JSC Atomenergoprom Annual Report slide image

JSC Atomenergoprom Annual Report

JSC ATOMENERGOPROM / ANNUAL REPORT / 26 The development of ROSATOM and JSC Atomenergoprom is based on the long-term technological policy, which involves mastering new-generation nuclear energy technologies (including fast neutron reactors and the closed nuclear fuel cycle), as well as strengthening the export potential of Russia's nuclear technologies (construction of nuclear power plants abroad, rendering uranium enrichment and conversion services, nuclear fuel fabrication, etc.). ROSATOM's mission, which JSC Atomenergoprom is committed to, reflects the development model that it has prioritised: the Company leverages the research, technological and manufacturing capabilities that it has developed over the years and continues to create new technologies that can help to improve the standard of living around the world. JSC Atomenergoprom is taking steps to accomplish ROSA- TOM's mission of leveraging the achievements of nuclear science and modern high technology for the benefit of humanity. JSC Atomenergoprom's operations facilitate the implementation of the global sustainable development agenda. The Company contributes to the achievement of the UN Sustainable Development Goals through its product line and its efforts to ensure the sustainability of internal environmental, social and governance processes. The global energy crisis caused by geopolitical tensions and restrictive policies adopted by certain countries was a major external factor in 2022. Most countries responded to the crisis by closely focusing on energy security, diversifying the energy mix and increasing investment in clean energy sources. For JSC Atomenergoprom as a global player on the nuclear technology and wind power markets, this opens up opportunities for further expansion into international markets, primarily with product offers focused on zero- carbon energy and targeted at emerging markets. The Company's strategy provides it with sufficient flexibility in its development to enable it to leverage the opportunities arising in the industry. For details, see the section 'Sustainable Development Management'. The business strategy provides general guidelines for the long term, shapes the target vision for 2030 and sets a framework for development. The vision of JSC Atomenergoprom is to become a global technological leader. Accordingly, the Company intends to expand the scale of its business to match existing global technological leaders. By 2030, ROSATOM intends to increase its revenue (including the portfolio of JSC Atomenergoprom) to RUB 4 trillion, with the share of new products in revenue expected to increase several times over; the Corporation also intends to expand its overseas footprint. The vision provides an industry-wide focus on developing modern high technology and sets ambitious goals for each of the prioritised areas. Thus, the overall goal of expanding the scale of business is decomposed. In the sphere of nuclear power generation, this helps to maintain the continuity of strategic goals, enabling the Company to remain an undisputed leader in the global nuclear industry. The vision also involves creating a governance system meeting international standards and easily adaptable to a changing environment; customer centricity, i.e. proactively identifying customer needs, and fully unlocking the potential of our employees by providing an environment for lifelong learning and developing programmes to attract the best talent. The Company has set itself four long-term strategic goals to be achieved by 2030: To increase the international market share. To assert their leadership on the global nuclear power market, ROSATOM and JSC Atomenergoprom are currently expanding their footprint in over 50 countries around the world and the long-term portfolio of overseas orders and increasing the corresponding revenue; To reduce production costs and the lead time. In order to develop the most competitive products, ROSATOM and JSC Atomenergoprom will take further steps to reduce the duration of NPP construction and the cost of electricity (LCOE); To develop new products for the Russian and international markets. Given the accumulated knowledge and technologies of the 'nuclear project' in civilian sectors, the Company plans to increase the share of new businesses in revenue significantly by 2030; To achieve global leadership in state-of-the-art technology. ROSATOM and JSC Atomenergoprom seek to extend their global leadership beyond the nuclear industry. The Company intends to leverage its existing capabilities, the understanding of nuclear technologies and accumulated experience in order to diversify into new segments. In the future, ROSATOM aims to rank among international companies perceived as global technological leaders. For details on steps taken by the Company in order to increase its international market share, see the section 'International Business'. Necessary prerequisites for the implementation of the strategy Ensuring safe use of nuclear energy; Minimising the negative environmental impact; Ensuring that the development of nuclear power is socially acceptable; Developing ROSATOM's innovative potential; Shaping a corporate culture focused on results and performance improvement; Ensuring full compliance with Russian legislation. Key strategy implementation risks Key risks that can affect the achievement of strategic goals include: Economic risks (including financial risks, such as currency, interest rate and credit risks, etc.); Commercial risks (including risks associated with the nuclear fuel cycle product and service market, as well as reputational risks); Operational risks (including the risk of losing critical knowledge of existing and newly created products); Political risks; Technical (project) risks; BUSINESS STRATEGY Technological risks (including the risk of shortcomings in technology); Climate risks (including environmental and energy transition risks). For details on the key risks, see the section 'Risk Management'. BUSINESS STRATEGY JSC ATOMENERGOPROM / ANNUAL REPORT / 27
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