Financial Accounts

Steppe Cement Ltd

PROFIT/LOSS YE 31 Dec 2014 2015 2016 2017 2018 CASH FLOW 2014 2015 2016 2017 2018
USD thousands
Sales 116,635 93,633 52,479 65,855 82,185 Profit before Tax (8,095) (8,815) 682 1,935 10,669
Cost of Goods Sold (80,926) (60,383) (36,871) (45,212) (46,871) Non-Cash Adjustments 27,640 30,623 8,776 9,495 10,659
Gross Profit 35,709 33,249 15,609 20,644 35,314 Funds from Operations 19,545 21,808 9,457 11,430 21,328
SG and A Expenses (31,291) (21,120) (13,127) (17,065) (21,839) Changes in Net Working Capital 270 525 187 784 (2,657)
Other Operating items Operating Cash Flow (before I and T) 19,815 22,333 9,645 12,214 18,671
EBIT (Operating Profit) 4,418 12,130 2,481 3,579 13,474 Total Interest Expense (4,807) (4,073) (2,755) (2,236) (1,650)
Non-operating Items (3,382) (298) 0 (206) (1,787) Total Tax Paid (1,449) (399) (107) 0 (151)
Total Interest Expense (4,788) (4,215) (2,783) (2,237) (1,638) Operating Cash Flow (after I and T) 13,559 17,861 6,783 9,978 16,870
Interest income and other financial Income / expenses (4,344) (16,431) 984 798 619 Purchases Fixed assets (21,835) (1,832) (4,808) (2,104) (3,138)
Profit before Tax (8,095) (8,815) 682 1,935 10,669 Disposals Fixed Intangible assets 477
Taxation 154 5,433 (506) (703) (1,745) Purchases Intangible assets
Profit after Tax (7,941) (3,382) 176 1,231 8,925 Disposals Intangible assets
Interest, Dividend and FX results 8 41 5 62 43
For info (included in operating profit) Acquisitions , Investments net of Divestments (356) (26) (49) (68) (26)
Depreciation (12,240) (10,686) (6,834) (7,266) (7,272) Cash Flow before Financing (8,624) 16,044 1,931 8,343 13,749
Amortisation (32) (6) Total Dividend Paid (3,576) 0 0 0 (2,959)
Impairments Net Debt Drawings / Repayments 17,791 (18,669) (3,318) (6,327) (7,369)
Operating Leases Share Issues / Repurchases (596) (4,264) 4 0 0
EBITDA 16,658 22,816 9,315 10,877 20,753 Net Cash Flow 4,996 (6,889) (1,383) 2,016 3,420
EBITDAR 16,658 22,816 9,315 10,877 20,753
BALANCE SHEET 2014 2015 2016 2017 2018 RATIOS 2014 2015 2016 2017 2018

Cash and Marketable Securities 9,295 2,406 1,023 3,045 5,720 Business Risk:
Trade Debtors (Accounts Receivable) 465 352 1,017 2,775 2,765 Gross Profit / Sales 31% 36% 30% 31% 43%
Stock (Inventory) 22,113 13,320 16,163 13,014 13,381 EBITDA / Sales 14% 24% 18% 17% 25%
Other debtors and other assets 14,282 8,182 5,679 5,687 5,618 FFO / Sales 17% 23% 18% 17% 26%
Investments and assets for sale 0 0 0 0 0 Trade Debtors days on hand 1 1 7 15 12
Net Fixed Assets 151,696 71,787 71,887 67,359 54,612 Inventory days on hand 100 81 160 105 104
Intangible Assets Trade Creditor days on hand 34 27 75 62 51
Assets 197,850 96,047 95,769 91,880 82,096 Net Working Capital / Sales 8% 7% 16% 9% 8%
Sales / Net Fixed Assets 0.8 1.3 0.7 1.0 1.5
Trade Creditors (Accounts Payabl e) 7,649 4,484 7,558 7,651 6,589 Gross Capex Tang and Intang Assets / Depr and Amort 178% 17% 70% 29% 43%
Accrued Expenses 5,279 2,212 1,231 2,229 2,683 Gross Capital Expenditure / Sales 19% 2% 9% 3% 4%
Other Creditors and Provisions 9,779 1,945 2,521 2,258 3,775
Tax Payable 0 0 0 196 1,268 Financial Risk:
Short Term Debt* 27,089 15,822 10,964 10,195 5,217 Debt / Equity 49% 54% 46% 34% 21%
Existing Long Term Debt and Financial Leases 30,363 14,857 15,453 9,835 6,607 Equity / Total Liabilities 147% 144% 154% 184% 214%
Minority Interest Debt / EBITDA 3.4 1.3 2.8 1.8 0.6
Total Debt 57,452 30,679 26,417 20,029 11,824 Adj Debt / EBITDAR * 3.4 1.3 2.8 1.8 0.6
Total Liabilities 80,159 39,321 37,728 32,363 26,139 Adj Debt / FFO adj for interest and Lease payments 2.4 1.2 2.2 1.5 0.5
Share Capital and Reserves 27,188 (30,920) (30,163) (30,300) (40,156) Total Debt / CFO after I,T and minus Capex (6.9) 1.9 13.4 2.5 0.9
Retained Earnings 90,503 87,646 88,203 89,817 96,113 Total Debt / CFO after I,T and minus Maint Capex** 43.6 4.3 (516.0) 7.4 1.2
EBIT / Interest Expense 0.9 3.0 0.9 1.6 8.2
Liabilities and Equity 197,850 96,047 95,769 91,880 82,096 EBITDA / Interest Expense 3.5 5.6 3.4 4.9 12.6
Cross check 0.0 0.0 0.0 0.0 0.0 Debt Service Coverage Ratio*** 1.3 2.7 1.0 0.7 6.8

* Including Current Portion of Long Term Debt 89 48 4,477 * Debt adjusted for op lease by 8x annual op lease expense
** Maintenance capex assumed to be in line with depreciation
***(Operating Cash Flow -Tax - Depreciation, Amortisation) / (Interest paid + CPLTD due)

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