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Investor Presentaiton

En+ GROUP FINANCIAL STATEMENTS EN+ GROUP IPJSC Notes to the Consolidated Financial Statements for the year ended 31 December 2021 En+ Group Annual Report 2021 EN+ GROUP IPJSC Notes to the Consolidated Financial Statements for the year ended 31 December 2021 (b) Disclosure USD million Cost Balance at 1 January 2020 Goodwill Other intangible assets Total 2,686 Additions 33 645 27 3,331 60 Disposals (48) (48) Foreign currency translation (234) (19) (253) Balance at 31 December 2020 2,485 605 3,090 Additions 14 40 54 Disposals (3) (3) Foreign currency translation (8) 3 (5) Balance at 31 December 2021 2,491 645 3,136 Amortisation and impairment losses Balance at 1 January 2020 (450) (505) (955) Amortisation charge (10) Disposals 48 (10) 48 Foreign currency translation 8 8 METALS The aluminium segment represents the lowest level within UC RUSAL at which goodwill is monitored for internal management purposes. The recoverable amount represents value in use as determined by discounting the future cash flows generated from the continuing use of the plants within UC RUSAL's aluminium segment. Similar considerations to those described above in respect of assessing the recoverable amount of property, plant and equipment apply to goodwill. At 31 December 2021, management analysed changes in the economic environment and developments in the aluminium industry and the Group's operations since 31 December 2020 and performed an impairment test for goodwill at 31 December 2021 using the following assumptions to determine the recoverable amount of the segment: . Total production was estimated based on average sustainable production levels of 3.8 million metric tonnes of primary aluminium, of 8.4 million metric tonnes of alumina and of 16.7 million metric tonnes of bauxite. Bauxite and alumina will be used primarily internally for production of primary aluminium; The aluminium and alumina prices were based on the long-term aluminium and alumina price outlook derived from available industry and market sources and were as follows: Balance at 31 December 2020 (450) (459) (909) 2022 2023 2024 2025 2026 Amortisation charge (11) (11) Impairment (14) (14) Foreign currency translation (3) (3) Aluminium sales prices, based on the long-term aluminium price outlook, USD per tonne Alumina sales prices, based on the long-term 2,623 2,476 2,371 2,375 2,411 Balance at 31 December 2021 (450) (487) (937) alumina price outlook, USD per tonne Nominal foreign currency exchange rates, 345 319 316 320 352 RUB per 1 USD 72.2 74.7 76.8 79.2 80.7 Net book value Inflation in RUB 6.6% 4.5% 3.6% 4.2% 3.3% At 1 January 2020 At 31 December 2020 At 31 December 2021 2,236 140 2,376 2,035 146 2,181 2,041 158 2,199 Inflation in USD 4.0% 2.1% 2.1% 2.0% 2.1% STRATEGIC REPORT CORPORATE GOVERNANCE (c) (d) Goodwill additions for the years ended 31 December 2021 and 31 December 2020 relate to acquisition of certain companies engaged in production and infrastructure areas and was determined as the difference between the consideration paid and the fair value of acquired assets and liabilities. Amortisation charge The amortisation charge is included in cost of sales and administrative expenses in consolidated statement of profit or loss and other comprehensive income. Impairment testing of goodwill and other intangible assets For the purposes of impairment testing, goodwill is allocated to the following CGUs. These units represent the lowest level within the Group at which the goodwill is monitored for internal management purposes. The aggregate carrying amounts of goodwill allocated to each business, and the related impairment losses recognised, are as follows: Operating costs were projected based on the historical performance adjusted for inflation; Nominal foreign currency exchange rates applied to convert operating costs of the Group denominated in RUB into USD and inflation in RUB and USD assumed in determining recoverable amounts were as above; The pre-tax discount rate was estimated in nominal terms based on the weighted average cost of capital basis and was 11.5%; A terminal value was derived following the forecast period assuming a 2.0% annual growth rate. Values assigned to key assumptions and estimates used to measure the units' recoverable amount were based on external sources of information and historical data. Management believes that the values assigned to the key assumptions and estimates represented the most realistic assessment of future trends. The results were particularly sensitive to the following key assumptions: . • A 5% reduction in the projected aluminium and alumina price levels would result in a decrease in the recoverable amount by 18% but would not lead to an impairment; A 5% increase in the projected level of electricity and alumina costs in the aluminium production would have resulted in a 6% decrease in the recoverable amount but would not lead to an impairment; 176 USD million UC RUSAL Angara HPPs (Irkutskenergo) Strikeforce Mining and Resources Limited Allocated goodwill Accumulated impairment loss Allocated goodwill Accumulated impairment loss 2021 2021 2020 2020 2,269 (449) 2,273 (449) 221 211 1 (1) 1 (1) 2,491 (450) 2,485 (450) • A 1% increase in the discount rate would have resulted in a 9% decrease in the recoverable amount but would not lead to an impairment. Based on results of impairment testing of goodwill, management concluded that no impairment should be recorded in the consolidated financial statements as at 31 December 2021. FINANCIAL STATEMENTS Appendices 177
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