REG - Globaltrans Inv PLC - Full-Year 2015 Results <Origin Href="QuoteRef">GLTRq.L</Origin> - Part 2

Globaltrans InvestmentAnnouncement

31/03/2016 07:07

- Part 2: For the preceding part double click  ID:nRSe6207Ta 

     
 Q4 2016                      2,203*            
 2017                         4,812*            
 2018-2020                    6,253*            
 Total                        20,359*           
 Free Cash Flow (2015)        9,614*            
 Cash and cash equivalents    4,104             
 Undrawn credit facilities13  4,576*            
                                                  
 
 
PRESENTATION OF INFORMATION 
 
The financial information presented in this announcement is derived from the
consolidated financial statements (audited) of Globaltrans Investment PLC
("the Company" or, together with its subsidiaries, "Globaltrans" or "the
Group") as at and for the year ended 31 December 2015 and 2014 and prepared in
accordance with International Accounting Standards as adopted by the European
Union and the requirements of Cyprus Companies Law, Cap. 113 ("EU IFRS"). 
 
The Group's consolidated financial statements as at and for the year ended 31
December 2015 and 2014 along with selected historical financial and
operational information are available at Globaltrans' corporate website
(www.globaltrans.com). 
 
The presentation currency of the Group's consolidated financial statements is
Russian rouble ("RUB"). 
 
Certain financial information which is derived from management accounts is
marked in this announcement with an asterisk {*}. 
 
In this announcement the Group has used certain non-GAAP financial information
(not recognised by EU IFRS or IFRS) as supplemental measures of the Group's
operating performance. 
 
Information (non-GAAP and operating measures) requiring additional explanation
or defining is marked with initial capital letters and the explanations or
definitions are provided at the end of this announcement. 
 
Rounding adjustments have been made in calculating some of the financial and
operational information included in this announcement. As a result, numerical
figures shown as totals in some tables may not be exact arithmetic
aggregations of the figures that precede them. 
 
The Group has obtained certain statistical, market and pricing information
that is presented in this announcement on such topics as the Russian freight
rail transportation market and related subjects from the following third-party
sources: Federal State Statistics Service of Russian Federation ("Rosstat"),
JSC Russian Railways ("RZD"), Federal Tariff Service of Russian Federation
("FST") and the Council of Rail Operators ("Railsovet"). The Group has
accurately reproduced such information and, as far as it is aware and is able
to ascertain from information published by such third-party sources, no facts
have been omitted that would render the reproduced information inaccurate or
misleading. The Group has not independently verified this third-party
information. In addition, the official data published by Russian governmental
agencies may be substantially less complete or researched than that of more
developed countries. 
 
All non-GAAP financial and operational information presented in this
announcement should be used only as an analytical tool, and investors should
not consider such information in isolation or in any combination as a
substitute for analysis of the Group's consolidated financial statements and
condensed interim financial information reported under EU IFRS, which are
available the Globaltrans' corporate website www.globaltrans.com. 
 
DEFINITIONS 
 
Terms that require definitions are marked with capital letters in this
announcement and their definitions are provided below in alphabetical order: 
 
Adjusted EBITDA (a non-GAAP financial measure) represents EBITDA excluding
"Net foreign exchange transaction gains/(losses) on borrowings and other
liabilities", "Net foreign exchange transaction gains/(losses) on cash and
cash equivalents and other monetary assets", "Share of profit/(loss) of
associate", "Other gains - net" and "Net profit/(loss) on sale of property,
plant and equipment". 
 
Adjusted EBITDA Margin (a non-GAAP financial measure) is calculated as
Adjusted EBITDA divided by Adjusted Revenue. 
 
Adjusted Revenue (a non-GAAP financial measure) is calculated as "Total
revenue" less the following "pass through" items "Infrastructure and
locomotive tariffs: loaded trips" and "Services provided by other
transportation organizations". 
 
Average Distance of Loaded Trip is calculated as the sum of the distances of
all loaded trips for a period divided by the number of loaded trips for the
same period. 
 
Average Number of Loaded Trips per Railcar is calculated as total number of
loaded trips in the relevant period divided by Average Rolling Stock
Operated. 
 
Average Price per Trip is calculated as Net Revenue from Operation of Rolling
Stock divided by total number of loaded trips during the relevant period in
the respective currency. 
 
Average Rolling Stock Operated is calculated as the average weighted (by days)
number of rolling stock available for operator services (not including rolling
stock in maintenance, purchased rolling stock in transition to its first place
of commercial utilization, rolling stock leased out or Engaged Fleet). 
 
EBITDA (a non-GAAP financial measure) represents "Profit for the period"
before "Income tax expense", "Finance costs - net" (excluding "Net foreign
exchange transaction gains/(losses) on borrowings and other liabilities" and
"Net foreign exchange transaction gains/(losses) on cash and cash equivalents
and other monetary assets"), "Depreciation of property, plant and equipment",
"Amortization of intangible assets", "Impairment of property, plant and
equipment" and "Impairment of intangible assets". 
 
Engaged Fleet is defined as rolling stock subcontracted or otherwise engaged
from a third-party rail operator for a loaded trip from the point of
origination to the cargo's destination, at which point the railcar is then
released to such third-party. 
 
Empty Run or Empty Runs means movement of railcars without cargo for the whole
or a substantial part of the journey. 
 
Empty Run Costs (a non-GAAP financial measure meaning costs payable to RZD for
forwarding empty railcars) is derived from management accounts and presented
as part of the "Infrastructure and locomotive tariffs: empty run trips and
other tariffs" component of "Cost of sales" reported under EU IFRS. Empty Run
Costs do not include costs of relocation of rolling stock to and from
maintenance, purchased rolling stock in transition to its first place of
commercial utilization, rolling stock leased in or leased out and Engaged
Fleet. 
 
Empty Run Ratio is calculated as the total of empty trips in kilometres by
respective rolling stock type divided by total loaded trips in kilometres of
such rolling stock type. Empty trips are only applicable to rolling stock
operated (not including rolling stock in maintenance, purchased rolling stock
in transition to its first place of commercial utilization, rolling stock
leased out or Engaged Fleet). 
 
Free Cash Flow (a non-GAAP financial measure) is calculated as "Net cash from
operating activities" (after "Changes in working capital" and "Tax paid") less
"Purchases of property, plant and equipment" (which includes maintenance
CAPEX) and "Interest paid". 
 
Freight Rail Turnover is a measure of freight carriage activity over a
particular period calculated as the sum of tonnage of each loaded trip
multiplied by the distance of each loaded trip, expressed in tonnes-km. It
includes volumes transported by the Engaged Fleet, unless otherwise stated. 
 
Infrastructure and Locomotive Tariffs - Other Tariffs (a non-GAAP financial
measure) is presented as part of the ''Infrastructure and locomotive tariffs:
empty run trips and other tariffs'' component of "Cost of sales" reported
under EU IFRS. This cost item includes the costs of relocation of rolling
stock to and from maintenance, transition of purchased rolling stock to its
first place of commercial utilization, and relocation of rolling stock in and
from lease operations as well as other expenses. 
 
Leased-in Fleet is defined as rolling stock fleet leased-in under operating
leases, including both railcars and locomotives. 
 
Leased-out Fleet is defined as rolling stock fleet leased out to third parties
under operating leases. 
 
Market Share is calculated using the Group's own information as the numerator
and information published by Rosstat as the denominator. The Group's Market
Share is calculated as a percentage of the overall Russian freight rail
transportation volume and includes volumes transported by Engaged Fleet. 
 
Net Debt (a non-GAAP financial measure) is defined as the sum of total
borrowings (including interest accrued) less "Cash and cash equivalents". 
 
Net Revenue from Engaged Fleet (a non-GAAP financial measure) represents the
net sum of the price charged for transportation to clients by the Group
utilising Engaged Fleet less the loaded railway tariff charged by RZD
(included in the EU IFRS line item "Infrastructure and locomotive tariffs:
loaded trips") less the cost of attracting fleet from third-party operators
(included in the EU IFRS line item "Services provided by other transportation
organizations"). 
 
Net Revenue from Operation of Rolling Stock (a non-GAAP financial measure) is
defined as the sum of "Revenue from railway transportation - operators
services (tariff borne by the Group)" and "Revenue from railway transportation
- operators services (tariff borne by the client)" less "Infrastructure and
locomotive tariffs: loaded trips", "Services provided by other transportation
organization" and Net Revenue from Engaged Fleet. 
 
Net Working Capital (a non-GAAP financial measure) is calculated as the sum of
the current portions of "Inventories", "Current income tax assets", "Trade
receivables - net", "Prepayments - third parties", "Prepayments - related
parties", "Other receivables - net", and "VAT recoverable", less the sum of
the current portions of "Trade payables to third parties", "Trade payables to
related parties", "Advances from customers for transportation services",
"Advances from related parties for sale of rail cars", "Accrued expenses",
"Other payables to third parties", "Other payables to related parties" and
"Current tax liabilities". 
 
Total Operating Cash Costs (a non-GAAP financial measure) represent operating
cost items payable in cash and calculated as "Total cost of sales, selling and
marketing costs and administrative expenses" less the "pass through" items:
"Infrastructure and locomotive tariffs: loaded trips" and "Services provided
by other transportation organizations" and non-cash items: "Depreciation of
property, plant and equipment", "Amortization of intangible assets",
"Impairment charge for receivables", "Impairment of property, plant and
equipment" and "Net profit/(loss) on sale of property, plant and equipment". 
 
Total Operating Non-Cash Costs (a non-GAAP financial measure) include cost
items such as "Depreciation of property, plant and equipment", "Amortization
of intangible assets", "Impairment charge for receivables", "Impairment of
property, plant and equipment" and "Net profit/(loss) on sale of property,
plant and equipment". 
 
Other Operating Cash Costs (a non-GAAP financial measure) include cost items
such as "Legal, consulting and other professional fees", "Operating lease
rentals - office", "Auditors' remuneration", "Advertising and promotion",
"Communication costs", "Information services", "Taxes (other than income tax
and value added taxes)" and "Other expenses". 
 
Owned Fleet is defined as the rolling stock fleet owned and leased in under
finance lease as at the end of the reporting period. It includes railcars and
locomotives unless otherwise stated and excludes Engaged Fleet. 
 
Share of Empty Run Kilometres paid by Globaltrans is defined as the percentage
of empty run kilometres paid by Globaltrans divided by the total amount of
empty run kilometres incurred by the fleet operated by Globaltrans (not
including relocation of rolling stock to and from maintenance, purchased
rolling stock in transition to its first place of commercial utilization, and
rolling stock leased out or Engaged Fleet) in the relevant period. 
 
Total Empty Run Ratio is calculated as total kilometres travelled empty
divided by the total kilometres travelled loaded by the fleet operated by
Globaltrans (not including the relocation of rolling stock to and from
maintenance, purchased rolling stock in transition to its first place of
commercial utilization, or rolling stock leased out or Engaged Fleet) in the
relevant period. 
 
Total Fleet is defined as the total rolling stock owned and leased in under
finance and operating leases as at the end of period. It includes railcars and
locomotives unless otherwise stated and excludes Engaged Fleet. 
 
Transportation Volume is a measure of freight carriage activity over a
particular period measuring weight of cargo carried in million tonnes. It
includes volumes transported by Engaged Fleet, unless otherwise stated. 
 
LEGAL DISCLAIMER 
 
Some of the information in this announcement may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Globaltrans. You can identify forward-looking statements by
terms such as 'expect', 'believe', 'anticipate', 'estimate', 'intend', 'will',
'could', 'may' or 'might', the negative of such terms or other similar
expressions. Globaltrans wishes to caution you that these statements are only
predictions and that actual events or results may differ materially.
Globaltrans does not intend to update these statements to reflect events and
circumstances occurring after the date hereof or to reflect the occurrence of
unanticipated events. Many factors could cause the actual results to differ
materially from those contained in projections or forward-looking statements
of Globaltrans, including, among others, general economic conditions, the
competitive environment, risks associated with operating in Russia, rapid
technological and market change in the industries Globaltrans operates in, as
well as many other risks specifically related to Globaltrans and its
operations. 
 
Footnotes: 
 
1 
 
The regulated JSC Russian Railways ("RZD") tariffs (including for the traction
of empty railcars) increased 10% year on year from January 2015. 
 
2 
 
Adjusted profit attributable to owners of the Company for 2015 excludes the
impact of the impairment of customer relationships related to the service
contract with MMK in the amount of RUB 996 million. For 2014 it excludes the
impact of the impairment of goodwill in the amount of RUB 5,828 million
related to the acquisition of captive rail operators completed in 2012 and
2013. 
 
3 
 
Subject to shareholders' approval, dividends will be paid in US Dollars with
conversion from Russian roubles to be executed at the official exchange rate
for Russian rouble of the Central Bank of Russia as of the date of the Annual
General Meeting, which was called for April 28, 2016. 
 
4 
 
The dividend pay-out ratio is calculated as a proportion of Adjusted profit
attributable to owners of the Company for 2015, which was RUB 2,979 million*
and excludes the impact of the impairment of customer relationships related to
the service contract with MMK of RUB 996 million). 
 
5 
 
As announced on February 25, 2016. 
 
6 
 
The regulated RZD tariffs (including for the traction of empty railcars)
increased 9% year on year from January 2016. 
 
7 
 
Average age of the Group's Owned Fleet as of 31 December 2015. 
 
8 
 
Includes "Infrastructure and locomotive tariffs: loaded trips" for the year
ended 31 December 2015 of RUB 23,326 million (2014: RUB 23,251 million) and
"Services provided by other transportation organizations" of RUB 2,698 million
(2014: RUB 3,560 million). 
 
9 
 
Defined as the sum of the following EU IFRS line items: "Railway
transportation - operator's services (tariff borne by the Group)" and "Railway
transportation - operator's services (tariff borne by the client)". 
 
10 
 
Under contracts where the RZD tariff is borne by the Group, the Group has a
contractual relationship with the client. The Group sets the terms of the
transactions, such as selling and payment terms and in some cases bears credit
risk and controls the flow of receipts and payments. 
 
11 
 
A block train consists of Group-operated rolling stock bound for one
destination. 
 
12 
 
Net Cash inflows (outflows) from borrowings and financial leases defined as a
balance between the following line items: "Proceeds from borrowings",
"Repayments of borrowings" and "Finance lease principal payments". 
 
13 
 
Excluding the unissued registered RUB denominated exchange-traded bonds in the
amount of RUB 15 billion. 
 
This information is provided by RNS
The company news service from the London Stock Exchange