Consolidated statement of cash flows

for the year ended 31 December 2009
(all amounts are presented in thousands of Russian Roubles, unless otherwise stated)

  Note 2009 2008
Operating profit   10,712,389 40,890,487
Income tax paid   (1,767,696) (9,726,888)
Operating profit less income tax paid   8,944,693 31,163,599
Depreciation and amortisation 24 2,976,353 2,942,655
Net loss on disposals and write-off of property, plant and equipment   262,098 393,009
Impairment of receivables and provision for obsolete and damaged inventories   192,265 (566,964)
Other non-cash (income)/expenses   540,363 (367,356)
Gross cash flow 5 12,915,772 33,564,943
Changes in operating assets and liabilities      
Trade receivables   896,167 574,167
Advances to suppliers   20,612 (434,039)
Other receivables   2,023,335 (2,544,418)
Inventories   2,969,179 (5,447,656)
Trade payables   (251,884) 634,897
Advances from customers   735,336 (375,165)
Other payables   (1,280,751) 898,097
Other assets and liabilities   (489,073) (115,360)
Net cash – operating activities   17,538,693 26,755,466
Cash flows from investing activities      
Capital expenditure on property, plant and equipment and other intangible assets   (18,593,560) (14,730,809)
Purchase of exploration rights 11 (108,220) (4,087,166)
Acquisition of interest in subsidiaries   (4,255) (2,488,678)
Acquisition of subsidiary, net of cash acquired   (149,913) (416,862)
Acquisition of available-for-sale investment 10 (25,405,127) (10,101,141)
Proceeds from sale of property, plant and equipment   78,937 45,410
Proceeds from disposal of non-current assets held for sale   68,069 –
Prepayment for non-current assets held for sale   – 37,500
Proceeds from disposal of trading investments 16 311,855 –
Proceeds from sale of available-for-sale investment 10 7,374,575 783,501
Proceeds from sale of derivatives   193,458 –
Dividends received net of tax   2,060,279 –
Repayment of originated loans 12 6,568,110 –
Originated loans 12 – (5,118,848)
Interest received   560,572 533,896
Net cash – investing activities   (27,045,220) (35,543,197)
Free cash outflow 5 (9,506,527) (8,787,731)
Cash flows from financing activities      
Proceeds from bank borrowings 18 9,843,054 47,399,732
Repayment of bank borrowings 18 (15,800,009) (13,995,282)
Syndication fees paid   (140,343) (1,106,969)
Interest paid   (1,778,824) –
Repayment of bonds buy back   – (142,439)
Dividends paid 17 – (14,124,419)
Net cash – financing activities   (7,876,122) 18,030,623
Effect of exchange rate changes on cash and cash equivalents   1,834,071 1,913,968
Net increase/(decrease) in cash and cash equivalents   (15,548,578) 11,156,860
Cash and cash equivalents at the beginning of the period 15 26,225,350 15,068,490
Cash and cash equivalents at the end of the period 15 10,676,772 26,225,350

The accompanying notes on this page are an integral part of these consolidated financial statements.