Investor Presentaiton
En+
GROUP
FINANCIAL REVIEW
En+ Group Annual Report 2021
STRATEGIC REPORT
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
APPENDICES
Finance income and costs
The Group's finance income primarily
consists of interest income and net
foreign exchange gain. The Group's
finance costs primarily consist of interest
expense on interestbearing liabilities
and net foreign exchange loss.
(USD mn)
87
160
Year ended
31 December
2021
2020
FINANCE INCOME
Net foreign
exchange gain
98
Interest income
65
61
Dividend income
22
1
Total finance
income
Finance costs
Interest expense
(709)
(788)
Net foreign
exchange loss
(33)
Change in
fair value of
derivative financial
instruments
(352)
(226)
Revaluation of
financial assets
(47)
Other finance costs
Total finance costs
(1,141)
(1,016)
The Group's finance income for
2021 decreased by USD 73 million,
or 45.6%, to USD 87 million from
USD 160 million in 2020, mainly a result
of foreign exchange gain in 2020.
The Group's finance costs for 2021
increased by USD 125 million, or 12.3%,
from USD 1,016 million in 2020 to
USD 1,141 million in 2021 as a result of
change in fair value of derivative financial
instruments (USD 352 million in 2021
compared to USD 226 million in 2020) due
to strong appreciation in prices for the
metal hedged, and foreign exchange loss.
Profit before taxation
For the reasons inscribed above, the
Group recorded a profit before taxation
of USD 4,138 million in 2021 as compared
to USD 1,125 million in 2020. In 2021,
the Power segment generated a profit
before taxation of USD 566 million
compared to USD 409 million in 2020. In
2021, Metals segment generated a profit
before taxation of USD 3,641 million as
compared to USD 716 million in 2020.
Income tax expense
The Group's income tax expense for
2021 increased by USD 495 million to
USD 604 million from USD 109 million in
2020, as a result of the rise profit before
taxation in 2021 as compared to 2020.
Profit for the year
For the reasons inscribed above, the
Group's profit for the year ended
31 December 2021 was USD 3,534 million,
as compared to profit for the year ended
31 December 2020 of USD 1,016 million.
METALS
SEGMENT
In 2021 and 2020, Metals
segment accounted
for 79.3% and 76.1% of
the business segments'
revenues (before
adjustments), respectively.
As at 31 December 2021
and 31 December 2020,
the assets of the Metals
segment accounted for
66.5% and 62.2% of the
Group's total assets (before
adjustments), respectively
Selected financial data
The following table sets forth
selected data of Metals segment
(before intersegmental elimination)
for the periods indicated:
(USD mn)
Revenues
Year ended
31 December
2021
2020
11,994
8,566
Gross profit
3,721
1,454
Gross profit margin
31.0%
17.0%
Pre-tax profit
3,641
Profit for the period
3,225
Net profit margin
26.9%
Adjusted EBITDA
2,893
716
759
8.9%
871
Adjusted EBITDA
margin
24.1%
10.2%
Adjusted net profit
1,536
60
Recurring net profit²
3,298
990
Recurring net profit
margin³
27.5%
11.6%
Revenues
The following table sets forth
components of Metals segment's
sales data (before intersegmental
elimination) for the years indicated:
2020
Year ended
31 December
2021
SALES OF PRIMARY ALUMINIUM
AND ALLOYS
Revenue, USD mn
9,966
Sales volumes, kt
3,904
7,088
3,926
Average sales price
(USD/t)
2,553
1,805
SALES OF ALUMINA
Revenue, USD mn
610
Sales volumes, kt
1,677
533
1,729
Average sales price
(USD/t)
364
308
Sales of foil and other
aluminium products,
USD mn
515
381
Other revenue, USD mn
Total, USD mn
903
564
11,994
8,566
Metals segment's revenue increased
in 2021 by USD 3,428 million, or by
40.0%, to USD 11,994 million from
USD 8,566 million in 2020.
Revenue from sales of primary aluminium
and alloys increased by USD 2,878 million,
or by 40.6%, to USD 9,966 million in
2021, as compared to USD 7,088 million
in 2020, primarily due to a 41.4% increase
in the weighted-average realised
aluminium price per tonne (to an average
of USD 2,553 per tonne in 2021 from
USD 1,805 per tonne in 2020) driven
by an increase in the LME aluminium
price (to an average of USD 2,475 per
tonne in 2021 from USD 1,702 per tonne
in 2020), while sales volumes remained
almost flat in the compared periods.
Revenue from sales of alumina increased
by 14.4% to USD 610 million for the
year ended 31 December 2021 from
USD 533 million for the year ended
31 December 2020, due to an increase in
the average sales price by 18.2%, together
with a decrease in sales volumes of 3.0%.
Revenue from sales of foil and other
aluminium products increased by
USD 134 million, or by 35.2%, to
USD 515 million in 2021, as compared
to USD 381 million in 2020 due to
an increase in revenue from sales of
aluminium wheels by 58.6% together
with an increase in sales of foil by 28.3%
between the comparable periods.
Revenue from other sales, including
sales of other products, bauxite and
energy services increased by 60.1% to
USD 903 million for the year ended
31 December 2021 as compared to
USD 564 million for the previous year,
due to a 54.3% increase in sales of other
materials that was a result both by the
increase in sales volumes along with
the increase in average sales price.
50
Adjusted net (loss)/profit for any period represents net (loss)/profit for the relevant period adjusted
for the net effect from the share in the results of Norilsk Nickel, the net effect of embedded derivative
financial instruments and the net effect of noncurrent assets impairment.
Recurring net profit represents adjusted net (loss)/profit for the relevant period plus RUSAL's effective
share of Norilsk Nickel's profits, net of tax.
Recurring net profit margin represents recurring net profit for the relevant period divided by total
revenues and expressed as a percentage for the relevant period attributable to Metals segment.
51View entire presentation