OREANDA-NEWS. April 17, 2012. The annual General meeting of shareholders took place in Kemerovo, where the annual report and the annual financial statements of the Company for 2011 were approved.

By the decision of the shareholders according to the results of 2011, 595,550,130 RUB will be forwarded for dividend payment. According to the results of the Company’s performance in 2011 dividends must be distributed at the rate of 6 RUB for 1 common share of nominal value of RUB 0.2 each.

Dividends distribution must be performed in accordance with the list of persons, authorized to receive dividends within 60 days from the date of making a decision of their payment.

СJSC “Consulting Group ”Balance” was approved to be the Auditor of OJSC "Kuzbasskaya Toplivnaya Company”.

Following the results of shareholders’ vote, the Board of Directors of OJSC "Kuzbasskaya Toplivnaya Company” will include the following candidates form the list, approve earlier by the Board of Directors:
Igor Prokudin – the General Director OJSC "Kuzbasskaya Toplivnaya Company”;
Eduard Alexeenko - First Deputy General Director of OJSC "Kuzbasskaya Toplivnaya Company”;
Vadim Danilov – the Chairman of the Board of Directors of OJSC "Kuzbasskaya Toplivnaya Company”;
Yuriy Fridman - Independent Director of OJSC "Kuzbasskaya Toplivnaya Company”;
Williams Alexander Arthur John - Independent Director of OJSC "Kuzbasskaya Toplivnaya Company”.

Management welcomes the appointment of Alexander Arthur John Williams, in accordance with  recommendations of ISS Proxy Advisory Services, as a new independent director, and hopes that his further work as a Board member and cooperation with the Investor Protection Association will allow the company to increase transparency in the for the benefit of all shareholders.

 
For investor enquiries please contact:

 OJSC "Kuzbasskaya Toplivnaya Company" (Moscow)

 Vasily Rumyantsev
 Investor Relations

 Tel.: +7 (495) 787-68-05
 E-mail: vkr@oaoktk.ru

Notes to editors:

 OJSC "Kuzbasskaya Toplivnaya Company" (Kemerovo)

 Elena Sarycheva
 Head of public affairs department

 Tel.: +7 (3842) 36-47-62
 E-mail: es@oaoktk.ru

Company Overview

 OJSC “Kuzbasskaya Toplivnaya Company” (“KTK” or the “Company”) is one of the fastest-growing thermal coal producers in Russia. In terms of 2011 production volume1, it was ranked 7th among the largest thermal coal producers in the country. In the eleven years since its establishment, the Company has commissioned and launched three open-pit mines and an enrichment plant, achieving annual production volume of 8.74 mln. tonnes of coal in 2011.

The Company’s JORC coal resources totaled 402 mln. tonnes of ROM coal as of January 1, 2011 and proven and probable reserves amounted to 185 mln. tonnes of ROM coal, recoverable during the period of 2011-2030. In December 2011 the Company won an auction for the right to use subsurface of “Bryansk 1” coal deposit with reserves of 250.2 mln. tonnes of coal in the C2 category. The surface mine is located in close proximity to existing infrastructure and production assets.

The Company produces exclusively thermal coal, classified as grade “D” under the Russian classification system, with a naturally low sulphur and phosphorus content, as well as a relatively high calorific value.

The Company conducts mining operations at three open-pit mines, located in the Kuzbass area, Russia’s largest coal producing region. The Company’s mining operations are supported by an extensive production and logistics infrastructure, including its own railway network and facilities, which enable the Company to transport 100% of produced coal from the open-pit mines to the main railway hub at the long-distance railway network, operated by the Russian Railways. Furthermore, as the Company’s mines are compactly located within 5 km from each other, a number of operations are conducted centrally, thereby minimizing overhead costs and expenses.

In 2011, the Company’s total coal sales amounted to 10.66 mln. tonnes of coal, of which 8.58 mln. tonnes were produced by the Company and 2.08 mln. tonnes were retailed after purchasing from other coal producers. The Company maintains a diversified sales structure balanced between export and domestic sales: in 2011 about 38.6% of total sales were sold to domestic consumers and approximately 61.4% exported, primarily to Eastern Europe and the Asia-Pacific region.

The Company’s strong regional presence is supported by an extensive retail distribution network, located throughout the Kemerovo, Novosibirsk, Omsk and Altay regions of Western Siberia. As of 01 January 2012, the Company’s distribution network included 67 owned and operated points of sale and delivered 3.18 mln. tonnes of coal in 2011, positioning KTK as one of the principal suppliers of coal to retail customers in Western Siberia.

FY 2011 Financial Highlights
Revenue increased by 69% to RUB 23,939 mln. (2010: RUB 14,160 mln.)
EBITDA2 RUB 3.911 mln. (2010: RUB 2,134 mln.)
EBITDA margin – 16.3% (2010: 15.1%)
Net income – RUB 2,018 mln. (2010: RUB 823 mln.)
Net income margin – 8.4% (2010: 5.8%)

1 Metal Expert, January 2012

2 EBITDA for each period is defined as results from operating activities, adjusted for amortization and depreciation, impairment loss and loss on disposal of property, plant and equipment. EBITDA is not a measurement of the Company’s operating performance under IFRS and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with IFRS or as an alternative to cash flow from operating activities or as a measure of the Company’s liquidity.