| Note | 2013 | 2012 | |
|---|---|---|---|
| Traffic revenue | 5 | 8,086.7 | 7,118.2 |
| Other revenue | 6 | 1,049.0 | 1,019.9 |
| Revenue | 9,135.7 | 8,138.1 | |
| Operating costs, less staff costs and depreciation and amortisation | 7 | (6,671.7) | (6,191.4) |
| Staff costs | 8 | (1,423.9) | (1,241.8) |
| Depreciation and amortisation | 21, 22 | (334.7) | (269.1) |
| Other operating costs and income, net | 9 | (83.9) | (78.1) |
| Operating costs | (8,514.2) | (7,780.4) | |
| Operating profit | 621.5 | 357.7 | |
| Finance income | 10 | 84.3 | 166.4 |
| Finance costs | 10 | (276.7) | (166.7) |
| Share of financial results of equity accounted investments | 17 | 1.2 | 0.3 |
| Profit before income tax | 430.3 | 357.7 | |
| Income tax | 11 | (200.0) | (191.4) |
| PROFIT FOR THE YEAR | 230.3 | 166.3 | |
| Profit/(loss) attributable to: | |||
| Shareholders of the Company | 251.7 | 222.1 | |
| Non-controlling interest | (21.4) | (55.8) | |
| PROFIT FOR The YEAR | 230.3 | 166.3 | |
| Basic earnings per share (US cents) | 23.9 | 21.3 | |
| Diluted earnings per share (US cents) | 23.9 | 21.1 | |
| Weighted average number of shares outstanding (millions) | 1,054.1 | 1,044.2 | |
| Weighted average number of diluted shares outstanding (millions) | 1,054.1 | 1,054.9 |
Approved on 12 March 2014 and signed on behalf of management.
V.G. Saveliev
General Director
Sh.R. Kurmashov
Deputy General Director for Finance and Network and Revenue Management
Consolidated Statement of Comprehensive Income for the year ended 31 December 2013 (All amounts in millions of US Dollars, unless otherwise stated)
| Note | 2013 | 2012 | |
|---|---|---|---|
| Profit for the year | 230.3 | 166.3 | |
| Other comprehensive (loss)/income: | |||
| Items that may be reclassified subsequently to profit or loss: | |||
| Net change in fair value of available-for-sale financial assets transferred to profit for the year | 5.2 | (0.1) | |
| Translation from the functional currency to the presentation currency | (124.7) | 100.3 | |
| (Loss)/gain on the change in fair value of derivative financial instruments | 24 | (33.7) | 26.1 |
| Deferred tax related to the (loss)/gain on the change in fair value of derivative financial instruments | 11 | 0.1 | (2.3) |
| Other comprehensive (loss)/income for the year | (153.1) | 124.0 | |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 77.2 | 290.3 | |
| Total comprehensive income /(loss) attributable to: | |||
| Shareholders of the Company | 86.4 | 352.3 | |
| Non-controlling interest | (9.2) | (62.0) | |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 77.2 | 290.3 |
Consolidated Statement of Financial Position as at 31 December 2013 (All amounts in millions of US Dollars, unless otherwise stated)
| Note | 31 December 2013 | 31 December 2012 | |
|---|---|---|---|
| ASSETS | |||
| Current assets | |||
| Cash and cash equivalents | 12 | 570.1 | 496.2 |
| Short-term financial investments | 8.3 | 4.8 | |
| Accounts receivable and prepayments | 14 | 1,701.6 | 1,553.4 |
| Current income tax prepayment | 14.6 | 68.8 | |
| Aircraft lease security deposits | 13 | 12.4 | 8.1 |
| Expendable spare parts and inventories | 15 | 150.5 | 141.1 |
| Derivative financial instruments | 24 | 31.6 | — |
| Assets classified as held for sale | 16 | — | 60.1 |
| Total current assets | 2,489.1 | 2,332.5 | |
| Non-current assets | |||
| Deferred tax assets | 11 | 66.4 | 95.7 |
| Investments in associates | 17 | 3.8 | 3.2 |
| Long-term financial investments | 18 | 186.3 | 200.2 |
| Aircraft lease security deposits | 13 | 33.3 | 35.4 |
| Other non-current assets | 19 | 181.9 | 270.4 |
| Prepayments for aircraft | 20 | 376.4 | 445.6 |
| Property, plant and equipment | 21 | 2,712.5 | 2,435.9 |
| Intangible assets | 22 | 102.3 | 108.7 |
| Goodwill | 23 | 203.5 | 225.8 |
| Derivative financial instruments | 24 | 35.9 | 92.5 |
| Total non-current assets | 3,902.3 | 3,913.4 | |
| TOTAL ASSETS | 6,391.4 | 6,245.9 | |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Derivative financial instruments | 24 | 6.5 | — - |
| Accounts payable and accrued liabilities | 25 | 1,107.7 | 989.1 |
| Unearned traffic revenue | 499.1 | 502.9 | |
| Deferred revenue related to frequent flyer programme | 26 | 17.6 | 11.8 |
| Provisions | 27 | 26.9 | 4.4 |
| Finance lease liabilities | 28 | 265.4 | 246.3 |
| Short-term borrowings and current portion of long-term borrowings | 29 | 153.6 | 466.0 |
| Liabilities directly related to assets classified as held for sale | 16 | — | 25.5 |
| Total current liabilities | 2,076.8 | 2,246.0 | |
| Non-current liabilities | |||
| Long-term borrowings | 30 | 255.9 | 240.0 |
| Finance lease liabilities | 28 | 1,935.5 | 1,635.4 |
| Provisions | 27 | 50.6 | 3.0 |
| Deferred tax liabilities | 11 | 50.3 | 73.7 |
| Deferred revenue related to frequent flyer programme | 26 | 56.9 | 45.2 |
| Derivative financial instruments | 24 | 138.9 | 145.4 |
| Other non-current liabilities | 31 | 161.9 | 230.9 |
| Total non-current liabilities | 2,650.0 | 2,373.6 | |
| TOTAL LIABILITIES | 4,726.8 | 4,619.6 | |
| Equity | |||
| Share capital | 33 | 51.6 | 51.6 |
| Treasury shares reserve | (109.2) | (129.5) | |
| Accumulated profit on disposal of treasury shares | 50.7 | 49.2 | |
| Investment revaluation reserve | (0.3) | (0.4) | |
| Accumulated currency translation reserve | (303.5) | (167.6) | |
| Hedge reserve | 24 | (11.7) | 17.0 |
| Share-based payment reserve | 39 | — | 6.8 |
| Retained earnings | 2,160.1 | 1,948.1 | |
| Equity attributable to shareholders of the Company | 1,837.7 | 1,775.2 | |
| Non-controlling interest | (173.1) | (148.9) | |
| TOTAL EQUITY | 1,664.6 | 1,626.3 | |
| TOTAL LIABILITIES AND EQUITY | 6,391.4 | 6,245.9 |
Consolidated Statement of Cash Flows for the year ended 31 December 2013 (All amounts in millions of US Dollars, unless otherwise stated)
| Note | 2013 | 2012 | |
|---|---|---|---|
| Cash flows from operating activities: | |||
| Profit before income tax | 430.3 | 357.7 | |
| Adjustments for: | |||
| Depreciation and amortisation | 21,22 | 334.7 | 269.1 |
| Change in impairment provision for accounts receivable and prepayments | 14 | (26.2) | 12.3 |
| Loss on accounts receivable write-off | 9 | 19.3 | 12.3 |
| Change in impairment provision for obsolete expendable spare parts and inventory | 11.8 | (0.5) | |
| Accrual/(release) of provision for impairment of property, plant and equipment | 21 | 5.8 | (0.3) |
| Non-cash operations, related to assets classified as held for sale | (0.4) | — | |
| Loss on disposal of property, plant and equipment | 6.1 | 9.3 | |
| Accounts payable write-off | 9 | (3.7) | (9.2) |
| Share of financial results in equity accounted investments | 17 | (1.2) | (0.3) |
| (Gain)/loss on sale of investments and accrual of provision for impairment of investments | 10 | (10.4) | 10.0 |
| Loss on change in the fair value of derivative financial instruments | 10 | 29.5 | 33.0 |
| Change in provisions | 27 | 51.5 | (1.7) |
| Interest expense | 10 | 104.3 | 110.9 |
| Foreign exchange loss/(gain) | 10 | 105.1 | (89.2) |
| Loss on write-off of VAT recoverable | 9 | 0.6 | 3.3 |
| Change in the share-based payment provision | 39 | (1.1) | 0.2 |
| Change in other provisions and other assets impairments | 6.1 | (1.7) | |
| Other operating income | (7.0) | (4.7) | |
| Other finance costs and income, net | 0.5 | (48.4) | |
| Gain on derivative financial instruments, net | 10 | (19.5) | (2.1) |
| Dividend income | (1.5) | (3.6) | |
| Loss on goodwill write-off | 9 | — | 43.6 |
| Total operating cash flows before working capital changes | 1,034.6 | 700.0 | |
| Change in accounts receivable and prepayments | (94.7) | (216.1) | |
| Change in expendable spare parts and inventories | (32.0) | (44.9) | |
| Change in accounts payable and accrued liabilities | 136.4 | 232.7 | |
| Total operating cash flows after working capital changes | 1,044.3 | 671.7 | |
| Restricted cash | 12 | (1.9) | — |
| Income taxes paid | (133.8) | (153.0) | |
| Income tax received | 0.3 | 21.9 | |
| Net cash flows from operating activities | 908.9 | 540.6 | |
| Cash flows from investing activities: | |||
| Proceeds from sale of investments | 7.2 | 23.0 | |
| Purchases of investments | (11.3) | (12.7) | |
| Proceeds from sale of equity accounted investments | — | 1.8 | |
| Proceeds from sale of subsidiary | 16 | — | 36.2 |
| Proceeds from sale of property, plant and equipment | 2.1 | 87.5 | |
| Purchases of property, plant and equipment and intangible assets | (138.5) | (167.1) | |
| Dividends received | 1.8 | 3.4 | |
| Prepayments for aircraft | (224.6) | (216.2) | |
| Return of prepayments for aircraft | 244.4 | 292.6 | |
| Return/(payment) of lease security deposits, net | 6.0 | (8.0) | |
| Net cash flows (used in)/received from investing activities | (112.9) | 40.5 | |
| Cash flows from financing activities: | |||
| Proceeds from borrowings | 204.1 | 605.5 | |
| Repayment of borrowings | (457.8) | (703.9) | |
| Repayment of the principal element of finance lease liabilities | (307.5) | (291.9) | |
| Interest paid | (89.7) | (75.3) | |
| Proceeds from sale of treasury shares | 11.5 | 9.9 | |
| Proceeds from sale of treasury shares to non-controlling shareholders | 0.4 | — | |
| Purchase of treasury shares | (0.4) | (0.2) | |
| Dividends paid | (40.5) | (62.2) | |
| (Purchase of)/proceeds from derivative financial instruments | (4.0) | 16.5 | |
| Net cash used in financing activities | (683.9) | (501.6) | |
| Effect of exchange rate fluctuations on cash and cash equivalents | (38.2) | 23.6 | |
| Net increase in cash and cash equivalents | 73.9 | 103.1 | |
| Cash and cash equivalents at the beginning of the year | 496.2 | 393.1 | |
| Cash and cash equivalents at the end of the year | 12 | 570.1 | 496.2 |
| Non-cash transactions as part of the investing activities: | |||
| Property, plant and equipment acquired under finance leases | 584.2 | 685.2 | |
Consolidated Statement of Changes in Equity for the year ended 31 December 2013 (All amounts in millions of US Dollars, unless otherwise stated)
| Note | Equity attributable to shareholders of the Company | Non-controlling interest | Total equity | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Share capital | Accumulated profit on disposal of treasury shares less treasury shares reserve | Investment revaluation reserve | Accumulated currency translation reserve | Hedge reserve | Share-based payment reserve | Retained earnings | Total | ||||
| 1 January 2012 | 51.6 | (83.4) | (0.3) | (274.1) | (6.8) | 10.7 | 1,790.7 | 1,488.4 | (84.2) | 1,404.2 | |
| Profit/(loss) for the year | — | — | — | — | — | — | 222.1 | 222.1 | (55.8) | 166.3 | |
| Translation from the functional currency to the presentation currency | — | — | (0.1) | 106.5 | — | — | — | 106.4 | (6.2) | 100.2 | |
| Gain from the change in fair value of derivative financial instruments less related deferred tax | 24,11 | — | — | — | — | 23.8 | — | — | 23.8 | — | 23.8 |
| Total other comprehensive income/(loss) | — | — | — | — | — | — | — | 130.2 | (6.2) | 124.0 | |
| Total comprehensive income/(loss) | — | — | — | — | — | — | — | 352.3 | (62.0) | 290.3 | |
| Share-based payments | — | — | — | — | — | (3.9) | — | (3.9) | — | (3.9) | |
| Additions of treasury shares | — | (0.2) | — | — | — | — | — | (0.2) | — | (0.2) | |
| Disposal of treasury shares | — | 14.6 | — | — | — | — | — | 14.6 | — | 14.6 | |
| Translation from the functional currency to the presentation currency | — | (11.3) | — | — | — | — | — | (11.3) | — | (11.3) | |
| Dividends declared | — | — | — | — | — | — | (64.7) | (64.7) | (2.7) | (67.4) | |
| 31 December 2012 | 51.6 | (80.3) | (0.4) | (167.6) | 17.0 | 6.8 | 1,948.1 | 1,775.2 | (148.9) | 1,626.3 | |
| Profit/(loss) for the year | — | — | — | — | — | — | 251.7 | 251.7 | (21.4) | 230.3 | |
| Translation from the functional currency to the presentation currency | — | — | 0.1 | (135.9) | — | — | (1.1) | (136.9) | 12.2 | (124.7) | |
| Loss on the change in fair value of derivative financial instruments less related deferred tax | 24,11 | — | — | — | — | (28.4) | — | — | (28.4) | — | (28.4) |
| Total other comprehensive (loss)/income | — | — | — | — | — | — | — | (165.3) | — | (153.1) | |
| Total comprehensive income/(loss) | — | — | — | — | — | — | — | 86.4 | (9.2) | 77.2 | |
| Disposal of a subsidiary | 16 | — | — | — | — | — | — | — | — | (10.9) | (10.9) |
| Share-based payments | — | — | — | — | — | (6.8) | — | (6.8) | — | (6.8) | |
| Additions of treasury shares | — | (0.4) | — | — | — | — | — | (0.4) | — | (0.4) | |
| Disposal of treasury shares | — | 16.9 | — | — | — | — | — | 16.9 | — | 16.9 | |
| Translation from the functional currency to the presentation currency | — | 5.3 | — | — | (0.3) | — | 0.9 | 5.9 | (0.5) | 5.4 | |
| Sale of treasury shares to non-controlling shareholders | — | — | — | — | — | — | — | — | 0.4 | 0.4 | |
| Dividends declared | — | — | — | — | — | — | (39.5) | (39.5) | (4.0) | (43.5) | |
| 31 December 2013 | 51.6 | (58.5) | (0.3) | (303.5) | (11.7) | — | 2,160.1 | 1,837.7 | (173.1) | 1,664.6 | |
The consolidated statement of changes in equity should be read in conjunction with the notes set out on pages 132 to 165 which are forming part of the consolidated financial statements
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