Statement from the Chairman of the Board of Directors

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.

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 5.5% 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.

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).