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SSAA - AFK Sistema PAO News Story

$5.34 0.0  0.0%

Last Trade - 08/09/20

Market Cap £2.06bn
Enterprise Value £9.00bn
Revenue £6.08bn
Position in Universe 266th / 1806

Sistema PJSFC - SISTEMA ANNOUNCES FINANCIAL RESULTS FOR 2Q 2017 - Part 2

Wed 30th August, 2017 8:03am
- Part 2: For the preceding part double click  ID:nRSd2679Pa 

                                        2017                         2016      
                                                                                                                           
 CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                     
                                                                                                                           
 Payments for purchases of property, plant and equipment                            (29,418)                     (37,414)  
 Proceeds from sale of property, plant and equipment                                2,854                        1,365     
 Payments for purchases of intangible assets                                        (7,542)                      (17,278)  
 Payments for businesses, net of cash acquired                                      (2,391)                      (5,432)   
 Payments for investments in associates and joint ventures                          (3,167)                      (1,980)   
 Proceeds from sale of investments in affiliated companies                          3,846                        -         
 Payments for purchases of financial assets, long-term                              (14,578)                     (11,763)  
 Proceeds from sale of  financial assets, long-term                                 6,295                        3,971     
 Payments for financial assets, short-term                                          (34,007)                     (11,681)  
 Proceeds from sale of financial assets, short-term                                 9,796                        53,588    
 Interest received                                                                  3,801                        5,808     
 Other                                                                              -                            1,504     
                                                                                                                           
 NET CASH USED IN INVESTING ACTIVITIES                                              (64,511)                     (19,312)  
                                                                                                                           
 CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                     
                                                                                                                           
 Proceeds from borrowings                                                           140,499                      31,857    
 Principal payments on borrowings                                                   (88,402)                     (80,220)  
 Debt issuance costs                                                                (29)                         -         
 Acquisition of non-controlling interests in existing subsidiaries                  (4,819)                      (2,078)   
 Payments to purchase treasury stock                                                (1,601)                      (2,082)   
 Proceeds from capital transactions with non-controlling interests                  13,544                       8,789     
 Cash outflow under credit guarantee agreement related to foreign-currency hedge    (901)                        (1,034)   
                                                                                                                           
 NET CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES                                58,291                       (44,768)  
                                                                                                                           
 Effect of foreign currency translation on cash and cash equivalents                (1,623)                      (8,695)   
                                                                                                                           
 Net increase/(decrease) in cash and cash equivalents                               37,753                       (33,315)  
                                                                                                                           
                                                                                                                           
 Cash and cash equivalents at the beginning of the period                           60,190                       122,775   
                                                                                                                           
 Cash and cash equivalents at the end of the period                                 97,943                       89,460    
                                                                                                                           
 
 
SISTEMA PJSFC AND SUBSIDIARIES 
 
UNAUDITED SEGMENTAL BREAKDOWN FOR THE SIX MONTHS ENDED JUNE 30, 2017 AND 2016 
 
(Amounts in millions of Russian roubles) 
 
                                 External revenues    Inter-segment revenue    Segment operating income  
                                 6m2017               6m2016                   6m2017                      6m2016    6m2017      6m2016    
                                                                                                                                           
 MTS                             210,543              211,552                  978                         367       44,887      41,314    
 Detsky mir                      42,096               33,735                   -                           -         2,113       1,640     
 RTI                             16,855               20,117                   17                          22        (985)       481       
 MTS Bank                        7,953                9,262                    728                         135       319         (1,243)   
 Corporate                       840                  920                      446                         511       (3,401)     (4,773)   
 Total reportable segments       278,287              275,586                  2,169                       1,035     42,933      37,419    
 Other                           52,505               57,119                   745                         679       784         4,325     
                                                                                                                                           
                                 330,792              332,705                  2,914                       1,714     43,717      41,744    
 Inter-segment eliminations                                                                                          4           97        
                                                                                                                                           
 Operating income                                                                                                    43,721      41,841    
 Finance income                                                                                                      3,790       5,790     
 Finance costs                                                                                                       (26,128)    (31,638)  
 Foreign currency exchange gain                                                                                      735         6,512     
                                                                                                                                           
 Profit before tax                                                                                                   22,118      22,505    
 
 
                                 Depreciation and amortisation    
 Capital expenditures  
                       6m2017    6m2016                           6m2017    6m2016    
                                                                                      
 MTS                   26,428    42,270                           40,245    39,653    
 Detsky mir            563       577                              874       771       
 RTI                   946       1,506                            1,233     1,183     
 MTS Bank              183       73                               275       380       
 Corporate             397       -                                303       282       
 Other                 8,443     10,266                           5,442     4,738     
                       36,960    54,692                           48,372    47,007    
 
 
Attachment A 
 
Operating Income Before Depreciation and Amortisation (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 profit/(loss) attributable to Sistema
shareholders. The Company uses adjusted OIBDA, adjusted operating income and
adjusted profit/(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 profit and loss as follows: 
 
 RUB millions                                          2Q 2017  2Q  2016  6M 2017  6M 2016  
 Operating income                                      23,452   22,125    43,721   41,841   
 Impairment of inventory                               1,601    -         1,601    -        
 Gain on acquisitions at Agroholding Steppe            -        -1,175    -        -1,175   
 Gain on investments at Medsi                          -785     -         -785     -        
 Impairment of goodwill (subsidiary of Segezha Group)  -        -         -        241      
 Accruals related to LTI program at Detsky Mir         59       -         341      -        
 Adjusted operating income                             24,330   20,950    44,881   40,907   
 Depreciation and amortisation                         24,243   23,963    48,372   47,007   
 Adjusted OIBDA                                        48,573   44,913    93,253   87,914   
 
 
Adjusted profit / (loss) attributable to Sistema shareholders can be
reconciled to our consolidated statements of profit and loss as follows: 
 
 RUB millions                                          2Q 2017  2Q  2016  6M 2017  6M 2016  
 (Loss)/profit attributable to Sistema                 -1,321   1,072     258      3,066    
 Impairment of inventory                               1,283    -         1,283    -        
 Gain on acquisitions at Agroholding Steppe            -        -1,175    -        -1,175   
 Gain on investments at Medsi                          -785     -         -785     -        
 Impairment of goodwill (subsidiary of Segezha Group)  -        -         -        241      
 Accruals related to LTI program at Detsky Mir         24       -         166      -        
 Adjusted (loss)/profit attributable to Sistema        -799     -103      922      2,132    
 
 
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                               2Q 2017   2Q  2016  
 Indebtedness of the Corporate segment      120,376   106,477   
 Cash and cash equivalents                  (30,098)  (17,874)  
 Liquid deposits and financial instruments  (6,094)   (20,905)  
 Net debt at the Corporate Centre level     84,184    67,697    
 
 
 1  See Attachment A for definitions and reconciliation of 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 results of MTS Bank 
 
 6  Results have been adjusted for additional accruals under the LTI program
(including related tax effects). 
 
 7  Includes results of JV RZ Agro, in which Agroholding Steppe owns 50% 
 
 8  Excluding results of East-West United Bank (EWUB) and the result of
divestment of 47% in EWUB 
 
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