Kemerovo, Russian Federation - OJSC "Kuzbasskaya Toplivnaya Company" ("KTK"; RTS, MICEX: "KBTK"), one of the fastest-growing thermal coal producers in Russia, is pleased to announce the unaudited consolidated IFRS financial results for 3 months ended 31 March 2011.
Financial highlights
| RUR mln. 1 | Q1* 2011 |
Q4* 2010 |
Ch., % |
Q1* 2010 |
Ch., % |
| Revenue | 5,245 | 4, 584 | 14% | 2,918 | 80% |
|
EBITDA2 |
948 | 909 | 4% | 631 | 50% |
| EBITDA margin | 18% | 20% | - | 22% | - |
| Net profit | 593 | 470 | 26% | 279 | 113% |
| Net profit margin, % | 11% | 10% | - | 10% | - |
| Net Debt3 | 1,600 | 1,754 | -9% | 4,233 | -62% |
| Net Debt / EBITDA4 | 0.7 | 0.8 | -21% | 2.1 | -69% |
* Hereinafter figures for Q1 2011 and Q1, Q4 2010 are presented as unaudited
Operational highlights
| Mln. tonnes | Q1 2011 |
Q4 2010 |
Ch., % |
Q1 2010 |
Ch., % |
| Coal production | 1.83 | 2.21 | -17% | 1.50 | 22% |
|
Coal sorting |
1.17 | 1.16 | 1% | 0.91 | 30% |
| Coal enrichment | 0.16 | 0.18 | -11% | - | - |
| Coal sales | 2.43 | 2.75 | -12% | 1.93 | 26% |
| Average price (RUR per tonne)5 | 1,155 | 1,041 | 11% | 874 | 32% |
Post period end
On May 16, 2011 the session of the Board of Directors took place in Kemerovo. Matters concerning the annual shareholders meeting were discussed. The annual general meeting of shareholders will take place at 15:00, 23 June, 2011, address: Building 4, 50 Years of October Street, Kemerovo. The Board of Directors recommended the annual general meeting of shareholders to confirm a decision to distribute dividends for 2010 at a level of RUR 3 for each common share of nominal value of RUR 0.2, amounting in total to RUR 297 775 065. The closing date of the Company's Share Register for the rights to receive dividends was May 16 2011.
Igor Prokudin, CEO of the Company, commented:
«Q1 2011 became one more positive stage in our Company’s development. Despite the extremely cold weather in January and February we reached our quarterly target and produced 1.8 mln. tonnes of coal. Compared to the previous quarter, production volumes were lower by 17% due to the seasonality and fewer working days. Nevertheless, the growth of production amounted 22% year-on-year, being the highest among all the large Russian thermal coal producers.
During the quarter the volume of coal sales amounted to 2.43 mln. tonnes. About 1 mln. tonnes were shipped to energy companies, public utilities and retail customers in Western Siberia, the remaining 1.4 mln. tonnes were exported to Eastern Europe and Asian countries. We fully met our commitments to export customers, including those shipments delayed from the previous quarter due to the tight supply of railroad cars.
Despite the decrease in coal sales volumes, earnings of the Company exceeded results of the previous quarter: revenue increased by 14% to RUR 5.2 bln., EBITDA increased by 4% to RUR 948 mln., net profit was up by 26%, reaching RUR 593 mln. Our financial results were positively affected by the increase in export sales and the growth in average realized prices, reflecting the high demand for energy coal in Russia and abroad. At the same time, there were also negative drivers such as the growth in railroad cars renting rates and the increase in diesel fuel prices, which increased by 30% quarter-on-quarter. It should be noted that in Q2 2011 fuel prices stabilized and we managed to hedge a part of railroad cars renting costs by using cars from our joint venture "Kuzbasskaya Transportnaya Company"6 at long-term fixed prices. In Q1 2011 the fleet of this company increased from 2.2. to 2.7 thousand cars and it will continue to grow in order to fulfil our requirements.
In Q2 we plan to increase the volume of coal extraction compared to Q1 due to the favorable situation on export markets and an opportunity to outsource additional stripping processing work. We also want to increase the extraction in 2nd half of the year, which will help us to produce an additional 500 thousand tonnes of coal from "Cheremshansky" open-pit mine, which will be exported. If we are successful the total volume of 2011 coal production may reach 8.1 mln. tonnes, which we expect will positively influence EBITDA and net profit of the Company compared to 2010.»
Conference-call
KTK’s management will host a conference call for investors and analysts followed by a Q&A session on the day of the results.
The Company will be represented by:
Eduard Alexeenko – first deputy CEO
Anton Rumyantsev – investor relations manager
The dial-in details are:
Date Monday, 23 May 2011
Time: 09.00 New York / 14.00 London / 17.00 Moscow
Title: 3 Months 2011 IFRS Statements Conference Call of KBTK
You can join the conference call by registering on-linehttp://webeventservices.stream57.com/20110523ubs
Or dial-in:
International/UK Dial in: +44 (0) 20 7162 0025
USA Dial in: +1 334 323 6201
Conference ID: 895845
A live webcast of the presentation will be available at: http://webeventservices.stream57.com/20110523ubs
The conference call replay will be available through May 27 2011:
International Replay Number: +44 (0)20 7031 4064
US Toll Replay Number: +1-954-334-0342
Replay Access Code: 895845
For more information please contact:
OJSC "Kuzbasskaya Toplivnaya Company" Kemerovo
Elena Sarycheva, Head of public relations department
+7 384 236 47 62
For investor enquiries please contact:
OJSC "Kuzbasskaya Toplivnaya Company" Moscow
Anton Rumyantsev, Investor relations manager
+7 495 787 68 05
Financial overview
| RUR Mln.8 | Q1 2011 |
Q4 2010 |
Ch., % |
Q1 2010 |
Ch., % |
| Revenue | 5,245 | 4,584 | 14% | 2,918 | 80% |
|
Cost of sales |
-4,135 | -3,489 | 19% | -2,295 | 80% |
| Gross profit | 1,110 | 1,095 | 1% | 623 | 78% |
| Commercial, administrative and other costs | -402 | -420 | -4% | -233 | 73% |
| Operating profit | 708 | 675 | 5% | 390 | 82% |
| EBITDA | 948 | 909 | 4% | 631 | 50% |
| Net profit | 593 | 470 | 26% | 279 | 113% |
Revenue
In Q1 2011 the Company’s consolidated revenue increased from the previous quarter by 14% and reached RUR 5,245 mln., (Q4 2010: RUR 4,584 mln.). Despite the expected seasonal decrease in sales volumes by 12%, revenue was positively affected by the growth in average net realized price by 11% and the increase in total sum of coal transport costs included in the customers price by 31%. Revenue net of rail road costs9 increased by 5% quarter-on-quarter.
In the past quarter export coal sales revenue increased by 39% quarter-on-quarter to RUR 3,607 mln. (Q4 2010: RUR 2,593 mln.) as a result of 26% export shipment volumes growth and 8% increase of average realized prices. The quarter-on-quarter increase in export revenue net of transportation costs10 was 42%.
During Q4 2011 revenue from the own coal sales on domestic market decreased by 27% quarter-on-quarter to RUR 735 mln., (Q4 2010: RUR 1,013 mln.). Sales volumes in Russia decreased because the major part of thermal coal is used domestically for heating power generation, therefore its demand peaks in Q4 of every year and then starts to fall in Q1 when the heating season comes closer it its end. This factor also led to 10% reduction in coal resale revenue, which amounted to RUR 722 mln. (Q4 2010: RUR 802 mln.). However, 1Q domestic revenue was supported by the growth in average realized prices, which increased by 10% quarter-on-quarter.
The total quarterly domestic coal sales revenue decreased by 20% and reached RUR 1,457 mln. (Q4 2010: RUR: 1,815 mln.). The revenue net of rail road costs11 decreased by 23% quarter-on-quarter owing to an increase in tariffs of OJSC "Russian Railroads" and a growth in railroad cars renting prices from the beginning of the year.
In Q1 revenue from other operations accounted for RUR 181 mln., being 3% higher comparing to Q4 2010 (RUR 176 mln.). This increase was caused by a growth of heat and electric power by Anzhero-Sudzhensk power plant, owned by KTK, and increase in rendering services for 3rd party coal storage in the facilities of the Company’s retail chain.
Compared to Q1 2010, consolidated revenue increased by 80% (Q1 2010: RUR 2,918 mln.) Revenue from domestic market sales increased by 10% whereas export revenue increased by 157% year-over-year. The increase in revenue net of rail road costs10 was 56% due to a growth of transportation costs.
Cost of sales
| RUR Mln. 11 | Q1 2011 |
Q4 2010 |
Ch., % |
Q1 2010 |
Ch., % |
| Rail road tariff and transportation | 2,254 | 1,738 | 30% | 1,044 | 116% |
| Purchased coal | 492 | 607 | -19% | 355 | 39% |
| Employee costs and social payments | 292 | 266 | 10% | 192 | 52% |
| Extraction, processing and sorting of coal | 260 | 206 | 26% | 151 | 72% |
| Fuel | 305 | 236 | 29% | 187 | 63% |
| Depreciation | 220 | 211 | 4% | 172 | 28% |
| Spare parts | 112 | 98 | 14% | 56 | 100% |
| Extraction tax and environment payments | 82 | 86 | -5% | 47 | 74% |
| Repair and maintenance | 67 | 63 | 6% | 20 | 235% |
| Other costs | 117 | 125 | -6% | 96 | 22% |
| Change in coal stock | -66 | -147 | -55% | -25 | 164% |
| Cost of sales | 4,135 | 3,489 | 19% | 2,295 | 80% |
In Q1 cost of sales increased by 19% and reached RUR 4,135 mln. (Q4 2010: RUR 3,489 mln.). The main drivers of its quarterly growth were transportation expenses and production costs, which followed growth in the stripping ratio.
During the quarter transportation costs increased by 30% to RUR 2,254 mln. (Q4 2010: RUR 1,738 mln.) due to 26% export sales volumes growth and an increase in costs of coal transportation to export clients by 8-11% from the beginning of 2011. Part of the increased cost of renting railroad cars was hedged by using the fleet of the joint venture "Kuzbasskaya Transportnaya Company"12 at fixed prices. In Q1 the fleet of the joint venture increased from 2.2 to 2.7 th. railroad cars.
In the reported period the cost of purchased coal amounted to RUR 492 mln, decreasing by 19% quarter-on-quarter (Q1 2010: RUR 607 mln.). The decrease in costs followed the decline in 3rd party coal purchases before the start of seasonal decline in purchasing activity among the Company’s retail chain clients.
The key coal production indicators, which affect the Company’s production costs, are presented in the table:
Key coal production indicators
| Q1 2011 |
Q4 2010 |
Ch., % |
Q1 2010 |
Ch., % | |
| Coal production (mln. tonnes) | 1,83 | 2,21 | -17% | 1,50 | 22% |
| Stripping, (mln. cub. m) | 14,69 | 13,62 | 8% | 9,57 | 54% |
| Exploded rock13 (mln. cub. m) | 7,21 | 6,77 | 7% | 6,43 | 12% |
| Stripping ratio14 (t. / cub. m.) | 8,0 | 6,1 | 32% | 6,4 | 25% |
| Average stripping transportation distance (km) | 2,6 | 2,4 | 10% | 2,8 | -6% |
In Q1 production costs15 increased by 19% to RUR 1,036 mln. (Q4 2010: RUR 869 mln.), but remained constant at 25% as a proportion of the total cost of sales. The main categories of production costs changed in the following manner:
In Q1 production cash costs16 per 1 tonne of coal increased by 43% to RUR 631 (Q4 2010: RUR 441). In addition to the growth in the main production cost items, discussed above, cash costs were driven by a 32% increase in the stripping ratio - from 6.1 to 8.0 cub. m. per tonne. The growth in stripping ratio was related to advance stripping processing work to clean coal seams, which will be extracted in next quarters.
During the quarter depreciation included in the cost of sales increased by 4% quarter-on-quarter to RUR 220 mln. Extraction tax and environment payments decreased by 5% to RUR 82 mln. because of lower production volumes. All other costs, including operating leases, electric power and others, decreased by 6% to RUR 117 mln. The Company’s stocks of coal increased by RUR 66 mln.
Reflecting all the factors discussed above, the quarterly revenue and cost of sales growth virtually offset each other, and gross profit increased by 1% and amounted to RUR 1,110 mln. (Q4 2010: RUR 1,095 mln.)
Compared to Q1 2010 the quarterly cost of sales grew by 80% year-on-year to (Q1 2010: RUR 2,295 mln.). The cost of coal transportation increased by 116% due to the growth in sales volumes by 26% and the increase in export share in total coal sales structure from 39% to 57%. In addition, the transportation costs increase was driven by the growth in railroad renting prices due to their tight supply on the market. The cost of coal purchased from the 3rd parties increased by 69% year-on-year due to an increase in coal purchase volume in its prices. Also there was a growth in production cash costs, which increased by 37% year-on-year (Q1 2010: RUR 471). Their growth was related to 25% increase in stripping ratio, 12% increase in exploded rock volume and general inflation of the main cash cost items.
Due to the same growth in revenue and cost of sales, gross profit increased by 78% year-on-year (Q1 2010: RUR 623 mln.).
Distribution, administrative and other operation costs
Distribution, administrative and other costs in Q1 decreased by 4% to RUR 402 mln. (Q4 2010: RUR 420 mln.) due to smaller services expenses following 17% reduction in coal sales volumes. The growth of distribution and administrative personnel costs, which was 11% quarter-on-quarter, was caused by a readjustment of salaries, an increase in social contributions rates and a growth in number of employees involved in export trading operations.
Compared to Q1 2010 distribution, administrative and other costs (Q1 2010: RUR 233 mln.), Q1 2011 costs increased by 73% due to the growth in coal production and sales volumes, but their ratio to revenue remained stable at the level of 8%.
Operating profit, EBITDA and net profit
The quarterly growth in gross profit by 1% and the decrease in distribution, administrative and other costs by 4% led to a growth in operational profit for Q1 2011 by 5% to RUR 708 mln. (Q4 2010: RUR 675 mln.) EBITDA increased by 4% to RUR 948 mln. (Q4 2010: RUR 909 mln.), whereas its margin decreased from 20% to 18% due to the seasonal reduction in sales and the growth in stripping ratio.
Compared to Q1 2010 operational profit increased by 82% (Q1 2010: RUR 390 mln.), and EBITDA increased by 50% (Q1 2010: 631 mln.). These profit indicators were positively influenced by the increase of coal sales volumes and the growth in coal prices on all markets.
During Q1 the net profit increased by 26% to RUR 593 mln. (Q4 2010: RUR 470 mln). The net profit increased by 113% year-on-year (Q1 2010: RUR 279 mln.). Besides the growth in profit from continuous operations, net profit was positively affected by a foreign exchange gain and the reduction in interest expenses.
Indebtedness
| RUR Mln. 17 | 31 Mar.* 2011 |
31 Dec. 2010 |
Ch., % |
31 Mar.* 2010 |
Ch18., % |
| Long term loans and credits | 1,921 | 1,676 | 15% | 3,157 | -47% |
| Short term loans and credits | 146 | 535 | -73% | 1,128 | -53% |
| Total debt, including: | 2,067 | 2,211 | -7% | 4,285 | -48% |
| Rouble-denominated | 216 | 228 | -5% | 2,010 | -89% |
| Foreign currency-denominated | 1,851 | 1,983 | -7% | 2,275 | -13% |
| Cash and cash equivalents | 467 | 457 | 2% | 52 | 779% |
| Net debt | 1,600 | 1,754 | -9% | 4,233 | -59% |
* Hereinafter amounts for 31 March 2011 and 31 March 2010 are presented as unaudited
During Q1 total debt of the Company reduced by 7% to RUR 2,067 mln. due to RUR appreciation to USD, which was also 7%. As of March 31, 2011, 90% of the credit portfolio of the Company was denominated in USD, and the remaining 10% was denominated in rubles. Long term loans increased by 15%, and short term loans reduced by 73% and composed only 7% of the total credit portfolio. The level of net debt reduced by 9% to RUR 1,600 mln, and Net debt to EBITDA ratio composed 0.7.
In Q1 interest expense decreased by 15% to RUR 39 mln (Q4 2010: RUR 46 mln.), and the average effective interest rate reduced from 7.7% to 7.4%.
Comparing to Q1 2010 Net Debt reduced by 59%, and interest expense decreased by 61% (Q1 2010: RUR 4.233 mln. and RUR 100 mln., respectively).
Cash flow
| RUR mln.17 | Q1 2011 |
Q4 2010 |
Ch., % |
Q1 2010 |
Ch., % |
| Cash flows from operations before income tax and interest paid |
573 | 1,262 | -55% | 271 | 111% |
| Cash flows from operating activities | 390 | 1,165 | -67% | 159 | 145% |
| Cash flows used in investing activities | -368 | -534 | -31% | -683 | -46% |
| Cash flows from financing activities | -1 | -374 | n.m. | 470 | n.m. |
| Net increase / (decrease) in cash and cash equivalents | 21 | 257 | n.m. | -54 | n.m. |
Cash flow from operations for Q1 2011 reduced by 67% to RUR 390 mln., comparing to RUR 1,165 mln. in Q4 2010, generally due to:
Due to capital expenditure in Q1 2011 being almost 2 times less than in Q4 2010, cash outflow from investing activities decreased by 31% and composed RUR 368 mln.
During the quarter the volume of attracted loans approximately equaled the volume of loans repaid. For this reason cash outflows from financing activities amounted only to RUR 1 mln.
From all mentioned above, net increase in cash and cash equivalents composed RUR 21 mln. (Q4 2010: RUR 257 mln.).
Capital expenditures
In Q1 2011 the volume of capital expenditures for capital assets and construction projects composed RUR 346 mln. (Q4 2010: RUR 541 mln.). During Q1 the Company’s open pit mines received various rock transporting machinery. Also the Company purchased land plots for more than RUR 110 mln.
Current trading and outlook Q2 2011
Due to the favourable pricing conditions on export markets, and appearance of an opportunity to outsource an additional stripping processing work, in Q2 the Company plans to increase the coal production volume by 3-5% quarter-on-quarter and by more than 50% year-on-year. The growth in production volumes will be driven by an increase of extraction in "Cheremshansky" open pit mine, which produces the highest quality coal, but also has the highest stripping ratio.
Despite the growth in production, the Company expects higher quarter-on-quarter production cash costs due to the higher share of coal extracted in "Cheremshansky" open pit mine in the total volume of coal produced. In Q2 the level of production cash costs per 1 tonne of coal will be the highest during 2011. At the same time, the Company expects a growth in average coal prices both on domestic and export markets.During Q2 the Company will continue the execution of its investment program, including purchasing rock transportation machinery and starting construction of the new enrichment plant at the "Vinogradovsky" open pit mine.
Based on the expected increase in stripping ratio and growth in production cash costs, management of the Company expects a quarter-on-quarter decrease in Q2 2011 EBITDA, but believes that its level will be significantly higher year-on-year. In addition, the Company expects a strong growth in earnings in 2nd half of 2011 due to a growth in production and sales volumes and reduction in stripping ratio, which drives all the main production expenses of the Company.
Management positively views the Company’s development perspectives in Q2 and in total 2011.
Forward–Looking Statements
This press release might contain forward-looking statements that refer to future events or forecast financial indicators for OJSC "Kuzbasskaya Toplivnaya Company". Such statements do not guarantee that these are actions to be taken by OJSC "Kuzbasskaya Toplivnaya Company" in the future, and estimates can be inaccurate and uncertain. Actual final indicators and results can considerably differ from those declared in any forward-looking statements. OJSC "Kuzbasskaya Toplivnaya Company" does not intend to change these statements to reflect actual results.
Appendix
1. Calculation of EBITDA 19
| RUR Mln. | Q1* 2011 |
Q4* 2010 |
Q1* 2010 |
| Operating profit | 708 | 675 | 390 |
| Depreciation charge | 241 | 226 | 189 |
| Impairment loss (gain) | 0 | 7 | 0 |
| Loss (profit) from disposals of property, plant and equipment | -2 | 1 | -51 |
| EBITDA | 947 | 909 | 631 |
* Hereinafter figures for Q1 2011 and Q1, Q4 2010 are presented as unaudited
2. Calculation of production cash costs
| RUR Mln. | Q1 2011 |
Q4 2010 |
Q1 2010 |
| Consolidated cost of sales | 4 135 | 3 489 | 2 295 |
| Excluding cost of sales of subsidiaries | -432 | -559 | -829 |
| OJSC КТК cost of sales | 3 703 | 2 930 | 1 466 |
| Excluding: | |||
| Depreciation (in cost of sales) | -203 | -193 | -155 |
| Purchased coal | -220 | -264 | -135 |
| Change of inventory balances | 31 | -103 | 50 |
| Railroad tariffs and transportation costs | -2 158 | -1 600 | -537 |
| Total cash costs | 1 154 | 976 | 689 |
| Coal production, mln. Tonnes | 1.83 | 2.21 | 1.50 |
| Total cash cost per 1 tonne of coal, RUR | 631 | 441 | 461 |
3. Segment reporting
Domestic sales of coal produced
| RUR Mln. | Q1* 2011 |
Q4 * 2010 |
Q1* 2010 |
| Revenue | 735 | 1,013 | 813 |
| Cost of sales | -566 | -713 | -615 |
| Gross profit | 169 | 300 | 198 |
| Gross margin,% | 23% | 30% | 24% |
* Hereinafter figures for Q1 2011 and Q1, Q4 2010 are presented as unaudited
Export sales of coal produced
| RUR Mln. | Q1 2011 |
Q4 2010 |
Q1 2010 |
| Revenue | 3,607 | 2,593 | 1,405 |
| Cost of sales | -2,950 | -2,123 | -1,193 |
| Gross profit | 657 | 470 | 212 |
| Gross margin,% | 18% | 18% | 15% |
Resale of coal purchased
| RUR Mln. | Q1 2011 |
Q4 2010 |
Q1 2010 |
| Revenue | 722 | 802 | 512 |
| Cost of sales | -509 | -547 | -382 |
| Gross profit | 213 | 255 | 130 |
| Gross margin,% | 30% | 32% | 25% |
Other operations
| RUR Mln. | Q1 2011 |
Q4 2010 |
Q1 2010 |
| Revenue | 181 | 176 | 188 |
| Cost of sales | -111 | -106 | -105 |
| Gross profit | 70 | 70 | 83 |
| Gross margin,% | 39% | 40% | 44% |
4. Financial highlights converted to USD
Comprehensive income statement highlights
| USD Mln.* | Q1 2011 |
Q4 2010 |
Ch., % |
Q1 2010 |
Ch., % |
| Revenue | 180 | 149 | 21% | 98 | 84% |
| Cost of sales | -142 | -114 | 25% | -77 | 84% |
| Gross profit | 38 | 36 | 7% | 21 | 82% |
| Commercial, administrative and other costs | -14 | -14 | 1% | -8 | 77% |
| Operating profit | 24 | 22 | 10% | 13 | 86% |
| EBITDA | 33 | 30 | 10% | 21 | 54% |
| Net profit (loss) | 20 | 15 | 33% | 9 | 117% |
* In the table figures are converted to USD using average Central Bank of the Russian Federation exchange rates for each quarter (Q1 2010: 29.84 RUR/USD; Q4 2010: 30.72 RUR/USD; Q1 2011: 29.16 RUR/USD)
Cost of sales
| USD Mln.* | Q1 2011 |
Q4 2010 |
Ch., % |
Q1 2010 |
Ch., % |
| Rail road tariff and transportation | 77 | 57 | 37% | 35 | 121% |
| Purchased coal | 17 | 20 | -15% | 12 | 42% |
| Employee costs and social payments | 10 | 9 | 16% | 6 | 56% |
| Extraction, processing and sorting of coal | 9 | 7 | 33% | 5 | 76% |
| Fuel | 10 | 8 | 36% | 6 | 67% |
| Depreciation | 8 | 7 | 10% | 6 | 31% |
| Spare parts | 4 | 3 | 20% | 2 | 105% |
| Extraction tax and environment payments | 3 | 3 | 0% | 2 | 79% |
| Repair and maintenance | 2 | 2 | 12% | 1 | 243% |
| Other costs | 4 | 4 | -1% | 3 | 25% |
| Change in coal stock | -2 | -5 | -53% | -1 | 170% |
| Cost of sales | 142 | 114 | 25% | 77 | 84% |
| Production cash costs per 1 tonne, USD | 22 | 14 | 51% | 15 | 40% |
* In the table figures are converted to USD using average Central Bank of the Russian Federation exchange rates for each quarter (Q1 2010: 29.84 RUR/USD; Q4 2010: 30.72 RUR/USD; Q1 2011: 29.16 RUR/USD)
Cash flows
| USD Mln.* | Q1 2011 |
Q4 2010 |
Ch., % |
Q1 2010 |
Ch., % |
| Cash flows from operations before income tax and interest paid | 20 | 41 | -52% | 9 | 116% |
| Cash flows from operating activities | 13 | 38 | -65% | 5 | 151% |
| Cash flows used in investing activities | -13 | -17 | -27% | -23 | -45% |
| Cash flows from financing activities | 0 | -12 | n.m. | 16 | n.m. |
| Net increase / (decrease) in cash and cash equivalents | 1 | 8 | n.m. | -2 | n.m. |
Indebtedness
| USD Mln. | 31 Mar.* 2011 |
31 Dec.* 2010 |
Ch., % |
31 Mar.* 2010 |
Ch20., % |
| Long term loans and credits | 68 | 55 | 23% | 108 | -49% |
| Short term loans and credits | 5 | 18 | -71% | 38 | -54% |
| Total debt, including: | 73 | 73 | 0% | 146 | -50% |
| Rouble-denominated | 8 | 7 | 1% | 68 | -89% |
| Foreign currency-denominated | 65 | 65 | 0% | 77 | -16% |
| Cash and cash equivalents | 16 | 15 | 10% | 2 | n.m. |
| Net debt | 56 | 68 | -2% | 144 | -60% |
* In the table figures are converted to USD using Central Bank of the Russian Federation exchange rates for the end of each quarter (Q1 2010: 29.36 RUR/USD; Q4 2010: 30.48 RUR/USD; Q1 2011: 28.43 RUR/USD)
5. Consolidated Interim Financial Statements for 3 months ended 31 March 2011
1 Figures converted to USD are shown in Appendix 4.
2 EBITDA for each period is defined as results from operating activities, adjusted for amortization and depreciation, impairment loss and profit or loss on disposal of property, plant and equipment. EBITDA is not a measurement of the Company’s operating performance under IFRS and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with IFRS or as an alternative to cash flow from operating activities or as a measure of the Company’s liquidity.
3 Net debt calculated on page 10
4 For the purpose of the Q4 2010 ratio calculation the aggregate of EBITDA for 12M 2010 was used. For the purpose of the Q1 2011 ratio calculation the aggregate of EBITDA for 3M 2011 Q2-Q4 2010 was used. For the purpose of the Q1 2010 ratio calculation the aggregate of EBITDA for 9M 2010 and Q2-Q4 2009 was used.
5 Net of VAT and rail road tariffs
6 As at 31 March 2011 the Company owned 45% share in "Kuzbasskaya Transportnaya Company" LLC.
7 We recommend that participants start dialing in 5-10 minutes prior to ensure a timely start to the conference call.
8 Figures converted to USD are shown in Appendix 4.
9 Railroad transportation costs included in coal price for customers, only
10 Railroad transportation costs included in coal price for customers, only.
11 Figures converted to USD are shown in Appendix 4.
12 As at 31 March 2011 the Company owned 45% share in "Kuzbasskaya Transportnaya Company" LLC.
13 Included in stripping volume
14 Ratio of a volume of coal produced to a volume stripping volume processed.
15 Production costs include production personnel salaries, fuel, extraction and sorting costs, spare parts purchasing costs, repair and maintenance costs
16 Production cash costs calculated in Appendix, Table 2
17 Figures converted to USD are shown in Appendix 4.
18 Change of figures as at 31 March 2011 compared to 31 March 2010
19 EBITDA for each period is defined as results from operating activities, adjusted for amortization and depreciation, impairment loss and loss on disposal of property, plant and equipment. EBITDA is not a measurement of the Company’s operating performance under IFRS and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with IFRS or as an alternative to cash flow from operating activities or as a measure of the Company’s liquidity.
