REG-HMS Group HMS Group: 2018 FY IFRS results
25/04/2019 15:35
============
HMS Group (HMSG)
HMS Group: 2018 FY IFRS results
25-Apr-2019 / 17:34 MSK
Dissemination of a Regulatory Announcement that contains inside
information according to REGULATION (EU) No 596/2014 (MAR), transmitted by
EQS Group.
The issuer is solely responsible for the content of this announcement.
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HMS Group Reports 2018 FY Net Income of Rub 1.9 Billion
Moscow, Russia - April 25, 2019 - HMS Group Plc (the "Group") (LSE: HMSG),
the leading pump, oil & gas equipment and compressor manufacturer and
provider of flow control solutions and related services in Russia and the
CIS, today announces its financial results for twelve months ended
December 31, 2018.
Financial highlights FY 2018:
▪ Revenue: Rub 52.6 bn (+18% yoy)
▪ EBITDA 1 1 : Rub 6.6 bn (-3% yoy), EBITDA margin 12.6%
▪ Operating profit: Rub 4.2 bn (-8% yoy), operating margin down
to 8.0%
▪ Net income (profit for the year): Rub 1.9 bn (-6% yoy), net
income margin 3.7%
▪ Total debt: Rub 19.4 bn (+21% yoy)
▪ Net debt: Rub 13.1 bn (+14% yoy)
▪ Net debt-to-EBITDA LTM ratio: 1.97x
Operational highlights FY 2018:
▪ Backlog: Rub 42.6 bn (+9% yoy)
▪ Order intake: Rub 55.9 bn (-6% yoy)
Artem Molchanov, CEO of HMS Group, commented:
"We again delivered what we promised. We managed to increase revenue by 18
percent to Rub 52.6 billon, and prevent Net income to decline
significantly, keeping it at the level of Rub 1.9 billion."
GROUP PERFORMANCE
Results
in millions of Rub 2018 FY 2017 FY Change yoy 2018 4Q 2017 4Q Change yoy
Orders 55,891 59,679 -6% 25,176 14,516 73%
Backlog 42,634 39,067 9%
Revenue 52,619 44,422 18% 20,757 13,011 60%
EBITDA 6,621 6,839 -3% 2,302 1,852 24%
EBITDA margin 12.6% 15.4% 11.1% 14.2%
Profit for the year 1,946 2,070 -6% 772 419 85%
Free cash flow (139) 3,098 -105% 1,854 1,389 33%
ROCE 13.6% 15.9%
Order intake was lower in all business segments except Compressors
compared to 2017. The decline was attributable to less amount of large
contracts signed in the reporting period.
Backlog for HMS Group grew to Rub 42.6 billion by 9% vs. Rub 39.1 billion
last year. Pumps and, for the most part, Compressors made contribution to
this growth. Unlike 2017, the growth was based on the recurring business,
as backlog of large integrated contracts was 4% yoy lower.
Revenue for the full year was Rub 52.6 billion, compared with Rub 44.4
billion in 2017. Almost all segments contributed to this growth except
Oil and gas equipment and projects (OGEP) business segment (-2% yoy).
EBITDA was down by 3% yoy to Rub 6.6 billion because of a decline in
Pumps.
Revenue from recurring business was down by 2% yoy. Large projects'
revenue jumped 75% yoy. EBITDA from recurring business declined 45% yoy
and large contracts advanced 41% yoy.
Higher revenue and lower EBITDA led to EBITDA margin decrease to 12.6%
from 15.4% last year.
For the 4th quarter, revenue was Rub 20.8 billion, compared with Rub 13.0
billion in 2017. EBITDA was up to Rub 2.3 billion from Rub 1.9 billion
last year.
Depreciation and amortization for the full year was Rub 1.8 billion, up
19% yoy, compared with Rub 1.5 billion in 2017.
Profit for the year (net income) was Rub 1.9 billion, down 6% yoy,
compared with Rub 2.1 billion last year. For the 4th quarter, net income
was Rub 772 million compared with Rub 419 million in 2017.
In 2018, decrease in free cash flow to Rub 139 million from Rub 3.1
billion in 2017 was due mainly to negative change in working capital.
ROCE decreased because of lower operating profit and higher average
capital employed.
Expenses and Operating profit
Change Share of Share of
in millions of Rub 2018 FY 2017 FY yoy 2018 FY 2017 FY
revenue revenue
Cost of sales 40,617 32,536 25% 77.2% 73.2%
Materials and components 27,628 22,036 25% 52.5% 49.6%
Labour costs incl. Social taxes 7,276 6,528 11% 13.8% 14.7%
Construction and design and
engineering services of 2,102 1,365 54% 4.0% 3.1%
subcontractors
Depreciation and amortization 1,567 1,307 20% 3.0% 2.9%
Others 2,045 1,299 57% 3.9% 2.9%
Cost of sales was Rub 40.6 billion, up 25% yoy, compared with Rub 32.5
billion in 2017. This was almost fully attributable to materials and
components (+25% yoy) and labour costs incl. social taxes (+11% yoy).
Despite the outpacing growth of cost of sales, gross profit was up 1% yoy
to Rub 12.0 billion, compared with Rub 11.9 billion in 2017.
Share of Share of
in millions of Rub 2018 FY 2017 FY Change yoy 2018 FY 2017 FY
revenue revenue
Distribution and 1,916 1,785 7% 3.6% 4.0%
transportation
General and administrative 5,636 4,999 13% 10.7% 11.3%
SG&A expenses 7,551 6,784 11% 14.4% 15.3%
Other operating expenses 250 547 -54% 0.5% 1.2%
Operating expenses ex. Cost 7,802 7,331 6% 14.8% 16.5%
of sales
Operating profit 4,200 4,555 -8% 8.0% 10.3%
Finance costs 1,611 1,775 -9% 3.1% 4.0%
Distribution and transportation expenses was Rub 1.9 billion, up 7% yoy,
compared with Rub 1.8 billion in 2017. Growth of labor costs incl. social
taxes (+14% yoy) was the main drivers. As a share of revenue,
distribution and transportation expenses was down to 3.6%, compared with
4.0% last year.
General and administrative expenses was Rub 5.6 billion, up 13% yoy,
compared with Rub 5.0 billion last year, due to 11% yoy higher labour
costs incl. social taxes. As a share of revenue, general and
administrative expenses was down to 10.7% from 11.3% in 2017.
For the full year, SG&A expenses 2 2 was Rub 7.6 billion, that was 11%
yoy higher than last year. In contrast, as a share of revenue they
decreased to 14.4% from 15.3%.
Operating profit was Rub 4.2 billion, down 8% yoy, compared with Rub 4.6
billion in 2017. Operating margin decreased to 8.0% from 10.3%.
in millions of Rub 2018 FY 2017 FY Change yoy
Finance costs 1,611 1,775 (9)%
Interest expenses 1,598 1,725 (7)%
Interest rate, average 8.7% 9.8%
Interest rate Rub, average 8.9% 9.9%
Finance costs were Rub 1.6 billion, down by 9% yoy, compared with Rub 1.8
billion in 2017. The main factor was decrease of interest expenses (-7%
yoy) due to lower interest rates as a result of debt portfolio
refinancing.
Average rates decreased to 8.7% p.a. from 9.8% p.a. within a one-year
period.
BUSINESS SEGMENTS PERFORMANCE
Industrial pumps 3 i
in millions of Rub 2018 FY 2017 FY Change yoy 2018 4Q 2017 4Q Change yoy
Orders 19,573 20,983 -7% 6,141 8,762 -30%
Backlog 17,152 14,467 19%
Revenue 17,811 17,488 2% 6,613 5,141 29%
EBITDA 2,390 3,148 -24% 1,191 1,034 15%
EBITDA margin 13.4% 18.0% 18.0% 20.1%
Lower order intake of Rub 19.6 billion was due to no large contracts
signed in the reporting period, though recurring business grew by 17% yoy.
Backlog grew by 19% yoy to Rub 17.2 billion because of a slower pace of
revenue recognition of several contracts signed in 2017, that have
execution period more than one year.
Revenue was Rub 17.8 billion, up 2% yoy, compared with Rub 17.5 billion in
2017.
EBITDA declined to Rub 2.4 billion, by 24% yoy, from Rub 3.1 billion,
mainly due to increase of wages and a high base effect in 2017, when
several untypical modular equipment projects were executed, that had
higher than average profitability.
EBITDA margin was down to 13.4% due to higher revenue and lower EBITDA in
2018.
Oil and Gas equipment & projects (OGEP) 4 ii
in millions of Rub 2018 FY 2017 FY Change yoy 2018 4Q 2017 4Q Change yoy
Orders 12,023 27,408 -56% 3,203 4,025 -20%
Backlog 6,658 15,092 -56%
Revenue 20,859 21,536 -3% 4,346 6,499 -33%
EBITDA 2,883 2,592 11% 166 1,132 -85%
EBITDA margin 13.8% 12.0% 3.8% 17.4%
For the full year, order intake decreased sharply to Rub 12.0 billion from
Rub 27.4 billion, because there were no large contracts signed in 2018.
Backlog also went down to Rub 6.7 billion from Rub 15.1 billion, due to
less contracts signed than revenue recognized in the reporting period.
Both recurring business and large contracts declined.
Revenue was down 3% yoy to Rub 20.9 billion, compared with Rub 21.5
billion in 2017.
EBITDA and EBITDA margin rose on large contracts.
Compressors 5 iii
in millions of Rub 2018 FY 2017 FY Change yoy 2018 4Q 2017 4Q Change yoy
Orders 23,883 7,202 232% 15,811 1,268 1147%
Backlog 16,688 5,186 222%
Revenue 14,678 9,130 61% 9,371 2,481 278%
EBITDA 1,758 1,143 54% 1,320 47 2693%
EBITDA margin 12.0% 12.5% 14.1% 1.9%
Order intake grew to Rub 23.9 billion, compared with Rub 7.2 billion in
2017, due to a substantially higher volume from large contracts signed in
4Q 2018.
Backlog was lifted by order intake to Rub 16.7 billion, compared with Rub
5.2 billion last year.
Revenue and EBITDA grew to Rub 14.7 billion and Rub 1.8 billion
respectively, led by large contracts. EBITDA margin decline to 12.0% due
to a mix of more profitable projects executed in 2017.
Construction 6 iv
in millions of Rub 2018 FY 2017 FY Change yoy 2018 4Q 2017 4Q Change yoy
Orders 411 4,086 -90% 20 462 -96%
Backlog 2,137 4,323 -51%
Revenue 1,795 1,045 72% 537 597 -10%
EBITDA (138) (75) 83% 23 44 -49%
EBITDA margin -7.7% -7.2% 4.2% 7.4%
For the full year, orders portfolio and backlog declined substantially.
Revenue was Rub 1.8 billion, up 72% yoy, from Rub 1.0 billion in 2017, due
to revenue recognition from large integrated contracts under execution.
Though 4Q 2018 was profitable in terms of EBITDA, the full year EBITDA
was still negative.
Working capital and Capital expenditures
in millions of Rub 2018 FY 2017 FY Change yoy 4Q 2018 3Q 2018 Change qoq
Working capital 9,130 7,820 17% 9,130 11,340 (19)%
Working capital / 17% 18% 17% 25%
Revenue LTM
Capital expenditures 2,335 2,159 8% 893 649 38%
For the full year, working capital was Rub 9.1 billion, up by 17% yoy in
line with growth of revenue. As a share of revenue, working capital
declined to 17% from 18% in 2017.
Capital expenditures was Rub 2.3 billion, up 8% yoy, compared with Rub 2.2
billion in 2017.
DEBT POSITION
(in millions of Rub) 2018 FY 2017 FY Change yoy 4Q 2018 3Q 2018 Change qoq
Total debt 19,360 16,042 21% 19,360 19,177 1%
Long-term debt 18,198 13,065 39% 18,198 18,191 0%
Short-term debt 1,162 2,977 (61)% 1,162 986 18%
Net debt 13,065 11,422 14% 13,065 14,828 (12)%
Net debt / EBITDA 1.97x 1.67x 1.97x 2.40x
LTM
Total debt was Rub 19.4 billion, compared with Rub 16.0 billion in 2017.
Net debt also increased, to Rub 13.1 billion vs. Rub 11.4 billion at
2017-end.
2018 FY Net debt to EBITDA LTM ratio increased to 1.97x compared with
1.67x in 2017.
For the 4th quarter, total debt increased by minor 1% qoq, compared with
Rub 19.2 billion in 3Q 2018. Net debt, in contrast, was down 12% qoq,
compared with 14.8 billion in 3Q 2018.
Dividends
The Board of Directors of HMS Group recommended total dividends for 2018
of Rub 9.81 per ordinary share (Rub 49.05 per GDR), of which Rub 3.84 per
share (Rub 19.20 per GDR) have been already distributed as interim
dividends in January 2019.
If approved at the Annual General Meeting of Shareholders, final dividends
of Rub 5.97 per ordinary share (Rub 29.85 per GDR) will be distributed on
the 1st of July, 2019.
Share buy-backs
HMS Group repurchased 66,100 global depositary receipts during 4Q 2018.
For the full year, the company repurchased 109,100 GDRs.
In 2019, the company repurchased 61,162 GDRs. As of today, HMS has
purchased 1,204,149 GDRs or 5.14 percent of its issued share capital. We
expect to continue our buy-back program to 6 percent of HMS' issued share
capital.
MANAGEMENT PURCHASES
In 2018, HMS managers purchased 19,225 of the company's GDRs using their
own funds.
SIGNIFICANT EVENTS AFTER THE REPORTING DATE & FINANCIAL MANAGEMENT
FINANCIAL MANAGEMENT
As of April 1, 2019, average interest rate decreased to 8.8% compared to
9.8% at the beginning of 2018. According to management accounts, total
debt decreased by 3% to Rub 18.8 billion, and net debt, in contrast, was
up 13% to Rub 14.8 billion due to working capital, required for execution
of large projects.
CONTRACTS
In April 2019, the company announced signing of two contract worth Rub 4.0
billion for delivery of gas transportation units, that will be executed by
the end of 2019.
RESTRUCTUING OF THE CORE SHAREHOLDERS' SHAREHOLDING
On March 6, 2019 its major shareholder H.M.S. Technologies Limited
("HMST"), registered at Cyprus transferred its entire shareholding in the
Company to JSC HMS Holding ("HMS Holding"), registered at Russia, the
subsidiary undertaking of HMST, via the following transactions:
▪ HMST transferred 67,159,421 ordinary shares in the Company (comprising
57.32% of the Company's issued share capital) to HMS Holding in the
form of the shareholder's asset contribution for nil consideration;
▪ HMST transferred 2,924,207 global depositary receipts issued under the
Company's depositary receipts program ("GDRs") (representing
14,621,035 shares in the Company and comprising 12.28% of the
Company's issued share capital) to HMS Holding in exchange for
additionally issued shares in HMS Holding.
As a result of this restructuring:
▪ HMS Holding became a direct holder of 69,159,421 ordinary shares in
the Company and 2,924,207 GDRs comprising in aggregate 71.51% of the
Company's issued share capital; and
▪ HMST remains the sole voting shareholder of HMS Holding retaining
control over the majority shareholding in the Company,
and consequently none of the transactions made as a part of the
restructuring triggers an obligation of the Company, HMST or HMS Holding
to make any mandatory offer to the GDR holders.
This restructuring of the core shareholders' shareholding in the Company
does not lead to any change in corporate governance or corporate control
of the Company. All applicable regulatory approvals have been obtained in
connection with this restructuring.
Further details of the transactions above are available here:
• 7 GDRs MAR notification by HMST
• 8 GDRs MAR notification by HMS Holding
• 9 Ordinary shares MAR notification by HMST
• 10 Ordinary shares MAR notification by HMS Holding
• 11 Major holdings notification (for Cypriot regulatory purposes) by
HMST
• 12 Major holdings notification (for Cypriot regulatory purposes) by
HMS Holding
• 13 TR-1 notification (for UK regulatory purposes) by HMST
***
WEBCAST TO DISCUSS 2018 FY IFRS FINANCIAL RESULTS
Date: Friday, April 26, 2019
Time: 1.00 PM (MOSCOW) / 11.00 AM (London) / 12.00 PM (CET)
Speaker:
Inna Kelekhsaeva - Deputy Head of Capital markets
Q&A session:
Kirill Molchanov - First Deputy General Director and Co-Founder
Alexander Rybin - Head of Capital markets
To participate in the conference call, please dial in:
Russia Local: +7 495 646 9315
UK Local: +44 207 194 3759
UK Toll Free: 0800 376 6183
US Local: +1 646 722 4916
US Toll Free: +1 844 286 0643
Conference ID: 62266395#
Title: HMS Group 2018 FY IFRS results
Webcast meeting:
To access the live event, click on the link:
14 https://webcasts.eqs.com/hmsgroup20190426
Please, dial in 5-10 minutes prior to the scheduled start time.
Pre-registration is available.
We will share materials on 15 HMS' investor website ahead of the webcast.
Contacts:
Investor Relations, 16 ir@hms.ru
***
HMS Group is the leading pump and compressor manufacturer, as well as
provider of flow control solutions and related services to the oil and
gas, nuclear and thermal power generation and water utilities sectors in
Russia and the CIS. HMS Group's products are mission-critical elements of
projects across a diverse range of industries. It has participated in a
number of large-scale infrastructure projects in Russia, including
providing pumps and modular equipment to the Vankor oil field and pumping
stations on recent trunk pipelines projects linking Russia's core oil
producing areas to export ports on the Pacific Ocean and Baltic Sea. HMS
Group's global depositary receipts ("GDRs") are listed under the symbol
"HMSG" on the London Stock Exchange.
Press Release Information Accuracy Disclaimer
Information published in press releases was accurate at the time of
publication but may be superseded by subsequent releases or other
information.
LEI: 254900DDFETNLASV8M53
HMS Hydraulic Machines & Systems Group plc
Consolidated Statement of Financial Position at 31 December 2018
(in thousands of Russian Roubles, unless otherwise stated)
31 December 2017
31 December 2018
Restated*
ASSETS
Non-current assets:
Property, plant and equipment 15,492,896 14,563,544
Other intangible assets 1,898,781 663,616
Goodwill 3,092,257 2,937,695
Investments in associates 93,265 84,829
Deferred income tax assets 424,004 377,902
Other long-term assets 26,004 20,541
Investment property 196,480 222,929
Total non-current assets 21,223,687 18,871,056
Current assets:
Inventories 9,088,680 7,776,096
Trade and other receivables and other 12,267,843 11,540,164
financial assets
Contract assets 4,611,700 5,374,888
Current income tax receivable 257,409 178,566
Cash and cash equivalents 6,295,159 4,620,601
Total current assets 32,520,791 29,490,315
TOTAL ASSETS 53,744,478 48,361,371
EQUITY AND LIABILITIES
EQUITY
Share capital 48,329 48,329
Share premium 3,523,535 3,523,535
Treasury shares (461,630) (404,994)
Other reserves 122,730 122,730
Currency translation reserve 123,918 (652,109)
Retained earnings 7,847,636 7,073,645
Equity attributable to the shareholders 11,204,518 9,711,136
of the Company
Non-controlling interests 3,386,155 3,145,950
TOTAL EQUITY 14,590,673 12,857,086
LIABILITIES
Non-current liabilities:
Long-term borrowings 18,198,084 13,065,129
Deferred income tax liability 1,622,627 1,617,238
Retirement benefit obligations 468,324 525,436
Provisions for liabilities and charges 168,687 116,835
Other long-term payables 432,915 204,394
Total non-current liabilities 20,890,637 15,529,032
Current liabilities:
Trade and other payables 13,224,940 11,642,805
Contract liabilities 1,843,380 3,438,395
Short-term borrowings 1,162,133 2,977,261
Provisions for liabilities and charges 709,252 771,877
Retirement benefit obligations 67,497 67,314
Current income tax payable 57,684 72,610
Other taxes payable 1,198,282 1,004,991
Total current liabilities 18,263,168 19,975,253
TOTAL LIABILITIES 39,153,805 35,504,285
TOTAL EQUITY AND LIABILITIES 53,744,478 48,361,371
HMS Hydraulic Machines & Systems Group plc
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the year ended 31 December 2018
(in thousands of Russian Roubles, unless otherwise stated)
2018 2017
Revenue 52,618,880 44,422,177
Cost of sales (40,617,376) (32,535,607)
Gross profit 12,001,504 11,886,570
Distribution and transportation expenses (1,915,880) (1,784,967)
General and administrative expenses (5,635,585) (4,999,086)
Other operating expenses, net (250,135) (547,307)
Operating profit 4,199,904 4,555,210
Finance income 182,188 168,660
Finance costs (1,610,545) (1,775,092)
Share of results of associates (570) (331)
Profit before income tax 2,770,977 2,948,447
Income tax expense (825,028) (878,349)
Profit for the year 1,945,949 2,070,098
Profit attributable to:
1,834,264
Shareholders of the Company 1,688,473
Non-controlling interests 257,476 235,834
Profit for the year 1,945,949 2,070,098
Other comprehensive income/(loss):
Items that will not be reclassified to
profit or loss
Remeasurement of post-employment benefit 101,017 (23,313)
obligations
Items that may be reclassified subsequently
to profit or loss
Currency translation differences 830,112 (69,526)
Currency translation differences of 9,006 (3,564)
associates
Other comprehensive income/(loss) for the 940,135 (96,403)
year
Total comprehensive income for the year 2,886,084 1,973,695
Total comprehensive income
attributable to:
Shareholders of the Company 2,537,407 1,768,256
Non-controlling interests 348,677 205,439
Total comprehensive income for the year 2,886,084 1,973,695
Basic and diluted earnings per ordinary 15.10 16.32
share for profit attributable to the
ordinary shareholders (RR per share)
HMS Hydraulic Machines & Systems Group plc
Consolidated Statement of Cash Flows for the year ended 31 December 2018
(in thousands of Russian Roubles, unless otherwise stated)
2018 2017 Restated*
Cash flows from operating activities
Profit before income tax 2,770,977 2,948,447
Adjustments for:
Depreciation and amortisation 1,842,607 1,541,946
(Gain)/loss from disposal of property, plant (20,457) 45,822
and equipment and intangible assets
Finance income (182,188) (168,660)
Finance costs 1,610,545 1,775,092
Change in retirement benefits obligations 55,878 36,248
Change in warranty provision 102,966 (48,908)
Change in ECL allowance and provision for
impairment of trade and other receivables and 59,546 3,815
other financial assets
Change in provision for obsolete inventories 98,617 163,520
Change in provision for legal claims (19,398) 195,830
Share-based compensation 155,989 93,218
Foreign exchange (gain)/loss, net (13,352) 72,300
Amortisation of government grants (30,806) (16,777)
Change in provision for tax risks, other than (12,366) 14,984
income tax
Impairment of taxes receivable - 6,204
Share of results of associates 570 331
Operating cash flows before working capital 6,419,128 6,663,412
changes
Increase in inventories (1,067,279) (782,888)
Decrease/(increase) in trade and other 977,282 (949,658)
receivables
Decrease/(increase) in contract assets 763,188 (1,808,366)
(Decrease)/increase in contract liabilities (1,595,015) 2,718,357
Increase in current income tax receivable (78,843) (8,916)
(Decrease)/increase in taxes payable (136,304) 247,774
(Decrease)/increase in accounts payable and (722,970) 1,458,773
accrued liabilities
Cash from operations 4,559,187 7,538,488
Income tax paid (1,162,267) (739,534)
Interest paid (1,618,021) (1,687,545)
Interest received 177,390 121,142
Net cash from operating activities 1,956,289 5,232,551
Cash flows from investing activities
Repayment of loans advanced 74,914 65,884
Loans advanced (53,445) (57,507)
Proceeds and expenses from sale of property, 51,266 12,215
plant and equipment and intangible assets, net
Interest received 890 4,040
Purchase of property, plant and equipment, net (1,956,140) (1,921,001)
of VAT
Acquisition of intangible assets, net of VAT (378,521) (238,225)
Inflow of cash and cash equivalents on 165,257 -
acquisition of subsidiary
Net cash used in investing activities (2,095,779) (2,134,594)
Cash flows from financing activities
Repayments of borrowings (11,976,504) (18,561,873)
Proceeds from borrowings 15,223,755 18,126,821
Proceeds from government grant 60,000 78,945
Payment for finance lease (16,580) (6,569)
Buy back of issued shares (56,636) (81,438)
Acquisition of non-controlling interest in (53,736) -
subsidiaries
Dividends related to Long-term Incentive (48,816) (17,696)
Program
Dividends paid to non-controlling shareholders (48,319) (37,513)
of subsidiaries
Dividends paid to the shareholders of the (1,336,860) (961,510)
Company
Net cash from/(used in) financing activities 1,746,304 (1,460,833)
Net increase in cash and cash equivalents 1,606,814 1,637,124
Effect of exchange rate changes on cash and
cash equivalents and effect of translation to 67,744 (6,214)
presentation currency
Cash and cash equivalents at the beginning of 4,620,601 2,989,691
the year
Cash and cash equivalents at the end of the 6,295,159 4,620,601
year
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17 1 EBITDA is defined as operating profit/loss from continuing
operations adjusted for other operating income/expenses, depreciation and
amortisation, amortisation of government grants, impairment of assets,
excess of fair value of net assets acquired over the cost of the
acquisition, defined benefits scheme expense and provisions (including
provision for obsolete inventory, provision for impairment of accounts
receivable, unused vacation allowance, warranty provision, provision for
legal claims, tax provision and other provisions). This measurement basis,
therefore, excludes the effects of a number of non-recurring income and
expenses on the results of the operating segments.
18 2 SG&A expenses = Selling, General and Administrative Expenses =
Distribution and transportation + General and administrative
══════════════════════════════════════════════════════════════════════════
19 i The industrial pumps business segment designs, engineers,
manufactures and supplies a diverse range of pumps and pump-based
integrated solutions to customers in the oil and gas, power generation and
water utilities sectors in Russia, the CIS and internationally. The
business segment's principal products include customized pumps and
integrated solutions as well as pumps built to standard specifications; it
also provides aftermarket maintenance and repair services and other
support for its products.
20 ii The oil and gas equipment and projects business segment
manufactures, installs and commissions modular pumping stations, automated
metering equipment, oil, gas and water processing and preparation units
and other equipment and systems for use primarily in oil extraction and
transportation. The segment's core products are equipment packages and
systems installed inside a self-contained, free-standing structure which
can be transported on trailers and delivered to and installed on the
customer's site as a modular but fully integrated part of the customer's
technological process.
21 iii The compressors business segment designs, engineers,
manufactures and supplies a diverse range of compressors and
compressor-based solutions, including compressor units and compressor
stations, to customers in the oil and gas, metals and mining and other
basic industries in Russia. The business segment's principal products
include customized compressors, series-produced compressors built to
standard specifications, and compressor-based integrated solutions.
22 iv The construction provides construction works for projects for
customers in the oil upstream and midstream, gas upstream.
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ISIN: US40425X4079
Category Code: FR
TIDM: HMSG
LEI Code: 254900DDFETNLASV8M53
OAM Categories: 1.1. Annual financial and audit reports
2.2. Inside information
3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 8364
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============Recent news on HMS Hydraulic Machines & Systems
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