The Board of Directors

The Board of Directors provides strategic management of the Company and controls over the performance of an executive body.

The Board always considers its obligations to the Company in accordance with the Legislation and the Corporate Governance Code, in particular the obligation to contribute to the success of a business when making decisions that, in its opinion, are in the best interests of shareholders and the long-term sustainable development of the Company.

A high-quality Board of Directors is the key to a successful implementation of our Strategy, therefore, balance is an important requirement for the composition of the Board, not only in terms of the number of directors, but also in terms of experience, variety of skills, knowledge and thinking styles.

Diversity in terms of experience and personal characteristics is secured in the composition of the Board of Directors, however, due to the absence of women on the Board of Directors, the gender composition of the Board is not diverse.

In 2020, the number of members of the Board of Directors consisted of 5 people, including 2 independent directors, which will help to ensure the independence of decisions made and fair treatment of all stakeholders and in accordance with the interests of the Company.

The main criterion for the selection of Independent Directors is to have sufficient professionalism and autonomy to make unbiased decisions free from the influence of any parties. Independent directors actively share their experience and knowledge to apply the best international practice standards at the Company. Independent directors chairs the committees of the board of directors and bring in international management experience.

Independent Directors actively participate in the discussion of issues where a conflict of interests is possible (preparation of financial and non-financial statements, conclusion of interested-party transactions, nomination of candidates to the executive body, establishment of remuneration to members of the executive body). “Samruk-Energy” JSC Independent Director monitors the possible loss of independence status.

According to the 2020 results, the Independent Directors of the Company fully met the independence criteria.

COMPOSITION OF THE COMPANY’S BOARD OF DIRECTORS

You may learn about full resume of each Board member on the website: www.samruk-energy.kz

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Yessimkhanov Sungat Kuatovich was elected the member of “Samruk-Energy” JSC Board of Directors by the resolution of “Samruk-Kazyna” JSC Management Board dated April 12, 2021 (Minutes No. 13/21).

Akchulakov Bolat Uralovich was elected the member of “Samruk-Energy” JSC Board of Directors and its Chairman by the resolution of “Samruk-Kazyna” JSC Management Board dated April 26, 2021 (Minutes No. 17/21).

Kravchenko Andrey Nikolayevich was elected the member of “Samruk-Energy” JSC Board of Directors by the resolution of “Samruk-Kazyna” JSC Management Board dated April 26, 2021 (Minutes No. 17/21).

The powers of Zhamiyev Almat Kunzholovich, “SamrukEnergy” JSC Board of Directors member were terminated by the resolution of “Samruk-Kazyna” JSC Management Board dated April 26, 2021 (Minutes No. 17/21).

The powers of Luca Sutera, the member of “SamrukEnergy” JSC Board of Directors were expired in June 2020 by the resolution of “Samruk-Kazyna” JSC Management Board dated June 24, 2019.

In line with the best international corporate governance practice, in 2021, the Company carried out a self-assessment of the Board of Directors performance. Self-assessment was performed by concerned structural units of the Company in reliance on the Methodology for performance appraisal of the Board of Directors and its Committees that was approved by the Board of Directors of the Company, developed on the basis of the Methodology for diagnosing corporate governance, as well as leading practices in corporate governance.

According to the methodology, the assessment technology included questioning of all members of the Board of Directors and Committees of the Board of Directors.

The result of the Board of Directors’ performance appraisal revealed directions for further development of corporate governance practices. In particular, the main directions were determined as: personnel development, management of subsidiaries, organization of the work of the Board of Directors, training of members of the Board of Directors.

Following the appraisal conducted, the Plan of actions aimed at eliminating weaknesses was presented to improve performance of the Board of Directors and corporate governance of the Company in general.

The overall rating of the assessment was 6 (AA) out of a possible 7 (AAA), which means:

The Board of Directors of the Company meets, in all material respects, almost all of the established criteria, and that there is a confirmation about the effective performance of the Board of Directors.

The result of the Board of Directors’ performance appraisal revealed directions for further development of corporate governance practices. In particular, the main directions were determined as: personnel development, management of subsidiaries, organization of the work of the Board of Directors, training of members of the Board of Directors.

Following the appraisal conducted, the Action plan for development of the Board of Directors for 2021–2022 was approved.

For maintaining business continuity and advanced renewal of the Board of Directors composition, the Company has a Succession Plan of “Samruk-Energy” JSC Board of Directors, which includes, among other things, an Action Plan for its implementation.

The procedure for nomination and selection of candidates for members of the Board of Directors, its committees, as well as criteria used in the nomination and selection, taking into account diversity factors, including but not limited to independence, professional qualifications and experience, is carried out in accordance with the Regulations on the Board of Directors, the RK Law “On joint-stock companies”, the Corporate Governance Code. These documents govern the procedures used by the Board of Directors to prevent and manage conflicts of interest.

The Company approved an induction program for newly elected members of the Board of Directors, which allows a newly elected member of the Board to learn more about his rights and obligations, key aspects of the Company’s operations and documents, including those related to the greatest risks.

Attendance of Board of Directors members

* until June 24, 2020 (authority expiration date)

In 2020, the Company’s Board of Directors considered 162 items. The procedure for informing the Board of Directors about critical financial and non-financial issues is managed in accordance with the current legislation and internal regulations. According to the results of 2020, there were no such cases In total, remuneration to independent directors for 2020 amounted to 187,707 US dollars or 76,937,592 tenge.

Matters on which the Board of Directors made decisions

Remuneration of the Board of Directors members

Independent directors receive annual fixed remuneration for performing their duties as members of the Company’s Board of Directors.

An independent director is reimbursed for expenses (transport, accommodation and daily allowance) related to departure for meetings of the Board of Directors and committees of “Samruk-Energy” JSC Board of Directors held outside the place of the permanent residency of an independent director

The Board of Directors Committees

The Board delegates authority to its committees to carry out certain tasks on its behalf, so that it can perform its roles effectively and give an appropriate attention to more in-depth study and quality study of issues and decisions taken.

The Company has Committees under the Board of Directors: the Audit Committee, the Appointment and Remuneration Committee and the Strategic Planning Committee, as well Health, Safety and Environmental Protection Committee. The Report on performance results of the Board of Directors Committees

The number of items considered at the meetings broken down by Committees

The Audit Committee

The purpose of the Committee’s activities is to assist the Board of Directors for in-depth study of issues to establish an effective system of control over the financial and economic activities of the Company, including the completeness and reliability of financial statements, control over the reliability and efficiency of internal control and risk management systems, and the execution of documents in areas of corporate governance, monitoring the independence of external and internal audit, as well as the process of ensuring compliance with the legislation of the Republic of Kazakhstan.

The Committee’s composition:

• Andreas Stoerzel – Senior Independent Director, Chairman of the Committee;
• Joaquin Galindo – Independent Director, member of the Committee.

Number of the audit committee meetings

Main items considered

Meetings with the executive body regarding the preparation of financial statements, meetings with external auditors were held. The issues of the work of the Internal Audit Service, Compliance Service and Risk Management and Internal Control Department were considered.

The Appointment and Remuneration Committee

The Appointment and Remuneration Committee is an advisory body of the Board of Directors, which provides recommendations on the issues of appointment and remuneration of members of the Board of Directors, the Management Board, the Corporate Secretary, and other employees in accordance with the internal regulatory documents of the Company.

The Committee’s composition:

• Joaquin Galindo – Independent Director, Chairman of the Committee;
• Andreas Stoerzel – Senior Independent Director, member of the Committee.

Number of meetings of the Appointment and Remuneration Committee

Main items considered

During the reporting period the Board of Directors was provided with recommendations on the election of members of the Supervisory Boards / Boards of Directors across “Samruk-Energy” JSC group. Recommendations on the appointment of the Managing Director for Economy and Finance of the Company, on the approval of the job description and evaluation (Job description) of the Managing Director for Risks and Legal Affairs, and on the approval of the new version of the organizational structure of the Company were given.

Actual values of key performance indicators of the Management Board members, Head of the Internal Audit Service and Corporate Secretary of “SamrukEnergy” JSC, motivational KPI of members of the Management Board, Head of Internal Audit Service and Corporate Secretary of “Samruk-Energy” JSC were considered.

The Strategic Planning Committee

The aim of the Committee is to provide recommendations to the Council on the development of priority areas of activity (development), strategic goals (development strategies) of the Company, the implementation of a sustainable development management system, including labor and environmental issues, the implementation of investment projects, the Company’s master plan and events that contribute to improving the efficiency of the Company in the long term.

The Committee’s composition:

• Andreas Stoerzel – Senior Independent Director, Chairman of the Committee;
• Joaquin Galindo – Independent Director, member of the Committee.

Number of the Strategic Planning Committee meetings

Main items considered

Consideration of the following Reports every quarter: on the implementation of the Action Plan for improving corporate governance and the introduction of the Corporate Governance Code of “Samruk-Energy” JSC, on the consideration of the Action Plan for the implementation of the Company’s Development Strategy for 2018– 2028, on the implementation of the Development Plan of the Company, on the use of investments in the investment projects of the Company, on the progress of the Company’s Digital Transformation Program.

Consideration of the Company’s Materiality Matrix, project on major repair of power unit No.4 of Ekibastuz SDPP-1 worth more than 1 bn tenge, the list of non-strategic assets (divestments) subject to withdrawal at the Company level, stakeholder engagement and feedback mechanism report for 2019.

Health, Safety and Environmental Protection Committee

The aim of the Committee is to ensure the Company’s performance improvement by preparing recommendations, assessment, analysis and effective work on occupational health and safety, and environmental protection issues to the Board of Directors.

The Committee’s composition:

• Joaquin Galindo – Independent Director, Chairman of the Committee;
• Andreas Stoerzel – Senior Independent Director, member of the Committee.

Number of Health, Safety and Environmental Protection Committee meetings

Main items considered

Consideration of the Report on the work performed in the field of occupational health and safety and workplace injuries on a quarterly basis. Consideration of the Concept of unified automated system for registration of occupation health and safety related incidents and violations.