CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2018
| In thousands of Tenge | Notes | 31 December 2018 |
31 December 2017 |
| Assets | |||
| Non-current assets | |||
| Property, plant and equipment | 6 | 667,936,367 | 535,294,178 |
| Intangible assets | 1,472,307 | 1,038,637 | |
| Advances paid for non-current assets | 6 | 1,018,989 | 742,325 |
| Deferred tax asset | 26 | 3,760 | 2,252 |
| Investments in associate | 7 | 1,107,867 | 782,081 |
| Long-term receivables from related parties | 27 | 929,162 | 1,009,981 |
| Other financial assets, non-current portion | 11 | 25,609,268 | 1,091,823 |
| Other non-current assets | 4,017 | 17,129 | |
| 698,081,737 | 539,978,406 | ||
| Current assets | |||
| Inventories | 8 | 2,291,378 | 1,875,434 |
| Trade accounts receivable | 9 | 9,251,847 | 7,764,693 |
| VAT recoverable and other prepaid taxes | 791,934 | 961,745 | |
| Prepaid income tax | 1,541,679 | 1,584,041 | |
| Other current assets | 10 | 528,622 | 652,589 |
| Other financial assets, current portion | 11 | 20,127,229 | 25,107,392 |
| Restricted cash | 12 | 4,175,576 | 3,445,617 |
| Cash and cash equivalents | 13 | 19,060,700 | 47,577,783 |
| 57,768,965 | 88,969,294 | ||
| Total assets | 755,850,702 | 628,947,700 | |
| Equity and liabilities | |||
| Equity | |||
| Share capital | 14 | 126,799,554 | 126,799,554 |
| Treasury shares | 14 | (930) | (930) |
| Asset revaluation reserve | 14 | 310,840,187 | 220,858,720 |
| Other reserves | 14 | (37,081) | (170,701) |
| Retained earnings | 35,092,074 | 26,680,917 | |
| 472,693,804 | 374,167,560 | ||
| Non-current liabilities | |||
| Borrowings, non-current portion | 15 | 62,881,150 | 64,229,182 |
| Bonds payable, non-current portion | 16 | 83,660,104 | 83,649,023 |
| Deferred tax liability | 26 | 90,170,202 | 66,666,573 |
| Trade and other accounts payable, non-current portion | 17 | - | 298,327 |
| Government grant, non-current portion | 89,972 | 100,786 | |
| Finance lease obligations, non-current portion | 27 | 157,175 | 8,961 |
| 236,958,603 | 214,952,852 | ||
| Current liabilities | |||
| Borrowings, current portion | 15 | 11,420,710 | 9,502,895 |
| Bonds payable, current portion | 16 | 4,097,122 | 4,407,719 |
| Trade and other accounts payable, current portion | 17 | 22,645,297 | 18,763,337 |
| Construction obligation | 18 | 683,430 | 683,430 |
| Contract liabilities | 1,734,670 | 2,048,415 | |
| Government grant, current portion | 30,430 | 27,487 | |
| Finance lease obligations, current portion | 27 | 36,323 | 3,996 |
| Taxes payable other than income tax | 19 | 2,144,441 | 958,525 |
| Income tax payable | 1,123 | 5,385 | |
| Dividends payable | 2,750 | 87 | |
| Other current liabilities | 20 | 3,401,999 | 3,426,012 |
| 46,198,295 | 39,827,288 | ||
| Total liabilities | 283,156,898 | 254,780,140 | |
| Total equity and liabilities | 755,850,702 | 628,947,700 | |
| Book value per ordinary share (in Tenge) | 14 | 1,812 | 1,435 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2018
| In thousands of Tenge | Notes | 2018 | 2017 |
| Revenue from contracts with customers | 21 | 175,797,386 | 152,379,817 |
| Cost of sales | 22 | (105,840,194) | (89,399,369) |
| Gross profit | 69,957,192 | 62,980,448 | |
| General and administrative expenses | 23 | (14,937,698) | (13,142,395) |
| Selling expenses | (284,688) | (246,651) | |
| Gain from revaluation of property, plant and equipment | 6 | 3,342,507 | - |
| Reversal of / (loss from) impairment of property, plant and equipment | 6 | 266,291 | (196,982) |
| Operating profit | 58,343,604 | 49,394,420 | |
| Finance income | 24 | 4,951,337 | 3,593,207 |
| Finance costs | 24 | (3,862,511) | (4,523,948) |
| Foreign exchange loss, net | 25 | (5,865,654) | (4,356,244) |
| Share in profit of an associate | 7 | 325,786 | 477,127 |
| Expenses from impairment of funds placed with Delta Bank JSC and Kazinvestbank JSC | - | (2,241,155) | |
| Accrual of provision for expected credit losses | (2,931,750) | - | |
| Other income | 334,637 | 506,849 | |
| Other expenses | (270,638) | (208,562) | |
| Profit before tax | 51,024,811 | 42,641,694 | |
| Income tax expense | 26 | (10,981,936) | (9,760,378) |
| Profit for the year | 40,042,875 | 32,881,316 | |
| Earnings per share | |||
| Basic and diluted profit for the year attributable to common shareholders of the parent (in Tenge) | 14 | 154.01 | 126.47 |
| Profit for the year | 40,042,875 | 32,881,316 | |
| Other comprehensive income | |||
| Other comprehensive income not to be reclassified to profit or loss in subsequent periods: | |||
| Gain from revaluation of property, plant and equipment | 113,259,316 | - | |
| Income tax effect | (22,651,864) | - | |
| Net other comprehensive income not to be reclassified to profit or loss in subsequent periods, net of tax | 90,607,452 | - | |
| Other comprehensive income for the year, net of tax | 90,607,452 | - | |
| Total comprehensive income for the year, net of tax | 130,650,327 | 32,881,316 | |
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2018
| In thousands of Tenge | Notes | 2018 | 2017 |
| Operating activities | |||
| Profit before tax | 51,024,811 | 42,641,694 | |
| Adjustments to reconcile profit before tax to net cash flows | |||
| Depreciation and amortisation | 26,755,934 | 22,935,831 | |
| Finance costs | 24 | 3,862,511 | 4,523,948 |
| Finance income | 24 | (4,951,337) | (3,593,207) |
| Foreign exchange loss, net | 25 | 5,865,654 | 4,356,244 |
| (Reversal)/accrual of allowance for obsolete inventories | 23 | (398,750) | 86,128 |
| Gain from revaluation of property, plant and equipment | 6 | (3,342,507) | - |
| (Reversal of impairment) / impairment of property, plant and equipment | 6 | (266,291) | 196,982 |
| Accrual of provision for expected credit losses | 2,931,750 | - | |
| Share in profit of an associate | 7 | (325,786) | (477,127) |
| Income from government grants | (28,468) | (9,162) | |
| Loss from disposal of property, plant and equipment and intangible assets | 168,174 | 21,978 | |
| Interest income from other financial assets | - | (30,248) | |
| Expenses from impairment of funds, placed in Delta Bank JSC and Kazinvestbank JSC | - | 2,241,155 | |
| Reversal of allowance for doubtful accounts receivable and impairment of other current assets | 23 | - | (1,044,203) |
| Working capital adjustments | |||
| Change in inventories | (17,194) | (259,801) | |
| Change in trade accounts receivable | (1,915,564) | 9,013,514 | |
| Change in other trade accounts receivable and advances paid | 310,559 | - | |
| Change in VAT recoverable and other prepaid taxes | 178,286 | (652,080) | |
| Change in other current assets | - | (199,879) | |
| Change in trade and other accounts payable | 989,715 | 1,065,361 | |
| Change in contract liabilities | (313,745) | 1,005,890 | |
| Change in taxes payable other than income tax | 1,197,834 | (2,381,704) | |
| Change in other current liabilities | (27,047) | 451,170 | |
| Cash flows from operating activities | 81,698,539 | 79,892,484 | |
| Interest paid | (2,987,933) | (4,186,436) | |
| Coupon interest paid | (9,209,500) | (8,835,000) | |
| Income tax paid | (9,502,696) | (10,467,054) | |
| Interest received | 4,315,484 | 5,436,517 | |
| Net cash flows received from operating activities | 64,313,894 | 61,840,511 | |
| Investing activities | |||
| Withdrawal of bank deposits | 36,509,577 | 97,295,695 | |
| Replenishment of bank deposits | (27,404,147) | (64,311,770) | |
| Acquisition of bonds of Samruk-Kazyna | 11 | (25,545,272) | - |
| Acquisition of debt securities (National bank notes) | (5,356,676) | - | |
| Redemption of debt securities (National bank notes) | 5,400,000 | - | |
| Change in restricted cash | (310,921) | 13,165,083 | |
| Reclassification of cash to other financial assets | (2.860.231) | (1.299.715) | |
| Gain from sale of property, plant and equipment and intangible assets | 203,960 | 215,161 | |
| Purchase of property, plant, equipment | (32,977,830) | (53,999,831) | |
| Purchase of intangible assets | (336,653) | (410,278) | |
| Return of project funds used to purchase fixed assets | 6 | 267,056 | - |
| Repurchase of DSFK bonds by the issuer | 11 | 12,971 | - |
| Repayment of loans to employees | 7,716 | 10,406 | |
| Net cash flows used in investing activities | (52,390,450) | (9,335,249) | |
| Financing activities | |||
| Dividends paid | (31,368,769) | (19,897,651) | |
| Repayment of borrowings | (9,217,048) | (53,433,954) | |
| Issue of bonds | - | 36,271,080 | |
| Net cash flows used in financing activities | (40,585,817) | (37,060,525) | |
| Net change in cash and cash equivalents | (28,662,373) | 15,444,737 | |
| Effect of exchange rate changes on cash and cash equivalents | 154,386 | 77,668 | |
| Effect of accrual of provision on expected credit losses on cash and cash equivalents | 13 | (9,096) | - |
| Cash and cash equivalents, as at 1 January | 47,577,783 | 32,055,378 | |
| Cash and cash equivalents, as at 31 December | 13 | 19,060,700 | 47,577,783 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2018
| In thousands of Tenge | Share capital |
Asset revaluation reserve |
Treasury shares |
Other reserves |
Retained earnings |
Total |
| As at 1 January 2017 | 126,799,554 | 220,890,374 | (930) | (170,701) | 14,565,773 | 362,084,070 |
| Profit for the year | - | - | - | - | 32,881,316 | 32,881,316 |
| Total comprehensive income | - | - | - | - | 32,881,316 | 32,881,316 |
| Dividends (Note 14) | - | - | - | - | (19,897,694) | (19,897,694) |
| Transactions with shareholders | - | - | - | - | (900,132) | (900,132) |
| Transfer of asset revaluation reserve (Note 14) | - | (31,654) | - | - | 31,654 | - |
| As at 31 December 2017 | 126,799,554 | 220,858,720 | (930) | (170,701) | 26,680,917 | 374,167,560 |
| Effect of adoption of IFRS 9 (Note 3) | - | - | - | - | (886,271) | (886,271) |
| As at 1 January 2018 (restated) | 126,799,554 | 220,858,720 | (930) | (170,701) | 25,794,646 | 373,281,289 |
| Profit for the year | - | - | - | - | 40,042,875 | 40,042,875 |
| Gain from revaluation of property, plant and equipment, net of tax (Note 6) |
- | 90,607,452 | - | - | - | 90,607,452 |
| Total comprehensive income | - | 90,607,452 | - | - | 40,042,875 | 130,650,327 |
| Transfer of asset revaluation reserve (Note 14) | - | (625,985) | - | - | 625,985 | - |
| Dividends (Note 14) | - | - | - | - | (31,371,432) | (31,371,432) |
| Amortization of provision for bonds (Note 14) | - | - | - | 133,620 | - | 133,620 |
| As at 31 December 2018 | 126,799,554 | 310,840,187 | (930) | (37,081) | 35,092,074 | 472,693,804 |