ЕВРАЗ. Годовой отчет за 2021 год - часть 1

 

  Главная      Книги - Разные     ЕВРАЗ. Годовой отчет за 2021 год

 

поиск по сайту            правообладателям  

 

 

 

 

 

 

 

 

 

 

 

содержание      ..      1       2         ..

 

 

 

ЕВРАЗ. Годовой отчет за 2021 год - часть 1

 

 

MEET EVRAZ
EVRAZ in figures
Strategic report
Corporate governance
Financial statements
Additional information
ANNUAL REPORT & ACCOUNTS 2021
MEET EVRAZ
Report boundaries
This annual report (“the Report”) presents the results for EVRAZ plc
CONTENTS
and its subsidiaries for 2021 divided into segments: Steel, Steel North
America and Coal. It details the Group’s operational and financial results
and sustainability activities in 2021.
Meet EVRAZ
The Report has been prepared in accordance with the disclosure
requirements of the United Kingdom and the Financial Conduct
EVRAZ in figures
4
Authority: the Companies Act 2006, the Listing Rules, the Disclosure
Guidance and Transparency Rules, and the Competition and Market
Strategic report
6
Authority. The Report has also been prepared taking into account
In construction and railway product markets in Russia.
the International Integrated Reporting Framework, and sustainability
Chairman’s introduction
7
reporting best practices.
CEO letter
10
In production of rails and large diameter pipes in North America.
EVRAZ business model
14
Operational model
16
Decarbonisation Pathway
18
In coking coal production in Russia.
ESG highlights
19
EVRAZ Business System
20
Market outlook
22
Strategic priorities
26
Impact of COVID-19
32
Sustainability management
54
Key performance indicators
34
Health, safety and environment
58
Financial review
36
Our approach
58
Global footprint
Business review
48
Occupational health and safety
61
Sustainability
54
Climate change and GHG emissions
62
Office
Steel segment
Steel, North America segment
Coal segment
Sustainable R&D
79
Environmental management
67
Digital transformation
83
Our people
71
Risks and risk management
84
Community relations
74
Russia
Viability statement
97
Anti-corruption and anti-bribery
76
Statement in accordance with
Nizhny Tagil
S172 of the Companies Act
98
Moscow
Non-financial reporting
100
Canada
Novokuznetsk
Corporate governance report
102
London
Czech Republic
Board of Directors
104
Kazakhstan
Switzerland
Managment
109
Corporate governance report
114
Audit Committee Report
126
USA
Chicago
Remuneration report
140
Director's report
154
Director's responsibility statement
162
FOR OUR
FOR OUR
FOR OUR
PARTNERS
PEOPLE
Financial statements
164
COMMUNITY
Independent auditor’s report
to the members of EVRAZ PLC
166
Additional information
284
TCFD compliance statement and index
284
Stock performance indicators
and shareholder information
288
Unsolicited telephone calls
and correspondence
289
Electronic shareholder communications
289
Definitions of selected alternative
performance measures
290
Data on mineral reserves
293
Short summary of relevant
anti-corruption policies
294
Terms and abbreviations
296
Legal disclaimer
303
Contact details
304
US$
m
13
mt
71,591
m
35
Social and social infrastructure
steel products sales
Employees (as of 31 December 2021)
maintenance expenses
2
3
Meet EVRAZ
EVRAZ IN FIGURES
Strategic report
Corporate governance
Financial statements
Additional information
ANNUAL REPORT & ACCOUNTS 2021
EVRAZ IN FIGURES
SHAREHOLDER
FINANCIAL HIGHLIGHTS
CSR HIGHLIGHTS
STRUCTURE
Total segment revenues1
Total segment EBITDA2
Diversity, % (number of people)
Men
Women
Geographic dispersion of institutional
shareholders, % of voting rights
Read more on
Read more on
page 36
page 36
3
10
73
303
19,573
51,637
US$ 14,159
m
US$ 5,015
m
23%
77%
19%
81%
27%
73%
2021
14,159
2021
5,015
2020
9,754
2020
2,212
2019
11,905
2019
2,601
Board
Senior Management
Employees
Steel
Coal
Steel,
Other
Eliminations and
Steel
Coal
Steel,
Other
Eliminations and
NA operations unallocated subsidiaries
NA operations unallocated subsidiaries
2021
10,188
2,321
2,324
535
(1,209)
2021
3,609
1,292
321
19
(226)
9.2%
United Kingdom
2020
6,969
1,490
1,779
410
(894)
2020
1,930
400
(28)
15
(105)
Read more on page 71
2019
8,143
2,021
2,500
483
(1,242)
2019
1,795
843
38
18
(93)
0.2%
Russia
Net debt
CAPEX3
Net profit
5.2%
Employees by region
10.2%
Europe
1.5%
(excl. UK, Russia)
North America
Asia&Pacific
↓21% YoY
↑40% YoY
↑3.6X YoY
US$
2,667
m
US$ 920
m
US$ 3,107
m
94.8
%
5.0
%
0.2
%
1.9%
Other
1. Total revenues include those from continuing operations (US$13,486 million in 2021 and US$9,452 million in 2020) and discontinued operations (US$673 million in 2021
Russia and CIS
North America
Europe
and US$302 million in 2020). See more in Note 3 of consolidated financial statements on page 202 and see page 290 for definition.
2. Total EBITDA includes that from continuing operations (US$3,692 million in 2021 and US$1,830 million in 2020) and discontinued operations (US$1,323 millon in 2021
and US$382 million in 2020). See more in Note 3 of consolidated financial statements on page 202 and see page 290 for definition..
3. Including payments on deferred terms recognised in financing activities.
OPERATING HIGHLIGHTS
Crude steel output
Steel products output4
Iron ore products output
LTIFR (excluding fatalities)
Total air emissions
(including key emissions)
per million
13,569
kt
12,418
kt
14,399
kt
1.21
hours
370.69
kt
2021
13,569
2021
12,418
2021
14,399
2021
1.21
2021
370.69
Ultimate
2020
13,630
2020
12,768
2020
14,205
2020
1.35
2020
381.57
beneficial owners,
2019
13,814
2019
13,230
2019
13,765
2019
2.04
2019
396.22
% of voting rights4
Read more on page 61
Read more on page 68
Raw coking coal production
Coking coal concentrate production
Gross vanadium slag production5
EVRAZ GHG emissions
Freshwater intake for production needs
Roman Abramovich6
Gennady Kozovoy7
28.64%
5.74%
23,272
kt
15,962
kt
20,058
mtV
42.13
MtCO2e
199.42
m m3
Alexander Abramov6
Maxim Vorobyev8
2021
23,272
2021
14,448
1,514
15,962
2021
20,058
2021
42.13
2021
199.42
19.32%
3.01%
2020
20,653
2020
13,598
1,930
15,528
2020
19,533
2020
43.48
2020
206.20
Alexander Frolov6
Free-float
2019
26,140
2019
13,975
1,947
15,923
2019
18,380
2019
43.14
2019
205.32
9.65%
33.64%
Coal segment
Steel segment
Read more on page 62
Read more on page 69
4. Net of re-rolled volumes.
4
6. The number of shares per dealing notification dated 20 June 2019.
5
5. In tonnes of pure vanadium.
7. The number of shares is as per TR-1 Form: Notification of major interest in shares dated 6 February 2013. For Mr Kozovoy, includes shares held directly.
8. The number of shares per dealing notification dated 23 July 2021
ANNUAL REPORT & ACCOUNTS 2021
Strategic report
FOR A BETTER
CHAIRMAN’S
INTRODUCTION
FUTURE
Environment
Last year was one of considerable
Amid an exponential increase
turbulence, as COVID-19 continued to
in focus on the environment, the issue
of climate change is more prominent
disrupt many aspects of life for numerous
than ever on the global agenda.
individuals. In this reality, our people
EVRAZ recognises the contribution that
it should make to particular actions
demonstrated tremendous resilience, and
Alexander Abramov
in this area. In 2021, we pressed ahead
I am proud of their dedication and the
Non-Executive Chairman
with evaluating our climate-related
results that we achieved together.
risks in accordance with the Task Force
on Climate-related Financial Disclosures
(TCFD) recommendations. As part
of this, we have performed an update
of the qualitative assessments,
and scheduled the further financial
analysis of climate change risks.
For more details, see page 62
Continued
6
7
Meet EVRAZ
EVRAZ in figures
STRATEGIC REPORT
Corporate governance
Financial statements
Additional information
ANNUAL REPORT & ACCOUNTS 2021
To maintain focus and drive progress
tool here is employee engagement surveys,
operations are outside the UK. As such,
of the Sustainability Committee and Audit
serves the long-term interests of EVRAZ’
In recognition of its record performance
in this area, the Group regularly reviews its
which are reviewed and used to inform
there may be a requirement for other
Committee. She will not only enhance
shareholders, employees, clients and other
in 2021, EVRAZ has announced another
environmental strategy based on sustainable
actions needed by the management.
experience that better reflects a diversity
the Board expertise in finance and capital
stakeholders.
interim dividend. On 24 February 2022,
business practices and environmental
of views for the benefit of the Board
markets, but also assist the current
the Board voted to disburse US$0.50 per
principles. In turn, we endeavour to embed
With over 71 thousand employees,
and EVRAZ stakeholders.
independent non-executive team with her
The demerger will result in the creation of two
share, totalling US$729 million, with a record
these into every part of our value chain
EVRAZ recognises that the success
wide knowledge of Russian markets
distinct publicly listed businesses with leading
date of 11 March 2022 and payment date
to ensure compliance and mitigate impact.
of its business depends on its people.
and industry. Ms Gordon will seek election
positions in their respective fields, allowing
of 30 March 2022.
In this light, we place great emphasis
Appointment of Aleksey
by shareholders as an independent director
each to pursue tailored strategic, capital
In February 2021, EVRAZ presented its new
on social programmes. In 2021, we further
Ivanov as CEO
at the upcoming AGM in June 2022.
allocation and sustainability objectives.
environmental strategy, which includes
developed existing initiatives focusing
goals for 2030. These include reducing
on employee health, engagement
In the reporting period, the Board appointed
Although Karl Gruber and Sir Michael Peat
On 11 January 2022, at General Meeting,
our GHG emissions per tonne of steel
and training, as well as introducing new
Aleksey Ivanov, a senior vice president,
had both completed nine years’ service
EVRAZ shareholders approved the terms
by 20% compared with 2019, the base year,
ones. We also provide support through
as CEO to take over from Alexander Frolov,
as independent non-executive directors,
of the demerger and related matters.
which is in line with the current pledges
various means in the areas of education,
who remains as a non-executive director.
the Board was pleased that they had agreed
This marks another major milestone
of the transition to a low-carbon economy.
sport, environment, urban development
Alexander Frolov did a tremendous job
to remain in their posts to support the newly
in the transaction timeline.
and charity. In the reporting period,
for 12 years, and the Board is confident
appointed directors while the proposed
Later in the reporting period, we
the Group continued to dedicate significant
that Aleksey will build on and develop
demerger of PJSC Raspadskaya (hereafter
identified several measures to support
effort to helping employees and local
his good work. The Board appointed him
Raspadskaya) was finalised. The Board
our decarbonisation efforts between now
communities as part of its COVID-19
as a director of the Company and a member
deemed that both directors continued
Investment Programme
and 2025, with the main focus on energy
prevention and response measures.
of the Sustainability Committee
to be independent in accordance with the UK
efficiency. In addition, we have already
on 1 February 2022.
Corporate Governance Code. The Company
In mid December 2021, the Board approved
For more details, see pages 32-33
begun formulating our next steps to reduce
has announced that they are expected
the capital investment programme
GHG emissions between 2025 and 2030.
to retire as directors with effect from 31 March
of US$1.1 billion a year to 2026, the largest
While this will clearly depend on harnessing
Changes in Board composition
2022. I would like to thank both Karl and Sir
in the Group’s history. Successful
some new technologies currently under
Governance
Michael for their significant contribution
realisation of such ambitious plans will
development, by working with the right
On 15 June 2021 Ms Sandra Stash,
to the Group.
be among the top priorities for the Board
partners, we are believe that we can make it
Mr Stephen Odell and Mr James
and management.
happen.
Board diversity
Rutherford were appointed by shareholders
In December 2021, the HSE Committee
For more details, see pages 26-27
at the 2021 Annual General Meeting
was transformed into the Sustainability
For more details, see page 63
In 2021, assisted by its Nominations
(AGM) as independent non-executive
Committee to reflect the Board’s increasing
Committee, the Board considered diversity
directors of EVRAZ. Ms Stash became
focus on driving sustainability across
across the Group in detail. As a result,
chair of the Sustainability (formerly
the Group, as well as the body’s increased
Dividends
Social
EVRAZ has adopted an updated policy
the Health, Safety and Environment
responsibility and scope of work. In addition,
regarding board diversity that covers both
Committee, which was renamed
the terms of references for the Sustainability
EVRAZ’ dividend policy continues
Our first priority in ESG is to maintain
gender and ethnic diversity. The Board
on 14 December 2021) Committee
Committee and Audit Committee
to envisage dividend payments
a sustainable, well run business, one that
recognises that the Group’s business
and a member of the Remuneration
were updated to provide increased scrutiny
to shareholders of a minimum amount
places the safety of our people at the heart
operations, which are predominantly
Committee, Mr Odell became a member
of the Company’s activities in this area.
of US$300 million a year, provided that
of everything that we do, both employees
in Russia and North America, should
of the Audit Committee, the Remuneration
the Group’s net debt/EBITDA ratio remains
and contractors. Regretfully, there
have workforces that closely represent
Committee and the Nominations
On 1 February 2022 Alexander
below 3.0x.
were 8 fatalities in 2021, which is tragic
the diversity of the communities where its
Committee and Mr Rutherford became
Frolov was appointed as a member
and unacceptable. In response, EVRAZ
enterprises are based.
a member of the Nominations Committee
of the Nominations Committee.
In the reporting period, the Board
is redoubling its work to ensure a culture
and the Audit Committee. The three
discussed proposals to pay interim
of the utmost care and attention regarding
The Board has discussed the Parker review
new directors bring additional vision
dividends of US$0.30 per ordinary
safety practices at all enterprises. Our
and its recommendations to FTSE 100
and expertise across the Group’s key
share, totalling US$437 million, on 7 April
ultimate strategic goal remains to reduce
boards. When recruiting members, it will take
geographic regions, as well as industry-
Raspadskaya demerger
2021; US$0.20 per share, equivalent
fatalities to zero.
into account these and the recommendations
specific knowledge, including of the global
of US$292 million, on 25 June 2021; US$0.55
of the Hampton-Alexander review
energy market, mining and the automotive
In 2021, the Board and management
per share, equivalent of US$802 million,
For more details, see page 61
(the predecessor of the FTSE Women
sector.
of EVRAZ conducted a comprehensive
on 10 September 2021, US$0.20 per share,
Leaders Review) and ensure that female
review of the rationale and feasibility
equivalent of US$292 million, on 14 January
Central to achieving our goals is keeping our
representation on the Board never drops
Additionally, on 1 February 2022, Ms Maria
of the demerger of Raspadskaya, under
2022.
culture aligned with our purpose and values
below two members. Equally, the Board
Gordon was appointed by the Board
which the Group’s metallurgical coal
Alexander Abramov
(as detailed on pages 71-73), and the Board
is mindful that any appointment needs
as an independent non-executive director
assets are consolidated. They concluded
Non-Executive Chairman
devotes considerable effort to this. The main
to be based on merit and that the Group’s
of the Company and became a member
that the separation of the two businesses
8
9
Meet EVRAZ
EVRAZ in figures
STRATEGIC REPORT
Corporate governance
Financial statements
Additional information
ANNUAL REPORT & ACCOUNTS 2021
Sustainability
CEO LETTER
We are in the steelmaking business -
Regretfully, in 2021, we lost 6 employees
Whilst there have not been direct impacts
an important component for global
and there were 2 fatalities among
on the Group to date, the Board continues
infrastructure rebuild as people strive
our contractors. We have thoroughly
to monitor the situation in Ukraine
to improve the quality of their living
investigated the root causes of these
and the response of international
in the years to come. Steel will play
tragedies and introduced corrective
governments.
Dear stakeholder,
a significant role in the decarbonised
measures to mitigate future risks. We
circular economy. EVRAZ recognises
also provided the necessary support
the need to produce it in a better way
and assistance to the families affected.
This is my inaugural letter as CEO
for the environment. We continuously
review every aspect of our business
Through focused efforts across
LTIFR in 20212
of EVRAZ, which is an honour
the company, we reduced our lost-time
to identify where we could do better using
for someone who has been with
the resources and engineering available
injury frequency rate (LTIFR1) to 1.21x
the company for almost two
in 2021, down from 1.35x in 2020.
today, while keeping a close eye on advances
1.21x
decades. In my new role, I intend
in technology. Moreover, we address how
we can ensure shareholder returns, improve
to ensure that EVRAZ strengthens
natural resource use and maintain close ties
its leading positions, while
with our employees and communities where
Raspadskaya demerger
preserving its unique corporate
we operate, and other stakeholders.
In the reporting period, we announced
DNA and keeping the business
In 2021, EVRAZ continued to improve
the demerger of Raspadskaya, our coal
model sustainable in the rapidly
its environmental footprint. Our Board
business, a process currently expected
changing external environment.
of Directors approved a new set of targets
to complete in late March 2022. In our
for 2030 against 2019 baseline. The goals
view, the demerger will establish a clear
include to:
and focused equity story for both
companies and provide greater flexibility
Reduce greenhouse gas emissions
(Scope 1 and 2) by 20% to 1.551 tCO2e
to execute dedicated strategy for each.
Aleksey Ivanov
per tonne of crude steel produced.
EVRAZ will continue its journey as a low-
Chief Executive Officer
Cut atmospheric emissions from steel
cost integrated steelmaker, adding
production by 33%.
finished goods and capacity to produce
premium ones for infrastructure projects.
Zero wastewater discharges from steel
production.
Raspadskaya, in turn, will be able to seek
business combinations that are more difficult
Recycle 95% of general
and metallurgical waste.
to achieve in the current corporate structure.
One of our overriding priorities is the safety
of our employees and contractors. Last
year was the second year of the global
Markets
COVID-19 pandemic. EVRAZ is moving
along the learning curve on protecting
Despite COVID-related restrictions, market
our employees in these turbulent times
conditions supported our operational
by adding new risk management practices,
and financial results in 2021. Both iron
protocols and other measures to avoid
ore and coking coal prices spiked to new
business disruptions. Among our employees,
highs, quickly translating into stronger
the rate of vaccination, a vital tool in tackling
prices for semi-finished and finished
coronavirus, is 74% of employees in Russia
steel products. Across the markets
and over 50% of employees in North
in which we operate, demand was healthy.
America. While paying attention to COVID-
In the reporting period, global steel
related risks, we also constantly review our
demand rose by 3.1% year-on-year
regular ones to ensure the health and safety
amid a recovery following the first year
of our 71,591 team members around the world.
of pandemic and decarbonisation efforts,
especially in China.
1. Base year (2019) results were recalculated due to the updated values of global warming potentials from the IPCC's Fifth Assessment Report and Russia's new Scope
2 emission factors (see the page 64). In addition, the quality of primary data gathering in the Company has improved, which resulted in the decrease of base year
10
GHG intensity to 1.94 tCO2e/tcs vs. previously reported 1.97 tCO2e/tcs. The goal (-20%) was recalculated accordingly and reduced to 1.55 tCO2e/tcs vs previously
11
indicated 1.58 tCO2e/tcs.
2. Including contractors
Meet EVRAZ
EVRAZ in figures
STRATEGIC REPORT
Corporate governance
Financial statements
Additional information
ANNUAL REPORT & ACCOUNTS 2021
Investments
in the vanadium business, we have started
In total, EVRAZ invested US$403 million
Operational and financial
a vanadium processing plant construction
in development projects and US$517 million
results
Last year, we moved from conducting
with a design capacity of 8.6 mtpa of slag
in maintenance initiatives in 2021, in line
feasibility studies and design work
to reduce tolling practices. The facility
with its strategic priorities and payback
In 2021, our crude steel production remained
to executing our key projects that will
is scheduled to become operational
targets. Our long-term CAPEX programme
almost flat year on year and amounted
contribute to the company`s strategy
in 2024, adding c.US$60 million to company
will help us to maintain a diversified product
to 13,569 kt. Total segment EBITDA reached
in the medium term. In Russia, three
EBITDA at a total cost of US$228 million.
portfolio in the niches where the company
US$5,015 million. Total segment EBITDA
major initiatives will require management
Third, we are upgrading the rail mill
retains leading positions, as well as to remain
includes that from continuing operations
focus in the next few years. First,
at EVRAZ NTMK, an important project
at the lower end of the cost curve.
(US$3,692 million) and discontinued
at EVRAZ ZSMK, we are working on a new
that will cater to domestic customers -
operations (US$1,323 million). This strong
integrated flat casting and rolling facility.
and we have finished engineering works
In parallel, we are actively looking
result is mainly attributed to higher sales
We are now at engineering stage
and conducting tenders with contractors.
for efficiencies in our daily operations that will
prices of steel products, coal, and vanadium.
and are conducting preparation works
We also already have a offer from
contribute to our financial performance. Most
The Steel segment’s EBITDA increased
for infrastructure. Once completed,
an equipment supplier and doing part
of the projects aim to enhance customer
by 87% to US$3,609 million with the Coal
the mill will produce around 2.5 million
of the necessary preparatory works.
experience, reduce costs and optimise
segment generating US$1,292 million
tonnes of finished steel products a year,
In North America, we are constructing
the use of input materials. In the reporting
and North America segment making
contributing to the business model shift
a high-efficiency long product mill
period, such improvements generated
US$321 million
towards premium products. This is our
at Pueblo in Colorado, which will produce
US$590 million, mainly in the steel segment.
crucial investment project that aims
100-metre rails using solar power. This will
Another vital improvement pillar is digital
EVRAZ reduced its net leverage and ended
to increase the share of finished products
help to maintain our technical leadership
transformation, which brought savings
2021 with net debt/EBITDA of 0.5x (net
to 77% in our sales portfolio. Once
and contribute to the shift to a higher
of US$65 million from more than 170 projects
debt of US$2,667 million).
commissioned, which is due in 2026, it will
value-added product mix. Due to become
last year.
add around US$130 million to our EBITDA
operational in 2023, the facility will add
Overall, EVRAZ was able to generate
at an overall cost of US$767 million. Second,
c. US$70 million each year to our EBITDA
strong free cash flow of US$2,257 million
as part of extending our value chain
at a total project cost of US$726 million
(121% y-o-y), which made it possible
to pay dividends of US$1,549 million.
EVRAZtotal shareholder return (TSR)
reached 48% in 2021.
OUTLOOK
FOR 2022
In 2022, we will press ahead
with further improving our ESG
Aleksey Ivanov
performance and strengthening
Chief Executive Offcer
our culture of continuous
operational improvement.
I strongly believe in our long-term
success given the commitment of
our employees, who represent the
forefront of the industry.
12
13
Meet EVRAZ
EVRAZ in figures
STRATEGIC REPORT
Corporate governance
Financial statements
Additional information
ANNUAL REPORT & ACCOUNTS 2021
EVRAZ
THE VALUE WE
OUR
STRATEGIC
BUSINESS
COMPETITIVE
BUSINESS
BASES
PRIORITIES
SEGMENTS
ADVANTAGES
CREATE FOR
STAKEHOLDERS
MODEL
EVRAZ strategic priorities reflect
EVRAZ uses the synergies derived from
SHAREHOLDERS
EMPLOYEES
current focus areas that are
its competitive advantages to ensure that
AND INVESTORS
STEEL
EVRAZ is among the most
driven by market conditions and
its overall operations are able to generate,
EVRAZ strives to act in
sought-after employers in
business fundamentals.
sustain and capture value over the long-term.
EVRAZ Steel segment
shareholders best interest
its regions of operation
OUR VISION
by building an experienced
partly due to its staff
uses locally sourced raw
management team,
development programmes
materials to produce
steel products in Russia
implementing corporate
and best-in-class working
To be the leading manufacturer
and Kazakhstan, which it sells
governance best practices
conditions.
of steel for infrastructure.
for domestic infrastructure
and by providing robust
total shareholder return.
and construction projects
LEADER IN
while taking a flexible
approach to exports.
INFRASTRUCTURE
CUSTOMERS
SUPPLIERS AND
The Group’s vanadium
SUSTAINABLE
DEBT
STEEL PRODUCTS
CONTRACTORS
business is based
EVRAZ generates value
DEVELOPMENT
MANAGEMENT
on processing vanadium slag
for its global clientele by
EVRAZ honours its position
A premium portfolio of railway,
from steelmaking operations.
prioritising value-added
as a vital purchaser of
construction and tubular products with
AND STABLE
products, offering better
auxiliary materials by
a firm footprint in Russian, North American
Read more on page 48
shipping terms and running
fostering the advancement
DIVIDENDS
and global markets.
a client oriented service.
of its customers’ industries
GLOBAL
and running fair,
STEEL, NA
transparent tenders.
MARKET TRENDS
VERTICALLY INTEGRATED
The Steel, North America
segment focuses
LOW-COST OPERATIONS
In 2021, the steel industry was
on the premium markets
LOCAL COMMUNITIES
GOVERNMENT
PRUDENT
mostly driven by demand-
in the Western US
AND REGULATORY
A sound base of steel and coal assets
EVRAZ believes that
and Canada, offering high
AUTHORITIES
side fluctuations. Steelmakers
CAPEX
in the first quartile of the global cost
conducting its business
value-added products
curve.
increased output in anticipation
in a sustainable manner
EVRAZ is one of Russia’s
including infrastructure
helps to promote regional
largest taxpayers and
of more robust demand from the
steel, rails, large-diameter
prosperity where it operates
employers, and plays a
pipes and oil country tubular
construction and manufacturing
and strives to create
valuable role for the state
goods.
LEADER IN VANADIUM
healthier, happier local
by providing construction
sectors. Unable to keep up with the
communities by sponsoring
and railway products
Read more on page 50
accelerated pace of recovery, steel
RETENTION
PRODUCTION GLOBALLY
social and economic
for the development of
EVRAZ BUSINESS
prices rose to their highest in years.
development programmes.
infrastructure.
OF LOW-COST
Second largest vanadium producer in the
SYSTEM
world, with the unique technology and
POSITION
lowest production cost.
MEDIA
INDUSTRY
ORGANISATIONS
COAL
EVRAZ' proactive
engagement with the
EVRAZ cooperates and
media boosts the quality
supports various industry
The Coal segment sells
In the reporting period, EVRAZ
and transparency of
organisations through joint
almost half of its volumes
announced the demerger of its
information about the
initiatives and proactivly
to the the EVRAZ steel mills,
coal business.
DEVELOPMENT
Group.
participates in conferences
supplies coking coal to major
and forums.
For additional information,
OF PRODUCT
domestic coke and steel
The demerger will result in the
pls see the EVRAZ Sustainability
producers, and exports its
creation of two distinct publicly
Report for 2021, which will
PORTFOLIO
products to foreign customers.
listed businesses with leading
be published in May 2022
positions in their respective fields,
AND CUSTOMER
Read more on page 52
and will allow each to pursue
BASE
tailored strategic, capital allocation
The section 172(1) statement, describing how
Read more on pages 22-25
and sustainability objectives.
the directors have had regard to the matters set out
in section 172(1)(a) to (f) when performing their duty
14
under section 172, is pages 98-99
15
Meet EVRAZ
EVRAZ in figures
STRATEGIC REPORT
Corporate governance
Financial statements
Additional information
ANNUAL REPORT & ACCOUNTS 2021
Read more on page 48
Read more on page 50
Read more on page 52
OPERATIONAL
MODEL
STEEL
STEEL, NORTH
COAL
SEGMENT
AMERICA SEGMENT
SEGMENT
Raw materials
Raw materials
Mining
Iron ore products consumption
18,127 kt
3rd party scrap puchases
2,085 kt
Total raw coking coal mined
23,272 kt
Internal consumption
13,822 kt
3rd party slab purchases
58 kt
Sales to Steel segment
2,172 kt
INPUT
3rd parties iron ore products purchases
4,305 kt
3rd party billet purchases
34 kt
3rd parties scrap purchases
1,629 kt
TO STEEL
Coking coal products consumption
8,581 kt
SEGMENT
PROVED AND PROBABLE
Coal segment coal products
6,189 kt
FROM
RESERVES
3rd party raw coal
408 kt
COAL
SEGMENT
3rd party concentrate
1,984 kt
Steelmaking
Steelmaking
Coal washing
9.8
bln t
1.8
bln t
of iron ore
of coking coal
Pig iron production
10,819 kt
Crude steel production
1,879 kt
Total coking coal concentrate production
14,448 kt
Crude steel production
11,690 kt
Sales to Steel segment
4,025 kt
Vanadium slag production
20,058 mtV
TO STEEL
SEGMENT
Rolling and processing
Rolling and processing
SELF-COVERAGE1
Steel products production
10,763 kt
Steel products production
1,655 kt
73%
222%
714
686
245
268
of iron ore
of coking coal
1,192
625
11,597
kt
1,678
kt
10,608
kt
Coking
1. The raw material requirement of EVRAZ steelmaking
Steel
Steel
facilities compared with coal product sales or production
coal
Semi-finished products
Flat-rolled products
Coking coal concentrate
of iron ore products from own raw materials
products
products
Construction products
Tubular products
products
Raw coal
383
Railway products
Railway products
Flat-rolled products
Construction products
3,905
5,541
Other steel products
9,922
NUMBER OF EMPLOYEES
402
Iron ore products
Vanadium products (alloys and chemicals)
46,728
1,430 kt
20,341 mtV
in Steel segment
↑ 87% YoY
↑ 3.2x YoY
16,231
US$ 3,609
m
US$ 321
m
US$ 1,292
m
in Coal segment
In 2021, higher prices for semi-finished, construction and vanadium
The Steel, North America segment's EBITDA increased
The Coal segment’s EBITDA rose YoY due to higher
products almost doubled the Steel segment's EBITDA, despite an
because of higher revenues from sales of flat-rolled,
average realised prices.
increase in cost of sales.
construction and railway products.
3,603
in Steel, NA segment
16
17
Meet EVRAZ
EVRAZ in figures
STRATEGIC REPORT
Corporate governance
Financial statements
Additional information
ANNUAL REPORT & ACCOUNTS 2021
DECARBONISATION
ESG HIGHLIGHTS
PATHWAY
LTIFR (excluding fatalities),
EVRAZ GHG Scope 1 and 2
Social and community
per million hours
emissions, MtCO2e
matters
2021
1.21
2021
42.13
2020
1.35
2020
43.48
EVRAZ strives to adhere to international
EVRAZ CO2 REDUCTION INITIATIVES UNDER
2019
2.04
2019
43.14
corporate social responsibility principles
by making a meaningful contribution to local
REVIEW
Read more on page 61
Read more on page 62
economies and supporting communities
wherever it operates. Everywhere the Group
operates, it seeks to build sustainable,
positive partnerships with local governments
Freshwater intake for production needs,
Diversity, % (number of people)
and non-government organisations,
2
3
m m
CO2 intensity1
Senior
as well as with business, media and other
Board
Employees
tCO2/t CS
1.94
tCO2/t CS
Management
partners.
2021
199.42
23%
19%
27%
Read more on pages 74-75
2020
206.20
77%
81%
73%
Energy efficiency
2019
205.32
Men
Women
Read more on page 69
Read more on page 71
Technological
upgrade
Green energy
Governance
Environmental matters
Purchased energy
Read more on pages 104-125
Read more on pages 67-70
Production volumes
Health and safety
Our people
change
Read more on page 61
Read more on pages 71-73
Additional initiatives
to be identified
2
CO2 intensity in 2030
1.55
tCO2/t CS
OUR APPROACH TO SUSTAINABILITY
Green energy
Own generation and purchased
EVRAZ understands the responsibility inherent in its position as one of the world’s leading
steelmakers and, as such, is committed to integrating sustainable development principles and
values into its daily operations. The Group believes that sustainable development will help it to
EAF/DRI
maintain the long-term stability of its business, retain a competitive market position and create
Total production
value for its stakeholders.
EVRAZ' sustainable development initiatives adhere to the OECD’s Guidelines for Multinational
Enterprises to apply a consistent approach and adopt best practices across its global operations.
CCUS
The Group bases these commitments on the best international standards and practices, fully
endorsing the United Nations Universal Declaration of Human Rights provisions and respecting
people’s civil, political, economic, social and cultural rights.
Residual emissions
tCO2/t CS
0.42
1. EVRAZ’s intensity ration was calculated for steel assets.
2. Base year (2019) results were recalculated due to the updated values of global warming potentials from the IPCC's Fifth Assessment Report and Russia's new Scope
2 emission factors (see the page 64). In addition, the quality of primary data gathering in the Company has improved, which resulted in the decrease of base year
GHG intensity to 1.94 tCO2e/tcs vs. previously reported 1.97 tCO2e/tcs. The goal (-20%) was recalculated accordingly and reduced to 1.55 tCO2e/tcs vs previously
indicated 1.58 tCO2e/tcs.
18
19

 

 

 

 

 

 

 

 

содержание      ..      1       2         ..

 

 

///////////////////////////////////////