TVEL and Dukovalny NPP signed a contract to supply RS-E grade fuel starting from 2015.
The year 2014 showed us once again that enterprises of ROSATOM State Corporation and Fuel Division have successfully coped with the assigned tasks. We have a lot to be proud of, despite complicated foreign policy situation, we managed to expand our presence in international markets, and the orders portfolio of ROSATOM State Corporation for the first time exceeded 100 USD bln.
TVEL Fuel Company made important contribution to these achievements. On results of the year 2014, scope of new contracts of JSC “TVEL” with foreign partners exceeded 3 USD bln, while a 10 year portfolio exceeded 10 USD bln. Last year for the first time in national nuclear history the European reactor was charged with TVS-KVADRAT. Another important achievement of ROSATOM State Corporation was the entry to the fuel market of western research reactors.
Throughout the year the Company assured uninterrupted delivery of nuclear fuel to all foreign consumers. This is the outcome of the synergy of four cornerstones of TVEL Fuel Company — separation-sublimation, nuclear fuel fabrication, gas centrifuge and scientific divisions.
Furthermore, the enterprises of the Fuel company actively developed production infrastructure, which enables to face the future with confidence. The following can be referred to the milestones of the year: commencement of construction of the dense fuel fabrication module, i.e. facilities of fuel production for fast neutron reactors, creation of experimental fuel assemblies with dense fuel, and expansion of non-nuclear production.
The year 2014 showed us that human, industrial and R&D potential of TVEL Fuel Company allows carrying out the whole scope of projects required to create new products, including non-nuclear ones, that meet all prospective needs of the day.
I believe that in 2015 the progressive movement towards the stated objectives will continue.
Chairman of the Board of Directors of JSC “TVEL”
Dear friends and colleagues,
In 2014 TVEL Fuel Company continued its rapid growth.
The Company fulfilled the plan for production and supply of nuclear fuel despite the acute competition and complicated international situation. The fuel was delivered to the consumers within the time limits provided by the contracts, in compliance with all quality and safety regulations. TVEL FC proved once again its business reputation of the reliable supplier.
The Company continued implementation of its strategy aimed at strengthening of positions in international market of nuclear fuel cycle. The breakaway contract with a NPP operator in Western Europe for the delivery of prototype TVS-KVADRAT assemblies was made operational. We ensured the entrance of ROSATOM into the international market of nuclear fuel for western research reactors. The company signed the contracts to supply fuel for NPP in Hungary, Slovakia, Finland, and for research reactors in the Netherlands, Uzbekistan and the Czech Republic.
Particular focus was placed on sectoral research in order to retain leadership in a highly competitive market, and to ensure the future success of the Company. Zero failure technology, extended operation cycle, capability of reactors capacity extension are just some of the outcomes of research and development activity of the Fuel Division. Successful implementation of “Proryv” Project, testing of experimental fuel assembly for reactor BREST-300 are also of relevance.
Manufacturing of zirconium production moved to a new orbit, which is confirmed by the independent international commission. The Company discharged its contractual obligation within the international project ITER, supplying its European customer with the unique superconductive products. Titanium and calcium wire production was expanded. All of this reflects how the reporting year contributed to the implementation of the Company’s plans to promote non-nuclear production, and to reach tenfold increase of the revenue from non-nuclear production by 2030.
In 2014 the values of State Atomic Energy Corporation “Rosatom” were integrated into the Fuel Company management and corporate culture. Much was done to improve performance of the management and the staff using the value paradigm, enabling to modify the quality of labor commitments, and to achieve tangible performance results.
All enterprises showed steady growth in labor efficiency and salaries. To improve social welfare in 2015 we plan to adjust the income index for at least inflation level.
Governed by the world’s best practices of corporate governance and standards, we are committed to adhering to principles of sustainable development, interacting with every worker and the labor groups, the local authorities, applying creative managerial decisions, introducing economically sound innovations, improving technological base, and expanding foreign economic activity to promote continued success of the Fuel Company and the Russian nuclear industry.
I would like to express my gratitude to all employees for effective and highly professional work, for their responsible approach and genuine concern.
President of JSC “TVEL”
* Conforms to management accounting profile.
** Performance indicators and standard elements are generated and presented in the Report in accordance with the Russian Accounting Standards. Financial report data as per the International Financial Reporting Standards (IFRS) are not presented due to later terms of generation thereof. The list of public reporting indicators disclosed in the Report in accordance with GRI Guidelines is given in the interactive version of the Report.
The purpose of this Report is to present comprehensive account of:
This Report is prepared in compliance with the following regulatory documents:
The integrated format of the Report provides detailed description of the Company’s performance in the context of the environment and shows the impact it makes on the stakeholders.
The Report discloses the essential information which is important to those who use this Report to assess the performance of the Company. Survey of internal and external stakeholders was conducted, the map of material matters was drawn up while preparing this Report (for details refer to the Appendices to interaction version of the Report at www.tvel.ru the Section “Finance”, “Annual Report” [ i ]).
Aspect boundaries and content of the Report were determined by the Committee on Public Annual Reporting involving the Committee of Stakeholders, and agreed on by JSC “TVEL” subdivisions. Disclosed matters (aspects) are material for all subsidiary companies (SC) from the Report profile, unless otherwise is specified herein.
The scope of matters (aspects) has changed as compared to the previous periods, some matters are not covered due to their immateriality. The wording of the indicators given in previous reports has remained. “Occupational Health and Safety” is important not only to the Company, but also to contractor organizations rendering capital construction services at TVEL FC facilities.
Rationale for choosing priority matters of the Report:
The Fuel Company and its subsidiaries have impeccable business reputation in international and Russian markets. The Company benefits from available technological advantages despite the increasing competition at international markets of fuel fabrication and enrichment, implements number of breakaway projects aimed at retention and expansion of the Company’s presence in traditional nuclear fuel markets and entry to new ones, that’s why the idea — “TVEL FC: Reliable Supplier” is one of priority matters.
Realization of the Fuel Company’s strategic objective for global dominance in the market of front end nuclear fuel cycle and in related spheres is impossible without permanent improvement of performance efficiency. The Company employees are key agents of changes, their involvement determines realization of the Company objectives. That is why “Human Capital of TVEL FC” is yet another priority matter herein.
Stakeholders engagement is an integral element of public reports preparation and day-to-day activity of the Fuel Company. The Stakeholders Commission was established by TVEL FC in 2013 to promote regular feedback on the matters pertaining to the activity of the Company and its public position on specific matters.
Stakeholders’ suggestions were taken into account while preparing the Report, as well as analysis of the best Russian and international practices of disclosure in annual reports.
Following the reporting campaign 2014 43 suggestions of stakeholders were received; 24 of them have been taken into account while preparing the Report, 4 — partially considered, 13 — will be taken into account at preparation of the subsequent reports. 2 suggestions are planned to consider at development of the brief version of the Report.
Reliability of information contained in the Report was confirmed by:
Organization that renders services of independent assurance of non-financial data of the Report was engaged through competitive procurement practices.
Top Executive Management of the Company was involved in independent assurance procedure through survey and interview. The Report was approved by JSC “TVEL” Board of Directors.
This Report covers the year of 2014. All prior and future periods are mentioned herein in description of corporate strategy, collation of performance indicators and results, forecasts and risk assessments. In addition to factual information, this Report describes and assesses potential and probable events. Any statements herein other than statements of facts shall be construed as forecasts. Forecasts of this kind are relevant only at the time of publishing. JSC “TVEL” (unless otherwise specifically provided for by applicable legislation) is not obliged to review or update the said forecasts or factors in any new pieces of information. Actual performance results may differ from the forecasted ones.
Our working team is open to your feedback and suggestions on the matters and issues that you would like to see in the next annual report. Please refer to Feedback form in interactive version of the Report at www.tvel.ru.
|Revenue (net) from sales of products (excluding V.A.T. and excise duties, similar mandatory payments)||121,958||131,436||137,962|
|EBITDA (earnings before interest, taxes, depreciation and amortization)||42,668||51,163||48,959|
|Gross tax allowances to federal, regional and local budgets [ i ]||23,419||27,695||25,774|
|Current (operating) environmental expenses||2,224||2,213||2,371|
TVEL and Dukovalny NPP signed a contract to supply RS-E grade fuel starting from 2015.
Following the arrangements between TVEL and JNPC to supply TVS-2M Generation II fuel, Taiwan NPP Unit One has been operating in the extended 18-month fuel cycle since February 2014.
TVEL and Kozloduy NPP signed a contract to develop an improved nuclear fuel cycle with 3,120 MW Generation Il fuel for Units 5 and 6, and carry out a safety assessment.
TVEL received regulatory approval from the Main State Expertise for its project to construct a Pilot Demonstration Facility at SC “SGChE” (Seversk, Tomsk region).
Uranium conversion processes consolidated at SC “SGChE”.
TVEL and Slovakia signed two nuclear fuel supply contracts for approximately EURO640 mln.
Four TVS-Kvadrat assemblies were loaded into a European pressurized water reactor as a part of the pilot operation stage.
Technologically sophisticated titanium production has been mastered and industrial small-scale production of calcium wire has been organized at SC CMP
Commencement of works on site development and preparing for construction of mixed nitride uranium-plutonium (MNUP) fuel fabrication module.
SC "SGChE" has successfully held acceptance tests of experimental fuel assembly for reactor BREST-300
PJSC "KMP" has produced and put on tests at SC UEIP the pilot batch of 9+ Generation gas centrifuge.
PJSC NCCP and Nuclear Research and Consultancy Group Petten (NRG Petten) have signed a contract for supply of low-enriched fuel assemblies made by PJSC NCCP for high-flux research reactor HFR (Petten, the Netherlands).
The joint Kazakh-Russian Uranium Enrichment Centre reached its rated annual capacity of 5 million SWU.
Hungarian MVM Paks II and TVEL signed an offtake contract to supply FA within the package agreement for construction of the second stage of Paks NPP (consisting of two new power units).
TVEL completed deliveries of NbTi and Nb3Sn superconducting strands for the ITER magnet system.
Commissioning of pellet MOX-fuel production for unit 4 of Beloyarsk NPP with reactor plant FN-800