Financial statements

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