Investor Presentaiton

En+ GROUP En+ Group Annual Report 2021 STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS APPENDICES STRATEGIC REPORT HUMAN DEVELOPMENT HEALTH AND SAFETY Goals and results Nothing matters more to us than the safety, health, and well-being of our employees. Our approach to health and safety (HS) rests on strong leadership and a "zero injuries" culture. En+ Group believes that health and safety is not just about legal requirements and duty 1 Goals Work-related employee fatalities 8 AND PRODUCTION 2021 DECENT WORK AND ECONOMIC GROWTH RESPONSIBLE 12 CONSUMPTION Ma Health, Occupational, Industrial and Fire Safety Policy 2021 Results ACHIEVE ZERO WORK- RELATED FATALITIES. Goal was not achieved. 1 REDUCE LTIFR. 1 The LTIFR experienced a decrease through successful prevention of group injury cases. ENHANCE THE OHS MANAGEMENT SYSTEM, guided by international best practice. External auditors EXELUM provided findings of their audits at nine Group facilities in 2021. Lofty goals and good operational procedures are not enough. Our approach is about each employee, regardless of position, and building a culture of prioritising work safety and care for employees' health. Awareness of the importance of HS issues from the top of the organisation is essential to create inspiring working conditions and save the lives of our employees. En+ Group pays particular attention to the engagement of executives and senior managers since they set a good "tone at the top" by focusing their teams on the right priorities. En+ Group's key HS document is the corporate Health, Occupational, Industrial and Fire Safety Policy, in which the Company states, as a shared core principle, that the health and safety of employees has overall priority. No circumstances and goals, either production or commercial, should be considered as a reason for not complying with industrial safety requirements. This strategic document also determines the role of line managers and executives in ensuring safe working conditions and the well-being of all employees. In compliance with domestic legislation requirements, Group employees regularly undergo all respective mandatory training, including in health and safety, and fire and industrial safety, as well as compulsory safety briefings for new employees, and regular, targeted, and ad hoc employee briefings. The Group monitors, records and investigates all incidents regardless of severity. This includes incidents resulting in micro-injuries, and instances of employees' health deteriorating over a period of time. The findings of these investigations are used to develop and implement corrective actions, intended to prevent future accidents or occupational health impacts. Protecting human life and health from threats related to industrial factors, or from consequences of accidents, is our highest priority. We conduct comprehensive investigations of all injuries En+ Group deeply regrets that there were nine work-related fatalities in 2021, notwithstanding the Company's commitment to zero fatalities. The Group apologises to the families of our colleagues and grieves for these unbearable losses. En+ Group management conducts comprehensive investigations of all fatalities in order to develop and implement corrective measures and achieve zero fatalities. The number of fatalities in Metals segment increased as a result of safety violations by the deceased employees or other workers in related jobs. Despite an overall decrease in LTIFR, one fatal accident occurred at the Novo-Irkutsk CHP of the En+ Group's Power segment in 2021. A site visit for risk auditing was arranged, followed by a meeting among top managers and the heads of the HS service to uncover the causes of the accident. 2 2 2020 4 1 2019 Metals segment Power segment Lost Time Injury Frequency Rate (LTIFR)² per 200,000 hours worked 1 We develop a safety culture The Company promotes a healthy environment through a wide range of health and safety initiatives and projects, protecting against occupational health hazards and supporting our employees. METALS SEGMENT Transition to international standard Introduction of an automated information system Remote control overhead cranes Reducing the physical exertion of the employees of the electrolysis shop Look Around project POWER SEGMENT 0.17 0.14 2021 0.16 0.21 0.20 2020 0.21 Lifesaving rules 0.23 0.11 2019 0.19 Monthly HSE meetings Metals segment Power segment During the reporting period, LTIFR within the Group amounted to 0.16, a decrease of 24%, with the LTIFR of the Power segment at 0.14. The LTIFR of the Power segment showed a reduction by 30% through the successful prevention of group injury cases. The LTIFR of the Metals segment showed a 19% reduction to 0.17 Regulation of ongoing monitoring Video recording of work permits Problem solving board Uniform procedure for introductory HS briefings for visitors Workshop for HS department managers The production safety management system in the Metals segment was transitioned from the OHSAS 18001:2007 standard to the international ISO 45001:2018 standard, as confirmed by the DNV GL certificate (international accredited registrar and classification society). In 2021, the Metals segment began the introduction of the automated information system "Safety of production activities - RUSAL" at two enterprises: in Krasnoyarsk (KrAZ) and Achinsk (AGK). This Metals segment project, launched in 2019, continues to equip overhead trailing cranes with remote control systems. The Metals segment realised a project to reduce the physical exertion levels for electrolysis shop workers. The Look Around project to identify risks and hazardous situations is targeted at improving the level of immersion of employees into daily HSE issues and timely identification and reporting of potential hazards so they can be addressed. Basic and Essential safety rules were developed in 2020 to form a conscious attitude to safety based on an analysis of the causes of injury. A set of posters was designed to visualise separate rules. Visualisation of all Basic and Essential safety rules was completed and posters were placed around production sites in 2021. In 2021, managers continued to hold monthly HSE meetings via video conference calls, where directors of the production facilities reported on the results of their HSE efforts, discussed the findings of workplace audits, and shared experiences in health and safety improvements. To assess the OHS management system, the Group established a programme of ongoing monitoring of health and safety conditions. Under this regulation, the state of the OHS management system at production sites is regularly assessed in various key areas. The final review is announced by the executive of the production site at the monthly HS meeting. Review components were revised following the monitoring findings analysis in 2021 to launch upgraded regulations in 2022, including a substantial increase in the weight of assessment based on monitoring findings and KPI structure. The Group's Power segment began to use video recording in 2019 to enhance the safety of the most hazardous works. The list of operations to be recorded was extended in 2020, and later in 2021 a competition was held for the best video record of permits to carry out hazardous work and switching in electrical installations using portable video recorders. In 2021, an accelerated procedure for solving HS problems was introduced based on the deliverables of an analysis of the functioning of the regulation adopted in 2019, through involving top managers in solving problems spotted by employees, reviewing the results achieved and considering issues which require a large amount of time to be resolved at a monthly HSE meeting by the CEO of the Group's Power segment. Furthermore, in 2021, a training video was filmed with professional actors explaining in plain language and a humorous and didactic style how this tool is to be used. In 2021, a uniform procedure for introductory HS briefings for visitors was introduced at all operating companies of the Group's Power segment. At briefings, visitors will learn about the priorities of the Group's HS policy, and receive an extract from the Basic and Principal Rules relevant to visitors, explaining existing risks, and the measures required for safe visits to the operating facilities. At the end of 2021, an offline three-day workshop was held for the managers of the HS departments of the Group's Power segment in Irkutsk. The participants visited nine production facilities, made their proposals on enhancing occupational safety, and finally drafted a statement where they defined the main mission of the HS departments and assumed advanced obligations for ensuring safety at work. Preliminary data, being verified as part of the En+ Group 2021 Sustainability Report preparation. KRAMZ and SMR are included in work-related fatalities of the Metals segment. Preliminary data, being verified as part of the En+ Group 2021 Sustainability Report preparation. KRAMZ and SMR are included in LTIFR of the Metals segment. Figures for 2020 were recalculated because of an improvement in methodology. 90 91