3.1
Consolidated financial statements

Consolidated Statement of Financial Position

at 31 December 2018

(expressed in millions of Russian Roubles, unless otherwise stated)

Note 31 December 2018 31 December 2017 RestatedCertain amounts shown here do not correspond to the consolidated financial statements for the year ended 31 ­December 2017 and reflect adjustments described in Note 4.
Assets
Non-current assets
Property, plant and equipment 10 303,802 278,928
Investment property 11 6,173 5,488
Goodwill 12 94,627 90,276
Other intangible assets 13 22,126 18,442
Investments in associates and joint ventures 203 −
Other non-current assets 16 8,015 7,708
Deferred tax assets 29 5,013 5,143
439,959 405,985
Current assets
Inventories 14 115,990 99,300
Indemnification asset − 106
Trade, other accounts receivable and prepayments 16 14,172 15,531
Current income tax receivable 6,167 2,384
VAT and other taxes receivable 17 10,143 14,347
Cash and cash equivalents 9 24,368 27,605
170,840 159,273
Total assets 610,799 565,258
Equity and liabilities
Equity attributable to equity holders of the parent
Share capital 21 2,458 2,458
Share premium 46,192 46,212
Retained earnings 116,707 109,655
Share-based payment reserve 28 118 117
165,475 158,442
Total equity 165,475 158,442
Non-current liabilities
Long-term borrowings 20 147,329 135,622
Deferred tax liabilities 29 6,166 5,670
Long-term contract liabilities − 5
Other non-current liabilities 626 1,344
154,121 142,641
Current liabilities
Trade accounts payable 154,873 130,766
Short-term borrowings 20 60,435 58,674
Interest accrued 1,770 1,642
Short-term contract liabilities 19 1,664 1,815
Current income tax payable 725 635
Provisions and other liabilities 18 71,736 70,643
291,203 264,175
Total liabilities 445,324 406,816
Total equity and liabilities 610,799 565,258

Consolidated Statement of Profit or Loss

for the year ended 31 December 2018

(expressed in millions of Russian Roubles, unless otherwise stated)

Note 2018 2017 RestatedCertain amounts shown here do not correspond to the consolidated financial statements for the year ended 31 ­December 2017 and reflect adjustments described in Note 4.
Revenue 23 1,532,537 1,295,008
Cost of sales 24 (1,162,817) (986,070)
Gross profit 369,720 308,938
Selling, general and administrative expenses 24 (323,358) (259,146)
Net impairment losses on financial assets 16 (501) (230)
Lease/sublease and other income 25 12,293 8,196
Operating profit 58,154 57,758
Finance costs 26 (18,846) (16,138)
Finance income 26 179 121
Net foreign exchange (loss)/gain (447) 75
Profit before tax 39,040 41,816
Income tax expense 29 (10,398) (10,422)
Profit for the year 28,642 31,394
Profit for the year attributable to:
Equity holders of the parent 28,642 31,394
Basic earnings per share for profit attributable to the equity holders of the parent (expressed in RUB re) 22 421.90 462.45
Diluted earnings per share for profit attributable to the equity holders of the parent (expressed in RUB re) 22 421.87 462.36

Consolidated Statement of Comprehensive Income

for the year ended 31 December 2018

(expressed in millions of Russian Roubles, unless otherwise stated)

2018 2017
Profit for the year 28,642 31,394
Total comprehensive income for the year, net of tax 28,642 31,394
Total comprehensive income for the year attributable to:
Equity holders of the parent 28,642 31,394

Consolidated Statement of Cash Flows

for the year ended 31 December 2018

(expressed in millions of Russian Roubles, unless otherwise stated)

Note 2018 2017 RestatedCertain amounts shown here do not correspond to the consolidated financial statements for the year ended 31 ­December 2017 and reflect adjustments described in Note 4.
Profit before tax 39,040 41,816
Adjustments for:
Depreciation, amortisation and impairment of property, plant and equipment, investment property and intangible assets 24 49,474 38,435
Gain on disposal of property, plant and equipment, investment property and intangible assets (213) (61)
Finance costs, net 26 18,667 16,017
Net impairment losses on financial assets 16 501 230
Impairment of prepayments 16 216 292
Share-based compensation expense 28 72 71
Net foreign exchange loss/(gain) 447 (75)
Other non-cash items (377) 105
Net cash from operating activities before changes in working capital 107,827 96,830
Decrease in trade, other accounts receivable and prepayments 4,360 4,290
Increase in inventories (16,690) (25,498)
Increase in trade payable 24,183 448
Increase in other accounts payable and contract liabilities 7,756 9,374
Net cash flows generated from operations 127,436 85,444
Interest paid (16,893) (15,069)
Interest received 75 59
Income tax paid (12,584) (11,776)
Net cash flows from operating activities 98,034 58,658
Cash flows from investing activities
Purchase of property, plant and equipment (73,494) (78,355)
Acquisition of businesses, net of cash acquired 7 (14,524) (6,467)
Proceeds from disposal of property, plant and equipment, investment property and intangible assets 735 776
Purchase of other intangible assets (5,274) (3,438)
Acquisition of interest in associates and joint ventures (203) −
Proceeds from disposal of available-for-sale investments − 210
Net cash flows used in investing activities (92,760) (87,274)
Cash flows from financing activities
Proceeds from loans 20 108,054 100,780
Repayment of loans 20 (94,810) (62,700)
Purchase of treasury shares (90) (63)
Dividends paid to equity holders of the parent 21 (21,590) −
Net cash flows (used in)/from financing activities (8,436) 38,017
Effect of exchange rate changes on cash and cash equivalents (75) 14
Net (decrease)/increase in cash and cash equivalents (3,237) 9,415
Movements in cash and cash equivalents
Cash and cash equivalents at the beginning of the year 9 27,605 18,190
Net (decrease)/increase in cash and cash equivalents (3,237) 9,415
Cash and cash equivalents at the end of the year 9 24,368 27,605

Consolidated Statement of Changes In Equity

for the year ended 31 December 2018

(expressed in millions of Russian Roubles, unless otherwise stated)

Attributable to equity holders of the parent Total
Number of shares Share capital Share premium Share-based payment reserve Retained earnings Total shareholders’ equity
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 28) − − − 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
Balance as at 1 January 2018 67,886,748 2,458 46,212 117 109,655 158,442 158,442
Profit for the period − − − − 28,642 28,642 28,642
Total comprehensive income for the period − − − − 28,642 28,642 28,642
Dividends (Note 21) − − − − (21,590) (21,590) (21,590)
Share-based payment compensation (Note 28) − − − 72 − 72 72
Transfer and waiving of vested equity rights 3,351 − (20) (71) − (91) (91)
Balance as at 31 December 2018 67,890,099 2,458 46,192 118 116,707 165,475 165,475
The accompanying notes are the integral part of these consolidated financial statements.