The business model contains general description of the Concern's activities within the industry, and is provided as transformation of input resources to tangible and marketable results (value for stockholders, products, and services). The business model reflects capitals, resources, and processes participating in the value chain.
Operation of existing NPPs — management of equipment, nuclear fuel, and the process of power and heat production for subsequent marketing.
Construction management of new NPP power units — formation of the Concern's fixed productive assets and infrastructure, from the investment plan to delivery of a finished asset for operation.
Power and heat sale — embraces power sale in the wholesale electricity and capacity market (WECM) and interaction with end consumers of power and heat, including execution of a contract with the end consumer.
Organization / performance of R&D initiated by the Concern aimed at resolving long-term tasks of the Concern's production and technical research activity to the extent of modernization of NPP power unit design and construction processes, increase of service life of main equipment, implementation of new materials and processes, and development of new reactor units.
Modernization of existing NPPs includes all activities aimed at increasing operating performance of NPPs, subject to unconditional safety at all stages of their life cycle.
Development of international activity consists of five main blocks:
Marketing— collection and analysis of information to determine parameters of effective demand, desired commodity (consumer) properties, target markets and consumers, and promotional channels.
Service development— the Concern’s activity on forming a line of services with required consumer properties, approaches to pricing and interaction with target customers.
Sales and contracting— corresponds to activity on service promotion, consumer search, and interaction with consumers up to conclusion of a contract.
Production (provision) of services— contains processes of contractual obligations discharge up to acceptance of services provided, and receipt of payments.
After-sale service— includes reclamation processing, provision of paid and free additional services to ensure competitive performance as part of long-term interaction with consumers.
CONSTRUCTION, ASSEMBLY, AND REPAIR ORGANIZATIONS AND ENTERPRISES
Organizations and enterprises providing services for the Concern during construction and operation of NPPs.
PLANTS SUPPLYING AND REPROCESSING NUCLEAR FUEL
Enterprises supplying reactor fuel assemblies (FAs) to NPPs and accepting spent nuclear fuel for storage and reprocessing.
SUPPLIERS OF SYSTEMS AND EQUIPMENT
First of all, these are industry companies manufacturing equipment, management and control systems for NPPs, as well as suppliers of materials and services from which the Concern obtains materials and services in the open market.
Design institutions involved in development of preliminary and detailed design documentation for the NPPs scheduled for construction.
Industry companies that deal with engineering of reactor plants for new NPP power units, auxiliary equipment and its components.
RESEARCH AND DEVELOPMENT CENTERS
Research, development, design, and engineering organizations of the nuclear power industry providing research and technical support to NPPs, and striving to increase reliability, safety, and economic efficiency of NPP power units. This work also includes development of intelligent systems, software and hardware complexes, simulators, automated process control system complexes, NPP technical diagnostics, and virtual modeling systems for new projects.
Banks and financial institutions providing the Concern with financial resources (loans and credit lines).
The open labor market providing the Concern with labor resources featuring the required competences represented in the market. However, specialized competences absent in the open market are formed by the Concern inhouse.
First of all, water resources required in the power and heat production process at NPPs, and land plots for construction of new NPP power units. The Concern strives to further reduce the environmental impact of its activity.
VALUE CREATION FOR STAKEHOLDERS
The Concern uses sales channels for sale of products (power, heat, and services) to consumers.
As a result of its activities, the Concern generates a positive cash flow that is converted to dividends for stockholders and own investments routed for development.
The information about the Concern’s key partners is given in 2014 Annual Report (page 31).