Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

UNITED COMPANY RUSAL PLC

(Incorporated under the laws of Jersey with limited liability)

(Stock Code: 486)

SECOND QUARTER 2020 TRADING UPDATE

This announcement is made by United Company RUSAL Plc ("RUSAL" or the "Company") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571, Laws of Hong Kong).

Shareholders and potential investors are advised to exercise caution when dealing in the securities of RUSAL.

RUSAL announces its operating results for the second quarter of 2020 ("2Q20").

Key highlights

Aluminium

  • Aluminium production1 in 2Q20 totaled 927 thousand tonnes (-1.4%quarter-on-quarter ("QoQ")), with Siberian smelters representing 93% of total aluminium output;
  • In 2Q20, aluminium sales amounted to 976 thousand tonnes (up 6.8% QoQ). During this period, sales of value added products (VAP2) decreased by 14.0% QoQ, to 363 thousand tonnes, demonstrating a decline of VAP share in total sales mix to 37% (vs 46% in 1Q20) due to the COVID-19 pandemic;

1

2

Aluminium production represented by salable products output (the number includes all facilities excluding Volgograd remelting of third parties metal).

VAP includes alloyed ingots, slabs, billets, wire rod, wheels, high and special purity aluminium.

− 1 −

  • In 2Q20 on the back of diversified client base, the Company successfully adjusted the regional sales geography in line with the new environment on the markets caused by COVID-19. European destination still dominates the mix, however it decreased in share to 46% (-9pp QoQ), while Asia's share grew to 27% (vs 15% in 1Q20). This shift reflects less severe lockdown measures in Asia and one-off arbitrage opportunity in China;
  • In 2Q20, the average aluminium realized price3 decreased by 11.3% QoQ to USD1,654/t. The decrease was driven both by London Metal Exchange ("LME") QP4 component (-10.7% QoQ to USD 1,526/t) and average realized premium component (-17.9% QoQ to 128/t). The decline in premiums during 2Q20 is attributed to the decrease of VAP share in product sales mix and overall market conditions related to the pandemic.

Alumina

  • In 2Q20, total alumina production was almost flat QoQ, at 2,009 thousand tonnes. The Company's Russian operations accounted for 35% of total output.

Bauxite and nepheline ore

  • In 2Q20, bauxite production increased by 8.8% QoQ, to 3,892 thousand tonnes. The growth was driven by an increase in output at Timan due to low comparison base of 1Q20, affected by seasonal factor. Nepheline production increased by 9.0% QoQ, to 1,181 thousand tonnes.

Market overview5

  • According to the JP Morgan Global Manufacturing PMI, global manufacturing activity increased from 42.4 in May to a 5-month high of 47.8 in June. It is still below 50 points, thus indicates contraction, but at a softer pace. Manufacturing conditions continued to recover all over the world following the severe disruption caused by COVID-19. While in the US, Brazil, France, Turkey and China manufacturing production expanded at a several months' highest rates, other national economies experienced slower declines. Although a potential second wave of COVID-19 continues to cause some uncertainty in the market, most countries are more optimistic towards 2H 2020.

3

4

5

The realised price includes three components: LME component, commodity premium and VAP upcharge.

QP (quotation period) prices differs from the real time LME quotes due to a time lag between LME quotes and sales recognition and due to contract formula specialty.

Unless otherwise stated, data for the "Market overview" section is sourced from Bloomberg, CRU, CNIA, IAI and Antaike.

− 2 −

  • In 1H 2020, the global primary aluminium demand was down by 6.6% year-on-year ("YoY") to 30.3 million tonnes. Ex-China demand contracted by 15.4% to 12.3 million tonnes, while Chinese demand remained almost unchanged and shifted by a mere 0.5% to 18 million tonnes.
  • Global aluminium production in 1H 2020 grew by 1.8% to 32.1 million tonnes, including the Rest of the World ("RoW") growth at 0.5% YoY to 13.9 million tonnes. In China, a 2.8% growth YoY to 18.2 million tonnes was seen for the same period. Overall, the global market was in surplus of 1.8 million tonnes during 1H 2020.
  • With regards to cost curve, still around 12% of smelters in the RoW operate at a loss. Approximately 3.5 million tonnes of capacity outside of China operate with costs above current prices. Since the beginning of this year, around 0.6 million tonnes of RoW capacity was curtailed.
  • Operating capacity in China reached 37.2 million tonnes. Chinese unwrought aluminum and products exports collapsed by 20.6% in 1H20 YoY to 2.37 million tonnes on strongly negative export price arbitrage.
  • In 1H 2020, aluminium inventories at LME warehouses grew above 1.6 million tonnes, with an overall increase of 165 thousand tonnes compared to the level at the end of last year. LME live warrants grew to the level of 1.47 million tonnes. Chinese regional stocks continued to decline steeply in June 2020 and fell 960 thousand tonnes to 0.7 million tonnes from its highest level this year of 1.68 million tonnes as of the beginning of April 2020.

KEY OPERATING DATA

GROUP PRODUCTION DATA6

Change,

Change,

('000 tonnes)

2Q20

1Q20 % (QoQ)

1H20

1H19

% (YoY)

Aluminium

927

940

-1.4%

1,867

1,867

-

utilisation rate

95%

97%

-

96%

96%

-

Aluminium foil and

packaging products

24.1

25.0

-3.6%

49.1

48.8

0.6%

Alumina

2,009

2,013

-0.2%

4,022

3,850

4.5%

Bauxite

3,892

3,577

8.8%

7,469

8,073

-7.5%

Nepheline

1,181

1,083

9.0%

2,264

2,153

5.1%

6 Unless stated otherwise the production volumes are calculated based on the pro rata share of the Company's (and its subsidiaries') ownership.

− 3 −

GROUP SALES DATA

Change,

Change,

('000 tonnes)

2Q20

1Q20 % (QoQ)

1H20

1H19

% (YoY)

Aluminium sales

976

914

6.8%

1,890

1,978

-4.4%

BOAZ7

81

65

25.5%

145

106

37.8%

Other third parties

2.7

8.8

-68.8%

11.5

2.5

361.0%

Realized price, USD/t

1,654

1,864

-11.3%

1,756

1,960

-10.4%

LME QP component

1,526

1,708

-10.7%

1,615

1,835

-12.0%

Realised premium

128

156

-17.9%

141

125

12.8%

Commodity component

(100% of sales)

70

79

-10.7%

74

64

16.1%

VAP upcharge

component (100% of

sales)

58

77

-25.2%

67

62

8.8%

VAP upcharge over

commodity (VAP

products only)

155

167

-7.3%

161

181

-11.0%

VAP sales in tonnes

363

422

-14.0%

785

673

16.5%

Share of VAP

37%

46%

-9pp

42%

34%

8pp

Sales geography, %

Europe

46%

55%

-9pp

51%

51%

-

Russia & CIS

20%

22%

-2pp

21%

20%

1pp

Asia

27%

15%

12pp

21%

20%

1pp

America

6%

7%

-1pp

6%

9%

-3pp

Alumina third party sales8

376

400

-6.0%

776

791

-1.9%

Bauxite third party sales

75

-

-

75

67

12.4%

GROUP EXTERNAL PURCHASES DATA

Change,

Change,

('000 tonnes)

2Q20

1Q20 % (QoQ)

1H20

1H19

% (YoY)

Alumina

349

355

-1.6%

704

850

-17.1%

Bauxite

1,085

1,081

0.4%

2,166

3,076

-29.6%

7

8

"BOAZ" - Boguchansky aluminium smelter.

Alumina third party sales excluding swaps.

− 4 −

ALUMINIUM PRODUCTION

Change,

Change,

('000 tonnes)

2Q20

1Q20 % (QoQ)

1H20

1H19

% (YoY)

Russia (Siberia)

Bratsk aluminium smelter

249

251

-0.7%

500

501

-0.3%

Krasnoyarsk aluminium

smelter

253

256

-1.1%

509

504

1.0%

Sayanogorsk aluminium

smelter

133

135

-1.2%

268

266

0.9%

Novokuznetsk aluminium

smelter

53.3

53.5

-0.3%

106.8

106.7

0.1%

Irkutsk aluminium smelter

103

105.5

-2.1%

209

210

-0.6%

Khakas aluminium smelter

71

74.6

-4.2%

146

146

0.1%

Russia - Other

Volgograd aluminium

smelter

17.4

17.4

-0.9%

34.8

34.4

1.0%

Kandalaksha aluminium

smelter

17.9

18.1

0.3%

36.0

36.0

0.1%

Sweden

Kubikenborg Aluminium

(KUBAL)

27.6

29.4

-5.9%

57.0

62.4

-8.7%

Total production9

927

940

-1.4%

1,867

1,867

-

9 Here and further "total production" may not equal to the arithmetic addition of the numbers presented above in the table. The difference arises due to the roundoff of exact numbers (incl.decimals).

− 5 −

Foil and packaging production results

Change,

Change,

('000 tonnes)

2Q20

1Q20 % (QoQ)

1H20

1H19

% (YoY)

Russia

Sayanal

9.0

8.6

4.5%

17.5

20.1

-12.8%

Ural Foil

5.4

6.3

-13.1%

11.7

11.3

3.4%

Sayana Foil

1.1

1.2

-10.5%

2.3

2.0

17.4%

Armenia

Armenal

8.6

8.9

-3.8%

17.5

15.3

13.9%

Total production

24.1

25.0

-3.6%

49.1

48.8

0.6%

Other aluminium products output and silicon output

Change,

Change,

('000 toness)

2Q20

1Q20 % (QoQ)

1H20

1H19

% (YoY)

Secondary alloys

3.5

4.1

-15.1%

7.5

8.2

-8.4%

Silicon

6.6

7.7

-14.4%

14.3

26.6

-46.4%

Powder

5.9

6.0

-1.9%

11.8

11.3

5.0%

Wheels ('000 units)

412

590

-30.1%

1,002

1,628

-38.5%

− 6 −

ALUMINA PRODUCTION

Change,

Change,

('000 tonnes)

2Q20

1Q20 % (QoQ)

1H20

1H19

% (YoY)

Ireland

Aughinish Alumina

463

476

-2.77%

939

949

-1.0%

Jamaica

Windalco

133

136

-1.9%

269

218

23.6%

Ukraine

Nikolaev Alumina Refinery

409

416

-1.6%

825

833

-1.0%

Russia

Bogoslovsk Alumina

Refinery

258

240

7.39%

497

507

-1.9%

Achinsk Alumina Refinery

214

228

-6.4%

442

392

12.7%

Urals Alumina Refinery

231

228

1.44%

459

454

1.0%

Guinea

Friguia Alumina Refinery

121.8

111.9

8.8%

234

154

51.6%

Australia (JV)

Queensland Alumina Ltd10

180

177

1.6%

357

343

4.2%

Total alumina production

2,009

2,013

-0.2%

4,022

3,850

4.5%

10 The alumina production volume of Queensland Alumina Ltd is presented by 20% of its output i.e. based on an ownership pro rata basis

− 7 −

BAUXITE MINING

Change,%

Change,

('000 tonnes)

2Q20

1Q20

(QoQ)

1H20

1H19

% (YoY)

Jamaica

Windalco

486

477

1.8%

963

960

0.3%

Russia

North Urals

582

489

18.9%

1,071

1,130

-5.3%

Timan

967

703

37.0%

1,670

1,589

5.1%

Guinea

Friguia

334

327

2.1%

660

544

21.5%

Kindia

756

703

7.5%

1,459

1,789

-18.4%

Dian-Dian

768

797

-3.6%

1,565

1,410

11.0%

Guyana

Bauxite Company of

Guyana Inc.11

-

81

-

81

651

-87.5%

Total bauxite production

3,892

3,577

8.8%

7,469

8,073

-7.5%

Nepheline ore production12

Change,

Change,

('000 tonnes wet)

2Q20

1Q20 % (QoQ)

1H20

1H19

% (YoY)

Kiya Shaltyr Nepheline

Syenite

1,181

1,083

9.0%

2,264

2,153

5.1%

  1. In February 2020 the Company announced suspension of operations of Bauxite business in Guyana
  2. Nepheline ore used as a feedstock for alumina production at the Achinsk alumina refinery.

− 8 −

JOINT VENTURE OPERATING RESULTS

Change,

Change,

('000 tonnes wet)

Interest

2Q20

1Q20

% (QoQ)

1H20

1H19

% (YoY)

Boguchanskaya HPP

Electricity generation,

mwh13

50%

4,207

4,636

-9.3%

8,843

7,360

20.2%

Boguchansk

aluminium smelter

Aluminium production

('000 tonnes)14

50%

72.5

72.2

0.4%

144.7

110.7

30.7%

Bogatyr Komir and

Bogatyr Trans

Coal production (Kt)15

50%

4,857

6,185

-21.5%

11,041 10,513

5.0%

Transportation

volumes (Kt of

transportation)16

50%

824

869

-5.2%

1,692

2,165

-21.8%

By order of the Board of Directors of

United Company RUSAL Plc

Aby Wong Po Ying

Company Secretary

27 July 2020

As at the date of this announcement, the executive Directors are Mr. Evgenii Nikitin, Mr. Evgeny Kuryanov and Mr. Evgenii Vavilov, the non-executive Directors are Mr. Marco Musetti, Mr. Vyacheslav Solomin and Mr. Vladimir Kolmogorov, and the independent non-executive Directors are Dr. Elsie Leung Oi-sie, Mr. Dmitry Vasiliev, Mr. Bernard Zonneveld (Chairman), Dr. Evgeny Shvarts, Mr. Randolph N. Reynolds, Mr. Kevin Parker, Mr. Christopher Burnham and Mr. Nick Jordan.

All announcements published by the Company are available on its website under the links http://www.rusal.ru/en/investors/info.aspxand http://rusal.ru/investors/info/moex/, respectively.

  1. The energy generation volume of Boguchanskaya HPP is presented by 100% of its output (not on an ownership prorata basis).
  2. The aluminium production volume of Boguchansk aluminium smelter is presented by 100% of its output (not on an ownership pro rata basis).
  3. The coal production volume of Bogatyr Komir is presented by 50% of its output i.e. based on an ownership pro rata basis.
  4. The transportation volume of Bogatyr Trans is presented by 50% of its output i.e. based on an ownership pro rata basis.

− 9 −

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United Company RUSAL plc published this content on 27 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2020 00:25:03 UTC