JSC Atomenergoprom Annual Report

JSC ATOMENERGOPROM / ANNUAL REPORT / 118 Other risks Licensing risks JSC Atomenergoprom currently has all the required licences. Where necessary, the Company can promptly obtain licences for new businesses and renew existing licences. Logistical risks Regions in which the core operations of JSC Atomenergoprom and its organisations are situated have well-developed infrastructure and transport links. The Company's organisations implement preventive measures to ensure reliable supplies: they maintain emergency stocks of materials and equipment, organise exercises for emergency response and recovery teams and implement other measures to ensure the continuity of production and logistical processes. Risk insurance Risk insurance is one of the main risk management approaches used by JSC Atomenergoprom. To improve the reliability of insurance coverage, in 2022, the Company continued to cooperate with the insurance community in order to insure Russian operators against property risks. A significant share of liability of Russian NPPs for potential nuclear damage was transferred for reinsurance to the Russian Nuclear Insurance Pool (RNIP) and the Russian National Reinsurance Company (RNRC). This proves that the insurance community acknowledges the safety and reliability of Russian NPPs to be adequate. In 2023, the Company plans to continue to engage RNIP and RNRC experts to audit key enterprises in the industry for insurance purposes. Objectives for 2023 and the medium term Plans for 2023 include activities stipulated in the Risk Management Development Programme for the period from 2019 through 2024. The Programme takes into account both external factors related to the requirements of foreign customers (NPP construction on time and on budget) and Russian government bodies and internal factors (the need to build an efficient risk management system aligned with global best practices). The following three key objectives for the development of risk management in the Russian nuclear industry have been set for 2023: - - To develop an automated risk assessment and management system, which will, among other things, enable Company to maintain and update a knowledge base of typical risks and risk management measures; To develop the risk management expert community in the industry; To adopt procedures (including initial assessment) for managing risks associated with projects and programmes in the sphere of new business development. In 2023, the Company plans to perform activities in the URAN IRMS and activities forming part of the second stage of the URAN IRMS project (under the resolution of the Steering Board of the URAN IRMS project). Key activities forming part of the second stage will include the following: Integration with the system supporting investment activities (the Sirius information system), the Digital Science system of digital services and TCM NC; Implementation of modelling and quantitative risk assessment tools. 7.3. FINANCIAL MANAGEMENT Key results in 2022: The Company placed a second issue of 'green' exchange-traded bonds worth RUB 9 billion. A total of RUB 46.64 billion has been saved in the industry through intra-group financing since 2010. The Expert RA rating agency confirmed the Company's credit rating at ruAAA with a stable outlook. Implementation of the financial strategy Given the scale of JSC Atomenergoprom's business in Russia and abroad, the Company's management attaches special importance to the financial resilience of nuclear organisations in a changing environment. The main aim of the financial strategy of ROSATOM and its organisations, which applies to the Company, is to ensure the financial resilience of the Company and its organisations in a changing external environment and to maximise the efficiency of financing and financial risk management. Cash flow management is centralised through: - A single industry-wide legal framework regulating financial management (including the Uniform Industry-Wide Financial Policy); Vertical integration of treasury departments in the Company's subsidiaries and affiliates, which are functionally accountable to ROSATOM's Treasury Department. The established treasury structure enables 100% control of funds in the industry; Concentration of principal treasury functions of nuclear organisations in ROSATOM's Treasury Department, which communicates with nuclear organisations in a shared information space and is essentially a liquidity management centre; An industry-wide automated system for recording treasury transactions (the Corporate Settlement Centre Information System), which enables the recording of all treasury transactions across the group on a daily basis. Targets set for 2022 in the financial strategy in terms of engagement with banks, debt portfolio management as part of the day-to-day operations and projects of the Company and its organisations, and further centralisation of financial transactions were met. In order to improve the performance of the treasury functions, in 2022, the Company continued to work towards: Accumulating spare cash in the accounts of pool leaders51; GOVERNANCE SYSTEM 51. A pool leader is an organisation of the Corporation on whose accounts spare cash is accumulated and subsequently redistributed between ROSATOM's organisations through loan agreements. The organisation performing the functions of a pool leader is appointed under the resolution of ROSATOM's executive bodies. GOVERNANCE SYSTEM JSC ATOMENERGOPROM / ANNUAL REPORT / 119

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