Investor Presentaiton
En+
GROUP
BUSINESS REVIEW
INDUSTRY POSITIONING
En+ Group is a market-leading, vertically integrated low-carbon aluminium
and hydroelectric power producer.
En+ Group Annual Report 2021
With a well-established presence across five continents and a strong operational hub in
Siberia, combining the assets of both our Metals and Power segments, the Group is able
to capture commercial opportunities arising from its world-class assets and scale.
STRATEGIC REPORT
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
APPENDICES
The composition of the
Group's assets and operations,
both in terms of industries
and geographies, enables it
to achieve strategic synergies.
En+ Group's scale allows it to
actively manage the flow of
aluminium products, alumina
and other raw materials within
the Company and proactively
plan electricity production
and consumption targets.
This allows the Group to
optimise capacity utilisation
and maximise efficiency
at smelters, refineries
and generating assets.
Based on the current
management structure and
internal reporting system,
the Group has defined two
business segments:
Metals segment:
Comprising RUSAL,
including the power
assets of RUSAL
Power segment:
Mainly comprising
power assets
Metals segment
En+ Group's Metals segment, represented
by RUSAL, produced approximately
5.6% of global aluminium output in
2021, and around 6.3% of the world's
alumina. In 2021, RUSAL remained
among the largest producers of primary
aluminium and alloys globally.
RUSAL is fully self-sufficient in alumina
capacity (with potential to supply more
to third parties) and about 77% self-
sufficient in bauxites and nephelines.
RUSAL's production chain includes
bauxite and nepheline ore mines, alumina
refineries, aluminium smelters and
casting houses, foil mills, and packaging
and wheel production centres.
RUSAL has a diversified product mix with
a strong share of VAP in the portfolio
(2.03 mtpa out of 3.90 mt of total sales).
RUSAL's sales geography is represented
by a diversified portfolio of regions,
enabling it to deliver aluminium products
to the domestic market and across all
key global consuming regions (Europe,
America and South East Asia).
To achieve the Group's ambitious net
zero commitment, RUSAL is going to
upgrade all of its production facilities,
and introduce innovative technologies
throughout the production chain. This
involves the projects on conversion to
pre-baked anode technology. Converting
half of the capacity at Krasnoyarsk,
Bratsk, Irkutsk, and Novokuznetsk
smelters to pre-baked anode technology
is planned for the period between
2025 and 2030. Once implemented,
the programme will also help massively
reduce the smelters' emissions of
fluorides and resinous substances,
including benzo(a) pyrene. This will also
reduce energy consumption by 11-18%.
RUSAL is actively developing a
groundbreaking inert anode technology.
This technology will allow the significant
reduction of GHG emissions from
primary aluminium production. Only
a few Scope 3 emissions will remain
related to indirect emissions from
the production of raw materials used
for the making of inert anodes.
The efficient smelting technologies
together with low-cost input material
and utilities mix secure the Company's
global leadership on the cost curve.
Top aluminium producers
globally (mt)
Chinalco
RUSAL
Xinfra
Rio Tinto
3.8
Power segment
En+ Group's Power segment is the largest
independent power producer in Russia
by installed capacity and the largest
independent hydropower generator globally.
Russia has a well-developed power sector,
which is essential for the country's high-
energy-consuming economy. The total
installed capacity of the Unified Energy
System of Russia was 246.6 GW in 2021, with
total electricity production of 1,114.55 TWh.
The Russian electricity market is dominated
Power companies by installed
hydro capacity globally, 2021 (GW)1
36.7
31.1
27.8
by thermal assets, which represent 66% of the total installed
capacity in Russia, while the Siberian region's capacity is
roughly equally split between hydro (48.5%) and thermal
(50.9%), with a minor share of solar (0.7%). The Group's
power generation assets are located in the Eastern Siberia
and Volga Regions, and the Company is engaged in all of
the major areas of the power industry in Russia: electricity
and heat generation; electricity, capacity and heat sales; heat
distribution; retail energy trading and supply; engineering
services; and electricity distribution and transmission.
Hydropower generation is a key area of the Power
segment's business, with the majority of its assets located
in Siberia. In 2021, En+ Group remained the largest
producer in Siberia, with a 36% share of installed capacity.
Furthermore, 78% of its total capacity is represented
by hydropower assets, and it enjoys utilisation priority
over the regulatory range of thermal power plants.
Coal prices are the main driver of day-ahead market prices
since CHPs are the marginal producers. The output of
HPPS, driven by weather conditions, is also relevant, as it
affects the production volumes required from CHPS.
The Group's key priority in its Power segment is to provide
a low-carbon hydropower supply to further reduce our
overall carbon footprint and to achieve carbon neutrality
by 2050. As part of this, the Group is planning to construct
new power stations such as Nizhneboguchany HPP and
Telmamskaya HPP for third-party sales. En+ is also continuing
its New Energy programme for HPPS modernisation, as
well as the modernisation programme for its CHPs.
Eletrobras 91% State
6.7
46.2
Hongqiao Group
China Yangtze Power | 100% | State²
5.7
45.5
HydroQuebec | 99% | State
RusHydro 82% | State
3.6
Enel 33% State
3.2
Emirates Global Alumnium
EDF 18% State
2.5
22.5
SPIC
SDIC Power | 54% | State
by installed capacity, 2021 (GW)4
2.4
16.8
Norsk Hydro
En+ Group (Power segment) | 78% | Private
2.2
15.1
En+ Group5 3.8
15.0
Iberdrola | 24% | Private
Verbund 95% | State
2.2
8.3
RusHydro
EDP 30% State³
7.1
InterRAO
Engie Brasil | 78% | State
Vedanta
Alcoa
2.2
Competitive landscape in Siberia
14.1
SGK
6.4
BEMO HPP6
18.8
12.3
7.2
3.9
3.0
28
Based on the Company's internal data and peer companies' publicly available results, announcements,
reports and other information.
Company | Hydro share | Ownership
Thermal
Hydro
Subsidiary of China Three Gorges Corporation.
3 State owned China Three Gorges Corporation owns 20.22% stake.
4 Based on the Company's internal data and peer companies' publicly available results, announcements, reports and other information.
Based on latest filings.
5
6.
The Company's assets capacity provided for Siberia only. The Company's total capacity is 19.4 GW, including 15.1 GW in hydropower.
BEMO (Boguchany HPP) is a 50:50 JV between UC RUSAL and RusHydro. It is operated by RusHydro.
29View entire presentation