Annual Report

Astarta Holding N.V.Consolidated financial statements as at and for the year ended 31 December 2011CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER(in thousands of Ukrainian hryvnias) 2011 2010Operating activitiesProfit before tax 1,003,609 829,052Adjustments for:Depreciation and amortization 194,869 139,651Allowance for impairement of trade and other accounts receivable 18 15,875 8,535Gain on acquisition of subsidiaries 4 (140,312) (42,294)(Gain) loss on sales of property, plant and equipment 28 (1,504) 4,979Write down of inventories 25 6,986 4,921Finance income 27 (27,442) (871)Interest expense 27 169,792 88,168Gain from changes in fair value of biological assets 26 (20,364) (113,416)Loss (gain) arising from remeasurement of agricultural produce to fairvalue 21 (120,068) 3,479Loss from promissory note transactions 27 2,710 9,158Recovery of assets previously written off 28 (6,142) (3,299)Non-controlling interests of limited liability company subsidiaries 27 29,635 23,316Forex loss (gain) on loans and borrowings 4,717 (7,323)Working capital adjustments:Increase in inventories (669,652) (451,848)Increase in trade and other receivables (220,716) (118,006)Decrease (increase) in biological assets due to other changes 19,494 (63,561)Decrease in trade and other payables (60,718) (9,627)Income taxes paid (3,176) (1,005)Interest paid (130,044) (73,612)Cash flows provided by operating activities 47,549 226,397Investing activitiesPurchase of property, plant and equipment, intangible assets and othernon-current assets (620,057) (357,356)Proceeds from sales of property, plant and equipment 2,486 147Sale (purchase) of long-term investments (15,113) (13,449)Sale of promissory notes available-for-sale - (11,868)Interest received 27 23,901 871Acquisition of subsidiaries, net of cash acquired (61,964) (30,433)Deposits placement (294,097) (10,978)Cash flows used in investing activities (964,844) (423,066)The consolidated statement of cash flows is to be read in conjunction with the notes to andforming part of the consolidated financial statements set out on pages 75 to 146.67