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8

Financial indicators

In 2018, the REC Group ensured stable positive financial indicators amid the increasing support and enhancing instruments, including the breakeven point and reduced operating expenses.

As REC does not earn any income from the main activities, it finances the expenses from the investment income, dividends and loans received from other companies of the REC Group.

Table 6
REC assets and liabilities, thousand rubles
Indicator As of 31 December
2018
As of 31 December
2017
As of 31 December
2016
ASSETS
I.NON-CURRENT ASSETS
Intangible assets35,40037,86928,266
Fixed assets12,85815,42816,291
Financial investments67,672,57467,464,42957,400,009
Deferred tax assets39,62956,83649,666
Total Section I67,760,46167,574,56257,494,232
II. CURRENT ASSETS
Inventories4,4862,7114,296
Input value added tax140,92996,44145,657
Receivables332,556463,14773,246
Financial investments (except for equivalents)3,285,8883,169,5423,055,910
Cash and cash equivalents 701,250956,102757,145
Other current assets55,78666,8918,039
Total section II4,520,8954,754,8343,944,293
TOTAL72,281,35672,329,39661,438,525
LIABILITIES
III. CAPITAL AND RESERVES
Registered capital (share capital, authorized capital, contributions of partners)71,239,73871,239,73857,632,000
including paid registered capital (before amendments to the Charter)-11,776,5888,832,000
Additional paid-in capital1,688--
Reserve capital23,0424,3034,303
Retained profit (uncovered loss)351,132237,592-137,189
Total Section III71,615,60071,481,63357,499,114
IV. LONG-TERM LIABILITIES
Borrowed funds100,000200,0000
Deferred tax liabilities1,3021,8481,138
Total Section IV101,302201,8481,138
V. SHORT-TERM LIABILITIES
Borrowed funds--3,816,277
Payables108,41678,74017,606
Deferred income221,332410,5720
Provisions234,706156,603104,390
Total section V564,454645,9153,938,273
TOTAL72,281,35672,329,39661,438,525
Net assets71,615,60071,481,63357,499,114

The financial result for 2018 amounted to 132 million rubles. Dividends from EXIAR JSC and Afreximbank (46 million rubles) are the main source of profit.

Table 7
REC financial result, thousand rubles
Indicator January-December
2018
January-December
2017
Revenue-192
Cost of sales--739
Gross profit (loss)--547
Business expenses-0
Administrative expenses-4,201,437-2,545,496
Profit (loss) from sales-4,201,437-2,546,043
Participation income1,245,7051,137,797
Interest receivable389,004504,825
Interest due--106,086
Other income3,189,7211,775,951
Other expenses-467,534-398,123
Profit (loss) before tax155,459368,321
Income tax-6,5190
including permanent tax liabilities-237,002-216,077
Change in deferred tax liabilities546-710
Change in deferred tax assets-17,2077,170
Net income(loss)132,279374,781

Thus, in 2018, the REC Group managed to achieve all key goals. The results achieved by the company will serve as a guarantee of further development in the next year.

Company’s priority objectives for 2019 include maintaining and increasing Russian non-primary exports, constantly improving the quality of services, developing an export culture and creating demand for Russian goods and services, increasing the degree of confidence of entrepreneurs in the state export support system.