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
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