The Future of Nuclear Market Challenges and Solutions: New Projects, New Products, New Business-Models

Dzhomart Aliev Director General Rusatom Overseas

26.06.2013

Rosatoms Global Perspective For Nuclear Energy Development

Canada

Central & Eastern Europe

Russia

Korea Western Europe USA Africa & Middle East Japan India China

Latin America

Rest of Asia

Rosatom's Portfolio, units 21 12

Top Five 2013 (Ranks I-V) Ranks VI-X 2010 2011 2012

19

www.rosatom.ru

The content of this presentation is for discussion purposes only, shall not be considered as an offer and doesnt lead to any obligations to Rosatom and its affiliated companies. Rosatom disclaims all responsibility for any and all mistakes, quality and completeness of the information.

Key Global Trends: the Rise of China, Africa & Middle East Region

Rosatoms Base Case Installed Nuclear Capacity Forecasts, MWe

2013
United States France Japan South Korea China Russia 99 800 62 919 44 215 22 936 21 213 20 932 South Korea Russia 31 028 22 343 United States France China Japan

2020
103 863 66 094 53 617 31 404 China United States France South Korea Japan Russia

2030
124 197 113 444 67 456 38 550 32 728 32 059

www.rosatom.ru

The content of this presentation is for discussion purposes only, shall not be considered as an offer and doesnt lead to any obligations to Rosatom and its affiliated companies. Rosatom disclaims all responsibility for any and all mistakes, quality and completeness of the information.

New Nuclear Projects Form New Market Conditions and New Type of Requirements

Established nuclear power countries*

India Russia China France USA South Korea

Brazil UK Iran Slovakia Pakistan Finland Taiwan

Canada India Russia China France USA South Korea

Mexico South Africa Czech Republic Romania Netherlands Bulgaria Hungary Finland Ukraine

NEW

Conditions Products Businessmodels

2013-2019

Commercial Operation of New Projects

2020-2030
Poland Indonesia Malaysia Australia Chile Belarus Kazakhstan Turkey

Newcomers**

UAE Belarus Turkey

Egypt Jordan Lithuania Nigeria Philippines Thailand Venezuela Vietnam Saudi Arabia Bangladesh

- Established NSSS Vendors

- NSSS Vendors and NSSS Customers

- NSSS customers

Number of countries wishing to include nuclear energy in their energy program is growing, creating competitive environment with new conditions, demand for new products and business-models
*Rosatoms Base Case Forecast Excluding New Nuclear Power Counties ** Rusatom Overseas Upper Projections

www.rosatom.ru

The content of this presentation is for discussion purposes only, shall not be considered as an offer and doesnt lead to any obligations to Rosatom and its affiliated companies. Rosatom disclaims all responsibility for any and all mistakes, quality and completeness of the information.

New Conditions Suggest Mixed Solutions

Conventional Model
Vendor

NSSS-based Model
NSSS Vendor Local Suppliers International Suppliers

Multi-contract Model
Vendor Local Suppliers Competitors/Partners International Suppliers

Customer Vendors Target Share

Customer Vendors Target Share

Customer Vendors Target Share

30%
80%

50%
Country Readiness for Nuclear Power

Newcomers

Established nuclear power countries

Developed nuclear markets

In order to meet the demand from all types of customers Supplier has to be ready to propose offers corresponding to each of model in demand

www.rosatom.ru

The content of this presentation is for discussion purposes only, shall not be considered as an offer and doesnt lead to any obligations to Rosatom and its affiliated companies. Rosatom disclaims all responsibility for any and all mistakes, quality and completeness of the information.

Global Supply Chain is a Key Element of New Business Models

Research Centers with diverse levels of autonomy and operation responsibility

Dealers or local independent distributors

Provision of services through the local players

Effects (direct)*
Around 15,000 jobs in peak (9,000 in average) Around $ 15 bn. revenue of local companies Around $ 3,5 bn. tax income of local government

Effects (indirect)*
1x10: 1 job in operating NPP creates 10 jobs in infrastructure Access to vendors global pipeline (80 units by 2030)

* For a typical 4-unit NPP

The content of this presentation is for discussion purposes only, shall not be considered as an offer and doesnt lead to any obligations to Rosatom and its affiliated companies. Rosatom disclaims all responsibility for any and all mistakes, quality and completeness of the information.

www.rosatom.ru

New Products: Entering New Competitive Landscape

Large capacity (>700 MW) Medium capacity (300 - 700 MW) Small capacity (10 - 300 W)

Rosatom Solutions
VVER-TOI VVER1200 VVER1000 BN-1200 BN-800 VBER-300 RUTA-70 SVBR-100 BREST KLT-40S VVER-300 NIKA-70 VK-300 RITM-200 VKT-12

Competitors Solutions
ACR-1000

Canada

EC-6 TWR IRIS HPM

USA

ARC-100 SSTAR PRISM Fuji MSR

STAR-LM ENHS EM2 GT-MHR SmAHTR

GEMSTAR

RADIX TPS

NuScale mPower W. SMR Hl-SMUR

-1000 ABWR

ESBWR

USA
Argentina Brazil

IMR Atmea1 EPR-1600 CPR-1000 SWR-1000 ACPR-1000 PEACER

Japan

LSPR GTHTR MRX CAREM FBNR Flexblue HTR-PM ANTARES NHR-200 ACP100

APR-1400

France CNP-300 China Republic of Korea PFBR-500 India

NP-300

ALLEGRO CEFR SMART

PBMR PHWR AHWR300

South Africa

Development of S&MR technologies will lead to diversification of supply and the emergence of a range of vendor offers

www.rosatom.ru
Source: Rusatom Overseas estimates, Rosatom, UxC

The content of this presentation is for discussion purposes only, shall not be considered as an offer and doesnt lead to any obligations to Rosatom and its affiliated companies. Rosatom disclaims all responsibility for any and all mistakes, quality and completeness of the information.

Emergence of Global Long-Term Demand for Small and Medium Reactors

SMR Installed capacity & Market forecast**

46,5 Small and Medium Reactors Installed Capacity, Gwe Market Forecast, 196 bln1

Russia France Slovakia Tunisia Morocco Nigeria Jordan Saudi Arabia UAE India Kazakhstan Armenia China Japan S.Korea

27,7

USA

Vietnam Thailand Malaysia Indonesia

2,6 1,1 0 0,2 2013 0 2015 2020 2030 1,6

Ghana Peru Chile Brazil Namibia

Buy Build Finance Operate Control Non-proliferation

Australia South Africa

Uruguay Argentina

- Base case*

- Upper Case*

Completely new market with its own rules

Great potential for new types of customer

Great potential for newcomers

Great deal of new designs

In order to keep up with the growing pace of the market new regulatory environment is required to accelerate the process of prospective technologies licensing
* Rusatom Overseas estimates ** Rosatom Forecasts

www.rosatom.ru

The content of this presentation is for discussion purposes only, shall not be considered as an offer and doesnt lead to any obligations to Rosatom and its affiliated companies. Rosatom disclaims all responsibility for any and all mistakes, quality and completeness of the information.

New Competitive Landscape forms Growing Demand for New Contract Models
BOO, BOT models have already proved their sustainability Potential Number of NPP Units in in other industries Commercial Operation under BOO, BOT Currently, newcomers are looking for more convenient contract models in order to secure more international involvement Under BOO, BOT supplier has an opportunity to bring the following advantages to a new market: Operational experience Sustainable NPP maintenance Spent fuel take-back option Decommissioning Key advantage of BOO, BOT model: Financial risks are shared by a supplier and a customer Operational risks are mitigated more effectively Rosatom Case
Financing scope and parameters may be widely granted by the Russian vendor depending on different factors, i.e. country creditworthiness, Rosatoms equity share, volume of Russian equipment supply, presence of co-operation on other projects, etc. Rosatom is the first to become NPP operator in a foreign country; Thus, a unique proposition with very low financing costs could be achieved Contract Models*

* Based on Rusatom Overseas Upper Case Estimates

www.rosatom.ru

The content of this presentation is for discussion purposes only, shall not be considered as an offer and doesnt lead to any obligations to Rosatom and its affiliated companies. Rosatom disclaims all responsibility for any and all mistakes, quality and completeness of the information.

Rosatom is Able to Meet any New Customer Demand by Adjusting to the New Market Requirements
Product Line
Rosatom offers a full range of reactor capacities - from Large Capacity VVERs to Small Capacity SVBRs.
Large capacity (>700 MW)
VVER-TOI VVER-1200 VVER-1000 BN-1200 BN-800 BREST VVER-300

Bild Own Operate Model

Republic of Turkey - Akkuyu NPP Reactor type: VVER-1200 Total capacity: 4 800 MWt Construction years: 2011-2021

Medium capacity (300 - 700 MW)

Small capacity (10 - 300 W)

KLT-40S NIKA-70 VBER-300 RUTA-70 RITM-200 SVBR-100 VK-300

Akkuyu NPP the first BOO project overseas

Integrated Solution
Rosatom offers complete solution from uranium supplies to NPP construction operation and decommissioning
Fuel fabrication Mining Research and development Conversion and enrichment NPPs engineering Power equipment and services & construction Gas centrifuges manufacturing Spent nuclear Power fuel treatment Generation www.rosatom.ru

Localization
Rosatom has a long-lasting experience in equipment production and services localization and sourcing

Local suppliers share in equipment and services supply

LOVIISA Finland KUDANKULAM India New proposals for EU countries are based on AES-2006 design

1970-1980

2002-2011

20%

39%

Up to 70%

2011

10

Thank You for Attention!

Dzhomart Aliev Director General Rusatom Overseas E-mail: DFAliev@rosatom.ru Phone: +7 495 730 08 73
www.rosatom.ru

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