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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. 29
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