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  • 1. FY 2012 FINANCIAL RESULTSPresentation April 4, 2013 Kemerovo Scan the QR code or visit www.oaoktk.ru/en /investors/presentations
  • 2. DISCLAIMERIMPORTANT: You must read the following before continuing.The following applies to the management presentation (the “Management Presentation”) following this important notice, and you are, therefore, advised to read this important notice carefully beforereading, accessing or making any other use of the Management Presentation. In accessing the Management Presentation, you unconditionally agree to be bound by the following terms, conditions andrestrictions, including any modifications to them any time that you receive any information from OJSC “Kuzbasskaya Toplivnaya Company” (the “Company”) as a result of such access.The information contained in this Management Presentation has been prepared by the Company.This Management Presentation is an information document presenting information on the Company.This Management Presentation (i) is not intended to form the basis for any investment decision and (ii) does not purport to contain all the information that may be necessary or desirable to evaluate theCompany fully and accurately and (iii) is not to be considered as a recommendation by the Company or any of its affiliates that any person (including a recipient of this Management Presentation)participate in any transaction involving the Company or its securities. The Company has not independently verified any information contained herein and does not undertake any obligation to do so.This Management Presentation is not directed to, or intended for distribution to or use by, any person or entity that a citizen or resident or located in any locality, state, country or other jurisdiction wheresuch distribution, publication, availability or use would be contrary to law or regulation or which would require registration of licensing within such jurisdiction.Neither the provision of this Management Presentation, nor any information in connection with the analysis of the Company constitutes or shall be relied upon as constituting, the giving of investment (orother) advice by Company, or any other shareholders, employees, representatives or affiliates thereof.Neither the Company nor its respective subsidiaries, associates, directors, employees, agents or advisors (such directors, employees, agents or advisors being hereafter referred to as “representatives”),makes any representation or warranty (express or implied) as to the adequacy, accuracy, reasonableness or completeness of the information contained in this Management Presentation or of anyadditional information, and such parties or entities expressly disclaim any and all liability (other than in respect of fraudulent misrepresentation) based on or relating to any representations or warranties(express or implied) contained in, or errors or omissions from, this Management Presentation or any additional information or based on or relating to the recipients use or the use by any of its associatesor representatives of this Management Presentation or any additional information, or any other written or oral communications transmitted to the recipient or any of its associates or representatives orany other person in the course of its or their evaluation of an investment in the Company.FORWARD-LOOKING STATEMENTSThis Management Presentation includes statements that are, or may be deemed to be, “forward looking statements”. These forward looking statements can be identified by the use of forward-lookingterminology, including the terms “believes”, “estimates”, “anticipates”, “expects”, “intends”, “may”, “will” or “should” or, in each case their negative or other variations or comparable terminology. Theseforward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this Management Presentation and include statements regarding the intentions,beliefs or current expectations of the Company. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances, which may or maynot occur in the future, are difficult or impossible to predict, and are beyond the Company’s control. Forward-looking statements are not guarantees of future performance. The Companys actualperformance, results of operations and financial condition may differ materially from the impression created by the forward-looking statements contained in this Management Presentation.Subject to its legal and regulatory obligations, the Company expressly disclaims any obligation to update or revise any forward-looking statement contained herein to reflect any change in expectationswith regard thereto or any change in events, conditions or circumstances on which any statement is based.Any recipient of this Management Presentation is solely responsible for assessing and keeping under review the business, operations, financial condition, prospects, creditworthiness, status and affairs ofthe Company.In no circumstances shall the provision of this Management Presentation imply that no negative change may occur in the business of the Company after the date of provision of this ManagementPresentation, or any date of amendment and/or addition thereto.ROUNDING AND ERRORSCertain numerical figures included in this presentation have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in certain tables may not be an arithmetic aggregation ofthe figures that preceded them. Calculations of change in % are made after rounding of figures converted to USD.We make every effort to check and verify the materials, but if you find any errors or inaccuracies please report it to vkr@oaoktk.ru and we will provide you with the correct data and publish any correctionnotes on the website www.oaoktk.ru. 2 / 23
  • 3. TABLE OF CONTENTS I. BUSINESS REVIEW 4 II. OPERATIONAL HIGHLIGHTS 8 III. FINANCIAL PERFORMANCE 14 CAPEX 2013 18 CONTACTS 19 APPENDIX 20 PRESENTERS: Eduard Vasily Alekseenko Rumyantsev First Deputy CEO Head of Moscow office, IRO 3 / 23
  • 4. I.BUSINESSREVIEWwww.oaoktk.ru/en 4 / 23
  • 5. KTK AT A GLANCE One of the fastest-growing thermal coal producers in Russia Coal production history with open-pit mine breakdown, mln. tonnes One of major suppliers of coal in Western Siberia In 2012 the Company became 6th largest thermal coal producer in Russia(1) 8.73 8.71 Since its establishment in 2000, the Company has launched 3 open-pit mines and developed an extensive production and distribution infrastructure and 6.80 the fourth one is now under construction: 6.15 3.76 3.76  8.71 mln. tonnes of thermal coal produced in 2012 5.48  100% high-quality grade “D” thermal coal under Russian classification 4.33 4.29 4.10 0.98 2.06 2.55  Developed railway network and facilities 3.14 1.76 1.87  Two washing plants with 6 mln. tonnes total input capacity 2.29 2.38 0.41 1.77 1.65 1.36 1.91 1.44 1.47 1.30 3 existing open-pit mines Bryanskiy open-pit mine 2.73 2.74 2.78 3.23 3.08 0.37 2.29 2.38 2.56 2.64 2.59 2.65 1.30Structural 0.37 11 mln. tonnes 3-5 mln. tonnescapacity 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Reserves 391 mln. tonnes of coal resources 250 mln. tonnes according to and 174 mln. tonnes of proven and Karakansky South Vinogradovsky Cheremshansky the C2 category probable reserves(2) Key operating and financial indicators(1) 2010 2011 2012 Utilization of modern and high-performance equipment fleet supporting Coal sales, mln. tonnes 8.54 10.66 10.20 efficient low-cost production – USD 22 per tonne of coal in 2012 incl. purchased coal, mln. tonnes 2.16 2.08 1.70 Revenue, USD mln. 466 814 743 Diversified sales capabilities balanced between domestic market (4.29 mln. % change 39% 75% -9% tonnes sold in 2012) and export markets (5.91 mln. tonnes sold in 2012) EBITDA, USD mln. 70 133 112 Largest retail coal distribution network in Western Siberia, 70 PoS % margin 15% 16% 15% Net Income, USD mln. 27 69 58 Employing about 4,000 people % margin 6% 9% 8% KTK shares are quoted on RTS and MICEX (ticker: KBTK) Source: audited IFRS FS for 2010-2012 in which all amounts are presented in RUB, Company 65.61% of share capital is owned by the management (I. Prokudin – 50,001%, (1) Metal Expert, January 2013 V. Danilov – 15.61%), free-float – 34.39% is distributed between 25 (2) Run-of-mine coal, JORC classification; (3) In the table USD are converted from RUB using average Central Bank of the Russian Federation investment funds. Individuals own 0.31% exchange rates for each year (2012: 31.08 RUB/USD; 2011: 29.39 RUB/USD; 2010: 30.38 RUB/USD) 5 / 23
  • 6. CORPORATE STRUCTURE OJSC Kuzbasskaya Toplivnaya Company CJSC Kaskad Management LLC Meret Freight ForwardingVinogradovsky Open Pit 100% Company 100%(Coal mining infrastructure division) (export sales) Company (railway freight company) OJSC Kuzbasstoplivosbyt 100% (wholesale and retail coal sales inOpen-pit mine Kemerovo Region)“Karakansky South” 100% OJSC Kaskad-Energo (heat and energy producer) LLC TransugolOpen-pit mine 52.04 % (wholesale and retail coal sales in Omsk“Vinogradovsky” Region) 100% LLC Kaskad GeoOpen-pit mine OJSC Altay Fuel Company (land acquisition) 51% (wholesale and retail coal sales in Altay“Cheremshansky” Region)Open-pit mine LLC Novosibirsk Fuel“Briansky” 51% Corporation (wholesale and retail coal sales in Novosibirsk Region) 100 % KTK Polska Sp. z. o. o. (wholesale and retail coal sales in Europe) Production Retail and export sales Transportation, energy and real estate 6 / 23
  • 7. MINING OPERATIONS Layout of open-pit mines and washing plants1Vinogradovsky open-pit mine2Cheremshansky open-pit mine3Karakansky South open-pit mine +250.2 mln. tonnes4 5 6Bryanskiy open-pit mine Kaskad-1 washing plant Kaskad-2 washing plant 7 / 23
  • 8. II.OPERATIONALHIGHLIGHTSwww.oaoktk.ru/en 8 / 23
  • 9. OPERATIONAL HIGHLIGHTS Q4 AND FY 2012 In the Q4 2012 the volume of coal production increased by 7% Q-o-Q and amounted to 2.39 Coal production mln. tonnes (Q3 2012 2.24 mln. tonnes). growth Q-o-Q In the 2012, the volume of production remained at the 2011 level and totaled 8.71 mln. tonnes Washing plant Q-o-Q production of washed coal has decreased by 5% to 0.20 mln. tonnes (Q3 2012: 0.21 mln. “Kaskad-1” is working tonnes). at close to full For the year 2012 the volume of production at the washing plant "Kaskad" has increased by 3% to 0.81 mln. tonnes (2011: 0.74 mln. tonnes). capacity level Due to the traditional growth in trading activity in the domestic market of thermal Seasonal Q-o-Q coal, observed in Q4, the Company increased its sales compared to Q3 2012 to 21% increase in coal sales implementing the 2.93 mln. tonnes (Q3 2012: 2.42 mln. tonnes). volume The volume of coal sales for the year 2012 decreased by 4% to 10.20 mln. tonnes (2011: 10.66 mln. tonnes). The quarterly average stripping ratio decreased by 6% Q-o-Q to 5.80 (Q3 2012: 6.16) and by 21% Y-o-Y (Q4 2011: 7.35) Key production cost The blasted rock mass decreased by 16% to 5.87 mln. cbm. Q-o-Q (Q3 2012: 7.01 mln. cbm.) and drivers decrease decreased by 21% Y-o-Y (Q4 2011: 10.72 mln. cbm.) The average stripping transportation distance decreased by 13% Q-o-Q to 2.80 km. (Q3 2012: 3.20 km.) and decreased by 5% Y-o-Y (Q4 2011: 2.95 km.)Source: Company 9 / 23
  • 10. COAL SALES BREAKDOWN FY 2012 Coal resale 1.70 17% 10.20 mln. tonnes 8.51 83% Own coal Public utilities and households 3.86 90% 4.29 mln. tonnes 0.43 10% Power Generating companies { { Domestic market 4.29 42% 10.20 mln. tonnes Export market 5.91 58% { Eastern Europe 2.80 47% 5.91 mln. tonnes 3.11 53% Asia-Pacific RegionSource: Company 10 / 23
  • 11. AVERAGE REALISED PRICES VS BENCHMARKS Asian export markets KTK realized export prices(1) vs. international FOB and CIF benchmarks, USD/tonne European export markets USD / tonne 120 Other export markets 92.38 95.25 100 88.57 89.73 90.24 84.35 84.10 84.46 80 60 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 KTK average export price CIF ARA 6,000 kkal/kg FOB Indonesia 5,800 kkal/kg KTK FCA prices vs. Russian EXW benchmark, USD/tonne45 44.02 USD / tonne 42.31 41.87 42.2143 41.06 40.3941 39.3539 38.153735 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 KTK domestic price, FCA Meret Average price EXW in Russia, based on 5,200-5,400 kkal/kgSource: Company, Metal Expert for average EXW prices in Russia, Argus for FOB Indonesia and CIF ARA(1) Net of VAT, average KTK export realized price incl. railway tariffs 11 / 23
  • 12. AVERAGE REALISED PRICES AND MARKETS KTK’s transport flows2.80 mln. tonnesEastern European Countries (1) North-West FD Domestic market Omsk region Asia-Pacific Domestic sales Export sales Headquarters Moscow 4.29 mln. tonnes(1) Railroad tariff to the Urals FD Polish border: 47.07 USD/tonne (2) Volga FD Tomsk Region 3.11 Siberian FD mln. tonnes(1) Omsk Region Asia-Pacific region Kemerovo Region Source: Company Novosibirsk Region (1) Sales volumes for 2012 Railroad tariff to the station at (2) Average Q4 2012 KTK transportation cost is converted to Nakhodka-East port : Altay Region 40.83 USD/tonne (2) USD using average Central Bank of the Russian Federation exchange rate (Q4 2012: 31.08 RUB/USD) Quarterly domestic and export sales, mln. tonnes Average quarterly domestic and export prices comparison (3) 21% 2.81 2.93 % of total 47.96 2.42 45.02 2.04 41.87 42.21 1.49 41.06 40.49 40.87 40.83 1.61 51% 39.35 40.25 39.88 39.51 1.36 1.45 0.50 17% 0.64 0.32 0.57 0.24 0.74 0.94 32% 0.35 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Export sales Domestic sales (coal resale) Domestic sales (own coal) Average domestic price Average export price Average blended price Source: Company (3) Prices are net of VAT and railroad tariffs; domestic prices include costs associated with retail distribution network; prices are converted to USD using average Central Bank of the Russian Federation exchange rates for each quarter (Q4 2012: 31.08 RUB/USD; Q3 2012: 32.00; Q2 2012: 31.10 RUB/USD; Q1 2012: 30.03 RUB/USD) 12 / 23
  • 13. RETAIL NETWORK IN WESTERN SIBERIA Since its establishment, the Company has been continuously expanding 2012 retail sales breakdown (1), mln. tonnes and building its retail sale and storage network: 0.14 1.23 Kemerovo Region  Own 70 points of sale as at the end of 2012; 4% 36% 0.40  Additional points of sale planned to be acquired or established; 11% Altay Region Total sales in  Wide distribution network and strong regional presence position the Siberian FD Omsk Region Company as one of the principal suppliers of coal to retail 3.45 mln. tonnes costumers, municipalities, and public utilities in Western Siberia. Novosibirsk Region Omsk Region 1.59 0.09  When export prices are high, the Company uses lower quality third- party coal to satisfy domestic demand, while shifting its own higher quality coal to export markets. 5 46% 3% KTK direct sales points  of sale 26 Client base: over 400,000 individuals, over 1,000 corporates 0.14 mln. tonnes (1) Omsk Headquarters points of sale 1.23 mln. tonnes (1) Novosibirsk Kemerovo Novosibirsk Kemerovo Region Region Retail Subsidiary Company’s ownership Type of activity 12 27 OJSC “Kuzbasstoplyvosbit” 100% Wholesale & retail sales in Kemerovo Region Barnaul points Wholesale & retail sales in Omsk Region points of sale LLC “TransUgol” 51% of sale 1.59 mln. LLC “Novosibirsk TK” 51% Wholesale & retail sales in Novosibirsk Region 0.40 mln. Altay Region tonnes (1) tonnes (1) OJSC “Altay TK” 51% Wholesale & retail sales in Altay RegionSource: Company(1) Sales for the year 2012, incl. coal resale 13 / 23
  • 14. III.FINANCIALPERFORMANCEwww.oaoktk.ru/en 14 / 23
  • 15. REVENUEKey financial indicators(1) 2012 revenue by segments(1)USD mln. Q4 2012 Q3 2012 2012 2011 9% 3%Revenue 200 168 743 814 19%Cost of sales (156) (135) (611) (660) Own coal, exportGross profit 45 32 133 154 Own coal, Russia Gross profit margin 22.3% 19.3% 17.8% 18.9% USD 743 mln. Coal resale, RussiaSG&A and other expenses (16) (13) (57) (56) Other revenue (2)EBITDA 39 28 112 133 69% EBITDA margin 19.2% 16.9% 15.1% 16.3% EBITDA per tonne, USD 16 13 13 15Operating profit (EBIT) 28 20 75 98 Operating margin 14.1% 11.7% 10.1% 12.1% Segment revenue dynamics(1), USD mln. Q-o-QNet income 22 19 58 69 Net income margin 11.2% 11.3% 7.8% 8.4% 222 216 29% 8Gross debt3 232 235 232 141 22 168 8 79%Net debt3 154 155 154 83 38 156 23 57% 15 4 10 4 47 36% 20 35 153 123 114 122 7%(1) Figures were converted to USD using the average exchange rates of the Central Bank of the RussianFederation for each period (Q4 2012: 31.07 RUB/USD; Q3 2012: 32.00 RUB/USD; Q2 2012: 31.10 RUB/USD; Q1 2012 Q2 2012 Q3 2012 Q4 2012Q1 2012: 30.03; 2012: 31.08 RUB/USD; 2011: 29.39 RUB/USD) Other revenue Coal resale, Russia Own coal, Russia Own coal, export(2) EBITDA for each period is defined as results from operating activities, adjusted for amortization anddepreciation, impairment loss and loss on disposal of property, plant and equipment(3) Figures were converted to USD using the exchange rates of the Central Bank of the Russian Federationfor the end of each period (31.12.12: 30.37 RUB/USD; 30.09.12: 30.92 RUB/USD; 31.12.11: 32.20 RUB/USD) 15 / 23
  • 16. COST OF SALES AND EBITDA 7%Cost of sales breakdown and Production cash costs dynamics(1)dynamics(1), USD mln. 28% USD 156 mln. 56 50% 54 178 Q-o-Q 8% 6% 156 15% 44 143 56 135 11 12% 39 10 12% 28 54 44 24 39 26 9 13 54% Q-o-Q 11 8 9 17% 8 8 7% 90 79 12% 19 72 70 18 2.18 1.90 2.24 2.39 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Other costs Production cash costs Coal purchased Production volume, mln. tonnes Production cash costs, USD mln. Depreciation Transportation costs Cash cost, USD per tonne, USDProduction cash costs breakdown(1), mln. USD % of total Production cash costs in Q4 2012 56 54 12% Extraction, processing and sorting of coal 44 20 39 27% Fuel 19 5 6 23% Cost of personnel 14 12 12 11 14% 10 Spare parts 9 10 9 4 5 5 6 5% Mining and environment taxes 2 2 2 2 3 3 3 3 4 3 3 5 7% Repair and maintenance Q1 2012 Q2 2012 Q3 2012 Q4 2012 11% Other costsSource: audited 2012 IFRS FS, unaudited 9M 2012, 6M 2012, 3M 2012 IFRS FS in which all amounts are presented in RUB(1) Figures were converted to USD using the average exchange rates of the Central Bank of the Russian Federation for each period (Q4 2012: 31.07 RUB/USD; Q3 2012: 32.00RUB/USD; Q2 2012: 31.10 RUB/USD; Q1 2012: 30.03 RUB/USD). 16 / 23
  • 17. INDEBTEDNESS During Q4 2012 the total net debt decreased by 1% to USD 154 mln. Net Debt to EBITDA(1), USD mln. Net Debt to EBITDA ratio increased by 4% from 1.32 to 1.382 Аverage interest on borrowings denominated in rubles at the end of 2012 was 8.45%3, and for loans denominated in U.S. dollars — 4.80%. 156 155 154 136 125 114 117 Debt structure(1) by currency as of 31.12.12 112 USD loans 47% Total debt: RUB loans USD 232 mln. 1.32 1.38 1.25 53% 0.84 Q1 2012 Q2 2012 Q3 2012 Q4 2012 4 Net debt EBITDA (12M) Net debt/EBITDA (12M)Source: audited 2012 IFRS FS, unaudited 3M, 6M, 9M 2012 IFRS FS in which all amounts are presented in RUB(1) Annualized EBITDA is calculated in USD after rounding(2) Net debt/EBITDA is calculated in USD. Ratio as of 31.12.12 in RUB is 1.35(3) Including subsidy of Belarus Republic for purchasing BelAZ mining trucks(4) Figures were converted to USD using exchange rates of the Central Bank of the Russian Federation for each date (31.12.12: 30.37 RUB/USD; 30.09.12: 30.92 RUB/USD; 17 / 23 30.06.12: 32.82 RUB/USD; 31.03.12: 29.33 RUB/USD; 31.12.11: 32.20 RUB/USD).
  • 18. CAPEX 2013 Due to changing conditions in the international coal markets, management CAPEX breakdown(1), USD mln. decided to adjust the KTKs investment program for 2013 without giving up the key strategic priorities including the construction of a third washing plant "Vinogradovsky", development of open-pit "Bryansky", which will be the "Kaskad-2" washing plant 9 fourth mining asset of KTK. In Q1 2013 the Company did not make new investments, all the funds will be Other infrastructure 2 invested in Q2-Q4, 2013. Total investment program for 2013 amounts to USD 30 mln.1 There will be 6 Production and auxiliary equipment 7 major investment categories:  Financing the work at "Kaskad-2" washing plant Bryanskiy coal deposit 1  Purchasing of production and auxiliary equipment including P&H excavator and BelAZ mining truck. Railroad infrastructure 1  Continue exploration and design works on the open-pit "Bryansky"  Developing of the retail network and distribution infrastructure, which Sales infrastructure 3 will allow the expansion of the retail network in the Altai Region.  Construction of industrial infrastructure, including the construction of a Other 5 complex for the production of crushed stone, which upon commencement will significantly reduce the cost of tires for production equipment.  Other investments: the expandtion of the area of ​one of the existing 4% 5% open-pits and acquisition of a prospective mining licence, located in 10% close proximity to existing assets of KTK 25% USD 30 16%This investment program demonstrates the key elements of investments and mln.may change insignificantly during the year. 7% 31%(1) – Net of VAT, USD figures were converted from RUB using 32.00 RUB/USD exchange rate 18 / 23
  • 19. CONTACTSOJSC “Kuzbasskaya toplivnaya company”www.oaoktk.ru/en News and announcements (Russian only)Head office in Kemerovo: www.facebook.com/oaoktk4, 50 let Oktyabrya street, Kemerovo, 650991, Russia PresentationsRepresentative office in Moscow: www.slideshare.net/oaoktk29, Serebryanicheskaya embankment, Moscow, 109028, Russia VideoInvestor calendar: www.oaoktk.ru/en/investors www.youtube.com/oaoktkruTo subscribe for news please request: vkr@oaoktk.ruEduard AlekseenkoFirst Deputy Chief Executive OfficerT: +7 (3842) 58-58-60 (Kemerovo)E-mail: aev@oaoktk.ruVasily RumyantsevHead of Moscow office, IROТ: +7 (495) 787-68-05 (Moscow)E-mail: vkr@oaoktk.ruSkype: vasily.rumyantsev 19 / 23
  • 20. APPENDIXwww.oaoktk.ru/en 20 / 23
  • 21. INCOME STATEMENT FY 2012 USD1 mln. 2012 2011 Revenue 743 814 Cost of sales (611) (660) Gross profit 133 154 Distribution expenses (22) (22) Administrative expenses (35) (34) Operating profit 75 98 Finance income 10 2 Finance costs (9) (13) Profit / (loss) before income tax 76 87 Income tax expense (17) (18) Profit / (loss) for the period 58 69 Profit / (loss) for the period margin 7.8% 8.4% EBITDA2 112 133 EBITDA margin 15.1% 16.3%Source: audited 2012 and 2011 IFRS FS in which all amounts are presented in RUB(1) Figures were converted to USD using the average exchange rates of the Central Bank of the Russian Federation for each period (2012: 31.08 RUB/USD; 2011: 29.39 RUB/USD).(2) 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 21 / 23
  • 22. BALANCE SHEET AS AT DECEMBER 31, 2012 USD1 mln. 31.12.12 31.12.11 USD1 mln. 31.12.12 31.12.11 ASSETS EQUITY AND LIABILITIES Equity Non-current assets Share capital 1 1 Property, plant and equipment 435 316 Retained earnings 225 176 Goodwill and intangible assets 1 1 Additional paid-in capital 93 88 Investments in equity accounted investees 0 1 Total attributable to equity holders of the company 319 265 Deferred tax assets 1 1 Total equity 319 265 Total non-current assets 449 325 Non-current liabilities Loans and borrowings 117 87 Current assets Deferred income 7 7 Inventories 39 40 Net assets attributable to minority participants in LLC 4 3 entities Other invetsments 0 1 Provisions 11 8 Trade and other receivables 63 49 Retirement benefit liability 2 1 Prepayments and deferred expenses 27 28 Deferred tax liabilities 16 13 Cash and cash equivalents 78 59 Total non-current liabilities 157 119 Total current assets 207 176 Current liabilities TOTAL ASSETS 657 501 Loans and borrowings 115 54 Trade and other payables 63 61 Total current liabilities 181 117 Total liabilities 338 236 TOTAL EQUITY AND LIABILITIES 657 501Source: audited 2012 and 2011 IFRS FS in which all amounts are presented in RUB(1) Figures were converted to USD using exchange rates of the Central Bank of the Russian Federation for each date (31.12.12: 30.37 RUB/USD; 31.12.11: 32.20 RUB/USD). 22 / 23
  • 23. CASH FLOW STATEMENT FY 2012 USD1 mln. 2012 2011 USD1 mln. 2012 2011 OPERATING ACTIVITIES INVESTING ACTIVITIES Profit / (loss) for the period 58 69 Loans issued and term deposits (16) (1) Adjustments for: Depreciation and amortization 37 35 Acquisition of property, plant and equipment (124) (82) Net finance income/(loss) (1) 12 Cash flow used in investing activities (127) (87) Income tax expense 18 18 Operating result before change in working capital 112 133 FINANCING ACTIVITIES Proceeds from borrowings 259 422 Change in inventories 3 (17) Repayment of borrowings (172) (347) Change in trade and other receivables (11) (17) Change in prepayments for current assets 3 (16) Cash flow from financing activities 68 65 Change in trate and other payables (9) 7 Cash flow from operations before income tax and interest 99 97 Net increase / (decrease) in cash and cash equivalents 17 49 Income taxes and penalties paid (15) (19) Interest paid (12) (7) Cash flows from operating activities 75 71Source: audited 2012 and 2011 IFRS FS in which all amounts are presented in RUB(1) Figures were converted to USD using the average exchange rates of the Central Bank of the Russian Federation for each period (2012: 31.08 RUB/USD; 2011: 29.39 RUB/USD). 23 / 23