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OREANDA-NEWS. Group net income "KAMAZ" by the results of 2014 was 149 mln. Rubles (-96.6% to 2013), net profit margin was 0.1%. According to the press service of KAMAZ, the largest negative effect on the decline in profits was negative exchange differences on financial and non-financial liabilities, recognition of the share of loss of associates and joint ventures.

In the summary terms, revenue declined by 3.3% to 2013 and it was 110 billion 599 million Rubles. The decrease in revenue at KAMAZ is explained by the decline of the automotive market, caused mainly by macroeconomic factors such as the growth of interest rates and the negative impact of exchange rates, which became stronger at the end of the year. Backlog of plans by the financing of the federal target programs, the absence of large infrastructure projects, low investment activity, the geopolitical tensions and the tightening of banks' claims to the bank guarantees had a negative impact on the market of trucks. According to KAMAZ, despite the decline in the truck market in Russia by 24%, KAMAZ keeps the leading position in the Russian market of trucks with GVW of 14-40 tonnes with a share of 45%. Overall, by the results of 2014 KAMAZ sold 38,644 trucks (-11.8%), among them it was sold in Russia – 32,557 units (-14.5%), in foreign markets - 6087 vehicles (+ 6%).

Despite the received in the first half of the operating loss, starting from the second half the Group "KAMAZ" managed to improve margins and EBITDA: so, by the results of the year the Group came to a positive operating profit of 2 billion 243 million Rubles, with a margin of 2.0%.

In 2014, the work continued on a comprehensive program of performance improvement. As a result of this program in 2014 we were able to achieve the effect of reducing costs in the amount of 8 billion 763 million Rubles (in 2013 - 8 billion 097 million Rubles), and to reduce the negative impact of rising exchange rates and the resulting rise in purchases of import components.

Despite the decrease in revenues, the Group "KAMAZ" kept the positive operating cash flow in the amount of 5 billion 667 million Rubles, which allowed the Group to keep its debt burden of "KAMAZ" at an acceptable level with a significant increase in investment spending. The level of net financial debt increased slightly, and it was as of December 31, 2014 12 billion 735 million Rubles against 11 billion 650 million Rubles a year before. It is worth noting that the implementation of bank covenants by the ratio of net debt to EBITDA confirms the financial stability of the Group. As part of the loan debt there are ruble-denominated loans and bond loans, attracted by the Group to finance investment projects.

With regard to the Group's investment program of "KAMAZ", the implementation of the priority strategic projects in 2014 was continued. Investments in research and development and modernization of fixed assets in 2014 were 6 billion 189 million Rubles, or 6% of revenue (2013: 4 billion 727 million Rubles, or 4% of revenues).