Consolidated Statement of Cash Flows
For the year ended December 31, 2013

RUB millions

Notes

Year ended December 31, 2013

Year ended December 31, 2012 Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before income tax

225,980

223,921

ADJUSTMENTS FOR:

Share of profit of associates and joint ventures

14

(11,251)

(12,767)

Loss / (gain) on foreign exchange differences

9,350

(5,635)

Finance income

27

(6,011)

(3,275)

Finance expense

28

11,233

11,089

Depreciation, depletion and amortization

12,13

76,785

69,163

Allowance for doubtful accounts

31

(413)

2,773

Other non-cash items

1,256

3,853

CHANGES IN WORKING CAPITAL:

Accounts receivable

(16,632)

764

Inventories

4,056

(13,814)

Other assets

9,228

(17,659)

Accounts payable

15,681

8,579

Taxes payable

3,111

6,418

Other liabilities

(7,115)

7,363

Income taxes paid

(33,514)

(28,932)

Interest paid

(9,981)

(11,302)

Dividends received

4,973

7,209

NET CASH PROVIDED BY OPERATING ACTIVITIES

276,736

247,748

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of subsidiaries, net of cash acquired

(4,657)

(2,261)

Acquisition of associates and joint ventures

(1,200)

–-

Bank deposits placement

(74,295)

(43,315)

Repayment of bank deposits

44,870

39,076

Acquisition of other investments

(283)

(4,517)

Proceeds from sales of other investments

890

4,557

Short-term loans issued

(2,829)

(4,193)

Repayment of short-term loans issued

863

8,110

Long-term loans issued

(19,848)

(13,751)

Repayment of long-term loans issued

1,004

261

Capital expenditures

(208,611)

(169,213)

Proceeds from sale of property, plant and equipment

3,847

2,314

Interest received

4,524

2,476

NET CASH USED IN INVESTING ACTIVITIES

(255,725)

(180,456)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from short-term borrowings

18,930

92,986

Repayment of short-term borrowings

(31,249)

(78,341)

Proceeds from long-term borrowings

119,032

67,743

Repayment of long-term borrowings

(50,318)

(56,970)

Transaction costs directly attributable to the borrowings received

(1,074)

(683)

Dividends paid to the Company’s shareholders

(63,328)

(34,433)

Dividends paid to non-controlling interest

(3,248)

(762)

Acquisition of non-controlling interest in subsidiaries

(1,755)

(5,572)

NET CASH USED IN FINANCING ACTIVITIES

(13,010)

(16,032)

INCREASE IN CASH AND CASH EQUIVALENTS

8,001

51,260

Effect of foreign exchange on cash and cash equivalents

3,877

(1,868)

CASH AND CASH EQUIVALENTS AS OF THE BEGINNING OF THE PERIOD

79,199

29,807

CASH AND CASH EQUIVALENTS AS OF THE END OF THE PERIOD

91,077

79,199