Investments in human capital

We view our employees as a key asset and the greatest value inherently linked to the Company's success. As part of our social responsibility principles, we continuously improve our HR management systems in order to create favorable working conditions, attract and retain talented personnel, and ensure their social protection and stability.

We respect the interests of our stakeholders and comply with the requirements of labor laws and the principles of corporate and professional ethics. Our corporate culture strives to create equal opportunities in hiring and directly fulfillment of labor obligations, preventing any form of discrimination and protecting human rights.

The Company's approach is in line with the principles of the UN SDGs, including improving the quality of life and well-being of people of all ages, providing inclusive and quality lifelong learning, as well as achieving gender equality and creating decent working conditions for all without exception. The key document aimed at developing human potential and meeting the needs for the development of employee competencies is the Human Resources Policy. The Company's corporate culture emphasizes equal employment opportunities, prevention of discrimination and protection of human rights, which contributes to the successful implementation of strategic initiatives.

In order to ensure implementation of the Strategy, and by the decision of the Board of Directors dated July 28, 2023 (Minutes No.10/23), a new version of the Personnel Policy of Samruk-Energy JSC for 2023-2031 was approved. The Policy of Samruk-Energy JSC defines the management system, principles, and key directions of human resources management and is mandatory for all subsidiaries of the Group of Companies of Samruk-Energy JSC.

When developing the Personnel Policy, the requirements and opinions of stakeholders were taken into account, including the opinion of the Sole Shareholder, internal stakeholders, practices complying with international standards such as GRI and ISO 10018, among others, as well as the requirements of regulatory bodies.

The Company's HR policy is based on the principles of sustainable development — respect for the interests of stakeholders, human rights, openness, accountability, transparency, legality, ethical behavior, personal example, intolerance towards corruption, inadmissibility of conflict of interest, equal employment opportunities, non-discrimination, prevention of sexual harassment and others.

The strategic role of the HR function is long-term planning of quantitative and qualitative aspects of human resources, including recruitment and training.

We regularly analyze the efficiency and effectiveness of HR management through monthly and quarterly reports, taking into account the company's business processes, goals and needs. Based on the data obtained, we improve the HR management system and develop new social programs for employees and their families. This approach contributes to the implementation of measures to achieve the UN Sustainable Development Goals.

As of December 31, 2023, the headcount was 17,892. The average length of service was 16 years. The average age of employees was 41 years. In 2023, the share of full-time personnel amounted to 100%.

In 2023, the organizational structure and headcount of the Corporate Center of Samruk-Energy JSC in the amount of 150 employees was approved²¹.

The total headcount of Samruk Energy JSC, including joint and affiliated organizations, as of the end of 2023, excluding employees hired under CLN contract and outstaffing contract, amounted to 17,892 persons. The headcount at the end of the period is determined by the number of employees in the staff of subsidiaries and affiliated companies of Samruk Energy JSC as of December 31, 2023.

As of December 31, 2023, Samruk-Energy employed 474 freelance employees. Relations with these employees are built in accordance with the terms and conditions of the agreement on purchase of personnel services of Samruk-Kazyna Corporate University.

²¹ Decree of the President of the Republic of Kazakhstan № 633 ‘On some issues of optimization of the limits of staffing of state bodies and subjects of quasi-state sector’ dated July 28, 2021, Instruction of the Fund of Samruk-Kazyna JSC №23-01-05.8/4701 dated August 20, 2021, Decision of the Management Board of Samruk-Kazyna JSC protocol №06/22 dated January 24, 2022, Decision of the Board of Directors of Samruk-Energy JSC protocol №02/22 dated February 25, 2022.

Dynamics of the number of personnel, persons

Headcount

Total number of personnel

Recruitment practices are based on the analysis of the Company's needs and strategic goals. The main criteria for selecting candidates are their professional competence, performance, motivation and compliance with the Company's corporate values. Vacancies are published on the Company's website and the Samruk Qyzmet online recruiting platform (QSamruk.kz) in Russian and Kazakh languages. Based on the results of the competitive selection process, each candidate is provided with feedback and the results are published on the Samruk Qyzmet platform. When conducting competitive procedures, internal candidates, including candidates from the Company's talent pool, have priority.

The overall employee turnover rate in 2023 was 14%, which is within the industry average of ‘within range’ criteria.

In 2023, Almaty Power Plants JSC has developed an Employee Discharge Program in connection with the implementation of gasification projects at A. Zhakutov CHPP-2. This program provides support for employees to be released due to decommissioning of power equipment of CHPP-2. Employment measures for the released employees include the search for new projects in the region, the possibility of transferring employees to similar jobs at ‘related’ enterprises in the region, and the possibility of relocating released employees to other regions if there is a need for labor at specific enterprises.

A similar release program was approved at such subsidiaries and affiliates as: EGRES-1 named after Bulat Nurzhanov LLP, Shardara HPP JSC, Moynak HPP named after JSC and EGRES-2 JSC.

We pay special attention to ensuring fair labor remuneration. In 2023, the average salary of employees of the Group of companies of Samruk-Energy JSC amounted to 487,399 tenge per month.

The Company regularly indexes salaries and introduces bonus systems.

The Rules of labor remuneration and bonus payment to employees of Samruk-Energy JSC is a key internal document of the Company, which officially defines the main components of the packages on payment and incentives for employees' labor.

The rules of Samruk-Energy JSC on labor remuneration and remuneration of employees is a key internal document of the Company, which officially defines the main components of the employee remuneration and incentive package.

During 2023, in accordance with the Order of the Minister of Energy of the Republic of Kazakhstan No. 192 dated May 26, 2023, new marginal tariffs for electric power to the plants of Samruk-Energy JSC were approved with effect from June 01 of this year. Also, tariffs for regulated service of electric power transmission and heat generation were approved with effect from July 01 and August 01 of this year, respectively.

Expenses on payroll of SACs in the adjusted plan were brought in accordance with the approved tariffs and wages were increased in EGRES-1 named after Bulat Nurzhanov LLP, EGRES-2 JSC, Almaty Power Plants JSC, Shardara HPP JSC and Moynak HPP JSC, Alatau Zharyk Company JSC by 10%.

In addition to the basic salary, in accordance with the Collective Agreement the Company provides for the following:

• overtime pay, overtime work, work on holidays, weekends and at night;
• allowances and additional payments;
• Payments for employees engaged in heavy work, work in harmful (especially harmful) or hazardous working conditions;
• additional paid annual vacation;
• Compensation in the amount of three salaries is paid to employees upon termination of their employment contract or retirement.

The ratio of the minimum wage of women and men is 100%. Wages of men and women are equal. The amount depends on working conditions and remuneration. Thus, men may receive additional payments for especially harmful working conditions, for professional skills and other additional payments.

Ratio of average salary in the Company to the level in the country, KZT

Minimum wage in the country

Average monthly salary of production personnel

The current motivation system of Samruk-Energy JSC contributes to revealing the maximum potential of employees through the use of flexible bonus systems that take into account the individual contribution of each employee. In particular, lump-sum bonus payments are provided for state and national holidays, such as Power Engineer's Day, Independence Day, Miner's Day, etc., and non-material rewards and benefits (awards, letters of appreciation, certificates).

For example, employees who combine work and education are granted additional leave for the period of examinations or installation sessions, preparation and defense of diploma projects, and final exams.

In addition, corporate awards and incentives are provided to incentivize employees. As part of the celebration of the Day of the Republic of Kazakhstan and Energy Day, awarding ceremonies for outstanding employees of the Company were held, during which state, departmental, industry and corporate awards, as well as awards of Samruk-Kazyna JSC were presented. Based on the results of work in 2023, 266 employees of the Group of companies of Samruk-Energy JSC were presented for awards.

In 2023, the Center for Social Interaction and Communications conducted an engagement survey among employees of the Corporate Center of Samruk-Energy JSC to assess the level of employee well-being based on four elements of well-being: health, engagement, social well-being, physical and mental well-being, and financial well-being. According to the survey results, the overall Social Well-being Index of the personnel amounted to 43%, which corresponds to the ‘satisfactory’ zone. The index of social peace of mind was 72%.

Based on the feedback received, the Company will form recommendations to improve the level of personnel well-being.

To organize, improve and stimulate the activity of young specialists, the Company has a Youth Council ‘Jas Energy’, which promotes their active participation in solving social and operational tasks, as well as contributes to the development of corporate culture.

Within the framework of youth policy development, by the order of the Chief of Staff of the Chairman of the Management Board No. 12-P dated 24.01.2023, the Action Plan for implementation of the youth policy of Samruk-Energy JSC was approved and a number of volunteer events such as ‘Vitamin Day’ and ‘Shyn zhurekten’ were held. Also, within the framework of implementation of item 6 of the Action Plan of the Youth Council, ‘II Youth Forum of Samruk-Energy JSC’ was held on 14.09.2023, which was attended by 100 employees of the Group of companies of Samruk-Energy JSC.

Main objective: bringing together the youth of subsidiaries and affiliates for general organizational development of Samruk-Energy JSC, a platform for social and professional development of personality through exchange of thoughts, experience and implementation opportunities.

Within the framework of implementation of the program on development of youth policy in the Group of сompanies of Samruk-Kazyna JSC, 5 employees (CCs and subsidiaries and affiliates) completed participation in the modular program for development of young leaders “Zheti Kadam”.

At the beginning of December of the current year, the youth activists of the Company and its subsidiaries and affiliates took part in the Youth Challenge of Samruk-Kazyna JSC. According to the results of this, the youth activists were invited to the II Youth Educational Forum of the Fund. At the forum, young participants were trained in leadership, self-diagnosis, and developed decision-making skills and emotional intelligence, as well as were familiarized with the 4D-management system.

Adaptation of newly hired young specialists

If necessary, young specialists without work experience are assigned a mentor from among the personnel of the structural subdivision. The mentor can be a direct manager of the structural unit or a supervising manager who trains no more than two new employees at a time. The role of a mentor includes informing about possible difficulties, the most common mistakes, familiarization with the procedure of interaction with the Company's structural subdivisions and external organizations in accordance with the functional area of activity, explaining the norms of corporate ethics and rules of conduct, as well as providing practical assistance in work.

We adhere to the principle of equal opportunity and inclusion in the workplace as a key element of respect for human rights. Our Company is committed to ensuring the socio-cultural diversity of our employees and Board members, with zero tolerance for any form of discrimination. Diversity and inclusion are critical to the long-term success of the Company, helping to attract, retain and develop talent, ensuring employees have the support they need to achieve optimal performance. An inclusive and diverse workforce enables us to adapt more effectively to changing societal expectations and respond comprehensively to market changes.

We are categorically against any form of discrimination and strive to ensure respectful treatment of all employees and potential candidates. Samruk-Energy JSC works to create equal opportunities for everyone at every stage of career development.

Samruk-Energy JSC is guided by the principle of equality when hiring employees, trying to expand the diversity of attracted talents, and also guarantees equality when promoting employees within the Company. This allows us to utilize different points of view, experience and knowledge of people of different genders, ages and backgrounds when implementing innovative solutions necessary for business development. We pride ourselves on diversity within our team and strive to create a positive working environment where every employee feels accepted, respected and heard. Our employees know they can reach their full potential with us and feel safe to speak up about issues.

We strive to increase diversity at all levels of the Group of сompanies of Samruk-Energy JSC, including the Board of Directors, top and middle management. Appointments to the Board of Directors, and to top and middle management positions, are made on the basis of merit, experience, knowledge and skills of the candidate, which ensures balance and diversity of expertise.

The combination of educational backgrounds and professional experience, as well as the personalities of the directors and staff, provides a diversity of opinions and a broader knowledge base.

In accordance with the Roadmap for Improvement of the Sustainable Development Management System²² the Company implemented a Non-Discrimination Policy in the first quarter of 2023.

²² Decision of the Management Board of Samruk-Energy JSC Minutes No. 37 dated October 10, 2022

Gender equality

There are more men than women among our employees, which is due to the specifics of the industry and physical labor at the enterprises. Nevertheless, our Personnel Policy adheres to the seven principles of gender equality developed by UN Women and the UN Global Compact as a key element of sustainable development:

• building active support for measures to ensure gender equality;
• equitable treatment of women and men — non-discrimination on the basis of gender, equal treatment and access to training and development programs, career advancement and employment;
• respect for and support of human rights and non-discrimination;
• ensuring health, safety and well-being for all employees;
• promoting the education, professional development and professional growth of women in business, applying practices that promote women's empowerment;
• promoting equality at the local community level;
• evaluating results and publicizing successes in achieving gender equality.

The Collective Agreement of Samruk-Energy JSC is a guarantor of protection of labor rights, economic and social guarantees of employees. The agreement regulates labor relations and promotes effective dialog between the Company and personnel. The minimum period of notification of operational changes under the Collective Agreement is one month.

Labor relations of employees not covered by collective bargaining agreements (if there is no Collective Bargaining Agreement in subsidiaries and affiliates) are regulated by internal regulations on labor remuneration and social benefits in accordance with the labor legislation of the Republic of Kazakhstan. Social payments and benefits provided for by collective bargaining agreements include the following:

• financial assistance for health improvement for vacations, childbirth, weddings, funeral expenses (for the employee and close relatives), treatment of pensioners, emergencies, etc.;
• financial assistance for loss of income (maternity leave, leave due to adoption of a newborn child);
• voluntary medical insurance;
• health resort treatment for employees and children;
• one-time incentives in connection with anniversaries — 50, 60 and 70 years, expenses for festive, cultural and sporting events, New Year gifts for children, etc.;
• loan repayment;
• allowance for injury and loss of breadwinner.

We respect the right of workers to freely choose their associations, join trade unions or other organizations, conduct collective bargaining and protect their interests without fear of negative consequences. The professional, economic and social rights of workers are protected through social partnership with the participation of authorized representatives. We ensure the right of employees to choose their representatives in accordance with the laws of the Republic of Kazakhstan.

We view personnel development and training as a holistic project that not only ensures the necessary level of professionalism and qualification of employees to solve production tasks, ensure economical, accident-free and efficient operation of equipment, but also contributes to the development of the Company's corporate culture.

The current Rules of professional training and adaptation of Samruk-Energy JSC employees determine goals, objectives, main types of training, the order of interaction of Samruk-Energy JSC structural subdivisions, responsibility, powers and duties of employees, heads of structural subdivisions when organizing professional and internal training of employees. Implementation of employee training and development programs is aimed at supporting current and future business processes in accordance with individual employee development plans.

The Rules also systematize actions and procedures in the area of professional development of employees and efficient use of the Company's budget funds.

We adhere to the principle of “70-20-10” where: 70% — self-training, 20% — internal training, 10% — external training. The training system is focused on the effective development of skills, knowledge, and competencies of employees in accordance with their job responsibilities.

Key areas of personnel development and training programs:

• operation of coal-fired boiler/steam turbines of thermal power plants;
• “mentoring” and “training of internal trainers” trainings;
• MBA and EMBA programs;
• English language courses;
• seminars, trainings and conferences on the functional focus of personnel activities;
• training and development of the Talent Pool.

Implementation of programs is provided both on-the-job and off-the-job, with the issuance of a certificate or qualification certificate.

Employee training costs

Total expenditures on employee training, thousand tenge

Training costs per employee per year, tenge

GRI 404-1, GRI 12: Coal Sector: 12.15.6

Average number of training hours per employee in the Company on average, person/hour

In order to maintain and develop competitiveness, proactively respond to external and internal challenges, build up the potential of promising and highly professional employees, and nurture our own management personnel, we are developing a system of succession and talent management.

In 2023, there were 783 employees in the Talent Pool.

We form a unified personnel reserve based on the principles of objectivity, transparency, fairness, voluntariness, and efficiency and in accordance with the Talent Management Rules of Samruk-Energy JSC.

The Board of Directors of Samruk-Energy JSC and the Company's management bodies pay increased attention to formation and fulfillment of the succession plan for managerial positions.

The process of formation and development of the personnel reserve is closely integrated with the annual evaluation of employees’ performance, carried out in accordance with the Rules for Evaluation of Employees Performance of Samruk-Energy JSC, providing for:

• comprehensive (summative) assessment of objectives and competencies, including self-assessment, review of skills and capacities, evaluation and provision of directions for performance improvement and development opportunities;
• quarterly interim performance review — monitoring the degree of fulfillment of objectives for the reporting period.

Based on the assessment results, a Talent Map is formed, a talent pool is formed, and individual development plans (IDPs) for reservists are developed, including mentoring, internship and succession programs are developed.

The results of the final assessment also serve as a basis for making appropriate decisions in the formation of changes in the official salary, as well as the payment of annual bonuses. In 2023, 121 people received performance and career development assessment.

In order to create a reliable talent pool, we actively cooperate with leading higher education institutions in Kazakhstan. We also participate in the development of dual education. In addition, university students and graduates are offered to undergo industrial and pre-graduation internships at the Company's enterprises with the possibility of subsequent employment. In 2023, 684 students underwent training and production practice at the Company, and 94 students underwent internships and apprenticeships.

Educational institutions with which the Company cooperates:

• Ekibastuz Mining and Technical College, State public utility company;
• Ekibastuz Polytechnic College, State public utility company;
• Satbayev Ekibastuz College of Engineering and Technology Institute NJSC Ekibastuz;
• College of Innovative Eurasian University;
• Gumarbek Daukeev Almaty University of Energy and Communications NJSC;
• Almaty State College of Energy and Electronic Technologies;
• Saken Seifullin Kazakh Agrotechnical University NJSC;
• Abylkas Saginov Karaganda Technical University NJSC;
• Toraigyrov University NJSC;
• Gumilyov Eurasian National University NJSC;
• Al-Farabi Kazakh National University NJSC;
• Nazarbayev University.

We are actively working on implementing high ethical standards and creating an effective corporate culture based on the principles of mentoring, reliability, fairness, and professionalism.

In 2023, as part of strengthening the Company's corporate values, on November 29-30, 2023, training on “Effective Team Management” was held for 26 CEO-1 and CEO-2 level managers. The main objective of this training was to realize and understand corporate values, form clear actions and measures to implement corporate values, and form a vision of the Company's future through joint teamwork.

In December 2023, we organized a meeting with the most promising employees from the Management Pool and the Functional Talent Pool. At this meeting, they discussed issues related to the awareness and application of the corporate value “Fairness”. The meeting was attended by members of the Nomination and Remuneration Committee of the Board of Directors.

Main channels of communication:

• Corporate internal portal;
• Corporate newsletter;
• Corporate pages in social media: Instagram, Facebook, Twitter, YouTube.>

Company news, information on projects and initiatives in the sphere of social policy of the Group of companies Samruk-Energy JSC is placed on the pages of social networks.

In accordance with our Development Strategy for 2022-2031, we aim to become the key and most attractive employer in the regions where we operate. Our main priority areas of development in the social aspect within the framework of ESG principles implementation will be as follows:

• Conducting an engagement survey and “Samruk Research Services” on an annual basis, and developing measures to increase the level of personnel engagement;
• Conducting an audit of HR processes of subsidiaries and affiliates in accordance with the action plan for implementation of the Personnel Policy of Samruk-Energy JSC;
• Conducting IR audit of subsidiaries and affiliates;
• Introduction, development and updating of adaptation programs for all personnel levels;
• Introduction of mentoring for newly hired employees (Buddy programm);
• Improvement of professional competencies of HR employees, including HR certification of HR employees;
• Implementation of targeted HR processes in accordance with the Corporate Standard;
• In order to implement HR policy in the Group of companies of Samruk-Kazyna JSC based on the results of the HR School program for implementation in 2024-2025, the Company selected the project “Mentor” for implementation in 2024-2025. The Company selected the project “Mentorship”.

Our aspirations to systematically improve the level of social responsibility and management of Samruk-Energy JSC employees correspond to the principles of the UN Global Compact and include a number of activities:

• increasing the level of social responsibility and following the principles of the UN Global Compact;
• introduction of high ethical standards, development of a system of values and building a corporate culture based on trust, investment in human capital and professional development;
• ensuring social guarantees and social stability in the Company (growth of personnel involvement, regulation of social and labor relations based on the principle of social partnership and social responsibility);
• social security (avoiding discrimination, violations of human rights, observing equal rights and opportunities);
• adherence to the principles of gender equality (increasing the number of women among employees and in the personnel reserve, ensuring an optimal number of women in managerial positions);
• controlling staff turnover, retaining internal talent and attracting highly professional staff (talent management, development of internal competencies);
• development of HR branding, including introduction of an approach to EVP formation (employer value proposition) and approval of the Road Map (action plan) for building EVP of Samruk-Energy JSC;
• improvement of the occupational health and safety management system and increase of its efficiency (transparency of reports on realized incidents in order to prevent cases with more severe consequences — fatalities, accidents), increase of safety culture and efficiency of control of the management system.