generating records annual report 2014

Social Capital and Goodwill. Developing Areas of Presence. Charity

Development of social capital and areas of presence forms an integral part of the Concern’s development strategy. The social policy implemented by the Concern in its areas of presence enjoys active support of communities and reflects the needs and goals of social development in these communities.

SOCIAL POLICY1

Under the collective agreement employees of Rosenergoatom Concern OJSC are entitled to voluntary health insurance (VHI), private pension insurance (PPI), and health-improving programs. Great attention is paid to support long serving employees of the industry and develop the potential of the youth. G4-11, including footnote 2

VOLUNTARY INSURANCE FOR EMPLOYEES

In accordance with current legislation, the Concern employees are entitled to medical care in Russian Federal Medical-Biological Agencies (FMBA) institutions. In addition to local Compulsory Health Insurance (CHI) programs and state guarantee programs, the Concern provides to its employees voluntary medical insurance and insurance against accidents and disease. Employees can insure their family members at their own expense using the corporate discount. Under the VHI program employees and their family members can receive special information, consulting, and medical assistance both in the medical institutions of their region and in institutions located in Moscow and St. Petersburg.

The Concern’s Social Expenditures in 2012-2014, thousand rubles

2012

2013

2014

Plan for 2015

Costs per employee

68,7

75,8

70,8

74,14

Total costs for implementation of social policy

2 399 639

2 750 786

2 653 527

2 813 457

Including by main programs

1   Health programs (VHI, accident insurance)

274 203

309 718

326 477

324 470

2   NGO

547 584

1 126 185

218 7072

203 535

3   Health resort treatment

204 528

219 069

299 488

325 502

4   Support of retirees

324 836

331 300

343 898

314 200

5   Assistance in housing acquisition

21 280

148 962

184 252

338 445

6   Organization of culture and sports events

458 672

309 529

522 541

472 190

PERSONNEL REHABILITATION

Each year the Concern conducts activities for personnel rehabilitation in departmental clinics and health resort institutions. In the year of 2014, for example, 11,298 persons received health rehabilitation and treatment in 10 clinics at the nuclear plants, under rehabilitation programs to treat cardiovascular, musculoskeletal, nervous system, gastrointestinal, and other conditions. Another 7,660 employees enjoyed health rehabilitation treatment away from home, in rehabilitation institutions and resorts in 20 health centers on the Black Sea, the Mineral Waters area of the Caucasus, and midland Russia.

PRIVATE PENSION INSURANCE G4-EC32

The Concern provides for private pension insurance of employees through industry-based Atomgarant Non-Government Pension Fund under the executed pension agreement.

Pension obligations are covered from the general resources of Rosenergoatom Concern OJSC which assessed value was 218.7 mln rubles in 2014. The obligations are covered in their entirety according to the pension benefi t arrangement. The obligations with respect to the pension plan for 2014 were evaluated as of December 31, 2013 and obtained on the basis of the actuarial expectation with due regard to the number of employees who participate in the Concern’s pension plan and an average contribution per pension plan participant employee.

Upon retirement of an employee of Rosenergoatom Concern OJSC, the degree of participation in the pension plan is determined based on the length of service in nuclear power industry – at least 15 years at the time of achieving retirement age according to pension legislation of the Russian Federation.

The Concern’s expenses on private pension arrangement in 2014 totaled 218.7 mln rubles. The total number of the Concern’s retirees receiving non-government pension in Atomgarant Non-Government Pension Fund is 15,308 persons. The average private pension amounts to 2,137 rubles.

The pension funds paid by NGPF Atomgarant as a non-government pensions to retirees for 2014 total 284.2 mln rubles. 6,339 employees participate in the Concern’s program on co-financing of pension.

Information on Share of Salary Contributed by Employee/Employer

Age of the participant

Ratio of pension contributions (in % of employee’s monthly salary)

Employee

Employer

18-29

0,8

1,6

30-35

1

2

36-39

1,3

2,6

40-44

1,5

3

45-49

1,7

3,4

50 and older

2

4

YOUTH POLICY, MASS SPORTS AND PHYSICAL CULTURE

As a part of its youth policy the Concern traditionally pays special attention to working with young people increasing their educational level and literacy, promoting academic and research activities among young people.

IN 2014 OVER 2,500 PERSONS FROM THE CONCERN’S TEAMS AND CREATIVE TEAMS OF NPPS TOOK PART IN CORPORATE SPORTS AND CULTURAL EVENTS. THE FUNDS SPENT TO SUPPORT SPORTS AND PHYSICAL CULTURE TOTALED 522,541 THOUSAND RUBLES.

Activities aimed at implementation of the youth policy in 2014

In May the 10th International Tournament in Brain Games (“What? Where? When?” and “Brain Ring”) was held among young employees of the nuclear power industry in the city of Zarechny (Beloyarsk NPP).

In September a team from the Union of Exploration Troops of Rosenergoatom Concern OJSC participated in the inter-regional Memory Watch in the Kaluga Oblast.

In October Smolensk NPP hosted the 12th International Youth Festival “Automn Maximum” for Teams of the Club of the Cheerful and Quick-Witted from various companies operating in nuclear power industry.

In October Smolensk NPP hosted the Coordination Board of Authorized Representatives of Youth Organizations of Rosenergoatom Concern OJSC.

In November Novovoronezh NPP hosted the International Research Conference of Young NPP Employees “Youth of NPPs: Safety, Science, and Production”.

The most important cultural and sports activities held in 2014

The 8th Summer Spartakiada Games for employees of Rosenergoatom Concern OJSC “Sport NPP- 2014” (Rostov NPP, 300 persons).

“Nuclear Regata-2014” water sports open tournament for prizes of Rosenergoatom Concern OJSC (Kola NPP, 150 persons).

Energy of Life-2014” competition among creative teams of retirees of Rosenergoatom Concern OJSC (Novovoronezh NPP, 160 persons).

Ceremonial events dedicated to the 60th anniversary of Russian power energy industry (city of Obninsk, 400 persons).

6th Spartakiada Games for employees of the Headquarters of Rosenergoatom Concern OJSC (Moscow, 250 persons).

IMPROVING HOUSING CONDITIONS

The Concern annually provides significant support to hundreds of employees’ families to improve their housing conditions. In 2014, housing construction and assistance to employees in obtaining permanent housing was carried out in accordance with the Concern housing program approved in 2012. The Concern helps its employees with purchasing permanent housing and, depending on their needs, employees can request interest-free loans to pay their first mortgage installment, and/or partial reimbursement of interest on the mortgage loan.

VETERANS’ MOVEMENT

Taking care of its veteran employees is an important directive of the Concern’s social policy. The main objective for the veterans’ movement is to maintain the achieved level of cooperation with veterans, getting them involved in activities of their choice, allowing them to share their experiences with younger specialists, providing skilled medical assistance, and helping them with daily chores.

IN 2014 THE ACTUAL NUMBER OF RETIRED EMPLOYEES IN THE INTER-REGIONAL ORGANIZATION OF CONCERN´S VETERANS (MOOVK) TOTALED 16,100 PERSONS, INCLUDING: 1,072 PARTICIPANTS IN EMERGENCY RESPONSE CAMPAIGN OF THE CHERNOBYL NPP AND PO MAYAK, 546 GREAT PATRIOTIC WAR, WARTIME HOMEFRONT VETERANS, AND CONCENTRATION CAMP PRISONERS, AND 7,102 VETERAN EMPLOYEES OF THE NUCLEAR POWER INDUSTRY.

FROM THE FUNDS ALLOCATED BY THE CONCERN UNDER CHARITY CONTRACTS, MOOVK PROVIDED 47.3 MLN RUBLES AS FINANCIAL AID TO RETIREES IN DIFFICULT SITUATIONS; 10.4 MLN RUBLES FOR HEALTH RESORTS AND MEDICAL REHABILITATION OF RETIREES. THE EXPENDITURES ON EXECUTION OF DIRECT CONTRACTS WITH NFM TO PROVIDE MEDICAL SERVICE TO VETERANS TOTALED 13.4 MLN RUBLES, ON ORGANIZATION OF HEALTH IMPROVING REST AND CULTURAL ACTIVITIES TOTALED 3.9 MLN RUBLES. VETERANS RECEIVED NURSING SERVICES AND PRESENTS ON HOLIDAYS AND ANNIVERSARIES. COUNTING ALL EXPENSE ITEMS, FINANCIAL AID WAS PROVIDED TO RETIREES IN 23,891 CASES.

DEVELOPING AREAS OF PRESENCE

In 2014 the spending on activities under contracts with regional governors in the regions where Russian NPPs are located totaled 1.22 bln rubles. The indicator of implementation of the contracts, based on the activity program in 2014, totaled 103.4%.

In 2014 the Concern transferred 8,632 mln rubles to the settlement account of the responsible participant of the consolidated taxpayers group (Atomenergoprom JSC) for payment of corporate income tax (in 2013 – 5,601 mln rubles).

Investments in infrastructure form an important aspect of the Concern’s social responsibility. The Concern’s investment programs typically include construction of social facilities and infrastructure. Key infrastructure components in the hometowns of nuclear plants were built simultaneously with construction of NPPs. The table below contains data about past investments into the development of infrastructure in 2014. Information about the Concern’s contribution to infrastructure of geographical regions in the previous time periods is provided in the Concern’s annual report for 2013.

PURSUANT TO A COMPREHENSIVE PROGRAM ON PROVISION OF THE CONCERN’S EMPLOYEES WITH HOUSING, OVER 625,000 M2 OF HOUSING IS PLANNED TO BE BUILT, WHICH MEANS ABOUT 10,500 APARTMENTS UNTIL THE YEAR 2020.

CONSTRUCTION OF HOUSING IS ONE OF THE MOST IMPORTANT CONDITIONS IN ATTRACTING QUALIFIED PERSONNEL. IT IS ESPECIALLY IMPORTANT GIVEN THE SCALE OF CONSTRUCTION OF NEW POWER UNITS.

Infrastructure Facilities Created in Areas of Presence with Concern’s Support in 2014

Areas

Infrastructure facilities put into operation and work completed

Beloyarsk NPP,
Town of Zarechny,
Sverdlovsk Oblast

  • Neptun swimming pool (the largest social facility of all put into operation in 2014);
  • Youth theater;
  • New kindergarten for 219 children (the construction is completed);
  • Construction of kindergarten with a swimming pool (delivery is scheduled for 2015);
  • Gas supply program to villages of the Zarechny town circuit;
  • Construction of new residential micro-district in Zarechny is currently at the final stage, the first set of residential houses is delivered and people already live there;
  • Several projects on modernization of housing maintenance and utilities is currently in progress;
  • The Concern’s grants were used to built the urban sports complex «Belka Ropes Park» and acquire sports motorcycles for the youth motorsports club.

Kola NPP, town of Polyarnye Zori, Murmansk Oblast

  • New sports and fitness center in the integrated center for social services;
  • Reconstruction of the open ice court;
  • Improvement of the urban park of health and recreation;
  • Construction of Spiritual and Outreach Center under the St. Trinity Cathedral and the Avenue of Construction Workers.

Kursk NPP, town of Kurchatov, Kursk Oblast

  • 14 storey apartment building is put into operation in the town of Kurchatov;
  • Major repairs of motor roads;
  • Repairs in schools and kindergartens;
  • Efforts on setting up a network of basic educational institutions;
  • Teaching programs for the disabled as a part of the program «Accessible Environment»;
  • Sports and recreation complex, boiler, and fire station were built in the town of Lgov and the Lgov Oblast;
  • An office building was reconstructed to create a sports complex and a kindergarten.

Leningrad NPP, town of Sosnovy Bor, Leningrad Oblast

  • Funds were allocated to the Malakhit sports and culture complex for the acquisition of equipment for biathlon center; to secondary schools of general education: No. 7 to build and reconstruct the sports area of the school, No. 3 to perform major repairs of the sports hall, No. 6 as a construction cofinancing, No. 2 to repair sports ground.

Novovoronezh NPP, town of Novovoronezh, Voronezh Oblast

  • Construction of bell-tower in the Cathedral of the Christ the Savior and construction of the John the
  • Baptist Cathedral were continued;
  • Children’s playground in hospital No. 33 was improved;
  • A stele was installed at the entrance to the city of Novovoronezh to commemorate the 50th anniversary of putting into operation of the first in Russia VVER nuclear power unit;
  • Construction of the urban stadium was completed;
  • Construction of the martial arts center was continued;
  • Improvement of the Knowledge Square at the Novovoronezh Polytechnic College;
  • Improvement and repair of streets of the urban circuit.

Smolensk NPP, town of Desnogorsk, Smolensk Oblast

  • An apartment building with 135 apartments was put into operation;
  • Assembly of the stele dedicated to the first construction workers of the city and NPP;
  • Assembly of the monument «Good Angel the Peace Keeper»;
  • Improvement of the Avenue of Glory and the Square of Labor Glory, «Health Path», and the city in general;
  • Assembly of the monument dedicated to the saints Pyotr and Fevronia of Murom.

Work with educational institutions in the areas of NPP presence includes career consulting for high-school students, and support of target-oriented education of students, organization of academic competitions and contests. For example, the Concern is involved in annual vacancy fairs for students of specialized institutions of higher education, offering internships and apprenticeships at nuclear plants. Among the unique projects are educational projects for schoolchildren, such as the Children’s Nuclear Academy at Kola NPP, Atom Classes, a lecture cycle “My Profession” for high school students at Leningrad NPP, and others.

Programs for young employees of the Concern seek to create conditions for efficient work and to help developing creative potential. Key directions to support young specialists are as follows:

More details about work with youth is provided in Intellectual Capital. Knowledge Preservation and Transfer Innovation Management.

CHARITY

The Concern implements charitable programs since its incorporation, and considers this activity one of its best corporate traditions. After years of cooperation, main principles and terms of interaction have evolved between the Concern and charity recipients. Co-financing is one of such principles: the Concern partners up with other businesses and organizations in virtually every project. In addition, the Concern’s charity projects have input from private individuals, including employees of nuclear plants and headquarters.

Traditional areas for charity and sponsorship include: assistance to socially disadvantaged citizens – orphaned children or persons in dire straights, the disabled, Chernobyl disaster liquidators, war and homefront veterans, large families, etc.; restoring and renovating places related to Saint Sergius of Radonezh and Seraphim of Sarov; church building in the towns of NPP presence; support and promotion of sports and a healthy lifestyle, and patriotism; events aimed to improve social and sport infrastructure in communities around NPP, landscaping; support for cultural projects that promote moral values and responsibility.

Completed construction of the Seraphim of Sarov Cathedral in the town of Kurchatov in 2013 became one of the important projects funded by the Concern’s charitable contributions. In 2014 work on interior finishing and decoration and external improvement of the Cathedral was in progress. In 2014 the Concern participated in celebration of the 700th anniversary of Sergius of Radonezh in the Holy Trinity St. Sergius Lavra (financing of hotel construction for pilgrims) which also represented an important contribution.

Charity and Sponsorship Costs, mln rubles

Charity and sponsorship category

2012

2013

2014 

Traditional events under the charity and sponsorship policy

191,4

187,7

169,1

Charitable activities and sponsorship in nuclear plant locations (including aid to retirees, persons in need, institutions for children, sports infrastructure, etc.)

186,0

112,0

120,5

Industry-level programs

209,2

167,0

106,8

Total 586,6 466,7 396,4

Also, in 2014 the Concern provided sponsor assistance to 8 organizations for approximately 117 mln rubles, including Baltika Football Club OJSC and Dynamo Volleyball Club NCP – Leningrad Oblast.

Seraphim of Sarov Cathedral in Kurchatov City