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 31 December 2020 Contractual undiscounted cash outflow More than More than Effect on equity for the year Trade and other payables to third parties Within 1 year or on demand USD million 1 year but 2 years but less than 2 years USD less than 5 years USD More than 5 years USD Total USD Carrying amount USD million million million million million 1,201 1,201 1,201 Trade and other payables to related parties 52 52 (70) Bonds 153 1,251 1,356 2,760 52 2,438 11 (2) Loans and borrowings, including interest payable 2,541 2,433 3,282 3,260 11,516 9,950 3,947 3,684 4,638 3,260 15,529 13,641 Financial guarantees issued: Maximum amount guaranteed 69 45 114 (iv) Foreign currency sensitivity analysis The following tables indicate the change in the Group's profit before taxation (and accumulated losses) and other comprehensive income that could arise if foreign exchange rates to which the Group has significant exposure at the reporting date had changed at that date, assuming all other risk variables remained constant. Depreciation of USD vs. RUB Depreciation of USD vs. EUR Depreciation of USD vs. other currencies Depreciation of USD vs. RUB Depreciation of USD vs. EUR Depreciation of USD vs. other currencies (d) Year ended 31 December 2021 USD million Effect on profit USD million Change in exchange rates before taxation for the year 15% (70) 10% 5% 11 (2) Year ended 31 December 2020 USD million Change in exchange rates Effect on profit before taxation for the year 15% (78) 10% 5% 8 (3) At 31 December 2021 and 31 December 2020 the Group's contractual undertaking to provide loans under the loan agreement between the Group, PJSC RusHydro and BoAZ is included at maximum exposure for the Group in the liquidity risk disclosure above. USD million Effect on equity for the year (79) 8 (3) (e) Credit risk STRATEGIC REPORT CORPORATE GOVERNANCE Results of the analysis as presented in the above tables represent an aggregation of the effects on the Group entities' profit before taxation and other comprehensive income measured in the respective functional currencies, translated into USD at the exchange rates ruling at the reporting date for presentation purposes. The sensitivity analysis assumes that the change in foreign exchange rates had been applied to re-measure those financial instruments held by the Group which expose the Group to foreign currency risk at the reporting date. The analysis excludes differences that would result from the translation of other financial statements of foreign operations into the Group's presentation currency. The analysis has been performed on the same basis for all years presented. Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group's policy is to maintain sufficient cash and cash equivalents or have available funding through an adequate amount of committed credit facilities to meet its operating and financial commitments. The following tables show the remaining contractual maturities at the reporting date of the Group's non-derivative financial liabilities, which are based on contractual undiscounted cash flows (including interest payment computed using contractual rates, or if floating, based on rates current at the reporting date) and the earliest the Group can be required to pay, except loans presented as payable on demand due to breach of covenant: Within 31 December 2021 Contractual undiscounted cash outflow 1 year or on demand less than 2 years USD million USD million 5 years USD million More than More than 1 year but 2 years but less than More than Carrying 5 years USD million Total USD million amount USD million Trade and other payables to third parties 1,540 1,540 1,540 Trade and other payables to related parties 103 103 Bonds 1,234 1,354 2,588 103 2,434 Loans and borrowings, including interest payable 2,170 2,652 3,947 1,704 10,473 8,477 5,047 4,006 3,947 1,704 14,704 12,554 Financial guarantees issued: Maximum amount guaranteed 44 69 113 (f) The Group trades only with recognised, creditworthy third parties. It is the Group's policy that all customers who wish to trade on credit terms are subject to credit verification procedures. The majority of the Group's third party trade receivables represent balances with the world's leading international corporations operating in the metals industry. In addition, receivable balances are monitored on an ongoing basis with the result that the Group's exposure to credit loss is not significant. Goods are normally sold subject to retention of title clauses, so that in the event of non-payment the Group may have a secured claim. The Group does not require collateral in respect of trade and other receivables. The details of impairment of trade and other receivables are disclosed in note 15. Cash balances are held with high credit quality financial institutions. The extent of the Group's credit exposure is represented by the aggregate balance of financial assets and financial guarantees and loan commitments given. At 31 December 2021 and 31 December 2020, the Group has no concentration of credit risk within any single largest customer but 12.6% and 5.2% of the total trade receivables were due from the Group's five largest customers. Capital risk management The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Board's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Board of Directors monitors the return on capital, which the Group defines as net operating income divided by total shareholders' equity, excluding non-controlling interests. The Board of Directors also monitors the level of dividends to ordinary shareholders. The Board seeks to maintain a balance between higher returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position. There were no changes in the Group's approach to capital management during the year. The Parent Company and its subsidiaries were subject to externally imposed capital requirements in the both years presented in these consolidated financial statements. 204 FINANCIAL STATEMENTS Appendices 205