En+ Group Ipjsc Ord Shs · RUS:ENPG
En+ Group Ipjsc Ord Shs — En+ Group — H1 2021 Earnings Presentation
45 slides from En+ Group Ipjsc Ord Shs's earnings presentation, Aug 19, 2021
Slide 1: 1H 2021 Financial Results Presentation
1H 2021 Financial Results Presentation Webcast & Conference Call 19 August 2021
Slide 2: Disclaimer
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 “f
Slide 3: Introduction
3 6 14 20 Introduction Performance overview Markets we operate in Conclusion 3
Slide 4: 1H 2021 Key Highlights
1H 2021 Key Highlights Market En+ performance Corporate developments Economic recovery from the Against the continuing impact of Sector leading GHG reduction severe impact of the pandemic the coronavirus pandemic, stable targets, decarbonisation pathway operational and financial report to be p
Slide 5: Climate Change Agenda
Climate Change Agenda Pathway to Net Zero: Conducting deep analysis to develop decarbonisation strategy in continuous collaboration across multiple business lines In September 2021, En+ to publish a Report on the pathway to Net Zero and conduct a Net Zero Investor Webinar Testing aluminium p
Slide 6: Performance overview
3 6 14 20 Introduction Performance overview Markets we operate in Conclusion 6
Slide 7: 1H 2021 Financial and Operational Highlights
1H 2021 Financial and Operational Highlights Revenue 30.2% increase in the weighted-average Aluminium Aluminium production was broadly unchanged USD 6,506 mn realized aluminium price per tonne production y-o-y up 31.5% y-o-y 5.8% increase in sales volumes of primary 1,868 kt The aluminium ma
Slide 8: Sustainability Performance (1/2)
Sustainability Performance1,2 (1/2) ⬛⬛Power ⬛⬛Metals ⬛⬛En+ Group Target Comment Management considers work-related fatalities unacceptable Work-related and conducts comprehensive investigations of all fatalities, 3 To achieve zero fatalities. with identifying the causes and conditions of their employ
Slide 9: Sustainability Performance (2/2)
Sustainability Performance1 (2/2) ⬛⬛Power ⬛⬛Metals ⬛⬛En+ Group Target Comment GHG emissions reduction in aluminium plants was possible GHG emissions To reduce direct specific GHG emissions due to implementation of a targeted program to reduce of smelters (Scope 1) 2.04 by 15% from 2014 levels (2.28
Slide 10: 1H 2021 Financial Highlights
1H 2021 Financial Highlights USD mn 1H 2021 1H 2020 Change Revenue 6,506 4,948 31.5% Adj. EBITDA1 1,890 756 150% Adj. EBITDA margin 29.1% 15.3% 13.8 pp Net profit 2,231 20 - Net profit margin 34.3% 0.4% 33.9 pp Capex4 693 492 40.9% Free cash flow2 692 446 55.2% 1H 2021 Revenue by region3 1H 2021 Rev
Slide 11: En+ Group Revenue and EBITDA Breakdown
En+ Group Revenue and EBITDA Breakdown 1H 2020 to 1H 2021 Revenue bridge 1H 2020 to 1H 2021 Adj. EBITDA2 bridge (USD mn) Change 1H 2020 to 1H 2021(%) (USD mn) Change 1H 2021 to 1H 2020 (%) 35.7% 6.9% +500.5% +7.0% 6,506 1,890 98 26 1,513 38 0 4,948 580 (456) 1,415 1,434 (5) (482) USD 1,558 mn (+31.5
Slide 12: En+ Group Debt Overview as of 30 June 2021
En+ Group Debt Overview as of 30 June 2021 Net debt change in 1H 2021 Key debt metrics (USD mn) (USD mn) 30 June 2021 31 Dec 2020 9,826 (494) Total debt, IFRS 12,314 12,388 11 416 243 (666) 98 8,116 4,263 (1,220) 139 Cash and cash equivalents 4,198 2,562 277 145 (1,160) 5 5 (1,209) 4,017 Net debt1,
Slide 13: Capital Expenditure
Capital Expenditure Capital expenditure dynamics1 Power Segment (USD mn) • Capex increased to USD 139 mn from USD 101 mn with maintenance capex accounting for 47%. 693 The increase was mainly attributable to the partial rescheduling of some works from the previous year and the beginning of CHP moder
Slide 14: Markets we operate in
3 6 14 20 Introduction Performance overview Markets we operate in Conclusion 14
Slide 15: Power Market Update
Power Market Update Power supply and demand in Siberia1 Average electricity spot prices2 TWh 1H’21 1H’20 Change Average market price, 1H’21 1H’20 Change RUB/MWh Production in Siberia 109.2 103.9 5.1% 2nd price zone 908 904 0.4% HPPs production 61.3 54.6 12.2% Irkutsk region 818 856 (4.4%) Consumptio
Slide 16: Water Level
Water Level Water level of Lake Baikal, m 458,2 457.12 457,0 456.64 456.48 456.48 456.49 456.58 456.23 456.41 456.29 456.20 456.28 455.5 Dec'19 Mar'20 Jun'20 Sep'20 Dec'20 Jan'21 Feb'21 Mar'21 Apr'21 May'21 Jun'21 Water level Normal Min/Max Angara cascade, TWh Yenisey cascade/KHPP, TWh 25.5 22.3 22.
Slide 17: Growth in Demand Matched by Record Aluminium Production
Growth in Demand Matched by Record Aluminium Production Primary aluminium demand and production Incremental global aluminium dynamics¹ demand structure by end-use in 2021 33.8Mt Consumer 32.1Mt Other 33.0Mt 31.9Mt 33.9Mt durables 4% 30.3Mt 6% Machinery & 14.1 Equipment Transport 15.0 10% 12.3 39% El
Slide 18: Fundamentals and Supply Chain Restrictions
Aluminium Prices Reflect Current Market Fundamentals and Supply Chain Restrictions LME cash settlement price Regional premiums dynamics Monthly average, Aug 2021 (1-9) $3,000 $800 $753 Europe DU $700 $2,500 US MidWest DP $600 Main Japanese Ports (quarterly) $2,000 $500 $1,500 $400 $297 $300 $1,000 $
Slide 19: Chinese Production is Forecasted to Reach Record Highs
Chinese Production is Forecasted to Reach Record Highs Chinese installed aluminum capacity Chinese primary aluminium import mn t kt Capacity cap 45mn t Imports Exports Net Imports 370 377 42.6 346 42.3 296 270 243 251 230 238 200 204 170 172 41.0 147 134 103 70 2019 2020 2021E -30 Jun'20 Sep'20 Dec'
Slide 20: Conclusion
3 6 14 20 Introduction Performance overview Markets we operate in Conclusion 20
Slide 21: Save the Date: En+ Net Zero Investor Webinar
SAVE THE DATE 22 Sept En+ Net Zero Investor Webinar In January 2021 En+ Group announced its mid- and long-term GHG emissions reduction targets. The Group believes that these stretching targets represent the most ambitious climate change targets in the global aluminium industry. En+ targets1: to be
Slide 22: Thank you for your attention!
Thank you for your attention! For further information, please visit: https://www.enplusgroup.com/en/investors/ For investors: E: ir@enplus.ru For media: E: press-center@enplus.ru T: +7 (495) 642 7937 22
Slide 23: Appendix
Appendix GROUP
Slide 24: Coronavirus Response in En+ Group
Coronavirus Response in En+ Group People • Regular qualified trainings for employees providing information including the launch of a dedicated hotline • Provision of personnel with protective equipment including gloves, masks and sanitizers • Thermometry control. Personnel flows control • Regular di
Slide 25: Strong Investment Fundamentals
Strong Investment Fundamentals “Best in class” equity story characteristics En+ Group alignment Industry 1.1. Leadership in geography, sector and 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.
Slide 26: En+ Climate Change Ambition
En+ Climate Change Ambition Initial setup Key actions January 2021 – Climate targets approved by Analysis of the activities within value chain of both segments and access efficient abatement Board of Directors and compensation measures to develop GHG reduction strategy, in line with 1.5°C pathwa
Slide 27: 1H 2021 Operational Highlights
1H 2021 Operational Highlights 1H 2021 1H 2020 Change Total aluminium production, kt 1,868 1,867 0.1% Total aluminium sales, kt 2,000 1,890 5.8% VAP share 50% 42% 8 pp Sales and Total electricity production1 , TWh 44.0 39.3 12.0% production • HPPs, TWh 36.9 32.0 15.3% • CHPs, TWh 7.0 7.3 (4.1%) Heat
Slide 28: Segment Highlights
Segment Highlights Power segment • Power segment revenues increased by 6.9% y-o-y mainly driven by increase in electricity USD mn 1H 2021 1H 2020 Change sales volumes and increase in capacity prices y-o-y. The increase was partially offset by Revenue 1,513 1,415 6.9% rouble depreciation (the average
Slide 29: Water Inflows as a Driver to Increase HPP Generation
Water Inflows as a Driver to Increase HPP Generation Overview Water inflows, Angara cascade1 (m3 per sec.) • The Group’s Angara cascade HPPs (Irkutsk, Bratsk and Ust-Ilimsk HPPs) increased power generation to 25.5 TWh in 1H 2021 (up 14.3% y-o-y) and to 11.8 TWh in 2Q 2021 (up 12.4% y-o-y). This was
Slide 30: Power Generation Volumes
Power Generation Volumes Hydro power generation1 36.9 (TWh) 32.0 31.0 11.4 9.7 8.9 19.5 18.5 18.4 16.4 17.9 15.6 6.0 6.4 4.8 6.6 4.7 5.0 25.5 22.3 22.1 11.8 11.9 13.1 13.7 11.8 10.5 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 1H 2020 1H 2021 1H long-term average 2 Angara cascade (incl. Irkutsk,
Slide 31: Power Segment Sales Breakdown
Power Segment Sales Breakdown Electricity sales Capacity sales1 (TWh) (GW) 53.3 87.7 47.3 84.9 10.4 18.0 17.0 9.1 1.7 Retail 1.7 Regulated contracts Regulated contracts 18.0 3 KOM 19.5 Free bilateral contracts 48.6 Free bilateral contracts 3.3 67.9 Balancing market 3.2 20.0 Spot market 2 13.7 21.1 1
Slide 32: Power Segment EBITDA Analysis
Power Segment EBITDA Analysis Power segment EBITDA in 1H 2021 1H 2021 adj. EBITDA bridge build-up (USD mn) EBITDA margin (%) (USD mn) 86 11 14 na 38 542 50 580 43 16 11 580 48 510 (36) (24) HPPs CHPs Coal Other and Total Adj. EBITDA FX Spot prices HPP Others Adj. EBITDA interco 1H 2020 generation 1H
Slide 33: Power Segment's HPP Modernisation Programs
Power Segment’s HPP Modernisation Programs • ‘New Energy’ is an ongoing program, focused on modernising the power plants at Angara and Yenisei cascades, to improve efficiency, reliability and safety as well as reduce potential GHG emissions by augmented HPP generation • As part of the program: • Ust
Slide 34: Power Segment's Modernisation Programs
Power Segment’s Modernisation Programs CHP modernisation program Projects Commence of capacity supply Capacity, MW CAPEX2 USD mn • The Group participated in the state programs for CHP modernisation providing guaranteed return on investment.1 Segozerskaya HPP, 01.12.2022 8.1 19.7 • Capacity Allocatio
Slide 35: Power Segment Debt Overview
Power Segment Debt Overview Key debt metrics Net debt change in 1H 2021 (USD mn) (USD mn) 30 June 2021 IFRS 31 Dec 2020 IFRS 4,263 4,017 Loans and borrowings 11 139 98 - Corporate Debt 3,426 3,552 (494) - Operational Debt 1,023 1,044 Total debt 4,449 4,596 Cash and cash equivalents 432 333 31 Dec 20
Slide 36: Metals Segment Production
Metals Segment Production Aluminium (kt) 1,867 1,868 57 61 71 65 940 927 939 932 936 950 29 28 29 31 30 31 35 35 35 34 33 33 1,739 1,742 876 862 875 885 869 873 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 1H 2020 1H 2021 Russia Siberia Russia European Part Sweden (kt) Alumina Bauxite Nepheline o
Slide 37: Aluminium Sales and Revenue
Aluminium Sales and Revenue +5.8% (Kt) 1,890 2,000 y-o-y 2,000 78 1,890 Ingots 12 145 134 Primary • In 1H 2021, aluminium sales increased 5.8% y-o-y to total 2,000 kt. The sales 990 VAP aluminium increase was mostly attributable to intensified market demand. 1,105 sales, Third party • In line with i
Slide 38: Metals Segment EBITDA Breakdown
Metals Segment EBITDA Breakdown 1H 2021 EBITDA bridge build-up 1H 2021 adj. EBITDA bridge build-up (USD mn) EBITDA margin (%) (USD mn) EBITDA margin (%) 33 5 na 24 24 815 159 64 10 (117) 1,368 1,315 5 1,315 112 219 Aluminium Alumina Unallocated 3 1H21 EBITDA 1H20 Premiums / Effect of LME Aluminium C
Slide 39: Metals Segment Capital Expenditures
Metals Segment Capital Expenditures Capex Semi-annual dynamics Capex 1H 2021 Capex guidance 2021 USD mn 897 842 848 834 Taishet Aluminium 600 19% Smelter 17% 500 Taishet Anode Plant 400 7% 12% 300 554 USD 554 mn USD 1.1–1.3 bn 521 495 496 200 417 417 401 7% Other development 321 353 capex 61% 67% 10
Slide 40: Metals Segment Debt Overview
Metals Segment Debt Overview Net debt change in 1H 2021 • In 1H 2021 the Group signed a sustainability linked pre-export (USD mn) finance facility with Societe Generale for up to USD 200 mn, 3 years 5,563 maturity to refinance more expensive debt. The facility is priced at 4,099 277 3mLibor+1.8%, wi
Slide 41: En+ Group Statement of Profit or Loss
En+ Group Statement of Profit or Loss Statement of profit or loss Six months ended USD mn 30-June-2021 30-June-2020 Revenue 6,506 4,948 Cost of sales (4,251) (3,866) Gross profit 2,255 1,082 Distribution expenses (285) (265) General and administrative expenses (380) (360) Impairment of non-current a
Slide 42: En+ Group Business Segments
En+ Group Business Segments Statement of profit or loss by Business segment Six months ended 30-June-2021 En+ Group Metals Power USD mn Adjustments Consolidated segment segment Revenue 6,506 5,449 (456) 1,513 Operating expenses (excluding depreciation and loss (4,616) (4,134) 451 (933) on disposal o
Slide 43: En+ Group Statement of Financial Position
En+ Group Statement of Financial Position Statement of financial position Statement of financial position (cont’d) USD mn 30-June-2021 31-Dec-2020 USD mn 30-June-2021 31-Dec-2020 EQUITY AND LIABILITIES ASSETS Equity Non-current assets Share capital - - Property, plant and equipment 9,933 9,577 Share
Slide 44: En+ Group Statement of Cash Flows
En+ Group Statement of Cash Flows Statement of cash flows Statement of cash flows (cont’d) Six months ended Six months ended USD mn 30-June-2021 30-June-2020 USD mn 30-June-2021 30-June-2020 OPERATING ACTIVITIES INVESTING ACTIVITIES Profit for the year 2,231 20 Proceeds from disposal of property, pl
Slide 45: EBITDA Reconciliation
EBITDA Reconciliation Six months ended Six months ended 30 June 2021 30 June 2021 USD mn En+ Group Metals Power En+ Group Metals Power Results from operating activities 1,391 942 453 306 (106) 416 Add: Amortisation and depreciation 429 317 113 384 274 111 (Gain)/loss on disposal of property, plant a