Rosatom’s Going Global: HR Challenges

1. ROSATOM STATE ATOMIC ENERGY CORPORATION “ROSATOM” Rosatom’s Going Global: HR Challenges Larissa Strutskaya, PhD Project Director ROSATOM

2. Outline • ROSATOMstrategic goals and HR initiatives • Graduate recruitment and development • Professional and technical training and development • Management development & Talent management

3. 1. ROSATOM strategic goals and HR initiatives

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

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

6. ROSATOM: new 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: • ROSATOMGlobal 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 havebeen 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 ROSATOMgroup 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

7. 2. Graduate recruitment and development

8. Education in Russian universities for students from partner countries • 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) • 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 Secondary school graduates Graduates of secondary schools with Russian language skills Specialists with higher education and Russian language skills, or specialists having NPP working experience A foreign student can start from any relevant educational level.

9. Special events have been organized in 2011-2013to increase attractiveness of ROSATOM employer brand among graduates A project has been implemented to attract the best graduates The Tournament of Emerging Professionals – TEMP. In 2013 900 students from 200 universities took part in it including international teams.95 have been selected for employment. (Won 1st prize in nomination Best HR Project of the year in 2012) 150 best students have been awarded with grants from 11 universities that are part of ROSATOM university network. 250 81 % of students who took part in the poll are prepared to work in ROSATOM companies 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). Career fairs have been organized in MEPhI and its 19 regional branches, 7000 students and more than 100 ROSATOMcompanies took part in them. 10000 MEPhI appeared in the rating «TimesHigherEducation» (TOP-400 universities worldwide) alongside with Moscow State University The No of school graduates who chose to take exam in physics has grown: 2009 – 21%, 2012 – 26%. To identify talents among high school pupils the project ROSATOM school has been launched to cover more than 100 000 pupils in25 towns where Rosatom companies are situated. 100000

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

11. 3. Professional and technical training and development

12. 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)

13. Professional/technical competencies identification and development Professional area is a combination of tasks and topics which requires a unique combination of professional/technical skills and knowledge • 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

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

15. 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 ROSATOMstrategic 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 ROSATOMand global companies took part in the projects (workshops, focus groups, individual interviews) • Training and development programmes were designed and implemented for each competency

16. 4. Management development & talent management

17. Performance management system – RECORD(results + competencies + realization (achievement) + development) 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 35000 employees in 122 organizations. Evaluation: Readiness to international career • Goals Feedback Fulfillment of Development Plan • Professional skills • Competencies • Implementation instruments: • Trainings, e-learning • Communication program • SAP based evaluation (15% of staff)

18. The Concept of ROSATOM Human Capital Development Managing corporation TOP 30 Managing Business Group/ Division Managing Organisation 4 Management Levels ROSATOM ASSET 3 Managing Function 2 Managing Managers ROSATOM CAPITAL/ Global Leaders Managing Others 1 ROSATOM TALENTS/ Global Talents Schools of Management Management Talent Pool Professional Talent Pool

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

20. Corporate competencies development: basic management skills inventory

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

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

23. ROSATOM Corporate Academy Statistics Distribution of the Academy participants to key training programmes(2011-2013 гг.), % Geographical spread of training activities(2011-2013 гг.), %

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

25. ROSATOM launched an International Talent Development Program in 2012 II. Evaluation Selection IV. Integration I. Information III. Development Program 47 participants: Strategy, Finance, Marketing, Engineers, HR, PR, Logistics, Supply Chain Development Program Global Leaders Professors from the Leading Business Schools of the World Promotion Campaign Global Leaders Rosatom Personnel 3–5 projects implemented during the Program 3-5 key projects selected and developed during the Program Development visits to partnership companies Regular Alumni events Self-nomination • Selection criteria • Leadership competencies • Career and development motivated • Fluent English • Experienced in international projects • Industrial experience • Managerial experience Global Professionals Corporate Academy Global Leaders Workshop Trainings and Master Classes on 6 key professional areas Global Professionals 150—160finalists Received around 600 applications Management’s role Providing References Providing Support and motivation Projects Sponsorship Nominations

26. 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

27. Individual reports ROSATOM project of top managers evaluation and development • Results: • Steps 9 competencies of Rosatom top managers Team report • Individual development plans • Team development plan • Corporate values • Key competencies for development: • TIMELY DECISION MAKING • MANAGING PEOPLE • MOTIVATING OTHERS • SUPPORTING COMPANY GOALS AND VALUES

28. Thank You for Your Attention! Larissa Strutskaya, PhD Project Director International Business Development Division ROSATOM E-mail: LMStrutskaya@rosatom.ru Phone: +7 (916) 6055560