Annual Report 2020

Vocabulary, calculations and formulas

Units of measurement

bcm – Billion cubic meters
bcma – Billion cubic meters per annum
bn – Billion
cub.m. – Cubic meter
cmpa – Cubic meter per annum
km – kilometer
kW – Kilowatt
M – Meter
m3 – Cubic meter
mn – Million
MPa – Megapascal, a unit of pressure measurement
Mt – Millions of tonnes
MW Megawatt
Nm3/Hour – Normal cubic metre per hour
Rub/RUB – Russian ruble
Scm3/hour – Standard cubic meters per hour
t – Ton / tonne
tcm – Trillion cubic meters
US$ – US Dollar

Abbreviations & contractions

API – American Petroleum Institute
Bank of Russia – Central Bank of the Russian Federation,
BIM – Building Information Modelling
BM – Binary mixture
CAGR – Compound annual growth rate, is the mean annual growth rate of an investment over a specified period of time longer than one year
CIS, the – Commonwealth of Independent States
Chg – Change
GDP – Gross Domestic Product
GDR – Global depositary receipt
GTNG – Giprotyumenneftegaz
ERP – Enterprise Restructuring Project
EU – European Union
EUR – Euro
KKM – Kazankompressormash
KMPO – Kazan Motor-Building Production Association (KMPO JSC)
LNG – Liquefied natural gas
LSE – London Stock Exchange
NEM – Nasosenergomash
OGEP – Oil and gas engineering and projects business segment
OPEC – Organization of the Petroleum Exporting Countries
R&D – Research and development
yoy – Year-on-year

Formulas & calculations

Management of the Group assesses the performance of operating segments based on a measure of adjusted EBITDA, which is derived from the consolidated financial statements prepared in accordance with IFRS.

EBITDA is defined as operating profit/loss from continuing operations adjusted for other operating income/expenses, depreciation and amortisation, impairment of assets, excess of fair value of net assets acquired over the cost of acquisition, defined benefits scheme expense and provisions (including provision for obsolete inventory, provision for impairment of accounts receivable, unused vacation allowance, warranty provision, provision for legal claims, tax provision and other provisions). This measurement basis, therefore, excludes the effects of a number of non-recurring income and expenses on the results of the operating segments.

EBIT is calculated as Gross profit minus Distribution & transportation expenses minus General & administrative expenses minus Other operating expenses.

Total debt is calculated as Long-term borrowings plus Short-term borrowings.

Net debt is calculated as Total debt minus Cash & cash equivalents at the end of the period.

ROCE is calculated as EBIT LTM divided by Average Capital Employed (Total debt + Total equity).

ROE is calculated as Total equity period average divided by Profit for the period.

Operating profit adj. & Profit for the year adj. are deferred as adjusted by impairment of PPE, investment property and goodwill.

Working capital is calculated as Inventories plus Trade and other receivables, excluding Short-term loans issued, Bank deposits and Promissory notes receivable, plus Current income tax receivable minus Trade and other payables minus Short-term provisions for liabilities and charges minus Current income tax payable minus Other taxes payable.

Capex = Organic capex = Purchase of PPE + Purchase of intangible assets.