Consolidated Statement of Cash Flows

08

for the year ended 31 December 2011

In millions of RUB

Note Year ended
31 December 2011
Year ended
31 December 2010
OPERATING ACTIVITIES
Profit before taxation 28,296 15,630
Adjustments for:
Depreciation, amortisation and impairment 6,051 5,777
Reversal of impairment loss 12 (190) — 
Loss on disposal of fixed assets 12 24 262
Interest expense 14 883 437
Interest income 13 (819) (703)
Dividend income 13 (5) (78)
Gain on disposal of investments 13 —  (731)
Share of profit of associates 17 (2,318) — 
Foreign exchange loss 2,967 — 
Loss from revaluation of derivatives 14 446 — 
Operating profit before changes in working capital and provisions 35,335 20,594
Increase in inventories (2,379) (869)
Decrease/(increase) in trade and other receivables 4,499 (1,953)
Increase in trade and other payables 1,184 594
Cash flows used in operations before income taxes and interest paid 38,639 18,366
Income tax paid (5,399) (2,940)
Interest paid (865) (293)
Cash flows from operating activities 32,375 15,133
INVESTING ACTIVITIES
Loans repaid/ (issued) 3,125 (4,376)
Acquisition of intangible assets (115) (191)
Acquisition of property, plant and equipment (12,905) (13,040)
Proceeds from disposal of property, plant and equipment 527 49
Proceeds from disposal of investments 1,391 2,359
Acquisition of investments in associates (471)
Acquisition of investments (950) (1,580)
Interest received 819 703
Dividends received 1,840 78
Cash and cash equivalents included in investments in associates upon deconsolidation —  (977)
Cash flows used in investing activities (6,739) (16,975)
FINANCING ACTIVITIES
Proceeds from borrowings 38,967 21,182
Repayment of borrowings (19,999) (16,110)
Acquisition of treasury shares —  (75)
Proceeds from disposal of treasury shares 791 — 
Acquisition of non-controlling interests (9,196) (3)
Disposal of non-controlling interests 9,864 42
Dividends paid to non-controlling interests (1,676) (859)
Dividends paid to shareholders of the Parent (32,253) (2,469)
Finance leases paid (487) (227)
Cash flows (used in)/from financing activities (13,989) 1,481
Net increase/(decrease) in cash and cash equivalents 11,647 (361)
Cash and cash equivalents at beginning of year 5,261 5,622
Effect of changes in exchange rates 38
CASH AND CASH EQUIVALENTS AT END OF YEAR 16,946 5,261

The consolidated statement of comprehensive income is to be read in conjunction with the notes to, and forming part of, the consolidated financial statements.