Financial information
INTER RAO UES financial performance under IFRS consolidated financial statements
|
| 2005 1 | 2006 1 | 2007 1,2,3 | 2008 1,3 | 2009 5 |
|---|---|---|---|---|---|
| Revenue | 792 | 1 083 | 1 288 | 1 672 | 1543 |
| Operating expenses | 752 | 961 | 1 4304 | 1 526 | 1890 |
| Operating (loss)/profit | 100 | 122 | -142 | 199 | -300 |
| (Loss)/Profit before income tax | 95 | 111 | -148 | 155 | -342 |
| Total income tax benefit/(expense) | -21 | -35 | 17 | -68 | 60 |
| (Loss)/Profit for the year | 74 | 77 | -130 | 87 | -282 |
| Minority interest | -4 | -10 | -70 | 9 | 13 |
| EBITDA5 | 115 | 149 | 64 | 290 | 220 |
| EBITDA margin | 14% | 14% | 5% | 17% | 14% |
| Current liquidity ratio | 0,6 | 1,0 | 0,5 | 1,6 | 1,8 |
| Financial independence ratio | 0,3 | 0,4 | 0,5 | 0,6 | 0,5 |
1 2005 presents data under IFRS for INTER RAO UES for year ending December 31, 2006; 2006 presents data under IFRS for INTER RAO UES for year ending December 31, 2007; 2007-2009 present data under IFRS for INTER RAO UES Group for years ending December 31, 2008 and December 31, 2009, respectively.
2 The Group’s 2007 results should be seen in the light of the following: In 2007, adjustments were made to the fair value of the Group’s five major assets in accordance with the estimate made by Deloitte & Touche. Assets were revalued as of 1 January, 2007. As a result of the revaluation of fixed assets an increase in book value was reflected in an equity reserve of 105.4 million EUR while depreciation was reflected in the combined and consolidated income statement as a provision for the value loss of fixed assets amounting to 123.3 million EUR. There was a decline in prices during 2007 on the trans-Scandinavian NordPool power exchange due to considerable reserves of water resources, the reduction of quotas on carbon dioxide emissions and, consequently, lower prices for electricity supply contracts to Finland. There was also an increase in the volume of expensive imported kWh compared to the prices of the domestic market for the parent company to meet the demand for electricity in Russia during the autumn and winter of 2006-2007. And, finally, there was growth in the 2007 purchase price of electricity on the Russian market for export on the day-ahead market (pricing in this market sector is based on supply and demand).
3 During 2008, the Company was in the process of reorganization related to the completion of reforms of the Russian power industry and the appearance of guidelines for the preparation of IFRS financial statements for that year.
As the result of the reorganization, the Group received the following generating assets: JSC Sochinskaya TES, JSC North-West TPP, JSC Ivanovo Thermal-Gas Plant, JSC Kaliningradskaya TEC-2, JSC Ispytatelniy Stend Ivanovskoy GRES and JSC Eastern Energy Company.
These companies were accounted for in financial statements under IFRS as a business combination under a single control (RAO UES Rossii) using their predecessors’ method of accounting. Information on the comparable period and the opening balance as of 1 January 2007 has been adjusted as though the business combination occurred at the beginning of the earliest period displayed in the accounts. Thus, in creating the financial account, the above combined organizations including their subsidiaries and dependent companies were taken into account from January 01, 2007.
4 As the result of the revaluation of fixed assets of a range of foreign assets in 2007 regarding a number of inventory items, the accounting value of the main asset as of the revaluation date (January 1, 2007) was below its fair value as determined by an independent appraiser. This difference was attributable to expenses for the current period as part of a provision for loss of fixed assets in the profit and loss account.
5 Over the course of 2009 the composition of the Group's assets included in the consolidation perimeter under IFRS changed. The acquisition of several companies such as JSC Electroluch LLP, Kazenergoresurs and shares in OAO TGC-11 was taken into account. Also in the period under review the Group acquired a 33.3% stake Interenergo B.V., resulting in a subsidiary of Electric Networks of Armenia coming fully under the control of the RAO UES Group.
6 EBITDA is calculated by the formula: operating profit + depreciation and amortization of intangible assets + non-cash expenses. In 2007, the EBITDA calculation recovered costs under Provisions for losses of fixed assets in connection with the 2007 revaluation of the Group’s fixed assets and the reallocation of said costs to emergency expenses.
Group revenue by business segment, in millions of EUR
2009 *
The “Other” segment includes jointly a controlled entity of JSC Station Ekibastuzskay GRES-2, which is taken into account in the financial statements under the equity method.
2008** 2009**
Based on the consolidated statements of RAO UES, prepared as of 31 December 2009 (subject to the financial performance of companies that joined the Group in 2009).
** Based on the consolidated statements of RAO UES prepared as of 31 December 2008 (subject to financial performance of companies that joined the group in 2008). The share of generation in this structure reflects the share of revenue of proceeds received from the sale of electricity, including that produced at facilities which joined Russian generating assets.
Financial indicators calculated based on Russian accounting standards
|
| 20051 | 20061 | 20071 | 20082 | 20092 | 20103 |
|---|---|---|---|---|---|---|
| Revenue | 21 723 | 28 708 | 26 736 | 33 042 | 46 831 | 61 393 |
| Costs | 15 992 | 21 058 | 21 789 | 26 136 | 39 103 | 49 593 |
| Net profit (loss) | 988 | 1 739 | 635 | 1 128 | -1 248 | 3 319 |
| Current liquidity ratio | 1,18 | 1,62 | 1,04 | 2,74 | 3,82 | 2,65 |
| Financial Independence ration | 0,18 | 0,30 | 0,27 | 0,71 | 0,63 | 0,68 |
| Operating profit margin | 26% | 27% | 19% | 21% | 17% | 19% |
1 Accounting data of INTER RAO UES under Russian standards.
2 Includes the results of JSC Sochi TPP (later a branch of Sochi TES) for the 12 months of 2008 and results of the branch of the North-West CHPP and Ivanovo PGU for the period May-December 2008, and Kaliningrad TPP-2 for the period July-December 2008 and the results of foreign economic activity (functional INTER RAO UES) for the period May-December 2008.
3 Adjustments made for the reclassification of "dedicated funding" from long-term liabilities to short-term. The procedure for compiling financial statements of reorganized companies is regulated by order of the Ministry of Finance of Russia as of 20.05.2003 under ¹ 44n "On approval of guidelines for the formation of accounting for the implementation of the restructuring of organizations."
Revenue of JSC INTER RAO UES by business segments, in million of RUR
Commentary:
The data for 2005-2007 are based on the financial statements of JSC INTER RAO UES prepared in accordance with Russian accounting standards for the relevant periods.
2008 includes the financial results of JSC Sochinskaya TES (now Sochinskaya TES Branch) for 12 months of 2008, the financial results of Severo-Zapadnaya TETs Branch and Ivanovskiye PGU Branch for May-December 2008, the financial results of the Kaliningradskaya TETs Branch for July-December 2008 and financial results of the export and import operations (JSC INTER RAO UES functions) for May-December 2008.
2009-2010 include financial statements of INTER RAO UES prepared in accordance with the Russia accounting standards.
