Investor Presentaiton

En+ GROUP FINANCIAL STATEMENTS En+ Group Annual Report 2021 STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS Appendices EN+ GROUP IPJSC Notes to the Consolidated Financial Statements for the year ended 31 December 2021 The bank loans are secured as at 31 December 2021 and 31 December 2020 by the following: Rights, including all monies and claims, arising out of certain sales contracts between the Group's trading subsidiaries and its ultimate customers, were assigned to secure the syndicated Pre-Export Finance Term Facility Agreements (PXFs) dated 25 October 2019 and dated 28 January 2021; ● Properties, plant and equipment - refer to note 11(d); • Inventories refer to note 14; . Shares of the Group companies as described below. METALS On 28 January 2021, the Metals segment entered into a new three-year sustainability-linked pre-export finance facility for up to USD 200 million. The interest rate is subject to a sustainability discount or premium depending on UC RUSAL's fulfilment of the sustainability key performance indicators (KPIs). The proceeds were used to refinance the principal outstanding under the existing debt. The nominal value of UC RUSAL's loans and borrowings was USD 4,266 million at 31 December 2021 (31 December 2020: USD 5,329 million). As at 31 December 2021 and 31 December 2020 the secured bank loans are secured by certain pledges of shares of a number of UC RUSAL's subsidiaries and 25% +1 share of Norilsk Nickel (Group's associate). POWER In February 2020, the Group entered into 2 loan agreements with Sberbank: Loan 13-year RUB 100.8 billion loan agreement to finance the acquisition of a 21.37% stake in the Parent Company for USD 1.6 billion from VTB (note 1(a)). Loan 2-loan agreement allowing the extension of the final maturity of the Loan 1 by 4 years during 2022. The nominal value of Power loans and borrowings was USD 4,182 million at 31 December 2021 (31 December 2020: USD 4,610 million). As at 31 December 2021 and 31 December 2020 the secured bank loans are secured by certain pledges of shares of a number of Parent Company's subsidiaries, including LLC ESE-Hydrogeneration 100% (2020: 100%), JSC Krasnoyarsk Hydro-Power Plant - 100% (2020: 100%), PJSC Irkutskenergo - 73.18% (2020: 77.43%) and JSC EuroSibEnergo - 50% + 1 share (2020: 50% + 1 share). As at 31 December 2021 and 31 December 2020 21.37% shares of the Parent Company were pledged under RUB 100.8 billion loan agreement described above. The fair value of the Group's liabilities measured at amortised cost approximate their carrying values as at 31 December 2021 and 31 December 2020. (b) Bonds As at 31 December 2021, the Group had bonds denominated in RUB and eurobonds denominated in USD as follows: The number of bonds traded in the market Nominal value, Type Series USD million Nominal interest rate Put-option Maturity date date Bond BO-01 Bond BO-001P-01 30,263 15,000,000 0.01% 202 9.00% 18.04.2019 27.04.2022 07.04.2026 16.04.2029 Bond BO-001P-02 15,000,000 202 8.60% 25.01.2023 28.06.2029 Bond BO-001P-03 15,000,000 202 8.25% 12.09.2022 30.08.2029 Bond BO-001P-04 15,000,000 202 7.45% 14.11.2022 01.11.2029 Bond BO-002P-01 10,000,000 134 6.50% 09.06.2023 28.05.2030 Eurobond 511,998 512 5.125% 02.02.2022 Eurobond 481,985 482 5.3% 03.05.2023 497,642 498 4.85% 01.02.2023 Eurobond 18. (a) (i) EN+ GROUP IPJSC Notes to the Consolidated Financial Statements for the year ended 31 December 2021 As at 31 December 2021, the amount of accrued interest on these bonds was 44 million (31 December 2020: USD 44 million). The total foreign exchange gain on bonds for the year ended 31 December 2021 accounted in other comprehensive income as part of the cash flow hedge result amounted to USD 4 million (USD 167 million for the year ended 31 December 2020). Provisions Accounting policy A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance costs. Site restoration The mining, refining and smelting activities of the Group can give rise to obligations for site restoration and rehabilitation. Restoration and rehabilitation works can include facility decommissioning and dismantling, removal or treatment of waste materials, land rehabilitation, and site restoration. The extent of work required and the associated costs are dependent on the requirements of law and the interpretations of the relevant authorities. Provisions for the cost of each restoration and rehabilitation program are recognised at the time that environmental disturbance occurs. When the extent of disturbance increases over the life of an operation, the provision is increased accordingly. Costs included in the provision encompass obligated and reasonably estimable restoration and rehabilitation activities expected to occur progressively over the life of the operation and at the time of closure in connection with disturbances at the reporting date. Routine operating costs that may impact the ultimate restoration and rehabilitation activities, such as waste material handling conducted as an integral part of a mining or production process, are not included in the provision. Costs arising from unforeseen circumstances, such as the contamination caused by unplanned discharges, are recognised as an expense and liability when the event gives rise to an obligation which is probable and capable of reliable estimation. Restoration and rehabilitation provisions are measured at the expected value of future cash flows, discounted to their present value and determined according to the probability of alternative estimates of cash flows occurring for each operation. Discount rates used are specific to the country in which the operation is located. Significant judgements and estimates are involved in forming expectations of future activities and the amount and timing of the associated cash flows. Those expectations are formed based on existing environmental and regulatory requirements. When provisions for restoration and rehabilitation are initially recognised, the corresponding cost is capitalised as an asset, representing part of the cost of acquiring the future economic benefits of the operation. The capitalised cost of restoration and rehabilitation activities is amortised over the estimated economic life of the operation on a units of production or straight-line basis. The value of the provision is progressively increased over time as the effect of discounting unwinds, creating an expense recognised as part of finance expenses. Restoration and rehabilitation provisions are also adjusted for changes in estimates. Those adjustments are accounted for as a change in the corresponding capitalised cost, except where a reduction in the provision is greater than the unamortised capitalised cost, in which case the capitalised cost is reduced to nil and the remaining adjustment is recognised in profit or loss. Changes to the capitalised cost result in an adjustment to future amortisation charges. Adjustments to the estimated amount and timing of future restoration and rehabilitation cash flows are a normal occurrence in light of the significant judgements and estimates involved. Factors influencing those changes include revisions to estimated reserves, resources and lives of operations; developments in technology; regulatory requirements and environmental management strategies; changes in the estimated costs of anticipated activities, including the effects of inflation and movements in foreign exchange rates; and movements in general interest rates affecting the discount rate applied. 192 193