Consolidated statement of cash flows

for the year ended 31 December 2010
(all amounts are presented in thousands of Russian Roubles,
unless otherwise stated)

  Note 2010 2009
Operating profit   26,025,963 10,712,389
Income tax paid   (3,736,157) (1,767,696)
Operating profit less income tax paid   22,289,806 8,944,693
Depreciation and amortisation 24 3,465,963 2,976,353
Net loss on disposals and write-off of property, plant and equipment and other intangible assets   370,788 262,098
Impairment of receivables and provision for obsolete and damaged inventories   (32,578) 192,265
Other non-cash (income)/expenses   (1,147,301) 540,363
Gross cash flow 5 24,946,678 12,915,772
Changes in operating assets and liabilities:
Trade receivables   (111,650) 896,167
Advances to suppliers   (424,551) 20,612
Other receivables   (5,443) 2,023,335
Inventories   (1,534,620) 2,969,179
Trade payables   244,784 (251,884)
Advances from customers   761,765 735,336
Other payables   1,768,154 (1,280,751)
Other assets and liabilities   548,842 (489,073)
Net cash – operating activities   26,193,959 17,538,693
Cash flows from investing activities
Capital expenditure on property, plant and equipment and other intangible assets   (20,417,298) (18,593,560)
Investment grants received 7 146,764 –
Purchase of mineral rights 11 (46,611) (108,220)
Acquisition of subsidiary, net of cash acquired   – (149,913)
Acquisition of available-for-sale investments   – (25,405,127)
Proceeds from sale of property, plant and equipment   48,306 78,937
Proceeds from disposal of non-current assets held for sale   – 68,069
Proceeds from disposal of trading investments   – 311,855
Proceeds from sale of available-for-sale investments 10 5,398,834 7,374,575
Proceeds from sale of derivatives   226,061 193,458
Dividends received, net of tax   140,549 2,060,279
Repayment of originated loans   – 6,568,110
Interest received   172,059 560,572
Net cash – investing activities   (14,331,336) (27,040,965)
Free cash inflow/(outflow) 5 11,862,623 (9,502,272)
Cash flows from financing activities
Proceeds from bank borrowings 16 10,424,846 9,843,054
Repayment of bank borrowings 16 (25,751,901) (15,800,009)
Proceeds from bonds, net of transaction costs   9,955,112 –
Prepaid and additional transaction costs   (15,239) (140,343)
Interest paid   (1,672,262) (1,778,824)
Acquisition of interest in subsidiaries 31 (448,983) (4,255)
Dividends paid 15 (5,834,000) –
Net cash – financing activities   (13,342,427) (7,880,377)
Effect of exchange rate changes on cash and cash equivalents   (300,345) 1,834,071
Net decrease in cash and cash equivalents   (1,780,149) (15,548,578)
Cash and cash equivalents at the beginning of the period 14 10,676,772 26,225,350
Cash and cash equivalents at the end of the period 14 8,896,623 10,676,772

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