“SAMRUK-ENERGY” JSC | Integrated ANNUAL REPORT

ABOUT THE REPORT

Views of stakeholders were considered during preparation of this Report, as well as all major aspects were covered in accordance with the GRI Standards: Core option. The table showing the location of the standard elements in the Report is attached to the report.

The Сompany adheres to the following approaches in determining the content and quality of the Report

Interaction with stakeholders and materiality

According to “Samruk-Energy” JSC Sustainable Development Guide that was approved by the Board of Directors, significant aspects and topics for disclosure were identified in the report. This Report was prepared taking into account the reporting principles of the “Global Reporting Initiative” and the GRI Electricity Industry (EU) protocol, the requirements for reporting of the UN Global Compact, and the International Financial Reporting Standards. The company updated the stakeholder map as well as the Plan for communication with them (https://www.samruk-energy.kz/ru/shareholder/annual-reports).

During the survey, stakeholders evaluated the materiality of each of the topics proposed in the questionnaire for disclosure in the annual report, and could also add aspects that are not included to the list, but are significant in the opinion of the stakeholder.

Additionally, an online questionnaire was launched on the Company’s website (https://www.samruk-energy.kz/ru/shareholder/annual-reports).

In order to assess the identified material aspects for their completeness and balance, discussions were held with the participation of the Company’s management and a materiality matrix was developed, which gives a visual representation of sustainable development topics that are important for the Company and stakeholders.

The Context of Sustainable Development

The report provides information on the Company’s contribution to the economic, environmental, social aspects.

The Company’s development strategy determines goals, objectives and strategic KPIs in sustainable development, provides information on their achievement based on the results of 2018, as well as plans for 2019.

Completeness

The indicators and content of the Report are sufficient to reflect the significant impact of the Company on the economy, the environment and society during the reporting period.

Balance

This Report reflects the positive and negative aspects of the Company’s results for the reporting year. Certain indictors were disclosed in 3-year dynamics.

Comparability

Stakeholders using this Report can compare the information provided on the Company’s financial and operating performance with the results for previous periods and its objectives.

The report was prepared in accordance with GRI Standards, which allows stakeholders to compare the Company’s operations with those of other companies.

Accuracy

The information provided in the Report is accurate enough and detailed so that stakeholders can evaluate the results of the Company’s operations for the reporting period. Information is expressed both in quality descriptions and in figures.

Timeliness

The report is provided on an annual basis within the shortest possible time after the approval of the audited financial statements and no later than July 30, which allows assuming that the information reflected in this Report is relevant. The report is posted on the company’s website in Kazakh, Russian and English, simultaneously for all stakeholders.

Clarity

The information in the Report is set out in an understandable and accessible form to the interested parties.

Reliability

In preparing this Report, the information provided was preliminarily analyzed and disclosed in such a way that stakeholders could check this Report and assess the degree of reliability of its content.

Data sources are official reporting forms, which are submitted to government agencies every year. A number of indicators are calculated in accordance with the forms of internal reporting, which are checked by responsible representatives of companies during internal audit procedures.

Production, social and environmental indicators presented in the Company Report were calculated, collected and consolidated in accordance with principles of reporting and recommendations of Sustainability Reporting Guidelines and the Company’s corporate governance procedures. The probability of an error in figures for each category of indicators in the area of sustainable development is minimized. Ratios and specific values are supplemented by absolute values. Figures were indicated by using generally accepted system of measurement units and are calculated using standard coefficients.

The report provides all stakeholders with an overview of operations results and achievements of “Samruk-Energy” JSC group of companies from January 1 to December 31, 2018 in electronic, paper form or online. The date of publication of previous Integrated Annual Report of the Company – July 27, 2018.

Limitation of the scope and boundaries of the Report

The audited consolidated financial statements of the Company for 2018 as of December 31, 2018 and as of 31 December 31, 2017, specified in this Report 2017 are the result of an independent audit of “PricewaterhouseCoopers” LLP.

This Report provides information on financial and operating results and sustainable development. Qualitative and quantitative information were presented for 2018, in order to compare and analyze information in indicators, data for 2016 and 2017 were used where applicable.

The company disclosed information in accordance with the GRI G4 Guidelines in the 2017 Report. In order to apply the best world practices, the Company determined the Report scope in accordance with GRI Standards, which were introduced in 2018.

The indicators of the following subsidiaries and affiliates were used in the audited consolidated financial statements of the Company for 2018:

Name of the company

Nature of business

% voting right

Interest

Country of registration

Subsidiaries:

 

 

 

 

“Alatau Zharyk Company” JSC

Transmission and distribution of electricity across Almaty city and Almaty region

100 %

100 %

Kazakhstan

“Almaty Power Plants” JSC

Production of electricity and heat and hot water in Almaty city and Almaty region

100 %

100 %

Kazakhstan

“AlmatyEnergoSbyt” LLP

Electricity sale throughout Almaty city and Almaty region

100 %

100 %

Kazakhstan

“Shardarinsk HPP” JSC

Electricity production at hydropower plant in the Southern Kazakhstan

100 %

100 %

Kazakhstan

“Moynak HPP” JSC

Electricity production at hydropower plant in Almaty region

100 %

100 %

Kazakhstan

“Ekibastuz SDPP‑1 named after Bulat Nurzhanov” LLP plant

Coal-based production of electricity and heat

100 %

100 %

Kazakhstan

“Bukhtarminsk HPP” JSC

Is the owner of leased out Bukhtarminsk hydropower plant

90 %

90 %

Kazakhstan

“Ust-Kamenogorsk HPP"

Since the transfer of hydropower plant to lease. this company does not operate

89.99 %

89.99 %

Kazakhstan

“Shulbinsk HPP” JSC

Since the transfer of hydropower plant to lease. this company does not operate

92.14 %

92.14 %

Kazakhstan

“Samruk-Green Energy” LLP

Development of renewable energy

100 %

100 %

Kazakhstan

“First Wind Power Plant” LLP

Production of electricity at wind power plant

100 %

100 %

Kazakhstan

 

 

 

 

 

“Kazhydrotechenergo” LLP

Implementation of RE projects

100 %

100 %

Kazakhstan

“Teploenergomash” LLP

Implementation of RE projects

95 %

95 %

Kazakhstan

“Energy Solutions Center” LLP

Transportation and other services

100 %

100 %

Kazakhstan

Statements concerning the future

Data in the Report associated with the future are based on forecast information. Words such as “believes”, “assumes”, “expects”, “evaluates”, “intends”, “plans”, indicators marked as “plan” and similar expressions indicate that in this case it is about forward-looking statement. Actual results may differ significantly from planned and target indicators, expected results, estimates and intentions contained in forward-looking statements. Forecast statements are only valid on the date of the release of the Report. The Company does not guarantee the anticipated performance results presented in the forecast statements will in fact be achieved, therefore they must not and cannot be considered as the most likely or typical scenario.