Dear Colleagues!

On some extent 2012 is of historical importance for us. That year we made a decision on establishment of NIAEP-ASE Integrated Company. Merger with JSC ASE was carried out in accordance with the NIAEP Strategy adopted in 2010 and the Strategy on Engineering Development in Russia of State Corporation ROSATOM.

NIAEP-ASE Integrated Company shall form the basis for development of engineering business of State Corporation ROSATOM. We face the ambitious task of becoming the leading engineering company not only in Russia, but also worldwide. I am confident that our team of highly professional and responsible employees is equal to this task.

Integration of NIAEP advanced expertise in the field of NPP engineering and construction and ASE unique experience in international project management has significantly extended opportunities of our engineering company both on the Russian and global markets. It shall be noticed that our Company has more than 20 generating units, which are designed and constructed both in Russia and abroad.

Our most significant 2012 achievement is the commercial operation of generating unit 4 of the Kalinin NPP which took place on September 25. This achievement in the nuclear industry is of nationwide importance. Currently, Kalinin NPP generating unit 4 is the most advanced one in the territory of Russia. The construction proved that we are capable of keeping projects both on schedule and under budget. The main contributors to this achievement, our colleagues and employees, received state and official awards.

The Company proceeds with construction of units 3 and 4 of the Rostov NPP and units 1 and 2 of the Baltic NPP. Since October 2012 NIAEP-ASE has been the General Designer and General Contractor of the Kursk NPP second stage construction. It is planned to apply the most advanced reactor of VVER-TOI type in the structure of this power plant.

The second stage construction of the Yuzhnouralsk HPP is well under way; commissioning of unit 1 is planned for 2013.

Quite a number of significant events took place on international markets.

NIAEP is an open and transparent company which annually reports on its activity to the interested parties. Year after year we increase the level of reporting. I am proud to announce that in 2009, 2010, and 2012 our Company’s annual reports were recognized the best in the nuclear power industry. This annual public report is prepared to acquaint all interested parties with the detailed results of our activity in 2012.

In the end of the year the reactor start-up of Kudankulam NPP unit 1 in India was launched. Initial concrete placement for Tianwan NPS unit 3 in China took place on December 27.

On July 18, 2012 we signed the general contract on construction of the Belarusian NPP. Under this Contract, the Republic of Belarus will receive a new ready-to-operate nuclear power plant in compliance with all international safety standards.

In 2012 we submitted a bid to the Temelin NPP (Czech Republic) tender.

Our Company has also carried out significant large-scale work on spent fuel and nuclear waste handling at Russian and foreign facilities.

Entering the market as a global engineering company, in our activity we attribute equal importance to innovation, safety, and quality. We actively introduce the Multi-D technology to form the management system on its basis for control over the whole NPP life cycle from designing to decommissioning. This technology enables 3D-modelling of construction and mounting operations with consideration of optimal employment of resources prior to start of actual construction. This technology provides the possibility to proceed to a modeling of design and construction work on the base of a 3D model with the optimized use of resources. Its application reduces duration of construction and cost of projects and simultaneously increases labor productivity, work quality, and safety level at nuclear power facilities. This new technology is utilized for NPP engineering with VVER-TOI reactor.

In 2012 NIAEP arranged International Research and Practice Forums on Multi-D Technology at the Nizhny Novgorod Fare. We are proud to say that the Forum is becoming an inportant platform where world-class experts can share their opinions. Over 600 participants representing nearly 100 companies and 20 countries were registered during the last Forum.

Among our major tasks for 2013 we highlight elaboration of NIAEP-ASE Integrated Company Strategy.

Priority objectives of the Company for 2012–2016 consist in performance of all Investment Program implementation plans declared as of today.

In its activity NIAEP is always guided by sustainable development principles. Human capital is one of the Company’s first priorities. We create new working places fitted out with modern equipment, providing our employees with safe working conditions, respectable salary, and social package and helping them to develop their professional skills and move up the career ladder.

President of JSC NIAEP

V.I. Limarenko