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Volga JSC Published its Annual Report for 2021

10 June 2022

Volga JSC Published its Annual Report for 2021

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PRODUCTION AND SALES


The total production volumes of all types of finished products amounted to 306,711 tons, and the share of Volga JSC in the volume of production among Russian paper manufacturers increased to 23%. Despite the fact that in financial terms, the past year was difficult due to the COVID-19 pandemic and related restrictions, according to the results of the Company's work in 2021, the EBITDA under IFRS showed a significant increase compared to the previous year and amounted to RUB 3.11 billion. Revenue from sales of products increased to RUB 13 billion, and net profit – up to RUB 2.7 billion.
Our Sales Department sold 40% more newsprint on the Russian market than a year earlier. In 2021, new types of products were mastered: fluting and testliner, including those with normalized absorbency. The Company's products were supplied to 67 countries around the world.

SUSTAINABLE DEVELOPMENT


In 2021, the Company successfully passed the voluntary certification procedure and received a certificate of compliance with the requirements of the international standard ISO 9001:2015 valid until 2024. Compliance with this standard is a confirmation of the high quality management that we have implemented at our enterprise. The introduction of a Quality Management System (QMS) is a strategic decision made by Volga JSC, which will provide a solid foundation for further sustainable development.
Another significant event of the last year was the increase by Expert rating agency of the rating of Volga JSC to the level of ruA-, which is due to the improvement in the assessment of the risk profile of the industry in which Volga JSC operates, the extensive work of management on the transformation of business processes and the depth of strategic planning.

ACHIEVEMENTS IN THE FIELD OF QUALITY

In 2021, all the Company's quality goals were successfully achieved. According to the results of the All-Russian competition 100 Best Goods of Russia", four types of products of Volga JSC received awards. Paper for corrugation (the beginning of production – 2019) became the Winner of the competition, and three more types of finished products produced by Volga JSC – newsprint of increased weight, paper for corrugation (the beginning of production – 2018) and packaging paper for technical purposes became the Winners of the competition.

INVESTMENT PROJECTS


Continuous development allows Volga JSC to create the necessary margin of safety, thanks to which the Company manages to comply with all social obligations and successfully overcome the challenges of the present time associated with the COVID-19 pandemic and the unstable geopolitical situation in the world.

In agreement with the Board of Directors of Volga JSC, in August 2021, a contract was signed with one of the world's leading manufacturers of equipment for pulp and paper industry for the supply of basic technological equipment required for expanding the production of packaging papers and cartons as part of the Company's development program.
The implementation of this investment project will allow the Company to create more than 300 jobs, increase the amount of tax payments to the regional and federal budgets, reduce the environmental burden in the region of activity through the further introduction of "green" technologies.
Another major investment project within the first stage of the implementation of the Company's strategic development program aimed at expanding the product range, increasing production capacity and improving energy efficiency was the project for the modernization of the energy complex (NiGRES). As part of the contract concluded in 2021, Kaluga Turbine Plant will manufacture and supply to Volga JSC a K-27-1,3 type condensing turbine. The delivery package will include an automatic control system for the steam turbine installation and a generator.
In 2021, Volga JSC, also as part of the implementation of the environmental program, completed an investment project to modernize the sludge dewatering section of the steam turbine shop. The Company purchased and installed two technological dewatering lines.

PERSONNEL


Today, the Company employs more than 1,700 people. Within the framework of the concluded collective agreement, Volga JSC strictly complies with all its obligations to provide benefits and social guarantees, takes care of the well-being of its employees, implements measures for their training, disease prevention, improvement of working conditions and compliance with labor protection legislation.
In 2021, as part of the investment program, the Company implemented a whole range of measures aimed at improving the living, work and recreation conditions for our employees. In 2022, this program will continue and in accordance with the approved corporate standard, the adjacent territory of Volga JSC will be landscaped.

SOCIAL ACTIVITIES


The corporate social responsibility of Volga JSC is aimed at ensuring not only its own sustainable development, but also the development of the Company's region of business: Balakhna, Nizhny Novgorod and the entire Nizhny Novgorod region.
In 2021, the Government of Nizhny Novgorod Region signed a cooperation agreement with Volga JSC, which involves close cooperation between the parties in the framework of areas related to the socio-economic development of Nizhny Novgorod region and support for the investment activities of the enterprise by the regional Government.
Along with this, public and charitable events, support of projects in the field of culture, education, sports and other socially-oriented programs are an integral part of the activities of Volga JSC.
In 2021, the Company became a partner of Autonomous Non-Commercial Organization Center 800 and the exhibition Kandinsky Prize.15 Years within the framework of the program of celebrating the 800th anniversary of Nizhny Novgorod and assisted in holding large-scale anniversary events, including the REGATTA 800, MARATHON 800 and the cycle of events of the ECOSTART 800 program.


ECOLOGY


One of the key priorities of Volga JSC is environmental protection. The results of 2021 confirm the Company's commitment to the principles of the green economy. The total amount of the Company's current expenses for environmental protection in 2021 amounted to about RUB 400 million. The leading specialized engineering centers carried out technical and environmental assessments of the Company's production facilities and formed a strategic plan to increase the efficiency of investments for the period of long-term development until 2025.

In addition, Volga JSC organized and participated in various environmental actions aimed both at preserving and increasing the fish fauna of the Volga River, and at improving the level of ecological culture and literacy of residents of Nizhny Novgorod and the region. As part of the FSC-Friday international holiday in September 2021, employees of Volga JSC held an environmental action "Alley of Memory" in Balakhna, timed to celebrate the 800th anniversary of Nizhny Novgorod.


FOREST SUPPLY


The reforestation program was implemented by Volga JSC in 2021 in full, and such an indicator as EBITDA for the logging site was exceeded by 30% compared to the plan of 2021. Reforestation activities were carried out on a total area of 700 hectares. Planting of new seedlings with full artificial reforestation was carried out on 214 hectares of land, which exceeded the plan by 18%. All obligations of the Company regarding forestry, reforestation, fire prevention measures were fulfilled on time.
In 2021, Volga JSC voluntarily passed an audit and received an FSC® Certificate (Certificate code NC-COC-031831, FSC 100%) for round timber and fuelwood/firewood of various wood species valid until April 2026.
"I would like to thank the shareholders and the personnel of Volga JSC for the trust and support they gave me in 2021, and express confidence that by continuing to work in the team, having strong professional, economic and production reserves, we will achieve all our goals in 2022", Sergey Pondar added.

You can download the Company's annual report for 2021 at: https://www.volga-paper.ru/company/information/annual-report/

Media Office of Volga JSC