Financial Information - Group

Financial Indicators	Historical Financial Information	Financial Reports
	Factors Affecting Financial Reports Historical Financial Indicators

Historical Financial Information
Factors Affecting Financial Reports

The following factors had the main influence on the Group's financial indicators:

1999

· The Group has not obtained the impairment loss in comparison to the previous financial period.

It resulted in  reduction of total cost by 3,4 times and had an impact on operational and net profit.

2001

· The Group entered into a series of transactions in which it participated in the settlement of Russian Federation debt to the Czech Republic. These transactions had increased the profit of the Group by RR15,083 million

· The Group recorded the discount factor of the restructuring of creditor payment, which resulted in an increase of net profit by RR 32,958 million.

2002

· The Group received the total profit tax benefit of RR 24,283 million.

2003

· Property, plant and equipment (PPE) have increased (by RR 8,491 mln) due to significant increase in capital expenditures (for the first time under IFRS, being greater than depreciation charge and disposals) and the Group acquiring businesses in Georgia and Armenia.

· Increase in operational profit by RR 23 bln (39%) due to the increase in revenues (by 18%) significantly exceeded the increase in costs of operations (increased by 9%) and an increase in average tariffs on heat and electric energy (14,3%).

· The Group has absorbed a loss attributed to the deferred tax (RR 24 574 mln ), that has reduced the net profit in the financial period.