OPEN JOINT-STOCK COMPANY RUSSIAN TRADING SYSTEM STOCK EXCHANGE

Transcription

1 OPEN JOINT-STOCK COMPANY RUSSIAN TRADING SYSTEM STOCK EXCHANGE Summary consolidated financial statements derived from the audited consolidated financial statements for the year ended 31 December 2010

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4 Summary Consolidated Statement of Financial Position as at 31 December December December 2009 ASSETS Cash and cash equivalents Financial instruments held for trading Central counterparty financial assets Investments Amounts receivable under reverse repurchase agreements Accounts receivable Prepaid expenses Current tax prepayments Deferred tax asset Other assets Fixed and intangible assets Goodwill Total assets LIABILITIES Guarantee fund liabilities Settlement accounts of trading participants Central counterparty financial liabilities Insurance fund liabilities Dividends and coupons payable to clients Payables and advances received Current tax payables Accrued expenses Deferred tax liability Other liabilities Total liabilities EQUITY Share capital Share premium Retained earnings Cumulative translation reserve Total equity attributable to shareholders of the Group Non-controlling interest Total equity Total liabilities and equity statements from which they were derived. 2

5 Summary Consolidated Statement of Cash Flows for the Year Ended 31 December CASH FLOWS FROM OPERATING ACTIVITIES Fee income received Interest income received Other income received Personnel and other operating expenses paid ( ) ( ) Income tax paid ( ) ( ) Cash flows from operating activities before changes in operating assets and liabilities Changes in operating assets and liabilities Net (increase) decrease in financial instruments held for trading ( ) Net increase in accounts receivable (68 265) (3 986) Net increase in accounts receivable under reverse repurchase agreements (45 856) ( ) Net decrease (increase) in prepaid expenses (46 752) Net increase (decrease) in settlement accounts of trading participants ( ) Net increase in guarantee and insurance fund liabilities Net increase (decrease) in dividends and coupons payable to clients (68 796) Net increase (decrease) in payables and advances received (14 387) Net change in other assets and other liabilities (3 126) (1 697) Net cash (used in) from operating activities ( ) CASH FLOWS FROM INVESTING ACTIVITIES Net cash paid for investments ( ) ( ) Purchase of fixed and intangible assets ( ) ( ) Proceeds from disposal of fixed and intangible assets Proceeds from sale of subsidiaries and associates Net cash used in investing activities ( ) ( ) CASH FLOWS FROM FINANCING ACTIVITIES Share capital issued by subsidiary Acquisition of non-controlling interest ( ) - Dividends paid ( ) (64 091) Treasure shares purchased - (91 265) Net cash used in financing activities ( ) (21 569) Net (decrease) increase in cash and cash equivalents before foreign currency effect ( ) Foreign currency effect Net (decrease) increase in cash and cash equivalents ( ) Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year statements from which they were derived. 3

6 Summary Consolidated Statement of Changes in Equity for the Year Ended 31 December 2010 Share capital Attributable to equity holders of the Group Share Retained Cumulative Total premium earnings translation reserve Noncontrolling interest Total equity Balance as at 1 January Profit and total comprehensive income for the year Dividends paid to shareholders - - (64 091) - (64 091) - (64 091) Treasury shares (1 850) (89 415) - - (91 265) - (91 265) Share capital issued by a subsidiary Balance as at 31 December Balance as at 1 January Total comprehensive income Profit for the year Other comprehensive income Foreign currency translation differences for foreign operations Total comprehensive income for the year Transactions with owners recorded directly in equity Purchase of non-controlling interest ( ) ( ) Dividends paid to shareholders - - ( ) - ( ) - ( ) Total transactions with owners - - ( ) - ( ) ( ) ( ) Balance as at 31 December statements from which they were derived. 4

7 Notes to the Summary Consolidated Financial Statements - 31 December General Information These summary consolidated financial statements, which comprise the summary consolidated statement of financial position as at 31 December 2010, the summary consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and related notes are derived from the audited consolidated financial statements of Open Joint-Stock Company Russian Trading System Stock Exchange (the Company or RTS Stock Exchange) and its subsidiaries (together referred to as the Group ). RTS Stock Exchange is a stock exchange based in Moscow, Russian Federation. The Group provides stock exchange services, including trading, settlement and clearing, and depository services. The Group was formed during the year ended 31 December 2007 as a result of an acquisition by the Group of the subsidiaries from the Non-commercial Partnership Russian Trading System Stock Exchange (NP RTS). Principal subsidiaries and associates of the Group as at 31 December 2010 and 31 December 2009 comprise: Name Principal activities 31 December 2010 Voting rights, % 31 December 2009 Voting rights, % CJSC Clearing Center RTS (CC RTS) Clearing services % % Non-banking Credit Organisation Settlement Chamber RTS СJSC (SC RTS) Settlement services % % CJSC Depository Clearing Company (DCC) Depository services 97.76% 60.46% Open Joint-Stock Company Evraziyskaia Trading System Commodity Exchange (ETS) Stock Exchange 61.82% 59.41% Private Joint-Stock Company Ukrainian Stock Exchange Holding (USEH) Holding company % - Open Joint-Stock Company Ukrainian Exchange (UEX) Stock Exchange 43.00% 49.00% IT and telecommunications 35.00% 35.00% LLC CPM (CPM) JSC Moscow Energy Exchange (Mosenex) (former OJSC Commodity Exchange Arena ) Stock Exchange 15.00% 20.00% The Company was established in The Company has a stock exchange license issued by the Federal Service for Financial Markets (the FSFM). The Company also has a license for organisation of derivatives exchange trading issued by the Commodity Exchanges Commission of the FSFM. CC RTS provides clearing services for the Derivative Market Section (FORTS) and the Stock Market Section of the Company. CC RTS has a license to perform clearing activities issued by the FSFM. SC RTS provides settlement services to trading participants involved in trading on RTS Stock Exchange. SC RTS is a non-banking credit institution. SC RTS has a licence to perform settlement services issued by the Central Bank of the Russian Federation (the CBR). DCC provides depository, clearing and settlement services. DCC has a license to perform depository activities, and a license to perform clearing activities issued by the FSFM. In June 2010, the Group purchased 37.3% shares of DCC from a non-controlling shareholder for RUB. CPM provides IT services and sells IT equipment in Russia. The Group has a significant influence over CPM since The Company, CC RTS, SC RTS, DCC and CPM are located in Russia. ETS is a commodity exchange in Kazakhstan, which has a license for organisation of trading in commodities. In April 2010 the Group purchased 2.41% shares of ETS from a non-controlling shareholder. UEX is a stock exchange in Ukraine, which has a stock exchange license and facilitates spot and derivatives trading. In January 2010 the Group sold 6.00% of its stake in UEX. In September 2010 the Group established USEH, which holds shares of UEX. In December 2010 the Group sold 5% of investments in JSC Moscow Energy Exchange (former OJSC Commodity Exchange Arena ) and lost significant influence over this company. The Group has 470 employees as at 31 December 2010 (2009: 432 employees). The Company s legal address is Vozdvizhenka Street 4/7, bld.1, Moscow, , Russian Federation. The Group in the course of its activities as a stock exchange uses services of NP RTS, which provides technical support to the Group and to trading participants of all the RTS Stock Exchange markets. statements from which they were derived. 5

8 Notes to the Summary Consolidated Financial Statements - 31 December Operating Environment of the Group The Russian Federation is experiencing political and economic change that has affected, and may continue to affect, the activities of enterprises operating in this environment. Consequently, operations in the Russian Federation involve risks that typically do not exist in other markets. In addition, the contraction in the capital and credit markets and its impact on the Russian economy have further increased the level of economic uncertainty in the environment. 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. 3 Basis of preparation Management makes a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare the consolidated financial statements in conformity with IFRS. Actual results could differ from those estimates. Any significant estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. Significant areas of critical judgments and estimates in applying accounting policies are as follows: The Group does not consolidate in these financial statements NP RTS due to the fact that the Group does not control NP RTS as it does not have the legal power to govern the financial and operating policies of NP RTS. At the same time Management has the ability to participate in financial and operating decisions of NP RTS. The Group recognised a loss of significant influence in Mosenex in 2010 after disposal of 5% of Mosenex shares to NP RTS in December 2010, as a result of which the Group s share in Mosenex decreased from 20% to 15%. Previously recognised equity accounted investment in the associate was derecognised, and the retained stake in Mosenex was designated as at fair value through profit or loss and measured at fair value. Estimation of impairment allowances in relation to financial assets measured at amortised cost involves the exercise of judgment. These include mainly cash and cash equivalents, investments carried at amortised costs, amounts receivable under reverse repurchase agreements and other receivables. The complete consolidated financial statements of the Group as at and for the year ended 31 December 2010 are prepared in accordance with International Financial Reporting Standards. These summary consolidated financial statements are derived from the complete consolidated financial statements, except that substantially all note disclosures are omitted. statements from which they were derived. 6