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

Globaltrans InvestmentAnnouncement

01/09/2015 07:03

- Part 2: For the preceding part double click  ID:nRSA5807Xa 

"Railway
transportation - operator's services (tariff borne by the Group)" and "Railway
transportation - operator's services (tariff borne by the client)". 
 
7.   As of 30 June 2015, the net decrease in the Group's Owned Fleet was 440
units of rolling stock or 1% compared to the end of 2014, which largely
constituted a write-off of railcars purchased as a part of acquisition of
captive rail operators in 2012-2013, which had reached the end of their useful
life. The Group expects a write-off of around 500 units of rolling stock by
the end of 2016. 
 
8.   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. 
 
9.   Starting 1 January 2015, the Group has introduced a new remuneration
program for some of the members of its management. The new remuneration
program introduces, amongst other things, a three-year compensation scheme in
accordance to which, key management receives cash compensation based on the
weighted average market quotations of the global depositary receipts of the
Company. The Group has recognized an employee benefit expense and a
corresponding share-based payment liability of RUB 41.4 million in this
respect for the six months ended 30 June 2015. 
 
10.  A block train consists of Group-operated rolling stock bound for one
destination. 
 
11.  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". 
 
12.  Average age of the Group's Owned Fleet as of 30 June 2015. 
 

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ANALYST AND INVESTOR CONFERENCE CALL 
 
The release of the Group's financial and operational results will be
accompanied by an analyst and investor conference call hosted by Sergey
Maltsev, Chief Executive Officer and Alexander Shenets, Chief Financial
Officer. 
 
Date:                Tuesday, 1 September 2015 
 
Time:                13.00 London / 8.00 New York (EDT) / 15.00 Moscow 
 
To participate in the conference call please dial one of the following numbers
and ask to be put through to the "Globaltrans" call: 
 
UK toll free:       0808 109 0700 
 
International:     +44 (0) 20 3003 2666 
 
As there will be simultaneous translation for the first part of the call
(slide presentation), you should state whether you prefer to listen in English
or Russian. During the Q&A session, all participants will hear both
languages. 
 
There will also be a webcast of the call available through the Globaltrans
website (www.globaltrans.com). Please note that this will be a listen-only
facility. 
 
ENQUIRIES 
 
Globaltrans Investor Relations 
 
Mikhail Perestyuk 
 
+357 25 503 153 
 
irteam@globaltrans.com 
 
For international media 
 
StockWell Communications 
 
Laura Gilbert / Zoë Watt 
 
+44 20 7240 2486 
 
globaltrans@stockwellgroup.com 
 
NOTES TO EDITORS 
 
Globaltrans is a leading private freight rail transportation group with
operations in Russia, the CIS and the Baltic countries. The Group's main
business is the provision of freight rail transportation services. Globaltrans
provides services to more than 500 customers and its key customers include a
number of large Russian industrial groups in the metals and mining and the oil
products and oil sectors. 
 
The Group has a Total Fleet of about 66 thousand units of rolling stock with
an average age of 9.1 years12. Universal gondola cars and rail tank cars
constitute the backbone of the Group's fleet. More than 90% of the Total Fleet
is owned by the Group. In the first six months of 2015, the Group's Freight
Rail Turnover (including Engaged Fleet) was 83.6 billion tonnes-km. The
Group's Market Share was 8.3% of overall Russian freight rail transportation
volumes. 
 
Globaltrans' global depositary receipts (ticker symbol: GLTR) have been listed
on the Main Market of the London Stock Exchange since May 2008. Globaltrans
was the first freight rail transportation group with operations in Russia to
have an international listing. 
 
To learn more about Globaltrans, please visit 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 gain/(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", "Write off 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 wagons", "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", "Write off of property, plant and
equipment" and "Net gain/(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", "Write off of
property, plant and equipment" and "Net gain/(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. 
 
This information is provided by RNS
The company news service from the London Stock Exchange