Investor Presentaiton
En+
GROUP
FINANCIAL STATEMENTS
En+ Group Annual Report 2021
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
Foreign currency gains and losses are reported on a net basis. Foreign exchange loss on loans and borrowing
for the year ended 31 December 2021 amounted to USD 3 million (2020: gain of USD 291 million).
Finance income
Interest income
Dividend income
Net foreign exchange gain
Year ended 31 December
2021
2020
USD million
USD million
65
61
(a)
22
1
98
87
160
Finance costs
Interest expense
(709)
Change in fair value of derivative financial instruments (note 19)
(352)
(788)
(226)
Revaluation of investments measured at fair value through profit or loss
(47)
Net foreign exchange loss
(33)
Other finance costs
(1,141)
(2)
(1,016)
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available
against which temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
Additional income taxes that arise from the distribution of dividends are recognised at the same time as the
liability to pay the related dividends is recognised.
Income tax expense
Current tax expense
Current tax for the year
Deferred tax expense
Origination and reversal of temporary differences
Year ended 31 December
2021
USD million
2020
USD million
(569)
(223)
(35)
(604)
114
(109)
9.
STRATEGIC REPORT
CORPORATE GOVERNANCE
Earnings per share
The calculation of basic earnings per share is based on the profit attributable to ordinary equity shareholders
for the years ended 31 December 2021 and 31 December 2020.
Issued ordinary shares at beginning of the
Acquisition of own shares
Weighted average number of shares
year
Profit for the year attributable to the shareholders of the Parent Company,
USD million
Basic and diluted earnings per share, USD
Year ended 31 December
2021
2020
502,337,774
502,337,774
638,848,896
(136,511,122)
518,002,985
2,142
684
4.264
1.320
Acquisition of own shares was accounted for in the weighted average numbers of shares calculation for the
year ended 31 December 2020 only.
There were no outstanding dilutive instruments during the years ended 31 December 2021 and 31 December 2020.
The Parent Company is a tax resident of the Russian SAR (special administrative region). Companies which
register in the SAR as part of the continuance out of a foreign jurisdiction (such as the Parent Company) may
have a number of tax benefits, subject to certain conditions.
The Parent Company and subsidiaries pay income taxes in accordance with the legislative requirements of
their respective tax jurisdictions. For companies domiciled in Russia the applicable tax rate is 20%; in
Ukraine of 18%; Guinea of 0%; China of 25%; Kazakhstan of 20%; Australia of 30%; Jamaica of 25%;
Ireland of 12.5%, Sweden of 20.6% and Italy of 26.9%. For the Group's subsidiaries domiciled in
Switzerland the applicable tax rate for the year is the corporate income tax rate in the Canton of Zug,
Switzerland, which differs depending on the company's tax status. The rate consists of a federal income tax
and a cantonal/communal income and capital taxes. The latter includes a base rate and a multiplier, which
may change from year to year. Applicable income tax rates are 9.55% and 11.85% for Swiss subsidiaries.
For the UC RUSAL's significant trading companies, the applicable tax rate is 0%. The applicable tax rates
for the year ended 31 December 2020 were the same as for the year ended 31 December 2021 except for tax
rates for subsidiaries domiciled in Switzerland which amounted to 9.1% and 11.91% subsequently and
subsidiary domiciled in Sweden which amounted to 21.4%.
Reconciliation of effective tax rate
10.
Income tax expense
162
Income tax expense comprises current and deferred tax. Income tax expense is recognised in the statement
of profit or loss and other comprehensive income except to the extent that it relates to items recognised
directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not
recognised for the following temporary differences: the initial recognition of goodwill, the initial recognition
of assets or liabilities in a transaction that is not a business combination and that affects neither accounting
nor taxable profit, and differences relating to investments in subsidiaries to the extent that they probably will
not reverse in the foreseeable future. New information may become available that causes the Group to change
its judgement regarding the adequacy of existing tax liabilities. Such changes to tax liabilities will impact tax
expenses in the period that such a determination is made. Deferred tax is measured at the tax rates that are
expected to be applied to the temporary differences when they reverse, based on the laws that have been
enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset when they
relate to income taxes levied by the same taxation authority and the Group has both the right and the intention
to settle its current tax assets and liabilities on a net or simultaneous basis.
Year ended 31 December
2021
2020
USD million
%
Profit before taxation
4,138
(100)
USD million
1,125
%
(100)
Income tax at tax rate applicable
for the Parent Company
(828)
20
(225)
20
Other non-deductible/taxable items, net
Effect of changes in investment in
Norilsk Nickel
(57)
1
115
(10)
451
(10)
186
(17)
Change in unrecognised deferred tax assets
(99)
2
(243)
22
Effect of reversal of impairment
42
(1)
30
(3)
Effect of different income tax rates
(113)
3
28
(2)
Income tax
(604)
15
(109)
10
FINANCIAL STATEMENTS
Appendices
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