Rosatoms Going Global: HR Challenges STATE ATOMIC ENERGY CORPORATION ROSATOM Larissa Strutskaya, PhD Project Director ROSATOM

Outline ROSATOM strategic goals and HR initiatives Graduate recruitment and development Professional and technical training and development Management development & Talent management 2

ROSATOM strategic goals and HR initiatives

Fully Integrated Nuclear Technology Company Uranium production Uranium enrichment Fuel fabrication NPP Design, Engineering and Construction Electricity generation Power equipment manufacturing Services and modernization 4

More than 25% of revenue is generated by overseas assets More than 50% of revenue comes from global operations Rosatom is among Top 3 nuclear companies (by revenue in key segments) 5 ROSATOM in 2020 Localize all business segments operations in key markets Establish multiple alliances and partnerships with global and local players Benefit from global talents and local workforce Source, develop and transfer technologies to maintain global leadership Take full advantage of global capital market Ensure business transparency as a key operating standard Key Actions 2020 Targets Globalization of operations is the key priority

ROSATOM: new challenges Strategy-related HR challenges Strategy-related HR challenges : Provide global infrastructure for expanding ROSATOM business abroad Provide a pipeline of talent to lead new strategic initiatives Increase engagement of human resources to maximize organizational performance keeping safety as a key value Develop technical and leadership competencies of ROSATOM workforce to provide safety and growth To meet those new challenges To meet those new challenges: ROSATOM Global Leaders & Professionals Programmes were launched in 2012: 50 high potential English speaking managers were selected and trained to become leaders of global projects Key professional/technical competencies have been identified and described; 160 professionals were selected and currently go through an intensive training programme to become global experts Performance management, succession planning and leadership development programmes are being implemented Engagement of personnel has been measured in 45 biggest companies of ROSATOM group for two subsequent years; there is some progress but still key issues need to be addressed The HR management expertize we apply in Russia can be applied as part of our integrated solution to our customers and partners 6

Graduate recruitment and development

8 Education in Russian universities for students from partner countries Подготовительно е отделение университета Курсы русского языка со специализи- рованной лексикой До 1 года Социализация Университет Подготовка по специальностям ядерной отрасли (около 10 специальностей) Специалист – 5,5 лет Бакалавр – 4 года Магистр – 6 лет (бакалавр+2 года) Дополнительная профподготовка в специализирован- ных организациях и на АЭС Дополнительная подготовка и переподготовка по ядерным специальностям Как правило 1-2 года АЭС Практический опыт работы на должностях Оперативный персонал – 1-2 года Руководящий персонал – 4-6 лет Secondary school graduates Specialists with higher education and Russian language skills, or specialists having NPP working experience Graduates of secondary schools with Russian language skills A foreign student can start from any relevant educational level. Pre-university study Russian language course with specialized vocabulary Up to 1 year Social skills Pre-university study Russian language course with specialized vocabulary Up to 1 year Social skills University education in nuclear specialties (about 10 specialties) Specialist – 5 years Bachelor – 4 years Master of Science – 6 years (Bachelor + 2 years) University education in nuclear specialties (about 10 specialties) Specialist – 5 years Bachelor – 4 years Master of Science – 6 years (Bachelor + 2 years) Supplementary professional training at specialized institutions and at NPPs supplementary training and retraining in nuclear specialities generally 1-2 years Supplementary professional training at specialized institutions and at NPPs supplementary training and retraining in nuclear specialities generally 1-2 years NPPs Practical work experience Operators – 1-2 years Managers – 4-6 years NPPs Practical work experience Operators – 1-2 years Managers – 4-6 years

Special events have been organized in to increase attractiveness of ROSATOM employer brand among graduates 9 81 % of students who took part in the poll are prepared to work in ROSATOM companies Career fairs have been organized in MEPhI and its 19 regional branches, 7000 students and more than 100 ROSATOM companies took part in them. A project has been implemented to attract the best graduates The Tournament of Emerging Professionals – TEMP. In students from 200 universities took part in it including international teams. 95 have been selected for employment. (Won 1 st prize in nomination Best HR Project of the year in 2012) According to Future today polls ROSATOM turned out to be the most active employer and ranked 11 among the most attractive employers (MEPhI, Fut.ru, 2012) The No of school graduates who chose to take exam in physics has grown: 2009 – 21%, 2012 – 26%. 150 best students have been awarded with grants from 11 universities that are part of ROSATOM university network. To identify talents among high school pupils the project ROSATOM school has been launched to cover more than pupils in 25 towns where Rosatom companies are situated. MEPhI appeared in the rating «Times Higher Education» (TOP-400 universities worldwide) alongside with Moscow State University

What are the best graduates looking for (sociological research of Future Today) 10

Professional and technical training and development

Training and development: HR categories to be developed An example of HR categories for a Russian NPP. Specific nature of the industry implies high requirements for the personnel qualifications. Average No of training hours per year for operating personnel of an NPP – 80 An example of HR categorization (Russian NPPs) 12

Professional/technical competencies identification and development 13 Mining Uranium enrichment NPP operations management Equipment production R&D in the area of nuclear reactors Investment management … Professional/technical training : Obligatory courses required to get licenses and permits to work Special technical skills and competencies development based on SAT approach (IAEA) (Training at local on-site training centres, simulators) Centralized training courses for implementation of industry-wide projects at the Corporate Academy of ROSATOM (e.g. Procurement standards) Centralized training courses at ROSATOM Central Institute of continuous education and training (e.g. Safety standards) On-the-job training and coaching to keep critical knowledge in the industry Professional area is a combination of tasks and topics which requires a unique combination of professional/technical skills and knowledge

14 A Description of the NPP Main Control Room Personnel Training Diagram Selection of Candidates to Job Position Qualification Review Entry Medical Examination Psycho- and Physiological Testing On-the-job- training/ Instruction Knowledge Level Entry Control in TC Exit FSS training (examination) Exams OJT Knowledge Test Shadow training Access to independent work Annual medical examinations Periodical Psycho- and Physiological Testing Continuous Training Annual Knowledge&Skills Examinations Advanced Training Job Position Training: - Classroom training - Simulator Training Licensing NPP site Training Centre

Improving safety via improving competence. Key technical competencies identification, description and development Fukushima lessons: safety evaluation should be integrated with the system of an NPP life cycle management Pilot project in ROSATOM: some professional areas were selected as important for ROSATOM strategic development and key competencies were identified in each area. Example: professional area Managing complex engineering objects through all stages of their life cycle Clusters of competencies: managing internal order; managing projects (managing requirements, project planning, managing timing, managing budgets) For each competency a detailed definition has been worked out and four levels of proficiency Key professionals and experts from ROSATOM and global companies took part in the projects (workshops, focus groups, individual interviews) Training and development programmes were designed and implemented for each competency 15

4. Management development & talent management 16

Performance management system – RECORD (results + competencies + realization (achievement) + development) 17 RECORD is one of the first systems implemented on such a great number of organizations in Russia. In 2012 it was used by more then employees in 122 organizations. Professional skills Goals Fulfillment of Development Plan Readiness to international career Competencies Evaluation: Feedback Implementation instruments: Trainings, e-learning Communication program SAP based evaluation (15% of staff)

The Concept of ROSATOM Human Capital Development 18 Schools of Management Management Talent Pool Professional Talent Pool Management Levels To provide with appropriate levels of management skillsTo grow leaders for CEO roles To grow functional leades ROSATOM TALENTS/ Global Talents ROSATOM CAPITAL/ Global Leaders ROSATOM ASSET TOP Managing corporation Managing Business Group/ Division Managing Organisation Managing Function Managing Managers Managing Others

Identifying talent At an operational level (a company): Performance results (competencies and KPI) Management feedback Completion of a Competency-based application form to leadership development programme Aptitude testing Mobility At the divisional and headquarters levels Performance results (competencies and KPI) Project leadership results Managers feedback Aptitude testing Assessment centre results 19

Corporate competencies development: basic management skills inventory 20

ROSATOM Corporate Academy: key tasks 21 Facilitation and contribution to change implementation projects Development of corporate competencies, dissemination of ROSATOM corporate values Management development at all levels and Hi-Po development Promotion of employer brand of ROSATOM and its companies Development of specific nuclear business- competencies Development of professional (expert) communities and knowledge management

Training in ROSATOM Corporate Academy 22 «Asset» «Capital» «Talents» Hi-Po development programmes TOP management (business club) Middle and line managers (Key competencies development) Professionals (functional training) Senior managementТОП-1000 («Leadership School»)

23 ROSATOM Corporate Academy Statistics

Corporate Academy Infrastructure 24 Rooms – 749 sq.m (11 training rooms + conference hall) Office space – 830 sq.m Переговорные офиса – 47,19 sq.m Rosatom Corporate Academy training Centre Location: Moscow, Kozhevnicheskiy proezd, 1

ROSATOM launched an International Talent Development Program in I. Information II. Evaluation Selection III. Development Program Promotion Campaign Rosatom Personnel Selection criteria Leadership competencies Career and development motivated Fluent English Experienced in international projects Industrial experience Managerial experience Global Leaders Global Professionals Professors from the Leading Business Schools of the World Self-nomination Development Program Corporate Academy 3-5 key projects selected and developed during the Program Development visits to partnership companies Trainings and Master Classes on 6 key professional areas Managements role Providing References Providing Support and motivationProjects SponsorshipNominations Global Leaders Global Professionals 3–5 projects implemented during the Program IV. Integration Received around 600 applications finalists 47 participants: Strategy, Finance, Marketing, Engineers, HR, PR, Logistics, Supply Chain Regular Alumni events Global Leaders Workshop

Key results of Global Leaders Development Programme in 2012/2013 GoGlobal Community formed during the highly intensive 9 months training programme New knowledge and skills acquired Ties with partner companies strengthened (site visits to Rolls-Royce, EDF, Fortum, Electrobras, Escom) The projects initiated in frames of the programme got positive feedback at the meeting with ROSATOM Top Management team 26

ROSATOM project of top managers evaluation and development 1. Development of competency model for top managers 2. Evaluating top managers by 360 degrees methodology 3. Providing feedback based on the evaluation results 4. Design and implementation of development program 5.Identifying values 27 Key competencies for development: TIMELY DECISION MAKING MANAGING PEOPLE MOTIVATING OTHERS SUPPORTING COMPANY GOALS AND VALUES Key competencies for development: TIMELY DECISION MAKING MANAGING PEOPLE MOTIVATING OTHERS SUPPORTING COMPANY GOALS AND VALUES 9 competencies of Rosatom top managers Team report Team development plan Individual development plans Steps Results: Individual reports Corporate values

Larissa Strutskaya, PhD Project Director International Business Development Division ROSATOM Phone: +7 (916) Thank You for Your Attention!