About the report

This Integrated Annual Report of Samruk-Energy JSC for 2023 (the Report) is the 17th to disclose information on financial and economic, operational activities, as well as data on the Company's achievements in the field of sustainable development management. The document is addressed to a wide range of stakeholders. This Report has been prepared in accordance with GRI Standards.

The Report reflects financial and non-financial activities of Samruk-Energy JSC related to projects both in the Republic of Kazakhstan and abroad. Non-financial disclosure elements are shown mainly for subsidiaries and affiliates with the Company's ownership share of 50% and more, i.e. for the Group of companies of Samruk-Energy JSC.

Compared to the Company's Integrated Annual Report 2022, there have been changes in the Report with respect to certain indicators, as well as in the disclosure of additional indicators. Detailed explanations are given in the body of the Report.

The financial indicators are denominated in the national currency of Kazakhstan, KZT (tenge) and correspond to the IFRS audited consolidated financial statements.

The Report comprehensively reflects:

• implementation of the Development Strategy of Samruk-Energy JSC;
• management approaches to the Company's management;
• significant financial, economic and production plans and results by main types of activities;
• results in the field of labour safety, environmental protection;
• contribution to the development of the territory of presence, implementation of social policy and other aspects of sustainable development.

To designate Samruk-Energy Group (Samruk-Energy JSC and its subsidiaries), the Report uses the names: “Samruk-Energy”, “Company”, “Group”, and "we".

Statutory Requirements

The Report discloses key data as required by the laws of the Republic of Kazakhstan, internal requirements and regulations of the Company, and international corporate governance practices. The Report relies on the following papers:

• Law No. 415-II of the Republic of Kazakhstan dated 13 May 2003 on Joint Stock Companies;
• Rules for information disclosure by the issuer, Requirements for the content of information to be disclosed by the issuer, and the terms for information disclosure by the issuer on the internet resource of the Depository of financial statements as approved by the Resolution No. 189 adopted by the Board of the National Bank of the Republic of Kazakhstan on 27 August 2018;
• Regulatory requirements of Kazakhstan Stock Exchange (KASE), and Astana International Exchange (AIX);
• International integrated reporting standard (IR International Framework);
• International standard for sustainable development reporting, Global Reporting Initiative, including GRI 12: Coal Sector;
• АА1000SES Stakeholder Engagement Standard;
• Ten principles of UN Global Compact;
• UN Sustainable Development Goals 2030;
• ISO 26000:2010 Social Responsibility Guidance Standard.

Recommendations of the TCFD (The Task Force on Climate-Related Financial Disclosures) Working Group of the Financial Stability Board (partial disclosure).

Samruk-Energy JSC endeavours to develop reporting in terms of applicable standards, disclosing GRI industry indicators and considering TCFD recommendations/ The key feature of this Report is its interactivity and cross navigation: you will find links not only to corporate documents, but also to the official website of Samruk-Energy JSC, where key management practices are presented.

The scope of the Report corresponds to the annual reporting cycle of the Company. The previous Report was published in July 2023. Electronic copies of the reports for the previous years are available on the official websitе of the Company. The current Report discloses the operations and performance of Samruk-Energy JSC for the period from 1 January 2023 to 31 December 2023.

For the purpose of internal control and risk management in financial reporting, the Samruk-Energy Management Board adopted Matrices of Risks and Controls in Accounting and Financial Reporting of Samruk-Energy JSC on 16 March 2020 (Minutes No. 5).

The matrix shows a map of accounting and financial reporting processes at all levels of the Group (subsidiaries, affiliates, joint ventures, and the Fund) and includes five stages:

• Formalisation of the financial reporting process;
• Reconciliation of intra-group and related-party transactions;
• Data collection for the consolidated financial statements;
• Preparation of consolidated financial statements;
• Approval of consolidated financial statements.

In general, the document includes matrices on the following processes:

• Preparation of financial statements;
• Procurements and settlements with creditors;
• Fixed and intangible assets accounting;
• Treasury accounting;
• Dividend accounting;
• Financial aid accounting;
• Tax accounting;
• Employee remuneration accounting;
• Accounting of business trip expenses;
• Investments;
• Borrowings;
• Inventories.

“The Financial Reporting Preparation” process adjusts for key risks and controls, from formalisation of financial reporting, period closure, preparation of separate financial statements, and preparation of consolidated financial statements to the preparation of financial disclosures. The matrix features 50 control procedures to minimise key 5 risks in preparations of consolidated financial statements.

The Company's high-risk culture based on three lines of defence and a focus on continuous improvements ensure that the risk matrix and checkpoints of the financial reporting process are observed and up to date.

The Report includes important facts that fall beyond the reporting period but are directly related to it, as well as the medium-term plans of the Group. The Report discloses information on the most significant results of the operations of Samruk-Energy JSC, its subsidiaries and associates. During data collection, all data of quantitative and qualitative nature across the entire Group, which can have a significant impact on making an informed decision on a significant issue, event, or decision, is considered and disclosed. We are consistently developing a system of work with sustainable development indicators and aims to align the disclosure perimeter with the financial data disclosure to the full amount in the near future.

For the purpose of a unified approach, when compiling the Report on the results of financial and economic activities, the Group of companies of Samruk-Energy JSC uses the equity method in consolidation. In addition, in accordance with the current accounting policy, fixed assets and intangible assets are reflected at their original cost, that is, excluding revaluation. Subsidiaries are included in the consolidated financial statements using the acquisition method. Identifiable assets acquired, as well as liabilities and contingent liabilities received in a business combination, are carried at fair value at the acquisition date, regardless of the size of the non-controlling interest.

Based on the above, when using the equity method in the consolidated balance sheet, the turnover of such large companies as EGRES-2 JSC, the company of coal assets Forum Muider B.V., in which the ownership share of Samruk-Energy JSC is 50%, is excluded. When forming the consolidated financial result of Samruk-Energy JSC, the share of profit for these companies is reflected in the article share of profit/loss of organizations accounted for using the equity method and impairment of investments.

According to the indicators that have passed independent certification, data consolidation was carried out using the operational control method (GRI 2-7, 2-30, 201-1, 203-1, 203-2, 205-1, 205-2, 302-1, 302-3, 302-4, 303-3, 303-4, 303-5, 305-1, 305-2, 305-4, 305-5, 305-7, 401-1, 401-3, 403-8, 403-9, 404-1, 404-3).

Samruk-Energy JSC is interested in receiving feedback for further improvement of the integrated Annual Report and qualitative disclosure of information to interested parties. The Company would appreciate completing the online questionnaire posted on the website of Samruk-Energy JSC in the interactive version of this Report.

You can share your feedback on the 2023 Report and ask questions about the Report by contacting the contacts listed below.

Madina Aisarieva, Head of the Corporate governance and sustainable development department
Phone: +7 (7172) 55-30-20
e-mail: m.aisarieva@samruk-energy.kz

Samruk-Energy JSC ensures transparency and independent confirmation of the disclosed information. In the reporting year, external assurance was conducted by PricewaterhouseCoopers in relation to financial information included in the Integrated Annual Report for 2023 and in relation to selected non-financial information.

PricewaterhouseCoopers has conducted an audit of the financial statements that was prepared in accordance with applicable law and International Financial Reporting Standards (IFRS) adopted in the United Kingdom and issued by the IASB.

In addition, PwC provided assurance regarding selected non-financial information published in accordance with GRI Standards.

This Report should be read in its entirety, taking into account the contents of all its sections, as well as the notes and explanations contained therein, including consideration of the information set out in this section.

This Report was prepared on the basis of information available to Samruk-Energy JSC as of December 31, 2023, unless otherwise follows from the meaning or content of such information.

Forward-looking statements are not based on current circumstances and include all statements regarding intentions, opinions or current expectations The Company in relation to the results of its activities and the implementation of its development strategy. By their nature, such forward-looking statements are characterized by risks and uncertainties, as they relate to events and depend on circumstances that may not occur in the future.

Wordings such as "assume", "consider", "expect", "predict", "intend", "plan", "project", "consider", "could", along with other similar or similar expressions, as well as those used with negation, usually indicate the forward-looking nature of the statement. These assumptions contain risks and uncertainties that are foreseen or not foreseen by the Company. Thus, future performance may differ from current expectations, so recipients of the information presented in the Report should not base their assumptions solely on it.

Samruk-Energy JSC makes no guarantees that the actual results, scope or performance of its activities or the industry in which the Company operates will be consistent with the results, scale or performance indicators expressed or implied in any forward-looking statements contained in this Report or elsewhere.

Samruk-Energy JSC shall not be liable for any losses and damages that may arise from any person due to the fact that such a person relied on forward-looking statements. Except as expressly provided by applicable law, the Company assumes no obligation to distribute or publish any updates or changes to forward-looking statements reflecting any changes in expectations or new information, as well as subsequent events, conditions, or circumstances.