About Company

Statement from JCS “TECHSNABEXPORT” Top Management

LADIES AND GENTLEMEN!

The 2011 public annual report of JSC "TECHSNABEXPORT" is aimed at a wide range of stakeholders and covers in great detail the top priority area "New challenges – new solutions", which reflects the activities of the Company in the world nuclear industry after a major shift caused by the Fukushima nuclear power plant accident.

To briefly describe the performance of JSC "TECHSNABEXPORT" in 2011, we can state with satisfaction that despite a series of cancelled deliveries under the contracts with Japanese clients and a reduction in option orders under a range of other contracts, the Company has once again demonstrated a positive business development in all the key areas.

The volume of exported uranium products and services increased by 2.7%, while the portfolio of export orders for a 10-year period increased by 34%.

The HEU-LEU contracts have been executed flawlessly, as usual, which secured about USD 1 billion in Russia's federal budget.

Eleven new contracts have been signed, and additions to the existing two long-term contracts for supply of low-enriched uranium products and services have been secured with countries in the US, Europe, Asia and Africa. In the result the volume of the total portfolio of the Company's contracts until 2025 and further exceeded USD 25 billion.

The contract for providing technical assistance in construction of the 4th stage of a gas centrifuge plant in China has been completed nine months ahead of schedule.

The two strategic transport and logistics projects on the North-West and the Far East of Russia have been continued in order to reduce the transport costs and improve reliability of supplies.

The next stage of improving the corporate management systems has been completed. The Company has launched a project of developing and implementing supply chain security management systems that would meet the requirements of the international standard ISO 28000 supply chain security management systems. The corporate risk management system has been developed further.

The system of key performance indicators (KPI), which was implemented in 2009, helped improve the performance of the Company even further. In 2011 the KPI system was cascaded to the level of the Company's department directors and deputy directors of subsidiaries and affiliates. All the employees of JSC "TECHSNABEXPORT" and its subsidiaries have fully achieved the prescribed KPIs. The Company's integral indicator of achieving the KPIs exceeded the target by almost 10%.

We would like to use this chance to express our gratitude for the good work to all our staff and partners, both in Russia and abroad. Without cooperation with them we would not have been able to achieve this level of success.







Chairman of Board of Directors
V.V. Travin






Director General
A.A. Grigoryev