MEGAFON Annual Report 2016
BRINGING THE FUTURE CLOSER

Consolidated Statement of Cash Flows

    Years ended 31 December
  Note 2016 2015
Operating activities      
Profit before tax    35,830  51,550
Adjustments to reconcile profit before tax to net cash flows:      
Depreciation 3.1,3.8  51,925  48,173
Amortisation 3.2  7,881  7,313
Goodwill impairment 3.2.3 3,400 —
Loss on disposal of non-current assets    849  913
Loss/(gain) on financial instruments, net 3.4.3  235  (1,502)
Foreign exchange (gain)/loss, net    (1,822)  10,041
Share of loss of associates and joint ventures 3.3  2,651  649
Change in impairment allowance for receivables and other non-financial assets    2,528  2,100
Finance costs    19,094  14,779
Finance income    (1,810)  (2,508)
Working capital adjustments:      
Increase in inventory    (669)  (2,188)
Increase in trade and other receivables    (2,288)  (6,405)
Decrease/(increase) in current non-financial assets    2,055  (1,692)
(Decrease)/increase in trade and other payables    (6,315)  6,040
Decrease in current non-financial liabilities    (812)  (1,788)
Change in VAT, net    (1,002)  (1,121)
Income tax refunded    19  619
Income tax paid    (8,791)  (11,095)
Net cash flows from operating activities    102,958  113,878
Investing activities      
Purchase of property, equipment and intangible assets    (57,892)  (62,956)
Proceeds from sale of property and equipment    709  304
Purchase of interest in joint venture and of loans receivable 3.3 —  (15,759)
Acquisition of subsidiaries, net of cash acquired 5.3  (62)  (1,495)
Escrow cash deposit 5.3  401  (690)
Payment of deferred and contingent consideration    (2,421)  (9,046)
Net change in short-term demand deposits    12,461  32,033
Loans granted    (3,388) —
Interest received    1,152 2,571
Net cash flows used in investing activities    (49,040)  (55,038)
Financing activities      
Proceeds from borrowings, net of fees paid    125,581  68,007
Repayment of borrowings    (97,077)  (75,299)
Interest paid    (19,219) (14,599)
Dividends paid to equity holders of the Company 4  (45,192)  (48,038)
Dividends paid to non-controlling interests    (172)  (197)
Lease payments    (27) —
Other   —  7
Net cash flows used in financing activities    (36,106)  (70,119)
Net increase/(decrease) in cash and cash equivalents    17,812  (11,279)
Net foreign exchange difference    (3,339)  6,505
Cash and cash equivalents at beginning of year    17,449  22,223
Cash and cash equivalents at end of year 3.4.1  31,922  17,449