ATOMIC ENERGY POWER CORPORATION JSC ATOMENERGOPROM PRESENTATION 1 - PowerPoint PPT Presentation

ATOMIC ENERGY POWER CORPORATION JSC ATOMENERGOPROM PRESENTATION 1

Presentation Contents ATOMENERGOPROM in brief Nuclear energy development forecast Affiliates of ATOMENERGOPROM 2

Restructuring of the Atomic Industry State Corporation ROSATOM Atomic Energy Power Corporation JSC “Atomenergoprom” Nuclear radiation safety and 89 Enterprises decommissioning Applied Engineering Nuclear fuel Power scientific Russia and cycle generation research export Nuclear Nuclear science defense Export of Development Non - nuclear complex Machine- activities uranium and of building services technologies Goals of the establishment of JSC “Atomenergoprom”: To consolidate the civil part of nuclear industry into an integrated full-cycle company of international scale and to increase its efficiency and to enhance its competitiveness To divide civil and defense sectors of nuclear industry To create conditions for corresponding Russian nuclear industry to international integration processes To realize effectively a large-scale program of building NPP in Russia 3

General Company Information JSC Atomenergoprom was established in 2007 according to Russian Federation Presidential Decree № 556 of 27.04.2007. The charter was approved by Russian Federation Government Resolution № 432 of 06.07.2007 The State Corporation Rosatom owns 100% shares of JSC Atomenergoprom (Federal law N 317-FL of 01.12.2007) Shares of 89 enterprises of Russian atomic industry will be contributed into equity of JSC Atomenergoprom (incl. 31 JSC, 55 FSUE, 3 FSEI) The staff totals approximately 193,000 employees. Atomenergoprom absorbs a unique experience, which has been accumulated through all sectors of nuclear fuel cycle and construction of NPP during 60 years Government Support: Federal Target Program “Development of Russian Nuclear Energy Industry in 2007-2010 and for a period till 2015» envisions financing totaling 1471,4 bln RUR (Russian Federation Budget – 674,8 bln RUR – 45%). 4

Mission Atomenergoprom mission is to provide safe and effective economic development, life quality growth and preservation of the environment Atomenergoprom contributes to economic growth, social stability, prosperity and progress, provides protection of environment and rational usage of natural resources. The company aims at being a responsible member of the world community, known and respected all over the world. Core strategic principle – technological leadership in the global nuclear industry Company’s strategy is to advance to both to unification and technological improvement of product and to diversification of sources of revenue and the geographic expansion 5

ATOMENERGOPROM in brief Nuclear energy development forecast Affiliates of ATOMENERGOPROM 6

The Worldwide Nuclear Installed Capacity Forecast Till 2030 GW 98% 98% NPP growth NPP growth 800 731 691 700 551 Average 600 538 530 529 482 500 447 438 368 402 400 +9% 300 2005 2010 2015 2020 2025 2030 WNA 2005 Max WNA 2005 Med IAE A 2006 Max IAE A 2006 Min IE A 2006 Alt IE A ‐ 2006 Ref DOE ‐ E IA 2006 Ref Red Book OE C D Max Red Book OE C D Min WNA 2007 projects growth from 415 to 833 GW or from 12% to 126% of installed capacity from 2030 7

Electricity Consumption Growth In Russia * bln. kWh 1800 133% 133% growth growth 20,5 % 1500 to 362 bln to 362 bln kWh kWh 16,5 % 1200 14,6 % 900 15,9 % 71,8% 71,8% 79,5% growth to growth to 85,4% 83,5% 600 1404,9 bln 1404,9 bln kWh kWh 84,1% 300 0 2006 2010 2015 2020 CHPPs ТЭС , ГРЭС АЭС NPPs HPPs NPP generation growth from 155,1 bln.kWh to 362 bln. kWh (2006 → 2020 ) – base scenario, i.e. 20,5% of total Russian electricity generation; NPP growth is achieved by new construction and modernization of existing NPPs *According to General Plan of Electricity Power Plants Allocation (base scenario) adopted by Russian Government Decision dated February 22th 2008 #215- р 8

Increase of capacity according to General Allocation till 2020 Dynamics of nuclear generation Program of putting into operation and (taking into account modernization*) decommissioning of nuclear units (GW) 24,87 Base scenario Decommissioning 19,12 59,0 Expanded scenario 53,2 11,08 38,1 26,9 23,5 2,07 Installed capacity (GW) 3,9 2006 2010 2015 2020 2006-2010 2011-2015 2016-2020 Till 2010 4 new nuclear units are to be put into operation; 2011-2015 – 10 new nuclear units ; 2016-2020 – 23 units according to base scenario, or 28 units according expanded scenario During 2016-2020 г . г . – decommissioning of 9 units – 3,9GW * Increasing of capacity on operating equipment taking into modernization 9

General Allocation Plan: Map of Russia in 2020 PEVEK (FNPP) Active NPPs NPPs under construction BILIBINO Planned NPPs KOLA BALTIC LENINGRAD SEVERODVINSK KALININ (FNPP) TVER SMOLENSK CENTRAL KURSK NIZHNIY NOVGOROD NOVOVORONEZH BELOYARSK ROSTOV SEVERSK BALAKOVO PRIMORSKAYA SOUTH URALS Unit statistics Active - 31 units Under construction - 11 units (incl. 2 floating) Planned - 31 units (incl. 2 floating) Upgrade – 14 units Decomissioning – 9 units (incl. 3 in Bilibino) 10

World nuclear power units under construction (2008 )* 10 7 24 12 1 3 11 Finland Russia 2 5 2 6 Canada 1 3 10 Bulgaria 1 France Slovakia 6 2 1 2 1 1 Iran S. Korea USA Japan 2 Pakistan China India Т aiwan - nuclear units under construction 1 - nuclear units planned Brazil 1 1 1 South Argentina GE Africa AREVA Number of nuclear units KHNP Today there are about 35 nuclear under construction NPCIL power units, 12 of them are being CGNPC constructed by Atomenergoprom. 28% 12 № 1ATOMENERGOPROM *Sources: Atomenergoprom, IEAE, WNA 0 2 4 6 8 10 12 14 11

Active Units Worldwide Toshiba/ Westinghouse 117 AREVA 95 3 rd worldwide by ATOMENERGOPROM 69 quantity 64 GE-Hitachi AECL 29 MHI 18 KHNP 8 0 40 80 120 units Toshiba/ Westinghouse 108 AREVA 101 GE-Hitachi 4 th worldwide by 49 ATOMENERGOPROM installed capacity AECL 18 56 MHI 15 KHNP 8 0 40 80 120 GW Source: Atomenergoprom 12

ATOMENERGOPROM in brief Nuclear energy development forecast Affiliates of ATOMENERGOPROM 13

Main Enterprises ОАО “ATOMENERGOPROM” MINING GENERATION OJSC “Atomredmetzoloto” OJSC “ENERGOATOM” OJSC “PIMCU”, OJSC “Khiagda”, OJSC “Dalur”, JV “Zarechnoye”, MACHINEBUILDING JV “Akbastau”, JV with Cameco, OJSC “Atomenergomash”, JV “Alstom Atomenergomash”, OJSC “ZiO”, CONVERSION AND ENRICHMENT OJSC “VPO Tochmash”, “MSZ Molniya” OJSC “AECC”, OJSC “SCC”, OJSC“UECC” ENGINEERING OJSC “PO ECP” OJSC “Design-bureau Hydropress”, OJSC “OKBM”, OJSC “NIKIET”, 3 OJSC “Atomenergoproject” (Moscow, FABRICATION Saint-Petersburg, Nizhniy Novgorod) OJSC “TVEL”, OJSC “MSZ”, OJSC “NCCP”, OJSC “ChMP”, OJSC “CMP”, OJSC “MZP” EXPORT OF ENGINEERING CJSC “ATOMSTROYEXPORT” EXPORT OF URANIUM PRODUCTS & SERVICES OJSC “TENEX” TECHNOLOGY DEVELOPMENT OJSC “Engineering Centre “Russian RESEARCH AND DEVELOPMENT Gas Centrifuge”, OJSC “VNIINM”, OJSC “ NIIAR”, OJSC “ IRM” OJSC “NPK Khimprominginiring” 14

Technology Chain Research and development Uranium mining Fuel fabrication Conversion and NPP enrichment construction Manufacturing of gas centrifuge Machinebuilding Generation Spent nuclear fuel management 15

Global Presence of JSC “Atomenergoprom” Finland, Sweden, the Netherlands, USA Russia Belgium, Germany, France, Spain, Great Canada Kazakhstan Britain, Switzerland, Poland, Czech Mexico Ukraine Republic, Hungary, Slovakia, Lithuania, Armenia Bulgaria, Slovenia Japan China South Korea Vietnam India Mongolia Iran 36 countries Argentine Australia Brazil South Africa Namibia Libya 16

Uranium mining Uranium Mining Forecast, ‘000 t ATOMENERGOPROM 25 Growth 5,7x 5,7x 20 Atomredmetzoloto (ARMZ) 15 25% JV in Kazakhstan 10 Khiagda Dalur PIMCU 5 Elkonskiy UDK Olovskaya Gornoye Mining MCU 0 2007 2010 2015 2020 2024 Source: ARMZ JV in Canada JVs in New JV: Note: 25% in 2024 includes JV in Kazakhstan Kazakhstan: (Cameco) Canada, Extractable Reserves of Uranium, ‘000 t Ukraine Zarechnoye, JV in Armenia Mongolia, Akbastau 342 Elkonskiy Mining Namibia PIMCU, Olovskaya MCU Dalur 156 Foreign assets of ARMZ UDK Gornoye Main Business Activities: 583,000* t Secured supply of raw materials matching growing 2-nd demand of nuclear industry; worldwide Uranium mining and raw material base replenishment; Khiagda 41 Use of the newest technologies (in-situ leaching); *Including reserves in Kazakhstan 17