#1KKTK MEETINGS WITH INVESTORS Presentation April, 2012 (Tallinn, Helsinki, Stockholm, Moscow) www.oaoktk.ru/en#2DISCLAIMER K IMPORTANT: You must read the following before continuing. The following applies to the management presentation (the "Management Presentation") following this important notice, and you are, therefore, advised to read this important notice carefully before reading, accessing or making any other use of the Management Presentation. In accessing the Management Presentation, you unconditionally agree to be bound by the following terms, conditions and restrictions, including any modifications to them any time that you receive any information from OJSC "Kuzbasskaya Toplivnaya Company" (the "Company") as a result of such access. The information contained in this Management Presentation has been prepared by the Company. This Management Presentation is an information document presenting information on the Company. This Management Presentation (i) is not intended to form the basis for any investment decision and (ii) does not purport to contain all the information that may be necessary or desirable to evaluate the Company fully and accurately and (iii) is not to be considered as a recommendation by the Company or any of its affiliates that any person (including a recipient of this Management Presentation) participate in any transaction involving the Company or its securities. The Company has not independently verified any information contained herein and does not undertake any obligation to do so. This Management Presentation is not directed to, or intended for distribution to or use by, any person or entity that a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require registration of licensing within such jurisdiction. Neither the provision of this Management Presentation, nor any information in connection with the analysis of the Company constitutes or shall be relied upon as constituting, the giving of investment (or other) advice by Company, or any other shareholders, employees, representatives or affiliates thereof. Neither the Company nor its respective subsidiaries, associates, directors, employees, agents or advisors (such directors, employees, agents or advisors being hereafter referred to as "representatives"), makes any representation or warranty (express or implied) as to the adequacy, accuracy, reasonableness or completeness of the information contained in this Management Presentation or of any additional information, and such parties or entities expressly disclaim any and all liability (other than in respect of fraudulent misrepresentation) based on or relating to any representations or warranties (express or implied) contained in, or errors or omissions from, this Management Presentation or any additional information or based on or relating to the recipient's use or the use by any of its associates or representatives of this Management Presentation or any additional information, or any other written or oral communications transmitted to the recipient or any of its associates or representatives or any other person in the course of its or their evaluation of an investment in the Company. FORWARD-LOOKING STATEMENTS This Management Presentation includes statements that are, or may be deemed to be, "forward looking statements". These forward looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this Management Presentation and include statements regarding the intentions, beliefs or current expectations of the Company. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances, which may or may not occur in the future, are difficult or impossible to predict, and are beyond the Company's control. Forward-looking statements are not guarantees of future performance. The Company's actual performance, results of operations and financial condition may differ materially from the impression created by the forward-looking statements contained in this Management Presentation. Subject to its legal and regulatory obligations, the Company expressly disclaims any obligation to update or revise any forward-looking statement contained herein to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based. Any recipient of this Management Presentation is solely responsible for assessing and keeping under review the business, operations, financial condition, prospects, creditworthiness, status and affairs of the Company. In no circumstances shall the provision of this Management Presentation imply that no negative change may occur in the business of the Company after the date of provision of this Management Presentation, or any date of amendment and/or addition thereto. ROUNDING AND ERRORS Certain numerical figures included in this presentation have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in certain tables may not be an arithmetic aggregation of the figures that preceded them. Calculations of change in % are made after rounding of figures converted to USD. We make every effort to check and verify the materials, but if you find any errors or inaccuracies please report it to [email protected] and we will provide you with the correct data and publish any correction notes on the website www.oaoktk.ru. 2/22#3TABLE OF CONTENTS K I. BUSINESS REVIEW II. OPERATIONAL HIGHLIGHTS III. FINANCIAL PERFORMANCE IV. APPENDIX CONTACTS 4 8 14 18 22 PRESENTERS: Eduard Alekseenko First Deputy CEO Vasily Rumyantsev Investor Relations Manager 3/22#4BUSINESS REVIEW www.oaoktk.ru/en K 4/22#5KTK AT A GLANCE K One of the fastest-growing thermal coal producers in Russia. One of major suppliers of coal in Western Siberia. In 2011 the Company became 7th largest thermal coal producer in Russia. (1) Since its establishment in 2000, the Company has launched 3 open-pit mines and developed an extensive production and distribution infrastructure and the fourth one is now under construction: ▲ 8.74 mln. tonnes of thermal coal produced in 2011; ▲ 100% high-quality grade "D" thermal coal under Russian classification; ▲ Developed railway network and facilities; ▲ Enrichment plant with 2 mln. tonnes input capacity. Coal production history with open-pit mine breakdown 8.74 9 8 7 T 7 65 mln. tonnes 6.80 6.15 3.76 5.48 2.55 4.33 4.29 4.10 0.98 2.06 4 3.14 1.76 1.77 1.65 1,36 1.91 1.44 1.47 3 2.38 2.29 0.41 2 1.30 3.23 3 existing open-pit mines Structural capacity(3) 11 mln. tonnes Reserves 402 mln. tonnes of coal resources and 185 mln. tonnes of proven and probable reserves(2) 250 mln. tonnes according to the C2 category Bryanskiy open-pit mine 1 0.37 2.29 2.38 2.73 2.56 2.64 2.74 2.59 2.65 2.78 1.30 3-5 mln. tonnes 0 0.37 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Utilization of modern and high-performance equipment fleet supporting efficient low-cost production - USD 22 per tonne of coal Diversified sales capabilities balanced between domestic market (4.21 mln. tonnes sold in 2011) and export markets (6.45 mln tonnes sold in 2011). One of the largest retail coal distribution networks in Western Siberia. Employing about 4,000 people. KTK shares are quoted on RTS and MICEX (ticker: KBTK) 66% of share capital is owned by the management (I. Prokudin - 50%, V. Danilov - 16%), free-float - 34%. (1) Metal Expert, January 2012 (2) Run-of-mine coal, JORC classification; (3) Here and further the presentation structural capacity means the maximum production capacity that the Company believes could be achieved (taking into account projected stoppages for planned repair and maintenance) in an annual period if the Company were able to process all the coal that could be mined using the Company's existing mine facilities after acquisition of certain mining and transportation equipment in accordance with its current capital expenditure program Karakansky South Vinogradovsky Cheremshansky Key operating and financial indicators (1) USD mln. Coal sales, mln. tonnes 2009 2010 2011 7.4 8.54 10.66 1.4 2.16 2.08 344 466 814 -2.3% 38.7% 74.7% 27 69 70 133 20.1% 15.0% 16.3% 21 6.1% 5.8% 69 8.5% incl. purchased coal Revenue % of growth EBITDA (2) % margin Net Income % margin Source: audited IFRS FS for 2009-2010 in which all amounts are presented in RUB, Company (1) In the table USD are converted from RUB using average Central Bank of the Russian Federation exchange rates for each year (2011: 29.39 RUB/USD; 2010: 30.38 RUB/USD; 2009: 31.77 RUB/USD) (2) EBITDA for each period is defined as results from operating activities, adjusted for amortization and depreciation, impairment loss and loss on disposal of property, plant and equipment 5/22#6KTK PRODUCTION GROWTH PROSPECTS Forecast of production volume and stripping ratio dynamics K 16 13.30 14 12 10 mln. tonnes 12.30 10.90 10.95 11.60 11.10 9.30 9.96 10.15 9.30 8.74 8 6.80 6,15 5.48 8.30 10 6 7.80 7.10 7.27 7.40 7.32 6.96 4 6.21 6.21 2 0 2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F Production Saleable output Average stripping ratio The Company has established a well-developed production, logistics and distribution infrastructure required to sustain production capacity of the existing mining facilities 11 mln. tonnes per year Modern high-performance mining and transportation equipment (Komatsu, P&H and BelAZ); 100% of coal transported to the Russian Railway network by the Company's own railway company (70 km of railroads, 6 railway stations, 12 mln. tonnes p.a. capacity); Own repair and maintenance services and power infrastructure. The intra-year volatility of production and stripping ratio, driven by a seasonality of Russian coal market should become lower with the growth of export volumes. Further expansion of the production will be based on existing facilities, licenses, and infrastructure and will not require significant capital expenditure, other than into additional mining and transportation equipment. 6/22#7INVESTMENT PROGRAM K Investment program (1) in 2011 composed USD 88 mln. net of VAT. The largest investment items included: Acquisition of large mining and transport equipment A The construction of the second enrichment plant with 4 mln. tonnes annual capacity The completion of construction fuel and lubricants dump In 2012-2016 there will be 4 major investment categories: Development of Bryanskiy open-pit mine to start coal production in 2015 Construction of 3 new coal processing and enrichment facilities to improve coal quality and raise production efficiency Continued procurement of mining equipment to increase production at the existing open-pit mines Equipment procurement plan CAPEX 2011 Dec 31, 2011 CAPEX 2012-2016 Shovels 2 22 15 (3 P&H) (P&H, Komatsu, EO) 22 88 64 Trucks (BelAZ) Dozers (Komatsu) 9 20 9 Loaders (Komatsu) 2 34 3 Graders (Komatsu, 1 4 2 CAT) CAPEX forecast breakdown, 2012-2016(2) 7% 4% Drill Rigs (Ingersoll Rand) 1 4 3 4% 7% 200 USD mln. 160 USD 521 128 122 2 30 mln. 47 8 7 3 37 % 5 2% % 100 10 72 11 3 29 37 7 5 10 6 39 A 99 62 16 2 2 3 1 56 28 32 0 2012 2013 2014 2015 2016 | Processing and enrichment plants Equipment Other infrastructure ■Bryanskiy coal deposit Enrichment facilities launching schedule: Enrichment plant #2 (KNS and Dense-medium technology) with 4 mln. tonnes annual capacity planned to be launched in Q4 2012 Enrichment plant #3 (Oxidized coal) planned to be launched in 2013 Enrichment plant #4 (Dense-medium technology) with 7-8 mln. tonnes annual capacity planned to be launched in 2015. Other Retail network infrastructure Railway infrastructure (1) - Figures were converted to USD using the average exchange rate of the Central Bank of the Russian Federation (2011: 29.39 RUB/USD) (2)- Net of VAT, USD figures were converted from RUB using 30.00 RUB/USD exchange rate 7/22#8II. - OPERATIONAL HIGHLIGHTS www.oaoktk.ru/en K 8/22#9OPERATIONAL HIGHLIGHTS K YOY growth of coal extraction and processing In Q4 2011 coal production increased by 5.3% QOQ to 2.57 mln. tonnes (Q3 2011: 2.44 mln. tonnes). During 2011 it increased 28.4% YOY to 8.74 mln. tonnes (2010: 6.80 mln. tonnes). The coal sorting volume in Q4 remained on the level of Q3 2010 - 1.51 mln. tonnes. As for total 2011 - the volume increased by 35.4% YOY to 5.56 mln. tonnes (2010: 4.10 mln tonnes). KNS enrichment plant is working at full capacity In 2011 the Company's first KNS enrichment plant worked at close to full capacity level and produced 736 th. tonnes of export quality coal (2010: 200 th. tonnes). Boost of coal sales volume and increase of average realised price During Q4 2011 the sales volume increased by 18.9% QOQ to 3.34 mln. tonnes (Q3 2011: 2.81 mln. tonnes). The volume of coal sales in 2011 increased by 24.8% YOY and reached 10.66 mln. tonnes (2010: 8.54 mln. tonnes). In Q4 the average realized coal price (1) increased by 4.5% QOQ to RUB 1,285 per tonne (Q3 2011: RUB 1,229 per tonne). The average price for 2011 increased by 25.6% YOY to RUB 1,228 per tonne (2010: RUB 977 per tonne). Stripping ratio QOQ decrease, but slight growth YOY The stripping ratio in Q4 decreased by 0.3% QOQ to 7.35x (Q3 2011: 7.37x). The volume of blasted rock mass increased by 42.3% QOQ to 10.72 mln. cbm. (Q3 2011: 7.53 mln. cbm.). The average stripping transportation distance decreased by 4.1% QOQ to 2.95 km (Q3 2011: 3.08 km) During 2011 the stripping ratio raised by 7.3% YOY to 7.80x (2010: 7.27x). The blasted rock mass grew by 29.0% to 32.79 mln cbm. (2010: 25.43 mln cbm.). The average stripping transportation distance extended by 5.9% YOY to 2.88 km (2010: 2.72 km). Source: Company (1) - excl. VAT, Russian Railways tariff (FCA Meret, incl. KTK retail margin) 9/22#102011 COAL SALES BREAKDOWN Coal resale 19.5% 10.66 mln. tonnes 80.5% Own coal Domestic market { K 60.5% 10.66 mln. Export market tonnes 39.5% Domestic market Source: Company Power generating companies (TGK/OGK) 13.0% 31.0% 4.21 mln. tonnes 55.0% Public utilities Retail customers Export market Asia-Pacific Region 45.3% 6.45 mln. tonnes 54.7% Eastern Europe 10/22#11AVERAGE REALISED PRICES VS BENCHMARKS K KTK realized export prices (1) vs. international FOB and CIF benchmarks, USD/tonne USD/tonne 150 130 110 90 70 0 88.57 89.73 90.24 92.38 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 KTK export price Jul-11 Aug-11 CIF ARA 6,000 kkal/kg Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 FOB Indonesia 5,800 kkal/kg KTK FCA prices vs. Russian EXW benchmark, USD/tonne USD/ tonne 44 41.96 42.27 42 41.13 40.91 10 40 38 36 Jan-11 Feb-11 Mar-11 Apr-11 May-11 KTK - domestic price, FCA Meret Jun-11 Jul-11 00 Source: Company, Metal Expert for average EXW prices in Russia and CIF ARA, Argus for FOB Indonesia (1) - Net of VAT, average KTK export realized price incl. railway tariffs (2) Average KTK realized quarterly Western shipments price DAF, excluding shipments to Ukraine Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Average price EXW in Russia, based on 4,500-5,000 kkal/kg 11/22#12AVERAGE REALISED PRICES VS BENCHMARKS 3.53 mln. tonnes Eastern European Countries North-West FD 0.11 Moscow mln. tonnes Railroad to the Polish Central FD border 0.01 mln. tonnes Urals FD 0.10 mln. tonnes Domestic market $4.21 mln. tonnes(1 3.85 mln. tonnes Siberian FD Volga ED Tomsk Region 0.15 mln. tonnes Omsk Region Novosibirsk Region Kemerovo Region Altay Region Source: Company (1) - Sales volumes FY 2011 (incl. purchased coal) TTTTTTT 109876543210 mln. tonnes K KTK's transport flows Omsk region Domestic sales Asia-Pacific Export sales P Headquarters 2.92 mln. tonnes Asia-Pacific Railroad to the station at Nakhodka-East port Quarterly coal sales breakdown by market Average quarterly domestic and export prices comparison (2) 10.66 1 300 1,213 1,237 1,228 8.54 2.08 7.41 1 100 1,021 2.16 2.13 970 977 $41 $42 $42 943 1.38 892 848 900 $34 2.63 $31 $31 $32 3.33 $27 6.45 $28 700 3.75 2.69 2009 2010 2011 Export Russia (own coal) Russia (purchased coal) 500 2009 2010 Average domestic price Average export price Source: Company (2)- prices are net of VAT and railroad tariffs; domestic prices include costs associated with retail distribution network; prices are converted to USD using average Central Bank of the Russian Federation exchange rates for each year (2009: 31.72 RUB/USD; 2010: 30.38 RUB/USD; 2012: 29.39 RUB/USD) 2011 Average general price 12/22#13RETAIL NETWORK K Since its establishment, the Company has been continuously expanding and building its retail sale and storage network: own 67 points of sale as at the end of 2011; additional points of sale planned to be acquired or established. Wide distribution network and strong regional presence position the Company as one of the principal suppliers of coal to retail costumers, municipalities, and public utilities in Western Siberia. When export prices are high, the Company uses lower quality third-party coal to satisfy domestic demand, while shifting its own higher quality coal to export markets. Retail sales breakdown mln. tonnes 3.29 1.35 3.18 1.24 0.12 0.14 0.40 0.29 4 3 3 2 2 1 1.42 1 0 Retail network in Western Siberia 2011 Omsk Region 5 points of sale 0.14 mln. tonnes (1) Omsk 1.43 P Headquarters 26 points of sale 1.24 mln. tonnes (1) Novosibirsk Region 9 points of sale 0.29 mln. tonnes (1) Company's ownership Retail Subsidiary Kuzbasstoplyvosbit 100% TransUgol 51% Novosibirsk TK 51% Altay TK 51% Novosibirsk Barnaul Altay Region Kemerovo Kemerovo Region 27 points of sale 1.43 mln. tonnes (1) 2010 2011 Source: Company Altay TK TransUgol Novosibirsk TK (1) including coal resale ■Kuzbasstoplyvosbit Source: Company 13/22#14III. FINANCIAL PERFORMANCE www.oaoktk.ru/en K 14/22#15REVENUE Key financial indicators (1) USD mln. 2009 2010 2011 2011 Revenue breakdown by segments (1) 2% 9% K Revenue Growth rate 336 466 814 -2% 39% 75% 17% Cost of sales (255) (377) (660) Gross profit 81 89 154 Gross profit margin 24% 19% 19% SG&A and other expenses (34) (44) (56) EBITDA (2) 69 70 133 ■ Own coal, export ■ Own coal, Russia USD 814 mln. Coal resale, Russia ■ Other revenue 72% EBITDA margin 20% 15% 16% Operating profit (EBIT) 46 45 98 Operating margin 14% 10% 12% Segment revenue dynamics (1) 2010/2011 Net income Net income margin 2800 21 27 69 6% 99 1000 6% 9% 814 +75% 800 Gross debt Net debt 128 125 58 73 141 58 83 600 USD mln. 466 583 +117% 400 344 269 158 200 114 104 137 +32% 47 75 76 +6% 0 2009 2010 2011 Other revenue Coal resale, Russia Own coal, Russia Own coal, export (1) Figures were converted to USD using the average exchange rates of the Central Bank of the Russian Federation for each period (2011: 32.20 RUB/USD; 2010: 30.48 RUB/USD; 2009: 30.24 RUB/USD) (2) EBITDA for each period is defined as results from operating activities, adjusted for amortization and depreciation, impairment loss and loss on disposal of property, plant and equipment 15/22#16COST OF SALES AND EBITDA Cost of sales breakdown and dynamics (1) 29% 2010/2011 660 +75% 250 Production cash costs dynamics (1) 150 113 700 600 500 400 USD mln. 114 300 245 53 USD 660 mln. 193 +69% 55% 200 11% 5% 377 74 +40% 33 +32% USD mln. 200 84 25 100 361 +102% 30 19 100 179 112 0 2009 2010 2011 Other costs Transportation costs Depreciation Coal purchased Production cash costs EBITDA calculation (1) in USD, 2011 814 Revenue (193) (74) Coal production cash costs Coal for re-sale (361) (3) 50 6.80 0 +71% K 40 40 193 55 35 30 25 22 22 20 1 17 15 8.74 2010 Production volume --Cash costs per 1 tonne, USD 2011 Production cash costs (22) (34) 133 Administrative EBITDA expenses Transportation costs Other cost of sales Distribution expenses 10 10 USD per 1 tonne Source: Audited 2009, 2010, 2011 IFRS FS in which all amounts are presented in RUB (1) Figures were converted to USD using the average exchange rates of the Central Bank of the Russian Federation for each period (2011: 32.20 RUB/USD; 2010: 30.48 RUB/USD; 2009: 30.24 RUB/USD) 16/22#17INDEBTEDNESS During 2011 the total net debt increased by 51.8% YoY compared to 2010 Interest paid decreased by 33.3%, from USD 9 mln. to USD 6 mln. The average effective interest rate decreased to 7.7% p.a. Net Debt to EBITDA ratio reduced from 0.82 to 0.68 Debt structure(1) by currency as of Dec 2011 Net Debt to EBITDA(2) 140 125 120 133 4 14% ■ USD loans USD 82 mln. ■ RUB loans 86% K 100 60 80 USD mln. 3 Debt maturity structure (1) 62 82 59 69 70 70 2 80 58 Total Debt(3): 70 70 60 60 1.81 70 USD 141 mln. 62 62 60 40 40 1 50 0.82 0.68 40 20 USD mln. 30 0 2009 2010 2011 Net debt EBITDA --Net debt/EBITDA 0 20 10 10 0 > 1 year 1-3 years > 3 years Source: audited 2009, 2010, 2011 IFRS FS in which all amounts are presented in RUB (1) Figures were converted to USD using the average exchange rates of the Central Bank of the Russian Federation for each period (2011: 32.20 RUB/USD; 2010: 30.48 RUB/USD; 2009: 30.24 RUB/USD) (2) Figures were converted to USD using the average exchange rates of the Central Bank of the Russian Federation for each period (2011: 29.39 RUB/USD; 2010: 30.38 RUB/USD; 2009: 31.77 RUB/USD) (3) Calculations are made before rounding of figures converted to USD 17/22#18IV. APPENDIX www.oaoktk.ru/en K 18/22#19INCOME STATEMENT 2009-2011 RUB mln. Revenue Cost of sales Gross profit 2009 2010 2011 10,658 (8,101) 14,160 (11,457) 23,939 (19,404) 2,557 2,703 4,535 Distribution expenses (363) (540) (654) Administrative expenses (706) (849) (1,010) Other income and expenses, net (19) 39 24 Opertaing profit 1,469 1,353 2,895 Finance income 65 Finance costs (656) 99 (385) (394) 55 Income of associates 5 4 Profit/(loss) before income tax 878 1,072 2,560 Income tax expense (215) (249) (542) Profit/(loss) for the year 663 823 2,018 Profit/(loss) for the year margin 6% 6% 8% EBITDA (1) EBITDA margin 2,178 20% 2,134 15% 3,911 16% Source: audited 2009, 2010, 2011 IFRS FS (1) EBITDA for each period is defined as results from operating activities, adjusted for amortization and depreciation, impairment loss and loss on disposal of property, plant and equipment K 21/22#20BALANCE SHEET 2009-2011 RUB mln. ASSETS Non-current assets 2009 2010 2011 RUB mln. EQUITY AND LIABILITIES Equity K 2009 2010 2011 Share capital 17 20 20 Property, plant and equipment 7,333 8,804 10,358 Retained earnings 3,409 3,975 5,672 Goodwill and intangible assets 14 14 18 Additional paid-in capital 2,829 2,829 Investments in equity accounted investees 3 8 29 Total attributable to equity holders of the company 3,426 6,824 8,521 Other investments 67 6 5 Minority interest 41 11 4 Long-term receivables 7 1 Total equity 3,467 6,835 8,525 Deferred tax assets 6 19 45 Non-current liabilities Total non-current assets 7,430 8,852 10,455 Loans and borrowings 2,204 1,676 2,794 Net assets attributable to minority participants in LLC entities 66 68 83 Current assets Inventories Provisions 237 265 262 405 759 1,275 Retirement benefit liability 15 39 Other invetsments 7 39 27 Deferred tax liabilities 362 448 432 Income tax receivable 30 6 9 Total non-current liabilities 2,869 2,472 3,837 Trade and other receivables 1,227 1,086 1,562 Prepayments and deferred expenses 230 440 916 Current liabilities Cash and cash equivalents 86 457 1,884 Loans and borrowings 1,655 535 1,753 Trade and other payables 1,414 1,767 1,955 Total current assets 1,985 2,787 5,673 Retirement benefit liability 4 5 Provisions 3 TOTAL ASSETS 9,415 11,639 16,128 Income tax payable 10 26 50 Total current liabilities 3,079 2,332 3,766 Total liabilities 5,948 4,804 7,603 TOTAL EQUITY AND LIABILITIES 9,415 11,639 16,128 20/22#21CASH FLOW STATEMENT 2009-2011 RUB mln. 2009 2010 2011 RUB mln. K 2009 2010 2011 OPERATING ACTIVITIES INVESTING ACTIVITIES Profit/(loss) for the period 663 823 2,018 Adjustments for: Proceeds from disposal of property, plant and equipment Loans issued 42 21 25 (217) (87) (17) Depreciation and amortisation 689 820 1,039 Impairment loss 15 7 (1) Proceeds from loans previously issued incl, interest received 233 130 60 Loss(gain) on disposal or write-off of property, plant and 4 (46) (22) Acquisition of property, plant and equipment (1,084) (2,499) (2,581) equipment Income of associates (5) (4) Acquisition of subsidiaries, net of cash acquired (10) Net finance expense 591 286 339 Acquisition of equity accounted investees (17) Income tax expense 215 249 542 Cash flow used in investing activities (1,030) (2,435) (2,540) Operating result before change in working capital 2,176 2,134 3,911 FINANCING ACTIVITIES Change in inventories 107 (354) (511) Change in trade and other receivables (126) 126 (487) Proceeds from borrowings 7,119 5,273 12,414 Change in prepayments for current assets (27) (215) (478) Repayment of borrowings (6,904) (6,960) (10,210) Change in trate and other payables (583) 617 425 Cash flow from operations before income tax and interest 1,547 2,321 2,844 Proceeds from share issue, net of issue costs Dividends paid 2,805 (253) (298) Cash flow from financing activities 221 840 1,906 Income taxes and penalties paid Interest paid Cash flows from operating activities (281) (101) (563) (640) (275) (207) Net increase (decrease) in cash and cash equivalents (183) 436 1,440 626 2,031 2,074 21/22#22CONTACTS OJSC "Kuzbasskaya toplivnaya Company" www.oaoktk.ru/en Head office in Kemerovo: 4,50 let Oktyabrya street, Kemerovo, 650991, Russia Representative office in Moscow: 29, Serebryanicheskaya embankment, Moscow, 109028, Russia Eduard Alekseenko First Deputy Chief Executive Officer T: +7 (3842) 58-58-60 (Kemerovo) E-mail: [email protected] Vasily Rumyantsev Investor Relations Manager T: +7 (495) 787-68-05 (Moscow) E-mail: [email protected] Skype: vasily.rumyantsev K 22/22