Acting Chairman
of the Board of Directors
of NAC Kazatomprom JSC
Neil Longfellow

Dear Shareholders!

2019 was one of the most important years for Kazatomprom and was characterised by a number of landmark events. The Company’s new corporate strategy, leading to its initial public offering on both the Astana International Exchange and the London Stock Exchange in 2018, followed by the secondary public offering in 2019; another strong year of sales with a widely expanded customer, product and geographic base; an increased focus on corporate social responsibility and enhanced corporate governance were just some of the highlights.

In 2019 Kazatomprom’s majority shareholder, SamrukKazyna, completed a secondary placement with the sale of an additional USD 128.2 million of equity on the Astana and London exchanges, thereby further diversifying and expanding the Company’s investor base; now around two-thirds of global depositary receipts issued under the secondary public offering were acquired by international investors, with the remainder acquired by Kazakh investors. This reflects growing public confidence in the Company’s future prospects.

In 2019 Kazatomprom held a Capital Markets Day at the London Stock Exchange, its first such event since its IPO. In 2019 the Company also conducted its first Annual General Meeting of Shareholders, during which shareholders approved dividend distributions and payments; a total of KZT 80 billion in dividends was paid based on 2018 results.

2019 saw further changes within the Kazatomprom corporate governance practice: the composition and size of Board committees were expanded to ensure a comprehensive analysis of issues at committee level, and the major shareholder took on greater involvement in the workings of Board committees.

I want to take this opportunity to recognise the significant contribution made by Jon Dudas to the Kazatomprom Board in recent years. Jon, who joined the Board of Kazatomprom in 2015 and became Board Chairman in 2018, stood down in December 2019 to take up the role of Board Chairman of Samruk-Kazyna, Kazatomprom’s majority shareholder. On behalf of the Board I would like to thank Jon for his valuable work and efforts, and wish him all the best for the future.

On behalf of the Board of Directors I would also like to thank our Management Board and employees for their dedication and hard work, which made the strong results achieved in 2019 possible.

2019 saw the completion of the United Nations’ IAEA LEU Bank, with Kazatomprom’s delivery in December 2019 of the second and final shipment of low-enriched uranium to the IAEA LEU Bank. The IAEA LEU Bank, the only one of its kind in the world, is located in Kazakhstan at Kazatomprom’s Ulba Metallurgical Facility, and is a testament to the high level of confidence that the international community has in Kazatomprom’s extensive experience in nuclear materials management, as well as Kazakhstan’s contribution to promoting a peaceful nuclear non-proliferation initiative.

Our marketing business continues to drive commercial value by strengthening its sales and marketing capabilities, attracting new customers, selling to over 20 customers in 11 countries, including six new customers and two new geographies in 2019, as well as expanding into new fuel cycle products, including its first sales of UF6 and low-enriched uranium.

Kazatomprom remains committed to global best practices in sustainable development, and we make significant investments in continuously enhancing the sustainability of our operations. Our focus remains on ensuring the health and safety of our people. In 2019 we improved our LTIFR performance, with a 22.6% reduction compared with 2018. Unfortunately, despite improvement in our health and safety performance, the Board is deeply saddened to report that one fatality took place in 2019. We remain committed to achieving a goal of zero workrelated fatalities and injuries across our operations, and will continue to focus our efforts on eliminating fatality and injury incidents in our business and advancing our protection, anti-corruption, and better labour practices.

The Company’s 2019 results were in line with our strategy implementation and development priorities. Kazatomprom will continue to focus on delivering on our strategy in 2020 and on maximising value for all our stakeholders, by continuing to pursue a market-centric approach to production, implementing industry best practices, and improving corporate governance. In light of the significant and unprecedented challenge that we, and indeed all industries and countries around the world are facing in the wake of the global COVID-19 pandemic, a key consideration in the execution of that strategy in 2020 is the health and wellbeing of our people, their families, and local communities impacted by our operations.

Kazatomprom will continue to focus on delivering on our strategy in 2020 and on maximising value for all our stakeholders, by continuing to pursue a market-centric approach to production, implementing industry best practices, and improving corporate governance.

We believe Kazatomprom will maintain its leading position in the global uranium market while navigating the challenging micro and macro economic environments, thus enabling the Company to continue to deliver value and contribute to a low-carbon energy future.