10.04.2015
Moscow, April 10, SOLLERS Group (MOEX ticker - SVAV) releases IFRS Consolidated Financial Statements as of 31 December 2014. SOLLERS Group’s revenue for the year ended December 31, 2014 totalled RUB 47,907 mln. (RUB 61,317 mln. in 2013). EBITDA went down to RUB 4,309 mln. (RUB 6,387 mln in 2013). EBITDA margin for 2014 levelled at 9%.
The decline of the Group’s Revenue was largely driven by the decrease in sales caused by the overall deterioration of the car market. The profitability of SsangYong business was negatively influenced by the considerable decline in SsangYong sales and substantial depreciation of national currency. Nevertheless, UAZ business improved the profitability as well as increased its share on SUV and LCV markets.
Operating profit of the group totalled RUB 3,561 mln. SOLLERS Group’s net loss of RUB 3,736 mln. in 2014 was caused by the comprised share of Ford Sollers JV losses, which was RUB 5,465 mln. in 2014. Net profit of SOLLERS Group, excluding Ford Sollers JV loss, amounts to RUB 1,729 mln., which includes profit from the consolidated business and share of profits from other joint ventures.
Given volatile and changing market, Ford Motor Company (FMC) and SOLLERS agreed certain changes to the JV structure and the shareholders agreement that will allow both parties to continue to support Ford Sollers in the near term. Under agreements reached between the parties on March 31st, FMC will provide additional funding to the Ford Sollers joint venture. The funding will be utilised to serve the strategic targets, such as new product launches and further investments in the localisation of component manufacturing, which in aggregate will improve the operating efficiency of the joint venture and improve the market position. Under agreed changes to the joint venture structure and shareholders agreement, Ford will obtain a controlling interest in the joint venture through the acquisition of preferred shares, with the 50/50 split of the ordinary shareholder structure unchanged. In addition the agreements provide for certain future rights for the partners to redeem Sollers 50% interest in the joint venture at a minimum predetermined value payable at the date of redemption.
‘We embrace the intentions of Ford to deliver financial support, essential to provide a platform for future growth of the joint venture. Ford and SOLLERS are working jointly as partners, to improve the business outlook for the Ford Sollers joint venture on the Russian market, which is believed to be amongst the largest in Europe’, commented Nikolay Sobolev, the First Deputy CEO, CFO of SOLLERS OJSC.
