About this report

This Integrated Report presents the results of SUEK Group’sIn this Report, each of the terms ‘SUEK’, ‘SUEK Group’, ‘the Group’, ‘the company’, ‘we’ refer to all companies consolidated in the IFRS financial statements of JSC SUEK (Russia), including, inter alia, SUEK LTD, SUEK AG, Siberian Generating Company (SGC) and their subsidiaries. From October 2019, our operational and financial performance includes the results of acquired Reftinskaya GRES. operations in 2019.

We use the term ‘Coal Segment’ to describe our coal production and sale operations, while the term ‘Energy Segment’ is used to describe our activities related to the generation of electricity and heat. The term ‘Logistics Segment’ covers SUEK’s rail transportation and coal transhipment operations at ports.

One of the key objectives of this Report is to demonstrate how SUEK responds to macroeconomic and market challenges, enhances its competitiveness and improves efficiency across all stages, adapts its strategy and management methods to stakeholder requirements, including an increasing focus to environmental, industrial safety and societal issues, and also develops its coal, energy and logistics businesses.

The Report presents SUEK’s updated goals and risks for the medium term in line with its Strategy to 2023 (see pages Strategy).

For the fourth consecutive year, we have aligned our 2019 Report with the principles of integrated reporting, as set out in the International Integrated Reporting Council’s (IIRC) Framework. We also take into account Russian legislative requirements. In our disclosure of non-financial information, we adhere to GRI Standards.

This Integrated Report should be read alongside our 2019 audited financial statements, prepared in accordance with International Financial Reporting Standards (IFRS). The Report was prepared under the supervision of SUEK’s Chief Financial Officer and with the Audit Committee of the Board of Directors also collectively contributing to its preparation and ensuring its overall integrity. The draft of the Report was approved by the Board of Directors in March 2020 and is subject to approval at the General Meeting of Shareholders.