Open joint-stock company territorial generating company no. 9 (стр. 12 )

Return on sales is the sales profit/turnover ratio reflecting the sales profit to be earned by the Company per each ruble earned from sales of production. Return on sales of the Company as of the end of reporting year amounts to 2.2 % , i. e. per each 100 rubles earned the Company received 2.2 rubles of sales profit.

Financial stability

Table 5.2.6.

Indicator	Calculation formula	Optimum value	As of December 31, 2009	As of December 31, 2010	As of December 31, 2011
Equity to total assets ratio	Line (1300+1530), F.1 / Line 1700, F.1	0.5-0.8	0.65	0.57	0.51
Financing ratio	Line 1300, F.1 / Line (1400+1500), F.1	>0.7	1.82	1.29	0.93
Financial stability ratio	Line (1300+1400), F.1/ Line 1700, F.1	>0.6	0.74	0.83	0.68
Receivables to payables ratio	Line (1231+1235), F.1/ Line 1520, F.1	>1.0	2.73	1.48	2.80

Equity to total assets ratio shows the equity to total capital (assets) ratio. It reflects the company’s independence from its creditors. As of the end of 2011 the equity to total assets ratio amounts to 0.51 which is within the Optimum Value (0.5-0.8).

Financing ratio shows the part of the company’s activities financed out of its equity capital and the one financed out of borrowed funds. As of December 31, 2011 the financing ratio amounts to 0.93 which is higher than the minimum allowed value (0.7).

Financial stability ratio as of the end of 2011 is within the Optimum Value range (0.68 > 0.6) and shows the sufficient financial stability level of the Company.

Efficiency indicators

Table 5.2.7.

Indicator	Calculation formula	As of December 31, 2009	As of December 31, 2010	As of December 31, 2011
Receivables turnover ratio, turnovers	Line 2110, F.2 / (0,5*(Line 1231beg+Line 1231 end+Line 1235beg+Line 1235 end)), F.1	3.69	3.29	3.47
Period of clearing the receivables, days	ND / RTR, where ND is the number of days in period	99	111	105
Payables turnover ratio, turnovers	Line 2110, F.2 / (0,5*(Line 1520beg+Line 1520end)), F.1	8.16	6.33	6.69
Period of clearing the payables, days	ND / PTR, where ND is the number of days in period	45	58	55

Turnover indicators determine the debt repayment risk. The higher the turnover indicator, the faster the receivables and payables are repaid. The longer the repayment period, the higher the risk receivables and payables repayment risk.

In 2011, the receivables repayment period was 105 days and it is 6 days less than the clearing period in 2010, thus showing the improvement of receivables performance.

In 2011 the payables repayment period was 55 days and it is 3 days less as compared to 2010.

5.3. Distribution of Profit for the Past Three Years.

Profit distribution from 2008 to 2010

Table 5.3.1.

Unit: ‘000 RUB

	2008	2009	2010
Undistributed profit (loss) for the reporting period:	45,994	4,214,856	476,105
To be distributed to:
Reserve capital	39,832	210,743	23,805
Accumulation fund	6,162	-	-
Dividends	-	-	-
Uncovered loss of past years	-	-	-
Undistributed profit	-	4,004,113	452,300

6. INVESTMENT ACTIVITY

6.1. Investments of the Company

Amount and structure of capital expenditures for 2011

One of the priorities of implementing the Investment Program in 2011 was the implementation of sustainable solutions in OJSC TGC-9 companies while preserving the sufficient level of investments to reliability improvement of operational equipment.

In 2011 OJSC TGC-9 invested RUB4,372,791,000, excluding VAT. These included modernization and reconstruction investments amounted to RUB1,563,390,000, excluding VAT, development and new construction investments amounted to RUB2,809,400,000, excluding VAT. The Company commissioned and certified by Commissioning Certificates fixed assets amounting to RUB1,998,500,000.

Capital expenditures structure of the 2011 Investment Program, ‘000 RUB, net of VAT:

 

Tехническое перевооружение и реконструкция	Modernization and reconstruction
Развитие и новое строительство	Development and new construction

Structure of capital expenditures under the 2011 Modernization and Reconstruction Plan:

 

Повышение энергоэффективности	Energy efficiency level improvement
Создание систем противоаварийной и режимной автоматики	Emergency and profile control systems development
Создание систем телемеханики и связи	Supervisory control and telecommunication systems development
Прочие вложения	Other expenditures

Sources of financing of the 2011 Investment Program:

‘000,000 RUB

Item No.	Source of Financing	Amount, 2011
Total
Planned*	Actual**
1	Equity capital	12,614.63	5,122.09
1.1.	Invested profit:		207.44
1.1.1.	including investment component in tariffs		207.44
1.1.2.	including the profit from the commercial sector
1.1.3.	including from technological connection (for grid companies)
1.1.3.1.	including from the technological connection of generating companies
1.1.3.2.	including from the technological connection of consumers
1.1.4.	Other profit
1.2.	Depreciation	2,042.14	1,380.22
1.2.1.	Depreciation included in the tariff	2,042.14	1,380.22
1.2.2.	Other depreciation
1.2.3.	Underutilized depreciation of past years
1.3.	VAT recovery
1.4.	Other equity capital	10,572.48	3,544.68
1.4.1.	including additional issue	10,572.48	3,443.20
1.5.	Incoming equity balance
2.	Borrowed funds, including:	7,006.58	361.36
2.1.	Loans	7,006.58	361.36
2.2.	Funded loans
2.3.	Loans from organizations
2.4.	Budgetary financing
2.5.	External investors funds
2.6.	Leasing
2.7.	Other borrowed funds
	TOTAL sources of financing	19,621.20	5,483.45
	For WGC/TGC, including
	Under PSA	17,579.06	3,895.79
	Without PSA	2,042.14	1,587.66

Key activities under the 2011 M&R Program of OJSC TGC-9: