Rosatom and Czech industry perspective cooperation

Rusatom Overseas

Executive Vice-President

Leos Tomicek

STATE ATOMIC ENERGY CORPORATION “ROSATOM”

October 2013

ROSATOM

Rosatom Global Operations

EuropeFinland, Sweden, the Netherlands, Belgium, Germany, France, Spain, GB, Switzerland, Czech Republic, Slovakia, Hungary, Lithuania, Bulgaria, Slovenia

North America USA, Canada, Mexico

Latin AmericaVenezuela, Argentina, Brazil

CISRussia, Ukraine, Kazakhstan, Belorussia, Armenia

AsiaChina, Japan, South Korea, Vietnam, India, Bangladesh, Mongolia

MENATurkey, Libya, Morocco, Algeria, Egypt, Iran, Jordan

Australia

5 continents. More than 40 countries.

2The content of this presentation is for discussion purposes only, shall not be considered as an offer and doesn’t lead to any obligations to Rosatom and its affiliated companies. Rosatom disclaims all responsibility for any and all mistakes, quality and completeness of the information. 

Leader in key segments

AfricaNamibia, South Africa, Tanzania

in uranium enrichment

#1 in new NPPs construction

#1in uranium reserves#2in the world installednuclear capacity#2

17 % of the world nuclear fuel market

$70 billion portfolio

The world’s only company of the complete nuclear power cycle

Referential Gen 3+ NPPs with active & passive safety systems

Providing outstanding opportunities for the local industry

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ROSATOM

Rosatom NPP projectsworldwide*

3

Under way Tendering/negotiations

27

Potential

China

India

TurkeyArmenia

Czech Republic

Jordan

KazakhstanUkraine

Slovakia

Hungary

Finland

Malaysia

Brazil

Bangladesh

Vietnam

Argentina

Indonesia

4

2

1

22

22

22

412

12 2

21

4

2

1

2

Belorussia2

South Africa8

Saudi Arabia2

Rosatom NPP construction perspective backlog – about 80 units

2

Nigeria

4United Kingdom

2

2

4

2832

*As of October 2013

Khmelnytsky NPP (Ukraine, 2)

Ostrovets NPP (Belarus, 2)

Akkuyu NPP (Turkey, 4)

Metsamor NPP (Armenia, 1)

Kudankulam NPP (India, 4)

Tianwan NPP (China, 2)

Ninh Thuan NPP (Vietnam, 2)

Ruppur NPP (Bangladesh, 2)

ROSATOM

Baltic NPP (2)

Beloyarsk NPP (1)

Leningradskaya NPP (2)

Novovoronejskaya NPP (2)

Rostovskaya NPP (2)

Russia 9

43,4

17,4

26,0

8,7

145,0

14,5

17,4

17,4Civil construction & engineering

Nuclear steam supply system (Russian suppliers)

Turbine and generator equipment

Valves, pumps and piping

Electrical equipment

Instrumentation and control equipment

Other equipment Air cooling systems

~ 15% - Russian supply

~ 30-40% - local content

~ 45-50% - global sourcing

Opportunities for Rosatom suppliers: Order volume for NPP construction global projects

4

Rosatom’s perspective purchases for NPPs construction – around 300 bln $ by 2030

ROSATOM

Country Plans for new build

Bulgaria 1 unit of Kozloduy NPP

Czech Republic 2 units of Temelin NPP. Bid process is underway.

France 1 unit of Penly NPP.

Finland Bid/negotiation process for 2 new units is underway

Hungary 2 units of Paks NPP. Tender TBA in 2013-2014

Lithuania 1 unit of Visaginas NPP

Poland 6GW. First tender to be announced

Romania 2 units of Cernavoda NPP

Slovakia 1 unit of Bohunice NPP

Slovenia 1 unit Krsko NPP under consideration

Sweden New units construction replacing the old ones

United Kingdom 15-20 GW

Countries previously committed to nuclear new build remain optimistic on its development.More than 50 GW new NPPs envisaged by year 2030

- Planning new build

- Open tender/negotiations

Russia

Finland

United Kingdom

Lithuania

PolandGermany

Italy

Switzerland

Bulgaria

Romania

Czech R.

Slovenia

Slovakia

Hungary

Sweden

France

- Ban on new build

Planned new build projects in Europe

3

ROSATOM

6

Current projects: Finland

Sign the contract for supplying Hanhikivi 1 NPP by end 2013

2010

2011

Fennovoima was given Decision-in-Principle by Parliament

Pyhäjoki site chosen

February 2013 Fennovoima started mid-sized rector option assessment with ROSATOM as a potential supplier

April 2013 Fennovoima and ROSATOM started direct negotiations

July 2013Fennovoima and ROSATOM signed Project Development Agreement aiming at NPP supply

September 2013 Fennovoima proposes investment decision for ROSATOM NPP to its owners

2007 Finnish power company Fennovoima Oy founded

In Finland 2 VVER-440 units have been used safely in Loviisa for decades. According to WANO it is one of the

most reliable reactors in the world today

Reactor proposed for Pyhäjoki is AES-2006:• latest evolution in VVER reactors designs• corresponds with IAEA and EUR requirements• will be adapted to be in accordance with Finnish

national safety standards

Target

ROSATOM

Current projects: United Kingdom

The UK government has announced plans aiming at 16 GWe of new nuclear capacity online by 2030

Memorandum on Collaboration on co-operation in the sphere of nuclear energy

Collaboration Agreement to explore opportunities for joint construction and operation of nuclear power plants based on VVER reactor technology in the UK. Rolls-Royce will undertake engineering and safety assessment work for ROSATOM ahead of potential licensing of VVER reactor technology in the UK

Collaboration Agreement to explore opportunities for joint construction and operation of nuclear power plants based on VVER reactor technology in the UK. Fortum will support the work by bringing on board nuclear competence in various areas such as safety and waste management on commercial terms

TargetComplete Generic Design Assessment (GDA) for the latest VVER reactor design in the UK

7

ROSATOM

8

Propose capacity: 1200-2400 MW

Proposed construction start date: 2021*

Proposed commissioning date: 2028*

Preliminary site seismicity: 0.34g

Project peculiarities

The project implementation is supposed to be carried out by JESS (which is owned 51% by JAVYS and 49% by CEZ Bohunice (100% CEZ affiliated company))

Possibility of involvement of foreign investors in the project.

Proposed NPP site:Bohunice NPP, Jaslovske Bohunice,Trnava District, Slovakia

* In accordance with Feasibility study carried out by the Slovak side

Poland

Czech Republic

Ukraine

RomaniaHungaryAustria

Slovakia

Project parameters

Project of extension of Bohunice NPPMain characteristics of the project

• In January 2013 Rosatom (represented by Rusatom Overseas), JAVYS, JESS, CEZ and CEZ Bohunice signed MoU on the cooperation on the project of extension of Bohunice NPP.

• Currently the Russian and the Slovak side are jointly investigating the possibility of Rosatom participation in the project as a potential partner.

ROSATOM

9

Current projects: Czech Republic

Project data: Power units: 2 VVER х1200 MW (basis – AES-2006 Project) General Designer: SPbAEP JSC Contract type: ЕРС

Project particularities: International consortium with Skoda JS as a leader Czech project with Russian design More than 70% participation of Czech firms in the project Well known technology for the Czech industry Transfer of innovative technologies and know-how SPV Nuclear Power Alliance (NPA) created

2010

2011

Pre-Bid Stage, Consultations

2009 Tender announcement

Completion of Pre-Bid Discussion

MIR.1200 Consortium submitted its offer to CEZ

July 2012

CEZ announced preliminary assessment of bids

March 2013

Tender results expected2014

Win tender for Temelin 3,4 completion and implement profitable for Czech Republic project

Target

ROSATOM

In operation since 2000 Type of reactor: VVER-

1000 (V320) Installed capacity: 2 x

1000 MWTemelin NPP

Czech – Russian cooperation in nuclear energyJoint projects

Dukovany NPP

Czech-Russian cooperation in nuclear fuel domain

As a result of tender procedure TVEL Fuel Company has been chosen as a supplier of nuclear fuel for Czech NPPs

No delivery failure in the supply of Russian fuel has ever been experienced

Czech-Russian JV Alvel established with the focus on localization of fuel services for Czech NPPs, as well as promoting Russian high-tech goods to the European market

In operation since 1985 Type of reactor: VVER-

440 (V213) Installed capacity: 4 x

440 MW

Russia-design VVER plants in Czech Republic

10

ROSATOM

2008 –2011

2012

Czech – Russian cooperation in nuclear energyhas lasted for 50 years

Rosatom’s purchases of Czech equipment and services

112,6 million EUR

More than 100 million EUR

….and many others

Czech Suppliers of Rosatom:

10 Czech companies supplied equipment for Kudankulam NPP in amount of 44,2 million EUR

11

ROSATOM

Localization in Temelin NPP Completion Project

12

More than 250 Czech companies from all regions will participate in the Project

ROSATOM

Temelin NPP: Social-economic impact

13

SOCIAL

ECONOMIC

EMPLOYMENT

CAPABILITIES

REVENUE

PUBLIC INCOME

DIRECT INDIRECT

• Increased employment during construction

• New jobs for NPP operation and

service

• Increased employment for local sub-contactors and suppliers

• Employment for local businesses serving NPP’s employees

• Involvement of local engineers and researchers

• Development of high-tech production base

• Development of higher education in nuclear engineering

• Educational programs for workers

• Revenue earned by national suppliers and contractors

• Revenue earned by local and national sub-contractors

•Revenue earned by local businesses

• Taxes from local and foreign contractors and suppliers and from electricity sales

•Development of infrastructure

• Taxes from sub-contractors and local businesses

•Increase of investment attractiveness of the region

GEOPOLITICAL EXPORT OF PRODUCTS, COMPETENCES, SKILLS AND KNOWLEDGE TO NPP PROJECTS WORLDWIDE, BECOMING NOT LOCAL, BUT GLOBAL SUPPLIER FOR EU REGION AND GLOBAL NUCLEAR INDUSRTY

ROSATOM

Localization as a growth factor for the Czech industry and economy

14

ROSATOM

MAIN CONDITION: Total level of localization 70% (Of total value of the project)

Potential

Benefits of cooperation for Czech companies

Production expansion

Improvement of technological competences

Licenses for the production of equipment for Russian design NPPs

Involvement in Rosatom Supply Chain

Up to 50 000 new jobs

Opportunities

Czech companies

More than 80 VVER units – $300 bln up to 2030

Cooperation within innovation projects:

500-1000 SVBR-100 units – $300–600 bln up to 2040*13 memorandums with Czech companies signed in 2012

MBIR research reactor (Dmitrovgrad, Ulianovsk region)Contract with EGP Invest for turbine island design signed in 2012

15*estimated by IAEA

ROSATOM

Thank You for Attention!

www.rosatom.ru

ROSATOM