Annual report and accounts 2012

Consolidated Statements of Cash Flows

OAO Severstal and Subsidiaries
Financial Statements
Consolidated Statements of Cash Flows

Years ended December 31, 2012, 2011 and 2010
(Amounts expressed in thousands of US dollars, except as otherwise stated)

 Year ended December 31,
 201220112010
Operating activities:   
Profit before financing and taxation1,246,1802,852,4142,081,577
Adjustments to reconcile profit to cash generated from operations:   
Depreciation and amortization726,045646,821615,979
Impairment/(reversal of impairment) of non-current assets (Note 7)54,117(438)80,130
Movements in provision for inventories, receivables and other provisions128,33334,2959,684
Loss on disposal of property, plant and equipment and intangible assets25,96220,93942,790
Gain on disposal of subsidiaries and associates (Note 28)(9,873)(21,033)-
Loss on remeasurement and disposal of financial investments (Note 6)6,5814,652146,322
Share of associates' and joint ventures' results
less dividends from associates and joint ventures
6,83916,176(8,661)
Changes in operating assets and liabilities:   
Trade accounts receivable228,989(280,836)(156,036)
Amounts receivable from related parties1,340(59,578)15,001
VAT recoverable(39,866)42,708(48,884)
Inventories153,922(535,842)(431,073)
Trade accounts payable(155,580)272,951130,238
Amounts payable to related parties(198)11,290197
Other taxes and social security payable7,84122,88222,611
Other non-current liabilities(8,342)3,335(621)
Assets held for sale-7,242(3,378)
Net other changes in operating assets and liabilities2,03594,406(94,695)
Cash generated from operations2,374,3253,132,3842,401,181
Interest paid(424,322)(441,295)(551,884)
Income tax paid(191,391)(514,150)(309,983)
Net cash from operating activities - continuing operations1,758,6122,176,9391,539,314
Net cash (used in)/from operating activities - discontinued operations(8,253)402,496(280,140)
Net cash from operating activities1,750,3592,579,4351,259,174
    
Investing activities:   
Additions to property, plant and equipment(1,336,450)(1,609,493)(1,011,870)
Additions to intangible assets(111,729)(106,722)(63,552)
Net decrease/(increase) in short-term bank deposits-13,150(46,661)
Additions to financial investments and associates(103,920)(40,619)(211,125)
Net cash outflow on acquisitions of subsidiaries (Note 28)--(7,535)
Net cash inflow from disposals of subsidiaries (Note 28)-96,994118,647
Proceeds from disposal of property, plant and equipment8,76216,7225,910
Proceeds from disposal of financial investments364,2627,892169,430
Interest received105,82544,23696,889
Dividends received13,74228,435-
Cash used in investing activities - continuing operations(1,059,508)(1,549,405)(949,867)
Cash used in investing activities - discontinued operations(42,518)(352,115)(549,399)
Cash used in investing activities(1,102,026)(1,901,520)(1,499,266)
    
Financing activities:   
Proceeds from debt finance2,825,7872,000,4143,478,424
Repayment of debt finance(3,098,195)(2,010,250)(3,218,308)
Repayments under lease obligations(4,542)(8,020)(4,323)
Dividends paid(344,396)(380,162)(130,068)
Repurchase of issued shares(19,874)--
Acquisitions of non-controlling interests(193,883)(3,020)(113,297)
Disposal of non-controlling interests--5,744
Contributions from non-controlling interests-13,610-
Cash (used in)/from financing activities - continuing operations(835,103)(387,428)18,172
Cash used in financing activities - discontinued operations-(151,626)(306,053)
Cash used in financing activities(835,103)(539,054)(287,881)
Effect of exchange rates on cash and cash equivalents7,339(70,852)(104,719)
Net (decrease)/increase in cash and cash equivalents(179,431)68,009(632,692)
Less change in cash and cash equivalents of discontinued operations42,168--
Less cash and cash equivalents of discontinued operations and assets
held for sale at the end of the period
-(217,133)(208,022)
Cash and cash equivalents at beginning of the period1,863,5382,012,6622,853,376
Cash and cash equivalents at end of the period1,726,2751,863,5382,012,662

The accompanying notes form an integral part of these consolidated financial statements.