1.3. Value Creation Chain 

This section includes description of The Engineering Division Position in the ROSATOM Value Creation Chain and interactive scheme of the Division business model.
GRI 102-9

1.3.1. The Engineering Division Position in the ROSATOM Value Creating Chain

(GRI 102-9)

Position of Company in the Supply Chain

Engineering Division’s value chain (in the main business core) is part of the value chain of the whole nuclear industry. The role and place of the Company in the chain of NPP construction is determined by the significance of the EPC-contractor’s role in ROSATOM structure – over 60 % of NPP production cost throughout the life cycle is determined by the EPC-contractor effective performance (averaged share of investments, decommissioning and spent fuel management services at the current cost of electrical power).

1.3.2. Business-model

The Engineering Division defines its business model as a system of building value in the short-, mid- and long-term perspective and aiming to achieve strategic goals. The Company’s businessmodel is based on its long-term strategy and sustainable growth of business. The business-model includes: available capital (both own and shared with other stakeholders); management system aimed at maximum efficiency of utilization the available funds; initiatives on value creation. Within the complete value chain, an important role belongs to the funds that change (increase/ decrease, transform); products and services; to the results of value creation initiatives and their contribution into the long-term growth of the Company revenue.

Creating Value for Stakeholders

Service Operation Financing PersonnelTraining Construction Procurement Designing PMC EPC, EPCM

Capital Resources
Highlights 2016
Capital Resources
  • Average staffing number: 14,993 people
  • Employee involvement as of the beginning of year is 70 %
  • Share of personnel with the age up to 35 years is 40 %
Highlights 2016
  • LTIFR JSC ASE EC – 0 %
  • Salary and other employee payments 17,448 mln RUB
  • Employee involvement 78 %
  • The number of personnel that has undergone training is 7.61
Capital Resources
  • Creditable relations with stakeholders
  • 62 % of the local population support the construction of Belarus NPP
Highlights 2016
  • Paid tax dues 3,192 mln RUB
  • Charity payments 195.42 mln RUB
  • International certificate compliance with 3 class of competency in project management, programs and portfolios on base of IPMA Delta model.
Capital Resources
  • Flow-rate of power energy 40.2 GW*h
  • Flow-rate of thermal energy 215,162 GJ
Highlights 2016
  • Expenses for Environment Protection and Environmental Charges 15.23 mln RUB
  • Total waste volume is 76.52 tons
  • Waste of I–V hazard classes 5,508 tons
Capital Resources
  • Сorporate and industry standards
  • Patents and know-how
  • Complex system of project management on the basis of Multi-D technology
Highlights 2016
  • Growing efficiency due to implementation of Production System of ROSATOM (PSR)
  • New patents
Capital Resources
  • Added value / revenue 25.3 %
Highlights 2016
  • Revenue 152.9 bln RUB
  • Gross profit 20.95 bln RUB
Capital Resources
  • Design companies
  • Contractors
Highlights 2016
  • Infrastructure development in the regions of presence
  • Number of power units in the Company’s portfolio – 33
Next section
Our Target Markets This section describes Division share of global NPP-construction market and key diversification markets.
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Strategy Implementation Here one can find description of Division Strategic goals, results of Strategy implementation during the reporting year and Sustainable Development Agenda.