The above indexes were calculated by the method recommended by the Federal Financial Markets Service of the Russian Federation. Analysis of the Issuer’s creditworthiness and credit risk level as well as its financial position based on economic analysis of the specified indexes’ performance:
Net assets value is the basic parameter of a company’s financial stability. In the analyzed period net assets value had an upward trend. In 3Q2007 net assets increased by 8.31 % over 3Q2006. As of September 30, 2007 net assets considerably exceeded the size of the authorized capital of the Issuer (by 11.8 times). Positive performance of this index shows increasing stability of the Company’s financial position.
The next two indexes characterize a company’s dependence from borrowings. The borrowed funds-to-capital and reserves ratio (financial dependence ratio) shows the borrowed funds amount per 1 ruble of the company's equity capital. As of 30.09.2007 the Company had 176.17 kopecks of borrowings per 1 ruble of in-house funds, including 91.7 kopecks of short-term borrowings. In 3Q2007 the percentage of borrowed capital in the structure of Company’s liabilities decreased by 15.8% over 3Q2006.
The index “overdue debt level” should tend to zero, showing that a company is "healthy" and able to repay its debts without significant delay. As of September 30, 2007 this parameter was 0%.
Accounts receivable turnover rate shows increases and decreases in trade credit granted by a company. In 3Q2007 this indicator was 9.5 times.
As of September 30, 2007 the Company had no overdue debts.
Portion of dividends in the Issuer’s 2006 net income was 23.25%. According to the Issuer’s Charter and the Provisions on the Dividend Policy, annualdividend on each ordinary share cannot be less than 10 % of the Company’s net profit according to the results of the last fiscal year, divided by the number of the Company’s outstanding ordinary shares as of the date of making up the list of persons entitled to receive dividends. The amount to be paid as annual dividend on each type A preferred share shall be 10% of the Company’s net profit divided by the number of preferred Type A shares with total nominal value not exceeding 25% of the Company’s authorized capital, the net profit being determined on the basis of the results of the last fiscal year. If the total amount of dividend paid by the Company on each ordinary share in a certain year exceeds the amount to be paid as dividend on each preferred type A share, then the amount of the dividend paid on preferred type A shares shall be increased to the amount of the dividend paid on ordinary shares. Final decision on the dividend size shall be taken by the General Shareholders' Meeting on the basis of the Company’s plans of net income distribution and usage.
Labor productivity is an important indicator describing volume of products output per one employee. During the analyzed period labor productivity index had an upward trend due to improvements in employees’ professional skills and introduction of new production technologies. As of 30.09.2007 Labor productivity indicator made 509,410.18 thousand rubles per employee which is up 140,094.88 thousand rubles per employee over a year ago.
Depreciation to revenue ratio was down 0.74% over a year ago.
Based on the results of evaluation of the Issuer’s financial standing for the periods under analysis it can be stated that "UTK" PJSC is the company with satisfactory financial standing. On the whole, the Issuer’s solvency and financial stability are at the acceptable level which is proved by positive behavior of its main financial indicators.
The Issuer’s Market Capitalization
Market capitalization of the Issuer for the last 5 complete financial years, or for each complete fiscal year if the Issuer operates for less than 5 years and on the expiry date of the last complete accounting period:
Date
Market capitalization, USD
Rate of exchange****
31.12.2002*
258,739,486
31.7844
31.12.2003*
347,793,753
29.4545
31.12.2004*
279,433,761
27.7487
31.12.2005***
509,704,617
28.7825
31.12.2006***
671,328,163
26.3311
30.09.2007***
722,438,641
24.9619
* - according to NP “RTS Stock Exchange”;
** - according to OJSC “RTS Stock Exchange”;
*** - according to MICEX Stock Exchange
**** - exchange rate of the Central Bank of the Russian Federation. Method of determining the Issuer’s market capitalization:
The Issuer’s market capitalization was calculated in accordance with the procedure set forth by the RF FCSM Decree № 03-52/ps of 24.12.2003.
The Issuer’s market capitalization shall be calculated as the product of the number of shares of a corresponding category (type) multiplied by theweighted average price of one share of this category (type). The weighted average price of one share is calculated on the basis of 10 largest transactions concluded at the trading session in the RTS Stock Exchange in the month preceding the expiry date of the last reporting quarter, or in the last month of each complete financial year for which the Issuer’s market capitalization is specified. If less than 10 transactions are concluded during the specified month, the average weighted price of one share shall be calculated on the basis of 10 largest transactions concluded at the trading session in the RTS Stock Exchange during the specified month and two preceding ones. If less than 10 transactions are concluded during the abovementioned three months, the average weighted price of one share shall not be calculated.
