3. KEY PERFORMANCE RESULTS

3.1 Situation in Power Industry 3.2 International Activities 3.3. Generating Capacities. Developing Generating Potential 3.4. Ensuring Safety of Russian NPPs 3.5. Radiation Effect on Personnel and Population 3.6. Environmental Impact 3.7. Financial Results 3.8. HR Policy, Occupational Safety and Health 3.9. Innovation Management. Knowledge Preservation and Transfer 3.10. Social Policy. Developing Areas of Presence. Charity 3.11. Investment Program

3.10. Social Policy. Developing Areas of Presence. Charity

Development of social capital and areas of presence forms an integral part of the Concern’s Strategy implementation. The Concern’s social policy is implemented in full compliance with the Unified Industry-Level Social Policy of Rosatom State Corporation.

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SOCIAL POLICY

The Concern’s social policy is implemented for the purpose of increasing attractiveness in the labor market, attraction and retention of young and highly-professional experts, enhancing the employees' engagement and efficiency of social expenses 1 .

VOLUNTARY INSURANCE FOR EMPLOYEES

In accordance with current legislation, the Concern employees are entitled to medical services at the respective health care institutions. In addition to local Compulsory Health Insurance (CHI) programs and state guarantee programs, the Concern provides to its employees Voluntary Health Insurance (VHI), and insurance against accidents and diseases.

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 at health care institutions of their region and at the institutions located in Moscow and Saint Petersburg.

PERSONNEL REHABILITATION

Each year the Concern conducts activities for personnel rehabilitation in departmental clinics and health resort institutions. For example, 10,206 persons received health rehabilitation and treatment in 2015 at 10 clinics of nuclear power plants under rehabilitation programs to treat cardiovascular, musculoskeletal, nervous system, gastrointestinal, and other conditions. Another 8,349 employees enjoyed health rehabilitation treatment away from home, at rehabilitation institutions and resorts in 20 health centers on the Black Sea, the Mineral Waters area of the Caucasus, and midland Russia.

CULTURE AND SPORTS ACTIVITIES. YOUTH POLICY

As 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.

IMPROVING HOUSING CONDITIONS

In 2015, housing construction and assistance to employees in obtaining permanent housing was carried out in accordance with the Concern’s 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 mortgage downpayment, and/or partial reimbursement of interest on the mortgage loan.

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PRIVATE PENSION INSURANCE

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

Pension obligations are covered from the Concern’s general resources with the assessed value of 196.7 mln rubles in 2015 (218.7 mln rubles in 2014). The obligations are covered in their entirety according to the pension benefit arrangement. The obligations with respect to the pension plan for 2015 were assessed as of December 31, 2014 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 the Concern, the degree of participation in the pension plan is determined on the basis of the length of service in the nuclear power industry — at least 15 years at the time of achieving the retirement age according to pension legislation of the Russian Federation 1 .

The expenses on private pension arrangement in 2015 totaled 196.7 mln rubles (218.7 mln rubles in 2014). The total number of the Concern’s retirees receiving non-government pension in Atomgarant Non-Government Pension Fund is 14,785 persons (15,308 persons in 2014). The average private pension amounts to 2,376 rubles (2,137 rubles in 2014).

The pension funds paid by Atomgarant NGPF as non-government pensions to retirees for 2015 total 299.1 mln rubles (284.2 mln rubles in 2014). 6,252 employees participated in the Concern’s program on co-financing of pension (6,339 persons in 2014).

VETERANS’ MOVEMENT

Taking care of its veteran employees is an important thrust of the 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 2015, the actual number of retired employees in the Inter-Regional Public Organization of Concern ́s Veteran Employees (IPOCVE) totaled 16,232 persons (16,100 persons in 2014), including: 1,109 participants of the emergency response campaign at the Chernobyl NPP and PO Mayak (1,072 participants in 2014), 549 Great Patriotic War, wartime homefront veterans, and concentration camp prisoners (546 in 2014), and 7,894 veteran employees of the nuclear power industry (7,102 in 2014).

From the funds allocated by the Concern under charity contracts, IPOCVE provided 74.6 mln rubles as financial aid to retirees in difficult situations (47.3 mln rubles in 2014); 52.6 mln rubles for health resorts and medical rehabilitation of retirees (10.4 mln rubles in 2014).

The expenditures on execution of direct contracts with hospitals 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 54,351 cases (23,891 cases in 2014).

CHARITY

Charity is one of the best corporate traditions that had been observed by the Concern since its incorporation. Co-funding is one of the principles laying the basis for relations between the Concern and charity recipients. The Concern partners up with other businesses and organizations in virtually every project. In addition, the Concern’s charity projects have input from individuals, including employees of nuclear plants and the 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 NPPs, landscaping; support for cultural projects that promote moral values and responsibility.

Moreover, in 2015, the Concern provided sponsor assistance to organizations for approximately 38.7 mln rubles, including Dynamo Volleyball Club — Leningrad Oblast.

505.55 mln rubles are to be destined to charity in 2016.

CHARITY COSTS, MLN RUBLES

CHARITY AND SPONSORSHIP CATEGORY 2013 2014 2015
Traditional events under the charity policy 187.7 169.1 118
Charitable activities in NPP locations (including aid to retirees, persons in need, institutions for children, sports infrastructure, etc.) 112.0 120.5 132
Industry-level programs 167.0 106.8 315
Total 466.7 396.4 565
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DEVELOPING AREAS OF PRESENCE

Agreements between Rosatom State Corporation and regions of nuclear enterprises presence are effective for three years. According to the results of 2015, additional tax payments in regions of the Concern presence were made in the amount exceeding 11.7 bln rubles, including those for municipal entities’ activities — 1.26 bln rubles (1.22 bln rubles in 2014).

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. Information on investments in infrastructure development in 2015 is given in Section 3.3 – Generating Capacities. Developing Generating Potential.

Pursuant to the comprehensive program on provision of the Concern’s employees with housing, over 625,000 m 2 of housing is planned to be built until 2020, which is about 10,500 apartments. 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.

VALUE CREATED AND DISTRIBUTED BY ROSENERGOATOM CONCERN JSC ACCORDING TO RUSSIAN ACCOUNTING STANDARDS, BLN RUBLES

ITEM NO. INDICATOR 2013 2014 2015
1 Created economic value 239.0 266.5 279.7
2 Incomes (sales revenue, gains from financial investments, and sold assets) 239.0 266.5 279.7
3 Distributed economic value 143.4 160.0 160.3
4 Operating costs (payments to suppliers and contractors, cost of purchased materials) 95.6 108.8 105.6
5 Salaries and other payments and benefits for employees 27.2 27.6 28.6
6 Payments to capital providers 1.1 1.4 1.5
7 Gross tax payments (before individual profit tax and VAT) 19.0 21.8 24.1
8 Investments in communities, including: Donations 0.5 0.4 0.6
9 Retained economic value (sum of Items 1 to 3) 95.6 106.5 119.4
10 Contribution to GDP (sum of Items 5 to 9) 143.4 157.7 174.1

COOPERATION WITH EDUCATIONAL INSTITUTIONS AND PROGRAMS FOR YOUNG EMPLOYEES

Cooperation 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 the Kola NPP, Atom Classes, My Profession lecture cycle for high school students at the Leningrad NPP, and others.

Programs for young employees of the Concern seek to create conditions for efficient work, and to help developing creative potential.

For additional information on youth relations refer to Section 3.9 — Innovation Management. Knowledge Preservation and Transfer.