Public Joint Stock Company “Kuzbasskaya Toplivnaya Company” (trading as “KTK”)

ASSETS
Property, plant and equipment
Exploration and evaluation assets
Goodwill and intangible assets
Investments in equity accounted investees
Other investments
Deferred tax assets
Non-current assets
Inventories
Оther investments
Income tax receivable
Trade and other receivables
Prepayments and deferred expenses
Cash and cash equivalents
Current assets
Total assets
Public Joint Stock Company “Kuzbasskaya Toplivnaya Company” (trading as “KTK”)
Consolidated Statement of Financial Position as at 30 September 2015
Note
17
18
12
30 September 31 December
2015 2014
Mln RUB Mln RUB
12 300
42
22
5
1
272
12 642
12 238
422
23
5
2
243
12 933
13
12
14
15
16
2 083
119
18
3 650
283
5 922
12 075
24 717
1 866
30
9
3 577
159
7 332
12 973
25 906
The consolidated statement of financial position is to be read in conjunction with the notes to, and forming part of, the consolidated financial statements set out on pages 8 to 17.
3

Public Joint Stock Company “Kuzbasskaya Toplivnaya Company” (trading as “KTK”)
Consolidated Statement of Profit or Loss and Other Comprehensive Income for the nine months ended
30 September 2015
Revenue
Cost of sales
Gross profit
Distribution expenses
Administrative expenses
Other incomes and expenses, net
Results from operating activities
Finance income
Finance costs
Profit (loss) before income tax
Income tax expense
Profit (loss) for the period
Profit/(loss) attributable to:
Equity holders of the Company
Minority participants in LLC subsidiaries
Non-controlling interests
Other comprehensive income for the period
Items that can be reclassified to profit or loss
Losses on cash flow hedge reclassified to profit or loss, net of income tax
Total comprehensive income for the period
Earnings (losses) per share
Basic and diluted earnings (losses) per share (RUB)
Total comprehensive income/(loss) attributable to:
Equity holders of the Company
Minority participants in LLC subsidiaries
Non-controlling interests
Note
Nine months ended
30 September
2015
Mln RUB
2014
Mln RUB
5
6
17 676
(14 735)
14 520
(12 898)
7
8
9
2 941
(918)
(833)
(74)
1 622
(618)
(722)
44
10
10
1 116
314
(908)
326
60
(897)
11
522
(388)
(511)
42
134 (469)
148
(8)
(6)
134
(434)
(13)
(22)
(469)
405
539
553
(8)
(6)
539
1
-
(469)
(434)
(13)
(22)
(469)
(4)
The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the notes to, and forming part of, the consolidated financial statements set out on pages 8 to 17.
5

Public Joint Stock Company “Kuzbasskaya Toplivnaya Company” (trading as “KTK”)
Consolidated Statement of Changes in Equity for the nine months ended 30 September 2015
Mln RUB
Balance at 1 January 2014
Loss for the period
Dividends
Balance at 30 September 2014
Balance at 1 January 2015
Profit (loss) for the period
Losses on cash flow hedge reclassified to profit or loss, net of income tax
Total comprehensive income (loss) for the year
Dividends
Balance at 30 September 2015
Attributable to shareholders of the Company
Share capital
20
-
-
20
20
-
Additional paid-in capital
2 829
-
-
2 829
2 829
-
Hedging reserve
-
-
-
-
(405)
-
- - 405
Retained earnings
6 980
(434)
(496)
6 050
6 518
148
-
Total
9 829
(434)
(496)
8 899
8 962
148
405
Noncontrolling interest
-
(3)
(22)
-
(25)
(4)
(6)
Total equity
9 826
(456)
(496)
8 874
8 958
142
405
- - 405 148 553 (6) 547
-
20
-
2 829
-
-
(248)
6 418
(248)
9 267
-
(10)
(248)
9 257
The consolidated statement of changes in equity is to be read in conjunction with the notes to, and forming part of, the consolidated financial statements set out on pages 8 to 17.
6

Public Joint Stock Company “Kuzbasskaya Toplivnaya Company” (trading as “KTK”)
Consolidated Statement of Cash Flows for the nine months ended 30 September 2015
OPERATING ACTIVITIES
Profit (loss) for the period
Adjustments for:
Depreciation and amortisation
Gain on disposal of property, plant and equipment
Net finance costs
Income tax expense
Cash flows from operating activities before changes in working capital and provisions
Changes in:
Inventories
trade and other receivables
prepayments for current assets
trade and other payables
Cash flows from operating activities before income tax and interest paid
Income taxes paid
Interest paid
Interest received on cash and cash equivalents
Net cash flows from operating activities
INVESTING ACTIVITIES
Proceeds from disposal of property, plant and equipment
Loans issued
Proceeds from loans issued
Acquisition of promissory notes
Proceeds from promissory notes
Acquisition of property, plant, equipment, intangible assets and exploration and evaluation assets
Cash flows used in investing activities
FINANCING ACTIVITIES
Proceeds from borrowings
Repayment of borrowings
Income paid to minority participants in LLC entities
Acquisition of minority participant in LLC entities
Dividends paid
Cash flows (used in)/from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of year
Effect of exchange rate fluctuations on cash and cash equivalents
Cash and cash equivalents at the end of the period
-
Nine months ended 30 September
2015
Mln RUB
2014
Mln RUB
134 (469)
912 944
(73)
594
(102)
837
388 (42)
1 955 1 168
(217)
11
(124)
12
1 637
(274)
(534)
286
1 115
73
(300)
331
(101)
9
(501)
(489)
3 299
(5 751)
(8)
-
(248)
(2 708)
(2 082)
7 332
672
5 922
(325)
(650)
62
(370)
(115)
(146)
(403)
57
(607)
7 211
(3 842)
-
(7)
(496)
2 866
1 805
2 710
371
4 866
The consolidated statement of cash flows is to be read in conjunction with the notes to, and forming part of, the consolidated financial statements set out on pages 8 to 17.
7
147
(4)
2
(31)
-
(568)
(454)

Public Joint Stock Company “Kuzbasskaya Toplivnaya Company” (trading as “KTK”)
Notes to the Condensed Interim Consolidated Financial Statements for the nine months ended 30 September 2015
(a)
(b)
(a)
Corporate information
The Public Joint Stock Company “Kuzbasskaya Toplivnaya Company” (PJSC “KTC”, “the
Company” or “KTK”) registered under the Russian law on 4 April 2000. The shares of PJSC
“KTC” are quoted on the PJSC Moscow Exchange since May 2010. The registered office of the
Company is: 4, 50 Let Oktyabrya street, Kemerovo, 650000.
The Company’s ultimate controlling party is Mr. Igor Yuryevich Prokudin.
The Company together with its subsidiaries, whose structure and activities have not changed as from 31 December 2014, are referred to as “the Group”. The operations of the Group are subject to various regulations and licensing laws related to the extraction of coal in the Russian Federation.
Russian business environment
The Group’s operations are primarily located in the Russian Federation. Consequently, the Group is exposed to the economic and financial markets of the Russian Federation which display characteristics of an emerging market. The legal, tax and regulatory frameworks continue to develop, but are subject to varying interpretations and frequent changes which together with other legal and fiscal impediments contribute to the challenges faced by entities operating in the Russian
Federation.
The consolidated financial statements reflect management’s assessment of the impact of the
Russian business environment on the operations and the financial position of the Group. The future business environment may differ from management’s assessment.
Statement of compliance
These condensed interim consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards (“IFRSs”), in compliance with the requirements of IAS
34 “Interim financial reporting”. It contains limited volume of financial information and is to be read in conjunction with the consolidated financial statements for the year ended 31 December
2014.
The national currency of the Russian Federation is the Russian Rouble (“RUB”), which is the functional currency of the Company and all of its subsidiaries and the currency in which these consolidated financial statements are presented. All financial information presented in RUB has been rounded to the nearest million, except where otherwise indicated.
8

Public Joint Stock Company “Kuzbasskaya Toplivnaya Company” (trading as “KTK”)
Notes to the Condensed Interim Consolidated Financial Statements for the nine months ended 30 September 2015
(i)
The Group determines and presents operating segments based on the information that internally is provided to the General director, who is the Group’s chief operating decision maker. The
Company’s General director reviews operating results for purposes of assessing performance and making resource allocation decisions.
Financial information
The segmented financial information is prepared and reported to general director at least quarterly.
Management selected gross profit as the measure of the segment’s result.
For the nine months ended and as at 30 September 2015
1
Mln RUB
Domestic sales of produced coal
Revenue 2 874
Cost of sales
Export sales of produced coal
13 093
Resale of purchased coal
1 259
(2 451) (10 825) (1 118)
Other operations Total
450 17 676
(341) (14 735)
Gross profit and segment result 423 2 268 141 109 2 941
Unallocated expenses
Other operating expenses (1 825)
(594) Net finance costs
Profit before income tax gh
522
Trade receivables
Advances received
580
(58)
2 144
-
239
(17)
81 3 044
(9) (84)
1
For the nine months ended 30 September 2014
Mln RUB
Domestic sales of produced coal
Revenue
Cost of sales
2 222
(1 482)
Gross profit and segment result
Unallocated expenses
Other operating expenses
Net finance costs
740
Export sales of produced coal
11 040
(10 412)
628
Resale of purchased coal
Other operations Total
778
(608)
170
480
(396)
84
14 520
(12 898)
1 622
(1 296)
(837)
(511) Loss before income tax gh
As at 31 December 2014
Trade receivables
Advances received
748
(30)
2 114
(61)
326
(12)
80
(4)
3 268
(107)
9

Public Joint Stock Company “Kuzbasskaya Toplivnaya Company” (trading as “KTK”)
Notes to the Condensed Interim Consolidated Financial Statements for the nine months ended 30 September 2015
Mln RUB
Sales of coal
Compensation from the government
Sales of electrical and heat power and hot water
Provision of transportation services
Provision of storage services
Other revenue
Nine months ended 30 September
2015 2014
16 891 13 627
364
193
97
29
414
197
132
36
102
17 676
114
14 520
Compensation from government refers to amounts received from the local authorities as part of the consideration for coal sold to local municipalities and private individuals at regulated prices, and for services provided to private individuals at regulated tariffs. Such compensation is due to the
Group in accordance with the Russian legislation.
Mln RUB
Railway tariff and transportation services
Fuel
Personnel costs
Coal purchased
Depreciation and amortisation
Repair and maintenance
Spare parts
Extraction, processing and coal sorting services
Other services
Mining and environmental taxes
Other materials
Other costs
Change in coal in stock and transit
Mln RUB
Personnel costs
Services
Materials
Depreciation and amortisation
Other distribution expenses
Nine months ended 30 September
2015 2014
7 605
1 395
1 188
7 406
1 324
1 154
1 021
830
662
649
557
878
385
470
500
388
237
196
9
55
383
360
195
167
26
(407)
14 735 12 898
Nine months ended 30 September
2015 2014
369 258
387 236
71 56
66 49
25 19
918 618
10

Public Joint Stock Company “Kuzbasskaya Toplivnaya Company” (trading as “KTK”)
Notes to the Condensed Interim Consolidated Financial Statements for the nine months ended 30 September 2015
Mln RUB
Nine months ended 30 September
2015 2014
Personnel costs
Taxes other than income tax
Services
498
141
118
424
136
93
Other administrative expenses 38 33
Materials 22 19
Depreciation and amortisation 16 17
833 722
The Group has changed the classification of charity and welfare expenses. As a result RUB 65 million for the nine months ended 30 September 2014 were reclassified to other income and expenses (see note 9).
Mln RUB
Gain on disposal of property, plant and equipment
Income from fines and penalties
Charity and welfare
Compensation for damage
Nine months ended 30 September
2015 2014
73 102
6
(67)
(86)
7
(65)
-
(74) 44
As a result of changing in classification of charity and welfare expenses RUB 65 million were reclassified from administrative expenses for the nine months ended 30 September 2014 (refer to note 8).
Mln RUB
Interest income on cash and cash equivalents
Interest income on loans issued
Finance income
Interest expense and crediting charge
Foreign exchange loss
Allowance for doubtful debts
Unwinding of discount on provision for site restoration and on employee benefits
Unwinding of discount on long-term interest-free loans received
Finance costs
Nine months ended 30 September
2015 2014
286
28
314
57
3
60
(515)
(300)
(55)
(28)
(10)
(908)
(594)
In addition to interest expense shown above, the Group has capitalised RUB 4 million (9 months
2014: RUB 19 million) to property, plant and equipment under construction and
RUB 12 million (9 months 2014: RUB 17 million) to exploration and evaluation assets using a capitalisation rate of 6.18 % (9 months 2014: RUB 6.35 %).
(356)
(491)
(17)
(24)
(9)
(897)
(837)
11

Public Joint Stock Company “Kuzbasskaya Toplivnaya Company” (trading as “KTK”)
Notes to the Condensed Interim Consolidated Financial Statements for the nine months ended 30 September 2015
Income tax expense was calculated using expected average annual effective income tax rate for the current year.
Mln RUB
Current tax expense
Deferred tax expense
Nine months ended 30 September
2015 2014
326
62
103
(145)
388 (42)
Mln RUB
Non-current
Loan issued to private individuals and other companies
Current
Loan issued to private individuals and other companies
Promissory notes
30 September
2015
31 December
2014
1
1
2
2
18
101
119
21
9
30
Mln RUB
Coal in stock
Raw materials and consumables
Coal in transit
30 September
2015
31 December
2014
1 165
701
217
2 083
1 219
429
218
1 866
12

Public Joint Stock Company “Kuzbasskaya Toplivnaya Company” (trading as “KTK”)
Notes to the Condensed Interim Consolidated Financial Statements for the nine months ended 30 September 2015
Mln RUB
Trade receivables
VAT receivable
Other receivables
Compensation receivable from budget
Receivables from personnel
Allowance for doubtful debts
Mln RUB
Advances given for transportation services
Advances given for inventory and other services
Mln RUB
Petty cash
Bank accounts
Term deposits
30 September
2015
3 044
708
294
137
12
(545)
3 650
31 December
2014
3 268
349
173
255
12
(480)
3 577
30 September
2015
31 December
2014
179
104
283
93
66
159
30 September
2015
31 December
2014
5
850
5 067
5 922
2
707
6 623
7 332
13

Public Joint Stock Company “Kuzbasskaya Toplivnaya Company” (trading as “KTK”)
Notes to the Condensed Interim Consolidated Financial Statements for the nine months ended 30 September 2015
Mln RUB
Cost / deemed cost
Balance at 1 January 2014
Additions
Transfers
Disposals
Balance at 30 September 2014
Balance at 1 January 2015
Additions
Transfers
Disposals
Balance at 30 September 2015
Land and buildings
5 619
22
8
(6)
5 643
Mining assets and mining structures
928
11
-
-
939
5 773
22
191
(3)
5 983
917
415
-
-
1 332
Other production structures
3 766
Machinery, equipment and vehicles
7 288
Fittings and fixtures
64
Construction in progress and uninstalled equipment
526
Advances Total
40 18 231
-
91
(4)
161
266
(146)
6
-
-
383
(374)
-
83
(2)
-
655
(156)
-
3 853 535 121 18 730
3 857
-
164
(1)
4 020
7 569
7 616
225
343
(72)
8 112
70
75
6
1
(1)
81
527
324
(698)
(1)
152
36
6
(1)
18 801
998
(33) (111)
8
-
19 688
14

Public Joint Stock Company “Kuzbasskaya Toplivnaya Company” (trading as “KTK”)
Notes to the Condensed Interim Consolidated Financial Statements for the nine months ended 30 September 2015
Mln RUB
Depreciation and impairment losses
Balance at 1 January 2014
Depreciation charge
Disposals
Balance at 30 September 2014
Balance at 1 January 2015
Depreciation charge
Disposals
Impairment
Balance at 30 September 2015
Net book value
At 1 January 2015
At 30 September 2015
Land and buildings
Mining assets and mining structures
Other production structures
Machinery, equipment and vehicles
Fittings and fixtures
Construction in progress and uninstalled equipment Advances
(561) (151) (1 094) (3 659) (39) -
Total
(5 504)
(201)
1
(17)
-
(130)
4
(589)
103
(5)
-
-
-
(942)
108
(761) (168) ( 1 220) (4 145) (44) (6 338)
(826)
(213)
-
-
(1 039)
4 947
4 944
(178)
(31)
-
-
(209)
739
1 123
(1 263)
(135)
1
-
(1 397)
2 594
2 623
(4 239)
(525)
72
-
(4 692)
3 377
3 420
(44)
(8)
1
-
(51)
31
30
-
-
-
-
-
527
152
(13) (6 563)
-
-
(912)
74
13
-
23
8
13
(7 388)
12 238
12 300
15

Public Joint Stock Company Kuzbasskaya Toplivnaya Company (trading as “KTK”)
Notes to the Condensed Interim Consolidated Financial Statements for the nine months ended 30 September 2015
As a result of confirmation of the technical feasibility and commercial viability of extracting on the
Bryansk-1 licensed area the accumulated costs of the asset amounted to RUB 415 million were reclassified from Exploration and evaluation assets to the fixed assets as a mining asset. The inventory extraction at the site is scheduled to begin in the fourth quarter of 2015.
(a) Dividends
June 30, 2015 at the extraordinary meeting of shareholders, it was decided to pay dividends for the first quarter 2015 in the amount of 2.5 RUB per ordinary share. The total amount of the interim dividends paid amounted to RUB 248 million.
This note provides information about the Group’s interest-bearing loans and borrowings, which are measured at amortised cost. As at the reporting date the Group has no financial instruments measured at fair value.
Mln RUB
Non-current liabilities
Secured bank loans
Unsecured bank loans
Loans from other companies
Current liabilities
Unsecured bank loans
Secured bank loans
Loans from other companies
Interest accrued
30 September
2015
6 273
2 345
136
8 754
1 915
898
17
24
2 854
31 December
2014
6 020
2 987
138
9 145
3 999
257
17
15
4 288
Mln RUB
Trade payables
Taxes (other than income tax) payables
Payables for property, plant and equipment
Payables to personnel
Advances received
Payables for transportation services
Other payables
30 September
2015
1 273
434
247
241
84
62
141
31 December
2014
1 463
275
158
208
107
112
68
16

Public Joint Stock Company Kuzbasskaya Toplivnaya Company (trading as “KTK”)
Notes to the Condensed Interim Consolidated Financial Statements for the nine months ended 30 September 2015
(a)
2 482 2 391
The consolidated financial statements have been prepared on the historical cost basis. Property, plant and equipment was revalued to determine the deemed cost as a part of transition to IFRSs as at 1 January 2006.
The accounting policies applied in preparing of these condensed interim consolidated financial statements principally comply with the accounting policies applied for preparation of the consolidated financial statements for the year ended 31 December 2014, except statements represented in the sections (a) below.
Certain comparative amounts have been reclassified to conform with the current years presentation
(see notes 8, 9).
New Standards and Interpretations
Preparing these financial statements the Group has applied the following new effective
Amendments to current Standards that have not done any significant impact to the financial position of the Group:
 Defined Benefit Plans: Employee Contributions (Amendments to IAS 19).
 Amendments to following Standards approved by Annual Improvements to IFRSs 2010–2012
Cycle:
IFRS 2. Share-based Payments
IFRS 3. Business combinations togerher with Amendments to other relating IFRSs
IFRS 8. Operating Segments
IFRS 16. Property, Plant and Equipment
IAS 24. Related Party Disclosures
IAS 38. Intangible Assets
 Annual Improvements to IFRSs 2011–2013 Cycle containing Amendments to IAS 3 Business combinations, IAS 13 Fair Value and IAS 40 Investment Property.
17