3.2.7 Key IFRS metrics
Key 2023 IFRSInternational Financial Reporting Standards metrics of the Group, RUBruble million
| Metric | 2022 | 2023 |
|---|---|---|
| Revenues, incl.: | 89,194 | 106,103 |
| — revenues from electricity transmission | 77,588 | 91,293 |
| — revenues from connection | 1,899 | 2,926 |
| — revenues from electricity sales | 21,901 | 25,464 |
| — other revenues | 1,595 | 1,836 |
| — revenues from discontinued operations | -13,789 | -15,416 |
| Operating expenses | 84,703 | 93,202 |
| Expected credit loss provision | -751 | -166 |
| Net other income | 984 | 1,419 |
| Operating result | 6,226 | 14,486 |
| Balance of financial income and expenses | -1,485 | -1,305 |
| Profit before tax | 4,741 | 13,181 |
| Income tax | 1,322 | 2,564 |
| Net income from continuing operations | 3,419 | 10,617 |
| Net income from discontinued operations | 857 | 1,238 |
| Profit for the period | 4,276 | 11,855 |
| EBITDAearnings before interest, taxes, depreciation and amortization* | 15,933 | 24,703 |
| EBITDAearnings before interest, taxes, depreciation and amortization margin,% | 15,5% | 20,3% |
| Net debt** | 19,942 | 20,161 |
* EBITDAearnings before interest, taxes, depreciation and amortization = Profit/loss before tax + Depreciation and Amortization + interest payable (loans, lease) + impairment loss.
** Values include discontinued operations for comparative purposes, based on the IFRSInternational Financial Reporting Standards statements.
The main portion of the Group’s revenues comes from electricity transmission. These revenues mainly depend on approved tariff rates and volume of transmitted electricity. The Group also has revenues from electricity sales, connection and other services. In Group’s FY2023financial year 2023 IFRSInternational Financial Reporting Standards consolidated financial statements operations of AOJoint-Stock Company Yekaterinburgenergosbyt (AOJoint-Stock Company EES) was classified as discontinued operations, therefore, figures from the Group’s FY2022financial year 2022 and FY2023financial year 2023 consolidated statements of profit or loss and other comprehensive income present figures, net of discontinued operations, except for profit for the period.
FY2023 revenues of the Group totaled RUBruble 106,103 million (+RUB 16,909 million or 19.0%), incl.:
- A RUBruble 13,705 million increase of revenues from electricity transmission is affected by grown transmission rates and 2023 net supply;
- A RUBruble 1,027 million increase of revenues from connection is affected by various groups of applicants and structure of concluded contracts;
- A RUBruble 3,563 million increase of revenues from electricity sales is affected by grown tariffs and electricity consumption;
- A RUBruble 241 million increase of other revenues is affected by the progress in activities and conclusion of additional contracts.
FY2023financial year 2023 operating expenses totaled RUBruble 93,202 million (+RUB 8,499 million YoYyear on year). The key growth factors are increased expenses on electricity transmission, on loss compensation, on purchased electricity for sale and on personnel. We recognized a RUBruble 166 million gain in expected credit loss provision in 2023 as a result of recovery of bad debt reserve due to debt repayment by the debtor.
Net other income in 2023 totaled RUBruble 1,419 million (+RUB 435 million YoYyear on year). Other operating revenues include gains from uncontracted consumption, from loss compensation due retirement/liquidation of grid assets, gains from fines, penalties and forfeits, writing-off of payables and insurance indemnity.
FY2023financial year 2023 net income of the Group totaled RUBruble 11,855 million (+RUB 7,579 million YoYyear on year), the increase affected by positive growth of operating profit stemming from increased revenues from electricity transmission and other income. FY2023financial year 2023 EBITDAearnings before interest, taxes, depreciation and amortization includes volumes of discontinued operations and totaled RUBruble 24,703 million (+RUB 8,770 million YoYyear on year). Exceedance of revenues over operating expenses and additional other revenues contributed the most to the indicator’s growth.
| Metric | 2021 | 2022 | 2023 | 2023/2022, % |
|---|---|---|---|---|
| Net Debt / EBITDAearnings before interest, taxes, depreciation and amortization ** | 1.14 | 1.25 | 0.82 | -34% |
| Current liquidity ratio ** | 0.49 | 0.48 | 0.77 | 60% |
| Financial leverage ** | 0.92 | 1.05 | 0.88 | -16% |
| Share of LT loans ** | 0.60 | 0.58 | 0.94 | 62% |
| Net cash flow **, RUBruble million | 2,116 | 1,661 | 2,390 | 44% |
** Calculations in the table above use consolidated financial statements prepared under IFRSInternational Financial Reporting Standards. FY2022financial year 2022 and FY2023financial year 2023 include discontinued operations for comparative purposes, based on the IFRSInternational Financial Reporting Standards statements.
Net/EBITDA as of 31.12.2023 is lower than Net/EBITDA as of 31.12.2022 due to increased EBITDAearnings before interest, taxes, depreciation and amortization. Current liquidity ratio as of 31.12.2023 is higher than Current liquidity ratio as of 31.12.2022 due to decreased ST liabilities as of 31.12.2023. Financial leverage as of 31.12.2023 is higher than Financial leverage as of 31.12.2022 due to grown equity. Share of LT loans as of 31.12.2023 is higher than share of LT loans as of 31.12.2022 due to the increased volume of LT loans and borrowings on the back of slightly increased debt. Net cash flow in 2023 is positive. Net cash flow in 2023 is higher than Net cash flow in 2022, affected by grown net cash flows from operating activities.