Investor Presentaiton
Financial and operating highlights
Management's Discussion and Analysis
Nine months ended September 30, 2011
In the first nine months of 2011, operating results have considerably improved compared to the corresponding period of 2010. The following table provides
consolidated operating results for the periods presented below:
Nine-month period ended 30 September
2011
2010
Change
in millions of U.S. dollars
in %
Sales volume, in thousand tonnes
Revenue
Cost of sales
GROSS PROFIT
GROSS PROFIT MARGIN, %
Operating expenses
1
3,168
2,852
11%
5,151
3,931
31%
(4,036)
(3,018)
34%
1,115
913
22%
22%
23%
(546)
(505)
8%
Foreign exchange (loss)/gain, net
(5)
16
(131)%
Gain on changes in fair value of derivative financial instrument
44
10
340%
Finance costs, net
(210)
(276)
(24)%
INCOME BEFORE TAX
398
158
152%
Income tax expense
(120)
(56)
114%
NET INCOME
279
102
174%
NET INCOME ADJUSTED FOR GAIN ON CHANGES IN FAIR
VALUE OF DERIVATIVE INSTRUMENT 2
235
92
155%
3
ADJUSTED NET INCOME MARGIN, %
ADJUSTED EBITDA
5%
2%
4
827
ADJUSTED EBITDA MARGIN
16%
649
17%
27%
For the purposes of this report, net income has been adjusted for the gain on changes in the fair value of the derivative financial instrument in the amount of
U.S.$44 million in the first nine months of 2011 compared to U.S.$10 million in the corresponding period of 2010 to reflect management's opinion in respect of
the treatment of the conversion option (see “Gain on changes in fair value of derivative financial instrument”).
2
1 "Operating expenses" include selling and distribution, general and administrative, advertising and promotion, research and development, impairment of goodwill, gain on disposal of assets held for sale and net other operating
income/expense.
Net income adjusted for gain on changes in fair value of derivative financial instrument is presented in the table because we consider the measure an important supplemental measure of performance. Net income adjusted for loss on
changes in fair value of derivative financial instrument is not a measurement of performance under IFRS and should not be considered as an alternative to net income or any other performance measures derived in accordance with IFRS.
3 Adjusted net income margin is calculated as the quotient of Net Income adjusted for gain on changes in fair value of derivative instrument divided by Revenue.
4 Adjusted EBITDA as stated in the Group IFRS Financial Statements.
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