ABOUT REPORT

The Company’s annual report for 2021 is the thirteenth in a row and continues the practice of publishing the corporate reports annually. All of the reports are available on the Company’s official website www.skcn.kz. This report is an integration of the Company’s financial and non-financial statements for 2021 and reflects the relationship between the Company’s corporate management systems and sustainable development. At the stage of developing the concept of the Report, the results of dialogues with stakeholders and the recommendations of the Board of Directors received in relation to the previous report in the field of sustainable development were monitored. The purpose of this report is to inform readers about all significant events that affect the Company’s activities. The Company aims to help stakeholders to understand how we have formed our strategy, how we manage our assets, achieve the necessary financial performance, ensure sustainable operations in the long term and work on creating the value that we strive to generate for the shareholder and all of the parties interested in our activities. The target audience of the Annual Report is traditionally a wide range of the Company’s stakeholders, including employees, the Sole Shareholder and the Board of Directors, residents of the regions of presence, government agencies, financial institutions, customers and partners of the Company. The Company has various channels to receive feedback. The comments and suggestions on the Annual Report are accepted by phone and e-mail specified in the Contact Information section. All received messages will be considered and taken into account in the process of working on the next Report. The consultations of the Company’s employees will be provided on the issues of interest. In some cases, to avoid duplication of the information, the Annual Report refers to the other publicly available documents. While preparing and presenting data, the Company is guided by the application of GRI Standards, as well as the International Financial Reporting Standards in terms of financial performance and production indicators. Annex 1 to the Annual Report provides the information on the Company’s related party transactions and major transactions, Annex 2 presents the GRI Standards content index, Annex 3 is the consolidated financial statements for the year ended 31 December 2021, including the Independent Auditor’s Report. The report is published identically in the Kazakh, Russian and English languages. The document can be found on the Company’s Internet resource.

The Company’s Sustainability Report for 2021, which is included in the Annual Report, has been prepared in accordance with GRI standards: main version. The report is discussed by the Management Board of the Company, then at the meeting of the Board of Directors, and approved as part of the Annual Report. A questioning was conducted among the employees of the Company and representatives of external stakeholders to update the material topics. Based on the work performed, a matrix of material topics was compiled. Topics with the highest scores were considered significant. Significant topics are fully disclosed in the Report; a reference to their disclosure is given in the GRI content index. In comparison with the aspects disclosed in the Report for 2020, based on the results of stakeholders’ questioning, the topics of ‘employment’, ‘relationship between employees and management’, and ‘diversity and equal opportunities’ have been identified as significant, and the topics of ‘procurement practice’, ‘investment’, and ‘health and safety requirements’ ceased to be significant for disclosure in the Report for 2021. The scope of information collection on significant topics is defined in such a way that the Report describes all the most significant impacts of the Company. Compared to the previous reporting period, the scope of information collection has not changed significantly. This report has not been externally validated.