Annual Report
2013
Indicator | 2011 | 2012 | 2013 |
Direct economic value generated | 151,081 | 137,913.8 | 162,788.6 |
Economic value distributed incl.: | 125,285.3 | 124,772 | 142,265.1 |
Operational costs | 73,404.9 | 63,875.2 | 84,316.4 |
Salaries and other payments and benefits to the employees | 32,512 | 24,727.3 | 21,957.5 |
Payments to capital providers | 3,606.4 | 20,054.2 | 19,710.7 |
Investments in communities and charity | 791.8 | 560.5 | 170.3 |
Gross tax payments* The amount of principal tax liabilities accrued for payment to budgets of various levels for the reporting period, including:
|
14,970.2 | 15,554.8 | 16,110.2 |
Economic value retained | 25,795.5 | 13,141.8 | 20,523.51 |
Achievement of strategic targets set before the TVEL FC is impossible, if there is no social agreement, requirements of social and environmental acceptability are not complied with. This, in its turn, is caused by the fact that social tension in regions may inflict irreparable reputational harm to the Fuel Company in the international market with respect to the reliability of supplies and, therefore, result in the foreign clients’ reorientation towards dealing with the Company’s competitors.
In this connection, in determining strategic development targets, the management company TVEL JSC has taken into account to the fullest extent potential social and economic consequences of taken decisions and has developed projects for development of regions of presence and assurance of their social stability.
For the purpose of realization of projects for development of areas of presence, the TVEL FC maintains constant and complex coordination with all stakeholders, mainly with public authorities and local self-governing bodies.
For the purpose of realization of projects for development of areas of the enterprises’ presence, the TVEL FC has developed and approved in September 2013 the Program “Formation and preservation of social agreement environment in regions of the Fuel Company’s presence” which is oriented at all enterprises of the TVEL JSC, systemizes the Company’s experience in this area and includes three groups of projects:
In 2012, the TVEL JSC initiated the drawing up and signing of Agreements on cooperation between the the ROSATOM State Corporation and public authorities of Russian Federation constituent entities on which territory enterprises of the Fuel Company are located. Such agreements are the result of efficient cooperation with public authorities and provide for realization of an entire complex of activities aimed at social and economic development of regions and cities of the Fuel Company’s presence.
Based on the results of the positive innovative experience, such practice has been extended to the majority of regions of presence of enterprises of the ROSATOM State Corporation. In addition to 4 Agreements signed in 2012 (with the Sverdlovsk and Tomsk Regions, Krasnoyarsk Territory and the Udmurt Republic), an Agreement was entered into with the Vladimir Region in June 2013.
The key point of each of the Agreements is an agreement on the return of an increase in regional taxes from the activities of enterprises of the ROSATOM State Corporation in the territory of a constituent entity of the Russian Federation to the municipal budget for activities aimed at social and economic development of nuclear power cities.
On November 16, 2012, the Federal Tax Service of Russia registered an agreement on creation from year 2013 of a consolidated group of taxpayers.
The consolidated group of taxpayers includes 34 organizations of the nuclear industry, 10 enterprises of the Fuel Company (TVEL JSC, JSC SGChE, JSC PA ECP, JSC AECC, JSC CMP, JSC MZP, JSC VNIINM, JSC VPA Tochmash, UGCMP Ltd., NRDC LLC).
Creation of the consolidated group of taxpayers in the nuclear industry will make it possible to increase profit tax payments to budgets of regions in which productions capacities are registered and operate. Each specific budget of a constituent entity of the federation will receive a part of the total profit tax depending on the value of capital assets of the participant of the consolidated group of taxpayers who is registered in its territory and the number of employed personnel.
Thus, in 2013 (as of the end of 2012) the actual return of the profit tax to budgets of regions in which the TVEL FC operated was RUB 447.5 mln, and it is planned that in 2014 this figure will be above RUB 2,000 mln
The enterprises of TVEL FC are situated in various regions of the Russian Federation. However, the Company’s most significant impact is on the social and economic situation in the Closed Administrative Territorial Units and monotowns.
City | Region | % of the labour force employed on the enterprises of TVEL FC |
Angarsk (JSC AECC) | Irkutsk Region | 0.91 |
Vladimir (JSC VPA Tochmash) | Vladimir Region | 0.80 |
Kovrov (KMP OJSC) | Vladimir Region | 1.94 |
Glazov (JSC CMP) | Udmurt Republic | 6.79 |
Zelenogorsk (JSC PA ECP) | Krasnoyarsk Territory | 6.33 |
Novouralsk (JSC UEIP) | Sverdlovsk Region | 5.04 |
Seversk (JSC SGChE) | Tomsk Region | 7.00 |
Elektrostal (MSZ JSC) | Moscow Region | 4.43 |
The change of labour force balance in the Closed Administrative Territorial Units and monotowns as a result of the restructuring* See details about the restructurisation in the Annual report of TVEL JSC for the year 2011, Section 9.2. “Results of restructurisation of enterprises”. main stage carried out in TVEL FC brings forth the following problems for the Company:
City of presence | Projects |
Seversk | Encouraging of the agglomeration process Tomsk-Seversk Industrial Park “Tomsk-Seversk” Fund for the development of small businesses Cooperation with the local government bodies |
Novouralsk | Development of the high-speed railway transport to Yekaterinburg Project “Industrial Park” Jobs for youth Development of general products output |
Glazov | Development of general products output Glazov fund for entrepreneurial development Association of the FC’s enterprises |
Zelenogorsk | Attraction of a company which is an anchor investor for the purposes of establishing a new business and creating jobs Fund for the entrepreneurial development |
In the Closed Administrative Territorial Units and Angarsk the three-sided commissions, called the Coordination Councils, established for the solution of the social problems continued its work in 2013. They consist of the directors of enterprises, heads of the Closed Administrative Territorial Unit and the heads of trade unions. Within the frameworks of such commissions the parties come up with the solutions for the improvement of the economic conditions and development of the TVEL FC companies, for the ensuring of the coordinated activities to maintain stability in the labour market, for the extensive support of the active employment which furthers the creation of new jobs, achievement of social and economical stability in the Closed Administrative Territorial Units.
In 2013 the pilot project for the development of entrepreneurial activity called “The School of entrepreneurship” was implemented in the Closed Administrative Territorial Unit Zelenogorsk. This is the joint project of TVEL JSC, JSC PA ECP, the Administration of Zelenogorsk and the Ministry of investments and innovations of the Krasnoyarsk region. Following the results of the four stages which included educational and consulting events, 20 projects were selected and recommended for receiving loans and grants to the Fund for the entrepreneurial support and development of Zelenogorsk. Based on the results of implementation of the approved investment projects the decision will be taken to replicate the experience for the other Closed Administrative Territorial Units hosted by the Fuel Company.
The primary objective of TVEL FC in the mid-term view with regard to the impact on the territory of presence shall be the development jointly with the ROSATOM State Corporation of the industrial program of the strategic development of the Closed Administrative Territorial Unit of the nuclear industry.
The development of such program suggests the working-out and harmonizing the series of critical decisions with the authorities on different levels, in particular, on the following problems:
The contribution of the Fuel Company to the social and economic development of the regions of presence means not only the participation in the formation of the income base for the regional and local budgets but also the implementation of the whole body of social and charity programs.
The charitable activity of the Fuel Company is arranged systematically and based on the principles of:
Since 2012 the Charity Council has been working within TVEL JSC; its functions include the determining of purposes and priority areas of charitable activity, approval of the budget and events for the charitable activity, efficiency assessment of the charitable activity of TVEL FC etc. The priority areas of charitable activity for the Fuel Company now are the events held with the purpose to create jobs and energize the business environment in the cities of presence. For example, supported by TVEL FC:
One of the primary areas of the charitable activity which is put into effect jointly with the ROSATOM State Corporation is the creation and development of physics and mathematics lyceums for the training of the prospective skilled specialists for the nuclear industry.
This project is designed to create conditions for the self-actualization of children, finding out and maintaining of the talented schoolchildren, bringing up of the prospective great scientists. This project is tailored to attract young people to the fundamental sciences such as physics and mathematics, to facilitate the entry to the higher educational establishments which specialization is physics and mathematics.
At this stage the project is being implemented in three cities: Seversk, Zelenogorsk and Glazov. On September 2, 2013 the lyceum No. 174 of Zelenogorsk was given the status of physics and mathematics lyceum. Lyceum No.174 has become the basis for the creation of a physics and mathematics lyceum due to the high educational level and high success level of its pupils.
For the year under report immobile and mobile classrooms were equipped in Seversk and Glazov, including with interactive blackboards, numerical programmed control systems, robotized educational kits and PCs. The gyms have been built in lyceums since 2013.
Seq. Nos | Events (Projects) | Funding in 2013, in mln RUB |
1 | Contribution to the improvement of housing facilities for key budget specialists of Novouralsk | 24.00 |
2 | Improvement of equipment status of physical infrastructure in educational establishments and creating better conditions in the pre-school establishment in Novouralsk | 20,00 |
3 | Events designed to support various youth groups in Novouralsk | 50.00 |
4 | Purchase of equipment for the geriatric unit in Novouralsk | 2.00 |
5 | Purchase of equipment for the pediatric center in Angarsk | 3.36 |
6 | Events purposed to social and economic development of Vladimir: purchase of an ambulance car, installation of playgrounds for children, purchase of equipment for kindergarten, etc. | 4.95 |
7 | Support to the activities of the nuclear industry information centers in the regions of presence of Tvel FC enterprises (ANO "Data Center of Nuclear Field") | 10.26 |
8 | Support to the international social environmental initiatives in the cities of presence of Tvel FC enterprises | 4.50 |
9 | Helping hand to the curacies of the Russian Orthodox Church | 13.30 |
10 | Support to the sports activities in the cities of presence of Tvel FC enterprises | 4.87 |
11 | Participation in the arrangement and holding of Businessman of the Year Awards in the cities of presence of Tvel FC enterprises | 1.05 |
12 | Support to the social and cultural events in the cities of presence of Tvel FC enterprises | 6.7 |
13 | Organization of a youth camp and support to the children international environmental protection events | 2.47 |
14 | Support to the mass and amateur sports in the cities of presence of Tvel FC enterprises | 5.04 |
15 | Support to the non-governmental organizations, orphan homes, residential care homes, veterans, invalids and persons in hardship in the cities of presence of Tvel FC enterprises | 7.04 |
16 | Support to the educational establishments in the cities of presence of TVEL FC enterprises | 2.48 |
17 | Holding of competition of social and charity projects in the cities of presence of TVEL FC enterprises | 8.26 |
Total | 170.28 |
Reduction in the costs for charitable and sociable programs as compared with the year 2012 is compensated by the growth of the corporate income tax paid to the regional budgets within the consolidated group of taxpayers.
TVEL FC is unexceptionally guided by the principle of openness* Considering for objective restrictions specific for the nuclear industry. and carries out a continuous work with stakeholders; it systematizes, analyzes and takes accounts of their needs.
Such approach allows to timely react to the risks which may arise and which relate to the stakeholders engagement, first of all of social and reputational nature.
In 2013 based on the interrogation of the leading managers of the Fuel Company the ranging chart of stakeholders which reflects the interdependence between them and the Company was actualized.
The system of interrelations with each single group of stakeholders has and will have an essential impact on the business of TVEL FC; that is the reason why the consideration for their interests while planning on different levels and while carrying out the everyday activities is of high importance for the sustainable development (see Table 53). The analysis of key events, main financial and production results and the performance results of the Fuel Company for the sustainable development proves evidently that the Social Capital is one of the main sources for the sustainable business.
The systematic relations between TVEL FC and the main groups of stakeholders is described in the following table:
Target group of stakeholders | Key interests | Performance measurers for TVEL FC | Institutes and systematic interrelations | Programs and events | |
Stakeholder | TVEL FC | ||||
State Corporation ROSATOM | Increased manageability. Efficiency | Implementation of advanced management technologies. Efficiency | Increase in labour productivity. Resources saving. Positive dynamics of financial, economic and production indicators | Production System of ROSATOM. Personnel management system. Implementation of project management | Plans for RPS implementation. RPS training and development program. Small group leaders development program. Replication of IT-solutions for all FC enterprises. Transformation of organizational set-up |
Consumers | Supplies stability, price, quality and reliability of deliveries, customer appeal of the products | Stability of orders. Markets expansion. Income growth | Income growth. Decreasing of fuel failure probability | Long-term contracts. Satisfaction assessment. “Zero Failure Level” project | Feedback system. Quality assessment. Expectations analysis |
Enterprises of the TVEL FC | Current and new businesses support and development | Efficiency of management. Income growth | Dividends growth. Proceeds from non-nuclear products | Centralized management. Decomposition of business processes and IT-solutions |
Regulations. Feedback system. Intracorporative communications:
|
Labour collective and unions | Stable work and stable payments. Socially reliable employer. Professional growth | Efficient work. Skilled staff. Employees loyalty | Increase in labour productivity. Decrease in turnover rate. Earnings growth. Salaries growth | Collective bargaining agreement. HR policy. Intra communications buildup project | Personnel development programs. Involvement assessment. Information days. Social programs |
Partners and contractors | Mutually fruitful cooperation. Increased competitive ability | Income growth. Clients and resources database expansion | Joint ventures. Joint projects and contracts | JV ALVEL. TSOU. TVS-KVADRAT. ITER. Nuclear fuel plant in the Ukraine | |
Suppliers | Transparent purchasing system. Paying ability. Stability of orders | Quality, stability and reliability of supplies. Favourable price | Costs saving | Uniform industry purchasing standard | Internet-portal of purchases with the feedback system. Control of adherence to the uniform industry purchasing standard |
Local and regional authorities, environmental and other public organizations | Social and economic development of the regions. Employment of population. Environment protection | Stability in the regions of presence. HR availabilit | Unemployment level. Average wages and salaries. Tax liability. Environmental situation | Agreements with regional authorities. Taxpayers consolidated group agreement. Funds of entrepreneurial development | Social and charity projects jointly with the government bodies. Environmental reports. Meetings. Conferences. Dialogues. Nuclear power information centers |
Attraction of new investors. Creation of business environment | Creation of new jobs. Additional income to local budgets | In the long view: industry program for the strategic development of the Closed Administrative Territorial Units of nuclear power industry | Making projects on industrial parks (technology parks) | ||
Federal authorities | Taxes Environmental protection. Safety | Funding Improvement of legislative framework | Funding received Gross tax liabilities. FTP performance. Considered proposals on improvement of legislative framework | Federal target programs. Intergovernmental agreements. Laws and regulations | FTP Events. Fulfillment of terms of intergovernmental agreements. Participations in legislative initiatives of the ROSATOM State Corporation |
The buildup of multilevel external and internal communications was made a separate project in 2013. The development of internal communications in TVEL FC is aimed to formalize the corporative culture, to transmit the company’s information and values, to increase the involvement of the employees and to improve the information flows inside the company. The development of external communications is tailored to build up and maintain the system interrelations for the social and economical development solutions in the territories of presence, fact-based and exhaustive disclosure of information regarding the activities of TVEL FC in mass media.
In order to improve the information awareness of the employees of the Company’s enterprises in 2013 the management of TVEL JSC held the meetings with the labour collectives of the enterprises making the presentations of the strategies of the Fuel Company development and functional strategies in separate areas. The built up cascaded information systems allowed to involve more than 97% from the total number of the Company’s employees. The anonymous survey held based on the events demonstrated that the level of understanding and the measure of support of the Company’s development strategy by the employees have increased.
For the direct connection between an employee and the President of TVEL JSC the post boxes are installed in every enterprise; using them any employee can address the management of TVEL FC confidentially.
Complains and appeals are handled based on the Federal Law No. 59-FZ dated May 2, 2006 called “On procedures for consideration of the appeals filed by the citizens of the Russian Federation”. The feedback is mandatory: every appeal and every feedback is kept record of. In 2013 12 collective appeals, 28 appeals made by the employees of the enterprises and by private persons and 12 appeals of official persons have been received and considered.
During 2013 the official representatives of TVEL FC participated in the following international events:
While preparing the Report the principles of Standard AA1000APS were adhered to, in particular, the compliance of the information published with the requests of stakeholders involved was ensured. Four on-site dialogues were held for the implementation of this principle while preparing this Report.
The representatives of the ROSATOM State Corporation, industry partner organizations, subsidiaries, environmental, public, trade union organizations, higher educational institutions, local governmental authorities, mass media, consultants and auditors participated such dialogues.
On December 12, 2013 the dialogue on the TVEL FC Annual report approach for the year 2013 was held.
During the dialogue the Report approach developed by the Company considering for the proposals of stakeholders involved was presented; the participants advanced the recommendations which allowed finalizing and specifying the approach to the Report.
On March 14, 2014 the dialogues on priority subjects of the Report were held:
During these events the reports of the Company’s managers were listened to; following the results of the dialogues 36 proposals were able to be gathered both for the developing of the priority subjects in the Report 2013, and for the activities of the Fuel Company as a whole.
The draft annual report of TVEL JSC for the year 2013 prepared subject to the comments made by stakeholders involved in the course of the dialogues was presented during the public consultations on April 23, 2014.
Following the events the proposals were made on improvement of the text content of the Report and the process of interaction.
Due to the specific nature and scale of its activities TVEL FC is in the area of interests of the great number of stakeholders; it influences on and it is influenced significantly by its entourage. The business success of the Company depends on the development of the constructive and trust-based relations both inside the Company and with the society. It is just with the purpose to ensure the openness of the public position of TVEL FC in the area of sustainable development was elaborated in 2011 (see details in the annual reports for 2011-2012).
TVEL FC generated the system of public accountability which represents the combination of elements, processes and connections between them ensuring the activity with regard to public accountability and its development.
The primary elements of the public accountability system provided for by the Policy of the ROSATOM State Corporation in the area of public accountability shall be the operational center of responsibility for public accountability of TVEL FC, legislative framework, the representatives of stakeholders (participating in the preparing of the accounting data) as well as infrastructure support (consultative and instructional support, audit, etc.).
The Report shall be prepared based on the documents governing the public reporting of TVEL JSC:
The operation of the public accountability system of TVEL JSC is based on the work of variety of subunits. The main functions are divided between the vice-presidents of TVEL JSC, the Committee on public annual reporting of TVEL JSC, and the Public Relations Department (see details in the Report for 2011-2012).
For the purpose of dissemination of information about the Company’s activities the annual reports of the committee on public annual reporting of TVEL JSC participate in federal, industry and other contests; the KPI card of the Head of PR Department includes the index “Awards in Federal Contests”.
While preparing the report the great deal of work has been done both by the Company and the representatives of stakeholders.
The committee on public annual accounts reporting of TVEL JSC expresses gratitude to everybody who showed interest to the Company’s activities after having familiarized with the Report.