Tatiana Valerievna Petrova
deputy of the Economics and Finance General Manager

The results of Tyumenergo activities show the high potential of the company, which is slowly being realised thanks to the effective financial and economic policies of the company and complete transparency, which assures high level of trust from the shareholders, investors and consumers.

6.1

Indicators of the Company`s Financial Status and Sources of Funding

As JSC Tyumenenergo operates in capital-intensive sector, the Company`s assets are characterized by a significant proportion of non-current assets (92%), and the liabilities — by considerable amount of loans (11, 505 mln RUB).

mln RUB
Indicator 31 December 2012 31 December 2013 31 December 2014 Deviation 2014/2013
abs. %
Total assets 141 400 133 390 135 470 2 080 1,6
Noncurrent asset value 133 501 127 082 124 706 -2 376 -1,9
Current asset value 7 899 6 308 10 764 4 456 70, 6
Total liabilities 141 400 133 390 135 470 2 080 1,6
Equity 113 756 111 707 111 101 -606 -0,5
Long-term liabilities 14 372 15 302 14 413 -889 -5,8
Short-term liabilities 13 272 6 381 9 956 3 575 56, 0

Assets. As of 31 December 2014, the Company`s fixed assets were revaluated (Order No. 396 dated 07 October 2014 On Revaluation of Fixed Assets of JSC Tyumenenergo). Because of the revaluation, residual value of fixed assets decreased by 3,261 mln RUB. Devaluation amounting to 2,764 mln RUB was booked to Additional Paid-in Capital, and that amounting to 497 mln RUB — to Other Expenses (Profit and Loss Statement).

During the reporting period the Company`s current assets amounted to 10, 764 mln RUB (+70.6% against 2013).

The largest share in the Company`s current assets is accounted for by receivables — 31% (3,338 mln RUB), and cash — 56.6% (6,090 mln RUB).

Positive dynamics as per the line Cash as of year-end 2014 amounted to 4,154 mln RUB (+215% against 2013) owing to financial and economic operations of the Company (financing of investment programs subject to the actual contracts, refund of taxes and chargers (adjusted income tax returns for 2013 were filed) resulted from receipt of bid bonds to ensure tender procedures, receipt of interest for placement of funds under the terms and conditions of minimum required balance, receipt of advances within the framework of network connection operations, etc.).

Liabilities. As of 31 December 2014, amount of the Company`s authorized capital complies with the Company`s Articles of Association and is 27, 373.9 mln RUB.

Following the results of 2014, long-term liabilities of JSC Tyumenenergo are recorded for mln RUB (-5.8% against 2013). The decrease is due to switching of part of the debt from the long-term to the short-term liabilities in accordance with the requirements of Accounting Regulations 4/99 Accounting Reports of an Organization and with the Company`s accounting policy.

Short-term liabilities are at the level of 9,956 mln RUB (+56% against 2013).

Following dynamics within this framework were observed:

  • Following the results of 2014, Loans (Line 1510 of the Balance Sheet) amounted to 2,837 mln RUB (+2,832 mln RUB against 2013) owing to refinancing of the short-term debt on investment loans of JSC Tyumenenergo attracted in 2011;
  • Accounts Payable (Line 1520 of the Balance Sheet) amounted to 5,764 mln RUB (+10.5% against 2013). Growth in the debt is due to implementation of work within the framework of the Company`s investment program, and current tax liability and payables to the state non-budgetary funds;
  • The amount of Estimated Liabilities (Line 1540 of the Balance Sheet) was 1,137 mln RUB (+13.8% against 2013), including:
    • Provisions for vacation pay of 511 mln RUB;
    • Provisions for payment of annual remuneration of 473 mln RUB;
    • Other estimated liabilities of 153 mln RUB.

Net assets. Shares of JSC Tyumenenergo are not traded in the regulated securities market, therefore, instead of Market Capitalization, company calculates Net assets value.

As of 31 December 2014, net assets value is 111, 101 mln RUB, which exceeds the amount of the authorized capital that is the criterion of sustainability of the Company`s financial standing.

Assets Profile as of 31 December 2014

Assets Profile as of <nobr>31</nobr> December <nobr>2014</nobr>

Liabilities Profile as of 31 December 2014

Liabilities Profile as of <nobr>31</nobr> December <nobr>2014</nobr>

Dynamics of Assets Profile, mln RUB

Dynamics of Assets Profile, mln RUB

Dynamics of Liabilities Profile, mln RUB

Dynamics of Liabilities Profile, mln RUB

The Company`s Receivables/Payables Profile

Receivables Profile as of 31 December 2014

Receivables Profile as of <nobr>31</nobr> December <nobr>2014</nobr>
mln RUB
Periods
2012 2013 2014
Receivables (line 1230 f.1) including: 3 084 3 130 3 338
Long-term receivables (line 1231 f.1) 164 194 187
Short-term receivables (line 1231 f.1) including: 2 920 2 936 3 151
Purchaser and clients 2 394 2 182 2 678
Advance payments issued 356 296 239

Payables Profile as of 31 December 2014

Payables Profile as of <nobr>31</nobr> December <nobr>2014</nobr>
mln RUB
Periods
2012 2013 2014
Payables (line 1520 f.1 + line 1450 f.1) including: 7 097 5 565 5 973
Long-term payables (line 1450 f.1) 1350 347 208
Short-term payables (line 1520 f.1) including: 5 747 5 218 5 765
Suppliers and contractors 1 954 2 201 2 383
Advance payments received 2 048 1 527 1 574
Other payables 1 745 1 490 1 808

Control and monitoring of the reporting on receivables and payables is made based on SAP ERP program, in real-time mode.

Following the results of 2014, the share of overdue receivables is 1.9% (65 mln RUB) of the total accounts receivable. The Company deals with overdue accounts receivable using both non-judicial (lodging a claim for repayment of debts) and judicial methods. Because “the last mile” issue has not been resolved for the time being, the major troubled debtors are Belozyorny GPK and Nizhnevartovsky GPK. As of 31 December 2014, the total amount of provisions for doubtful debts amounted to 5,114 mln RUB and 5,090 mln RUB of them accrue to the above consumers.

Following the results of 2014, the share of overdue accounts payable is 3.6% (213 mln RUB); the largest share (87% of the overdue payables) accrues to debts on the advances received for network connection services. Work on minimization of overdue liabilities is conducted on an ongoing basis.