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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 (ii) Legal claim In the normal course of business, the Group may be involved in legal proceedings. Where management considers that it is more likely than not that proceedings will result in the Group compensating third parties, a provision is recognised for the best estimate of the amount expected to be paid. Where management considers that it is more likely than not that proceedings will not result in the Group compensating third parties or where, in rare circumstances, it is not considered possible to provide a sufficiently reliable estimate of the amount expected to be paid, no provision is made for any potential liability under the litigation but the circumstances and uncertainties involved are disclosed as contingent liabilities. The assessment of the likely outcome of legal proceedings and the amount of any potential liability involves significant judgement. As law and regulations in many of the countries in which the Group operates are continuing to evolve, particularly in the areas of taxation, sub-soil rights and protection of the environment, uncertainties regarding litigation and regulation are greater than those typically found in countries with more developed legal and regulatory frameworks. (b) Disclosure USD million Balance at 1 January 2020 Pension liabilities Site restoration Provisions for legal claims Total 111 459 37 607 Non-current 104 432 536 Current 7 27 37 71 Provisions made during the year 13 59 10 82 Provisions reversed during the year (23) (24) Actuarial losses (3) (3) Provisions used during the year (19) Change in estimates (1) (1) Translation difference (14) (15) (6) (35) Balance at 31 December 2020 99 476 32 607 Non-current 91 427 518 Current 8 49 32 89 Provisions made during the year 10 96 14 120 Provisions reversed during the year (23) (4) (27) Actuarial loss 4 Provisions used during the year (20) (29) Change in estimates (8) (8) Translation difference (21) (21) Balance at 31 December 2021 106 518 22 646 Non-current 98 387 485 Current 8 131 22 161 106 518 22 646 (c) Pension liabilities As at 31 December 2021, the pension liability is represented by UC RUSAL of USD 66 million (31 December 2020: USD 55 million) and Power of USD 40 million (31 December 2020: USD 43 million). The provision for pensions mainly comprises lump sum payments at retirement by aluminium plants located in Russia and Ukraine, and by electricity generating companies. The Group also provides pension benefits to eligible participants at facilities located outside of the Russian Federation and Ukraine. METALS Group subsidiaries in the Russian Federation The Group voluntarily provides long-term and post-employment benefits to its former and existing employees including death-in-service, jubilee, lump sum upon retirement, material support for pensioners and death-in-pension benefits. Furthermore, the Group provides regular social support payments to some of its veterans of World War II. The above employee benefit programs are of a defined benefit nature. The Group finances these programs on a pay-as-you-go basis, so plan assets are equal to zero. Group subsidiaries in Ukraine Due to legal requirements, the Ukrainian subsidiaries are responsible for partial financing of the state hardship pensions for those of its employees who worked, or still work, under severe and hazardous labour conditions (hardship early retirement pensions). These pensions are paid until the recipient reaches the age of entitlement to the State old age pension (55-60 years for female (dependent on year of birth) and 60 years for male employees). In Ukraine, the Group also voluntarily provides long-term and post-employment benefits to its employees including death-in-service, lump sum benefits upon retirement and death-in-pension benefits. The above employee benefit programs are of a defined benefit nature. The Group finances these programs on a pay-as-you-go basis, so plan assets are equal to zero. Group subsidiaries outside the Russian Federation and Ukraine At its Guinean entities, the Group provides a death-in-service benefit and lump-sum benefits upon disability and old-age retirement. At its Guyana subsidiary, the Group provides a death-in-service benefit. At its Italian subsidiary (Eurallumina) the Group only provides lump sum benefits upon retirement, which relate to service up to 1 January 2007. In Sweden (Kubikenborg Aluminium AB), the Group provides defined benefit lifelong and temporary pension benefits. The lifelong benefits are dependent on the past service and average salary level of the employee, with an accrual rate that depends on the salary bracket the employee is in. The liability relates only to benefits accrued before 1 January 2004. The number of employees in all jurisdictions eligible for the plans as at 31 December 2021 and 2020 was 50,518 and 48,548, respectively. The number of pensioners in all jurisdictions as at 31 December 2021 and 2020 was 42,086 and 43,422, respectively. Actuarial valuation of pension liabilities The actuarial valuations of UC RUSAL and the portion of UC RUSAL's funds specifically designated for the UC RUSAL's employees were completed by a qualified actuary, Robert van Leeuwen AAG, as at 31 December 2021, using the projected unit credit method as stipulated by IAS 19. The key actuarial assumptions (weighted average, weighted by DBO) are as follows: Discount rate Future salary increases Future pension increases Staff turnover Mortality 31 December 2021 % per annum 7.9 8.7 4.2 4.7 31 December 2020 % per annum 5.7 7.1 3.6 4.7 194 Disability USSR population table for 1985, Ukrainian population table for 2000 70% Munich Re for Russia; 40% of death probability for Ukraine USSR population table for 1985, Ukrainian population table for 2000 70% Munich Re for Russia; 40% of death probability for Ukraine Appendices 195
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