Dear colleagues, partners and investors!

We hereby present Kazatomprom’s integrated annual report for 2021, which contains the financial, operational and sustainability results for the national nuclear holding’s activities.

Despite the fact that this report is for year 2021, we cannot fail to mention the tragic events of January 2022 that happened in our country. On behalf of the Company, I would like to express gratitude to all employees of the Group for their unity and commitment, and to our partners, customers and shareholders for their support in such a difficult period for the whole country.

We also share the grief with all those affected by the conflict in Ukraine and our sincere hope is for the soonest and peaceful settlement of the situation.

It is important to note that neither the January events in Kazakhstan nor the situation in Ukraine had a significant impact on Kazatomprom operations. All the Company's enterprises keep working without interruption due to the introduction of timely measures to prevent destabilization and to ensure the safety of personnel and production sites. We are monitoring the situation and ready to make decisions that mitigate the risks and provide business continuity and efficiency.

Labor and environmental protection and ensuring industrial, nuclear and radiation safety at all production facilities remains a top priority.

Throughout 2021, the Company successfully coped with all the challenges of the past year, paying considerable attention to building robust business processes and adapting to the pandemic as required, while ensuring the health and wellbeing of employees, their families and the local population in the regions where the company operates. Thanks to timely preventive measures taken across the organization, there was no significant spread of COVID-19 at our operations, and following effective communications and incentives, nearly all of the Company’s employees have now been vaccinated against COVID-19.

Kazatomprom has implemented health and safety management systems that meet international standards at the production sites and as a result of the focus on industrial safety and fostering a culture of safe behavior among employees, there were no industrial accidents at Kazatomprom’s enterprises. However, we unfortunately saw the number of accidents and injuries increase compared to last year, including a tragic highway traffic accident that resulted in two fatalities. The Company’s management and board of directors took immediate actions to learn and share preventative actions across all operations. In addition, in order to improve road safety awareness, Kazatomprom declared 2022 the Year of Road Transport Security in the Company.

In accordance with the Company’s Development Strategy, we continue to improve our performance efficiency and strictly follow key ESG principles. Significant work in this area was completed in 2021, and environmental, social and corporate governance issues will remain among the priorities of Kazatomprom in the future.

The Company is also committed to environmental protection and preserving the natural environment near production sites, and the responsible use of natural resources to minimize its environmental impact.

Despite the challenges of the pandemic, in 2021 Kazatomprom delivered on its operational and financial guidance and kept the position of the largest producer and seller of natural uranium, all without the occurrence of any environmental accidents.

In terms of 2021 financial results, the Company’s consolidated revenue was KZT 691 billion, an increase of 18% compared to 2020. Adjusted net profit was 10% higher compared to 2020 reaching KZT 220 billion in 2021, and the total dividend paid out to shareholders in 2021 based on the results of 2020 amounted to KZT 150 billion – an increase of more than 50% over 2020’s payment.

During the reporting period, the Company continued working to restructure and dispose of non-core assets in order to focus on growth and value. Kazatomprom sold all enterprises involved in the development of solar energy – including Astana Solar LLP, Kazakhstan Solar Silicon LLP and MK KazSilicon LLP – to a third party, and Kazatomprom-Damu, a social investment fund that was no longer operational, was also dissolved, reducing the total number of KAP subsidiary companies from 40 to 36.

An important development in the world nuclear community was the creation of the IAEA Group of Vienna, in which Kazatomprom became a co-founder. The Group is expected to serve as a foundation for stimulating innovation in the nuclear sector by expanding efforts to address current global challenges through nuclear technology, while maintaining coordination across industry participants. As a founding member, Kazatomprom will support the international organization in its mission to enhance the contribution of nuclear technology and atomic energy to meet environmental, social and economic goals.

The launch of the Ulba FA LLP plant for the production of fuel assemblies was a significant historical event for the nuclear industry of Kazakhstan. For Kazatomprom, this was a significant step towards the diversification of nuclear fuel cycle products available to customers from the Company. The launch of this innovative enterprise will allow Kazakhstan to enter a limited group of states producing and supplying nuclear fuel for nuclear power plants. This project was implemented under historic cooperation agreements between Kazatomprom and the Chinese nuclear fuel cycle. In accordance with the obligations assumed under the agreements, the Company sold a 49% stake in ME ORTALYK LLP to a subsidiary of CGNPC at fair market value.

Also in 2021, Kazatomprom signed an agreement to invest in ANU Energy OEIC Ltd, a new physical uranium fund established on the Astana International Financial Center platform. The purpose of the fund is to store physical uranium as a long-term investment and provide direct access to commodity-focused funds, sovereign wealth funds, stateowned enterprises, and various categories of emerging market investors, especially those focused on environmental, social responsibility and corporate governance, and clean energy. This project will open new prospects for the development of the uranium industry in Kazakhstan and beyond.

Advancing further cooperation in the scientific and technical sphere, Kazatomprom signed an agreement with the “National Nuclear Center of the Republic of Kazakhstan”, a State enterprise. Under this agreement, scientific and technical projects related to atomic energy, research related to nuclear installations and transportation packaging, and reactor testing of viable materials and components of nuclear fuel will be funded and delivered.

Social development in the regions where the Company is present and the improvement of the quality of life of the local population is also very important to us. In 2021, Kazatomprom implemented a number of social projects, such as the construction of modern children's playgrounds and sports grounds in seven settlements of the Turkestan and Kyzylorda regions. As a socially responsible company, Kazatomprom plans to continue consistent implementation of measures aimed at maintaining strong long-term relationships with local communities.

Kazatomprom will continue to follow its strategy and create long-term value for all stakeholders. I am confident that favorable prospects of the uranium market will strengthen the competitiveness of Kazatomprom, and we will achieve even greater success and deliver strong results in all of the Company’s priority areas.