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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 12,328 200 201
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