Financial Performance - Revenue for the first half of 2022 reached $7,153 million, up from $5,449 million in the same period of 2021, representing a growth of 31.1%[3] - Adjusted EBITDA increased to $1,807 million with an adjusted EBITDA margin of 25.3%, compared to $1,315 million and 24.1% in the previous year[3] - Net profit decreased to $1,680 million, resulting in a net profit margin of 23.5%, down from 37.0% in the prior year[3] - The total assets increased to $25,419 million, up from $20,906 million year-on-year, indicating a growth of 21.5%[3] - Revenue for the first half of 2022 was $7.153 billion, up from $5.449 billion in the same period of 2021, representing a year-on-year increase of 31%[12] - The adjusted EBITDA for the first half of 2022 was $1.807 billion, compared to $1.315 billion in the same period of 2021, reflecting a significant increase[12] - Gross profit for the first half of 2022 was $2,391 million, with a gross margin increase from 29.9% to 33.4%[26] - The company's profit before tax for the first half of 2022 was $2,364 million, up from $2,161 million in the same period of 2021[32] - The net profit for the first half of 2022 was $1,680 million, a decrease of 16.7% from $2,018 million in the same period of 2021[33] - Adjusted net profit for the first half of 2022 was $689 million, slightly up by 1.5% from $679 million in the same period of 2021[34] Market Conditions - The company faced significant challenges due to geopolitical tensions and sanctions, impacting operations and supply chains[4] - Global primary aluminum demand grew by 0.8% to 34.2 million tons in the first half of 2022, while demand in China contracted by 1.3% to 19.7 million tons[8] - Over 1 million tons of aluminum smelting capacity in the EU and the US was partially or completely shut down due to high production costs and negative profit margins[8] - The average aluminum price on the London Metal Exchange fell from a record high of $3,985 per ton in Q1 2022 to below $2,400 per ton in Q2 2022[8] - In the first half of 2022, global aluminum market recorded a supply shortage of 0.5 million tons, with the rest of the world also experiencing a shortage of 0.5 million tons, while China maintained supply-demand balance during the same period[9] - China's exports of unwrought aluminum, alloys, and aluminum products increased by 34.1% year-on-year to 3.51 million tons in the first half of 2022, marking 14 consecutive months of year-on-year growth[9] Production and Costs - The aluminum segment's cost per ton increased to $2,028 in the first half of 2022 from $1,523 in the same period of 2021, indicating rising production costs[11] - Alumina production decreased by 19.56% year-on-year to 3.3 million tons in the first half of 2022, primarily due to the suspension of production at the Nikolaev alumina refinery in Ukraine[14] - Bauxite production fell by 11.75% year-on-year to 6.74 million tons in the first half of 2022, driven by reduced demand due to lower alumina production[15] - The production of aluminum foil and packaging materials increased by 1.7% to 54.7 thousand tons in the first half of 2022 compared to the same period in 2021[16] Financial Position - The company's operating working capital increased by 75.5% to $5,143 million as of June 30, 2022, compared to $2,930 million at the end of 2021[38] - Inventory rose by 23.2% to $4,548 million as of June 30, 2022, from $3,692 million at the end of 2021[38] - Trade receivables increased by 54.5% to $2,543 million as of June 30, 2022, compared to $1,646 million at the end of 2021[39] - The company's debt-to-asset ratio was 28.7% as of June 30, 2022, compared to 32.2% at the end of 2021[49] - The return on equity was 11.3% for the first half of 2022, down from 21.6% in the same period of 2021[49] - The interest coverage ratio improved to 21.0 for the first half of 2022, compared to 14.9 in the same period of 2021[50] Strategic Initiatives - The company aims to adapt to the current market conditions and continue supporting its long-term strategic goals despite the challenges[6] - The company is committed to maintaining its position as a leading low-carbon aluminum producer and stabilizing the global aluminum market[4] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[112] Risks and Challenges - The company identified several business risks, including significant fluctuations in demand for raw materials and alloys due to global market volatility[62] - The company relies on uninterrupted power supply for its competitive position in the global aluminum industry, with rising electricity prices posing a significant risk[62] - Rusal's operations face risks related to labor disputes, labor shortages, and rising labor costs[63] - The company is dependent on third-party suppliers for several materials, including alumina and bauxite, which poses procurement cost risks[63] - The company is subject to sanctions from the U.S. Treasury Department's Office of Foreign Assets Control, impacting its operations[199] Corporate Governance - The company has adopted corporate governance standards to enhance business development and protect shareholder interests[186] - The company has established compliance policies to ensure adherence to regulatory requirements and best business practices[187] - The board held five meetings during the review period, with four instances where executive/non-executive directors may have had significant interests in transactions, and those directors abstained from voting[188] Shareholder Information - Oleg Deripaska holds a total of 8,643,557,087 shares, representing 56.89% of the issued share capital as of June 30, 2022[180] - Access Aluminum Holdings Limited has a controlling interest of 4,967,738,987 shares, which is 32.70% of the issued share capital as of June 30, 2022[180] - The company has not received notification of any other reportable interests exceeding 5% of issued shares as of June 30, 2022[182]

Financial Performance - The company's revenue for 2021 was $11,994 million, a significant increase from $8,566 million in 2020, representing a growth of 40.5%[9] - Adjusted EBITDA for 2021 reached $2,893 million, with an adjusted EBITDA margin of 24.1%, compared to 10.2% in 2020[9] - Net profit for 2021 was $3,225 million, resulting in a net profit margin of 26.9%, up from 8.9% in the previous year[9] - The total assets of the company increased to $20,906 million in 2021, up from $17,378 million in 2020[9] - The company’s net debt decreased to $4,749 million in 2021 from $5,563 million in 2020, indicating improved financial health[9] - The company reported total revenue of $1,421 million, with an increase in capital expenditures of $295 million and a decrease in dividends from associates and joint ventures by $550 million compared to the previous period[151] - The aluminum segment generated revenue of $9,102 million with a production volume of 3,590 thousand tons, while the alumina segment generated $2,649 million with a production volume of 7,554 thousand tons for the year ended December 31, 2021[153] - The aluminum segment's EBITDA was $3,139 million, reflecting an EBITDA margin of 34.5%, while the alumina segment reported an EBITDA of $113 million with a margin of 4.3%[153] Production and Operations - The company produced 1.8 million tons of alumina in 2021, but production was temporarily halted in March 2022 due to logistical challenges in Ukraine[4] - The company’s core smelting operations are strategically located near hydropower plants, meeting approximately 93% of its total electricity needs with renewable energy[14] - The company’s bauxite and nepheline syenite mining operations supply 77% of its alumina refining needs, ensuring a stable raw material supply[15] - The company operates 11 aluminum smelters, with 9 located in Russia, indicating a strong operational presence in the region[23] - The total aluminum production capacity across the company's smelters is 4,205 thousand tons, with an average capacity utilization rate of 90%[44] - The company operates nine alumina refineries with a total rated capacity of 13,908 thousand tons and an average utilization rate of 81%[50] - The company manages seven bauxite mines with a total rated capacity of 20,600 million tons and an average utilization rate of 73%[52] - The company has a diversified sales network, delivering aluminum products to key markets including Europe, the USA, and Southeast Asia[18] Environmental Sustainability - In 2021, the company maintained its position as a leading low-carbon aluminum producer, with a commitment to reduce greenhouse gas emissions by at least 35% by 2030 and achieve net-zero emissions by 2050[33] - The company is committed to environmental management and regularly reviews its policies to improve sustainability practices across all production facilities[19] - The company has reduced its corporate emissions by nearly 35%, industrial wastewater discharges by 60%, and freshwater consumption by over one-third due to implemented environmental measures[38] - The company emphasizes its commitment to sustainability and reliable low-carbon aluminum supply, aiming to lead the industry towards a greener future[33] - The company has established several strategic partnerships with organizations aiming to use low-carbon aluminum in their supply chains, successfully integrating ALLOW low-carbon aluminum into their operations[33] - The company has received high sustainability ratings, including an A- rating in the CDP climate ranking for the aluminum industry in 2021[78] - The company is focused on achieving the lowest carbon footprint, successfully producing aluminum with the lowest carbon footprint globally using inert anodes[82] Technological Advancements - The company has developed new energy-efficient smelting technologies RA-500 and RA-550, aiming to become the most energy-efficient technology in the industry[16] - The company achieved a significant reduction in operational costs by 10% through the introduction of inert anode technology, which also reduces greenfield project costs by over 30%[16] - The RA-550 electrolytic cell has been successfully piloted, achieving energy efficiency below 12,800 kWh/ton and a current efficiency of 96%[79] - The new RA-550 electrolytic cell design reduces the amount of used lining material by 80% and the number of linings and costs by 10-15%[79] - The company is developing the RA-800+ electrolytic cell, which aims to have the highest performance globally[79] - The company has successfully certified 13 production facilities under the ASI performance standards, enhancing its commitment to sustainable practices[78] Market Trends and Demand - Global aluminum demand increased by 8.8% year-on-year to 69.0 million tons in 2021, with demand in other regions rising by 12.8% to 28.6 million tons and China's demand increasing by 6.1% to 40.4 million tons[99] - The construction sector accounted for the largest portion of global aluminum demand, growing by 5% in 2021 compared to the previous year, and 3% compared to pre-pandemic levels in 2019[99] - The packaging industry saw a 9% growth in aluminum demand in 2021, continuing from a stable demand in 2020[99] - The global sales of pure electric and plug-in hybrid vehicles surged over 70% in 2021, with China's electric vehicle sales skyrocketing by 154%[99] Social Responsibility and Community Engagement - The company allocated over 45 million USD for social investment and charitable projects in 2021[95] - The "Easy Help" volunteer program allocated over 5.1 million rubles in funding, with an additional 4 million rubles from partners, supporting 60 projects across 14 cities[95] - The "Green Wave" environmental volunteer project provided over 3.9 million rubles in funding, benefiting 44 projects in 22 regions[95] - The company aims to invest 826 million rubles in social projects, focusing on the construction and modernization of social infrastructure and public recreational spaces[93] Employee Development and Safety - The total number of employees increased from 53,976 in 2020 to 57,933 in 2021, representing a growth of approximately 7.3%[170] - The company continued to develop its "New Generation" apprenticeship program, employing 213 apprentices in 2021[176] - The company has established a comprehensive employee incentive system, focusing on monetary compensation based on skills, complexity, and performance[171] - The lost time injury rate for 2021 was 0.18, a decrease from 0.20 in 2020, but still above the global average for the aluminum industry[169] Governance and Management - The company has adopted a corporate governance code based on the Hong Kong Stock Exchange Listing Rules, ensuring compliance and transparency in its operations[155] - The management team has no direct or indirect shareholding in the company as of the end of the fiscal year 2021[195][196] - The board is committed to implementing best practices in financial disclosure and governance, as evidenced by Burnham's initiatives at the United Nations[198] - The leadership team emphasizes collaboration and knowledge sharing to drive operational improvements and strategic initiatives[195][196]

Financial Performance - Revenue for the six months ended June 30, 2021, was $5,449 million, a 35.6% increase from $4,015 million in 2020[4] - Adjusted EBITDA for the same period was $1,315 million, with an adjusted EBITDA margin of 24.1%, compared to 5.5% in the previous year[4] - Net profit for the first half of 2021 was $2,018 million, resulting in a net profit margin of 37.0%, a significant improvement from a net loss of $124 million in 2020[4] - The adjusted net profit for the first half of 2021 was $679 million, compared to an adjusted net loss of $63 million in the same period of 2020[4] - Gross profit for the first half of 2021 was $1,630 million, up from $495 million in the same period of 2020, with the gross margin increasing from 12.3% to 29.9%[28] - Operating profit reached $942 million, a substantial increase from a loss of $106 million in the previous year[75] - The company reported a total of 7,637 thousand tons of bauxite mined in H1 2021, an increase from 7,469 thousand tons in the previous year[12] - The company reported a pre-tax profit of $2,161 million in the first half of 2021, compared to a pre-tax loss of $204 million in the same period of 2020[35] Production and Sales - Aluminium production remained stable at 1.868 million tons, with global primary aluminium demand increasing by 11.9% to 33.9 million tons in the first half of 2021[7] - The company sold 2,000 thousand tons of primary aluminum and alloys, compared to 1,890 thousand tons in the previous year, reflecting a growth in sales[12] - The average price of aluminum per ton on the London Metal Exchange was $2,245, up from $1,592 in the previous year[12] - The average realized aluminum price increased by 30.2% to $2,287 per ton in the first half of 2021, up from $1,756 per ton in the same period of 2020[22] - Sales of aluminum foil and other aluminum products generated $232 million, a 30.3% increase from $178 million in the first half of 2020[23] Sustainability Initiatives - The company signed a $200 million sustainability-linked pre-export financing loan in January 2021, aimed at supporting its low-carbon agenda[5] - The company aims to achieve carbon neutrality by 2050 through its breakthrough inert anode technology, which significantly reduces greenhouse gas emissions[6] - The company has established partnerships to provide low-carbon aluminium products to major manufacturers, reinforcing its commitment to sustainability[7] - Rusal plans to increase Aluminium Rheinfelden's alloy production capacity to 30,000 tons per year as part of its long-term growth strategy[66] - Rusal is testing a revolutionary inert anode technology that could nearly eliminate greenhouse gas emissions during aluminum production[68] - Rusal has begun construction of an open-pit bauxite mine in the Komi Republic, with reserves exceeding 14 million tons[68] Financial Position and Assets - Total assets as of June 30, 2021, were $20,466 million, up from $17,378 million at the end of 2020[4] - The company's total current assets reached $8,064 million, an increase from $5,877 million at the end of 2020[41] - The company’s debt as of June 30, 2021, amounted to $5,380 million, excluding an additional $2,457 million in bonds[45] - The company’s total equity rose to $9,340 million from $6,543 million, reflecting a stronger financial position[79] - The company reported a significant increase in cash and cash equivalents, reaching $3,766 million compared to $2,229 million in the previous year[79] Operational Efficiency and Cost Management - The company plans to implement a comprehensive reform plan to build new capacities at smelters in Krasnoyarsk, Bratsk, Irkutsk, and Novokuznetsk, aiming to reduce energy consumption by up to 20%[8] - Total sales cost increased from $3,520 million in the first half of 2020 to $3,819 million in the same period of 2021, representing an 8.5% increase, primarily driven by a 5.8% increase in primary aluminum sales volume[25] - Alumina cost rose from $296 million in the first half of 2020 to $356 million in 2021, mainly due to a 29.4% increase in procurement prices[26] - The company incurred $543 million in capital expenditures for property, plant, and equipment during the first half of 2021, compared to $392 million in the same period of 2020[84] Market Trends and Future Outlook - The global aluminum demand and production are expected to show positive trends, supported by increased business activity and government measures[92] - Future guidance indicates a projected increase in production capacity, aiming for a 10% rise in output over the next fiscal year[172] - The overall revenue for the last quarter showed a growth of 12% year-over-year, driven by increased demand in key markets[175] Corporate Governance and Compliance - The company adheres to high-quality corporate governance standards to enhance shareholder value and internal controls[160] - The board has ensured compliance with the Hong Kong Stock Exchange's corporate governance code throughout the review period[162] - The company has adopted a securities trading code that exceeds the standards set by the Hong Kong Stock Exchange's listing rules[164] Employee and Community Engagement - The company offers various employee benefits, including free medical services and subsidized housing programs, to enhance employee satisfaction and retention[58] - The company has implemented a performance-based bonus system for employees, ensuring alignment with individual key performance indicators[59] - The company has established a corporate social responsibility program, providing financial assistance to pensioners and veterans associated with its production facilities[58]

Financial Performance - In 2020, the company reported revenue of $8,566 million, a decrease of 11.7% from $9,711 million in 2019[7] - Adjusted EBITDA for 2020 was $871 million, with an adjusted EBITDA margin of 10.2%, compared to 9.9% in 2019[7] - The net profit for 2020 was $759 million, resulting in a net profit margin of 8.9%, down from 9.9% in 2019[7] - The company achieved a total asset value of $17,378 million, slightly down from $17,814 million in 2019[7] - The company’s debt net amount decreased to $5,563 million from $6,466 million in 2019, indicating improved financial stability[7] - Total revenue decreased by $1,145 million or 11.8% from $9,711 million in 2019 to $8,566 million in 2020[144] - Revenue from primary aluminum and alloys decreased by $931 million or 11.6% to $7,088 million in 2020 compared to $8,019 million in 2019, primarily due to a decline in aluminum prices and a 6.0% decrease in sales volume[146] - Revenue from alumina sales fell by 19.7% to $533 million in 2020 from $664 million in 2019, driven by an 18.7% drop in average selling price[146] - The company recorded a profit before tax of $716 million for the year ended December 31, 2020, down from $1,054 million in 2019[158] - Net profit for the year was $759 million in 2020, compared to $960 million in 2019, reflecting a decrease of 20.9%[161] Production and Capacity - The company produced 290,046 tons of aluminum and alloys at the BEMO smelter in 2020, an increase of 32,333 tons compared to 2019, with a total production since commissioning of 1,017,141 tons[55] - The company operates 92 aluminum smelters, with a total rated capacity of 3,801 thousand tons and an average capacity utilization rate of 98%[54] - The company’s alumina production capacity is 8.18 million tons, making it a significant player in the global alumina market[26] - The total production of aluminum foil increased by 5.6% to 103.44 thousand tons, with exports rising by 14.9% to 56.79 thousand tons[131] - The total aluminum production in Russia was 3,755 thousand tons, a slight decrease of 0.1% compared to 2019[118] - The production capacity of the Achinsk alumina refinery increased by 9.4% to 900 thousand tons in 2020, while Bogoslovsk's output decreased by 2.7% to 990 thousand tons[123] Environmental Initiatives - The company achieved an "A-" rating from the Carbon Disclosure Project, becoming the first in the global aluminum industry to receive this recognition[43] - The company plans to reduce benzene and polycyclic aromatic hydrocarbon emissions by 60% by 2024 through the use of environmentally friendly asphalt in its smelting plants[49] - The company has committed over $500,000 to support vulnerable retired employees during the COVID-19 pandemic, providing over 21,000 food packages and nearly 49,000 personal protective equipment sets[48] - The company has successfully introduced inert anode technology into its production process, aiming for a more sustainable green economy[49] - The company aims to reduce direct greenhouse gas emissions from its aluminum smelting plants by 15% by 2025 compared to 2014 levels[96] - The company has implemented an internal carbon pricing strategy of $20 per ton of CO2 equivalent since 2017 for new project developments[95] Community Support and Social Responsibility - The company allocated nearly $80 million to establish and equip medical emergency and rescue centers in response to the COVID-19 pandemic, benefiting thousands in Siberia, Ural, Ukraine, and Guinea[42] - The company provided over 42 million rubles to support the "Time to Help" project, which assisted 11,178 production workers and retirees during the pandemic[100] - The company engaged in public-private partnerships to promote socio-economic development through various projects and initiatives[99] - The company organized a volunteer project aimed at providing targeted assistance to retirees aged 65 and above, with 568 volunteers participating in packaging and delivery[100] - The company implemented a comprehensive social investment strategy across 12 regions in Russia, focusing on social infrastructure, public health, and support for vulnerable groups[99] Market and Sales Performance - The sales volume of value-added products increased by 11.3% to 1,722 thousand tons, representing 44% of total sales, compared to 37% in 2019[111] - The company successfully adjusted its geographical sales regions, with sales in Asia increasing to 25%, an 8 percentage point year-on-year growth, becoming the largest alloy supplier in Japan and South Korea[49] - The average aluminum price on the London Metal Exchange fell to $1,702 per ton in 2020, compared to $1,792 per ton in 2019[111] - Global aluminum demand decreased by 1.7% in 2020 to 63.9 million tons, with a notable recovery in the last quarter[112] - The aluminum price remained above $2,000 per ton in December 2020, supported by strong manufacturing data and economic stimulus expectations[112] Debt and Financing - The company extended the maturity date of its bilateral agreement with Norilsk Nickel and Sberbank from 2024 to 2027, with a reduction in interest rates[111] - Rusal secured a syndicated loan agreement of up to 45 billion rubles with VTB and Gazprombank, with a financing term of up to 15 years[175] - As of December 31, 2020, Rusal's total loans and borrowings amounted to $5.298 billion, excluding an additional $2.438 billion in bonds[175] - The group’s debt-to-asset ratio as of December 31, 2020, was 44.8%, down from 46.3% in 2019[180] Technological Advancements - The company is actively developing new energy-efficient smelting technologies, aiming to reduce operational costs by 10% and capital expenditures by over 30%[18] - The company has successfully transformed its green Söderberg technology, with over 25% of other smelters also undergoing transformation, resulting in lower total emissions and improved environmental indicators[79] - The introduction of a new alkaline thickener feeder at RUSAL Krasnoturyinsk reduced solid waste emissions by 25%, leading to decreased steam consumption in evaporators[84] - The company aims to continuously improve its environmental performance while balancing feasibility with social and economic factors[91] Employee Development and Training - The company continues to develop a talent pool through the "New Generation" apprenticeship program, which started in 2017, focusing on hiring high-potential young professionals[188] - The company organized a competition for the future metallurgy students, with participation from 3,300 students across 71 regions of the Russian Federation[191] - The management team focused on developing a new model for management and corporate capabilities to achieve strategic goals[192] - The company has established professional centers in various fields to accumulate and develop expertise systematically[193]

Financial Performance - Revenue for the first half of 2020 was $4,015 million, a decrease of 15.2% compared to $4,736 million in 2019[3] - Adjusted EBITDA was $219 million, with an adjusted EBITDA margin of 5.5%, down from 11.1% in the previous year[3] - Total revenue decreased by 15.2% from $4,736 million in the first half of 2019 to $4,015 million in the same period of 2020[23] - Adjusted EBITDA fell to $219 million, with a profit margin of 5.5%, down from $528 million and 11.1% in the previous year[15] - The gross profit for the first half of 2020 was $495 million, down from $805 million in the same period of 2019, with the gross margin decreasing from 17.0% to 12.3%[30] - The company's pre-tax loss for the first half of 2020 was $204 million, a significant decline from a profit of $715 million in the first half of 2019[37] - The net loss for the period was $124 million in the first half of 2020, compared to a profit of $625 million in the same period of 2019, mainly due to an environmental provision of $2,134 million recognized by Norilsk Nickel[38] - The adjusted net loss for the first half of 2020 was $63 million, compared to an adjusted net profit of $98 million in the first half of 2019, reflecting a decrease of 35.7%[39] - The aluminum segment's profit margin decreased from 10.5% in the first half of 2019 to 5.7% in the first half of 2020, while the alumina segment's margin shifted from positive 0.5% to negative 3.8%[41] Production and Sales - Aluminum production totaled 1,867 thousand tons, maintaining a stable level compared to the same period last year[6] - Sales of value-added products increased by 16.5% year-on-year, with their share in the product mix rising from 34% to 42%[6] - Aluminum production remained stable at 1.867 million tons, while value-added production decreased from 803,000 tons to 730,000 tons due to the COVID-19 pandemic[16] - Alumina production increased by 4.5% to 4.022 million tons, compared to 3.850 million tons in the same period last year[17] - Bauxite production decreased by 7.5% to 7.469 million tons, down from 8.073 million tons, primarily due to the suspension of operations in Guyana[18] - Revenue from primary aluminum and alloys decreased by $559 million or 14.4% to $3,318 million in the first half of 2020, primarily due to a decline in average aluminum prices and a 4.4% decrease in sales volume[24] - Alumina sales revenue fell by 28.8% to $242 million, driven by a 27.4% drop in average selling price and a 1.9% decrease in sales volume[25] - Sales revenue from foil and other aluminum products decreased by $27 million or 13.2% to $178 million, mainly due to reduced sales of aluminum wheels[25] Market Conditions - Global aluminum demand decreased by 6.6% year-on-year to 30.3 million tons in the first half of 2020, with demand outside of China dropping by 15.4% to 12.3 million tons[8] - In Europe, aluminum demand fell by 16.1% to 4 million tons in the first half of 2020 due to the impact of COVID-19 on automotive manufacturing and construction[9] - North American aluminum demand declined by 18.2% to 2.8 million tons in the first half of 2020, with manufacturing indices showing signs of recovery starting in May[9] - In South America, aluminum demand decreased by 10.5% to 0.5 million tons, primarily due to the COVID-19 outbreak in Brazil and ongoing financial issues in Argentina[9] - China's aluminum demand remained stable at 18 million tons in the first half of 2020, with a significant recovery in the second quarter[10] - The global aluminum market recorded a surplus of 1.8 million tons in the first half of 2020, with approximately 12% of smelters in other regions operating at a loss[11] Assets and Liabilities - Total assets decreased to $16,722 million from $17,814 million year-on-year[3] - Net debt reduced to $5,964 million from $6,466 million in the previous year[3] - The company's equity total decreased to $5.978 billion from $6.747 billion during the same period[75] - Total liabilities decreased to $10.744 billion from $11.067 billion[77] - The debt-to-assets ratio as of June 30, 2020, was 48.2%, up from 46.3% at the end of 2019[54] COVID-19 Impact - The company identified the COVID-19 pandemic as a significant risk factor affecting production and demand, particularly for value-added products related to the automotive market[62] - The company has implemented extensive preventive measures against COVID-19, including remote work and temperature monitoring[62] - The company is currently assessing the impact of the COVID-19 pandemic on its financial condition and future cash flows, with management implementing cost optimization measures[87] - The company has been affected by a decline in aluminum prices due to the COVID-19 pandemic, which has negatively impacted its revenue and profitability[87] Investments and Modernization - The company committed to invest approximately $190 million in modernizing the electrode production at the Sayanogorsk aluminum smelter from 2020 to 2023[7] - A new casting plant is being constructed at the Boguchansk aluminum smelter, enhancing the company's position as a leading producer of value-added products for the automotive industry[7] - The company announced an investment of approximately 600 million rubles for environmental modernization at the Volgograd aluminum smelter[65] - The company plans to invest 5.2 billion rubles in the modernization of the Sayanogorsk and Khakas aluminum smelters in 2020[65] Corporate Governance - The company has adopted international corporate governance standards to enhance business development and shareholder protection[166] - The company has committed to maintaining high-quality corporate governance to ensure transparency and accountability[166] - The board held five meetings during the six months ending June 30, 2020, with all independent non-executive directors present for matters involving significant interests disclosed by one or more directors[168] - The company has adopted a securities trading code that exceeds the standards set out in Appendix 10 of the Listing Rules, with all directors confirming compliance throughout the accounting period covered by the interim report[170] Employee and Labor Relations - The average number of employees decreased from 57,326 in H1 2019 to 52,611 in H1 2020, reflecting a reduction of approximately 8.5%[57] - Approximately 60% of the company's employees are union members, and 95% have signed collective agreements[59] - The company’s employee compensation is reviewed annually, considering performance evaluations and local labor market conditions[58]

Financial Performance - Revenue for 2019 was $9,711 million, a decrease of 5.5% from $10,280 million in 2018[9] - Adjusted EBITDA for 2019 was $966 million, resulting in an adjusted EBITDA margin of 9.9%, down from 21.0% in 2018[9] - Net profit for 2019 was $960 million, with a net profit margin of 9.9%, compared to 16.5% in 2018[9] - Revenue decreased by 5.5% to $9,711 million, while EBITDA dropped from $2,163 million in 2018 to $966 million in 2019[54] - Total revenue decreased by $569 million or 5.5% from $10,280 million in 2018 to $9,711 million in 2019[139] - Sales revenue from foil and other aluminum products increased by $64 million or 18.5% to $410 million in 2019, attributed to higher sales of aluminum wheels[141] - The average aluminum price per ton decreased from $2,110 in 2018 to $1,792 in 2019, impacting overall revenue[141] - The company's net working capital increased by 11% to $1.0 billion in 2019, influenced by higher inventory and accounts receivable[75] Production and Capacity - The production capacity of the Boguchansky aluminum smelter reached nearly 300,000 tons per year following the commissioning of the second phase in March 2019[18] - The Taishet aluminum smelter's first production line has a capacity of 428.5 thousand tons, with construction ongoing using internal funds[18] - The production capacity at the Boguchansky aluminum smelter is set to increase by 150 thousand tons, bringing total capacity to 300 thousand tons[54] - The total rated capacity of the aluminum smelters is 3,900 thousand tons, with an overall capacity utilization rate of 96%[59] - In 2019, the BEMO smelter produced 257,713 tons of aluminum, an increase of 111,025 tons compared to 2018, achieving its design capacity[60] - The company’s aluminum production totaled 3,757 thousand tons in 2019, a slight increase of 0.1% from the previous year[116] - The company produced 100,556 tons of prebaked anodes in 2019, with ongoing modernization projects to improve operational efficiency[118] Environmental Initiatives - The company aims to achieve zero greenhouse gas emissions through the development of inert anode technology, potentially reducing operating costs by 10%[17] - The company launched the "Green Million" initiative, planting 1 million trees as part of its environmental projects, with 500,000 pine trees planted in Irkutsk and Krasnoyarsk regions[49] - The company is recognized as a benchmark for environmental, social, and governance standards, maintaining a strong position in the Vigeo Eiris ranking of emerging market leaders[49] - The company aims to reduce sulfur dioxide emissions by 45% by 2023 and 90% by 2025, with a long-term goal of a 95% reduction by 2030[76] - The company has committed to being a responsible aluminum producer, as evidenced by its compliance with independent authority regulations[49] - Rusal's environmental strategy aims to reduce emissions, establish closed water supply systems for major production processes, and increase the volume of processed and recycled waste[96] - The company has undertaken steps to mitigate its operational impact on the environment and comply with applicable environmental laws and regulations[96] Market and Sales - The company has a diversified sales mix, delivering aluminum products to key markets including Europe, the USA, and Southeast Asia[17] - In 2019, the average aluminum price on the London Metal Exchange fell by nearly 15%, impacting overall financial performance[53] - Despite the price drop, aluminum and alloy sales increased by 13.8% year-on-year, with Q4 sales growing by 26.2% compared to Q4 2018, resulting in Q4 revenue of $2,489 million[108] - The average premium for aluminum increased by 32.4% in Q4 2019 to $143 per ton, compared to $108 per ton in Q4 2018[108] - The company aims to strengthen its position in key markets including the CIS, Europe, Asia, and the US[79] Investments and Financing - The company signed a sustainable development-related syndicated loan amounting to $1,085 million, the first of its kind in Russia[50] - The company completed a ruble bond placement valued at 60 billion rubles (approximately $930 million), reducing the interest rate from 9.0% to 7.45%[50] - The company optimized its debt structure through a $1,085 million sustainable export pre-financing loan and issued local bonds worth 15 billion rubles at a low interest rate of 7.45%[108] - The company has a syndicated aluminum export pre-financing loan of up to 1.085 billion USD, with quarterly repayments starting from January 2022 until November 2024[172] Corporate Governance and Compliance - The company has established a compliance department to ensure adherence to the Office of Foreign Assets Control (OFAC) regulations[183] - The board of directors held ten meetings during the year, with independent non-executive directors present in eight of those meetings where they had significant interests[168] - The audit committee was established to provide independent opinions on the company's financial reporting processes and risk management effectiveness[169] - The company adopted a corporate governance code based on the listing rules, ensuring compliance with the relevant provisions during the reporting period[168] Social Responsibility and Community Engagement - Rusal invested 1.172 billion rubles in social infrastructure projects, supporting 640 social and infrastructure projects across 22 towns, benefiting over 500,000 local residents[102] - The company conducted 296 educational activities under the "Urban Change Academy" program, with 8,742 participants, providing online courses in social design and entrepreneurship[102] - The "Get on Ski" project was launched in collaboration with En+ Group and the Russian Cross-Country Skiing Federation to promote a healthy lifestyle, with investments of 28 million rubles in Bratsk for the reconstruction of two sports facilities[105] - The company established the Russian-Guinea Infectious and Microbiological Science Diagnostic Center in Guinea, where 2,000 local residents voluntarily received vaccinations as part of an Ebola vaccine research program[105] Risk Management - The company emphasized the establishment of an effective risk management system to mitigate business risks, including defining and assessing risks and implementing mitigation measures[192] - The company reported that the terms of credit financing agreements impose certain restrictions on capital expenditures and dividend payments, which could adversely affect the company and its shareholders[193] - The company faces various litigation and claims, with an estimated outflow of claims amounting to approximately $21 million as of December 31, 2019, compared to $31 million as of December 31, 2018[195] Employee Development and Training - The company actively trains and develops its internal and external succession pool, providing professional knowledge to students[184] - The "New Generation" apprentice program, initiated in 2017, aims to revitalize the workforce by hiring high-potential young specialists, with over 85% of the 100 students from 2019 still employed at Rusal[186] - In 2019, over 4,000 students visited the company's production facilities for career guidance, promoting industry awareness among youth[186] - The company has established excellence centers at two universities to provide intensive training for students in metallurgy and mining[186]

Financial Performance - Revenue for the first half of 2019 was $4,736 million, a decrease of 5.2% compared to $4,997 million in the same period of 2018[4] - Adjusted EBITDA for the first half of 2019 was $528 million, with an adjusted EBITDA margin of 11.1%, down from $1,124 million and 22.5% in the same period of 2018[4] - Net profit for the first half of 2019 was $625 million, representing a net profit margin of 13.2%, compared to $952 million and 19.1% in the same period of 2018[4] - The company reported revenue of $2,566 million for the three months ended June 30, 2019, an increase from $2,253 million in the same period of 2018[18] - The adjusted EBITDA for the same period was $302 million, compared to $552 million in the previous year, reflecting a decrease in profitability[18] - The company reported a gross profit of $805 million for the six months ended June 30, 2019, down from $1,393 million in the same period of 2018[91] - Total comprehensive income for the six months ended June 30, 2019, was $1,062 million, down from $1,484 million in the same period of 2018, reflecting a decrease of 28.4%[94] - The company reported a profit of $352 million for the three months ended June 30, 2019, down from $408 million in the same period of 2018, a decline of 13.7%[153] Production and Sales - The production of aluminum increased by 1% in Q2 2019, while bauxite production rose by 10.7% during the same period[8] - Aluminum production for the six months ended June 30, 2019, was 1.867 million tons, a slight decrease of 0.2% from 1.870 million tons in the same period of 2018[19] - Alumina production increased by 0.9% to 3.850 million tons for the six months ended June 30, 2019, compared to 3.816 million tons in the same period of 2018[20] - Bauxite production rose significantly by 28.6% to 8.073 million tons for the six months ended June 30, 2019, from 6.280 million tons in the same period of 2018[21] - The sales volume of aluminum increased by 13.2%, contributing to revenue growth despite price declines[34] - Revenue from primary aluminum and alloys decreased by $182 million or 4.5% to $3,877 million, primarily due to a 15.6% decline in average realized aluminum price from $2,322 per ton to $1,960 per ton[30] - Revenue from alumina sales decreased by 23.9% to $340 million, driven by a 17.0% drop in sales volume and an 8.3% decline in average price[30] - Revenue from foil and other aluminum products increased by $35 million or 20.6% to $205 million, mainly due to a $40 million increase in aluminum wheel sales[30] Market Trends - Global primary aluminum demand increased by 1% year-on-year to 33 million tons in the first half of 2019, with demand in China growing by 1.4% to 18 million tons[10] - In Europe, primary aluminum demand slightly increased to 4.8 million tons in the first half of 2019, despite a decline in the manufacturing PMI to 47.6 in June[11] - North American primary aluminum demand decreased by 0.6% to 3.4 million tons in the first half of 2019, with light vehicle production showing initial signs of growth starting in May[10] - Global aluminum production grew by 1% to 31.9 million tons in the first half of 2019, resulting in a market deficit of 1.1 million tons[12] - The global primary aluminum demand is expected to increase by approximately 2% year-on-year to 67.5 million tons in 2019, with an anticipated market deficit of about 0.7-0.8 million tons[14] Environmental Initiatives - The company aims to achieve at least 95% of its energy from renewable hydropower or other non-carbon sources by 2025[6] - The company has initiated a large-scale project called Green Million, involving the planting of over 1 million trees in various regions of Russia[6] - The company’s carbon emissions decreased by 53% from 1990 to 2015, making it one of the cleanest aluminum producers globally according to Bloomberg Intelligence[6] - The company plans to monitor 500,000 hectares of reserve forests along the Yenisei River as part of its environmental initiatives[83] - The company plans to plant over 1 million trees in 2019 as part of its climate strategy to reduce its carbon footprint, contributing to the UN's goal of restoring 350 million hectares of forest by 2030[79] Financial Position and Capital Expenditures - As of June 30, 2019, the company's working capital was $2,569 million, a decrease of 9.4% from $2,834 million on December 31, 2018[48] - Capital expenditures for the aluminum segment were $202 million in the first half of 2019, compared to $116 million in the same period of 2018[47] - Capital expenditures for the first half of 2019 amounted to $353 million, including $61 million for electrolytic cell upgrades, primarily for maintaining existing production facilities[50] - The company reported a total borrowing of $695 million in the first half of 2019, down from $1.799 billion in the same period of 2018, showing a reduction in reliance on debt financing[101] - The company’s total assets reached $17,354 million as of June 30, 2019, compared to $15,777 million at the end of 2018, marking a growth of 10%[97] Debt and Liquidity - As of June 30, 2019, the company's loans and borrowings amounted to $6,532 million, excluding an additional $1,944 million in bonds[52] - The average maturity of the company's debt as of June 30, 2019, was 3.1 years[54] - The debt-to-asset ratio decreased from 52.5% at the end of December 2018 to 48.9% at the end of June 2019[62] - Cash and cash equivalents at the end of June 2019 were $926 million, up from $625 million at the end of December 2018[61] - The company’s cash and cash equivalents at the end of June 2019 stood at $926 million, up from $625 million at the end of December 2018, reflecting a strong liquidity position[101] Corporate Governance and Management - The audit committee held five meetings in the first half of 2019, reviewing financial statements and ensuring compliance with applicable accounting standards and regulations[73] - Rusal's board of directors underwent changes, with several appointments and resignations, including the appointment of Evgeny Kuryanov as an executive director[76] - The company launched the "New Generation" internship program, attracting 64 participants in the past six months[71] Legal and Regulatory Matters - The group has ongoing litigation with potential claims amounting to 2.8 billion USD from BFIG Group regarding a bidding process in Nigeria[191] - The group has recognized environmental liabilities but believes they will not have a significant adverse effect on its financial condition or operating results[190] - The company has not identified any new business risks or uncertainties for the first half of 2019 beyond those disclosed in the 2018 annual report[75]

Financial Performance - In 2018, RUSAL reported revenues of $10,280 million, an increase from $9,969 million in 2017, representing a growth of approximately 3.1%[6] - Adjusted EBITDA for 2018 was $2,163 million, with an adjusted EBITDA margin of 21.0%, slightly down from 21.3% in 2017[6] - The net profit attributable to shareholders was $1,698 million, resulting in a profit margin of 16.5%, up from 12.3% in the previous year[6] - Rusal's revenue increased by 3.1% to $10,280 million, with a net profit of $1,698 million, representing a 39.0% year-over-year increase[36] - The average aluminum price rose by 7.3% to $2,259 per ton, while the average premium decreased by 6.7% to $152 per ton[36] - Rusal's total assets stood at $15,777 million in 2018, with net debt of $7,442 million, reflecting a stable financial position[6] - The company’s total debt slightly decreased by $193 million during the fiscal year due to scheduled payments[36] - The successful issuance of new euro-denominated bonds raised over $1.5 billion, indicating strong investment potential and support from global investors[36] Production and Capacity - RUSAL accounted for approximately 5.8% of global aluminum production and about 6.2% of global alumina production in 2018[25] - In 2018, aluminum production totaled 3,753 thousand tons, an increase of 1.2% year-on-year, with a capacity utilization rate of 96%[42] - The sales volume of value-added products (VAP) reached 1,664 thousand tons, accounting for 45% of total sales[42] - The production cost per ton of aluminum in 2018 was $1,646, a 9.2% increase compared to 2017, primarily due to significant rises in aluminum and other raw material prices[42] - The total rated capacity of alumina refineries was 13,584 thousand tons, with a utilization rate of 79%[58] - RUSAL's bauxite production increased by 18.9% in 2018, reaching 13,847 thousand wet tons, compared to 11,645 thousand wet tons in 2017, driven by the restart of Friguia and the new Dian-Dian mine[177] - The production of nepheline syenite in 2018 was 4,294 thousand wet tons, a decrease of 0.9% from 4,332 thousand wet tons in 2017, primarily due to mining schedule issues[180] - RUSAL's aluminum foil production dropped by 12% in 2018 to 88.95 thousand tons, down from 101.06 thousand tons in 2017, attributed to sanctions-related restrictions[181] Environmental Initiatives - RUSAL launched a new low-carbon aluminum brand, ALLOW, which significantly reduces carbon footprint compared to industry averages, with 77% of its production in 2017 attributed to this brand[23] - The company has established long-term agreements with hydropower suppliers, meeting approximately 93% of its total electricity needs with renewable energy[14] - The company achieved a 7.5% reduction in direct greenhouse gas emissions per million tons of aluminum produced, with emissions levels at 2.11 million tons CO2 equivalent per million tons in 2018, down from 2.28 million tons in 2014[44] - RUSAL's aluminum smelting plants achieved a greenhouse gas (GHG) emission level of 2.8 tons of CO2 equivalent per ton of aluminum in 2017, significantly lower than the global average of 12.314 tons[129] - The company aims to reduce specified direct GHG emissions by 15% in aluminum smelting and 10% in alumina refining by 2025 compared to 2014 levels[130] - RUSAL's environmental strategy focuses on reducing emissions, including greenhouse gases, and improving environmental performance while considering community and economic factors[121] - RUSAL's internal carbon pricing strategy, implemented since 2017, is set at $20 per ton of CO2 equivalent for new projects[130] Strategic Projects and Innovations - The company is actively developing new energy-efficient smelting technologies, aiming to reduce operational costs by 10% and capital expenditures by over 30%[17] - The BEMO project, a joint venture with Rushydro, includes a hydropower plant with a capacity of 3,000 MW and an aluminum smelter in Krasnoyarsk, with a total capacity of nearly 300,000 tons per year[22] - The Taishet aluminum smelter, with a production line capacity of 428.5 thousand tons, is being constructed using internal funds[37] - RUSAL is committed to producing "green aluminum" and aims to capture a 25% market share with its ALLOW brand by 2022[37] - The company has developed a new zirconium-aluminum alloy for wire manufacturing, which has been approved as a substitute for copper in cable sheathing[91] - RUSAL's new reduction electrolyzer design is expected to reduce power consumption by 200-400 kWh per ton of output, enhancing energy efficiency in aluminum production[90] - The new Green Soederberg process has demonstrated a capital expenditure reduction of over 30% and achieved fluoride and sulfur dioxide removal efficiencies of 99% and 96.5%, respectively[88] Community and Social Responsibility - The company invested 748 million rubles in the "Rusal Land" program, supporting 636 social and infrastructure projects across 22 towns since its launch in 2011[136] - The company reported that over 500,000 local residents benefited from improved social infrastructure through its initiatives[136] - RUSAL's social investment strategy prioritizes community development and includes various sectors such as education, culture, and health[135] - The "Easy to Help" program has seen participation from over 5,000 partner organizations, with 3,000 employees supporting volunteer projects annually[140] - RUSAL's environmental initiative "Yenisei Day" involved 75,000 volunteers who collected 10 tons of riverbank waste, establishing a regional tradition[141] Market Trends and Demand - In 2018, global aluminum demand is expected to grow by 3.7% to 68 million tons, compared to a 3.6% increase to 65.6 million tons in 2017[152] - In Russia and the CIS, primary aluminum demand increased by 9.9% to 1.1 million tons in 2018, with expectations to grow to 1.2 to 1.25 million tons in 2019[152] - North America recorded a strong economic growth with GDP estimated to increase by 2.8% in 2018, while primary aluminum demand expanded by 1.6% to 6.9 million tons[154] - China's aluminum demand rose by 4.6% to 35.8 million tons in 2018, with an expected growth of 5.1% to 37.6 million tons in 2019[158] - The aluminum premium increased by 9% to 10% in 2018, despite significant market challenges including U.S. import tariffs and sanctions on RUSAL[156]