Investor Presentaiton
En+
GROUP
FINANCIAL STATEMENTS
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
En+ Group Annual Report 2021
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
STRATEGIC REPORT
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Appendices
As at 31 December 2021
Fair value
Designated at
Carrying amount
Financial
assets at
Other
Note
fair value
USD million
amortised cost
financial
assets/
(liabilities)
Total
USD million
USD million
USD million
Level 1
USD million
Level 2
USD million
Level 3
USD million
Total
USD million
Financial assets measured at
fair value
Petroleum coke supply contracts
and other raw materials
Forward contracts for aluminium
and other instruments
Investments in equity securities
measured at fair value through
profit and loss
19
24
19
118
24
118
316
316
316
316
458
316
Financial assets not measured
142
2,410
131
2,330
4,871
at fair value*
Trade and other receivables
Short-term investments.
Cash and cash equivalents
15(b)
15(d)
2,410
131
2,330
4,871
2,410
131
2,330
4,871
Financial liabilities measured
at fair value
Cross currency swaps
19
(165)
Petroleum coke supply contracts
and other raw materials
19
(15)
Forward contracts for aluminium
and other instruments
19
(26)
(206)
(165)
(15)
(26)
(206)
Financial liabilities not
measured at fair value*
Loans and borrowings
17(a)
(8,477)
(8,477)
(8,614)
Unsecured bond issue
Trade and other payables
17(b)
15(c)
(2,434)
(2,434)
(941)
(1,524)
(1,643)
(1,643)
(1,643)
(12,554)
(12,554)
(941)
(11,781)
The Group considers that the carrying amounts of short-term trade receivables and payables are a reasonable approximation of fair values.
As at 31 December 2020
24
24
118
118
316
142
458
2,410
131
2,330
(b)
4.871
(c)
(165)
(165)
(15)
(15)
(26)
(26)
(206)
(206)
(8,614)
(2,465)
(i)
(1,643)
(12,722)
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
Fair value
Carrying amount
Other
Financial
Designated at
assets at
Note
fair value
USD million
amortised cost
financial
assets/
(liabilities)
Total
Level 1
USD million
USD million
USD million
USD million
Level 2
USD million
Level 3
USD million
Total
USD million
(ii)
Financial assets measured
at fair value
Petroleum coke supply contracts
and other raw materials
Forward contracts for aluminium
and other instruments
Other non-current assets
ཙྪཅ་ཅ
31
19
15(e)
50
31
19
75
75
75
75
125
75
Financial assets not measured
at fair value*
Trade and other receivables
15(b)
Short-term investments
1,247
237
Cash and cash equivalents
15(d)
2,562
4,046
1,247
237
2,562
4,046
1,247
237
2,562
4,046
Financial liabilities measured
at fair value
Cross currency swaps
19
(133)
Petroleum coke supply contracts
and other raw materials
19
(43)
Forward contracts for aluminium
and other instruments
19
(9)
(185)
(133)
(43)
(9)
(185)
Financial liabilities not
measured at fair value*
Loans and borrowings
17(a)
(9,950)
(9,950)
(9,788)
Unsecured bond issue
17(b)
(2,438)
(2,438)
(972)
(1,574)
Trade and other payables
15(c)
(1,253)
(1,253)
(1,253)
(13,641)
(13,641)
(972)
(12,615)
The Group considers that the carrying amounts of short-term trade receivables and payables are a reasonable approximation of fair values.
31
31
19
19
75
50
125
1,247
237
2,562
4,046
Financial risk management objectives and policies
The Group's principal financial instruments comprise bank loans and trade payables. The main purpose of
these financial instruments is to raise finance for the Group's operations. The Group has various financial
assets such as trade receivables and cash and short-term deposits, which arise directly from its operations.
The main risks arising from the Group's financial instruments are cash flow interest rate risk, liquidity risk,
foreign currency risk and credit risk. Management reviews and agrees policies for managing each of these
risks which are summarised below.
The Board of Directors has overall responsibility for the establishment and oversight of the Group's risk
management framework.
The Group's risk management policies are established to identify and analyse the risks faced by the Group,
to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management
policies and systems are reviewed regularly to reflect changes in market conditions and the Group's activities.
The Group, through its training and management standards and procedures, aims to develop a disciplined
and constructive control environment in which all employees understand their roles and obligations.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity
prices will affect the Group's income or the value of its holdings of financial instruments. The objective of
market risk management is to manage and control market risk exposures within acceptable parameters, while
optimising returns.
Tariffs and commodity price risk
During the years ended 31 December 2021 and 31 December 2020, the Group has entered into certain
commodity derivatives contracts in order to manage its exposure of commodity price risks.
The tariffs for electricity, heat and transmission services applied by the Group's significant subsidiaries are
currently partially determined by government bodies. The Group cannot directly influence or mitigate the
risks in relation to the change in tariffs.
A significant portion of the Group's generation activities is based on coal burning stations. A change in coal
prices may have a significant impact on the Group's operations. To mitigate the risk of fluctuations in coal
prices, the Group has historically increased its internal coal production through acquisition of coal mines and
licences in the Eastern Siberia region.
Interest rate risk
The Group's exposure to the risk of changes in market interest rates relates primarily to the Group's long-
term debt obligations with floating interest rates (note 17). The Group's policy is to manage its interest costs
by monitoring changes in interest rates with respect to its borrowings.
The following table details the interest rate profile of the Group's and the Company's borrowings at the
reporting date.
31 December 2021
Effective
interest rate
%
USD
million
31 December 2020
Effective
interest rate
%
USD
million
(133)
(133)
Fixed rate loans and borrowings
Loans and borrowings (note 17(a))
0.01%-10.5%
(43)
(43)
2,824
0.01%-10.5%
2,824
2,700
2,700
(9)
(185)
(9)
(185)
Variable rate loans and borrowings
Loans and borrowings (note 17(a))
0.45%-10.5%
8,019
0.67%-6.25%
9,628
8,019
9,628
(9,788)
(2,546)
(1,253)
(13,587)
10,843
12,328
200
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