RU

7.

FINANCIAL PERFORMANCE

In 2016, REC’s share capital was increased by RUB 54.6 billion. At the expense of the subsidies from the federal budget, the Company purchased shares in Eximbank of Russia from the additional share issue in an amount of RUB 8.1 billion. REC’s additional share issue was used to pay off the payables for the shares in EXIAR transferred to REC by Vnesheconombank. At this stage, REC, by the reason that it receives no proceeds from its core activity, finances its development expenses both through the investment income from allocation of its equity capital and through the loans advanced by other Group’s companies.

+54.6

billion RUB: the increase of REC’s share capital in 2016

7.1

Structure of REC’s assets and liabilities

Indicators As of 31.12.2016 As of 01.01.2016
RUB ‘000 share share share
Investments 60,455,919 98.4 % 48,864,009 99.9 %
Cash 757,145 1.2 % 827 0.0 %
Accounts receivable 73,246 0.1 % 17,857 0.04 %
Deferred tax assets 49,666 0.1 % - 0.00 %
Fixed assets and intangibles 44,557 0.1 % 7,901 0.2 %
Other current assets 57,992 0.1 % 14,251 0.03 %
Total Assets 61,438,525 100 % 48,904,846 100 %
Loans and borrowings 3,816,277 6.2 % - 0.0 %
Estimated liabilities 104,390 0.2 % - 0.0 %
Accounts payable 17,606 0.0 % 458,187,992 93.69 %
Deferred tax liabilities 1,138 0.0 % - 0.0 %
Total Liabilities 3,939.411 6 % 45,818,792 94 %
Net assets 57,499,114 3,086,054

7.2

REC’s financial result [i]

The large-scale business development of the Center and its regional and international expansion have led to a substantial growth of its operating expenses and, as a consequence, resulted in net loss at the end of 2016, which, however, is less than 0.4% of REC’s net asset value as of the reporting date.

Indicators (RUB ‘000) 2016 2015
Income (revenue) from principal activities - -
Operating expenses (661,590) (95,517)
Interest income 516,399 203,180
Interest expenses (122,227) -
Taxable profit (267,468) 107,663
Current profits tax - (21,609)
Change of deferred tax assets and liabilities 48,528 -
Net loss (218,940) 86,054