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]