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ЕВРАЗ. Годовой отчет за 2021 год - часть 11

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Additional information

ANNUAL REPORT & ACCOUNTS 2021

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Employee Benefits (continued)

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured.

Defined Benefit Plans

The following specific recognition criteria must also be met before revenue is recognised:

The Group companies provide pensions and other benefits to their employees (Note 23). The entitlement to these benefits is usually conditional on

the completion of a minimum service period. Certain benefit plans require the employee to remain in service up to retirement age. Other employee

Sale of Goods

benefits consist of various compensations and non-monetary benefits. The amounts of benefits are stipulated in the collective bargaining agreements

and/or in the plan documents.

The Group recognises revenues from sales of goods at the point in time when control of the asset is transferred to the customer and it is probable that

the amount of consideration is collectible. The moment of transfer of control is determined by the contract terms and usually occurs at the date of

The Group involves independent qualified actuaries in the measurement of employee benefit obligations.

shipment.

The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method. Re-measurements, comprising of

Some contracts with customers provide a right of return, trade discounts or volume rebates. The Group recognises revenue from the sale of goods

actuarial gains and losses on post-employment benefit obligations, the effect of the asset ceiling, and the return on plan assets (excluding amounts

measured at the fair value of the consideration received or receivable, net of the estimated returns and price concessions, trade discounts and volume

included in interest income), are recognised immediately in the statement of financial position with a corresponding debit or credit to retained earnings

rebates. The variable consideration is recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue

through other comprehensive income in the period in which they occur. Re-measurements are not reclassified to profit or loss in subsequent periods.

recognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

Past service costs are recognised in profit or loss on the earlier of the date of the plan amendment or curtailment, and the date that the Group

The Group enters into contracts with its customers, under which the Group provides transportation and handling services using third party providers

recognises restructuring-related costs.

(i.e. the Group selects suitable firms and manages the shipment and delivery). These services are provided to the customers before, or after, they

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. It is recorded within interest expense in

obtain control over the goods. The cost of services is included in the contract price. Under IFRS 15, transportation and handling services rendered by

the consolidated statement of operations.

the Group before control over the goods is transferred to the customers do not represent a separate performance obligation. Therefore, the Group

recognises these services at the moment when control over the goods is passed to the customers. With respect to the contracts when the Group

The Group recognises current service costs, past-service costs, gains and losses on curtailments and non-routine settlements in the consolidated

provides transportation and handling services after obtaining control over the goods by the customers, the Group concluded that these services

statement of operations within “cost of sales”, “general and administrative expenses” and “selling and distribution expenses”.

represent a separate performance obligation and the Group acts as a principal rather than an agent. Consequently, the control over its services is

transferred over time. Transportation and handling services rendered by the Group in contracts, in which it acts as a principal, are presented within

Other Costs

the caption ”Sales of goods” in the consolidated statement of operations.

The Group incurs employee costs related to the provision of benefits such as health services, kindergartens and other services. These amounts

principally represent an implicit cost of employment and, accordingly, have been charged to cost of sales.

Rendering of Services

The Group’s revenues from rendering of services include electricity, transportation and other services. The pattern of revenue recognition reflects the

Share-based Payments

transfer of services to customers and may occur at a point in time or over time.

The Group has Incentive Plans (Note 21), under which certain senior executives and employees of the Group receive remuneration in the form of share-

based payment transactions, whereby they render services as consideration for equity instruments (“equity-settled transactions”).

Advances from Customers

The cost of equity-settled transactions with grantees is measured by reference to the fair value of the Company’s shares at the date on which they are

The Group receives only short-term advances from its customers. The Group uses the practical expedient provided in IFRS 15, which allows not to

granted. The fair value is determined using the Black-Scholes-Merton model. In valuing equity-settled transactions, no account is taken of any

adjust the promised amount of consideration for the effects of a significant financing component in the contracts where the Group expects, at contract

conditions, other than market conditions.

inception, that the period between the Group’s transfer of a promised good or service to a customer and when the customer pays for that good or

The cost of equity-settled transactions is recognised, together with a corresponding increase in equity (additional paid-in capital), over the period in

service will be one year or less. Therefore, for short-term advances, the Group does not account for a financing component even if it is significant.

which service conditions are fulfilled, ending on the date on which the relevant persons become fully entitled to the award (“the vesting date”).

The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting

Interest

period has expired and the Group's best estimate of the number of equity instruments that will ultimately vest. The charge or credit in the statement of

Interest is recognised using the effective interest method.

operations for a period represents the movement in cumulative expense recognised as at the beginning and end of that period.

No expense is recognised for awards if EBITDA-related conditions are not satisfied or participants lose the entitlement for the shares due to

Dividends

the termination of their employment. Accumulated share-based expense is adjusted to reflect the number of share options that eventually vest.

Dividend income is recognised when the shareholders’ right to receive the payment is established.

For market-related performance conditions, such as total shareholder return (“TSR”), if the conditions are not met and the share options do not vest,

then no reversal is made for the share-based expense previously recognised.

Rental Income

The TSR-related vesting condition of Incentive Plans adopted in 2017-2021 was considered by the Group as a market condition. As such, it was

Rental income is accounted for on a straight-line basis over the lease term on ongoing leases.

included in the estimation of the fair value of the granted shares and will not be subsequently revised. Vesting condition related to EBITDA was not

taken into account when estimating the fair value of the share options at the grant date. Instead, this will be taken into account by adjusting the share-

based expense based on the number of share options that eventually vest.

Government Grants

Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition,

Government grants are recognised at their fair value, when there is reasonable assurance that the grant will be received and all attaching conditions

an expense is recognised for any modification which increases the total fair value of the share-based payment arrangement, or is otherwise beneficial

will be complied with.

to the employee as measured at the date of modification.

Grants related to non-monetary assets are presented in the statement of financial position by deducting the grant in arriving at the carrying amount of

Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for

the asset and are recognised as a deduction from depreciation expense over the life of the asset. Government grants related to costs are deducted

the award is recognised immediately.

from the relevant expenses to be compensated in the same period.

The dilutive effect of outstanding share-based awards is reflected as additional share dilution in the computation of earnings per share (Note 20).

Current Income Tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the tax

authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the end of the reporting

period.

Current income tax relating to items recognised outside profit or loss is recognised in other comprehensive income or equity and not in the statement

of operations.

200

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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

3. SEGMENT INFORMATION (CONTINUED)

Deferred Income Tax

The following tables present measures of segment profit or loss based on management accounts.

Deferred tax assets and liabilities are calculated in respect of temporary differences using the liability method. Deferred income taxes are provided for

all temporary differences arising between the tax basis of assets and liabilities and their carrying values for financial reporting purposes, except where

Year ended 31 December 2021

the deferred income tax arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and,

Steel,

Other

at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

US$ million

Steel

North America

Coal

operations

Eliminations

Total

A deferred tax asset is recorded only to the extent that it is probable that taxable profit will be available against which the deductible temporary

Revenue

differences can be utilised. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that

Sales to external customers

$ 10,127

$ 2,324

$ 1,555

$ 153

$ –

$ 14,159

sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Various factors are considered to assess

Inter-segment sales

–

766

382

(1,209)

–

the probability of the future utilisation of deferred tax assets, including past operating results, operational plans, expiration of tax losses carried

Total revenue

10,188

2,324

2,321

535

(1,209)

14,159

forward, tax legislation and tax planning strategies.

Relating to:

Deferred tax assets and liabilities are measured at tax rates that are expected to apply to the period when the asset is realised or the liability is settled,

Continuing operations

10,188

2,324

882

535

(443)

13,486

based on tax rates that have been enacted or substantively enacted at the end of the reporting period.

Discontinued operations (Note 13)

–

1,439

–

(766)

673

Deferred income tax is provided on temporary differences arising on investments in subsidiaries, associates and joint ventures, except where the

timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable

Segment result – EBITDA

$ 3,593

$ 322

$ 1,288

$ 16

$ (80)

$ 5,139

future.

Year ended 31 December 2020

3. SEGMENT INFORMATION

Steel,

Other

US$ million

Steel

North America

Coal

operations

Eliminations

Total

For management purposes the Group has four reportable operating segments:

Revenue

Sales to external customers

$6,902

$ 1,779

$952

$ 121

$ -

$ 9,754

•

Steel segment includes production of steel and related products at all mills except for those located in North America. Extraction of vanadium ore

and production of vanadium products, iron ore mining and enrichment and certain energy-generating companies are also included in this segment

Inter-segment sales

538

289

(894)

as they are closely related to the main process of steel production.

Total revenue

6,969

1,779

1,490

410

(894)

9,754

Relating to:

•

Steel, North America is a segment, which includes production of steel and related products in the USA and Canada.

Continuing operations

6,969

1,779

650

410

(356)

9,452

•

Coal segment includes coal mining and enrichment.

Discontinued operations (Note 13)

840

(538)

302

•

Other operations include energy-generating companies, shipping and railway transportation companies.

Segment result – EBITDA

$ 1,888

$ (22)

$ 396

$ 17

$ 20

$ 2,299

Management and investment companies are not allocated to any of the segments. Operating segments have been aggregated into reportable

segments if they show a similar long-term economic performance, have comparable production processes, customer industries and distribution

channels, operate in the same regulatory environment, and are generally managed and monitored together.

Year ended 31 December 2019

Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third parties.

Steel,

Other

The Group’s chief operating decision maker (the Board of directors of EVRAZ plc) monitors the results of the operating segments separately for

US$ million

Steel

North America

Coal

operations

Eliminations

Total

the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on EBITDA.

Revenue

This performance indicator is calculated based on management accounts and differs from the IFRS consolidated financial statements for the following

Sales to external customers

$ 7,903

$ 2,517

$ 1,273

$ 186

$ -

$ 11,879

reasons:

Inter-segment sales

175

735

303

(1,213)

1) for the last month of the reporting period management accounts are prepared using a forecast for that month;

Total revenue

8,078

2,517

2,008

489

(1,213)

11,879

2) before 2021 certain unallocated costs were treated as segment expenses in management accounts.

Relating to:

Continuing operations

8,078

2,517

814

489

(478)

11,420

Before 2020 there were additional differences between the IFRS indicators and the figures of management accounts, such as non-consolidation of

certain subsidiaries in management accounts, use of the adjusted local GAAP figures and simplified methods of translation into presentation currency.

Discontinued operations (Note 13)

1,194

(735)

459

Segment result – EBITDA

$ 1,668

$ 38

$ 883

$ 19

$ 32

$ 2,640

Segment revenue is revenue reported in the Group's statement of operations that is directly attributable to a segment and the relevant portion of

the Group’s revenue that can be allocated to it on a reasonable basis, whether from sales to external customers or from transactions with other

segments.

Starting 2020 the Group’s chief operating decision maker reviews the revenue based on IFRS accounts. The comparative information for prior periods

for revenue based on management accounts has not been restated since it contains necessary reconciliation to IFRS accounts.

Segment expense is expense resulting from the operating activities of a segment that is directly attributable to the segment and the relevant portion of

an expense that can be allocated to it on a reasonable basis, including expenses relating to external counterparties and expenses relating to

transactions with other segments. Segment expense does not include social and social infrastructure maintenance expenses.

Segment result is segment revenue less segment expense that is equal to earnings before interest, tax, depreciation and amortisation (“EBITDA”) for

that segment.

Segment EBITDA is determined as a segment’s profit/(loss) from operations adjusted for social and social infrastructure maintenance expenses,

impairment of assets, profit/(loss) on disposal of property, plant and equipment and intangible assets, foreign exchange gains/(losses) and

depreciation, depletion and amortisation expense. Management believes that this measure is useful and relevant for the users and gives a better

comparison with the Russian steel peers.

Segment information is presented together with the discontinued operations as this is a way how this information was reviewed by management.

202

203

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3. SEGMENT INFORMATION (CONTINUED)

The following table shows a reconciliation of revenue and EBITDA used by the Group’s chief operating decision maker for decision making and revenue

Year ended 31 December 2020

and profit or loss before tax per the consolidated financial statements prepared under IFRS.

Steel,

Other

Year ended 31 December 2021

US$ million

Steel

North America

Coal

operations

Eliminations

Total

Revenue per IFRS financial statements

$ 6,969

$ 1,779

$ 1,490

$ 410

$(894)

$ 9,754

Steel,

Other

US$ million

Steel

North America

Coal

operations

Eliminations

Total

Revenue per IFRS financial statements

$ 10,188

$ 2,324

$ 2,321

$ 535

$(1,209)

$ 14,159

EBITDA

$ 1,888

$ (22)

$ 396

$ 17

$ 20

$ 2,299

Unrealised profits adjustment

(48)

(4)

(51)

Reclassifications and other adjustments

(2)

EBITDA

$ 3,593

$ 322

$ 1,288

$ 16

$ (80)

$ 5,139

(6)

(2)

Reclassifications and other adjustments

(1)

–

EBITDA based on IFRS financial statements

$ 1,930

$ (28)

$ 400

$ 15

$ 21

$ 2,338

EBITDA based on IFRS financial statements

$ 3,609

$ 321

$ 1,292

$ 19

$ (80)

$ 5,161

Unallocated subsidiaries

(126)

Unallocated subsidiaries

(146)

$ 2,212

$ 5,015

Social and social infrastructure maintenance

(24)

(2)

(26)

(27)

–

(5)

–

(32)

expenses

Depreciation, depletion and amortisation expense

(261)

(147)

(189)

(3)

(600)

Depreciation, depletion and amortisation expense

(275)

(121)

(159)

(4)

–

(559)

Impairment of assets

(5)

(308)

(310)

Impairment of assets

(13)

(9)

(8)

–

(30)

Gain on disposal of property, plant and equipment

(3)

–

(7)

(1)

–

(8)

and intangible assets

Foreign exchange gains/(losses), net

(55)

122

Foreign exchange gains/(losses), net

(36)

–

(5)

$ 1,585

$ (484)

$ 334

$ 12

$ 21

$ 1,342

$ 3,258

$ 190

$ 1,144

$ 15

$ (80)

$ 4,381

Unallocated income/(expenses), net

329

Unallocated income/(expenses), net

Profit from operations

$ 1,671

Profit from operations

$ 4,413

Interest income/(expense), net

(322)

Interest income/(expense), net

(227)

Share of profits/(losses) of joint ventures and

associates

Gain/(loss) on financial assets and liabilities

(71)

Gain/(loss) on financial assets and liabilities

(21)

Gain/(loss) on disposal groups classified as held for

sale

Other non-operating gains/(losses), net

Profit before tax

$ 1,295

Profit before tax

$ 4,184

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3. SEGMENT INFORMATION (CONTINUED)

Year ended 31 December 2019

The revenues from contracts with external customers for each group of similar products and services and rental income are presented in the following

table:

Steel,

Other

US$ million

2021

2020

2019

US$ million

Steel

North America

Coal

operations

Eliminations

Total

Revenue

$ 8,078

$ 2,517

$ 2,008

$ 489

$(1,213)

$ 11,879

Steel

Construction products

$ 3,177

$ 2,013

$ 2,166

Reclassifications and other adjustments

(17)

(6)

(29)

Flat-rolled products

237

146

386

Revenue per IFRS financial statements

$ 8,143

$ 2,500

$ 2,021

$483

$(1,242)

$ 11,905

Railway products

1,083

1,099

1,181

Semi-finished products

3,779

2,479

2,528

EBITDA

$ 1,668

$ 38

$ 883

$ 19

$ 32

$ 2,640

Other steel products

566

342

377

Unrealised profits adjustment

139

Other products

449

257

365

Reclassifications and other adjustments

(81)

(1)

(37)

Iron ore

234

146

190

Vanadium in slag

103

109

127

(40)

(1)

102

Vanadium in alloys and chemicals

412

285

539

EBITDA based on IFRS financial statements

$ 1,795

$ 38

$ 843

$ 18

$ 48

$ 2,742

Rendering of services

103

Unallocated subsidiaries

(141)

10,127

6,902

7,944

$ 2,601

Steel, North America

Construction products

268

183

200

Social and social infrastructure maintenance

(17)

(3)

(20)

Flat-rolled products

900

323

518

expenses

Depreciation, depletion and amortisation expense

(254)

(147)

(168)

(4)

(573)

Railway products

392

326

405

Impairment of assets

(26)

(309)

(107)

(442)

Tubular products

637

743

1,128

Gain on disposal of property, plant and equipment

(3)

Other products

105

170

211

and intangible assets

Rendering of services

Foreign exchange gains/(losses), net

(10)

(30)

$ 1,489

$ (368)

$ 532

$ 24

$ 48

$ 1,584

2,324

1,779

2,500

Unallocated income/(expenses), net

(367)

Coal

Profit from operations

$ 1,217

Coal

882

646

814

Rendering of services

Interest income/(expense), net

(328)

Share of profits/(losses) of joint ventures and

882

650

826

associates

Other operations

Impairment of non-current financial assets

(56)

Rendering of services

153

121

174

Gain/(loss) on financial assets and liabilities

153

121

174

Gain/(loss) on disposal groups classified as held for

sale

Continuing operations

13,486

9,452

11,444

Other non-operating gains/(losses), net

Profit before tax

$ 902

Coal

649

283

437

The Group’s EBITDA was allocated to continuing and discontinued operations as follows:

Other products

Rendering of services

US$ million

2021

2020

2019

Discontinued operations

673

302

461

Continuing operations

$ 3,692

$ 1,830

$ 1,731

Discontinued operations (Note 13)

1,323

382

870

$ 14,159

$ 9,754

$ 11,905

$ 5,015

$ 2,212

$ 2,601

Revenue from rendering of services included rental income, which was mainly attributable to the subsidiaries of the steel segment.

US$ million

2021

2020

2019

Revenues from contracts with customers

$ 13,460

$ 9,427

$ 11,412

Rental income

Continuing operations

$ 13,486

$ 9,452

$ 11,444

206

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3. SEGMENT INFORMATION (CONTINUED)

Distribution of the Group’s revenues by geographical area based on the location of customers for the years ended 31 December was as follows:

Non-current assets other than financial instruments, deferred tax assets and post-employment benefit assets were located in the following countries at

31 December:

US$ million

2021

2020

2019

US$ million

2021

2020

2019

Continuing and

discontinued

Continuing

discontinued

Continuing

discontinued

Continuing

Russia

$ 2,241

$ 3,500

$ 3,967

operations

Canada

638

643

981

CIS

USA

966

818

827

Kazakhstan

Russia

$ 5,521

$ 5,089

$ 3,722

$ 3,514

$ 4,373

$ 4,056

Czech Republic

Kazakhstan

489

485

279

253

297

270

Other countries

Ukraine

250

291

179

Kyrgyzstan

$ 3,914

$ 5,033

$ 5,851

Belarus

Uzbekistan

In 2021, non-current assets other than financial instruments, deferred tax assets and post-employment benefit assets do not include the assets of

Others

the discontinued operations ($1,442 million).

6,455

5,840

4,306

4,032

5,238

4,782

America

USA

1,441

1,060

1,701

4. CHANGES IN THE COMPOSITION OF THE GROUP

Canada

953

735

847

Mexico

550

119

Purchase of Non-controlling Interests

Others

Raspadskaya

3,016

1,915

1,910

2,709

In 2021, the Group acquired an additional 2.51% ownership interest in Raspadskaya for cash consideration of $38 million. The excess of consideration

Asia

over the carrying values of non-controlling interests acquired amounting to $19 million was charged to the consolidated accumulated profits. More

Taiwan

1,084

525

680

details are provided in Note 4 (Put Option for the Shares of Raspadskaya).

China

712

711

1,052

1,051

478

476

Republic of Korea

435

379

255

282

In 2020, the Group acquired an additional 2.73% ownership interest in Raspadskaya, a subsidiary of the Group, for cash consideration of $27 million.

Indonesia

365

271

244

The excess of the carrying values of non-controlling interests acquired over consideration amounting to $7 million was credited to additional paid-in

capital.

Philippines

358

338

387

Japan

239

106

243

In 2019, the Group acquired an additional 1.8% ownership interest in Raspadskaya for cash consideration of $25 million. The excess of consideration

Vietnam

170

over the carrying values of non-controlling interests acquired amounting to $3 million was charged to accumulated profits.

Thailand

129

247

In addition, in June 2019 Raspadskaya purchased its own shares in course of the tender offer for cash consideration of $46 million. The Group

Mongolia

derecognised 2.53% of non-controlling interests and charged to accumulated profits $7 million representing the excess of consideration over

United Arab Emirates

124

the carrying values of non-controlling interests acquired.

Others

In the course of the closed subscription in September 2019 Raspadskaya issued 80,285 new shares, and Evraz Group S.A. acquired 80,284 shares,

3,684

3,627

2,949

2,948

2,893

2,891

thus increasing the Group’s stake in the subsidiary by 0.0014%.

Europe

European Union

582

581

314

304

767

764

Mezhegeyugol

Turkey

337

135

166

On 14 March 2017, the Group signed an option agreement with a non-controlling shareholder in respect of shares of Mezhegeyugol, a coal mining

Others

subsidiary of the Group. Under the agreement, the non-controlling shareholder had the right to sell to the Group (the put option) all its shares in

Mezhegeyugol (39.9841%) for $39 million and to settle the loan payable to the Group for $25 million. As a result, the Group would hold 100%

946

945

461

451

956

953

ownership interest in the subsidiary. The option could be exercised from 1 December 2019 to 1 December 2020.

Africa

In 2017, the Group determined that the terms of the option agreement give the Group the rights to the beneficial interests in Mezhegeyugol and

Kenya

derecognised the non-controlling interests in full and recognised a liability under the put option in the amount of $60 million. From March 2017 and

Egypt

until the put option exercise the Group accrued $9 million interest on this liability ($1 million and $3 million in 2020 and 2019, respectively).

Others

–

In June 2020, the non-controlling shareholder sold its interest to the Group. The consideration for the purchased non-controlling interest comprised of

122

110

107

a non-cash settlement of a loan owed to the Group with a carrying value of $30 million, which approximated the fair value, and $39 million of cash

consideration, which was fully paid in 2020.

Other countries

–

Change in Non-controlling Interests due to Reorganisation

$ 14,159

$ 13,486

$ 9,754

$ 9,452

$ 11,905

$ 11,444

In 2020, EVRAZ plc decided to reorganise its business structure combining all coal operations in one group consolidated under Raspadskaya.

None of the Group’s customers amounts to 10% or more of the consolidated revenues.

On 30 December 2020, Nizhny Tagil Metallurgical Plant, a wholly-owned subsidiary of the Group, sold its 100% ownership interest in Yuzhkuzbassugol

(which is in turn the parent entity of Mezhegeyugol) to Raspadskaya for cash consideration of RUB 67,741 million ($920 million at the date of

the transaction). As a result, the Group’s interest in Yuzhkuzbassugol was diluted from 100% to 90.90%. The carrying value of non-controlling interests

decreased by $45 million, being the share of non-controlling shareholders in the excess of cost of acquisition of Yuzhkuzbassugol over its consolidated

net assets, with a corresponding increase in the Group’s accumulated profits through the consolidated statement of changes in equity.

208

209

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Additional information

ANNUAL REPORT & ACCOUNTS 2021

4. CHANGES IN THE COMPOSITION OF THE GROUP (CONTINUED)

6. IMPAIRMENT OF NON-FINANCIAL ASSETS

Put Option for the Shares of Raspadskaya

A summary of impairment losses recognition and reversals relating to non-financial assets is presented below.

In the course of the Group’s business and ownership structure reorganisation, as described above in Change in Non-controlling Interests due to

Reorganisation, Raspadskaya followed the Russian legislation, which, in particular, required the approval of the potential acquisition of

Year ended 31 December 2021

Yuzhkuzbassugol by the majority of the voted non-controlling shareholders of Raspadskaya. The non-controlling shareholders who voted against or did

Goodwill and

Property, plant and

not vote have the right to sell their stakes to Raspadskaya at a price being the fair value determined by an independent appraiser (RUB 164 per share).

US$ million

intangible assets

equipment

Total

At the same time the liability for the share repurchase is limited to 10% of net assets of JSC Raspadskaya, thus, the number of shares to be

EVRAZ Consolidated West-Siberian Metallurgical Plant

$ –

$ (13)

repurchased is proportionately reduced if all potential shareholders cannot be satisfied.

EVRAZ Inc. NA

–

(9)

Consequently, the Group derecognised the non-controlling interests relating to the shareholders, which have a put option over their holding (4.25% of

–

(22)

the total shares of Raspadskaya), with the carrying value of $30 million, and recognised a $65 million liability to these shareholders at fair value.

Recognised in profit or loss from continuing operations

–

(22)

The difference between the amount of the recognised liability and the carrying value of the derecognised non-controlling interests was charged to

accumulated profits.

Discontinued operations (Note 13)

–

(8)

$ –

$ (30)

On 1 February 2021, Raspadskaya completed the collection of the share repurchase requests from eligible non-controlling shareholders. The actual

number of shares to be repurchased amounted to 2.51% of Raspadskaya’s share capital, which is equal to a $38 million liability. On expiry of the put

option in February 2021 the related amounts recognised in 2020 were reversed and the purchase of non-controlling interests ($19 million) was

recorded. The excess of consideration over the carrying values of non-controlling interests acquired amounting to $19 million was charged to

Year ended 31 December 2020

the consolidated accumulated profits.

Goodwill and

Property, plant and

US$ million

intangible assets

equipment

Total

Sale of Subsidiaries

EVRAZ Inc. NA Canada

$ (148)

$ (153)

$ (301)

EVRAZ Inc. NA

(7)

In 2019, the Group sold EVRAZ Stratcor Inc, EVRAZ Palini e Bertoli, and Evraztrans-Ukraine. Further details of these transactions are disclosed in

Others, net

(5)

Note 12.

(148)

(165)

(313)

Recognised in profit or loss from continuing operations

(148)

(165)

(313)

5. GOODWILL

Discontinued operations (Note 13)

$ (148)

$ (162)

$ (310)

Goodwill relates to the assembled workforce and synergy from integration of the acquired subsidiaries into the Group. The table below presents

movements in the carrying amount of goodwill.

Gross

Impairment

Carrying

Year ended 31 December 2019

US$ million

amount

losses

amount

Goodwill and

Property, plant and

US$ million

intangible assets

equipment

Total

At 31 December 2018

$ 2,221

$ (1,357)

$ 864

EVRAZ Inc. NA Canada

$ (300)

$ (1)

$ (301)

Sale of subsidiaries (Note 12)

(63)

EVRAZ Consolidated West-Siberian Metallurgical Plant

(18)

Impairment of Large diameter pipes

(300)

EVRAZ Nizhny Tagil Metallurgical Plant

(11)

Translation difference

(4)

Others, net

(5)

At 31 December 2019

$ 2,192

$ (1,598)

$ 594

Impairment

(300)

(35)

(335)

Large diameter pipes

(65)

Recognised in profit or loss from continuing operations

(300)

(35)

(335)

Oil Country Tubular Goods

(67)

Discontinued operations (Note 13)

(107)

Translation difference

(12)

(5)

$ (300)

$ (142)

$ (442)

At 31 December 2020

$ 2,199

$ (1,742)

$ 457

Translation difference

(5)

At 31 December 2021

$ 2,204

$ (1,747)

$ 457

Impairment losses were recognised both for individual assets and for cash-generating units.

Obsolescence or adverse changes in

The carrying amount of goodwill was allocated among cash-generating units as follows at 31 December:

the extent or manner in which an asset is being used

Impairment of cash-generating units

US$ million

2021

2020

2019

2021

2020

2019

US$ million

2021

2020

2019

Continuing operations

$ (9)

$ (7)

$ (21)

$ (13)

$ (306)

$ (314)

Discontinued operations

(8)

(107)

–

EVRAZ Inc. NA/EVRAZ Inc. NA Canada

$ 393

$ 392

$ 525

Large diameter pipes

–

$ (17)

$ (4)

$ (128)

$ (13)

$ (306)

$ (314)

Oil Country Tubular Goods

141

Long products

316

EVRAZ Vanady-Tula

In 2019-2021, the Group made a write-off of certain functionally obsolete items of property, plant and equipment. In 2019, the Group decided to

EVRAZ Nikom, a.s.

postpone reopening of a coal mine MUK-96, a subsidiary of Raspadskaya. In connection with this decision the recoverable amount of mining assets

relating to this mine ($84 million) was reassessed and fully impaired.

Others

$ 457

$ 594

210

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6. IMPAIRMENT OF NON-FINANCIAL ASSETS (CONTINUED)

In addition, the Group recognised impairment losses as a result of impairment testing at the level of cash-generating units.

In addition, the Group determined that there were indicators of impairment in other cash generating units, which do not contain goodwill or intangible

assets with indefinite useful lives, and tested them for impairment using the following assumptions.

In 2020, the Group recognised a $234 million impairment loss with respect to the Large diameter pipes cash-generating unit, which was allocated to

goodwill ($65 million), intangible assets ($16 million) and property, plant and equipment ($153 million) and a $67 million impairment loss with respect

to the Oil Country Tubular Goods cash-generating unit, which was allocated to goodwill. The impairment was caused by the reassessment of demand on

Average price

Period of forecast

the steel, oil and commodities markets in the USA and Canada.

prior to applying

Pre-tax

of commodity per tonne

terminal value, years

discount rate, %

Commodity in the next reporting year

In 2019, the Group recognised a $300 million impairment loss with respect to goodwill allocated to the Large diameter pipes cash-generating unit.

The impairment was caused by the use of a more conservative valuation model due to the increased current market volatility.

EVRAZ ZSMK

9.64

steel products

$ 505

Steel North America

Measurement of Recoverable Amount

Large diameter pipes

10.20

steel products

$ 1,553

For the purpose of the impairment testing the Group assessed the recoverable amount of each cash-generating unit to which goodwill was allocated or

Flat-rolled products

14.38

steel products

$ 1,398

where indicators of impairment were identified. In 2021, and in the previous years, the impairment testing was performed as of 30 September,

the conclusions were reassessed at 31 December and no further impairment indicators were identified.

In 2021, the recoverable amounts for all cash-generating units have been determined based on the calculation of value-in-use. This valuation

The estimations of recoverable amounts are most sensitive to the following assumptions:

technique uses cash flow projections based on the actual operating results and business plans approved by management and appropriate discount

rates reflecting the time value of money and risks associated with respective cash-generating units. For the periods not covered by management

Discount Rates

business plans, terminal value is used. The terminal value is calculated based on the cash flow projections by extrapolating the results of the

respective business plans using a zero real growth rate. Key assumptions are discussed further below.

Discount rates reflect the current market assessment of the risks specific to each cash-generating unit. The discount rates have been determined using

the Capital Asset Pricing Model and analysis of industry peers. Reasonably possible changes in discount rates could lead to an additional impairment at

In connection with the classification of Raspadskaya Group as a disposal group held for distribution to owners management performed an analysis of

Oil Country Tubular Goods, Flat-rolled products and Nikom. If discount rates were 10% higher, this would lead to an additional impairment of

the related cash-generating units as of 31 December 2021 and concluded that based on market capitalisation of Raspadskaya Group the respective

$20 million.

recoverable value is above the respective carrying value.

The impairment test model of EVRAZ ZSMK took into account the impact of the new excise tax on liquid steel and higher taxes on mineral extraction

Sales and Purchases Prices

imposed by the government of the Russian Federation from 1 January 2022, which was considered as an impairment indicator for EVRAZ ZSMK.

The price assumptions for the products sold and purchased by the Group were estimated based on industry research using analysts’ views published

The impairment test models of Steel North America took into account the impact of Section 232 tariffs imposed on imports to the US and anti-dumping

by Alfa Bank, Citi, Credit Suisse, CRU, Goldman Sachs, J.P. Morgan, Morgan Stanley and UBS during the period from July to November 2021, as well as

duties imposed by the US against Canada on large-diameter pipes (Note 30). The effect of the anti-dumping duties is expected to last until 2024 when

on an internal analysis. The Group expects that the nominal prices will fluctuate with a compound annual growth rate of (4.2)-2.0% in 2022 - 2025

they will be subject to a five-year (sunset) review by the US Department of Commerce. The Section 232 tariffs are not expected to be cancelled and this

and 2% in 2026 and thereafter. Reasonably possible changes in sales and purchases prices could lead to an additional impairment at Nikom, Large

was considered as an indicator of impairment for Large diameter pipes and Flat-rolled products. The models were based on the assumption that these

diameter pipes, Oil Country Tubular Goods, and Flat-rolled products. If the prices assumed for 2022 and 2023 in the impairment test were 10% lower,

tariffs will be in place in perpetuity.

this would lead to an additional impairment of $174 million.

The key assumptions used by management in the impairment tests with respect to the cash-generating units to which goodwill is allocated or units

containing intangible assets with indefinite useful lives are presented in the table below.

Sales Volumes

Based on signed contracts and market analysis management expects that the sales volumes of steel products in 2022 will change by (39)%-37% for Oil

Period of

Carrying amount

Country Tubular Goods and Large diameter pipes, and by (9)%-10% for other cash-generating units as compared to 2021. Future dynamics will be

forecast prior to

Average

Recoverable

of CGU before

driven by a gradual market recovery and removal of anti-dumping duties allowing the Group to utilise assets’ capacities to a greater extent. Reasonably

applying

price of commodity

amount of CGU at

impairment at

possible changes in sales volumes could lead to an additional impairment at Flat-rolled products. If the sales volumes were 10% lower than those

terminal value,

Pre-tax discount

per tonne in the next

30 September,

30 September*,

assumed for 2022 and 2023 in the impairment test (which could be, for example, a consequence of lower oil prices), this would lead to an additional

Commodity

years

rate, %

reporting year

US$ million

impairment of $6 million.

2021

2020

2021

2020

2021

2020

2021

2020

2021

2020

Steel North America

Costs

Oil Country Tubular Goods

steel products

10.36

10.17

$1,493

$1,121

293

279

278

346

The recoverable amounts of cash-generating units are based on the business plans approved by management. A reasonably possible deviation in

Long products

steel products

9.41

10.05

$924

$799

1,114

865

689

553

operating costs from these plans could lead to an additional impairment at Large diameter pipes, Oil Country Tubular Goods, Flat-rolled products,

vanadium

EVRAZ ZSMK and Nikom. If the actual costs were 10% higher than those assumed for 2022 and 2023 in the impairment test, this would lead to an

EVRAZ Vanady-Tula

products

11.44

12.22

$18,504

$17,548

698

575

additional impairment of $443 million.

ferrovanadium

EVRAZ Nikom, a.s.

products

13.20

13.71

$26,031

$18,569

Decarbonisation

* Carrying amounts represent the sum of net book values of property, plant and equipment, intangible assets and goodwill recorded in the balance

Decarbonisation, a reduction of carbon dioxide (CO2) emissions resulting from human activity, has become a global commitment and a priority for

sheets at 30 September excluding an impairment recognised in the first half of the reporting year.

governments, companies and society in recent years. Transitioning to a lower-carbon economy may trigger adverse effects in the technological, market,

economic or legal environment in which the Group operates. Climate-related risks and opportunities may affect revenues, costs and capital

expenditure.

The Group analysed the climate change matters and performed a stress test to assess the impact of a carbon tax. At present the countries have not yet

developed a clear legislation on a carbon tax. Consequently, the Group did not include this tax in a base scenario of the impairment models. If a carbon

tax is introduced in Russia and the rates for CO2 emissions approximate those in Europe, this may lead to an additional impairment of $768 million at

EVRAZ ZSMK.

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6. IMPAIRMENT OF NON-FINANCIAL ASSETS (CONTINUED)

7. INCOME AND EXPENSES (CONTINUED)

The Group’s costs relating to the COVID-19 pandemic included contributions to funds and hospitals, payments to employees during sick leave,

The impact of reasonably possible changes in assumptions is summarised in the table below.

laboratory testing, purchase of medical supplies and equipment. In 2021 and 2020, these costs in the total amount of $14 million and $25 million,

respectively, were recorded mainly in Cost of revenue, General and administrative expenses and Social expenses. Also in 2021 and 2020 the Canadian

US$ million

Discount rates

Sales prices

Sales volumes

Costs

Carbon Tax

subsidiaries received $8 million and $19 million, respectively, of the Canada Emergency Wage Subsidy. This income-related government grant reduced

Nikom

$ (3)

$ -

$ (17)

$ -

the amounts of staff costs and the related expense captions of the consolidated statement of operations.

EVRAZ ZSMK

(283)

(768)

Staff costs include the following:

Steel North America

US$ million

2021

2020

2019

Large diameter pipes

(35)

(18)

Oil Country Tubular Goods

(11)

(41)

(38)

Wages and salaries

$ (937)

$ (989)

$ (1,047)

Flat-rolled products

(6)

(198)

(6)

(87)

Social insurance contributions (Note 23)

(287)

(257)

(274)

Net benefit expense (Note 23)

(36)

(37)

(41)

$ (20)

$ (274)

$ (6)

$ (443)

$ (768)

Share-based awards (Note 21)

(12)

(11)

(13)

Other compensations

(68)

(56)

(89)

Income-related government grants (Note 7)

Sensitivity Analysis

$ (1,332)

$ (1,331)

$ (1,464)

For the cash-generating units, which were not impaired in the reporting period and for which the reasonably possible changes could lead to impairment,

the recoverable amounts would become equal to their carrying amounts if any of the assumptions used to measure the recoverable amounts changed

Continuing operations

(1,058)

( 1,073)

( 1,213)

by the following percentages:

Discontinued operations

(274)

(258)

(251)

Discount rates

Sales prices

Sales volumes

Costs

Nikom

5.8%

(10.0)%

2.0%

The average number of staff employed under contracts of service was as follows:

EVRAZ ZSMK

5.8%

2021

2020

2019

Steel North America

Flat-rolled products

2.7%

(0.3)%

(2.9)%

0.3%

Steel

45,648

45,332

44,512

Oil Country Tubular Goods

5.6%

(2.6)%

2.7%

Steel, North America

2,777

3,199

4,295

Large diameter pipes

(5.4)%

6.5%

Coal

15,767

15,440

14,655

Other operations

848

837

927

Unallocated

2,688

2,531

2,345

67,728

67,339

66,734

7. INCOME AND EXPENSES

Continuing operations

51,961

51,977

52,168

Cost of revenues, selling and distribution costs, general and administrative expenses include the following for the years ended 31 December:

Discontinued operations

15,767

15,362

14,566

US$ million

2021

2020

2019

Continuing operations

The major components of other operating expenses were as follows:

Cost of inventories recognised as expense

$ (4,625)

$ (3,344)

$ (4,471)

US$ million

2021

2020

2019

Staff costs, including social security taxes

(1,058)

(1,073)

(1,213)

Depreciation, depletion and amortisation

(404)

(416)

(410)

Stoppage of production, including termination benefits

$ (21)

$ (23)

$ (17)

Taxes other than on income and duties

(349)

(54)

(58)

Restoration works and casualty compensations in connection with accidents

(2)

Other

(22)

(20)

(25)

Discontinued operations

Continuing operations

(45)

(43)

(42)

Cost of inventories recognised as expense

(96)

(151)

(124)

Discontinued operations

(19)

(22)

(12)

Staff costs, including social security taxes

(274)

(258)

(251)

Depreciation, depletion and amortisation

(159)

(189)

(168)

$ (64)

$ (65)

$ (54)

Taxes other than on income and duties

(22)

(19)

(35)

Operating costs incurred during production stoppages for an extended period of time, such as preparatory works for stoppage of workshops,

Total expenses

maintenance expenses relating to the idle assets, termination benefits for the dismissed employees or compensations to those who were on temporary

leave, have been classified as “stoppage of production” costs within other operating expenses.

Cost of inventories recognised as expense

$ (4,721)

$ (3,495)

$ (4,595)

Staff costs, including social security taxes

(1,332)

(1,331)

(1,464)

Depreciation, depletion and amortisation

(563)

(605)

(578)

Taxes other than on income and duties

(371)

(73)

(93)

Taxes other than on income and duties mainly include tax on property, tax on land, tax on extraction of minerals and export duties. In 2021,

an increase in the expense was connected with new duties on steel products exported outside the Eurasian Economic Union in the amount of

$275 million, which were in effect from 1 August to 31 December 2021 (Note 30). These duties were mainly recorded within the “Cost of revenue”

caption of the consolidated statement of operations ($271 million).

In 2021, 2020 and 2019, the Group recognised expense on allowance for net realisable value of $(2) million, $(2) million and $(4) million,

respectively.

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7. INCOME AND EXPENSES (CONTINUED)

8. INCOME TAXES (CONTINUED)

Interest expense consisted of the following for the years ended 31 December:

Major components of income tax expense attributable to continuing operations for the years ended 31 December were as follows:

US$ million

2021

2020

2019

US$ million

2021

2020

2019

Interest on bank and other loans

$ (51)

$ (63)

$ (60)

Current income tax expense

$ (778)

$ (500)

$ (435)

Interest on bonds and notes

Adjustment in respect of income tax of previous years

(3)

(137)

(228)

(231)

Interest on lease liabilities (Note 25)

Deferred income tax benefit/(expense) relating to origination and reversal of

(4)

(6)

(8)

(96)

132

temporary differences

Net interest expense on employee benefits obligations (Note 23)

(7)

(8)

(9)

Deferred income tax recognised directly in other comprehensive income

(2)

Discount adjustment on provisions

(9)

(8)

(9)

Income tax (expense)/benefit reported in the consolidated statement of

Other

$ (847)

$ (373)

$ (418)

(4)

(2)

(3)

operations

Continuing operations

(212)

(315)

(320)

Discontinued operations

(20)

(13)

(16)

Income tax benefit/(expense) consisted of the following:

$ (232)

$ (328)

$ (336)

US$ million

2021

2020

2019

Interest income consisted of the following for the years ended 31 December:

Current income tax expense

$ (1,007)

$ (579)

$ (532)

Continuing operations

(771)

(503)

(427)

US$ million

2021

2020

2019

Discontinued operations

(236)

(76)

(105)

Interest on bank accounts and deposits

$ 3

$ 4

$ 6

Interest on loans and accounts receivable

–

Deferred income tax benefit/(expense) recognised in profit or loss

(70)

142

(5)

Other

Continuing operations

(76)

130

Discontinued operations

(14)

Continuing operations

Discontinued operations

Income tax expense

$ (1,077)

$ (437)

$ (537)

$ 5

$ 6

$ 8

Attributable to:

Continuing operations

(847)

(373)

(418)

Gain/(loss) on financial assets and liabilities included the following for the years ended 31 December:

Discontinued operations

(230)

(64)

(119)

US$ million

2021

2020

2019

The major part of income taxes is paid in the Russian Federation. A reconciliation of income tax expense applicable to profit before income tax using

Gain/(loss) on extinguishment of debts (Notes 22, 25)

$ (10)

$ 2

$ (27)

the Russian statutory tax rate to income tax expense as reported in the Group’s consolidated financial statements for the years ended 31 December is

Gain/(loss) on derivatives not designated as hedging instruments (Note 25)

(4)

(69)

as follows:

Realised gain/(loss) on hedging instruments (Note 25)

–

(23)

US$ million

2021

2020

2019

Net gains/(losses) on cash flow hedges recycled to profit or loss (Notes 22, 25)

–

Factoring fees

(6)

(4)

Profit/(loss) before income tax from continuing operations

$ 4,371

$ 1,742

$ 1,500

Continuing operations

(20)

(71)

Profit/(loss) before income tax from discontinued operations

(187)

(447)

(598)

Discontinued operations

(1)

Profit/(loss) before income tax

$ 4,184

$ 1,295

$ 902

$ (21)

$ (71)

$ 17

At the Russian statutory income tax rate of 20%

(837)

(259)

(180)

Adjustment in respect of income tax of previous years

(4)

Current income tax benefit from investment tax credit

8. INCOME TAXES

Other tax credits recognised/(utilised)

(3)

Current tax on dividends distributed by the Group’s subsidiaries

(202)

(213)

(178)

The Group’s income was subject to tax at the following tax rates:

Change in deferred tax on undistributed earnings of the Group’s subsidiaries

(53)

(19)

Effect of non-deductible expenses and other non-temporary differences

(57)

(95)

(96)

2021

2020

2019

Unrecognised temporary differences recognition/reversal

(130)

20.00%

Effect of the difference in tax rates in countries other than the Russian

–

Russia

and 16.50%

Federation

Canada

24.63%

25.09%

26.08%

Share of profits in joint ventures and associates

Cyprus

12.50%

Income tax (expense)/benefit reported in the consolidated statement of

$ (1,077)

$ (437)

$ (537)

Czech Republic

19.00%

operations

Italy

–

27.90%

As of 31 December 2021, the Group accrued deferred income taxes of $99 million (2020: $46 million, 2019: $54 million) in respect of undistributed

Switzerland

9.08%

9.10%

9.62%

earnings of the Group’s subsidiaries. The current tax rate on intra-group dividend income varies from 0% to 15%. For those temporary differences

Ukraine

–

18.00%

associated with investments in subsidiaries, for which the Group is able to control the timing of the reversal of temporary differences and does not

United Kingdom

19.00%

intend to reverse them in the foreseeable future, deferred tax liabilities were not recognised. At 31 December 2021, the aggregate amount of such

USA

24.81%

24.57%

24.87%

temporary differences, for which deferred tax liabilities have not been recognised, amounted to $46 million (2020: $63 million, 2019: $59 million).

In 2018, EVRAZ Nizhny Tagil Metallurgical Plant completed capital construction works, which make it eligible for an investment tax credit from

In the context of the Group’s current structure, tax losses and current tax assets of the different companies may not be set off against current tax

the regional government. The income tax rate was reduced from 20% to 16.5% for a period from 2018 to 2022. The Group determined that

liabilities and taxable profits of other companies in the same jurisdiction, except for the companies registered in Cyprus, Russia, the USA and

the investment tax credit is in the scope of IAS 12 “Income taxes”. As a result, in 2021, 2020 and 2019, EVRAZ Nizhny Tagil Metallurgical Plant and

the United Kingdom where group relief and tax consolidation can be applied.

other subsidiaries included in the group of consolidated taxpayers received a current income tax benefit amounting to $61 million, $28 million and

$33 million, respectively.

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8. INCOME TAXES (CONTINUED)

As of 31 December 2021, unused tax losses carried forward approximated $9,738 million (2020: $10,503 million, 2019: $8,620 million). The Group

recognised deferred tax assets of $197 million (2020: $275 million, 2019: $234 million) in respect of unused tax losses. This includes deferred tax

Year ended 31 December 2020

assets in respect of unused tax losses in Canada which expire after 20 years if not utilised.

Change

recognised in

US$ million

2021

2020

2019

recognised in

other

Change due to

statement of

comprehensive

disposal of

Translation

Other

Canada

$ 125

$ 172

$ 156

US$ million

2019

operations

income

subsidiaries

difference

movements

2020

USA

Deferred income tax liabilities:

Switzerland

Valuation and depreciation of property,

Kazakhstan

$ 519

(57)

(60)

$ 402

plant and equipment

Russia

Valuation and amortisation of intangible

(12)

(1)

assets

$ 197

$ 275

$ 234

Other

146

(41)

(9)

708

(110)

(70)

528

Deferred tax assets of $2,160 million (2020: $2,244 million, 2019: $1,878 million) have not been recorded as it is not probable that sufficient taxable

Deferred income tax assets:

profits will be available in the foreseeable future to offset these losses. Tax losses of $8,722 million (2020: $9,071 million, 2019: $7,592 million) for

Tax losses available for offset

234

(4)

275

Accrued liabilities

129

(3)

(13)

115

which deferred tax assets were not recognised arose in companies registered in Canada, Kazakhstan, Luxembourg, Russia, the United Kingdom and

Impairment of accounts receivable

(8)

(3)

the USA. Losses of $8,677 million (2020: $8,975 million, 2019: $7,499 million) are available indefinitely for offset against future taxable profits of the

Other

130

(2)

126

companies in which the losses arose and $55 million will expire within 10 years (2020: $96 million, 2019: $93 million).

508

(22)

520

Net deferred income tax asset

152

245

Deferred income tax assets and liabilities and their movements for the years ended 31 December were as follows:

Net deferred income tax liability

$ 352

(51)

(48)

$ 253

Year ended 31 December 2021

Change

Transfer to

Change

recognised in

disposal

Year ended 31 December 2019

recognised in

other

groups held

statement of

comprehensive

for distribution

Translation

Other

Change

US$ million

2020

operations

income

to owners

difference

movements

2021

Change

recognised in

other

Change due to

Deferred income tax liabilities:

statement of

comprehensive

disposal of

Translation

Other

Valuation and depreciation of property,

US$ million

2018

operations

income

subsidiaries

difference

movements

2019

$ 402

(31)

–

(129)

(1)

–

$ 241

plant and equipment

Valuation and amortisation of intangible

Deferred income tax liabilities:

(5)

–

assets

Valuation and depreciation of property,

$ 469

(3)

(6)

$ 519

Other

–

(20)

–

161

plant and equipment

528

–

(149)

(1)

–

427

Valuation and amortisation of intangible

(9)

Deferred income tax assets:

assets

Tax losses available for offset

275

(67)

–

(16)

–

197

Other

146

Accrued liabilities

115

(20)

(28)

–

615

(6)

708

Impairment of accounts receivable

–

(1)

–

Deferred income tax assets:

Other

126

–

(19)

(4)

–

133

Tax losses available for offset

199

(7)

234

520

(21)

(20)

(64)

–

416

Accrued liabilities

(1)

129

Net deferred income tax asset

245

(35)

(20)

(8)

–

183

Impairment of accounts receivable

Other

152

(28)

130

Net deferred income tax liability

$ 253

–

(93)

(1)

–

$ 194

449

(1)

(7)

508

Net deferred income tax asset

(1)

152

Net deferred income tax liability

$ 258

$ 352

In 2019, other movements in deferred tax assets and liabilities represent adjustments in connection with the adoption of IFRS 16 “Leases” (Note 2).

218

219

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