En+ Group Ipjsc Ord Shs · RUS:ENPG
En+ Group Ipjsc Ord Shs — En+ Group — ESG Presentation (October 2020)
31 slides from En+ Group Ipjsc Ord Shs's sustainability presentation, October 2020
Slide 1: ESG Investor Presentation October 2020
ESG Investor Presentation October 2020
Slide 2: Disclaimer
Disclaimer THIS DOCUMENT AND ITS CONTENTS ARE CONFIDENTIAL AND 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, WHETHER TO
Slide 3: Presentation Structure
Presentation Structure 4 14 17 29 En+ FY 2019 Results ESG Outlook at a Glance • En+ at a Glance • Key Highlights • Environmental • Outlook • Business Model • Operational • Social Performance • Strong Investment • Governance Fundamentals • Financial Performance • Environmental Focus: Favourable Dynam
Slide 4: En+ at a Glance
4 14 17 29 En+ FY 2019 Results ESG Outlook at a Glance 4
Slide 5: En+ at a Glance
En+ at a Glance En+ is a global leader in aluminium production and renewable energy with a well-established presence across five continents and a strong operational hub in Siberia En+ share in the world’s En+ share in the total generation aluminium output, 2019 of Siberia, 2019 No 1 6.3 % 5.9% of th
Slide 6: Business Model
Business Model OUR RESOURCES REFINING/ PROCESSING/ SALES & CREATING & INPUTS RAW MATERIALS POWER GENERATION GENERATION MARKETING GLOBAL VALUE Renewable energy ASSETS Bauxite Total sales in 2019 Income and 3.9 mt 1 16.0 mt production 4,176 kt shareholder value Al capacity in 2019 Alumina VAP sales in
Slide 7: Strong Investment Fundamentals
Strong Investment Fundamentals “Best in class” equity story characteristics En+ Group alignment Industry 1.1. Leadership in geography, sector or World class asset – global benchmark in aluminium market 1 segment position #1 aluminium producer by production volumes in the world (ex-China)1 1.2. S
Slide 8: Role of low-carbon aluminium in EVs, Packaging and Construction
Role of low-carbon aluminium in EVs, Packaging and Construction Global warming Paris Climate Agreement has committed the Carbon emissions Well below 2°C world to limit global warming Net-zero CO2 by 2050 To make this achievable, energy and industrial systems will need to achieve net-zero CO2 Low-car
Slide 9: Environmental Focus: Favourable Dynamics for Al in a Low Carbon Economy
Environmental Focus: Favourable Dynamics for Al in a Low Carbon Economy Why aluminium makes sense Favourable automotive prospects for Aluminium and Nickel • Alunimium is a lightweight metal making it an increasingly important component of production and construction • Due to this quality it is the m
Slide 10: Aluminium Demand in Packaging Sector Intensified by Regulation and Sustainability Targets
Aluminium Demand in Packaging Sector is Intensified by Regulation and Sustainability Targets of Global Brands Move from Plastic to Aluminium FRP shipments for packaging applications in the US & Canada LAUNCHED IN 2019 Y-o-y dynamics 7% Highest quarterly figure 4% since 3Q2016 2% 1% 0% 0% -2% -1% -3%
Slide 11: Aluminium – reducing the construction industry’s carbon footprint
Aluminium – reducing the construction industry’s carbon footprint Building construction and operations accounted for Construction should be a primary target for emissions mitigation the largest share global emissions in 2018, when efforts, having accounted for 11% of energy-related emissions in 2018
Slide 12: Aluminium is a key metal for the power sector
Aluminium is a key metal for the power sector Properties that make aluminium ideal for the power industry: The power sector is one of aluminium’s key end market and its use in the sector is expected to grow Strength Malleable roughly in line with overall aluminium demand (1) Lightweight Ductile 5.6
Slide 13: Establishing a low-carbon benchmark in Aluminium
Establishing a low-carbon benchmark in Aluminium • En+ Group fully supports the Carbon Trust’s April 2020 report calling for the publication En+ Group is committed to sustainable production, with superior of universal standards for the carbon footprint of primary aluminium CO2 emissions relative to
Slide 14: FY 2019 Results
4 14 17 29 En+ FY 2019 Results ESG Outlook at a Glance 14
Slide 15: FY 2019 Operational Highlights
FY 2019 Operational Highlights FY 2019 FY 2018 Change Total aluminium production, kt 3,757 3,756 - Total aluminium sales, kt 4,176 3,671 13.8% Sales and Total electricity production1 , TWh 77.8 73.2 6.3% production • HPPs, TWh 64.2 58.3 10.1% • CHPs, TWh 13.6 14.9 (8.7%) Heat production, mn Gcal 27.
Slide 16: FY 2019 Financial Highlights
FY 2019 Financial Highlights USD mn FY 2019 FY 2018 Change Revenue 11,752 12,378 (5.1%) Adj. EBITDA1 2,127 3,287 (35.3%) Adj. EBITDA margin 18.1% 26.6% (8.5pp) Net profit 1,304 1,862 (30.0%) Net profit margin 11.1% 15.0% (3.9pp) Capex 1,061 1,004 5.7% Net debt2 10,204 11,094 (8.0%) Free cash flow3 1
Slide 17: ESG
4 14 17 29 En+ FY 2019 Results ESG Outlook at a Glance 17
Slide 18: ESG Key Aspects
ESG Key Aspects • Board Composition • Air Quality • Board Compensation • Climate change • Employees • Board Diversity • Energy • Health and Safety • Business Ethics • Waste • Local Communities • Management / Oversight • Water • Supply Chain • Shareholders Rights • Biodiversity • Audit Risk E S G Env
Slide 19: En+ Group’s ESG Metrics 2019
En+ Group’s ESG Metrics 2019 Environmental Social Governance ▼11% reduction of direct GHG emissions of 26% of En+ Group’s workforce was female in electrolysis operations 2019vs2014 (tCO2e/tAl) 2019 2 new committees of the Board of Directors were created including the HSE Committee 5 fatal incidents
Slide 20: Sustainability Initiatives & ESG Assessment
Sustainability Initiatives & ESG Assessment • En+ Group supports • In July 2019, as a part • In August 2019, En+ • The Metals segment • In strategic partnership • En+ Group was a the United Nations of its strategy to lead a Group joined the of the Group, with the World founding partner of the Sustai
Slide 21: Environmental Focus: ALLOW Brand Aluminium
E Environmental Focus: ALLOW Brand Aluminium Powering business with a low carbon footprint LME launches platform for trading low-carbon aluminium • In 2017, we launched a bespoke brand for low carbon aluminium - ALLOW with • The London Metal Exchange (LME) plans to launch a platform for trading low-
Slide 22: Environmental Focus: Power Segment
E Environmental Focus: Power Segment Renewable power New Energy modernisation programme • In 2019, En+ Group decided to build a small-scale HPP in Karelia • The New Energy programme focuses on upgrading the Group’s HPPs (Russia) with installed capacity 8.1 MW in order to improve the quality of the e
Slide 23: Environmental Focus: Energy Management and Climate Change Initiatives
E Environmental Focus: Energy Management and Climate Change Initiatives Direct GHG emissions reduction of electrolysis operations • Customers aiming to reduce carbon footprint from aluminium supplies in the Metals segment, tCO2e/tAl • En+ supports tighter emissions’ disclosure rules on the LME • In
Slide 24: Lake Baikal
E Lake Baikal The Group’s key HPPs are located on the Angara River – the only river flowing from Lake Baikal • Lake Baikal is a rift lake in the south of Eastern Siberia HPPs on the Angara 1 cm of Baikal running through the HPP turbines produces IRKUTSK HPP over 0.2 TWh of green energy 662.4 MW 3.8
Slide 25: Employees - Health & Safety
S Employees - Health & Safety Gender diversity, 2019 Work-related employee fatalities Lost time injury frequency rate Women 26% 8 0.22 4 5 0.16 0.17 0.14 0.12 0.11 4 Men 4 74% 1 2018 2019 2018 2019 ⬛⬛Power ⬛⬛Metals ⬛⬛En+ Group Employees Performance Health & Safety Performance • The Company sees the
Slide 26: Local Communities
S Local Communities Performance The Company’s community development programmes are based on local communities’ needs and focus on the following key areas: • social infrastructure and the urban environment • education • sports and healthy and recreation • social entrepreneurship • volunteering, inclu
Slide 27: Enhanced Corporate Governance
G Enhanced Corporate Governance Lord Barker Christopher Burnham Joan MacNaughton Executive Chairman Senior Independent Director, Chair of Chair of Health, Safety and Environment Committee A life Peer, since October 2015, a member of the Compliance Committee Influential figure in international energy
Slide 28: Committees
G Committees Environmental Advisory Board1 Shareholders • Adnan Z. Amin • Joan MacNaughton • External advisors with specific expertise in Board of Directors environmental and wider sustainability issues Audit and Risk Corporate Remuneration Health, Safety and Compliance Committee Governance and Comm
Slide 29: Outlook
4 14 17 29 En+ FY 2019 Results ESG Outlook at a Glance 29
Slide 30: Key ESG Goals
Key ESG Goals • Revise strategic goals relating to climate change • Set Science-Based Targets • Finalise a TCFD project to assess climate change risks • Increase of efficiency of Hydro power generation Environmental • Reduce the Metals and Power segments’ air emissions by continuing to implement ini
Slide 31: Contacts
Contacts For further information, please visit: https://enplusgroup.com/en/investors/ For Sustainability Section, please visit: https://enplusgroup.com/en/sustainability/ For Sustainability Report 2019, please visit: https://enplusgroup.com/en/sustainability/sustainability-report/ or contact: For in