PRESS-RELEASE: RA «Expert-Rating» confirms the credit rating of the bonds of the issuer PJSC «Kievkhleb» at the level uaBBB

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PRESS-RELEASE: RA «Expert-Rating» confirms the credit rating of the bonds of the issuer PJSC «Kievkhleb» at the level uaBBB

09/04/2012

PRESS-RELEASE

(Translation from Russian)

RA «Expert-Rating» confirms the credit rating of the bonds of the issuer PJSC «Kievkhleb» at the level uaBBB

April 09, 2012 the rating committee of RA «Expert-Rating» has made a decision to confirm the rating of the bond issue of PJSC «Kievkhleb» at the level uaBBB. The borrower or the separate bond with a rating uaBBB is characterized by sufficient creditworthiness in comparison with other Ukrainian borrowers and bonds. The Agency has confirmed the credit rating after the analysis of the consolidated data on the companies «Kievkhleb» for the 12 months of 2011.

Table 1

Consolidated indicators of PJSC «Kievkhleb» for the 12 months of 2011 (th. UAH, p.p., %)

Indicators	2011 (31.12.2011)	2010 (31.12.2010)	Change	Growth rate, %
Fixed funds at net book value	184 228	191 247	-7 019	-3,67%
Stocks	101 380	81 878	19 502	23,82%
Accounts receivables	72 009	36 091	35 918	99,52%
Accounts payables	122 299	85 585	36 714	42,90%
*Accounts* *receivables/ Accounts* *payables* *ratio*	0,59	0,42	0,17 p.p.	-
Shareholders’ equity	152 748	142 513	10 235	7,18%
Liabilities	316 327	285 316	31 011	10,87%
*Coefficient* of *autonomy* (*Shareholders’ equity/ Liabilities*)	0,48	0,50	-0,02 p.p.	-
Long-term bank loans	49 361	84 518	-35 157	-41,60%
Short-term bank loans	67 070	49 236	17 834	36,22%
Total debt of the company to investors on bonds	4 023	0	4 023	-
Revenue from sales	2 060 527	1 744 859	315 668	18,09%
Net income	1 759 695	1 504 680	255 015	16,95%
Net profit (loss)	10 377	16 544	-6 167	-37,28%
ROE	7,0%	12,3%	-5,3 p.p.	-
ROS	0,6%	1,1%	-0,5 p.p.	-
EBIT	52 895	46 495	6 400	13,77%
EBITDA	76 034	68 261	7 773	11,39%
*EBITDA/* *Liabilities* *ratio*	24,04%	23,92%	0,12 p.p.

Source: Data of the company, calculations by RA «Expert-Rating»

Note: the table contains data of the consolidated financial statements

1. Revenue from sales of the Company has grown by UAH 315,7 mln (18,1%) according to the results of 2011 comparing to the 2010 and has amounted to UAH 2 060,5 mln. The growth of payables and receivables (respectively – by UAH 36,7 mln and UAH 35,9 mln), as well as the growth of stocks by UAH 19,5 mln is explained by an active commercial policy of the Company, aimed at increasing sales and market share, at expanding the product range of finished products.

2. In 2011 the Company has repaid long-term bank loans of UAH 35,16 mln. Short-term loans have grown by UAH 17,83 mln, which is due to the reclassification of the part of long-term debt into short-term loans. Total outstanding bank loans of the Company have decreased by UAH 17,3 mln. The key indicator of solvency – the ratio between shareholders’ equity and liabilities of the issuer – has virtually remained unchanged. The Agency also pays attention to the reduction of net profit by UAH 6,2 mln (37,2%) against the background of the growth of EBIT by UAH 6,4 mln.

3. The issuer has demonstrated a strong growth of EBIT and EBITDA by 13,77% and 11,39% respectively according to the results of 2011. The ratio between EBITDA and gross liabilities of the issuer has grown by 0,12 p.p. The EBITDA/Financial expenses ratio has amounted to 2,32 in 2011, and the EBITDA/net debt ratio has increased by 16,6% having reached 70,2% for the year that is one of the highest in the industry.

Analytical service of RA «Expert-Rating»

Confirmation of PJSC «Kievkhleb» (english version) - 09.04.2012