| USD mln | FY 2011 | FY 2010 | % change y-o-y |
|---|---|---|---|
| Net Cash Flows from Operating Activities | 926.1 | 378.1 | 145.0% |
| Net Cash from Operating Activities before Changes in Working Capital | 1,189.4 | 900.2 | 32.1% |
| Change in Working Capital | 174.1 | (250.9) | n/a |
| Net Interest and Income Tax Paid | (437.4) | (271.2) | 61.3% |
| Net Cash Used in Investing Activities | (893.9) | (1,548.2) | (42.3%) |
| Net Cash Generated from Financing Activities | 111.1 | 1,066.0 | (89.6%) |
| Effect of Exchange Rate Changes on Cash & Cash Equivalents | (29.0) | (36.9) | (21.2%) |
| Net Increase/(Decrease) in Cash & Cash Equivalents | 114.2 | (140.9) | n/a |
Full year 2011 net cash generated from operating activities totaled USD 926 mln compared to USD 378 mln in 2010. The increase was driven by a significant improvement in X5’s working capital position in 2011, compared to 2010, resulting in a USD 174 mln net cash inflow due to more efficient management of both inventory levels and payable terms with suppliers. As a result of the strong operating cash flow generation, the Company was able to fully finance its capital expenditures (“CapEx”) from internal sources, an important objective for the year.
Net cash used in investing activities decreased to USD 894 mln in 2011 from USD 1,548 mln in 2010. Actual CapEx for 2011 amounted to only RUR 27 bln, significantly below guidance of RUR 35 bln, primarily due to three reasons: first, the Kopeyka integration was completed at half the initial projected cost without compromising on quality; second, as a result of better terms from contractors on store equipment and other services due to the volume of X5’s purchases; and third, we relied almost entirely on organic new store additions as opposed to acquisitions in 2011, lowering overall expansion costs.
During 2011, the Company exceeded its store expansion plan, successfully completed the Kopeyka integration and continued to invest in infrastructure projects, including logistics and IT. In 2011, X5 opened a net 577 new stores organically, while adding 118 thousand sq. m. of warehouse space and fully launching the final part of the new SAP platform – SAP for Finance. We fully integrated over 600 Kopeyka stores at significantly less expense than targeted thanks to improved terms from contractors and better store conditions than expected (CapEx of RUR 2.6 bln compared to RUR 4.6 bln in our initial plan). Net cash generated from financing activities in 2011 amounted to USD 111 mln due to short-term movements in cash flow, primarily RUR denominated bilateral loans used to finance working capital needs.
(1)Debt covenants are set in RUR terms in accordance with loan facilities the Company maintains.
(2)Based on consolidated EBITDA of RUR 33,215 mln, i.e. including Kopeyka from 1 January 2011.
(3)Based on pro-forma EBITDA of RUR 28,131 mln, i.e. including Kopeyka from 1 January 2010.