwarding
services
JSC
TVEL
Conversion
and enrichment
enterprises
of JSC TVEL
Commercial Banks
Mining
enterprises
(U3O8
production)
13 The Nuclear Suppliers Group that unites 48 states is an international mechanism
of nuclear export control.
14 It was sent to the Ministry of Justice of the Russian Federation
for coordination, and subsequent approval by the Ministry of Labour
and Social Protection of the Russian Federation.
33
*
2.Strategy
STRATEGIC
VISION
*Graphic drawing of the rouble as a sign
represents a Cyrillic capital letter “P” added
with a horizontal arrow in its lower part;
two parallel lines symbolize translational
movement to the intended targets.
2.1. Strategic and Mid-term Planning
2.2. Factors Influencing Formation of Business Strategy
2.3. Key Tools of Achievement of Strategic Goals
Well thought-out
forward motion
36
2.1
TENEX Annual Report
2014
Strategic and Mid-term
Planning
The strategy of ROSATOM until 2030
(hereinafter referred to as “the Strategy”)
was adopted in 2010 and updated in 2014;
it acts as the fundamental document
in the field of strategic planning, which
sets a generic vector of development
for the Russian nuclear sector over the long
term.
The Strategy defines a list of the most
important – in terms of achievement
of the ROSATOM’s purpose-oriented
positioning as a global technological
leadership – strategic goals,
the implementation of which within
the next 20 years should result
in a significant growth of its main
financial and economic indicators.
Build-up the business strategy, TENEX
is primarily guided by said Strategy,
accounting for strategies of Fuel and Mining
Divisions, as well as updated regional action
2.2
Strategy
plans developing by the Development
and International Business unit
of ROSATOM relating to large geographic
segments of the world market.
• the possibility of offering customers
competitive prices and other attractive
commercial parameters of contracts;
• the flexibility of delivery terms, including
the use of foreign material accounts;
Changes to the market and foreignpolicy situation in 2014 have made
it necessary to update TENEX’s strategic
plans: the mid-term goals and objectives
of the Company have been specified,
financial and economic landmarks have
been updated and the array of the market
tools in use has been broadened, although
the general course of activity has remained
unchanged.
• the readiness to take, within
due reasonable limits, market
and currency risks;
• the capability to ensure the minimum
time from receipt of feed (in places
convenient for the client) to delivery
of the end product;
According to the instructions of ROSATOM
and aiming at operationalization of
the strategy, in the reporting year, TENEX
worked out a mid-term business plan
of the Company for 2015–2019, which
considers several possible scenarios
of the market situation development.
Factors Influencing Formation
of the Business Strategy
• guarantees of uninterruptible supplies
owing to warehouse stock;
• the possibility of offering NFC products
and services both as separate
components and as package supplies;
2.3
When updating the business strategy,
the Company undoubtedly considers external
factors such as:
• the dynamic nuclear power development
in the APR countries geographically close
to Russia;
• the growing interest of utilities
in the packaged procurement
of the front-end and back-end of NFC;
• the completion of the technological
re-equipment in the world’s enrichment
industry.
Key Tools for Achieving
Strategic Goals
Achieving the strategic goals by the Company
requires continuous improvement of marketing
and sales tools, including:
The Company forms its business strategy
proceeding from a positive assessment
of long-term prospects of world nuclear
power development. According to the
forecasts of the authoritative international
organisations (IAEA, World Nuclear
Association), the growth of installed nuclear
capacities in the world will exceed 50%
by the end of the next decade.
The business strategy of the Company is designed
in consideration of the following most important
factors that ensure competitiveness of
the Company’s market offer:
This expected growth is based on objective
factors, including a higher construction
rate of NPPs and the building up of the
reactor fleet in a number of countries that
already have nuclear power, as well as the
emergence of countries with an energy
policy providing for nuclear sources in their
energy balance.
• the longstanding and impeccable
history of deliveries of uranium
products to dozens of customers
in different regions of the world;
• the development of the risk management
system (Section 4.2.);
• effective sales networks
in the key target markets;
• the improvement of the corporate
management systems (Section 4.6.).
• access to the highly efficient
production base: four large enrichment
plants in Russia that use gas centrifuge
technology;
• the availability of the modern
international legal framework
for cooperation in the field
of the peaceful use of atomic energy.
• the development of a system
of the material accounts abroad
(Section 3.1.);
• the improvement of the transportation
and logistics infrastructure (Section 3.2.);
• the expenses management (Section 4.4.),
The use of these tools envisages:
• taking into account of regional markets
and the priorities of customers;
• accent on direct relations with utilities
and the signing of long-term contracts
(for ten years and more);
• the promotion of maximum added value
products in the market.
The strategic positioning of TENEX
and ROSATOM in the global market
is facilitated by their membership
in the authoritative international
and regional specialised associations, such
as WNA, NEI, JAIF, KAIF, WNFM, and WNTI
(Appendix No. 6).
37
Σ
STABLE
RESULT
*
3.Outcomes of the Core
Business
*The sign of sum is the Greek letter “sigma”.
A special character to denote a sum was first
introduced by Leonhard Euler in 1755.
The sum Σ is the RESULT of addition of values
(figures, functions, vectors, matrices etc.).
The Latin word “summa” is translated
as “the main point”, “essence”, “sum”.
3.1. Contracting and Sales
3.2. Transportation and Logistics
3.3. Financial and Economic Results
Stable work – stable
result
40
3.1
G4-8
TENEX Annual Report
2014
Outcomes of the Core Business
Contracting
and Sales
In spite of the unfavourable market
conditions and aggravated political
and economic situation for Russia in 2014
due to events in Ukraine that especially
impacted contracting US customers,
the Company signed 19 new contracts
for uranium product deliveries and three
addendums to the existing contracts
North America
for an increase in deliveries. The total
cost of the signed deals was about
US $0.8 billion.
According to the results of the reporting
year, the long-term export contract
portfolio in comparable prices
was approximately US $23 billion.
G4-9
As of December 2014, the total limits
for uranium product deliveries
to the US market, as agreed upon under
the Suspension Agreement Amendment
for 2014–2020, were covered by 85%.
The export portfolio dynamic15 in three-year
hindsight
Increment in long-term export contracts portfolio
against 2011, %
In the reporting year, the Company
traditionally met all Contractual
Obligations in due time and on a full scale.
The evidence that the Company retains
a sound foothold in the global uranium
market is not only the solid long-term
order portfolio and absence of failures
in providing uranium enrichment
services to the considerable part
of needs of the western design reactors,
but also the signing of new material
account agreements with foreign
fabricators and converters.
In June 2014, TENEX signed its first such
Material Account Agreement with an
APR company, the South Korean nuclear
fuel fabricator KEPCO NF. The agreement
defined terms of physical deliveries
of the Russian enriched uranium to
the Republic of Korea and subsequent book
transfer operations with it. This would
optimise the interaction of the Company
with KEPCO NF, and raise the flexibility
in its work with the common customers.
The enriched uranium delivery by the book
transfer was carried out already to the South
Korean fuel fabricator in November of
the reporting year.
15 In the comparable prices.
2012
2013
2014
107%
112%
117%
Deliveries under 15 existing contracts
with utilities and TENAM Corp., as well
as under the contract with USEC Inc., were
made within schedule and on the full scale.
Over 70% of the total deliveries were made
In July 2014, a Material Account
Agreement was signed with ConverDyn,
one of the world’s largest suppliers
of natural uranium conversion services.
The European region is traditionally
the largest target market of TENEX. In 2014,
uranium products totalling over US $1
billion (about 48% of the total exports)
were delivered to customers in Belgium,
Finland, France, Germany, Spain, Sweden,
Switzerland and the United Kingdom. Some
13% of the total deliveries were by book
transfers at the fuel fabrication plants.
According to the results of the reporting year,
exports were about
US $2.2 billion.
Approximately 37% of the total deliveries
were made by book transfers.
The results of the key business activities
for the reporting period under review
by regions are given below.
as book transfers at the fuel fabrication
plants (Westinghouse – Columbia, South
Carolina; GNF-A – Wilmington, North
Carolina; and AREVA NP – Richland,
Washington).
In 2014, part of the feed component
received by the Company from US utilities
under the uranium enrichment contracts
was sold. The feed component that
was unsold in the external market will
be returned to Russia in 2015 for further
use in the export programme.
The value of the uranium product delivered
to US customers in the reporting year
was about US $0.9 billion (nearly 41%
of the total exports).
Europe
Thereby TENEX has under its belt material
account agreements with all of the world’s
key nuclear fuel fabricators (three
companies in the USA and four companies
in Europe) and conversion plants
(in the USA and Canada).
In 2014, in the framework of its core
business, TENEX was not subjected
to fines for non-observance of legislative
and regulatory requirements related
to provision and use of the products.
In complex political conditions both
packaged EUP and uranium conversion
and enrichment services were additionally
contracted in this region: six new contracts
with US companies, including the selling
transaction16 of the inventory stored
at the fuel fabricator GNF-A, were secured.
As of the end of the reporting year, TENEX’s
export portfolio included long-term and midterm contracts with ten European utilities
for Russian NFC products and service
delivery until 2025. In 2014, three
new contracts were signed for the delivery
of uranium products and one addendum
to an existing contract was made.
Asia-Pacific Region, Middle East and Africa
G4-PR9
G4-PR4
Customers from the APR and Middle
East were delivered of products totalling
roughly US $0.3 billion (approximately 11%
of the total exports); of these, over 17% were
under the terms of book transfer.
for the restart of Kyushu Electric’s
Sendai-1 and Sendai-2 reactors gives
grounds for optimistic forecasts regarding
the resumption of nuclear generation
in Japan in 2015.
Retaining the relatively small
volume of deliveries is primarily
due to the termination of the operation
of all nuclear reactors in Japan. At the same
time, approval in 2014 by the national
regulator (Nuclear Regulation Authority)
In 2014, ten new contracts and
two addendums to the existing contracts
for raising uranium product delivery
volumes were signed with utilities
of APR countries.
16 With participation of TENAM Corp.
41
42
3.2
TENEX Annual Report
2014
Outcomes of the Core Business
Transportation
and Logistics
3.2.1. Diversification of Shipping Points
On the Russian side, the project
participants were TENEX subsidiaries:
JSC SPb IZOTOP and ТENEX-Korea
Co. Ltd., as well as JSC Concern ASPOLBaltic, SPb Emergency Technical Centre,
and a number of other entities.
Thus, the pilot phase of the project
was completed. Commencing in 2015,
the Far East transport corridor will
be used for regular commercial shipments
of the Russian nuclear industry’s hightechnology products to APR countries.
TENEX completed its trial of uranium
product shipments through the Russian
Far East (TLC “East” Project) under
the project of diversification of shipping
points. In 2014, three planned shipments
of enriched uranium designated as fuel
for South Korean and UAE NPPs were
made from Vostochny Seaport in Maritime
Territory, Russia, to the Republic of Korea.
TENEX carries out its activities
in the field of nuclear energy use related
to the handling of nuclear material
during their transportation under
Rostechnadzor’s licence No. GN-05401-2586, granted on 31.01.2012.
The Company focuses on minimising
the delivery time of products
to customer, the improvement
of delivery reliability, and transportation
cost reduction.
The near-term plans include trying
out import operations via Vostochny
Seaport, including with the aim to improve
reliability and reduce time for the delivery
of empty transportation equipment
for enriched uranium.
In October 2014, under the TLC “West”
Project, the plot of land for building
the interim storage facility (ISF) of 5,000 m2
was formalised by the signing of a land lease
contract with the Territorial Department
of Federal Agency for State Property
Management in the Leningrad Region.
The prepared project documentation
was submitted in order to obtain
a statement from FAA Glavgosexprtiza
of Russia in accordance with the established
procedure.
In 2015, the plan is to start developing
the necessary working documentation
for ISF to move to the storage construction
phase.
TENEX, with engaged foreign freight
forwarding companies (FFFCs) that had
all of the required permits for nuclear
material shipment, as well as licensed
sea carriers, successfully fulfilled the 2014
export-import deliveries programme.
In the reporting year, 46 EUP deliveries
were carried out under contracts with
FFFCs. This number included five merged
shipments of two batches each that saved
several hundred thousand US dollars.
The transhipment of the freight
at the terminal of the Vostochnaya
Stevedoring Company LLC, which
has a long history of arranging container
shipments and is the largest supplier
of these services in the Far East of Russia,
was carried out within the shortest
possible time in accordance with all safety
requirements.
In the reporting year, given the positive
experience in uranium product shipments
without intermediate storage at ISF via
Far East of Russia, work began to organise
a pilot shipment using the same scheme:
SSC’s company – Ust Luga Commercial
Seaport providing the transportation on flat
racks by rail.
43
44
TENEX Annual Report
2014
Sheremetyevo customs
3.2.2. Building up an Own Equipment Fleet
The Company has built up and effectively
used its own fleet of transportation
equipment, which, as of the end reporting
year, included 354 items of 30B containers
made by CIMC (PRC) and 344 items
of Columbiana Hi Tech LLC’s UX-30
overpacks.
In 2014, the share of use of 30B containers
for uranium product deliveries was 29%,
while that of UX-30 overpacks was 56%.
licence to FSTEC of Russia and the Ministry
of Justice of Russia.
In the reporting year, the Company
was granted 19 single licences for
the export/import of nuclear material
under the Company’s contracts.
According to the approved declaring
schedule, over 320 customs documents
were formalised in Sheremetyevo,
the Moscow Region, Yekaterinburg,
Krasnoyarsk, Baltic and Pulkovo customs,
a total that is up 20% from the same
indicator of 2013.
The 2015 plans include expanding the fleet
of 30B containers by 200 items.
Declaring regional customs
in 2014
10
30
8
Moscow Region customs
Yekaterinburg customs
120
Krasnoyarsk customs
140
The in-house fleet of 48Y containers
has also started to develop: 99 containers
made by CIMC were purchased in 2014
and further expansion of the in-house fleet
of such containers is planned in 2015.
The Company monitors Russian
and international certificates of the foreignmade containers to ensure that nuclear
Using the Company’s own transport
equipment has helped to minimise
the costs of leasing the equipment
from FFFC under contracts whereby
the Company is responsible for providing
transportation packaging.
3.2.3. Internal Programme of Export Control, Licensing and Customs
Support
In 2001, TENEX became one of the first
Russian companies to be granted a state
accreditation certificate for an organisation
that has set up an internal17 export control
programme. Given the impeccable
observance by the Company
of the requirements of the Russian
Federation legislation in the area
of export control, the validity period
of the accreditation has been prolonged
many times in accordance with
the procedure established by law.18
17 In the version of 21.07.2014 of the Federal Law No. 183-FL of 18.07.1999 “On Export
Control”, it is called “internal export control programme.”
Baltic customs
material is moved in strict compliance with
the national regulatory requirements.
By the directive of the Government
of the Russian Federation, TENEX
obtains general licences for the export
of uranium products for the accreditation
validity period that substantially shortens
the formalisation period for deliveries.
Under the existing general export licence,
deliveries of uranium products were made
to China, France, Germany, the Republic
of Korea, the United Kingdom and the USA.
The Company sends quarterly reports
on the implementation of the general
18 At the present time, until 2016.
Pulkovo customs
13
The customs clearance process
is managed with the use of the database,
which allows for real-time monitoring
of declaring the export/import freights
of the Company, as well as prompt control
over the observance of terms and due dates
prescribed by customs regulations
and procedures of temporary export/
import.
In 2014, the number of tracked
containers and overpacks owned
by the Company subject to cross
the customs border of the Customs
Union increased by 80 items in 2013
to a total of 598 items.
Temporary exported containers
and overpacks
Increase of 65%
600
Increase of 80,4%
400
200
0
2012
2013
2014
The TENEX General Director’s order
introduced the Interaction Procedure
for preparing information for ROSATOM
in the framework of the information
exchange with the Federal Customs Service.
45
46
3.3
TENEX Annual Report
2014
47
Financial and Economic
Results
The volume of uranium product
export expressed in monetary terms
is one of the key financial and economic
performance indicators of the Company.
In the reporting year, total exports slipped
by 29% due to the completion of deliveries
under the HEU Agreement in 2013.
The volume of commercial export
of uranium production of the Company
in 2014 grew by 5.8% as compared to 2013,
namely at the expense of building up sales
in the US market, and amounted to ~ US $2.2 million.
The table below gives data on export dynamics
in three-year hindsight.
US $ mln/%
Indicator
2012
2013
2014
2014 against
2013 in %
Export, total,
including
3,219
3,046
2,163
71.0
HEU Agreement
1,033
1,002
0
–
commercial deliveries of uranium products
2,186
2,044
2,163
105.8
3.3.1. Main Financial Indicators
The main income of the Company in 2014
was received from the sales of uranium
production that comprised 99,8% of total
revenue. In the currency structure of
revenue, contracts in USD and EUR are
prevailing, share of other currencies is
immaterial.
The revenue from uranium product sales
in 2014 compared to 2013 grew by 41.2%
and was cumulatively influenced by the impact
of the following factors:
• devaluation of rouble (average weighted
rate of US $ by actual shipments of 2013
was RUR 31.9/US $1, in 2014 – RUR 41.8/
US $1);
• growth of sales volume (particularly
in the USA, as well as additional option
and spot sales).
The main constituent of other proceeds
is the revenue from deliveries of foreignmade equipment to Russian customers.
The growth of sea freight costs due to
an increase in deliveries to the USA caused
a 2.8% growth of the commercial expenses
as compared to 2013.
The twofold growth of EBITDA in 2014,
as compared to 2013, was mainly
due to the higher sales volume and
the positive impact of the rouble
devaluation on the currency structure
of the revenues and expenditures
of the Company.
40,000
30,000
20,000
15,553
15,580
31,733
11,290
9,315
11,947
2012
2013
10,000
0
EBITDA, RUR mln
2014
Net profit, RUR mln
At the same time, the positive influence
of said factors on the Company’s
net profit was offset by the growth
of an adverse balance on other revenues
and expenditures, which was mainly caused
by the re-evaluation of the Company’s
currency portfolio in roubles.19 As a result,
the net profit growth was 28.2%.
The table below shows the main financial
indicators in a three-year hindsight.
In 2014, the prime cost grew by 25% compared
to 2013 due to the following factors:
• changes in the physical volumes
of purchased products, given the export
programme update (growing
expenditures of higher sales volume)
• growth of prices for conversion
and enrichment services
• growth of feed prices due to changes
in currency rates
The reduction of other expenditures
within the cost in 2014 compared to 2013,
was mainly caused by the reduction
of insurance expenditures included
to the cost as a result of the optimisation
of insurance tariffs in the insurance
programme of the Company for 2014.
RUR mln/%
Indicator
2012
2013
2014
2014 against
2013 in %
Revenue, total,
including:
revenue from uranium product sales
other revenue
Cost of sales, total,
including:
cost related to the uranium business (expenses for uranium
feed, conversion and enrichment services)
other expenses within cost (cost of goods for resale,
insurance, delivery, storage of feed, etc.)
Gross profit
Selling expenses, total,
including:
insurance of EUP
delivery of EUP
other selling expenses (insurance of business risks, export
customs duties, storage of EUP, intermediary services, etc.)
Administrative expenses, total,
including:
HR expenses
expenses for maintenance of buildings, premises,
equipment, cars, communications, IT, etc.
consulting and other services (excluding general
corporate expenses)
69,578
66,159
93,397
141.2
19 For information: In 2014, the rouble exchange rate to the US dollar, as
set by the Central Bank of Russia, decreased by 72.3%.
69,539 65,948 93,216 141.3
39
211
181
85.8
–50,411 –47,067 –58,837 125.0
49,327
46,431
58,288
125.5
1,084
636
549
86.3
19,168
–1,772
19,091
–1,581
34,560
–1,625
181.0
102.8
476
378
918
331
417
833
212
588
825
64.0
141.0
99.0
–1,848
–1,853
–1,838
99.2
1,336
309
1,326
288
1,346
294
101.5
102.1
203
239
198
82.8
G4-9
48
TENEX Annual Report
2014
2014 against
2013 in %
Indicator
2012
2013
2014
Results from operating activities
Other income and expenses
Interest expenses
15,547
–128
–926
15,657
–3,194
–804
31,098 198.6
–15,593 488.2
–889
110.6
Profit before income tax
14,494
11,660
14,616
125.4
Income tax, including DTA and DTL
–3,197
–2,674
–3,141
117.5
Other payments from profit
–6
330*
471*
142.7
Net profit
11,290
9,315
11,947
128.2
For information: The earnings before interest, taxes,
depreciation, and amortisation (EBITDA)
15,553
15,580
31,733
203.7
Including the redistribution of the profit tax within
the consolidated taxpayer group (see Section “Finance
Management”).
In the reporting year, the Company did
not receive financial assistance from
the State.
3.3.2. Key Financial Standing Indicators
On the whole, in 2014, no substantial
changes in the financial stability indicators
occurred, as compared to 2013.
Profitability, liquidity and financial stability
indicators dynamics are under the control
of the Company and ROSATOM.
The growth of return on assets and return
on equity, in 2014 was due to the growth
of the net profit with a relatively stable
average annual asset value and, equity
as compared to 2013.
1.60
1.49
1.35
1.20
0.40
0.76
0.80
0.81
2012
2013
2014
0
G4-EC4
Financial stability indicators
Indicator
2012
2013
2014
Debt-to-equity ratio*
2.22
2.42
2.54
Net Working Capital to Current Assets Ratio
(excluding long-term loans)**
0.12
0.14
0.15
Net assets at the year-end, RUR mln**
25,465
20,596
22,927
Assets at the year-end, RUR mln
76,805
84,042
73,241
The share of net assets in total assets, %
33.2
24.5
31.3
* Values of indicators calculated on the annual average
basis
** The indicator was calculated as per the Procedure
for Pricing of Net Assets of Joint Stock Companies
approved by the Ministry of Finance of the Russian
Federation No. 84n of 28.08.2014.
100,000
2012
2013
2014
3.0
Gross profit margin
28
29
37
2.5
Profit margin before interest, taxes, depreciation,
and amortisation (EBITDA)
22
24
34
2.0
Net profit margin
16
14
13
Return on assets*
15
12
15
50
40
54
Indicator
2012
2013
2014
Current ratio
1.49
1.35
1.28
Quick ratio
0.76
0.80
0.81
80,000
40,000
1.0
0.5
76,805
84,042
73,241
60,000
0.12
2012
Liquidity indicators*
* Values of indicators calculated on the annual average basis
2.22
2.42
2.54
1.5
0
The liquidity ratio maintained
by the Company is satisfactory.
Quick ratio
0.80
Indicator
Return on equity *
Current ratio
1.28
Profitability indices, %
* Values of indicators calculated on the annual average
basis.
49
0.14
0.15
20,000
25,465
20,596
22,927
2013
2014
0
2013
2014
2012
Debt-to-equity ratio
Net assets, RUR mln
Net Working Capital to Current Assets Ratio
Assets, RUR mln 50
TENEX Annual Report
2014
3.3.3. Dividends
In 2012–2014, the dividends, including
interim ones, were accrued and paid as
per the resolution of the Sole Shareholder,
JSC Atomenergoprom.
The dividends were paid as a cash dividend.
As of the 2014 year-end, the Company
had a planned debts for interim
3.3.4. Payments to Budgets and Extra-budgetary Funds
dividends for nine months of 2014,
to be paid to the shareholder, amounting
to RUR 1,851 million.20
At the time of this report, the Company’s
governing bodies had not made a decision
on paying dividends for 2014.
RUR mln/%
Indicator
2012
2013
2014
For information:
net profit for the period
11,290
9,315
4,051 **
11,290
9,284
4,051 **
Dividends accrued on the results for the reporting year *
amount
The Company is the largest payer of taxes
and duties. The table below contains
data on the accrued and paid taxes
to the budgets of all levels and extrabudgetary funds by TENEX throughout
2014.
thousand roubles
Indicator
Accrued
Paid
Taxes, total
including:
7,672
9,699
regional budget (Moscow), total
including:
7,672
8,082
income tax
0
0
property tax
7,672
8,082
0
1,617
federal budget, total
including:
income tax
100%
99.7%
100% **
Income tax within CTG (paid to the Responsible Participant,
JSC Atomenergoprom)
4,942
14,183
9,616
Extra-budgetary funds (insurance premiums)
dividends for the preceding year
2,942
9,290
5,566
interim dividends for the reporting year
2,000
3,719
4,051
dividends for 2007 ***
–
1,174
–
Dividends paid during the period,
including:
7,788
12,464
9,484
dividends for the preceding year
5,788
9,290
7,284
interim dividends for the reporting year
2,000
2,000
2,200
dividends for 2007 ***
–
1,174
–
share of net profit for the period
Dividends accrued during the period,
including:
* The data is given to compare the dividends and
net profit (factual accruals and payments are made
in different reporting periods, including in the year
that follows the reporting year) and reflect the dividend
policy of the Sole Shareholder, JSC Atomenergoprom.
** The data for nine months of 2014 (interim
dividends by the results of nine months of 2014, as
per the resolution of the Sole Shareholder, were paid
in December 2014 (RUR 2,200 million) and January
2015 (RUR 1,851 million)).
20 Fully paid in January 2015.
*** By the resolution of the Sole Shareholder,
the dividends were paid from the 2007 net profit, which
had been allocated for financing investments, but were
not used.
Since 2013, the Company has not been
party to the agreement concerning
the the creation consolidated taxpayer
group (CTG) aimed at paying the profit
tax in accordance with Federal
Law “On Amendment of the First
and Second Parts of the Tax Code
of the Russian Federation in Connection
to the Creation of the Consolidated
Taxpayer Group” No. 321-FL of 16.11.2011.
The CTG-participating organisations
unite to calculate and pay the profit tax,
considering the cumulative financial result
of their economic activities. The profit
tax is paid to the responsible participant
of CTG, i.e., JSC Atomenergoprom.
The CTG participants are the companies
within ROSATOM’s control.
0
1,617
3,161,481
3,177,889
168,878
165,091
In 2014, participation in CTG allowed
the Company to reduce payments
of the profit tax by RUR 458 million
in response to the outcomes
of the cumulative financial result
of the CTG participants’ economic
activities.
51
52
TENEX Annual Report
2014
3.3.5. Investments
TENEX invest activities are in line with
the Unified Sectoral Investment Policy
of ROSATOM and its entities.
The Investment Committee of the Company
is empowered to decide on the investment
planning, management of investment
projects, sub-programmes and financial
investments of the Company.
The investment programme is described
in the business plan of the Company.
The plan is updated annually with
the aim to integrate investment, midterm and strategic planning processes;
it is approved by the Strategic Board
of ROSATOM.
Management of the composition
and content of investment projects
and measures in the project portfolio
of the Company and its subsidiaries
is aimed at the secure implementation
of the investment programme with
the approved control parameters being
observed.
The integrated approach to investment
solutions assumes a comprehensive
analysis of financial, economic, technical,
organisational, environmental and other
aspects of each investment project,
the results of which are formalised as an
investment project certificate.
In 2014, the Company continued its work
to improve the investment activity
management system.
A technical and economic audit
of investment projects was carried
out to optimise investment volume.
Its outcomes revealed windows
of opportunities for investment expenditure
reduction.
A great deal of attention was paid
to improving the methodological
basis that regulates the processes
of investment management activities:
updated requirements for the generation
of financial and economic models
of investment projects in the framework
of the certification were introduced
along with the Unified Sectoral Policy
of Management of Capital Investments,
the new revision of the Unified Sectoral
Procedure for Planning and Reporting
on Capital Investment Projects, and Unified
Sectoral Methodological Guidance
for Preparation of Projects for Investment
Decision-making.
In the reporting year, the Information
System for Project Portfolio Management
(ISPPM) was commissioned for the pilot
commercial operation. The processes
of the project portfolio build-up
and analysis of the investment programme
implementation (ISPPM-Monitoring),
diary and network scheduling, control
of project implementation by milestones
and outcomes (ISPPM-Primavera)
have been automated to improve
the level of investment planning, as well
as control over the effective and targeted
use of investment resources.
to the transportation and logistics
complex development programme;
In 2014, the investments comprised financial
investments in the subsidiaries to develop
the sectoral transportation infrastructure
and capital investments to:
• enhance hardware and software
information protection (stage two); and • purchase 30B and 48Y containers
for uranium product shipments related
• upgrade the data processing centre
equipment.
Investments
RUR mln (VAT exclusive)
Indicator
2012
2013
2014
Investments, total
including:
939
105
136
main assets
54
70
111
non-tangible assets
0.4
4
0.2
long-term financial investments
(acquisition of shares, interest in companies)
885
31
25
53
EFFECTIVE
MANAGEMENT
OK
4.Performance
Management
4.1. Key Performance Indicators
4.2. Risk-management and Development of Compliance System
4.3. Finance Management
4.4. Cost Management
4.5. Procurement Management
4.6. Management Systems
4.7. Human Resources Management
4.8. Internal Control and Audit
4.9. Nuclear Material Control and Accounting
4.10. Economic Security and Anticorruption
*
*A key of control consoles of modern gadgets
used everywhere.
Allows the user to select the next operation
and confirm correctness of selection.
Fine tuning
56
4.1
TENEX Annual Report
2014
Key Performance
Indicators
A modern tool of performance
management – the key performance
indicators (KPI) system was implemented
at TENEX in 2009.
The basic principle of the KPI system
functioning is the decomposition
of ROSATOM’s strategic goals
to financial, economic, and production
performance indicators of organisation
and individual targets/projects of their
respective leaders over the course
of a year.
In the framework of cross-functional
sectoral projects realization and based
on the uniform methodology, ROSATOM
includes into the KPI report cards
of the heads of the functional arms
of the entities (economics and finance,
accounting, corporate legal activities, human
resources management, procurement,
information support, etc.) unified sectoral
function indicators.
Starting in 2013, the KPI was extended
to all employees of TENEX, its subsidiaries
in Russia, and the heads of its subsidiaries
abroad.
4.2
G4-2
Performance Management
In 2014, the KPI set by ROSATOM for TENEX
General Director were accomplished 100%
and more:
• adjusted free cash flow (AFCF),
RUR billion;
• proceeds in the global market,
USD billion;
• ten-year orders portfolio, USD billion;
• revenues from EUP sales (including fuel
assemblies, pellets) on the whole of NFC,
RUR billion;
• reduction of uranium-containing
inventory on the whole of t the front-end
of NFC, RUR billion;
• reduction of order fulfilment
and logistics time (in the framework
of implementation of the ROSATOM
Production Programme); and • fulfilment of key events of
new businesses (projects “Regenerate”,
“Promotion of Back-end Services”,
“Development of System of Material
Accounts”).
Risk Management
and Development of Compliance System
Since 2010, the Company has set up
and operated a risk management
system (RMS) that is harmonised with
the ROSATOM’s risk management
system21 The goals of the RMS are fixed
in the Company’s Standard “The Policy
and Basics of the Risk Management
Organisation and Methodology of TENEX”.
The Company’s RMS includes
the organisational, methodological,
and instrumental platforms based
on best practices; the periodic processes
of detection, prioritization, assessment,
and monitoring of risks, drawing out
and implementing measures to manage
• drafting the key risk management
programmes of the Company intended
to conform to the risk preparedness
boundaries set up by ROSATOM.
these risks, and the communication of riskrelated information.
In the reporting year, in the framework of
RMS development, work was done to solve
the following main tasks:
• increased provision of key business
processes (strategic planning, contracting
of uranium products and sales,
management of credit risk, protection
of assets) with RMS regulations
and methodological documents,
including risk analysis procedures;
21 Detailed information is given in the public annual reports of the Company for 2012 and 2013 posted on the website of the Company at:
http://www.tenex.ru/wps/wcm/connect/tenex/site/Disclosure_of_information/AnnualReports/.
Key risks of the Company, risk responses, and risk management
measures
Remaining long-term negative consequences
of the Fukushima-Daiichi NPP accident
aggravated the downward trend of uranium
enrichment price indicators (for details,
see Subsection 1.7.1.) and the volatility of price
indicators for NFC products and services in
the world market due to:
• uncertainty of restarting the Japanese
NPPs;
• revision of nuclear development
programmes by a number of countries;
• accumulation of substantial inventories;
• weakening of competitiveness of nuclear
power caused, on the one hand,
by the necessity of additional investments
in the safety of the operating NPPs
due to more stringent requirements
after the accident at Fukushima-Daiichi
NPP and, on the other hand, low prices
for hydrocarbon fuel that led to early
shutdowns of some operating units
and delays/abandonment of construction
of new NPP reactors.
Deterioration of the general political
and economic situation due to events
in Ukraine and the introduction
of sanctions against Russia by the USA
and EU in 2014 has led, particularly,
to an assessment by the risk management
of several utilities that the level of reliability
of Russian uranium product delivery
is insufficiently high, which could certainly
negatively affect the perspectives of growth
of the Company’s export portfolio.
In the meantime, many foreign partners
consider the imposition of sanctions
on Russian uranium products/companysuppliers or sanctions on the financial
sector that prevent payments for supplied
products unlikely.
Much more complex correlational
relationships between the risks of the market
environment has required more diligent
evaluation, in the course of the Company’s
strategy development, of values at risk (VaR),
of expected market share, sales volume,
proceeds, and free cash flow, in its strategy
elaborations.
Seeking an improvement of the assessment
methodology for these values at risk,
in 2014, work done jointly with NRNU
MEPhI was completed to format
the quantitative assessment model
of strategic market risks with the
use of the forecasting of demand, offer
and market prices, simulation of scenarios
of competitive activities over market
demand to determine values for market
share, sale and proceeds volumes at risk.
Results of the work allow to specify
the assumptions adopted when formulating
the Company’s business strategy
(Chapter II) and will be used in the next
cycle of strategic planning.
In the reporting year, work was done
to enhance operational efficiency through
the building up and application of inhouse methodologies for the estimation
of the fair insurance premium in insuring
of counterparties’ default (the risk
of the failure to meet their obligations
to pay for supplied uranium product)
and the risk of accidental destruction
or damage to the uranium product
in the process of manufacturing. Elaborated
methodologies were applied in the
evaluation of the initial maximum price
of insurance policies for 2015.
57
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TENEX Annual Report
2014
Regarding the management of key
operational risks, failures of business
processes through the performance
of concluded contracts are primary.
In the reporting year, the 1st stage
of the computer-based “Situation Risk
Prompt Response System” (SRPRS) was
put into operation as a measure to shift
from post-factum information processing
of such risks to proactive response before
a loss appears. This software pack displays
every document, event, and milestone
in retrospect of its handling and, when risks
emerge there is the possibility of sending
automatically or manually an “alarm” signal
to stimulate a prompt response to minimise
those risks.
In the reporting period, a practice
of the Company’s risk prioritisation through
inquiries of the risk owners22 was continued.
The inquiry objective is to create a list
of the 15 (Top-15 risks) most significant
risks out of the general register of identified
risks of the Company over three time
periods, i.e., in the coming year, mid-term,
and in the strategic planning horizon.
A relative risk value of the Top-15 measured
against the 2013 values is given on the “risk
radars” below. The risk radar on the left
(A) shows the relative significance of risks
in the short-term (2015), mid-term
(2016–2019), and strategic (until 2030)
time intervals. The risk radar on the right
(B) shows the risk level dynamics
as estimated in the IV quarter of 2014,
as compared to the estimates made
in the IV quarter of 2013 (for the purpose
of comparison, are shown the risks
estimated on the business planning horizon
are shown).
B. Change of risk significance following
the inquiry in 2014 as compared to 2013
Managerial decision risks
in relation to the Company
The Company partners’ business
9
process failure risks
8
7
The Company’s business process
6
failure risks
5
4
Investment risks
3
2
1
0
Liquidity risk
Competitive environment risks
Impossibility to
get required loans
Commodity risks
(price and volume)
Interest risk
Political risks
Regulatory risks
Currency risk
Planned deal cancellation risk
Market capacity change risk
Competitive environment risks
Interest risk
Commodity risks (price and volume)
Currency risk
Political risks
Macroeconomic risks
2013
Managerial decision risks
in relation to the Company
The Company partners’ business
9
Perception risk (“reputation risk”)
process failure risks
8
Investment risks
7
Resource supply risks
6
5
Tax risk
Planned deal cancellation risk
4
3
2
Credit risks
Market capacity change risk
1
0
Liquidity risk
Resource supply risks
Impossibility to
get required loans
2014
А. Significance of risks at different planning
horizons
Perception risk
(”reputation risk”)
Macroeconomic risks
In comparison with 2013, the most
considerable upward changes in the estimation
of significance have occurred with respect
to the following classes of risk:
• political risks due to the increased
uncertainty of future conditions
of the Company’s activities in the context
of international political and economic
situation development;
• reputation risks due to the aggravated
political and economic situation could
reduce, in spite of the Company’s
impeccable reputation in the past,
reduce the trust of customers in
the security of the Company’s deliveries
due to a threat of sanctions and higher
risks of trade constraints perceived
by them;
• risks of the impossibility of getting
required loans due to both the worsening
of the liquidity situation (especially
currency) in the Russian bank sector
and the growth of loan interest rates
in the Russian market and the growth
of uncertainty regarding the accessibility
of foreign loans if financial sectoral
sanctions are strengthened.
The greatest decreasing change
in the significance estimation from 2013 is seen
in terms of:
• risk of failure of business processes
because of the further development
of the quality management and supply
chain security systems in the Company,
as well as commissioning of 1st stage
of SRPRS;
Coming year
Mid-term (5 years)
Strategic horizon
22 Top and middle managers of the Company responsible for identification, initial assessment of the risks they are assigned to, as well as for development
and execution of measures to manage such risks, at the same time are owners of the Company’s business processes.
• macroeconomic risks because
of the worsened economic situation
in Russia as a result of the world energy
price drop and the sanction policies
of the USA and EU;
• resource supply risks due to the
diversification of feed purchase sources.
59
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TENEX Annual Report
2014
The VaR quantitative assessment
is carried out in the Company
in terms of certain financial and some
strategic risks that are caused by
the uncertainty (volatility) of future
market price indicators for natural
uranium, conversion and enrichment
services, macroeconomic parameters,
i.e., inflation indices, interest rates,
and some other market uncertainties.
The results of the VaR assessment made
in 2014 for a business-planning horizon
(2015–2019), with regard to risks that
are estimated quantitatively, show that
a relative level of factor of the currency
risk to proceeds and EBITDA is 40–50%
(Diagrams A and B below, correspondingly).
The remaining share falls with
the commodity price and volume risks,
as well as the risk of the Company’s inability
to implement strategic projects.
The VaR measure of risk was assessed
by various indicators, such as proceeds,
EBITDA and AFCF.
A. Proceeds at risk
B. EBITDA at risk
100%
80%
60%
40%
20%
0%
2015
2016
2017
Strategic projects
Commodity volume risk
(options)
2018
2019
2015
2016
Commodity price risk
(inflation in the USA and EU)
Commodity price risk
(conversion)
2017
2018
Civil liability for nuclear and radiation
damage
Mandatory insurance23
Risk of loss and damage of
the Company’s goods (both package
and packaging during transportation)
The Company takes this risk under all contracts to the uranium products
delivery point of customers as per its business practices. The ratio of this
risk value (a product of probability and potential loss) and the insurance
premium demonstrate the expediency of its insurance.
Risk of loss and damage to material
assets of the Company during
the production process
The Company uses its own feed while manufacturing the products
to be delivered at the industry enterprises.
In spite of the high level of production standards and low probability
of such risk, the Company has come to the conclusion that an extremely
high value of potential damage can entail a breach of continuity
and sustainable development of economic activity; in this connection,
the decision to insure this risk was made.
Credit risk relative to the partners
who are customers of the Company’s
products (the business risk), i.e.,
the probability of the Company’s
partners to improperly meet their cash
commitments to the Company
Since 2009, the Company has annually insured the credit risk
relative to the partners who are customers of the uranium products.
The Fukushima-Daiichi NPP events and strengthening macroeconomic
turbulence also raised its probability by negatively affecting the ability
of some partners of the Company to pay.
For insurance purposes, the Company estimates the probability
of inappropriate meeting by a partner of its cash commitments
by one delivery based on an analysis of the financial conditions
and qualitative characteristics of the partner’s business sustainability,
as well as by considering the credit ratings of the partner or its parent
company. The maximum insurance premium level that is acceptable
for the Company is calculated in compliance with the obtained estimation
of such probability, as well as risk cost.
The insurance companies are selected on a competitive basis through
bids out of those recommended by ROSATOM; their solvency is treated
as a weighty non-monetary criterion.
2019
Commodity price risk (SWU)
Commodity price risk (U3O8)
Currency risk
The most significant risks of the Company
(including from the aforementioned list
of Top-15) and methods of responses to them
are described in Appendix No. 7.
Risk Management and Insurance
TENEX uses insurance as a one of its
risk management measures consisted
in its transfer. Insurance is applied
by the Company for low-probability, poorly
managed risks, the consequences of which
may be significant for the Company,
as well as in cases stipulated by legislation.
The Company’s risks insured
in the reporting year
Insurance is chosen through competition
with preliminary justification of the riskto-insurance premium values, including
the influence of potential damage to the
continuity, stability and sustainable
development of the Company activity.
Development of the Compliance System
The compliance system is the Company’s
first line of defence against risks
arising in the process of its external
communications with governmental
bodies, including regulatory agencies,
as well as partners, as a result of nonobservance of the law and international
standards of doing business that
may lead to fines, reputational losses,
and consequent systemic difficulties
in the implementation of the Company’s
projects.
Exercise of the compliance function
consists in the continuous updating
of the local regulatory base in accordance
with the changing requirements
of national and applicable international
law, as well as revealing and eliminating
inconsistencies between TENEX’s
business practices and the requirements
of a recommendatory nature, customs,
and best business practices, which
can constrain the Company’s activities
or negatively affect its competitiveness.
23 As per the Unified Sectoral Methodological Guide on Organisation of Insurance of Civil Liability for Nuclear Damage introduced in the Company by order
of General Director No. 006/27-P of 29.01.2014.
61
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TENEX Annual Report
2014
Management of the first constituent
of the compliance function (compliance
with legal acts) implements within
the framework RMS.
To effectively manage the second
constituent of the compliance function
(compliance with the accepted routine
of business), an analysis of requirements
set forth by foreign partners and national
regulators to the Company and products
it delivers, an assessment of the Company’s
ability to meet these requirements
and consideration of this ability
in the decision-making on the project
implementation (close a deal) is carried
out on a regular basis.
As per the compliance function
development plan for 2013–2014,
an analysis of measures for
the management of compliance risks
was carried out in 2014.
4.3
The questioning of the risk owners resulted in:
• compiled lists of the Companysignificant fields of compliance,
compliance function regulators
and the nature of their activities, as well
as regulatory acts for compliance
function management;
• identified formats of corporate reporting,
lists of the Russian and foreign third
parties who assess the compliance
system or its separate elements, as well
as compliance functions, the fulfilment
of which is partially or fully computeraided;24
• analysed consequences
of implementation of the compliance
risks in the Company’s activities
and the probability of their emergence
in 2014 and on the horizon of 2017,
the necessity of amending25
the functionality of the structural
subdivisions in terms of compliance,
as well as the regulations of ROSATOM
in specific areas of compliance.
Finance
Management
The Company’s financial policy complies
with the requirements of financial policy,
corporate standards, and regulations
of ROSATOM, and is aimed at the timely
fulfilment of cash commitments owed
to creditors, raising the financial stability
of the Company, and the effective
use of financial resources.
The following main processes are regulated in
the Company to implement the financial policy:
• the procedure for purchasing financial
services, including competition-based
fund rising;
24 For example, whether an electronic declaration is filled out correctly before
submission to the customs is checked automatically by the special software
Avtokontrol; also, procurement reporting is partially automatised.
25 Not revealed.
• the procedure and criteria for selection
of partner-banks;
• the debt portfolio management;
• management of intra-group financing
and placement of free cash resources;
• carrying out operations to hedge
currency risks.
Financing of the Company’s activities
is largely achieved through loans.
The main volume of loans is attracted
in US dollars and euro.
US $166.6 million that constituted
the principal amount of debt on the longterm syndicated loan given by a group
of international banks headed by Deutsche
Bank AG in 2011.
In 2014, the TENEX credit portfolio
in roubles grew by 13% to reach RUB 39.1
billion at the year-end due to revaluation
due to depreciation of the rouble. In US
dollars, the credit portfolio volume slipped
by 36% over that period and totalled
US $694.7 million at the year-end, including
Under the syndicated loan terms,
the Company maintains the level
of financial covenants requested by
the lenders, whose factual values dynamics
are evidence of the Company’s financial
stability.
Financial covenants* under the syndicated loan
Indicator
Acceptable
value
31.12.2012 31.12.2013 31.12.2014
Debt/EBITDA
not more than 3
2.06
2.22
1.22
EBITDA/Interest cost ratio
not less than 3
15.04
19.4
32.38
Owner’s equity, RUR billion
not less than 15
25.5
20.6
22.9
* The covenants are calculated as per the loan agreement methodology.
In 2014, the Company provided a high
diversification of lenders and a lower cost
of loans, as compared to 2013, in spite of
the worsened situation in the corporate
loan market due to sanctions against Russia
imposed in the second half of the year.
As the average annual credit portfolio
in US dollars slipped by 2.8% against 2013,
in the reporting year, its average weighted
value dropped by 5.68% to reach 2.55%, with
the average effective interest on TENEX’s
loans being twice as low as the interest rates
on loans provided by the Russian banks
to non-financial organisations for the same
time period.26
The Company continuously improves
its mechanisms of financial control
and budget planning. To ensure reasonable
assurance of external and internal users
in the credibility of financial reports,
TENEX applies the system of internal
controls of financial reporting (hereinafter
referred to as SIC FR). The internal control
of accounting and accounting (financial)
reporting is carried out in accordance with
26 Based on the Bank of Russia statistics.
this system. A set of measures to improve
SIC FR, including the development
and introduction of control procedures
regarding new accounting processes,
as well as performance assessment
of control procedures by key processes,
is done in the framework of the existing
SIC FR regulations.
Being part of the overall budget process
of ROSATOM, the Company’s budget
processes are designed in accordance
with sectoral planning and budgeting
regulations and standards, including
the planning methodology, budget
reporting, and duration of measures.
63
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TENEX Annual Report
2014
The budget process is one
of the key elements of the Company
and its subsidiaries’ activity management
system, which allows for the correlation
of operational results with mid-term
and strategic financial plans.
In the Company, there is the permanent
Budget Committee, which reviews
and makes decisions on the annual budgets
and mid-term plans of the Company
and its subsidiaries. The Company’s budgets
are reviewed by the Budget Committee
of ROSATOM and approved by the Board
of Directors.
4.4
4.5
TENEX’s budget control system not only
allows control over the targeted use of
its funds, but also operatively assesses
how changing conditions of business
dealing affect the Company’s performance,
which, in turn, ensures the timely
development and implementation
of measures needed to achieve the pre-set
target levels for the financial indicators.
The competitive procurement procedures are
run by TENEX on three Russian electronic trading
platforms:
• Fabrikant: http://www.fabrikant.ru/;
• Auction Tender House (AKD) http://
www.a-k-d.ru/;
• Uniform Electronic Trading Platform
(Roseltorg) https://www.roseltorg.ru/.
In the reporting year, the total procurement
of TENEX was over RUR 3.4 billion.
The substantial difference in the 2014
procurement from the similar 2013
indicator (RUR 34.4 billion) was caused by
the change in the calculation methodology
for the indicator: apart from product
purchases from sectoral manufacturing
plants, which are the sole suppliers in line
with the “List of Special Goods, Works
and Services for Nuclear Industry Needs”,
valid under USPS, when purchasing of
financial services there are considered
in APP according to para. 23.6.2 of USPS
as a planned value not the total amounts
of attracted loans but only the sums
of expenses for acquiring and servicing
them i.e. credit interest.
Cost
Management
Since 2014, TENEX has implemented
the Cost Management Programme
(hereinafter the Programme).
The Programme’s goal is the systemic
optimisation of business and management
processes by revealing potential additional
reserves in cost reduction.
The priority cost reduction areas
are transportation infrastructure
and transportation services, financial
activities, administrative-economic
activities, and the management
of subsidiary companies. New areas of cost
reduction are assumed to emerge.
The Programme that covers 2014–2019
includes measures that do not require
massive investments, while ensuring
a substantial economic effect, the total
amount of which is estimated at RUR 2.3
billion.
The Programme implementation and,
as a consequence, improvement in efficiency
of managerial and business processes
is viewed as one of the tools that ensures
the Company’s competitiveness.
4.6
Procurement
Management
TENEX procurement activity
is in accordance with the Federal
Law No. 223-FL of 18.07.2011
“On Procurement of Goods, Works
and Services by Certain Types of Legal
Entities” and the Unified Sectoral
Procurement Standard (hereinafter referred
to as USPS).
Economy of the budget funds
is one of the most important criteria
for the assessment of procurement
To improve the transparency
of procurement for potential Russian
and foreign suppliers, the Annual
Procurement Programme of the Company
(hereinafter referred to as APP) is posted
on the official governmental website
http://zakupki.gov.ru/ and sectoral website
www.zakupki.rosatom.ru/.
efficiency. In 2014, the Company to achieve
a saving rate of RUR 90.3 million when
conducting procurement procedures.
The relative decrease in procurement
efficiency compared to the 2012–2013
level is mainly due to the strengthening
of controls over the initial maximum price
calculations in 2014, including announcing
the competitive procurement procedures
with their prices corresponding to
the minimum market levels and, in cases
where the prices are restrained by budget
limits, below the market levels.
The average value of the competitive
procurement economic efficiency
of the Company was 3.5%.
40% of all procurements were carried
out with an efficiency of over 10%.
The maximum value of this indicator
was 80% in 2014.
All procurement KPIs established
by ROSATOM were fulfilled by TENEX, and
the indicator “Share of Open Procurement
Procedures” exceeded the upper level (97%)
and, more precisely, was 98.53%.
In the reporting period, no claims
concerning violation of procedures
of tender were filed.
Management
Systems
Introduction, certification
and development of the management
systems complying with international
requirements and standards create
an opportunity for further business
expansion while ensuring the required
level of security and safety of product
deliveries.
65
G4-DMA
TENEX has implemented and continuously
improved the corporate management
systems that were certified according
to the standards DIN EN ISO 9001:2008 –
the quality management system
(QMS), DIN EN ISO 14001:2009 –
the environmental management system
(EMS), and ISO 28000:2007 – the supply
chain security management system
(SCSMS).
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TENEX Annual Report
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67
Since most European utilities conduct a corporate social
responsibility policy, which obliges them to cooperate only
with suppliers who act in observance of certain international
standards (DIN EN ISO 9001:2008, DIN EN ISO 14001:2009,
etc.), the Company not only fully meets these requirements,
but demands the same of its suppliers-providers of NFC goods
and services.
In the reporting year, TENEX continued the meetings with
European utilities to inform the customers on the state
and development of quality management system and
the environmental management system in the Company
and ROSATOM.
Audits are carried out along with
the monitoring of the conformance
to the stated international standards
of export-import NFC product delivery
management business processes,
G4-PR4
including contracting, sales planning
programme and its resources, customs
clearance and licensing, transportation
and warehouse logistics, and sales of
the products.
In December 2014, the Company received an audit
of the integrated management system (second recertification
audit) for compliance with requirements of the standards
EN ISO 9001:2008 and EN ISO 14001:2004/DIN EN
ISO 14001:2009. This audit resulted in the prolongation
of validity of certificates27 No. TIC 15 100 86053
and No. TIC 15 104 10709 until the end of 2017.
G4-DMA
In the reporting year, the certification
and monitoring audits revealed fewer issues
as compared to the preceding periods, as shown
in the chart below:
In the framework of the certified management
systems, the monitoring is carried out through:
• compliance with the Russian and foreign
legislative and regulatory requirements;
• environmental aspects and risks, as well
as risks in the supply chain;
• nuclear and radiation safety of shipments;
• other aspects and parameters.
• degree of the Company’s customer
satisfaction;
In 2014, the certified management systems
cost RUR 465,600, including RUR 163,300
for EMS.
15
SCSMS
12
EMS
9
QMS
4.6.1. Quality Management
The QMS of TENEX – the basis
of the corporate management system –
has been certified by the German
Certification Body TÜV THÜRINGEN
in 2008 as being compliant with
requirements of the international
standard ISO 9001:2000 in organisation
and execution of export-import operations
with NFC products.
6
3
0
2008
2009
2010
2011
In 2014, one of the European customers
of the Company carried out a documentary
audit of the certified management systems;
it resulted in a positive statement, since
non-compliances were not revealed.
2012
2013
2014
G4-DMA
An annual questionnaire poll
of foreign customer-companies is held
in the framework of QMS to determine
27 Valid since 02.02.2015.
the degree of customer satisfaction,
which is a key indicator of the Company’s
performance.
As per the inquiry held in the reporting
year, (29 questionnaires were processed),
the overall Company’s customer satisfaction
index was 100%, which corresponded
to the set quality targets for this indicator
for 2014 (not less than 95%).
G4-EN31
68
G4-PR5
TENEX Annual Report
2014
4.6.3. Supply Chain Security Management
Dynamics of changes in overall satisfaction index
in 2010–2014
In 2012, for the first time in Russian
nuclear industry, the Company
was granted by the TÜV THÜRINGEN
e.V a certificate of compliance
of its SCSMS to the International
Standard ISO 28000:2007.
100 100 100 100
100%
98%
97.5
96%
The main objective of SCSMS is
the improvement of the reliability
and security of product deliveries
through the creation of a system
of risk management regarding
the security of export-import supplies
of NFC products in the Company.
94%
2010
2011
2012
2013
2014
Satisfaction Index (factual)
The SCSMS certification signifies
an international acknowledgement
of the Company’s competencies in security
management at all stages of the logistics
Target Satisfaction Index
Dynamics of distribution of feedback
questionnaires in 2010–2014
20
18
2010
16
2011
14
2012
12
10
2013
8
2014
4.7
G4-DMA
6
4
2
0
Europe
the Americas
Asia and Africa
G4-LA4
4.6.2. Environmental Management
G4-PR4
In 2010, TENEX was granted a certificate
of EMS compliance with the requirements
of the international standard DIN EN
ISO 14001:2009, which evidenced that
the Company was using an integrated
approach to solving environmental safety
issues (ensuring nuclear and radiation
safety during transportation, compliance
with Russian and international legal
and regulatory requirements, managing
69
environmental issues, etc.), as well
as confirming the implementation
of a mechanism for the analysis
and assessment of environmental aspects.
G4-LA2
In the reporting year, an EMS the second
certification audit regarding compliance
with requirements of the standard DIN EN
ISO 14001:2009 was carried out.
In 2014, the second monitoring audit
was carried out regarding the SCSMS,
which resulted in three issues being raised
and no non-compliances reported.
Sections of the supply chains vulnerable
to significant threats and risks were
identified for the development
and improvement of the SCSMS.
Furthermore, measures were worked
out to reduce supply chain risks
and consequently enhance the reliability
of contractual obligations performance
towards customers.
Human Resources
Management
Being guided by the legislation
of the Russian Federation, the Agreement
of the All-Russia Employers’ Organisation
“Union of Employers of Nuclear Industry,
Power and Science of Russia”, sectoral
and local regulations, the Company observes
labour relationship norms in the area
of remuneration, labour conditions
and protection, work and rest schedules,
employment, social security, benefits,
and compensation for employees.28
The Company notifies employees about
upcoming material changes in the regulation
of social and labour relations two months
prior to their effect.
The Provisions on Social Benefits
and Incentives of TENEX Employees
due to Awarding establishes a unified
procedure of rendering financial support,
as well as types, sizes, and rendering terms
of such support, additional payment for sick
leave, and benefits for employees if they
are given state awards from the Russian
Federation.
28 Collective Bargaining Agreement in TENEX is not concluded.
G4-11
supply chain of nuclear products, which
is an important element in increasing
the Company’s competitiveness
in the world market.
The Provisions covers all employees
who have signed labour contracts with
the Company, excluding those in the initial
trial period or in secondary employment
as well as those contracted for up to one year.
Priority areas of the Company’s activities
in human resources management in 2014 were
(for details, see Subsection 4.7.3.):
• the updating of the professional
competencies model and shaping their
multilevel development system;
• the selection of key managers/employees
and forming the modular programme
of their managerial competences
and personal effectiveness development;
• the preparing and promoting managers/
employees in the sectoral personnel
reserve
In the reporting year, there were no claims
for labour relations practices.
G4-LA16
70
TENEX Annual Report
2014
4.7.1. Description of Personnel
The highly skilled personnel of TENEX,
whose efficient work has ensured
the successful achievement of performance
targets over many years, has been
and remains the key strategic resource
and core value of the Company.
Education level of the personnel
Number of employees with academic 19
degree
5.2
Number of employees with MBA
3.6
More than 90% of the Company’s employees
have core education, including in foreign
economic activities, logistics, finance, law,
and human resources management.
G4-LA11
The results of the regular annual appraisal
RECORD (given in the table below) in 2014
confirmed the high performance level
of all employees of TENEX.
Distribution of final evaluations employees,
%
А Exceptionally high level of efficiency
3
В
High level of efficiency
20
С Standard level of efficiency
75
D Below standard level of efficiency
2
E
0
Unsatisfactory level of efficiency
19
including:
persons %
G4-DMA
Badge of Merit for the Nuclear Industry 3rd
Class
2
Certificate of Honour
9
Letter of Gratitude
8
Awards and commendations from TENEX,
in total
Number of employees
2012
2013
2014
Staff number, persons
367
368
362
Average staff number, persons
339
340
326
Actual payroll staff number, persons
365
371
361
Newly hired, persons
47
42
29
Share* of newly hired, %
13
11
8
G4-LA1
* Of the Actual payroll number.
G4-10
44
including:
Certificate of Honour
18
Letter of Gratitude
26
Number of employees
As a result of the optimisation carried
out by ROSATOM’s decision, the Company’s
staff number decreased by 1.6%
and consisted of 362 persons as of the
end of 2014.
The average staff number decreased
as compared to 2013 primarily
due to the release of employees after
completion of the contract for technical
assistance in building of the 4th stage
of the GCP in China and consisted of 326 persons.
The actual payroll staff number
decreased29 by 2.7% as compared
to 2013 and was composed of 361
persons who are employees of over
40 structural subdivisions of the Company
at the department/unit level.
29 At the expense of ten persons dismissed from 01.01.2014.
The table below shows data on changes
in the personnel number of the Company
in three-year hindsight.
In 2014, the Company’s employees were given
ROSATOM’s and TENEX’s awards for striking
results, as well as for productive and efficient
work:
Awards and commendations from ROSATOM,
in total
13
71
All employees of TENEX (361 persons)
are regular and full-time employees.
As of the end of 2014, of the 361 employees
(actual payroll number) of the Company,
there were 39.9% (144 persons) men
and 60.1% (217 persons) women. The share
of employees who had worked more than
five years in the Company is 65%.
persons
%
29
8
Women
17
7.8
Men
12
8.3
under 30 years old
9
17
2012 2013 2014
30–50 years old
17
6.8
349
over 50 years old
3
5.2
Actual payroll staff number by the type
of employment contract and gender*, persons
G4-9
Employed under openend contracts,
total of them:
women
–
348
–
men
Employed under
terminal contracts,
total of them:
336
199
137
16
23
Newly hired, total
of them:
of them in the age of:
Information on the staff turnover
in the reporting year by gender and
age is given in the table below.
25
Staff turnover by gender and age groups
women
–
–
18
men
–
–
7
* Released for first time.
Number and share of newly hired in 2014
by gender and age
G4-LA1
persons
%
29
8
Women
18
8.3
men
11
7.6
under 30 years old
4
7.5
30–50 years old
20
8
over 50 years old
5
8.6
Discharged, total
30
of them:
of them in the age of:
30 Of them, 10 persons resigned (2.8%)
72
TENEX Annual Report
2014
In the reporting period,
had the right to go on parental leave,
consisting of 17 women and 6 men31.
G4-LA6
G4-DMA
The table below shows the data on the personnel
movements due to maternity leave and
the parental leave in three-year hindsight.
According to the Provisions for Labour
Remuneration and Incentive of TENEX’s
Employees, an employee’s wage
consists of a fixed official salary,
an integrated incentive weighting
set up according to the level of qualification
and performance, and an annual bonus
dependent on meeting the established KPIs.
In 2014, the total wage fund amounted to 2012
2013
2014
Left on maternity leave and paternity leave, persons
12
8
17
Returned after parental leave, persons
11
7
9
Resigned after return from parental leave, persons
1
1
4
Share of those who remained with the Company after
maternity leave (after 12 months expired32), persons
–
10
6
Return ratio,33 %
90.91
85.7
55.5
Retention ratio,34 %
–
–
85.7
RUR 1.14 billion;
the overall personnel expenses were RUR 1.16 billion.
The absentee rate due to incapability
to work35 in 2014 was 1.8% (women – 2.3%;
men – 1.1%).
The minimum wage level of TENEX
employees in the reporting year was
RUR 50,000, which exceeds the minimum
wage level in Moscow37 by 3.6 times.
TENEX observes the principle of gender
equality and non-discrimination; the basic
salary for men and women within the same
grade are equal.
4.7.3. Recruitment, Training and Advancement of Personnel
Recruitment
Men
Women
In the recruitment, advancement
and assessment of the personnel,
the Company uses the professional
competency model (PCM), which
was developed and introduced by TENEX
in 2010.
Average age of employees, years
2012
2013
2014
39.7
60.3
39.6
60.4
39.9
60.1
Personnel by age groups, %
2012
2013
2014
under 30 years old
29.9
24
14.7
30–50 years old
56.2
61
69.2
over 50 years old 14.0
15
16.1
The share of employees under 35 years
old practically remained at the level of 2013
and was 45.7%.
2012
2013
2014
Managers36
44
44
44
Specialists
35
36
37
Specialists are recruited on a competitive
basis after an interview and testing
procedure.
Main categories of the personnel by gender and
age groups, %
Managers Specialists
Men
64.3
32.5
Women
35.7
67.5
The main screening criterion
is a candidate’s conformance to the position
requirements, which is determined with the
use of professional competency models.
G4-LA12
In the age of:
under 30 years old
0
19.1
30–50 years old
70.2
69.0
over 50 years old
29.8
11.9
31 No men used the right for parental leave
G4-DMA
32 Released for the first time.
33 Number of those who returned after parental leave to those hwo had to return.
34 Number of those who remained with the Company after 12 months following
parental leave to those returned after parental leave in the preceding reporting
period
35 Not associated with an occupational injury or occupational illness.
36 From the unit head up.
37 The minimum wage level is set by taking socioeconomic conditions
and cost of living of the able-bodied population in Moscow into
account and cannot be less than the minimum wage level in
the Russian Federation. An agreement on the minimum wage in
the city of Moscow for 2014 between the Government of Moscow,
Moscow’s unions and Moscow’s associations of employers. System
GARANT: http://base.garant.ru/100133/#ixzz3TK3YsxJ0
G4-EC5
The average wage at TENEX in 2014
grew as compared to 2013 by 5% and
was RUR 202,000, which is over three times
the same indicator in Moscow.38
Age and gender characteristics of the personnel
Personnel by gender, %
73
4.7.2. Remuneration
As of the end of 2014, 33 women (9.1%
of the staff schedule of the Company
and 15.2% of working women) were
on parental leave for up to three years.
23 persons
G4-LA3
As in previous years, TENEX continued
its cooperation with leading Moscow-based
universities, primarily with NRNU MEPhI,
to attract young specialists. Traditionally
Company specialists deliver lectures
to the students and post-graduates of NRNU
MEPhI, which is a leader in the training
of human resources for the nuclear industry,
and take part in the ROSATOM Career Days
held at NRNU MEPhI.
38 http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/ru/
statistics/wages/
G4-LA13
74
TENEX Annual Report
2014
The well-proven practice of the recruitment
of candidates for employment
in the Company through the organisation
of training for nuclear-related university
students continued: in 2014, nine
students of NRNU MEPhI did job training
and pre-graduation practice; one of them
was employed by the Company.
Personnel recruitment information in
the reporting year is given in the table below:
Total number of filled vacancies
persons
of employees. It takes into account both
highly specialised and full-range (allied
or end-to-end) areas of expertise. The
new PCM of the Company will help
to optimise the personnel recruiting
process: more specific professional
requirements provide an opportunity
for minimising the involvement
of managers in the evaluation of potential
candidates for filling vacant positions.
hours/persons
G4-LA9
Average annual training hours
2014
by categories:
Recruitment of the personnel
from the external labour market
persons
21
Recruitment of the personnel
from the nuclear industry
persons
9
The new format for PCM has already
allowed the formation of a multilevel,
minimally three-year programme in 2014,
for the education and career development
70%
employees of the Company participated
in training and advanced training
programmes.
The total time of internal and external
training amounted to 16,344 hours
in 2014, (of which 6,431 hours were
for managers and 9,931 hours were
for specialists), i.e. to more than 50 hours
per employee (based on average staff
numbers).
• activity planning and organisation;
79
specialists
40
• application of systemic thinking skills;
men
55
women
46
• control of conflicts, professional
assurance;
by gender:
In 2014, four managers of the Company
did the compulsory training that
was necessary to obtain Rostechnadzor’s
permit to work in the field using atomic
energy (total time of that training
was 288 hours).
• effective communication;
• activity efficiency management;
• effective presentation skills, visualisation
standards;
• negotiations;
With the aim of retaining the continuity
of personnel the Company set up a mentoring
system in a manner and under terms
stipulated in the internal regulations.
Personnel Education
In 2014,
A cycle of trainings to advance business
qualities, professional competencies, and skills
was developed and conducted jointly
with the Corporate Academy of ROSATOM
for the Company specialists on:
managers
30
In 2014, the Company introduced
a new organisational and functional
structure. This was accompanied
by updating PCM, which is aimed,
primarily, at the unification of
the professional competencies structure.
G4-DMA
Average annual training hours by employee
categories and gender in the reporting year were:
The table below gives information on training
expenses in three-year hindsight.
Indicators
2012 2013 2014
Total training expenses,
RUR thousands
9,094
9,669
9,970
Average staff number,
persons
339
340
326
Training expenses
per employee,
RUR thousands
27
28
31
Training time
per employee, hours
28
47
50
Four employees of the Company’s
Accounting and Taxation Department
did their training and were successfully
qualified under ROSATOM’s evaluation
of professional and technical knowledge
and skills of accountants occupying
managerial positions in sectoral
organisations (Order No. 1/687-P
of 28.06.2013).
According to the Provisions of Training
for Specialist in Preparedness Activity
and Mobilisation of ROSATOM (Order
No. 1/800-P-dsp of 31.08.2012 as revised
in Order No. 1/1466-P-dsp of 27.12.2013),
six managers of TENEX did their training
in ROSATOM–CICE&T in 2014.
In the reporting year,
40 employees of TENEX
who process documents in foreign
languages and/or take part
in negotiations with foreign
partners participated in English
language courses.
• time management.
During the period from July to October
2014 in TENEX, a cycle of lectures
on the key issues of the nuclear fuel cycle
back-end was given by Russian specialists
and experts. Top Company managers
and specialists were given an opportunity
to receive updated systematic information
that is necessary for the successful
implementation of a strategic project
or for the promotion of services in this area
in markets where TENEX has a presence.
75
G4-DMA
G4-LA10
76
TENEX Annual Report
2014
To advance the technical qualification
level, 14 specialists of TENEX did their
study course in SC Urals Electrochemical
Integrated Plant in Novouralsk, the world’s
largest uranium enrichment plant.
In 2014, the Company moved
to a new organisational structure. With
that, over 30% of managers and specialists
of the Company from the sectoral
personnel reserve were promoted
or moved horizontally: two of them
occupied managerial positions in TENEX,
two others were in the other sectoral
companies. The share of positions that
were filled as a result of the sectoral
personnel reserve was 100%.
Build-up and Development of the Personnel reserve
To ensure continuity and the timely
training of managerial staff, in 2014,
the key specialists under 35 years
old (57 persons) were screened
out on the basis of the developed criteria
to fill the managerial positions. A succession
plan for filling managerial positions
in the Company and its subsidiaries
(27 persons) was formulated and agreed
upon with the top managers.
G4-LA10
Three programmes of development were worked
out for the said employees:
(1) “I-Team-Business” – support
of expertise in business management;
participants – nine managers of
the Company who did ROSATOM’s Capital
training programme;
(2) “I-Team” – development of expertise
in management; participants – 28 persons
who did training in advancement of
key employees of the Company in 2011–
2012; and
(3) “I” – development of personal
efficiency and horizontal interaction;
participants – 47 persons of under 35 years
old who previously did not participate
in corporate programmes concerning
key employee advancement.
77
The programmes implemented
by ROSATOM consisting of four to eight
topical education modules. They are aimed
at the development of managerial
skills and business qualities, as well
as professional and corporate competences.
The first training workshops started
at the end of 2014. The business simulations
“Effective Strategic Thinking” and “Delta.
Team of Professionals” were run
for Programmes (2) and (3), respectively.
In addition to corporate programmes
working with key managers and specialists
of the Company, in 2014, work continued
to form the Company’s personnel reserve
and its advancement in the sectoral development
programmes:
• “ROSATOM’s Asset” (personnel
reserve to fill the positions of sectoral
top management) – four persons;
• “ROSATOM’s Capital” (personnel reserve
to fill the positions of line managers) –
nine persons;
• “ROSATOM’s Talents” (personnel reserve
to fill the positions of sectoral low-level
managers/heads of project teams) –
two persons.
In 2014, nineteen employees of
the Company successfully completed
the sectoral modular programme
“Global Professionals”. This will give
them the advantage in filling vacant
positions in the foreign subsidiaries
companies.
4.8
The table below contains information on
the participation of TENEX’s employees in career
development programmes:
*
Sectoral personnel reserve , persons
27
Sectoral personnel reserve, %*
7.4
Intracorporate career development
programmes, persons
84
Intracorporate career development
programmes, %*
23
Of the staff number.
Internal Control
and Audit
The internal control system
of the Company is built in line with
the basic principles of the Internal Control
Policy of ROSATOM and is directed at
the enhancement of activity efficiency
as well as at guaranteeing achievement
of the goal, while strictly observing
legislation norms.
The internal control system subjects are
the governing bodies of the Company,
the audit commissions of the Company
and its subsidiaries, the Internal Control
and Audit Service (hereinafter referred
to as ICAS), the owners of processes,
and the Company employees.
In the Company, there is a system
of regulatory documents that establish
the control procedures execution order
should be implemented over the course
of business processes and also stipulate
responsibility for their inappropriate
execution.
In addition to the control procedures built
into the business processes of the Company,
in 2014, ICAS exercised control and audit
activity and internal audits of processes
in accordance with approved plans.
Based on the results of six audits
of financial and economic activities
of the Company and organisations
it manages, as well as audits of three
78
TENEX Annual Report
2014
business processes, no substantial
violations, including terms of contracts,
were revealed. Heads of the audited
objects and owners of the processes
developed and approved action plans
for the optimisation of processes,
the elimination of revealed aberrations,
and their prevention. Plan executions
are controlled by ICAS.
In the Company, significant attention
is paid to the development of
the internal financial reporting control
system: during audits, the assessment of
the internal financial reporting control
system is conducted.
4.9
In 2014, specialists of ICAS as members
of audit commissions took part in seven
inspections of the Company’s subsidiaries,
and in inspections of separate issues
of financial and economic activities
of the nuclear industry organisations
as members of working groups
of the Internal Control and Audit Service
of ROSATOM.
ICAS did not inspect conformance
to regulatory requirements or voluntary
codes related to information about
and markings on the characteristics
of products and services in the reporting
year.
Nuclear Material Control
and Accounting
TENEX, under the state system for nuclear
material control and accounting, carries
out total continuous documentary
accounting of all business and process
operations with nuclear material that
the Company owns. This includes
maintaining the register based
on collection, registering, systematisations,
generalisation, archiving and analysis
of the information about the amount
and movements of nuclear material,
including their exports and imports.
In April 2014, by order of the General
Director, the regulation on the interaction
of structural subdivisions of TENEX
(STO-03-051-140-2014) was put into
force to control and account for nuclear
material subject to the Agreement between
and the Government of Australia
on Cooperation in the Use of Nuclear
Energy for Peaceful Purposes.
The nuclear material inventory-taking was
conducted jointly with JSC TVEL, CJSC UEC,
and contractor-enterprises, by order
of TENEX General Director No. 006/352-P
of 24.11.2014, and revealed no issues.
As a part of measures aimed at controlling
the flow of nuclear materials, in 2014,
16 notices on the transfers of nuclear
material owned by TENEX and four reports
on movements of special raw materials
and fissile materials by categories, as well
as the results of inspections conducted
by controlling and regulatory bodies
on handling nuclear material, were
prepared and submitted to ROSATOM.
4.10
G4-DMA
79
Economic Security
and Anticorruption
Within the Company, revealing
and preventing corrupt practices
is the responsibility of the Assets and Data
Protection Department and ICAS.
In 2014, with the aim of improving
the existing system of corruption
prevention to supplement previously
adopted local regulations,39 the Company
developed the Register of Corruption
Risks in TENEX and its subsidiaries
(hereinafter referred to as “the Register”).
Based on the Register, the Action Plan
on Substantial Corruption Risks Handling
in TENEX and its subsidiaries for 2015–2016
(hereinafter referred to as “the Plan”)
was prepared and accepted for execution.
In the process of the Register and
the Plan drafting, the activities
of all, with no exceptions, structural
subdivisions of the Company were
studied in terms of the risks associated
with corruption. Areas of activities
of the Company that were susceptible
to potential bribery and corruption were
identified.
G4-SO3
The Company participates actively
in the ROSATOM’s programme
of combating theft and fraud. TENEX
and its subsidiaries have adopted
the ROSATOM’s Anti-corruption Plan
for 2014–2015 and the new revision
of the Unified Sectoral Procedure
for the verification of information
on corruption and other offences
received via the hotline and other
channels, as approved by order
of the General Director of ROSATOM
No. 1/1159-P of 01.12.2014.
39 The Bribery and Corrupt Practices Prevention Policy in TENEX and the Regulation
for Work with Partners of TENEX.
The TENEX’s official website hosts updated
information pertaining to anti-corruption
activities of the Company, as well as anticorruption policies and procedures that
are currently in use.
In the framework of activities to exclude cases
of conflicts of interests and corrupt practices,
1,119 contracts
of the Company with partners were studied
and analysed, 81 procurement procedures
were evaluated, as well as the legitimacy
of 58 potential partners and 817 end-users
(physical persons and legal entities) for
the monetary amounts that TENEX allocates
as charity was checked.
In 2014, no corrupt schemes or fraudulent
actions on the part of the Company’s
employees or contractors in the course
of contractual work, as well as procurement
activity, were revealed.
In the reporting year, training in corruption
prevention was not conducted.
G4-SO4
ENVIROMENTAL
SAFETY
*
5.Environmental Impact
* Ecological signs are adopted internationally
and nationally. Own signs used by companies.
Marking, i.e. special graphic characters or text
that confirms a safety of goods or services
for the environment and consumer, relates
to ecological signs. Eco-labelling can be applied
on an item, package or in-line documentation.
The governmental structures or ecological
organisations check for compliance to standards.
5.1. Environmental Policy
5.2. Radiation Safety of Shipments
5.3. Use of Energy Resources and Water
Facing nature
82
5.1
G4-DMA
TENEX Annual Report
2014
Environmental Impact
83
Environmental
Policy
The Environmental Policy that
is implemented by Company is aimed
at creating safe conditions while organising
and carrying out export-import deliveries
of NFC products in the Russian Federation
territory and abroad to prevent any adverse
impacts on the environment.
• maintaining a high level of preparedness
for the elimination of emergency
consequences, which may result
in adverse impacts on the environment;
TENEX Environmental Policy has been
shaped in accordance with the provisions
of the ROSATOM Environmental Policy
and is based on the following principles:
The Company’s Environmental Policy provides
for the following main activities:
• integrated solution to ecological safety
issues in the field of NFC, considering
multifaceted safety factors at the local,
regional, federal, and international
levels based on the current risk analysis
and management concepts;
• transparency of TENEX activities
and informing NFC product
manufacturer and transportation
and logistics service providers
of significant environmental aspects;
• monitoring of NFC product manufacturer
and transportation and logistics service
providers’ activities associated with
significant environmental aspects of
the NFC product supply chain delivery
management;
• ensuring strict observance of norms
and requirements in the field of nuclear
and radiation safety and environmental
protection as a whole;
• placing priority on preventative
measures to reduce the risk of adverse
environmental impacts;
• continuous interaction with state
regulatory authorities and nongovernmental ecological organisations.
Monitoring Monitoring
Monitoring
object
system function content (scope)
Monitored Monitoring
parameters frequency
Condition
indicators
(safety criteria)
1
2
3
4
5
6
Products:
technical
condition
of packaging
Absence
of packaging
damage on the route
foreign contractor –
JSC SPb IZOTOP
Visual examination.
Presence
Comparison with
of damage
producers’ standards
and recommendations
Each shipment
of NFC products
Absence of damage
prohibiting operation
of packaging
and conformance
with requirements
of producers’ standards
and recommendations
Absence of packaging
damage on the route
JSC SPb IZOTOP –
combine combine –
JSC SPb IZOTOP)
Visual examination.
Presence
Comparison with
of damage
producers’ standards
and recommendations
Each shipment
of NFC products
Absence of damage
prohibiting operation
of packaging
and conformance
with requirements
of producers’ standards
and recommendations
Exceeding
of packaging
radiation level on
the route combine –
JSC SPb IZOTOP
Radiation control.
Presence
Dosimetric and radiation of increased
monitoring of package radiation level
with EUP at SSC plants
Each shipment
of NFC products
Absence of radiation
level exceeding at
the surface of package
with EUP
• a comprehensive analysis
of environmental aspects of the activities
associated with the deliveries
of NFC products;
Products:
packaging
radiation level
• the reduction of risks of adverse impacts
on the environment while organising
export-import NFC product deliveries;
• the enhancement of EMS as
per the standard DIN EN ISO 14001:2009;
In the reporting year, no fines or nonfinancial sanctions for a failure to observe
• the improvement of the ecological
knowledge and ecological culture
of the staff of TENEX and its subsidiaries;
• interaction with non-governmental
ecological organisations, including
the charitable support of environmental
programmes and projects.
In the framework of the Environmental
Policy, the Company has developed
a system of goals, objectives, and indicators
for 2012–2014, aimed at minimising
the risks of environmental impacts during
nuclear material transportation, as well
as a programme for the monitoring
of threats, risks, and environmental
aspects, including legislation requirements
conformance analysis, a fragment of which
is provided in the table below.
G4-14
environmental laws were imposed
on TENEX.
G4-EN29
84
5.2
G4-DMA
G4-EN30
TENEX Annual Report
2014
Radiation Safety
of Shipments
TENEX’s radiation safety activities
are carried out in accordance with
the requirements of international
and Russian legislation and local
regulations, as well as licence conditions
granted by Rostechnadzor (GN-05-4012586 of 31.01.2012) for nuclear material
handling during their transportation.
According to the stated Rostechnadzor’s
licence conditions, TENEX transports
nuclear material packages on the territory
of the Russian Federation only if there
is a documented financial provision
of the civil liability for losses and damage
caused to legal entities and physical
persons, as well as human health,
by radiation impact.
The conditions of the referred above licence
provide the Company the right to transport
packages containing the nuclear materials listed
below:
Distribution of loss and damage risk
caused to third parties when transporting
nuclear material between the Company
and partners is fixed in corresponding
contracts.
• natural uranium oxide;
• natural uranium tetrafluoride;
• natural uranium hexafluoride;
• depleted uranium hexafluoride;
• uranium hexafluoride enriched up to
5.0% U-235;
• uranium dioxide enriched up to 5.0%
U-235;
• metallic uranium with content of U-235
equal 0.711–0.720%;
• regenerated uranium oxide;
• uranium concentrate enriched
not greater than 0.72% U-235.
TENEX as an operator in the field
of nuclear energy use in accordance with
Federal Law No. 170-FL of 21.11.1995
“On the Use of Atomic Energy”
(as revised No. 159-FL of 02.07.2013),
bears civil liability for losses and damage
caused to legal entities and physical
persons by any radiation impact when
transporting nuclear material, being
in the possession of the Company
In 2014, insurance of the civil liability was under
third-party insurance of the civil liability General
agreements for the transportation of radioactive
substances, nuclear materials and products
thereof:
• No. 13NL0039 // 067-13-1-72/268
of 30.08.2013 under terms of co-insurance
and joint security with insurance
organisations JSC SOGAZ, CJSC MAKS,
ROSGOSSTRAKN LLC, and VSK Insurance
House;
• No. 14NL0077 // 067-14-1-72/2312
of 25.09.2014 with insurance organisations
JSC SOGAZ, ROSGOSSTRAKH LLC,
VSK Insurance House, IC Soglasie LLC,
and IC VTB Insurance LLC.
Based on the stated agreements,
the Company has Third-Party Open Cover
Insurance Policies for the transportation
of radioactive substances, nuclear materials
and products thereof in 01.09.2013–
31.12.2014 and 25.09.2014–24.09.2015,
respectively.
TENEX also gets a one-time third
party liability insurance policy for each
shipment of radioactive materials
via Russian Federation territory, including
territorial water and air space of
the Russian Federation, storage in transit,
and loading/unloading operations
under contractor’s agreement. Insurance
policies confirm the financial provisions
of liability for losses and damage caused
by a potential radiation impact. Validity
times of the insurance documents
correspond to the completion schedules
of works indicated therein.
The radiation safety procedure
for the transportation of nuclear
material, including shipment, interim
storage in transit, and loading/unloading
operations, is regulated by the Company’s
standards.
The quality assurance and radiation safety
programmes in handling nuclear material
during transportation of NFC products
have been worked out and put in place
to maintain the security of the supply chain.
85
86
TENEX Annual Report
2014
The suppliers within the supply chain
observe regulatory requirements using
similar programmes: according to terms
of the contracts TENEX signed with
its partners, nuclear and radiation safety
assurance in transportation and transit
storage of nuclear material is placed with
partners of the Company and carried
out on the basis of the existing federal
law, as well as federal and sectoral rules
and regulations. Besides, partners also
work to prevent (including drafting
plans of elimination of emergency
consequences) and eliminate
consequences of emergencies
in the handling of nuclear materials.
The Company ships products in special
packages that fully meet transportation
safety requirements. All packages
are granted Russian certificatepermissions for the package design
and transport, as well as national
certificates from the destination
countries.
TENEX tracks the validity and relevance
of the content of certificate-permissions
5.3
G4-DMA
of packages that are used by the Company
for the product deliveries, the availability
of Rostechnadzor’s licences for activities
in the field using atomic energy for
the Russian nuclear material suppliers,
as well as plans to eliminate consequences
of potential transportation accidents.
Data on energy consumption42 and its reduction,
as well as expenditures in three-year hindsight
are given in the table below.
Upon the Company’s requests, consignors
(consignees) provide copies of radiation
monitoring records of packages
and conveyances, dosimetric control
records of the personnel who take part
in shipments and inform TENEX on all cases
where reference levels and limiting dose
burdens to the personnel, residents
of nearby territories, and environment
have been exceeded.
Unit
200943
2012
of measure (baseline)
2013
2014
Thermal energy
Gcal
637
528
630
484
mln MJ
2.7
2.2
2.6
2.0
RUR
470,970
561,960
431,730
Gcal
109
7
153
mln MJ
0.47
0.07
0.67
RUR
92,230
6,240
136,440
G4-EN3
G4-EN6
Reduction of thermal energy
consumption to 2009 level
Electricity
Nuclear and radiation safety monitoring
measures were not carried out in 2014.
Neither violations of nuclear and radiation
safety for the transportation of nuclear
material owned by TENEX nor significant
impacts on the environment from shipments
were revealed in 2014.
Kind of Energy
Reduction of electricity
consumption to 2009 level
G4-EN30
Energy consumption, total
Reduction of energy consumption
to 2009 level
Use of Energy Resources
and Water
In pursuance of Federal Law No. 261-FL 40
of 23.11.2009 and ROSATOM’s order
No. 1/676-P of 09.08.2011, TENEX
approved a programme on energy saving
and improvement of the energy efficiency.
The programme’s key objective is to reduce
the costs of indirect energy sources41
and the optimisation of their use.
kWh
888,320
748,070
659,690
675,100
mln MJ
3.2
2.7
2.4
2.4
RUR
2,192,600
1,933,400
1,978,560
kWh
140,250
228,630
213,220
mln MJ
0.5
0.8
0.8
RUR
410,860
670,060
624,900
4.9
5
4.4
RUR
503,090
676,300
761,340
mln MJ
1
0.9
1.5
RUR
485,260
667,940
772,360
mln MJ
5.9
In the reporting year, the low-cost
organisational measures reduced energy
consumption
In 2014, the total consumed energy by TENEX
was 4.44 MJ, water
3,118 m
G4-EN3
3
Total expenses of TENEX for energy
and water payments (in 2009 prices) were
reduced by RUR 772,360 as compared
to the baseline period and totalled
RUR 2,518,470.
by 23.5%
to the 2009 level.
G4-EN8
G4-EN8
Data on consumed water from the municipal
water supply systems44 is given in the table below.
Amount of Consumed water
Unit of measure
in comparable conditions
m3
actual
40Federal Law “On Energy Saving and on Increasing Energy Efficiency
and on Amendment of Certain Legal Acts of the Russian Federation” No. 261-FL
of 23.11.2009.
2009
2012
2013
2014
3,435
4,093
3,676
3,118
4,257
4,264
3,429
42 Calculated in accordance with the methodology approved for TENEX
and its subsidiaries in 2011.
41 TENEX does not use direct energy sources such as coal and natural gas.
43 Approved as the baseline in calculations of energy efficiency
indicators by ROSATOM’s order No. 1/676-P of 09.08.2011.
44Calculated in accordance with the methodology approved for TENEX
and its subsidiaries in 2011.
87
{ }
*
SOCIAL
RESPONSIBILITY
6.Social Policy
* Exclamation mark as a symbol of a human being,
i.e. embodiment of the highest stage of development
of life, personality, a rightful and free member
of society, active subject of social relations.
6.1. 6.2. 6.3. 6.4. 6.5. Labour Protection
Social Programmes
Development of Corporate Culture
Charity
Development of Communications
The human being –
as the supreme value
90
TENEX Annual Report
2014
Social Policy
Being a socially responsible company, TENEX pays unceasing attention to such aspects as labour
protection, maintaining the staff potential quality, implementation of social programmes
and charity, development of corporate culture and communications.
The Company’s social policy is conducted
through social benefit programmes in various
areas in the framework of the common policy
approved by ROSATOM, including:
• voluntary medical insurance;
6.1
Labour
Protection
• non-state pension provision;
G4-LA6
Labour protection of TENEX employees
is arranged in accordance with the Labour
Code of the Russian Federation and other
sectoral and local regulations, including
the Standard “Provision of Organisation
of Labour Protection Work in TENEX”,
which was adopted in 2009.
In 2014, the training45 of managers
and specialists of TENEX related to labour
protection in a specialised organisation,
as well as the medical examinations
of certain categories of employees46
of the Company in a specialised medical
centre, were not conducted.
All necessary labour protection briefings
in 2014 were held as scheduled;
no occupational injuries and accidents,
diseases, or fatalities associated with work
were recorded.
In 2014, the state labour protection control
and supervision authorities did not inspect
TENEX.
The lost time injury frequency rate
(LTIFR) equalled zero.
6.2
G4-15
The state statistical reports for 2014
on labour protection were submitted
in a timely fashion to the territorial
authority of the Federal State Statistics
Service and superior organisations.
45It is given once in three years; the last time was in 2013.
The primary trade union organisation
of ROSATOM implements the corporate
social programme of support and financial
help for pensioners who contributed
significantly in the sector development.
Voluntary medical insurance is provided
for the Company’s employees in accordance
with the sectoral Standard of Voluntary
Medical Insurance. The Company’s
medical insurance programmes
are intended to render qualified medical
aid in Moscow hospitals and are called
upon to keep employees capable of working
and remaining healthy.
The total expenditures for the voluntary
medical insurance of the Company’s
employees were over
In December 2013, TENEX signed
a Voluntary Medical Insurance Agreement
(VMIA) with SOGAZ Insurance Company.
The Agreement is valid until 31.12.2015.
• outpatient-and-polyclinic care;
RUR
6.5 million
in 2014.
The VMIA programmes include services as follows:
• first aid and emergency medical service;
• dental service in specialised clinics;
• hospital service.
• to recognise the labour rights
of employees as an intrinsic part
of human rights;
• to recognise employees as the Company’s
most important asset;
Non-state pension provision
G4-DMA
• to treat human life as a supreme value;
• to treat labour safety and the health
of employees as a key priority;
per employee, as recalculated based on
the actual payroll staff number (361 persons).
Voluntary medical insurance
Social
Programmes
In 2012, the Company joined the Social
Charter of the Russian Union of Industrialists
and Entrepreneurs (RSPP), thereby confirming
its adherence to the stated fundamental
principles that it stipulates:
RUR 11.13 million
or RUR 30,831
• accident and health insurance;
• financial support of employees.
G4-DMA
In 2014, the total amount spent for social
benefits programmes47 was • to observe any human rights related
to the Company’s activities.
46In accordance with order of the Ministry of Public Health and Social
Wellbeing of the Russian Federation No. 302n of 12.04.2011, it is
carried out once every two years; the last time was in 2013.
G4-EC3
As per the decision of ROSATOM’s
management, the corporate pension
programme is managed by the sectoral Nonstate Pension Fund (NPF) Atomgarant, which
was established on 11.03.1994, Certificate
No. 1489, issued by the Moscow Registration
Chamber.
Under the Company’s corporate pension
programme and according to the Pension
Rules of NPF, all TENEX employees
who take part in the programme
are benefiting from the pension scheme
called “Defined contribution. Personalized.
With pension payments made during
several years”. The payments are made
47 The voluntary medical insurance, accident and health insurance, non-state pension provision, purchase of vouchers to recreational institutions, travel
expenses of employees to get to/from office, expenses for the organisation of public cultural and sports events, bonuses on anniversary and festive occasions,
and financial support of the Company’s employees and pensioners.
91
92
TENEX Annual Report
2014
over 15 years. The corporate pension
programme is co-financed: the employee
transfers up to 50% of the assessed
contribution to the registered pension
account and the employer pays up to 100%.
At the time of joining the programme,
the length of service in the Company should
not be less than one year; furthermore,
Social Policy
93
the right to receive the pension arises after
seven years of service in the Company.
As of 31.12.2014, the corporate pension
programme covered 131 persons. In
the reporting year, pension contributions
of approximately RUR 3.0 million were paid
to their pension accounts.
Injury and illness insurance
All employees of the Company are insured
against injuries and illnesses. The insurance
premium paid by the Company to SOGAZ
Insurance Company’s account is
RUR 230,332.
6.3
In 2014, no situations of the insured being
entailed to payments were recorded.
Head Doctor of Botkin City Hospital
A. B. Shabunin, Doctor of Medical Science,
professor, and Head of Blood Transfusion
Unit A. I Kostin, Candidate of Medical Science,
thanked TENEX’s employees, noting that regular
voluntary corporate donor programmes were
some of the best ways of solving the problem
of donor shortage; for example, 30–50 donors
meets the 5–7-day blood component needs
of the hospital’s Oncology and Haematology
In-patient Department.
Development of Corporate
Culture
In 2014, an employee engagement study
measuring employee readiness to continue
working in the Company, share corporate
values, and achieve high performance
was conducted by ROSATOM and showed
this indicator, which was one of the highest
in the sector, to be at 93%. (The poll
covered 270 employees, including
top management.)
6.4
Corporate actions to host free blood
donation events were one of the most
important aspects of the corporate culture
development.
Since 2012, employees of the Company
have voluntarily donated blood on a regular
basis to help patients of the Federal
Research Centre of Paediatric Haematology,
Oncology, and Immunology, named after
Dmitry Rogachev, through donor actions
that are jointly organised with the charity
foundation “Gift of Life”. In the reporting
year, 39 employees of the Company
donated blood to children suffering serious
diseases.
In 2014, TENEX conducted two outdoor
corporate voluntary blood donation
actions for patients of Botkin City Hospital,
which is one of the largest multisectoral
medical centres in Moscow. More than
80 persons stated their readiness to take
part in the action; 66 employees passed
the preliminary medical examination
and became donors. About 30 litres
of whole blood were collected.
Charity
The Company’s charitable initiatives
are approved by the ROSATOM Charity
Committee. In 2014, the funds directed
as free-of-charge (targeted) financing
for support of charity programmes
and projects totalled approximately
RUR 1.8 billion.
Under the agreement terms, the beneficiary
submits reports to the Company
on the target use of the funds, indicating
measures implemented and outcomes
gained. This type of mechanism for forming
and implementing charity initiatives will
continue in the next reporting period.
The support of ecological programmes
and projects is a traditional area of
the Company’s charity activities.
G4-26
94
TENEX Annual Report
2014
• the project “Identification and mapping
of habitats important for maintaining
populations of rare marine mammals
and white bears in the Frantz Josef Land
Archipelago” (“Russian Arctic” national
park);
• the project “Study of the Beluga whale
and white bear in the Russian Arctic”
(Marine Mammal Council);
• the project “Study and population
monitoring of the Far East leopard”
(Federal Wildlife Biosphere Resort
Kedrovaya Pad, Leopards Land National
Park);
• the project “Outfitting and maintenance
of the leopard rehabilitation centre”
(Wildlife Resort Ussurijskiy of Far Eastern
branch of the Russian Academy
of Sciences );
• the XII International Children’s
Environmental Forum “Green Planet
2014”;
In 2014, TENEX financially supported:
• assistance in environment and fauna
protection activities;
• the programme on the preservation
and study of animals in “The Red Book”
and other particularly important
representatives of fauna within
the Russian Federation;
• the project “Rare and declining species
of large mammals: study and preservation
strategy” (Federal Wildlife Resort
Khakasskiy);
95
Social Policy
• the project “Preservation of the manul
cat in Transbaikalia” (Federal Wildlife
Resort Daurskiy);
• the project “Model project of recruitment
of the snow leopard population
in Western Sayan” (Federal Wildlife
Biosphere Resort Sayano-Shushenskiy);
250
200
246.08
206.62
294.68
215.00
150
100
50
176.91
146.52
0
2009
2010
2011
2012
2013
2014
Funds were provided to the following recipientorganisations:
• All-Russia Non-governmental
Organisation “Russian Geographical
Society”;
• All-Russia Community Clean-up
Day “Green Spring 2014”;
• the international festival “Ecological
Culture: Peace and Concurrence”;
• Interregional Ecological Nongovernment Organisation “GREENLIFE”;
• the XX International Conference
“Environmental education for sustainable
development”;
• Regional Non-government Organisation
“Public Association of Affected
by Radiation Incidents ChernobylAtom”;
• Ecological festival “Planet of Children
2014”.
TENEX’s total spending to support
environmental programmes
and projects was approximately
RUR 177 million
in 2014.
300
• Autonomous Non-profit Organisation
“Eurasian Centre of Study, Saving
and Renewal of Population
of Far Eastern Leopards”;
• Concluding conference on environmental
and safety culture in the framework
of the Year of Culture in the Russian
Federation;
• the project “Beluga: the white whale
of Gulf of Anadyr of the Bering Sea”
(Pacific Research Fisheries Centre);
The Company’s ecology charity initiatives
expenditure’s dynamic, 2009–2014, RUR million
• Non-government Organisation “Moscow
Nature Restoration and Protection
Society”;
“Centre for Support to Territorial
Development of the Nuclear Industry”;
“Nuclear Industry Information Centre”.
96
6.5
TENEX Annual Report
2014
Social Policy
Development
of Communications
TENEX pays continual attention
to the build-up of a communication
environment that is favourable for business
development, promotion of the Company’s
brand, creation of the positive reputation
and appearance of the Company
in the international nuclear community
and mass media. Key areas of these
activities include communication support
for implementation of the Company’s
business strategy, interaction with
target audiences and stakeholders,
and information support regarding the dayto-day work.
In 2014, the Company continued
the practice of General Director
meetings with the team in
the framework of Awareness Days.
To ensure effective external communications,
TENEX strives to inform the stakeholders
in a timely manner on all material aspects
of activities and to respond promptly to mass
media requests.
The Company bases its information
activities on the principles of regularity,
completeness, credibility, and information
availability, as well as keen observation
of the rational balance between
Company openness and the protection
of its commercial interests.
Besides strict observance of the national
law requirements in terms of the disclosure
of mandatory information, TENEX
seeks to provide additional information
to ensure that the Company’s activities
are transparent. A number of publications
in related specialised periodicals were
prepared, including an interview
with the General Director of TENEX
for the leading Russian information
and analytical web-portal of the nuclear
industry, Nuclear.Ru.
The Company is a regular participant
in specialised exhibitions held both
in Russia and abroad, using the provided
platforms for active promotion
of the TENEX brand.
300 reports
In the picture is an exhibition booth of TENEX at
the VI International Forum ATOMEXPO 2014 held
in Moscow on June 9–11, 2014, which traditionally
attracted the attention of many guests.
on the Company’s activities; of them, 78%
are of a neutral nature and 18% are positive.
Of all the reports, 76% were published by
the federal mass media, 14% in foreign
mass media, and regional and sectoral mass
media claimed 5% each.
The Company considers the development
of internal communications as an efficient
tool to build the common corporate
culture and to increase the personnel
engagement level. The corporate portal
(intranet) has been developed and
is actively used in the Company to provide
access for the Company’s employees
to various internal information sources,
including the database of local regulations,
capabilities for the prompt informing
of the employees on events and measures,
as well as finding out their opinions
and the collection of proposals on different
topical issues. The 2015 plans include
a full-scale effort to optimise the structure
and content of the intranet portal
of the Company.
In 2014, advertising and information about
TENEX activities, as part of ROSATOM’s
common sectoral exhibition, were
presented at the World Nuclear
Association’s (WNA’s) Symposium
in September and at the first World Nuclear
Exhibition (WNE) held in October 2014
in France (Le Bourget).
The Company is a regular participant
in the annual international forum
ATOMEXPO, organised by ROSATOM.
It is one of the world’s largest specialised
exhibition and business platforms, which
provides an opportunity for discussing
issues topical to nuclear power and
the industry at large.
In the reporting year, the mass media
published more than
Information resources
The Company’s website is the main channel
for external communications. In 2014,
the structure and content of the website
were updated: the rubrication section
was modified; text information, pictures
and videos were fully renewed; the design
of the homepage was changed. The number
of news items (press releases) on the most
significant events in the Company’s
life posted on the website of TENEX
has doubled as compared to the previous
year.
Advertising and image-building policy
Regularly, advertisements
for the Company are placed
in specialised Russian
(Nuclear Club and SECURITY
INDEX) and foreign (Nuclear
Engineering International)
periodicals.
The preparation
and production of corporate
booklets, including those
on topical subjects,48
is one of the Company’s
promotional tools for
its brand and briefly raises
awareness among the broad
circle of stakeholders
regarding information
about the main directions
of the Company’s business,
implemented projects, the Company’s
position in the Russian nuclear industry,
and the global uranium
market. In the reporting
year, the Company issued
an updated bilingual corporate
booklet of TENEX designed
in an approved uniform
stylistic concept.
The Company set up the Image
Policy Commission upon
the order of the General
Director No. 006/74-P
of 12.03.2014. The main
result of the Commission’s
activity in the reporting
year was the development
of new approaches
to the creation on uniform
concept corporate souvenirs
and gifts, as well as
the optimisation of corporate procedures
for the treatment of these products.
48In 2013, the Company prepared two topical booklets: on the 50th anniversary of the Company and on the occasion of completion of the HEU-LEU Programme.
They are posted on the Company’s website: http://www.tenex.ru/wps/wcm/connect/tenex/site/media/Corporate_Publishing/.
97
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TENEX Annual Report
2014
Appendix No. 1
99
Appendix No. 1.
Information on the Report and its Preparation
1.1. Information on Previous Reports
G4-30
Pursuant to Federal Law No. 208-FL
of 26.12.1995 “On Joint-Stock Companies”,
which binds joint stock companies
to publish annual reports and annual
financial statements, since 1996, TENEX
has issued 18 reports. The ten most recent
reports are published on the Company’s
official website (http://www.tenex.ru/wps/
wcm/connect/tenex/site/Disclosure_of_
information/AnnualReports).
The Company’s public
annual reports have been
prize-winners multiple
times and special nominees
in a number of Russian
and nuclear industry-wide
contests.
The public annual report
of the Company for 2013 received
a record number of awards.
TENEX’s report, for the
first time in the sector,
received the highest award,
“Platinum”, in the category
of “Energy: Equipment &
Services” in a prestigious
Since 2009, TENEX has prepared
annual reports in a format that
provides, in a combined manner,
information on the production, finances
and the economic results of the Company’s
activities in the context of sustainable
development in accordance with Russian
law and the recommendations of
the Sustainability Reporting Guidelines
of the international organisation the Global
Reporting Initiative (GRI).
international competition
“The 2013/14 Vision Awards
Annual Report Competition”,
which is run each year by
the League of American
Communications
Professionals LLC. (LACP).
The report received 99
points out of 100 and won
12th place in the world
rating of the 50 best reports
from winning companies.
The competition
included a large number
of participants representing
over 6,000 companies
from more than twenty
countries.
Additionally, the Company’s report
for 2013 was awarded second place
in the category of “The Best Annual
Report of Sector “Industry” at the XI Open
Contest of Annual Reports of Joint Stock
Companies organised by the Department
for Financial and Securities Market
of Krasnodar Territory in the framework
of the XIII International Investment
Forum, Sochi 2014.
TENEX’s annual report for 2013
was among the top ten nominees
(short-listed) in the category
“The Best Annual Report of a Nonpublic Company” in the XVII Annual
Competition of Annual Reports
organised by the Moscow Exchange
Group and RCB Media Group.
TENEX won the All-Russia Contest
“Leader of Russian Business; Dynamics
and Responsibility 2014”, which is run by
the Russian Union of Industrialists
and Entrepreneurs (RSPP), after receiving
the most points out of the 16 contenders
in the special category “For Information
Openness”.
The Public Annual Report of TENEX for 2013
has been entered:
• in the National Register of Corporate
Non-financial Reports of RSPP
(http://rspp.ru/simplepage/157)
• in the database of information disclosures
in sustainable development of the
GRI (http://database.globalreporting.org/
reports/view/22732).
The Company has prepared its IFRS reports
since 2003. The scope of consolidation
includes TENEX and its subsidiaries.
The 2014 IFRS report and an auditor’s
report are posted on the Company’s official
website (http://www.tenex.ru/wps/wcm/
connect/tenex/site/resources/879c8e804
874dbaf86a2d62edc232834/MSFO_2014.
pdf ).
G4-17
1.2. Description of the Report
TENEX’s Public Annual Report for 2014
(hereinafter referred to as “the Report”)
was prepared in accordance with
the applicable legislation, ROSATOM’s
public reporting policy, the Sustainability
Reporting Guidelines of the Global
Reporting Initiative (GRI, version G4, Core
option), and the Public Reporting Standard
of TENEX.
The Report discloses, in an integrated
manner, information on production
as well as financial and economic results
of the Company’s activities in the context
of sustainable development over
the 01.01.2014–31.12.2014 period.
In 2014, there were no material changes
in the aspect boundaries or reformulation
of indicators as compared with previous
G4-28
G4-22
G4-23
100
TENEX Annual Report
2014
reports. The coverage of disclosed
aspects is based on the materiality
analysis (for details, see Section 1.4
of Appendix No. 1); as compared to 2013,
new aspects are disclosed: “Water”, “General
Information” (ecology), while non-material
aspects are not disclosed: “Prevention
of Non-discrimination”, “State Policy”
and “Compliance” (society).
Financial reporting is given in accordance
with the RAS (Appendix No. 8).
Appendix No. 1
The disclosure level in the Report
corresponds to the requirements of GRI G4
Guidelines (Core option). A list of elements
and indicators of public reporting disclosed
in the Report in accordance with the Public
Reporting Standard of TENEX can be found
in Appendix No. 3.
The Report is issued in both the Russian
and English languages. An interactive
(electronic) version of the Report is posted on
the Company’s website: http://www.tenex.
ru/wps/wcm/connect/tenex/site/Disclosure_
of_information/AnnualReports/.
To improve the quality and interaction
technologies with the stakeholders, as well
as further reduce the costs of public
reporting, as per the ROSATOM decisions,
the Company in the framework of the
reporting campaign of 2014–2015 has
moved to a correspondence format
of communication with stakeholders,
which had proved its efficiency in previous
reporting campaigns.50
G4-29
In the 17.10.2014–28.11.2014 period, the dialogue
by communication was carried out with
the stakeholders; they were sent a questionnaire
on the Report concept. Sixty responses
were received from the following groups
of stakeholders:
1.3. The Report Preparation and Engagement of Stakeholders
G4-26
G4-25
The First Deputy General Director
for Strategy and Communications
is responsible for the functioning
of the public reporting system
of TENEX. The Department of Strategic
Communications of the Company49
is responsible for preparing and issuing
the Company’s public reports
(in the printed and interactive versions)
and organising interactions with
the stakeholders.
The Report was prepared in accordance
with the Regulation for Public
Reporting of TENEX STO-11-01-042-1062011 (hereinafter referred to as “the
Regulation”), as updated by the orders
of the General Director No. 006/285P of 26.08.2014 and No. 006/394-P
of 26.12.2014.
The draft of the Report concept
was agreed upon with the Public Reporting
Committee of the Company (Record
of Meeting No. 006-04/7-Pr of 05.12.2014)
and the Public Reporting Committee
of ROSATOM (Record of Meeting No. 4
of 11.12.2014).
The Report preparation schedule,
its concept and the table of responsibility
distribution among the members
of the Public Reporting Committee
of the Company for information provision
were approved by orders of the General
Director of TENEX (No. 006/325P of 27.10.2014 and No. 006/392-P
of 25.12.2014, respectively).
While preparing the 2014–2015
reporting campaign and with
the aim of strengthening the personal
responsibility of the Company’s
top managers for the quality
and timeliness of any materials provided
on the competence of the structural
divisions that they manage, TENEX’s
Public Reporting Committee contacted
top managers in the Company (order
No. 006/209-P of 20.06.2014); updated local
regulations, including the stated Regulation
and the Public Reporting Standard STO11-02.1-042-106-2011; and provided
information on the Stakeholders
Commission and its composition (order
No. 006/394-P of 26.12.2014).
The stakeholders were involved
in the preparation of the Report
at all key stages: starting from
the formulation of the Report concept
through to the discussion of its final
revision, and had an opportunity to present
their expectations and recommendations.
G4-24
• ROSATOM and its organisations
(including JSC Atomenergomash,
JSC Rusatom Overseas);
• federal executive bodies (FSTEC of Russia,
Rostechnadzor, The Ministry of Economic
Development of Russia);
• the Company’s subsidiaries
(JSC SPb IZOTOP, TRADEWILL Ltd.,
TENEX-Japan Co.);
G4-25
• suppliers (SC AECC, SC UEIP, JSC PA ECP,
JSC SCC, JSC TVEL, Uranium One Holding,
JSC Atomredmetzoloto, Columbiana
Hi Tech LLC);
• customers/clients (USEC, AREVA, CIFAL,
Eskom, ENEC, Mitsui & Co. Ltd, KEPCO
NF, CNEIC, NUKEM Inc., Axpo Power AG,
ENUSA);
• shipping companies (CJSC BALTIC
MERCUR, Nuclear Cargo + Service
GmbH, TLI);
• ecological organisations (GREENLIFE);
• international organisations of the nuclear
sector (IAEA, JSC IUEC);
G4-31
49For public reporting contacts: [email protected].
50 The questionnaires sent to the stakeholders on the Report concept, which were
tested by the Company, have been widely used in organisations within the sector.
• expert community (Energy and Safety
Centre, NAC International);
• management and personnel of TENEX;
• mass media (Nuclear.Ru, WIA Russia
Today).
Representatives of the stakeholders agreed
in principle with the Report concept
and parameters. They expressed their
opinion on the influence of the stakeholder
groups they represented on the Company
and the degree of influence
of the Company’s activities on each
of these groups. As per the requirements
of the stakeholder involvement
standard AA 1000 SES, the ranking
map of stakeholders, the composition
of which had been identified during
the preparation of previous annual reports
of the Company and did not change much,
was updated.
Public consultations on the final draft
of the Report were held in correspondence
format for the first time on the date
established in the preparation
schedule, before 28.04.2015. The draft
Report was presented in advance
to the representatives of the broad circle
of stakeholders to receive objective
recommendations and comments
on its content.
Recommendations and requests
from the stakeholders that were received
during the reporting campaign have been
systematised and taken into account during
the preparation phase of the final revision
of the Report (Appendix No. 2).
As per the Regulation, an internal audit
of compliance of the Report formulating
process with the requirements
of ROSATOM’s Policy and local regulations
on public reporting was carried out,
with the concluding statement given
in Appendix No. 11.
101
102
TENEX Annual Report
2014
Appendix No. 1
1.4. The Report Boundaries and Information Disclosure
G4-18
When preparing the concept of the Report
with due consideration of the stakeholders’
opinions, which were revealed
by questionnaires, the Public Reporting
Committee identified and ranked material
aspects of the Company as per the
GRI G4 Guidelines. These aspects reflect
the material (materiality index is ≥ 1)
economic, environmental, and social
impacts of an organisation or those
producing material impacts on assessments
and the resolutions of stakeholders (shown
in the chart below).
Also, the reporting boundaries
of material aspects were identified
during the dialogue with stakeholders
about the concept of the Report.
G4-20
0.0
G4-19
Business sustainability
Position in the global market
Ensuring safety during transportation
Financial performance
Compliance with the requirements of national law
Development of the transportation and logistics
infrastructure
Economic performance
Corruption prevention
Compliance with environmental legislation requirements
Effectiveness of governance mechanisms
Training and education of personnel
Human capital management
Study of customer satisfaction
Consumer health and safety
Workplace health and safety
Overview of employment and engagement
General information about environmental protection
expenditures and investments
Ensuring information transparency
0.5
1.0
1.5
2.0
G4-21
The Report contains information
on the results of TENEX activities.
The Report does not consolidate
the financial indicators and sustainable
development results of the Company’s51
Russia-based and overseas subsidiary
companies. Information on
the environmental and social aspects
of the activities of the Company’s
largest subsidiary – JSC SPb IZOTOP52 –
is disclosed in the subsidiary’s annual
report, which has been prepared with
consideration of GRI G4 Guidelines
and published on its website
(http://www.izotop.ru/about/
information/).
The safety assurance during transportation
aspect is material beyond the Company;
approaches to management are disclosed
in Sections 4.6. and 5.2.
The aspect “Business Sustainability”
and the associated aspects “Position
in the global market” and “Financial
and economic performance” (Sections
1.7., 1.8., 3.1., 3.3., and Chapter IV)
are the key aspects for TENEX, which
is the oldest Russian foreign trade
organisation and has been operating
in the world market for more than forty
years, providing nearly 50% of ROSATOM
currency earnings acquired from overseas
operations.
“Development of the transportation
and logistics infrastructure”, “Safety
assurance during transportation”,
“Compliance with the environmental
legislation requirements”, and “Study
of customer’s satisfaction degree”
(Sections 3.2., 5.1., 4.6., and 5.2.) are
the aspects containing the most important
constituents of the Company associated
with security of supplies, minimising
delivery time, and cost reduction
for the shipment of uranium product
to dozens of customers in different regions
of the world.
“Human capital management”
and “Training and education of personnel”
(Section 4.7. and Chapter VI)
are the activities associated with
retaining and ensuring consistency
in the development of the most important
strategic resource and the main value
of the Company, i.e., the highly qualified
staff of TENEX whose work has helped
the Company successfully solve its
set challenges for many years.
The Report not only contains detailed
information on the activity results of TENEX
as per aspects recognised as material,
but also discloses information on managerial
approaches, i.e., how the Company manages
its economic, environmental and social
impacts.
Indirect economic impacts
Observance of human rights
Non-discrimination
Diversity and equal opportunities for personnel
Relationship between employees and management
Equal remuneration for men and women
Labour practices grievance mechanisms
Energy consumption
Water consumption
51 Information on subsidiares is disclosed in the aspect “Corruption prevention”.
52 JSC SPb IZOTOP is a nuclear operator that provides freight-forwarding services for nuclear fuel cycle companies and delivers uranium and radioisotope
products, instrumentation, equipment, and means of protection in handling radioactive materials.
103
104
TENEX Annual Report
2014
Appendix No. 2
105
Appendix No. 2.
Accounting Table of Stakeholder Recommendations
and Requests, Received during the Report Drafting Process53
1.5. Disclaimer
The Report has been produced in line
with legislation on the protection
of state and commercial secrets using
the information available to TENEX.
The reporting period is limited
to 2014. Any past and future periods
are mentioned in this Report
in the context of the Company’s strategy,
comparison of material factors, indicators
and performance, as well as in forecasts
and risk assessments.
This Report, apart from factual data,
encompasses possible future events,
Recommendations/ Requests
having a probabilistic nature, as well
as their assessment. In addition to factual
data, the Report contains descriptions
of events that are possible in the future
and their assessment. Any statements in this
Report that are not statements of facts
shall be considered as forward-looking
statements. As such, they are topical only
at the point in time when they are made
public.
G4-33
The credibility of financial statements
was confirmed by a financial auditor,
Financial and Accounting Consultants
LLC (Appendix No. 9).
The conformance check of the Report
to the requirements of the GRI G4
Guidelines (Core option), the Public
Reporting Standard of TENEX, national
law on annual reports of joint stock
companies regarding information
disclosure, as well as the nature and degree
of conformance with the Standard
AA1000 APS 2008, was conducted
by an independent auditor. The related
statement is provided in Appendix No. 5.
ROSATOM and its organisations (JSC Atomenergomash)
1.
Justify an approach on absence of information about
the performance of subsidiaries.
Traditionally, the Report contains information only
about the production, finances, and economic
performance of TENEX in the context of sustainable
development. The financial results of ТENEX group
activity (including Russian and foreign subsidiaries)
are consolidated in the IFRS reporting system posted
on the website (http://www.tenex.ru/wps/wcm/
connect/tenex/site/Disclosure_of_information/
FinancialAccountingReports/). Information
on the environmental and social aspects of activity
from the largest subsidiary of the Company –
JSC SPb IZOTOP – is disclosed in the annual
report of the latter, prepared with due account
of the requirements of the GRI G4 Guidelines and
posted on its website.
2.
Make a brief review of subsidiaries of the Company.
Brief information on subsidiaries as of 31.12.2014
is presented in Section 1.5. “Information about
the Company”.
3.
Non-inclusion of data on environmental and
social issues of JSC SPb IZOTOP in the Report will
become acceptable if all the necessary information
is presented in the annual report of JSC SPb IZOTOP.
The Report of JSC SPb IZOTOP, in terms
of environmental and social aspects of activity,
includes disclosures as per the GRI (version G4).
The report is available on the website of JSC SPb
IZOTOP.
4.
Is information about declared volumes in the regional Disclosure of the indicator is provided by the Public
customs excessive for the Report?
Reporting Standard of TENEX.
5.
It was proposed to change the places of factors
that account for the growth of proceeds from
uranium product sales in 2014: first goes the growth
of sales volume and then the rouble devaluation
(Subsection 3.3.1. “Main Financial Indicators”).
6.
What is the purpose of the phrase stating that in the Disclosure of indicator G4-EC4 from the GRI G4
reporting year, the Company did not receive financial Guidelines.
assistance from the state in Subsection 3.3.1. “Main
Financial Indicators”?
7.
Is it necessary to show an average wage in TENEX
in 2014 or is it sufficient to provide information that
the average wage grew by about 5% against 2013?
Disclosure of the indicator is provided by the Public
Reporting Standard of TENEX.
8.
It is proposed to delete the phrase “that especially
impacted the contracting the US customers” from
the preamble of Section 3.1. “Contracting and Sales”
This is inexpedient in terms of stating contracting
terms in the reporting year.
9.
It is proposed to partly reword the first sentence
of Section 3.1. “Contracting and Sales” (North
America): “In spite of especially unfavourable impact
on contracting process of the threat of sanction risks
in this particular region...”
Taken into account.
TENEX (excluding cases directly
provided by the law) does not undertake
any obligation to revise or update
statements, thereby taking into account
any effects of newly published information.
1.6. Validation of the Reported Information and Conformity to Standards
The selection of an independent auditor
was carried out through a tender held
in accordance with USPS within the time
established in the Report preparation
schedule, approved by the order
of the General Director of the Company.
The level and quality of stakeholder
engagement were confirmed by
the stakeholders’ representatives,
who participated in the public
consultations related to the drafting
of the Report. Their opinions
and recommendations are provided
in the Public assurance statement
on the Report (Appendix No. 4).
Accounting of recommendations/
Requests
10. It is recommended for visualisation that in the
materiality chart (Section 1.4. of Appendix No. 1)
to delineate aspects, which are < 1 either by colour
or by line.
This is inexpedient because the increment in 2014
proceeds in roubles was 76% provided by the rouble
exchange rate.
Taken into account.
53 Coloured recommendations and requests of the stakeholders were received in the course of discussions on the Report concept.
G4-27
106
TENEX Annual Report
2014
11. It is proposed to explain why compliance with
not actual any more Code of Corporate Conduct
is disclosed instead of the Code of Corporate
Governance.
Appendix No. 2
Requests
Taken into account: information on observance
of the Code of Corporate Conduct has been deleted
from the Report.
Federal executive bodies (Ministry of Economic Development of Russia, FSTEK of Russia)
12. It is proposed to make the theme “Observance
of the national law requirements” (including
nuclear material control and accounting, customs
and licensing export support, nuclear and radiation
safety) a priority.
13. It is proposed to add at least one subparagraph
in the Section “Position of the Company
in the Nuclear Industry”.
The GRI G4 Guidelines do not assume singling
out any priority topic, but rather require disclosing
information on the results of activity in the context
of material aspects.
The topic of fulfilment of the national law
requirements in the given areas is disclosed
in relevant sections of the Report, including Section
4.9. “Nuclear material control and accounting”,
Subsection 3.2.3. “Internal Programme of Export
Control, Licensing and Customs Support “,
and Section 5.2. “Radiation Safety of Shipments”.
The wording of the subparagraph title was not
proposed; the Company reserved the right to define
the optimal structure and content of the Report.
14. In the footnote to Subsection 3.2.3. “Internal
Taken into account.
Programme of Export Control, Licensing and Customs
Support”, there is a suggestion to replace “No. 372-FL
of 21.12.2013” with “No. 183-FL of 18.07.1999 (revision
of 21.07.2014)”.
15. To explain briefly in Section 4.2 “Risk Management
and Development of Compliance System” (Risk
Management and Insurance) what methodology
is used in insuring civil liability for nuclear and
radiation damage, since it is a socially significant issue.
Taken into account.
Management and personnel of the Company
16. Delete detailed information about the Company’s
organisational structure.
Taken into account: the Company’s structure is
enlarged as functional blocks.
17. Delete the section “Payments to capital providers”
as it duplicates information from other sections.
Taken into account.
18. The section “Strategy” should be described briefly
in the other section, “The Company’s mission...”
Recognised as inexpedient.
19. Don’t break into subsections the sections
“Contracting and Sales” and “Transportation and
Logistics Support”.
Taken into account as relates to the section
“Contracting and Sales”.
20. Reduce the Report’s volume.
Taken into account.
21. Reduce the number of copies.
As compared to the edition of the Report for 2013
(300 copies), the edition of the Report for 2014 was
reduced by 100 copies (200 copies).
22. Add to the Report information on the dismissal
of Audit Commission and early termination
of authorities of its members to explain the absence
of the Audit Commission’s statements supplemented
to previous reports.
Taken into account.
Requests
Customers/clients (AREVA Russia & CIS, Eskom, Axpo Power AG)
23. It is proposed to include in the Report the
consolidated financial information and indicators; it
will facilitate making more substantiated decisions.
See comment above (No. 1).
24. It is proposed to disclose the aspect “Transparency
and control over activities of suppliers in the context
of sustainable development”.
Taken into account in Section 4.6. “Management
Systems”.
25. Recommended to issue a separate report on
sustainable development.
This is not envisaged by ROSATOM’s Policy in the field
of public reporting and by the Public Reporting
Standard of the Company.
26. It is recommended to explain the positive changes
in the export portfolio volume with a threeyear hindsight (table in the preamble of Section
3.1 “Contracting and Sales”) if the total value
of the portfolio dropped in 2014 against 2013.
Taken into account: an explanation is given that
the export portfolio volume data is calculated (by
ROSATOM’s methodology) to the value of the year
preceding the three-year period of 2012–2014, i.e.,
to 2011 and prices are compared in terms of 2011
figures.
27. It is proposed to detail by components the
information about the volume of the products sold
(feed, EUP, conversion and/or enrichment services)
by the Company.
Not taken into account due to the commercial
sensitivity of the information.
Suppliers (JSC UEIP, JSC SCC, SC AECC, JSC ARMZ)
28. Provide a summary of what activities from the parent Not foreseen by the Report’s format; see the
company have yielded results instead of only
comment above (No. 1).
simply including references to subsidiary company
recourses.
29. Disclose information about subsidiary companies.
See the comment above (Nos. 1, 2, 3).
30. It is proposed to single out priority themes.
See the comment above (No. 12).
31. It is proposed to prepare the Report in accordance
with the IIRC Standard.
The Company does not assume use of the IIRC
Standard, as it does not correspond to the Company’s
activity profile.
32. In Section 1.8 “Position in the Nuclear Industry”,
give more details of the role of enrichment facilities
of JSC TVEL in securing supplies of the product
to the external market.
Taken into account.
33. Supplement graphic information about liquidity
indicators in Subsection 3.3.2 by a description
of changes in indicators during 2012–2014 with
an explanation of reasons.
This is inexpedient in terms of the unification
of financial indicators included in the Report:
the limited format does not allow for providing
detailed comments on all the indicators and random
comments disrupt narrative harmony.
34. In Section 4.2. “Risk Management and Development
Taken into account.
of Compliance System”, specify legends on risk radars.
35. In the presented version of the Report, there are
Taken into account in the final version of the Report.
no references to disclosed GRI indicators over the text
of the Report, which complicates its perception.
Subsidiary companies (TRADEWILL Ltd.)
36. It is proposed to number the contents with the use
of hyperlinks; this will make viewing the text
of the Report more convenient.
This will be taken into account in the interactive
version of the Report.
107
108
TENEX Annual Report
2014
Appendix No. 3
109
Appendix No. 3.
Table of Elements and Indicators of Public Reporting
Disclosures
37. It is proposed to include data on the financial
and economic results of the Company’s activities
as denominated in one of the world currencies
of IFRS.
General Standard Disclosures of
GRI G4 reporting
Page
of the Report
Auditors’
assurance
G4-1
Statement from the most senior decision-maker
8–10
+
G4-2
Description of key impacts, risks, and opportunities
56–61,
128–129
+
G4-3
Name of the organisation
25
+
G4-4
Primary brands, products, and services
14, 31
+
G4-5
Location of the organisation’s headquarters
25
+
G4-6
Number of countries where the organisation operates
26
+
G4-7
Nature of ownership and legal form
25
+
G4-8
Markets served (including geographic breakdown, sectors
served, and types of customers and beneficiaries)
14, 30, 31, 40–41
+
Requests
Inexpedient: financial and economic results
are presented as per RAS requirements. There
is a reference to the website of TENEX where IFRS
reporting is posted, which is prepared in parallel
with the Report.
Expert community (Centre for Energy and Security Studies, Moscow Office of NAC International Inc.,
Nexia Pacioli Consulting LLC)
38. It is proposed to make the priority theme “TENEX
See comment above (No. 12).
is a multi-year leader in exports of the Russian nuclear
industry products” (the goal is to demonstrate
the multi-year central role of the Company in total
export volume of ROSATOM).
G4-32
39. It is proposed to specify the names of utilities with
which contracts were signed in April and December
(Section “Highlights of the Reporting Period”).
G4-9
6, 26, 40, 47,
70
+
40. It is proposed to disclose in Chapter II
“Strategy” the strategy of the Company’s pricing
in the conditions of rouble devaluation.
Scale of the organisation, including total number
of employees, total number of operations, net revenues,
quantity of products or services provided
G4-10
71
+
41. It is expedient to retain the way of representing
the information on maintaining jobs at the sectoral
enterprises as was done in the Report for 2013.
Taken into account.
Total number of the Company’s employees by employment
contract (terminal and open-end) and gender.
Total number of permanent Company employees
by employment type (full-time and part-time) and gender.
Total workforce by employees and supervised workers
and by gender.
42. It is recommended to represent a chart showing
the export structure by regions with three-year
hindsight without HEU Agreement supplies
(2012, 2013).
Taken into account.
G4-11
Percentage of employees covered by collective bargaining
agreements
69
+
G4-12
Description of the organisation’s supply chain
32
+
43. It is recommended to specify the data for
2014 in the table “Personnel by age groups, %”
(Subsection 4.7.1. “Description of Personnel”).
Taken into account.
G4-13
Any significant changes regarding scales, structure
or ownership of organisation or its supply chain during
the reporting period
25, 32
+
G4-14
Information on whether and how the precautionary principle
is used by the organisation
82
+
G4-15
Externally developed economic, environmental and social
charters, principles, or other initiatives to which
the organisation subscribes or which it endorses
90, 125–126
+
G4-16
Memberships of associations and/or national and international
advocacy organisations, in which the organisation holds
a position on the governance body, participates in projects
or committees, provides substantive funding beyond routine
membership dues, views membership as strategic
125–126
+
G4-17
List of all entities included in the organisation’s consolidated
financial statements or equivalent documents
99
+
G4-18
Methodology of defining the report content and the Aspect
Boundaries. Reporting principles for defining report content
102–103
+
G4-19
List all the material Aspects identified in the process
for defining report content
102
+
G4-20
Aspect Boundary within the organisation for each material
Aspect
103
+
G4-21
Aspect Boundary outside the organisation for each material
Aspect
103
+
44. It is recommended to explain the term “in comparable Taken into account.
prices”.
45. It is recommended to explain that the contract
for technical assistance in the construction of
the 4th stage of GCP in the PRC was fulfilled under
the Supplemental Protocol of 06.11.2007 to the Russian–
Chinese intergovernmental agreement of 18.12.1992.
Taken into account.
46. It is proposed that the theme, “TENEX is the largest
exporter of Russian nuclear industry products over an
extended period”, be the prevailing theme of the next
report.
A similar theme was the main one when
the Report was prepared on the 50th anniversary
of the Company. In regard with the Company
transitioned to preparing reports in accordance with
the GRI G4 Guidelines the approaches to formating
reports has changed: from priority themes to material
aspects, with the understanding that the security
of supplies has been and remains the leitmotif
of the Company’s work.
47. It was recommended to consider the possibility
of giving, in future reports, brief information on how
the Company introduces a paper-saving culture,
energy saving at the work places, and how the
practice of volunteers is developing (have in mind
something else beyond free blood donations).
This will be taken into account in future reporting
campaigns.
110
TENEX Annual Report
2014
Appendix No. 3
General Standard Disclosures of
GRI G4 reporting
Page
of the Report
Auditors’
assurance
G4-22
Effect of any restatements of indicators provided in previous
reports, and the reasons for such restatements
99
+
G4-23
Significant changes from previous reporting periods
in the Scope and Aspect Boundaries
99
+
G4-24
List of stakeholder groups engaged by the organisation
101
G4-25
Principles of identification and selection of stakeholders
for engagement
G4-26
Organisation’s approach to stakeholder engagement
G4-27
Key topics and concerns that have been raised through
105–108
stakeholder engagement, with indication of stakeholder’s groups,
raised each of these topics or expressed each of these concerns.
Response of organisation for these key topics and concerns,
including by the report preparation
+
G4-28
Reporting period for information provided
99
+
G4-29
Date of previous sustainability reporting
100
+
G4-30
Reporting cycle
98
+
G4-31
Contact point for questions regarding the report or its contents
100
+
G4-32
The ”in accordance“ option the organisation has chosen. GRI
Content Index for the chosen option.
The reference to the External Assurance Report, if the report
has been externally assured
109–110, 114–115 +
The organisation’s policy and current practice with regard
to seeking external assurance for the report
2–3,104,117–125
G4-34
The governance structure of the organisation
16
G4-38
The composition of the highest governance body
and its committees
G4-39
Reporting indicators
1.2. Financial stability 1.2.1. Net assets at year-end, RUR million
Page
of the Report
49
1.2.2. Assets at year-end, RUR million
49
1.2.3. Net assets share in total assets, %
49
+
1.2.4. Debt-to-equity ratio
49
100–101
+
1.2.5. Networking capital to current assets ratio
49
93–95, 100–103
+
1.2.6. Current ratio
48–49
1.2.7. Quick ratio
48–49
1.3.1. Risk management system
56–57
1.3.2. Key risks and responses
57–60, 127–128
1.3.3. Risk management measures
57–60
1.3.4. Insurance of the Company’s risks
60–61
1.4.1. Revenue, RUR million
6, 47
1.4.2. Administrative expenses, RUR million
47
1.4.3. Selling expenses, RUR million
47
1.4.4. Gross profit, RUR million
47
1.4.5. Earnings Before Interest, Taxes, Depreciation, and Amortisation
(EBITDA), RUR million
6, 48
1.4.6. Net profit, RUR million
6, 48
+
1.4.7. Gross profit margin, %
48
16–22
+
1.4.8. Profit margin before interest, taxes, depreciation, and
amortisation (EBITDA), %
48
Whether the Chair of the highest governance body is also
an executive officer
17
+
1.4.9. Net profit margin, %
48
G4-41
The processes for the highest governance body to ensure
conflicts of interest are avoided and managed
17
+
1.4.10. Return on assets (ROA), %
48
1.4.11. Return on equity (ROE), %
48
G4-56
The organisation’s values, principles, standards and norms
of behaviour, such as codes of conduct and codes of ethics
14, 126
+
1.4.12. Сost related to the uranium business, RUR million
47
1.4.13. Other expenses within cost, RUR million
47
1.4.14. Investments, total, RUR million
52–53
1.4.15. Structure of investment, RUR million
52–53
G4-33
1.1. Position in the
global market
1.3. Risk
management
1.4. Financial
and economic
performance
+
Page
of the Report
1.1.1. Export volume, USD billion
6, 40, 46
1.1.2. Export structure by regions, %
30
1.1.3. Total cost of long-term export contracts (export portfolio), USD
billion (in comparable prices)
6, 8, 40
1.1.4. Export portfolio dynamic with three-year hindsight
(in comparable prices) in the reporting year (to the value of the first
year preceding the three-year period), %
40
1.1.5. Number of customers by regions
6, 30
1.1.6. Availability of material accounts abroad
1.1.7. Share of book transfer deliveries in the total deliveries, %
1.5. Data on accrued 1.5.1. Interest expenses, RUR million
and paid dividends,
1.5.2. Dividends paid to the shareholder, RUR million
interest expenses
48
50
1.5.3. Accrued dividends, RUR million
50
1.6.1. Taxes accrued and paid, total, RUR million
51
1.6.2. Taxes accrued and paid to the regional and federal budgets, RUR
million
51
7, 10, 40
1.6.3. Taxes accrued and paid, by types of taxes, RUR million
51
40
1.6.4. Payments to extra-budgetary funds, RUR million
51
1.6. Payments to
budgets and extrabudgetary funds
111
112
TENEX Annual Report
2014
2.1. Development
of production base
2.1.1. Share of own transportation equipment in use for uranium
product delivery
Appendix No. 3
Page
of the Report
44
4.1. Provision of
qualified staff
2.1.2. Programmes of diversification of uranium product shipment points 43
Page
of the Report
4.1.1. Number of students who completed an internship
74
4.1.2. Number of students taken on by results of internship
74
4.1.3. Share of employees with core education
70
4.1.4. Number of employees with academic degree
70
4.1.5. Number of employees with an MBA
70
2.2. Internal
2.2.1. Availability of general licences for export of uranium product
programme
2.2.2. Number of completed single licences for export
of export
control, licensing
2.2.3. Number of completed customs documents
and customs support
2.2.4. Volume of declaring at regional customs, %
26, 42, 44, 84
45
4.1.6. Share of employees who have worked in the Company more than 71
five years
2.3. Radiation safety
2.3.1 Control measures
85
4.1.7. Human resources management projects
73–74
2.3.2. Number of material violations revealed by control activities
85
4.2.1. Number of employees in personnel reserve
76
3.1. System of key
performance
indicators (KPIs)
3.1.1. Set KPIs
56
4.2. Building
up and use
of succession pools
77
3.1.2. Set KPI accomplishment level
56
4.2.2. Number and share of employees appointed to vacant positions
from the personnel reserve
72
3.2.1. Implemented international management standards
65–69
4.3. Share
of specialists up
to 35 years of age
4.3.1. Share of employees under 35 years old
3.2. Development
of management
systems
4.4. Average age
of employees
4.4.1. Average age of employees (by category)
72
4.5. Remuneration
4.5.1. Total amount of wage fund
73
4.5.2. Average wage as compared to average wage in Moscow
73
4.5.3. Minimum wage as compared to minimum wage in Moscow
73
4.6. Non-state
pensions
4.6.1. Number of employees benefiting from non-state pensions
92
4.6.2. Expenditures for non-state pensions
92
4.7. Total expenses
for personnel
4.7.1. Overall personnel expenses, RUR
73
4.7.2. Personnel training expenses, total, RUR
74
4.7.3. Personnel training expenses per employee of average staff
number, RUR
74
4.8. Expenditures for 4.8.1. Total expenditures for social benefits programmes
social programmes
4.8.2. Expenditures for social benefits programmes per employee
for employees
of the actual payroll staff number
91
3.3. Procurement
management
45
45
3.2.2. Results of audits confirming compliance of management systems 7, 66, 67, 68, 69
with the international standards
3.2.3. Audits of producers by foreign customers
67
3.2.4. Overall index of customer satisfaction, %
67–68
3.3.1. Tools used to improve openness and transparency of procurement 64–65
3.3.2. Amount of saved funds due to open competitive procurements
procedures (in % and in roubles)
65
3.4.1. Volume of credit portfolio, RUR billion
63
3.4.2. Average weighted value of credit portfolio, %
63
3.4.3. Average effective interest on attracted loans, %
63
3.5.1. Projects of improvement of the governance system
16
3.5.2. Observance of the Code of Corporate Conduct54
106
3.5.3. Information on equity capital
26
3.5.4. Information on shareholders
26
3.5.5. Information on the auditor and registrar
26
4.8.3. Expenditures for veterans’ support
91
3.5.6. Information on subsidiaries
26
4.8.4. Expenditures for voluntary medical insurance
91
3.5.7. Number of Board of Directors meetings
17
4.8.5. Expenditures for insurance against injuries and illnesses
92
3.5.8. Information about decisions made by the Board of Directors
143
4.9.1. Lost Time Injury Frequency Rate (LTIFR)
90
3.6. Internal
control and audit,
prevention
of corruption
3.6.1. Number and results of audits, including those conducted by the
Internal Control and Audit Service
77–78
4.9.2. Number of employees trained in labour protection
in a specialised organisation
90
3.6.2. Violations of contractual terms
6, 78, 79
4.9.3. Number of employees who passed medical examination
90
3.7. Fulfilment
of the national
legislation
3.7.1. Nuclear material control and accounting
78
4.9.4. Number of violations revealed by oversight bodies
90
3.7.2. Labour protection
90
5.1.1. Expenditures for ecology charity initiatives
95
5.1.2. Personnel involvement in charity actions
92–93
3.4. Finance
management
3.5. Corporate
governance
54Not disclosed due to recommendations of the Central Bank of the Russian Federation No. 06-52/2463 of 10.04.2014 on application of the Code of Corporate
Governance.
4.9. Labour
protection
5.1. Charity
91
113
114
TENEX Annual Report
5.2. Corporate
culture
2014
Appendix No. 3
Page
of the Report
5.2.1. Personnel engagement rate, %
6, 10, 92
5.2.2. Mechanisms by means of which employees could influence
decision-making, including Awareness Days
96
Aspect 6. Information openness
Specific standard disclosures
G4-LA2
Benefits provided to full-time employees that are not provided
to temporary or part-time employees, by significant locations
of operation
69
+
G4-LA3
Return to work and retention rates after parental leave, by gender 72
+
Aspect: Labour/Management Relations
6.1. Development
of communications
6.1.1. Information resources
96
6.1.2. Advertising and image-building policy
97
6.2. Public reporting
system
6.2.1. Improvement of reporting system
100
Aspect: Occupational Health and Safety
6.2.2. Interaction with stakeholders during preparation of public reports
100–103,
105–108
DMA
G4-LA6
G4-32
G4-LA4
Page
Auditors’
of the Report assurance
Aspect: Economic performance
DMA,
G4-EC3
Coverage of the organisation’s defined benefit plan obligations
91–92
+
G4-EC4
Financial assistance received from government
48
+
73
+
Ratios of standard entry-level wage by gender compared to local
minimum wage at significant locations of operation
Significant indirect economic impacts, including the extent of impacts
31–32
+
84
+
Aspect: Energy
DMA
Type of injury and rates of injury, occupational diseases, lost days, 72, 90
and absenteeism, and total number of work-related fatalities,
by region and by gender
DMA
G4-LA10
Programmes for skills management and lifelong learning that
support the continued employability of employees and assist
them in managing career endings
75–76
+
DMA
G4-LA11
Percentage of employees receiving regular performance and career 70
development reviews, by gender and by employee category
G4-LA12
Composition of governance bodies and breakdown of employees 72
per employee category according to gender, age group, minority
group membership, and other indicators of diversity
G4-EN6
Reduction of energy consumption
87
+
Aspect: Labour Practices Grievance Mechanisms
86
+
Aspect: Water
G4-LA16
Monetary value of significant fines and total number of non82–83
monetary sanctions for non-compliance with environmental laws
and regulations
+
Aspect: Transport
82, 84, 86
G4-LA1
Total number and rates of new employee hires and employee
turnover by age group, gender, and region
73
+
69
+
79
+
G4-SO3
Total number and percentage of operations assessed for risks
related to corruption and the significant risks identified
79
+
G4-SO4
Communication and training on anti-corruption policies
and procedures
79
+
Aspect: Product and Service Labelling
67
G4-PR4
Total number of incidents of non-compliance with regulations
40, 66, 68–69
and voluntary codes concerning product and service information
and labelling, by type of outcomes
+
DMA
G4 -PR5
Results of surveys measuring customer satisfaction
67–68
+
40
+
+
Aspect: Employment
DMA
Number of grievances about labour practices filed, addressed,
and resolved through formal grievance mechanisms
DMA
+
Aspect: Overall
Total environmental protection expenditures and investments
by type
+
Aspect: Anti-corruption
Aspect: Compliance
DMA
G4-EN31
+
Aspect: Equal Remuneration for Women and Men
DMA
Ratio of basic salary and remuneration of women to men
G4-LA1355 by employee category, by significant locations of operation
Significant environmental impacts of transporting products
and other goods and materials for the organisation’s operations,
and transporting members of the workforce
+
+
+
DMA
G4-EN30
75
75
86, 87
DMA
G4-EN29
+
Average hours of training per year per employee by gender,
and by employee category
Energy consumption within the organisation
Total water withdrawal by source
+
G4-LA9
G4-EN3
G4-EN8
69
Aspect: Diversity and Equal Opportunity
Aspect: Indirect Economic Impacts
DMA,
G4-EC8
Minimum notice periods regarding operational changes,
including whether these are specified in collective agreements
Aspect: Training and Education
Aspect: Market presence
DMA,
G4-EC5
Page
Auditors’
of the Report assurance
69
+
Aspect: Compliance
71
+
G4-PR9
Monetary value of significant fines for non-compliance with laws
and regulations concerning the provision and use of products
and services
55 It is disclosed partially, since remuneration of the employees does not depend on gender, but is instead defined in accordance with provisions of the uniform
sectoral remuneration systems and consists of the wage and monthly-integrated incentive, as well as an annual bonus.
115
116
G4-33
TENEX Annual Report
2014
Appendix No. 4
Appendix No. 4.
Public Assurance Statement on the Report
Background
The management of TENEX (hereinafter
referred to as “the Company”) suggested
that we verify the 2014 Public Annual
Report of the Company (hereinafter
referred to as “the Report”) in terms
of the completeness and materiality
of the information it discloses as well
as the effectiveness of the management
reaction to the stakeholders’
recommendations. For this purpose,
we were given an opportunity to take part
(in correspondence format) in the discussion
of the Report Concept (October–November
2014), the draft Report (public consultations,
08.04.2015–17.04.2015) and the final version
of the Report (08.05.2015–15.05.2015),
and to freely express our opinion
on the issues discussed.
Draft Report assessment procedure
Our statement is based on the review
of two revisions of the Report which
were sent to us in advance via e-mail –
the draft Report and its final version.
Our statement is also based on
the analysis of the information included
in the Accounting Table of Stakeholder
Recommendations and Requests.
The verification of the credibility
of the factual data provided in the Report
is not subject to public assurance.
Our work results are formatted as this
Public Assurance Statement, which
contains judgments that we unanimously
agreed upon. We observe the ethical
requirements of independence and
the objectivity of assessments and express
our personal expert opinion, not
the opinion of organisations we represent.
We did not receive any reward for our effort
or time spent on this work.
Assessments, comments, and recommendations
We take into account and acknowledge
as a merit that the Report has been
prepared in accordance with the Core
option on new version of G4 Guidelines
of sustainability reporting (Global
Reporting Initiative, GRI). At the same time,
verification of a degree of conformance
of the Report to reporting standards
is not the task of this statement.
We are unanimous in our positive
assessment of the Report. The Company
has written an informative and wellstructured document that meets
our expectations. A doubtless merit of
the Report is its considerably renovated
structure and compactness of providing
information not at the expense of content.
Deserves attention the address from
the Chairman of the Public Reporting
Committee to the readers, which
was published here for the first time,
to describe the Company’s approaches
to building up public reports and
the optimisation of interaction with
the stakeholders.
The Report presents in detail the outcomes
of the core business in 2014 in the context
of sustainable development, analyses
impacts of the changed political
and economic situation on contracting
and sales processes, as well as financial
results of the Company’s activity,
and describes in detail the competitive
environment and position of the Company
in the Russian nuclear industry. Indicators
are given predominantly in a three-year
hindsight format.
We deem it necessary to underline
the creative approach demonstrated by
the Company’s management to organise
interaction with stakeholders, which
is based on the seek to reduce time
and effort of both the Companys’ specialists
and stakeholders during the Report drafting
process.
Traditionally, we would like to especially
mark the Company’s work on involvement
in the Report drafting process,
and primarily in the concept discussion
stage a broad range of stakeholders,
including partners of the Company
from the largest foreign companies.
As in the previous reporting campaign,
we use this criterion to single out
the Company among other nuclear industry
organisations.
Based on the analysis conducted, we have
reached the following conclusions.
Materiality of the information
The Report covers all revealed in the
course of stakeholders’ questionnaire
essential for the stakeholders topics both
in key activities and the social, economic,
and environmental aspects of sustainable
development.
The assessment methodology of material
aspects based on the requirements
of GRI G4, proposed by the Company,
allowed to accommodate Company
and stakeholders’ opinions. In our view,
there are no reasons for doubts
in credibility and topicality of results
of these aspects ranking.
The sections of the report which are
of particular interest are those that disclose
aspects of business stability, position
of the Company on the global market,
financial and economic effectiveness,
development of the transportation
and logistics infrastructure, and human
resource management.
Completeness of the information
In our view, the information in the Report
is provided in the scope necessary
for the stakeholders to gain deep insight
into the current state and development
prospects of the Company. The engagement
of an independent auditor to assure
the declared information disclosure
level (GRI, version G4, Core option)
and its credibility meets with approval.
The Company’s response to stakeholder recommendations
The Company fixed of stakeholder
recommendations, analysed them, and took
account of them in the final version
of the Report. Amendments were made
to some Report sections, such as Section
1.4. “Corporate Governance and Control
System”, Section 1.7. “The Company
in the Global Uranium Market”, Section 1.8.
“The Company in the Nuclear Industry”,
Section 3.1. “Contracting and Sales”,
and Section 4.2. “Risk management
and Development of Compliance System”.
Therefore, the Company demonstrated
a constructive attitude to stakeholder
recommendations.
Noting the traditionally high quality
of the Company’s interaction with
the stakeholders, we would like to express
our hope that the experience gained
will be used to the full extent in future
activities in the field of communications,
the enhancement of management tools,
and the development of the corporate
culture.
117
118
G4-33
TENEX Annual Report
2014
Appendix No. 5
Appendix No. 5
2
Introduction
NP CONSULT
CONSULTING AND AUDIT GROUP
The subject of assurance is the Public Annual Report of TENEX (hereinafter referred
to as “the Report”) for the period from 01 January until 31 December 2014.
This statement is intended for the management and stakeholders of TENEX (hereinafter
referred to as “the Company”).
Responsibilities of the Parties
The management of TENEX shall bear full responsibility for the compilation
and credibility of the said Report.
We shall be responsible for outcomes of the Report assurance activity only to TENEX
in the scope of the task order agreed with the Company and do not assume any responsibility
to any third party.
Assurance scope, criteria, and level
STATEMENT
on Results of Independent Assurance
of Public Annual
Report of TENEX for 2014
Moscow
The Report was assessed against the following criteria:
• manner and level of observance by TENEX of the principles of the AA1000
Accountability Principle Standard 2008, i.e., inclusivity (engagement), materiality,
and responsiveness;
• compliance of the Report with requirements of the Sustainability Reporting Guidelines
Global Reporting Initiative (Core option “in accordance” with GRI G4 Guidelines);
• compliance with the requirements of the Russian Federation legislation to Joint Stock
Companies annual reports with regard to information to be disclosed;
• compliance with TENEX regulations in the field of public reporting.
Our check was planned and conducted in accordance with the AA1000 Assurance
Standard 2008 and International Standard ISAE 3000 “Assurance Engagements Other than
Audits or Reviews of Historical Financial Information”.
The assurance corresponds to Type 2, as per the АА1000 Assurance Standard 2008
definition given the limitations indicated in the “Assurance Boundaries” section of this
statement.
In rendering the services, we observed the following assurance level requirements:
• moderate, as per AA1000 AS 2008,
• limited, as per ISAE 3000 “Assurance Engagements Other than Audits or Reviews
of Historical Financial Information”.
A random verification of the Report information we carried out in terms of the abovementioned assurance levels shall not pretend to ensure a high level of assurance guarantee.
Our assurance effort was based on the supporting information provided by the Company
management and employees, data from accessible sources, and analytical verification
methods. Regarding the quantitative information contained in the Report, the work done
cannot be considered sufficient for finding all possible errors and distortions. Nevertheless
the evidence we collected is sufficient to formulate our opinion in accordance with the abovementioned assurance levels.
119
120
TENEX Annual Report
2014
Appendix No. 5
3
Assurance methodology
•
•
•
•
•
•
•
•
•
•
•
•
•
During the work we implemented the following procedures:
studying and randomly testing systems and processes implemented by TENEX with
the aim to ensure and analyse compliance of its activity with principles of AA1000
APS 2008, as well as sustainability performance management;
holding interviews with representatives of the top management of TENEX, as well
as management representatives engaged in the Report preparation process;
collecting evidence supporting the practical implementation of systemic processes
realising principles of AA1000 APS 2008;
holding interviews with the Company employees and reviews of documents
and statements made by the management to obtain evidence of the Company’s activity
compliance with principles of AA1000 APS 2008;
studying Public Assurance Statement on the Report;
studying information on activities in the sustainability context posted on TENEX’s
website;
studying published third parties’ statements on economic, environmental, and social
aspects of the Company’s activities to verify the validity of statements made
in the Report;
conducting a comparative analysis of the Company’s Report against reports of foreign
companies within a similar market segment;
analysing internal audit processes of non-financial reporting employed by the Company;
randomly studying documents and data on the performance of Company’s management
systems of the economic, environmental, and social aspects of sustainable development;
studying existing processes of collection, processing, documenting, transfer, analysis,
and selection of data to be included in the Report;
checking the adequacy of assertions, statements, and data included in the Report;
analysing the Report information for its compliance with the criteria above.
Assurance boundaries
The assurance is limited by the time frames of the reporting period (01.01.2014–
31.12.2014).
In regard to quantitative performance indicators is conducted the conformance
assessment of data of the audited financial statements, as well as external and internal reports
on other production and economic, environmental, and social aspects of activity, with which
we were kindly provided.
The assurance was not carried out with respect to neither statements of a forwardlooking nature, nor statements expressing the views, opinions and intentions of TENEX
to take any future actions.
The assurance was not carried out with regards to statements that are indicated
in the Report as expert judgments.
The in-field audit procedures were limited to visits to TENEX.
The assurance was carried out only based on the Report revision provided in the Russian
language in MS Word format.
We were unable to verify the fact of the Report publication in its final revision
on the corporate website of TENEX, because the date of signing this statement came earlier
than the date of the planned publication of the Report on the Company’s website. Similarly,
we cannot confirm the fact of publication of the Annual Report of JSC SPb IZOTOP for 2014
on its website.
4
Conclusions
The conclusions below are based on our assurance engagement done within the scope
and boundaries described above.
1. On the whole, the Report adequately reflects the implemented management
mechanisms and performance indicators of TENEX regarding activities
on economic, social, and environmental aspects of the sustainable development.
2. As a result and within the boundaries of the work we performed, we did not find
any material misstatements related to the Report information disclosing TENEX’s
sustainable development activities and their results.
Manner and level of observance of principles of AA1000 APS 2008
As a result and within the boundaries of the work we performed, we did not find
any material non-compliance with criteria of AA1000 APS 2008 relating to observance
of its principles (inclusivity, materiality, and responsiveness).
Compliance of the Report with requirements of the Sustainability Reporting
Guidelines (Core option of preparing the Report “in compliance” with GRI G4
Guidelines)
To formulate our opinion on this issue, we analysed the Report’s compliance with
the GRI G4 Guidelines, requirements in regard to the principles and standard disclosure
elements for the Report to be prepared “in compliance”.
Principles for defining the Report content
Materiality
• The materiality assessment of aspects disclosed in the Report is based on questionnaires
of representatives of external and internal stakeholders of TENEX.
• The Report information covers topics and performance indicators that reflect material
impacts of TENEX on the economy, environment, and society, or those that may
significantly influence the assessments and decisions of stakeholders.
• The Report addresses main topics raised in reports from similar profile foreign
companies.
Stakeholder inclusiveness
• Within the Report, TENEX provided information on stakeholders and mechanisms
of taking into account their interests when defining the content of the Report.
• Representatives of a broad circle of stakeholders, including the Company’s foreign
partners, took part in the discussion of the Report Concept and public consultations
on the draft Report.
121
122
TENEX Annual Report
2014
Appendix No. 5
5
Sustainability context
• The Report presents TENEX activities results in a broad sustainability context that
considers various aspects of productive and economic, social, and environmental
nature.
Completeness
• Within the declared boundaries, the Report covers the information of activities
of TENEX with a sufficient degree of completeness.
• Information on the environmental and social impact of JSC SPb IZOTOP (which
is the most material TENEX’s subsidiary in terms of the stated aspects of activities)
presented in the annual report of JSC SPb IZOTOP for 2014; the electronic version
is referenced in the report.
Principles ensuring the Report quality
Balance
• The Report is well balanced and reflects both activity results and outstanding issues.
Comparability
• The comparability of the Report with the non-financial reports of other organisations
is ensured by the use of GRI G4 Guidelines as the basis for the disclosure of performance
indicators in the sustainability context.
• The comparability of the financial information with regard to the reports of other
companies is not fully ensured due to the use of requirements from the Russian
accountability legislation (rather than international accounting standards)
for the disclosure of financial information.
• Most of the numerical indicators are given in three-year dynamics which allows
the analysis of trends of the Company’s business development.
Accuracy
• The accuracy of factual information presented in the Report is sufficient to enable
stakeholders to assess the results of TENEX’s activities in the sustainability context.
• The performance indicators calculation is based on methodologies approved in the GRI
G4 recommendations and the Public Reporting Standard of TENEX, which is based
on the methodology of ROSATOM.
Timeliness
• The Report was prepared in order to be submitted to the Annual Shareholders’
Meeting.
Clarity
• On the whole, the information presented in the Report is clear and understandable
for different groups of stakeholders.
• The Report includes a Glossary and a List of Abbreviations, which make it easier
for users to understand the Report’s information.
6
Reliability
• The performance information presented in the Report is based on internal reporting
documents, as well as reports submitted to the controlling bodies.
• The issues of the inspection’s efficiency and of the procedure for writing non-financial
accounting reports are in the jurisdiction of the Internal Control and Audit Service.
Over the course of the check, we were kindly provided with the conclusion on findings
of the audit conducted on the processes of compilation of the Report for 2014.
• We did not find any facts questioning the reliability of the Report information.
General standard disclosures
• Disclosure of general standard elements was provided, on the whole, with
compliance to the requirements of GRI G4 declared option of the Report preparation
“in compliance”.
Information on management approaches
• The Report mainly reflects the information on management approaches to material
aspects of economic, social, and environmental areas.
Indicators
• All indicators necessary to fulfil the requirements to the Core option of the Report
preparation “in compliance” with G4 Guidelines are given in the Report in observance
of the indicators of GRI G4.
• Also, other indicators are disclosed in the Report, including indicators with excluded
information described in the Table of Elements and Indicators of Public Reporting
Disclosures.
Overall assessment of the Report
• As a result and within the boundaries of the work done, we have not found material
deviations from the requirements to the Core option of the Report preparation
“in compliance” with GRI G4 Guidelines.
Observance of requirements of the Russian Federation legislation to annual reports
of joint stock companies regarding disclosed information
Based on the work done, we have not found material inconsistencies of the Report
to the requirements of “Provision on the information disclosure by issuers of emissive
securities” (approved by the Bank of Russia, No. 454-P of 30.12.2014) as regards the disclosure
of information in the annual report of a joint stock company.
Observance of requirements of the public reporting regulations of TENEX
Based on the work done, we have not found material inconsistencies of the Report
to the requirements of the Public Reporting Standard of TENEX.
Recommendations
1. The disclosure of GRI indicators is reasonable to exercise with a link to the target
values as well as future plans.
123
124
TENEX Annual Report
2014
Appendix No. 6
G4-15
125
Appendix No. 6.
Membership in Professional Organisations and Associations
G4-16
7
2. To increase the disclosure level of indicators, for which GRI protocols are not fully
considered (partial disclosure).
3. To take account of comments contained in the above sections of this statement.
Competence and independence statement
CJSC NP Consult is an independent audit organisation that professionally renders
assurance services. CJSC NP Consult is a member of the self-regulatory organisation
of auditors, the Institute of Professional Auditors, and acts in accordance with the Code
of Ethics for Professional Accountants IFAC. The company employs the audit service quality
control system that includes the control of observance of ethical norms.
CJSC NP Consult officially states that this Statement represents an assessment made
by an independent auditor. Neither CJSC NP Consult nor its employees have relations with
TENEX, or its subsidiaries, which could lead to a conflict of interests while rendering the
Report’s assurance services.
CJSC NP Consult is an organisational stakeholder of GRI, a licensed provider
of assurance services as per the AA1000 AS.
The team that renders sustainability reporting assurance services includes CJSC NP
Consult specialists who have the necessary expertise in rendering audit services, writing
reports in accordance with GRI, as well as GRI G4 certificates. The project manager performed
his training in the assurance of sustainability reporting in the Accountability Training Centre
and has a LCSAP Certificate.
General Director
of CJSC NP Consult
Organisation/
association
Description of organisation/
association
1.
World Nuclear
Association (WNA)
The most representative international
association that unites manufacturers
and consumers of NFC products and
services, engineering, reactor building,
and shipping companies operating
in the nuclear area. The association
annually holds international symposia
and conferences, issues analytical
reviews and long-term forecasts
on the development of the global nuclear
power and uranium market.
2.
Nuclear Energy
Institute (NEI)
The largest US association of nuclear
Membership since 2008 power and industry organisations.
Established in 1994 with the aim
to represent the collective interests
of the nuclear community’s in
interactions with government authorities
and international organisations.
The NEI membership includes both
main US nuclear market participants
and a majority of foreign companies
represented in the global NFC market.
3.
International
Organisation
of the World Nuclear Fuel
Market (WNFM)
An international association of consumers, Membership since 2001
producers, and suppliers of NFC products
and services, established in 1974 with
the aim to facilitate the development
of trade in nuclear materials for the
nuclear power and industry needs. WNFM
members include 93 companies from 20
countries.
4.
Japan Atomic
Industrial Forum
(JAIF)
A non-profit, non-governmental
Associated membership
association of Japanese utilities, nuclear since 1998
industrial equipment producers,
construction firms, research and scientific
laboratories. It annually holds
representative conferences, gathering
more than 1,000 nuclear power experts,
including permanent members of JAIF
and representatives of international
organisations, as well as state and local
authorities of Japan.
5.
Korea Atomic
Industrial Forum
(KAIF)
An international non-profit association,
whose members include approximately
since 2004
90 Republic of Korea and foreign nuclear
organisations. It publishes information
and analytical bulletins, holds a number
of annual training sessions on the nuclear
technology development issues; jointly
with the Republic of Korea Nuclear
Society, it holds annually an international
conference, which is the platform that
the world NFC market participants use
to identify and discuss promising areas
of cooperation.
№
V. Yu. Skobarev
Moscow
May 8, 2015
TENEX involvement
Membership since 1991. Accession
to WNS means that one agrees
with its Charter of Ethics, which
defines its values, basic principles,
and institutional and legal bases
of activities, as well as key challenges
of the nuclear industry:
http://www.world-nuclear.org/WNA/
About-WNA/Charter-of-Ethics/
G4-56
126
TENEX Annual Report
2014
Appendix No. 7
G4-2
Organisation/
association
Description of organisation/
association
All-Russia sectoral
association of employers
“Union of Employers
in Nuclear Industry,
Power and Science
of Russia” (UE NIPS of
Russia)
A non-profit organisation of Russia’s
employers operating in nuclear power,
industry, and science. UE NIPS members
include more than 50 enterprises
and organisations within the ROSATOM
structure. UE NIPS of Russia is a member
of the Russian Trilateral Commission
for the Regulation of Social and Labour
Relations.
Membership since 2007
7.
World Nuclear Transport
Institute (WNTI)
An international nuclear organisation
that represents the collective interests
of companies that ship nuclear materials
and render safe, reliable, and efficient
transportation services.
resumed since 2012
8.
Non-Commercial
Partnership “Corporate
Counsel Association”
(NP “RCCA”)
A non-profit organisation established with Membership since 2013
the aim to facilitate the advancement
of proficiency in law and the training
of corporate lawyers.
№
6.
TENEX involvement
Appendix No. 7.
Response to Key Strategic and Financial Risks
Risk
Response
Commodity pricing risk
Forming a pricing policy aimed at risk preparedness observance (in the future,
with involvement of the portfolio analysis methods and tools). Maintaining
an optimum balance between the market-oriented and escalated (inflationary
growth) pricing in contracts. Reaching agreements with suppliers on pricing
mechanisms that “mirror” the pricing mechanism of contracts featuring high
commodity risks.
Commodity volume risk
Preliminarily working out of future order volumes to be contracted with buyers.
Assessment of future buyers’ order volumes based on interaction history
and market situation. Setting quantity flexibilities and options that harmonise
volumes of procurements and sales in contracts with suppliers of U3O8, conversion,
and SWU. Creation of mechanisms that ensure supplies.
Market capacity
reduction risk
Geographic diversification of exports with a focus on growing markets, including
the diversification of shipping points (Subsection 3.2.1.). Active marketing
in the market of fuel for newly built reactors, including alliances with foreign
companies to offer packaged services.
Competitive
environment risks
Raising non-price competitiveness through rendering packaged services
to consumers and finding new forms and tools of strategic marketing
(Section 2.3.). The work to achieve trading regimes in countries and regions
featuring trade restraints that are acceptable and appropriate for the Company’s
competitiveness. Signing of uranium enrichment contracts with foreign suppliers
in terms of the industrial cooperation.
Political risks
Development and implementation of action plans in case of imposition
(aggravation) of politically motivated sanctions. Obtaining general export licences
(Section 4.2.). Consideration of political interests of the target market states.
Perception risks
(“reputation risk”)
Improvement of the Company’s business processes, QMS (Subsection 4.6.1.),
SCSMS (Subsection 4.6.3.), and information security management to impeccably
meet the Company’s commitments and maintain a reliable supplier image.
Inviolable observance of the pacta sunt servanda principle. Continuous interaction
with the customers and other stakeholders as justification of the Company’s
fulfilment of its commitments, irrespectively of political or market factors.
Development of a poly-variant transportation and logistics chain. Deployment
and practical observance of anticorruption measures (Section 4.10.).
Planned deal cancellation
risk
Reaching of compromise with consumers concerning changes of product delivery
dates on conditions altered after the Fukushima-Daiichi accident as the best
alternative to deal cancellation. Accounting of planned deals in the Company’s
performance indicators after a reasonable confidence in their feasibility has been
reached.
127
128
TENEX Annual Report
2014
Appendix No. 8
Appendix No. 8.
Accounting (Financial) Statements
Response to key financial risks
Risk
Response
Currency risk
To reduce the Company’s foreign exchange exposure, “natural” hedging
of the currency risk through concluding loan agreements and goods and services
procurement (when possible) using the currency of the deal. Hedging
of the currency risk based on the financial market instruments: currency forwards
and/or options (hedging of the currency risk helped to narrow the AFCF volatility
spread by 1.5 times in the reporting year).
Credit risks (failure to pay to
the Company)
Risks of loss of liquidity
Risk of failure to attract
required loans
Interest risk
Statement of Financial Position
Form of OKUD
Date (day, month, year)
Organisation
Maintaining the high level of diversification of lending banks. Participation
in the uniform sectoral liquidity management system (cash pooling of
JSC Atomenergoprom).
TIN
Type of economic
activity
agency business, trade, production
31 12 2014
08843672
7706039242
of
OKVED
Form of incorporation / type of ownership
of OKOPF /
OKFS
Joint Stock Companies / property of Public Corporation
Unit of measure:
0710001
of OKPO
Taxpayer Identification Number
Since 2009, the Company has annually insured its credit risks with respect
to contractors who are consumers of uranium products (business risk).
In 2014, the Company developed the method of usage of combined credit risk
management system:
• inclusion of terms providing for transition to guaranteed payment modes
(advance payment, letter of credit, bank securities, etc.) in all new and altered
contracts in case of excess in the credit risk level estimated using a methodology
for analysis of financial standing and qualitative characteristics of a contractor’s
business continuity threshold credit risk; and
• insurance of the residual risk of contracts without terms of transition
to guaranteed payment modes.
Control over the observance of covenants (obligations to lending banks to keep
the Company’s indicators within the range they pre-set). Reconcile the required
uranium reserves with the Company’s borrowing power. Distribution of risks
among the Company and other ROSATOM entities who are the Company’s
contractors (Section 4.3.).
Codes
as of 31 December 2014
RUR thousand
51.55.3
12247
of OKEI
384
Location (address)
28, bld. 3, Ozerkovskaya naberezhnaya, Moscow 115184, Russia
Note
Indicator
As of 31
Code D
ecember
2014
As of 31
December
2013
As of 31
December
2012
ASSETS
I. NON-CURRENT ASSETS
Sec. 6.1 EN
Intangible assets
1110
7,108
9,913
10,047
Results of research and development
1120
–
–
–
Intangible development assets
1130
–
–
–
Tangible development assets
1140
–
–
–
Property, plant and equipment
1150
467,723
472,947
496,424
Buildings, machinery, equipment,
and other
1151
467,723
472,848
474,835
Capital investments in progress
1152
–
–
21,589
Advances paid to suppliers
and contractors of capital projects,
suppliers of fixed asset items
1153
–
99
–
Income yielding investments into
tangible assets
1160
–
–
–
Long-term financial investments
1170
9,446,219
11,269,581
14,728,245
Deferred tax assets
1180
68,765
47,983
46,002
Other non-current assets
1190
763,069
277,453
308,261
Total of Section I
1100
10,752,884
12,077,877
15,588,979
II. CURRENT ASSETS
Sec. 6.3 EN
Inventory
1210
19,370,948
22,462,402
21,117,825
Maintaining an optimal balance between fixed and floating interest rates for loans.
Holding tenders when attracting loans.
Sec. 6.2 EN
Sec. 6.4 EN
Sec. 6.7 EN
Raw materials and other similar
inventories
1211
8,742,245
2,568,656
46,129
Work-in-progress
1212
6,560,149
12,764,006
13,085,569
Finished goods and goods for resale 1213
240,960
1,802,660
2,184,454
Goods dispatched
3,827,594
5,327,080
5,801,673
1214
61
129
130
TENEX Annual Report
2014
Appendix No. 8
As of 31
Code D
ecember
2014
As of 31
December
2013
As of 31
December
2012
Note
1219
–
–
–
VAT on purchased items
1220
1,856,044
5,468,805
5,299,055
Accounts receivable
1230
34,326,852
39,034,955
32,409,234
Trade receivables
1231
25,926,924
15,686,699
18,558,587
Advances given
1232
214,390
185,734
537,259
Other receivables
1233
8,185,538
23,162,522
13,313,388
Non-called accrued revenue
1234
–
–
–
Sec. 6.4 EN
Short-term financial investments
(excluding cash equivalents)
1240
5,676,327
2,411,869
1,095,750
Sec. 6.6 EN
Cash and cash equivalents
1250
1,234,710
2,533,461
1,254,239
Other current assets
1260
23,244
52,692
39,844
Total for Section II
1200
62,488,125
71,964,184
61,215,947
BALANCE
1600
73,241,009
84,042,061
76,804,926
Equity (share capital, charter capital,
contributions of participants )
1310
638,119
638,119
638,119
Treasury shares
1320
–
–
–
Contribution to equity received from
shareholders (participants) before
registration of changes to articles
of association
1330
–
–
–
Revaluation of non-current assets
1340
–
–
–
Additional capital (without revaluation) 1350
–
–
–
Reserve capital
1360
31,906
31,906
31,906
Statutory reserves
1361
31,906
31,906
31,906
Reserves formed in accordance
with articles of association
1362
–
–
–
Retained earnings (uncovered loss)
1370
22,256,970
19,926,322
24,794,705
Total for Section III
1300
22,926,995
20,596,347
25,464,730
Note
Indicator
Other inventories and costs
Sec. 6.7 EN
As of 31
Code D
ecember
2014
As of 31
December
2013
As of 31
December
2012
Payables to state non-budgetary
funds
1524
139
95
–
Taxes and dues payables
1525
1,599
2,009
2,538
Other payables
1526
3,879,818
21,248,188
9,365,742
Deferred revenues
1530
–
–
–
Sec. 6.13 EN
Estimated liabilities
1540
443,867
436,443
482,096
Settlements with shareholders
on equity
1545
–
–
–
Special purpose financing
1546
–
–
–
Advances from customers
1547
–
–
–
Other payables
1550
–
Total for Section V
1500
48,383,367
57,867,520
42,091,293
Total for Section V
1700
73,241,009
84,042,061
76,804,926
Indicator
BALANCE
LIABILITIES
III. EQUITY AND RESERVES
(signature)
20 February 2015
IV. FIXED LIABILITIES
Sec. 6.12 EN
Loans and borrowings
1410
1,875,280
5,454,867
9,111,810
Deferred tax liabilities
1420
–
–
–
Estimated liabilities
1430
–
–
–
Sec. 6.9 EN
Other liabilities
1450
55,367
123,327
137,093
Total for Section IV
1400
1,930,647
5,578,194
9,248,903
V. CURRENT LIABILITIES
Sec. 6.12 EN
Loans and borrowings
1510
37,237,280
29,292,065
24,041,230
Sec. 6.9 EN
Accounts payable
1520
10,702,220
28,139,012
17,567,967
Trade payables
1521
6,813,509
6,769,175
8,114,073
Advances received
1522
7,044
119,488
84,955
Wages and salary Payables
1523
111
57
659
Govorukhin
Valery Nikolayevich
Executive
Head
(full name)
Lysova
Galina Aleksandrovna
Chief
Accountant
(signature)
(full name)
131
132
TENEX Annual Report
2014
Appendix No. 8
Profit or Loss Statement for 2014
Note
Indicator
Code
January –
December 2014
January –
December 2013
2400
11,947,121
9,314,971
Codes
0710002
Profit for the year
31 12 2014
FOR INFORMATION
08843672
Result of revaluation of non-current assets not
included in the net profit (loss) for the period
2510
–
–
Result of other operations not included
in the net profit (loss) for the period
2520
–
–
Total profit/loss for the period
2500
11,947,121
9,314,971
Sec. 6.17 EN
Basic profit (loss) per share
2900
449
350
Diluted profit (loss) per share
2910
–
–
Form of OKUD
Organisation
of OKPO
TIN
Type of economic
activity
of
OKVED
of OKOPF /
OKFS
Unit of measure:
7706039242
RUR thousand
51.55.3
12247
of OKEI
61
384
Note
Indicator
Code
January –
December 2014
January –
December 2013
Sec. 6.15 EN
Revenue
2110
93,396,933
66,158,556
2111
93,205,684
65,828,887
2120
(58,836,861)
(47,067,498)
2121
(58,702,173)
(46,888,850)
Sec. 6.15 EN
including
nuclear industry products
Cost of sales
including
nuclear industry products
Gross profit
2100
34,560,072
19,091,058
Sec. 6.15 EN
Selling expenses
2210
(1,624,619)
(1,581,207)
Sec. 6.15 EN
Administrative expenses
2220
(1,837,574)
(1,852,511)
Results from operating activities
2200
31,097,879
15,657,340
Income from participation in other
organisations
2310
79,848
98,097
Interest income
2320
199,963
190,363
Interest expense
2330
(888,798)
(803,876)
Sec. 6.16 EN
Other income
2340
1,051,476
2,185,379
Sec. 6.16 EN
Other expenses
2350
(16,923,932)
(5,667,485)
2300
14,616,436
11,659,818
2410
(3,161,481)
(2,676,448)
2421
(233,463)
(360,619)
Sec. 6.14 EN
Profit before income tax
Income tax expense
including:
permanent tax liabilities (assets)
Sec. 6.14 EN
Changes in deferred tax liabilities
2430
14,258
11,848
Sec. 6.14 EN
Changes in deferred tax assets
2450
6,512
(9,867)
Other
2460
12,760
(3,260)
reallocation of income tax within consolidated
group of taxpayers
2465
458,636
332,880
Govorukhin
Valery Nikolayevich
Executive
Head
(signature)
20 February 2015
(full name)
Lysova
Chief
Accountant
(signature)
(full name)
133
2014
Codes
for 2014
Organisation
of OKPO
TIN
Type of economic
activity
31 12 2014
of OKOPF /
OKFS
RUR thousand
51.55.3
12247
of OKEI
–
Additional capital
Contribution to equity
received from shareholders (participants)
before registration
of changes to articles
of association
Reacquired
stock
638,119 –
–
Retained profits
(uncovered loss)
3100
Callable capital
Balance as of 31 December
2012
Code Equity
31,906
24,794,705
61
384
Total
25,464,730
Loss
3221
Х
Х
Х
Х
Х
–
–
property revaluation
3222
Х
Х
Х
–
Х
–
–
Expenses recognised directly
in equity
3223
Х
Х
Х
–
Х
–
–
decrease of par value of share
3224
–
–
Х
–
Х
–
–
shares number decrease
3225
–
Х
–
Х
–
–
reorganisation of legal entity
3226
–
–
–
–
–
–
–
Dividends
3227
Х
Х
Х
Х
Х
(14,183,354) (14,183,354)
contribution to equity before
registration of changes
to articles of association
3228
–
–
–
–
–
–
–
Additional Capital changes
3230
Х
Х
Х
–
–
–
Х
Reserve Capital changes
3240
Х
Х
Х
Х
–
–
Х
Balance as of 31.12.2013
3200
638,119 –
–
31,906
19,926,322
20,596,347
Total
3310
–
–
Х
–
–
11,947,121
11,947,121
net profit
3311
Х
Х
Х
Х
Х
11,947,121
11,947,121
3312
Х
Х
Х
–
Х
–
–
For 2014
Equity increase – total:
For 2013
Equity increase – total:
Code Equity
7706039242
1. Changes in equity
Indicator
Indicator
08843672
of
OKVED
Unit of measure:
0710002
Reacquired
stock
Form of OKUD
Callable capital
Statement of Changes in Equity
Retained profits
(uncovered loss)
Appendix No. 8
Additional capital
TENEX Annual Report
before registration
of association
134
including:
3210
–
–
–
–
–
9,314,971
9,314,971
including:
net profit
3211
Х
Х
Х
Х
Х
9,314,971
9,314,971
Х
Х
Х
–
Х
–
–
3212
Х
Х
Х
–
Х
–
–
gains recognised directly
in equity
3313
gains recognised directly
in equity
3213
Х
Х
Х
–
Х
–
–
additional share issue
3314
–
–
Х
–
Х
Х
–
increase of par value of share
3315
–
–
Х
–
Х
–
Х
additional share issue
3214
–
–
–
–
Х
Х
–
3316
–
–
Х
–
–
–
–
increase of par value of share
3215
–
–
–
–
Х
–
Х
–
–
Х
–
–
–
–
3216
–
–
–
–
–
–
–
industry reserves used
for investment purposes
3317
industry reserves used
for investment purposes
3217
–
–
–
–
–
–
–
3318
–
–
–
–
–
–
–
3218
–
–
–
–
–
–
–
Equity decrease – total:
3320
–
–
Х
–
–
(9,616,473)
(9,616,473)
Equity decrease – total:
3220
loss
3321
Х
Х
Х
Х
Х
–
–
Property revaluation
3322
Х
Х
Х
–
Х
–
–
including:
including:
–
–
–
–
–
(14,183,354) (14,183,354)
135
Expenses recognised directly
in equity
2223
Decrease of par value of share
3324
shares number decrease
3325
3326
dividends
Х
–
Х
Х
–
Retained profits
(uncovered loss)
Callable capital
Code Equity
Appendix No. 8
Additional capital
Indicator
2014
before registration
of association
TENEX Annual Report
Reacquired
stock
136
Х
–
Total
–
–
Х
–
Х
–
–
–
Х
–
Х
–
–
–
–
Х
–
–
–
–
3327
Х
Х
Х
Х
Х
(9,616,473)
(9,616,473)
3328
–
–
–
–
–
–
–
Additional Capital changes
3330
Х
Х
Х
–
–
–
Х
Reserve Capital changes
3340
Х
Х
Х
Х
–
–
Х
Balance as of 31.12.2014
3300
638,119 –
Х
–
31,906
22,256,970
22,926,995
Indicator
Code
Other equity articles adjusted
(by articles)
before adjustments
3402
adjustment for
changes in accounting policy
3412
correction of errors
3422
after adjustments
Indicator
Code
Equity – total
before adjustments
3400
adjustment for:
changes in accounting policy
3410
3420
after adjustments
including:
3500
retained earnings (uncovered loss): before adjustments
3401
adjustment for
changes in accounting
policy
3411
3421
after adjustments
3501
3502
3. Net assets
Indicator
Code
As of 31.12.2014
As of 31.12.2013
As of 31.12.2012
Net assets
3600
22,926,995
20,596,347
25,464,730
Govorukhin
Valery Nikolayevich
Executive
Head
2. Adjustments due to change in accounting policy and correction of errors
As of 31 Changes in capital for 2013
As of
December by net profit
by other
31.12.2013
2012
(loss)
factors
As of 31 Changes in capital for 2013
As of
December by net profit
by other
31.12.2013
2012
(loss)
factors
(signature)
20 February 2015
(full name)
Lysova
Chief
Accountant
(signature)
(full name)
137
138
TENEX Annual Report
2014
Appendix No. 8
Statement of Cash Flows
Indicator
Codes
as of 31 December 2014
Form of OKUD
Organisation
of OKPO
TIN
Type of economic
activity
of
OKVED
Unit of measure:
of OKOPF /
OKFS
RUR thousand
of OKEI
0710004
31 12 2014
08843672
7706039242
51.55.3
12247
61
As of January –
December 2014
384
4110
90 361 079
As of January –
December 2013
67 810 953
including:
4212
from repayment of loans given, from sales of debt
securities (rights of claim on financial assets
to other entities)
4213
13,558,900
6,698,531
from dividends, interests on debt financial
investments and similar proceeds from interests
in other entities
4214
273,438
309,128
other proceeds
4219
(6,170,855)
4221
(120,940)
(73,345)
due to acquisition of shares (interests) in other entities 4222
(24,679)
(30,844)
due to acquisition of debt securities (rights of claim
on financial assets to other entities), loans given
to other entities
4223
(11,121,829)
(6,066,666)
due to interests on debts included in cost
of investment asset
4224
–
other payments
4229
–
Balance of cash flow from investment operations
4200
4111
84 144 707
66 961 550
Cash flows from financial operations
rent payments, licensing payments, royalties,
commissions and other similar payments
4112
87 755
205 910
Proceeds – total
4310
resale of financial investments
4113
including from:
other proceeds
4119
6 128 617
643 493
Proceeds from borrowings and loans
4311
4120
(66 743 792)
(56 225 339)
cash contributions of owners (participants)
4312
share issue, increase in shares
4313
issue of bonds, notes, and other debt securities, etc.
4314
budget appropriations and other special purpose
financing
4315
other proceeds
4319
Payments – total
including:
suppliers (contractors) for feedstock, materials, works,
services
4121
(51 527 192)
(49 853 076)
remuneration of employees
4122
(1 190 860)
(1 216 973)
interests on liability
4123
(891 596)
(815 338)
profit tax
4124
(3 179 506)
(1 631 265)
other payments
4129
(9 954 638)
(2 708 687)
Balance of cash flow from current operations
4100
23 617 287
11 585 614
Cash flow from investment operations
4210
13 832 338
8 930 610
Proceeds – total
including:
from sales of non-current assets (excluding financial
investments)
4211
5
(11,267,448)
from sales of products, goods, works, and services
–
1,922,946
4220
due to acquisition, creation, modernisation,
reconstruction, and preparation for use of noncurrent
assets
Cash flow from operating activities
Proceeds – total
As of January –
December 2013
including:
Code
As of January –
December 2014
from sales of stock (interests) in other entities
Payments – total
Location (address)
Indicator
Code
2,564,890
2,759,755
83,568,675
55,975,093
83,568,675
55,975,093
(110,777,296)
(69,166,735)
Payments – total
4320
including:
to owners (participants) due to buy-out of their shares 4321
(interests in) of the organisation or their cessation
of partnership
dividends payment and other payments related
to distribution of profit to owners (participants)
4322
(9,484,127)
(12,464,730)
due to maturity (buy-out) of notes and other debt
securities, repayment of borrowings and loans
4323
(101,240,892)
(56,644,287)
other payments
4329
(52,277)
(57,718)
139
140
TENEX Annual Report
2014
Appendix No. 9
Appendix No. 9.
Auditors’ Conclusion on Accounting (Financial) Statement
Indicator
Code
As of January –
December 2014
As of January –
December 2013
Balance of cash flows from financial operations
4300
(27,208,621)
(13,191,642)
Balance of cash flows for the reporting period
4400
(1,026,44)
1,153,727
Balance of cash and cash equivalents as of the
beginning of the reporting period
4450
2,533,461
1,254,239
Balance of cash and cash equivalents as of the end
of the reporting period
4500
1,234,710
2,533,461
Effect of foreign currency exchange rate changes-torouble
4490
Govorukhin
Valery Nikolayevich
Executive
Head
(signature)
20 February 2015
(full name)
(272,307)
for the period from 01 January until 31 December 2014
To Shareholders
of the Joint Stock Company
“TENEX”
Auditee
Name:
Joint Stock Company “TENEX” (hereinafter referred to as TENEX).
125,495
Location address:
Lysova
Chief
Accountant
(signature)
State registration:
Registered by the State Institution “Moscow Registration Chamber” on 28.01.1994,
Certificate No. 029.427. Entered to the Unified State Register of Legal Entities, Department
of MTL of Russia for Moscow, on 11.07.2002, Principal State Registration Number:
1027700018290.
(full name)
Auditor
Name:
Financial and Accounting Consultants Limited Liability Company (FBK LLC).
Location address:
44/1, bld. 2AB Myasnitskaya St., Moscow 101990, Russia.
State registration:
Registered by the State Institution “Moscow Registration Chamber” on 15.11.1993,
Certificate: YuZ 3 No. 484.58З RP. Entered to the Unified State Register of Legal Entities
on 24.07.2002, Principal State Registration Number: 1027700058286.
Membership in the self-regulatory organisation of auditors:
Non-profit Partnership “Audit Chamber of Russia”.
Number in the Auditors’ Register of the self-regulatory organisation of auditors:
Certificate of membership in the Non-profit Partnership “Audit Chamber of Russia”
No. 5353, ORNZ – 10201039470.
We have audited the accounting (financial) statements of the organisation, hereinafter
referred to as TENEX, attached hereto, as follows: Statement of Financial Position
as of 31.12.2014, Profit or Loss Statement, Capital Change Statement and Cash Flow
Statement for 2014, and notes on financial statements for the year ending on 31.12.2014.
Responsibility of the auditee for accounting (financial) statements
The auditee top management bears responsibility for the drawing up and the credibility
of the said accounting (financial) statements as per the accounting (financial) regulations
of Russia and for the system of internal control required for drawing up accounting
(financial) statements that do not contain essential misstatements due to fraud or error.
141
142
TENEX Annual Report
2014
Appendix No. 10
Appendix No. 10.
Issues Reviewed by the Board of Directors in 2014
Responsibility of the auditor
Our responsibility is an expression of opinion on the credibility of the accounting
(financial) statements as based on the audit conducted by us. We conducted the audit
in accordance with federal auditing standards. These standards require the observance
of applicable ethical norms, as well as planning and conducting the audit in order
to obtain sufficient confidence that the accounting (financial) statement does not contain
essential misstatements.
The audit included auditing procedures to obtain audit evidence confirming the numerical
values of the accounting (financial) statements and disclosure of information therein.
The auditing procedures selection is the subject of our judgment based on an assessment
of risk of essential misstatements due to fraud or error. In the course of this risk
assessment, we reviewed the system of internal control, which ensures drawing up
and the credibility of the accounting (financial) statements, in order to select appropriate
auditing procedures, rather than to express an opinion on the internal control system
effectiveness. The audit also included an assessment of appropriateness of the accounting
policy in use and of the validity of estimated values obtained by the auditee top
management, as well as an assessment of the accounting (financial) statement submission
as a whole.
No.
Date of Board
of Record of Directors’
Board of Directors’ meeting agenda
of Meeting meeting
115
17.03.2014
1. Approaching the Sole Shareholder of TENEX with a proposal to make
a decision on issues that are in the jurisdiction of the annual general meeting
of TENEX shareholders.
116
09.04.2014
117
22.04.2014
1. Regarding payment of annual bonuses to the General Director of TENEX
based on the results of meeting key performance indicators for 2013.
118
27.05.2014
1. Preliminary approval of the annual report of TENEX for 2013.
2. Preliminary approval of the annual accounting (financial) statements,
including the profit or loss statement, of TENEX for 2013.
3. Recommendations to the Sole Shareholder of TENEX regarding
the allocation of profit (including payment (announcement) of dividends)
of TENEX following the 2013 results, as well as the size of dividends on shares
of TENEX and their payment procedure, proposal to the Sole Shareholder
of TENEX on setting the date for which persons who have the right to receive
dividends are identified.
119
25.06.2014
1. Regarding approval of the Cost Estimates of TENEX for free (targeted)
financing in 2014.
120
18.07.2014
1. Regarding the election of the Chairman of the Board of Directors of TENEX.
2. Regarding the election of the Secretary of the Board of Directors of TENEX.
121
21.07.2014
1. Formalize a fee size for and terms of contract with the TENEX auditor
for 2014.
122
03.10.2014
1. Approval of the budget of TENEX for 2014.
123
29.10.2014
124
21.11.2014
1. Regarding changing the terms of the labour agreement of the General
Director of TENEX as defined by the parties.
125
28.11.2014
1. Recommendations to the Sole Shareholder of TENEX as to the size
of dividends following the results of nine months of the 2014 fiscal year
and their payment procedure.
126
30.12.2014
1. Regarding approval of changes to the Cost Estimates of TENEX for free
(targeted) financing in 2014.
We believe the audit evidence obtained through the audit provide sufficient grounds
for expressing an opinion on the credibility of the accounting (financial) statements.
Auditor’s opinion
In our opinion, the accounting (financial) statements credibly reflect the financial
standing of TENEX in all essential respects as of 31.12.2014, as well as the results
of its financial and economic activities and cash flow in 2014, as per the Russian
regulations for accounting (financial) statements preparation.
President of FBK LLC
Date of Auditors Conclusion
March 02, 2015
S. M. Shapiguzov
Based on the Articles of Association
Auditor’s Qualification Certificate 01-001230
ORNZ 29501041926
143
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TENEX Annual Report
2014
Appendix No. 12
Appendix No. 11.
Appendix No. 12.
Conclusion of the Internal Control and Audit Service of TENEX on results
of the internal audit of the public reporting preparation process
30 April 2015
The internal audit of the preparation process of the Public Annual Report of TENEX
for 2014 (hereinafter referred to as “the Report”) was conducted as per the Procedure
for Inspections and Internal Audits of Business Processes by the Internal Control
and Audit Service of TENEX, taking into account the requirements of the Public Reporting
Policy of ROSATOM, the Public Annual Reporting Standard of TENEX, basic provisions
of the Sustainability Reporting Guidelines (GRI G4, Core option), the AA1000 international
standarts series, recommendations of the RSPP for use in management practices,
and corporate non-financial reporting.
As per the Regulation for the Public Annual Reporting of TENEX, the First Deputy General
Director for Strategy and Communications V. N. Govorukhin, who is also the Chairman
of the Public Reporting Committee of TENEX, is in charge of the formation of the public
reporting documents. Members of the Public Reporting Committee and heads of certain
structural subdivisions are in charge of the preparation and submission of the information
to be reported.
According to the above-mentioned Regulation, a corporate schedule was approved
(Order of the General Director No. 006/325-P of 27.10.2014) that identified milestones
and due dates of the Report preparation, including drafting of the Report Concept,
the collection of information, drafting of the report, obtaining a statement from
the standing technical commission, examination of the draft Report by the Public
Reporting Committee of ROSATOM, conducting public consultations on the draft Report,
obtaining a Public Assurance Statement on the Report from the Stakeholders Commission,
and approval of the Report by the Board of Directors and the Sole Shareholder.
Glossary, List of Abbreviations
A
B
C
D
E
• an assessment was carried out concerning the effectiveness of the internal controls
system used for the preparation of the public report (including an analysis of regulating
and formalising key processes associated with the preparation of the public report
and an analysis of the effectiveness of the implementation of key control procedures
that ensure the credibility of the public reporting);
Back-end – Closing part of the nuclear fuel
cycle – activity that includes transportation,
storage, reprocessing of spent nuclear
fuel, radioactive waste management
and its disposal
Book transfer – A mode of realization
on uranium sale and purchase transaction
without physical delivery. It is conducted
upon the seller’s request through transfer
by the operator of account, whose company
stores uranium owned by the seller a set
quantity from the seller’s material account
to the buyer’s material account, both
of which are maintained by the operator
of the account
Conversion – A chemical process
transforming U3O8 into UF6
CJSC UEC – Closed Joint Stock Company
Uranium Enrichment Centre
DMA – Disclosures on Management
Approach
Enriched uranium – Uranium where
the ratio of uranium-235 to uranium-238
is increased in excess of the natural
uranium (0.7%). Normally, reactor-grade
uranium is enriched up to about 3.5%
with uranium-235, while the content
of uranium-235 in weapons-grade material
is over 90%
occurring mixture (expressed in %);
b) a process resulting in an increasing
content of a certain isotope in the isotopic
mixture
EBITDA – Earnings Before Interest, Taxes,
Depreciation, and Amortisation
EMS – Environmental Management System
Enrichment (with isotope) – a) The content
of atoms of a certain isotope in the isotopic
mixture of the same element if it exceeds
a fraction of this isotope in the naturally
• an assessment was carried out to determine whether the public report preparation
procedure conforms to the legislation and internal normative requirements that
regulate the business process of the public report preparation.
Head of the Internal Control
and Audit Service of
TENEX
APR – Asia-Pacific Region
CTG – Consolidated Taxpayers Group
In the course of the audit:
The findings of the audit allow for the conclusion that the internal controls system
of the public reporting preparation is effective and that the procedure of public reporting
of TENEX conforms to the legislation, ROSATOM Public Reporting Policy, and internal
normative documents of TENEX that regulate the business process of public reporting.
AFCF – Adjusted Free Cash Flow
F
O. N. Sarenkova
Flat Rack – A standard container platform
without roof and sidewalls, but fitted
with headers with a possibility of tilting
to ease the loading/unloading. It is used
for shipments of out-of-gauge load
FA – Fuel Assembly
G
EU – European Union
EUP – Enriched Uranium Product
FC LEU – Feed Component of LowEnriched Uranium
FE NFC – Front-End of Nuclear Fuel Cycle
FSTEC – Federal Service for Technical
and Export Control
FAA – Federal Autonomous Agency
FTFC – Foreign Transport and Forwarding
Companies
GCP – Gas Centrifuge Plant
GRI – Global Reporting Initiative
145
146
H
I
J
TENEX Annual Report
2014
Appendix No. 12
HEU Agreement – Agreement between
and the Government of the United States
of America concerning the disposition
of highly enriched uranium extracted from
nuclear weapons, made on 18.02.1993
Highly enriched uranium (HEU) –
Uranium with a uranium-235 content equal
to or more than 20% by mass
IAEA – International Atomic Energy Agency
IFRS – International Financial Report System
ICAS – Internal Control and Audit Service
ISF – Interim Storage Facility
JAIF – Japan Atomic Industrial Forum
JSC SCC – Joint Stock Company Siberian
Chemical Combine
JSC ARMZ – Joint Stock Company
Atomredmetzoloto
JSC Atomenergoprom – Joint Stock
Company Atomic Power Corporation
JSC IUEC – Joint Stock Company
International Uranium Enrichment Centre
HEU – Highly Enriched Uranium
N
JSC SPA Khimpromengineering – Joint
Stock Company Scientific and Production
Association Khimpromengineering
JSC SPb IZOTOP – Joint Stock Company
St. Petersburg IZOTOP
JSC PA ECP – Joint Stock Company
Production Association Electrochemical Plant
K
L
M
KAIF – Korea Atomic Industrial Forum
Material Accounts System (MAS) – A tool
of effectiveness increase of transactions
for the processing (conversion, enrichment)
of customer-owned feed by the customers
buying the processed product (uranium
hexafluoride, EUP). MAS functions
on the basis of a combination of a contract
for uranium product processing and
a contract of its impersonal storage at the
contractor’s enterprise allow for the title’s
transition during storage from one person
(in particular, the supplier of feed) to another
(the customer of the processing service)
MTL of Russia – Ministry of Taxes
and Levies of the Russian Federation,
in 2004 transformed into the Federal Tax
Service
Natural uranium – A material with low
activity and a uranium-235 content equal
to 0.7%
NFC – Nuclear Fuel Cycle
Nuclear fuel cycle (NFC) – A sequence
of production processes to support the
operation of nuclear reactors that covers
uranium mining through the disposal
of radioactive waste
NP “ RCCA” – Non-Commercial Partnership
“Corporate Counsel Association”
NEI – Nuclear Energy Institute
KPI – Key Performance Indicators
Low-enriched uranium (LEU) – Uranium
with a uranium-235 content less than 20%
by mass
LC – Life Cycle
Material account – A method
of grouping and a current reflection
of homogeneous uranium materials,
obligations, and operations with regard
to a combination of registers (including
quantity, country of origin, etc.) that
is carried out by an NFC enterprise
in the order of records management
and as per the terms of the Material
Account Agreement
Material Account Agreement –
An agreement between an entity who owns
or operates an NFC enterprise (named
the operator of the account) and an entity
who owns uranium. In pursuance of the
agreement, the operator of the account
is obliged (a) to receive uranium physically
delivered by the owner and credit
it to the material account of the uranium
owner; (b) store incoming uranium
at its enterprise before processing;
(c) conduct book transfer operations
and provide reporting thereof, and balance
on the account; (d) receive uranium
for processing; (e) physically provide
the product of reprocessing (this can also
be regulated by the processing contract
terms); and (е) render associated services
LEU – Low-Enriched Uranium
P
Q
R
PCM – Professional Competence Model
NPF – Non-state Pension Fund
NPP – Nuclear Power Plant
NRNU MEPhI – National Research Nuclear
University Moscow Engineering and Physics
Institute
PSRMS – Prompt Situation Risk
Management System
QMS – Quality Management System
RAS – Russian Accounting Standard
RMS – Risk Management System
Rostechnadzor – Federal Environmental,
Industrial and Nuclear Supervision Service
of Russia
ROSATOM – State Atomic Energy
Corporation “Rosatom”
RSPP – Russian Union of Industrialists
and Entrepreneurs
ROSATOM-CICE&T – ROSATOM Central
Institute for Continuing Education
and Training
S
Stakeholders – Individual persons
and/or legal entities, as well as groups
of persons, which by their actions affect
activities of the Company and/or fall under
its influence
SC UEIP – Stock Company Ural
Electrochemical Integrated Plant
SC AECC – Stock Company Angarsk
Electrolysis Chemical Complex
SSC – Separation-Sublimation Complex
SCSMC – Supply Chain Security
Management System
147
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TENEX Annual Report
2014
Suspension Agreement – Agreement
Suspending the Antidumping Investigation
on Uranium from the Russian Federation
of 16.10.1992
T
U
SWU – Separative Work Unit
TLC – Transportation and Logistics Complex
Uranium hexafluoride – A chemical
composition of uranium that can
be gaseous under certain conditions.
It is used as feed for uranium enrichment
UE NIPS of Russia – All-Russia sectoral
association of employers Union
of Employers in Nuclear Industry, Power,
and Science of Russia
UAE – United Arab Emirates
V
W
VaR – Value at Risk
VMI – Voluntary Medical Insurance
WNA – World Nuclear Association
WNTI – World Nuclear Transport Institute
WNFM – World Nuclear Fuel Market
Z
ZATO – Russian abbreviation for a restricted
access administrative territorial formation
(i.e., a “closed” city)
Concept, layout, prepress –
Souvenir-Design LLC
TENEX
http://www.tenex.ru
Tel.: +7 (495) 545-00-45, +7 (499) 949-26-83
Fax: +7 (495) 953-08-20
E-mail: [email protected]