Investor Presentaiton slide image

Investor Presentaiton

En+ GROUP FINANCIAL REVIEW Cost of sales The following table sets forth components of the Power segment's cost of sales (before intersegmental elimination) for the years indicated: In 2021, the Power segment's adjusted EBITDA (before intersegmental elimination) increased by USD 179 million, or 18.0%, to USD 1,172 million, from USD 993 million in 2020. The growth was driven by an increase in electricity generation volumes and increase in average electricity spot prices and capacity prices. As Power operations account for a sizeable portion of the revenues attributable to the Power segment, and are, therefore, a predominant contributor to the adjusted EBITDA of the segment. The low-cost operation of HPPS positively affects the overall adjusted EBITDA of the Power segment. The proportion of HPPs' contribution to the adjusted EBITDA of the Power segment in particular was 91.8% in 2021 and 92.1% in 2020. The following table sets forth a reconciliation of the Power segment's adjusted EBITDA to the Power segment's results from operating activities for the periods indicated: NET ASSETS Year ended 31 December (USD mn) Electricity and capacity Personnel expenses 2021 427 354 2020 361 319 Depreciation and amortisation 216 206 Cost of raw materials and fuel 257 227 Aluminium 182 117 Electricity transmission costs 160 141 Other 225 211 Total cost of sales 1,821 1,582 En+ Group Annual Report 2021 STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS (USD mn) Year ended 31 December 2021 2020 GROUP Non-current assets Current assets 17,090 8,967 16,062 6,599 Non-current liabilities Current liabilities Net assets (9,897) (12,021) (5,849) (4,575) 10,311 6,065 Net working capital Net working capital is defined as inventories plus short-term trade and other receivables (excluding dividend receivables), less trade and other payables. The following table sets forth the calculation of the net working capital of the Group, Power segment and Metals segment as at the dates indicated: RUSAL Non-current assets 12,470 Current assets 8,436 11,501 5,877 Non-current (USD mn) GROUP As at 31 December 2021 2020 liabilities (5,790) (8,044) Inventories 3,731 2,339 Current liabilities (4,592) (2,791) Shortterm trade and Net assets 10,524 6,543 other receivables 2,655 1,431 POWER SEGMENT Dividends receivable (827) Non-current assets Current assets 9,725 824 9,667 903 Trade and other payables (2,806) Net working capital 2,753 (2,156) 1,614 Non-current liabilities Current liabilities Net assets (4,121) (3,981) (1,461) (1,955) 4,967 4,634 METALS SEGMENT Inventories 3,692 2,292 Shortterm trade and other receivables 2,473 1,163 Dividends receivable (827) USD 4,246 mn to USD 10,311 mn as at 31 December 2021, from USD 6,065 mn as at 31 December 2020 In 2021, Metals segment's net assets increased by USD 3,981 million, or by 60.8%, to USD 10,524 million as at 31 December 2021, from USD 6,543 million as at 31 December 2020. This was mainly caused by an increase in total assets, driven primarily by the increase in property, plant and equipment, inventories, trade and other receivables (including dividends receivable) and advances paid. In 2021, the Power segment's net assets as at 31 December 2021 increased by USD 333 million, or by 7.2%, to USD 4,967 million, from USD 4,634 million as at 31 December 2021 mainly due to current liabilities decrease, driven by loans scheduled repayments (net repayment - USD 431 million). As at 31 December 2021, the Group's net working capital amounted to USD 2,753 million, compared to USD 1,614 million as at 31 December 2020. In 2021, net working capital increased by 71% compared to 2020 due to an increase of inventories (accumulation of inventories for future repairs, increase of cost due to increase of mineral extraction tax and implementation of temporary export duties), which was partly offset by increase in account payables (export duties, investment and repair works, purchases of equipment and materials). Trade and other payables Net working capital POWER SEGMENT Inventories (2,408) 2,930 (1,836) 1,619 158 113 Shortterm trade and other receivables 306 333 Trade and other payables (602) (491) Net working capital (138) (45) (USD mn) Year ended 31 December 2021 2020 RECONCILIATION OF ADJUSTED EBITDA Results from operating activities 889 731 ADD: Amortisation and depreciation 229 214 Gain on disposal of property, plant and equipment (4) (1) Impairment of non-current assets 58 49 In 2021, the Group's net assets increased by Adjusted EBITDA 1,172 993 The Power segment's cost of sales increased by USD 239 million, or by 15.1%, to USD 1,821 million for the year ended 31 December 2021, as compared to USD 1,582 million for the year ended 31 December 2020. Power segment's cost increased following gradual raise of salaries for employees throughout 2021, inflationary growth in raw materials purchase prices, as well as significant hike in aluminium purhcase prices, increase in raw materials purchase price due to inflationary pressure and increase of aluminium purchase prices as a result of LME aluminium prices growth to an average of USD 2,475 per tonne in 2021 from USD 1,702 per tonne in 2020. Adjusted EBITDA and adjusted EBITDA margin The following table sets forth the Power segment's adjusted EBITDA and adjusted EBITDA margin for the years indicated: (USD mn) Adjusted EBITDA (HPP's) Year ended 31 December 2021 2020 1076 914 Adjusted EBITDA (CHP's) 38 30 Adjusted EBITDA (Coal) 31 30 Adjusted EBITDA (Other and unallocated) 27 19 Adjusted EBITDA (Power segment) 1,172 993 Adjusted EBITDA margin (Power segment) 37.3% 36.8% Adjusted EBITDA margin (HPP's) 86.4% 84.8% Adjusted EBITDA margin (CHP's) 5.2% 4.4% Adjusted EBITDA margin (Coal) 13.1% 12.8% 54 APPENDICES 55
View entire presentation