28 Sep 2009 14:03

Avtovaz plans to raise 12 bln ruble loan with interest deferred to 2015

MOSCOW. Sept 28 (Interfax) - Avtovaz plans to raise a 10-year, 12-billion ruble loan with interest payments deferred to 2015, according to a presentation of the Russian carmaker's anti-crisis plan submitted to the government commission chaired by First Deputy Prime Minister Igor Shuvalov, the text of which has been obtained by Interfax.

Under the anti-crisis program for 2010-2014, Avtovaz expects to receive the loan "as compensation for the company's performance of social obligations."

Sources told Interfax earlier that the company will need that much for social payments associated with the layoffs of 27,600 employees.

Avtovaz is also counting on "refinancing existing short-term liabilities at the Central Bank's refinancing rate with interest deferred until 2014."

The company also plans to request project financing for the investment program totaling 42 billion rubles until 2013 "on market terms depending on the risk of each of the projects."

The presentation forecasts the company's finances to 2014. It forecasts a loss on sales of about 7 billion rubles in 2009 on revenue of 87.810 billion rubles and production costs and business expenses totaling 94.839 billion rubles. The net loss is projected at 20.165 billion rubles.

A sales profit of 2 billion rubles is forecast for 2010 on revenue of 100.501 billion rubles, although the carmaker is forecast to post a net loss of 4.698 billion rubles. The company expects to post a net profit of 3.265 billion rubles in 2011 on revenue of 127.637 billion rubles. Those figures will increase to 5.764 billion rubles and 149.330 billion rubles in 2012. Net profit is forecast to decline to 378 million rubles in 2013 on revenue of 157 billion rubles. In 2014 the net profit will equal 2.094 billion rubles on revenue of 191.390 billion rubles.

The profit and loss figures flow from assumptions on market share. Avtovaz expects to have a 31% share of the market in 2010, selling 442,000 cars, including 141,000 Lada Priora. In 2011 market share will rise to 32% and sales to 549,000 cars, including 188,000 Priora. That year the company will sell 10,000 of the new model based on the Renault RF-90 platform. Market share will equal 28% in 2012 with sale of 640,000 cars, including 182,000 Priora, 10,000 of the new car design with Renault and 150,000 cars in a new low-cost model.

Market share is expected to fall to 25% in 2013 with sale of 624,000 cars, including 150,000 of the low cost model, 150,000 Kalina, 168,000 Priora, 73,000 of the model based on the RF-90 platform and another 40,000 in the new Class B model. Market share will remain at 25% in 2014 with sale of 817,000 cars, including 300,000 of the low cost model, 151,000 Priora, 110,000 of the Class B model and 73,000 of the RF-90 model.