Unipro PJSC
Annual Report for 2020

Address of the Chairman
of the Board of Directors

Positive events for the Company: repair work at power unit No. 3 of Berezovskaya GRES have been completed and we expect CSA payments from spring 2021. This will allow us to increase dividends in 2021‑2022
Andreas Schierenbeck
Chairman of the Board of Directors, Unipro PJSC

Dear Shareholders, Investors and Colleagues!

2020 faced new challenge: COVID-19, which influenced Unipro, our employees and energy market. Our assets continued operating during the pandemic. Unipro responded rapidly by arranging distance work for as many workers as possible, we have also established social distancing and created new protocols for the operating personnel at our power plants, a lot was done to provide employees with individual protective gear. I feel very proud of our team, and I would like to ensure everyone that we will continue making efforts to keep efficiency of our company.

Despite difficult market conditions caused by COVID-19 coronavirus pandemic and OPEC+ deal Unipro has managed to achieve stable results. The company remains the industry leader in operating efficiency. According to the accounting statements prepared in compliance with Russian Accounting Standards, the EBITDA amounted to RUB 25.7 bn for 2020. The demand for Unipro production capacity in 2020 exceeded the market average and amounted to 42.3%. The total output of the Company’s plants amounted to 41.7 bln KWh.

One more unit of Surgutskaya GRES-2 was selected to take part in the electric power industry modernization programme. During the reporting year preliminary works were accomplished to prepare the power plant for the modernization.

Unipro is aware of its responsibility to society, stakeholders and the environment. Following Uniper’s new strategy the company intends to set on a new course for sustainability. As carbon emissions should be reduced, the company becomes climate-friendlier and improves carbon footprint by implementing innovative technologies and refurbishing its equipment. We are also considering our participation in further modernization auctions including deep and light modernization projects and developing renewables projects.

In 2020, the company keeps maintaining its commitments to high standards of corporate governance. The Russian Central Bank also noted the improvement of the company’s corporate governance level within its monitoring of implementation of the principles and recommendations of the CBR’s Code of Corporate Governance. Over the course of the year, the Board of Directors adopted various decisions for the effective and stable functioning of the company. For the first time, in order to prevent the spread of COVID-19 we introduced the practice of electronic voting at the general meeting of shareholders.

Our company continues to pay great attention to issues of health and safety of its employees as well as staff from contracting organizations. I have to mention that there were no serious accidents in 2020, which is a great achievement for us. This is the result of the systematic work being carried out at Unipro PJSC, for sure, we will continue developing our safety programmes in 2021.

Unipro places its greatest value in its employees, and we pay great attention to employees’ growth and development. Considering COVID-19 pandemic, Unipro implemented online programs for educating its employees. We will further continue creating new projects.

We are expecting new challenges in the energy market, such as overcapacity and old generation assets replacement. We believe that our company has significant potential for the long-term development, and together we will take on the challenges.

Dear colleagues! On behalf of the Board of Directors of Unipro PJSC, I would like to thank each of you for your substantial contribution to the operational and financial performance achieved in 2020.