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SSAA - AFK Sistema PAO News Story

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Last Trade - 08/09/20

Market Cap £1.99bn
Enterprise Value £8.90bn
Revenue £6.06bn
Position in Universe 262nd / 1809

JSFC Sistema - Sistema announces 4Q and FY2015 financial results - Part 2

Thu 7th April, 2016 8:01am
- Part 2: For the preceding part double click  ID:nRSG4638Ua 

                                                                                                               
 MTS                 99,477          126,040                          82,473                  75,021    5,216     (1,501)  
 RTI                 4,768           4,954                            2,482                   3,273     431       2,778    
 MTS Bank            1,145           2,196                            689                     681       19,207    10,006   
 SSTL                -               1,538                            832                     2,320     -         11,160   
 Corporate           2,476           1,080                            523                     548       1,273     8,421    
 Other               41,973          32,118                           7,916                   5,558     4,160     1,785    
                     149,839         167,926                          94,915                  87,401    30,287    32,649   
 
 
Attachment A 
 
Operating Income Before Depreciation and Amortization (OIBDA) and OIBDA
margin. OIBDA represents operating income before depreciation and
amortisation. OIBDA margin is defined as OIBDA as a percentage of our net
revenues. Our OIBDA may not be similar to OIBDA measures of other companies;
is not a measurement under accounting principles generally accepted under IFRS
and should be considered in addition to, but not as a substitute for, the
information contained in our consolidated statement of profit and loss. We
believe that OIBDA provides useful information to investors because it is an
indicator of the strength and performance of our ongoing business operations,
including our ability to fund discretionary spending such as capital
expenditures, acquisitions of businesses and other investments and our ability
to incur and service debt. While depreciation and amortization are considered
operating costs under IFRS, these expenses primarily represent the non-cash
current period allocation of costs associated with long-lived assets acquired
or constructed in prior periods. OIBDA is commonly used as one of the bases
for investors, analysts and credit rating agencies to evaluate and compare the
periodic and future operating performance and value of companies. 
 
Adjusted OIBDA, operating income and net income/(loss) attributable to Sistema
shareholders. The Company uses adjusted OIBDA, adjusted operating income and
adjusted net income/(loss) attributable to Sistema shareholders to evaluate
financial performance of the Group. These represent underlying financial
measures adjusted for a number of one-off gains and losses. We believe that
adjusted measures provide investors with additional useful information to
measure our underlying financial performance, particularly from period to
period, because these measures are exclusive of certain one-off gains and
losses. 
 
Adjusted operating income and adjusted OIBDA can be reconciled to our
consolidated statements of operations as follows: 
 
 RUB millions                                                  2015     2014     4Q 2015  4Q 2014   
 Operating income                                              69,048   60,329   1,216    (17,503)  
 Impairment of goodwill (MTS Armenia)                          3,516    -        3,516    -         
 Impairment of goodwill (Detsky Mir)                           363      -        363      -         
 Impairment of long-lived assets (SSTL)                        -        11,160   -        11,160    
 Impairment of long-lived assets (RTI)                         -        2,600    -        2,600     
 Impairment of other long-lived assets (SG-trading and other)  3,609    -        3,609    -         
 Impairment of cash and deposits in Delta Bank (MTS)           1,698    5,138    -        5,138     
 Impairment of other financial assets                          1,273    7,930    1,273    7,930     
 Other non-recurring expenses                                  2,016    -        2,016    -         
 Gain on acquisition of Segezha Group                          -        (2,488)  -        -         
 Gain from re-entrance into Uzbekistan (MTS)                   -        (6,734)  -        (3,131)   
 Adjusted operating income                                     81,523   77,935   11,993   6,194     
 Depreciation and amortisation                                 94,915   87,400   23,619   23,579    
 Adjusted OIBDA                                                176,438  165,335  35,612   29,773    
 
 
Adjusted net loss attributable to Sistema shareholders can be reconciled to
our consolidated statements of profit and loss as follows: 
 
 RUB millions                                                                        2015      2014       4Q 2015   4Q 2014    
 Net income/(loss) attributable to Sistema                                           33,592    (156,237)  (13,580)  (196,721)  
 Impairment of goodwill (MTS Armenia)                                                1,880     -          1,880     -          
 Impairment of goodwill (Detsky Mir)                                                 363       -          363       -          
 Impairment of long-lived assets (SSTL)                                              -         8,258      -         8,258      
 Impairment of long-lived assets (RTI)                                               -         2,145      -         2,145      
 Impairment of other long-lived assets (SG-trading and other)                        3,609     -          3,609     -          
 Impairment of cash and deposits in Delta Bank (MTS)                                 908       2,747      -         2,747      
 Impairment of other financial assets                                                1,273     7,932      1,273     7,932      
 Other non-recurring expenses                                                        2,016     -          2,016     -          
 Gain on acquisition of Segezha Group                                                -         (2,488)    -         -          
 Gain from re-entrance into Uzbekistan (MTS)                                         -         (3,601)    -         (3,601)    
 Gain on settlement agreements with Ural-Invest                                      (43,897)  -          -                    
 Reversal of impairment on deposits (related to deposits received from Ural-Invest)  (5,136)   -          (5,136)   -          
 Loss on Bashneft disposal (net of Bashneft's net income attributable to Sistema)    -         122,121    -         156,860    
 Adjusted loss attributable to Sistema                                               (5,354)   (19,123)   (9,537)   (20,380)   
 
 
Net debt at the Corporate Centre level. We define net debt as indebtedness
less cash, cash equivalents and other liquid deposits and financial
instruments. The indebtedness is defined as long-term debt, including its
current portion, and short-term debt. We believe that the presentation of net
debt at the Corporate Centre level provides useful information to investors
because we use this measure in our management of the Corporate Centre's
liquidity, financial flexibility, capital structure and leverage. The IFRS
financial measure most directly comparable to net debt at the Corporate Centre
level is the indebtedness of our Corporate segment as reported in our segment
disclosures. Net debt at the Corporate Centre level can be reconciled to the
indebtedness of our Corporate segment as follows: 
 
 RUB millions                               4Q 2015   4Q 2014   
 Indebtedness of the Corporate segment      116,806   68,807    
 Cash and cash equivalents                  (28,716)  (18,424)  
 Liquid deposits and financial instruments  (21,864)  (10,389)  
 Net debt at the Corporate Centre level     66,226    39,994    
 
 
 1  See Attachment A for definitions and reconciliation of adjusted OIBDA to
IFRS financial measures. 
 
 2  Including highly liquid deposits and liquid financial investments, based
on management accounts. See Attachment A for reconciliation to IFRS financial
measures. 
 
 3  Including highly liquid deposits and liquid financial investments, based
on management accounts. See Attachment A for reconciliation to IFRS financial
measures. 
 
 4 Here and from hereon, revenues are presented on an aggregated basis,
excluding revenues from intra-segment (between entities in the same segment)
transactions, but before inter-segment (between entities in different
segments) eliminations, unless accompanied by the word "consolidated". Amounts
attributable to individual companies, where appropriate, are shown prior to
both intra-segment and inter-segment eliminations and may differ from
respective standalone results due to certain reclassifications and
adjustments. 
 
 5  Including share in net losses of MTS Bank 
 
 6  Sistema acquired Segezha Group on September 30, 2014, and has consolidated
it starting from the fourth quarter of 2014. 
 
 7  On a stand-alone basis 
 
 8 Based on management accounts. 
 
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