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MESSAGE FROM THE CHAIRMAN OF THE MANAGEMENT BOARD
GRI 102-14
2020 WAS A CHALLENGING YEAR FOR THE ENTIRE WORLD, AND THE ONGOING PANDEMIC DEMONSTRATED THE UNCONDITIONAL IMPORTANCE OF HEALTH AND SAFETY MEASURES. THANKS TO EFFECTIVE WORK, THE CURRENT SITUATION DID NOT AFFECT OUR LONG-TERM GOALS AND THE COMPANY HAS IN FACT CONFIRMED ITS COMMITMENT TO THE ESG PRINCIPLES.

DEAR SHAREHOLDERS, CLIENTS, PARTNERS, AND COLLEAGUES!

We are pleased to present to you Kazatomprom’s Annual Report for the year 2020. In this report, you can become familiar with the key results of the Development Strategy implementation as well as the Company’s activities for the past year.

The health, occupational safety and security of our employees has always been and will continue to be a top priority for the Company. In the face of the COVID-19 pandemic, we have taken bold, proactive steps to protect the health of our employees, their families and local communities. For example, when the pandemic began, the Company suspended all drilling and auxiliary work on new blocks for four months and immediately implemented business continuity plans that included the transition to teleworking for most of the administrative staff. All production facilities and offices strictly observe sanitary and epidemiological requirements and social distancing measures. We introduced mandatory PCR testing of all employees before they take shifts, and subsequently before the end of their shift and when they return to work between shifts.

Respect for the environment remains another key priority. Our operations have a minimal environmental footprint, and all production processes are in strict compliance with local environmental laws and international environmental safety standards. As a responsible subsoil user, Kazatomprom takes environmental protection seriously and strives to apply the best available practices to protect the environment.

The Company continues to consistently work to improve the effectiveness of corporate governance. As part of following the best practices to improve the work of management bodies, the Company continues to implement measures to expand the composition and gender diversity of the Management Board and the Company’s Board of Directors, the election of new members with the necessary set of professional knowledge, experience and competencies.

Despite external crisis conditions, Kazatomprom achieved high production and financial indicators and retained global leadership in the uranium mining industry. This became possible thanks to the dedicated work and joint actions of all of the Company’s employees.

In 2020, Kazatomprom once again proved its reputation as a reliable long-term partner and a responsible uranium supplier. Despite the coronavirus pandemic, the Company made all expected deliveries, just as it has under every contract. This reliability is fundamental to our relationships with our customers, who are the nuclear power plant operators around the globe.

Reaffirming our position as the global leader of the uranium mining industry and remaining committed to the value strategy, the Company will continue to produce at a level that is 20% below subsoil use contract levels in 2021-2022. In addition, we will not be recovering the lost output caused by the COVID-19 pandemic in 2020, and instead, will source required material from inventory and from the market. This proves once again our high level of responsibility and unconditional commitment to honouring all of our obligations.

Looking at the specific aspects of operations amid the pandemic, Kazatomprom accelerated the implementation of several key projects in 2020, designed to increase the automation of processes and build an effective digital ecosystem, which in turn helped increase the efficiency of production and business processes, creating additional competitive advantages and opportunities for stable growth in the future.

Kazatomprom also continued investing in social, economic, and infrastructural development in 2020, improving the quality of life of residents living in the regions where the Company operates. The principles of corporate social responsibility of the Company and its employees lie at the core of these efforts. This is increasingly important in the context of the coronavirus pandemic.

Kazatomprom’s consolidated revenues reached KZT 587.5 billion in 2020, with profit for the year of KZT 221.4 billion. Based on the 2019 performance, we paid KZT 99 billion (381.72 tenge per share) in dividends to our shareholders, considerably exceeding the promises made when the Company went public.

Effective cooperation with all stakeholders, maximum transparency in strategic decisions, and unconditional accountability to society and our employees, are fundamental to Kazatomprom’s leadership and allow the Company to contribute to the sustainable development of society, the country and the international nuclear industry.

Chairman of the Management Board NAC Kazatomprom JSC
Galymzhan Pirmatov