Investor Presentation NOVEMBER 2019
Disclaimer THIS DOCUMENT AND ITS CONTENTS ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. This presentation may contain “forward -looking statements”, which are statements related to the future business and financial performance and future events or developments involving the En+ Group. Such forward-looking statements are based on the current expectations and certain assumptions of the En+ Group’s management, and, therefore, should be evaluated with consideration taken into of risks and uncertainties inherent in the En+ Group’s business. A variety of factors, many of which are beyond the En+ Group’s control, can materially affect the actual results, which may differ from the forward-looking statements. This presentation includes information presented in accordance with IFRS, as well as certain information that is not presented in accordance with the relevant accounting principles and/or that has not been the subject of an audit. En+ Group does not make any assurance, expressed or implied, as to the accuracy or completeness of any information set forth herein. Past results may not be indicative of future performance, and accordingly En+ Group undertakes no guarantees that its future operations will be consistent with the information included in the presentation. En+ Group accepts no liability whatsoever for any expenses or loss connected with the use of the presentation. Please note that due to rounding, the numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. Information contained in the presentation is valid only as at the stated date on the cover page. En+ Group undertakes no obligation to update or revise the information or any forward-looking statements in the presentation to reflect any changes after such date. This presentation is for information purposes only. This presentation does not constitute an offer or sale of securities in any jurisdiction or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities of the En+ Group. If this presentation is provided to you in electronic form, although reasonable care was used to prepare and maintain the electronic version of the presentation, En+ Group accepts no liability for any loss or damage connected to the electronic storage or transfer of information. 2
Presentation Plan 5 37 54 15 28 Investment Sustainable Power segment En+ Group Metals segment highlights business overview development • En+ at a Glance • Investment • Sustainability • The Power Market • Global operational Fundamentals Performance Overview assets footprint • Business Model • Global Leader in • Focus on • Worldwide • The Group’s • High degree of Hydro Power and Sustainable Presence with Leading Position vertical integration Aluminium Development Core Assets in • The Entire Power • Investment in the • Vertically • Baikal Lake Siberia Sector Value Chain best Non-ferrous Integrated Green • Financial • Rusal low CO2 Miner Globally Business Model Highlights aluminium • Siberian Power • Industry Leading position • Production and Market • Operational Sector Margins sales volumes Highlights • Production and • Capital Allocation • EBITDA Analysis sales volumes • Enhanced Corporate • EBITDA Analysis • Capex and Debt Governance overview • Capex and Debt • En+ Strategic • Aluminium Market overview Outlook Overview 3
5 37 54 15 28 Investment Sustainable Power segment En+ Group Metals segment highlights business overview development 4
En+ at a Glance En+ is a global leader in aluminium production and renewable energy with a well-established presence across five continents, a strong operational hub in Siberia and c. 98 ths employees En+ share in the world’s aluminium En+ share in the total generation 6.2 % No 1 output, 2018 of Siberia, 2018 of the world’s aluminium 5.8% alumina producer 34.7% production excluding China Global Total electricity aluminium generation in production: Siberia: 58.3 1 TWh 19.6 GW 64 mt 205.3 TWh low-carbon total installed hydro power electricity 65.3% 94.2% generation capacity 2 16 combined 12 aluminium 9 alumina 7 bauxite 5 hydro power 1 solar power heat and power smelters refineries mines plants plant plants • Total capacity: • Total capacity: • Total capacity: • Installed power • Installed power • Installed power 10.4 mtpa 3 3.9 mtpa 20.6 mtpa capacity: capacity: capacity: 15.1 GW 2 4.5 GW 5.2 MW • Production level • Production level • Production level in 2018: in 2018: in 2018: • Production level • Production level • Production level in 2018 1 : 3.8 mt 7.8 mt 13.8 mt in 2018: in 2018: 58.3 TWh 14.9 TWh 6 mn kWh (1) Excluding Onda HPP with installed power capacity 0.08 GW and production level of 0.4 TWh in 2018 (located in European part of Russia, leased to UC RUSAL). (2) Including Onda HPP (3) Rusal attributable capacity 5 Sustainable business Investment highlights Power segment En+ Group overview Metals segment development
Business Model OUR RAW MATERIALS REFINING PROCESSING SALES & CREATING RESOURCES MARKETING GLOBAL VALUE & INPUTS Low-carbon En+ Group’s long position in aluminium Bauxites and nephelines are key raw materials for alumina alumina capacity helps secure Slide 35 ample supply for the prospective production. expansion of our aluminium In 2018, the Group was production capacity and allows Renewable energy approximately 70% self-sufficient us to take advantage of in bauxites and nephelines. ASSETS Slides 16 and 47 favourable market conditions through third-party alumina 3.9 mt sales. Al capacity Income and shareholder value 19.6 GW Alumina 7.8 mt 13.8 mt Bauxite Total sales in 2018 Slide 22 Electricity capacity production in production . 2018 in 2018 3,671 kt 15.1 GW Social value Primary aluminium Hydro Slide 33 capacity and value added VAP sales in 2018 4.3 mt 1,664 kt products Reducing the carbon Nepheline production footprint of the global in 2018 Key products: RAW aluminium industry MATERIALS – Primary aluminium Slides 31 and 35 – ALLOW (certified low-carbon 20.6 mtpa aluminium) 58.3 TWh Water Hydro Strategic asset – Billets Bauxite production of electricity power – Slabs expansion On the energy side of the capacity production 3.8 mt generation – Wire ord business the Group uses Slide 65 in 2018 – Ingots water for hydro power production in 10.4 mtpa generation and coal for – Foil 2018 Hydro power generation thermal generation. The – Powder Electricity Trading allows using low-carbon Alumina production Group is fully self-sufficient in capacity energy to power alumina coal resources. and retail Strategic processing. investment in – Ability to capture additional Nornickel margin PEOPLE – Direct access to (27.8%) с. 98,000 Electricity consumers Thermal power Holding in Nornickel allows transmission and Employees 16.2 mt for significant diversification generation 18.6 TWh distribution Coal of earnings as well as production – Efficient management of broadening of the Group’s in 2018 sales in 2018 investment resources strategic opprotunities. 14.9 TWh 27.9 mm – Seamless connection to the grid of new capacities Gcal of electricity USD 11.4 bn of heat production production in 2018 Investment market in 2018 value at 30.09.2019 6 Sustainable business Investment highlights Power segment En+ Group overview Metals segment development
Worldwide Presence with Core Assets in Siberia Revenue split by region, 2018 1 Others Ireland Sweden 14.4% Russia CIS Asia Ksnoyarsk 35.8% Moscow 9.4% Total revenue Irkutsk USD 12.4 bn USA Europe Ukraine Boguchany HPP Ust-Ilimsk HPP 7.2% 33.2% Jamaica Armenia Italy Krasnoyarsk AS Ust-Ilimsk CHP Boguchany Kazakhstan CHP-16 AS BratskHPP Novo- Bratsk AS Krasnoyarsk HPP Taishet AS Ziminskaya Adj. EBITDA 2 by segment CHP-6 CHP-12 CHP-11 (USD bn) CHP-10 CHP-9 Khakass utility services IrkutskHPP Sayanogorsk AS Abakan SPP Irkutsk AS Guinea Khakas AS 3.3 Guyana Novo-Irkutsk CHP 3.2 Nigeria Baikalenergo Australia 2.2 2.1 Metals segment Power segment 1.2 1.1 Aluminium Hydropower Alumina Thermal Power 2017 2018 Bauxite Solar Power Metals Geographical diversity and high proportion of USD revenue streams (1) From external customers. (2) Adjusted EBITDA means, for any period, the results from operating activities adjusted for amortisation and depreciation, impairment of non-current assets and gain/loss on disposal of property, plant and equipment for the relevant period, in each case attributable to the Group, business segment or any reportable segment, as the case may be. Group figures exclude results from intersegmental operations. 7 Sustainable business Investment highlights Power segment En+ Group overview Metals segment development
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