M N P Onshore & Offshore SHIPBUILDING PROJECTS JSC "KRASNOE SORMOVO" SHIPYARD"

JSC “Krasnoe Sormovo Shipyard” Quality Management Policy The main strategic target of the company’s quality policy is to provide competitiveness and profitability of the company by production and realization of products which meet Customers’ requirements. Tasks that the top management determined to the company’s personnel to achieve the main strategic target Production and realization of the products which meet the requirements of the clients To make products of high quality by exact following a production process (technology of production) Quality management system certification in accordance with GOST and ISO requirements, permanent perfectibility and effectivization of the system

JSC “Krasnoe Sormovo Shipyard” Quality Management Policy The main tasks for the stated target achievement. Production of qualitative products and permanent quality improving Control and analysis of the references, proposals and claims of the clients and Register during building period, trials, and operation of the product. Appropriate functioning of the quality management system and permanent work for its improvement Development and execution of measures for product quality and work performance improvement (quality reporting system and measurement assurance improvement, modification and replacement of the old equipment, improvement of the information support system and management structure system, personnel training, etc.)

JSC “Krasnoe Sormovo Shipyard” Quality Management Policy Initial action principles Initial action principles for policy realization and tasks solutions  Personal responsibility of the top management of the company for the development, implementation, maintaining and control of the quality system. Assigning of the authorized representative (responsible person)  Allocation of funds to conduct the quality policy and to achieve the stated objective  Information of the employees about the general targets and tasks  Integrated solutions of the tasks about the production of the high quality goods and prevention of the quality problems The responsibility of each employee for the quality of their work and goods produced by them. Each person is to know his task and responsibility extent, to be a professional, to improve his professional skills, to analyze his working results and to contribute suggestions for improving of the labor and production quality.

JSC "KRASNOE SORMOVO" SHIPYARD" QUALITY MANAGEMENT SYSTEM QMS JSC "KRASNOE SORMOVO" SHIPYARD" 1 QMS Analysis, Planning and Continuous Improvement   Analysis of quality management system   Quality policy and objectives management   Quality planning and resource allocation 1 QMS Analysis, Planning and Continuous Improvement   Analysis of quality management system   Quality policy and objectives management   Quality planning and resource allocation 2 Measurements, analysis and improvements.   Production monitoring and measurements   Process monitoring and measurements   Consumer satisfaction monitoring and measurements   Internal auditing   Corrective and preventive actions 2 Measurements, analysis and improvements.   Production monitoring and measurements   Process monitoring and measurements   Consumer satisfaction monitoring and measurements   Internal auditing   Corrective and preventive actions 3 Measuring equipment management.   Metrological evaluation of technical documentation   Management of production control, measurement and test equipment   Management of control, measurement and test equipment, metrological assurance 3 Measuring equipment management.   Metrological evaluation of technical documentation   Management of production control, measurement and test equipment   Management of control, measurement and test equipment, metrological assurance 4 Production manufacturing and delivery planning, finance management   Contract analysis   Production planning   Finance management 4 Production manufacturing and delivery planning, finance management   Contract analysis   Production planning   Finance management 5 Production Preparation   Project design documentation management   Special and vital technological processes management   Technological performance control   Planning of the technical development of the company 5 Production Preparation   Project design documentation management   Special and vital technological processes management   Technological performance control   Planning of the technical development of the company 6 Purchasing   Vendors evaluation and selection   Purchasing contracts signing and management   Incoming inspection   Analysis of purchases quality 6 Purchasing   Vendors evaluation and selection   Purchasing contracts signing and management   Incoming inspection   Analysis of purchases quality 8 Production   Production planning   Equipment and outfitting management   Production monitoring and measurements   Management of control, measurement and test equipment, metrology   Non-standard production management   Infrastructure and ecology   Health and industrial safety 8 Production   Production planning   Equipment and outfitting management   Production monitoring and measurements   Management of control, measurement and test equipment, metrology   Non-standard production management   Infrastructure and ecology   Health and industrial safety 7 Personnel Management   Determination of need in staff and supply with staff   Planning and conduction of training   Personnel attestation   Motivation 7 Personnel Management   Determination of need in staff and supply with staff   Planning and conduction of training   Personnel attestation   Motivation

SAFETY MANAGEMENT SYSTEM Professional recruitment, medical control in the yard hospital, employees training and attestation in the yard training center and technical college Safety and healthy conditions, work clothes, hygiene and protection means for employees Free medical service, arrangement of employees rest at leisure and during vacation

CERTIFICATES

JSC "KRASNOE SORMOVO" SHIPYARD" NUMBER OF EMPLOYEES Number of workers – 2121 persons