Power Machines Publishing Financial Statements for 2010

Power Machines OJSC, a leading Russian manufacturer of power generating equipment, produced monthly accounting reports for 2010 in accordance with International Accounting Standards (IAS).

KEY FINANCIAL STATEMENTS OF POWER MACHINES OJSC FOR 12 MONTHS OF YEAR 2010 IN ACCORDANCE WITH INTERNATIONAL ACCOUNTING STANDARDS

$ thousand, unless otherwise stated 12 months 2010,
$ thousand
12 months 2009,
$ thousand
Diff., %
Revenue

1,674,621

1,852,633

90.4

Production cost

(1,183,203)

(1,380,610)

(85.7)

Gross profit

491,418

472,023

104.1

Operating profit

303,273

244,719

123.9

Operating margin, %

18.1

13.2

-

Profit before taxation

300,312

231,666

129.6

Net profit

255,655

193,281

132.3

EBITDA

363,233

297,018

122.3

EBITDA margin, %

21.7

16.0

-


KEY FINANCIAL RESULTS FROM POWER MACHINE'S OJSC ACTIVITIES

• Since 2008 Power Machines have been generating a steady profit, and the results from 2010 confirm the trend. Net profit of the company in 2010 has grown by 32.3% in comparison with that in 2009, to $ 255.6 mln.

• Thanks to implementation of a large-scale investment programme aimed at lowering production cost and minimizing production expenses, the company's EBITDA of $ 363.2 mln in 2010 represents a 1.2 times increase over the EBITDA for 2009.

• EBITDA margin is 21.7%.

• As of 31 December 2010, Power Machines’ order portfolio was $ 4.194 bln, which is 14.8% higher than that in 2009. The growth of order portfolio is largely connected with a significant rise in domestic demand for power generating equipment, particularly in the field of repair, service and modernization of currently operated turbines and generators. The portion of contracts in the domestic market within the total number of contracts signed in 2010 is 74%, while the portion of those from the overseas market (including CIS countries) is 26%.

• The company's investment volume reached 3.5 bln roubles in 2010. The investment budget for 2011 exceeds 4.3 bln roubles, which is 22% higher than that for 2010. The objective of the investment programme, which has been implemented by Power Machines since 2008, is to create a modern industrial company with upgraded, rationally sited production facilities, to decrease production costs, increase the company's production capacity and to introduce new types of products.

• The investment programme is mainly aimed at extending research and development activities to create new types of products with technical characteristics meeting and exceeding those of similar products available at the global market; developing current production and laboratory-testing facilities of the company; constructing a new plant for the production of power equipment.

• Currently, the construction of the first start-up facility to manufacture low-speed and high-speed turbogenerator units for nuclear power plants with a capacity of up to 1,600 MW is in progress in the Metallostroy industrial zone of Kolpinsky District of St. Petersburg. The construction of the first start-up facility is planned to be completed in March 2012 and output of new products is expected to appear in 2013. The level of technology employed in the new production facility will meet the highest international standards. With the new production facility having reached its full production capacity in 2014, Power Machines increase its production capacity up to the output of power generating equipment with total capacity of 14 GW annually. The construction is financed from company's own funds. Total volume of investments into the construction of the first start-up facility is 6.6 bln roubles.