About Company

Information about the Report and its Preparation

INFORMATION ABOUT PREVIOUS REPORTS

In accordance with the Federal law "On joint stock companies" of 26 December 1995 № 208-FZ, which obliges open joint stock companies to publish an annual report and annual financial reporting, the Open Joint Stock Company "TECHSNABEXPORT" (hereafter – JSC "TECHSNABEXPORT" or the Company) introduced public reporting. Fifteen Reports have been published since 1996, the last four of which have been made available on the official website of the Company (http://www.tenex.ru).

Since 2009 JSC "TECHSNABEXPORT", being one of the key organisations of the State Atomic Energy Corporation ROSATOM, has been taking part in the pilot project aimed at establishing an industry-wide system of public reporting. The 2010 annual public Report of the Company won the second place in the nomination "Best integrated Report" at the III industrial competition of public Reports, and the third place in the nominations "Best level of disclosure" and "Best quality of public reporting system". It also received a special prize "Breakthrough of the year" for a considerable improvement in the quality of the Report compared with the year 2009.

The Company has been preparing IFRS reporting since 2003. Consolidated financial Reports include Reports on the holding company and its subsidiaries, as well as the key performance indicators of its affiliates. IFRS reporting is prepared by 31 July of the year following the reporting year and provided to the stakeholders on request.

DESCRIPTION OF THE COMPANY'S 2011 PUBLIC ANNUAL REPORT

The 2011 public annual report of the Company (hereafter – the Report), prepared in the integrated format, covers both financial and non-financial aspects of the Company's performance. The Report has been prepared in accordance with the current legislation, the State Atomic Energy Corporation ROSATOM Policy on public reporting, Sustainability reporting Guidelines of the Global reporting Initiative (GRI, G3.1 edition), AA1000 Stakeholder Engagement Standards of the Institute of Social and Ethical Accountability, as well as the requirements of the JSC "TECHSNABEXPORT" public reporting standard.

The Report has been published in Russian and in English. An interactive electronic version of the Report is published on the Company's website for the sake of convenience.

INFORMATION DISCLOSURE IN THE REPORT

In the course of preparation of this Report special attention has been paid to the disclosure of the information on "New challenges – new solutions", a topic to which the management and stakeholders of the Company assigned the highest priority. It reflects the results of the Company's activities and plans following the Fukushima accident and the shift in the world nuclear energy industry with an emphasis on a client-oriented approach and reliability of supply.

Recommendations suggested by the Company's stakeholders in the course of the Report preparation have been taken into account (Appendix № 7).

Financial reporting has been adjusted for RAS (Appendix № 1).

The level of information disclosure in the Report corresponds to B+ Application level of the GRI G3.1 Guidelines. The list of indicators of the State Atomic Energy Corporation ROSATOM reporting, GRI standard disclosures and indicators disclosed in the Report is provided in Appendix № 8.

SCOPE OF THE REPORT

The Report contains detailed information on the performance of JSC "TECHSNABEXPORT". The Report does not contain consolidated financial indicators of the Company's Russian and foreign subsidiaries and affiliates. In cases when certain aspects of subsidiaries and affiliates' performance were deemed crucial in terms of sustainable development, they were included into the present Report and specially marked (JSC "SPb "IZOTOP").

The Report has been prepared in accordance with the legislation on the protection of the state and trade secrets, using the information available to JSC "TECHSNABEXPORT". The Report covers the year 2011. Past and future periods are mentioned in the context of the Company's strategy, comparison of important factors, indicators and performance results, as well as in forecasts and risk assessments, which are probable in nature. In addition to the information that describes the actual facts, the Report contains a description of events that could happen in the future and their evaluation, which have to be considered as probable in nature. Any statements in this Report that are not statements of facts shall be considered forecasting statements. Such forecasting statements are valid only at the moment when they are made public.

JSC "TECHSNABEXPORT" (unless otherwise stated in the legislation) does not commit to foresee or update these forecasts or consider the consequences of the new information as it becomes available.

CONFIRMATION OF RELIABILITY OF THE REPORT CONTENT AND ITS CONFORMANCE TO STANDARDS

B+

AA1000AS
Application level, verified by an independent auditor

Reliability of financial reporting has been confirmed by the financial auditor LLC "Accountants and Business" advisers (Appendix № 2).

The Report of the Audit Commission following the verification of the Company's financial and business performance is provided in Appendix № 4.

Inspection of conformance to the B+ Application level and verification of the Report in accordance with AA1000AS Assurance Standards has been carried out by an independent auditor. The Statement on the audit is provided in Appendix № 9.

The level and quality of stakeholder engagement has been confirmed by those stakeholder representatives who participated in the dialogues and public consultations in the course of compiling the Report. Their opinion and recommendations are provided in the Statement on the public verification of the Report.

STAKEHOLDER ENGAGEMENT DURING REPORT PREPARATION

In the course of developing the Concept of the Report a number of the Company's stakeholders, whose engagement was essential during the preparation of the Report, were determined.

A number of events with stakeholder participation took place during the period from January until April 2012. The events were attended by representatives of the specific divisions of the State Atomic Energy Corporation ROSATOM and other nuclear industry enterprises, state regulatory and oversight authorities, Moscow offices of the Company's partners, mass media, as well as non-profit and environmental organisations (Stakeholder engagement).

On April 25, 2012 the public consultations took place to discuss the Report draft in order to prepare the public verification, i.e. to receive the key stakeholders' representatives' verification of the relevance and completeness of the information disclosed in the Report in accordance with the AA1000SES international standard, as well as the Company's ability to take into account observations and suggestions made by the stakeholders. The Statement on the public verification is provided in Chapter Conclusion on the public verification of the Report.

Agendas, lists of participants and protocols of the events have been published on the Company's official website.

REPORT PREPARATION PROCESS

In 2011 the Company completed the process of establishing a system of public reporting that meets modern requirements.

Following the orders of JSC "TECHSNABEXPORT" Director General the Standard of public annual reporting, the Regulations for the public annual reporting and the Decree about the Commission of stakeholders have been enacted.

In addition, the Committee for public reporting of JSC "TECHSNABEXPORT" (hereafter – the Committee) and the Commission of stakeholders (hereafter – the Commission) have been established. The job descriptions of the Company's employees that form the Committee have been amended accordingly.

In the course of developing the Concept of the Report the recommendations of the Committee for public reporting of the State Atomic Energy Corporation ROSATOM, opinions of the stakeholders expressed during the last year's reporting campaign, as well as the dialogue № 1 held in January 2012 in the form of a questionnaire, were taken into consideration.

The Concept of the Report, as well as the assignment of responsibility for providing the initial information for the Report, including disclosure of the public reporting indicators between the Company's divisions, have been approved by the order of the Company's Director General.

In accordance with the JSC "TECHSNABEXPORT" Regulations for the public annual reporting an, internal audit has been carried out to verify the conformance of the preparation process of the Report to the requirements of the of the State Atomic Energy Corporation ROSATOM Policy in the area of public reporting and the Company's normative documents in the area of public reporting – the Statement of the audit is provided in Appendix № 5.

Non-financial consultants and auditors have been involved in the Report preparation on a contract basis.