REG - Globaltrans Inv PLC - Interim 2016 Results <Origin Href="QuoteRef">GLTRq.L</Origin> - Part 2

Globaltrans InvestmentAnnouncement

30/08/2016 07:07

- Part 2: For the preceding part double click  ID:nRSd3584Ia 

well as undrawn
credit facilities17 in the amount of RUB 21,811 million as of 30 June 2016. 
 
The following table gives the maturity profile of the Group's borrowings
(including accrued interest of
RUB 49 million*) as of 30 June 2016. 
 
                                                               As of         
                                                               30 June 2016  
                                                               RUB mln       
 Q3 2016                                                       2,883*        
 Q4 2016                                                       2,554*        
 Q1 2017                                                       2,231*        
 Q2 2017                                                       1,494*        
 H2 2017                                                       2,513*        
 2018                                                          4,875*        
 2019-2023                                                     3,778*        
 Total                                                         20,326        
 Free Cash Flow for the last twelve months ended 30 June 2016  7,633*        
 Cash and cash equivalents                                     3,220         
 Undrawn credit facilities16                                   21,811        
                                                                               
 
 
PRESENTATION OF INFORMATION 
 
The financial information presented in this announcement is derived from the
condensed consolidated interim financial information (unaudited) of
Globaltrans Investment PLC ("the Company" or, together with its subsidiaries,
"Globaltrans" or "the Group") as at and for the six months ended 30 June 2016
and 2015 and prepared in accordance with International Accounting Standard 34
"Interim Financial Reporting" as adopted by the European Union. The condensed
consolidated interim financial information should be read in conjunction with
the annual consolidated financial statements for the year ended 31 December
2015, which have been prepared in accordance with International Financial
Reporting Standards as adopted by the European Union and the Cyprus Companies
Law, Cap. 113. 
 
The Group's condensed consolidated interim financial information (unaudited)
as at and for the six months ended 30 June 2016 and 2015 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"). 
 
The respective financial information for the first six months of 2015 and the
full year 2015 has been restated to reflect the harmonisation of the Group's
accounting policy in respect of capitalisation of capital repairs and
associated spare parts. Historically due to low number of these repairs, they
were expensed as incurred. 
 
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"), the Federal Antimonopoly Service ("FAS") 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", "Net gain/(loss) on sale of property, plant
and equipment", "Impairment of property, plant and equipment", "Impairment of
intangible assets" and "Loss on derecognition arising on capital repairs". 
 
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"
and "Amortization 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 "Cash generated
from operations" (after "Changes in working capital") less "Tax paid",
"Interest paid" and net sum of "Purchases of property, plant and equipment"
(which includes maintenance CAPEX) and "Proceeds from sale of property, plant
and equipment". 
 
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. 
 
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 and other taxes recoverable",
less the sum of the current portions of "Trade payables to third parties",
"Trade payables to related parties", "Advances from third parties", "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", "Net gain/(loss) on sale of property, plant and equipment" and
"Loss on derecognition arising on capital repairs". 
 
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", "Loss on derecognition arising on capital repairs",
"Impairment charge for receivables", "Impairment 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 "Rental of tank containers", "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. 
 
1 The regulated RZD tariffs (including for the traction of empty railcars) was
up 9% year on year from January 2016. 
 
2 The Group's Profit for the period was RUB 2,341 million in the first six
months of 2016, down 13% year on year. 
 
3 For the purpose of this announcement the Group's market share is calculated
as a percentage of the overall Russian Freight Rail Turnover. It includes the
freight turnover generated by the Engaged Fleet. The Group's market share of
overall Russian Transportation Volumes was 8.4% in H1 2016 (H1 2015: 8.3%). 
 
4 The Group's Freight Rail Turnover (excluding Engaged Fleet) was up 15% year
on year. 
 
5 Estimated by the Company. 
 
6 Overall Russian fleet of respective type as of 30 June 2016. Estimated by
the Company. 
 
7 In the next 18 months to the end of 2017. 
 
8 For the last twelve months ended 30 June 2016. 
 
9 Includes "Infrastructure and locomotive tariffs: loaded trips" for the six
months ended 30 June 2016 of RUB 10,538 million (H1 2015: RUB 11,699 million)
and "Services provided by other transportation organizations" of RUB 1,574
million (H1 2015: RUB 1,460 million). 
 
10 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)".
11 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. 
 
12 A block train consists of Group-operated rolling stock bound for one
destination. 
 
13 Following the harmonization of the Group's accounting policy, the cost of
each major periodic capital repair (including the replacement of significant
components) is recognized in the carrying amount of the relevant item of
rolling stock repaired and separately depreciated. Simultaneously, the
carrying amount of the repaired rolling stock that is attributable to the
previous periodic capital repair and/or significant component replacement, if
any, is derecognized and debited in "Cost of sales" in the income statement as
"Loss on derecognition arising on capital repairs" for the period during which
the repair was carried out. 
 
14 EBITDA for the first six months of 2015 was restated to reflect the change
in description as "Impairment of property, plant and equipment" and
"Impairment of intangible assets" were moved from EBITDA to Adjusted EBITDA
calculation. 
 
15 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". 
 
16 Including assets under construction. 
 
17 Including the unissued registered RUB denominated exchange-traded bonds in
the amount of RUB 15,000 million. 
 
This information is provided by RNS
The company news service from the London Stock Exchange