Last checked at 14 Apr 2011 07:01
X5 RETAIL GROUP REPORTS FY 2010 RESULTS(1):
Net Sales totalled USD 11,280 mLN -an Increase of 29% year-on-year in USD Terms or 24% in RUR terms
2010 ebitda Amounted to usd 844 mlnfor an ebitda margin of 7.5%
Net Profit increased 64% year-on-year to USD 271 mln
Amsterdam, 14 April 2011- X5 Retail Group N.V., Russia's largest retailer in terms of sales (LSE ticker: "FIVE"), today announced its audited IFRS results for the year ended 31 December 2010. The Company's Annual Report for 2010 has been published on X5's website at www.x5.ru.
Q4 2010 Highlights(1) | FY 2010 Highlights | |
·; Net sales increased 35% year-on-year in RUR terms to RUR 106,670 mln or 32% in USD terms to USD 3,483 mln; ·; Gross profit totaled USD 767 mln, for a gross margin of 22.0%; ·; EBITDA amounted to USD 250 mln, for an EBITDA margin of 7.2%; ·; Net profit increased 99% year-on-year to USD 88 mln, for a net margin of 2.5%. | ·; Net sales increased 24% year-on-year in RUR terms to RUR 342,580 mln or 29% in USD terms to USD 11,280 mln; ·; Gross profit totaled USD 2,629 mln, for a gross margin of 23.3%; ·; EBITDA amounted to USD 844 mln, for an EBITDA margin of 7.5%; ·; Net profit increased 64% year-on-year to USD 271 mln, for a net margin of 2.4%. |
X5 Retail Group CEO Andrei Gusev commented:
"We met our 2010 growth outlook with a net retail sales increase of 24% in ruble terms. The Company ended the year with USD 11.3 billion in consolidated net sales, completed strategic acquisition of Kopeyka retail chain and added nearly 1,100 stores in total. We continued to invest in customer loyalty, keeping average prices for our products well below the country's official inflation rate and providing meaningful savings to Russian consumers. This approach supported strong LFL growth but put pressure on gross margin and EBITDA.
"2011 will be a critical year for execution of our organic store expansion plan and fast-tracked integration of Kopeyka. Our management team is focused on strengthening operational performance and making X5 an even stronger and more efficient business.
"Tight financial discipline remains a key priority and we will work to ensure disciplined CapEx plan execution, cost control, cash generation and working capital management while pursuing longer-term efficiency gains from IT systems transformation, supply chain logistics and in-store productivity enhancements."
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(1) Kopeyka results are consolidated from 1 December 2010.
Profit & Loss - Key Trends and Developments
P&L Highlights(1)(2)
USD mln | Q4 2010 | Q4 2009 | % changey-o-y | 12M 2010 | 12M 2009 | % changey-o-y | |
Net Sales | 3,482.8 | 2,636.2 | 32% | 11,280.5 | 8,717.4 | 29% | |
incl. Retail | 3,469.5 | 2,621.4 | 32% | 11,248.1 | 8,674.5 | 30% | |
Gross Profit | 767.0 | 627.1 | 22% | 2,628.8 | 2,107.9 | 25% | |
Gross Margin, % | 22.0% | 23.8% | 23.3% | 24.2% | |||
EBITDA | 250.4 | 227.2 | 10% | 843.6 | 736.0 | 15% | |
EBITDA Margin, % | 7.2% | 8.6% | 7.5% | 8.4% | |||
Operating Profit | 166.1 | 114.3 | 45% | 545.1 | 467.8 | 17% | |
Operating Margin, % | 4.8% | 4.3% | 4.8% | 5.4% | |||
Net Profit / (Loss) | 87.9 | 44.2 | 99% | 271.2 | 165.4 | 64% | |
Net Margin, % | 2.5% | 1.7% | 2.4% | 1.9% | |||
Net Sales & Gross Margin Performance
% changey-o-y | % change y-o-y | |||||
USD mln | Q4 2010 | Q4 2009 | 12M 2010 | 12M 2009 | ||
Net Sales | 3,482.8 | 2,636.2 | 32% | 11,280.5 | 8,717.4 | 29% |
incl. Retail | 3,469.5 | 2,621.4 | 32% | 11,248.1 | 8,674.5 | 30% |
Hypermarkets | 592.2 | 521.6 | 14% | 2,012.7 | 1,687.9 | 19% |
Supermarkets | 813.4 | 662.8 | 23% | 2,737.2 | 2,307.2 | 19% |
Soft Discounters | 1,817.6 | 1,433.8 | 27% | 6,199.8 | 4,676.3 | 33% |
Convenience stores(3) | 22.6 | - | n/a | 61.2 | - | n/a |
Online(4) | 6.9 | 3.1 | 121% | 20.3 | 3.1 | 552% |
Kopeyka(5) | 217.0 | - | n/a | 217.0 | - | n/a |
Gross Profit | 767.0 | 627.1 | 22% | 2,628.8 | 2,107.9 | 25% |
Gross Margin, % | 22.0% | 23.8% | 23.3% | 24.2% |
For 2010 X5 reported net sales of USD 11,280 million - a year-on-year increase of 29% in USD terms. In RUR terms net revenue for the year increased 24%. This comprises 7% growth in like-for-like (LFL)(6) sales with the rest coming from expansion (+15%) as well as the initial contribution from acquired Kopeyka stores (+2%).
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(1) Please note that in this and other tables of the press-release immaterial deviations in calculation of % change, subtotals and totals are explained by rounding. Kopeyka results are consolidated from 1 December 2010.
(2) X5's operational currency is the Russian Ruble (RUR), while the Company's presentation currency is the U.S. Dollar (USD). As RUR/USD rate has substantially changed in the past twelve months, comparisons of the Company's financial results either with the corresponding period a year ago (for profit & loss statement) or with the beginning of the year (for statement of financial position) have been substantially affected by these movements. For more information please see page 7 of this press-release.
(3) Consolidated from April 2010.
(4) Consolidated from October 2009.
(5) Consolidated from December 2010.
(6) Like-for-like (LFL) comparisons of retail sales between two periods are comparisons of retail sales in local currency (including VAT) generated by the relevant stores. The stores that are included in LFL comparisons are those that have operated for at least twelve full months preceding the beginning of the last month of the reporting period. Their sales are included in LFL calculation starting from the first day of the month following the month of the store opening.
2010 LFL sales growth totaled 7%. X5 recorded over 1.2 billion store visits by our customers, thanks to our "Close to the Customer" policy of reinvesting in prices to enhance customer loyalty and drive traffic growth. Prices on X5's shelves rose on average by 8.7% year-on-year in December 2010 compared to December 2009, well below Russia's official food inflation rate of 12.9% for December 2010, which provided significant savings to customers.
Full year 2010 gross margin totalled 23.3% - a 90 bp decline compared to 2009, which is attributable to continuous investment in prices. In 2010 EBITDA totalled USD 844 million, for an EBITDA margin of 7.5%.
Selling, General and Administrative Expenses (SG&A)
USD mln | Q4 2010 | Q4 2009 | % changey-o-y | FY 2010 | FY 2009 | % change y-o-y | |
Staff Costs, incl. | (293.5) | (225.5) | 30% | (1,002.1) | (761.2) | 32% | |
% of Net Sales | 8.4% | 8.6% | 8.9% | 8.7% | |||
ESOP | (15.9) | (27.7) | (43%) | (63.2) | (59.3) | 6% | |
% of Net Sales | 0.5% | 1.1% | 0.6% | 0.7% | |||
Lease Expenses | (111.0) | (74.8) | 48% | (372.1) | (264.2) | 41% | |
% of Net Sales | 3.2% | 2.8% | 3.3% | 3.0% | |||
Other Store Costs | (45.3) | (32.5) | 39% | (151.0) | (110.8) | 36% | |
% of Net Sales | 1.3% | 1.2% | 1.3% | 1.3% | |||
D&A | (84.3) | (113.0) | (25%) | (298.5) | (268.2) | 11% | |
% of Net Sales | 2.4% | 4.3% | 2.6% | 3.1% | |||
CIP & Fixed Assets Impairment | - | (48.3) | n/a | - | (48.3) | n/a | |
% of Net Sales | 0.0% | 1.8% | 0.0% | 0.6% | |||
Utilities | (62.8) | (44.6) | 41% | (214.3) | (154.6) | 39% | |
% of Net Sales | 1.8% | 1.7% | 1.9% | 1.8% | |||
Third Party Services | (42.0) | (26.4) | 60% | (99.7) | (76.5) | 30% | |
% of Net Sales | 1.2% | 1.0% | 0.9% | 0.9% | |||
Other Expenses | (6.1) | (27.7) | (78%) | (86.6) | (105.2) | (18%) | |
% of Net Sales | 0.2% | 1.0% | 0.8% | 1.2% | |||
Total SG&A | (645.0) | (544.4) | 18% | (2,224.4) | (1,740.6) | 28% | |
% of Net Sales | 18.5% | 20.7% | 19.7% | 20.0% | |||
2010 SG&A expenses (including D&A) totalled USD 2,224 million or 19.7% of sales - a decrease of 30 bp as a percentage of sales year-on-year. 2010 SG&A expenses were affected by the overall cost base inflation, including wages, leases and utilities. Additional cost pressure came from a significant step-up in store openings in the second half of the year with sales still ramping up. These effects were offset by the positive impact from a non-recurring tax provision release.
2010 staff costs increased by 20 bp as a percentage of sales, from 8.7% to 8.9%. Staff costs excluding ESOP increased to 8.3% of sales in 2010 versus 8.0% a year ago. At year-end, X5 employed about 90,000 people (including approximately 13,000 people employed by the acquired Kopeyka chain). Without Kopeyka, which was acquired in December 2010, X5 headcount stood at 75,548 employees compared to 68,457 a year ago, an increase of 10%.
This increase is attributable to the expansion of X5's store base and logistics capacity. It is notable that headcount growth was well below the 19% increase in selling space for the year (excluding Kopeyka), thanks to the initial progress of X5's in-store labour productivity project. Wages increased by approximately 10% due to salary indexation in line with Russian labour market trends.
Lease expenses as a percentage of revenue rose by 30 bp year-on-year due to higher rents as a consequence of the gradual recovery of the commercial real estate market and also a higher share of leased stores in X5's portfolio. At the end of 2010, 52% of X5's total selling space was leased compared to 43% at the end of 2009.
In 2010 electricity and heating rates rose on average by 20%, which resulted in a 10 bp year-on-year increase in utility costs as a percentage of revenue.
Non-Operating Gains and Losses
USD mln | Q4 2010 | Q4 2009 | % changey-o-y | 12M 2010 | 12M 2009 | % change y-o-y | ||||
Operating Profit | 166.1 | 114.3 | 45% | 545.1 | 467.8 | 17% | ||||
Finance Costs (Net) | (48.5) | (40.0) | 21% | (146.2) | (154.1) | (5%) | ||||
Net FX Result | (13.0) | (7.6) | 71% | (13.0) | (45.7) | (72%) | ||||
Share of Loss of Associates | (0.002) | (1.4) | (100%) | 0.4 | (4.0) | n/a | ||||
Profit before Tax | 117.3 | 65.3 | 80% | 386.3 | 264.0 | 46% | ||||
Income Tax Expense | (29.4) | (21.1) | 39% | (115.1) | (98.6) | 17% | ||||
Net Profit | 87.9 | 44.2 | 99% | 271.2 | 165.4 | 64% | ||||
Net Margin, % | 2.5% | 1.7% | 2.4% | 1.9% | ||||||
Finance Costs
Net finance costs for 2010 decreased by 5% year-on-year in USD terms and 9% in RUR terms due to lower interest rates on borrowings. The effective annualised interest rate on X5's total debt for the full year 2010 was approximately 7% compared to 8% in 2009.
Foreign Exchange (FX) Gain/(Loss)
The Company posted a USD 13 million net FX loss for 2010. This is a primarily non-cash item, resulting from revaluation of the Company's long-term USD-denominated debt. In the second half of 2010 X5 significantly reduced its FX exposure by bringing down USD-denominated debt to USD 391 million from USD 1.1 billion a year ago.
Income Tax
In 2010 X5's effective tax rate amounted to 30% versus 37% a year ago. X5's effective tax rate is higher than the statutory tax rate for three main reasons: inventory shrinkage is not tax deductible in Russia, ESOP cost is only partially tax deductible and FX loss is only partially tax deductible. The year-on-year decrease in FX loss reported in 2010, among other things, had a positive impact on the effective tax rate for the year.
Consolidated Cash Flow - Key Trends and Developments
USD mln | Q4 2010 | Q4 2009 | % changey-o-y | 12M 2010 | 12M 2009 | % changey-o-y |
Net Cash Flows from Operating Activities | 444.3 | 543.2 | (18%) | 378.1 | 733.7 | (48%) |
Net Cash from Operating Activities before Changes in Working Capital | 240.7 | 263.6 | (9%) | 900.2 | 835.5 | 8% |
Change in Working Capital | 284.9 | 348.9 | n/a | (250.9) | 166.0 | n/a |
Net Interest and Income Tax Paid | (81.4) | (69.3) | 17% | (271.2) | (267.9) | 1% |
Net Cash Used in Investing Activities | (1,296.5) | (284.7) | 355% | (1,548.2) | (433.8) | 257% |
incl. Kopeyka acquisition | (1,090.1) | - | n/a | (1,090.1) | - | n/a |
Net Cash Generated from/(Used in) Financing Activities | 1,067.1 | (146.7) | n/a | 1,066.0 | (194.3) | n/a |
Effect of Exchange Rate Changes on Cash & Cash Equivalents | (35.8) | 23.1 | n/a | (36.9) | 29.3 | n/a |
Net Increase/(Decrease) in Cash & Cash Equivalents | 179.0 | 134.9 | 33% | (140.9) | 134.8 | n/a |
Full year 2010 net cash generated from operating activities totaled USD 378 million versus USD 734 million a year ago. This is attributable to the changes in working capital primarily as a result of the implementation of the new Retail Law which came into effect on 1 August 2010. The new law, among other things, regulates relationships between suppliers and retailers, and its implementation negatively affected retailers' payment days. We did not react quickly enough to address the complexity of the implementation process, and the effect on working capital was greater than initially anticipated.
Increase in inventories is another major factor that affected working capital. This increase is explained by key two reasons: (i) stocking up for extensive new store openings at the end of the year, and (ii) continuous efforts to improve service levels, which at the end of 2010 reached 92% for centralised deliveries and 85% for direct purchasing.
Net cash used in investing activities totaled USD 1,548 million in 2010, which includes USD 1,090 million paid for the Kopeyka acquisition. Organic CapEx totalled USD 458 million or RUR 14 billion, which is substantially below the targeted limit of RUR 18 billion. At the same time, the Company exceeded its store expansion plan and continued to invest in infrastructure projects, including logistics and IT. In 2010, net of Kopeyka acquisition, X5 opened 437 new stores, added 97 thousand sq.m. of logistics space and fully launched SAP for Retail and SAP for HR.
Net cash from financing activities in 2010 amounted to USD 1,066 million as the Company raised funds to finance Kopeyka acquisition.
Liquidity Update
USD million | 31-Dec-10 | % in total | 30-Sep-10 | % in total | 31-Dec-09 | % in total | % changey-o-y |
Total Debt | 3,684.8 | 1,965.3 | 1,944.0 | 90% | |||
Short-Term Debt | 508.0 | 14% | 663.0 | 34% | 1,656.6 | 85% | (69%) |
Long-Term Debt | 3,176.8 | 86% | 1,302.3 | 66% | 287.4 | 15% | 1,005% |
Net Debt | 3,414.0 | 1,873.5 | 1,532.3 | 123% | |||
Denominated in USD | 382.1 | 11% | 380.3 | 20% | 1,162.8 | 76% | (67%) |
Denominated in RUR | 3,031.9 | 89% | 1,493.2 | 80% | 369.5 | 24% | 720% |
FX, EoP | 30.48 | 30.40 | 30.24 | ||||
Net Debt/EBITDA | 3.69x(1) | 2.28x | 2.08x |
X5's debt rose from USD 1,944 million at 31 December 2009 to USD 3,685 million at 31 December 2010. The year-on-year increase of USD 1,741 million is attributable to the acquisition of Kopeyka, which X5 financed with debt in addition to absorbing Kopeyka's borrowings in the amount of USD 599 million (net debt of Kopeyka stood at USD 534 million). Debt is reported in USD in X5's statement of financial position but nearly 90% of debt at 31 December 2010 was denominated in RUR as a result of the Company's efforts to reduce FX exposure. Dollar debt is currently limited to USD 391 million or about 11% of the total debt portfolio.
X5's short-term debt decreased by 69%, from USD 1,657 million as at 31 December 2009 to USD 508 million as at 31 December 2010, mostly due to refinancing of the USD 1.1 billion syndicated loan. This was replaced in the third quarter 2010 mainly with a new USD 800 million three-year club facility denominated half in RUR and half in USD. The remainder was refinanced under the existing credit lines. In addition, X5 secured financing for the Kopeyka acquisition through a combination of long-term facilities from Sberbank. Thus, X5 successfully extended its debt maturities with mainly long-term ruble financing (the majority of X5's borrowings mature in 2013-2015), and reduced FX exposure by nearly two-thirds. In addition, the Company managed to shift all of its financing to an unsecured basis.
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(1) Based on 2010 pro-forma EBITDA of USD 926 million, i.e. including Kopeyka from 1 January 2010.
Effect of RUR/USD Exchange Rate Movements on Presentation of X5's Results and Their Dynamics
X5's operational currency is the Russian Ruble (RUR), while the Company's presentation currency is the U.S. Dollar (USD). As RUR/USD rate has substantially fluctuated in the past twelve months, comparisons of the Company's financial results either with the corresponding period a year ago (for income statement) or with the beginning of the year (for statement of financial position) have been substantially affected by these movements.
·; Comparisons of profit & loss figures with respective periods last year reflect a positive translational effect for full year 2010 and negative translational effect for Q4 2010 from RUR/USD rate movements, resulting in a difference between year-on-year change in RUR and the respective change in USD of approximately 4% for FY 2010 and 4% for Q4 2010. For reference, to translate its profit & loss figures from RUR to USD for reporting purposes, the Company applied RUR/USD rate of 30.37 for 12M 2010 (average for the period) and RUR/USD rate of 31.72 for 12M 2009 (average for the period). Reported USD denominated profit & loss figures for Q4 2010 and 2009 represent difference between reported full year and nine months figures for respective year.
·; Comparisons of figures in the statement of financial position as at 31 December 2010 to the figures in the statement of financial position as at 31 December 2009 reflect a negative translational effect from RUR/USD rate movement, resulting in a difference between change in RUR and the respective change in USD of approximately 0.5%. For reference, to translate its figures in the statement of financial position from RUR to USD for reporting purposes, the Company applied RUR/USD rate of 30.48 as at 31 December 2010 and RUR/USD rate of 30.24 as at 31 December 2009.
Appendices
I. | Consolidated Income Statement for the Quarter and Year Ended 31 December 2010 |
II. | Consolidated Statement of Comprehensive Income for the Quarter and Year Ended 31 December 2010 |
III. | ConsolidatedStatement of Financial Position at 31 December 2010 |
IV. | Consolidated Statement of Cash Flows for the Quarter and Year Ended31 December 2010 |
V. | Financial Calendar for 2011 |
Note to Editors:
X5 Retail Group N.V. is Russia's largest retailer in terms of sales. The Company was created as a result of a merger between Pyaterochka (soft discounter chain) and Perekrestok (supermarket chain) on 18 May 2006. In June 2008, X5 acquired Karusel hypermarket chain and substantially strengthened its position in hypermarket format.
As at 31 March 2011, X5 had 2,545 Company-managed stores located in Moscow, St. Petersburg and other regions of European Russia, Urals and Ukraine, including 1,472 soft discount stores, 303 supermarkets, 71 hypermarkets, 47 convenience stores and 652 acquired Kopeyka stores (including 45 stores already rebranded as Pyaterochka).
As at 31 March 2011, X5's franchisees operated 690 stores across Russia.
For the full year 2010, net sales totaled USD 11,280 mln, EBITDA reached USD 844 mln, and net profit amounted to USD 271 mln. For the first quarter 2011, net retail sales totaled USD 3,826 mln.
X5 Shareholder structure is as follows: Alfa Group - 47.9%, founders of Pyaterochka - 19.9%, X5 Management - 1.8%, treasury shares - 0.1%, free float - 30.3%.
Forward looking statements:
This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the fact that they do not only relate to historical or current events. Forward-looking statements often use words such as" anticipate", "target", "expect", "estimate", "intend", "expected", "plan", "goal" believe", or other words of similar meaning.
By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, a number of which are beyond X5 Retail Group N.V.'s control. As a result, actual future results may differ materially from the plans, goals and expectations set out in these forward-looking statements.
Any forward-looking statements made by or on behalf of X5 Retail Group N.V. speak only as at the date of this announcement. Save as required by any applicable laws or regulations, X5 Retail Group N.V. undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this document that may occur due to any change in its expectations or to reflect events or circumstances after the date of this document.
For further details please contact
| |
Anna Kareva IR Director Tel.: +7 (495) 792-3511 e-mail: anna.kareva@X5.ru
| Svetlana Vitkovskaya Head of PR Department Tel.: +7 (495) 662-8888, ext. 31 140 e-mail: svetlana.vitkovskaya@X5.ru |
Appendix I: CONSOLIDATED INCOME STATEMENT
FOR THE QUARTER AND YEAR ENDED 31 DECEMBER 2010(1)
(expressed in thousands of US Dollars)
Three months ended | Year ended | |||
31-Dec-10 | 31-Dec-09 | 31-Dec-10 | 31-Dec-09 | |
Revenue | 3,482,808 | 2,636,160 | 11,280,492 | 8,717,399 |
Cost of sales | (2,715,855) | (2,009,087) | (8,651,734) | (6,609,522) |
Gross profit | 766,953 | 627,073 | 2,628,758 | 2,107,877 |
Selling, general and administrative expenses | (645,026) | (544,418) | (2,224,355) | (1,740,604) |
Lease/sublease and other income | 44,204 | 31,626 | 140,666 | 100,496 |
Operating profit | 166,131 | 114,281 | 545,069 | 467,769 |
Net finance costs | (48,513) | (40,007) | (146,213) | (154,147) |
Share of (loss)/income of associates | (2) | (1,395) | 438 | (3,964) |
Net foreign exchange result | (283) | (7,589) | (12,982) | (45,692) |
Profit before tax | 117,333 | 65,290 | 386,312 | 263,966 |
Income tax expense | (29,425) | (21,114) | (115,066) | (98,615) |
Profit for the period | 87,908 | 44,176 | 271,246 | 165,351 |
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(1) Kopeyka results are consolidated from 1 December 2010.
Appendix II: CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE QUARTER AND YEAR ENDED 31 DECEMBER 2010(1)
(expressed in thousands of US Dollars)
Three months ended | The year ended | |||
31-Dec-10 | 31-Dec-09 | 31-Dec-10 | 31-Dec-09 | |
Profit for the period | 87,908 | 44,176 | 271,246 | 165,351 |
Other comprehensive (loss)/income | ||||
Exchange differences on translation from functional to presentation currency | (4,371) | (9,700) | (14,692) | (39,392) |
Changes in fair value of financial instruments | 1,771 | 5,050 | 10,108 | 8,072 |
Other comprehensive loss | (2,600) | (4,650) | (4,584) | (31,320) |
Total comprehensive income for the period | 85,308 | 39,526 | 266,662 | 134,031 |
Total comprehensive income for the period attributable to: | ||||
Equity holders of the parent | 85,308 | 39,526 | 266,662 | 134,031 |
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(1) Kopeyka results are consolidated from 1 December 2010.
Appendix III: CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAT 31 DECEMBER 2010 (expressed in thousands of US Dollars)
31 December 2010 | 31 December 2009 | |
ASSETS | ||
Non-current assets | ||
Property, plant and equipment | 3,602,412 | 2,990,086 |
Investment property | 145,643 | 133,425 |
Goodwill | 1,999,269 | 777,961 |
Intangible assets | 718,854 | 496,111 |
Prepaid leases | 86,419 | 84,805 |
Investment in associate | - | 5,609 |
Other non-current assets | 7,457 | 1,304 |
Deferred tax assets | 131,312 | 146,359 |
6,691,366 | 4,635,660 | |
Current assets | ||
Inventories of goods for resale | 1,015,742 | 612,093 |
Indemnification asset | 43,737 | - |
Loans originated | 1,314 | 2,848 |
Current portion of non-current prepaid lease | 13,443 | 13,705 |
Trade and other accounts receivable | 381,849 | 311,657 |
Current income tax receivable | 76,149 | 18,497 |
VAT and other taxes recoverable | 262,828 | 174,762 |
Cash and cash equivalents | 270,762 | 411,681 |
2,065,824 | 1,545,243 | |
Total assets | 8,757,190 | 6,180,903 |
EQUITY AND LIABILITIES | ||
Equity attributable to equity holders of the parent | ||
Share capital | 93,712 | 93,712 |
Share premium | 2,049,144 | 2,049,144 |
Cumulative translation reserve | (574,268) | (559,576) |
Retained earnings | 470,980 | 199,292 |
Hedging reserve | - | (10,108) |
Share based payment reserves | 5,965 | - |
2,045,533 | 1,772,464 | |
Non-controlling interest | 1,501 | - |
Total equity | 2,047,034 | 1,772,464 |
Non-current liabilities | ||
Long-term borrowings | 3,176,792 | 287,378 |
Long-term finance lease payable | 2,737 | 4,586 |
Deferred tax liabilities | 261,374 | 207,985 |
Long-term deferred revenue | 135 | 1,839 |
Share-based payments liability | 13,157 | 25,986 |
Other non-current liabilities | 1,339 | - |
3,455,534 | 527,774 | |
Current liabilities | ||
Trade accounts payable | 1,851,454 | 1,556,325 |
Short-term borrowings | 508,004 | 1,656,622 |
Share-based payments liability | 76,141 | 59,559 |
Derivative financial liabilities | - | 10,108 |
Short-term finance lease payables | 1,680 | 1,950 |
Interest accrued | 16,678 | 8,863 |
Short-term deferred revenue | 13,165 | 18,979 |
Current income tax payable | 47,249 | 33,790 |
Provisions and other liabilities | 740,251 | 534,469 |
3,254,622 | 3,880,665 | |
Total liabilities | 6,710,156 | 4,408,439 |
Total equity and liabilities | 8,757,190 | 6,180,903 |
Appendix IV: CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE QUARTER AND YEAR ENDED 31 DECEMBER 2010
(expressed in thousands of US Dollars)
Q4 2010 | Q4 2009 | FY 2010 | FY 2009 | |
Profit before tax | 117,333 | 65,288 | 386,312 | 263,966 |
Adjustments for: | ||||
Depreciation, amortisation and impairment | 84,275 | 112,952 | 298,523 | 268,243 |
Loss on disposal of property, plant and equipment | 13,272 | 1,787 | 16,180 | 3,113 |
Finance costs, net | 48,513 | 40,008 | 146,213 | 154,147 |
Impairment of trade and other accounts receivable | 6,221 | 3,445 | 11,447 | 12,955 |
Share-based options expense | 15,861 | 27,748 | 63,166 | 59,316 |
Amortisation of deferred expenses | 3,211 | 3,005 | 14,652 | 10,226 |
Net foreign exchange loss | 283 | 7,589 | 12,982 | 45,692 |
Loss/(Income) from associate | 2 | 1,396 | (438) | 3,964 |
Other non-cash items | (48,250) | 389 | (48,846) | 13,877 |
Net cash from operating activities before changes in working capital | 240,721 | 263,606 | 900,191 | 835,499 |
Increase in trade and other accounts receivable | (70,547) | (18,505) | (167,413) | (91,463) |
Increase in inventories of goods for resale | (282,269) | (106,780) | (277,351) | (128,095) |
Increase in trade payable | 574,254 | 458,997 | 177,695 | 343,752 |
Increase in other accounts payable | 63,486 | 15,209 | 16,133 | 41,844 |
Net cash generated from operations | 525,645 | 612,527 | 649,255 | 1,001,537 |
Interest paid | (56,980) | (55,745) | (132,110) | (156,914) |
Interest received | 778 | 565 | 2,028 | 4,449 |
Income tax paid | (25,157) | (14,142) | (141,094) | (115,390) |
Net cash flows from operating activities | 444,286 | 543,205 | 378,079 | 733,682 |
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | (169,596) | (68,478) | (366,160) | (175,317) |
Purchase of investment property | - | (8,574) | - | (8,574) |
Non-current prepaid lease | (7,024) | (2,780) | (17,324) | (4,555) |
Acquisition of subsidiaries | (1,112,267) | (201,817) | (1,140,629) | (229,367) |
Proceeds from sale of property, plant and equipment | 3,765 | 1,375 | 5,319 | 3,290 |
Purchase of intangible assets | (11,395) | (4,462) | (29,387) | (19,321) |
Net cash used in investing activities | (1,296,517) | (284,737) | (1,548,181) | (433,844) |
Cash flows from financing activities: | ||||
Proceeds from short-term loans | (10,064) | (42,018) | 386,227 | 259,934 |
Repayment of short-term loans | (263,314) | (108,810) | (921,994) | (656,357) |
Proceeds from long-term loans | 1,341,169 | 5,807 | 1,609,419 | 248,733 |
Repayment of long-term loans | 15 | (936) | (3,899) | (40,074) |
Acquisition of derivative financial assets | - | (59) | - | (2,512) |
Principal payments on finance lease obligations | (752) | (690) | (3,717) | (4,018) |
Net cash generated from/(used in) financing activities | 1,067,054 | (146,706) | 1,066,036 | (194,294) |
Effect of exchange rate changes on cash and cash equivalents | (35,815) | 23,128 | (36,853) | 29,300 |
Net increase/(decrease) in cash and cash equivalents | 179,008 | 134,890 | (140,919) | 134,844 |
Movements in cash and cash equivalents | ||||
Cash and cash equivalents at the beginning of the period | 91,754 | 276,791 | 411,681 | 276,837 |
Net increase/(decrease) in cash and cash equivalents | 179,008 | 134,890 | (140,919) | 134,844 |
Cash and cash equivalents at the end of the period | 270,762 | 411,681 | 270,762 | 411,681 |
(1) For informational purposes only.
Appendix V: Financial Calendar for 2011
Date | Event |
26 May 2011, TBC | Q1 2011 Financial Results Reviewed by Auditors |
8 July 2011, TBC | Q2 & H1 2011 Trading Update |
25 August 2011, TBC | Q2 & H1 2011 Financial Results Reviewed by Auditors |
10 October 2011, TBC | Q3 & 9M 2011 Trading Update |
28 November 2011, TBC | Q3 & 9M 2011 Financial Results Reviewed by Auditors |