MECHEL PAO contained in our consolidated statement of profit (loss) and other comprehensive income. We believe that our adjusted EBITDA provides useful information to investors because it is an indicator of the strength and performance of our ongoing business operations, including our ability to fund discretionary spending such as capital expenditures, acquisitions and other investments and our ability to incur and service debt. While depreciation, amortisation and impairment of goodwill and other non-current assets are considered operating expenses under IFRS, these expenses primarily represent the non-cash current period allocation of costs associated with non-current assets acquired or constructed in prior periods. Our adjusted EBITDA calculation is commonly used as one of the bases for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the metals and mining industry.
Our calculation of Net debt, excluding fines and penalties on overdue amounts**[?] is presented below:
Mln rubles 31.12.2020 31.12.2019
Current loans and borrowings, excluding interest payable, fines and penalties on 301 609 370 206
overdue amounts
Interest payable 9 9
750 014
Non-current loans and borrowings 2 7
201 205
Other non-current financial liabilities 1 48 303
901
Other current financial liabilities
324 147
less Cash and cash equivalents (1 (3,509)
706)
Net debt, excluding lease liabilities, fines and penalties on overdue amounts 314 079 431 366
Current lease liabilities 7 10 353
535
Non-current lease liabilities 3 7
958 002
Net debt, excluding fines and penalties on overdue amounts 325 572 448 721 EBITDA can be reconciled to our consolidated statement of profit (loss) and other comprehensive income as follows:
Consolidated Mining Segment
Results *** Steel Segment*** Power Segment***
Mln rubles 12m2020 12m2019* 12m2020 12m2019* 12m2020 12m2019* 12m2020 12m2019*
Profit (loss) attributable to equity 808 2 409 38 742 4 253 (34 5 938 (1 081) 351
shareholders of Mechel PAO 383)
Add:
Depreciation and amortisation 14 286 13 410 7 463 6 775 6 335 6 153 488 482
Foreign exchange loss (gain), net 36 388 (18 288) 7 400 (3 423) 28 928 (14 841) 59 (24)
Finance costs including fines and penalties
on overdue loans and borrowings and lease 25 145 33 863 12 408 19 164 14 403 14 839 447 653
payments
Finance income (3 504) (590) (2 289) (901) (3 306) (450) (23) (31)
Impairment of goodwill and other non-current
assets, net and loss on write-off of
non-current assets, allowance for expected
credit losses on financial assets, provision
(reversal of provision) for doubtful 3 626 3 646 3 485 5 467 4 (1 835) 138 12
accounts, write-off of trade and other
receivables and payables, net and change in
provision (reversal of provision) for
inventories at net realisable value
(Profit) loss after tax for the period from (41 6 790 (41 6 962 - (39) - (132)
discontinued operations 609) 651)
Net result on the disposal of subsidiaries 23 - - - 23 - - -
Profit attributable to non-controlling 648 1 876 110 701 217 996 321 180
interests
Income tax expense (benefit) 2 528 7 913 (149) 20 676 503 (34) 333
Effect of pension obligations 169 188 118 138 46 47 5 4
Other fines and penalties 3 001 1 874 880 513 291 859 2 148 (419)
Other one-off items (458) - (258) - (80) - (119) -
EBITDA 41 051 53 092 26 259 39 669 13 154 12 170 2 349 1 409
EBITDA, margin 15% 18% 25% 33% 8% 7% 5% 3%
Mining Segment Steel Segment*** Power Segment***
Consolidated ***
Results
Mln rubles 4q 2020 3q 2020 4q 2020 3q 2020 4q 2020 3q 2020 4q 2020 3q 2020
?rofit (loss) attributable to equity 16 571 (25 959) 9 530 (3 368) 5 142 (21 487) 260 63
shareholders of Mechel PAO
Add:
Depreciation and amortisation 4 005 3 338 2 342 1 685 1 530 1 538 132 116
Foreign exchange (gain) loss, net (6 261) 23 710 (1 814) 3 975 (4 437) 19 702 (9) 34
Finance costs including fines and penalties
on overdue loans and borrowings and lease 5 501 5 379 2 268 2 496 3 854 3 518 97 95
payments
Finance income (2 735) (240) (533) (812) (2 917) (154) (4) (4)
Impairment of goodwill and other non-current
assets, net and loss on write-off of
non-current assets, allowance for expected
credit losses on financial assets, provision
(reversal of provision) for doubtful (1 635) (999) (819) (605) (682) (250) (132) (145)
accounts, write-off of trade and other
receivables and payables, net and change in
provision (reversal of provision) for
inventories at net realisable value
Net result on the disposal of subsidiaries (26) 49 - - (26) 49 - -
Profit (loss) attributable to non-controlling 544 (137) 106 47 358 (260) 80 75
interests
Income tax (benefit) expense (5 334) 3 529 (4 480) 2 727 564 (33) 51 168
Effect of pension obligations 8 25 (14) 16 21 8 1 1
Other fines and penalties (754) 917 185 245 (435) 533 329 (28)
Other one-off items (195) (263) (258) - 62 (142) 2 (121)
EBITDA 9 689 9 349 6 513 6 406 3 034 3 022 807 254
EBITDA, margin 14% 15% 23% 25% 7% 7% 7% 3%
* These amounts reflect adjustments made in
connection with the presentation of the
discontinued operation.
*** including inter-segment operations
Income tax, deferred tax related to the consolidated group of taxpayers are not allocated to segments as they are managed on the group basis.
Attachment B
CONSOLIDATED STATEMENT OF PROFIT (LOSS) AND OTHER COMPREHENSIVE INCOME
for the year ended December 31, 2020
(All amounts are in millions of Russian rubles, unless stated otherwise)
Year ended Year ended
December 31, December 31,
2020 2019*
Continuing operations
Revenue from contracts with customers................................ 265,454 287,153
Cost of sales.................................................. (170,605) (183,086)
Gross profit................................................. 94,849 104,067
Selling and distribution expenses.................................... (49,994) (48,432)
Impairment of goodwill and other non-current assets, net.................... (3,897) (1,804)
Allowance for expected credit losses on financial assets..................... (149) (234)
Taxes other than income taxes...................................... (3,446) (4,517)
Administrative and other operating expenses............................ (18,437) (15,568)
Other operating income.......................................... 999 688
Total selling, distribution and operating income and (expenses), net.......... (74,924) (69,867) (MORE TO FOLLOW) Dow Jones Newswires
March 11, 2021 06:02 ET (11:02 GMT)
