3.1
Consolidated financial statements

Consolidated statement of financial position

at 31 December 2017

(expressed in millions of Russian Roubles, unless otherwise stated)
Note 31 December 2017 31 December 2016
Assets
Non-current assets
Property, plant and equipment 10 278,928 232,316
Investment property 11 5,488 4,590
Goodwill 12 90,276 80,369
Other intangible assets 13 18,442 16,380
Other non-current assets 16 7,708 4,448
Deferred tax assets 28 5,143 5,306
405,985 343,409
Current assets
Inventories 14 99,300 73,801
Indemnification asset 33 106 182
Trade, other accounts receivable and prepayments 16 15,531 28,027
Current income tax receivable 2,384 954
VAT and other taxes receivable 17 14,347 8,922
Cash and cash equivalents 9 27,605 18,190
159,273 130,076
Total assets 565,258 473,485
 
Equity and liabilities
Equity attributable to equity holders of the parent
Share capital 20 2,458 2,458
Share premium 46,212 46,251
Retained earnings 109,655 78,261
Share-based payment reserve 27 117 70
158,442 127,040
Total equity 158,442 127,040
 
Non-current liabilities
Long-term borrowings 19 135,622 110,865
Deferred tax liabilities 28 5,670 6,505
Long-term deferred revenue 5 8
Other non-current liabilities 1,344 1,697
142,641 119,075
Current liabilities
Trade accounts payable 130,766 131,180
Short-term borrowings 19 58,674 45,168
Interest accrued 1,642 1,177
Short-term deferred revenue 1,701 282
Current income tax payable 635 821
Provisions and other liabilities 18 70,757 48,742
264,175 227,370
Total liabilities 406,816 346,445
Total equity and liabilities 565,258 473,485

Consolidated statement of profit or loss

for the year ended 31 December 2017

(expressed in millions of Russian Roubles, unless otherwise stated)
Note 2017 2016
Revenue 22 1,295,008 1,033,667
Cost of sales 23 (986,070) (783,682)
Gross profit 308,938 249,985
 
Selling, general and administrative expenses 23 (259,376) (211,314)
Lease/sublease and other income 24 8,196 6,960
Operating profit 57,758 45,631
 
Finance costs 25 (16,138) (17,372)
Finance income 25 121 54
Net foreign exchange gain 75 340
Profit before tax 41,816 28,653
 
Income tax expense 28 (10,422) (6,362)
Profit for the year 31,394 22,291
 
Profit for the year attributable to:
Equity holders of the parent 31,394 22,291
Basic earnings per share for profit attributable to the equity holders of the parent (expressed in RUB per share) 21 462.45 328.37
Diluted earnings per share for profit attributable to the equity holders of the parent (expressed in RUB per share) 21 462.36 328.36

Consolidated statement of comprehensive income

for the year ended 31 December 2017

(expressed in millions of Russian Roubles, unless otherwise stated)
2017 2016
 
Profit for the year 31,394 22,291
Total comprehensive income for the year, net of tax 31,394 22,291
 
Total comprehensive income for the year attributable to:
Equity holders of the parent 31,394 22,291

Consolidated statement of cash flows

for the year ended 31 December 2017

(expressed in millions of Russian Roubles, unless otherwise stated)
Note 2017 2016
Profit before tax 41,816 28,653
 
Adjustments for:
Depreciation, amortisation and impairment of property, plant and equipment, investment property and intangible assets 23 38,435 30,636
(Gain)/loss on disposal of property, plant and equipment, investment property and intangible assets (61) 47
Finance costs, net 25 16,017 17,318
Impairment of trade, other accounts receivable and prepayments 23 522 247
Share-based compensation expense 27 71 48
Net foreign exchange gain (75) (340)
Other non-cash items 105 (864)
Net cash from operating activities before changes in working capital 96,830 75,745
 
Decrease in trade, other accounts receivable and prepayments 4,290 350
Increase in inventories (25,498) (15,914)
Increase in trade payable 448 27,471
Increase in other accounts payable 9,374 8,149
Net cash flows generated from operations 85,444 95,801
 
Interest paid (15,069) (17,236)
Interest received 59 40
Income tax paid (11,776) (3,690)
Net cash flows from operating activities 58,658 74,915
 
Cash flows from investing activities
Purchase of property, plant and equipment (78,355) (68,694)
Acquisition of businesses, net of cash acquired 7 (6,467) (6,658)
Proceeds from disposal of property, plant and equipment, investment property and intangible assets 776 589
Purchase of other intangible assets (3,438) (2,516)
Proceeds from disposal of available-for-sale investments 210 –
Net cash flows used in investing activities (87,274) (77,279)
 
Cash flows from financing activities
Proceeds from loans 19 100,780 131,563
Repayment of loans 19 (62,700) (119,922)
Purchase of treasury shares (63) –
Net cash flows generated from financing activities 38,017 11,641
 
Effect of exchange rate changes on cash and cash equivalents 14 (45)
Net increase in cash and cash equivalents 9,415 9,232
 
Movements in cash and cash equivalents
Cash and cash equivalents at the beginning of the year 9 18,190 8,958
Net increase in cash and cash equivalents 9,415 9,232
Cash and cash equivalents at the end of the year 9 27,605 18,190

Consolidated statement of changes in equity

for the year ended 31 December 2017

(expressed in millions of Russian Roubles, unless otherwise stated)
Attributable to equity holders of the parent
Number of shares Share capital Share premium Share-based payment reserve Retained earnings Total shareholders’ equity Total
 
Balance as at 1 January 2016 67,882,421 2,458 46,253 37 55,970 104,718 104,718
 
Profit for the period – – – – 22,291 22,291 22,291
Total comprehensive income for the period – – – – 22,291 22,291 22,291
 
Share-based payment compensation (Note 27) – – – 31 – 31 31
Transfer and waiving of vested equity rights 1,919 – (2) 2 – – –
Balance as at 31 December 2016 67,884,340 2,458 46,251 70 78,261 127,040 127,040
 
Balance as at 1 January 2017 67,884,340 2,458 46,251 70 78,261 127,040 127,040
 
Profit for the period – – – – 31,394 31,394 31,394
Total comprehensive income for the period – – – – 31,394 31,394 31,394
 
Share-based payment compensation (Note 27) – – – 71 – 71 71
Transfer and waiving of vested equity rights 2,408 – (39) (24) – (63) (63)
Balance as at 31 December 2017 67,886,748 2,458 46,212 117 109,655 158,442 158,442
The accompanying notes are the integral part of these consolidated financial statements.