Allow
2024
Driving
Development
Consolidated
Report
Allow
Contents
01
03
04
02
Appendices
are provided as a separate
document
Appendix 1.
Report on Compliance
with the Principles and
Recommendations of the Russian
Corporate Governance Code
Appendix 2.
List of the Company’s Branches
Appendix 3.
Additional ESG-information
Driving
development
Sustainable development
76
Sustainability management
78
Contribution to the UN SDGs and the National
Development Goals of the Russian Federation
80
Cooperation and partnerships
83
Materiality assessment
86
Stakeholder engagement
90
Climate and environment
90
Climate change and energy management
104 Environment protection
122 People
122
Occupational health and safety
136 Employees
148 Contribution to local communities
160 Governance
160 Corporate governance
181
Information for shareholders and investors
186 Internal control and risk management
194 Corporate ethics and compliance
202 Supply chain management
206 Responsible business practices
Strategic report
10
Key figures
14
Our presence and scale
16
Industry positioning
18
Statement from the Chairman
of the Board of Directors
20
Statement from the Chief Executive Officer
22
Business model
24
Strategy
28
Business review
44
Financial review
70
Investment programme and modernisation
En+ Group operates in two crucially important sectors – metals and power –
which helps it drive the global economic development. The Company’s
enterprises form the backbone of Siberia and other operating regions and
support their social and economic welfare. Together with environmental
initiatives, this lays the foundation for long-term sustainable development of
all operating regions.
Financial
statements
220 Consolidated Financial
Statements
Appendicies
298 Independent auditor's report
300 Glossary
308 Contacts
> RUB 7.0 bn
social investments
En+ Group’s enterprises form the backbone of
Siberia and other operating regions, supporting
their social and economic welfare.
Power infrastructure
Regional
development
Driving Development
total capacity of the power plants
that the Company owns and
manages, thus ensuring reliable
power supply
GW19.5
19.5
>
> 50
50
social projects implemented
by the Company in regions
of responsibilities over the
past five years
En+ Group produces energy to ensure the
stable operation of the region’s economy
and high living standards of people.
En+ Group develops social infrastructure
in the regions of its responsibilities:
participates in social projects and
implements its own programmes to support
education, healthcare and culture.
share of En+ Group’s
waste that is recycled
or reused
>93k
jobs
USD
24.8 mn
R&D expenses
64.3%
share of recycled and circulating water
Environmental
care
Contribution to the economy
and innovation
En+ Group promotes the economic
development of Siberia: creates jobs and
pays all statutory taxes. Aluminium has
unique properties such as light weight,
strength, and corrosion resistance, making
it a valuable material for many economic
sectors: from construction and automotive
manufacturing to packaging and consumer
goods.
The Company introduces new technologies
and innovations in its operations, thus
enabling the development of high-
tech industries and fostering the future
competitiveness of Siberia as a region.
The Company cooperates with leading
research universities to develop and
implement advanced energy technologies.
The Company’s environmental initiatives help
reduce the negative environmental impact
and preserve the natural resources of Siberia
for future generations.
The Company is making efforts to keep
Lake Baikal clean: in 2022, the Baikal Plastic
Free Alliance was set up on the initiative of
En+ Group to protect this natural landmark
of the region.
RUB bn
Mandatory payments
made by En+ Group
62.4
62.4%
> 45
45
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
5
4
CONSOLIDATED REPORT 2024
Reporting boundaries
Boundaries of the 2024 Report2
Recognition of the 2023 Consolidated Report
GRI 2-4
To ensure data comparability, the Company’s material
performance metrics are provided for the last three
years (2022–2024). There were no significant changes
in the measurement methodology for the metrics
in the Reporting Period. Nevertheless, the Report contains
some restatements of information from previous years.
Comments on the restatements and updated methodologies
are included in the text.
Due to rounding, some totals in the tables, charts,
and diagrams in this Report may not corre-spond
with the sum of the separate figures. This Report may
also contain discrepancies in the calculation of shares,
percentages, and total amounts as a result of different
rounding methods used.
In this Consolidated Report, the terms “En+”, “En+ Group”,
“EN+ GROUP”, or the “Company” in various forms mean
EN+ GROUP IPJSC and its subsidiaries according to
IFRS reporting. Their performance results are presented
in the Company’s consolidated financial statements
prepared in accordance with International Financial
Reporting Standards (IFRS). The Sustainable Development
and Appendix 3 Additional ESG Data include performance
results of the Company and its subsidiaries that are included
in the Group’s IFRS consolidated financial statements and
have significant ESG impact.
The Report reflects information about the Group’s performance
in two segments, Metals (including BoAZ) and Power.
The Queensland Alumina Limited joint venture (Australia)
is excluded from the reporting boundaries due to the ban
on exports of alumina and bauxite to Rus-sia imposed
by the Australian government in April 2022. Data on Nikolaev
alumina production are excluded from the reporting perimeter
due to the suspension of production. Occupational health and
safety data of KraMZ LLC and Strikeforce Mining and Resources
PLC (SMR) were disclosed within the Metals segment reporting
boundaries.
GRI 2-1
GRI 2-2
METALS SEGMENT
POWER SEGMENT
56.88%
shareholding
100%
consolidation
in the Report
100%
shareholding
100%
consolidation
in the Report
1
To review the standards and partially restructure the Report’s thematic sections. Specific IFRS S2 components are disclosed in the Climate
change and Energy Management section.
2 Unless otherwise stated, the Report covers the Group business units listed below.
Secured in the Visionary Leaders in Change
Management awards in two categories:
Best Sustainability Report Under
Non-Financial Reporting Standards, and
Best Economic Impact Disclosure
Awarded in the Best Annual Report
of a Company with a RUB 200 bn+
Market Cap category at the 27th
Moscow Exchange Annual Report
Contest 2024
Certificate of Public Assurance
place
place
1
3
GRI 2-3
En+ Group presents its Consolidated Report (the “Report”),
an annual document for a wide range of stakeholders that
reflects the Company’s key financial metrics and sustainability
performance results for the period from 1 January to
31 December 2024 (the “Reporting Period”).
En+ Group regularly reports its sustainability performance,
in the form of Sustainability Reports until 2022 and then
Consolidated Reports that combine data from the annual
report and the sustainability report.
By publishing this Report, En+ Group reiterates its
commitment to transparency as the document presents the
most reliable and complete information about the Company.
The Report contains information about our business model,
strategy, investment programme, operational and financial
performance, consolidated financial statements, as well
as ESG performance. The Report also describes how the
Company сomplies with the principles of the UN Global
Compact, contributes to the UN Sustainable Development
Goals (SDGs) and national goals of the Russian Federation. The
Report includes information that the Company believes to be
material for stakeholders and the business.
The Report is aligned with the following requirements and recommendations:
GRI 2-5
To ensure credible disclosure, En+ Group prepared its
consolidated financial statements for the year ended
31 December 2024 in accordance with IFRS, including
an auditor’s report, and engaged B1 as an independent
practioners to verify the sustainability data.
About the Report
For the independent practitioner’s
assurance report on the Sustainable
Development section, see page 298-299
of this Report
GRI 2-14
The Report was preliminarily approved by the Company’s
Board of Directors on 28 April 2024 (Minutes №84).
• Federal Law No. 39-FZ On the Securities Market, dated
22 April 1996
• Regulations of the Bank of Russia No. 714-P On Information
Disclosure by Issuers of Issue-Grade Securities, dated
27 March 2020
• The Corporate Governance Code recommended for use
by joint stock companies by the Bank of Russia’s Letter
No. 06-52/2463 dated 10 April 2014 (the “Russian
Corporate Governance Code”)
• Global Reporting Initiative (GRI) Standards, including GRI 14
Mining Sector 2024
• Standards of the Sustainability Accounting Standards Board
(SASB), including standards for the Metals & Mining and
the Electric Utilities & Power Generators industries
• IFRS1 sustainability disclosure standards
• Technical guidance to comply with the Streamlined Energy
and Carbon Reporting (SECR)
• The Aluminium Carbon Footprint Technical Support
Document
• A Guide for Issuers: How to Comply with Best Sustainability
• Practices released by the Moscow Exchange
• Guidelines provided by Russia’s Ministry of Economic
• Development for preparing sustainability reports
• Voluntary ESG standard for the energy sector devised
by the nonprofit partnership Market Council
• Bank of Russia’s recommendations for public joint stock
companies to disclose non-financial information related
to their activities
• Bank of Russia’s recommendations on ESG rating
methodology
• Metrics tracked by key ESG ratings
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
7
6
CONSOLIDATED REPORT 2024
01
Energising
the economy
of cities
5.9%
of the world’s aluminium
production
11
aluminium
smelters
5
hydropower
plants
The synergy generated by En+ Group’s two
segments, Metals and Power, helps ensure a fully
integrated production of low-carbon aluminium
expected to become an integral part of the economy
of the future.
Strategic
report
10
Key figures
14
Our presence and scale
16
Industry positioning
18
Statement from the Chairman
of the Board of Directors
20
Statement from the Chief Executive
Officer
22
Business model
24
Strategy
28
Business review
44
Financial review
70
Investment programme
and modernisation
Key figures
Current geopolitical tensions and new economic
restrictions are resulting in volatility in the financial,
commodities, and currency markets, as well as in changes
in supply chains and refusal of certain suppliers to fulfil
previously agreed upon obligations.
Total electricity production1,
TWh
Heat generation, mn Gcal
For more details, see
the Business Review
section on pages
28-43
69.0
14.9
68.8
16.4
73.7
16.9
‘22
‘23
‘24
83.9
85.2
90.7
HPP
CHP
‘22
‘23
‘24
27.6
27.4
26.3
Nevertheless, the Company has leveraged its effective
management model to quickly restructure raw-material
supplies and logistics operations as well as successfully
diversify sales channels.
China Chengxin Green Finance
Technology (Beijing) Ltd. assigned
an ESG rating to En+ at the level of
“A-”
The Group’s Metals segment
launched a pilot facility capable
of producing
1.5 tonnes
of scandium oxide per year
• En+ Group’s Board of Directors approved
the appointment of Vladimir Kolmogorov as CEO
of the Company effective 23 May 2024.
• As a result of competitive capacity auctions
for new generating facilities, three projects
of the Group to construct power units at CHP-11
in Usolye-Sibirskoye (Irkutsk Region) were selected.
• En+ Group and the Government of the Republic
of Buryatia signed an agreement on cooperation
to implement the Moksky hydropower complex
construction project. This project includes
the construction of two hydropower plants –
Mokskaya HPP and its compensating facility,
Ivanovskaya HPP.
• The Group’s Metals segment, RUSAL, underwent
international verification of the carbon footprint
of the primary metal produced using the inert
anode technology under the ALLOW INERTA
brand – its carbon footprint is 0.01 tonnes
of CO2e per tonne of aluminium (Scope 1 and 2).
• ACRA improved the credit rating of En+ Group
IPJSC to A(RU) with a stable outlook.
2025
2024
Operational performance
14,649
14,649
mn
En+ Group’s 2024 revenue
Power segment
1
Excluding Onda HPP (with the installed capacity of 0.08 GW), located in the European part of Russia, leased
to RUSAL since October 2014.
2 Adjusted EBITDA for any period represents the operating results adjusted for amortisation and depreciation, impairment charges, and gain/loss on disposal
of property, plant and equipment for the relevant period.
Revenue, USD mn
Net profit, USD mn
Adjusted EBITDA2, USD mn
Capital expenditure
USD mn
Adjusted EBITDA
margin, %
For more details, see
the Financial Review
section on pages
44-69
3,885
13,974
16,549
3,587
12,213
3,853
12,082
‘22
‘23
‘24
14,648
14,649
384
1,793
1,846
355
282
553
803
‘22
‘23
‘24
716
1,348
1,254
2,028
3,119
1,292
786
1,446
1,494
‘22
‘23
‘24
2,157
2,927
474
1,239
1,711
394
1,056
519
1,366
‘22
‘23
‘24
1,448
1,878
18.8
‘22
‘23
‘24
14.7
20.0
Metals segment
Power segment
Financial performance
Aluminium production and sales,
kt
‘22
‘23
‘24
3,835
3,848
3,992
3,896
4,153
3,859
Aluminium production
Aluminium sales
Metals segment
USD
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
11
10
CONSOLIDATED REPORT 2024
Share of independent directors
as at 31 December, %
LTIFR2
GHG emissions, mt CO2e1
64
‘22
‘23
‘24
67
67
67%
of directors are
independent as at
31 December 2024
‘22
‘23
‘24
0.89
0.90
0.94
0.67
0.52
0.57
0.81
0.76
0.84
Metals segment
Power segment
En+
25.2
40.5
65.7
26.5
39.4
27.2
39.4
‘22
‘23
‘24
65.9
66.6
Metals segment
Power segment
Share of purchases from local suppliers, %
Employee turnover, %
Air emissions, kt
‘22
‘23
‘24
35
68
61.7
57
50
99
39
62
80.2
Metals segment
Power segment
En+
‘22
‘23
‘24
9.5
11.3
14.7
12.2
15.4
20.4
10.5
12.8
16.8
Metals segment
Power segment
En+
299.6
362.6
662.2
319.9
371.7
340.0
368.2
‘22
‘23
‘24
691.6
708.1
Metals segment
Power segment
Total economic benefit from the
implementation of business system projects
and suggestions, USD mn
Social investments,
USD mn3
Share of total waste reused or recycled, %
9.3
41.3
50.6
9.8
76.4
6.1
122.4
‘22
‘23
‘24
86.2
128.5
Metals segment
Power segment
19.0
34.0
53.0
6.1
55.5
9.6
66.3
‘22
‘23
‘24
62.3
76.0
Metals segment
Power segment
‘22
‘23
‘24
5
7
6
90
90
86
63
68
62
Metals segment
Power segment
En+
1
Direct (Scope 1) and indirect (Scope 2 and 3) GHG emissions.
2 Lost Time Injury Frequency Rate per 1 million hours.
3 Hereinafter, unless otherwise stated, calculated based on the average
USD/RUB exchange rate in 2024 of RUB 92.52 per USD.
A leader in the Contribution
to the National Goals
award according
to the Environment-
People-Government rating
of Russian businesses
A leader in the ESG
ranking of Russian
industrial companies
according
to the National Rating
Agency
A leader in the ESG
transparency ranking
among Russian
companies and
banks according to
Expert RA
Platinum award
in the Forbes ranking
of best Russian
employers
Highest A-rating
in the Responsibility
and Transparency
Index
“A-” rating from
the Chinese
rating agency
CCGFX
ESG RATINGS
4
5
6
7
3
“A” rating (very high
level of commitment
to incorporate
sustainability
considerations into key
decisions) from Expert RA
1
2
E
S
G
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
13
12
CONSOLIDATED REPORT 2024
GRI 2-1
The Group leverages the opportunities stemming from
its well-established presence spanning five continents
and a strong operational hub in Siberia, combining
the assets of both its Metals and Power segments.
The Group’s Metals segment benefits from well-
diversified sales channels, enabling efficient access and
operations across all key aluminium markets. The Group’s
market research and analytical capabilities contribute
significantly to its long-term operational and financial
planning.
The Power segment manages Siberia’s largest and
most cost-efficient network of power plants, providing
efficient and reliable service to its key customers
in the region, including the largest smelters operated
by our Metals segment.
En+ Group is the largest producer
of low-carbon aluminium globally
outside of China
11
aluminium
smelters3
5
HPP7
8
alumina
refineries4
15
CHP
7
bauxite
mines
Solar power plant
Total
capacity
Total
capacity
Production level
in 2024
Production level
in 2024
45.1
32.9
15.5
6.5
CIS
Asia
Europe
Other
65.1
12.1
6.1
5.1
Primary
aluminium and
alloys
Electricity
Semi-finished
products and foil
Alumina and
bauxite
Heat
Other
2.9
8.7
USD 14,649 mn
En+ Group’s 2024 revenue6
Revenue by region, %
Revenue by product, %
1
Eurallumina in Italy is mothballed.
2 Alscon in Nigeria is mothballed.
3 Excluding Boguchany Aluminium Smelter (BoAZ), a joint 50/50 project of RUSAL and strategic partner.
4 Eurallumina in Italy is mothballed. Since March 2022, production at Nikolaev (Ukraine) has been suspended. Moreover, the Company owns a 20% interest in Queensland
Alumina Limited, located in Australia. Since April 2022, the Australian government has banned alumina and bauxite exports to Russia.
5 Including the capacity of Queensland Alumina Ltd attributed to RUSAL
6 From external customers.
7 Including Onda HPP with the installed capacity of 0.08 GW (located
in the European part of Russia, leased to RUSAL).
8 Excluding Onda HPP.
Our presence and scale
4.2
3.9
10.4
6.4
22.0
15.9
mtpa
mt
mtpa5
mt
mtpa
mt
15.2
73.7
4.3
16.9
5.2
5.8
GW7
TWh8
GW
TWh
MW
GWh
Metals segment
Power segment
Moscow
Armenia
Guinea
Sweden
Jamaica
Ireland
Australia
Germany
Guyana
Italy1
2
1
2
1
1
1
1
1
1
1
1
1
1
2
2
3
5.5%
of the world’s aluminium
production
73.7 TWh
low-carbon hydropower production
19.5 GW
total installed electrical capacity
Krasnoyarsk
Irkutsk
№
№ 1
China
1
Nigeria2
1
1
4
8
1
1
1
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
15
14
CONSOLIDATED REPORT 2024
1
Based on the Company’s internal data and peer companies’
publicly available results, announcements, reports and other
information.
2 Since 2019, Chinalco has been disclosing consolidated
production data on Chalco and Yunnan Aluminum Co. Ltd.
3 Taking into account the shutdown of alumina production
at the Nikolaev Alumina Refinery and the Australian
Government’s ban on exporting alumina and aluminium
ores to Russia. Taking into account the acquisition of a 30%
interest in an alumina plant Hebei Wenfeng New Material Co.,
ltd., located in China.
Industry
positioning
En+ Group is a market-leading,
vertically integrated low-carbon
aluminium and hydropower
producer.
The Group’s asset mix and operations, coupled
with its large and diverse geographical footprint,
offer strategic synergies. The scale of operations
allows the Company to smartly manage the flows
of aluminium products as well as alumina and other
raw materials within the Company, and enables
proactive planning of electricity production and
consumption targets. This helps the Group optimise
capacity utilisation rates, maximise efficiency
at smelters and refineries, and drive asset growth.
Based on the current management
structure and internal reporting system,
the Group has defined two business
segments:
In 2024, En+ Group’s Metals segment, represented
by RUSAL, accounted for approximately 5.5%
of global aluminium production and around
4.7% of the world’s alumina production. During
the year, the Company maintained its position
as one of the world’s largest producers of primary
aluminium and alloys.
The Metals segment includes bauxite and nepheline
ore mines, alumina refineries, aluminium smelters
and casting houses, foil mills, packaging and wheel
production facilities. It achieves a self-reliance
of roughly 78%3 for alumina and 88%3 for its bauxite
and nepheline resources. It boasts a diversified
product mix with a strong share of value-added
products (1.4 mt per annum out of 3.9 mt of total
sales in 2024).
The growth in demand for products with a low
carbon footprint and the development of carbon
taxes encourage the Metals segment to promote
a line of sustainable products. RUSAL is a global
leader in the production of low-carbon aluminium,
selling more than 1.3 mt of products under
its own ALLOW brand and continuing to develop
the ALLOW INERTA line, for which the ground-
breaking inert anode technology is used. ALLOW
INERTA is aluminium with the lowest carbon footprint
in the world: 0.01 t of CO2e/t Al. The pilot electrolysis
site has already produced 5.3 kt of aluminium.
The Metals segment has a diversified sales
geography. The Company supplies aluminium
products both to the domestic market and to key
global consumer markets (Europe, the CIS, China and
other Asian countries).
Efficient aluminium production, combined with
low-cost materials and power supply, secures
the Company’s global leadership on the cost curve.
Metals segment
Chinalco2
Hongqiano Group
RUSAL
Xinfra Group
Rio Tinto
SPIC
Emirates Global Aluminium
Vedanta
Alcoa
East Hope
7.8
2.2
2.2
2.4
2.7
2.9
3.3
3.7
4.0
6.5
Leading global aluminium
producers1, mt
Metals
segment
Power
segment
is represented
by RUSAL and its
business assets
primarily includes
energy assets
Power segment
4 Based on the Company’s internal data and peer companies’ publicly
available results, announcements, reports and other information.
5 The capacity is provided for Siberia only. The Company’s aggregate
capacity is 19.5 GW, including 15.2 GW of hydropower.
6 BEMO (Boguchanskaya HPP) is a strategic partner-operated 50/50
JV between UC RUSAL and a strategic partner.
7 According to the most recent reports.
8 Subsidiary of China Three Gorges Corporation.
9 A 21.08% stake is held by the state-owned China Three Gorges
Corporation.
En+ Group’s Power segment is Russia’s largest
independent power producer by installed capacity and
the world’s largest independent hydropower producer.
The Group’s generating assets are located in the East
Siberian and Volga regions of Russia. The Power
segment is engaged in every area of the power
business, including electricity and heat generation,
electricity, capacity and heat sales and heat distribution.
En+ Group maintained its position as the largest power
producer in Siberia, accounting for 36% of the region’s
installed capacity. Furthermore, 78% of the Group’s
capacity is represented by hydropower assets, affording
the Group utilisation priority over the regulatory range
of thermal power plants. In 2024, the Company’s
Siberian HPPs accounted for 61% of all electricity
generated by HPPs of the Siberian unified energy
system.
The key focus of the Power segment is to enhance
the generation of low-carbon power, further reducing
the Group’s overall carbon footprint and contributing
to its net zero by 2050 goal. As part of this effort,
the Group intends to build new HPPs and a wind farm,
and continues to implement its New Energy programme
focused on HPP upgrades along with the CHP upgrade
programme. These projects will also allow En+ Group
to strengthen its leading position in the industry.
Share of En+ Group in installed capacity
of the Siberian IES, by generation type
Competitive landscape in Siberia
by installed capacity4, GW
3.8
15.1
18.9
17.5
7.2
3.9
3.0
En+ Group5 SGK
RusHydro
Inter RAO
BEMO
project6
HPPs
CHPs
Top power companies by installed hydro
capacity globally7
71.8
8.4
6.4
13.0
15.2
6.9
21.3
22.5
27.7
31.3
37.5
42.3
CYPC8
Eletrobras
Hydro Quebec
RusHydro
Enel
EDF
SDIC Power
En+
Iberdrola
Verbund
EDP9
Engie Brasil
State-owned
Private
100%
95%
81%
99%
31%
18%
52%
78%
23%
95%
24%
67%
Share of hydropower
production
For more details, see the Investment
programme and modernisation section on
pages 70-73
25.4
59%
14%
1%
26.5
0.6
15.1
3.8
0.01
Siberian IES, GW
En+, GW
HPP
CHP
SPP
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
17
16
CONSOLIDATED REPORT 2024
Driving development
We finish another challenging year as the true
world leader in low carbon aluminium production,
the largest producer outside of China, responsible
for 5.9% of the total global aluminium production.
We also produce around 4.7% of the world’s alumina
and continue to be the largest independent producer
of hydropower in the world.
The past year has tested our resilience in many
ways. Economic uncertainty caused by geopolitical
tensions caused a high key interest rate, reduced our
access to borrowing and led to increased restrictions
imposed on Russian aluminium supply and trade.
Nevertheless, we’ve seen encouraging progress
as demand for low-carbon aluminium continues
to increase with 1,342 kt in sales of ALLOW, RUSAL’s
low-carbon aluminium brand with a сarbon footprint
of 2.3 CO2e (up from 1,300 kt in 2023), reflecting our
commitment to proper stewardship.
Statement from the Chairman
of the Board of Directors
Our Metals segment increased aluminium production
by 3.7% to 3,992 kt as Taishet, one of the most modern
aluminium smelters in the world, continues to increase
output. Meanwhile, alumina refining increased
by 25.3% to 6,430 kt due to our acquisition of a 30%
stake in China’s Hebei Wenfeng New Materials. With
the purchase of China’s Hebei Wenfeng New Materials,
self-sufficiency in alumina increased to 78% (65% last
year), and in bauxite and nepheline to 88% (from 85%).
The year also saw the aluminium price on the London
Metals Exchange (LME) increase by 7.4%. The price
of alumina, however, demonstrated record growth,
mainly due to interruptions in supplies of bauxite
causing the Metals segment was forced to announce
a temporary programme to reduce production. Even
in the face of such supply chain challenges, we adapted
and persevered.
In our Power segment operational performance
was stable: En+ Group’s power plants generated
90.7 TWh of electricity in 2024 (up 6.5%) and
hydropower output increased by 7.1%. Electricity
prices in the second price zone increased 21.2% over
the period.
Driving sustainable development
Sustainability remains fundamental to our
business strategy and long-term vision. The Group
is holding fast to its plans to achieve carbon neutrality
by 2050. In Q4 2024, our third carbon neutrality
report was presented to analysts, experts, and
investors. This report is not merely a document, but
a roadmap—a promise to future generations that
we take this matter seriously.
As part of the climate strategy En+ is working
on the issue of building new large HPPs and a wind farm
in the Amur Region. Additionally, we launched 19 new
charging stations for electric vehicles in 2024, bringing
the Company’s network of charging stations to 38.
I’m particularly pleased to share that our HPPs,
including large ones, are a low-carbon source
of electricity and this year En+ Group became the only
company in the country to receive international
certification for its HPPs. This required a review
of greenhouse gas emissions from the reservoirs
of the Angara Cascade of HPPs— Irkutsk, Bratsk and
Ust-Ilimsk using the methodology of the International
Energy Agency Guidelines for Quantitative Analysis
of Net GHG Emissions from the reservoir. The study
revealed an extremely low volume of emissions—
from 1.8 to 7 grams of CO2 per kWh, which is not only
lower than the emissions of other types of traditional
generation, but also lower than the average indicators
of the world’s boreal reservoirs.
RUSAL has verified greenhouse gas emissions from
the production of its products. The assessment
of the indicators was carried out by a division
of TÜV AUSTRIA Standards & Compliance, one
of the world’s leading providers of certification,
testing, inspection and verification services. According
to the analysis, 100% of the metal produced by RUSAL
has greenhouse gas emissions of less than 4 tonnes
of CO2e per tonne of aluminium for Scopes 1 and 2,
which meets the criterion for aluminium with a low
carbon footprint from leading international analytical
agencies such as Fastmarkets and S&P Global.
I’d like to highlight a significant achievement: some
910 tonne of aluminium with a carbon footprint
of 0.01 CO2e was produced this year using inert
anode technology and industrial implementation
of this technology will allow the Metals segment
to maintain its leadership in international markets
as the largest producer of primary aluminium with a low
carbon footprint.
RUSAL has also become the first international company
to undergo China’s Green Power Aluminium (GPA)
certification process. Three plants have confirmed their
compliance with the regulatory standards set under
the GPA initiative.
Also driving sustainable development
of its product range, RUSAL implemented
a pilot project at the Volgograd Aluminium
Smelter (VgAZ) to recycle scrap and use
it in the production of cylindrical ingots.
Increasing scrap recycling allows for an expansion
of the portfolio of products with a low carbon
footprint and is one of RUSAL’s strategic goals.
Our commitment to environmental protection
extends beyond our operations. To protect
the area of En+ Group’s responsibility, the Baikal
Plastic Free Alliance, founded by En+, conducted
its second expedition in 2024 to lift sunken plastic
fishing gear from the lake’s bed. During the week-
long expedition, more than 4 km of nets were
lifted, along with 400 kg of other waste, including
a quadcopter, camera lens, anchor, rubber mats,
metal and plastic dishes.
Driving ratings
We are pleased to report that in 2025,
the Chinese rating agency ССGFX assigned
an ESG rating to En+ at the level of “A-”.
In a world increasingly conscious of environmental
and social governance, such ratings are not just
mere letters, but powerful indicators of our
commitment to responsible business practices.
The rating was assigned based on an analysis
of 17 key indicators of En+ Group in the area
of environmental, social responsibility, and
corporate governance. In almost all aspects
the Company exceeded the industry average.
The Group also achieved ESG Rating “A” from the
national rating agency “Expert” (recognising a very
high level of compliance with interests in the field
of sustainable development).
Christopher Burnham
Chairman of the Board, En+ Group
Driving our future
I should like to pay tribute
to the commitment and determination
of our employees during this period.
The higher cost of equipment and longer
delivery lead times, as well as a shortage
of personnel in most sectors of the economy
had a significant effect on the activities
of En+, yet the Company has continued
to demonstrate determination, flexibility
and resilience, relying on the strengthening
of raw material independence.
STRATEGIC REPORT
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FINANCIAL STATEMENT
APPENDICIES
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CONSOLIDATED REPORT 2024
The year 2024 presented En+ Group with a number
of challenges, the resolution of which impacts
the Company’s development. Geopolitical environment,
economic volatility, and continued tight monetary
policy all posed serious tests for our operations during
the past year. However, through the coordinated
and professional efforts of our management team,
combined with the resilience of our business model
and consistent human resources policy, the Company
maintained stability and sustainability, achieved positive
financial and operational results, and outlined key areas
of work for the future.
We consider it essential to strengthen Russia’s domestic
market by providing reliable and affordable electricity
and collaborating with domestic equipment suppliers.
Simultaneously, we continue to foster relationships
with foreign partners, developing new mutually
beneficial connections, proposing joint projects, and
implementing them successfully.
Statement from the Chief
Executive Officer
The past year was marked by significant achievements
across various areas of the Group’s operations. In our
Power segment, three new power units are currently
under construction at CHP-11 in the Irkutsk Region.
These units are vital for addressing the region’s capacity
deficit, ensuring power supply to existing consumers,
and connection of new ones. Investments in this project
will amount to at least RUB 150 billion, and we are fully
committed to completing it on schedule.
En+ Group remains dedicated to the development
of Russia’s hydropower industry, which we believe
will contribute substantially to a sustainable economy
and the achievement of net zero emissions. In 2024,
En+ Group and the Government of the Republic
of Buryatia signed a cooperation agreement
to implement the Moksky hydropower complex
construction project, which includes two HPPs
on the Vitim River with potential capacities of 1,200
and 210 MW. In the meantime, the modernisation
of the Company’s existing HPPs as part of the New
Energy Programme continues. In 2024, we completed
the first stage of the Irkutsk HPP upgrade and replaced
one runner each at the Bratsk and Krasnoyarsk HPPs.
Through this programme, we have already increased
low-carbon generation by 2.5 billion kWh and prevented
the GHG emissions of over 2.9 mt of CO2e.
The Group’s Metals segment also demonstrated
impressive results. In 2024, RUSAL professionals
successfully baked and launched an industrial
electrolyser using inert anodes, making a breakthrough
in this technology and bringing its full-scale
implementation closer to reality. Combined with
green energy from our HPPs, this technology enables
aluminium production with an unprecedentedly low
carbon footprint. RUSAL has also entered the next
phase of modernisation at its Siberian aluminium
plants and has begun constructing new workshops
at aluminium smelters in Krasnoyarsk and Bratsk.
En+ Group remains a systemically important company
and a key partner in many regions of Siberia, which
makes it imperative for us to improve living conditions
and the overall quality of life in these areas. To this
end, we are building sports centers, cultural and social
facilities in our areas of responsibility, promoting
healthcare and education, and renovating major urban
attractions and public spaces. In 2024, our social
investments exceeded RUB 7.0 billion.
The Company continues to prioritise human resources
development, an issue that currently affects all sectors
of the Russian economy without exception. To educate
future generations of power engineers, metallurgists,
and miners, the Company implements a comprehensive
range of educational programmes that meet modern
requirements. I am confident that our strategies will
enable us to build a well-qualified talent pool to serve
Russia’s future needs.
We are one of the largest employers, with over
90,000 people working in our operations in Russia
and abroad, and we take responsibility for their
well-being and that of their families. The company
fulfills all its obligations to support its employees:
salaries are regularly indexed, and we provide meal
allowances, medical insurance, and mortgage and
housing programmes.
To summarise, we have successfully navigated
the challenges of 2024 and set ourselves clear
achievable goals for the future. In a world
of constant change, we serve as a model
of adaptability and sustainability, continually
seeking new opportunities for growth. I would
like to highlight the outstanding professionalism,
accountability and innovative problem-
solving demonstrated by our management
and employees. I extend my sincere thanks
to the entire team for their dedication to achieving
our goals. Special gratitude goes to shareholders,
partners and employees for their trust and
support during these challenging times. I am
confident that our collective dedication, expertise,
knowledge and ambition will enable us to meet
every challenge and continue our progress.
The year 2024 presented
En+ Group with
a number of challenges,
the resolution of which
impacts the Company’s
development.
Vladimir Kolmogorov
Chief Executive Officer
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
21
20
CONSOLIDATED REPORT 2024
Metals
segment
Power
segment
Business model
22.0 mtpa
Total bauxite capacity
10.4 mtpa
Total alumina capacity1
727.2 mn m³
Water consumption
USD 311 mn
Pension plan payments
USD 1,848 mn
Employee wages, including
total retirement costs
USD 2.2 bn
Market capitalisation
USD 2.9 bn
Adjusted EBITDA
19.5 GW
Total installed electrical
capacity
4.2 mtpa
Aluminium capacity2
USD 27.5 bn
Total assets
USD 1.9 bn
Capital expenditure
1
RUSAL attributable capacity.
2 Excluding Boguchany Aluminium Smelter (BoAZ), a joint 50/50 project
of RUSAL and strategic partner. Ten aluminium smelters in operation
(ALSCON in Nigeria is mothballed).
>100
Professional training and
development programmes
for En+ Group employees
USD 24.8 mn
R&D expenses
~93,000
Employees on 5 continents
74%
Employee satisfaction
A(RU) “Stable”
Credit rating
A-
ESG rating
Natural
Employees
Shareholders and
investors
Productive
Financial
Intellectual
Production
Human
Social and
reputational
For more details
on value creation, see pages 84-85,
on stakeholder engagement, see pages 86-89,
on key risks, see pages 186-193,
on strategy, see pages 24-27
1.3 mt
Of low-carbon ALLOW
aluminium sold
4.17 of 5
Average customer
satisfaction score
USD 76 mn
Social investments
USD 495 mn
Mandatory payments to
governments
Customers
Local communities
and NGOs
80.2%
Share of purchases from
local suppliers
Suppliers
Allow
Maximising efficiency
Ensuring a stable financial
situation
Committing to sustainability
Increasing
capacity
Driving
innovation
Strategy
5
4
1
2
3
15.9
mt
Bauxites
3.6
mt
Nephelines
6.4
mt
Alumina
3.9
mt
Aluminium
3.9
mt
Aluminium
1.4
mt
Value-added products
73.7
TWh
Hydropower
26.3
mn Gcal
Heat
16.9
TWh
Thermal energy
163.2
GW
Sales of capacity
Sales
Capital
Value for stakeholders
Output
SASB: IF-EU-000.D, IF-EU-000.C
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
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22
CONSOLIDATED REPORT 2024
Strategy
The Group’s strategy is focused on leading the Company
to become the world’s foremost vertically integrated
producer of high-value-added products made from
low-carbon aluminium by utilising self-produced renewable
energy and raw materials.
We maintain our commitment to the Group’s sustainable
development strategy by enhancing manufacturing
technology and modernising assets, simultaneously aiming
to boost the production of cost-efficient aluminium, which
will have a positive impact on our profit margins, financial
stability, and debt burden.
Strategic priorities
and global trends (#)
Strategic objectives
2024 Highlights
Reference
to UN SDGs
and national
development goals
1
Maximising
efficiency
#localisation
of production
#decarbonisation
Vertical integration to secure a supply
of raw materials
The Company prioritises achieving self-
sufficiency in raw materials. The Metals
segment is therefore committed
to the following objectives:
• Return to at least 100% self-
sufficiency in alumina for aluminium
production
• Achieve 100% self-sufficiency
in anodes for aluminium production
• Attain at least 100% and 80%
self-sufficiency in flux and master
alloys, respectively, for aluminium
production
By using self-generated hydropower
in the aluminium smelting process,
we not only generate income
for the Power segment by providing
steady baseload demand for electricity
but also effectively reduce the carbon
footprint of primary aluminium
production as almost 100% of energy
used for smelting is renewable.
>90%
of energy used
in aluminium smelting
is the Company’s own
hydropower supply
88%
1
Self-sufficiency
in bauxites and
nephelines
~78%
1
Self-sufficiency
in alumina
3 4
Production cost savings
To cut production costs, the Company
aims to achieve independence from
external raw material suppliers and
strategically positions aluminium
smelters near HPPs, capitalising on cost
savings from location synergies.
En+ Group is dedicated to enhancing
operational efficiency through digital
transformation initiatives and robust
business system integrations.
USD 10,216 mn
Total cost of sales
USD 128.5 mn
Total economic
benefit from
the implementation
of business system
projects
5
Strategic priorities
and global trends (#)
Strategic objectives
2024 Highlights
Reference
to UN SDGs
and national
development goals
Higher profitability
The Metals segment is prioritising
the expansion of high-value-added
product (VAP) capacity. The Aluminium
Division is actively expanding its VAP
capacity to offer more products like foil,
powders, extrusions, and aluminium
wheels.
1,422 kt
VAP sales volumes
10.9 kt
Volume of processed
secondary alloys
2
Increasing
capacity
#energy transition
#decarbonisation
Aluminium capacity expansions
The Group is consistently growing
its aluminium capacity:
• In 2024, all electrolysers of the first
series were put into operation at
the Taishet Aluminium Smelter,
and commercial products are being
manufactured.
• Currently, the Company is planning
for the second stage of Taishet
and Boguchany Aluminium Smelter
projects
5
Ramp-up of renewable generation
capacity
The Company is actively pursuing
the development of new renewable-
energy facilities, including:
• new HPP projects
• solar capacity additions
• a wind farm project
The New Energy programme
for upgrading hydro capacity is also
underway, aimed at boosting plant unit
reliability and overall generation levels.
2.2 GW
Aggregate capacity
of new hydro projects
2.4 billion kWh
Additional generation
through the New Energy
programme starting
from 2026
1 GW
Potential capacity
of the wind farm
4
1
Taking into account the shutdown of alumina production at the Nikolaev Alumina Refinery and the Australian Government’s ban on exporting alumina and aluminium
ores to Russia. Taking into account the acquisition of a 30% interest in an alumina plant Hebei Wenfeng New Material Co., ltd., located in China.
National development goals:
Preservation of the population,
strengthening health and
improving the well-being
of people, supporting families
Self-fulfilment of each person, unlocking
their talents, and educating a patriotic
and socially responsible person
Comfortable
and safe living
environment
1
2
3
Ecological
well-being
Sustainable and dynamic
economy
Technological
leadership
4
5
6
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
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24
CONSOLIDATED REPORT 2024
Strategic priorities
and global trends (#)
Strategic objectives
2024 Highlights
Reference
to UN SDGs
and national
development goals
3
Ensuring a stable
financial position
#sustainable finance
En+ Group remains focused on adapting
to evolving circumstances and external
influences, aiming to maintain robust
liquidity and a solid financial standing.
USD 14,649 mn
Revenue
USD 2,927 mn
Adjusted EBITDA
20%
Adjusted EBITDA
margin
5
4
Driving innovation
#energy transition
#automation and
robotics
Advancing and scaling aluminium and
alloy production technologies
Key focal points in the Group’s
technology portfolio are refining
our proprietary RA-550 aluminium
production cells, priming our inert
anode technology for commercial use,
and scaling production technology
for aluminium-scandium alloy-based
VAPs.
0.01
t of CO2e per
t of aluminium
GHG emissions per
tonne of aluminium
(Scope 1 and 2)
produced with inert
anode technology
5 6
Driving renewable technology
innovation
The Company’s Power segment R&D
projects include research into tandem
perovskite solar panels, energy storage,
green hydrogen transport.
Strategic priorities
and global trends (#)
Strategic objectives
2024 Highlights
Reference
to UN SDGs
and national
development goals
5
Committing
to sustainability
#energy transition
#decarbonisation
#circular economy
#tougher competition
for talent
#creating an inclusive
environment
#increasing social
responsibility
of business
Achieving carbon neutrality
The Company has set climate targets
to achieve net-zero emissions by 2050
and to reduce greenhouse gas (GHG)
emissions by at least 35% by 2035 (from
a 2018 baseline). We have also unveiled
a detailed roadmap to achieve carbon
neutrality.
66.6
mt of CO2e
Total GHG emissions
(Scope 1, 2, and 3)
5
Mitigating our environmental impact
To eliminate or mitigate
its environmental footprint across
all businesses, En+ Group is strongly
focused on driving R&D, adopting best
available technology, and investing
in modernisation.
USD 212.3 mn
Total environmental
protection spending
3 4
Human capital development
En+ Group’s key HR objectives
are to recruit and retain highly skilled
talent, boost employee engagement,
and provide a supportive working
environment with attractive working
conditions that foster professional
growth among our people and promote
the well-being of their families.
16.8%
Employee turnover
2
Positive contribution
to the development of our
responsibility regions
En+ Group’s social investments
are directed towards enhancing public
health, facilitating opportunities
for physical activity, ensuring equal
access to high-quality and innovative
education, developing accessible
infrastructure, and providing support
to individuals facing challenging
circumstances.
USD 76 mn
Social investments
1
Providing safe work environment
Safety is our absolute priority
in everything we do. En+ Group
is committed to ensuring a safe working
environment for its people, contractors,
and partners
0.84
Lost Time Injury
Frequency Rate (LTIFR)
per 1 million man-hours
worked
1
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
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26
CONSOLIDATED REPORT 2024
Business review
Metals segment
Market overview
Global demand for aluminium1
In 2024, the worldwide economic landscape
faced persistent inflation challenges,
increasing interest rates, ongoing trade
wars, swift consumption growth in China’s
green industries, a slow rebound in European
production, and rapid production growth
in the US. In addition , in 2024 decarbonisation
accelerated on the back of the adoption
of stricter international standards
for greenhouse gas emissions, rising consumer
demand for sustainable products and
the increasing importance of environmental,
social and governance (ESG) criteria.
Thus, consumption rates in the global aluminium
market saw further growth. In 2024, global aluminium
consumption amounted to 72.6 mt, which is 3.1%
higher year-on-year. China’s consumption rose
to 45.1 mt, a 5.0% increase from the previous year.
The achievement was made possible by governmental
support initiatives that aimed to speed up economic
development, which in turn fostered an increase
in aluminium demand. As for aluminium consumption
in the rest of the world (outside China), there
was a slight increase of 0.5% year-on-year to 27.5 mt
in 2024. Demand growth intensified in the second half
of 2024 and was recorded in all aluminium consumption
areas, but stronger growth was seen in construction,
packaging and electricity.
The automotive industry remains the main consumer
of aluminium (25.6% of total aluminium consumption).
Although the production of automobiles declined
by 1.6% in 2024, aluminium consumption continued
to grow, driven by the increasing adoption of electric
vehicles. The electric vehicle market is expanding
due to stricter emission standards, government
incentives and advances in battery technology.
In addition, the development of charging station
infrastructure and increasing consumer demand
for sustainable transport is accelerating this growth.
This has been largely due to the production of electric
vehicles. According to Rho Motion, a leading electric
vehicle research company, global sales of electric
vehicles in 2024 grew 25% from 2023. The Chinese
automotive industry accounts for a significant
portion of this growth, rising by 36% year-on-year.
This was significantly influenced by plug-in hybrid
electric vehicles (PHEVs), which surged by 81%,
while the battery electric vehicle (BEV) segment only
increased by 19%. Increasing demand for range-
extended electric vehicles (REEVs) played a significant
role in the growth of PHEVs in China, although this
technology is yet to be widely adopted in Western
markets.
The construction industry remains the second largest
consumption sector, accounting for 19.9% of global
aluminium consumption. Signs of a slowdown
in China’s construction sector first became evident
in 2022, as the industry grappled with decreased
investment levels, stalled construction projects, and
a weakening real estate market leading to a long-
term reduction in the demand for aluminium.
By 2024, the risk of deflation in China intensified,
which prompted the government to take measures
to prevent a further decline in the construction sector.
Despite the government’s best efforts, aluminium
consumption in China’s construction sector again
fell by 4.8%. Globally, aside from China, the outlook
appeared more positive as the year concluded.
The global construction industry showed the first signs
of recovery in the second half of 2024, as interest rates
72.6 mt
Global aluminium consumption in 2024,
+3.1% y-o-y
began to fall, which reduced the cost of borrowing
and encouraged new investment. This shift helped
stabilise aluminium demand in regions such
as North America and Europe, where infrastructure
modernisation and sustainable construction projects
increased.
Aluminium consumption in the packaging sector
in 2024 grew to 16.4% of global consumption
resulting from the expansion of production facilities,
the launch of new plants and high consumer demand.
Furthermore, a growing consciousness about
environmental issues among consumers, along with
more stringent regulations in the EU, US, and various
other nations targeting the reduction of plastic
waste, led to a rise in the use of aluminium. High-end
cosmetic and beverage brands are progressively
adopting aluminium packaging to enhance their
eco-friendliness and brand perception.
The electrical engineering sector also showed strong
growth in 2024, accounting for 16.3% of global
aluminium consumption. In its September 2024 analysis,
Ember estimated that the total capacity of solar panels
installed around the globe would amount to 593 GW
by year-end. This marks a 29% rise compared to last
year’s installations, maintaining robust growth following
an 87% surge in 2023. This growth is in line with global
investment in energy infrastructure, which, according
to the International Energy Agency (IEA), exceeded
USD 2 trillion, with investment in green energy covering
renewables, electric vehicle infrastructure and energy
storage, for the first time ever reaching double the level
of funding for fossil fuels. With an impressive investment
of USD 675 billion, China topped the worldwide
green energy funding competition, while Europe and
the United States followed with USD 370 billion and
USD 315 billion, respectively.
Global aluminium supply
The worldwide supply of primary aluminium was up
2.5% year-on-year to 72.6 mt in 2024. Production
in the rest of the world (excluding China) increased
by 1.0% to 29.4 mt, driven by production restarts and
capacity expansions in South America and India.
Aluminium production in China in 2024 rose by 3.8%
year-on-year to 43.2 mt. With aluminium production
capacity in China already peaking at 45 mt, further
growth will be limited. By end-2024, the Chinese
manufacturing sector posted net capacity additions
of about 1.8 mt to 43.9 mt, taking into account new
capacity additions totalling 0.43 mt and the restarts
of production suspended earlier (1.87 mt). China’s
aluminium production capacity reached 45.4 mt
by the end of 2024 (excluding illegal capacity).
In 2024, China exported an unprecedented amount
of unwrought aluminium and alloys, surpassing figures
from the prior year, driven by robust export arbitrage
beyond its borders to other countries. The year 2024
marked a 17.2% year-on-year increase in China’s exports
of unwrought aluminium, alloys, and semi-processed
metals, amounting to 6.66 mt. However, the removal
of VAT refunds on the majority of aluminium exports
by the Chinese government, effective 1 December
2024, is likely to result in an exports decline
in the future. The imports of unwrought aluminium and
alloys by China in 2024 grew dramatically by 25.2%
year-on-year, achieving a total of 3.4 mt. That being
said, the cancellation of VAT refunds on Chinese
aluminium products significantly increased the negative
arbitrage on imports of unwrought aluminium by China.
In the coming years, the growth in aluminium imports
will depend on the growth in domestic consumption
and aluminium prices on the Chinese domestic market.
1
Unless otherwise stated, data sources for this section include Bloomberg, CRU, CNIA, IAI and Antaike.
STRATEGIC REPORT
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FINANCIAL STATEMENT
APPENDICIES
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CONSOLIDATED REPORT 2024
Operational performance
SASB EM-MM-000.A
Aluminium
RUSAL owns eleven2 aluminium smelters located
in three countries: Russia (nine plants), Sweden
(one plant), and Nigeria (one plant). The Company’s
core operating assets are located in Siberia, Russia,
accounting for approximately 94% of the Company’s
total aluminium output in 2024. Among those, BrAZ
and KrAZ collectively represent over half of the Metals
segment’s aluminium production. The Company also
holds an 85% stake in a Nigeria-based smelter.
Throughout 2024, the Metals segment continued
to implement a comprehensive programme to control
costs and streamline operating processes, reinforcing
the Company’s position as one of the world’s most
cost-efficient aluminium producers.
The Group’s primary aluminium production for the year
ended 31 December 2024 increased to 3,992 kt
compared with 3,848 kt in 2023. The output
growth by 3.7% was due to the commissioning of all
electrolysers of the first start-up complex at Taishet
Aluminium Smelter. In 2024, VAP sales were 1,422 kt
out of total sales of 3,859 kt.
Alumina
As of the end of 2024, the Group owned eight3 alumina
refineries. They are located in five countries: Ireland
(one plant), Jamaica (two plants, one legal entity), Italy
(one plant), Russia (four plants), and Guinea (one plant).
In addition, RUSAL holds a 20% stake in Queensland
Alumina Ltd. (QAL), an Australia-based alumina refinery,
and a 30% stake in Wenfeng, a China-based alumina
refinery.
In 2024, total alumina production by the Metals
segment increased by 25.3% year-on-year to 6,430 kt
compared with 5,133 kt in 2023. This production
increase was due to the acquisition of a 30% stake
in Hebei Wenfeng New Material Co., ltd. in China.
Aluminium production, kt
Alumina production4, kt
3,581
134
‘22
‘23
‘24
120
3,602
126
119
3,761
122
109
3,835
3,848
3,992
Russia (Siberia)
Russia (other than Siberia)
Other countries
3,992
kt
1,629
422
‘22
‘23
‘24
300
1,383
456
3,022
1,740
435
1,075
5,953
5,133
6,430
3,080
340
182
273
2,841
338
Ireland
Jamaica
Ukraine
China
6,430
kt
Russia
Guinea
Australia (JV)
2 Ten aluminium smelters are in operation now (Alscon in Nigeria has been mothballed).
3 Seven alumina refineries are in operation now (Eurallumina in Italy has been mothballed).
4 Pro-rata share of production attributable to the Group.
1
According to the London Metal Exchange.
LME aluminium price performance1, USD/t
1,000
1,500
2,000
2,500
3,000
Jan
2023
Mar
2023
May
2023
July
2023
Nov
2023
Jan
2024
Feb
2024
Apr
2024
June
2024
Aug
2024
Sept
2024
Oct
2024
Dec
2024
In the second half of 2024, following a rise amid high
trading volatility in the first half of the year, aluminium
inventories at the London Metal Exchange trended
downwards until mid-December, but then jumped
by 560 kt to 1.128 mt towards the end of May 2024
gradually returning to the level of 635 kt by the end
of 2024. The volume of metal stored outside
of LME-approved warehouses (reported off-warrant
stocks) fluctuated throughout 2024 and by the end
of November dropped by 111 kt to 325 kt.
Overall, regional aluminium premiums mostly
increased by the end of 2024 on the back of a recovery
in consumption growth outside China in the second
half of 2024, the threat of import duties from
the US and the removal of China’s export tax credit.
As a result, Chinese exports of semi-finished products
saw a decrease in December, which may cause a drop
in the delivery of aluminium semi-finished items to Asian
regions shortly.
In December 2024, the US Midwest aluminium
premiums rose by about 2.2 cents per pound to 23.4
cents per pound and continue to grow in Europe amid
wide contango, potential sanctions against Russia-
sourced aluminium and risks of US import duties.
By end-2024, the European P1020 duty unpaid
premium in-warehouse Rotterdam was USD 307 per
tonne. Asian premiums rose sharply in the second half
of 2024. The Japanese premium reached USD 220
at year end against the backdrop of growing regional
premiums and a potential short-term supply deficit
in the Asian region.
Metals segment
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
31
30
CONSOLIDATED REPORT 2024
Foil production, kt
Wheel production, thousand wheels
70.1
41.2
‘22
‘23
‘24
81.4
29.2
75.0
22.9
111.3
110.6
97.9
For domestic market (Russia and CIS)
For exports
97.9
kt
‘22
‘23
‘24
1,667
2,346
3,080
3,080
thousand wheels
Metals segment
Downstream projects
Foil and packaging
In 2024, the Group’s foil production volume was 97.9 kt,
a decrease of 12.7 kt, or 11.5%, against 2023.
The output at RUSAL SAYANAL declined by 9.31 kt,
or 21.1%, against 2023 due to increased production
at the new construction tape line and the converting
(coated foil) shop. The production at RUSAL Armenal
decreased by 3.72 kt (or 13.94% against 2023)
due to a lower share of exports and substitution with foil
produced domestically in Russia.
Wheel business
In 2024, the aluminium wheels market continued
its recovery after the 2022 crisis and showed a 37%
growth. The main driver was the original equipment
manufacturer (OEM) market that experienced a 61%
growth, while supplies to the aftermarket (AM) segment
increased by 24%.
Wheel output surged by 31.3% in 2024
to 3,080 thousand wheels, propelled by the recovery
of the aluminium wheels market after the 2022 crisis.
In 2024, SKAD continued its 2023 efforts to increase
its share of the primary sales channels, boosting
its sales through the OEM channel by 58% year-on-
year and through the AM channel by 9% year-on-year.
Other businesses
Secondary alloys
The amount of dross and aluminium-containing waste
recycled into secondary aluminium increased by 4 kt,
or 58%, in 2024 compared to the previous year.
Silicon production
Silicon output in 2024 rose by 4.1% to 53.0 kt
compared to 2023.
Other mining assets
The mining portfolio of the Metals segment encompasses
15 mines and mining complexes, including bauxite
operations, two quartzite mines, one fluorite mine, two
coal mines, one nepheline syenite mine, and two limestone
mines.
The Company’s long position in alumina capacity
is supported by its bauxite and nepheline syenite
resource base.
The Company jointly owns two coal mines with Samruk-
Energy, the energy division of Samruk-Kazyna from
Kazakhstan, through a 50/50 joint venture, Bogatyr
Coal LLP.
Bogatyr Coal LLP
Bogatyr Coal LLP, located in Kazakhstan. In 2024,
the company produced approximately 42.7 mt of coal.
As of 31 December 2024, Bogatyr Coal LLP held coal
reserves across layers 1, 2, and 3 totalling 1,929 mt.
Bogatyr Coal LLP recorded sales of approximately
USD 287 million in 2023 and USD 294 million
in 2024. Russian and Kazakh customers account
for approximately 22% and 78% of coal sales,
respectively.
1
Taking into account the shutdown of alumina production at Nikolaev Alumina Refinery and the Australian Government’s
ban on exporting alumina and aluminium ores to Russia. Taking into account the acquisition of a 30% interest
in an alumina plant Hebei Wenfeng New Material Co., ltd., located in China.
2 The bauxite output data: 1) were calculated based on a pro-rata share of the Company’s interest in the corresponding
bauxite mines and mining complexes; 2) include the total production volume by the Company’s fully consolidated
subsidiary, Bauxite Company of Guyana Inc., notwithstanding that minority interests in all similar subsidiaries are held
by third parties; 3) are reported as wet weight (including moisture).
3 Pro-rata share of production attributable to the Group.
Bauxites and nephelines
Bauxites and nephelines are essential raw materials
for alumina production. In 2024, the Group was 88%1
self-sufficient in bauxites and nephelines.
Bauxites
The Group operates seven bauxite mines. The Metals
segment’s bauxite mines are located in four countries:
Russia (two mines), Jamaica (one mine), Guyana (one
mine), and Guinea (three mines). The Company’s robust
raw material base helps it secure sufficient supply
for prospective expansion of its alumina production
capacity. In addition, the Group sells bauxites to third
parties.
Bauxite production3, kt
1,631
5,780
‘22
‘23
‘24
4,909
1,616
6,181
5,579
1,592
5,474
8,818
12,319
13,376
15,885
Jamaica
Russia
Guinea
15,885
kt
The Group’s total attributable bauxite output2
was 15,885 kt in 2024 (against 13,376 kt in 2023).
An 18.8% increase in the output for 2024
was driven primarily by capacity expansion projects
at Compagnie des Bauxites de Kindia (CBK) and
Dian-Dian facilities.
Nephelines
The Metals segment’s total nepheline syenite
production was 3,650 kt in 2024 as compared with
4,519 kt in 2023. The 19.2% decrease in output
was driven by the need to meet the nepheline ore
demand of the consumer plant.
Nepheline mines (Achinsk), kt, wet
‘22
‘23
‘24
4,363
4,519
3,650
3,650
kt
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
33
32
CONSOLIDATED REPORT 2024
1
Production and operational data in this section are derived from https://nornickel.ru.
Norilsk Nickel maintains diversified metal sales across
various regions. Meanwhile, in 2024, the proportion
of sales to Asia and Russia rose compared to 2023,
whereas sales to Europe, Middle East, Africa, North
America, and South America saw a decline.
As of 31 December 2024, the market value of RUSAL’s
investment in Norilsk Nickel stood at USD 4,582 million,
representing a decrease compared to the market
value as of 31 December 2023 (USD 7,273 million).
The decline in the value of Norilsk Nickel is driven by,
firstly, continuing external pressure (high geopolitical
tension, imposition of economic restrictions against
Russia by several countries, lower prices for key
metals) and, secondly, an increase in the key rate
of the Bank of Russia (which has led, on the one hand,
to higher interest expenses, and, on the other hand,
to a revaluation of the entire stock market in Russia).
26.39%
RUSAL’s shareholding in Norilsk Nickel
USD 4,585 mn
Market value of RUSAL’s investment
in Norilsk Nickel as of 31 December 2024
205 kt of nickel
Norilsk Nickel produced in 2024
Investment in Norilsk Nickel
Norilsk Nickel is the world’s largest producer
of palladium and high-grade nickel and one
of the leading producers of platinum, copper,
and cobalt. As of the most recent reporting
date, RUSAL held a 26.39% shareholding
in Norilsk Nickel.
RUSAL’s shareholding in Norilsk Nickel allows
for significant earnings diversification through Norilsk
Nickel’s exposure to platinum group metals and
non-ferrous metals (nickel, copper, and cobalt) and
broadens RUSAL’s strategic prospects.
Norilsk Nickel’s profile and financial
performance1
As of 31 December 2024, Norilsk Nickel’s resource
base on the Taimyr Peninsula and Kola Peninsula
consisted of 1,267 mt of proved and probable ore
reserves and 1,869 mt of measured and indicated
mineral resources. Its primary assets are situated
in Russia (Norilsk Industrial District, Kola Peninsula,
Trans-Baikal Territory) and in Finland.
In 2024, Norilsk Nickel produced 205 kt of nickel
(a 2% decrease year-on-year), 433 kt of copper
(a 2% increase year-on-year), 2,762 koz of palladium
(a 3% increase year-on-year), and 667 koz
of platinum (a 0.5% increase year-on-year).
According to the production report of PJSC MMC
Norilsk Nickel for 2024, the following main factors
that influenced the change in production can be
outlined. The slight decrease in nickel production
in 2024 was mainly due to the temporary shutdown
of the flash smelting furnace (FSF-2) at Nadezhdinski
Metallurgical Plant for scheduled capital repairs.
As a result of the complete reconstruction of FSF-2,
its productivity increased by 25%. The slight increase
in other metals production was mainly due to the low
base in 2023.
Metals segment
BEMO project
The Boguchany Energy and Metals Complex (BEMO)
project involves the construction of the 3,000-MW
Boguchany HPP (with a projected average annual
electricity output of 17.6 billion kWh) and Boguchany
Aluminium Smelter (BoAZ), capable of producing
600 kt of metal per annum, in the Krasnoyarsk
Territory in Siberia.
BoAZ was constructed in two stages, each
designed to produce 298 kt of aluminium annually.
The initial segment of the first stage, producing
149 kt of aluminium annually with 168 electrolysers,
was launched in 2015. Subsequently, the second
segment of the first stage came online in March 2019.
In May 2019, the first stage of the smelter reached
its design capacity. In 2024, production of aluminium
and alloys reached 301.2 kt, marking an increase
of 1.3 kt year-on-year.
The potential construction of the second stage
of the BoAZ will be considered jointly with the strategic
partner, contingent upon market conditions and project
funding availability.
The project’s composite gravity rock-fill dam
was completed at the end of 2011, and nine 333-MW
hydropower units of Boguchany HPP commenced
operation between 2012 and 2014. The total installed
capacity of all nine operating hydropower units amounts
to 2,997 MW.
Acquisition of a stake
in an alumina refinery
In April 2024, the Group completed
the acquisition of a 30% stake in Hebei
Wenfeng New Materials Co., Ltd.,
an alumina refinery located in China.
The transaction amounted
to USD 316 million. The transaction
strengthened the Company’s raw
material security, reducing risks
in the area of critical raw material
supply.
The hydropower plant started commercial electricity
supply to the wholesale electricity and capacity market
on 1 December 2012. In 2024, the plant produced
and supplied 20,260 million kWh of electricity
to the wholesale electricity and capacity market,
marking a 1.7% increase of 336 million kWh compared
to 2023.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
35
34
CONSOLIDATED REPORT 2024
Assets overview
Location
Installed capacity
2023 production
2024 production
Capacity
utilisation rate
(%)
Aluminium smelters
Bratsk Aluminium
Smelter
Russia (Irkutsk Region)
1,009 ktpa
1,005 kt
1,002 kt
99%
Krasnoyarsk Aluminium
Smelter
Russia (Krasnoyarsk
Territory)
1,019 ktpa
1,014 kt
1,015 kt
100%
Sayanogorsk Aluminium
Smelter
Russia (Republic
of Khakassia)
542 ktpa
538 kt
531 kt
98%
Novokuznetsk Aluminium
Smelter
Russia (Kemerovo
Region)
215 ktpa
204 kt
196 kt
91%
Khakas Aluminium
Smelter
Russia (Republic
of Khakassia)
297 ktpa
304 kt
307 kt
103%
Irkutsk Aluminium
Smelter
Russia (Irkutsk Region)
422 ktpa
425 kt
423 kt
100%
Taishet Aluminium
Smelter
Russia (Irkutsk Region)
428 ktpa
112 kt
288 kt
67%
Kandalaksha Aluminium
Smelter
Russia (Murmansk
Region)
76 ktpa
57 kt
54 kt
71%
Volgograd Aluminium
Smelter
Russia (Volgograd
Region)
69 ktpa
69 kt
68 kt
98%
KUBAL
Sweden
128 ktpa
119 kt
109 kt
85%
ALSCON1
Nigeria
–
–
–
0%
Boguchany Aluminium
Smelter2
Russia (Krasnoyarsk
Territory)
292 ktpa
300 kt
301 kt
100%
Metals segment
1
Mothballed.
2 A 50/50 joint venture between the Metals segment and RusHydro. The capacity and production volumes
of the BEMO project are not included in the Company’s consolidated operational data.
Location
Installed capacity
2023 production
2024 production
Capacity
utilisation rate
(%)
Alumina refineries
Achinsk Alumina Refinery
Russia (Krasnoyarsk
Territory)
1,069 ktpa
872 kt
701 kt
66%
Bogoslovsk Alumina
Refinery
Russia (Sverdlovsk
Region)
1,030 ktpa
988 kt
977 kt
95%
Urals Alumina Refinery
Russia (Sverdlovsk
Region)
900 ktpa
918 kt
920 kt
102%
PGLZ Alumina Refinery
Russia (Leningrad
Region)
265 ktpa
244 kt
243 kt
92%
Friguia Alumina Refinery
Guinea
650 ktpa
273 kt
338 kt
52%
Queensland Alumina Ltd.3
Australia
3,950 ktpa
–
–
0%
Eurallumina1
Italy
1,085 ktpa
–
–
0%
Aughinish Alumina
Refinery
Ireland
1,990 ktpa
1,383 kt
1,740 kt
87%
Windalco
Jamaica
1,210 ktpa
456 kt
435 kt
36%
Wenfeng
China
4,800 ktpa
–
1,075 kt
22%
Bauxite mines
Timan Bauxite
Russia (Komi Republic)
3,500 ktpa
3,923 kt
3,456 kt
99%
North Urals Bauxite Mine
Russia (Sverdlovsk
Region)
3,000 ktpa
2,258 kt
2,018 kt
75%
Compagnie des Bauxites
de Kindia
Guinea
3,500 ktpa
2,670 kt
3,016 kt
109%
Friguia Bauxite and
Alumina Complex1
Guinea
2,100 ktpa
837 kt
1,062 kt
56%
Bauxite Company
of Guyana4
Guyana
1,700 ktpa
–
–
0%
Windalco
Jamaica
4,000 ktpa
1,616 kt
1,592 kt
40%
Bauxite company
of Dian-Dian
Guinea
4,200 ktpa
2,072 kt
4,740 kt
155%
3 Pro-rata share of capacity and production attributable to the Metals segment.
4 Mothballed in February 2020.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
37
36
CONSOLIDATED REPORT 2024
Electricity generation
In 2024, electricity production in the UES of Russia
increased by 4.1% year-on-year, reaching a total
of 1,180.7 billion kWh compared to 1,134.0 billion kWh
in 2023. The generation structure was as follows:
CHPs – 57.3%, NPPs – 18.2%, HPPs – 17.3%,
WPPs – 0.7%, SPPs – 0.3%, and industrial power
stations – 6.1%.
Power generation in the Siberian IES amounted
to 233.7 billion kWh (an increase of 3.5% year-on-year),
with HPPs accounting for 51.7% of total electricity
generation, CHPs for 44.2%, and RES for 4.1%. HPP
output grew by 5.0% year-on-year to 120.8 billion kWh.
At the same time, CHPs increased electricity production
by 2.7% year-on-year to 103.3 billion kWh.
The main factor affecting the overall growth in energy
generation in the Siberian IES in 2024 was an increase
in demand from data processing centres and aluminium
and mining companies.
Electricity demand
Electricity consumption in the UES of Russia rose
by 3.1% year-on-year to 1,174.1 billion kWh in 2024.
The growth was primarily driven by increased
consumption from the Central IES (an increase
of 8.8 billion kWh), the IES of the South (an increase
of 6.5 billion kWh), and the Siberian IES (an increase
of 11.2 billion kWh).
The Europe-Urals pricing zone saw a 2.6% rise
in electricity consumption, reaching 884.7 billion kWh.
In the Siberian IES, electricity consumption went up
by 4.9% to 241.1 billion kWh.
Electricity consumption in Russia3, billion kWh
Changes in energy consumption in 2024 were driven
by the temperature factor, industrial and household
consumption growth.
Electricity and capacity prices
Within the Siberian IES, electricity spot prices
are dictated by the marginal costs of the least
efficient coal-fired power plants among those
in demand, with HPPs operating as price takers.
Over the long term, electricity prices tend to move
with thermal coal prices. A significant proportion
of the power generated by Siberian CHPs is produced
using locally sourced brown coal. Due to seasonality
in demand and the fluctuating availability
of hydropower, electricity prices can exhibit
significant fluctuations throughout the year. One
of the primary factors with significant medium-term
influence is the inflow and water reserves in Siberian
HPPs’ reservoirs, driving the availability of low-cost
hydropower in the wholesale market.
The capacity market operates somewhat differently
from the electricity market, reflecting the long-term
nature of decision-making. The primary method
for selling capacity on the wholesale market is through
competitive capacity auctions (CCAs), enabling
the selection of the most suitable mix of generating
capacities to meet projected demand and establishing
a single capacity price within each pricing zone.
Currently, CCA capacity prices are set through to 2028
and are then adjusted annually using the Consumer
Price Index (CPI) from the previous year minus
0.1%, from 1 January of the CCA year until 1 January
of the delivery year.
837.1
862.3
224.7
229.9
241.1
884.7
‘22
‘23
‘24
↑2.3%
↑2.6%
↑4.9%
↑1%
First pricing zone (Europe-Urals)
Second pricing zone (Siberian IES)
Change y-o-y
↑
Structure of the Siberian IES by installed
capacity, %
1
Unless otherwise stated, data sources in the section include TSA, NP Market Council Association, and System Operator of the United Energy System.
2 Comprises the Central, Middle Volga, Urals, North-West, and South energy systems.
3 According to the System Operator of the United Energy System of Russia (www.so-ups.ru).
Market overview1
Overview of the Russian power sector
The Russian Federation’s power sector is among
the largest in the world; as of 1 January 2025,
the total installed capacity of power plants
within the United Energy System of Russia
(UES of Russia) was 263.7 GW. In 2024,
installed capacity increased by 0.62 GW
due to the commissioning of 1.7 GW of new
capacity, with the decommissioning of old
facilities totalling 1.3 GW, and a rise of 0.3 GW
due to other factors such as re-labelling and
modernisation.
Most of the Group’s energy assets are located
in the second pricing zone, within the Siberian IES.
The Siberian IES has an operational area of 4.9 million
km2, with a population of more than 19 million.
The Siberian IES comprises 126 power plants with
a total installed capacity of 52.5 GW, including
25.4 GW of HPPs (48%), 26.5 GW of CHPs (51%), and
581 MW of solar power plants (1%). The backbone
grid of the Siberian IES3 consists of 110-kV, 220-kV,
and 500-kV lines, with a total length of over
100,000 km.
A unique feature of the Siberian IES is the significant
role of HPPs in both the installed electrical
capacity mix and electricity output. Thermal power
in the Siberian IES communities is generated mainly
through coal-fired power plants, primarily located near
coal-mining regions.
The UES of Russia covers the most populated areas
of the country. Grid interconnections between various
energy systems are limited due to vast distances, so
the Russian wholesale electricity and capacity market
is divided into two pricing zones and four non-pricing
zones.
The first pricing zone, the Europe-Urals zone2,
encompasses the European region of Russia and
includes integrated energy systems (IES) such
as the North-West, Central, Middle Volga, Urals, and
South.
The second pricing zone, the Siberian IES, encompasses
Siberia. The electricity prices of the two pricing zones
are driven by the differences in capacity and fuel mix
in the respective pricing zones. Network constraints
play a significant role in the second pricing zone.
Non-pricing zones include the Kaliningrad Region,
Arkhangelsk Region, Komi Republic, and Russian Far
East regions. These regions operate under special
electricity pricing rules rather than market conditions.
HPPs
CHPs
SPPs
48
51
1
Power segment
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
39
38
CONSOLIDATED REPORT 2024
Power segment
1
Including Onda HPP, with an installed electrical capacity of 80 MW (located in the European part of Russia, leased to RUSAL); excluding
Boguchany HPP, with an installed electrical capacity of 2,997 MW (a 50/50 JV between RUSAL and its strategic partner).
2 Excluding Onda HPP, with an installed electrical capacity of 80 MW (located in the European part of Russia, leased to RUSAL), and Boguchany
HPP (a 50/50 JV between RUSAL and its strategic partner).
3 Including Onda HPP with an installed capacity of 80 MW (located in the European part of Russia, leased to RUSAL).
As of 31 December 2024, the Group’s total installed
electrical capacity stood at 19.5 GW1, while
the aggregate installed heat capacity was 13.7 Gcal/h.
As of 31 December 2024, HPPs represented 78%
of the installed electrical capacity, while the remaining
22% was accounted for by predominantly coal-fired
CHPs and one solar power plant.
In 2024, the Company generated 90.7 billion kWh2
of electricity. The share of En+ in the total generation
of electricity in the Siberian unified energy system
was about 36%, while the Group’s HPPs accounted
for approximately 61% of the total hydropower
generated in the Siberian unified energy system.
Hydropower generation
Hydropower generation is the main focus of the Group’s
Power segment. The Company operates five HPPs3,
including three of the five largest HPPs in Russia and
of the twenty largest HPPs globally, in each case in terms
of installed electrical capacity. In 2024, the Power
segment’s HPPs produced 73.7 billion kWh of electricity,
or 81.3% of the Group’s total electricity production.
In 2024, the total output of the Group’s Angara HPP
cascade (Irkutsk, Bratsk, and Ust-Ilimsk HPPs) increased
by 4.5% year-on-year, to 55.5 billion kWh. This increase
can be attributed to the existing water reserves
in Lake Baikal and the Bratsk reservoir at the beginning
of 2024, high water levels in the reservoirs, and more
intensive state-regulated water discharges compared
to 2023 as established by the Yenisei Basin Water
Management Board. For example, water levels in Lake
Baikal reached 456.51 m (10 cm above the long-
term average) as of 1 July 2024, and 456.63 m (4 cm
above the long-term average) as of 1 December 2024.
Water levels in the Bratsk reservoir reached 399.71 m
(1.98 m above the long-term average) as of 1 July 2024,
and 399.37 m (0.93 m above the long-term average)
as of 1 December 2024.
Total generation from Krasnoyarsk HPP rose by 15.8%
year-on-year in 2024, to 18.3 billion kWh. The increase
was the result of more intensive state-regulated
water discharges compared to 2023 as established
by the Yenisei Basin Water Management Board, driven
by increased hydro resources. The maximum level
of the Krasnoyarsk reservoir reached 239.26 m in 2024,
marking an increase of 3.2 m compared to the 2023
maximum level and remaining 0.4 m below the long-
term average annual maximum.
CHP electricity and heat generation
Electricity generation by the Group’s CHPs rose
by 3.0% year-on-year to 16.9 billion kWh in 2024.
The increase was driven primarily by a 9.2% year-on-
year surge in electricity consumption within the Irkutsk
energy system, along with reduced generation from
the Angara HPP cascade in the second half of 2024.
Heat generation totalled 26.3 million Gcal and
experienced a 4.0% year-on-year decrease
due to weather conditions: the average monthly
temperature in 2024 was, on average, 1.0°C higher
than in 2023.
SPP electricity generation
Abakan SPP generated 5.8 million kWh in 2024,
marking a 3.3% year-on-year decrease attributed
to fewer sunny days during the reporting period.
Operational performance
In 2024, the CCA-resulting price for the first pricing
zone increased by 14.2% year-on-year, including the CPI
minus 0.1% adjustment, while the capacity price
for the second pricing zone rose by 12.1% year-on-year.
A key contributor to higher CCA prices in 2024 vs. 2023
was adjustment for actual 2023 inflation rate of 7.57%.
Capacity prices (including CPI minus 0.1%
adjustment), RUB ‘000/MW/month
Capacity prices
Prices determined in capacity auctions for the second pricing zone (ex. CPI minus 0.1% adjustment),
RUB ‘000/MW/month
2024
2025
2026
2027
2028
Second pricing zone
279
303
299
504
558
Electricity spot prices, RUB/MWh
Electricity prices
In 2024, the average spot price in the day-ahead market
for the second pricing zone reached RUB 1,512 per
MWh, a 21.2% increase from 2023. This upward trend
was caused by lower HPP generation in the second
half of 2024, higher CHP price bid levels, as well as grid
limitations on transit between Eastern and Western
Siberia, with an increase in the number of hours of flow
reversal towards the Irkutsk Region.
The average spot prices in the Irkutsk Region and
Krasnoyarsk Territory stood at RUB 1,456 per MWh and
RUB 1,474 per MWh, respectively, marking a 25.6%
and 22.7% year-on-year increase, respectively. This
was due to lower generation from the Angara cascade
HPPs in the second half of 2024, with an increase
in the number of hours of flow reversal towards
the Irkutsk Region amid increased consumption,
as well as due to higher CHP price bid levels.
First pricing zone (Europe-Urals)
Second pricing zone (Siberian IES)
Change y-o-y
190.4
217.2
299.9
338.6
379.5
248.0
‘22
‘23
‘24
↑12.9%
↑14.2%
↑12.1%
↑14.1%
↑
‘22
‘23
‘24
1,162
1,470
987
1,591
1,248
1,625
1,159
1,748
1,512
1,777
1,456
1,444
1,157
↑7.4%
↑10.5%
↑17.4%
↑10.2%
↑3.8%
↑21.2%
↑9.4%
↑9.9%
↑25.6%
1,201
1,474
↑22.7%
First pricing
zone
Krasnoyarsk
Territory
Nizhny Novgorod
Region
Second pricing
zone
Irkutsk
Region
Change y-o-y
↑
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
41
40
CONSOLIDATED REPORT 2024
Location
Installed capacity
2023 production
2024 production
Hydropower plants
Irkutsk HPP
Russia (Irkutsk Region)
753.0 MW
4.6 bn kWh
4.5 bn kWh
Bratsk HPP
Russia (Irkutsk Region)
4,500 MW
25.1 bn kWh
26.9 bn kWh
Ust-Ilimsk HPP
Russia (Irkutsk Region)
3,840 MW
23.4 bn kWh
24.1 bn kWh
Krasnoyarsk HPP
Russia (Krasnoyarsk Territory)
6,000 MW
15.8 bn kWh
18.3 bn kWh
Combined heat and power plants
CHP-10
Electricity
Russia (Irkutsk Region)
1,110 MW
4.9 bn kWh
5.4 bn kWh
Heat
574.0 Gcal/h
0.3 mn Gcal
0.5 mn Gcal
CHP-9
Electricity
Russia (Irkutsk Region)
540.0 MW
2.5 bn kWh
2.0 bn kWh
Heat
2,143.0 Gcal/h
6.0 mn Gcal
5.7 mn Gcal
Novo-Irkutsk CHP
Electricity
Russia (Irkutsk Region)
726 MW
3.3 bn kWh
3.4 bn kWh
Heat
1,959.2 Gcal/h
5.9 mn Gcal
5.8 mn Gcal
Ust-Ilimsk CHP
Electricity
Russia (Irkutsk Region)
515 MW
0.9 bn kWh
1.2 bn kWh
Heat
1,015.0 Gcal/h
2.1 mn Gcal
2.0 mn Gcal
CHP-11
Electricity
Russia (Irkutsk Region)
320.3 MW
0.7 bn kWh
0.9 bn kWh
Heat
1,056.9 Gcal/h
1.0 mn Gcal
1.0 mn Gcal
CHP-6
Electricity
Russia (Irkutsk Region)
287.0 MW
0.9 bn kWh
1.0 bn kWh
Heat
1,769.1 Gcal/h
3.3 mn Gcal
3.3 mn Gcal
Novo-Ziminsk CHP
Electricity
Russia (Irkutsk Region)
260 MW
1.3 bn kWh
1.3 bn kWh
Heat
773.0 Gcal/h
1.5 mn Gcal
1.5 mn Gcal
Avtozavodsk CHP
Electricity
Russia (Nizhny Novgorod
Region)
480 MW
1.6 bn kWh
1.7 bn kWh
Heat
2,172.0 Gcal/h
3.1 mn Gcal
3.1 mn Gcal
Solar power plants
Abakan SPP
Russia (Republic of Khakassia)
5.2 MW
6.0 mn kWh
5.8 mn kWh
Other assets4
Electricity
118.4 MW
0.6 bn kWh
0.6 bn kWh
Heat
2,228.7 Gcal/h
4.1 mn Gcal
3.5 mn Gcal
Power segment
4 Other assets include Onda HPP and small-scale
generating and heat-producing facilities.
5 As at 31.12.2024.
6 Including Onda HPP with an installed capacity
of 0.08 GW (located in the European part of Russia,
leased to RUSAL).
En+ Group’s installed capacity by generation type5
77.6%
22.1%
0.3%
HPPs
CHPs
Abakan SPP
19.5 GW
6
Assets overview
Total electricity production1, bn kWh
Heat generation, mn Gcal
Coal production
The Coal segment provides the Group’s CHPs with
a self-sufficient coal resource base and covers
its internal coal demand. Part of the coal production
(16% in 2024) is sold to third parties.
1
Excluding Onda HPP, with an installed electrical capacity of 80 MW (located in the European part of Russia, leased to RUSAL) and Boguchany
HPP, with an installed electrical capacity of 2,997 MW (a 50/50 JV between RUSAL and its strategic partner).
2 Includes Irkutsk, Bratsk, and Ust-Ilimsk HPPs.
3 Krasnoyarsk HPP.
54.2
14.8
‘22
‘23
‘24
14.9
53.1
15.8
16.4
55.5
18.3
16.9
83.9
85.2
90.7
Angara cascade2
Yenisei cascade3
CHPs
90.7
bn kWh
‘22
‘23
‘24
27.6
27.4
26.3
26.3
mn Gcal
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
43
42
CONSOLIDATED REPORT 2024
1
Net profit margin for any period represents net profit or loss for the relevant period divided by total revenues for the relevant period and
expressed as a percentage, in each case attributable to the Group, Power segment, or Metals segment, as the case may be.
2 Adjusted EBITDA for any period represents 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,
Power segment, or Metals segment, as the case may be.
3 Adjusted EBITDA margin for any period represents adjusted EBITDA for the relevant period divided by total revenues for the relevant period
and expressed as a percentage, in each case attributable to the Group, Power segment, or Metals segment, as the case may be.
4 Net debt represents the sum of loans, borrowings, and bonds outstanding less total cash and cash equivalents as at the end of the relevant
period, in each case attributable to the Group, Power segment, or Metals segment, as the case may be.
5 Net working capital is defined as inventories plus short-term trade and other receivables (excluding dividends receivable), less trade and other
payables (excluding dividends payable), in each case attributable to the Group, Power segment, or Metals segment, as the case may be.
6 Free cash flow means, for any period, the cash flows generated from operating activities less net interest paid, capital expenditures,
restructuring fees, and other payments related to issuance of shares, adjusted for payments from settlement of derivative instruments, plus
dividends from associates and joint ventures.
7 The earnings per share calculation is based on a weighted average number of shares of 502 million in 2024 and 2023.
8 After consolidation adjustments.
Financial
review
Key metrics, USD mn
As at or for the year ended 31 December
2024
2023
2022
Revenue
14,649
14,648
16,549
Gross profit
4,433
3,282
4,493
Gross profit margin
30.3%
22.4%
27.1%
Results from operating activities (EBIT)
1,506
1,030
2,006
Operating profit margin
10.3%
7.0%
12.1%
Pre-tax profit
1,569
876
2,453
Profit for the year
1,348
716
1,846
Net profit margin1
9.2%
4.9%
11.2%
Adjusted EBITDA2
2,927
2,157
3,119
Adjusted EBITDA margin3
20.0%
14.7%
18.8%
Net debt4
8,881
8,717
10,123
Net working capital5
4,366
3,417
4,474
Free cash flow6
(547)
642
(633)
Basic earnings per share7
1.983
1.186
2.156
Equity attributable to shareholders of the Company
7,543
6,921
7,480
Change in revenue and adjusted EBITDA, USD mn8
The Group’s financial results are disclosed both
on a consolidated basis and for the Power and Metals
segments.
When making period-to-period comparisons of financial
results, the Group presents consolidated results after
intersegmental eliminations in order to analyse changes,
developments, and trends by reference to the individual
segment’s operating results (the Power and Metals
segments). Amounts attributable to the segments
are presented before intersegmental eliminations.
12,213
3,587
(131)
266
14,648
- 1.1%
+ 7.4%
12,082
3,853
14,649
786
1,292
708
154
2,157
+ 90.1%
+ 35.7%
—
+ 11.9%
1,494
1,446
2,927
2023 revenue
Metals
segment
Power
segment
2024 revenue
2023
adjusted
EBITDA
Metals
segment
Power
segment
2024
adjusted
EBITDA
Metals segment
Power segment
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
45
44
CONSOLIDATED REPORT 2024
Analysis of individual financial metrics
Revenue
The following table presents the Group’s revenue from sales broken down by core product,
for the years indicated.
Year ended 31 December
USD mn
2024
2023
2022
Sales of primary aluminium and alloys
9,538
9,933
11,384
Sales of electricity
1,777
1,646
1,844
Sales of alumina and bauxite
754
513
557
Sales of semi-finished products and foil
899
864
921
Sales of heat
429
476
525
Other revenue
1,252
1,216
1,318
Total revenues
14,649
14,648
16,549
Group’s revenue from sales broken down by core product, USD mn
The following table presents the Group’s revenue by business
segment for the years indicated.
Year ended 31 December
USD mn
2024
2023
2022
Metals segment
12,082
12,213
13,974
Power segment
3,853
3,587
3,885
Business segment revenues
15,935
15,800
17,859
Elimination of intersegmental revenues
(1,286)
(1,152)
(1,310)
Total revenues
14,649
14,648
16,549
Group’s revenue by business segment, USD mn
The Group’s revenue is mainly attributable to the Metals
segment’s operations. It remained consistent with
the figures from 2023, totalling USD 14,649 million
in 2024.
A decrease of 1.1% in revenues of the Metals segment
to USD 12,082 million, mainly due to a decrease in sales
of primary aluminium and alloys by 7.1% year-on-year,
was offset by a growth in revenues of the Power
segment resulting from increased sales and a higher
average price of electricity in the day-ahead market
for the second pricing zone.
11,384
1,844
‘22
‘23
‘24
16,549
14,648
14,649
557
921
525
1,318
9,933
1,646
513
864
476
1,216
9,538
1,777
754
899
429
1,252
Sales of primary aluminium and alloys
Sales of electricity
Sales of alumina and bauxite
Sales of semi-finished products and foil
Sales of heat
Other revenue
(1,310)
13,974
‘22
‘23
‘24
16,549
14,648
14,649
3,885
(1,152)
12,213
3,587
(1,286)
12,082
3,853
Metals segment
Power segment
Elimination of intersegmental revenues
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
47
46
CONSOLIDATED REPORT 2024
The cost of sales in the Power and Metals segments
reflects costs directly associated with the sale and
production of the core products and services of both
segments. For the Power segment, the cost of sales
primarily includes the costs of electricity and capacity
purchased for resale, raw materials and fuel, personnel
expenses, and depreciation and amortisation.
For the Metals segment, the cost of sales mainly
consists of the cost of alumina, bauxite, other raw
materials, energy, personnel expenses, and depreciation
and amortisation.
The Group’s cost of sales dropped by USD 1,150 million,
or 10.1%, from USD 11,366 million in 2023
to USD 10,216 million in 2024 due to lower purchase
prices for raw materials (excluding alumina and bauxite)
and a 7.1% decrease in sales volumes of primary
aluminium and alloys by the Metals segment.
Distribution, general and administrative expenses
The Group’s distribution, general and administrative
expenses rose in 2024 by USD 174 million, or 10.1%,
to USD 1,892 million from USD 1,718 million in 2023,
driven by changes in sales chains and increased
personnel costs.
Finance income and costs
The Group’s finance income primarily consists
of interest income and net foreign exchange gains.
The Group’s finance costs primarily consist of interest
expense and net foreign exchange loss.
The Company’s finance income rose by USD 324 million,
or 270%, to USD 444 million in 2024 from
USD 120 million in 2023, mainly due to net foreign
exchange gains in 2024 compared to a loss in 2023.
The finance costs fell by USD 82 million, or 8%, from
USD 1,026 million in 2023 to USD 944 million in 2024
also due to foreign exchange gains compared to losses
on this item in 2023, which were partially offset by a rise
in interest expenses due to an increase of the key rate
of the Bank of Russia to 21% in 2024.
Cost of sales
The following table presents the Group’s cost of sales by segment for the years indicated.
Year ended 31 December
USD mn
2024
2023
2022
Metals segment
9,261
10,445
10,770
Power segment
2,215
2,143
2,422
Business segment cost of sales
11,476
12,588
13,192
Elimination of intersegmental cost of sales
(1,260)
(1,222)
(1,136)
Total cost of sales
10,216
11,366
12,056
Year ended 31 December
USD mn
2024
2023
2022
Finance income
Net foreign exchange gain
221
-
-
Interest income
160
93
115
Change in fair value of derivative financial instruments
61
-
-
Revaluation of financial assets and liabilities
-
-
31
Other finance income
2
27
38
Total finance income
444
120
184
Finance costs
Interest expense
(830)
(748)
(988)
Net foreign exchange loss
-
(85)
(111)
Change in fair value of derivative financial instruments
-
(99)
(191)
Revaluation of financial assets and liabilities
(114)
(94)
-
Total finance costs
(944)
(1,026)
(1,290)
Income tax expense
The Group’s income tax expense grew by USD 61 million,
or 38.1%, to USD 221 million in 2024 from
USD 160 million in 2023 as a result of higher pre-tax
profit in 2024 as compared to 2023.
Current tax expense for the period decreased
by USD 8 million, or 2.2%, primarily due to the one-time
effect of windfall tax recognised in 2023.
The Group’s deferred tax income dropped
by USD 69 million, from USD 210 million
to USD 141 million, primarily due to the tax effect
of the accrual of temporary differences related to foreign
exchange differences.
Results from operating activities of the Group
The Group’s results from operating activities rose
by USD 476 million, or 46.2%, from USD 1,030 million
in 2023 to USD 1,506 million in 2024.
Results from operating activities attributable
to the Metals segment grew by USD 447 million from
USD (79) million in 2023 to USD 368 million. Results
from operating activities attributable to the Power
segment increased by USD 122 million, or 11.9%, from
USD 1,027 million in 2023 to USD 1,149 million in 2024.
The Group’s operating profit margin grew from 7.0%
in 2023 to 10.3% in 2024.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
49
48
CONSOLIDATED REPORT 2024
Reconciliation of the Group’s adjusted EBITDA to the Group’s results from operating activities for the year
ended 31 December, USD mn
Year ended 31 December
USD mn
2024
2023
2022
Adjusted EBITDA reconciliation
Results from operating activities
1,506
1,030
2,006
Adjusted for:
• amortisation and depreciation
753
765
720
• loss / (gain) on disposal of property, plant and equipment
7
(4)
23
• impairment of non-current assets
661
366
370
Adjusted EBITDA
2,927
2,157
3,119
The following table sets forth the Group’s adjusted
EBITDA and adjusted EBITDA margin by segment
(before intersegmental elimination) for the years
indicated:
Year ended 31 December
USD mn
2024
2023
2022
Adjusted EBITDA, Metals segment
1,494
786
2,028
Adjusted EBITDA, Power segment
1,446
1,292
1,254
Adjusted EBITDA
2,927
2,157
3,119
Adjusted EBITDA margin, Metals segment
12.4%
6.4%
14.5%
Adjusted EBITDA margin, Power segment
37.5%
36.0%
32.3%
Adjusted EBITDA margin, Group
20.0%
14.7%
18.8%
The Group’s adjusted EBITDA increased by USD 770 million,
or 35.7%, to USD 2,927 million in 2024 from
USD 2,157 million in 2023. The growth in 2024 compared
to 2023 was primarily driven by the same factors that
affected the Group’s operating results.
Profit
The Group’s gross profit increased by USD 1,151 million,
or 35.1%, to USD 4,433 million in 2024 from
USD 3,282 million in 2023. The Group’s gross profit
margin went up from 22.4% in 2023 to 30.3% in 2024.
The Group recorded a profit before tax
of USD 1,569 million in 2024 as compared
to USD 876 million in 2023.
For the reasons described above, the Company’s
profit for the year ended 31 December 2024
was USD 1,348 million, compared to a profit
of USD 716 million for the year ended 31 December
2023.
Share of profits of associates and joint ventures
Year ended 31 December
USD mn
2024
2023
2022
Share of profit in Norilsk Nickel
347
629
1,440
• Effective shareholding of En+ Group
15.01%
15.01%
15.01%
Share of profit in the BEMO project
93
93
102
• Effective shareholding of En+ Group
28.44%
28.44%
28.44%
Share of profit in Hebei Wenfeng New Materials Co., Ltd.
138
n/a
n/a
• Effective shareholding of En+ Group
17.06%
n/a
n/a
Share of profit in other associates / joint ventures
(15)
30
11
Share of profits of associates and joint ventures
563
752
1,553
The Group has a number of associates and joint
ventures, which are accounted for in its Financial
Statements under the equity method. The principal
associates and joint ventures include Norilsk Nickel,
Queensland Alumina Limited, the BEMO project and
Hebei Wenfeng New Materials Co., Ltd (alumina refinery
in China).
The Group’s share of profit of its associates and
joint ventures declined by USD 189 million, or 25.1%,
to USD 563 million in 2024 from USD 752 million
in 2023.
The change in the share of profit of associates and
joint ventures in 2024 as compared to 2023 can
primarily be attributed to lower profit from the Group’s
investment in Norilsk Nickel.
2,006
720
‘22
‘23
‘24
3,119
2,157
2,927
370
(4)
1,030
765
1,506
753
661
23
7
366
Results from operating activities
Amortisation and depreciation
Impairment of non-current assets
Profit / loss on disposal of property, plant and equipment
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
51
50
CONSOLIDATED REPORT 2024
Net assets
The Group’s net assets increased by USD 700 million
to USD 12,281 million as at 31 December 2024 from
USD 11,581 million as at 31 December 2023.
In 2024, net assets of the Metals segment grew
by USD 200 million, or 1.8%, to USD 11,216 million
as at 31 December 2024 from USD 11,016 million
as at 31 December 2023. The increase in total assets
was the main factor behind this, primarily resulting
from a boost in the carrying values of investments
in associates and joint ventures, inventories, and trade
and other receivables, although it was partially offset
by a drop in cash and cash equivalents.
2024 saw net assets of the Power segment rise
by USD 505 million, or 8.7%, to USD 6,329 million
as at 31 December 2024 from USD 5,824 million
as at 31 December 2023, primarily due to an increase
in cash and cash equivalents, the carrying amounts
of property, plant and equipment, inventories, trade
and other receivables.
Year ended 31 December
USD mn
2024
2023
2022
Group
Non-current assets
18,412
18,020
20,176
Current assets
9,061
8,368
10,502
Non-current liabilities
(6,624)
(10,015)
(11,479)
Current liabilities
(8,568)
(4,792)
(6,467)
Net assets
12,281
11,581
12,732
Metals segment
Non-current assets
13,840
13,522
14,516
Current assets
8,361
7,942
10,115
Non-current liabilities
(4,226)
(6,729)
(7,733)
Current liabilities
(6,759)
(3,719)
(4,591)
Net assets
11,216
11,016
12,307
Power segment
Non-current assets
9,682
9,608
10,770
Current assets
1,028
819
816
Non-current liabilities
(2,417)
(3,297)
(3,758)
Current liabilities
(1,964)
(1,306)
(2,065)
Net assets
6,329
5,824
5,763
Net working capital
Net working capital is defined as inventories plus short-
term trade and other receivables (excluding dividends
receivable), less trade and other payables (excluding
dividends payable).
As at 31 December 2024, the Group’s net working
capital amounted to USD 4,366 million, compared
to USD 3,417 million as at 31 December 2023. In 2024,
net working capital increased by 27.8% vs. 2023 mainly
due to an increase in inventories.
The following table presents the calculation of net
working capital of the Group, the Power segment, and
the Metals segment as at the dates indicated.
Year ended 31 December
USD mn
2024
2023
2022
Group
Inventories
4,458
3,575
4,383
Short-term trade and other receivables
2,560
2,330
2,514
Dividends receivable
(29)
(412)
-
Trade and other payables
(2,628)
(2,081)
(2,423)
Dividends payable
5
5
-
Net working capital
4,366
3,417
4,474
Metals segment
Inventories
4,477
3,599
4,489
Short-term trade and other receivables
2,250
2,112
2,263
Dividends receivable
(29)
(412)
-
Trade and other payables
(2,117)
(1,639)
(1,919)
Dividends payable
5
5
-
Net working capital
4,586
3,665
4,833
Power segment
Inventories
186
164
161
Short-term trade and other receivables
433
373
363
Trade and other payables
(666)
(675)
(693)
Net working capital
(47)
(138)
(169)
Net working capital of the Group,
USD mn
(169)
4,833
‘22
‘23
‘24
4,474
3,417
4,366
(138)
3,665
(47)
4,586
Metals segment
Power segment
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
53
52
CONSOLIDATED REPORT 2024
Liquidity and capital resources
In 2024, the Group’s liquidity requirements primarily
related to funding working capital, capital expenditures,
and debt servicing. The Group used a variety of internal
and external sources to finance its operations. During
the periods under review, short- and long-term
funding sources included mostly rouble and foreign
currency-denominated secured and unsecured loans
from Russian and international banks, as well as debt
instruments issued in both the Russian and international
capital markets.
Liquidity was managed separately in both the Power
and Metals segments.
Dividends
During the years ended 31 December 2024 and
31 December 2023, EN+ GROUP IPJSC neither declared
nor paid any dividends.
Cash flows
The following table presents the Group’s selected cash
flow data for the periods indicated.
1
Restricted cash of USD 2 million is included in cash and cash equivalents as at 31 December 2024 and as at 31 December 2023.
Year ended 31 December
USD mn
2024
2023
2022
Cash flows from operating activities
1,658
2,721
572
Cash flows (used in) / from investing activities
(1,621)
(1,419)
47
Cash flows (used in) / from financing activities
(354)
(2,277)
742
Net change in cash and cash equivalents
(317)
(975)
1,361
Cash and cash equivalents at the beginning of the period, excluding
restricted cash
2,345
3,474
2,328
Effect of exchange rate changes on cash and cash equivalents
(147)
(154)
(215)
Cash and cash equivalents at the end of the period, excluding
restricted cash
1,881
2,345
3,474
Free cash flow
(547)
642
(633)
Cash flows from operating activities
In 2024, cash flows from the Group’s operating
activities amounted to USD 1,658 million, which
was USD 1,063 million lower than in 2023
(USD 2,721 million) due to an increase in working capital.
Cash flows used in investing activities
The Group’s net cash flows used in investing activities
for the year ended 31 December 2024 amounted
to USD 1,621 million compared to USD 1,419 million
in the previous year.
The change was driven by an increase in capital
expenditures of USD 430 million between
comparable periods, an increase of USD 416 million
in dividends from associates and joint ventures and
a USD 303 million acquisition of a joint venture.
Cash flows used in financing activities
The Group’s cash flows used in financing activities
amounted to USD 354 million in 2024.
A rise of USD 1,923 million (in 2023, cash flows used
in financing activities amounted to USD 2,277 million)
was primarily due to net proceeds from loans
and bonds totalling USD 535 million in 2024
compared to net raise of loans and bonds
totalling USD 1,559 million for the previous year,
as well as an increase of USD 247 million in interest
payments.
Free cash flow
Free cash flow for 2024, USD mn
1.
Cash flow from operating activities and dividends
from associates and JVs
2. Net interest
3. Capital expenditure
4. Other financial flow⁴
5. Free cash flow
2,074²
(783)
(1,878)² ³
40
(547)²
1,133
483
1
2
3
4
5
416
(405)
(378)
(519)
(1,366)
(8)
48
(797)
201
Metals segment
Power segment
Dividends from associates and JVs
2 After consolidation adjustments.
3 Capital expenditure represents cash flow related to investing activities – acquisition of property, plant and equipment and intangible assets.
The calculation does not include investments in subsidiaries and joint ventures.
4 Restructuring fee and payments from settlement of derivative instruments.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
55
54
CONSOLIDATED REPORT 2024
1
2
3
4
5
6
2,345
1,658
(1,621)
(354)
(147)
1,881
1.
Cash and cash equivalents at the beginning of the period,
excluding restricted cash
2. Cash flows from operating activities
3. Cash flows (used in) / from investing activities
4. Cash flows (used in) / from financing activities
5. Effect of exchange rate changes on cash and cash equivalents
6. Cash and cash equivalents at the end of the period, excluding
restricted cash1
Year ended 31 December
USD mn
2024
2023
2022
Group
Cash flows from operating activities
1,658
2,721
572
Adjusted for:
• capital expenditures (acquisition of property, plant and equipment
and intangible assets)
(1,878)
(1,448)
(1,711)
• dividends from associates and joint ventures
416
-
1,639
• interest received
146
84
104
• interest paid
(929)
(682)
(987)
• restructuring fees
(23)
(31)
(21)
• payments on derivative financial instruments
63
(2)
(229)
Free cash flow
(547)
642
(633)
Metals segment
Cash flows from operating activities
483
1,760
(412)
Adjusted for:
• capital expenditures (acquisition of property, plant and equipment
and intangible assets)
(1,366)
(1,056)
(1,239)
• dividends from associates and joint ventures
416
-
1,639
• interest received
116
61
70
• interest paid
(494)
(422)
(428)
• restructuring fees
(15)
(30)
(17)
• payments on derivative financial instruments
63
(2)
(229)
Free cash flow
(797)
311
(616)
Power segment
Cash flows from operating activities
1,133
963
986
Adjusted for:
• capital expenditures (acquisition of property, plant and equipment
and intangible assets)
(519)
(394)
(474)
• interest received
30
23
34
• interest paid
(435)
(260)
(559)
• restructuring fees
(8)
(1)
(4)
Free cash flow
201
331
(17)
Capital expenditures
In 2024 and 2023, the Group’s capital expenditures
(including the acquisition of property, plant and
equipment and intangible assets) amounted
to USD 1,878 million and USD 1,448 million, respectively.
The Group’s subsidiaries financed their cash
requirements through a combination of operating cash
flows and borrowings.
The Metals segment recorded a total capital
expenditure of USD 1,366 million for the year ended
31 December 2024. The Metals segment’s capital
expenditure in 2024 was aimed at maintaining existing
production facilities. Maintenance capex amounted
to 58% of total capex for 2024.
In 2024, capital expenditure of the Group’s Power
segment amounted to USD 519 million. Maintenance
capex accounted for 32% of total capital expenditure.
The Group’s Power segment channelled investments
into the construction of new generating capacities
to cover the energy deficit in south-eastern Siberia.
It also continued to invest in connections to its power
supply infrastructure and improving the efficiency
of the Group’s CHPs, further advancing its New Energy
HPP modernisation programme.
Capital expenditures (before adjustments) of
the Metals and Power segments for the periods
indicated, USD mn
Cash
At 31 December 2024 and 31 December 2023,
the Group’s cash and cash equivalents, less restricted
cash, were USD 1,881 million and USD 2,345 million,
respectively.
At 31 December 2024 and 31 December 2023, cash
and cash equivalents of the Power segment amounted
to USD 380 million and USD 260 million, respectively.
Cash and cash equivalents of the Metals segment
equalled USD 1,501 million and USD 2,085 million,
respectively.
Cash flows, USD mn
1,239
474
1,056
394
1,366
519
‘22
‘23
‘24
Metals segment
Power segment
1
Restricted cash of USD 2 million is included in cash and cash equivalents as at 31 December 2024 and as at 31 December 2023.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
57
56
CONSOLIDATED REPORT 2024
Loans and borrowings
The nominal value of the Group’s loans and borrowings was USD 6,166 million as at 31 December 2024, excluding
bonds, which represented an additional USD 4,569 million.
Debt portfolio breakdown as of 31 December 2024
Below is an overview of certain key terms of selected facilities in the Group’s debt portfolio as at 31 December
2024.
Facility/lender
Principal amount
outstanding
as at 31 December 2024
Tenor / repayment schedule
Pricing
Metals segment
Credit facilities
Pre-export credit facilities
CNY 8.0 bn
Until January 2026, bullet repayment
at the final maturity date
5.25% —
LPR 1Y + 3.1% p.a.
Russian bank loans
CNY 11.9 bn
December 2027, equal quarterly
repayments starting from March 2024
4.75% p.a.
RUB 108 bn
June 2029, repayment on schedule
Key rate of the Bank
of Russia plus margin, p.a.
RUB 22.2 bn
December 2035, quarterly repayments
Key rate of the Bank
of Russia plus 3.15% p.a.
Bonds
CNY bonds
CNY 22 bn
12 tranches, the last repayment
in July 2027
3.75% — 8.5% p.a.
Rouble bonds
RUB 50 bn
3 tranches, last repayment in August 2029
Key rate of the Bank of
Russia plus 2.2-2.5% p.a.
Power segment
Corporate loans
Russian bank loans
RUB 122 bn
Quarterly repayments, the last
repayment in December 2026
Key rate of the Bank
of Russia plus 1.5% p.a.
Bonds
CNY bonds
CNY 6.7 bn
5 tranches, the last repayment
in November 2026, bullet repayment
at the final redemption date
4.45% — 8.1% p.a.
Rouble bonds
RUB 7 bn
Bullet repayment in December 2026
Key rate of the Bank
of Russia plus 5% p.a.
Security
As at 31 December 2024, the Group’s debt (save for several
unsecured loans and bonds) was secured, among others,
by certain pledges of shares and interest in a number
of the Group’s subsidiaries, assignment of accounts,
and shares in Norilsk Nickel (representing 25% + 1 share
of Norilsk Nickel’s total nominal issued share capital).
As at 31 December 2024, the Power segment’s debt
was secured, among others, by pledges of shares
and interests in certain operating and non-operating
companies and property, plant and equipment.
By currency
By currency
By interest rate
By interest rate
RUB
EUR
USD
CNY
AED
25%
0.3%
2%
72%
1%
32%
68%
Floating rate
Fixed rate
62%
38%
RUB
CN
60%
40%
Floating rate
Fixed rate
Metals segment
Power segment
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
59
58
CONSOLIDATED REPORT 2024
Financial ratios
Gearing
The Group’s gearing ratio—the ratio of total debt
(including both long-term and short-term borrowings
and bonds outstanding) to total assets—was 39.2%
and 41.9% as at 31 December 2024 and 31 December
2023, respectively.
Return on equity
The Group’s return on equity—the amount of net
profit as a percentage of total equity—was 11.0% and
6.2% as at 31 December 2024 and 31 December 2023,
respectively.
Interest coverage ratio
The Group’s interest coverage ratio—the ratio
of earnings before interest and taxes to net interest—
was 2.2x and 1.6x for the years ended 31 December
2024 and 31 December 2023, respectively.
Analysis of results by segment
In 2024 and 2023, the Metals segment accounted for 75.8% and 77.3% of the business segments’
revenues (before adjustments), respectively. As at 31 December 2024 and 31 December 2023,
the assets of the Metals segment represented 67.5% and 67.3% of the Group’s total assets (before
adjustments), respectively.
For the year ended 31 December
USD mn
2024
2023
2022
Profit for the period
803
282
1,793
Net profit margin
6.6%
2.3%
12.8%
Adjusted EBITDA
1,494
786
2,028
Adjusted EBITDA margin
12.4%
6.4%
14.5%
Adjusted net profit1
983
73
725
Recurring net profit2
1,330
702
2,165
Recurring net profit margin3
11.0%
5.7%
15.5%
Revenues
The following table presents components of the Metals
segment’s sales data (before intersegmental
elimination) for the years indicated.
Year ended 31 December
USD mn
2024
2023
2022
Sales of primary aluminium and alloys
Revenue, USD mn
9,726
10,129
11,593
Sales volumes, kt
3,859
4,153
3,896
Average sales price (USD/t)
2,520
2,439
2,976
Sales of alumina
Revenue, USD mn
453
340
550
Sales volumes, kt
888
759
1,169
Average sales price (USD/t)
510
448
470
Sales of foil and other aluminium products, USD mn
585
550
581
Other revenue, USD mn
1,318
1,194
1,250
Total revenues
12,082
12,213
13,974
1
Adjusted net profit for any period represents net (loss)/profit for the relevant period adjusted for the net effect from the share in the results
of Norilsk Nickel, the net effect of embedded derivative financial instruments, and the net effect of non-current assets impairment.
2 Recurring net profit represents adjusted net profit for the relevant period plus RUSAL’s effective share of Norilsk Nickel’s after-tax profits.
3 Recurring net profit margin represents recurring net profit for the relevant period divided by total revenues and expressed as a percentage
for the relevant period.
Key financial results for the Metals segment for the periods indicated
For the year ended 31 December
USD mn
2024
2023
2022
Revenue
12,082
12,213
13,974
Gross profit
2,821
1,768
3,204
Gross profit margin
23.3%
14.5%
22.9%
Pre-tax profit
858
244
2,166
Metals segment
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
61
60
CONSOLIDATED REPORT 2024
In 2024, the Metals segment’s revenue decreased
by USD 131 million, or 1.1%, to USD 12,082 million from
USD 12,213 million in 2023.
Revenue from sales of primary aluminium and alloys
was down by USD 403 million in 2024, or 4.0%,
to USD 9,726 million from USD 10,129 million in 2023.
This was primarily due to a 7.1% decrease in sales
volumes between comparable periods, which
was partially offset by a 3.3% increase in the weighted-
average realised aluminium price per tonne
(to an average of USD 2,520 per tonne in 2024 from
USD 2,439 per tonne in 2023), driven by an increase
in the LME aluminium price (to an average of USD 2,419
per tonne in 2024 from USD 2,252 per tonne in 2023).
Revenue from sales of alumina rose by 33.2% from
USD 340 million for the year ended 31 December 2023
to USD 453 million for the year ended 31 December
2024, mainly due to a 17.0% increase in sales volumes
along with a 13.8% increase in the average alumina sales
price.
Revenue from sales of foil and other aluminium
products grew by USD 35 million, or 6.4%, in 2024
to USD 585 million compared to USD 550 million in 2023,
which was mainly due to a 36.6% increase in revenue from
the sale of aluminium wheels between comparable periods,
partially offset by a 2.5% decrease in foil sales.
Other revenue, which includes sales of other
products, bauxite, and electricity, was up 10.4%
to USD 1,318 million for the year ended 31 December
2024 compared to USD 1,194 million for the previous
year. The increase was driven by a 74.2% rise in revenue
from bauxite sales, which was partially offset by lower
revenues from sales of other materials (such as anode
blocks down by 3.2%, aluminium powder by 6.8%,
soda by 19.7%), and by a 7.4% decline in revenue from
sales of services.
Cost of sales
The following table presents components of the Metals
segment’s cost of sales for the years indicated.
Year ended 31 December
USD mn
2024
2023
2022
Cost of alumina
2,168
2,029
1,847
Cost of bauxite
280
235
331
Cost of other raw materials and other costs
2,891
3,074
3,835
Purchases of primary aluminium from joint ventures
600
656
940
Energy costs
2,277
2,288
2,658
Depreciation and amortisation
508
513
481
Personnel expenses
732
667
781
Repair and maintenance
484
455
532
Net change in provisions for inventories
(3)
(12)
171
Change in finished goods
(676)
540
(806)
Total cost of sales
9,261
10,445
10,770
For the year ended 31 December 2024, the cost of sales
of the Metals segment decreased by USD 1,184 million,
or 11.3%, to USD 9,261 million compared
to USD 10,445 million for the year ended 31 December
2023.
In 2024, the cost of alumina increased
by USD 139 million, or 6.9%, to USD 2,168 million
compared to USD 2,029 million in 2023, mainly
due to a 24.0% increase in the purchase price
of alumina between the compared periods, which
was partially offset by a decrease in the volume
of purchases.
The cost of raw materials (other than alumina and
bauxite) and other costs decreased by 6.0% in 2024
compared to the same period in 2023 due to lower
purchase prices for raw materials (raw pitch coke
was down by 13.7%, pitch by 7.8%, anode blocks
by 15.9%, and caustic soda by 8.9%).
Energy costs remained virtually unchanged
in the compared periods, as the increase in the average
electricity tariff was partially offset by fluctuations
in the exchange rate of the Russian rouble.
Finished goods mainly consist of primary aluminium
and alloys (approximately 97%). Changes between
the reporting periods were driven by fluctuations
in physical inventories of primary aluminium and alloys:
a 48.8% increase in 2024 and a 27.7% decrease
in 2023.
Adjusted EBITDA and adjusted EBITDA margin
In 2024, adjusted EBITDA of the Metals segment
increased by USD 708 million, or 90.1%, from
USD 786 million in 2023 to USD 1,494 million. Adjusted
EBITDA margin was 12.4% in 2024 compared to 6.4%
in 2023. The factors contributing to the growth
in adjusted EBITDA margin were the same as those
affecting operating performance.
The following table reconciles the Metals segment’s
adjusted EBITDA to its results from operating activities
for the periods indicated.
Year ended 31 December
USD mn
2024
2023
2022
Adjusted EBITDA reconciliation
Results from operating activities
368
(79)
1,316
Adjusted for:
• amortisation and depreciation
538
540
503
• loss on disposal of property, plant and equipment
8
4
13
• impairment of non-current assets
580
321
196
Adjusted EBITDA
1,494
786
2,028
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
63
62
CONSOLIDATED REPORT 2024
The following table reconciles the Metals segment’s
adjusted net profit and recurring net profit to its net
profit for the periods indicated.
Year ended 31 December
USD mn
2024
2023
2022
Adjusted net profit reconciliation
Net profit for the period
803
282
1,793
Adjusted for:
• share of profits and other gains and losses attributable to Norilsk
Nickel, net of tax effect
(347)
(629)
(1,440)
• change in derivative financial instruments, net of tax (20%)
(53)
99
176
• impairment of non-current assets, net of tax
580
321
196
Adjusted net profit
983
73
725
Added back:
• share of profits of Norilsk Nickel, net of tax
347
629
1,440
Recurring net profit
1,330
702
2,165
In 2024 and 2023, the Power segment accounted for 24.2% and 22.7% of the business segments’
revenues (before adjustments), respectively. As at 31 December 2024 and 31 December 2023,
the assets of the Power segment represented 32.5% and 32.7% of the Group’s total assets (before
adjustments), respectively.
For the year ended 31 December
USD mn
2024
2023
2022
Revenue
3,853
3,587
3,885
Gross profit
1,638
1,444
1,463
Gross profit margin
42.5%
40.3%
37.7%
Results from operating activities (EBIT)
1,149
1,027
849
Operating profit margin
29.8%
28.6%
21.9%
Pre-tax profit
722
550
619
Profit for the year
553
355
384
Net profit margin
14.4%
9.9%
9.9%
Adjusted EBITDA
1,446
1,292
1,254
Adjusted EBITDA margin
37.5%
36.0%
32.3%
Key financial results for the Power segment for the periods indicated
Revenues
In 2024, the Power segment’s revenue grew
by USD 266 million, or 7.4%, to USD 3,853 million
from USD 3,587 million in 2023, resulting from higher
average electricity prices and an average 6.5% increase
in the volume of electricity generation.
For the reasons described above, revenue from
electricity sales increased by 14.9% year-on-year
to USD 1,975 million.
In 2024, revenue from capacity sales grew by 6.3%
year-on-year to USD 603 million. The increase
was mainly due to higher selling prices compared
to 2023.
In 2024, revenue from heat sales decreased by 10.0%
year-on-year to USD 385 million, reflecting a decline
in heat supply in 2024 by 4.0% year-on-year
due to weather conditions, with the average monthly
temperature in 2024 being higher than in 2023
by an average of 1.0°C.
The Power segment’s electricity generation rose
from 85.2 billion kWh in 2023 to 90.7 billion kWh
in 2024. In 2023, HPPs produced 68.8 billion kWh
of electricity, or 80.8% of the total electricity
generated by the Power segment, while in 2024 they
generated 73.7 billion kWh of electricity, or 81.3%
of the total electricity generated by the Power
segment. The increase in HPP generation can primarily
be explained by an increase in water reserves.
Power segment
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
65
64
CONSOLIDATED REPORT 2024
The following table presents components of the Power
segment’s sales data for the years indicated.
Year ended 31 December
USD mn
2024
2023
2022
Average RUB/USD rate
92.57
85.25
68.55
Sales of electricity
Revenue, USD mn
1,975
1,719
1,861
Sales volumes, TWh
113.8
107.1
105.5
Average sales price (RUB/MWh)
1,607
1,368
1,209
Sales of capacity
Revenue, USD mn
603
567
598
Sales volumes, GW/year
163.2
162.5
163.3
Average sales price (RUB ‘000/MW)
342
297
251
Sales of heat
Revenue, USD mn
385
428
471
Sales volumes, mn Gcal
23.1
24.1
24.0
Average sales price (RUB/Gcal)
1,540
1,452
1,322
Sales of semi‑finished products, USD mn
315
309
341
Other revenue, USD mn
575
564
614
Total, USD mn
3,853
3,587
3,885
Cost of sales
The following table presents components of the Power
segment’s cost of sales (before intersegmental
elimination) for the years indicated.
Year ended 31 December
USD mn
2024
2023
2022
Electricity and capacity
628
599
642
Cost of materials
454
450
564
Personnel expenses
416
416
503
Depreciation and amortisation
204
217
211
Electricity transmission costs
144
157
194
Other
369
304
308
Total cost of sales
2,215
2,143
2,422
In 2024, the cost of sales of the Power segment rose
by USD 72 million, or 3.4%, to USD 2,215 million
compared to USD 2,143 million in 2023. The growth
was mainly due to an increase in purchased electricity
and capacity costs, as well as an increase in the cost
of services due to inflationary pressures.
Adjusted EBITDA and adjusted EBITDA margin
The following table presents the Power segment’s
adjusted EBITDA and adjusted EBITDA margin
for the years indicated.
Year ended 31 December
USD mn
2024
2023
2022
Adjusted EBITDA (HPP)
1,384
1,142
1,257
Adjusted EBITDA (CHP)
34
60
42
Adjusted EBITDA (other and unallocated items)
28
90
(45)
Adjusted EBITDA (Power segment)
1,446
1,292
1,254
Adjusted EBITDA margin (HPP)
85.7%
83.9%
84.0%
Adjusted EBITDA margin (CHP)
4.3%
7.6%
5.0%
Adjusted EBITDA margin (Power segment)
37.5%
36.0%
32.3%
In 2024, adjusted EBITDA of the Power segment
increased by USD 154 million, or 11.9%, from
USD 1,292 million in 2023 to USD 1,446 million.
The trend was mainly due to the same factors that
affected revenue growth.
The following table reconciles the Power segment’s
adjusted EBITDA to its results from operating activities
for the periods indicated.
Year ended 31 December
USD mn
2024
2023
2022
Results from operating activities
1,149
1,027
849
Adjusted for:
• amortisation
217
228
221
• (gain)/loss on disposal of property, plant and equipment
(1)
(8)
10
• impairment of non-current assets
81
45
174
Adjusted EBITDA
1,446
1,292
1,254
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
67
66
CONSOLIDATED REPORT 2024
Contingencies
The summary of the Group’s principal contingencies
is set out below. For a detailed discussion of the Group’s
contingencies in 2024, including legal, environmental
contingencies, environmental risks and considerations,
see Note 22 of the Annual Financial Statements.
Taxation
Russian tax, currency and customs legislation is subject
to varying interpretation and frequent changes.
Management’s interpretation of such legislation,
as applied to the Group’s transactions and activities,
may be challenged by relevant local, regional, or federal
authorities.
Notably, recent developments in the Russian legal
landscape suggest that tax authorities in Russia
are increasingly taking a tougher stand when
interpreting or enforcing tax legislation, particularly
in relation to the use of certain commercial and trade
transaction structures which can be used by taxpayers
but might be in conflict with the authorities’
earlier interpretations or practices. Recent events
in the Russian Federation suggest that the tax
authorities are taking a more assertive and substance-
based position in their interpretation and enforcement
of tax legislation.
An estimate of the maximum possible additional
amounts which may reasonably become payable
in respect of the Group’s tax risks is disclosed
in Note 22(a) of the Annual Financial Statements.
Legal contingencies
The Group’s business activities expose it to a variety
of lawsuits and claims which are monitored, assessed,
and contested on an ongoing basis. Where management
believes that a lawsuit or another claim would result
in an outflow of economic benefits for the Group,
a best estimate of such outflow is included in provisions
in the consolidated financial statements. The amount
of claims where management assesses outflow
as possible is disclosed in Note 22(с) of the Annual
Financial Statements.
Report on mandatory payments to governments
The table below shows the amounts paid by the Group’s
entities to public authorities (primarily in the form
of miscellaneous taxes and levies) in connection with
their extraction activities.
Type of payment in 2024, USD ‘000
Russia
Kazakhstan
Guinea
Guyana
Jamaica
Total
Production fees
-
-
-
-
-
-
Taxes or levies on corporate sales, production, or profits
47,490
19,106
15,253
-
6,737
88,585
Royalties
-
-
-
-
-
-
Dividends
-
-
-
-
-
-
Signing-on, discovery and production bonuses
-
-
-
-
-
-
Licence fees, rental charges, entry fees, and other
consideration for licences and/or concessions
4,310
1,033
-
157
140
5,640
Infrastructure improvement payments
4,086
313
-
-
-
4,400
Total
55,887
20,452
15,253
157
6,877
98,625
Going concern
The Group closely monitors and manages its funding
position and liquidity risk throughout the year, including
monitoring forecast results, to ensure that it has access
to sufficient funds to meet forecast cash requirements.
Cash forecasts are prepared on a regular basis, taking
into account sensitivity analyses including, but not
limited to, changes in electricity and aluminium prices,
foreign exchange rates, production volumes and cost
indicators. These forecasts and sensitivity analyses
allow management to mitigate liquidity or covenant
compliance risks in a timely manner. The situation
in Ukraine, as well as volatility in commodity, stock,
and FX markets and interest rates, create material
uncertainty in the Group’s ability to meet its financial
obligations on time and continue as a going concern
entity. Management constantly evaluates the current
situation and prepares forecasts taking into account
different scenarios of events. The Group’s management
expects that prices on the world commodity markets will
grow and improve results from our operating activities.
The Group is also redesigning its supply and sales chains,
ensuring an optimal equity and debt ratio, searching
for solutions to logistics issues, as well as ways to meet
its obligations in order to adapt fast to the current
economic changes to support the Group’s operations.
For a detailed discussion of the Group’s going
concern in 2024, see Note 1(e) of the Annual Financial
Statements.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
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CONSOLIDATED REPORT 2024
Investment programme
and modernisation
Our investment programme
is fully aligned with the Group’s
strategic objectives and
covers the Power and Metals
segments. The key focus
areas are modernisation
and expansion of existing
facilities and improvement
of the infrastructure reliability.
1
Capital expenditures are cash flows related to investing
activities – acquisition of property, plant, and equipment and
intangible assets. The results for the Group are given after
consolidation adjustments.
51
49
Maintenance
Development
474
1,239
1,711
394
1,056
519
1,366
‘22
‘23
‘24
1,448
1,878
Metals segment
Power segment
Breakdown of capital expenditures1 in 2024, %
Changes in capital expenditures by segment,
USD mn
Power segment
Description
Large-scale transition of Bratsk Aluminium
Smelter (BrAZ) and Krasnoyarsk Aluminium
Smelter (KrAZ) in Siberia to pre-baked
anode technology and state-of-the-art
and environmentally friendly electrolysers
designed in-house. The project is expected
to take a decade for completion.
Goal
1,070 ktpa
Capacity to be modernised
2024 results
The KrAZ and BrAZ projects were approved
by state experts. Site preparation
was completed, construction and installation
work is underway, equipment supply contracts
are being negotiated
Modernisation to support
transition to pre-baked anode
technology
Description
CHP modernisation under the CCA
NGF programme is aimed at eliminating
the shortage of electricity in Siberia.
Expected investments will be more than
RUB 170 billion by 2029 (USD 1.7 billion).
Project with guaranteed profitability.
Goal
690 MW
Increase in installed capacity of CHP-11
due to implementation of CCA NGF projects
2024 results
Core equipment design and supply contracts
were signed
Selection
stage
First stage
01.03.2024
Second stage
29.08.2024
Selected
460 MW
230 MW
Units
Units 10, 11
Units 12
Start date
for capacity
sales
31.12.2028
01.07.2029
CHP modernisation under
the CCA NGF2 programme
Metals segment
2
Competitive capacity auction for new
generating facilities.
Description
The project is essential to ensure uninterrupted
supply of high-quality pre-baked anodes
to Siberian aluminium smelters and reduce
primary aluminium production costs.
The implementation of the project will help
ensure 100% localisation of anode production,
avoid the need to consume imported products
and, as a result, reduce dependence on external
suppliers.
Total investments in the project have amounted
to more than RUB 52 billion (USD 511.4 million).
Stage 2 is expected to be launched in 2025.
Taishet Anode
Factory (TAF)
Goal
400 ktpa
Planned capacity
of Stage 2
2024 results
The second anode
baking furnace
was launched
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
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CONSOLIDATED REPORT 2024
Description
The programme is aimed
at improving the reliability
and safety of CHPs.
Total investments up
to 2028 will amount
to about RUB 26.4 billion
(USD 259.6 million),
realisation is subject
to effective mechanisms
for the return of invested
funds.
Goal
1.4 GW
Installed capacity of CHPs
to be modernised
2024 results
As of the end of 2024,
3 projects
out of eleven selected
in the Irkutsk Region
for the KOMMOD
programme were completed;
supply of power commenced
at six out of eleven supply
point clusters (55% of
planned capacity)
Description
The Company remains
committed to the
development of small-
scale hydropower
projects. In particular,
En+ is making progress
on the small-scale
Segozerskaya HPP
project in Karelia,
Russia, taking
advantage of a state
programme supporting
renewable-energy
projects through
the capacity allocation
contracts (CACs)
mechanism.
Goal
200 MW
Potential installed
capacity of new small
HPP projects
2024 results
The construction
of a concrete dam
of the pressure
front was started
at Segozerskaya HPP
Description
The Zashulanskoe coal deposit
project (with commercial
reserves of 663 mt) is aimed
at developing the resource
base for coal-fired generation
and export sales of coal.
The project is planned
to reach its full capacity
by the end of 2027. Planned
investments are more
than RUB 49.8 billion
(USD 489.8 million).
Goal
5.0 mt
Annual production of coal
for exports
2024 results
The construction of a road
and a substation to supply
electricity to the coal mining site
commenced
CHP modernisation
under the KOMMOD2
programme
Small HPP
projects
Development
of Zashulan coal
deposit
Power segment
2
Сompetitive selection of modernisation projects.
Description
A project to produce
and supply wind power
to the Russian power system.
According to preliminary
plans, phased commissioning
of capacity is planned
until 2031. Expected
investments will total
more than RUB 100 billion
(USD 983.5 million).
Goals
1 GW
Potential installed capacity
of the wind farm
Up to 3 bn kWh
Potential wind power generation
2024 results
Wind measurements are being
performed, the grid connection
design is being developed; initial
permits were obtained
Description
En+ is working on the issue
of building new large
HPPs. The implementation
of these projects will
be feasible provided that
effective mechanisms
for the return of invested
funds are developed.
Expected investments
will total more than
RUB 500 billion by 2042
(USD 4.9 billion).
Goal
2.2 GW
Potential installed capacity
of new HPP projects
2024 results
4 HPP
construction projects
are under consideration
Wind power
project
Development
of hydropower
Description
To improve the safety,
reliability, and efficiency of the Angara
and Yenisei cascade HPPs,
a programme is being implemented
to replace their core equipment,
including hydraulic units and runners.
The programme is expected to increase
efficiency by up to 8% and reduce
greenhouse gas emissions.
Investments in the programme
up to 2026 will total RUB 21 billion
(USD 206.5 million1), including
RUB 19 billion (USD 186.9 million)
already invested.
Goals
>2.4 bn kWh
Annual additional HPP generation
starting from 2026
2.8 mt of CO2e
Avoided GHG emissions from coal-fired
generation per year
2024 results
2.5 bn kWh
Additional HPP generation in 2024
2.9 mt of CO2e
Avoided GHG emissions from coal-fired
generation in 2024
The first stage of modernisation of Irkutsk
HPP was successfully completed in 2024.
Four out of eight hydraulic units were
replaced. At the same time, runners were
replaced at Krasnoyarsk HPP and Bratsk
HPP
New Energy HPP
modernisation programme
1
Hereinafter in this section, calculated using the RUB/USD exchange rate of RUB 101.6797 per dollar as at 31 December 2024.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
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72
CONSOLIDATED REPORT 2024
02
Making life
comfortable
En+ is a global leader in low-carbon
aluminium production and the world’s
largest independent hydropower
producer. We help millions of large
consumers to do their business
and produce energy and heat for
Russian consumers.
Sustainable
development
USD 212.3 mn
environmental investments
USD 76 mn
social investments
ALLOW INERTA
aluminium brand with lowest
carbon footprint
76
Sustainability management
78
Contribution to the UN SDGs
and the National Development
Goals of the Russian Federation
80
Cooperation and partnerships
83
Materiality assessment
86
Stakeholder engagement
90
Climate and environment
90
Climate change and energy
management
104
Environment protection
122
People
122
Occupational health and safety
136
Employees
148
Contribution to local
communities
160
Governance
160
Corporate governance
181
Information for shareholders
and investors
186
Internal control and risk
management
194
Corporate ethics and
compliance
202
Supply chain management
206
Responsible business
practices
Board of Directors, En+ Group
Health, Safety and Environment
Committee
CEO,
En+ Group
Public Relations Directorate
HR Directorate
OHS² Directorate
Sustainable Development Directorate
Functional units and divisions of enterprises
Compliance Directorate
Department of Communications and
Social Projects
Department of Sustainable
Development Projects
Environment Department
Water Bioresources Unit
Climate Risk Department
Strategic Partnerships in Sustainable
Development
Power segment
Board of Directors, Metals
segment, RUSAL
Health, Safety
and Environment
Committee
CEO, RUSAL
Public Expert Council on Sustainable
Development
Social Policy Committee
Strategy and New Projects Financing
Committee
Production Directorate
Occupational Health, Industrial and
Fire Safety Department
Sustainable Business Department
Department of Ecology and Climate
HR Directorate
Sustainable Development Directorate
Centre for Social Programmes
Compliance Directorate
Functional units and divisions of enterprises
Metals segment
Sustainability
management
Sustainability management approach
GRI 2-12, 2-13, 2-14
Sustainability management is embedded within
the Company’s corporate governance system.
Sustainability management responsibilities lie with
the Boards of Directors of En+ Group and RUSAL.
The relevant committees of the segment’s Boards
of Directors hold regular joint meetings to track
the sustainability strategy status.
En+ Group’s sustainability governance structure
IS0 9001:2015
Quality management
systems
25 enterprises
of the Metals segment
are certified
IS0 45001:2018
Occupational health
and safety management
systems
100% of business
units of the Power
segment are certified
and 13 business units
of the Metals segment
are certified
ISO 50001:2018
Energy management
systems
Aughinish Alumina Refinery
is certified
ISO 26000:2012
Guidance on social
responsibility
Meets system
requirements,
no certification
IS0 14001:2015
Environmental
management systems
All HPPs and CHPs
of the Irkutsk region,
as well as 22 enterprises
of the Metals segment,
are certified1
ISO 37001:2016
Anti-bribery
management systems
In 2023, the assessment
yielded an AA+ class
rating, indicating
a robust level
of anti-corruption
ISO 27001:2005
Information security
management systems
Meets system
requirements,
no certification
ASI Performance and
ASI Chain of Custody
18 enterprises of the Metals
segment are certified
GRI 2-25
To manage the environmental impact, as well as the social and economic aspects of the business,
En+ Group develops its management system in accordance with ISO standards and ASI industry
standards.
1
Except for mothballed facilities.
2 Occupational health and safety.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
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76
CONSOLIDATED REPORT 2024
En+ Group’s sustainability
priorities and targets
Climate action
Conservation and
protection of ecosystems
Circular economy and waste
management
Development of human capital
Sustainable urban
environment
Collaboration and partnerships
UN Sustainable Development
Goals
National development
goals of the Russian
Federation
• Sustainable and dynamic
economy
• Technological leadership
• Environmental well-being
• Technological leadership
• Environmental well-being
• Technological leadership
• Preservation of the population, promotion
of health and well-being of people, support
for families
• Realisation of the potential of each individual,
talent development, and fostering a patriotic
and socially responsible personality
• Sustainable and dynamic economy
• Digital transformation of the public
administration, economic and social sectors
• Environmental well-being
• Comfortable and safe
environment for living
• Digital transformation of the public
administration, economic and social
sectors
Indicators of contribution
to the national goals
RUB 19 bn
Invested in New Energy
modernisation programme
> RUB 600 bn
Total expected investments
in new HPPs and WPP
83
Number of events
organised by the Company
to clean up river banks and
water bodies
RUB 171.3 mn
Social investments in
environmental and animal
protection in 2024(0.01%
of revenue)
RUB 19.6 bn
Total environmental
protection cocsts in 2024
(1.4% of revenue)
62.4%
Share of waste was
recycled
RUB 13.7 bn
Employee welfare costs in 2024 (1% of revenue)
RUB 28.8 bn
Total retirement costs in 2024(1.9% of revenue)
RUB 776.8 mn
Social investments in
social infrastructure and
urban environment in 2024
(0.06% of revenue)
RUB 283.8 mn
Ratio of the Company’s
Social investments
in healthcare in 2024
(0.02 of revenue)
RUB 1.9 bn
Social investments
in educational projects
in 2024 (0.12% of revenue)
RUB 2.3 bn
R&D costs in 2024 (0.2% of revenue)
RUB 1.5 bn
Social investments in development
of NPOs and local communities in
2024(0.11% of revenue)
RUB 1.8 bn
Social investments in sports in 2024
(0.1% of revenue)
Contribution to the UN SDGs and the National
Development Goals of the Russian Federation
GRI 2-23
En+ Group embraces the United Nations Sustainable
Development Goals (UN SDGs) and focuses on nine top
priority goals for its operations and for stakeholders,
as well as the national goals of the Russian Federation
(RF). Every year, the Company implements various
En+ Group reports on its contribution to the
global sustainability agenda in its annual SDG
Report. In the previous report, the Company
disclosed information on En+ Group’s contribution
to the achievement of the National Development
projects and organises events to contribute
to economic development, social welfare, science and
technology advances, as well as to ensure environmental
sustainability and enhance the quality of life for people
across Russia.
Goals of the Russian Federation for the first time.
The methodology formed by the national ESG Alliance
was used as a guidance.
For more details on En+ Group’s contribution
to the Sustainable Development Goals and the
National Development Goals of the Russian
Federation, see the SDG Report for 2024
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
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78
CONSOLIDATED REPORT 2024
En+ Group is convinced that even the most ambitious global
challenges can be successfully solved through collaboration
Organisation
En+ Group’s role
Advocacy of the sustainability agenda
National ESG Alliance
En+ Group is one of the founders of the National ESG Alliance, an alliance of corporate
of ESG leaders.
In 2024, En+ Group headed the working group on the Climate Agenda, which produced
of an interactive map of climate projects in Russia, preparation a methodology
on assessing climate-related risks for the non-financial sector of events at the BRICS
Climate Forum and the UN Climate Change Conference (UNFCCC COP 29). En+ Group
also participated in the development of a methodology to help the private sector report
on its contribution to the achievement of the National Development Goals of the Russian
Federation.
United Nations Global Compact
Starting from 2019, En+ Group has been publishing an annual Communication on Progress
report detailing its efforts made as part of its sustainable corporate development.
In addition, in 2024 the Company contributed to the establishment of the Energy
Transitions Working Group within the Local Network of the UN Global Compact in Russia.
Business 20, B20
En+ Group actively contributed to the work of B20 Task Force on Energy Transition and
Climate, and Task Force on Trade and Investment. En+ Group’s proposals on promoting
internationally-accepted methodologies for calculating and reporting the carbon
footprint of products taking into account different sectoral requirements were included
in the corresponding B20 Policy Papers. En+ Group’s suggestions on carbon footprint
reduction through re-usage of recycled materials are also reflected in the documents.
BRICS Business Council
En+ Group continues to chair the Russian Chapter of the Energy, Green Economy and
Climate Working Group at BRICS Business Council. In 2024, under Russia’s presidency
in BRICS, the Working Group continued to work on the creation of BRICS Energy Skills
Roadmap, the establishment of BRICS Centre of Excellence and the establishment
of BRICS Clean Energy Fund. The Working Group also introduced two initiatives: BRICS
Fairy Tales about Renewable Energy Sources and the Initiative on developing a Hub
Infrastructure for the Integration of the National Voluntary Carbon Markets. Both
initiatives were presented at COP29.
Baikal Plastic Free Alliance
The Baikal Plastic Free Alliance was initiated by En+ Group and united 25 organisations
in the region (three new organisations in 2024).
For more details on the Alliance’s activities in 2024, see the Contribution to Local
Communities section
Organisation
En+ Group’s role
World Water Forum
In 2024, En+ Group took part in the 10th World Water Forum. Three En+ Group projects
(New Energy, Scientific and Environmental Monitoring of Lake Baikal, Baikal Plastic Free
Alliance) were recognised as best practices in the field of water resources management
in the compendium to the Ministerial Declaration signed by 106 countries following
the Forum.
Transparency
Aluminium Stewardship Initiative
(ASI)
ASI is an international standards development and certification body focused
on advancing responsible practices across the aluminium value chain. The En+ Group’s
Metals segment assists ASI in developing certification systems and promoting
the widespread adoption of standards.
International Aluminium Institute
(IAI)
Within this community, representatives of En+ Group’s Metals segment advocate
for responsible production, sustainable use, and recycling of aluminium through
participation in various committees.
Carbon Disclosure Project (CDP)
In 2024, both En+ Group segments submitted their respective climate change reports
to the CDP.
Climate agenda
Carbon Pricing Leadership
Coalition (CPLC)
En+ Group and RUSAL are the only Russian members of CPLC, a voluntary partnership
under the auspices of the World Bank to advance global carbon pricing.
Climate Partnership of Russia
In 2024, at the Carbon Digital Conference 2024 (CDC2024), an international conference
on the development of carbon markets and the use of digital technologies in the climate
sphere, the Climate Partnership of Russia presented En+ Group’s climate projects as best
practice.
Conference of the Parties
to the UN Framework Convention
on Climate Change (UNFCCC)
En+ Group and RUSAL regularly participate in the UNFCCC COP meetings. In 2024,
at COP29 En+ Group facilitated a session by the Committee on Sustainable Energy
Transition under the auspices of the UN Global Compact Network Russia. Representatives
of various business associations and research institutes from South Africa, and Brazil
presented their case studies at the session.
Cooperation and partnerships
GRI 2-28
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
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80
CONSOLIDATED REPORT 2024
Prioritising and grouping impacts into topics
• Setting a threshold to filter out less significant
impacts
• Grouping significant impacts into topics
• Prioritising material topics based on their resulting
significance
• Testing material topics against international
standards, industry best practices, and guidlines
(including in the context of the GRI industry standard
for the mining sector GRI 14: Mining Sector 2024)
Output
Significant impacts grouped into topics
Assessment of the significance of impacts
• Ddetermination of the method to incorporate stake-
holder views
• сonducting a stakeholder survey to identify the most
significant positive and negative impacts
Output
A list of impacts ranked by stakeholders
Approval of the list of material topics
• adjustment of the priority of topics by the working
group preparing the Report
• Review and approval of the final list of material
topics by En+ Group’s senior management and
the HSE Committee of the Board of Directors
Output
A list of approved material topics
Materiality assessment
GRI 3-2
Based on the survey results, En+ Group
specialists formed a ranked list of impacts and
grouped them into 18 topics with a breakdown
into three priorities.
GRI 2-14
At the final stage, the HSE Committee
of the Board of Directors reviewed and
approved the final list of material topics
disclosed in the 2024 Consolidated Report.
GRI 3-1, 2-25
En+ Group assesses materiality based on the GRI
standards and its own methodology. The Company’s
approach to materiality assessment remained
unchanged in 2024: En+ Group analyses the context
of the Company’s operations with the involvement
of stakeholders.
In 2024, 103 representatives of various groups
of En+ Group’s stakeholders took part in the survey.
For more details on the materiality assessment process,
see the Appendix 3 Additional ESG Data
GRI 2-14, 3-1
En+ Group’s materiality assessment stages
Identification of the Company’s impacts
• Analysis of En+ Group’s context by internal experts:
business model, Company’s strategies, lines of
business (bauxite mining, alumina processing, alumin-
ium production, electric and thermal energy), busi-
ness relations (relationships with partners and within
the supply chain)
• Analysis of feedback from stakeholders, their
suggestions and comments, including those made
through feedback mechanisms
• Benchmarking of impacts and material topics
disclosed in the reports of Russian and international
metals, mining and energy companies in 2024
• Analysis of the requirements set forth in international
industry standards and initiative guidelines
Output
A list of En+ Group’s actual and potential positive and
negative impacts
Organisation
En+ Group’s role
Energy transition
UN Energy Compact Initiative
En+ Group was the first Russian company to join the UN Energy Compact, a United
Nations initiative on sustainable energy to advance the achievement of SDG 7 (Affordable
and Clean Energy).
In 2024, En+ Group updated the UN Energy Secretariat on the progress made
in implementing the New Energy Programme and the En+ Group’s Renewable Energy
Certificates project, thus maintaining its membership in the UN Energy Compact
initiative.
Hydropower of Russia Association
In January 2024, the assessment system developed by the Association with the active
involvement of En+ Group, including the standard “Methodology for assessing
the compliance of operating hydropower facilities with sustainable development criteria”
operating rules and a compliance mark, were registered as a voluntary certification
system with Rosstandart.
Russian Renewable Energy
Development Association
(RREDA)
In 2024, En+ Group joined the Renewable Energy Development Association to strengthen
stakeholder engagement as part of the project to build a wind farm in the Far East.
In December, with the support of En+ Group, RREDA published an analytical overview
of the BRICS countries’ energy sectors “BRICS Fairy Tales about Renewable Energy
Sources.”
National Association of Raw
Materials Recycling
To increase the share of recycling and reuse of waste generated by the Power segment,
En+ Group joined the National Association of Raw Materials Recycling.
ESCAP Sustainable Business
Network (ESBN)
In 2024, En+ Group became a member of the Circular Economy Task Force and the Energy
Task Force at the ESBN, a voluntary business partnership under the auspices of the UN
Economic and Social Commission for Asia and the Pacific (ESCAP). The ESCAP position
paper: “The Secrets to Unlocking the Next Frontier for a Circular Economy in the Asia-
Pacific Region” included the best practices of the En+ Group’s Power and Metals segments.
Stage 1
Stage 3
Stage 2
Stage 4
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
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CONSOLIDATED REPORT 2024
Value chain stages
Key input
Key output
Key effect
Sustainability risks
Material topics
General processes
of the Company
• Production and
distribution infrastructure
• Financial capital
• Governance system
• Royalties
• Financial performance
• Taxes
• Payments to suppliers
• Salaries and social benefits
for employees
• Skilled employees
• Social investments
• Affordable heat and
electricity for consumers
• Creation of shareholder
value
• Economic development
of the regions
of responsibility
• Employment stability
• Professional development
of employees
• Regional development
• Innovation development
• Sanctions risks
• Compliance risks
• HR risks
• Risks of human rights violations
• Risks of negative impact
on sustainable development
in the supply chain
• Information security risks
• Economic performance
• Just energy transition and low-carbon
products
• Sustainable supply chain
• Occupational health and safety
• Human rights
• Diversity and equal opportunity
• Employees management and
engagement
• Local community engagement
• Innovation management
• Business ethics
• Environmental compliance and
the best available technologies (BAT)
• Corporate governance
Bauxite mining
• Bauxite reserves
• Land resources
• Water
• Bauxite
• Rehabilitated land
• Waste
• Biodiversity impact
• Impact on land resources
• Physical climate-related risks
• Biodiversity loss risks
• OHS risks
• Occupational health and safety
• Safe waste management
• Biodiversity
• Climate change
Alumina refining
• Bauxite
• Caustic soda
• Calcium carbonate
• Water
• Fuel
• Alumina
• Air emissions
• Greenhouse gas emissions
• Waste
• Contribution to climate
change
• Impact on land resources
• Transition climate-related risks
• Environmental risks
• Safe waste management
• Climate change
Heat and electricity
generation
Heat and electricity co-generation (CHP)
• Land resources
• Coal
• Water
• Heat and electricity
• Air emissions
• Rehabilitated land
• Contribution to climate
change
• Air emissions
• Impact on land resources
• Transition climate-related risks
• Environmental risks
• Air quality
• Safe waste management
• Energy management
• Climate change
Electricity generation (HPP)
• Water
• Land resources
• Electricity
• Noise
• Water level fluctuations and
flood protection
• Biodiversity impact
• Physical climate-related risks
• Biodiversity loss risks
• Water and wastewater management
• Biodiversity
• Energy management
• Climate change
Aluminium production
• Alumina
• Energy
• Aluminium scrap
• Water
• Fuel
• Aluminium and its products
• Air emissions
• Greenhouse gas emissions
• Waste
• Wastewater
• Contribution to climate
change
• Water pollution and
reduction of water
reserves
• Transition climate-related risks
• OHS risks
• Environmental risks
• Occupational health and safety
• Water and wastewater management
• Air quality
• Safe waste management
• Climate change
Value chain
GRI 2-6, 3-2, 203-2
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SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
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CONSOLIDATED REPORT 2024
Stakeholder engagement
Matters of concern in 2024
Engagement methods
Detailed information
Main
Additional
Associations and initiatives
• Promotion
of hydropower
• Adaptation of HPPs
to climate change
• Promotion of renewable
energy certificates
• Circular economy
• Energy efficiency
• Participation in working
groups and committees
• Participation in dedicated
forums and conferences
• Corporate reporting and
website publications
• Annual feedback
collection as part
of the Consolidated
Report preparation
• Public assurance
of sustainability
reporting
Investment Programme
and Modernisation
section
Climate Change and
Energy Management
section
Environmental
Protection section
Suppliers and customers
• Import substitution
of goods and services
• Supplier qualification
conditions
• ESG accreditation
of suppliers
• Сarbon footprint
of products
• Supplier portal
• Tender platforms
• Signal corporate hotline
• Participation
in dedicated forums
and conferences
• Email communication,
official
correspondence
• Annual feedback
collection as part
of the Consolidated
Report preparation
Supply Chain
Management section
Business Review section
Responsible Business
Practices section
En+ Group employees
• Motivation and
remuneration
• Social support
for employees
• Career development
and personal
advancement
opportunities
• Safe work environment
• Intranet portal
for employees
• Annual Q&A sessions with
the management team
• Your Voice annual
employee satisfaction
and engagement survey
• Signal corporate hotline
• Contact with trade unions
and worker committees
• Annual feedback
collection as part
of the Consolidated
Report preparation
Employees section
Corporate Ethics and
Compliance section
Occupational Health and
Safety section
Matters of concern in 2024
Engagement methods
Detailed information
Main
Additional
Government authorities
• Regulatory compliance
• Contribution
of the Company
to the economy
and sustainable
development
• Corporate reporting and
website publications
• Provision of access and
necessary information
to supervisory authorities
• Email communication,
official correspondence
• Participation
in workshops, round
tables and ministerial,
interagency, and regional
meetings
• Annual feedback
collection as part
of the Consolidated
Report preparation
Corporate Ethics and
Compliance section
For more details on
the contribution to the
National Development
Goals and the UN SDGs,
see the Sustainability
Management section
GRI 2–13, 2–25, 2–26, 2–29, 3–3
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
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86
CONSOLIDATED REPORT 2024
Matters of concern in 2024
Engagement methods
Detailed information
Main
Additional
Non-profit organisations (NPOs) and local communities
• Improvement
of the urban
infrastructure
in the regions
of responsibility
• Implementation
of social and charity
projects
• Community liaison
offices in the Company’s
cities and towns
of responsibility
• PLUS public space
• Annual community
surveys
• Organisation of public
events
• Grant competitions
to support local NPO
initiatives
• Participation in dedicated
forums and conferences
• Corporate reporting
• Email communication,
official
correspondence
• Public assurance
of sustainability
reporting
• Annual feedback
collection as part
of the Consolidated
Report preparation
Contribution to Local
Communities section
The public opinion
in the operating
regions is analysed
as part of preparing
the Sustainable Cities
Responsibility Index
For more details, see the
Contribution to Local
Communities section
Metal and stock exchanges
• Disclosure of financial
performance
• Transparent
corporate governance
and sustainable
development practices
• Corporate reporting and
disclosure of information
about material events
on the corporate website
• Email communication,
official correspondence
• Disclosure of information
under exchange rules
• Annual feedback
collection as part
of the Consolidated
Report preparation
For more details on
disclosure channels,
see the Information
for Shareholders and
Investors section
Corporate Governance
section
Matters of concern in 2024
Engagement methods
Detailed information
Main
Additional
Rating agencies (including ESG rating agencies)
• Transparent corporate
governance practices
• Invitation to participate
in sustainability ratings,
competitions, and
conferences
• Questions regarding
the calculation
of environmental,
energy efficiency, OHS,
and employer social
responsibility indicators
• Provision of information
as part of assignment
of ratings
• Corporate reporting and
disclosure of information
about material events
on the corporate website
• Email communication,
official correspondence
• Public assurance
of sustainability
reporting
• Annual feedback
collection as part
of the Consolidated
Report preparation
Corporate Governance
section
ESG Databook
Shareholders, investors, and financial analysts
• Provision of information
on the energy and
aluminium market
developments
• Clarifications
on financial
performance changes
• New investment
projects
• Distribution of profits
• Digitalisation projects
• General meeting
of shareholders
• Mandatory issuer
disclosures
• Corporate reporting and
website publications
• Annual feedback
collection as part
of the Consolidated
Report preparation
Business Review section
Financial Review section
Investment Programme
and Modernisation
section
Information for
Shareholders and
Investors section
Responsible Business
Practices section
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
89
88
CONSOLIDATED REPORT 2024
Climate and environment
Climate change and energy management
4.3%
a year-on-year decrease in specific intensity of GHG
emissions of Power segment
5,300 tonnes
of aluminium has been produced using inert anode
technology since launch (910 tonnes in 2024)
Governance
GRI 3-3
The climate change and climate-related risk
management system ensures that tasks are resolved
effectively and their implementation is closely
monitored.
∙Regulations on Risk Management
∙Environmental Policy
∙Technical Policy
∙Methodology for determining direct GHG emissions
during the production of primary aluminium
∙Methodology for determining direct GHG emissions
during the production of alumina
∙Climate strategy
Material topics
∙Climate change
∙Energy management
∙Just energy transition and low-carbon products
Board of Directors
• Oversees the implementation of ESG policies and
monitors the achievement of climate targets
Health, Safety, and Environment Committee
• Pursuant to the Regulations on the Committee,
supervises the management of climate-related
risks and opportunities and provides relevant
information to the Board of Directors. The Committee
receives quarterly updates regarding developments
in international and Russian climate change laws,
as well as innovations in this area. Based on this
information, it formulates yearly suggestions
for adjusting climate objectives and presents them
to the Board of Directors for review, if needed
CEO
• The CEO is responsible for implementing
strategic climate decisions adopted by the Board
of Directors. Assumes the primary responsibility
for the operational tasks within this domain.
The CEO annually approves internal climate
goals of En+ Group and the budget for activities
to achieve them
• The CEO participate in operational committees
and meetings that address climate-related risks
and the strategies for managing them, while also
making decisions in this area
Audit and Risk Committee
• Reviews the Company’s risk portfolio, including
its alterations and key risk management programmes,
particularly concerning climate-related risks,
on a quarterly basis
Managing Committee on Climate Policy
• It manages the implementation of measures
to achieve climate goals
Climate-related risk Department
• Being part of the Sustainable Development
Directorate, it reports to the Director
for Sustainable Development in the field
of climate.
• It provides quarterly updates to the HSE
Committee and the Board of Directors regarding
the progress of achievement of the climate goals
and the progress of activities to manage climate-
related risks and opportunities
GRI 2-13
Allocation of responsibility for climate change management
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
91
90
CONSOLIDATED REPORT 2024
En+ Group decarbonisation roadmap, mt of СO2e
‘18
‘20
‘21
‘22
‘23
‘24
‘25
‘30
‘32
‘35
‘40
‘50
-0.4
25.1
-0.4
Power segment
Metals segment
Offsets
Balance
-0.4
-0.4
-1.9
-10.8
-13
-19.7
-29
-47.4
22.9
23.0
25.2
26.5
27.2
23.1
22.7
21.3
18.3
16.2
15.7
42.0
38.6
38.9
40.5
39.4
39.4
39.7
41.3
43.2
45.2
41.8
31.7
67.1
61.1
61.5
65.3
65.5
66.6
61.0
53.2
51.5
43.6
29.0
0.0
0%
0%
0%
0%
0%
0%
9%
21%
23%
35%
57%
100%
Strategy
GRI 3-3, 14.1.1, SASB EM-MM-110a.2, IF-EU-110a.3
In pursuit of carbon neutrality by 2050, En+ Group
has crafted a roadmap for decarbonisation. It sets
forth targets for gross greenhouse gas emissions and
the activities required to achieve them by segment
for each year.
The Company annually publishes its Pathway
to Net Zero Progress reports. In November 2024,
the Company presented the report to stakeholders
at the “Net Zero Day” event.
GRI 2-13
The Board of Directors is responsible for managing
energy consumption. The Chief Executive
Officer provides energy efficiency reports
which are then reviewed by the HSE Committee
of the Board of Directors. The Technical Directorate
is in charge of overseeing efficiency improvements
at the operational level for both En+ Group segments.
The Group has identified climate and energy efficiency
KPIs that play a role in the remuneration of managers
throughout the Company structure. For example,
for the Chief Sustainability Officer, the climate KPI
accounts for 5% of the annual bonus. In 2024, this
indicator associated with the verification of calculations
of greenhouse gas emissions from the reservoirs
of the Angara HPP cascade was achieved successfully.
GRI 2-25
The main documents governing the Company’s climate
change management is the Environmental Policy and
the Climate strategy. Energy consumption is also
governed by En+ Group’s Technical Policy. Aughinish,
Alumina Refinery, is recognised with ISO 50001
certification, which verifies the effective deployment
of an energy management system.
Development of products
with a low carbon footprint
100% of the Metals segment’s products
meet the criterion of a low carbon
footprint product – a carbon footprint
of less than 4 t of CO2e per tonne of
aluminium (Scope 1 and 2). The products
are sold under the ALLOW brand, with
a carbon footprint of 2.3 t of CO2e per
tonne of aluminium (Scope 1 and 2),
ALLOW INERTA, aluminium with a carbon
footprint of 0.01 t of CO2e per tonne of
aluminium (Scope 1 and 2). The product
portfolio is enriched with products
involving recycled aluminium scrap
(foundry alloys for wheel production,
flat ingots for can strip production,
cylindrical ingots).
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
93
92
CONSOLIDATED REPORT 2024
Net Zero Roadmap activities
GRI 3-3, 305-5
Power
segment
Metals
segment
Alumina
production
Generation of low-
carbon energy
Aluminium
production
Neutralisation
Power
generation
at CHPs
Transportation
Activity
Activity
Improving energy efficiency
All plants of the Alumina Division
regularly implement relevant
projects.
At the Achinsk Alumina Refinery,
a project is underway to capture CO2
using alkaline bottom-sludge water
in scrubbers. The project has been
recorded in the Russian carbon unit
register.
Progress:
Upgrading aluminium smelters
The Company’s aluminium smelters
continue to convert electrolysers
to Eco-Soderberg and pre-baked
anode technologies.
Progress:
The project to improve the energy
efficiency of filtration and
calcination shop equipment
through the construction and
commissioning of a new cyclone
furnace at the Bogoslovsky
Aluminium Smelter was also included
in the Russian register of climate
projects.
Forest aerial protection
The air patrol and forest fire
prevention project has been
implemented since 2019 and
is registered in the Russian register
of carbon units.
Rewetting of drained peatlands
Ongoing research in the Leningrad
Region is focused on identifying
the most appropriate previously
drained peatlands for watering
purposes.
Verification and certification of HPPs
En+ Group obtained a global
certification for the verification
of greenhouse gas emissions
originating from HPP reservoirs.
The verification of reservoir emissions
allowed the Power segment
to complete the registration of four
HPPs in the National Low-Carbon
Electricity Certification System.
HPP qualification is necessary
to issue generation attributes
confirming the low carbon footprint
of the electricity produced and
then sell them to companies and
individuals interested in reducing
their climate impact.
Progress:
Construction of new HPPs and WPP
The projects are designed to provide
regions with renewable energy.
For more details on the
construction of HPPs and WPP,
see the Investment Programme
and modernisation section
Progress:
Conversion of CHPs to gas
The government of the Irkutsk
Region, together with a gas
company, is developing a gasification
programme for the region, under
which the possibility and conditions
for transferring the Group’s CHPs
to gas fuel are being considered.
Energy efficiency measures
The Company continues
to implement energy efficiency
projects at the Group’s CHPs.
Progress:
Hydrogen transport infrastructure
En+ Group is deploying projects
aimed at developing hydrogen-
fuelled corporate vehicles and
related infrastructure, including
electrolysers and refuelling stations.
In the reporting year, it implemented
a project to develop infrastructure
for hydrogen passenger transport
in Irkutsk and Krasnoyarsk.
Electric vehicle infrastructure
In 2024, En+ Group installed 19
charging stations for electric vehicles
in the Irkutsk Region.
Progress:
HPP modernisation
The Company continues to implement
the ‘New Energy’ Programme.
For more details on the progress
of the ‘New Energy’ programme,
see the Investment Programme
and modernisation section
Progress:
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
95
94
CONSOLIDATED REPORT 2024
Risk management
GRI 201-2, 14.2.1, 14.2.2
En+ Group regularly identifies, analyses and
assesses the materiality of climate-related risks
as part of the overall risk management process
in accordance with the internal Regulations on Risk
Management,the guidance of the IFRS Foundation’s
International Sustainability Standards Board and
the Methodological Recommendations of the Ministry
of Economic Development of Russia1. The assessment
involves the following:
∙Analysis of data on climate-related risks and
opportunities
∙Risk prioritisation using the scenario approach
∙Evaluation of how risks align with the general
risk management principles of En+ Group and
development of the management activities,
if necessary
The materiality and priority of climate-related
risks are assessed by evaluating how likely they
are to happen and the potential effects if they
do, while the strategic implications are gauged
by examining their financial impacts. En+ Group ranks
risks based on their materiality: the most significant
of them are characterised by a high or medium
likelihood of occurrence, as well as consequences that
are of maximum, high, or medium importance. In cases
where a risk presents a low chance of happening
yet carries the potential for severe repercussions,
the Company often transfers it (most often through
insurance). En+ Group additionally monitors risks
with a low probability of occurrence and insignificant
consequences and considers them acceptable.
Short term
up to 2025
En+ Group assesses climate-related risks over three planning horizons,
but most of the risks are relevant in the long term.
Medium term
Long term
up to 2050
up to 2030
sustainable scenario: a 1.5–2 °C
increase in average temperatures
intermediate scenario: a 2–4 °C
increase in average temperatures
active consumption of fossil
fuels: a 4–7 °C increase in average
temperatures
The assessment uses the following SSP (Shared
Socioeconomic Pathways) climate change scenarios:
SSP 126
SSP 245
SSP 585
GRI 201-2, 14.2.1, 14.2.2
The Company takes into account in its business strategy
both physical climate-related risks, i.e., those associated
with weather events related to climate change, and
transition risks, i.e., those caused by the transition
to a low-carbon economy.
In the reporting period, the list of transition and
physical risks and an assessment of their impact
on the Company’s operations were updated. Physical
risk assessment spans across the entire perimeter
of the Group. En+ Group updates the register
of physical risks on a quarterly basis and monitors
the relevant mitigation measures.
1
Order of the Ministry of Economic Development of Russia No. 267 dated 13.05.2021 On the Approval of Methodological Recommendations and
Indicators on Adaptation to Climate Change.
Opportunities associated with physical risks:
Construction of facilities generating low-carbon energy
Cost and fuel and energy savings due to reduced heating
season
Opportunities associated with transition risks:
Adoption of low-carbon technologies driven by their
progress and long-term affordability
Increased sales of products with a low carbon footprint
Access to new and emerging markets
Emergence of new economic instruments: RES attribute
certificates, carbon units from climate projects, ESG
financing instruments
In 2024, En+ Group did not include risks related
to energy management in the overall list of risks.
Despite this, the Group consistently implements
initiatives to increase the efficiency of using fuel and
energy resources across its enterprises, thus minimising
risks associated with energy consumption and energy
efficiency.
GRI 201-2, 14.2.1, 14.2.2
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
97
96
CONSOLIDATED REPORT 2024
Transition risks
Business segment
Transition climate-related risk
Potential incident / risk event
Short-term impact on the EBIT
of the Group’s entities
Risk management activities
Aluminium Division
Introduction of the Carbon Border
Adjustment Mechanism in the EU and
mirror mechanisms in aluminium export
countries
Increase in operating expenses
due to carbon charges per tonne
of aluminium exported
USD 2—10 million
Implementation of a climate strategy to reduce the carbon footprint of the plants
producing aluminium for export
Entire company
Introduction of carbon regulation
in Russia
Increase in operating expenses
due to carbon tax per tonne
of GHG emissions
—
Implementation of the Climate Strategy, investment and operational projects to reduce
CO2 emissions.
Interaction with authorities through participation in associations, working groups;
comments on and adjustments to low-carbon development bills
Physical risks
Business segment
Hazard
Physical climate-related risk
Potential incident / risk
event
Short-term impact
on the EBIT of the Group’s
entities
Risk management activities (climate change adaptation
measures)
Hydropower generation
Decrease in the overall water intake
Reduced power generation
Reduced revenue
in the wholesale electricity
and capacity market
up to USD 50 million
• Continuous monitoring of the evolving water and energy
situation
• Conducting research work on adapting the operating modes
of HPPs to climate change
• Implementation of an automated information system into
the practice of managing the cascade modes, including
databases of meteorological, hydrological and water
management information, mathematical models of runoff
formation and a simulation model of the functioning
of the cascade reservoirs
Coal
Heavy rains, severe frost
Flooding due to heavy rains
Lagging behind
the production plan and
decrease in coal mining
revenue
USD 1—2 million
• Creation of coal reserves during a period of favourable
weather conditions
• When upgrading equipment, giving preference to technical
devices and machines operating in a wider temperature range
1
Material climate-related risks are defined as those with a probabilistic financial loss exceeding USD 1 million.
Register of material1 climate-related risks
Consolidated financial assessment of the climate-related risks impact on En+ operations
up to USD 50 mn per year
Probabilistic financial loss from the realisation
of physical climate-related risks in the short term
up to USD 10 mn per year
Probabilistic financial loss from the realisation
of transition climate-related risks in the short term
USD 10.2 mn
Actual financial loss from the realisation of physical
climate-related risks in 2024
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
99
98
CONSOLIDATED REPORT 2024
Targets
Status
Progress made in 2024
A 35% reduction in GHG emissions by 2035 compared
to 2018
On track
As a result of upgrading capacity and
developing energy-saving measures,
emissions were cut by 1% compared
to the baseline year
Net Zero by 2050
On track
Reducing the average carbon intensity of electricity
produced and consumed
On track
In the reporting period, the carbon
intensity of electricity produced
decreased by 4.3% in the Power segment
Increasing the use of energy from alternative sources
by 2030
On track
The Company is working on HPP and WPP
construction projects
Increasing clean electricity generation by 2.5 TWh, and
preventing emissions of over 2.5 mt of CO2e per year from
coal-fired power plants from 2025 onwards
On track
Annual hydropower generation rose
by 2.5 TWh, reducing annual emissions
of 2.9 mt of CO2e by partially substituting
demand for electricity generated
by CHPs
HPP adaptation to climate change
As part of the adaptation of the Angara HPP cascade to climate change, the Company assessed
climate-related risks to 2030 and 2050 and prepared runoff forecasts. The assessment used
two scenarios (the moderate one with a 3 °C temperature increase by the end of the century,
the stressful scenario with a 5 °C warming) and resulted in measures being developed to adapt
to climate change.
Risk
Decrease
in the annual
volume of river
flow in the Baikal
and Angara basins
A higher risk
of floods and
droughts
• Construction of new HPPs
• Updating of the rules for using water
reservoirs
• Development of proposals on HPP
operating modes, using an automated
system to manage the modes
• Reconstruction of water withdrawal
facilities at the Bratsk water reservoir
• Forecasting of water inflow to HPP sites
After 2030
After 2030
• Reforestation and forest protection
measures in the catchment area
Increased fire
hazards
Relevant now
Planning horizon
Management activities
1
Direct, energy indirect and other indirect GHG emissions.
Metrics and targets
GRI 3-3, SASB EM-MM-110a.2, IF-EU-110a.3
En+ Group has set the following targets to reduce
greenhouse gas emissions and improve energy
efficiency.
GRI 305-1, 305-2, 305-3, 14.1.5, 14.1.6, 14.1.7, SASB EM-MM-110a.1, IF-EU-110a.1, IF-EU-110a.2
To assess its own climate impact and analyse
the effectiveness of measures to achieve
the set climate goals, the Company measures
Scope 1, 2 and 3 GHG emissions1. The market
approach is used to estimate Scope 2 emissions.
The measurement includes emissions of such
greenhouse gases, as carbon dioxide, methane,
perfluorocarbon, and nitrous oxide.
En+ Group takes measures to adapt to climate change
in order to avoid negative consequences for business,
including the following:
∙The Company monitors the condition of production
facilities and performs timely repairs to avoid their
destruction as a result of climate-related risk factors.
∙To prevent downtime as a result of climate-related
risks, the Company purchases new equipment
capable of operating in harsher climatic conditions
and upgrades existing equipment, such as walking
excavators.
∙To successfully manage climate-related risks,
En+ Group tracks data on anticipated weather
conditions to take preemptive steps if forecasts
worsen, ensuring that workers are informed and safe.
∙To reduce the probability of falling behind
the production plan for coal mining enterprises,
the Company creates reserves of extracted raw
materials.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
101
100
CONSOLIDATED REPORT 2024
Energy intensity, GJ/t of aluminium
Energy intensity, GJ/MWh
‘22
‘23
‘24
119.0
117.4
113.6
113.6
GJ/t of aluminium
in 2024
Metals
segment
‘22
‘23
‘24
2.486
2.658
2.551
2.551
GJ/MWh
in 2024
Power
segment
GRI 302-3, 14.1.4
GRI 302-3, 14.1.4
In 2024, gross GHG emissions of all Scopes increased
by 1% compared to the previous reporting period
to 66.6 mt of CO2e due to increase in Group’s CHP
generation by 3% year-on-year as a result of an increase
in energy consumption in the Irkutsk energy system by
9.2% compared to the previous year.
GRI 305-1, 305-2, 305-3, 14.1.5, 14.1.6, 14.1.7, SASB IF-EU-110a.1,
IF-EU-110a.2, EM-MM-110a.1
Direct (Scope 1), indirect (Scopes 2 and 3) GHG
emissions, mt of CO2e
GRI 305-4, 14.1.8
Specific GHG emissions (including carbon dioxide,
methane, perfluorocarbon, nitrous oxide) from
the electrolysis process in the Metals segment
in the reporting period equalled 1.99 tonnes
of CO2e per tonne of aluminium, a 0.5% increase
compared to 2023. At the same time, specific
emissions of the Power segment dropped by 4.3%
due to increase in HPP generation. Overall, energy
generation at CHPs of the Power segment is the most
carbon-intensive area of En+ Group’s operations (37%
of the Company’s total carbon footprint in 2024).
Within the Metals segment, the production of alumina
stands out as the primary source of carbon emissions
(29.1%).
GRI 305-4, 14.1.8
GHG emissions intensity,
tonnes of CO2e per tonne of aluminium
For more details on GHG emissions, see Appendix
Additional ESG Data
GRI 302-1, 302-4, GRI 14.1.2, SASB EM-MM-130a.1
The total energy consumption of En+ Group
was 346.8 million GJ in the reporting period. This value
is 1.7% less than the 2023 indicator. 0.5% of consumed
energy came from renewable sources, while 84%
of all energy was supplied from renewable sources.
Both the Power and Metals segments take measures
to improve energy efficiency. In 2024, the energy
savings amounted to 8.5 million GJ.
GRI 305-4, 14.1.8
28.3
1.2
‘22
‘23
‘24
65.7
65.9
66.6
11.0
23.7
0.5
1.0
27.2
1.1
11.1
25.0
0.5
1.0
26.2
1.2
12.1
25.7
0.5
1.0
Scope 1,
Metals segment
Scope 2,
Metals segment
Scope 3,
Metals segment
Scope 1,
Power segment
Scope 2,
Power segment
Scope 3,
Power segment
‘22
‘23
‘24
2.00
1.98
1.99
Metals
segment
1.99
tonnes of CO2e
per t of aluminium
in 2024
‘22
‘23
‘24
0.22
0.23
0.22
0.22
tonnes of CO2e
per MWh
in 2024
Power
segment
GHG emissions intensity during electrolysis,
tonnes of CO2e per MWh
GRI 302-3, GRI 14.1.4
The energy intensity of the Metals segment was 113.6 GJ
per tonne of aluminium produced, a 3.2% increase
vs. 2023. The energy intensity of the Power segment
reached 2.551 in the reporting period, down 4%
due to increased output at HPPs and reduced losses.
For more details on energy consumption,
see Appendix Additional ESG Data
GRI 302-1, 14.1.2, SASB EM-MM-130a.1
En+ Group’s energy balance in 2024
Fossil fuel consumption:
Natural gas (128.6)
Heavy oil (21.6)
Coal (320.8)
Petrol (0.2)
Kerosene (0.003)
Propane and butane (0.6)
Diesel fuel (6.1)
Coke (0.9)
Renewable fuel
consumption:
Charcoal (1.0)
Waste wood (0.8)
Bark waste (0.05)
Purchased energy:
Electricity (262.0)
Heat (4.2)
Total energy consumption:
346.8 million GJ
Energy sold:
Electricity (316.4)
Heat (110.8)
Energy losses during
transportation (27.2)
∙To update a climate strategy.
∙To reassess the impact of climate-related risks
on the Company’s operations.
∙To continue implementing the climate strategy.
Plans for 2025 and
the medium term
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
103
102
CONSOLIDATED REPORT 2024
Environment protection
RUB 19.6 bn
spent on environmental protection
62.4%
of total waste reused or recycled
64.3%
of water used in recirculating water systems
∙Environmental Policy
∙Biodiversity Policy
∙Regulations on the Health, Safety, and Environment
Committee
∙Stakeholder Engagement Policy
∙Supplier Standards
∙Corporate Code of Ethics
Material topics
∙Air quality
∙Water and wastewater management
∙Safe waste management
∙Biodiversity
∙Environmental compliance and the best available
technologies (BAT)
Governance
GRI 3-3, SASB EM-MM-160a.1
En+ Group is committed to preventing and
minimising the impact of its production operations
on the atmosphere, water, land resources and
biodiversity. In its efforts to protect the environment,
the Group is governed by the UN Sustainable
Development Goals and national legislation
requirements, in particular Russian Federal Law No. 7
of 10 January 2002 On Environmental Protection and
the following internal documents:
Board of Directors
• Oversees the implementation of the Company’s
environmental protection policies
• Oversees progress against environmental
protection targets
Health, Safety, and Environment Committee
• Manages risks, including environmental risks
• Feeds into the policy development process
• Makes recommendations to the Board
of Directors
• Oversees the Company’s compliance with
legal requirements and standards governing
environmental protection
• Evaluates the Group’s environmental protection
performance
Sustainable Development Directorate
• Identifies and assesses the environmental
impacts of risks
• Monitors the implementation of measures
to manage environmental risks
Environmental protection teams at enterprises
• Provides environmental stewardship
at the enterprise level
Allocation of responsibility
for environmental protection
Environmental Policy
∙defines the Company’s principles and key areas
of environmental protection efforts
∙includes an obligation for each party to comply with
the requirements in contracts
Stakeholder Engagement Policy
∙defines the procedure for stakeholder engagement,
including on environmental protection matters
Supplier Standards
∙establishes environmental protection requirements
for suppliers
Corporate Code of Ethics
∙imposes a duty on Group enterprises to prevent
environmental incidents and comply with applicable
laws, among other requirements
Biodiversity Policy
∙establishes the Company’s key biodiversity
conservation principles
STRATEGIC REPORT
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FINANCIAL STATEMENT
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104
CONSOLIDATED REPORT 2024
In the reporting period, En+ Group established an ash
and slag waste department to improve the efficiency
of bulky waste management.
GRI 2-13
Key performance indicators (KPIs) related
to the involvement of waste in circular economy,
reclamation of disturbed land, compliance with emission
standards, elimination of risks with environmental
impacts were set for the Company’s management and
the Director for Sustainable Development.
The Company has an environmental management
system (EMS) certified to ISO 14001:2015 and
GOST R ISO 14001-2016 Environmental Management
Systems. In the reporting period, CHPs in the Irkutsk
Region received certification. The Metals segment’s
Urals Silicon and Urals Alumina Refinery also
completed certification. An audit for recertification
of the environmental management system was carried
out at the Group’s HPPs. Additionally, several internal
audits were held at CHPs and HPPs in the reporting
period.
In 2024, all contractors’ supplementary agreements
were updated to include uniform standards
for environmental protection, with a special emphasis
on safeguarding aquatic biological resources.
1
PAH – polycyclic aromatic hydrocarbons.
GRI 3-3, 14.3.1
In order to adhere to the prescribed standards,
En+ Group carries out pollutant concentration
monitoring using instrumental methods as part
of its industrial environmental control (IEC) initiatives.
Besides, the Company conducts additional air quality
studies in the regions of responsibility to assess
the impact of operations on the state of the atmosphere.
Some of the Company’s enterprises are located
in the cities participating in the Clean Air federal
project, such as Bratsk, Novokuznetsk and Krasnoyarsk.
The goal of the project is to reduce pollutant emissions
in cities by 20% by 2026.
Research of the impact of
the Yenisei River air holes
on Krasnoyarsk air quality
The Institute of Computational
Modelling of the Siberian Branch
of the Russian Academy of Sciences
analysed the impact of air holes
in the Yenisei River on the distribution
of suspended particulate matter
in the air. The research conducted
since 2019 showed that the surface
atmosphere of the river water area has
lower concentrations of suspended
particles than in the city due to their
deposition. This phenomenon can
also be explained by the mixing of air
masses generated over the city and
its surroundings within the open
environment. Consequently,
the steaming of the river does not
have a negative impact on the state
of the atmosphere of Krasnoyarsk.
Modernises gas purification systems of the coal-fired
CHP
Uses modern gas purification equipment, automatic
monitoring systems and mobile emission control
stations. In 2024, the 16th gas purification unit
was installed at the Novokuznetsk Aluminium
Smelter. A total of 24 units are planned to be built,
with purification efficiency of over 99.5%, making
it possible to remove a larger volume of pollutants
from waste gases
Introduces inert, pre-baked anode,
and Eco-Soderberg technologies
Introduces anode mass technology with reduced PAH
content1 to decrease benz(a)pyrene emissions into
the atmosphere
To achieve the target, En+ Group
is taking the following actions:
Environmental
component
Environmental impact
Air protection regulations
Air
Emissions of pollutants
from aluminium smelters
of the Metals segment and
CHPs of the Power segment
• Federal Law On Atmospheric Air Protection
• Order of the Ministry of Natural Resources and Environment
On the Approval of Requirements for Measures to Reduce
Emissions of Pollutants into the Air during Adverse Weather
Conditions
• Federal Clean Air Project
• Presidential Decree on National Development Goals up to 2036
(National Goal “Environmental Well-Being”)
Strategy
STRATEGIC REPORT
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106
CONSOLIDATED REPORT 2024
1
The assessment was performed using the Aqueduct Water Risk Atlas.
Environmental
component
Environmental impact
Water protection regulations
Water
Water withdrawal and
discharge, including into
natural water bodies
• Water Code of the Russian Federation
• Federal Law On Water Supply and Discharge
• Sanitary Rules and Regulations (SanPin) Hygienic Requirements
for Surface Water Protection
• Requirements of the Federal Water Resources Agency
of the Russian Federation
Environmental
component
Environmental impact
Land protection regulations
Land
Waste generation: red and
nepheline sludge, spent carbon
lining, ash and slag waste,
overburden rock
Land disturbance as a result
of mining processes
• Land Code of the Russian Federation
• Federal Law On Industrial and Consumption Waste
GRI 3-3, 303-1, 303-2, 14.7.1, 14.7.2, 14.7.3
En+ Group enterprises have standards for the use
of water resources, specifically pollutant discharges,
developed on the basis of the national legislative
requirements. Accredited organisations monitor
prioritised pollutants (oil products and suspended
particles) in wastewater and reservoirs. To prevent
pollutants from entering the water, the Group conducts
regular inspections of the serviceability of generating
and treatment equipment.
The Company operates modern treatment facilities
and upgrades them. Some enterprises of the Metals
segment оperate a closed-loop water recycling system,
thus reducing their water withdrawal and discharge.
Urals Alumina Refinery continues to implement
the system.
En+ Group interacts with stakeholders on these
matters, with the Metals segment publishing voluntary
respobsible water report.
Operations in water-scarce
areas
GRI 3-3, 303-1, 303-2, 14.7.2, 14.7.3, SASB IF-EU-140a.3
Some Group enterprises operate in areas
characterised by severe water shortages1.
To reduce the impact on water resources,
the Group is introducing closed-
loop water recycling systems across
its production facilities. In 2024, Armenal
performed activities to advance its system:
the measures were taken to improve
the rolling section recycling unit.
GRI 3-3, 306-1, 306-2, 14.5.1, 14.5.2, 14.5.3, SASB EM-MM-150a.10
The Power segment has an internal Waste Management
Standard that establishes the procedure for waste
collection, recycling and disposal. The Metals segment
aligns its activities with its own Industrial Waste
Management Strategy to 2030 establishing a hierarchy
of waste management efforts using the Zero Waste
to Landfill principle. In the reporting period, the Metals
segment additionally developed and approved safe
waste management programmes for 2024–2029 and
set annual targets.
To minimise the negative impact on land resources,
En+ Group implements the following measures:
1. The Company monitors compliance of its own waste
disposal facilities with the established standards
and controls their safety. In 2024, the Company
modernised waste storage sites to ensure more
efficient and safe disposal of bulky waste from coal-
fired generation.
2. En+ Group implements waste recycling projects
to lower the amount of waste sent for disposal
and to obtain additional profits. The Company
has developed a long-term ash and slag waste
management programme to explore promising
ways of disposal of such waste. The Metals segment
has launched a project to produce raw materials
for household chemicals from electrolysis gas
purification sludge.
SASB EM-MM-160a.2
3. To mitigate the negative impact on land resources
effectively, En+ Group applies technologies that
prevent the generation of acid waste.
GRI 14.6.1, SASB EM-MM-540a.2, EM-MM-540a.3
4. The Group ensures safe functioning of its hydraulic
structures (HS) and has emergency response plans
in place. No emergencies or significant sludge spills
were recorded in 2024.
5. The Company strives to minimise the area
of disturbed land and, after the completion
of open-pit mining, performs land reclamation
in accordance with the approved plans, including
using ash and slag waste. The Company also
implements reclamation measures for contaminated
land and waste disposal facilities.
6. En+ Group also performs reforestation activities.
STRATEGIC REPORT
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FINANCIAL STATEMENT
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108
CONSOLIDATED REPORT 2024
Environmental
component
Environmental impact
Biodiversity conservation regulations
Biodiversity
Distortion
of the landscape’s natural
state and a shrinkage
of green areas, impact
on the water regime
of aquatic ecosystems
during the power
generation activities
at HPPs
• Federal Law dated On Ratification of the Convention
on Biological Diversity
• The Kunming-Montreal Global Biodiversity Framework
• TNFD1 guidance
• International Finance Corporation’s Performance Standard 6
Biodiversity Conservation and Sustainable Management
of Living Natural Resources
• Hydropower Sustainability Standard
1
Taskforce on Nature-related Financial Disclosures.
Green Office
En+ Group continues to implement
the Green Office initiative, which aims
to create a comfortable workspace
with minimal environmental impact.
In particular, separate waste collection
has been organised in the offices.
To reduce the volume of household
waste, the Company has abandoned
the use of disposable plastic dishes, and
is adopting practices aimed at conserving
water and energy. In 2024, a separate
waste collection system was implemented
across the offices of the Power segment
in Irkutsk, as well as across the Angara
HPP cascade, Krasnoyarsk HPP and CHPs.
To promote the practice, the Company
developed lectures about the Green Office
for employees for the corporate portal.
2 Environmentally vulnerable areas are those with rich biodiversity, strong ecosystem integrity, significant degradation of ecosystem health, high
physical risks to water resources, or those that are crucial for providing ecosystem services to indigenous peoples, local communities, and other
stakeholders.
GRI 101-2, 14.4.3
En+ Group develops corporate biodiversity conservation
programmes for its production sites taking into account
the requirements of various international standards
and initiatives, including the Kunming-Montreal Global
Biodiversity Framework. Within the Power segment, such
a document is in place for Irkutsk, Bratsk and Ust-Ilimsk
HPPs and reservoirs.
The goal of the programme is to prevent or mitigate
the negative impact of Angara HPPs and reservoirs
on biodiversity and participate in maintaining stable
condition of the cascade in the long term.
GRI 101-4, 101-5, 101-6, 101-7, 14.4.4, 14.4.5
During the development of the programme, experts
identified areas of direct and indirect impact
of the facilities on biodiversity and drafted a map
of the impact areas. Angara HPPs do not operate
in environmentally vulnerable2 areas. The nearest
protected area (Pribaikalsky National Park) is located
at a distance of 43 km.
Map of potential biodiversity impact areas of Irkutsk, Bratsk
and Ust-Ilimsk HPPs
Bratsk HPPs
Irkutsk HPPs
Direct potential impact area
Indirect potential impact area
Area of potential indirect impact
on Lake Baikal
HPP
Ust-Ilimsk HPPs
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FINANCIAL STATEMENT
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110
CONSOLIDATED REPORT 2024
En+ Group entered into an agreement with
the Institute of Geography of the Siberian Branch
of the Russian Academy of Sciences on field verification
of the biodiversity conservation programme.
Due to the large area covered by the programme
(8.5 million hectares), the work will be divided into two
stages. In the reporting period, studies were performed
in the areas of the Irkutsk and Bratsk reservoirs and
adjacent territories. Further verification for Ust-Ilimsk
HPP is scheduled for 2025.
The Power segment has devised a Biodiversity
Conservation Action Plan for three HPPs, with the first
stage covering 2023–2025. The plan contains a list
of planned activities and indicator species (plants,
animals), which will be monitored and supported
by specialists. En+ Group strives to increase
the cumulative positive effect of measures to preserve
biodiversity and combat climate change.
For instance, the Company has developed a climate
change adaptation programme for the Angara HPP
cascade, which will positively affect biodiversity.
For more details on the programme,
see the Climate Change section
GRI 101-2, 14.4.3
The Metals segment has also completed work
on corporate programmes to conserve biodiversity
and maintain ecosystem services for Timan Bauxite,
Urals Alumina Refinery and Irkutsk Aluminium Smelter
(IrkAZ). The Company has developed a system
of metrics and indicators that makes it possible
to assess both the state of biodiversity of territories and
the effectiveness of measures taken to preserve it.
Educational events
We involve local communities in
biodiversity conservation activities.
In 2024, the Company produced
a comic book ‘The Steppe Rat
Snake, The Mongolian Toad and their
adventures’ with interesting facts about
these animals in order to highlight
their benefits to the ecosystem,
as well as reflect the importance
of conservation measures for valuable
species.
Community fish protection
The Company supports community
fishery inspectors by providing
them with the necessary outfit,
equipment and labour remuneration.
The inspectors are responsible
for patrolling the waters of the Bratsk,
Irkutsk and Krasnoyarsk water
reservoirs to prevent poaching and
other fishing violations. The project has
helped to:
• Detect 570 administrative
offences in the field of fishing and
conservation of aquatic biological
resources
• Detect 13 crimes in the field
of fishing and conservation of aquatic
biological resources
• Seize 724.9 kg of fish from poachers
• Remove 13.2 km of illegal fishing nets
from water bodies
• Take 953 preventive measures
Artificial spawning grounds
in the Bratsk reservoir
The Bratsk reservoir is home to various
fish species that lay eggs on last year’s
vegetation (pike, perch and others).
However, the reservoir is poor in aquatic
plants, so in 2024 the Group installed
400 artificial spawning grounds
to create suitable spawning conditions
for fish. They are bundles of coniferous
tree branches with a weight and a float.
Locations for spawning are chosen
at depths that provide optimal
conditions for the growth of eggs.
The sixth Baikal monitoring
expedition
In 2024, a sixth scientific expedition
to monitor the state of Lake Baikal
took place. The study was conducted
in the southern and central parts
of the Baikal water area and the Selenga
River with a catchment area. Experts
studied the condition of Baikal endemics1
and took water samples to assess
the content of pollutants, including
microplastics.
The monitoring results were presented
to the Academic Council of the Faculty
of Biology of Moscow State University,
as well as the extended meeting
of the Scientific Council of the Russian
Academy of Sciences (RAS) and
the Scientific Council of the Siberian
Branch of the Russian Academy
of Sciences on Lake Baikal problems.
The scientific community gave a positive
assessment of the monitoring results,
and the RAS sent recommendations
to relevant state authorities.
In 2024, the project won the XXII
National Environmental Prize named
after V.I. Vernadsky in the Science
for Sustainable Development category.
1
Species living exclusively in this territory.
STRATEGIC REPORT
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FINANCIAL STATEMENT
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112
CONSOLIDATED REPORT 2024
Risk management
GRI 3-3
En+ Group annually assesses environmental risks
as part of the overall risk management system.
In 2024, the Company adopted a methodology
for assessing the environmental impact of risks.
In 2024, the Power segment revised its Strategic Plan
for Environmental Risk Management replacing it with
a Management Plan for Risks with Environmental
Impacts, which includes risk management measures
and their deadlines.
GRI 101-2, 14.4.3
When assessing risks to biodiversity and ecosystem
services, the Company takes into account the location
of enterprises and the specifics of their production
processes. If significant risks are identified, En+ Group
holds consultations with scientists and industry experts,
sets biodiversity conservation targets, and develops risk
mitigation action plans taking into account the hierarchy
of mitigation activities.
Based on the results of the assessment, the risks were
recognised as predominantly insignificant, but for some
aspects, such as land use for mining, it was proposed
that they were considered to be other than insignificant.
The Company develops measures to manage such risks.
Targets
Status
Progress made in 2024
Ensure compliance of the Metals segment
enterprises’ air emissions with regulatory
requirements (cut above-limit air emissions
by 100%) by 2027
On track
The Metals segment continues to upgrade its
production sites and implement measures under
the Clean Air federal project
Provide a significant reduction in emissions
of pollutants per tonne of aluminium, including
a 25% decrease in total fluorides
On track
The Metals segment managed to reduce intensity
of emissions by 6.8% (including total fluorides by
27.4%)
Retrofit ash collectors at Novo‑Irkutsk CHP,
Ust-Ilimsk CHP, and CHP-6
On track
CHP-6 installed three electric filters for more
efficient gas treatment. Pre-commissioning
and commissioning of automatic emission
control systems is underway and is scheduled
for completion in 2025
Bring a share of water recycling in the production
of alumina, aluminium, and finished products
to 100% by 2027
On track
Armenal implemented measures to improve
the recycling unit of the rolling department, the
transition to a closed recycling water supply
system continues at the Ural Aluminum Plant
Eliminate the discharge of untreated wastewater
generated by the Power segment by 2030
On track
The Group is developing design documentation
for local treatment facilities at Bratsk and
Ust-Ilimsk HPPs, and continues to modernise
treatment facilities of Irkutsk HPP. In 2024,
the Company built a complex of treatment
facilities for a coal company
The Company establishes special barriers that prevent wild
animals from entering the territory of enterprises. All employees
have read the instructions on the treatment of animals. Fish
protection facilities are installed at the CHP to prevent water
bodies from entering water intakes: in 2024, the technical
re-equipment of these devices at the Avtozavodskaya CHP
began. The facility includes louvered water-permeable screens
for seasonal use and a system of permanent safe fish protection
electrodes. Experts also highly appreciated the effectiveness
of similar devices previously installed on the CHP-10.
En+ implements measures to reclaim disturbed lands. Guided
Guided by the requirements of the legislation, the Company
carries out stocking of water bodies with fish, which is confirmed
by acts of fish release signed by the commission. In 2024,
more than 781,000 fry were released into the water bodies
of the Irkutsk region, the Republic of Buryatia, and the Republic
of Khakassia. Compensatory reforestation is also performed:
about 274,000 seedlings were planted in the reporting period.
Metrics and targets
GRI 3-3, 101-1, 14.4.2
En+ Group has set the following targets for environmental protection and biodiversity conservation.
Compensation
Restoration
Minimisation
Prevention
During the development of corporate biodiversity
conservation programmes, the Metals segment also
conducted a preliminary risk assessment. The procedure
for assessing risks to biodiversity and priority ecosystem
services consists of the following stages:
∙Identification of impact factors
∙Assessment of physical risks (including potential
risks) associated with impact factors
∙Assessment of transition risks (including potential
risks) associated with impact factors
∙Overall assessment of corporate risks
∙Creation of a risk register
Prevention of negative effects on biodiversity is ensured
by the Company’s approach aimed at identifying risks and
mitigating them, including when developing new projects.
STRATEGIC REPORT
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114
CONSOLIDATED REPORT 2024
1
En+ Group defines the impact as significant if it leads to penalties exceeding USD 1 million.
Targets
Status
Progress made in 2024
Ensure a gradual reduction of at least 10%
in the intensity of waste generation which
is neither recyclable nor reusable, measured per
tonne of metal, and safe disposal of 100% of such
waste by 2030 in the Metals segment
On track
The volume of waste generated by the Metals
segment has been reduced by 9.8% compared to
2021. Ensured safe disposal of waste that cannot
be disposed
Put back to economic use or utilise at least
15% of alumina production waste and at least
95% of aluminium and silicon production waste
by 2035
On track
The Metals segment recycled 7.7% of generated
red/nefeline sludge, 78.8% of spent coal lining
and 96.2% of aluminium slag
Implement large-scale projects related to the use
of ash and slag waste
On track
In 2024, a bypass road was built in Usolye-
Sibirskoye utilising materials derived from
the recycling of ash and slag produced by CHPs
of the Irkutsk Region. At the same time,
the Group, together with research organisations,
participated in the construction of experimental
road structures using ash and slag mixtures. Ash
and slag waste is successfully used to produce
construction materials (concrete, aerated
concrete, cement). In 2024, En+ Group sent
315,000 tonnes of ash for these purposes
(+14% vs. 2023)
Develop biodiversity conservation programmes
and action plans for pilot facilities (three
operating facilities in each segment) by 2024
Achieved
The programmes and action plans are in place
for Angara HPPs and Timan Bauxite, UAZ and
IrkAZ
Develop biodiversity conservation programmes
and action plans for En+ Group’s facilities with
identified biodiversity risks by 2030
On track
Species conservation measures are being
implemented (artificial spawning grounds,
community fish protection, etc.)
The total payments for the negative environmental
impact were RUB 814.8 million, a 23.9 decrease
year-on-year.
GRI 305-7, 14.3.2, SASB EM-MM-120a.1, IF-EU-120a.1
In the reporting period, gross air pollutant emissions,
excluding greenhouse gases, equalled 708.1 kt, 2.4%
more than the 2023 indicator due to increase in CHP
generation in 3% year-on-year. Сarbon dioxide (67.4%)
accounted for the majority of emissions of the Metals
segment, while sulphur oxides (58.9%) was the primary
source of the Power segment’s emissions.
2 Subtotals may not add up to the total due to rounding.
3 PCB — polychlorinated biphenyls.
4 To track the results of measures to reduce the negative impact on environmental components, the Company calculates specific emission
indicators tied to the volume of aluminium produced (for the Metals segment) and the volume of thermal and electrical energy produced
(for the Power segment). The denominator values are indicated in the appendices and are common to all specific environmental indicators
of the segments in the Climate and Environmental Protection section.
Total environmental protection costs, %2
Atmospheric emission intensity indicators4
Metals segment, kt / kt
Power segment, kt / bn kWh
0.03
11.1
1
5.4
Management of waste
with PCB3 content
Waste utilisation
Land reclamation
Water protection
Air protection
Environment
equipment
maintenance
Conservation of
biodiversity and
protection of natural
areas
Other environmental
protection costs
78
2
1.5
1
RUB
19.6
billion
‘22
‘23
‘24
0.052
0.012 0.01
0.0002
0.006
0.01
0.01
0,0003
0.005
0.011 0.01
0.0003
Nitric oxides (NOx)
Sulphur oxides (SOx)
Particulate matter
Volatile organic compounds
(VOCs)
‘22
‘23
‘24
1.4809
0.5787
0.0025
0.431
1.6065
0.64
0.0032
0.4453
1.6503
0.6445
0.0029
0.4476
Nitric oxides (NOx)
Sulphur oxides (SOx)
Particulate matter
Volatile organic compounds
(VOCs)
GRI 2–27, SASB EM-MM-140a.2, IF-EU-140a.2, EM-MM-150a.9
There were no incidents in the reporting period that
could lead to significant1 environmental damage.
The Company took into account the alerts and notices
received from Supervisory authorities and developed
corrective action plans.
RUB 19.6 billion was spent on environmental measures
in the reporting period, with the majority of funds
allocated to air protection. The cost structure did not
change significantly compared to the previous year.
STRATEGIC REPORT
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FINANCIAL STATEMENT
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116
CONSOLIDATED REPORT 2024
GRI 303-3, 14.7.4, SASB EM-MM-140a.1, IF-EU-140a.1
In 2024, En+ Group totally withdrew 1,062.0 million m³,
which is 2.6% more water than in 2023 due to increase
in output at the Group’s CHPs by 3% year-on-
year. In 2024, the majority of water was withdrawn
from surface water bodies. Due to the nature
of the production processes, the Power segment
withdraws most of the water (85.0%). Fresh water
withdrawal was 1,032.9 million m³, up 2.6% vs.
2023. Sea water is only used by the Metals segment
for equipment cooling processes. The share of water
withdrawal in regions with water shortages was 1.1%
for the Metals segment. These indicator did not change
year-on-year.
GRI 303-5, 14.7.6, SASB EM-MM-140a.1, IF-EU-140a.1
The Company consumed 727.2 million m³ of water
in the reporting period. This represents a 2.4%
increase year-on-year. The Power segment consumed
most of the water (87.6%). The share of water used
in recirculating water systems was 64.3%.
GRI 303-4, 14.7.5
In the reporting period, En+ Group discharged
664.9 million m³ of water, up 12.3% vs. 2023. The Power
segment discharged the largest volume of water (93.5%).
641.9 million m³ of fresh water were discharged, up 13.6%
year-on-year. The Power segment accounted for 96.9%
in fresh water discharge.
Ground water
0%
Ground water
4.6%
Surface water
bodies
93.8%
Third-party
organisations
19.0%
Water withdrawal
1,062.0
million m 3
Water consumption
727.2
million m 3
Water discharge
664.9
million m 3
Sea water
3.5%
Surface water
bodies
2.2%
Other water
1.3%
Water used
in recirculating water
systems
Water consumption
for production and
household needs
Surface water
bodies
72.9%
Structure of water
consumption and
discharge in 2024
GRI 303-3, 303-4, 303-5, 14.7.4, 14.7.5, 14.7.6, SASB EM-MM-140a.1, IF-EU-140a.1
Public
utilities
2.8%
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CONSOLIDATED REPORT 2024
Water-related intensity metrics
Metals segment, mn m3/kt
Power segment, mn m3/bn kWh
‘22
‘23
‘24
0.045
0.042
0.041
Intensity of total water withdrawal
Intensity of total water discharge
0.012
0.012
0.011
Intensity of total water withdrawal
Intensity of total water discharge
‘22
‘23
‘24
7.05
7.45
7.45
4.37
4.66
5.13
GRI 306-3, 14.5.4, SASB EM-MM-150a.4, EM-MM-150a.5.,
EM-MM-150a.6, EM-MM-150a.7
In 2024, En+ Group generated 157.9 mt of waste,
down 29.8% year-on-year due to reduction of
waste generation in the coal business. The Power
segment generated the majority of waste (70.0%).
The Company’s waste is mostly non-hazardous1 (99.6%).
GRI 306-4, 14.5.5, SASB EM-MM-150a.8
In 2024, the Group utilised2 98.5 mt of waste (62.4%
of all waste), down 5.6% year-on-year. The majority
of waste was utilised by the Power segment (96.6%
of total waste disposed of all utilised waste).
1
The Company classifies Class I–III waste (according to the classification of the Russian legislation) as hazardous and Class IV–V waste
as non-hazardous.
2 En+ Group recycles and reuses waste, including sending it to specialised organisations for such purposes.
GRI 306-3, 306-4, 14.5.4, 14.5.5, 14.5.6, 306–5, SASB EM-MM-150a.8, SASB IF-EU-150a.1
Generated
157.9 mt
Hazardous waste
0.7 mt
Non-hazardous waste
157.2 mt
Utilised
98.5 mt (62.4%)
Hazardous waste
0.7 mt
Non-hazardous waste
97.8 mt
Disposed
60.3 mt (38.2%)
Hazardous waste
0.6 mt
Non-hazardous waste
59.8 mt
Waste generation and utilisation in 2024
Waste intensity metrics
GRI 14.8.6
As of the beginning of the reporting period, the area
of disturbed but not yet reclaimed land of the Company
amounted to 24,200 ha; as of the end of the period
it was 24,500 ha. In 2024, 511 ha of land was disturbed
(a year-on-year increase of due to 31.0). The Company
managed to rehabilitate 175 ha, which is 50.2% less
than in the previous year. In the reporting period,
Group employees planted 250,000 tree seedlings
in the Kirenskoye forest area. The plantings will be taken
care of over the next three years. In total, the Company
planted trees on an area of 64 ha.
Metals segment, mt/kt
Power segment, mt/bn kWh
Plans for 2025 and the medium term
∙To monitor the implementation of measures
to manage risks with environmental impact.
∙To continue installing in-house designed gas
purification facilities at aluminium smelters.
∙To continue to work towards achieving the goals
of the Clean Air federal project.
∙To continue installing in-house designed gas
purification facilities at aluminium smelters.
∙To continue construction of treatment facilities
at Irkutsk HPP and put them into operation.
∙To continue converting to a closed-loop water
recycling system.
∙To carry on with implementing initiatives to involve
waste in business turnover.
∙To rehabilitate at least 79.9 ha of land of the Power
segment.
∙To continue field verification of the Angara HPPs
Biodiversity Conservation Programme.
∙To extend the practice of installing artificial spawning
grounds to the Irkutsk and Krasnoyarsk reservoirs.
∙To conduct field studies for the Krasnoyarsk HPP
Biodiversity Conservation Programme.
∙To continue scientific environmental monitoring
of Lake Baikal.
‘22
‘23
‘24
0.016
0.016
0.011
0.011
mt/kt
intensity in 2024
Intensity of the total volume
of waste generated
‘22
‘23
‘24
1.18
1.17
0.91
0.91
mt/bn kWh
intensity in 2024у
Intensity of the total volume
of waste generated
STRATEGIC REPORT
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FINANCIAL STATEMENT
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120
CONSOLIDATED REPORT 2024
People
Occupational health and safety
0.84
Lost time injury frequency rate (LTIFR)1
(compared with 0.76 in 2023)
1.17
Total recordable injury rate (TRIR)2
(compared with 1.05 in 2023)
∙Health, Occupational, Industrial, and Fire Safety
Policy
∙Regulations on the Health, Safety, and
Environment Committee
∙Regulations on the Occupational Safety
Committee
Material topic
∙Occupational health and safety
GRI 3-3, 403-1, 403-2, 403-4, 403-8,
14.16.1, 14.16.2, 14.16.3, 14.16.5, 14.16.9
People are a key asset of En+ Group. The Company’s
main goal is to reduce the overall injury rate and
achieve zero fatalities.
To meet this goal, the Group focuses on fostering
a robust safety culture among its employees, boosting
their competencies, preventing accidents and injuries,
while minimising the impact of occupational hazards.
The Company has established an occupational
health and safety (OHS) management system
that encompasses all employees and contractors.
Governance
1
Hereinafter in the Occupational Health and Safety section, LTIFR is calculated per 1 million man-hours worked and includes fatal,
high-consequence, and minor injuries causing temporary incapacity for work, recorded by the Company for the specified period.
2 Hereinafter in the Occupational Health and Safety section, TRIR is calculated per 1 million man-hours worked and includes work-
related fatal injuries, injuries causing temporary and permanent incapacity for work, and micro injuries requiring medical treatment
and/or transfer to another job.
When developing and updating its corporate
OHS documents, the Group is guided by current
requirements of national regulations, international
standards, and best industry practices.
En+ Group’s basic principles and responsibilities
are set out in its Health, Occupational, Industrial, and
Fire Safety Policy that establishes the right of each
employee to decline work that poses a threat to their
life and health. According to the document, the CEO
should promote the implementation of the Policy’s
objectives and demonstrate a personal commitment
to occupational safety.
The Company places considerable importance
on the confirmation that its OHS management
system complies with ISO 45001:2018. All production
units of the Power segment have valid certificates
of compliance with this standard. In the Metals
segment, 12 enterprises have such certificates, and
part of them were recertified in 2024. In 2024, all
certified enterprises underwent external supervisory
audits that confirmed their compliance with
the said standard. The Group also conducts annual
internal audits of the system. Over the past year,
the OHS Department arranged 24 on-site audit visits.
To improve communication with employees during
on-site inspections, behavioural safety audits (BSAs)
are also undertaken.
STRATEGIC REPORT
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122
CONSOLIDATED REPORT 2024
Board of Directors, Metals segment, RUSAL
CEO, RUSAL
Health, Safety, and Environmental
Committee
Occupational Health,
Industrial and Fire Safety
Department
Production Directorate
Metals segment
Board of Directors, En+ Group
CEO, En+ Group
Health, Safety, and Environment
Committee
Occupational Health and
Safety Department
Occupational Safety
Committee
Power segment
Contractor management
GRI 403-1, 403-2, 403-5, 403-7, 14.16.2, 14.16.3, 14.16.6, 14.16.8
En+ Group strives to ensure the safety of not only
its own employees, but also those of contractors who
perform work for the Company.
In 2024, the Regulations on the Contractor Safety
Management were approved in Power segment. These
Regulations describe safety requirements for contractors.
The Regulations are aimed at ensuring the safety of both
contractors and the Company’s own employees when
contractors work on the Company’s premises.
The Agreement for Occupational Health, Industrial, and
Fire Safety, that is included in all contracts with suppliers,
outlines the OHS obligations and responsibilities
of contractors. Each contractor receives an induction
briefing before being permitted to work at En+ Group’s
facilities. The OHS team informs contractors about
corporate safety requirements, necessary PPE, and
potential risks inherent in the Group’s operations.
To monitor the safety of contractors, En+ Group
conducts comprehensive on-site audits, special-
purpose and surprise inspections. In 2024, most
common violations included violations committed
when working at height, issuing safe work permits, and
preparing the work site, as well as failure to use PPE,
failure to follow the standard operating procedure, and
non-compliance with safety signs.
To minimise OHS violations among contractors,
the Company conducts BSAs and holds meetings
and consultations with contractors’ managers,
OHS departments, and employees. Leveraging a risk-
based approach commensurate with the nature
of the performed work, the Company provides
additional training to contractors. For example,
heads of OHS departments of the Power segment’s
contractors received a two-days’ training at a safety
coaching session in 2024.
The Metals segment applies the principle of collective
responsibility in case of violations of OHS requirements
by contractors: the entire team is suspended from work
and receives unscheduled briefings and training.
The Health, Safety, and Environment Committee
assesses the efficiency and effectiveness of En+
Group’s OHS management on a quarterly basis.
As a result of the analysis, the Committee makes
recommendations to the Board of Directors concerning
the approval of OHS goals, policies, and strategies.
For more details on En+ Group’s Health, Safety, and
Environment Committee and its performance, see
the Corporate Governance section
To improve the efficiency of the OHS management
system, establish communication channels between
functions and directorates, and enhance safety
culture, the Occupational Safety Committee has
been established in the Power segment. During 2024,
the Committee held ten meetings where the following
issues were considered:
∙Occupational safety goals for 2024
∙Findings of investigations into accidents and
hazardous situations
∙Progress in implementing the strategic occupational
safety plan
∙Results of comprehensive and special-purpose
inspections of occupational safety at branches
∙Analysis of employee survey results concerning their
satisfaction with the quality of personal protective
equipment (PPE)
∙Analysis of the Safety Plus employee survey devoted
to safety culture aspects
∙Best industrial safety practices offered by branches
and their rollout at all enterprises
∙Takeaways from the World Day for Safety and Health
at Work
∙Factor analysis of injuries
∙Results of the Safety Leader competition, etc.
The OHS Department coordinates the functioning
of the system. The duties of the Department include:
∙Boosting specialist competencies and managing
OHS functions at enterprises
∙Conducting internal audits of the OHS management
system at enterprises
∙Enhancing the efficiency of communication with
employees, including through BSAs
∙Employee training
OHS management structure
GRI 2-13
STRATEGIC REPORT
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FINANCIAL STATEMENT
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124
CONSOLIDATED REPORT 2024
periodic, pre-trip,
and pre-shift medical
examinations
monitoring
and correction
of the psycho-
emotional state
of operational
staff in specialised
psychological relief
rooms
medical care under
the programme
of voluntary medical
insurance (VMI)
drug and alcohol
testing of employees
health improvement
programmes
for pre-retirees
medical check-ups
sanitary safety
education
medical care at medical
aid posts at enterprises
individual counselling
sessions and a 24-hour
support hotline
vaccination according
to the national
vaccination schedule
health resort treatment
sporting events
To maintain and improve health,
reduce the negative impact
of production factors, En+ Group
arranges a wide range of medical
and preventive care measures
for its employees.
Strategy
The Power segment is implementing the Strategic
Action Plan for 2024–2026 that has been developed
as a result of an external safety culture audit conducted
in 2023.
To achieve a 50% reduction in work-related injury
rates and critical occupational accidents and eliminate
fatal injuries, the Metals segment is pursuing
the Occupational Health and Safety Strategy to 2030.
This Strategy includes the Safety Culture project
designed to assess employees’ unsafe behaviour, make
line managers, middle and senior managers aware
of the psychological aspects of safe behaviour, and
develop their leadership competencies.
Safety culture
GRI 403-2, 403-4, 14.16.3, 14.16.5
En+ Group implements various measures to enhance
its safety culture, including:
∙The practice of conducting BSAs to help
the Company monitor the behaviour of employees
during process operations and develop their safe
work habits, which subsequently reduces the impact
of the human factor on the incident rate.
∙Coaching sessions with managers across various
levels to foster their commitment to occupational
safety.
∙The practice of video recording of meetings
to control the quality of OHS briefings and
the efficiency of communication between employees
and their line managers. Such communication
includes mandatory five-minute reports on injuries
or existing injury risks to be given at each meeting
by line managers.
Cancer screening programme
In 2024, the Company launched
a cancer screening programme
at its industrial facilities in Shelekhov and
Krasnoyarsk. 1,254 employees took part
in the programme. The Company arranged
surgical treatment of two employees with
early-stage malignant tumours.
Improving the availability
of medical services
The project is aimed at increasing
the availability of healthcare services
in remote regions. In 2024, the Company
expanded the list of healthcare
professionals temporarily employed
in regions with a pronounced shortage
of doctors. This has multiplied
the total number of patient visits. Both
employees and their family members
and local people are able to receive
medical treatment. In two towns,
patients are able to arrange a medical
appointment with highly specialised
children’s doctors.
Health protection
GRI 2-25, 403-3, 403-6, 403-10, 14.16.4, 14.16.7, 14.16.11
The Company organises regular advanced training
for in-house healthcare professionals and engages
other qualified medical care providers. All health data
is collected and stored in accordance with statutory
requirements and transmitted via secure communication
channels.
The Company has 11 own healthcare centres, regularly
opens new healthcare facilities and repairs/renovates
existing ones. In January 2025, a medical aid post
For more details on En+ Group’s
sporting events, see the Contribution
to Local Communities section, and
on the Company’s VMI programme,
see the Employees section
was opened at the industrial site in the village
of Startsevo, Emelyanovsky District, Krasnoyarsk
Territory. Moreover, repairs were carried out on
medical centers in Krasnoturinsk, Shelekhov,
Sayanogorsk, and Achinsk. In addition to general
health promotion, such measures help the Company
detect occupational diseases at an early stage and
initiate prompt treatment thus preventing health
deterioration.
STRATEGIC REPORT
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FINANCIAL STATEMENT
APPENDICIES
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126
CONSOLIDATED REPORT 2024
Basics of safe behaviour
In the reporting period, the Metals
segment launched the Basics of Safe
Behaviour project. The initiative focuses
on employees’ psycho-physiological state
which could increase the risk of dangerous
actions. The relevant training course
for employees was launched on an online
platform. The Company expects that
the project will help employees develop
useful habits for protecting their life and
health and the skill of analysing their own
state before performing work that requires
caution and attention.
GRI 3-3, 403-2, 403-7, 14.15.1, 14.15.3, 14.15.4
Because of the specifics of En+ Group’s operations
and location of its production sites, the Company
is exposed to the risk of natural and man-made
emergencies, accidents and incidents at hazardous
industrial facilities and hydraulic structures.
The Company has developed Emergency Response
Plans for all hazardous industrial facilities and
coordinated them with representatives of state
supervisory body. These Plans outline key emergency
risks and response strategies. For all facilities at risk
of petroleum product spills, En+ Group has formulated
Spill Prevention, Control, and Countermeasure
(SPCC) Plans that have been approved by supervisory
authorities.
All employees working at the relevant industrial
facilities are required to familiarise themselves with
these documents. Based on these Plans, exercises
and drills are held with the involvement of fire-rescue
and emergency response teams and representatives
of state supervisory bodies, such as the Russian
Ministry of Energy, Ministry of Emergency Situations,
and the Federal Environmental, Industrial, and Nuclear
Supervision Service of Russia (Rostechnadzor).
For example, in 2024, the Company conducted drills
on remediating the consequences of an emergency
caused by an interruption of heat and hot water supply.
In 2024, En+ Group started to review existing and
introduce new civil defence training programmes and
methods for the population, officials, and employees,
and focused on bringing civil defence protective
structures into proper condition and preparing
measures to evacuate employees from potential
emergency zones to safe areas.
To prevent emergencies and reduce their adverse
consequences, the Company maintains the functionality
and modernises local warning systems, and also
integrates them with municipal warning systems.
GRI 413-1
En+ Group has established a system to share
emergency-related data at the emergency
forecasting phase and in case of its actual occurrence.
A dedicated hotline is used to receive information from
employees and third parties. For emergency alerts,
the Company’s enterprises use local warning systems
that are integrated with municipal alert mechanisms.
GRI 14.15.1
To prevent industrial accidents and incidents that may
be caused by the operation of hazardous production
facilities, En+ Group ensures maintenance, industrial
safety reviews1, upgrades, and overhauls of equipment,
buildings, and structures, implements modern
operational practices, and uses advanced operation,
maintenance, and repair technologies.
1
Industrial safety requirements, including those related to the preparation and performance of industrial safety reviews, are set out
in the Group’s local documents.
Industrial safety working
groups
In 2024, an industrial safety working group
consisting of 15 employees was created
at the Metals segment. The objectives
of the group are to identify accident and
incident risks at hazardous industrial
facilities, develop measures to prevent
them, and find opportunities for improving
the industrial safety management system.
In the reporting period, the working group
focused on enhancing the safety of mining
operations: checklists were developed
to inspect hazardous industrial facilities,
and facility audits were performed.
GRI 403-5, 14.16.6
En+ Group conducts regular mandatory training
for employees in occupational health and safety,
fire safety, civil defence, emergency prevention
and response. The Group has established Basic and
Principal Safety Rules that are regularly communicated
to employees and contractors during briefings and
meetings.
Moreover, the Company holds additional training
sessions depending on its goals and objectives
for the current period. Employees receive training
in-house and in external training centres.
Upon completion of a training course, trainees undergo
knowledge assessments and provide feedback through
post-training satisfaction surveys, enabling En+ Group
to evaluate training effectiveness and the need to improve
training programmes. HR specialists monitor timely
provision of training under each programme.
In 2024, the Power segment developed and implemented
a matrix of mandatory types of employee training and
certification for each job and profession. In the reporting
period, the Metals segment included workplace safety
cases in its training programmes for the talent pool
of managers.
Emergency preparedness
OHS training
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128
CONSOLIDATED REPORT 2024
Avoidance of hazardous operations, elimination
of hazards
Replacement of hazardous operations, equipment,
and materials
Technical methods to reduce the impact of hazards
on employees
Organisational methods to reduce the time
of employees’ exposure to hazards
Administrative methods (training sessions, briefings,
technical courses, audits, etc.)
Collective and personal protective equipment
Professional indemnity insurance
GRI 3-3, 403-2, 403-4, 403-9, 14.16.1, 14.16.3, 14.16.5, 14.16.10
The risk-based approach underlying the Group’s
OHS management system allows for proactive risk
management strategies to ensure employee safety.
En+ Group’s enterprises apply corporate safety risk
assessment procedures. The Group adopts preventive
measures to reduce risk levels and takes actions
developed as a result of accident investigations.
Since PPE is the final physical barrier between harmful
and hazardous workplace factors and employees,
the Company pays great attention to the quality and
range of PPE provided to employees. All PPE is provided
to employees in accordance with their gender and
anthropometric parameters.
As a result of conducted risk assessments and accident
investigations and based on violations identified during
internal audits, the Company has made a list of the most
significant risks:
∙Risk of employees falling when moving around
the site and industrial premises of enterprises
∙Risk of falling from a height
∙Pinch point and caught-between hazards when
working with rotating and moving machines
∙Caught-in hazards when working near rotating parts
of machines
∙Risk of electric shock
∙Risk of collapse of the roof of the mine
due to the impact of a mining impact
Key OHS risks (process risks and safety such as natural
disasters, large-scale accidents, epidemics, etc.)
are included in the consolidated list of sustainability
risks at En+ Group and regularly analysed
by the Group’s top management.
Undoubtedly, hazardous operations have the highest
injury potential. Each enterprise has approved a list
of hazardous operations. Supervisors in charge
of relevant operations carry out a mandatory risk
assessment and take measures to manage identified
risks.
For more details on realised risks, injuries, accidents,
incidents, and emergencies, see the Metrics and
Targets subsection
Employees are also expected to identify unsafe
conditions and actions before and during performing
any operation. There are several communication channels
for employees to report such actions/conditions to their
line manager and OHS specialists so that they could take
corrective measures:
∙telephone and e-mail
∙telegram-channels
∙labour dispute commissions, OHS commissions, and
ad-hoc commissions
∙monthly meetings on OHS issues
∙the Signal hotline
∙speak-up boxes
∙an incident warning system for managers
En+ Group conducts a special assessment of working
conditions at least once every five years1. The most
prevalent harmful workplace factors for the Power
segment include occupational noise, heightened dust
levels in working areas, and whole-body vibration.
In the Metals segment, harmful workplace factors
are attributed to arduous work.
Risk management
1
In accordance with the classification provided in the Federal Law On Special Assessment of Working Conditions.
The Company has established
the following hierarchy of risk
management measures (in descending
order of effectiveness):
Occupational noise
• Protection by time –
arrangement
of the appropriate
work and rest
schedule
• Hearing protection
equipment
Whole-body vibration
• Appropriate work and
rest schedule
• Replacement
of driver seats
in special vehicles
with shock-absorbing
seats
Heightened dust
levels in working
areas
• Dust suppression and
aspiration systems
• Respiratory
protection
equipment
Arduous work
• In-process testing
of exoskeletons
is being carried out
Measures to improve working conditions
STRATEGIC REPORT
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FINANCIAL STATEMENT
APPENDICIES
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130
CONSOLIDATED REPORT 2024
GRI 3-3, 403-1, 14.16.1, 14.16.2
The Company regularly reviews the results of external
and internal audits of its OHS management system
and tracks the achievement of safety goals and KPIs.
In accordance with the Regulations on Ongoing
OHS Status Monitoring, managers across all levels
conduct monthly assessments of the prevalent
OHS situation and report these data to OHS functions.
GRI 3-3, 14.16.1
In 2024, KPIs of managers across all levels at the Power
segment were supplemented with occupational
safety indicators: zero fatal injuries, achievement
of the Company’s target LTIFR, ISO 45001 certification,
implementation of the strategic OHS action
plan. As for the Metals segment, KPIs of business
unit managers included the launch of projects
to introduce occupational safety tools in addition
to the implementation of measures to improve working
conditions. The KPI achievement status is assessed
annually and affects the remuneration of managers
across all levels.
GRI 403-9, 14.16.10, SASB EM-MM-320a.1, IF-EU-320a.1
In total, the Company recorded 119 workplace accidents
involving employees and 29 workplace accidents
involving contractors in 2024. The most common types
of occupational injuries are bruises, fractures, chemical
(due to exposure to sodium hydroxide solution) and
thermal burns in the Metals segment, and bruises,
fractures, and thermal burns in the Power segment.
A large portion of incidents was caused by falls,
including falls from the same level, pinch point and
caught-between hazards, falling objects, contact with
rotating parts and mechanisms.
GRI 403-2, 403-9, 14.16.3, 14.16.10,
SASB EM-MM-320a.1, IF-EU-320a.1
En+ Group registers and maintains records of work-
related injuries, accidents, and occupational diseases
among both employees and contractors. The Company
rigorously investigates each incident in compliance
with effective legislation and local procedures. Based
on the investigation results, causes of incidents
are identified and measures to prevent such incidents
in the future are developed.
In 2024, the main causes of occupational injuries
included:
∙Poor condition of stairs
∙Littering and late cleaning of pathways from snow
and ice
∙Movement along an unauthorised route
∙Lack of coordinated action when performing work
∙Violation of the rules for placing machine parts and
mechanisms
∙Performance of hazardous operations without a safe
work permit
∙Staying in a hazardous area with rotating mechanisms
∙Personal negligence
The causes of fatal and serious injuries included
a rock fall, lack of control over the organisation and
performance of operations by responsible persons
and violation of safety requirements by the injured,
inadequate work management.
In 2024, 7 employees and 4 contractors died as a result
of occupational accidents at the Company’s facilities.
A group accident occurred at the Metals segment
as a result of falling rock at a mine. One employee lost
his life and the other was seriously injured. The Company
improved its information support for research and
identification of focal factors of rock bumps, adjusted
the methodology for calculating the stability indicator, and
arranged the development of earthquake-resistant mine
supports.
An employee of the Metals segment was fatally
injured as a result of a collapse of metal structures.
After this incident, the Company reconstructed all multi-
stage washers at the site to make them single-stage
washers, assessed the technical condition of all washers,
and developed temperature control measures for possible
admission of employees to the washer.
In the Power segment, a fatal accident occurred at one
of open-pit coal mines as a result of an employee being
caught between rotating parts of production equipment.
Following this incident, the Company installed additional
guards for rotating mechanisms that prevent unauthorised
access of employees to a hazardous area, inspected
light and sound alarms, safety and locking devices on all
equipment with rotating parts, and installed additional
light alarms with a remote start function.
Another fatality occurred as a result of an unstable
metal structure falling on an employee. Based
on the investigation results, an action plan
was developed that included the development
of safe work maps with step-by-step descriptions
for the manufacture of large-size, same-type metal
structures.
Metrics and targets
Key 2024 goals
Goals
Status
Progress made in 2024
Decrease LTIFR by 10%
and achieve zero fatalities
Not achieved
• LTIFR of En+ Group was 0.84 (per 1 million working
hours)
• One fatality occurred at the Power segment, and six
fatalities occurred at the Metals segment
Develop OHS digitalisation
and automation projects
Achieved
• The pilot operation of the En+ Life mobile application
was completed
• A project to improve the Inspections section of the 1C
OHS system was presented at the competition My
Career 2024. The implementation of the project
commenced in 2024
Increase the percentage
of enterprises whose
OHS management
systems comply with
ISO:45001
Achieved
• All enterprises of the Power segment and 12
enterprises of the Metals segment are certified
for compliance with ISO 45001:2018
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
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132
CONSOLIDATED REPORT 2024
Total Recordable Injury Rate (TRIR)
for employees, per 1 million man-hours worked
‘22
‘23
‘24
1.15
1.66
1.33
Metals segment
Power segment
En+
1.2
0.77
1.05
1.26
1.0
1.17
‘22
‘23
‘24
Metals segment
Power segment
En+
0.89
0.67
0.81
0.52
0.76
0.94
0.57
0.84
0.9
‘22
‘23
‘24
Metals segment
Power segment
En+
123
65
188
113
255
163
65
228
142
1
Hereinafter in the Occupational Health and Safety section, statistics on occupational diseases include only registered cases for existing
employees. The figures exclude cases of occupational disease that were first detected in the post-exposure period. No fatalities
as a result of occupational diseases were recorded in the reporting period.
GRI 403-9, 14.16.10, SASB EM-MM-320a.1, IF-EU-320a.1
Lost Time Injury Frequency Rate (LTIFR)
for employees, per 1 million man-hours worked
GRI 403-9, 14.16.10, SASB EM-MM-320a.1, IF-EU-320a.1
GRI 403-10, 14.16.11
In 2024, the Group registered 228 cases
of occupational disease. The prevalent occupational
diseases are vibration syndrome at the Power
segment and vibration syndrome, arthrosis,
periarthrosis, and chronic fluorine intoxication
at the Metals segment.
Occupational diseases suffered by employees1
∙To commence full-scale operation of the En+ Life
application.
∙To implement the Regulations on the Contractor
Safety Management.
∙To introduce a company-wide system to analyse
identified violations.
∙To review the BSA process.
∙To learn lessons from occupational safety incidents
and apply the insights at all enterprises.
∙To arrange dental care for employees – a pilot
project at Krasnoyarsk HPP.
∙To organise rehabilitation for operational staff
of enterprises in case of emotional burnout and
psychological difficulties.
Plans for 2025 and the medium term
GRI 403-10, 14.16.11, 14.15.3
No natural or man-made emergencies occurred
at En+ Group’s facilities in 2024.
En+ Group’s injury rates in 2024
GRI 403-9, 14.16.10, SASB EM-MM-320a.1, IF-EU-320a.1
fatal injuries
Employees
Contractors
high-consequence
injuries
minor injuries
micro injuries that required
medical treatment
7
20
92
48
4
5
20
14
For more details on injury metrics and rates,
see the Appendix Additional ESG Data
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
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134
CONSOLIDATED REPORT 2024
Employees
29.3%
of the workforce represented by women compared
with 28.4% in 2023
93,486 employees
at the end of 2024
∙Corporate Code of Ethics
∙Policy on Human Rights
∙Diversity and Equal Opportunities Policy
Material topics
∙Employees, management and engagement
∙Social and cultural diversity and equal opportunities
GRI 3-3, 2-27
Employee development and support is an important
part of the En+ Group Strategy. En+ Group’s HR
management complies with the Company’s Human
Rights Policy, the Diversity and Equal Opportunities
Policy and the Corporate Code of Ethics. Regardless
of the grade, all employees are required to comply with
the provisions of these documents. At the same time,
Management
HR management structure
81.7% of employees
covered by collective bargaining agreements
compared with 85% in 2023
the Company expects its partners and suppliers to also
comply with the principles stipulated in the Policies and
the Code. In its operations in the regions of presence,
En+ Group strictly follows national labour laws. In 2024,
no violations of the labour laws and the Company’s
internal policies were recorded.
GRI 2-13
CEO
Remuneration
Committee
• Develops and
regularly reviews the
remuneration policy
• Reviews matters related
to the establishment
of effective and
transparent
remuneration practices
Corporate governance
and Nominating
Committee
• Sets the Company's
priority business areas
• Runs a detailed
formalised procedure
for the self-evaluation
or external performance
evaluation of the Board
of Directors and its
committees
• Plans appointments
HR Directorate, Metals segment
• Carries out strategic HR management
in the Metals segment
HR units at individual production facility
• Carry out day-to-day HR management
at the enterprise level
Board of Directors, Metals segment
Metals segment
Nominations committee
• Runs the Board
of Director's self-
evaluation process
• Arranges an external
performance evaluation
of the Board of Directors
• Determines
the individual
responsibilities of the
Board members
Remuneration
Committee
• Related to establishing
effective and transparent
remuneration practices
• Oversees the
implementation of the
remuneration policy and
incentive programmes
• Supervises disclosure
of information on the
remuneration practices
of the Board of Directors
and the CEO
CEO
HR Directorate, Power segment
• Coordinates the implementation of
the HR policy across the Company
HR units at individual production facility
• Carry out day-to-day HR management
at the enterprise level
Board of Directors, En+ Group
Power segment
Appointments/instructions
Review of resolutions, preparation of
recommendations/implementation of resolutions
STRATEGIC REPORT
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FINANCIAL STATEMENT
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136
CONSOLIDATED REPORT 2024
Strategy
En+ Group’s HR management strategy seeks to provide
opportunities for the professional development and
social well-being of its employees:
∙guarantees competitive salaries and additional
payments;
∙provides opportunities for training and professional
development;
∙offers an expanded package of social guarantees;
∙takes care of physical and mental health;
∙creates a comfortable working environment.
Incentives and remuneration
En+ Group offers its employees competitive pay above
the market average, thereby boosting their motivation
and overall job performance. Employees’ compensation
comprises a basic salary and additional payments
contingent upon their performance evaluation.
The incentive system includes various categories
of payments:
∙bonuses awarded by heads of subsidiaries;
∙annual, quarterly and monthly bonuses;
∙payments to employees actively contributing
to the Company’s social projects;
∙payments to recipients of corporate, national,
or agency awards.
The amount of annual, quarterly and monthly bonuses
depends on the achievement of key performance
indicators (KPIs). To assess the results, En+ Group
monitors the indicators on a monthly basis, and
employees submit quarterly progress reports through
UNIVER, the Company’s intranet portal. En+ Group
uses the 32 parameters of SHL methodology
to assess its employees’ competencies. The metric
scores are grouped into the Talent Management, Task
Management, and Self-Management pillars, reflecting
three key aspects of job performance.
Social support
GRI 401-2
En+ Group offers its employees a wide range of social
programmes beyond those required by law and also
provides equal benefits regardless of the type of their
employment contract.
Expenses for social programmes and benefits, 2024, RUB mn
8,908
1,974
29.7
489.5
222.3 311.0
13,684.2
Organisation and holding of social
and fitness events for employees
and their families
Organisation and holding of medical
events for employees and their
families
Family and Parenthood Support
Programmes
Financial assistance programs for
employees of the organisation who
find themselves in a difficult life
situation
Housing programmes
Corporate programmes of
non-state pension coverage and/or
long-term savings
Social support programmes for employees and their families
Support programme
Description
Preferential mortgage
programme and housing
programme
The Company cares about the affordability and quality of living conditions for its employees.
En+ Group has a preferential mortgage programme that covers 50% of the monthly payment
for employees who have worked at the Group’s facilities for a minimum of three years,
as well as for specialists under 35 years old employed by the Group for at least a year. In 2024,
the Metals segment launched its own housing facilities at enterprises. It is planned to purchase
150 flats in the cities of the Company’s responsibility. The flats will be converted into dormitories
and corporate apartments.
Health resort treatment
Every year the Company sponsors employee health improvement programmes at recreational
medical facilities and resorts, and organises vacations for employees’ children. Every 2–3 years
employees can receive a reimbursement of 80-90% of the voucher cost for themselves and up
to 70% for their family members.
Supporting employed
parents
Assistance is provided to large families and schoolchildren’s parents through financial support,
along with the distribution of school supplies during the annual Get a Child Ready for School
campaign and New Year gifts for employees’ children.
Furthermore, parents of children with special needs are entitled to a monthly allowance
of RUB 10,000 per child until the child reaches the age of 18, along with reimbursement
of preschool costs.
Meal allowance
En+ Group provides subsidised meals to all employees.
Promotion of sports and
healthy lifestyle
The Company organizes sports activities for employees.
STRATEGIC REPORT
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FINANCIAL STATEMENT
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138
CONSOLIDATED REPORT 2024
GRI 2-30, 401-2, 407-1, SASB EM-MM-310a.1
To ensure effective social support for its employees,
the Company responds attentively to their wishes and
needs, guided by the principle of social partnership.
En+ Group fosters positive dialogue with employee
representatives from trade union committees and
negotiates collective bargaining agreements with
Involvement of work, women’s, and youth councils
Council
Involvement
Women’s councils
The Group’s enterprises have women’s councils, whose activities include the organisation
of master classes, meetings with invited speakers and career guidance events.
In 2024, the women’s council of the Krasnoyarsk HPP organised and held sports events, creative
master classes, family team games, and also took part in the all-Russian campaign “Give Books
with Love!” The council members promote family values and support the Company’s female
employees and their families.
Work councils
Work councils are responsible for facilitating communication between employees and
the employer regarding labour, production development, and compensation. Additionally, they
hold volunteer and leisure events for employees.
Youth councils
Youth councils involve young specialists in the corporate decision-making process.
GRI 413-1
Support programme
Description
Maintaining employee
health
The Company implements a set of measures to maintain the health of employees: provides
voluntary medical insurance, develops its own medical centres, participates in a project
of the Social Insurance Fund (SIF) to prevent occupational diseases, arranges voluntary
vaccination and a programme for the prevention of cardiovascular diseases, provides health
resort recreation.
Retiree support
Retired employees of En+ Group are entitled to partial compensation of health resort treatment
costs.
Dobroservice advisory
support line
Employees can contact the hotline of the Dobroservice employee support centre to receive
psychological and legal support as well as personal finance advice. Upon receiving a support
request, the customer service manager schedules a convenient time for a consultation
or facilitates an immediate connection with an expert if the issue is urgent. The service
is confidential and available 24/7. In 2024, about 300 calls and more than 770 messages were
received through the hotline.
Psychological relief rooms
To prevent burnout and reduce stress, the Company created a network of psychological relief
rooms at its enterprises. In these rooms, employees can use massage chairs and special massage
glasses, aroma diffusers, video and audio equipment. In 2024, 14 psychological relief rooms were
available to employees. Two new rooms were opened in branches. In the reporting year, 3,555
employees used the rooms.
GRI 2-23, 406-1
En+ Group’s HR management is based on the principle
of non-discrimination set out in the Diversity and Equal
Opportunities Policy. The Company guarantees equal
treatment of all employees and non-discrimination.
Key human rights documents:
∙Policy on Human Rights
∙Diversity and Equal Opportunities Policy
GRI 408-1, 409-1
En+ Group does not tolerate child, forced,
or compulsory labour. No cases of discrimination
and the use of child or forced labour were recorded
in the reporting period. En+ Group respects
Human rights
human rights, works to prevent human rights
violations at its facilities, and expects the same from
its counterparties.
GRI 410-1
The HR Department is responsible for ensuring human
rights compliance across the Group. Human rights
risks are incorporated into the Company’s overall risk
management system. En+ Group conducts regular
assessments of these risks. The Company delivers
regular training courses for employees to promote
human rights principles. In 2024, 100% of security staff
received training in human rights and their application
to the field of security. In 2024, no complaints about
violations of labour rights were recorded.
For more details on available mechanisms for reporting
violations, see the Corporate Ethics and Compliance
section
them. En+ Group does not impose any restrictions
on employee participation in such associations.
In the reporting year, 81.7% of the Company’s employees
were members of trade unions. Interaction with
employees is also carried out through representative
bodies: work, women’s and youth councils.
GRI 403-6
STRATEGIC REPORT
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FINANCIAL STATEMENT
APPENDICIES
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140
CONSOLIDATED REPORT 2024
Projects for schoolchildren
En+ Group invites its employees to schools, including
former pupils of the same schools, to share their
experience, talk about the Company’s activities and
career opportunities for future specialists. En+ Group
also organises tours to its enterprises, more than 800
schoolchildren visited them during the reporting period.
In the reporting year, the 14th Annual All-Russian
Academic Competition for Schoolchildren “13 Element.
Alchemy of the Future” in natural science subjects
was held. More than 44,000 schoolchildren have
participated in it over the entire period of time.
Employee training
En+ Group provides extensive opportunities
for employee training and development:
• Univer portal: corporate portal with 14 educational
courses, programmes and personnel assessment
system.
• Professional training: the Company runs
professional training programmes across 54 blue-
collar professions, alongside various professional
development programmes for managers and
specialists. Additionally, simulation training
is provided for CHP operational staff.
• Subsidised higher education: a subsidised higher
education programme for En+ Group employees
at partner universities for the purpose of subsequent
rotation and development. In 2024, 74 employees
were trained, 26 of them were selected for a new
stream.
• Kommersant 2024: corporate development
programme to strengthen the talent pool in project
management, develop negotiation skills and
emotional intelligence (19 participants, 18 participants
completed the programme).
• Leader’s School: training courses in management
skills (35 participants).
• Financier’s School: additional educational modules
for employees of financial and economic units (66
participants).
• Law School: training for employees of legal
departments (202 participants).
• Power of Law: Innovations and Solutions
for the Future: an annual conference for lawyers
on robotic automation, ecology, PPP and bankruptcy.
In 2024, the conference brought together 162
participants and 43 speakers, included sessions and
expert advice.
Attracting students
En+ Group actively cooperates with educational institutions
to train young specialists and attract students:
• IT Academy: enrollment of the fourth group in the Power
segment in 2024. Current training: third group – 47 people,
fourth group – 60 people. Graduation and employment
of trainees from the second group at En+ Digital LLC – 31
people on a permanent basis and 4 people under a fixed-
term contract. The third group consisting of 175 students
was enrolled in the Academy in the Metals segment.
• Business Academy: the Company trains logistics,
procurement and sales specialists. Following the first
training module in 2024, 40 people signed employer-
sponsored contracts.
• Economist’s Academy: together with the Siberian Federal
University and the Ural Federal University, a new economics
course was launched in the reporting year, with 17 students
selected for the course.
• Scholarship programme: talented students studying at 57
selected educational institutions of various specialisation
can receive a scholarship from the Company. The total
number of applications received under the programme
in 2024 was 803. Following the 2024 selection process,
200 people were awarded the scholarship.
• Employer-sponsored training: En+ Group also
enters into employer-sponsored education contracts
with students from Russian higher education
institutions, granting additional monthly scholarships
sponsored by the Company. Graduates are employed
by the Company. Some 45 graduates were employed
in 2024. In 2024, employer-sponsored contracts were
concluded with 77 students of Irkutsk National Research
Technical University (INRTU), Bratsk State University (BrSU),
Irkutsk State Agrarian University, Irkutsk State Transport
University, Irkutsk State University (ISU).
• Grant programme: 34 educational institutions took part
in Energy Lab, the annual grant programme for students.
The programme was designed to search for innovative
solutions for further implementation at En+ Group
facilities. The awardees received cash prizes from
the general fund of RUB 1 million.
• Support for foreign students: En+ Group implements
an international educational programme under which
160 students from Jamaica, Guinea and Guyana have
graduated from the Siberian Federal University (SibFU),
Peoples’ Friendship University of Russia (RUDN University),
Ural Federal University, Ural State Mining University,
Russian University of Transport (MIIT), Moscow Automobile
and Road Construction State Technical University (MADI),
National University of Science and Technology MISIS,
Krasnoyarsk State Medical University since 2011.
En+ Group provides its employees with a wide range
of opportunities for development and training.
In the reporting period, the average number of training
Employee training and development
GRI 404-2
Training of young employees
En+ Group actively supports the development
of its young specialists through several programmes:
• My Career 2.0: a development marathon in the form
of a case championship, where teams consisting
of young specialists compete under the guidance
of En+ Group experts. In 2024, 110 people took part
in the programme, and 20 have already been included
in the talent pool.
• Future Leaders: a corporate-wide programme
for En+ Group, RUSAL and ISO to train future leaders
in the Company. Some 61% of employees (out of 298)
undergoing training under the programme have
already received a new appointment. The first group
of trainees is expected to complete the Leaders
programme in 2026.
• En+ Group also has a mentoring system for young
specialists. Mentors receive financial support,
undergo training, and the mentoring unit is included
in the leaders’ training programme.
Partnership under
the Professional
Training federal project
(Professionalitet)
The Professionalitet federal project
contributes to the implementation
of a new industry-driven workforce
training model by integrating colleges
and leading industrial enterprises into
clusters focused on the key sectors
of the economy.
As part of its participation in the project
in 2023–2024, the Company invested
RUB 112.7 million (USD 1.2 million).
In the reporting year, as part
of the programme, the Company
collaborated with 11 educational
institutions in the Fuel and Energy
Complex, Information Technologies,
Tourism and Services. In 2024, all budget-
funded places were allocated, more
than 90 students plan to conclude
employer-sponsored contracts with
the Power segment, and about two
thirds of students have entered into
an employer-sponsored contract with
the Metals segment.
In addition to various educational programmes,
the Company also supports employee development
through an annual professional excellence
competition. For example, En+ Group organises
annual competitions among CHP operational
staff. In 2024, 132 employees (12 teams) took part
in them. Following the professional competition,
three winners were selected in the team
competition, 10 winners – in the individual
competition “Best in the Profession.”
hours per employee was 49 hours. In 2024, En+
allocated RUB 994.5 million for training programmes
(USD 10.7 million).
Training and development opportunities
STRATEGIC REPORT
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FINANCIAL STATEMENT
APPENDICIES
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142
CONSOLIDATED REPORT 2024
Risk management
En+ Group consistently implements a set of preventive
measures to minimise potential HR management risks.
These measures include a comprehensive system
of professional training and development of employees,
an expanded package of social programmes, improving
the quality of life in small towns, including medical
care, educational programmes, and opportunities
for comfortable recreation.
GRI 2-7, SASB EM-MM-000.B
At the end of 2024, En+ Group’s headcount
was 93,486 up by 3.7% year-on-year. The majority
of employees are employed under full-time (98.7%)
permanent (93%) employment contracts.
For more details on risks, see the Internal Control and
Risk Management section
Metrics and targets
Key 2024 goals
Goals
Status
Progress made in 2024
Ensure the implementation
of the Scholarship programme
Achieved
Following the 2024 selection process, 200 people from
56 educational organisations in Russia became awardees
(in 2023 – 177 people).
Continue the IT Academy educational
programme through partnerships with
INRTU, ISU, BrSU, and SibFU to ensure
that our needs for IT talent are covered
On track
35 graduates of the second stream are employed
by En+ Group, 47 participants of the third stream and
60 participants of the fourth stream (which was enrolled
in 2024) are undergoing training.
As part of the Professionalitet
project, ensure the implementation
of the approved action plan, commence
training programmes at the Irkutsk
Energy College and the Ust-Labinsk
Social Pedagogical College
Achieved
Training on the basis of target colleges in the IT and
Fuel and Energy clusters has been launched, and
an agreement has been concluded to set up a new
cluster – Tourism and Services
Implement the Energy Lab project
engaging at least 15 higher and
secondary vocational education
institutions
Achieved
Students of 34 educational institutions were involved
in the annual project, three winning teams were selected
at the final stage, their solutions of production cases were
recommended for implementation at En+ Group
Ensure the development of the En+
Group Leaders programme
in accordance with the action plan
Achieved
In 2024, the training modules “Manager as Leader” and
“Business Leader” were successfully completed.
GRI 202-2, 401-1
Women account for 29.3% of the total workforce.
This is due to the specifics of the Group’s
operations related to the statutory prohibition
of women’s engagement in particularly hazardous
types of production. Of the 18,147 new employees
hired during the reporting period, women
accounted for 33.9%. The share of women
on the Board of Directors of IPJSC En+ Group
was 33%. When recruiting for its facilities and units,
the Company prioritises local hiring: the proportion
of locally hired managers stood at 93.4%.
Employment of people with special needs
is a significant area of the Company’s HR policy.
In 2024, their headcount reached 980 people
(1% of the total workforce).
GRI 2-8, SASB EM-MM-OOO.B
In addition to full-time employees, the Company
engages contractors and subcontractors to perform
construction and repair operations and contribute
to technological developments, employee training,
and marketing activities.
Total headcount as at the year-end, people
59,463
37,154
57,100
32,964
58,174
35,312
‘22
‘23
‘24
Metals segment
Power segment
96,617
90,064
93,486
GRI 2-7, 405-1
Gender diversity in 2024, %
Men
Women
29.3
70.7
22.2
77.8
58.0
42.0
25.4
74.6
22.5
77.5
Senior
management
Middle-level
management
Specialists
Blue-collar
employees
Total
workforce
GRI 2-7, 405-1
Under 30
30–50
Over 50
25.2
13.3
25.7
14.9
20.5
13.6
29.1
3.2
39.8
0.3
61.5
59.4
65.9
67.7
59.9
Senior
management
Middle-level
management
Specialists
Blue-collar
employees
Total
workforce
For more details on En+ Group employees, broken down by age groups,
see the Appendix Additional ESG Data
Employee breakdown by age, %
GRI 2-7, SASB EM-MM-OOO.B
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FINANCIAL STATEMENT
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CONSOLIDATED REPORT 2024
GRI 401-1
Total payroll expenses reached RUB 170.9 billion in 2024
(USD 1.848 billion). In 2024, the average pay of En+ Group
employees was RUB 113,824. Female-to-male salary ratio
was 0.70 in the Power segment and 0.58 in the Metals
segment. The basic salary of men at the Company is higher
than that of women due to statutory restrictions that
prevent women from working in hazardous setting.
GRI 404-3
Assessment of employee performance is an important
component of En+ Group’s HR management system.
The Company analyses the achievement of KPIs
by employees. In 2024, 9,859 (27%) employees of the
Power segment underwent performance and career
development assessment based on the 9-box model. This
assessment system helps identify promising employees
and determine areas of development for various
categories of personnel, 2,226 employees were included
in En+ Group’s Talent pool.
En+ Group takes a set of measures to reduce
turnover: from maintaining a competitive salary
to providing employees with additional social benefits.
In the reporting year, the staff turnover stood at 16.8%,
which is 4 p.p. higher than in 2023.
The Company regularly monitors the level of employee
engagement and satisfaction. To this end, En+ Group
conducts the Your Voice annual survey and a social
survey once every 2–3 years. In 2024, 64,415 people
(69% of the total workforce) took part in the Your Voice
survey.
Average pay of En+ Group employees
in Russia in 2024, RUB
90,947
129,655
113,824
Power
segment
Metals
segment
En+
Female-to-male basic salary ratio at Russian entities
Metals segment
Power segment
0,70
0,58
0.81
0.78
0.81
0.80
0.91
0.82
1.08
0.71
Senior
management
Middle-level
management
Specialists
Blue-collar
employees
Total
workforce
Employee engagement and
satisfaction levels, %
73.8
67.8
79.8
77.7
74.0
75,6
‘22
‘23
‘24
Satisfaction
Engagement
Recognition of educational
projects
In 2024, two En+ Group educational
projects received prizes in various
competitions, including:
• All-Russian Competition of Best
Youth Employment Practices
of the Ministry of Labour of Russia:
– the IT Academy project was ranked
first in the category “Building
the Career Trajectory of a Young
Specialist”
– the Energy School project
was ranked second in the category
“Career Guidance”
• Rosmolodezh competition:
– En+ Group University was included
in Top 10 among companies
in the category “Contribution
to Youth”.
Plans for 2025 and the medium term
GRI 405-2
∙To launch of own production of digital training
content.
∙To ensure the submission of three applications
for participation in the Professionalitet Federal
project.
∙To ensure the development of the En+ Group
Leaders programme.
∙To ensure the implementation of the mandatory
training plan.
∙To provide training to employees of En+ Group’s
northern cluster through the implementation
of the Bratsk branch of the Corporate University
project.
∙To develop new educational programmes
for employees, including for the formation
of a corporate culture, onboarding of new
employees, familiarisation with business
processes, development of leadership and
management, and support of professional
growth.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
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146
CONSOLIDATED REPORT 2024
Sustainable Cities
Responsibility Index
The Sustainable Cities Responsibility
Index is a tool for a comprehensive
assessment of the appeal
the Company’s regions of responsibility
have as a place to live and work.
The Index helps identify priority
areas for the development of local
communities and measure the public
effect from the implementation
of En+ Group’s social projects
within its areas of responsibility.
The 2023 assessment of the regions
of responsibility included more than 40
cities and municipalities, with the total
number of respondents exceeding
7,500 people.
The identified areas for improvement
facilitated the allocation of En+
Group’s community investments
designed to improve the quality of life
in the regions in which it it operates.
In 2025, the Group intends to allocate
100% of its social investments based
on the Index.
Contribution to local communities
RUB 7.0 bn
(USD 76 mn) – total social investments by En+ Group
>5,000 employees
participating in volunteer programmes
Management
GRI 3-3, 203-2
En+ Group promotes the economic development
of its regions of responsibility through active
engagement with local communities and employment
of their representatives. The Company gives
priority to local candidates when recruiting and
hiring employees.
GRI 2-29
The Company’s operations in the regions of presence
are governed by the Stakeholder Engagement Policy.
The document formalises the core principles and
procedures for liaising with government bodies,
local communities, non-profit organisations (NPOs),
and the Company’s employees living within its areas
of responsibility.
GRI 413-1, SASB EM-MM-210a.3
The Company’s social investments are aimed
at developing infrastructure facilities, increasing
the availability of educational and medical services,
and supporting cultural and sports initiatives.
To identify the needs and expectations of local
people, the Company annually conducts a social
survey for subsequent development of special-
purpose programmes to solve the most pressing
problems of local communities. Moreover, En+
Group routinely hosts forums and meetings with
local community members and actively engages local
communities in the Company’s volunteer projects.
GRI 411-1, 14.11.2, SASB EM-MM-210a.2
When engaging with local communities, En+ Group
pays special attention to observing the rights
of indigenous minorities. The Company does not
operate in the territories or near the places where
they live and avoids actions that entail the need
for resettlement. In 2024, no violations of the rights
of indigenous minorities and no instances of forced
resettlement were recorded.
∙Stakeholder Engagement Policy
Material topic
∙Community engagement
For more details on the Index, see
the Appendix Additional ESG information
GRI 3-3, 14.10.1
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FINANCIAL STATEMENT
APPENDICIES
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148
CONSOLIDATED REPORT 2024
GRI 2-13
En+ Group’s social investment and project management structure
Strategy
Development of infrastructure and urban
environment
GRI 203-1
The Company organises and participates in urban
projects, including those implemented together with
local authorities through public-private partnership (PPP)
initiatives. In addition, En+ Group ensures uninterrupted
power supply within its areas of responsibility thanks
to improvements made to the power supply system.
Project
Objective
Investments
2024 results
Power segment
Cities with a Plus Sign
grant competition
Supporting long-term
projects to improve
the environment
in the cities where
En+ Group operates
238 applications for grants were
submitted. Grants were awarded to ten
participants who will receive financing
of RUB 3 to 5 million to implement their
projects.
Up and Do
comprehensive
community support
and development
programme
Supporting initiatives
of local communities
and municipal
institutions
Four workshops, seven marathons,
and 13 meetings were held as part
of the mini-grant competition
in Divnogorsk and Bratsk.
131 applications for participation
in the mini-grant competition were
considered, 66 projects were financed
and implemented.
Metals segment
Agreement with
the Krasnoyarsk
city administration
to implement social
projects
Creating a comfortable
urban environment
in Krasnoyarsk
RUB 2.3 bn
(USD 24 mn)
An agreement was signed with
the Krasnoyarsk city administration
to implement urban improvement
projects: reconstruct the Central Park,
restore buildings in the Historical
Quarter.
The project is scheduled for completion
by 2026.
Health care and creation
of significant social
infrastructure for the
people
Assistance in
diagnosing and
combating infectious
diseases to local
residents
RUB 26.3 mn
(USD 284,000)
Construction and repair of various social
infrastructure (drinking water wells,
first-aid posts, etc.) were financed.
CEO
Board of Directors,
Metals segment
Metals segment
Sustainable Development
Directorate
• Develops the social
investment strategy
and priorities under
the Sustainable
Development Strategy
Public Expert Council on Sustainable Development
Social Policy Committee
• Approves the social investment
strategy, priorities, and budget,
as well as the content and scope
of funding for social programmes
and projects in each region
of operation
Regional Social Investment
Committees
Committees on Social
Projects at enterprises
• Review charitable
assistance requests
received by enterprises
• Make proposals on social
investments in respective
regions
Centre for Social Programmes Corporate Charitable Foundation
• Carries out day-to-day management of charitable activities and
social investments in the regions of operation
• Monitors and evaluates social projects
• Prepares proposals to improve existing programmes and
develop new ones
CEO
Board of Directors, En+ Group
Power segment
Deputy CEO
for Public Relations
Sustainable Development Directorate
• Develops the social investment strategy and priorities under
the Sustainable Development Strategy
Public Relations
Directorate
Department of Communication and
Social Projects
Social Investment Committees
Social project committees at enterprises
• Directly engages with host communities; review queries and
assistance requests
• Develops recommendations on the social policy for committees
• Approves social investments at the enterprise level
Appointments/instructions
Review of resolutions, preparation of recommendations / implementation of resolutions
STRATEGIC REPORT
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150
CONSOLIDATED REPORT 2024
Project
Objective
Investments
2024 results
Power segment
Project 360
environmental
volunteer initiative
Protecting Lake Baikal and
protected areas from negative
environmental impacts
The project was supplemented
with such activities as clean-up
events, arrangement of eco-trails,
improvement of the tourist
infrastructure, and maintenance
of protected areas.
83 environmental campaigns were
run in 13 Russian cities (+2 compared
to 2023) with the participation of 48
municipalities.
5,216 En+ Group’s corporate
environmental volunteers
and city residents took part
in the campaigns and collected 186
tonnes of waste.
Metals segment
River Day Marathon
annual environmental
initiative
Cleaning the banks of rivers
and other water bodies within
areas of responsibility
RUB 1.7 mn
(USD 18,300)
The event was held in 15 cities where
the Group operates. More than
2,500 volunteers cleaned the banks
of water bodies from 40 tonnes
of waste.
Green Wave traditional
environmental
initiative
Running urban greening
initiatives selected
on the basis of the Sustainable
Cities Responsibility Index
study
RUB 5 mn
(USD 54,000)
400 trees and shrubs were
planted in 22 cities by the initiative
participants.
Support for environmental projects
GRI 203-2
The Company implements environmental initiatives
in cooperation with volunteers, non-profit organisations,
Raising fishing nets
The expedition was conducted
with the assistance of the Angara-
Baikal Territorial Administration
of the Federal Fisheries Agency.
More than 4 km of fishing gear and
400 kg of other waste were lifted
from the lake.
Eco-lessons for children
Interactive lectures and lessons were
held in summer camps in Irkutsk
and the Irkutsk Region, where
children were told about the unique
ecosystem of Lake Baikal, introduced
to the fauna and flora of the water
body, and explained the importance
of environmentally friendly habits.
Hackathon
The three-day hackathon "Plastisphere
is not our world” for students was held
at Irkutsk National Research Technical
University (IRNTU). More than 50
participants developed projects
focused on promoting the concepts
of a circular economy, addressing
microplastic contamination, and
fostering a mindset of responsible
consumption.
Ballet on Lake Baikal
The goal of the festival is to draw
public attention to the problem
of pollution of Lake Baikal. In 2024,
soloists from the Bolshoi Theatre,
the Mongolian Opera and Ballet
Theatre, as well as graduates
of the Buryat Choreographic College
performed excerpts from classical
works on the lake shore.
In 2024, a number of events were held under the auspices of the alliance:
Creative competitions
A travelling exhibition of photographs of Buryat photo artists "Dalai/The Sea"
was held in 2024, where visitors got acquainted with the unique ecosystem
of the lake. In addition, the alliance organised a contest “Baikal Evolution:
People and Meanings” to create art objects from waste, mostly plastic. Each
submitted project incorporated at least 70% of recycled content, with half
of the materials being recyclable. The exhibition of the participants' works
was held in Irkutsk. The alliance also held a contest of videos and photos
for schoolchildren called Baikal Plastic Free, the participants of which shot
photographs and videos regarding the pollution of the lake.
Baikal Plastic Free Alliance
In 2022, the Company launched the Baikal Plastic Free Alliance, with the goal of shifting how
the public views the issue of plastic pollution affecting the lake and its nearby areas. The alliance
comprises more than 25 companies (+3 companies in 2024), including business representatives,
research organisations, non-profit and public organisations. Baikal Plastic Free supports limiting
the distribution of disposable plastic items within the core ecological region of the Baikal Natural
Area, implementing separate waste collection and waste recycling, and educating visitors
on the significance of protecting the water body.
For more details on the Company’s environmental initiatives,
see the Environmental Protection section
and national parks. En+ Group’s environmental projects
are focused on preserving natural ecosystems and
biodiversity and providing local communities with
environmental education.
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CONSOLIDATED REPORT 2024
Support for education
GRI 203-2
The Company implements professional development
and support programmes for talented young
people, provides targeted assistance to educational
institutions, and participates in career guidance events.
Project
Objective
Investments
2024 results
Power segment
Krasnoyarsk 5.0 national
championship
Creating a professional
environment for future
robotics engineers
More than 2,500 people took part
in the championship.
Knowledge with a Plus Sign is a comprehensive programme to advance education in the Group’s regions of operation
and promote the job of a power engineer among local community members.
Energy School
Educating school students
interested in the power
industry
Over RUB 5 mn
(USD 54,000)
Over 100 schools in the Irkutsk
Region are participating
in the project. 184 events were
held. More than 1,000 school
students are participating
in the 3rd year of the project.
A total of 4,777 individuals
(including parents and teachers)
have registered on the Energy
School’s portal.
Energy Classes
Free tutoring
for the Unified
State Examinations
for admission
to universities focusing
mainly on specialties
required in the energy
sector
Over RUB 2 mn
(USD 21,000)
46 school students attended
Energy Classes and 74% of them
were admitted to Irkutsk National
Research Technical University
(INRTU) and Bratsk State
University (BrSU) where they
will study for a degree in power
engineering.
Multilabs
Establishing state-
of-the-art centres
of competencies
in robotics, electronics,
engineering design, and
multimedia
RUB 66.2 mn
(USD 715,000)
Three multilabs were launched
in Bratsk, Nizhny Novgorod, and
Ust-Ilimsk.
5,683 events were held in seven
existing multilabs.
Energy in Every Drop
Developing hydropower-
related skills among
school students using
robotics
The third educational camp
of the project was held. 80
teachers and school students from
23 cities of Russia took part in it.
Project
Objective
Investments
2024 results
RoboSib robotics festival
Promoting robotics
among young inventors
aged 4 to 18
800 young inventors from
the Irkutsk Region, Krasnoyarsk
Territory, Novosibirsk, and
the Republic of Buryatia
participated in the festival:
• Ten teams received vouchers
totalling RUB 150,000
for purchasing robotics
equipment;
• Nine teams were awarded with
trips to the All-Russian finals –
Krasnoyarsk 5.0 National
Championship;
• In total, the festival
was attended by more than
5,000 people.
Metals segment
RUSAL FestivAL#Science
Unlocking the potential
of school students
in En+ Group’s regions
of responsibility
The festival was held for four
months in 16 cities and included
more than 100 scientific shows
and workshops.
36,000 children and adults took
part in the festival.
Scholarship programmes
in Guinea and Jamaica
Providing financial
support to foreign
students from Guinea and
Jamaica studying in Russia
RUB 962.7 bn
(USD 10.4 mn)
(support for students
from Jamaica)
113 students from Guinea and
Jamaica continued their studies
at Russian universities.
Grants for students
in Jamaica
Providing grants
and scholarships
to outstanding students
in Jamaica to realise
the potential of future
specialists
RUB 1.4 bn
(USD 15.6 mn)
73 students from various
universities and colleges
in Jamaica received grants
or scholarships.
For more details on educational projects for the Company’s employees,
see the Employees section
The En+ programme “Knowledge with a Plus Sign”
became the winner of the national award “Leaders
of Responsible Business” in the nomination “Ensuring
Technological Leadership”.
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FINANCIAL STATEMENT
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CONSOLIDATED REPORT 2024
Project
Objective
Investments
2024 results
Power segment
Nation’s Health
in Women’s Hands
Providing support
and advice to parents
of children with special
needs
Ten meetings with psychologists, speech
pathologists, and other specialists were
arranged.
Metals segment
Sokol martial arts
centres
Supporting
the development
of martial arts
in the operating
regions, providing
beneficial recreational
opportunities
to children and young
adults
RUB 772.5 bn
(USD 8.3 mn)
Martial arts centres were built
in the following cities: Achinsk, Volgograd,
Divnogorsk, Krasnoturinsk, Krasnoyarsk,
Severouralsk, Shelekhov. A total of nine
centers were built.
Laboratory
for Highly Infectious
Diseases
Assisting Guineans
in combating infectious
diseases
Investments were made to develop
the Research Institute for Epidemiology
and Microbiology and reorganise it into
a laboratory for analysing highly infectious
diseases.
Support for sports and healthy lifestyle
En+ Group promotes sports and healthy lifestyles
in the regions of responsibility. The Company’s projects
and events attract local community members, including
En+ Group’s employees and their families. The Company
invests in both amateur and professional sports
development by providing financial support to sports
teams and implementing sports infrastructure projects.
Promoting culture
En+ Group promotes culture in its regions
of responsibility through arranging events and financing
cultural and artistic institutions.
Project
Objective
2024 results
Power segment
Energy+ festival
Promoting culture
in the regions
of responsibility
Musical and dance performances, lectures, film screenings, public
talks with famous Russian writers, directors and actors were held in
four cities where the Company is present – Irkutsk, Nizhny Novgorod,
Divnogorsk, Bratsk. An exhibition of art objects made of straw was
held in Irkutsk and Divnogorsk, 20 teams of sculptors from all over
Russia took part in the creation of the exhibition.
Energy of Colours
street art festival
Promoting the street art
culture
Creative master classes and a sketch competition were held among
residents of Divnogorsk, Bratsk, and Ust-Ilimsk. 117 applications
were submitted for the competition. Three murals were created on
the facades of apartment buildings. Free painting workshops were
attended by 300 people.
Volunteering
En+ Group supports volunteer initiatives to involve
people in social activities. The Company develops
Project
Objective
Investments
2024 results
Helping is Easy
Promoting corporate and
community volunteer
initiatives
RUB 24.7 mn
(USD 266,800)
The results of a survey conducted among
370 volunteers of the project from
29 cities showed a high level of their
engagement and satisfaction – 79.6%.
the volunteer movement by involving both its own
employees and local community members in social and
environmental initiatives.
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FINANCIAL STATEMENT
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CONSOLIDATED REPORT 2024
Risk management
GRI 413-2, SASB EM-MM-210b.1
Based on the results of the assessment conducted
in the reporting period, the Company did not identify
any significant risks associated with local communities.
To prevent such risks, En+ Group regularly organises
forums and meetings with local communities to discuss
its projects and works to develop feedback mechanisms.
In the reporting year, En+ Group recorded no violations
of the rights of local community members or social and
economic incidents related to such violations.
Project
Objective
2024 results
PLUS public space
Implementing ideas
and projects of local
community members
220 events with 2,000 attendees were held. As a result
of the events, 15 applications for participation in grant competitions
were submitted and eight start-ups were launched. The Company’s
methodological support helped raise third-party grants for project
implementation in the amount of RUB 1 million
Pro Irkutsk debating
club
Fostering dialogue
between En+ Group
and local authorities
of the city of Irkutsk
for joint development
of the region
The Company identified the need to promote environmentally
responsible behaviour and launch educational programmes
on eco-friendly lifestyles for school and university students, and
the need to arrange green spaces/plant trees and shrubs in the city
to create a comfortable urban environment.
Pro Bratsk social club
Establishing an open
dialogue with local
authorities and
communities of Bratsk
En+ Group’s representatives arranged weekly meetings with local
community members in community liaison offices. More than 100
visitors were received. The causes for their visits included mainly
social issues, discussion of proposals for improvement, construction
of parks, complaints about urban infrastructure, requests
for financial support.
For more details on risks, see the Internal Control and
Risk Management section
Metrics and targets
Goals
Status
Progress made in 2024
Expand social initiatives and engagement with
stakeholders, including through a robust dialogue with
youth and work councils and partnerships with public
organisations and national parks
On track
• A new Plus public space was opened
Develop innovative tools to engage local community
members through workshops, task-based activities,
games, etc.
On track
• The Power segment implemented
the first street art festival, which
included master classes and a sketch
competition.
Commission several sports infrastructure facilities,
including a football pitch and a multi-use track
for bicycles, scooters, and skateboards
On track
• The Metas Segment continued the
implementation of the project for
the construction of Sokol martial arts
centres, opening six new facilities
Expand the volunteer movement
On track
• More than 10 projects and events were
implemented within the framework
of the volunteer programme “Helping
is Easy” with the involvement of more
than 7 thousand volunteers
Align 100% of community investments with
the Sustainable Cities Responsibility Index methodology
as part of the Metals segment’s transformational project
On track
• In 2024, 100% of social investments
will be carried out in accordance with
the methodology. An assessment of
changes in the quality of life in the
areas of responsibility is planned
for 2025.
GRI 203-1, П2-1.4, П2-1.8, П2-2.4,
П2-2.8, П2-2.10, П2-3.1, П2-3.3
Social investments in 2024, RUB mn
46.3
178.6
1 797.5
283.8
334.6
171.3
1,935.2
776.8
1,498.8
8.6
USD
7.0 bn
Volunteering
Social support
Sports
Healthcare
Culture
Environmental and
animal protection
Educational projects
Social infrastructure
and urban environment
Development of NPOs
and local communities
Other
Plans for 2025 and
the medium term
∙To continue environmental education activities under
the auspices of the Baikal Plastic Free Alliance.
∙To implement a year-round educational programme
for corporate volunteers to increase involvement and
develop employees’ soft skills.
∙To ensure the information system implementation
at all stages of managing social investment and
charity projects.
∙To re-calculate the Sustainable Cities
Responsibility Index.
Key 2024 goals
STRATEGIC REPORT
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FINANCIAL STATEMENT
APPENDICIES
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CONSOLIDATED REPORT 2024
Fundamental principles
and goals of En+ Group’s
corporate governance:
∙Transparency
∙Open and clear decision making
∙Timely disclosure of reliable information
about the Company
∙Well-balanced and effective internal risk
management systems
∙Legal compliance, including clear and
robust compliance with requirements
for the Company to be and remain clear
from OFAC sanctions2
∙Ongoing growth in the Company’s value
for the benefit of all stakeholders
1
As defined by Federal Law No. 290-FZ On International Companies and International Funds dated 3 August 2018.
Governance
Corporate governance
67%
share of independent directors
Independent non-executive directors head the Board
of Directors and all its committees
∙Charter
∙Regulations on the General Shareholders Meeting
∙Regulations on the Board of Directors
∙Regulations on the Audit and Risk Committee
∙Regulations on the Remuneration Committee
∙Regulations on the Compliance Committee
∙Regulations on the Corporate Governance
Committee
∙Regulations on the Nominations Committee
∙Regulations on the Health, Safety, and Environment
Committee
∙Board of Directors Diversity Policy
∙Policy on Human Rights
∙Regulations on the Corporate Secretary
∙Regulations on Performance Evaluation of the Board
of Directors
∙Regulations on Internal Audit
∙Regulations on Dividend Policy
Material topic
∙Corporate governance
GRI 3-3
Maintaining high standards of corporate governance is key
to attracting new investment, strengthening the Group’s
competitive position, and boosting shareholder value.
Good governance is based on the clarity of roles and
responsibilities. The Company aims to ensure that
its governance procedures are applied at all levels
of decision making across the Group.
As an international company¹, En+ Group builds
its corporate governance practice in accordance
with the Listing Rules of the Moscow Exchange and
the requirements of applicable Russian laws, and
also strives to comply with the recommendations
of the Corporate Governance Code of the Bank
of Russia.
Compliance with the recommendations and
principles of the Bank of Russia’s Corporate
Governance Code
For more details on compliance with the
recommendations and principles of the Corporate
Governance Code, see Appendix No. 1.
2 OFAC – the Office of Foreign Assets Control of the US Department of the Treasury.
9 February 2024
for the first time, the Board of Directors approved
the Regulations on Performance Evaluation of the Board
of Directors
23 May 24
Vladimir Kolmogorov took over as the Company’s CEO
22 May 2024
The contract with the CEO of Company, Mikhail Khardikov,
was terminated
19 December 2024
the Board of Directors extended the powers
of Vladimir Kolmogorov as the Company’s CEO from
1 January until 31 December 2025
Governance changes in 2024
53
20
‘22
‘23
‘24
5
1
56
18
4
1
57
17
4
1
Fully complied with
Partially complied with
Not complied with
Not applicable
Key goals for 2024
Goals
Status
Progress made in 2024
To conduct independent evaluation
of the Board of Directors,
its members, and committees
in order to assess the Board’s
performance
Achieved
External evaluation of the Board’s performance
was conducted with the involvement of an independent
consultancy (for more details see the Board Performance
Evaluation section below)
STRATEGIC REPORT
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FINANCIAL STATEMENT
APPENDICIES
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CONSOLIDATED REPORT 2024
Corporate governance structure
In 2024, the Company did not record any:
GRI 2-27
instances of unethical behaviour
of Board members or the CEO
GRI 2-15
conflicts of interest involving Board
members or the CEO
corporate disputes and criminal
cases against key officers and
employees of the Company
General Shareholders Meeting
RAS External Auditor
Board of Directors
Corporate Secretary
Director of the Internal Audit
Directorate
CEO
Board committees
• Audit and risk committee
• Remuneration committee
• Compliance committee
• Corporate governance committee
• Nominations committee
• Health, safety, and environment committee
Auditor’s report on the Company’s financial
statements
Approval
Reliable, unbiased, and
complete information
on the Company’s activities
Election
Preliminary review of matters and
recommendations
Appointment
Implementation
of resolutions
Appointment
Appointment
Accountability
Appointments/instructions
Review of resolutions,
preparation
of recommendations/
implementation
of resolutions
Authorisation
of appointment
Support
for activities
GRI 2-9, 2-13
The Company’s corporate governance system outlines
the relationship between the Company’s shareholders,
the Board, and the CEO, as well as the roles and
General Shareholders Meeting
Issues under the competence of the General
Shareholders Meeting (GSM), the procedure for making
decisions on them, the conditions for convening and
the requirements for participation are described
in detail in the Charter and Regulations on the General
Shareholders Meeting. Voting at a GSM is conducted
on the basis of the “one share, one vote” principle.
Resolutions are generally passed by a simple
majority of shareholders voting in favour of a motion
at the meeting, save for a number of matters, including
amendments to the Charter and reorganisation
of the Company, which require voting by a 2/3 majority.
En+ Group holds an Annual GSM (mandatory)
meeting and an Extraordinary GSM (as necessary). No
extraordinary GSMs were held in the reporting period.
Report on meetings held during the year
In 2024, the Annual GSM meeting of the Company
was held on 26 June by absentee voting, attended
by shareholders holding 84.4079% of votes
between them.
The Annual GSM meeting considered and passed
the following resolutions:
1. To approve the Company’s Consolidated Annual
Report for 2023
2. To approve the Company’s annual accounting
(financial) statements for 2023
3. Not to distribute the Company’s net profit for 2023
and not to pay dividends on shares for 2023
4. To elect the Company’s Board of Directors, consisting
of 12 members, from the list of candidates approved
by the Board:
– Christopher Burnham
– Lyudmila Galenskaya
– Vadim Geraskin
– Anastasia Gorbatova
– Thurgood Marshall Jr.
– Andrey Plugar
– J. W. Rayder
– Olga Filina
– Zhanna Fokina
– Andrey Sharonov
– James Schwab
– Andrey Yanovsky
5. To approve Centre for Audit Technologies and
Solutions — Audit Services as the Company’s auditor
for the accounting (financial) statements prepared
in accordance with Russian accounting legislation.
For more details on the results of the annual GSM
meeting, see the Company’s official website
responsibilities of the Board committees. The Company’s
corporate governance structure includes the following key
elements.
STRATEGIC REPORT
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FINANCIAL STATEMENT
APPENDICIES
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162
CONSOLIDATED REPORT 2024
Responsibility statement
The members of the Board confirm that:
∙The consolidated financial statements, prepared
in accordance with IFRS as issued by the International
Accounting Standards Board and as adopted
by the European Union, give a true and fair view
of the assets, liabilities, financial position, and profit
or loss of the Company and its subsidiaries, taken
as a whole.
∙This Consolidated (Annual) Report includes a fair
review of the development and performance
of the business and the position of the Company
and its subsidiaries, taken as a whole, together with
a description of the principal risks and uncertainties
that they face.
Directors’ and officers’ liability insurance
The liability of all Board members related
to the discharge of their duties at the Company
is insured under a D&O liability insurance policy that
covers any damage caused during the Directors’ tenure.
Board composition
GRI 2-9
As at 31 December 2024, the Board of Directors
included 12 directors: eight independent non-executive
directors, one of them being the Chairman of the Board,
and four non-executive directors. All of them attended
at the meetings of the Board of Directors throughout
2024.
Board of Directors
GRI 2-12
The Board of Directors of En+ Group takes strategic
decisions on the Company’s operations and exercises
control over their implementation. The Board
of Directors aims to create a long-term value
for the Company by supporting the balance between
short- and long-term objectives. The procedure
for forming the Board, powers and duties of the Board
members are outlined in the Charter and Regulations
on the Board of Directors. The Board of Directors
is accountable to the GSM.
Independent directors help put together an objective
view of the Company’s business and the strength
of its strategy, provide constructive challenge,
and bring to the Board and management of the
Company an unbiased perspective on the state of risk
management and internal controls, management’s
performance, as well as the strength of the Company’s
financial model and policies.
In 2024, the Board of Directors held 11 meetings.
The Board discussed matters remotely
via videoconference, where each director could give
comments, followed by absentee voting. All Board
members attended 100% of the Board meetings.
Full biographies are available
on the Company’s website
Shareholdings
As at the end of the reporting period, none
of the Board members, CEO or members
of the management directly or indirectly
held shares in the Company or concluded
any transactions with Company shares
in 2024.
Conflicts of interest and loans issued
to members of the Board and the CEO
During 2024 and up to the date of this
Report, the Company has not been aware
of any conflicts of interest affecting
any member of the Board or the CEO
(including in connection with their
participation in governance bodies
of the Company’s competitors).
GRI 2-15
In the event of a direct or indirect conflict
of interest, members of the Board are obliged
to provide a notification of its existence.
In this case, they abstain from voting on issues
in which they have an interest.
GRI 2-11
The Chairman of the Board of Directors
is an independent non-executive director and
does not combine their functions with those
of the CEO.
In 2024, no loans were issued by the Company
(or any Group company) to members
of the Board or the CEO.
Member of the Board
of Directors since
Attendance at meetings
of the Board of Directors in 2024
Independent non-executive directors
Christopher Bancroft Burnham
Chairman of the Board since March 2022
27 January 2019
11/11
Lyudmila Galenskaya
18 May 2022
11/11
Thurgood Marshall Jr.
26 May 2021
11/11
J. W. Rayder
25 May 2022
11/11
Zhanna Fokina
26 May 2021
11/11
Andrey Sharonov
27 January 2019
11/11
James Schwab
3 April 2023
11/11
Andrey Yanovsky
25 September 2020
11/11
Non-executive directors
Vadim Geraskin
8 February 2019
11/11
Anastasia Gorbatova
29 June 2023
11/11
Andrey Plugar
29 June 2023
11/11
Olga Filina
15 December 2021
11/11
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FINANCIAL STATEMENT
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Lyudmila Galenskaya
Independent non-
executive director
Year of birth: 1958
H
C
N
Lyudmila Galenskaya started her career at Angarsk Polymer Plant, leading a team
of 150 people. After she moved from Angarsk to Irkutsk, she secured a new job
at Irkutskenergo. Currently, Lyudmila Galenskaya is responsible for ecology and
environmental protection as the Head of the Environmental Safety and Rational
Use of Natural Resources Service at Baikal Energy Company. She supports all
of the company’s environmental activities, engages with government authorities,
and communicates with the entire Group and all its branches. She ensures
that the public is informed about the company’s environmental efforts and
participates in environmental events and discussions. She engages with the media
on environmental matters and actively shares experience with all environmental safety
teams within the Group. She is open to new ideas and participates in developing new
projects and bringing them to life.
Thurgood Marshall Jr.
Independent non-
executive director
Year of birth: 1956
R
H
C
Thurgood Marshall Jr. has extensive experience at the intersection of law, business
and politics. Throughout his career, Thurgood Marshall Jr. has served as a partner
at an international law firm, was a member of boards of listed companies, and held
a wide range of positions in the US Government, including Staff Director and Chief
Counsel to Senator Al Gore, Director of Legislative Affairs and Deputy Counsel
to Vice President Al Gore. Thurgood Marshall Jr. also practiced law in Washington,
DC, where he completed his judicial clerkship. He earned his Bachelor of Arts (BA)
in 1978 and a Juris Doctor (JD) degree in 1981 from the University of Virginia.
Christopher Bancroft Burnham has a distinguished career in government, diplomacy,
banking, and private equity. He is a globally recognised expert on reporting and
transparency, having served as UN Under-Secretary-General for Management, Under
Secretary of State for Management (acting), Assistant Secretary of State for Resource
Management, and CFO of the US Department of State. Christopher Bancroft
Burnham serves as Chairman of the Board of Directors and CEO at Cambridge Global
Capital, which he co-founded. He is the former Vice Chairman and Managing Director
of Deutsche Asset Management. He completed Georgetown’s National Security
Studies Programme and graduated from Washington and Lee University and Harvard
University, where he earned an MPA in 1990.
Christopher
Bancroft Burnham
Chairman of the Board
Independent non-
executive director
Year of birth: 1956
A
J. W. Rayder
Independent non-
executive director
Year of birth: 1960
J. W. Rayder has been involved in or led significant corporate restructuring projects,
financings and M&A deals; he also has a solid track record in negotiating numerous
power and natural gas supply contracts on behalf of his clients. He also advises clients
on a myriad of legislative, regulatory and transactional matters related to energy
markets and federal taxation. He graduated from University of Arkansas (BSBA
in Accounting, JD) and Georgetown University Law Center (LL. M).
R
A
C
Zhanna Fokina
Independent non-
executive director
Year of birth: 1978
Zhanna Fokina has an extensive track record in environmental regulatory and
supervisory authorities. Currently, she leads the environment department
at Krasnoyarsk Aluminium Smelter. Zhanna is in charge of preparing and approving
environmental reports, arranging for environmental monitoring, overseeing
the execution of environmental initiatives, as well as supporting and conducting
government environmental supervision activities. Before joining RUSAL, she worked
at Rosprirodnadzor (Federal Service for Supervision of Natural Resources) and
in the pharmaceutical industry. In 2009, she graduated from Siberian Federal
University.
G
H
N
Andrey Sharonov
Independent non-
executive director
Year of birth: 1964
Andrey Sharonov is the CEO of the National ESG Alliance and member of the Board
of Directors at the Skolkovo Foundation. Since 2002, he has worked as an independent
director and representative on the boards of directors of about 30 public companies. He
was a People’s Deputy of the USSR, Chairman of the State Committee for Youth Affairs
of Russia, a key figure at the Ministry of Economic Development and Trade, a Managing
Director and Chairman of the Board of Directors at Troika Dialog, Deputy Mayor of Moscow
for Economic Policy, Chairman of the Regional Energy Commission, and headed
the Executive Committees of the Moscow Urban Forum and the Open Innovations Forum.
He graduated from Ufa State Aviation Technical University and the Russian Presidential
Academy of Public Administration and holds a PhD in Sociology. Andrey Sharonov also
received a DBA degree from Bocconi University, Milan.
G
A
N
James Schwab
Independent non-
executive director
Year of birth: 1965
James Schwab has 30 years of general management and private equity experience
across a variety of industries, including logistics, the paper and forest industry,
telecommunications, government, etc. He has held board positions at CrimStone
portfolio companies, Western Marketing, Cimcon Finishing, Waples Manufacturing
and Greenscape Landscaping. James Schwab holds a Bachelor’s degree (with
distinction) in Mathematics from the United States Naval Academy and a Master
of Business Administration (MBA) from Harvard Business School.
G
A
N
Committee chair
Corporate Governance Committee
Renumeration Committee
Audit and Risk Committee
G
R
A
H
C
N
Health, Safety and Environment Committee
Compliance Committee
Nominations Committee
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
167
166
CONSOLIDATED REPORT 2024
Andrey Yanovsky
Independent non-
executive director
Year of birth: 1966
Andrey Yanovsky has been the CEO of the European Medical Center and member
of its Board of Directors since 2014. During his career, Andrey Yanovsky was the CEO
of the Coca-Cola Company franchise in Russia, CEO of Nidan Juices (2003–2009), Vice
President for Organisational Development and Personnel at TNK-BP (2009–2013), and
Director for Strategy and Organiational Development at NefteTransService (2013–2014).
Andrey Yanovsky graduated from the Riga Higher Military Political School and received
an MBA in Strategic Management from Kingston University.
R
A
H
Vadim Geraskin
Non-Executive Director
Year of birth: 1968
Vadim Geraskin has extensive experience in government relations at the national
as well as regional level. Since September 2012, as the Deputy CEO for Government
Relations at Basic Element, he has been heavily involved in promoting the company’s
socioeconomic development programmes in the regions where it operates. Vadim
Geraskin led RUSAL’s Natural Monopolies Administration for eight years before
joining Basic Element, and prior to that he headed RUSAL’s Transport and Logistics
Administration and Transport Department. From 1997 to 2000, he served as CEO
of Zarubezhcontract, a company focused on the non-ferrous metals market. From 1993
to 1997, he worked for AluminProduct. Vadim Geraskin graduated from Lomonosov
Moscow State University with a degree in Physics.
R
H
Anastasia Gorbatova
Non-Executive Director
Year of birth: 1979
Anastasia Gorbatova has a remarkable track record with leading law firms, having
acted as an adviser to major Russian and international companies on multi-
billion-dollar M&A, EPC, and corporate finance deals, as well as capital markets
transactions. Anastasia Gorbatova served on the Board of Directors of EN+ GROUP
IPJSC as a non-executive director from 2019 to 2021 and is currently engaged
in private legal practice. She graduated with honours from the International Law
School of the Moscow State Institute of International Relations (MGIMO University).
G
C
Andrey Plugar
Non-Executive Director
Year of birth: 1970
Andrey Plugar has extensive experience in international law and providing legal
advice on M&A transactions. He has led investment (M&A) and legal departments
at major Russian companies with diversified asset portfolios. He currently heads
the investment department at Impulse Group, where he manages investment
projects and is responsible for M&A transactions. Andrey Plugar graduated from
the International Law School of the Moscow State Institute of International Relations
(MGIMO University). He has a diploma of international lawyer with knowledge
of foreign languages (English, French).
C
Olga Filina
Non-Executive Director
Year of birth: 1983
Olga Filina has over 15 years of experience in internal control and compliance
(including senior positions at Deloitte and KPMG). Her primary areas of focus
include complex fraud investigations, corruption investigations (including
financial investigations and audits for compliance with the US Foreign Corrupt
Practices Act (FCPA)), setting up and testing compliance functions, hotline
outsourcing and support, and managing internal audit and internal control
projects.
R
C
GRI 405-1
Composition of the Board
of Directors as at 31.12.2024
Tenure on the Board
3.5
average tenure of the Board
members
Average age of the Board
members
57 years old
average age of the Board
members
8
3
3
2
2
5
3
6
4
Men
Women
up to 2 years
2–5 years
over 5 years
35–45 years
46–55 years old
56–65 years old
over 65 years old
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
169
168
CONSOLIDATED REPORT 2024
Power
industry
Strategic
management
Legal and
corporate
governance
Ethics and
compliance
Risk man-
agement and
audit
Environmental
management
Occupational
health and
safety
Independent non-executive directors
Christopher
Bancroft
Burnham
+
+
+
Lyudmila
Galenskaya
+
Thurgood
Marshall Jr.
+
J. W. Rayder
+
+
+
+
Zhanna Fokina
+
Andrey
Sharonov
+
+
James Schwab
+
Andrey Yanovsky
+
+
Non-executive directors
Vadim Geraskin
+
+
Anastasia
Gorbatova
+
Andrey Plugar
+
+
Olga Filina
+
+
The Company is strongly committed to promoting
a diverse and inclusive workforce and recognises and
embraces the benefits of having a diverse Board
and senior management to enhance the quality
of their performance. The Company has approved
the Board of Directors Diversity Policy, which sets out
the Company’s approach to promoting and maintaining
Board diversity.
The Board of Directors has
the vision and knowledge
to ensure En+ Group’s
leadership in the markets
of presence
The high level of professionalism and
solid track record of the Directors,
coupled with a balanced Board
composition, are intended to enhance
the Board’s performance.
GRI 2-10
When selecting candidates
for nomination to the Board
of Directors, the Nominations
Committee considers objective factors,
regardless of their gender or nationality:
• independence
• cultural and individual diversity
• age
• impeccable reputation
• qualifications
• skills
• relevant personal experience
• knowledge of business specifics
• knowledge of the Company’s core
businesses
• willingness to devote sufficient time
to discharging their duties as a Board
member
All members of the Board of Directors share
the Company’s commitment to equal opportunities,
creating an inclusive environment, and
non-discrimination, and strictly follow En+ Group’s
Corporate Code of Ethics and Policy on Human Rights.
Competencies of members of the Board of Directors
Diversity and equal opportunities
Training and professional development of Board
members
GRI 2-17
New Directors take induction training upon their
appointment, which includes:
∙Meetings with the CEO, the Chairman of the Board
of Directors, the Corporate Secretary, and heads
of corporate business units of the Company
∙Familiarisation with operations, including site visits
to the Group’s production facilities with operational and
management briefings and meetings with Company’s
management teams
∙Access to internal reports and other important
documents
∙Opportunity to ask questions and receive explanations
from the Company’s management team
∙Attending meetings of all Board committees
as observers
∙Mandatory training, including by external advisors,
on matters relating to insider trading, disclosures, and
compliance with sanctions
GRI 2-17
The Corporate Secretary coordinates
the implementation of this programme with
the support of the relevant committees of the Board
of Directors (the Nominations Committee and
the Corporate Governance Committee).
In addition, the Board also organises regular
training sessions for its members, including with
the involvement of external advisors. However, no
special training sessions were held in 2024.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
171
170
CONSOLIDATED REPORT 2024
Board performance evaluation
GRI 2-18
The Board performance is evaluated based
on the results of regular self-assessment, which,
as a rule, is carried out every year, and periodic external
assessment with the involvement of independent
consultants. In the reporting period, the Company
approved the Regulations on Performance Evaluation
of the Board of Directors, which will make it possible
to structure this process and improve its effectiveness.
In 2024, an independent external assessment
of the Board of Directors was performed. The Company
did not perform a separate self-assessment
in the reporting period, since self-assessment
questionnaires were part of the independent external
assessment methodology.
The assessment was carried out by an independent
consultant RosExpert, a Russian consulting company
that has been specialising in the assessment, formation
and development of management teams for more
than 20 years. The evaluation methodology included
individual interviews and benchmarking with relevant
international companies.
Analysis of the results of self-assessment of members
of the Board demonstrated stable and improving
performance of the Board and its committees
compared to the previous year.
Results of independent external assessment of the Board performance
Positive aspects
Areas for further improvement
The Company’s commitment to high standards of corporate
governance
Increasing the Board’s focus on new technologies
Attention to the analysis of production and financial results
of the Company’s activities and risk management, including
compliance with the requirements of regulators and exchanges
Succession planning
Professional development of members of the Board
Active interaction of the Board with executive management
Strengthening the role of the Board in matters
of sustainable development and social responsibility
The Board’s focus in 2024
Area of focus
Key matters considered and decisions adopted
Strategy and risk
• The Board preliminarily approved the Consolidated (Annual) Report
for 2023.
• The Board approved the Company’s business plan for 2025.
Sustainable development
• The Board considered the latest updates on health and safety matters.
• The Board took note of the reports of management and committee chairs
covering, among other things, performance in occupational health, industrial
safety, and environmental protection; the Company’s climate goals;
the status of the environmental and climate strategy (including progress
towards net zero); and the implementation of the biodiversity strategy.
• The Board reviewed environmental upgrades, infrastructure projects, and
digital initiatives.
Succession and leadership
• The Board appointed a new CEO of the Company.
• The Board approved the composition and elected chairpersons
of the committees of the Board of Directors.
Corporate governance
• The Board approved overall levels of D&O (Directors and Officers) liability
insurance.
• The Board approved the results of the assessment of the 2023 KPI
achievement by the CEO.
• The Board approved the CEO’s KPIs for 2024 and 2025.
Financial performance
• The Board approved the consolidated interim and annual financial
statements.
Nature and number of critical issues considered
by the Board of Directors, %
12
34
‘22
‘23
‘24
47
7
12
34
47
7
11
11
66
12
Economic and financial matters
Social and environmental matters
Corporate governance
Other
GRI 2-16
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
173
172
CONSOLIDATED REPORT 2024
Audit and Risk
Committee
Compliance
Committee
Corporate
Governance
Committee
Health,
Safety, and
Environment
Committee
Nominations
Committee
Remuneration
Committee
Independent non-executive directors
Christopher
Bancroft
Burnham
7/7
Lyudmila
Galenskaya
2/2
5/5
1/1
Thurgood
Marshall Jr.
2/2 (C)
5/5
2/2
J. W. Rayder
7/7 (C)
2/2
2/2
Zhanna Fokina
1/1
5/5 (C)
1/1
Andrey
Sharonov
7/7
1/1 (C)
1/1
James Schwab
7/7
1/1
1/1 (C)
Andrey Yanovsky
7/7
5/5
2/2 (C)
Non-executive directors
Vadim Geraskin
5/5
2/2
Anastasia
Gorbatova
2/2
1/1
Andrey Plugar
1/1
Olga Filina
2/2
2/2
Membership in the Board committees and attendance at meetings
7/7 – To the left of the slash — the number of committee meetings attended in 2024,
to the right — the total number of committee meetings
(C) – Committee Chairperson
For more details on each committee, see the
Committees of the Board of Directors section of the
official website of the Company
Committees of the Board of Directors
The compositions of the Committees were reshuffled
after the annual GSM in June 2024.
All Board members attended 100% of meetings
of the Board Committees.
For more details on the powers and duties of the CEO,
see the Charter
As a rule, the CEO is appointed by the Board
for a period of five years unless another term of office
is established by the Board.
Until 22 May 2024, Mikhail Khardikov held the CEO
position. On 23 May 2024, Vladimir Kolmogorov
was appointed as the CEO; at the end of the reporting
period, his term of office was extended until the end
of 2025.
Corporate Secretary
Pursuant to the Regulations on the Corporate
Secretary, the Corporate Secretary of the Company
is responsible for ensuring the Company’s efficient
ongoing communication with shareholders, coordinating
the Company’s activities to protect the rights and
interests of shareholders, and supporting the effective
operation of the Board and Board Committees.
The Corporate Secretary also ensures the Company’s
interaction with regulatory bodies, trading organisers,
the registrar, and other professional participants
in the securities market within the powers vested
in the Corporate Secretary.
Currently, the Company’s Corporate Secretary
is Sergey Makarchuk, who has held this position since 14
November 2019.
Under the Charter, the CEO acts as the sole executive
body of the Company, is responsible for overseeing
the Company’s day-to-day operations and holds
all powers falling outside the exclusive competence
of the GSM and the Board of Directors.
For more details on the Corporate Secretary,
see the company’s website
The Corporate Secretary can be contacted by e-mail:
CS@enplus.ru
Vladimir Kolmogorov
CEO
∙Year of birth: 1956
∙Appointed as the CEO: 23 May 2024
Vladimir Kolmogorov graduated from the Novosibirsk
Electrotechnical Institute and started his career
as a foreman at Krasnoyarsk HPP and then took the position
of senior group foreman at Sayano-Shushenskaya HPP.
In 1989, he was appointed Director of Krasnoyarsk
HPP, which he managed until 1997. He then moved
to RAO UES of Russia, where he held senior positions
in the management of generation facilities in Siberia.
Between 2000 and 2016, he headed such energy
companies as Siberian Energy Company, Irkutskenergo, and
OGK-3, and also served as an advisor to the CEO of Norilsk
Nickel. From 2016 to 2023, Mr. Kolmogorov served
as first deputy CEO of En+ Group for technical policy.
Mr. Kolmogorov is currently the CEO of En+ Group.
Sole executive body — CEO
For more details on Vladimir Kolmogorov,
see the official website of En+ Group
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
175
174
CONSOLIDATED REPORT 2024
Compliance Committee
GRI 2-15
The main task of the Compliance Committee is driving
the build-out of the Group’s compliance management
system. The scope of responsibility of the Compliance
Committee is outlined in the relevant Regulations.
The Compliance Committee reviews its own performance
and reassesses the adequacy of regulatory compliance
procedures and guidelines.
In 2024, the Compliance Committee held two meetings
and reviewed regular Company compliance reports,
as well as compliance with the terms of removal from
OFAC’s SDN List given the current geopolitical situation.
Corporate Governance Committee
The Corporate Governance Committee develops and
monitors the implementation of the corporate governance
system in accordance with statutory requirements, best
practices and business ethics. The powers of the Corporate
Governance Committee are outlined in the relevant
Regulations.
In 2024, the Corporate Governance Committee held
one meeting to consider two issues: the general
levels of the Company’s D&O liability insurance and
the Regulations on Performance Evaluation of the Board
of Directors.
Audit and Risk Committee
En+ Group’s Audit and Risk Committee monitors and
supervises financial statements, the internal control
system, risk management and compliance with regulatory
requirements. The scope of responsibility of the Audit and
Risk Committee is outlined in the relevant Regulations.
GRI 2-5
The Audit and Risk Committee is also responsible
for reviewing the effectiveness of the external audit
process, in conjunction with other Board committees.
The Audit and Risk Committee consists entirely
of independent members of the Board of Directors.
In 2024, the Audit and Risk Committee held seven
meetings. The agenda included financial statements,
internal audit reports, work plan for 2024, external
audit reports, and internal control and risk management
reports.
Health, Safety, and Environment
Committee
The HSE Committee develops and monitors measures
to ensure safety, reduce environmental impact
and protect the health of employees. Its scope
of responsibility is described in detail in the relevant
Regulations.
In 2024, the Health, Safety, and Environment
Committee held five meetings and reviewed regular
HSE reports, the environmental and climate strategy
development updates, the Company’s environmental
risk management status, performance against HSE
KPIs in 2024 and target KPIs for 2025, the biodiversity
strategy update, and En+ Group’s HSE roadmap
for 2025.
Nominations Committee
The Nominations Committee is responsible
for the selection, assessment and succession planning
of members of the Board of Directors and senior
management. In addition, it develops recommendations
to the Board of Directors on Board performance
evaluation. The powers of the Nominations Committee
are outlined in the relevant Regulations.
The Nominations Committee consists entirely
of independent members of the Board of Directors.
In 2024, the Nominations Committee held one meeting
to consider the proposed appointment of Vladimir
Kolmogorov as the Company’s CEO and the Company’s
Regulations on Performance Evaluation of the Board
of Directors.
Audit services
Non-audit services
Total fees paid to the audit firm
Power segment
USD mn¹
0.3
0.2
0.5
RUB mn
31.8
19.2
51.0
share of services type, %
60
40
100
Metals segment
USD mn¹
2.6
1.2
3.8
RUB mn
238.9
111.9
350.8
share of services type, %
68
32
100
En+ Group
USD mn
2.9
1.4
4.3
RUB mn
270.7
131.1
401.8
share of services type, %
67
33
100
Remuneration Committee
The Committee develops an incentive and remuneration
system for members of the Board of Directors and
management, ensuring its compliance with the Company’s
strategic goals. Its scope of responsibility is described
in detail in the relevant Regulations.
The majority of the members of the Remuneration
Committee (3 of 5), including its chairman,
are independent directors.
GRI 2-20
In 2024, the Remuneration Committee met twice to review
the CEO’s KPIs and the remuneration arrangements
for the CEO appointed on 23 May 2024.
Auditor’s remuneration for audit and non-audit services
For the year ended 31 December 2024, the accrued fees for audit and non-audit services provided by the Group’s
external auditor, B1, totalled as follows1:
1
Calculated based on the 2024 average USD/RUB exchange rate of RUB 92.5262 per dollar.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
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176
CONSOLIDATED REPORT 2024
1
All amounts are gross.
2 Calculated based on the EUR/USD exchange rate of 1.08 as at 31 December 2024.
3 Mandatory payments (pension contributions, compulsory medical insurance, etc.) as required by Russian law.
Remuneration report
GRI 2-19
Objectives of the remuneration policy of En+ Group:
∙Attract, remunerate, and retain skilled talent
supporting the achievement of the Company’s
strategic goals
∙Maintain the right balance between the Company’s
short-term operating results and long-term goals
∙Create value for our shareholders, given the risks that
may impact the variable component of remuneration
Remuneration of Board members1
GRI 2-19
Type of remuneration
Amount
Remuneration of Board members (excluding
the Chairman of the Board)
EUR 215,000 (about USD 249,000 thousand)2
Additional remuneration for chairing committees or other
structural units of the Board
EUR 26,000 (about USD 28,000)2
Additional remuneration for membership in each
committee or in other structural units of the Board
EUR 18,000 (about USD 19,000)2
Pension contributions
The Company does not pay any other pension contributions
or retirement benefits, except for the mandatory contributions
to the Pension Fund of the Russian Federation as required
by Russian law
Total remuneration of the Board of Directors in 2024,
excluding social insurance contributions3 amounted
to USD 10.8 million1.
Remuneration of the Board of Directors,
USD mn
6.1
10.0
10.8
‘22
‘23
‘24
Remuneration of Board members
In 2019, the Board considered and approved the base
levels of compensation for Board members.
GRI 2-19, 2-20
The Company’s remuneration system is aimed
at attracting and retaining key management
personnel. The amount of remuneration is determined
Type of additional
remuneration
Approach
Links to metrics
Key changes
during the year
Annual bonus
Encourages focus
on the Group’s
strategic goals
• The bonus is paid for meeting
individual KPIs
• KPIs for the CEO are set
by the Remuneration Committee
and approved by the Board
• KPIs are set at the beginning
of each financial (calendar) year
• KPIs are regularly reviewed and
updated to ensure that they align
with the Group’s goals
Examples:
• Financial performance:
adjusted EBITDA, free cash flow
• HSE and sustainability: lost
time injury frequency rate
(LTIFR), zero environmental
incidents, accidents,
or violations
• Strategy: achievement
of strategic goals and
successful implementation
of development projects
• Other objectives: in accordance
with the manager’s area
of responsibility
No changes
during the year
Additional
payments and
benefits
Optional bonus
payments for achieving
targets other than KPIs
for the relevant year
• Paid for achieving results that
are important for the Company
but not included in KPIs
• Task-specific
No changes
during the year
Remuneration
of other risk
takers
Attracts and retains
highqualified
professionals
• Top managers of En+ Group
subsidiaries are considered risk
takers
• The Group’s executive
remuneration policy applies
• Aligned with the Group’s
executive remuneration
structure
No changes
during the year
Structure of additional payments to key executives
GRI 2-19
by the Company’s internal documents without
the involvement of external stakeholders.
Remuneration of key executives
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
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178
CONSOLIDATED REPORT 2024
1
Calculated based on the EUR/USD exchange rate of 1.08 as at 31 December 2024.
In 2024, the remuneration of key executives, including
the CEO, amounted to USD 7.0 million1, including a base
salary of USD 5.0 million and bonuses of USD 2.0 million.
Remuneration of key executives
Plans for 2025 and
the medium term
The Company intends to continue developing corporate
governance in accordance with high standards,
best practices and the provisions of the Corporate
Governance Code of the Bank of Russia.
6.2
5.4
6.0
5.7
4.7
2.0
‘22
‘23
‘24
Base salary
Bonuses
11.6
11.7
6.7
Information for shareholders and investors
As at 31 December 2024, En+ Group’s share capital
was divided into 638,848,896 ordinary shares with
a par value of USD 0.00007 each.
The Company’s ordinary shares are traded
on the Moscow Exchange’s Level One Quotation List
under the ticker ENPG.
From 3 November 2017, En+ Group ordinary shares
in the form of global depositary receipts (GDRs), each
representing one ordinary share, have been listed
on the London Stock Exchange (LSE) under the ticker
ENPL. Since 3 March 2022, the London Stock Exchange
has suspended trading in securities of most Russian
companies, including En+ Group. On 16 April 2022,
Federal Law No. 114-FZ came into force, requiring
Russian companies to initiate the termination of deposit
agreements for their GDR programmes. The Company
obtained permission to continue trading its GDRs
outside Russia until 7 November 2024, inclusive.
To comply with the Federal Law, on 8 October 2024
the Company sent a request for terminating the listing
and admission of its GDRs to trading. Deposit
agreements for the GDR programmes were valid
until 7 November 2024 inclusive (until their expiration
date). The London Stock Exchange formally suspended
the admission of En+ Group’s GDRs to trading from
08:00 am (London time) on 19 November 2024.
Until 17 April 2020 inclusive, En+ Group GDRs were
traded on the Moscow Exchange (under the ticker
ENPL). The Company then delisted the GDRs from
the Moscow Exchange on 20 April 2020. During
the two-month transition period preceding this date,
two financial instruments of the Company (GDRs and
ordinary shares) continued to be listed on the Moscow
Exchange.
GRI 2-1
All shareholders owning more than 5% of the Company’s share capital and known
to En+ Group are listed below.
En+ Group shareholding structure, as at 31 December 20242
44.95%
21.37%
13.95%
10.55%
9.17%
Mr. Deripaska3
SFO4
Public float
Glencore
Other shareholders5
2 Percentages may not total 100 due to rounding.
3 Directly or indirectly. Exercises voting rights in respect of 35.00% of shares.
4 Shares initially purchased from VTB by an En+ Group subsidiary, as reported by the Company on 6 February and 12 February 2020, and later
(on 26 October 2023) acquired from the En+ Group subsidiary by a Special Financial Organisation (SFO), an orphan entity registered in Russia
and not affiliated with En+ Group. Voting rights in respect of the 14.33% shareholding are held by an independent trustee, while the remaining
voting rights in respect of 7.04% of shares are exercised by the Chairman of the Board at the Board’s direction.
5 Other shareholders holding less than 5.00% each.
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Registrar
Joint Stock Company Interregional Registration Center
(the IRC).
Tel.: +7 (495) 234 4470
Email: info@mrz.ru
www.mrz.ru
Link to the Investor Tools section
of the website
In 2024, En+ Group’s ordinary share price
on the Moscow Exchange was down from RUB 447.4
as at 3 January 2024 to RUB 347.5 as at 30 December
2024. The average daily trading volume during the year
was 385,000 ordinary shares.
Share repurchases
During the reporting period, the Company did not,
either itself or through a person acting in their own
name but on the Company’s behalf, repurchase
any of the Company’s own shares, and did not, either
itself or through a person acting in their own name but
on the Company’s behalf, hold any shares in treasury.
Depositary bank4
Citibank N.A.
Registered address: 388 Greenwich Street, New York,
New York 10013, United States of America.
Tel.: +1 (212) 723 5435
Email: CitiADR@Citi.com
600
500
400
300
200
100
0
6,000
5,000
4,000
3,000
2,000
1,000
0
RUB per share
ths shares
Share price, RUB per share (LHS)
Trading volume, ths shares (RHS)
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Analytical coverage
As at 31 December 2024, three investment banks
provided analytical coverage of En+ Group shares
with a “buy” recommendation. The Investor Relations
Department of En+ Group monitors and regularly
communicates consensus forecasts of analysts
to the senior management of the Company, and
cooperate with brokers to expand analytical coverage.
Credit ratings
Credit ratings are assigned to several legal entities
within the Group. Their levels attest to the moderately
high creditworthiness of companies and the financial
reliability of their debt obligations.
5 Source: Moscow Exchange.
En+ Group’s international securities identification
numbers
Moscow Exchange
Regulation S GDRs (until 17 April 2020
inclusive)
Ordinary shares
Ticker
ENPL
ENPG
ISIN1
US29355E2081
RU000A100K72
London Stock Exchange
Rule 144A GDRs
(until 18 November 2024 inclusive)
Regulation S GDRs
(until 18 November 2024 inclusive)
Ticker
ENPL
ENPL
ISIN1
US29355E1091
US29355E2081
Common Code2
171560667
170465199
CUSIP3
29355E109
29355E208
En+ Group share performance and trading volumes5
1
ISIN — International Securities Identification Number.
2 A Common Code is a nine-digit identification code issued jointly by CEDEL and Euroclear.
3 A Committee on Uniform Security Identification Procedures (CUSIP) number is an identification number assigned to the issue of shares
to facilitate clearing.
4 The depositary agreements in respect of the GDRs were valid until 7 November 2024 inclusive.
Moscow exchange
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Credit ratings of En+ Group companies and their forecasts as at 31 December 2024
Company
Credit rating agency
ACRA
Expert RA
EN+ GROUP IPJSC
A(RU)
Stable
—
Power segment
ILLC EN+ HOLDING
A+(RU)
Stable
—
JSC EN+ GENERATION
(until December 2024 JSC EuroSibEnergo)
A+(RU)
Stable
ruA+
Stable
Metals segment
IPJSC UC RUSAL
A+(RU)
Stable
ruA+
Stable
Bonds
En+ Group companies actively place debt obligations
on the open market to finance current projects and
other business goals. Their bonds are traditionally
popular with investors.
At the end of the reporting period, three issues
of bonds of the Power segment and 14 issues
of bonds of the Metals segment were in circulation.
The Company’s loan portfolio is diversified by currency
and duration.
Dividend policy
The Company’s Regulations on Dividend Policy stipulate
that when determining the amount of dividend
1
Free cash flow, for any period, means the cash flows generated from operating activities less net interest paid, capital expenditures,
restructuring fees, and other costs related to share issuance, adjusted for settlement payments under derivative financial instruments, plus
dividends from associates and joint ventures.
2 The En+ Group Power segment is a segment defined in the Group’s IFRS consolidated statements.
Disclosure
The Company places a particular emphasis on making
relevant information readily available to both
shareholders and analysts simultaneously, in accordance
with applicable provisions of Russian law and disclosure
requirements of the Moscow Exchange.
recommended to the GSM, the Board of Directors may
calculate the dividend amount as follows:
∙One hundred per cent (100%) of dividends received
from RUSAL (as long as the Company remains
a RUSAL shareholder)
∙Seventy-five per cent (75%) of free cash flow1
in the En+ Group Power segment2, but in any event,
at least USD 250 million per year
Dividend payments
On 22 May 2024, the Board of Directors
recommended not to distribute the net profit received
by the Company based on its performance in 2023
and not to distribute dividends on shares for 2023.
On 26 June 2024, the Company’s GSM approved this
decision of the Board of Directors.
Retail Investors Forum
In 2024, for the second year in a row,
En+ Group was a partner of the Retail
Investors Forum organised by the Retail
Investors Association. The Forum
is a unique platform that brings
together retail investors, securities
market regulators, issuers and other
participants in the Russian stock
market for the purpose of professional
discussion.
The Investor Relations
Department can be contacted
at: ir@enplus.ru
Information about En+ Group
is distributed through the following
channels:
Interfax Corporate Information Disclosure Centre
The Company’s website (releases on key events
as well as operating and financial results)
En+ Group channel on the Pulse social network
for investors
Channels in Telegram, OK and VK
Official service for publishing messages on the
website of the Fedresurs registry (EFRSFDYUL)
Retail Investors Association website
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Internal control and risk management
∙A risk committee has been established to coordinate
the actions of the Company’s structural divisions
∙The environmental risk assessment methodology has
been updated
∙Risk Management Policy
∙Anti-bribery and Corruption Policy
∙Corporate Code of Ethics
∙Policy on Conflict of Interest
∙Sanctions Policy
∙Regulations on Risk Management
Key goals for 2024
Goals
Status
Progress made in 2024
Update internal documents
On track
The Risk Management Policy and Regulations on Risk
Management have been updated.
Material topics
∙Corporate governance
Internal control and risk management system
Internal control and risks management at En+
Group is organised in accordance with global best
practice to ensure the identification and systematic
analysis of risks when making decisions to prevent/
minimise them.
The Company’s approaches to risk management and
internal control are set out in the Risk Management
Policy, and the process is outlined in the Regulations
on Risk Management. In 2024, the Policy and
Regulations were updated.
The Group has established a comprehensive internal
control system (ICS) to safeguard its assets, improve
business processes, and ensure compliance with
applicable laws and local regulations throughout
its operations.
Organisational structure of internal control and risk management
GRI 2-12, 2-13, 2-16
The Internal Audit Directorate (IAD) seeks to ensure
that a robust system of internal controls is in place
in the Group through:
∙operational and financial control;
∙compliance control;
∙business process institutionalisation;
∙implementation of ICS enhancement projects.
The risk management system (RMS) is an integral part
of ICS and the corporate governance system as a whole.
RMS ensures compliance with corporate governance
standards and consistent sustainable development
of the Group’s business.
In 2024, a risk committee was established at the level
of the Company’s management to ensure effective risk
management by coordinating the actions of various
structural divisions.
To enhance risk management’s effectiveness, objectives
in this area are integrated into the key performance
indicators (KPIs) of both management and relevant
employees.
Audit and Risk Committee
• Supervision of risk management and internal
control systems
• Control over internal and external audit
• Development of recommendations for the Board
of Directors
Internal Audit Directorate (IAD)
• Independent of Group management
• Methodological support of risk management and internal control
processes at the Group level
• Review and approval of
– the risk map
– mitigation measures
– internal controls
• Performance of comprehensive audits and control reviews
• Preparation of financial statements for the Board of Directors
Board of Directors
• Overall responsibility for maintaining
an appropriate risk management and internal
control system
Risk supervisors
• Consolidation of information on risk management and internal control at the level of business units
Risk owners
• Risk management and ensuring the functioning of internal controls within internal
business processes
CEO
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Risk identification
Defining and describing a risk
Approach to risk management
GRI 2-25
Risk management at the Company is structured
as a continuous cyclical process, which enables En+
Group to promptly identify potential threats that may
affect its operations and take measures to reduce
the adverse impact if they occur.
The Company regularly analyses material factors
and monitors changes in legislation and regulatory
requirements not only in the countries where
it operates, but also at the international level.
In the course of strategic and business planning,
the Company assesses the impact of external and
internal environment factors on the most probable
risks.
The risk management process commences with setting
the Company’s business objectives. The Company
manages risks vertically, with risks to business
processes identified at the individual facility level and
subsequently aggregated at the Company level.
The IAD conducts quarterly monitoring of risk status,
including analysing changes during the reporting
period, the likelihood of their materialisation,
reviewing the ongoing relevance of financial risk
assessments and the progress of mitigation measures,
as well as assessing whether the new risks that emerged
during the quarter were promptly identified.
To foster a robust risk management culture, employees
and managers take training and courses that equip
them with the requisite knowledge and practical skills
to analyse, assess, and manage risks.
Risk management process
Key risks of the Company
The key risks in En+ Group are risks that may prevent
the achievement of the Company’s goals and the creation
of value for shareholders or lead to significant damage.
To prevent/minimise potential damage, the Company
is constantly improving the system for identifying risks
and responding to each risk to the extent corresponding
to the nature and size of the risk.
The extent of risk impact is determined by the amount
of possible financial losses (damage) taking into account
the assessment of the probability of the occurrence
of a risk event (statistical and analytical methods
are used as appropriate).
When managing risks, the Company takes into account
the expectations of stakeholders and assesses
the economic, environmental and social impact based
on sustainable development principles.
Key risks of the Company
In 2024, key risks impact assessment in En+ Group remained unchanged.
Risk assessment
Analysing a risk, its impacts, and
how it may affect the Group’s
operations
For more details on sustainability risk management, see
the relevant Risk Management sections.
Monitoring
Control and improvement of risk
management measures
Developing, implementing, and overseeing
risk management measures
The goal is to reduce/eliminate the likelihood
of risks and their possible negative
impact on the environment, society and
the economy
1
2
4
1
6
4
2
3
Environment risks
Laws and regulations
risks
Market risks
Geopolitical risks
Maintenance
risks
High impact
Low impact
Medium impact
5
11
10
7
8
Safety risks
Laws and
regulations risks
Commercial and
project risks
IT security and resilience risks
Financial risks
9
Health and safety
risks
Climate-related risks
12
3
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Risk
Description
Changes
in 2024
Mitigation measures
External and market risks
1
Environment
Risk of negative impacts stemming
from legislative initiatives and
law enforcement practices
on the Company’s day-to-day
operations. Extension of new legal
requirements to existing facilities.
Tougher sanctions for regulatory
non-compliance and delayed
acquisition of permit.
Risk of sanctions or fines resulting
from soil, water, or air pollution
due to equipment failure or human
error
no change
Robust operation
of the environmental
management system.
Consistent application
of Environmental Policy
provisions.
Environmental auditing and
monitoring of operating
processes.
Engagement with national
and local governments
on developments
in environmental laws
2
Laws and regulations
Impact of legislative changes
or their enforcement, both
domestically in Russia and
internationally, encompassing
antimonopoly and tariff regulations,
licensing and permits, and
environmental and HSE regulation
no change
Monitoring changes
in the regulatory frameworks.
Engagement with
the regulatory authorities
7
Legal risks
Risks of potential losses arising
from the enforcement of judgments
on claims
no change
Legal defence against claims.
Negotiating with claimants
3
Market: supply,
demand and
commodity price
volatility
Business impact of fluctuations
in supply, demand, and/
or commodity prices critical
to the Group’s operations:
• in the Metals segment —
aluminium, alumina, bauxite,
energy (primarily natural gas);
• in the Power segment —
electricity prices (long-term
contracts, day-ahead market).
Risk of a recession in the US/EU and
worldwide
no change
Monitoring risks and
conducting market research,
business planning, and scenario
analysis.
Using derivative financial
instruments for partial hedging
of market risks.
Expanding customer portfolio,
expanding product range
to diversify sales, and boosting
sales in alternative markets.
Promoting highly competitive
low-carbon metal and
electricity
Risk
Description
Changes
in 2024
Mitigation measures
4
Geopolitical
Risks of an adverse business impact
(including commodity security and
supply chain risks) in the event
of new economic restrictions
imposed by foreign governments,
affecting:
• company share price;
• equipment deliveries,
leading to the postponement
of investment projects and/
or increased capital expenditures;
• capital flows and the Group’s
ability to secure foreign currency-
denominated credit facilities;
• sales mix and volumes, leading
to delayed customer payments;
• tougher export controls
for certain types of goods, works
and services, including high-tech;
• limited access to software and
hardware
no change
Monitoring geopolitical
situation and relevant risks.
Developing and implementing
risk mitigation measures:
• elaborating various
scenarios;
• implementing counterparty
due diligence procedures;
• identifying alternative
suppliers, buyers, and
carriers;
• exploring possible
replacements for imported
equipment, seeking
alternative sources
of financing, etc.
Protecting the Company’s
interests through legal means
5
Safety risks
Risks of significant damage
to production facilities and
suspension/termination
of operations of the Company’s
enterprises as a result of terrorist
attacks
no change
Scenario planning.
Development of early
response measures, including
a set of organisational and
practical measures to ensure
the integrity of assets
Business and operational risks
6
Maintenance
Equipment operation risks
involve potential equipment
failures leading to financial losses,
lower productivity, or the halt
of operating facilities, including
situations where repair plans
are not fulfilled (due to failures
or longer lead times for imported
equipment and materials)
no change
Timely maintenance
and repairs/overhauls
of equipment; upgrades
to operating facilities.
Searching for alternative
suppliers of imported
equipment
Risk impact on the Company’s operations
High
Medium
Low
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Risk
Description
Changes
in 2024
Mitigation measures
8
Commercial and
project
Risks of disruptions in supply chains
for goods and raw materials.
Pricing risks: monopolistic pricing
in the transportation market and
regulatory pricing in the electricity
market.
Risks of time or budget overruns
for projects
no change
Negotiating with suppliers
and broadening the pool
of potential suppliers.
Monitoring lead time
and investment contract
performance.
Entering into long-term
contracts with formula pricing
mechanisms.
Making spot purchases subject
to economic viability.
Continuous monitoring
of alternative markets
9
Health and safety
Workforce or contractor injury
due to human error, equipment
failure, or workplace configuration,
given the endemic risks within
the Power and Metals segments
relating to major accident hazards
no change
Managing dedicated units
tasked with
• developing regulatory
documentation,
• conducting staff training,
• and overseeing compliance
with requirements
for complex and hazardous
works.
OHS compliance checks
by regulatory authorities
(Rostechnadzor,
Rospotrebnadzor, etc.)
during both scheduled and
unscheduled inspections
10
IT security and
resilience
Risks of data loss or IT infrastructure
damage stemming from hacker
attacks or malware intrusion.
Risks of malfunctions in automated
information control and
management systems at major
industrial facilities (HPPs, CHPs,
etc.)
no change
Testing the IT infrastructure
for security vulnerabilities.
Using uniform policies and
procedures to ensure security
Risk
Description
Changes
in 2024
Mitigation measures
Financial risks
11
Financial
Financial implications resulting from
market volatility in foreign exchange
rates, interest rates and commodity
prices.
Tax risks
no change
Ongoing monitoring
of the Company’s financial
position.
Ensuring compliance with
the terms of loan agreements
with banks, including regular
monitoring of financial
covenant compliance.
Coordination of tax planning
and oversight of tax
assessments and payments.
Implementing partial hedging
of currency risks, diversifying
the debt portfolio and foreign-
currency deposits.
Continuous monitoring and
adjustment of cash flow
Climate-related risks
12
Transition risks
Financial or reputational impact
due to policy, legal, technology, and
market changes
no change
Constant monitoring of policy,
legal, technology, and market
changes
Physical risks
Negative impacts on operations
stemming from climate change,
including fluctuations in water
supply and temperature variations
no change
Business and scenario planning;
climate research and analysis.
Incorporating climate-
related risks and regional
considerations into R&D and
investment projects
Plans for 2025 and the medium term
∙To approve and apply the updated Risk Management
Policy and Regulations on Risk Managemen.
∙To analyse the efficiency and effectiveness of the risk
management system for 2024.
For more details on climate-related risks, see the Climate Change
and Energy Management section
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Corporate ethics and compliance
АА+
class according to the Anti-Corruption Rating
∙Anti-bribery and Corruption Policy
∙Corporate Code of Ethics
∙Policy on Conflict of Interest
∙Diversity and Equal Opportunities Policy
∙Policy on Human Rights
∙Sanctions Policy
∙Regulation on Internal Investigations
∙Regulation on Insider Information
∙Regulation on the Information Policy
∙Supplier Standards
Material topics
∙Business ethics
Governance
GRI 2-13, 2-24
En+ Group has a compliance system that ensures
compliance with effective laws and improvement
of business processes. The Company improves
the system taking into account regulatory requirements,
regulators’ recommendations, industry standards and
best practices.
The Compliance Committee of the Board of Directors
ensures control and development of the compliance
system. Twice a year, the Board of Directors reviews
the Committee’s report on the implemented and
planned measures, assesses the effectiveness
of the compliance system and anti-corruption
programme management.
Statement from Christopher Burnham,
Chairman of the Board of Directors
SASB EM-MM-510a.1
The Company maintains a zero
tolerance policy for any form
of corruption. The Company
continuously strives to foster
a culture of zero tolerance
for corruption based on high ethical
standards and implements measures
to maintain an environment of trust,
mutual respect, and integrity.
The Board of Directors is responsible
for ensuring compliance with
the Policy on Human Rights. Twice
a year, the Compliance Committee
of the Board of Directors meets
in person to review the report
on implemented and planned
measures, analyse the effectiveness
of compliance system management
in general and the anti-corruption
programme in particular, thus
ensuring the alignment between
the Company’s strategy, risk
management principles, and the Anti-
bribery and Corruption Policy.
GRI 2-23
Ethical business is one of the fundamental principles
of En+ Group. For the purpose of its implementation,
the Group forms a unified corporate culture based
on mutual respect, trust and openness. At the heart
of our business lies a strong commitment to the highest
legal and ethical standards, as formalised in En+ Group’s
Corporate Code of Ethics.
The Code of Corporate Ethics outlines the fundamental
principles and standards of business conduct expected
from both employees and members of the Board
of Directors. It addresses various issues arising
in relationships with colleagues, clients, partners and
government authorities, as well as occupational health,
safety, environmental protection, confidentiality,
reporting and conflict of interest resolution. The Code
of Corporate Ethics is available in both Russian and
English on the Company’s corporate website.
GRI 2-24
En+ Group’s Anti-bribery and Corruption Policy and
the Policy on Conflict of Interest comply with the United
Nations Convention against Corruption and outline
the tasks, roles, responsibilities, and authority of ethics
officers across the Group’s entities.
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Strategy
SASB EM-MM-510a.1
En+ Group consistently improves anti-corruption
practices in accordance with international norms and
effective laws of the countries of operation, including
Federal Law of the Russian Federation No. 273-FZ
dated 25 December 2008 On Combating Corruption,
the UK Bribery Act of 2010, and the US Foreign Corrupt
Practices Act (FCPA).
SASB EM-MM-510a.1
En+ Group maintains
a zero tolerance policy
for any form of corruption
and expects all employees
and counterparties to adhere
to this approach.
GRI 2-15
Particular focus is directed towards conflicts
of interest, as they can increasingly become a catalyst
for corruption offences. All new employees complete
conflict-of-interest declarations. En+ Group employs
an electronic system for the annual collection
of conflict-of-interest declarations. This solution
assists ethics officers in identifying potential conflicts
of interest within the Group’s subsidiaries and
generating reports based on the declarations received.
As an additional precaution, En+ Group conducts
regular public-source reviews of all new hires
to identify potential conflicts of interest. If necessary,
information on conflicts of interest is communicated
to En+ Group’s senior management.
GRI 2-24
En+ Group regularly informs employees about
the Company’s ethical standards and approaches
to combating corruption and conflicts of interest
through:
∙mandatory training once every two years on topics
“Anti-corruption and compliance with anti-
corruption laws at En+ Group” and “En+ Group
corporate ethics”;
∙a section on the corporate intranet portal;
∙dedicated pages on the public websites
of the Group’s entities;
∙E-mail newsletters;
∙information on screensavers;
∙articles in the corporate newspaper;
∙stories on corporate TV;
∙promotional gifts.
The Signal hotline
GRI 2-25, 2-26
En+ Group operates the 24/7 Signal hotline
for its employees and partners. All reports are processed
confidentially and anonymously, which ensures
the protection of whistleblowers. The Company
guarantees no retaliation for reporting incidents
through the hotline. Employees, partners, investors
of the Company may report the following issues:
∙violation of the rights and lawful interests
of employees, counterparties and shareholders
of the Company;
∙workplace incidents involving discrimination
or harassment;
∙violation of HSE requirements;
∙bribery and corruption;
∙embezzlement and misappropriation of assets;
∙conflicts of interest;
∙trade secrets disclosure;
∙employees’ actions contrary to the Code of Corporate
Ethics;
∙other facts that may adversely affect the financial
position or image of En+ Group.
Measures to promote the hotline:
∙sending e-mail messages to employees on existing
ethical principles and details about the Signal hotline;
∙distribution of information materials and promotional
gifts (posters, pocket calendars for 2025 with
the hotline brand);
∙regular publication of articles with sample reports
in the Impulse corporate newspaper;
∙placement of a commercial on the Signal hotline on TV
screens in the Group companies and an advertising
banner in the Impulse corporate newspaper;
∙placement of information about the Signal hotline
on the corporate intranet and public websites
of the Group companies;
∙inclusion of information about the hotline in courses
on corporate ethics and anti-corruption.
Employees who have violated the Code of Corporate
Ethics are assigned a refresher training course
on corporate ethics, and the Company’s stance
on corporate ethics in interactions with colleagues
is clarified. Disciplinary measures are taken against
employees who committed gross violations, though
to and including dismissal.
In 2024, En+ Group created additional communication
channels to report incidents via the hotline:
∙instant messaging system in Telegram;
∙contact form on the corporate website, including
with access through the Company’s QR code.
Actions taken by the Company
in response to reports
via the hotline
A mandatory initial verification with
the involvement of relevant departments
is performed, details are specified by the individual
reporting the incident
Analysing verification findings and developing
recommendations to correct malfunctioning
processes/regulations, followed by monitoring
implementation
Recommendations are reviewed by the Ethics
Committee with the adoption of relevant
resolutions
The management of enterprises is instructed
to eliminate the identified violations of laws and
internal regulations
Compliance with insider
trading laws
As a company whose financial
instruments are traded on the securities
market in Russia, En+ Group is subject
to regulations on the unlawful use
of insider information and market
manipulation. The Board of Directors
has approved the Regulation
on the Information Policy and
the Regulation on Insider Information.
They aim to ensure fair pricing of financial
instruments and protect the interests
of all stakeholders. The Group has
approved the list of insider information
and maintains the insiders’ roster.
It has also configured timely disclosure
procedures.
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Risk management
GRI 205-1
The Company assesses and manages corruption risks
as part of the overall risk management system. To this
end, En+ Group properly controls the origin of sources
of financing, including involvement in doubtful financial
transactions potentially related to the legalisation
of funds of criminal or doubtful origin, and assesses
associated risks.
In order to control employee compliance with internal
regulatory documents as part of minimising risks,
including those related to corruption, the Resource
Protection Directorate performs ongoing work, and
the Directorate for Control and Internal Audit, in turn,
conducts scheduled and unscheduled audits.
Counterparty engagement
GRI 2-23, 14.22.1, SASB EM -MM -510a. 1
The Group’s expectations for responsible business
conduct, quality assurance, and sustainability are set out
in En+ Group’s Supplier Standards, which also include key
anti-corruption requirements.
All contracts with En+ Group’s counterparties include
an anti-corruption clause, and all procurement
participants receive details about the Signal hotline
to submit reports if signs of corruption are identified.
Sanctions compliance
En+ Group seeks to minimise risks associated
with international sanctions and ensure
compliance with legal requirements. For this
purpose, the Company has developed
and is constantly improving a compliance
programme aimed at identifying and
preventing possible violations.
The Board of Directors has approved
the Sanctions Policy, which regulates
the procedure for sanctions compliance
by all company structures. The document
is binding on managers, members
of the Board of Directors and En+ Group
employees and is aimed at reducing
sanctions risks, protecting business
reputation and ensuring business stability.
Analyses
• Planned legal relations in terms of compliance
risks
Checks
• Number of court and arbitration cases involving
a counterparty as a defendant
• Enforcement proceedings against
the counterparty
• Information on corruption offences
• Counterparty personnel, its sufficiency and
qualifications for the performance of work/
provision of services
Reviews
• Ownership structure of a potential counterparty
• List of its affiliates
• Relations of top management, shareholders,
beneficiaries with Russian and foreign officials,
including international officials
• Track record on the market, established business
reputation
Following the assessment, En+ Group
develops and implements measures
to mitigate the identified risks.
As part of this process, En+ Group:
The Company regularly conducts anti-corruption
due diligence of suppliers, including the Know
Your Client procedure: data for each counterparty
are assessed for compliance risks, leading
to the assignment of a risk label to counterparties.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
199
198
CONSOLIDATED REPORT 2024
Statistics for 2024
Metrics and targets
Key goals for 2024
Goals
Status
Progress made in 2024
As part of an independent assessment, confirm the compliance
of En+ Group as a member of the Anti-Corruption Charter
of Russian Business with the requirements of ISO 37001:2016
on combating corruption
Achieved
In 2023, assessment yielded
an AA+ class rating, indicating
a robust level of anti-corruption
GRI 205-3, 206-1, 410-1
1 corruption court case
over the past 4 years
0 violations
of the Code of Corporate Ethics by
members of the Board of Directors
4 reports
on conflicts related to business ethics. All
reported incidents were settled following a
relevant review
484 meetings
of the Ethics Committee were held
100%
of En+ Group’s security staff were briefed
on the Policy on Human Rights
0 lawsuits
for obstruction of competition or violation of
antitrust laws
0 cases
of terminating contracts with business
partners following the identification of
corruption violations
GRI 2-25, 2-26
In 2024, the Directorate for Control and Internal Audit
assessed the operation of the Signal hotline and
concluded that the organisation of the hotline complied
with the basic principles and best corporate governance
practices. According to the audit, all relevant reports
have been considered, they are effectively processed,
and the conclusions and decisions made are logical and
adequate.
Employee reports received via the Signal
hotline, quantity
303
95
‘22
‘23
‘24
273
101
328
76
398
374
404
Metals segment
Power segment
51
19
10
11
3
6
Labour
relations
Counterparty
engagement
HSE issues
Asset protection
Conflict of
interest
Other
Categories of relevant reports received
via the Signal hotline, 2024, %
In 2024, 404 employee reports were received
via the Signal hotline, which is 8% more than
in the previous reporting period. The rise in reports
to the Signal hotline is attributed to the ongoing
awareness drive to communicate its purpose and
promote the hotline as a complementary tool within
a wider strategy of raising awareness of issues.
The increase can also be explained by a larger number
of communication channels now available to employees.
GRI 14.10.4
Representatives of local communities and indigenous
minorities in the regions of the Company’s operations
can submit complaints or feedback on relevant issues
via the hotline. En+ Group processes such reports
Plans for 2025 and the medium term
∙To approve the new version of the Anti-bribery
and Corruption Policy and the Policy on Conflict
of Interest.
∙To develop and approve the Corruption Risk
Assessment Methodology and perform a detailed
assessment of corruption risks.
as part of a single hotline procedure. In 2024, En+ Group
didn’t record reports from representatives of local
communities.
∙To engage an independent external expert
to re-assess the anti-corruption compliance
programme.
36
conflicts of interest were resolved
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
201
200
CONSOLIDATED REPORT 2024
Supply chain management
80.2%
share of purchases from local suppliers
100%
of suppliers operate with no actual or potential
negative social impact
∙Procurement Regulations
∙Regulations on the Functioning of Procurement
Collegial Bodies
∙Customer Liaison Regulations
∙Supplier Standards
Material topics
∙Sustainable supply chain
Governance
GRI 3-3, 2-13
Supply chain sustainability is the cornerstone of En+
Group’s stability. In accordance with the Supplier
Standards, the Company requires suppliers to comply
with laws, maintain product or service quality control,
conduct business ethically, and ensure human rights
observance.
Strategy
GRI 2-6
The Power segment continued its efforts on import
substitution of key goods and materials, and
on ensuring stable supplies from overseas, and
collaborated mainly with suppliers from Russia,
Kazakhstan and China. The Metals segment is still
predominantly sourcing from Russia and China;
some of its counterparties are located in Kazakhstan,
the Caribbean, Africa and Europe.
The bulk of En+ Group purchases consists of mineral
raw materials (including alumina for the Metals
segment), fuel and lubricants, machinery,
as well as equipment maintenance and various types
of work (engineering, commissioning, etc.).
• Procurement centres of divisions
Responsibility for procurement
processes within the Company
Requirements for suppliers and contractors
GRI 308-1, 308-2, 414-1, 414-2
To form and maintain a stable supply chain, En+
Group carefully selects counterparties, assesses them
against a number of criteria, including compliance
with the principles of sustainable development.
The Company screens both potential and existing
suppliers.
For more details on ethical business requirements for
contractors and available mechanisms for reporting
violations, see the Corporate Ethics and Compliance
section
GRI 308-1,414-1, 414-2
Methods to verify suppliers within the Metals and Power segments
Metals segment
Power segment
Potential and new
suppliers
• Certification assessment
• Reviewing documentation,
transactions, and publicly available
materials on potential counterparties
• Voluntary ESG accreditation
• Vendor and contractor audits, including economic
security measures and due diligence reviews
• Participation in industry exhibitions showcasing
manufacturers and developers
• Assessment of compliance with the requirements
of Federal Law 223-FZ
• Assessment of compliance with the experience and
qualification requirements set forth in the Power
segment’s internal regulations
• Technical audits
• Assessment of business ethics and reputation
of suppliers and contractors
Current suppliers
• Routine inspections and audits
to check compliance with
relevant requirements, including
occupational health and safety
standards (included in contracts).
• Supplier rating assessment
• Use of penalties for non-compliance
• Vendor and contractor audits, including economic
security measures and due diligence reviews
• Analysis of performance indicators
• Audits to check compliance with occupational health
and safety standards
• Verification of compliance with waste disposal
requirement
Legend: Sustainable development criteria
En+ Group routinely monitors the conformity
of suppliers’ and contractors’ certifications
to international standards (ISO 14001, ISO 45001,
etc.). The Company also certifies its suppliers according
to the requirements of IATF 16949 и GOST R 58139
and applies the advanced product quality planning
approach (component manufacturing approval process).
The Metals segment is actively pursuing initiatives
to establish a sustainable supply chain as part
of its Sustainable Development Strategy until
2035. The Strategy seeks to create a sustainable
and ethical supply chain for raw materials, finished
products, goods, and services based on its own
system of accreditation, assessment and verification
of compliance with ESG criteria, covering 80%
of suppliers by 2025 (100% by 2035).
GRI 2-13
• En+ Trading House
Power segment
Metals segment
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
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202
CONSOLIDATED REPORT 2024
Risk management
En+ Group has adopted a systematic approach
to identify and evaluate supply chain risks on a regular
basis. Risks identified in 2024 include:
∙risks of disruptions in supply chains for goods and
raw materials;
∙risks of monopolistic pricing in the transportation
market;
∙risks of time or budget overruns for projects;
∙risks of limited supplier selection
due to the insufficient number of suppliers
in the region.
To manage these risks and reduce the likelihood
of violations and deviations, En+ Group conducts
internal and external supplier audits at all stages
of engagement with counterparties. Should
the Company identify any violations, it retains the right
to terminate its business relationship with such
suppliers.
GRI 2-24, 407-1, 408-1, 409-1
To minimise the risks of human rights violations,
En+ Group takes a responsible approach to supply
chain management throughout the value creation
process. En+ Group does not engage suppliers whose
operations:
∙violate the rights to freedom of association and
collective bargaining;
∙involve a high risk of child or forced labour.
For more details on human rights, see the Employees
section
Metrics and targets
Key goals for 2024
Goals
Status
Progress made in 2024
Streamlining supplier assessment and
supplier claims processes in the Power
segment through automation
On track
• Consolidation of procurements
with an extended planning horizon,
facilitation of joint procurement among
customers;
• Survey of contractors to improve
procurement
Creating a sustainable and ethical
supply chain for raw materials, finished
products, goods, and services based
on its own system of accreditation,
assessment and verification
of compliance with ESG criteria, covering
80% of suppliers by 2025 (100%
by 2035)
On track
The Metals segment launched Supplier
Online Account, an information
and analytical system enabling
suppliers to undergo voluntary ESG
accreditation. In addition, for the purpose
of a comprehensive assessment
of counterparties in terms of ESG criteria
and quality, the Metals segment held
a contest for the best supplier for the first
time and awarded three winners
GRI 308-2
In 2024, internal and external audits of the Company’s
suppliers revealed no material actual or potential
impact based on environmental and social criteria,
therefore, no cases of termination of contracts on such
grounds were recorded and no corrective measures
were required.
GRI 2-6, 203-2, 204-1
In an effort to bolster economic development within
its regions of operation, En+ Group gives priority
to procurement from local suppliers and counterparties
registered in the country of the Company’s operations,
where possible. In 2024, En+ Group’s procurement from
local suppliers accounted for 80.2%, up by 18.1 p.p.
compared to the previous reporting year due to the
change in Power segment’s approach to identifying
local suppliers. All suppliers registered in Russia are
considered local suppliers.
In 2024, the Company maintained its support
for small- and medium-sized enterprises by offering
various benefits, such as extending the grace period
(up to seven days) for payments and simplifying
Plans for 2025 and
the medium term
∙To approve an updated version of the Business
Partner Code, which will stipulate stricter sustainability
requirements for suppliers.
∙To continue to extend the qualification of raw and
other materials to the divisions and directorates
of the Metals segment.
∙To complete the automation of supplier qualification
and rating processes based on the existing database.
∙To consolidate works procurement with an extended
planning horizon.
∙To optimise business processes and reduce
the duration of the procurement cycle for goods, works
and services.
the bidding process for tenders and auctions. Small-
and medium-sized enterprises accounted for 27.1%
of the procurement spend in the reporting period.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
205
204
CONSOLIDATED REPORT 2024
∙Quality Policy
Responsible business practices
Quality management
84
number of customers’ quality-related compliants
Material topics
∙Economic performance
GRI 3-3
En+ Group’s priority is to provide customers with
products and services of appropriate quality
while maintaining maximum production efficiency.
The Company’s main principles and approaches in this
GRI 3-3
All finished products of the Metals segment undergo
mandatory labelling in accordance with specifications,
state standards, and product data sheets. The Company’s
facilities are annually assessed for compliance with quality
standards by independent experts.
In the reporting year, several facilities were certified
to validate their compliance with international
standards ISO 9001 and IATF 16949 and national
standard GOST R 58139.
Facility certification
IS0 9001
QMS principal standard
GOST R 58139
Standard for the automotive
industry
IATF 16949
Standard for the automotive
industry
25 facilities (Alumina Division, Aluminium
Division, Downstream Division, and New Projects
Directorate)
7 aluminium smelters
2 aluminium smelters
area are set out in its Quality Policy. In the reporting
period, the Power segment continued to pay special
attention to upgrading uninterrupted power supply
equipment.
GRI 3-3
En+ Group runs focus programmes to enhance
the quality of its products and services based
on the analysis of customer satisfaction and external
assessments of the Company as a supplier. En+ Group
improves its own processes and applies the Zero
Defects strategy to its procurement procedures:
every shipment of raw and other materials must meet
regulatory and contractual requirements.
In the reporting year, the Company received 84 consumer
complaints about substandard product or service quality.
These complaints were investigated, and the necessary
measures were taken.
Number of customers’ quality-related
complaints
‘22
‘23
‘24
84
complaints
in 2024
46
95
84
Plans for 2025 and the medium term
∙To continue to develop and improve online services
for individual and business clients.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
207
206
CONSOLIDATED REPORT 2024
Digital transformation
∙Digital Transformation Strategy
Key goals for 2024
Goals
Status
Progress made in 2024
Create a digital project committee
Achieved
The committee became operational
Implement end-to-end automation
projects as planned
On track
Measures were taken in accordance with
the schedule
Launch the Digital Project Office project
Achieved
A system using modern project
management technologies
was implemented
Build a data platform and ensure
the operation of automated data filling
mechanisms
On track
Measures were taken in accordance with
the schedule
Establish a consolidated digital ESG
data loop within the Metals segment
with subsequent integration of 100%
of ESG metrics into a single information
platform enabling big data-driven
decision making on environmental, social,
and corporate governance aspects
On track
• Data automation for sustainability
reports based on annual overviews
was completed
• Monthly data collection
was implemented for certain
environmental metrics
• The first suppliers completed ESG
accreditation in the Supplier’s Personal
Account
Material topics
∙Economic performance
∙The Power segment approved its unified digital
transformation strategy
∙An industrial artificial intelligence department
was created to introduce AI technologies
at production facilities
En+ Group implements automation and digitalisation
projects in various areas. The digital solutions being
developed and implemented are designed to both
improve the efficiency and reliability of production
processes and to support the Company’s sustainable
development: reduce its environmental impact, ensure
GRI 2-13, 3-3
The Company actively implements digital products and
services, automates business processes, uses big data,
artificial intelligence, and machine learning to perform
operational tasks.
The division responsible for these tasks is the Digital
Transformation Directorate headed by the Deputy CEO
for Information Technology and Digital Transformation.
The Directorate implements the Group’s digitalisation
strategy, introduces innovative technologies, and
manages selected digital projects.
In general, En+ Group retained its digitalisation and
automation management structure in 2024 and
continued to develop:
∙its Artificial Intelligence and Big Data and Industry
4.0 laboratories within the Digital Transformation
Directorate
∙a unified automation and digitalisation management
company.
Within the Metals segment, the Information Technology
Directorate (ITD) oversees digitalisation aspects,
and cross-functional teams are created to drive
the development of new digital solutions.
The Group annually expands and strengthens its own
IT competencies, which helps it maintain flexibility
in developing digital products and stay independent
from external influences.
The Company has updated the Power segment’s
digitalisation strategy.
Transfer of the Company’s data
to cloud infrastructure
Automation of routine processes and
robotic automation of production
facilities
Use of drones to inspect hydraulic
structures
Mass training of En+ Group’s
employees in business analytics tools
and data management
Development of AI assistants
to automate business processes
of the Company and its clients
Creation of a modern digital
multiservice company based on En+
Telecom
Automation and digitalisation
OHS supervision, develop educational platforms,
simplify dealings with suppliers, optimise supply
chains, etc.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
209
208
CONSOLIDATED REPORT 2024
Predictive analytics
The automated predictive analytics system
(APAS) has helped prevent
24 emergency shutdowns of equipment
since its launch: thanks to the system,
specialists detected problems early and
promptly carried out repairs.
Artificial intelligence
Machine vision-based monitoring will
be implemented at electrolysis facilities
of Krasnoyarsk, Bratsk, Novokuznetsk,
Irkutsk, and Volgograd Aluminium Smelters
before 2027. The investments will amount
to RUB 1.6 billion (USD 17 million).
Thanks to the Company’s proprietary
technology, sealing failures at electrolysers
may be detected 24/7, which further improves
the environmental performance and safety
of the process.
Substitution of imported automation systems
In the reporting year, En+ Group decided
to phase out the imports of automated
process control systems (APCS) for aluminium
smelters and alumina refineries.
This programme estimated at RUB 20 billion
(USD 216 million) is expected to be completed
by 2031. New Russian controllers and software
were successfully tested at a pilot site
of Krasnoyarsk Aluminium Smelter.
The replacement process
is already underway
at 26
process sections
In 2024, the APAS was deployed at 12 out
of 18 hydraulic units of Bratsk HPP. The APAS
analyses data on the parameters and
operational conditions of hydraulic units
through machine learning algorithms. Based
on this data, the system predicts equipment
malfunctions in advance and promptly alerts
plant staff. The technology helps determine
the most suitable timing for maintenance,
thereby enhancing operational safety and
efficiency.
Electronic document management
The trend towards paperless document
management continued in 2024: En+
Group’s companies introduced HR electronic
document management systems, electronic
signing of contracts and source accounting
documents, and significantly expanded
the number of users using electronic
signatures.
In 2024, the Group continued to implement information
technology-related educational projects to attract
young specialists to the team of professionals engaged
in the software development, information security, data
analytics, and machine learning, development of server
infrastructure.
The Company has been conducting an extensive
outreach programme among school and university
students interested in digital technologies. Under this
programme, the Company:
∙Holds competitions and festivals devoted to robotics
and information technology
∙Opens and maintains the operation of En+ Group
Multilab competency building centres
∙Implements the IT Academy educational project
in partnership with Russia’s leading universities
∙Participates in the Professionalitet federal project
for IT students
∙Annually runs the Energy Lab acceleration
programme and implements the scholarship project.
Training programmes for young specialists are based
on real business cases and research tasks, which allows
participants to gain not only specialised competencies
and skills, but also knowledge about the specifics
of operation of electric power facilities.
∙To equip generating facilities with IoT1 components.
∙To launch an AI-based tool for personnel recruitment
and assessment.
∙To implement an industrial safety ecosystem.
∙To develop such new competencies as video analytics
and Industrial IoT.
∙To effect the transition from standard system
management to service management.
∙To complete the unification of automated business
processes for capital projects.
∙To assess the effectiveness of the End-to-End
Automation programme.
∙To continue the implementation of Industry 4.0, 3D2
projects, augmented reality technologies.
Plans for 2025 and
the medium term
1
Internet of Things, a system of interconnected devices that can collect and transmit data over a wireless network without human input.
2 Dust, Dull, Dangerous, a term for dirty, dangerous, and heavy work at operating facilities.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
211
210
CONSOLIDATED REPORT 2024
GRI 2-13, 3-3
Cybersecurity is critical for maintaining the seamless
operation of all the Company’s business processes, so
En+ Group devotes significant resources and efforts
to protecting its IT infrastructure and ensuring prompt
detection and elimination of threats and incidents.
The Company’s efforts in this area are aligned with
its Information Security Policy. The main document
governing personal data protection is the Privacy Policy.
The Company’s cybersecurity management system
ensures the confidentiality, safety, and availability
of data. The incident response team is responsible
for the system’s operation. This team is tasked with
detecting and addressing threats, including external
attack attempts and implementation of malicious
software, and unauthorised user activities. They also
oversee the prompt elimination of vulnerabilities
in the Company’s infrastructure.
The incident response team compiles monthly reports
for the Company’s management detailing the current
cybersecurity status and the trends in identified and
resolved threats and incidents. In addition, annual
audits assess the effectiveness of cybersecurity
processes. In 2024, scheduled audits were performed
at several Group entities, and tests were conducted
on various information systems and services within
the Company.
Cybersecurity
GRI 418-1, 3.18.
0 instances
of confidentiality breaches, unauthorised transfer
of personal data, or complaints from customers
and partners regarding data leakage or breaches
of confidentiality and privacy
0 incidents
leading to a malfunction or disruption
of the Company’s critical information
infrastructure facilities
∙Information Security Policy
∙Privacy Policy
Key goals for 2024
Goals
Status
Progress made in 2024
Deploy and operationalise a number
of additional cybersecurity systems
On track
Measures were taken in accordance
with the schedule
Implement a pilot project to test
a master data management system
On track
Measures were taken in accordance
with the schedule
Finalise employee training courses
to align them with the current
cybersecurity standards and
requirements
On track
Measures were taken in accordance
with the schedule
Material topics
∙Business ethics
SASB IF-EU-550a.1
The Group promptly addresses and mitigates the effect
of employee breaches of cybersecurity standards. En+
Group investigates all detected violations in accordance
with the procedure for planning and implementing
appropriate measures. During these investigations,
designated individuals document the facts and causes
of the violations and enforce technical and disciplinary
measures.
To prevent incidents, En+ Group conducts regular
internal training sessions for employees using
the Corporate University internet portal to educate
them on the rules of operating computers. Additionally,
throughout the year, all employees receive training
materials via corporate email, which contain informative
fact sheets and examples of phishing emails. In 2024,
18 cybersecurity training events were held for managers
of the Metals segment.
Plans for 2025 and
the medium term
∙To improve vulnerability management processes.
∙To improve the information and analytical support
for cybersecurity management, in particular update
and develop the Company’s internal regulatory
framework in this area.
∙To increase the involvement of contractors in ensuring
the security of the Company’s information assets.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
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212
CONSOLIDATED REPORT 2024
RUB 2.3 bn
(USD 24.8 mn) allocated to
R&D projects in 2024
∙Patent Policy
∙R&D Policy
∙Energy Science and Technology Policy
∙Regulation on the Department of Energy Science and
Technology
∙Regulation on the Scientific and Technical Council
∙R&D Management Regulation
Key goals for 2024
Goals
Status
Progress made in 2024
Broaden the scope of partnerships and engage new scientific
collaborators in R&D projects
Achieved
• Collaboration with more than
40 scientific and research
organisations was established
• A pool of 49 external experts
was formed
Continue to explore new areas for the Company, including CO2
capture and storage (CCS), energy storage, and the development
and production of cathode materials for batteries
On track
• In 2024, the Company’s
scientific and technical
activities focused on solar
power and energy storage
facilities
Create a system for setting scientific and technical tasks
in the Power segment
Achieved
• Priority areas of scientific
and technical activities were
determined, relevant business
needs were identified, and
a pool of projects was formed
Approve the Company’s updated science and technology policy
aligned with the emerging trends in strategic development
Achieved
• The Energy Science
and Technology Policy
was approved
Material topics
∙Innovation management
∙Economic performance
GRI 3-3
R&D management is focused on the development
of renewable energy and other strategically important
areas.
GRI 3-3, 2-13
In the Power segment, the Scientific and Technical
Council oversees the management of R&D and related
processes. The Department of Energy Science and
Technology helps implement R&D projects. This
Department has been created to carry out the single
scientific and technical policy of the segment, monitor
and coordinate its R&D activities.
The Technical Directorate is responsible for overseeing
innovative projects within the Metals segment.
The segment’s operations in this area are governed
by the Technical Policy that is annually revised
by the Scientific and Technical Council, a collective
body that is also responsible for decisions around
innovation development and deployment. Main
developments are handled by the following research
centres and institutes of the segment: Institute of Light
Materials and Technologies (ILM&T), Russian Aluminium
and Magnesium Institute (VAMI), Siberian Scientific
Research and Design Institute of Aluminium and
Electrode Industry (SibVAMI), and the Engineering and
Technology Centre (RUSAL ETC).
GRI 3-3
In research and development, En+ Group leverages
its internal expertise while also partnering with
leading scientific and educational organisations
and major manufacturers. In 2024, En+ Group
finalised and approved the single R&D Management
Regulation to optimise processes and accelerate
the implementation of scientific projects.
In the reporting year, En+ Group spent RUB 2.3 billion
(USD 24.8 million) on R&D projects. The Metals
segment accounted for 86% of these expenditures.
R&D expenses within the Power segment increased
by 238% year-on-year in 2024, from RUB 90 mn
to RUB 304 mn (to USD 3 mn), due to the launch
of a number of new projects.
Innovation management
Development of sodium-ion
battery cell prototypes
The Company intends to develop and
scale up technologies for obtaining
active materials and creating prototypes
of sodium-ion battery cells on the basis
of these materials.
Sodium-ion batteries are easier
to produce and are more cost-
effective than lithium-ion batteries,
which warrants their large-scale
application, including as a power source
for electric vehicles or for storing power
for power grids.
∙To continue to advance research projects in clean
energy, including hydrogen and solar energy, energy
storage and other.
Plans for 2025 and
the medium term
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
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214
CONSOLIDATED REPORT 2024
RUB 11.9 bn
(USD 128.5 mn) — Total economic benefit from the
implementation of the business system projects and
suggestions
Over 12,000
employees signed in to the Breakthrough+Kaizen
application since its launch
∙Methodology for Assessing the Level of the Business
System Development
∙Regulation on Operational Development Project
Management
∙Regulation on Kaizen of the Year and Project
of the Year Competitions
∙Regulation on Kaizen Suggestion Submission and
Implementation
Business system
Key goals for 2024
Goals
Status
Progress made in 2024
Improve the Breakthrough+Kaizen mobile application
Achieved
• The functionality of the application
was improved. The following
functions were added: approval
history, option of changing
the implementer and notifying
authors, search by number and
keyword
Prepare and hold the Kaizen of the Year 2024 and Project
of the Year 2024 competitions
Achieved
Both competitions were held, and
the best projects were selected
Continue with the business system training programme for new
employees with the aim of achieving 100% of trained workforce
Achieved
• 100% of employees were trained
• A distance learning course for new
employees was developed
Introduce a mandatory business system training programme
at the operational site tailored for engineers and technical staff
of various proficiency levels
Achieved
The programme was introduced,
and 204 people were trained under
the programme
Material topics
∙Innovation management
∙Economic performance
∙Employee management and engagement
GRI 3-3
The Group welcomes employees’ ideas about
process improvements, then refines the most useful
and effective initiatives and introduces them into
production.
In 2024, the Regulation on the Business System
250 Talent Pool Assessment and Development
Programme was developed and approved. In addition,
Breakthrough+Kaizen mobile application
The application allows each employee
of the Company to submit not only Kaizen
suggestions, but also initiatives for operational
development, development of the business
system, theory of inventive problem solving,
technological advancement, or improvement
of product quality.
In 2024, 6,673 Kaizen suggestions were
submitted through the mobile application and
the portal, which is 161% more than in 2023.
79% of all the suggestions were implemented
in the reporting period
In 2024, En+ Group held the Project of the Year and
Kaizen of the Year competitions covering 55 projects
from 191 participants. The total economic benefit from
the projects participating in the competition reached
almost RUB 180 million (USD 2 million).
Winning projects
A comprehensive optimisation project helped
reduce the time of retrofitting hydraulic unit No. 8
at Irkutsk HPP from 350 to 330 days
A project to standardise pumping equipment
operation and maintenance processes
at the turbine shop of CHP-9 helped increase
the mean time before failure by 50% and decrease
the number of emergency repairs by 63%
The economic benefit from a project to increase
the yield of coarse concentrate of export coal
during processing amounted to RUB 37.4 million
In the reporting period, the Business System
Development Directorate developed a new distance
learning course on the business system. It is assigned
to all new hires as part of their onboarding programme.
Mandatory practical training for engineers and technical
specialists was also introduced. In total, 204 people
were trained under this programme over the year.
the Company updated the documents that govern
project management and implementation of Kaizen
suggestions.
In 2024, the overall economic impact from
business system projects reached RUB 11.9 billion
(USD 128.5 million), and the Power segment accounted
for 4.7% of this amount.
Plans for 2025 and
the medium term
∙To implement business system development
projects with the economic benefit of at least
RUB 1,050 million
∙To ensure that all employees participating
in the annual bonus scheme launch personal business
system development projects
∙To develop a course programme and provide
business system training for senior management
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
217
216
CONSOLIDATED REPORT 2024
Allow
03
Financial
statement
220
Consolidated Financial
Statements
Consolidated Financial
Statements
EN+ GROUP IPJSC
Consolidated Financial Statements
for the year ended 31 December 2024
Contents
Statement of Management’s Responsibilities..............................................................................................221
Independent Auditor’s Report .....................................................................................................................222
Consolidated Statement of Profit or Loss and Other Comprehensive Income ............................................227
Consolidated Statement of Financial Position.............................................................................................229
Consolidated Statement of Cash Flows ........................................................................................................230
Consolidated Statement of Changes in Equity..............................................................................................232
Notes to the Consolidated Financial Statements............................................................................................233
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
221
220
CONSOLIDATED REPORT 2024
NEW CHALLENGES
NEW SOLUTIONS
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance
in our audit of the consolidated financial statements of the current period. In addition to the
matters described in the Material uncertainty related to going concern section, we have
determined the matter described below to be the key audit matter to be communicated in our
report. These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters. For the matter below, our description of how our audit addressed the
matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor's responsibilities for the audit of the
consolidated financial statements section of our report, including in relation to this matter.
Accordingly, our audit included the performance of procedures designed to respond to our
assessment of the risks of material misstatement of the consolidated financial statements.
The results of our audit procedures, including the procedures performed to address the matter
below, provide the basis for our audit opinion on the accompanying consolidated financial
statements.
Key audit matter
How our audit addressed the key audit matter
Impairment analysis of property, plant and equipment
Impairment analysis of property, plant and
equipment was a key audit matter due to the
significance of property, plant and equipment
balance in the consolidated financial statements,
high subjectivity of judgments and estimates
underlying the impairment analysis used by
management.
Current global market conditions, including
fluctuations in LME aluminum prices, market
premiums and alumina purchase prices together with
their long-term forecasts, fluctuations of coal sale
prices, increase of logistics costs may indicate that
some cash generating units (CGU) may be subject to
either impairment loss or full or partial reversal of
previously recognized impairment.
Evaluation of the recoverable amount of fixed assets
is based on the higher of the fair value less cost to
sell and value in use. As of the reporting date
management makes an assessment of value-in-use
based on the discounted cash flow models.
Information on the results of the impairment testing
is provided in Note 11 (c) to the consolidated
financial statements.
We analyzed management's assessment of whether
indicators for potential impairment or reversal of
impairment previously recorded exist. For the
impairment tests performed our procedures
included, among others:
►
Comparison of key assumptions such as
production volumes, forecasted aluminum sales
prices, forecasted coal sales prices and volumes,
forecasted alumina and bauxites purchase
prices, forecasted costs inflation, forecasted
currency exchange rates, discount rates, used in
the Group's financial model with published
macroeconomic indicators and forecast data.
►
Assessing the historical accuracy of
management's budgets and forecasts by
comparing them to actual performance.
►
Checking the arithmetic accuracy of the
impairment model and assessing a sensitivity
analysis of value-in-use to changes in key
assumptions.
With assistance of our internal valuation experts we
analyzed the Group's management calculations of
the recoverable amount of fixed assets.
We assessed the impairment related disclosures in
the consolidated financial statements, including the
key assumptions used and the sensitivity of the
consolidated financial statements to these
assumptions.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
223
222
CONSOLIDATED REPORT 2024
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
225
224
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the year ended 31 December 2024
The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the notes
to, and forming part of, the consolidated financial statements set out on pages 233 to 295.
Year ended 31 December
2024
2023
Note
USD million
USD million
Revenues
5
14,649
14,648
Cost of sales
(10,216)
(11,366)
Gross profit
4,433
3,282
Distribution expenses
(922)
(844)
General and administrative expenses
(970)
(874)
Impairment of non-current assets
11, 12
(661)
(366)
Other operating expenses, net
6
(374)
(168)
Results from operating activities
1,506
1,030
Share of profits of associates and joint ventures
13
563
752
Finance income
8
444
120
Finance costs
8
(944)
(1,026)
Profit before tax
1,569
876
Income tax expense
10
(221)
(160)
Profit for the year
1,348
716
Attributable to:
Shareholders of the Parent Company
996
596
Non-controlling interests
16(f)
352
120
Profit for the year
1,348
716
Earnings per share
Basic and diluted earnings per share (USD)
9
1.983
1.186
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
227
226
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the year ended 31 December 2024 (continued)
The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the notes
to, and forming part of, the consolidated financial statements set out on pages 233 to 295.
Year ended 31 December
2024
2023
Note
USD million
USD million
Profit for the year
1,348
716
Other comprehensive (loss)/income
Items that will never be reclassified subsequently to
profit or loss
Actuarial (loss) gain on post-retirement benefit plans
18(b)
(8)
8
Revaluation of hydro assets
11(e)
389
−
Тахation on revaluation of hydro assets
10
(244)
−
137
8
Items that are or may be reclassified subsequently to
profit or loss
Foreign currency translation differences on foreign
subsidiaries
(285)
(861)
Foreign currency translation differences for equity-accounted
investees
13
(500)
(1,011)
(785)
(1,872)
Other comprehensive (loss)/income for the year, net of tax
(648)
(1,864)
Total comprehensive (loss)/income for the year
700
(1,148)
Attributable to:
Shareholders of the Parent Company
622
(555)
Non-controlling interests
16(f)
78
(593)
Total comprehensive (loss)/income for the year
700
(1,148)
EN+ GROUP IPJSC
Consolidated Statement of Financial Position
as at 31 December 2024
The consolidated statement of financial position is to be read in conjunction with the notes to, and forming part of,
the consolidated financial statements set out on pages 233 to 295.
31 December
2024
2023
Note
USD million
USD million
Assets
Non-current assets
Property, plant and equipment
11
10,725
10,472
Goodwill and intangible assets
12
1,921
2,086
Interests in associates and joint ventures
13
4,906
4,542
Deferred tax assets
10(b)
379
264
Investments in equity securities measured at fair value
through profit and loss
15(h)
218
340
Derivative financial assets
19
−
13
Other non-current assets
15(g)
263
303
Total non-current assets
18,412
18,020
Current assets
Inventories
14
4,458
3,575
Trade and other receivables
15(b)
1,723
1,723
Prepayments and VAT recoverable
15(c)
803
593
Income tax receivable
10(e)
34
14
Short-term investments
133
97
Derivative financial assets
19
27
19
Cash and cash equivalents
15(f)
1,883
2,347
Total current assets
9,061
8,368
Total assets
27,473
26,388
Equity and liabilities
Equity
16
Share capital
−
−
Share premium
1,516
1,516
Additional paid-in capital
9,193
9,193
Revaluation reserve
3,625
3,480
Other reserves
(1,394)
(1,492)
Foreign currency translation reserve
(7,094)
(6,578)
Retained earnings
1,697
802
Total equity attributable to shareholders of
the Parent Company
7,543
6,921
Non-controlling interests
16(f)
4,738
4,660
Total equity
12,281
11,581
Non-current liabilities
Loans and borrowings
17
4,983
8,477
Deferred tax liabilities
10(b)
1,179
991
Provisions – non-current portion
18
305
351
Other non-current liabilities
157
196
Total non-current liabilities
6,624
10,015
Current liabilities
Loans and borrowings
17
5,781
2,587
Provisions – current portion
18
133
124
Trade and other payables
15(d)
1,761
1,369
Advances received
15(e)
544
339
Other taxes payable
323
373
Derivative financial liabilities
19
26
−
Total current liabilities
8,568
4,792
Total equity and liabilities
27,473
26,388
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
229
228
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Consolidated Statement of Cash Flows
for the year ended 31 December 2024
The consolidated statement of cash flows is to be read in conjunction with the notes to, and forming part of,
the consolidated financial statements set out on pages 233 to 295.
Year ended 31 December
2024
2023
Note
USD million
USD million
Operating activities
Profit for the year
1,348
716
Adjustments for:
Depreciation and amortisation
11,12
753
765
Impairment of non-current assets
661
366
Net foreign exchange (gain)/loss
8
(221)
85
Loss/(gain) on disposal of property, plant and equipment
6
7
(4)
Share of profits of associates and joint ventures
13
(563)
(752)
Interest expense
8
830
748
Interest income
8
(160)
(93)
Dividend income
8
(2)
(27)
Income tax expense
10
221
160
Partial reversal of provision of inventories to net realisable
value
(2)
(14)
Impairment of trade and other receivables
6
69
16
Provision for legal claims
18
29
3
Change in fair value of derivative financial instruments
8
(61)
99
Change in fair value of financial assets and liabilities
8
114
94
Operating profit before changes in working capital
3,023
2,162
(Increase)/decrease in inventories
(847)
843
(Increase)/decrease in trade and other receivables and
advances paid
(743)
340
Increase/(decrease) in trade and other payables and
advances received
592
(259)
Cash flows from operations before income tax
2,025
3,086
Income taxes paid
10(e)
(367)
(365)
Cash flows from operating activities
1,658
2,721
EN+ GROUP IPJSC
Consolidated Statement of Cash Flows
for the year ended 31 December 2024 (continued)
The consolidated statement of cash flows is to be read in conjunction with the notes to, and forming part of,
the consolidated financial statements set out on pages 233 to 295.
Year ended 31 December
2024
2023
Note
USD million
USD million
Investing activities
Proceeds from disposal of property, plant and equipment
16
13
Acquisition of property, plant and equipment
(1,842)
(1,413)
Acquisition of intangible assets
(36)
(35)
Cash paid for investment in equity securities measured at
fair value through profit and loss
−
(5)
Cash received from / (paid for) other investments
2
(69)
Interest received
146
84
Dividends from associates and joint ventures
416
−
Dividends from financial assets
2
23
Prepayment for acquisition of a joint venture
−
(13)
Acquisition of a joint venture
(303)
−
Contribution to associates and joint ventures
13
(22)
(5)
Change in restricted cash
−
1
Cash flows used in investing activities
(1,621)
(1,419)
Financing activities
Proceeds from borrowings
4,340
6,103
Repayment of borrowings
(3,805)
(7,662)
Acquisition of non-controlling interest
16(a)
−
(3)
Interest paid
(929)
(682)
Restructuring fees
(23)
(31)
Settlement of derivative financial instruments
63
(2)
Cash flows used in financing activities
(354)
(2,277)
Net decrease in cash and cash equivalents
(317)
(975)
Cash and cash equivalents at beginning of the year,
excluding restricted cash
2,345
3,474
Effect of exchange rate changes on cash and cash equivalents
(147)
(154)
Cash and cash equivalents at end of the year,
excluding restricted cash
15(f)
1,881
2,345
Restricted cash amounted to USD 2 million and USD 2 million at 31 December 2024 and 31 December 2023,
respectively.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
231
230
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Consolidated Statement of Changes in Equity
for the year ended 31 December 2024
The consolidated statement of changes in equity is to be read in conjunction with the notes to, and forming part of, the consolidated financial statements set out on pages 233 to 295.
Attributable to shareholders of the Parent Company
USD million
Share
premium
Additional
paid-in
capital
Reva-
luation
reserve
Other
reserves
Foreign
currency
translation
reserve
Retained
earnings
Total
Non-
controlling
interests
Total
equity
Balance at 1 January 2023
1,516
9,193
3,480
(1,497)
(5,422)
210
7,480
5,252
12,732
Comprehensive income
Profit for the year
−
−
−
−
−
596
596
120
716
Other comprehensive income/(loss)
−
−
−
5
(1,156)
−
(1,151)
(713)
(1,864)
Total comprehensive income/(loss)
for the year
−
−
−
5
(1,156)
596
(555)
(593)
(1,148)
Transactions with owners
Change in effective interest in subsidiaries
(note 16(a))
−
−
−
−
−
(4)
(4)
1
(3)
Total transactions with owners
−
−
−
−
−
(4)
(4)
1
(3)
Balance 31 December 2023
1,516
9,193
3,480
(1,492)
(6,578)
802
6,921
4,660
11,581
Balance at 1 January 2024
1,516
9,193
3,480
(1,492)
(6,578)
802
6,921
4,660
11,581
Comprehensive income
Profit for the year
−
−
−
−
−
996
996
352
1,348
Other comprehensive income/(loss)
−
−
145
(3)
(516)
−
(374)
(274)
(648)
Revaluation of hydro assets as at
31 December 2024 (note 11(e))
−
−
389
−
−
−
389
−
389
Taxation on revaluation of hydro assets
(note 10)
−
−
(244)
−
−
−
(244)
−
(244)
Other
−
−
−
(3)
(516)
−
(519)
(274)
(793)
Total comprehensive income/(loss)
for the year
−
−
145
(3)
(516)
996
622
78
700
Other transfers within equity
−
−
−
101
−
(101)
−
−
−
Balance 31 December 2024
1,516
9,193
3,625
(1,394)
(7,094)
1,697
7,543
4,738
12,281
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
1.
Background
(a)
Organisation
EN+ GROUP IPJSC (the “Parent Company” or EN+) was established as a limited liability company according
to the legislation of the British Virgin Islands on 30 April 2002 under the name of Baufinanz Limited.
On 18 March 2004, the Parent Company registered a change of its legal name to Eagle Capital Group Limited.
On 25 August 2005, the Parent Company changed its domicile to Jersey and was renamed to En+ Group
Limited. On 1 June 2017, the Parent Company changed its status to a public company and was renamed to
EN+ GROUP PLC. On 9 July 2019, the Parent Company changed its domicile to the Russian Federation with
a registration as EN+ GROUP International public joint-stock company (EN+ GROUP IPJSC). The Parent
Company’s registered office is Oktyabrskaya st. 8, office 34, Kaliningrad, Kaliningrad Region, 236006,
Russian Federation.
EN+ GROUP IPJSC is the parent company for the vertically integrated aluminium and power group, engaged
in aluminium production and energy generation (together with the Parent Company referred to as
“the Group”).
The Parent Company’s ordinary shares are traded on the Moscow Exchange’s Level One Quotation List (ticker:
ENPG) since 17 February 2020.
Since November 2017, EN+’s GDRs, each representing one ordinary share, were listed on the London Stock
Exchange. Since March 2022, the London Stock Exchange has suspended trading in securities of Russian
companies, including EN+. On 16 April 2022, Federal Law No. 114-FZ came into force, requiring Russian
companies to initiate the termination of deposit agreements for their GDR programmes. EN+ received a
permission to continue trading its GDRs outside Russia until 7 November 2024, inclusive. To comply with the
Federal Law, on 8 October 2024, the Parent Company sent notices to request the cancellation of listing and
admission to trading of its GDRs. The depository agreements in respect of the GDRs were valid until
7 November 2024, inclusive (until their expiration). London Stock Exchange has formally cancelled the EN+’s
GDRs admission to trading with effect from 19 November 2024.
Until 17 April 2020 inclusive, EN+’s GDRs were listed on the Moscow Exchange. The GDRs were
subsequently delisted from the Moscow Exchange on 20 April 2020. During the two-month transition period
prior to this date the two equity instruments (GDRs and ordinary shares) continued to be traded on the
Moscow Exchange.
As at 31 December 2024 and 31 December 2023 Mr. Oleg Deripaska beneficially controls and exercises
voting rights in respect of 35% of the voting shares of the Parent Company and his direct or indirect
shareholding cannot exceed 44.95% of the shares of the Parent Company.
The other significant holders as at 31 December 2024 and 31 December 2023 were as follows:
31 December
2024
31 December
2023
Special financial organisation
21.37%
21.37%
Glencore Group Funding Limited
10.55%
10.55%
Other shareholders
23.13%
23.13%
Glencore Group Funding Limited is a subsidiary of Glencore Plc.
Based on the information at the Group’s disposal at the reporting date, there is no individual that has an
indirect prevailing ownership interest in the Parent Company exceeding 50%, who could exercise voting
rights in respect of more than 35% of the Parent Company’s issued share capital or has an opportunity to
exercise control over the Parent Company.
Related party transactions are detailed in note 23.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
233
232
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
(b)
Operations
The Group is a leading vertically integrated aluminium and power producer, which combines the assets and
results of its Metals and Power segments.
The Metals segment operates in the aluminium industry primarily in the Russian Federation, Guinea,
Jamaica, Ireland, Italy and Sweden and is principally engaged in the mining and refining of bauxite and
nepheline ore into alumina, the smelting of primary aluminium from alumina and the fabrication of
aluminium and aluminium alloys into semi-fabricated and finished products.
The Power segment engages in all major areas of the power industry, including electric power generation,
power trading and supply. It also includes supporting operations engaged in the supply of coal resources to
the Group. The Group’s principal power plants are located in East Siberia and Volga Region, the Russian
Federation.
(c)
Business environment in emerging economies
The Russian Federation, Jamaica and Guinea have been experiencing political and economic changes that
have affected, and may continue to affect, the activities of enterprises operating in these environments.
Consequently, operations in these countries involve risks that typically do not exist in other markets,
including reconsideration of privatisation terms in certain countries where the Group operates following
changes in governing political powers.
The imposition of economic sanctions on Russian individuals and legal entities by the European Union,
the United States of America, Japan, Canada, Australia and others, as well as counter sanctions imposed by
the Russian government, has resulted in increased economic uncertainty including more volatile equity,
commodity and currency markets. The longer term effects of implemented sanctions, as well as the threat of
additional future sanctions, are difficult to determine.
The consolidated financial statements reflect management’s assessment of the impact of the Russian,
Jamaican and Guinean business environments on the operations and the financial position of the Group.
The future business environment may differ from management’s assessment.
(d)
OFAC sanctions
On 6 April 2018, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated,
amongst others, the Parent Company, JSC “EuroSibEnergo” (from 6 December 2024 JSC EN+ Generation,
“EN+ Generation”) and UC RUSAL Plc (from 25 September 2020 UC RUSAL IPJSC, “UC RUSAL”) as
Specially Designated Nationals (“SDN”) (the “OFAC Sanctions”).
As a result, all property or interests in property of the Parent Company and its subsidiaries located in the
United States or in the possession of U.S. Persons were blocked, frozen, and could not have been transferred,
paid, exported, withdrawn, or otherwise dealt in. Several general licenses were issued at the time of the
designation and subsequently certain transactions were authorised with the Parent Company, EN+ Generation
and UC RUSAL, and with their respective debt and equity.
On 27 January 2019, OFAC announced the removal of the Parent Company and its subsidiaries, including
UC RUSAL and EN+ Generation, from OFAC’s SDN list and Blocked Persons with immediate effect.
The removal was subject to and conditional upon the satisfaction of a number of conditions including, but
not limited to:
Ending Mr. Oleg Deripaska’s control of the Group, through the reduction of his direct and indirect
ownership interest in the Parent Company to below 50%;
Establishing independent voting arrangements for the Parent Company’s shares held by certain
shareholders;
Corporate governance changes, including, inter alia, overhauling the composition of the EN+ Board
to ensure that independent directors constitute the majority of the Board, and ongoing reporting and
certifications by the Parent Company and UC RUSAL to OFAC concerning compliance with the
conditions for sanctions’ removal.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
(e)
Going concern
These consolidated financial statements have been prepared assuming that the Group will continue as a going
concern. Accordingly, these financial statements do not include any adjustments relating to the recoverability
and classification of recorded asset amounts, the amounts and classification of liabilities or any other
adjustments that might result from the Group being unable to continue as a going concern.
Continuing geopolitical instability and unpredictability of its further developments, including current and
potential sanctions imposed by US, EU and other countries, may cause potential significant limitations for
sales channels, availability of production raw materials and possibility to organize supply chain. Availability
of future financing, including increased key rate of Central Bank of Russian Federation and volatility of
currency, stock commodity and financial markets, potential imposition of export customs duties may affect
the Group’s business, financial condition, prospects and results of operations.
The facts described above, create material uncertainty in the Group’s ability to meet its financial obligations
on time and continue as a going concern entity. Management constantly evaluates the current situation and
prepares forecasts taking into account different scenarios of the events and conditions development. The
Group’s management expects that prices on the world commodity markets will grow and improve the results
of operating activities. The Group is also revising its supply and sales chains, ensuring an optimal equity and
debt ratio, searching for resolutions of logistic difficulties, as well as the ways to survive its obligations in
order to adapt the current economic changes to maintain the continuance of the Group’s operations.
2.
Basis of preparation
(a)
Statement of compliance
These consolidated financial statements have been prepared in accordance with IFRS Accounting Standards,
which, as at the reporting date, were endorsed on the territory of Russian Federation.
Preparation of these consolidated financial statements is also regulated by Russian Federal Law 208-FZ dated
27 July 2010 On Consolidated Financial Statements in all aspects, except for presentation currency, which
are regulated by Russian Federal Law 290-FZ dated 3 August 2018 On International Companies and
International Funds.
The Group applied for the first-time certain standards and amendments, which are effective for annual periods
beginning on or after 1 January 2024.
Amendments to IAS 1 Presentation of Financial Statements named Classification of Liabilities as
Current or Non-current. The amendments clarify requirements for classifying liabilities as current or
non-current;
Amendments to IFRS 16 Leases related to lease liability in a sale and leaseback. The amendments
require from the seller-lessee to measure lease liability arising from leaseback in such a way, that no
profit or loss is recognized in respect of the right-of-use retained;
Amendments to IAS 1 Presentation of Financial Statements named Non-current Liabilities with
Covenants. The amendments presume that liability is classified as non-current if the Group has a
substantial right to defer settlement for at least 12 months after the reporting date. The amendments
clarify the criteria of classification (included that “future” covenants as well as management intentions
do not affect classification as of the reporting date) and require certain additional disclosures;
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures named
Supplier Finance Arrangements. The amendments clarify the influence of supplier finance
arrangements on liabilities, cash flows, exposure to liquidity risk and risk management. Also the
amendments presume certain additional disclosures.
The amendments mentioned above did not have a significant impact on the consolidated financial statements
of the Group.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
235
234
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
(b)
Standards issued but not effective
The new and amended standards and interpretations that were issued, but not yet effective, up to the date of
issuance of the Group’s consolidated financial statements are disclosed below. The Group intends to adopt
these new and amended standards and interpretations, if applicable, when they become effective:
Lack of Exchangeability – Amendments to IAS 21 (effective on or after 1 January 2025);
Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9
and IFRS 7 (effective on or after 1 January 2026);
Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7 (effective
on or after 1 January 2026);.
Annual improvements to IFRS Accounting Standards – Volume 11 (effective on or after
1 January 2026):
Cost method (Amendments to IAS 7);
Derecognition of lease liabilities (Amendments to IFRS 9);
Determination of a ‘de facto agent’ (Amendments to IFRS 10);
Disclosure of deferred difference between fair value and transaction price (Amendments to
Guidance on implementing IFRS 7);
Gain or loss on derecognition (Amendments to IFRS 7);
Hedge accounting by a first-time adopter (Amendments to IFRS 1);
Introduction (Amendments to Guidance on implementing IFRS 7);
Credit risk disclosures (Amendments to Guidance on implementing IFRS 7);
Transaction price (Amendments to IFRS 9).
IFRS 18 Presentation and Disclosure in Financial Statements (effective on or after 1 January 2027);
IFRS 19 Subsidiaries without Public Accountability: Disclosures (effective from 1 January 2027).
The Group is currently assessing the impact the amendments and new standards will have on current practice,
when they become effective.
(c)
Basis of measurement
The consolidated financial statements have been prepared in accordance with the historical cost basis except
as set out in the material accounting policies in notes 11 and 19.
(d)
Functional and presentation currency
The functional currencies of the Parent Company and Group’s significant subsidiaries are the currencies of
the primary economic environment and key business processes of these subsidiaries and include United States
Dollar (“USD”), Russian Rouble (“RUB”), Chinese Yuan (“CNY”) and Euro (“EUR”). The consolidated
financial statements are presented in USD, rounded to the nearest million, except as otherwise stated herein.
The functional currencies of investments in associates and joint ventures are RUB, CNY, Kazakhstani Tenge
and Australian Dollar.
(e)
Use of judgements, estimates and assumptions
The preparation of consolidated financial statements in conformity with IFRS Accounting Standards requires
management to make judgements, estimates and assumptions that affect the application of accounting
policies and reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date
of the consolidated financial statements, and the reported revenue and costs during the relevant period.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
Management bases its judgements and estimates on historical experience and various other factors that are
believed to be appropriate and reasonable under the circumstances, the results of which form the basis of
making the judgements about carrying values of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates under different assumptions and conditions.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that period,
or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements made by management in the application of IFRS Accounting Standards that have a significant effect
on the consolidated financial statements and estimates with a significant risk of material adjustment in the
next year relate to:
Measurement of recoverable amount of property, plant and equipment (note 11) and goodwill (note 12);
Measurement of net realizable value of inventories (note 14);
Measurement of recoverable amount of investments in associates and joint ventures (note 13);
Measurement of recoverable amount of deferred tax assets (note 10);
Estimates in respect of legal proceedings, restoration and exploration, taxation and pension provisions
(note 18);
Measurement of fair value of derivative financial instruments (note 19);
Measurement of expected credit losses on financial assets (note 15).
3.
Material accounting policies
Material accounting policies are described in the related notes to the consolidated financial statements
captions and in this note.
The accounting policies and judgements applied by the Group in these consolidated financial statements are
consistent with those applied by the Group in its consolidated financial statements as at and for the year
ended 31 December 2023, except for the adoption of new standards effective from 1 January 2024.
(a)
Basis of consolidation
(i)
Subsidiaries and non-controlling interests
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has
rights to, variable returns from its involvement with the entity and has the ability to affect those returns through
its power over the entity. When assessing control substantive potential voting rights are taken into account.
The financial information of subsidiaries is included in the consolidated financial statements from the date
that control commences until the date that control ceases. The accounting policies of subsidiaries have been
changed when necessary to align them with the policies adopted by the Group.
Non-controlling interests represent the portion of the net assets of subsidiaries attributable to interests that are
not owned by the equity shareholders of the Parent Company, whether directly or indirectly through
subsidiaries.
Non-controlling interests are presented in the consolidated statement of financial position within equity,
separately from equity attributable to the equity shareholders of the Parent Company. Non-controlling
interests in the results of the Group are presented on the face of the consolidated statement of profit or loss
and other comprehensive income as an allocation of the total profit or loss and total comprehensive income
for the year between non-controlling interests and the equity shareholders of the Parent Company.
Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling interests
even if doing so causes the non-controlling interests to have a deficit balance.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
237
236
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as
equity transactions, whereby adjustments are made to the amounts of controlling and non-controlling-
interests within consolidated equity to reflect the change in relative interests, but no adjustments are made to
goodwill and no gain or loss is recognised.
When the Group loses control of a subsidiary, it is accounted for as a disposal of the entire interest in that
subsidiary, with a resulting gain or loss being recognised in profit or loss. Any interest retained in that former
subsidiary at the date when control is lost is recognised at fair value and this amount is regarded as the fair
value on initial recognition of a financial asset (refer to note 15) or, when appropriate, the cost on initial
recognition of an investment in an associate or joint venture (refer to note 13).
(ii)
Acquisitions of non-controlling interests
The acquisition of an additional non-controlling interest in an existing subsidiary after control has been obtained
is accounted for as an equity transaction with any difference between the cost of the additional investment and
the carrying amount of the net assets acquired at the date of exchange recognised directly in equity.
For a written put option or forward with the non-controlling shareholders in an existing subsidiary on their
equity interest in that subsidiary, if the non-controlling shareholders do not have present access to the returns
associated with the underlying ownership interest, the contract is accounted for as an anticipated acquisition
of the underlying non-controlling interests, as if the put option had been exercised already or the forward had
been satisfied by the non-controlling shareholders.
(iii)
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group
transactions, are eliminated in preparing the consolidated financial statements. Unrealised gains arising from
transactions with equity accounted investees are eliminated against the investment to the extent of the
Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but
only to the extent that there is no evidence of impairment.
(b)
Foreign currencies
(i)
Foreign currency transactions
Transactions in foreign currencies are translated into the respective functional currencies of Group entities at
the exchange rates ruling at the dates of the transactions. Monetary assets and liabilities denominated in
foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that
date. The foreign currency gain or loss on monetary items is the difference between the amortised cost in the
functional currency at the beginning of the period, adjusted for effective interest and payments during the
period, and the amortised cost in foreign currency translated at the exchange rate at the end of the reporting
period. Non-monetary items in a foreign currency are measured based on historical cost and are translated
using the exchange rate at the date of transaction. Foreign currency differences arising on retranslation are
recognised in profit or loss, except for differences arising on the retranslation of qualifying cash flow hedges
to the extent the hedge is effective, which is recognised in other comprehensive income.
(ii)
Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on
acquisition, are translated from their functional currencies to USD at the exchange rates ruling at the reporting
date. The income and expenses of foreign operations are translated to USD at exchange rates approximating
exchange rates at the dates of the transactions.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
Foreign currency differences arising on translation are recognised in other comprehensive income and
presented in the currency translation reserve in equity. For the purposes of foreign currency translation, the
net investment in a foreign operation includes foreign currency intra-group balances for which settlement is
neither planned nor likely in the foreseeable future and foreign currency differences arising from such a
monetary item are recognised as part of other comprehensive income in the statement of profit or loss and
other comprehensive income.
When a foreign operation is disposed of, such that control, significant influence or joint control is lost, the
cumulative amount of the currency translation reserve is transferred to profit or loss as part of the gain or loss
on disposal. When the Group disposes of only part of its interest in a subsidiary that includes a foreign
operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-
controlling interests. When the Group disposes of only part of its investment in an associate or joint venture
that includes a foreign operation while retaining significant influence or joint control, the relevant proportion
of the cumulative amount is reclassified to profit or loss.
4.
Segment reporting
(a)
Reportable segments
An operating segment is a component of an entity: (a) that engages in business activities from which it may
earn revenues and incur expenses (including revenues and expenses relating to transactions with other
components of the same entity), (b) whose operating results are regularly reviewed by the entity’s chief
operating decision maker to make decisions about resources to be allocated to the segment and assess its
performance, and (c) for which discrete financial information is available.
Individually material operating segments are not aggregated for financial reporting purposes unless the
segments have similar economic characteristics and are similar in respect of the nature of products and
services, the nature of production processes, the type or class of customers, the methods used to distribute
the products or provide the services and the nature of the regulatory environment. Operating segments which
are not individually material may be aggregated if they share a majority of these criteria.
Based on the current management structure and internal reporting the Group has identified two operating
segments:
a)
Metals. The Metals segment comprises UC RUSAL with disclosures being based on the public
financial statements of UC RUSAL. All adjustments made to UC RUSAL, including any adjustments
arising from different timing of IFRS first time adoption, are included in “Adjustments” column.
The Power assets of UC RUSAL are included within the Metals segment.
b)
Power. The Power segment mainly comprises the power assets, as described in note 1(b).
These business units are managed separately and the results of their operations are reviewed by the key
executive management personnel and Board of Directors on a regular basis.
(b)
Segment results, assets and liabilities
For the purposes of assessing segment performance and allocating resources between segments, the Group’s
senior executive management monitor the results, assets and liabilities and cash flows attributable to each
reportable segment on the following bases:
Total segment assets include all non-current tangible, intangible assets and current assets.
Total segment liabilities include all current and non-current liabilities.
Revenue and expenses are allocated to the reportable segments with reference to sales generated by
those segments and the expenses incurred by those segments or which otherwise arise from the
depreciation or amortisation of assets attributable to those segments.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
239
238
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
The measures used for reporting segment results are the net profit and Adjusted EBITDA (key
non-IFRS financial measure used by the Group as reference for assessing operating effectiveness).
Segment profit or loss and Adjusted EBITDA are used to measure performance as management
believes that such information is the most relevant in evaluating the results of certain segments relative
to other entities that operate within these industries.
Adjusted EBITDA represents the results from operating activities adjusted for amortisation and
depreciation, impairment charges and gain/(losses) on disposal of property, plant and equipment for
the relevant period.
In addition to receiving segment information concerning segment results, management is provided with
segment information concerning revenue (including inter-segment revenue), the carrying value of
investments and share of profits/(losses) of associates and joint ventures, depreciation, amortisation, interest
income and expenses, other finance income and costs, income tax, gains/(losses) on disposal of property,
plant and equipment, impairment of non-current assets and additions of non-current segment assets used by
the segments in their operations. Inter-segment pricing is determined primarily on a consistent basis using
market benchmarks.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
Year ended 31 December 2024
USD million
Metals
Power
Adjustments
Total
Consolidated statement of profit or loss and other comprehensive income
Revenue from external customers
11,885
2,764
–
14,649
Primary aluminium and alloys
9,538
–
–
9,538
Alumina and bauxite
754
–
–
754
Semi-finished products and foil
585
314
–
899
Electricity
111
1,666
–
1,777
Heat
51
378
–
429
Other
846
406
–
1,252
Inter-segment revenue
197
1,089
(1,286)
–
Total segment revenue
12,082
3,853
(1,286)
14,649
Operating expenses (excluding depreciation and gain/loss on disposal of
property, plant and equipment)
(10,588)
(2,407)
1,273
(11,722)
Adjusted EBITDA
1,494
1,446
(13)
2,927
Depreciation and amortisation
(538)
(217)
2
(753)
(Loss)/gain on disposal of property, plant and equipment
(8)
1
–
(7)
Impairment of non-current assets
(580)
(81)
–
(661)
Results from operating activities
368
1,149
(11)
1,506
Share of profits and impairment of associates and joint ventures
564
(1)
–
563
Interest expense, net
(296)
(374)
–
(670)
Other finance costs, net
222
(52)
–
170
Profit before tax
858
722
(11)
1,569
Income tax expense
(55)
(169)
3
(221)
Profit for the year
803
553
(8)
1,348
Additions to non-current segment assets during the year (note 11(b))
(1,503)
(577)
7
(2,073)
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
Year ended 31 December 2024
USD million
Metals
Power
Adjustments
Total
Consolidated statement of financial position
Segment assets, excluding cash and cash equivalents and interests in associates
and joint ventures
15,830
5,697
(843)
20,684
Investment in Metals segment
–
4,595
(4,595)
–
Cash and cash equivalents
1,503
380
–
1,883
Interests in associates and joint ventures
4,868
38
–
4,906
Total segment assets
22,201
10,710
(5,438)
27,473
Segment liabilities, excluding loans, borrowings and bonds payable
3,067
1,535
(174)
4,428
Loans, borrowings and bonds payable
7,918
2,846
–
10,764
Total segment liabilities
10,985
4,381
(174)
15,192
Total segment equity
11,216
6,329
(5,264)
12,281
Total segment equity and liabilities
22,201
10,710
(5,438)
27,473
Consolidated statement of cash flows
Cash flows from operating activities
483
1,133
42
1,658
Cash flows used in investing activities
(1,078)
(501)
(42)
(1,621)
Acquisition of property, plant and equipment, intangible assets
(1,366)
(519)
7
(1,878)
Cash received from/(paid for) other investments
45
6
(49)
2
Dividends from the jointly controlled entities and other associates
416
–
–
416
Interest received
116
30
–
146
Acquisition of a joint venture
(303)
–
–
(303)
Other investing activities
14
(18)
–
(4)
Cash flows from / (used in) financing activities
113
(467)
–
(354)
Interest paid
(494)
(435)
–
(929)
Restructuring fees
(15)
(8)
–
(23)
Settlements of derivative financial instruments
63
–
–
63
Other financing activities
559
(24)
–
535
Net change in cash and cash equivalents
(482)
165
–
(317)
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
Year ended 31 December 2023
USD million
Metals
Power
Adjustments
Total
Consolidated statement of profit or loss and other comprehensive income
Revenue from external customers
12,008
2,640
−
14,648
Primary aluminium and alloys
9,933
−
−
9,933
Alumina and bauxite
513
−
−
513
Semi-finished products and foil
550
314
−
864
Electricity
128
1,518
−
1,646
Heat
55
421
−
476
Other
829
387
−
1,216
Inter-segment revenue
205
947
(1,152)
−
Total segment revenue
12,213
3,587
(1,152)
14,648
Operating expenses (excluding depreciation and gain/loss on disposal of
property, plant and equipment)
(11,427)
(2,295)
1,231
(12,491)
Adjusted EBITDA
786
1,292
79
2,157
Depreciation and amortisation
(540)
(228)
3
(765)
(Loss)/gain on disposal of property, plant and equipment
(4)
8
−
4
Impairment of non-current assets
(321)
(45)
−
(366)
Results from operating activities
(79)
1,027
82
1,030
Share of profits and impairment of associates and joint ventures
752
−
−
752
Interest expense, net
(312)
(343)
−
(655)
Other finance costs, net
(117)
(134)
−
(251)
Profit before tax
244
550
82
876
Income tax expense
38
(195)
(3)
(160)
Profit for the year
282
355
79
716
Additions to non-current segment assets during the year (note 11(b))
(1,121)
(443)
7
(1,557)
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
241
240
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
Year ended 31 December 2023
USD million
Metals
Power
Adjustments
Total
Consolidated statement of financial position
Segment assets, excluding cash and cash equivalents and interests in associates
and joint ventures
14,856
5,551
(908)
19,499
Investment in Metals segment
−
4,595
(4,595)
−
Cash and cash equivalents
2,087
260
−
2,347
Interests in associates and joint ventures
4,521
21
−
4,542
Total segment assets
21,464
10,427
(5,503)
26,388
Segment liabilities, excluding loans, borrowings and bonds payable
2,582
1,405
(244)
3,743
Loans, borrowings and bonds payable
7,866
3,198
−
11,064
Total segment liabilities
10,448
4,603
(244)
14,807
Total segment equity
11,016
5,824
(5,259)
11,581
Total segment equity and liabilities
21,464
10,427
(5,503)
26,388
Consolidated statement of cash flows
Cash flows from / (used in) operating activities
1,760
963
(2)
2,721
Cash flows (used in) / from investing activities
(1,030)
(391)
2
(1,419)
Acquisition of property, plant and equipment, intangible assets
(1,056)
(394)
2
(1,448)
Cash paid for investment in equity securities measured at fair value through
profit and loss
(5)
−
−
(5)
Cash paid for other investments
(49)
(20)
−
(69)
Interest received
61
23
−
84
Other investing activities
19
−
−
19
Cash flows used in financing activities
(1,747)
(530)
−
(2,277)
Interest paid
(422)
(260)
−
(682)
Restructuring fees
(30)
(1)
−
(31)
Settlements of derivative financial instruments
(2)
−
−
(2)
Other financing activities
(1,293)
(269)
−
(1,562)
Net change in cash and cash equivalents
(1,017)
42
−
(975)
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
(i)
Geographic information
The Group’s operating segments are managed on a worldwide basis, but operate in four principal
geographical areas: the CIS, Europe, Africa and the Americas. In the CIS, production facilities operate in
Russia. In Europe, production facilities are located in Italy, Ireland and Sweden. African production facilities
are represented by the bauxite mines and an alumina refinery in Guinea. In the Americas the Group operates
one production facility in Jamaica.
The following table sets out information about the geographical location of the Group’s revenue from
external customers and the Group’s property, plant and equipment, intangible assets and interests in
associates and joint ventures (“specified non-current assets”). The geographical location of customers is
based on the location at which the services were provided or the goods delivered. The geographical location
of the specified non-current assets is based on the physical location of the asset. Unallocated specified
non-current assets comprise mainly goodwill.
Year ended 31 December
Revenue from external customers
2024
2023
USD million
USD million
Russia
6,293
5,897
China
3,706
2,855
Turkey
859
1,182
South Korea
856
1,191
Spain
306
237
Italy
220
198
Belarus
183
211
Germany
174
268
France
170
129
Greece
169
341
Taiwan
151
70
Poland
139
222
Uzbekistan
131
128
Netherlands
124
256
Ireland
115
115
India
113
133
Other countries
940
1,215
14,649
14,648
31 December
Specified non-current assets
2024
2023
USD million
USD million
Russia
14,341
14,198
China
435
−
Guinea
278
234
Ireland
85
89
Unallocated
3,273
3,499
18,412
18,020
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
243
242
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
5.
Revenues
IFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is
recognised. The details of significant accounting policies in relation to the Group’s various goods and
services are set out below:
Sales of goods: comprise sale of primary aluminium, alloys, alumina, bauxite and other products. Customers
obtain control of the goods supplied when the goods are delivered to the point when risks are transferred
based on Incoterms delivery terms stated in the contract, legal title to the asset and physical possession of the
asset is transferred. Invoices are generated and revenue is recognised at that point in time. Invoices are usually
payable in advance or with deferral up to 90 days.
Rendering of transportation services: as part of sales of goods the Group also performs transportation to
the customer under contract terms. In certain cases, the control of goods delivered is transferred to customers
prior to transportation being completed. In these cases rendering of transportation services from when the
control of goods has been transferred is considered as a separate performance obligation.
Rendering of electricity supply services: The Group is involved in sales of electricity to third and related
parties. Invoices are issued once a month at the end of month and paid within 30 days. Revenue is recognised
over time during the month of power supply.
Year ended 31 December
2024
2023
USD million
USD million
Sales of primary aluminium and alloys
9,538
9,933
Third parties
9,335
9,689
Related parties – companies capable of exerting significant influence
200
241
Related parties – associates and joint ventures
3
3
Sales of alumina and bauxite
754
513
Third parties
416
248
Related parties – associates and joint ventures
338
265
Sales of semi-finished products and foil
899
864
Third parties
899
864
Sales of electricity
1,777
1,646
Third parties
1,738
1,607
Related parties – associates and joint ventures
39
39
Sales of heat
429
476
Third parties
427
474
Related parties – companies capable of exerting significant influence
2
2
Other revenues
1,252
1,216
Third parties
1,012
977
Related parties – companies capable of exerting significant influence
39
35
Related parties – associates and joint ventures
201
204
14,649
14,648
Revenue of the Group includes primarily revenue from contracts with customers as well as other revenue.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
6.
Other operating expenses, net
Year ended 31 December
2024
2023
USD million
USD million
Impairment of trade and other receivables
(69)
(16)
Charity
(57)
(38)
(Loss)/gain on disposal of property, plant and equipment
(7)
4
Other
(241)
(118)
(374)
(168)
7.
Personnel costs
Personnel costs comprise salaries, annual bonuses, annual leave, cost of non-monetary benefits and social
contributions. Salaries, annual bonuses, paid annual leave and cost of non-monetary benefits are accrued in
the year in which the associated services are rendered by employees. Where payment or settlement is deferred
and the effect would be material, these amounts are stated at their present values.
The employees of the Group are also members of retirement schemes operated by local authorities.
The Group is required to contribute a certain percentage of their payroll to these schemes to fund the benefits.
The Group’s total contribution to those schemes charged to profit or loss during the years presented is shown
below.
The Group’s net obligation in respect of defined benefit pension and other post-retirement plans is calculated
separately for each plan by estimating the amount of future benefit that employees have earned in return for
their service in the current and prior periods. That benefit is discounted to determine its present value and the
fair value of any plan assets are deducted. The discount rate is the yield at the reporting date on government
bonds that have maturity dates approximating the terms of the Group’s obligations. The calculation is
performed using the projected unit credit method. When the calculation results in a benefit to the Group, the
recognised asset is limited to the present value of any future refunds from the plan or reductions in future
contributions to the plan.
Where there is a change in actuarial assumptions, the resulting actuarial gains and losses are recognised
directly in other comprehensive income.
When the benefits of a plan are improved, the portion of the increased benefit relating to past service by
employees is recognised in profit or loss immediately.
The Group recognises gains and losses on the curtailment or settlement of a defined benefit plan when the
curtailment or settlement occurs. The gain or loss on curtailment comprises any resulting change in the fair
value of plan assets, any change in the present value of the defined benefit obligation, any related actuarial
gains and losses.
Year ended 31 December
2024
2023
USD million
USD million
Contributions to defined contribution retirement plans
(309)
(288)
Contributions to defined benefit retirement plans
(2)
(1)
Total retirement costs
(311)
(289)
Wages and salaries
(1,537)
(1,277)
(1,848)
(1,566)
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
245
244
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
8.
Finance income and costs
Finance income comprises interest income on funds invested, dividend income and foreign currency gains.
Interest income is recognised as it accrues, using the effective interest method.
Finance costs comprise interest expense on loans and bonds, foreign currency losses and changes in the fair
value of financial assets at fair value through profit or loss. All borrowing costs are recognised in profit or
loss using the effective interest method, except for borrowing costs related to the acquisition, construction
and production of qualifying assets which are recognised as part of the cost of such assets.
Year ended 31 December
2024
2023
USD million
USD million
Finance income
Foreign exchange gain
221
−
Interest income
160
93
Change in fair value of derivative financial instruments (note 19)
61
−
Dividend income
2
27
444
120
Finance costs
Interest expense
(830)
(748)
Change in fair value of financial assets and liabilities
(114)
(94)
Change in fair value of derivative financial instruments (note 19)
−
(99)
Foreign exchange loss
−
(85)
(944)
(1,026)
9.
Earnings per share
The calculation of basic earnings per share is based on the profit attributable to ordinary equity shareholders
for the years ended 31 December 2024 and 31 December 2023.
Year ended 31 December
2024
2023
Weighted average number of shares
502,337,774
502,337,774
Profit for the year attributable to the shareholders of the Parent
Company, USD million
996
596
Basic and diluted earnings per share, USD
1.983
1.186
There were no outstanding dilutive instruments during the years ended 31 December 2024 and
31 December 2023.
10.
Income tax expense
Income tax expense comprises current and deferred tax. Income tax expense is recognised in the statement
of profit or loss and other comprehensive income except to the extent that it relates to items recognised
directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for taxation purposes.
In respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in joint arrangements deferred tax liabilities are not recognized where the timing of the reversal of
the temporary differences can be controlled and it is probable that the temporary differences will not reverse
in the foreseeable future.
In respect of deductible temporary differences associated with investments in subsidiaries, associates and
interests in joint arrangements deferred tax assets are recognized only to the extent that it is probable that the
temporary differences will reverse in the foreseeable future and taxable profit will be available against which
the temporary differences can be utilized.
Deferred tax is not recognised for the following temporary differences: the initial recognition of goodwill
(for taxable differences); the initial recognition of assets or liabilities in a transaction that: a) is not a business
combination, b) affects neither accounting nor taxable profit, c) at the time of the transaction, does not give
rise to equal taxable and deductible temporary differences.
New information may become available that causes the Group to change its judgement regarding the
adequacy of existing tax liability. Such changes to tax liabilities will impact tax expenses in the period that
such a determination is made. Deferred tax is measured at the tax rates that are expected to be applied to the
temporary differences when they reverse, based on the laws that have been enacted or substantively enacted
by the reporting date. Deferred tax assets and liabilities are offset when they relate to income taxes levied by
the same taxation authority and the Group has both the right and the intention to settle its current tax assets
and liabilities on a net or simultaneous basis.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available
against which temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
(a)
Income tax expense
Year ended 31 December
2024
2023
USD million
USD million
Current tax expense
(362)
(370)
Current tax for the year
(362)
(312)
Windfall tax
−
(58)
Deferred tax expense
141
210
Origination and reversal of temporary differences
70
210
Effect of change of the tax rate in Russian Federation from 1 January
2025
71
−
(221)
(160)
The Parent Company is a tax resident of the Russian SAR (special administrative region). Companies which
register in the SAR as part of the continuance out of a foreign jurisdiction (such as the Parent Company) may
have a number of tax benefits, subject to certain conditions.
The Parent Company and its subsidiaries pay income taxes in accordance with the legislative requirements
of their respective tax jurisdictions. For the Parent Company and subsidiaries domiciled in the Russian
Federation the applicable tax rate in 2024 was 20%, Guinea – 0% to 35%, China − 25%, Kazakhstan − 20%,
Australia − 30%, Jamaica − 25%, Ireland − 12.5%, Sweden − 20.6% and Italy − 26.93%, Switzerland – 9.%
and 11.85% and United Arab Emirates – 0% to 9%. For the RUSAL’s significant trading companies, the
applicable tax rates range from 0% to 25%. The applicable tax rates for the year ended 31 December 2024
were the same as for the year ended 31 December 2023 except for tax rates for subsidiaries domiciled in
Switzerland which amounted to 9.07% and 11.82%.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
247
246
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
Management continues to monitor and evaluate the domestic implementation by relevant countries of the
Organisation for Economic Co-operation and Development’s (OECD) Pillar Two which seeks to apply a
15% global minimum tax. In order to be implemented, the Pillar Two rules must be adopted at the national
tax legislation level of each respective country. Management estimates the exposure to additional taxation
under Pillar Two as of the date of authorization of these consolidated financial statements for issue as
immaterial for the Group. The Group applies the IAS 12 “Income Tax” temporary mandatory exception from
deferred tax accounting for Pillar Two.
Increase in the income tax rate in Russian Federation
On 12 July 2024, Federal Law No. 176-FZ On Amendments to Parts One and Two of the Tax Code of the
Russian Federation, Certain Legislative Acts of the Russian Federation, and the Annulment of Certain
Provisions of Legislative Acts of the Russian Federation was adopted. Among other things, the Law
introduced an increase in the income tax rate from 20% to 25%. Thus, income tax for 2024 shall be paid at
the rate of 20% and the new rate of 25% will apply from 2025 onwards. The Law is effective from 1 January
2025.
The Group accrued additional deferred tax liabilities and deferred tax assets to account for the increase in the
income tax rate from 1 January 2025. Additional deferred tax income of USD 71 million was recognized in
profit or loss and additional deferred tax loss of USD 148 million was recognized in other comprehensive
income.
Reconciliation of effective tax rate
Year ended 31 December
2024
2023
USD million
%
USD million
%
Profit before taxation
1,569
(100)
876
(100)
Income tax at tax rate applicable
for the Parent Company
(314)
20
(175)
20
Other non-deductible/taxable items, net
(58)
4
(5)
–
Effect of changes in investment in
Norilsk Nickel
69
(4)
126
(14)
Change in unrecognised deferred tax
assets
(65)
4
(213)
24
Effect of impairment
(12)
1
(43)
5
Effect of windfall tax
–
–
(58)
7
Effect of the change in the tax rate in
Russian Federation from 1 January 2025
71
(5)
–
–
Effect of different income tax rates
88
(6)
208
(24)
Income tax
(221)
14
(160)
18
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
(b)
Recognised deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following items:
Assets
Liabilities
Net
31 December
31 December
31 December
USD million
2024
2023
2024
2023
2024
2023
Property, plant and equipment
157
120
(1,516)
(1,243)
(1,359)
(1,123)
Inventories
87
69
(53)
(44)
34
25
Trade and other receivables
115
88
(82)
(62)
33
26
Trade and other payables and advances
received
39
33
–
–
39
33
Tax loss carry-forward
91
72
–
–
91
72
Others
509
363
(147)
(123)
362
240
Tax assets/(liabilities)
998
745
(1,798)
(1,472)
(800)
(727)
Set off of tax
(619)
(481)
619
481
–
–
Net deferred tax assets/(liabilities)
379
264
(1,179)
(991)
(800)
(727)
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
249
248
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
(c)
Movement of deferred taxes by types of temporary differences during the year
USD million
1 January
2024
Recognised
in profit
or loss
Recognised
in other
comprehen-
sive income
Currency
translation
31 December
2024
Property, plant and equipment
(1,123)
(32)
(244)
40
(1,359)
Inventories
25
9
−
−
34
Trade and other receivables
26
7
−
−
33
Trade and other payables and
advances received
33
7
−
(1)
39
Tax loss carry-forwards
72
20
−
(1)
91
Others
240
130
−
(8)
362
(727)
141
(244)
30
(800)
USD million
1 January
2023
Recognised
in profit
or loss
Recognised
in other
comprehen-
sive income
Currency
translation
31 December
2023
Property, plant and equipment
(1,305)
(17)
−
199
(1,123)
Inventories
21
5
−
(1)
25
Trade and other receivables
28
(1)
−
(1)
26
Trade and other payables and
advances received
26
9
−
(2)
33
Tax loss carry-forwards
143
(68)
−
(3)
72
Others
(37)
282
−
(5)
240
(1,124)
210
−
187
(727)
Recognised deferred tax assets related to tax losses expire in the following years:
31 December
31 December
Year of expiry
2024
2023
USD million
USD million
Without expiry
91
72
91
72
Others comprise mostly deferred tax assets/(liabilities) arising on foreign exchange differences attributable
to various financial instruments.
(d)
Unrecognised deferred taxes
At 31 December 2024 and 2023 the Group has not recognized deferred tax in respect to temporary differences
associated with investments in subsidiaries as the Group is able to control the timing of reversal of those
investments and does not intend to reverse them in the foreseeable future.
At 31 December 2024 and 2023 the Group has not recognized deferred tax in respect to temporary differences
associated with investments in associates and joint ventures as both distribution of dividends and profit on
sales are non-taxable.
Deferred tax assets have not been recognised in respect of the following items:
31 December
31 December
2024
2023
USD million
USD million
Deductible temporary differences
1,160
1,086
Tax loss carry-forwards
1,004
841
2,164
1,927
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
Should the income tax rate in Russian Federation remained at the level of 20% starting from 1 January 2025,
the amount of unrecognised deferred tax assets related to deductible temporary differences would have
comprised USD 1,037 mln and the amount of tax loss carry-forwards would have comprised USD 882 mln.
Deferred tax assets have not been recognised in respect of these items because it is not probable that future
taxable profits will be available against which the Group can utilise the benefits therefrom. Tax losses expire
in the following years:
31 December
31 December
Year of expiry
2024
2023
USD million
USD million
Without expiry
1,000
841
From 6 to 10 years
4
−
1,004
841
(e)
Current taxation in the consolidated statement of financial position represents
31 December
31 December
2024
2023
USD million
USD million
Net income tax payable / (receivable) at the beginning of the year
34
(18)
Income tax for the year (including windfall tax)
362
370
Income tax paid (including windfall tax)
(367)
(365)
Tax provision
(4)
−
Translation difference
2
47
27
34
Represented by:
Income tax payable (note 15(d))
61
48
Income tax receivable
(34)
(14)
Net income tax payable
27
34
(f)
Windfall tax
On 4 August 2023, Federal Law No. 414-FZ On Windfall Tax was adopted. The Law established the
procedure for determining and paying a one-off tax on excess (windfall) profits.
The tax base for windfall tax was determined as the amount by which the arithmetic mean of profits for
2021-2022 exceeds that for 2018-2019. The tax rate was 10%. The tax was payable before 28 January 2024.
The Law also provided for the option of an early security payment to be made between 1 October and
30 November 2023. The security payment formed a tax credit that the taxpayer could use to reduce the tax.
The amount of such tax credit could not exceed ½ of the amount of tax payable. This effectively allowed
reducing the tax rate to 5%.
The Group has applied the option of reducing the tax amount by making an early security payment. Therefore,
in 2023 the Group recognized a windfall tax liability in the amount of USD 58 million within both current
income tax expense and current tax liability, which has been settled with the security payment advance at
31 December 2023.
11.
Property, plant and equipment
(a)
Accounting policy
(i)
Recognition and measurement
Until 1 January 2016 all items of property, plant and equipment were measured at cost less accumulated
depreciation and impairment losses. The cost of property, plant and equipment at 1 January 2004, the date of
transition to IFRSs, was determined by reference to its fair value at that date. Since 1 January 2016 the
Group’s hydro assets are measured at a revalued amount.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
251
250
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed
assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the
asset to a working condition for its intended use, the costs of dismantling and removing the items and
restoring the site on which they are located and capitalised borrowing costs. Purchased software that is
integral to the functionality of the related equipment is capitalised as part of that equipment.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as
separate items (major components) of property, plant and equipment.
The cost of periodic relining of electrolysers is capitalised and depreciated over the expected production period.
Gains or losses on disposal of an item of property, plant and equipment are determined by comparing the
proceeds from disposal with the carrying amount of property, plant and equipment, and are recognised net
within gain/(loss) on disposal of property, plant and equipment in profit or loss.
Hydro assets are a class of property, plant and equipment with unique nature and use in their hydropower
plants. The Group’s hydro assets are measured at a revalued amount, being their fair value at the date of the
revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Revaluations are made with sufficient regularity to ensure that the carrying amount does not differ materially
from that which would be determined using fair value at the end of the reporting period.
The valuation analysis is primarily based on the cost approach to determine depreciated replacement cost.
This method considers the cost to reproduce or replace the property, plant and equipment, adjusted for
physical depreciation, functional and economic obsolescence.
A revaluation increase on hydro assets is recognised directly under the heading of revaluation surplus in other
comprehensive income. However, the increase is recognised in profit or loss to the extent that it reverses a
revaluation decrease of the same asset previously recognised in profit or loss. A revaluation decrease on
hydro assets is recognised in profit or loss. However, the decrease is recognised in other comprehensive
income to the extent of any credit balance existing in the revaluation surplus.
This policy requires management to make estimates and assumptions regarding both costs, as there is no
active market for used assets of that type, and macroeconomic indicators to assess economic obsolescence
which are subject to risk and uncertainty; hence there is a possibility that changes in circumstances will alter
these estimates, which may impact the fair value of hydro assets. In such circumstances, the fair value of
hydro assets may be lower with any consequential decrease in revaluation reserve recognised through other
comprehensive income.
A class of assets may be revalued on a rolling basis provided that revaluations of the class of assets are
completed within a short period and provided the revaluations are kept up to date.
(ii)
Subsequent costs
The cost of replacing a part of an item of property, plant and equipment is recognised in the carrying amount
of the item if it is probable that the future economic benefits embodied within the part will flow to the Group
and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of
the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.
(iii)
Exploration and evaluation assets
Exploration and evaluation activities involve the search for mineral resources, the determination of technical
feasibility and the assessment of commercial viability of an identified resource. Exploration and evaluation
activities include:
Researching and analysing historical exploration data;
Gathering exploration data through topographical, geochemical and geophysical studies;
Exploratory drilling, trenching and sampling;
Determining and examining the volume and grade of the resource;
Surveying transportation and infrastructure requirements; and
Conducting market and finance studies.
Administration costs that are not directly attributable to a specific exploration area are charged to profit or loss.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
License costs paid in connection with a right to explore in an existing exploration area are capitalised and
amortised over the term of the permit.
Exploration and evaluation expenditure is capitalised as exploration and evaluation assets when it is expected
that expenditure related to an area of interest will be recouped by future exploitation, sale, or, at the reporting
date, the exploration and evaluation activities have not reached a stage that permits a reasonable assessment of
the existence of commercially recoverable ore reserves. Capitalised exploration and evaluation expenditure is
recorded as a component of property, plant and equipment at cost less impairment losses. As the asset is not
available for use, it is not depreciated. All capitalised exploration and evaluation expenditure is monitored for
indications of impairment. Where there are indicators of potential impairment, an assessment is performed for
each area of interest in conjunction with the group of operating assets (representing a cash-generating unit,
CGU) to which the exploration is attributed. Exploration areas at which reserves have been discovered but
which require major capital expenditure before production can begin are continually evaluated to ensure that
commercial quantities of reserves exist or to ensure that additional exploration work is underway or planned.
To the extent that capitalised expenditure is not expected to be recovered it is charged to profit or loss.
Exploration and evaluation assets are transferred to mining property, plant and equipment or intangible assets
when development is sanctioned.
(iv)
Stripping costs
Expenditure relating to the stripping of overburden layers of ore, including estimated site restoration costs,
is included in the cost of production in the period in which it is incurred.
However, to the extent the benefit is improved access to ore, the Group recognises these costs as a non-current
asset, if only: (a) it is probable that the future economic benefit (improved access to the ore body) associated
with the stripping activity will flow to the entity; (b) the entity can identify the component of the ore body
for which access has been improved; and (c) the costs relating to the stripping activity associated with that
component can be measured reliably.
(v)
Mining assets
Mining assets are recorded as construction in progress and transferred to mining property, plant and
equipment when a new mine reaches commercial production.
Mining assets include expenditure incurred for acquiring mineral and development rights and developing
new mining operations.
Mining assets include interest capitalised during the construction period, when financed by borrowings.
(vi)
Depreciation
The carrying amounts of property, plant and equipment (including initial and any subsequent capital
expenditure) are depreciated to their estimated residual value over the estimated useful lives of the specific
assets concerned, or the estimated life of the associated mine or mineral lease, if shorter. Estimates of residual
values and useful lives are reassessed annually and any change in estimate is taken into account in the
determination of remaining depreciation charges. Leased assets are depreciated over the shorter of the lease
term and their useful lives. Land is not depreciated.
Any accumulated depreciation at the date of the revaluation is eliminated against the gross amount of the
assets, and the net amount is restated to the revalued amount of the asset.
The property, plant and equipment is depreciated on a straight-line or units of production basis over the
respective estimated useful lives as follows:
Hydro assets
predominantly 38 to 100 years;
Buildings and constructions
10 to 50 years;
Machinery and equipment
5 to 40 years;
Electrolysers
4 to 15 years;
Mining assets
Units of production on proved and probable reserves;
Other
1 to 30 years.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
253
252
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
(b)
Disclosure
USD million
Land and
buildings
Machinery
and
equipment
Electrolysers
Hydro
assets
Mining
assets
Construction
in progress
Other
Total
Cost
1 January 2023
5,441
8,688
3,298
4,166
582
3,890
377
26,442
Additions
25
68
−
−
49
1,403
12
1,557
Acquired through business
combinations
−
5
−
−
−
−
−
5
Disposals
(231)
(374)
(1,938)
−
(42)
(88)
(6)
(2,679)
Transfers
416
496
179
15
19
(1,156)
31
−
Translation difference
(458)
(448)
(31)
(900)
(98)
(347)
(42)
(2,324)
At 31 December 2023
5,193
8,435
1,508
3,281
510
3,702
372
23,001
Additions
41
116
1
−
27
1,885
3
2,073
Disposals
(21)
(93)
(137)
(1)
(53)
(38)
(8)
(351)
Transfers
676
662
490
32
−
(1,931)
71
−
Revaluation of hydro assets as at
31 December2024
−
−
−
237
−
−
−
237
Translation difference
(261)
(259)
(23)
(394)
(46)
(199)
(24)
(1,206)
At 31 December 2024
5,628
8,861
1,839
3,155
438
3,419
414
23,754
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
USD million
Land and
buildings
Machinery
and
equipment
Electrolysers
Hydro assets
Mining
assets
Construction
in progress
Other
Total
Depreciation and impairment
losses
1 January 2023
(3,182)
(6,944)
(2,814)
−
(538)
(1,061)
(296)
(14,835)
Depreciation charge
(157)
(314)
(175)
(91)
(10)
−
(17)
(764)
Impairment losses
(2)
(74)
(22)
−
(25)
(177)
(4)
(304)
Disposals
221
350
1,938
−
6
46
4
2,565
Transfers and reclassifications
(91)
−
−
−
−
92
(1)
−
Translation difference
234
300
26
5
91
125
28
809
At 31 December 2023
(2,977)
(6,682)
(1,047)
(86)
(476)
(975)
(286)
(12,529)
Depreciation charge
(179)
(304)
(188)
(84)
7
−
(19)
(767)
(Impairment losses) / reversal of
impairment
(110)
(190)
(93)
−
18
(235)
(7)
(617)
Disposals
9
80
137
−
−
2
7
235
Transfers and reclassifications
(54)
−
−
−
−
54
−
−
Revaluation of hydro assets as at
31 December2024
−
−
−
152
−
−
−
152
Translation difference
153
191
20
18
43
57
15
497
At 31 December 2024
(3,158)
(6,905)
(1,171)
−
(408)
(1,097)
(290)
(13,029)
Net book value
At 1 January 2023
2,259
1,744
484
4,166
44
2,829
81
11,607
At 31 December 2023
2,216
1,753
461
3,195
34
2,727
86
10,472
At 31 December 2024
2,470
1,956
668
3,155
30
2,322
124
10,725
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
In 2023 and 2024 the Group wrote off several fully depreciated objects of property, plant and equipment.
Depreciation expense of USD 684 million (2023: USD 707 million) has been charged to cost of goods sold,
USD 10 million (2023: USD 6 million) to distribution expenses and USD 29 million (2023: USD 30 million)
to administrative expenses.
Interest capitalised for the years ended 31 December 2024 and 31 December 2023 was USD 109 million and
USD 60 million, respectively. The average capitalisation rate was 9.63% (2023: 7.49%).
Included in construction in progress at 31 December 2024 and 31 December 2023 are advances to suppliers of
property, plant and equipment of USD 458 million and USD 249 million, respectively.
(c)
Impairment
In accordance with the Group’s accounting policies, each asset or cash generating unit is evaluated every
reporting period to determine whether there are any indications of impairment. If any such indication exists, a
formal estimate of recoverable amount is performed and an impairment loss recognised to the extent that the
carrying amount exceeds the recoverable amount. The recoverable amount of an asset or cash generating group
of assets is measured at the higher of fair value less costs to sell and value in use.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction in the principal (or most advantageous) market at the measurement date under current market
conditions (ie an exit price) regardless of whether that price is directly observable or estimated using another
valuation technique. The Group generally determines fair value of the asset or cash generating unit as the
present value of the estimated future cash flows expected to arise from the continued use of the asset, including
any expansion prospects, and its eventual disposal.
Value in use is also generally determined as the present value of the estimated future cash flows, but only those
expected to arise from the continued use of the asset in its present form and its eventual disposal. Present values
are determined using a risk-adjusted pre-tax discount rate appropriate to the risks inherent in the asset. Future
cash flow estimates are based on expected production and sales volumes, commodity prices (considering
current and historical prices, price trends and related factors), bauxite reserve estimate, operating costs,
restoration and rehabilitation costs and future capital expenditure.
Bauxite reserves are estimates of the amount of product that can be economically and legally extracted from
the Group’s properties. In order to calculate reserves, estimates and assumptions are required about a range of
geological, technical and economic factors, including quantities, grades, production techniques, recovery rates,
production costs, transport costs, commodity demand, commodity prices and exchange rates. The Group
determines ore reserves under the Australasian Code for Reporting of Mineral Resources and Ore Reserves
September 1999, known as the JORC Code. The JORC Code requires the use of reasonable investment
assumptions to calculate reserves.
Management identified that due to fluctuations of aluminium prices, increase of oil and gas prices, fluctuations
of coal sale prices and overall market instability impairment loss may be recognised for a number of cash-
generating units as well as previously recognised impairment loss may require reversal. For alumina cash
generating units, major influence was from unfavourable dynamics in prices of energy resources being a
significant part of cash cost.
For the purposes of impairment testing, value in use of each cash generating unit was determined by
discounting expected future net cash flows of the cash generating unit. Values assigned to key assumptions
and estimates used to measure the units’ recoverable amount was based on external sources of information and
historical data. Management believes that the values assigned to the key assumptions and estimates represented
the most realistic assessment of future trends.
Metals
At 31 December 2024 and 31 December 2023 management identified several indicators that a number of the
Group’s CGUs may be impaired or that previously recognised impairment losses may need to be reversed.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
255
254
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
Based on results of impairment testing as at 31 December 2024, management has concluded that a reversal of
previously recognised impairment loss relating to property, plant and equipment should be recognised in these
consolidated financial statements in respect of PGLZ, RUSAL BAZ and RUSAL UAZ in the amount of
USD 47 million. Additionally management concluded that at the same date an impairment loss relating to
property, plant and equipment of Taishet Aluminium Smelter, UC RUSAL Anode Plant, RUSAL KAZ and
RUSAL Sayanal in the amount of USD 402 million should be recognised in these consolidated financial
statements.
Based on results of impairment testing as at 31 December 2023, management has concluded that a reversal of
previously recognised impairment loss relating to property, plant and equipment should be recognised in these
consolidated financial statements in respect of RUSAL Sayanal, Kremny and Rusal Silicon Ural in the amount
of USD 117 million. Additionally management concluded that at the same date an impairment loss relating to
property, plant and equipment of Kubikenborg Aluminium (Kubal) and Taishet aluminium smelter in the
amount of USD 270 million should be recognised in these consolidated financial statements.
Assumptions used to determine the recoverable amount of the cash generating units are the same as disclosed
in note 12(d). The pre-tax discount rates applied to the above mentioned cash generating units, estimated in
nominal terms based on an industry weighted average cost of capital, are presented in the table below.
Year ended 31 December
2024
2023
Taishet aluminium smelter
19.8%
18.7%
RUSAL KAZ
21.6%
20.1%
RUSAL Sayanal
24.5%
21.9%
PGLZ
25.9%
16.6%
Kremny
21.1%
19.7%
RUSAL Silicon Ural
21.1%
19.8%
Kubal
14.3%
14.5%
The recoverable amounts of a number of the cash generating units tested for impairment are particularly
sensitive to changes in forecast aluminium and alumina prices, foreign exchange rates and applicable discount
rates.
The results of impairment testing of Taishet Aluminium Smelter and UC Rusal Anode Plant are particularly
sensitive to the following key assumptions:
Five percent reduction in the projected aluminium price level will result in a decrease in the recoverable
amount of Taishet Aluminium Smelter and UC Rusal Anode Plant and will lead to an additional
impairment in the total amount of USD 743 million;
One percent increase in the discount rate applied will result in a decrease in the recoverable amount of
Taishet Aluminium Smelter and UC Rusal Anode Plant and will lead to an additional impairment in the
total amount of USD 478 million.
Additionally, management identified specific items of property, plant and equipment that are no longer in use
and therefore are not considered to be recoverable amounting to USD 173 million at 31 December 2024 (2023:
USD 111 million). These assets have been impaired in full. No further impairments of property, plant and
equipment or reversal of previously recorded impairment were identified.
Power
At 31 December 2024 and 2023 management identified several indicators that property, plant and equipment
of the Coal CHPs may be impaired.
Based on results of impairment testing as at 31 December 2024 and 31 December 2023, management
concluded that no impairment losses should be recognised.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
The following key assumptions were used to determine the recoverable amount of the Coal CHPs CGU:
Year ended 31 December
2024
2023
Electricity sales volumes in 2026/2025
39 mln MWh
36 mln MWh
Electricity sales prices in 2026/2025
USD 11-27
(RUB 1,077-2,724)
USD 7-27
(RUB 613-2,420)
Electricity sales prices growth till 2035/2034
71%-90%
42%-50%
Sales volumes of heat in 2026-2035/2025-2034
20 mln Gcal
20 mln Gcal
Heat tariffs in 2026/2025
USD 16 (RUB 1,607)
USD 16 (RUB 1,453)
Tariffs growth till 2035/2034
100%
48%
Pre-tax discount rate
13.9%-24.5%
15.6%-20.4%
The recoverable amount of Coal CHP CGU is particularly sensitive to changes in forecast electricity and coal
sales prices, forecast of sales volumes as well as applicable discount rates.
Additionally, management identified specific items of property, plant and equipment that are not considered
to be recoverable amounting to USD 81 million (2023: USD 41 million). No further impairment of property,
plant and equipment or reversal of previously recorded impairments was identified.
(d)
Security
The carrying value of property, plant and equipment pledged under the loan agreements was USD 112 million
at 31 December 2024 (31 December 2023: USD 125 million) (note 17).
(e)
Hydro assets
As at 31 December 2024 the independent appraiser estimated the fair value of hydro assets at USD 3,155 million.
As at 31 December 2023 the valuation by external independent appraiser was not performed because based on
management’s analysis, the fair value of hydro assets approximated their carrying amount at that date.
The valuation analysis as at 31 December 2024 was primarily based on the cost approach to determine
depreciated replacement cost as it is the most reliable method to estimate value for assets that do not have an
active market and do not generate an identifiable revenue stream by asset. This method considers the cost to
reproduce or replace the property, plant and equipment, adjusted for physical depreciation, functional and
economic obsolescence.
Depreciated replacement cost was estimated based on internal sources and, where available, analysis of the
Russian and international markets for similar property, plant and equipment. Various market data were
collected from published information, catalogues, statistical data etc.
In addition, cash flow testing was conducted to identify if there is any economic obsolescence of the hydro
assets. Forecasts of net cash flows were determined based on the actual results for the preceding years and
approved budgets. Based on the analysis results as at 31 December 2024 economic obsolescence of Onda HPP
was recognised and included into results of valuation analysis. As at 31 December 2023 there was no economic
obsolescence.
The fair value measurement for hydro assets have been categorised as Level 3 fair values based on the inputs
to the valuation techniques used.
If the cost model is applied, net book value of hydro assets as at 31 December 2024 would be USD 312 million
(31 December 2023: USD 328 million).
(f)
Leases
The Group assesses whether a contract is or contains a lease based on whether the contract conveys a right to
control the use of an identified asset for a period of time in exchange for consideration. At inception or on
reassessment or modification of a contract that contains a lease component, the Group allocates the
consideration in the contract to each lease and non-lease component on the basis of their relative stand-alone
prices. However, for the leases of properties in which Group acts as a lessee, the Group does not separate non-
lease components and account for the lease and non-lease components as a single lease component.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
257
256
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
The Group applies judgement to determine the lease term for some lease contracts in which it is a lessee that
include renewal options, the assessment of whether the Group is reasonably certain to exercise such options
impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets
recognised.
In determining the enforceable period (i.e. the minimum lease term), the Group considers whether both it and
the lessor has a right to terminate the lease without permission from the other party and, if so, whether that
termination would result in more than an insignificant penalty. If a more than insignificant penalty exists, then
the enforceable period extends until the point at which a no more than an insignificant penalty exists.
The Group leases many assets, including land, properties and production equipment. The Group recognises a
right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially
measured at cost and subsequently measured at cost less any accumulated depreciation and impairment losses
and adjusted for certain remeasurements of the lease liability as required by IFRS 16.
The cost comprises the initial amount of the lease liability adjusted for any lease payments made at or before
the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove
the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives
received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date
to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the
end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option.
In that case the right-of-use asset is depreciated over the useful life of the underlying asset, which is determined
on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced
by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The Group presents right-of-use assets as part of property plant and equipment in the same line item as it
presents underlying assets of the same nature that it owns. Additions to right-of-use assets were in the amount
of USD 20 million during the year ended 31 December 2024 (31 December 2023: USD 28 million).
The carrying amounts of right-of-use assets are presented below.
Property, plant and equipment
USD million
Land and
buildings
Machinery and
equipment
Total
Balance at 1 January 2024
43
13
56
Balance at 31 December 2024
37
24
61
Total depreciation charges related to the right-of-use assets for the year ended 31 December 2024 amount to
USD 18 million (31 December 2023: USD 19 million).
There was no impairment of right-of-use assets during the year ended 31 December 2024 (31 December 2023:
USD 3 million reversed). The Group’s total cash outflow for leases was in the amount of USD 29 million for
the year ended 31 December 2024 (31 December 2023: USD 24 million).
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate
as the discount rate.
In accordance with IFRS 16 variable payments which do not depend on index or rate, e.g. which do not reflect
changes in market rental rates, should not be included in the measurement of lease liability. In respect of
municipal or federal land leases where lease payments are based on cadastral value of the land plot and do not
change until the next revision of that value or the applicable rates (or both) by the authorities, the Group has
determined that, under the current revision mechanism, the land lease payments cannot be considered as either
variable that depend on index or rate or in-substance fixed, and therefore these payments are not included in
the measurement of the lease liability. Future cash outflows to which the Group is potentially exposed that are
not recognised in right-to-use assets and are not reflected in the measurement of lease liabilities and which
arise from variable lease payments not linked to index or rate are in the amount of USD 159 million as at
31 December 2024 (31 December 2023: USD 136 million).
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease
payment made. It is remeasured when there is a change in future lease payments arising from a change in an
index or rate, a change in the estimate of the amount expected to be payable under a residual value guarantee,
or as appropriate, changes in the assessment of whether a purchase or extension option is reasonably certain to
be exercised or a termination option is reasonably certain not to be exercised.
The Group presents lease liabilities as part of other payables and other non-current liabilities in the statement
of financial position depending on the period to which future lease payments relate. The total non-current part of
lease liabilities as at 31 December 2024 amounted to USD 51 million (31 December 2023: USD 49 million).
Total interest costs on leases recognised for the year ended 31 December 2024 amount to USD 7 million
(31 December 2023: USD 6 million).
The Group does not recognise right-of-use assets and lease liabilities for some leases of low-value assets
and short-term leases. The Group recognises the lease payments associated with these leases as an expense on
a straight-line basis over the lease term. The expense relating to short-term and low-value leases in the amount
of USD 17 million is included in cost of sales or administrative expenses depending on type of underlying
asset for the year ended 31 December 2024 (31 December 2023: USD 21 million).
When the Group is an intermediate lessor the sub-leases are classified with reference to the right-of the use
asset arising from the head lease, not with reference to the underlying asset.
12.
Goodwill and intangible assets
(a)
Accounting policy
(i)
Goodwill
On the acquisition of a subsidiary that comprises a business, the identifiable assets, liabilities and contingent
liabilities of the acquired business (or interest in a business) are recognised at their fair values. Where the fair
values of assumed contingent liabilities cannot be measured reliably, no liability is recognised but the
contingent liability is disclosed in the same manner as for other contingent liabilities.
The Group accounts for business combinations using the acquisition method when the acquired set of activities
and assets meets the definition of a business and control is transferred to the Group. In determining whether a
particular set of activities and assets is a business, the Group assesses whether the set of assets and activities
acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability
to produce outputs.
The Group has an option to apply a ‘concentration test’ that permits a simplified assessment of whether an
acquired set of activities and assets is not a business. The optional concentration test is met if substantially all
of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar
identifiable assets. If concentration test is met the acquired set of activities and assets is not a business.
Business combinations are accounted for using the acquisition method as at the acquisition date, which is the
date on which control is transferred to the Group.
Goodwill arises when the cost of acquisition exceeds the Group’s interest in the net fair value of identifiable
net assets acquired. The Group measures goodwill at the acquisition date as the fair value of the consideration
transferred; plus the recognised amount of any non-controlling interests in the acquiree less the net recognised
amount (generally fair value) of the identifiable assets acquired and liabilities assumed. The consideration
transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are
generally recognised in profit or loss. Transaction costs, other than those associated with the issue of debt or
equity securities, that the Group incurs in connection with a business combination are expensed as incurred.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
259
258
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
Goodwill is not amortised but is tested for impairment annually. For this purpose, goodwill arising on a
business combination is allocated to the cash-generating units expected to benefit from the acquisition and any
impairment loss recognised is not reversed even where circumstances indicate a recovery in value.
When the Group’s share in the fair value of identifiable net assets acquired exceeds the cost of acquisition, the
difference is recognised immediately in the statement of income.
In respect of associates or joint ventures, the carrying amount of goodwill is included in the carrying amount
of the interest in the associate and joint venture and the investment as a whole is tested for impairment
whenever there is objective evidence of impairment. Any impairment loss is allocated to the carrying amount
of the interest in the associate and joint venture.
(ii)
Research and development
Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical
knowledge and understanding, is recognised in profit or loss when incurred.
Development activities involve a plan or design for the production of new or substantially improved products
and processes. Development expenditure is capitalised only if development costs can be measured reliably, the
product or process is technically and commercially feasible, future economic benefits are probable and the
Group intends to and has sufficient resources to complete development and to use or sell the asset. The
expenditure capitalised includes the cost of materials, direct labour and overhead costs that are directly
attributable to preparing the asset for its intended use and capitalised borrowing costs. Other development
expenditure is recognised in profit or loss when incurred.
Capitalised development expenditure is measured at cost less accumulated amortisation and accumulated
impairment losses.
(iii)
Other intangible assets
Other intangible assets that are acquired by the Group, which have finite useful lives, are measured at cost less
accumulated amortisation and accumulated impairment losses.
(iv)
Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the
specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill
and brands, is recognised in profit or loss when incurred.
(v)
Amortisation
Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of intangible
assets, other than goodwill, from the date that they are available for use. The estimated useful lives are as
follows:
Software
5 years;
Other intangible assets
2-8 years.
The amortisation method, useful lives and residual values are reviewed at each financial year end and adjusted
if appropriate.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
(b)
Disclosure
USD million
Goodwill
Other intangible
assets
Total
Cost
Balance at 1 January 2023
2,669
653
3,322
Additions
6
37
43
Disposals
−
(8)
(8)
Foreign currency translation
(292)
(33)
(325)
Balance at 31 December 2023
2,383
649
3,032
Additions
−
49
49
Disposals
(10)
(13)
(23)
Foreign currency translation
(114)
(16)
(130)
Balance at 31 December 2024
2,259
669
2,928
Amortisation and impairment losses
Balance at 1 January 2023
(449)
(456)
(905)
Amortisation charge
−
(22)
(22)
(Impairment)/reversal of impairment
(48)
3
(45)
Disposals
−
7
7
Foreign currency translation
−
19
19
Balance at 31 December 2023
(497)
(449)
(946)
Amortisation charge
−
(30)
(30)
(Impairment)/reversal of impairment
(51)
1
(50)
Disposals
−
9
9
Foreign currency translation
−
10
10
Balance at 31 December 2024
(548)
(459)
(1,007)
Net book value
At 1 January 2023
2,220
197
2,417
At 31 December 2023
1,886
200
2,086
At 31 December 2024
1,711
210
1,921
(c)
Amortisation charge
The amortisation charge is included in cost of sales and administrative expenses in consolidated statement of
profit or loss and other comprehensive income.
(d)
Impairment testing of goodwill and other intangible assets
For the purposes of impairment testing, goodwill is allocated to following CGUs listed below. These units
represent the lowest level within the Group at which the goodwill is monitored for internal management purposes.
The aggregate carrying amounts of goodwill allocated to each business, and the related impairment losses
recognised, are as follows:
Allocated
goodwill
Accumulated
impairment
loss
Allocated
goodwill
Accumulated
impairment
loss
USD million
2024
2024
2023
2023
Aluminium Group of CGUs (Metals)
2,014
(548)
2,156
(497)
Angara HPPs (Power)
245
−
227
−
2,259
(548)
2,383
(497)
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
261
260
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
Metals
The Aluminium Group of CGUs represents the lowest level within Metals segment at which goodwill is
monitored for internal management purposes. The recoverable amount represents value in use as determined
by discounting the future cash flows generated from the continuing use of the plants within UC RUSAL’s
aluminium segment. Management performs impairment testing of goodwill annually at 31 December of the
respective calendar year.
Similar considerations to those described above in respect of assessing the recoverable amount of property,
plant and equipment apply to goodwill.
At 31 December 2024, management analysed changes in the economic environment and developments in the
aluminium industry and the Group’s operations since 31 December 2023 and performed an impairment test
for goodwill at 31 December 2024 using the following assumptions to determine the recoverable amount of
the Aluminium Group of CGUs:
Total production was estimated based on average sustainable production levels of 3.8 million metric
tonnes of primary aluminium, of 5.5 million metric tonnes of alumina and of 19 million metric tonnes
of bauxite. Bauxite and alumina will be used primarily internally for production of primary aluminium;
The aluminium and alumina prices were based on the long-term aluminium and alumina price outlook
derived from available industry and market sources and were as follows:
2025
2026
2027
2028
2029
Aluminium sales prices, based on the long-term
aluminium price outlook, USD per tonne
2,566
2,583
2,586
2,620
2,657
Alumina sales prices, based on the long-term
alumina price outlook, USD per tonne
530
418
409
415
430
Nominal foreign currency exchange rates,
RUB per 1 USD
102.52
106.36
109.26
114.04
117.90
Inflation in RUB
10.38%
8.91%
7.46%
6.46%
5.46%
Inflation in USD
2.41%
2.36%
2.39%
2.0%
2.0%
Operating costs were projected based on the historical performance adjusted for inflation. Nominal
foreign currency exchange rates applied to convert operating costs of the Group denominated in RUB
into USD and inflation in RUB and USD assumed in determining recoverable amounts were as above;
The pre-tax discount rate was estimated in nominal terms based on the weighted average cost of capital
basis and was 21.72%;
A terminal value was derived following the forecast period assuming a 2.0% annual growth rate.
Values assigned to key assumptions and estimates used to measure the units’ recoverable amount were based
on external sources of information and historic data. Management believes that the values assigned to the key
assumptions and estimates represented the most realistic assessment of future trends. The results were
particularly sensitive to the following key assumptions:
A 5% reduction in the projected aluminium and alumina price levels would result in a decrease in the
recoverable amount by 13% but would not lead to an impairment;
A 5% increase in the projected level of electricity costs in the aluminium production would have resulted
in a 5% decrease in the recoverable amount but would not lead to an impairment;
A 1% increase in the discount rate would have resulted in a 6% decrease in the recoverable amount but
would not lead to an impairment.
Based on results of impairment testing of goodwill, management concluded that no impairment regarding
Aluminium Group of CGUs should be recorded in the consolidated financial statements as at 31 December
2024.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
At 31 December 2023, management analysed changes in the economic environment and developments in the
aluminium industry and the Group’s operations since 31 December 2022 and performed an impairment test
for goodwill at 31 December 2023 using the following assumptions to determine the recoverable amount of
the Aluminium Group of CGUs:
Total production was estimated based on average sustainable production levels of 4.0 million metric
tonnes of primary aluminium, of 5.6 million metric tonnes of alumina and of 16.2 million metric tonnes
of bauxite. Bauxite and alumina will be used primarily internally for production of primary aluminium;
The aluminium and alumina prices were based on the long-term aluminium and alumina price outlook
derived from available industry and market sources and were as follows:
2024
2025
2026
2027
2028
Aluminium sales prices, based on the long-term
aluminium price outlook, USD per tonne
2,283
2,434
2,538
2,575
2,529
Alumina sales prices, based on the long-term
alumina price outlook, USD per tonne
343
345
353
364
370
Nominal foreign currency exchange rates,
RUB per 1USD
91.12
92.36
93.98
94.56
95.14
Inflation in RUB
7.0%
5.3%
4.7%
4.2%
4.0%
Inflation in USD
2.8%
2.3%
2.3%
2.0%
2.0%
Operating costs were projected based on the historical performance adjusted for inflation. Nominal
foreign currency exchange rates applied to convert operating costs of the Group denominated in RUB
into USD and inflation in RUB and USD assumed in determining recoverable amounts were as above;
The pre-tax discount rate was estimated in nominal terms based on the weighted average cost of capital
basis and was 20.28%;
A terminal value was derived following the forecast period assuming a 2.0% annual growth rate.
Values assigned to key assumptions and estimates used to measure the units’ recoverable amount were based
on external sources of information and historic data. Management believes that the values assigned to the key
assumptions and estimates represented the most realistic assessment of future trends. The results were
particularly sensitive to the following key assumptions:
A 5% reduction in the projected aluminium and alumina price levels would result in a decrease in the
recoverable amount by 18% but would not lead to an impairment;
A 5% increase in the projected level of electricity costs in the aluminium production would have resulted
in a 8% decrease in the recoverable amount but would not lead to an impairment;
A 1% increase in the discount rate would have resulted in a 8% decrease in the recoverable amount but
would not lead to an impairment.
Based on results of impairment testing of goodwill, management concluded that no impairment regarding
Aluminium Group of CGUs should be recorded in the consolidated financial statements as at 31 December
2023.
Power
At Power segment goodwill primarily resulted from the acquisition of Angara HPPs. For the purposes of
impairment testing, goodwill is allocated to the Angara HPPs CGU. It represents the lowest level within the
Group at which goodwill is monitored for internal management purposes.
Management performs impairment testing of goodwill annually at 31 December of the respective calendar year.
The recoverable amount of Angara HPPs in 2024 and 2023 was determined by reference to their value in use
derived by discounting of the future cash flows generated from continuing use of production facilities.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
263
262
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
The following key assumptions were used to determine the recoverable amount of the Angara HPPs
cash-generating unit at 31 December 2024:
The sales volumes were projected based on the approved budgets for 2025. In particular, the sales volumes
of electricity in 2025 were planned at the level of 56 million MWh with a decline by 11% till 2034;
Sales prices were based on the long-term price outlook derived from the available industry and market
sources. The prices for electricity were estimated at the levels of USD 0.7-13.2 (RUB 69-1,339) per
MWh depending on market segment in 2025 and increased by 64-78% respectively till 2034. Operating
costs were projected based on the historical performance and the anticipated increase during the
projected period was in line with inflation;
The pre-tax discount rate was estimated in nominal terms based on the weighted average cost of capital
amounted to 13.9%-24.5%;
A terminal value was derived following the forecast period assuming a 4% annual growth rate.
The following key assumptions were used to determine the recoverable amount of the Angara HPPs
cash-generating unit at 31 December 2023:
The sales volumes were projected based on the approved budgets for 2024. In particular, the sales volumes
of electricity in 2024 were planned at the level of 58 million MWh with a decline by 15% till 2033;
Sales prices were based on the long-term price outlook derived from the available industry and market
sources. The prices for electricity were estimated at the levels of USD 0.6-12.0 (RUB 57-1,526) per
MWh depending on market segment in 2024 and increased by 43-56% respectively till 2033. Operating
costs were projected based on the historical performance and the anticipated increase during the
projected period was in line with inflation;
The pre-tax discount rate was estimated in nominal terms based on the weighted average cost of capital
amounted to 15.6%-20.4%;
A terminal value was derived following the forecast period assuming a 4% annual growth rate.
Reasonable possible changes in key assumptions did not lead to an impairment in either 2024 or 2023.
13.
Interests in associates and joint ventures
An associate is an entity in which the Group has significant influence, but not control or joint control, over its
management, including participation in the financial and operating policy decisions.
A joint venture is an arrangement whereby the Group and other parties contractually agree to share control of
the arrangement and have rights to the net assets of the arrangement.
An investment in an associate or a joint venture is accounted for in the consolidated financial statements under
the equity method, unless it is classified as held for sale (or included in a disposal group that is classified as
held for sale). Under the equity method, the investment is initially recorded at cost, adjusted for any excess of
the Group’s share of the acquisition-date fair values of the investee’s identifiable net assets over the cost of the
investment (if any). Thereafter, the investment is adjusted for the post acquisition change in the Group’s share
of the investee’s net assets and any impairment losses relating to the investment. Any acquisition-date excess
over cost, the Group’s share of the post-acquisition, post-tax results of the investees and any impairment losses
for the year are recognised in the consolidated statement of profit or loss and other comprehensive income
within profit or loss, whereas the Group’s share of the post-acquisition post-tax items of the investees’ other
comprehensive income is recognised in the other comprehensive income, the Group’s share of the post-
acquisition results recorded directly in the statement of changes in equity is recognized in the consolidated
statement of changes in equity as the share of other changes in equity of associate.
When the Group’s share of losses exceeds its interest in the associate or the joint venture, the Group’s interest
is reduced to nil and recognition of further losses is discontinued except to the extent that the Group has
incurred legal or constructive obligations or made payments on behalf of the investee.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
Unrealised profits and losses resulting from transactions between the Group and its associates and joint venture
are eliminated to the extent of the Group’s interest in the investee, except where unrealised losses provide
evidence of an impairment of the asset transferred, in which case they are recognised immediately in profit or
loss.
If an investment in an associate becomes an investment in a joint venture or vice versa, retained interest is not
remeasured. Instead, the investment continues to be accounted for under the equity method.
In all other cases, when the Group ceases to have significant influence over an associate or joint control over
a joint venture, it is accounted for as a disposal of the entire interest in that investee, with a resulting gain or
loss being recognised in profit or loss. Any interest retained in that former investee at the date when significant
influence or joint control is lost is recognised at fair value and this amount is regarded as the fair value on
initial recognition of a financial asset.
An impairment loss in respect of an investment in an associate or joint venture is calculated as the difference
between its carrying amount after application of the equity method of accounting and its recoverable amount.
The recoverable amount of such investment is the greater of its value in use and its fair value less cost to sell.
In determining the value in use of the investment the Group estimates: (a) its share of the present value of the
estimated future cash flows expected to be generated by the investee, including the cash flows from the
operations of the investee and the proceeds on the ultimate disposal of the investment; or (b) the present value
of the estimated future cash flows expected to arise from the dividends to be received from the investee and
from its ultimate disposal depending on which available information with respect to each investee is more
reliable. An impairment loss is reversed to the extent that the recoverable amount of the investment subsequently
increases and the resulting carrying amount does not exceed the carrying amount that would have been
determined, after application of the equity method, had no impairment loss previously been recognised.
31 December
2024
2023
USD million
USD million
Investments
in joint
ventures
Investments
in associates
Total
Investments
in joint
ventures
Investments
in associates
Total
Balance at the beginning of the year
871
3,671
4,542
908
4,286
5,194
Acquisition of Hebei Wenfeng New
Materials Co., Ltd
316
−
316
−
−
−
Group’s share of profits
216
347
563
123
629
752
Contribution to a joint venture
22
−
22
5
−
5
Dividends
(34)
−
(34)
−
(398)
(398)
Foreign currency translation
(98)
(402)
(500)
(165)
(846)
(1,011)
Unrealised loss
(3)
−
(3)
−
−
−
Balance at the end of the year
1,290
3,616
4,906
871
3,671
4,542
Goodwill included in interests in
associates/joint ventures
84
1,801
1,885
−
1,982
1,982
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
265
264
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
The following list contains only the particulars of associates and joint ventures, all of which are corporate
entities, which principally affected the results or assets of the Group.
Name of associate / joint
venture
Place of
incorporation
and operation
Particulars of
issued
and paid up capital
Proportion of
ownership interest
Principal
activity
Group’s
effective
interest*
Group’s
nominal
interest
PJSC MMC
Norilsk Nickel
Russian
Federation
15,286,339,700
shares,
RUB 1 par value
15.01%
26.39%
Nickel and other
metals production
Queensland Alumina Limited
Australia
2,212,000 shares,
AUD 2 par value
11.38%
20%
Production of
alumina under a
tolling agreement
BEMO project
Cyprus,
Russian
Federation
BOGES Limited and
BALP Limited –
10,000 shares
EUR 1.71 each
28.44%
50%
Power /
aluminium
production
Hebei Wenfeng New Materials
Co., Ltd
China
Total registered share
capital of RMB
5,521,000,000
17.06%
30%
Alumina
production
*
Interest attributable to the shareholders of the Parent Company.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
The summary of the consolidated financial statements of associates and joint ventures for the year ended 31 December 2024 is presented below:
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Net assets
Group
share
100%
Group
share
100%
Group
share
100%
Group
share
100%
Group
share
100%
PJSC MMC Norilsk Nickel
5,788
16,325
1,806
6,845
(2,416)
(9,154)
(1,562)
(5,919)
3,616
8,097
Queensland Alumina Limited
177
650
29
143
(70)
(312)
(136)
(684)
−
(203)
BEMO project
1,177
2,240
321
662
(638)
(1,277)
(208)
(417)
652
1,208
Hebei Wenfeng New Materials Co., Ltd
451
1,220
297
990
(225)
(751)
(89)
(296)
434
1,163
Other associates and joint ventures
244
561
133
296
(33)
(68)
(137)
(270)
207
519
Revenue
Profit/(loss) from
continuing operations
Other comprehensive
(loss)/income
Total comprehensive
(loss)/income
Group
share
100%
Group
share
100%
Group
share
100%
Group
share
100%
PJSC MMC Norilsk Nickel
3,308
12,535
347
1,815
(402)
(1,020)
(55)
795
Queensland Alumina Limited
120
601
−
(250)
−
11
−
(239)
BEMO project
500
1
93
240
(85)
(171)
8
69
Hebei Wenfeng New Materials Co., Ltd
577
2,441
138
558
2
(15)
140
543
Other associates and joint ventures
287
814
(15)
(10)
(15)
(25)
(30)
(35)
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
The summary of the consolidated financial statements of associates and joint ventures for the year ended 31 December 2023 is presented below
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Net assets
Group
share
100%
Group
share
100%
Group
share
100%
Group
share
100%
Group
share
100%
PJSC MMC Norilsk Nickel
5,952
16,238
1,938
7,342
(1,888)
(7,154)
(2,331)
(8,831)
3,671
7,595
Queensland Alumina Limited
189
971
29
146
(80)
(388)
(138)
(693)
−
36
BEMO project
1,228
2,287
158
304
(676)
(1,352)
(50)
(101)
660
1,138
Other associates and joint ventures
256
597
141
328
(100)
(202)
(86)
(175)
211
548
Revenue
Profit/(loss) from
continuing operations
Other comprehensive loss
Total comprehensive
(loss)/income
Group
share
100%
Group
share
100%
Group
share
100%
Group
share
100%
PJSC MMC Norilsk Nickel
3,803
14,409
629
2,870
(846)
(1,856)
(217)
1,014
Queensland Alumina Limited
118
592
–
(20)
−
−
−
(20)
BEMO project
516
1,031
93
193
(162)
(324)
(69)
(131)
Other associates and joint ventures
292
836
30
82
(3)
(3)
27
79
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
267
266
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
(a)
PJSC MMC Norilsk Nickel
The Group’s investment in Norilsk Nickel is accounted for using equity method and the carrying value as at
31 December 2024 and 31 December 2023 amounted USD 3,616 million and USD 3,671 million, respectively.
The Group’s share of profit of Norilsk Nickel was USD 347 million, the foreign currency translation loss
was USD 402 million for the year ended 31 December 2024.
The Group’s share of profit of Norilsk Nickel was USD 629 million, the foreign currency translation loss
was USD 846 million for the year ended 31 December 2023.
The fair value of the investment amounted USD 4,585 million and USD 7,273 million as at
31 December 2024 and 31 December 2023, respectively, and is determined by multiplying the quoted bid
price per share on the Moscow Exchange on the year-end date by the number of shares held by the Group.
(b)
Queensland Alumina Limited
The carrying value of the Group’s investment in Queensland Alumina Limited as at both 31 December 2024
and 31 December 2023 amounted to USD nil million. At 31 December 2024 management has not identified
any impairment reversal indicators relating to the Group’s investment in QAL and as a result no detailed
impairment testing was performed in relation to this investment.
(c)
BEMO project
The carrying value of the Group’s investment in BEMO project as at 31 December 2024 and 31 December
2023 amounted USD 652 million and USD 660 million, respectively.
For the purposes of impairment testing, the BEMO project was separated into two cash generating units –
the Boguchansky Aluminium Smelter (“BoAZ”) and the Boguchansky Hydro Power Plant (“BoGES”). The
recoverable amount was determined by discounting the expected future net cash flows of each cash
generating unit.
At 31 December 2024 management has not identified any impairment indicators relating to the Group’s
investment in BoGES as well as any impairment reversal indicators relating to investments in BoAZ and as
a result no detailed impairment testing was performed in relation to this investment.
At 31 December 2024, accumulated losses of USD 43 million (2023: USD 57 million) related to BoAZ have
not been recognised because the Group’s investment has already been fully written down to USD nil million.
Summary of the additional financial information of the Group’s effective interest in BEMO project for the
year ended 31 December 2024 and 31 December 2023 is presented below (all in USD million):
31 December
2024
31 December
2023
USD million
USD million
Cash and cash equivalents
69
43
Current financial liabilities
(2)
(1)
Non-current financial liabilities
(509)
(548)
Depreciation and amortisation
(44)
(54)
Interest income
7
3
Income tax expense
(24)
(29)
(d)
Hebei Wenfeng New Materials Co., Ltd (“HWNM”)
In October 2023 Metals segment entered into a share-purchase agreement to acquire 30% interest in the share
capital of Hebei Wenfeng New Materials Co., Ltd. – the alumina production plant, located in China. All
rights attached to the interest acquired were transferred to the Group in April 2024, therefore the Group
recognized the investment in its consolidated financial statements for the year ended 31 December 2024. The
initial consideration paid comprised USD 264 million and was further adjusted to USD 316 million in
accordance with the certain conditions of the share purchase agreement.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
The Group finalized the valuation process of the fair value of the Group’s share in the investment’s net assets
as of the date of acquisition of the investment, which amounted to USD 238 million. Accordingly, the
goodwill which arose on the acquisition of the investment amounted to USD 78 million and was included in
the carrying amount of the investment in HWNM in accordance with IAS 28 Investments in Associates and
Joint Ventures.
Most significant decisions on relevant activities of the investment shall be made by resolution approved
unanimously by all Board members or all shareholders. Accordingly, the Group concluded that it has joint
control over the HWNM. Based on analysis of the relevant facts the management of the Group concluded
that, in substance, the arrangement gives the investors rights to its net assets. Therefore it has determined that
the Group’s investment in HWNM should be accounted for as a joint venture rather than a joint operation.
Simultaneously, the Group entered into several put and call option agreements with the seller of the
investment with the aim to protect the Group’s or the seller’s interests in the investment. Mostly, exercise of
these options are subject to occurrence of specific corporate events, which are not under the Group’s control
and are hard to predict. These options did not affect the classification of the investment as a joint venture.
14.
Inventories
Inventories are measured at the lower of cost and net realisable value.
The cost of inventories is determined under the weighted average cost method, and includes expenditure
incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing
them to their existing location and condition. In the case of manufactured inventories and work in progress,
cost includes an appropriate share of production overheads based on normal operating capacity.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost
of completion and selling expenses.
Production costs include mining and concentrating costs, smelting, treatment and refining costs, other cash
costs and depreciation and amortisation of operating assets.
31 December
2024
2023
USD million
USD million
Raw materials and consumables
1,054
1,404
Work in progress
860
779
Finished goods and goods for resale
2,544
1,392
4,458
3,575
Inventories at 31 December 2024 and 31 December 2023 are stated at the lower of cost and net realizable
value.
There were no inventories pledged as at 31 December 2024 and 31 December 2023.
15.
Non-derivative financial instruments
Non-derivative financial instruments comprise investments in securities, trade and other receivables
(excluding prepayments and tax assets), cash and cash equivalents, loans and borrowings and trade and other
payables (excluding advances received and tax liabilities).
Non-derivative financial instruments, except for trade and other receivables, are recognised initially at fair value
plus any directly attributable transaction costs. Trade and other receivables are recognised at transaction price.
A financial instrument is recognised when the Group becomes a party to the contractual provisions of the
instrument. Financial assets are derecognised if the Group’s contractual rights to the cash flows from the
financial assets expire or if the Group transfers the financial asset to another party without retaining control
or substantially all risks and rewards of the asset. Financial liabilities are derecognised if the Group’s
obligations specified in the contract expire or are discharged or cancelled.
IFRS 9 Financial Instruments sets out requirements for recognising and measuring financial assets, financial
liabilities and some contracts to buy or sell non-financial items. The details of significant accounting policies
are set out below.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
269
268
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
Classification and measurement of financial assets and financial liabilities
IFRS 9 specifies three principal classification categories for financial assets: measured at amortised cost, fair
value through other comprehensive income (“FVOCI”) and fair value through profit or loss (“FVTPL”). The
classification of financial assets under IFRS 9 is generally based on the business model in which a financial
asset is managed and its contractual cash flow characteristics. Under IFRS 9, derivatives embedded in
contracts where the host is a financial asset in the scope of the standard are never bifurcated. Instead, the
hybrid financial instrument as a whole is assessed for classification.
The Group’s financial assets mostly fall within the category of financial assets measured at amortised cost.
The only exception is derivative financial assets measured at fair value through profit or loss and cash flow
hedges accounted through other comprehensive income (note 19) and other investments measured at fair
value through profit or loss (note 15(h)). The Group’s financial liabilities fall within category of financial
liabilities measured at amortised cost
(a)
Impairment of trade receivables
Under IFRS 9, loss allowances (expected credit losses – “ECL”) are measured on either of the following bases:
12-month ECLs: these are ECLs that result from possible default events within the 12 months after
the reporting date; and
lifetime ECLs: these are ECLs that result from all possible default events over the expected life of
a financial instrument.
The Group measures loss allowances at an amount equal to lifetime ECLs, except for bank balances for which
credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not
increased significantly since initial recognition. The Group measures loss allowances for trade receivables at
an amount equal to lifetime ECLs.
When determining whether the credit risk of a financial asset has increased significantly since initial
recognition and when estimating ECLs, the Group considers reasonable and supportable information that is
relevant and available without undue cost or effort. This includes both quantitative and qualitative
information and analysis, based on the Group’s historical experience and informed credit assessment and
including forward-looking information.
The Group assumes that the credit risk on a financial asset has increased significantly if it is more than
30 days past due for Metals segment and more than 90 days past due for Power segment.
The Group considers a financial asset to be in default when:
The borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the
Group to actions such as realising security (if any is held); or
The financial asset is more than 90 days past due for Metals segment and more than 180 days past due
for Power segment, but additional analysis is conducted for each such receivable and assessment is
updated accordingly.
The maximum period considered when estimating ECLs is the maximum contractual period over which the
Group is exposed to credit risk.
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of
all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract
and the cash flows that the Group expects to receive). ECLs are discounted at the effective interest rate of
the financial asset in case of long-term assets.
At each reporting date, the Group assesses whether financial assets carried at amortised cost are credit-
impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on
the estimated future cash flows of the financial asset have occurred.
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount
of the assets. Impairment losses related to trade and other receivables are presented as part of net other
operating expenses.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
The following analysis provides further detail about the calculation of ECLs related to trade receivables.
The Group uses an allowance matrix to measure the ECLs of trade receivables from the customers. Loss rates
are calculated using a ‘roll rate’ method based on the probability of a receivable progressing through
successive stages of delinquency to write-off. The ECLs were calculated based on actual credit loss
experience over the past two years. The Group performed the calculation of ECL rates separately for the
customers of each key trading company of the Group. Exposures within each trading company were not
further segmented except for individually significant customers which bear specific credit risk depending on
the repayment history of the customer and relationship with the Group.
Metals
The following table provides information about determined ECLs rates for trade receivables both as at
31 December 2023 and 31 December 2024.
Weighted-average loss rate
31 December
2024
31 December
2023
Credit-
impaired
Current (not past due)
4%
1%
No
1-30 days past due
25%
21%
No
31-60 days past due
68%
73%
No
61-90 days past due
59%
93%
No
More than 90 days past due
66%
47%
Yes
Power
The following table provides information about determined ECLs rates for trade receivables both as at 31
December 2023 and 31 December 2024.
Weighted-average loss rate
31 December
2024
31 December
2023
Credit-
impaired
Current (not past due)
1%
1%
No
1-90 days past due
1%
1%
No
90-180 days past due
30%
30%
No
More than 180 days past due
100%
100%
Yes
Fluctuations reflect differences between economic conditions during the period over which the historical data
has been collected, current conditions and the Group’s view of economic conditions over the expected lives
of the receivables. Impairment losses in respect of trade receivables are recorded using an allowance account
unless the Group is satisfied that recovery of the amount is remote, in which case the impairment loss is
written off against trade receivables directly.
(b)
Trade and other receivables
31 December
2024
2023
USD million
USD million
Trade receivables from third parties
1,143
1,127
Trade receivables from related parties, including
381
45
Related parties – companies capable of exerting significant influence
25
33
Related parties – associates and joint ventures
356
12
Other receivables from third parties
234
192
Other receivables from related parties, including
1
−
Related parties – associates and joint ventures
1
−
Dividends receivable from related parties
29
412
Related parties – associates and joint ventures
29
412
Other current assets
40
27
1,828
1,803
Impairment of receivables
(105)
(80)
1,723
1,723
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
271
270
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
(i)
Ageing analysis
Included in trade and other receivables are trade receivables (net of allowance for doubtful debts) with the
following ageing analysis as of the statement of financial position dates:
Metals
31 December
2024
2023
USD million
USD million
Current
1,146
804
Past due 1-30 days
9
29
Past due 31-60 days
1
1
Past due 61-90 days
1
−
Past due over 90 days
44
65
Amounts past due
55
95
1,201
899
Power
31 December
2024
2023
USD million
USD million
Current
184
175
Past due 1-30 days
17
12
Past due 31-60 days
9
5
Past due 61-90 days
5
2
Past due 91-180 days
11
5
Past due over 180 days
1
1
Amounts past due
43
25
227
200
Trade receivables are on average due within 90 days from the date of billing. The receivables that are neither
past due nor impaired (i.e. current) relate to a wide range of customers for whom there was no recent history
of default.
Further details of the Group’s credit policy are set out in note 20(e).
(c)
Prepayments and VAT recoverable
31 December
2024
2023
USD million
USD million
VAT recoverable
539
397
Advances paid to third parties
246
214
Advances paid to related parties, including
133
87
Related parties – associates and joint ventures
133
87
Other taxes receivable
23
30
941
728
Impairment of prepayments and VAT recoverable
(138)
(135)
803
593
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
(d)
Trade and other payables
31 December
2024
2023
USD million
USD million
Accounts payable to third parties
1,125
867
Accounts payable to related parties, including
270
161
Related parties – companies capable of exerting significant influence
5
7
Related parties – associates and joint ventures
265
154
Other payables and accrued liabilities
300
288
Dividends payable
5
5
Income tax payable
61
48
1,761
1,369
All of the trade and other payables are expected to be settled within one year or are repayable on demand.
(e)
Advances received
31 December
2024
2023
USD million
USD million
Advances received from third parties
544
339
544
339
Advances received represent contract liabilities to perform obligations under contracts with customers.
Advances received are short-term and revenue in respect of the contract liabilities recognized as at the
reporting date is fully recognized during next twelve months.
(f)
Cash and cash equivalents
31 December
2024
2023
USD million
USD million
Bank balances, CNY
849
792
Bank balances, RUB
312
617
Bank balances, AED
122
−
Bank balances, EUR
52
163
Bank balances, USD
40
166
Bank balances, other currencies
32
30
Cash in transit
56
−
Short-term bank deposits, USD
163
349
Short-term bank deposits, RUB
216
106
Short-term bank deposits, EUR
32
103
Short-term bank deposits, CNY
6
13
Other cash equivalents
1
6
Cash and cash equivalents in the consolidated statement
of cash flows
1,881
2,345
Restricted cash
2
2
Cash and cash equivalents in the consolidated statement
of financial position
1,883
2,347
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
273
272
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
(g)
Other non-current assets
31 December
31 December
2024
2023
USD million
USD million
Long-term deposits
123
124
Prepayment for a joint venture acquisition (note 13)
−
13
Other non-current assets
140
166
263
303
(h)
Investments in equity securities measured at fair value through profit and loss
As at 31 December 2024 and 31 December 2023 the Group’s effective interest in RusHydro shares was
9.73% (nominal 9.64%). Investment is treated as equity securities measured at fair value through profit and
loss. There were no acquisitions/disposals of the equity securities of RusHydro during 2024.
Fair value is estimated in accordance with Level 1 of the fair value hierarchy. The market value was
determined by multiplying the quoted bid price per share on the Moscow Exchange on reporting date by the
number of shares held by the Group.
16.
Equity
(a)
Share capital, additional paid-in capital and transactions with shareholders
As at 31 December 2024 and 31 December 2023 the Parent Company’s share capital is divided into 638,848,896
ordinary shares with a nominal value of USD 0.00007 each. The Parent Company may also issue
75,436,818.286 ordinary shares.
As at 31 December 2024 and 31 December 2023 all issued ordinary shares were fully paid.
Change in effective interest in subsidiaries
In 2023 the Group acquired part of the non-controlling interest in certain Group subsidiaries for the total
consideration of USD 3 million.
(b)
Other reserves
Other reserves represents the cost of Parent Company’s shares owned by the special financial organisation
(under IFRS due to specific provisions of the contracts shares disposed in 2023 were not derecognised by the
Group), the cumulative unrealised actuarial gains and losses on the Group’s defined post-retirement benefit
plans, the effective portion of the accumulated net change in fair value of cash flow hedges and the Group’s
share of other comprehensive income of associates.
(c)
Currency translation reserve
The currency translation reserve comprises all foreign exchange differences arising from the translation of
the consolidated financial statements of foreign subsidiaries, associates and joint ventures. The reserve is
dealt with in accordance with the accounting policies set out in note 3(b).
(d)
Dividends
During the years ended 31 December 2024 and 31 December 2023 the Parent Company did not declare and
pay dividends.
The Parent Company may distribute dividends from retained earnings and profit for the reporting period in
compliance with the current legislation of the Russian Federation and the provisions of its Charter.
(e)
Revaluation reserve
The revaluation reserve comprises the cumulative net change in the fair value of hydro assets at the reporting
date and is dealt with in accordance with the accounting policies set out in note 11(a)(i).
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
An independent valuation analysis of hydro assets was carried out as at 31 December 2024, the fair value of
hydro assets was estimated at USD 3,155 million (note 11(e)). Additionally as at 31 December the Group
accrued deferred tax liabilities on revaluation of hydro assets to account for the increase in the income tax
rate from 1 January 2025 (note 10(a)). As a result of these changes, the Group recognised an additional
revaluation reserve in the amount of USD 145 million net of tax.
(f)
Non-controlling interests
USD million
UC RUSAL
Other
subsidiaries
Total
UC RUSAL
Other
subsidiaries
Total
2024
2024
2024
2023
2023
2023
Carrying amount of NCI
4,628
110
4,738
4,541
119
4,660
Profit/(loss) attributable to NCI
346
6
352
122
(2)
120
Other comprehensive loss
attributable to NCI
(260)
(14)
(274)
(679)
(34)
(713)
Total comprehensive income/(loss)
86
(8)
78
(557)
(36)
(593)
The following table summarises the information relating to the UC RUSAL which has material non-
controlling interest:
USD million
UC RUSAL
UC RUSAL
2024
2023
NCI percentage
43.1%
43.1%
Assets
21,717
20,980
Liabilities
(10,985)
(10,448)
Net assets
10,732
10,532
Carrying amount of NCI
4,628
4,541
Revenue
12,082
12,213
Profit
803
282
Other comprehensive loss
(603)
(1,575)
Total comprehensive income/(loss)
200
(1,293)
Profit attributable to NCI
346
122
Other comprehensive loss attributable to NCI
(260)
(679)
Cash flows from operating activities
483
1,760
Cash flows used in investing activities
(1,078)
(1,030)
Cash flows from/(used in) financing activities
113
(1,747)
Net decrease in cash and cash equivalents
(482)
(1,017)
17.
Loans and borrowings
This note provides information about the contractual terms of the Group’s loans and borrowings.
For more information about the Group’s exposure to interest rate and foreign currency risk refer to
notes 20(c)(ii) and 20(c)(iii), respectively.
31 December
2024
2023
USD million
USD million
Non-current liabilities
Secured bank loans
2,434
3,366
Unsecured bank loans
1,067
1,499
Unsecured company loans from related parties
36
−
Bonds
1,446
3,612
4,983
8,477
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
275
274
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
31 December
2024
2023
USD million
USD million
Current liabilities
Current portion of secured bank loans
304
957
Current portion of unsecured bank loans
19
8
Current portion of bonds
3,123
615
3,446
1,580
Secured bank loans
527
367
Unsecured bank loans
1,592
500
Unsecured company loans from related parties
69
−
Interest payable
147
140
2,335
1,007
5,781
2,587
(a)
Loans and borrowings
31 December
2024
2023
USD million
USD million
Non-current liabilities
Secured bank loans
Variable
RUB – CBR + 1.50%
935
1,235
RUB – CBR + 2.00%
−
280
RUB – CBR + 2.20%
72
−
RUB – CBR + 3.15%
214
148
RUB – CBR + 5.95%
118
−
RUB – 30%CBR + 2.35%
7
−
Fixed
CNY – fixed at 4.75%
1,042
1,662
RUB – fixed at 3.00%
46
41
2,434
3,366
Unsecured bank loans
Variable
RUB – CBR + 1.8%
−
155
RUB – CBR + 1.85%
27
−
RUB – CBR + 1.95%-2.25%
24
79
RUB – CBR + 2.45%
492
−
RUB – CBR + 3.00%
91
48
RUB – CBR + 3.15%
29
−
EUR – 6M Euribor + 0.45%-0.67%
20
28
CNY – LPR1Y +1.60%
−
354
CNY – LPR1Y +3.1%
333
−
Fixed
RUB – fixed at 3.00%
7
11
CNY – fixed at 3.75%
−
774
CNY – fixed at 4.70%
40
50
RUB – other
4
−
1,067
1,499
Unsecured company loans from related parties
RUB/KZT – other
36
−
Bonds
1,446
3,612
4,983
8,477
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
31 December
2024
2023
USD million
USD million
Current liabilities
Current portion of secured bank loans
Variable
RUB – CBR + 1.50%
257
381
RUB – CBR + 2.20%
26
−
RUB – CBR + 3.15%
4
16
RUB – CBR + 5.95%
15
−
RUB – 30% CBR + 2.35%
1
−
Fixed
CNY – fixed at 4.75%
−
553
RUB – fixed at 3.00%
1
7
304
957
Current portion of unsecured bank loans
Variable
RUB – CBR + 3.00%
6
−
EUR – 6M Euribor + 0.45-0.67%
6
7
Fixed
RUB – other
−
1
CNY – 4.7%
7
−
19
8
Secured bank loans
Variable
USD – Term SOFR + Spread + 2.10%
1
339
USD – Term SOFR + Spread + 1.70%
−
25
Fixed
RUB – fixed at 3.00%
4
3
CNY – fixed at 4.75%
522
−
527
367
Unsecured bank loans
Variable
RUB – CBR + 1.50%-1.98%
302
69
RUB – CBR + 2.00%-2.50%
403
53
RUB – CBR + 4%-6%
1
−
CNY – LPR1Y +2.75%
−
374
Fixed
RUB – fixed at 18.75%
−
4
CNY – fixed at 5.25%
729
−
RUB – fixed at 13.15%
25
−
RUB – fixed at 7.95%
132
−
1,592
500
Unsecured company loans from related parties
RUB/KZT other
69
−
69
−
Interest payable
147
140
Bonds
3,123
615
5,458
1,622
5,781
2,587
The bank loans are secured as at 31 December 2024 and 31 December 2023 by the following:
Properties, plant and equipment – refer to note 11(d);
Shares of the Group companies as described below.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
277
276
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
As at 31 December 2024 and 31 December 2023, most of the Group’s long-term loans, borrowings and bonds
had covenants to be tested within twelve months after the reporting date. Such covenants include the
requirement to maintain several financial ratios at a certain level. If there is a breach of financial ratios, the
creditor has the right to demand immediate repayment of the entire loan, borrowing or bond. As at 31
December 2024 and 31 December 2023, the Group was in compliance with its financial covenants under all
such credit facility loans, borrowings and bonds.
The Group assesses as unlikely a breach of the covenants for the borrowings listed above within twelve
months after the reporting date.
Metals
The nominal value of UC RUSAL’s loans and borrowings was USD 4,287 million at 31 December 2024
(31 December 2023: USD 4,447million).
As at 31 December 2024 and 31 December 2023 the secured bank loans are secured by certain pledges of
shares of a number of UC RUSAL’s subsidiaries and 25% +1 share of Norilsk Nickel (Group’s associate).
Power
The nominal value of Power loans and borrowings was USD 1,879 million at 31 December 2024
(31 December 2023: USD 2,371 million).
As at 31 December 2024 and 31 December 2023 the secured bank loans are secured by certain pledges of
shares of a number of Parent Company’s subsidiaries, including LLC EN+ Hydro (formerly
ESE-Hydrogeneration) – 100% (2023: 100%), JSC Irkutskenergo – 77.42% (2023: 77.42%) and EN+
Generation – 50% + 1 share (2023: 50% + 1 share).
(b)
Bonds
As at 31 December 2024, the Group had outstanding bonds denominated in RUB, CNY, United Arab
Emirates Dirhams and eurobonds denominated in USD:
Metals
Type
Series
The number of
bonds
Nominal
value,
USD million
Nominal
interest rate
Put-option
date
Maturity
date
Bond
BО-01
30,263
–
0.01%
–
07.04.2026
Bond
BО-001P-04
370,000
101
5.95%
–
05.09.2025
Eurobond
–
21,300
21
5.30%
–
03.05.2023
Eurobond
–
20,469
21
4.85%
–
01.02.2023
Bond
BО-05
467,750
62
8.50%
04.08.2025
28.07.2027
Bond
BО-06
117,940
16
8.50%
04.08.2025
28.07.2027
Bond
BО-001P-01
6,000,000
792
3.75%
–
24.04.2025
Bond
BО-001P-02
1,000,000
132
3.95%
–
23.12.2025
Bond
BО-001P-03
3,000,000
396
LPR1Y + 0.2%
–
24.12.2025
Bond
001PC-01
2,379,660
314
3.75%
–
07.03.2025
Bond
001PC-02
2,352,869
311
3.75%
–
07.03.2025
Bond
001PC-03
2,367,763
313
3.75%
–
07.03.2025
Bond
001PC-04
1,778,060
235
3.75%
–
07.03.2025
Bond
BО-001P-05
600,000
79
6.70%
–
08.05.2026
Bond
BО-001P-06
1,000,000
132
7.20%
–
05.08.2026
Bond
BО-001P-07
900,000
119
7.90%
–
09.10.2026
Bond
BО-001P-08
85,000
85
9.25%
–
01.08.2027
Bond
BО-001P-09
30,000,000
295
KeyRate + 2.20%
–
17.06.2027
Bond
BО-001P-10
10,000,000
98
KeyRate + 2.25%
–
06.03.2027
Bond
BО-001P-11
10,000,000
98
KeyRate + 2.50%
–
22.08.2029
On 7 February 2024 UC RUSAL placed on the Moscow Stock Exchange exchange-traded non documentary
interest-bearing non-convertible bonds series BO-001P-06 in the total amount of CNY 1,000 million with a
coupon – 7.20%. The maturity of the bonds is 2.5 years.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
On 12 April 2024 UC RUSAL placed on the Moscow Stock Exchange exchange-traded non documentary
interest-bearing non-convertible bonds series BO-001P-07 in the total amount of CNY 900 million with a
coupon – 7.90%. The maturity of the bonds is 2.5 years.
On 2 July 2024 UC RUSAL placed on the Moscow Stock Exchange exchange-traded non documentary
interest-bearing non-convertible bonds series BO-001P-09 in the total amount of RUB 30 billion with a
coupon – Key Rate + 2.2%. The maturity of the bonds is 3 years.
On 30 July 2024 UC RUSAL placed on the Moscow Stock Exchange exchange-traded non documentary
interest-bearing non-convertible bonds series BO-001P-08 in the total amount of USD 85 million with a
coupon – 9.25%. The maturity of the bonds is 3 years.
On 5 August 2024 UC RUSAL repurchased bonds series BO-05 nominated in Chinese yuan in the amount
of CNY 1.5 billion. The balance in the amount of CNY 467,8 million is in the market, the coupon rate is
8.5%, maturity – 1 year.
On 5 August 2024 UC RUSAL repurchased bonds series BO-06 nominated in Chinese yuan in the amount
of CNY 1.8 billion. The balance in the amount of CNY 117.9 million is in the market, the coupon rate is
8.5%, maturity – 1 year
On 17 September 2024 UC RUSAL placed on the Moscow Stock Exchange exchange-traded non
documentary interest-bearing non-convertible bonds series BO-001P-10 and BO-001P-11 in the total amount
of RUB 10 billion with a coupon – Key Rate + 2.25% and in the total amount of RUB 10 billion with a
coupon – Key Rate + 2.5%. The maturity of the bonds is 2.5 years and 5 years, respectively.
Power
Type
Series
The number of
bonds
Nominal
value,
USD million
Nominal
interest rate
Put-option
date
Maturity
date
Bond
001PC-01
2,075,377
274
4.45%
−
22.12.2025
Bond
001PC-02
1,792,146
237
5.45%
−
27.03.2026
Bond
001PC-03
1,026,910
136
5.45%
−
22.05.2025
Bond
001PC-01
670,000
88
5.40%
−
06.05.2026
Bond
001PC-05
1,100,000
145
8.10%
−
17.11.2026
Bond
001PC-06
7,000,000
69
KeyRate + 5.00%
−
15.12.2026
On 21 May 2024 the Power segment company placed on the Moscow Stock Exchange exchange-traded
non documentary interest-bearing non-convertible bonds series 001PC-05 in the total amount CNY 1,100
million with a coupon – 8.10% p.a. Maturity of the bonds is November 2026.
On 25 December 2024 the Power segment company placed on the Moscow Stock Exchange exchange-traded
non documentary interest-bearing non-convertible bonds series 001PC-06 in the total amount RUB 7 billion
with a coupon – Key Rate + 5%. Maturity of the bonds is December 2026
As at 31 December 2024, the amount of accrued interest on the Group’s bonds was USD 26 million
(31 December 2023: USD 25 million).
18.
Provisions
(a)
Accounting policy
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax
rate that reflects current market assessments of the time value of money and the risks specific to the liability.
The unwinding of the discount is recognised as finance costs.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
279
278
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
(i)
Site restoration
The mining, refining and smelting activities of the Group can give rise to obligations for site restoration and
rehabilitation. Restoration and rehabilitation works can include facility decommissioning and dismantling,
removal or treatment of waste materials, land rehabilitation, and site restoration. The extent of work required
and the associated costs are dependent on the requirements of law and the interpretations of the relevant
authorities.
Provisions for the cost of each restoration and rehabilitation program are recognised at the time that
environmental disturbance occurs. When the extent of disturbance increases over the life of an operation, the
provision is increased accordingly. Costs included in the provision encompass obligated and reasonably
estimable restoration and rehabilitation activities expected to occur progressively over the life of the
operation and at the time of closure in connection with disturbances at the reporting date.
Routine operating costs that may impact the ultimate restoration and rehabilitation activities, such as waste
material handling conducted as an integral part of a mining or production process, are not included in the
provision. Costs arising from unforeseen circumstances, such as the contamination caused by unplanned
discharges, are recognised as an expense and liability when the event gives rise to an obligation which is
probable and capable of reliable estimation.
Restoration and rehabilitation provisions are measured at the expected value of future cash flows, discounted
to their present value and determined according to the probability of alternative estimates of cash flows
occurring for each operation. Discount rates used are specific to the country in which the operation is located.
Significant judgements and estimates are involved in forming expectations of future activities and the amount
and timing of the associated cash flows. Those expectations are formed based on existing environmental and
regulatory requirements.
When provisions for restoration and rehabilitation are initially recognised, the corresponding cost is capitalised
as an asset, representing part of the cost of acquiring the future economic benefits of the operation. The
capitalised cost of restoration and rehabilitation activities is amortised over the estimated economic life of the
operation on a units of production or straight-line basis. The value of the provision is progressively increased
over time as the effect of discounting unwinds, creating an expense recognised as part of finance expenses.
Restoration and rehabilitation provisions are also adjusted for changes in estimates. Those adjustments are
accounted for as a change in the corresponding capitalised cost of the whole asset, to which the provision
relates, except where a reduction in the provision is greater than the unamortised capitalised cost, in which
case the capitalised cost is reduced to nil and the remaining adjustment is recognised in profit or loss. Changes
to the capitalised cost result in an adjustment to future amortisation charges. Adjustments to the estimated
amount and timing of future restoration and rehabilitation cash flows are a normal occurrence in light of the
significant judgements and estimates involved. Factors influencing those changes include revisions to
estimated reserves, resources and lives of operations; developments in technology; regulatory requirements
and environmental management strategies; changes in the estimated costs of anticipated activities, including
the effects of inflation and movements in foreign exchange rates; and movements in general interest rates
affecting the discount rate applied.
(ii)
Legal claim
In the normal course of business, the Group may be involved in legal proceedings. Where management
considers that it is more likely than not that proceedings will result in the Group compensating third parties,
a provision is recognised for the best estimate of the amount expected to be paid. Where management
considers that it is more likely than not that proceedings will not result in the Group compensating third
parties or where, in rare circumstances, it is not considered possible to provide a sufficiently reliable estimate
of the amount expected to be paid, no provision is made for any potential liability under the litigation but the
circumstances and uncertainties involved are disclosed as contingent liabilities. The assessment of the likely
outcome of legal proceedings and the amount of any potential liability involves significant judgement. As law
and regulations in many of the countries in which the Group operates are continuing to evolve, particularly
in the areas of taxation, sub-soil rights and protection of the environment, uncertainties regarding litigation
and regulation are greater than those typically found in countries with more developed legal and regulatory
frameworks.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
(b)
Disclosure
USD million
Pension
liabilities
Site
restoration
Provisions for
legal claims
Total
Balance at 1 January 2023
101
399
26
526
Provisions made during the year
11
−
3
14
Provisions reversed during the year
(5)
−
−
(5)
Actuarial gain
(8)
−
−
(8)
Provisions used during the year
(6)
−
(11)
(17)
Effect of the passage of time
−
14
−
14
Change in estimates
−
(3)
−
(3)
Translation difference
(17)
(26)
(3)
(46)
Balance at 31 December 2023
76
384
15
475
Non-current
69
282
−
351
Current
7
102
15
124
Provisions made during the year
11
−
33
44
Provisions reversed during the year
−
−
(4)
(4)
Actuarial loss
8
−
−
8
Provisions used during the year
(5)
(6)
(4)
(15)
Effect of the passage of time
−
1
−
1
Change in estimates
−
(38)
−
(38)
Translation difference
(11)
(19)
(3)
(33)
Balance at 31 December 2024
79
322
37
438
Non-current
70
235
−
305
Current
9
87
37
133
79
322
37
438
(c)
Pension liabilities
As at 31 December 2024, the pension liability is represented by Metals of USD 53 million (31 December
2023: USD 47 million) and Power of USD 26 million (31 December 2023: USD 29 million).
The provision for pensions mainly comprises lump sum payments at retirement by aluminium plants located
in Russia, and by electricity generating companies. The Group also provides pension benefits to eligible
participants at facilities located outside of the Russian Federation.
Group subsidiaries in the Russian Federation
The Group voluntarily provides long-term and post-employment benefits to its former and existing
employees including death-in-service, jubilee, lump sum upon retirement, material support for pensioners
and death-in-pension benefits. Furthermore, the Group provides regular social support payments to some of
its veterans of World War II.
The above employee benefit programs are of a defined benefit nature. The Group finances these programs
on a pay-as-you-go basis, so plan assets are equal to zero.
Group subsidiaries outside the Russian Federation
At its Guinean entities the Group provides a death-in-service benefit and lump-sum benefits upon disability
and old-age retirement.
At its Guyana subsidiary, the Group provides a death-in-service benefit.
At its Italian subsidiary (Eurallumina) the Group only provides lump sum benefits upon retirement, which
relate to service up to 1 January 2007.
In Sweden (Kubikenborg Aluminium AB), the Group provides defined benefit lifelong and temporary
pension benefits. The lifelong benefits are dependent on the past service and average salary level of the
employee, with an accrual rate that depends on the salary bracket the employee is in. The liability relates
only to benefits accrued before 1 January 2004.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
281
280
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
Actuarial valuation of pension liabilities
Metals
The key actuarial assumptions (weighted average, weighted by DBO) are as follows:
31 December 2024
31 December 2023
% per annum
% per annum
Discount rate
14.3
11.4
Future salary increases
14.2
8.5
Future pension increases
1.8
1.7
Staff turnover
4.9
4.9
Mortality
USSR population table for 1985
USSR population table for 1985
Disability
70% Munich Re for Russia
70% Munich Re for Russia
Power
The principal assumptions used in determining pension obligations for the pension plans are shown below:
31 December 2024
31 December 2023
% per annum
% per annum
Discount rate
15.0
11.8
Future salary increases
8.5
7.0
Pension and inflation rate increases
7.0
5.5
As at 31 December 2024 and 31 December 2023 the Group’s obligations were fully uncovered as the Group
has only wholly unfunded plans.
(d)
Site restoration and environmental provisions
The Group provides for site restoration obligations when there is a specific legal or constructive obligation
for mine reclamation, landfill closure (primarily comprising red mud basin disposal sites) or specific lease
restoration requirements. The Group does not record any obligations with respect to decommissioning of its
refining or smelting facilities and restoration and rehabilitation of the surrounding areas unless there is a
specific plan to discontinue operations at a facility. This is because any significant costs in connection with
decommissioning of refining or smelting facilities and restoration and rehabilitation of the surrounding areas
would be incurred no earlier than when the facility is closed and the facilities are currently expected to operate
over a term in excess of 50-100 years due to the perpetual nature of the refineries and smelters and continuous
maintenance and upgrade programs resulting in the carrying values of any such liabilities being negligible.
The site restoration provision relates primarily to mine reclamation and red mud basin disposal sites at
alumina refineries and ash dumps removal at coal burning electricity and heat generation stations.
The principal assumptions used in determining site restoration provision are:
31 December 2024
31 December 2023
Timing of cash outflows
2025: USD 88 million
2026-2030: USD 68 million
2031-2040: USD 126 million
after 2040: USD 400 million
2024: USD 102 million
2025-2029: USD 81 million
2030-2039: USD 116 million
after 2039: USD 418 million
Years required to fill the ash dumps
15.9
23.8
Discount rate for Coal CHPs CGU assets
after adjusting for inflation
10.10
7.42
Risk free discount rate for Metals segment
after adjusting for inflation*
4.39
3.55
*
The risk free rate for the year 2023-2024 represents an effective rate, which comprises rates differentiated by years of obligation
settlement and by currencies in which the provisions were calculated.
At each reporting date management have assessed the provisions for site restoration and concluded that the
provisions and disclosures are adequate.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
(e)
Provisions for legal claims
The Group’s subsidiaries are subject to a variety of lawsuits and claims in the ordinary course of its business.
As at 31 December 2024, there were several claims filed against the Group’s subsidiaries contesting breaches
of contract terms and non-payment of existing obligations. Management has reviewed the circumstances and
estimated that the amount of probable outflow related to these claims should not exceed USD 37 million
(31 December 2023: USD 15 million).
At each reporting date management has assessed the provisions for litigation and claims and concluded that
the provisions and disclosures are adequate.
19.
Derivative financial assets and liabilities
Accounting policies
The Group enters, from time to time, into various derivative financial instruments to manage its exposure to
commodity price risk, foreign currency risk and interest rate risk.
Derivative financial instruments are recognised initially at fair value; attributable transaction costs are
recognised in the statement of income when incurred. Subsequent to initial recognition, derivatives are
measured at fair value.
The measurement of fair value of derivative financial instruments is based on quoted market prices. Where
no price information is available from a quoted market source, alternative market mechanisms or recent
comparable transactions, fair value is estimated based on the Group’s views on relevant future prices, net of
valuation allowances to accommodate liquidity, modelling and other risks implicit in such estimates.
Changes in the fair value of derivative financial instruments are recognised immediately in the statement of
profit or loss and other comprehensive income.
Disclosures
31 December 2024
31 December 2023
USD million
USD million
Derivative
assets
Derivative
liabilities
Derivative
assets
Derivative
liabilities
Forward contracts for aluminium
and other instruments
27
–
32
–
Cross-currency interest SWAPs
–
(26)
–
–
Total
27
(26)
32
–
Non-current
–
–
13
–
Current
27
(26)
19
–
Derivative financial instruments are recorded at their fair value at each reporting date. Fair value is estimated
in accordance with Level 3 of the fair value hierarchy based on management estimates and consensus
economic forecasts of relevant future prices and interest rates, net of valuation allowances to accommodate
liquidity, modelling and other risks implicit in such estimates. The Group’s policy is to recognise transfers
between levels of fair value hierarchy as at the date of the event or change in circumstances that caused the
transfer. The movement in the balance of Level 3 fair value measurements of derivatives is as follows:
31 December
2024
2023
USD million
USD million
Balance at the beginning of the year
32
168
Unrealised changes in fair value recognised in statement of profit
or loss (finance expense) during the year (note 8)
61
(99)
Realised portion of electricity, coke and raw material contracts and
cross currency swap
(92)
(37)
Balance at the end of the year
1
32
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
283
282
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
During the year 2024 there have been no changes in valuation techniques used to calculate the derivative
financial instruments compared to prior year.
Management believes that the values assigned to the key assumptions and estimates represented the most
realistic assessment of future trends. The results for the derivative instruments are not particularly sensitive
to any factors other than the assumptions disclosed above.
UC RUSAL sells products to various third parties at prices that are influenced by changes in London Metal
Exchange aluminium prices and Shanghai Futures Exchange (SHFE) aluminium prices. From time to time
UC RUSAL enters into forward sales and purchase contracts for a portion of its anticipated primary
aluminium sales and purchases to reduce the risk of prices fluctuations on these sales and purchases. The
results are accounted for as profit or loss from derivative financial instruments, and do not adjust with revenue
or purchases.
20.
Financial risk management and fair values
(a)
Fair values
The methods used to estimate the fair values of the financial instruments are as follows:
Trade and other receivables, short-term investments, cash and cash equivalents, current loans and
borrowings and trade and other payables: the carrying amounts approximate fair value because of the
short maturity period of the instruments.
Investments in equity securities: measured at fair value through profit and loss, so, its carrying amount is
equal its fair value.
Long-term loans and borrowings, other non-current liabilities: the fair values of Metals segment and
Power segment bonds issued are approximate their carrying value. The fair value of the loans and borrowings
with fixed and floating interest rate as at 31 December 2024 and 31 December 2023 was calculated based on
the present value of future principal and interest cash flows, using discount interest rate that take into account
the currency of the debt, expected maturity dates and credit risks associated with the Group that existed at
the reporting date.
Derivatives: the fair value of derivative financial instruments is based on quoted market prices. Where no
price information is available from a quoted market source, alternative market mechanisms or recent
comparable transactions, fair value is estimated based on the Group’s views on relevant future prices, net of
valuation allowances to accommodate liquidity, modelling and other risks implicit in such estimates. The
derivative financial instruments are recorded at their fair value at each reporting date.
The following table presents the fair value of Group’s financial instruments measured at the end of the
reporting period on a recurring basis, as well as for instruments for which fair value is disclosed, categorised
into the three-level fair value hierarchy as defined by IFRS 13, Fair Value Measurement. The level into
which a fair value measurement is classified is determined with reference to the observability and
significance of the inputs used in the valuation technique as follows:
Level 1 valuations: fair value measured using only Level 1 inputs i.e. unadjusted quoted prices in
active markets for identical assets or liabilities at the measurement date.
Level 2 valuations: fair value measured using Level 2 inputs i.e. observable inputs which fail to meet
Level 1, and not using significant unobservable inputs. Unobservable inputs are inputs for which
market data are not available.
Level 3 valuations: fair value measured using significant unobservable inputs.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
As at 31 December 2024
Carrying amount
Fair value
Derivatives
Loans and
receivables
Other
financial
assets/
(liabilities)
Total
Level 1
Level 2
Level 3
Total
Note
USD million
USD million
USD million
USD million
USD million
USD million
USD million
USD million
Financial assets measured
at fair value
Forward contracts for aluminium
and other instruments
19
27
−
−
27
−
−
27
27
Investments in equity securities
measured at fair value through
profit and loss
1515
−
−
218
218
218
−
−
218
27
−
218
245
218
−
27
245
Financial assets not measured
at fair value*
Trade and other receivables
15
−
1,723
−
1,723
−
1,723
−
1,723
Short-term investments
−
133
−
133
−
133
−
133
Cash and cash equivalents
15
−
1,883
−
1,883
−
1,883
−
1,883
−
3,739
−
3,739
−
3,739
−
3,739
Financial liabilities measured
at fair value
Forward contracts for aluminium
and other instruments
(26)
−
−
(26)
−
−
(26)
(26)
(26)
−
−
(26)
−
−
(26)
(26)
Financial liabilities not
measured at fair value*
Loans and borrowings
17
−
−
(6,064)
(6,064)
−
(5,851)
−
(5,851)
Unsecured company loans from
related parties
−
−
(105)
(105)
−
(93)
−
(93)
Unsecured bond issue
17
−
−
(4,595)
(4,595)
(1,168)
(3,368)
−
(4,536)
Trade and other payables
15
−
−
(1,700)
(1,700)
−
(1,700)
−
(1,700)
−
−
(12,464)
(12,464)
(1,168)
(11,012)
−
(12,180)
*
The Group considers that the carrying amounts of short-term trade receivables and payables are a reasonable approximation of fair values.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
285
284
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
As at 31 December 2023
Carrying amount
Fair value
Derivatives
Loans and
receivables
Other
financial
assets/
(liabilities)
Total
Level 1
Level 2
Level 3
Total
Note
USD million
USD million
USD million
USD million
USD million
USD million
USD million
USD million
Financial assets measured
at fair value
Forward contracts for aluminium
and other instruments
19
32
−
−
32
−
−
32
32
Investments in equity securities
measured at fair value through
profit and loss
15
−
−
340
340
340
−
−
340
32
−
340
372
340
−
32
372
Financial assets not measured
at fair value*
Trade and other receivables
15(b)
−
1,723
−
1,723
−
1,723
−
1,723
Short-term investments
−
97
−
97
−
97
−
97
Cash and cash equivalents
15
−
2,347
−
2,347
−
2,347
−
2,347
−
4,167
−
4,167
−
4,167
−
4,167
Financial liabilities not
measured at fair value*
Loans and borrowings
17
−
−
(6,812)
(6,812)
−
(6,697)
−
(6,697)
Unsecured bond issue
17
−
−
(4,252)
(4,252)
(1,698)
(2,454)
−
(4,152)
Trade and other payables
15
−
−
(1,321)
(1,321)
−
(1,321)
−
(1,321)
−
−
(12,385)
(12,385)
(1,698)
(10,472)
−
(12,170)
*
The Group considers that the carrying amounts of short-term trade receivables and payables are a reasonable approximation of fair values.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
(b)
Financial risk management objectives and policies
The Group’s principal financial instruments comprise bank loans, bonds and trade payables. The main
purpose of these financial instruments is to raise finance for the Group’s operations. The Group has various
financial assets such as trade receivables and cash and short-term deposits, which arise directly from its
operations.
The main risks arising from the Group’s financial instruments are cash flow interest rate risk, liquidity risk,
foreign currency risk and credit risk. Management reviews and agrees policies for managing each of these
risks which are summarised below.
The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk
management framework.
The Group’s risk management policies are established to identify and analyse the risks faced by the Group,
to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management
policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities.
The Group, through its training and management standards and procedures, aims to develop a disciplined
and constructive control environment in which all employees understand their roles and obligations.
(c)
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity
prices will affect the Group’s income or the value of its holdings of financial instruments. The objective of
market risk management is to manage and control market risk exposures within acceptable parameters, while
optimising returns.
(i)
Tariffs and commodity price risk
The tariffs for electricity, heat and transmission services applied by the Group’s significant subsidiaries are
currently partially determined by government bodies. The Group cannot directly influence or mitigate the
risks in relation to the change in tariffs.
During the years ended 31 December 2024 and 31 December 2023, UC RUSAL has entered into certain
commodity derivatives contracts in order to manage its exposure of commodity price risks.
(ii)
Interest rate risk
The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s long-
term debt obligations with floating interest rates (note 17). The Group’s policy is to manage its interest costs
by monitoring changes in interest rates with respect to its borrowings.
The following table details the interest rate profile of the borrowings at the reporting date.
31 December 2024
31 December 2023
Effective
interest rate
%
USD
million
Effective
interest rate
%
USD
million
Fixed rate loans and borrowings
Loans and bonds (note 17(a))
0%-16.75%
6,172
0.01%-18.75%
6,909
6,172
6,909
Variable rate loans and
borrowings
Loans and bonds (note 17(a))
3.02%-27%
4,445
3.65%-18.40%
4,015
4,445
4,015
10,617
10,924
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
287
286
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
The following table demonstrates the sensitivity to cash flows from interest rate risk arising from floating
rate non-derivative instruments held by the Group at the reporting date in respect of a reasonably possible
change in interest rates, with all other variables held constant. The impact on the Group’s profit before
taxation and equity and retained profits / accumulated losses is estimated as an annualized input on interest
expense or income of such a change in interest rates. The analysis has been performed on the same basis for
all years presented.
Increase/
decrease in
basis points
Effect on profit
before taxation
for the year
Effect on equity
for the year
USD million
USD million
As at 31 December 2024
Basis percentage points
+300
(133)
(107)
Basis percentage points
-300
133
107
As at 31 December 2023
Basis percentage points
+100
(40)
(32)
Basis percentage points
-100
40
32
(iii)
Foreign currency risk
The Group is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency
other than the respective functional currencies of group entities, primarily USD but also the RUB, CNY and
EUR. The currencies in which these transactions primarily are denominated are RUB, USD, CNY and EUR.
Borrowings are primarily denominated in currencies that match the cash flows generated by the underlying
operations of the Group, primarily USD but also RUB, CNY and EUR. This provides an economic hedge.
In respect of other monetary assets and liabilities denominated in foreign currencies, the Group ensures that
its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when
necessary to address short-term imbalances or entering into currency swap arrangements.
The Group’s exposure at the reporting date to foreign currency risk arising from recognised assets and
liabilities denominated in a currency other than the functional currency of the entity to which they relate is
set out in the table below. Differences resulting from the translation of the financial statements of foreign
operations into the Group’s presentation currency are ignored.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
USD-denominated
vs. RUB functional
currency
RUB-denominated
vs. USD functional
currency
EUR-denominated
vs. USD functional
currency
CNY-denominated
vs. USD functional
currency
CNY-denominated
vs. RUB functional
currency
Denominated in
other currencies
vs. USD functional
currency
31 December
31 December
31 December
31 December
31 December
31 December
USD million
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Non-current assets
−
−
41
57
18
19
−
13
−
−
−
−
Trade and other receivables
3
50
663
296
149
168
211
4
1
1
10
20
Cash and cash equivalents
−
1
138
465
72
253
814
712
35
1
202
30
Loans and borrowings
−
−
(1,402)
(193)
(17)
(22)
(2,674)
(3,768)
(132)
−
(29)
−
Non-current liabilities
−
−
(3)
(51)
(2)
(2)
−
−
−
−
(1)
(1)
Bonds
−
−
(492)
(1)
−
−
(2,900)
(3,292)
(880)
(780)
(101)
(101)
Trade and other payables
(1)
(1)
(614)
(364)
(54)
(53)
(100)
(36)
−
−
(17)
(62)
Net exposure arising from
recognised assets and
liabilities
2
50
(1,669)
209
166
363
(4,649)
(6,367)
(976)
(778)
64
(114)
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
(iv)
Foreign currency sensitivity analysis
The following tables indicate the change in the Group’s profit before taxation and other comprehensive
income that could arise if foreign exchange rates to which the Group has significant exposure at the reporting
date had changed at that date, assuming all other risk variables remained constant.
Year ended 31 December 2024
Change in
exchange rates
USD million
Effect on profit
before taxation
for the year
USD million
Effect on equity
for the year
Depreciation of USD vs. RUB
15%
(251)
(251)
Depreciation of USD vs. EUR
10%
17
17
Depreciation of USD vs. CNY
5%
(232)
(232)
Depreciation of USD vs. other currencies
5%
3
3
Depreciation of CNY vs. RUB
15%
(146)
(117)
Year ended 31 December 2023
Change in
exchange rates
USD million
Effect on profit
before taxation
for the year
USD million
Effect on equity
for the year
Depreciation of USD vs. RUB
15%
24
24
Depreciation of USD vs. EUR
10%
36
36
Depreciation of USD vs. CNY
5%
(318)
(318)
Depreciation of USD vs. other currencies
5%
(6)
(6)
Depreciation of CNY vs. RUB
15%
(117)
(93)
Results of the analysis as presented in the above tables represent an aggregation of the effects on the Group
entities’ profit before taxation and other comprehensive income measured in the respective functional
currencies, translated into USD at the exchange rates ruling at the reporting date for presentation purposes.
The sensitivity analysis assumes that the change in foreign exchange rates had been applied to re-measure
those financial instruments held by the Group which expose the Group to foreign currency risk at the
reporting date. The analysis excludes differences that would result from the translation of financial statements
of foreign operations into the Group’s presentation currency. The analysis has been performed on the same
basis for all years presented.
(d)
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The
Group’s policy is to maintain sufficient cash and cash equivalents or have available funding through an
adequate amount of committed credit facilities to meet its operating and financial commitments.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
289
288
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
The following tables show the remaining contractual maturities at the reporting date of the Group’s
non-derivative financial liabilities, which are based on contractual undiscounted cash flows (including
interest payment computed using contractual rates, or if floating, based on rates current at the reporting date)
and the earliest the Group can be required to pay:
31 December 2024
Contractual undiscounted cash outflow
Within
1 year or on
demand
More than
1 year but
less than
2 years
More than
2 years but
less than
5 years
More than
5 years
Total
Carrying
amount
USD
million
USD
million
USD
million
USD
million
USD
million
USD
million
Trade and other payables to
third parties
1,429
1
−
−
1,430
1,430
Trade and other payables to
related parties
270
−
−
−
270
270
Bonds, including interest payable
3,334
1,043
541
137
5,055
4,595
Loans and borrowings,
including interest payable
3,557
3,039
1,065
1,042
8,703
6,169
Other contractual obligations
32
51
−
−
83
−
8,622
4,134
1,606
1,179
15,541
12,464
31 December 2023
Contractual undiscounted cash outflow
Within
1 year or on
demand
More than
1 year but
less than
2 years
More than
2 years but
less than
5 years
More than
5 years
Total
Carrying
amount
USD
million
USD
million
USD
million
USD
million
USD
million
USD
million
Trade and other payables to
third parties
1,156
4
−
−
1,160
1,160
Trade and other payables to
related parties
161
−
−
−
161
161
Bonds, including interest payable
768
3,280
437
−
4,485
4,252
Loans and borrowings,
including interest payable
2,383
2,492
2,987
360
8,222
6,812
Other contractual obligations
36
58
−
−
94
−
4,504
5,834
3,424
360
14,122
12,385
At 31 December 2024 and 31 December 2023 the Group’s contractual undertaking to provide loans under
the loan agreement between Metals segment, PJSC RusHydro and BoAZ is included at maximum exposure
for the Group in the liquidity risk disclosure above.
(e)
Credit risk
The Group trades only with recognised, creditworthy third parties. It is the Group’s policy that all customers
who wish to trade on credit terms are subject to credit verification procedures. The majority of the Group’s
third party trade receivables represent balances with the world’s leading international corporations operating
in the metals industry. In addition, receivable balances are monitored on an ongoing basis with the result that
the Group’s exposure to credit loss is not significant. Goods are normally sold subject to retention of title
clauses, so that in the event of non-payment the Group may have a secured claim. The Group does not require
collateral in respect of trade and other receivables. The details of impairment of trade and other receivables
are disclosed in note 15. Cash balances are held with high credit quality financial institutions. The extent of
the Group’s credit exposure is represented by the aggregate balance of financial assets and financial
guarantees and loan commitments given.
At 31 December 2024 and 31 December 2023, the Group has no concentration of credit risk within any single
largest customer but 37.9% and 9.3% of the total trade receivables were due from the Group’s five largest
customers.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
(f)
Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going
concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an
optimal capital structure to reduce the cost of capital.
The Group manages its capital structure and makes adjustments to it, in light of changes in economic
conditions. To maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence
and to sustain future development of the business.
The Board seeks to maintain a balance between higher returns that might be possible with higher levels of
borrowings and the advantages and security afforded by a sound capital position.
There were no changes in the Group’s approach to capital management during the year.
(g)
Master netting or similar agreements
The Group may enter into sales and purchase agreements with the same counterparty in the normal course of
business. The related amounts receivable and payable do not always meet the criteria for offsetting in the
statement of financial position.
The following table sets out the carrying amounts of recognised financial instruments that are subject to the
above agreements.
Year ended 31 December 2024
USD million
USD million
Trade receivables
Trade payables
Gross amounts
160
(165)
Net amounts presented in the statement of financial position
160
(165)
Amounts related to recognised financial instruments that do not meet
some or all of the offsetting criteria
(66)
66
Net amount
94
(99)
Year ended 31 December 2023
USD million
USD million
Trade receivables
Trade payables
Gross amounts
111
(107)
Net amounts presented in the statement of financial position
111
(107)
Amounts related to recognised financial instruments that do not meet
some or all of the offsetting criteria
(37)
37
Net amount
74
(70)
21.
Commitments
(a)
Capital commitments
The Group had outstanding capital commitments which had been contracted for at 31 December 2024 and
31 December 2023 in the amount of USD 1,356 million and USD 944 million, including VAT, respectively.
These commitments are due over a number of years.
(b)
Purchase commitments
Commitments with third parties for purchases of alumina, bauxite, other raw materials and other purchases
in 2025-2044 under supply agreements are estimated from USD 5,060 million to USD 6,473 million at
31 December 2024 (31 December 2023: USD 3,552 million to USD 4,480) depending on the actual purchase
volumes and applicable prices.
Commitments with related parties for purchases of alumina, bauxite, other raw materials and other purchases
in 2025-2034 under supply agreements are estimated from USD 7,632 million to USD 8,208 million at
31 December 2024 depending on the actual purchase volumes and applicable prices.
STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
291
290
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
Commitments with related parties for purchases of primary aluminium, alloys and other purchases in
2025-2030 under supply agreements are estimated from USD 4,330 million to USD 5,746 million at
31 December 2024 (31 December 2023: USD 4,469 million to USD 6,029 million) depending on the actual
purchase volumes and applicable prices.
(c)
Sale commitments
Commitments with third parties for sales of alumina and other raw materials in 2025-2044 are estimated
from USD 740 million to USD 919 million at 31 December 2024
(31 December 2023: from
USD 560 million to USD 691 million) and will be settled at market prices at the date of delivery.
Commitments with related parties for sales of alumina and other raw materials in 2025-2033 are
estimated from USD 3,384 million to USD 3,849 million at 31 December 2024 and will be settled at market
prices at the date of delivery.
Commitments with third parties for sales of primary aluminium and alloys in 2025-2029 are estimated to
range from USD 6,327 million to USD 7,153 million at 31 December 2024 (31 December 2023: from
USD 5,269 million to USD 5,901 million).
As at 31 December 2024 there were no commitments with related parties for sales of primary aluminium and
alloys (31 December 2023: from USD 215 million to USD 262 million).
(d)
Social commitments
The Group contributes to the maintenance and upkeep of the local infrastructure and the welfare of its
employees, including contributions toward the development and maintenance of housing, hospitals, transport
services, recreation and other social needs of the regions of the Russian Federation where the Group’s
production entities are located. The funding of such assistance is periodically determined by management
and is appropriately capitalised or expensed as incurred.
22.
Contingencies
(a)
Taxation
Russian tax, currency and customs legislation is subject to varying interpretations, and changes, which can
occur frequently. Management’s interpretation of such legislation as applied to the transactions and activities
of the Group may be challenged by the relevant local, regional and federal authorities. Recent developments
in the Russian environment suggest that the authorities in this country are becoming more active in seeking
to enforce, through the Russian court system, interpretations of the tax legislation, in particular in relation to
the use of certain commercial trading structures, which may be selective for particular tax payers and different
from the authorities’ previous interpretations or practices. Recent events within the Russian Federation
suggest that the tax authorities are taking a more assertive and substance-based position in their interpretation
and enforcement of tax legislation.
In addition to the amounts of income tax the Group has provided, there are certain tax positions taken by the
Group where it is reasonably possible (though less than 50% likely) that additional tax may be payable upon
examination by the tax authorities or in connection with ongoing disputes with tax authorities. The Group’s
best estimate of the aggregate maximum of additional amounts that it is reasonably possible (though less than
50% likely) may become payable if these tax positions were not sustained at 31 December 2024 is
USD 14 million (31 December 2023: USD 22 million).
(b)
Environmental contingencies
The Group and its predecessor entities have operated in the Russian Federation, Jamaica, Guyana, the
Republic of Guinea and the European Union for many years and certain environmental problems have
developed. Governmental authorities are continually considering environmental regulations and their
enforcement and the Group periodically evaluates its obligations related thereto. As obligations are
determined, they are recognised immediately. The outcome of environmental liabilities under proposed or
any future legislation, or as a result of stricter enforcement of existing legislation, cannot reasonably be
estimated. Under current levels of enforcement of existing legislation, management believes there are no
possible liabilities, which will have a material adverse effect on the financial position or the operating results
of the Group. However, the Group anticipates undertaking significant capital projects to improve its future
environmental performance.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
(c)
Legal contingencies
The Group’s business activities expose it to a variety of lawsuits and claims which are monitored, assessed and
contested on an ongoing basis. Where management believes that a lawsuit or another claim would result in the
outflow of the economic benefits for the Group, a best estimate of such outflow is included in provisions in the
consolidated financial statements (note 18(e)). As at 31 December 2024, the amount of claims, where
management assesses outflow as possible approximates USD 24 million (31 December 2023: USD 25 million).
(d)
Other contingent liabilities
In September 2013, UC RUSAL and PJSC RusHydro entered into an agreement with BoAZ to provide loans,
if the latter is unable to fulfil its obligations under its credit facilities. The aggregate exposure under the
agreement is limited to RUB 16.8 billion (31 December 2024 and 31 December 2023: USD 166 million and
USD 188 million, respectively) and is split between the Group and PJSC RusHydro in equal proportion.
Based on management’s estimates, the arising financial guarantees related to this arrangement are not
significant to the consolidated financial statements.
23.
Related party transactions
(a)
Accounting policy
(a)
A person, or a close member of that person’s family, is related to the Group if that person:
(i)
Has control or joint control over the Group; or
(ii)
Has significant influence over the Group; or
(iii)
Is a member of the key management personnel of the Group or the Group’s parent.
(b)
An entity is related to the Group if any of the following conditions applies:
(i)
The entity and the Group are members of the same group (which means that each parent,
subsidiary and fellow subsidiary is related to the others);
(ii)
One entity is an associate or joint venture of the other entity (or an associate or joint venture of
a member of a group of which the other entity is a member);
(iii)
Both entities are joint ventures of the same third party;
(iv)
One entity is a joint venture of a third entity and the other entity is an associate of the third entity;
(v)
The entity is a post-employment benefit plan for the benefit of employees of either the Group
or an entity related to the Group;
(vi)
The entity is controlled or jointly controlled by a person identified in (a);
(vii)
A person identified in (a)(i) has significant influence over the entity or is a member of the key
management personnel of the entity (or of a parent of the entity);
(viii) The entity, or any member of a group of which it is a part, provides key management personnel
services to the group or to the group’s parent.
Close members of the family of a person are those family members who may be expected to influence, or be
influenced by, that person in their dealings with the entity.
(b)
Transactions with related parties
The Group transacts with related parties, the majority of which are capable of exerting significant influence
on the Metals segment, associates and joint ventures and other related parties.
Sales to related parties for the year are disclosed in note 5, receivables from and payables to related parties
are disclosed in note 15.
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292
CONSOLIDATED REPORT 2024
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
Purchases of raw materials and services from related parties for the period were as follows:
Year ended 31 December
2024
2023
USD million
USD million
Purchase of raw materials
(1,191)
(711)
Companies capable of exerting significant influence
(81)
(50)
Associates and joint ventures
(1,110)
(661)
Energy costs
(88)
(93)
Companies capable of exerting significant influence
(42)
(45)
Associates and joint ventures
(46)
(48)
(1,279)
(804)
(c)
Related parties balances
At 31 December 2024, included in non-current liabilities are balances of related parties – associates and joint
ventures of USD 18 million (31 December 2023: USD 17 million).
(d)
Remuneration to key management
For the year ended 31 December 2024 remuneration to key management personnel comprised short-term
benefits and amounted to USD 18 million from which Board members received USD 11 million (year ended
31 December 2023: USD 22 million from which Board members received USD 10 million).
24.
Events subsequent to the reporting date
On 24 February 2025 the European Union adopted the 16th Russia sanctions package. Among others, the
package contains a prohibition on the import of primary aluminium of Russian origin. A quota is stipulated
allowing 275,000 tons to be imported until 25 February 2026 and 50,000 tons during the rest of 2026. The
Group’s management estimates the effect of these sanctions as not significant to the Group.
In March 2025, UC RUSAL placed commercial non-documentary non-convertible interest-bearing bonds
series 001PC-05 in the amount of RUB 30 billion, with a coupon rate equal to the rate of the Key Rate plus
margin.
In March 2025, a subsidiary of the Group has drawn down the funds under an existing credit facility
agreement with a Russian bank for a total amount of RUB 42.6 billion At the same time, a subsidiary of the
Group entered into a cross-currency interest rate swap transaction from RUB to CNY in the amount of
CNY 3.5 billion
The funds under both transactions were used for partial refinancing of the existing issue of commercial bonds.
On 13 March 2025 subsidiary of the Group entered into an agreement with Pioneer group of companies and
KCap group of companies to acquire in three stages up to 50% of the entire share capital in Pioneer
Aluminium Industries Limited.
During the first stage, the Group will acquire 26% of the shares in Pioneer Aluminium Industries Limited for
the total consideration of USD 243.75 million plus the amount of appropriate contractual adjustments for net
working capital and debt as provided for in the agreement.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
25.
Significant subsidiaries
The significant entities of the Group, included in these consolidated financial statements, are as follows:
Place of
incorporation
and operation
Principal
activities
Ownership and
equity interest
31 December
Name
2024
2023
UC RUSAL
IPJSC United Company RUSAL
Russian Federation
Holding company
56.9%
56.9%
Compagnie Des Bauxites De Kindia S.A.
Guinea
Bauxite mining
100.0%
100.0%
Friguia SA
Guinea
Alumina
100.0%
100.0%
JSC RUSAL Achinsk
Russian Federation
Alumina
100.0%
100.0%
JSC RUSAL Boxitogorsk Alumina
Russian Federation
Alumina
100.0%
100.0%
Eurallumina SpA
Italy
Alumina
100.0%
100.0%
PJSC RUSAL Bratsk
Russian Federation
Smelting
100.0%
100.0%
JSC RUSAL Krasnoyarsk
Russian Federation
Smelting
100.0%
100.0%
JSC RUSAL Novokuznetsk
Russian Federation
Smelting
100.0%
100.0%
JSC RUSAL Sayanogorsk
Russian Federation
Smelting
100.0%
100.0%
LLC RUSAL RESAL
Russian Federation
Processing
100.0%
100.0%
JSC RUSAL SAYANAL
Russian Federation
Foil
100.0%
100.0%
CJSC RUSAL ARMENAL
Armenia
Foil
100.0%
100.0%
LLC RUS-Engineering
Russian Federation
Repairs and maintenance
100.0%
100.0%
JSC Russian Aluminium
Russian Federation
Holding company
100.0%
100.0%
Rusal Global Management B.V.
Netherlands
Management company
100.0%
100.0%
JSC United Company RUSAL Trading House
Russian Federation
Trading
100.0%
100.0%
Alumina & Bauxite Company Limited
British Virgin Islands
Trading
100.0%
100.0%
JSC Bauxite-Timana
Russian Federation
Bauxite mining
100.0%
100.0%
JSC Severo-Uralsky Bauxite Mine
Russian Federation
Bauxite mining
100.0%
100.0%
JSC RUSAL URAL
Russian Federation
Primary aluminium and
alumina production
100.0%
100.0%
LLC SUAL-PM
Russian Federation
Aluminium powders
production
100.0%
100.0%
JSC Kremniy
Russian Federation
Silicon production
100.0%
100.0%
LLC RUSAL-Kremniy-Ural
Russian Federation
Silicon production
100.0%
100.0%
UC RUSAL Alumina Jamaica Limited
Jamaica
Alumina
100.0%
100.0%
Kubikenborg Aluminium AB
Sweden
Smelting
100.0%
100.0%
RFCL Limited
Cyprus
Finance services
100.0%
100.0%
ILLC AKTIVIUM
Russian Federation
Holding and investment
company
100.0%
100.0%
Aughinish Alumina Ltd
Ireland
Alumina
100.0%
100.0%
LLC RUSAL Energo
Russian Federation
Electric power
100.0%
100.0%
Limerick Alumina Refining Ltd.
Ireland
Alumina
100.0%
100.0%
JSC RUSAL Management
Russian Federation
Management company
100.0%
100.0%
LLC RUSAL Taishet
Russian Federation
Smelting
100.0%
100.0%
LLC UC RUSAL Anode Plant
Russian Federation
Anodes
100.0%
100.0%
RUSAL Products GmbH
Switzerland
Trading
100.0%
100.0%
Casting and mechanical plant “SKAD” Ltd.
Russian Federation
Other aluminum production
75.0%
75.0%
LLC PGLZ
Russian Federation
Alumina
99.9%
99.9%
AL PLUS GLOBAL DMCC
UAE
Trading
100.0%
100.0%
AL PLUS TRADING DMCC
UAE
Trading
100.0%
100.0%
Beijing Rusal Trade Company Limited
China
Trading
100.0%
100.0%
RUSAL SHANGHAI ECONOMIC AND
TRADE COMPANY LIMITED
China
Trading
100.0%
100.0%
Power
ILLC EN+ HOLDING
Russian Federation
Holding company
100.0%
100.0%
JSC EN+ Generation (formerly JSC
EuroSibEnergo)
Russian Federation
Power generation /
Management company
100.0%
100.0%
JSC Irkutskenergo
Russian Federation
Power generation
100.0%
100.0%
LLC EN+ Hydro (formerly JSC
EuroSibEnergo – Hydrogeneration)
Russian Federation
Power generation
100.0%
100.0%
LLC Avtozavodskaya TEC
Russian Federation
Power generation
100.0%
100.0%
LLC Kompaniya VostSibUgol
Russian Federation
Coal production
100.0%
100.0%
LLC Razrez Cheremkhovugol
Russian Federation
Coal production
100.0%
100.0%
The nominal ownerships indicated in the table above are the same as effective holdings for all subsidiaries,
except for UC RUSAL subsidiaries since the Parent Company holds only 56.88% in the UC RUSAL’s share
capital.
STRATEGIC REPORT
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FINANCIAL STATEMENT
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295
294
CONSOLIDATED REPORT 2024
04
04
Appendicies
298
Independent auditor's report
300
Glossary
308
Contacts
STRATEGIC REPORT
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FINANCIAL STATEMENT
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Independent auditor's report
299
298
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FINANCIAL STATEMENT
APPENDICIES
Terms and abbreviations
Adjusted EBITDA
For any period of time, represents the operating result adjusted for depreciation, impairment of
non-current assets and losses on the sale of property, plant and equipment for the relevant period
Adjusted net 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
ALLOW
RUSAL’s aluminium brand with an independently verified low carbon footprint. Carbon footprint is less
than 4 t of CO2e per tonne of aluminium (Scope 1 and 2)
ALLOW INERTA
RUSAL’s aluminium brand with an independently verified low carbon footprint. Carbon footprint is less
than 0.01 t of CO2e per tonne of aluminium (Scope 1 and 2)
APAS
Automated Predictive Analytics System
APCS
Automated Process Control Systems
AS
Aluminium Stewardship Initiative
Aughinish
Aughinish Alumina Refinery, Aughinish Alumina, or Aughinish Alumina Limited, a wholly owned
subsidiary of RUSAL incorporated in Ireland
B1
B1 Group of Companies
B20
Business 20
BAT
Best Available Technology
BEV
Battery Electric Vehicle
Board of Directors,
BoD
Board of Directors of the Company
BoAZ
Boguchany Aluminium Smelter (BoAZ) project involves the construction of a 600,000 tpa greenfield
aluminium smelter on a 230-ha site, located approximately 8 km to the south-east of the settlement of
Tayozhny in the Krasnoyarsk Region and approximately 160 km (212 km by road) from the Boguchany
HPP
BrAZ
Bratsk Aluminium Smelter or PJSC RUSAL Bratsk, a wholly owned subsidiary of RUSAL incorporated
under the laws of the Russian Federation
BRICS
Brazil, Russia, India, China and South Africa
BrSU
Bratsk State University
BSA
Behavioural Safety Audits
CACs
Capacity Allocation Contracts
CBK
Compagnie des bauxites de Kindia
CCS
Carbon Capture and Storage
CCA
Competitive Capacity Auction
Units of measurement
bn
Billion
CO2
Carbon dioxide
CO2e
CO2 equivalent
Gcal
Gigacalorie, a unit of measurement for heating energy
Gcal/h
Gigacalorie per hour, a unit of measurement for heating power capacity
GJ
Gigajoule
GJ/MWh
Gigajoules per megawatt-hour
GJ/t
Gigajoules per tonne
GW
Gigawatt (one million kilowatts)
GWh
Gigawatt-hour (one million kilowatt-hours)
h
Hour
ha
Hectare
kA
Kiloampere
km
Kilometre
kV
Kilovolt
kWh
Kilowatt-hour, a unit of energy produced
m3
Cubic metre
MJ
Megajoules
mn
Million
MW
Megawatt (one thousand kilowatt), a unit of measurement for electrical power capacity
MWh
Megawatt-hour (one thousand kilowatt-hours)
p. p.
Percentage point
RUB
Russian rouble
t, tonne
One metric tonne (one thousand kilograms)
TWh
Terawatt-hour
USD
US dollar
Glossary
301
300
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APPENDICIES
FCPA
US Foreign Corrupt Practices Law
FFI
Fauna & Flora International
FZ
Federal Law
G20
Group of Twenty
GDR
Global Depositary Receipt
GHG
Greenhouse Gas
GHG emissions
(Scope 1)
Direct greenhouse gas emissions from sources owned or controlled by the Company, e.g., emissions
from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions from chemical
production in owned or controlled process equipment. Direct CO2 emissions from the combustion of
biomass are not included in Scope 1, as they are reported separately
GHG emissions
(Scope 2)
Indirect energy greenhouse gas emissions. Scope 2 accounts for GHG emissions resulting from the
generation of heat and electricity purchased for the Company’s own needs. Purchased heat and
electricity is defined as electricity that is purchased or otherwise brought into the organisational
boundary of the Company. Scope 2 emissions physically occur at the facility where heat and electricity
are generated
GHG emissions
(Scope 3)
Greenhouse gas emissions from activities of assets not owned or controlled by the Company, but on
which it indirectly impacts in its value chain. The emissions include all sources outside the boundaries
of Scope 1 and 2, including those associated with the extraction and production of purchased
materials, fuels and services, transportation, outsourced activities, waste disposal, etc.
GRI
Global Reporting Initiative
GSM
General Shareholders Meeting
HPP
Hydropower Plant
HR
Human Resources Department
HSE
Health, Safety and Environment
HSE Committee
Health, Safety and Environment Committee
IAI
International Aluminium Institute
IATF 16949
IATF 16949 — a quality management system for organisations in the automotive industry, using the
Advanced Product Quality Planning (Production Part Approval Process) approach
ICS
Internal Control System
IEA
International Energy Agency
IEC
Industrial Environmental Control
IFRS
International Financial Reporting Standards
INRTU
Irkutsk National Research Technical University
IoT
Internet of Things
IPJSC
International Public Joint Stock Company
IrkAZ
Irkutsk Aluminium Smelter, a branch of RUSAL Bratsk in Shelekhov (Russia)
CDP
Carbon Disclosure Project
CEO
Chief Executive Officer
CHP
Combined Heat and Power
CIS
Commonwealth of Independent States
CO
Carbon Monoxide
Compliance
Committee
Compliance Committee of the Company’s Board of Directors
COP29
The 29th United Nations Climate Change conference, held in Baku, Azerbaijan, from 11 to 22 November
2024.
Corporate
Governance
Committee
Corporate Governance Committee of the Company’s Board of Directors
CPLC
Carbon Pricing Leadership Coalition
CUSIP
Committee on Uniform Securities Identification Procedures
Day-Ahead Market
The competitive selection of price bids of suppliers and buyers conducted by ATS a day before the
actual delivery of electricity with the determination of prices and volumes of delivery for each hour of
the day
Directorate for
Control
Directorate for Control and Internal Audit
EBIT
Earnings before Interest and Tax
EBITDA
Earnings before Interest, Tax, Depreciation and Amortisation
Eco-Soderberg
Eco-Soderberg is a technology developed by RUSAL to produce aluminium in modernised
electrolysers, the main advantage of which is the use of environmentally friendly mass with low pitch
content
EMS
Environmental Management System
EN+, En+, Company,
Group
International Public Joint Stock Company EN+ GROUP/IPJSC EN+ GROUP and its subsidiaries,
whose results are included in the consolidated financial statements prepared in accordance with the
International Financial Reporting Standards
EPC
Engineering, Procurement, and Construction Contracts
ESBN
ESCAP Sustainable Business Network
ESCAP
UN Economic and Social Commission for Asia and the Pacific
ESG
Environmental, Social and Governance
ETC (RUSAL)
Engineering and Technology Centre
EU
European Union
EuroSibEnergo
JSC EuroSibEnergo is a 100% subsidiary of En+ Group, managing its power assets. In December 2024,
changed its name from JSC EuroSibEnergo to JSC En + Generation
FCA
UK’s Financial Conduct Authority
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Market Council
A non-profit organisation formed as a non-profit partnership uniting, on the basis of membership,
electric power entities and large electric power consumers. The tasks of the Council are to ensure
the proper functioning of the commercial infrastructure of the market and the effective relationship
between the wholesale and retail electricity markets, the creation of favourable conditions for
attracting investments in the electric power industry; creating equal conditions for wholesale and
retail market participants when developing regulatory documents on the functioning of the electric
power industry, and ensuring the self-regulation of the system of wholesale and retail trade in electric
power, capacity, other goods and services permissible in the wholesale and retail electricity markets.
The goal of the Council is to ensure the energy security of the Russian Federation, the unity of the
economic space, freedom of economic activity and competition in the wholesale and retail electricity
markets by balancing the interests of producers and buyers and meeting needs of the society in terms
of having a reliable and stable source of electrical energy
MBA
Master of Business Administration
Metals segment
The Metals segment is represented by UC RUSAL (56.88% owned by En+ Group). The power assets of
UC RUSAL are also included into the Metals segment
MIIT
Russian University of Transport
MPG
Platinum Group Metals
Net debt
The sum of outstanding loans, borrowings and bonds less total cash and cash equivalents as at the end
of the relevant period
New Energy
The New Energy Programme involves large-scale overhaul and replacement of the core equipment at
the Company’s largest Siberian HPPs, i.e., Krasnoyarsk, Bratsk, Irkutsk and Ust-Ilimsk. The programme
provides for the modernisation of hydroelectric generation units and the replacement of runners
NkAZ
Novokuznetsk Aluminium Smelter or JSC RUSAL Novokuznetsk, a company incorporated under the
laws of the Russian Federation, which is a wholly owned subsidiary of UC RUSAL
Nominations
Committee
Nominations Committee of the Company’s Board of Directors
Norilsk Nickel
MMC NORILSK NICKEL PJSC, incorporated under the laws of the Russian Federation
NPO
Non-Profit Organisation
OECD
Organisation for Economic Co-operation and Development
OEM
Original Equipment Manufacturer
OFAC
Office of Foreign Assets Control of the US Treasury
OFAC Sanctions
The designation by OFAC of certain persons and certain companies which are controlled or deemed to
be controlled by some of these persons into the Specially Designated Nationals List
OHS
Occupational Health and Safety
Irkutskenergo
Irkutsk Public Joint Stock Company of Energetics and Electrification, a power generating company
controlled by En+ by more than 30% of Irkutskenergo’s issued share capital
ISIN
International Securities Identification Number
ISO 14001
International standard “Environmental management systems — Requirements with guidance for use”,
which has been developed by the International Organisation for Standardisation to set criteria for
environmental management systems and which is the basis for certification
ISO 26000:2012
International standard “Guidance on social responsibility”, which has been developed by the
International Organisation for Standardisation to provide guidance on social responsibility; however, it
is not a certification standard
ISO 27001:2005
International standard “Information technology — Security techniques — Information security
management systems — Requirements”, which has been developed by the International Organisation
for Standardisation to set criteria for information security management systems and which is the basis
for certification
ISO 45001:2018
International standard “Occupational health and safety management systems – Requirements with
guidance for use”, which has been developed by the International Organisation for Standardisation to
set criteria for OHS management systems and which is the basis for certification
ISO 50001:2018
International standard “Energy management systems — Requirements with guidance for use”, which
has been developed by the International Organisation for Standardisation to set criteria for energy
management systems and which is the basis for certification
ISO 9001:2015
International standard “Quality management systems — Requirements”, which has been developed by
the International Organisation for Standardisation to set criteria for quality management systems and
which is the only standard for certification in quality management
ISU
Irkutsk State University
ITD
Information Technology Directorate
JSC
Joint Stock Company
Kaizen
An approach that promotes continuous process improvement. It is based on creating a corporate
culture based on communication and cooperation between employees for incremental process
improvements
KPI
Key Performance Indicator
KrAZ
Krasnoyarsk Aluminium Smelter or JSC RUSAL Krasnoyarsk, a wholly owned subsidiary of RUSAL
incorporated under the laws of the Russian Federation
KUBAL
Kubikenborg Aluminium AB, a wholly owned subsidiary of RUSAL incorporated in Sweden
Listing Rules
The Listing Rules published by the UK’s Financial Conduct Authority in its capacity as competent
authority under the Financial Services and Markets Act 2000 (as amended) and the FCA’s Disclosure
Guidance and Transparency Rules
LLC
Limited Liability Company
LTIFR
The Lost Time Injury Frequency Rate calculated by the Group as the sum of fatalities and lost time
injuries per 200,000 man-hours
MADI
Moscow Automobile and Road Construction State Technical University
Management Team
Executive Directors and Officers of the Company
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RusHydro
RusHydro PJSC (Public Joint-Stock Company Federal Hydro-Generating Company – RusHydro)
organised under the laws of the Russian Federation, an independent third party
SanPin
Sanitary Rules and Regulations
SAP system
Systems Analysis and Programme Development
SASB
Sustainability Accounting Standards Board
SECR
Streamlined Energy and Carbon Reporting
SHL
Computerised standardised testing enabling organisations to evaluate candidates against multiple
criteria
SAZ
Sayanogorsk Aluminium Smelter or JSC RUSAL Sayanogorsk, a wholly owned subsidiary of the
Company, incorporated under the laws of the Russian Federation
SFO
Special Financial Organisation
SibFU
Siberian Federal University
SibVAMI
Siberian Scientific Research and Design Institute of Aluminium and Electrode Industry
SIF
Social Insurance Fund
Signal
En+ Corporate 24-hour Hotline
SKAD
The largest Russian company producing cast automotive wheels from aluminium alloys
SPCC
Spill Prevention, Control, and Countermeasure
SPP
Solar Power Plant
SSP
Shared Socioeconomic Pathways
Tandem perovskite
Class of semiconductors that combines the advantages of organic and inorganic semiconductors,
which is a more competitive material for solar cells than silicon
TNFD
Taskforce on Nature-Related Financial Disclosures
TPP
Thermal Power Plant
UAZ
Urals Aluminium Smelter, a branch of JSC RUSAL Ural
UN
United Nations Organisation
UN Energy
The United Nations inter-agency mechanism on energy issues. Its goal is to form a coherent approach
to sustainable energy
UN Global Compact
United Nations Global Compact
UN SDGs
United Nation’s Sustainable Development Goals
UNESCO
United Nations Educational, Scientific and Cultural Organisation
UNFCCC
United Nations Framework Convention on Climate Change
UNIVER
En+ Internal E-Learning Portal
USSR
Union of Soviet Socialist Republics
WPP
Wind Power Plant
Ore Reserves
The economically mineable part of a Measured and/or Indicated Mineral Resource. It includes
diluting materials and allowances for losses, which may occur when the material is mined. Relevant
assessments and studies were carried out taking into account the impact of realistically assumed
factors related to mining and metallurgical activity, as well as economic, marketing, social and
government factors and the changes caused by them. These assessments demonstrate that extraction
could reasonably be justified at the time of reporting. Ore Reserves are sub-divided in order of
increasing confidence into Probable Ore Reserves and Proved Ore Reserves
PROBABLE ORE RESERVE
The economically mineable part of an Indicated, and in some circumstances, a Measured Mineral
Resource. It includes diluting materials and allowances for losses which may occur when the material
is mined. Relevant assessments and studies were carried out taking into account the impact of
realistically assumed factors related to mining and metallurgical activity, as well as economic,
marketing, social and government factors and the changes caused by them. At the time of reporting,
these assessments demonstrate that extraction could reasonably be justified
PROVED ORE RESERVE
The economically mineable part of a Measured Mineral Resource. It includes diluting materials and
allowances for losses which may occur when the material is mined. Relevant assessments and studies
were carried out taking into account the impact of realistically assumed factors related to mining and
metallurgical activity, as well as economic, marketing, social and government factors and the changes
caused by them. At the time of reporting, these assessments demonstrate that extraction could
reasonably be justified
PAH
Polycyclic Aromatic Hydrocarbons
PGLZ
Pikalevsky Alumina Refinery
PHEV
Plug-in Hybrid Electric Vehicle
Power segment
The Power segment is predominantly comprised of power assets and operations owned by En+ Group.
The Power segment engages in all aspects of the power industry, including electric power generation,
power trading and supply
PPE
Personal Protective Equipment
PPP
Public-Private Partnership
QMS
Quality Management System
R&D
Research and Development
RA
Rating Agencies
RAO UES
Unified Energy System of Russia
RAS
Russian Academy of Sciences
REEV
Range-Extended Electric Vehicles
Remuneration
Committee
Remuneration Committee of the Company’s Board of Directors
RES
Renewable Energy Sources
RREDA
Russia Renewable Energy Development Association
RSPP
Russian Union of Industrialists and Entrepreneurs
RUDN
Peoples’ Friendship University of Russia
RUSAL SAYANAL
JSC RUSAL SAYANAL, a subsidiary of RUSAL incorporated under the laws of the Russian Federation
RUSAL, Metals
segment
United Company RUSAL Plc, a limited liability company incorporated under the laws of Jersey
(56.88% owned by En+)
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STRATEGIC REPORT
SUSTAINABLE DEVELOPMENT
FINANCIAL STATEMENT
APPENDICIES
Unless otherwise stated, the information presented in the Report
reflects the Company’s status during the review period from
1 January 2024 to 31 December 2024 (the “Review Period“)
and, in some instances, discloses significant events that took
place up to the moment of publication of this report. Therefore,
all forward-looking statements, analyses, reviews, discussions,
commentaries and risks presented in the Report (save for this
section, or unless otherwise specified) are based upon
information on the Company covering the Review Period only.
The Report includes statements that are, or may be deemed
to be, forward-looking statements. In the Report, information
about Company’s strategy, plans, objectives, goals, future
events, or intentions as well as the terms “believes”, “estimates”,
“plans”, “projects”, “anticipates”, “expects”, “intends”, “may”,
“will” or “should” in various forms shall indicate forward-looking
statements. Nevertheless, forward-looking statements may and
often do vary from the Company’s actual results. Any forward-
looking statements are exposed to risks relating to future
events and other risks, uncertainties and assumptions relating
to the Company’s business, results of operations, financial
position, liquidity, prospects, growth, or strategies.
The data presented in the Report on industry, market and
competitive position comes from official or third-party sources.
It is generally stated that the data from any third-party
industry publications, studies and surveys was obtained
from the sources believed to be reliable, but that there is no
guarantee of the accuracy or completeness of such data.
Although the Company reasonably believes that each of these
publications, studies and surveys was prepared by a reputable
party, neither the Company nor any of its respective directors,
officers, employees, agents, affiliates, advisors, or agents,
have independently verified the data contained therein.
Moreover, certain industry, market and competitive position
data reflected in the Report comes from the Company’s
internal research and estimates based on the knowledge
and expertise of the Company’s management. Although
the Company reasonably believes that such research and
estimates are accurate, they and their fundamental methodology
and assumptions have not been verified for accuracy
by any independent source.
After the Report was prepared, the Company’s operations,
its operating and financial results may have been affected
by external or other factors, including the geopolitical conflict
in Ukraine and sanctions imposed by the other nations against
the Russian Federation, Russian individuals and legal entities.
These and other factors are beyond the Company’s control and
may have a negative impact on the producing capabilities of En+.
Contacts
Limiation of liability
8, Oktyabrskaya St., office 34, Kaliningrad,
Kaliningrad Region, 236006, Russia
Tel.: +7 401 269-74-36
Fax: +7 401 269-74-37
PR Department
Tel.: +7 495 642 7937
Email: press-center@enplus.ru
1 Vasilisy Kozhinoy St., Moscow, 121096, Russia
Tel.: +7 495 642-79-37
Fax: +7 495 642-79-38
IR Department
Tel.: +7 495 642-79-37
Email: ir@enplus.ru
https://www.enplusgroup.com/ru/
SC IRC
Tel.: +7 495 234-44-70
Email: info@mrz.ru
Website: www.mrz.ru
Kaliningrad
Media enquiries
Moscow
For investors
Website
Registar
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