REG - Evraz Plc - Annual Financial Report <Origin Href="QuoteRef">EVRE.L</Origin> - Part 2
01/03/2017 07:07
- Part 2: For the preceding part double click ID:nRSA1395Ya
loss of customers and competitive advantage, and damage to the Group's reputation.
Business interruption
Prolonged outages or production delays, especially in coal mining, could have
a material adverse effect on the Group's operating performance, production,
financial condition and future prospects.In addition, long term business
interruption may result in a loss of customers and competitive advantage, and
damage to the Group's reputation.
EVRAZ monitors these risks and actively pursues strategies to mitigate them on
an ongoing basis.
DIRECTOR'S RESPONSIBILITY STATEMENT
Each of the directors whose names and functions are listed on pages 100-101 of
the Annual report confirm that to the best of their knowledge:
- the consolidated financial statements of EVRAZ plc, prepared in
accordance with International Financial Reporting Standards as adopted by the
European Union, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company and the undertakings
included in the consolidation taken as a whole (the 'Group');
- the management report required by DTR 4.1.8R includes a fair review of
the development and performance of the business and the position of the
Company and the Group, together with a description of the principal risks and
uncertainties that they face.
By order of the Board
Alexander Frolov
Chief Executive Officer
EVRAZ plc
28 February 2017
EVRAZ plc
Consolidated Statement of Operations
(in millions of US dollars, except for per share information)
Year ended 31 December
Notes 2016 2015* 2014*
Continuing operations
Revenue
Sale of goods 3 $ 7,477 $ 8,552 $ 12,745
Rendering of services 3 236 215 316
7,713 8,767 13,061
Cost of revenue 7 (5,521) (6,583) (9,734)
Gross profit 2,192 2,184 3,327
Selling and distribution costs 7 (623) (728) (930)
General and administrative expenses 7 (469) (553) (822)
Social and social infrastructure maintenance expenses (23) (28) (30)
Loss on disposal of property, plant and equipment (22) (41) (48)
Impairment of assets 6 (465) (441) (540)
Foreign exchange gains/(losses), net (48) (367) (1,005)
Other operating income 22 28 35
Other operating expenses 7 (101) (78) (88)
Profit/(loss) from operations 463 (24) (101)
Interest income 7 10 9 17
Interest expense 7 (481) (475) (563)
Share of profits/(losses) of joint ventures and associates 11 (23) (20) 10
Gain/(loss) on financial assets and liabilities, net 7 (9) (48) (583)
Gain/(loss) on disposal groups classified as held for sale, net 12 - 21 136
Loss of control over a subsidiary 4 - (167) -
Other non-operating gains/(losses), net 7 (52) (3) -
Loss before tax (92) (707) (1,084)
Income tax benefit/(expense) 8 (96) (12) (194)
Net loss $ (188) $ (719) $ (1,278)
Attributable to:
Equity holders of the parent entity $ (215) $ (644) $ (1,175)
Non-controlling interests 27 (75) (103)
$ (188) $ (719) $ (1,278)
Earnings/(losses) per share:
for profit/(loss) attributable to equity holders of the parent entity, basic and diluted, US dollars 20 $ (0.15) $ (0.45) $ (0.78)
* The amounts shown here do not correspond to the previously issued
financial statements and reflect reclassifications described in Note 2.
EVRAZ plc
Consolidated Statement of Comprehensive Income
(in millions of US dollars)
Year ended 31 December
Notes 2016 2015 2014
Net loss $ (188) $ (719) $ (1,278)
Other comprehensive income/(loss)
Othercomprehensiveincometobereclassifiedtoprofitorlossin subsequentperiods
Exchange differences on translation of foreign operations into presentation currency 543 (820) (1,918)
Exchange differences recycled to profit or loss 4,12 - 142 (66)
Net gains/(losses) on available-for-sale financial assets 13 - - (12)
543 (678) (1,996)
Effect of translation to presentation currency of the Group's joint ventures and associates 11 13 (27) (79)
13 (27) (79)
Items not to be reclassified to profit or loss in subsequent periods
Gains/(losses) on re-measurement of net defined benefit liability 23 11 1 (33)
Income tax effect 8 - (5) 15
11 (4) (18)
Decrease in revaluation surplus in connection with the impairment of property, plant and equipment 9 - (1) -
Income tax effect 8 - - -
- (1) -
Total other comprehensive income/(loss) 567 (710) (2,093)
Total comprehensive income/(loss), net of tax $ 379 $ (1,429) $ (3,371)
Attributable to:
Equity holders of the parent entity $ 341 $ (1,340) $ (3,164)
Non-controlling interests 38 (89) (207)
$ 379 $ (1,429) $ (3,371)
EVRAZ plc
Consolidated Statement of Financial Position
(in millions of US dollars)
31 December
Notes 2016 2015 2014
Assets
Non-current assets
Property, plant and equipment 9 $ 4,652 $ 4,302 $ 5,796
Intangible assets other than goodwill 10 297 324 441
Goodwill 5 880 1,176 1,541
Investments in joint ventures and associates 11 64 74 121
Deferred income tax assets 8 156 119 97
Other non-current financial assets 13 91 79 98
Other non-current assets 13 45 56 40
6,185 6,130 8,134
Current assets
Inventories 14 984 899 1,372
Trade and other receivables 15 502 447 654
Prepayments 60 50 82
Loans receivable 13 5 24
Receivables from related parties 16 8 6 53
Income tax receivable 43 44 23
Other taxes recoverable 17 192 127 158
Other current financial assets 18 33 35 40
Cash and cash equivalents 19 1,157 1,375 1,086
2,992 2,988 3,492
Assets of disposal groups classified as held for sale 12 27 1 4
3,019 2,989 3,496
Total assets $ 9,204 $ 9,119 $ 11,630
Equity and liabilities
Equity
Equity attributable to equity holders of the parent entity
Issued capital 20 $ 1,507 $ 1,507 $ 1,507
Treasury shares 20 (270) (305) -
Additional paid-in capital 20 2,517 2,501 2,481
Revaluation surplus 112 124 155
Accumulated profits 415 644 1,299
Translation difference (3,790) (4,335) (3,644)
491 136 1,798
Non-controlling interests 186 133 218
677 269 2,016
Non-current liabilities
Long-term loans 22 5,502 5,850 5,470
Deferred income tax liabilities 8 348 352 471
Employee benefits 23 317 301 364
Provisions 24 205 146 173
Other long-term liabilities 25 94 116 442
6,466 6,765 6,920
Current liabilities
Trade and other payables 26 935 1,070 1,379
Advances from customers 266 228 155
Short-term loans and current portion of long-term loans 22 392 497 761
Payables to related parties 16 226 143 108
Income tax payable 39 17 86
Other taxes payable 27 169 107 151
Provisions 24 26 23 41
2,053 2,085 2,681
Liabilities directly associated with disposal groups classified as held for sale 12 8 - 13
2,061 2,085 2,694
Total equity and liabilities $ 9,204 $ 9,119 $ 11,630
EVRAZ plc
Consolidated Statement of Cash Flows
(in millions of US dollars)
Year ended 31 December
2016 2015 2014
Cash flows from operating activities
Net loss $ (188) $ (719) $ (1,278)
Adjustments to reconcile net profit/(loss) to net cash flows from operating activities:
Deferred income tax (benefit)/expense (Note 8) (87) (87) (163)
Depreciation, depletion and amortisation (Note 7) 521 585 833
Loss on disposal of property, plant and equipment 22 41 48
Impairment of assets 465 441 540
Foreign exchange (gains)/losses, net 48 367 1,005
Interest income (10) (9) (17)
Interest expense 481 475 563
Share of (profits)/losses of associates and joint ventures 23 20 (10)
(Gain)/loss on financial assets and liabilities, net 9 48 583
(Gain)/loss on disposal groups classified as held for sale, net - (21) (136)
Loss of control over a subsidiary - 167 -
Other non-operating (gains)/losses, net 52 3 -
Bad debt expense 1 18 41
Changes in provisions, employee benefits and other long-term assets and liabilities (7) (56) (62)
Expense arising from equity-settled awards (Note 21) 16 20 30
Other (3) - (1)
1,343 1,293 1,976
Changes in working capital:
Inventories (17) 204 (87)
Trade and other receivables (38) 55 (1)
Prepayments (1) 9 (2)
Receivables from/payables to related parties 136 66 (246)
Taxes recoverable (32) (34) 33
Other assets (3) (3) 11
Trade and other payables 40 3 150
Advances from customers 20 100 27
Taxes payable 62 (72) 100
Other liabilities (7) 1 (4)
Net cash flows from operating activities 1,503 1,622 1,957
Cash flows from investing activities
Issuance of loans receivable to related parties (1) (2) (4)
Issuance of loans receivable - (2) -
Proceeds from repayment of loans receivable, including interest 2 7 3
Purchases of subsidiaries, net of cash acquired (Note 4) - - (102)
Purchases of interest in associates/joint ventures (Note 11) - - (29)
Restricted deposits at banks in respect of investing activities 1 (3) 1
Short-term deposits at banks, including interest 4 4 8
Purchases of property, plant and equipment and intangible assets (382) (423) (612)
Proceeds from disposal of property, plant and equipment 7 10 14
Proceeds from sale of disposal groups classified as held for sale, net of transaction costs (Note 12) 27 44 311
Dividends received 1 - 2
Other investing activities, net 1 6 19
Net cash flows used in investing activities (340) (359) (389)
Continued on the next page
EVRAZ plc
Consolidated Statement of Cash Flows (continued)
(in millions of US dollars)
Year ended 31 December
2016 2015 2014
Cash flows from financing activities
Purchase of treasury shares (Note 20) $ - $ (339) $ (13)
Proceeds from issue of shares by a subsidiary to non-controlling shareholders 13 6 -
Proceeds from loans provided by related parties - - 267
Repayment of loans provided by related parties - - (251)
Dividends paid by the parent entity to its shareholders (Note 20) - - (90)
Dividends paid by the Group's subsidiaries to non-controlling shareholders - - (3)
Sale of non-controlling interests (Note 4) - 1 -
Proceeds from bank loans and notes 1,301 3,801 2,579
Repayment of bank loans and notes, including interest (2,428) (3,961) (3,223)
Net proceeds from/(repayment of) bank overdrafts and credit lines, including interest (5) (9) (942)
Payments under covenants reset (4) - -
Payments for purchase of property, plant and equipment on deferred terms - (5) (42)
Gain/(loss) on derivatives not designated as hedging instruments (Note 25) (250) (464) (94)
Gain/(loss) on hedging instruments (Note 25) 14 5 -
Collateral under swap contracts (Note 18) - 7 14
Payments under finance leases, including interest (1) (1) (1)
Other financing activities (9) (3) (12)
Net cash flows used in financing activities (1,369) (962) (1,811)
Effect of foreign exchange rate changes on cash and cash equivalents (10) (12) (282)
Net increase/(decrease) in cash and cash equivalents (216) 289 (525)
Cash and cash equivalents at the beginning of the year 1,375 1,086 1,604
Decrease/(increase) in cash of disposal groups classified as assets held for sale (Note 12) (2) - 7
Cash and cash equivalents at the end of the year $ 1,157 $ 1,375 $ 1,086
Supplementary cash flow information:
Cash flows during the year:
Interest paid $ (413) $ (443) $ (517)
Interest received 6 4 10
Income taxes paid by the Group (149) (204) (263)
EVRAZ plc
Condensed Consolidated Statement of Changes in Equity
(In millions of US dollars)
Attributable to equity holders of the parent entity
Issued Treasury shares Additional paid-incapital Revaluation surplus Other Unrealised gains and losses Accumulated profits Translation difference Total Non-controlling interests Total equity
capital reserves
At 31 December 2015 $ 1,507 $ (305) $ 2,501 $ 124 $ - $ - $ 644 $ (4,335) $ 136 $ 133 $ 269
Net loss - - - - - - (215) - (215) 27 (188)
Other comprehensive income/(loss) - - - - - - 11 545 556 11 567
Reclassification of revaluation surplus to accumulated profits in respect of the disposed items of property, plant and equipment - - - (12) - - 12 - - - -
Total comprehensive income/(loss) for the period - - - (12) - - (192) 545 341 38 379
Acquisition of non-controlling interests in subsidiaries - - - - - - (2) - (2) 2 -
Contribution of a non-controlling shareholder to share capital of the Group's subsidiary - - - - - - - - - 13 13
Transfer of treasury shares to participants of the Incentive Plans (Notes 20 and 21) - 35 - - - - (35) - - - -
Share-based payments (Note 21) - - 16 - - - - - 16 - 16
At 31 December 2016 $ 1,507 $ (270) $ 2,517 $ 112 $ - $ - $ 415 $ (3,790) $ 491 $ 186 $ 677
EVRAZ plc
Consolidated Statement of Changes in Equity (continued)
(In millions of US dollars)
Attributable to equity holders of the parent entity
Issued Treasury shares Additional paid-incapital Revaluation surplus Other Unrealised gains and losses Accumulated profits Translation difference Total Non-controlling interests Total equity
capital reserves
At 31 December 2014 $ 1,507 $ - $ 2,481 $ 155 $ - $ - $ 1,299 $ (3,644) $ 1,798 $ 218 $ 2,016
Net loss - - - - - - (644) - (644) (75) (719)
Other comprehensive income/(loss) - - - (1) - - (4) (691) (696) (14) (710)
Reclassification of revaluation surplus to accumulated profits in respect of the disposed subsidiaries - - - (28) - - 28 - - - -
Reclassification of revaluation surplus to accumulated profits in respect of the disposed items of property, plant and equipment - - - (2) - - 2 - - - -
Total comprehensive income/(loss) for the period - - - (31) - - (618) (691) (1,340) (89) (1,429)
Derecognition of non-controlling interests in connection with the loss of control over a subsidiary (Note 4) - - - - - - - - - (4) (4)
Non-controlling interests arising on sale of ownership interests in subsidiaries - - - - - - (3) - (3) 2 (1)
Contribution of a non-controlling shareholder to share capital of the Group's subsidiary - - - - - - - - - 6 6
Purchase of treasury shares (Note 20) - (336) - - - - (3) - (339) - (339)
Transfer of treasury shares to participants of the Incentive Plans (Notes 20 and 21) - 31 - - - - (31) - - - -
Share-based payments (Note 21) - - 20 - - - - - 20 - 20
At 31 December 2015 $ 1,507 $ (305) $ 2,501 $ 124 $ - $ - $ 644 $ (4,335) $ 136 $ 133 $ 269
EVRAZ plc
Consolidated Statement of Changes in Equity (continued)
(in millions of US dollars)
Attributable to equity holders of the parent entity
Issued Treasury shares Additional paid-incapital Revaluation surplus Other Unrealised gains and losses Accumulated profits Translation difference Total Non-controlling interests Total equity
capital reserves
At 31 December 2013 $ 1,473 $ (1) $ 2,326 $ 162 $ 156 $ 12 $ 2,589 $ (1,685) $ 5,032 $ 431 $ 5,463
Net loss - - - - - - (1,175) - (1,175) (103) (1,278)
Other comprehensive income/(loss) - - - - - (12) (18) (1,959) (1,989) (104) (2,093)
Reclassification of revaluation surplus to accumulated profits in respect of the disposed items of property, plant and equipment - - - (7) - - 7 - - - -
Total comprehensive income/(loss) for the period - - - (7) - (12) (1,186) (1,959) (3,164) (207) (3,371)
Issue of shares (Note 20) 34 - 122 - (156) - - - - - -
Acquisition of non-controlling interests in subsidiaries - - 3 - - - - - 3 (3) -
Purchase of treasury shares (Note 20) - (13) - - - - - - (13) - (13)
Transfer of treasury shares to participants of the Incentive Plans (Notes 20 and 21) - 14 - - - - (14) - - - -
Share-based payments (Note 21) - - 30 - - - - - 30 - 30
Dividends declared by the parent entity to its shareholders (Note 20) - - - - - - (90) - (90) - (90)
Dividends declared by the Group's subsidiaries to non-controlling shareholders (Note 20) - - - - - - - - - (3) (3)
At 31 December 2014 $ 1,507 $ - $ 2,481 $ 155 $ - $ - $ 1,299 $ (3,644) $ 1,798 $ 218 $ 2,016
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