1.1. Strategic Analysis of External Environment 

This section includes interview with Vice-President for Development Ivan Borisov on the implementation of the strategy. Interview is followed by PEST-analysis.

Ivan Borisov,
Vice-President for Development

What was the past year’s contribution into the implementation of the strategy?

In 2016 the establishment of the Engineering Division was completed which enhanced our competitive positions both in NPP designing and construction and in the new business areas becoming new opportunities for our competitive advantages on the market.

The key event of the year was connection to the grid of the state-of-the-art new power unit of Novovoronezh NPP. This is the first generation III+ nuclear power plant in the world. The started reactor is the most powerful (1,200 MW) and the safest in the world. Before commissioning the unit into pilot operation, it will undergo a number of examinations. But the event itself is most significant for the whole nuclear industry. Another important event is related to our goals in business diversification. A PMC contract has been signed with a subsidiary company of JSC Russian Railways. This is the first PMC contract that has been concluded outside the nuclear industry.

Which challenges has the Company confronted this year? How did it respond to them?

Competition from the new players on the market – China and Korea – has become tougher. Competition from alternative power sources is also growing. In this context, the key goal of the Engineering Division is ensuring a competitive LCOE. LCOE is the net present value of the unit-cost of electricity over the whole life cycle including all possible costs, primarily the cost of construction. That’s why the reduction of construction period and construction cost is our key goal.

Besides, the financial problems faced by the traditional competitors in the last year due to the failed project implementation deadlines, can only prove the top priority of tasks related to improvement of the project management system, keeping with the budget and reduction of the main processes time periods. And the initiatives that are being implemented in the company mainly in the area of Multi-D technology and creation of the Unified Information space provide the way to meet the challenge.

What are the plans for 2017 and mid-term prospects for implementation of the strategy?

Our priority goals are determined by the strategic objectives and current external challenges. Regarding enhancement of project budget and time management quality, our goals are, above all, scaling of the tools for managing time, price and quality on the key branch enterprises and building of the industry NPP life cycle management platform based on Multi-D technology.

Regarding new business lines, our main task is building-up of the project portfolio in all segments and receiving of positive references, obviously, on foreign markets as priority.

Also, considering the trends of recent years related to widespread digitalization, we see additional opportunities for us in development of our project management information technology up to the level of the national platform for managing capital objects lifecycle. This is our ultimate goal for mid-term prospects

During elaboration of the Division Strategy, the PEST-analysis is performed that allows to take into account the external environment impact on the Company’s activities. The PEST-analysis results of 2016 are as follows.

Strategic Analysis of External Environment

Next section
Strategy Implementation Here one can find description of Division Strategic goals, results of Strategy implementation during the reporting year and Sustainable Development Agenda.
Previous section
Overview of The Report This section describes key features of the Report: Standards used, disclosure boundaries, material topics, verification.