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Balance sheet<br />
Working capital<br />
Working capital management is an important part of our financial strategy. In <strong>2011</strong>, net working capital<br />
increased significantly from RUB 10.8bn in 2010 to RUB 17.0bn. This was mainly the result of a build-up<br />
of inventories at stronger prices during the fourth quarter slowdown and the weaker pricing environment.<br />
<strong>2011</strong> 2010 2009<br />
Working capital RUBm % change RUBm % change RUBm<br />
Inventories 14,957 52% 9,828 21% 8,105<br />
Including finished goods 6,446 66% 3,891 21% 3,207<br />
Trade receivables 3,436 27% 2,711 26% 2,151<br />
Other receivables<br />
and current assets 10,191 35% 7,523 (1%) 7,630<br />
Subtotal 28,584 42% 20,062 12% 17,886<br />
Trade payables 3,061 40% 2,183 59% 1,373<br />
Other accounts payable<br />
and current liabilities 8,479 19% 7,121 77% 4,032<br />
Subtotal 11,540 24% 9,304 72% 5,405<br />
Net working capital 17,044 58% 10,758 (14%) 12,481<br />
Finished goods, days 37 28 28<br />
Trade debtors, days 10 10 11<br />
Trade creditors, days 19 16 12<br />
Finished goods days rose from 28 in 2010 to 37 in <strong>2011</strong>, notably as a result of the weaker buyer activity<br />
observed in the last quarter of the year. Nevertheless, by maintaining relatively strict sales terms<br />
predominantly requiring prepayment or letters of credit confirmed by reputable financial institutions,<br />
trade debtor days remained stable at 10.<br />
Annual Report and Accounts <strong>2011</strong> EuroChem 57<br />
Business review
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