Investor Presentaiton
En+
GROUP
En+ Group Annual Report 2021
STRATEGIC REPORT
CORPORATE GOVERNANCE
FINANCIAL REVIEW
Cost of sales
The following table sets forth components of Metals
segment's cost of sales (before intersegmental
elimination) for the years indicated:
(USD mn)
Cost of alumina
Year ended 31 December
2021
741
506
2020
608
447
Adjusted EBITDA and adjusted
EBITDA margin
In 2021, Metals segment's adjusted EBITDA
(before intersegmental elimination) increased by
USD 2,022 million, or 232.1%, to USD 2,893 million from
USD 871 million in 2021. The factors that contributed
to the increase in adjusted EBITDA margin were the
same ones that influenced the operating results.
The following table sets forth a reconciliation of
Metals segment's adjusted EBITDA to its results from
operating activities for the periods indicated:
Cost of bauxite
Cost of other raw materials
and other costs.
3,387
2,298
Purchases of primary
aluminium from joint ventures
696
465
Energy costs
2,070
1,868
(USD mn)
Year ended 31 December
2021
2020
Depreciation and amortisation
572
542
RECONCILIATION OF ADJUSTED EBITDA
Personnel expenses
618
512
Results from operating
activities
Repair and maintenance
407
381
Add:
Net change in provisions for
inventories
28
(2)
Amortisation and depreciation
596
570
Change in finished goods
(752)
(7)
Loss on disposal of property,
Total cost of sales
8,273
7,112
plant and equipment
9
13
Impairment of noncurrent
assets
Adjusted EBITDA
209
2,893
9
871
2,079
279
POWER
SEGMENT
In 2021 and 2020, the
Power segment accounted
for 20.7% and 23.9% of
the business segments'
revenues (before
adjustments), respectively.
As at 31 December 2021
and 31 December 2020,
the assets of the Power
segment accounted for
33.5% and 37.8% of the
Group's total assets (before
adjustments), respectively
Selected financial data
The following table sets forth
selected data of the Power segment
(before intersegmental elimination)
for the periods indicated:
(USD mn)
Revenues
Revenues
The following table sets forth
components of the Power segment's
sales data (before intersegmental
elimination) for the years indicated:
Year ended
Gross profit
Gross profit margin
Results from
Year ended
31 December
2021 2020
3,138 2,697
1,317
1,115
42.0% 41.3%
31 December
Average rate RUB/USD
SALES OF ELECTRICITY
Revenue, USD mn
Sales volumes, TWh
2021
73.65 72.15
2020
1,453
108.4
1,262
97.8
operating activities
(EBIT)
Average sales price
889
731
(RUB/MWh)
988
931
Operating profit
SALES OF CAPACITY
margin
28.3%
27.1%
Revenue, USD mn
500
434
Pre-tax profit
566
409
Sales volumes, GW/year
172.8 178.5
Profit for the period
374
257
Average sales price
Net profit margin
11.9%
9.5%
('000 RUB/MW)
213
175
Adjusted EBITDA
1,172
993
SALES OF HEAT
Adjusted EBITDA
margin
Revenue, USD mn
417
393
37.3%
36.8%
Sales volumes, mn Gcal
24.5 23.4
Average sales price
(RUB/Gcal)
1,257
1,209
Sales of semifinished
products, USD mn
Other revenues, USD mn
Total, USD mn
268
180
500
428
3,138 2,697
Metals segment's cost of sales increased by
USD 1,161 million, or by 16.3%, to USD 8,273 million for
the year ended 31 December 2021, as compared to
USD 7,112 million for the year ended 31 December 2020.
The cost of alumina increased by USD 133 million, or
by 21.9%, to USD 741 million in 2021 as compared to
USD 608 million in 2020 primarily due to the increase
in alumina purchase price between the periods.
The cost of bauxite increased by USD 59 million,
or by 13.2%, to USD 506 million in 2021 as
compared to USD 447 million in 2020.
The cost of raw materials (other than alumina and
bauxite) and other costs increased by 47.4% for the year
ended 31 December 2021 compared to the same period of
2020, due to an increase in raw materials purchase price.
Energy costs increased by USD 202 million, or by 10.8%,
to USD 2,070 million for the year ended 31 December
2021, as compared to USD 1,868 million for the year
ended 31 December 2020 due to increase in the average
electricity tariff between the comparable periods.
The finished goods mainly consist of primary
aluminium and alloys (c.95%). The dynamic of
change between the reporting periods was driven
by the fluctuations of primary aluminium and alloys
physical inventory between the reporting dates:
96.9% increase in 2021 and 2.6% increase in 2020.
The following table sets forth a reconciliation of
Metals segment's adjusted net profit and recurring
net profit to its net profit for the periods indicated:
(USD mn)
Year ended 31 December
2021
2020
RECONCILIATION OF ADJUSTED NET PROFIT
Net profit for the period
Adjusted for:
3,225
759
Share of profits and other
gains and losses attributable
to Norilsk Nickel, net of tax
effect
Change in derivative financial
instruments, net of tax (20%)
Gain from partial disposal of
investment in associate
Impairment of noncurrent
assets, net of tax
(1,762)
(930)
356
222
(492)
209
9
1,536
60
Adjusted net profit
Add back:
Share of profits of Norilsk
Nickel, net of tax
1,762
930
Recurring net profit
3,298
990
52
Adjusted net (loss)/profit for any period is defined as
the net (loss)/profit adjusted for the net effect of the
Company's investment in Norilsk Nickel, the net effect
of derivative financial instruments and the net effect of
non-current assets impairment. Recurring net profit for
any period is defined as adjusted net (loss)/profit plus the
Company's net effective share in Norilsk Nickel results.
FINANCIAL STATEMENTS
APPENDICES
The Power segment's revenue
increased by USD 441 million, or 16.4%,
to USD 3,138 million in 2021 from
USD 2,697 million in 2020, mainly
reflecting increase in average electricity
generation volumes by 10.0%.
Revenue from electricity sales increased
by 15.1% y-o-y to USD 1,453 million in
2021. The increase was driven mainly
by 10.8% growth in electricity sales
volumes and higher electricity sales
prices compared to 2020. In 2021, the
average electricity spot price on the day-
ahead market in the second price zone,
increased 7.1% y-o-y to 934 RUB/MWh.
Capacity sales increased by 15.2% y-o-y
to USD 500 million in 2021. The increase
was mainly driven by higher capacity
sales prices compared to 2020.
Heat sales increased by 6.1% y-o-y to
USD 417 million in 2021 reflecting growth
in heat prices and sales volumes.
The Power segment's electricity
generation increased from 82.2 TWh in
2020 to 90.4 TWh in 2021. In 2020, HPPS
generated 69.3 TWh of electricity, or
84.3% of the total electricity generated
by the Power segment, while in 2021 they
generated 77.7 TWh of electricity, or
86.0% of the total electricity generated
by the Power segment. The increase
in HPP generation can be primarily
explained by increased water reserves.
53View entire presentation