CONSOLIDATED INTERIM FINANCIAL STATEMENTS AT 30 SEPTEMBER 2018
INDEX TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS AT 30 SEPTEMBER 2018 CONTENTS Page CONSOLIDATED INTERIM BALANCE SHEETS... 1-2 CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME... 3 CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY... 4-5 CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS... 6 CONSOLIDATED INTERIM EBITDA INFORMATION... 7 CONSOLIDATED INTERIM SEGMENT INFORMATION... 8-9 CONSOLIDATED INTERIM FINANCIAL INCOME AND EXPENSES... 10
CONSOLIDATED INTERIM BALANCE SHEETS AT 30 SEPTEMBER 2018 AND 31 DECEMBER 2017 Audited 30 September 2018 31 December 2017 ASSETS Current assets: Cash and cash equivalents 249,643 147,098 Trade receivables 1,104,692 750,013 Due from related parties 2,057 1,660 Biological assets 172,797 111,833 Inventories 519,126 421,422 Derivative financial instruments 837 503 Other current assets 161,702 130,166 Non-current asset classified as held for sale 8,692 2,758 Total current assets 2,219,546 1,565,453 Non-current assets: Trade receivables 342 1,374 Biological assets 44,633 50,090 Available-for-sale investments - 1,714 Financial assets - 7,016 Financial assets measured at fair value through other comprehensive income 5,506 - Investment in associate 19,896 19,896 Property, plant and equipment 2,257,237 2,186,331 Investment property 372,359 369,796 Intangible assets 24,957 20,478 Deferred income tax assets 7,170 4,066 Other non-current assets 20,223 16,991 Total non-current assets 2,752,323 2,677,752 TOTAL ASSETS 4,971,869 4,243,205 1
CONSOLIDATED INTERIM BALANCE SHEETS AT 30 SEPTEMBER 2018 AND 31 DECEMBER 2017 Audited 30 September 2018 31 December 2017 LIABILITIES AND EQUITY Current liabilities Short-term borrowings and debt securities in issue 728,055 567,737 Derivative financial instruments 3,059 86 Other financial liabilities 9,798 5,022 Trade payables 1,143,666 729,953 Due to related parties 5,200 3,875 Current income tax liabilities 4,012 1,548 Provisions for employee benefits 2,167 2,973 Other current liabilities 191,320 111,591 Total current liabilities 2,087,277 1,422,785 Non-current liabilities Long-term borrowings and debt securities in issue 2,212,215 1,500,554 Derivative financial instruments 120,171 121,075 Trade payables 69,538 70,356 Deferred income tax liabilities 141,772 146,322 Provisions for employee benefits 109,222 93,288 Other non-current liabilities - 6,140 Total non-current liabilities 2,652,918 1,937,735 Total liabilities 4,740,195 3,360,520 Share capital 225,943 225,943 Adjustment to share capital 200,871 200,871 Total paid-in capital 426,814 426,814 Treasury shares (43,677) (43,677) Contribution from shareholders 5,323 5,323 Revaluation of property, plant and equipment 616,266 632,700 Actuarial losses arising from defined benefit plans (35,017) (28,693) Financial assets measured at fair value through other comprehensive income (1,510) - Currency translation reserves 22,921 14,774 Accumulated losses (691,668) (560,285) Net loss for the period (625,421) (147,817) Equity attributable to owners of the parent company (325,969) 299,139 Non-controlling interests 557,643 583,546 Total equity 231,674 882,685 TOTAL LIABILITIES AND EQUITY 4,971,869 4,243,205 2
CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME FOR THE NINE - MONTH PERIODS ENDED AT 30 SEPTEMBER 1 January - 1 January - 30 September 2018 30 September 2017 Revenue 3,706,531 3,004,240 Cost of sales (2,647,493) (2,190,968) Gross profit 1,059,038 813,272 Selling and marketing expenses (473,364) (411,015) General administrative expenses (154,976) (144,191) Research and development expenses (28,643) (24,975) Other operating income 20,105 12,544 Other operating expenses (36,968) (20,744) Operating profit 385,192 224,891 Financial income 475,359 146,883 Financial expense (1,480,313) (427,097) Loss before taxation on income (619,762) (55,323) Taxation on income (5,999) (10,395) Loss for the period (625,761) (65,718) Attributable to: (625,761) (65,718) Non-controlling interests (340) 29,021 Owners of the parent company (625,421) (94,739) 3
CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY FOR THE NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2018 AND 2017 Attributable to equity holders of the Group Other Comprehensive Other Comprehensive Income/ (Expense) Income/ (Expense) not to be reclassified to be classified to profit or loss to profit or loss Financial assets Actuarial measured losses at fair Total Revaluation arising value equity reserve of from through Net attributable Adjustment Contributions property defined other Currency Cash loss to owner Non- Share to share Treasury from plant and benefit comprehensive translation flow Accumulated for of the parent controlling Total capital capital shares shareholders equipment plans income adjustments hedges losses the period Company interests equity Balances at 1 January 2018 225,943 200,871 (43,677) 5,323 632,700 (28,693) - 14,774 - (560,285) (147,817) 299,139 583,546 882,685 Transfer - - - - - - - - - (147,817) 147,817 - - - Dividend - - - - - - - - - - - - (21,528) (21,528) Sales of plant, property and equipment - net - - - - (790) - - - - 790 - - - - Total comprehensive expense - - - - - (6,324) (1,510) 8,147 - - (625,421) (625,108) (4,375) (629,483) Depreciation transfer - net - - - - (15,644) - - - - 15,644 - - - - Balances at 30 September 2018 225,943 200,871 (43,677) 5,323 616,266 (35,017) (1,510) 22,921 - (691,668) (625,421) (325,969) 557,643 231,674 5
CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY FOR THE NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2018 AND 2017 Attributable to equity holders of the Group Other Comprehensive Other Comprehensive Income/ (Expense) Income/ (Expense) not to be reclassified to be classified to profit or loss to profit or loss Financial assets Actuarial measured losses at fair Total Revaluation arising value equity reserve of from through Net attributable Adjustment Contributions property defined other Currency Cash loss to owner Non- Share to share Treasury from plant and benefit comprehensive translation flow Accumulated for of the parent controlling Total capital capital shares shareholders equipment plans income adjustments hedges losses the period Company interests equity Balances at 1 January 2017 225,943 200,871 (43,677) 5,323 450,420 (24,734) - 13,349 (329) (553,562) (13,796) 259,808 489,967 749,775 Transfer - - - - - - - - - (13,796) 13,796 - - - Dividend - - - - - - - - - - - - (35,838) (35,838) Sales of plant, property and equipment - net - - - - (354) - - - - 354 - - - - Changes in shareholdings in subsidiaries net - - - - 1,929 (83) - - - (1,846) - - - - Total comprehensive expense - - - - - (4,004) - 782 306 - (94,739) (97,655) 27,259 (70,396) Depreciation transfer - net - - - - (8,934) - - - - 8,934 - - - - Balances at 30 September 2017 225,943 200,871 (43,677) 5,323 443,061 (28,821) - 14,131 (23) (559,916) (94,739) 162,153 481,388 643,541 5
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS FOR THE NINE MONTH PERIODS ENDED 30 SEPTEMBER 2018 AND 2017 1 January - 1 January - 30 September 2018 30 September 2017 Period (loss)/ profit (625,761) (65,718) Adjustments to reconcile net cash flows generated from operating activities Adjustment to taxation on income 968,112 5,999 405,212 10,395 Depreciation and amortization 91,187 73,342 Interest income (9,209) (4,215) Interest expense 209,413 135,824 Provision for employment termination benefits 17,393 13,788 (Gain)/ loss from sales of property, plant and equipment - net 1,991 658 Bad debt provision expense 5,853 1,837 Unutilized provision for doubtful trade receivables (1,046) (1,583) Provision for litigation cost - net 2,780 935 (Gain)/ loss arising from changes in fair value less estimated point-of-sale costs of biological assets (37,651) (8,368) Provision for obsolescence of inventory - net 2,859 (66) Gain arising from government grants (395) (488) Adjustments related to swap transactions (1,198) 105,531 Adjustments for unrealised foreign currency translation differences 637,792 1,361 Provision for marketing and promotion charges - net 42,344 76,261 Changes in working capital (63,053) (187,025) Employment termination benefits paid (14,379) (10,777) Government grants received 1,028 3,410 Taxes paid (6,534) (16,247) Net cash generated from operating activities 259,413 128,855 Interest received 8,877 4,152 Purchases of property, plant and equipment, intangible assets and order advances given (180,661) (159,610) Proceeds from sales of property, plant and equipment, intangible assets and investment property 1,852 3,703 Proceeds from sales of non-current asset classified as held for sale 680 - Decrease in non-trade receivables from related parties 27 1,215 Net cash used in investing activities (169,225) (150,540) Redemption of borrowings and other financial liabilities (629,660) (212,855) Proceeds from borrowings and other financial liabilities 818,583 400,619 Dividends paid to non-controlling interest (20,882) (30,499) Interest paid (165,494) (134,470) Proceeds from cross currency swap transaction 5,574 6,540 Net cash generated from financing activities 8,121 29,335 Net increase in cash and cash equivalents before foreign currency translation differences 98,309 7,650 EFFECT OF CURRENCY TRANSLATION DIFFERENCES ON CASH AND CASH EQUIVALENTS 4,236 538 Net increase in cash and cash equivalents Changes in blocked cash and cash equivalents 102,545 (13,381) 8,188 (70,145) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 72,440 114,612 CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 161,604 52,655 6
CONSOLIDATED INTERIM EBITDA INFORMATION FOR THE NINE- MONTH PERIODS ENDED AT 30 SEPTEMBER 30 September 2018 30 September 2017 Revenue 3,706,531 3,004,240 Cost of sales (2,647,493) (2,190,968) Gross profit 1,059,038 813,272 Gross profit margin 28.6% 27.1% Selling and marketing expenses (473,364) (411,015) General administrative expenses (154,976) (144,191) Research and development expenses (28,643) (24,975) EBIT 402,055 233,091 EBIT margin 10.8% 7.8% Add back depreciation and amortisation 91,187 73,342 Add back provision for ETB 9,093 13,788 Add back fair value (gain)/ loss from biological assets (37,651) (8,368) EBITDA 464,684 311,853 EBITDA margin 12.5% 10.4% 7
CONSOLIDATED INTERIM SEGMENT INFORMATION FOR THE NINE - MONTH PERIODS ENDED AT 30 SEPTEMBER SEGMENT INFORMATION The segment results for the nine-month periods ended at 30 September 2018 are as follows: Food and beverage Coatings Tissue Other Group Total gross segment sales 2,607,460 872,824 172,413 87,750 3,740,447 Inter-segment sales (2,056) (30) (91) (31,739) (33,916) Revenue 2,605,404 872,794 172,322 56,011 3,706,531 EBITDA 280,894 148,832 20,173 14,785 464,684 EBITDA margin 10.8% 17.1% 11.7% 26.4% 12.5% The segment assets and liabilities at 30 September 2018 and capital expenditure for the nine-month period then ended are as follows: Food and beverage Coatings Tissue Other Group Assets 2,778,653 1,175,686 266,812 742,711 4,963,862 Deferred income tax assets 7,170 Derivative financial instruments 837 4,971,869 Liabilities 987,088 341,284 139,691 53,050 1,521,113 Borrowings 2,940,270 Other financial liabilities 9,798 Derivative financial instruments 123,230 Current income tax liabilities 4,012 Deferred income tax liabilities 141,772 4,740,195 Capital expenditures for the nine-month period ending at 30 September 2018 143,444 21,040 8,655 7,040 180,179 8
CONSOLIDATED INTERIM SEGMENT INFORMATION FOR THE NINE - MONTH PERIODS ENDED AT 30 SEPTEMBER SEGMENT INFORMATION (continued) The segment results for the nine-month periods ended at 30 September 2017 are as follows: Food and beverage Coatings Tissue Other Group Total gross segment sales 2,135,444 681,421 133,670 82,919 3,033,454 Inter-segment sales (1,650) - (117) (27,447) (29,214) Revenue 2,133,794 681,421 133,553 55,472 3,004,240 EBITDA 216,285 79,578 10,354 5,636 311,853 EBITDA margin 10.1% 11.7% 7.8% 10.2% 10.4% The segment assets and liabilities at 31 December 2017 and capital expenditure for the nine-month period ended at 30 September 2017 are as follows: Food and beverage Coatings Tissue Other Group Assets 2,343,360 924,110 233,606 737,560 4,238,636 Deferred income tax assets 4,066 Derivative financial instruments 503 4,243,205 Liabilities 647,446 236,658 81,050 53,022 1,018,176 Borrowings 2,068,291 Other financial liabilities 5,022 Derivative financial instruments 121,161 Current income tax liabilities 1,548 Deferred income tax liabilities 146,322 3,360,520 Capital expenditures for the nine-month period ending at 30 September 2017 105,970 33,396 6,345 5,902 151,613 9
CONSOLIDATED INTERIM FINANCE INCOME AND EXPENSE FOR THE NINE - MONTH PERIODS ENDED AT 30 SEPTEMBER FINANCIAL INCOME AND EXPENSES 30 September 2018 30 September 2017 Finance income: Foreign exchange gain 436,187 130,643 Interest income 9,209 4,215 Gain arising from fair value measurement of cross currency swap transactions 5,574 - Other 24,389 12,025 475,359 146,883 Finance expense: Foreign exchange loss (1,200,303) (158,381) Interest expense on borrowings (209,413) (135,824) Loss arising from fair value measurement of cross currency swap transactions - (105,017) Bank commissions (9,941) (5,229) Interest expense on swap transactions (3,686) (218) Other (56,970) (22,428) (1,480,313) (427,097) 10