Almaty, Kazakhstan – March 10, 2009 – Kazakhstan Kagazy PLC (the “Group” or “Kagazy”) (LSE: KAG), one of Kazakhstan’s leading industrial groups, today announced the following trading update for the year ending 31 December, 2008, ahead of announcing its full year results at the end of April 2009.
Despite the challenging market environment, Kagazy performed in line with management’s expectations during the fourth quarter of 2008. Consolidated revenues for the full year 2008 are expected to be marginally above 2007 results. The Group’s paper business continued to face testing macroeconomic conditions and the segment’s revenues for the full year 2008 are anticipated to be below 2007 results. However, revenue for the warehousing business is expected to show a significant increase in 2008 compared to 2007.
EBITDA, Profit from operations and Net income were negatively impacted in 2008 by weaker operating margins and a number of non-recurring impairment charges in relation to the suspension of a tissue paper project, cancellation of plans to redeploy its decommissioned Chinese corrugator at Kagazy’s paper facility in Uzbekistan and termination of a contract for the construction of an A Class warehousing facility. Despite these adjustments, EBITDA, Operating profit and Net income for the full year 2008 are anticipated to be positive as a result of the non cash gain that arose following the acquisition of Astana Contract.
Kagazy’s financial position remains stable. Management believes that the Group’s cash levels are sufficient to meet current debt obligations over the next 12 months.
For further information, please visit www.kazakhstankagazy.com or contact:
Kazakhstan Kagazy
Yuriy Bogday
Chief Executive Officer
Tel: +7 727 244 8787
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Kazakhstan Kagazy
Alessandro Manghi
Chairman
Tel: +7 727 244 8787
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Shared Value Limited
Larisa Kogut-Millings
Investor Relations
Tel. +44 20 7321 5010
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Kazakhstan Kagazy plc runs Central Asia’s largest producer of paper, corrugated board and packaging products. It also operates one of the leading developers of commercial warehousing and industrial infrastructure facilities in Kazakhstan through PEAK LLP, which owns approximately 711 hectares of prime land, strategically located in newly created industrial zones in Almaty. The Group’s assets totalled approximately US$ 800.4 million as at September 30, 2008 and consolidated revenues amounted to approximately US$ 59.8 million for the first nine months of 2008. Kazakhstan Kagazy plc’s securities are listed under the symbol “KAG” on the London Stock Exchange.
This interim statement contains certain forward-looking statements with respect to the financial condition, results, operations and businesses of Kazakhstan Kagazy plc. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. Nothing in this interim statement should be construed as a profit forecast.
