Results were taken positively by the market

2017 Revenue grew to 62bn rub +27% Headline EBITDA declined by 7% but EBITDA less government support was up 14%. Net income was small negative.

Large EV/EBITDA numbers are explained by nature of the business half of which is essentially has financial leasing business model rather than industrial business model

Company has targeted c. 30% market share.

Growth rates are not as steep as in the past but the base is much higher as well

Theoretically revenue growth could decelerate in upcoming year but the chart doesn’t show it

And is likely to remain strong as the business grows more vertically integrated

And this is despite overall smaller fleet numbers

Theoretically OVK could sell its park of railcars reducing overall debt load, but its EBITDA will be halved

OVK will have to find substitutes for leasing EBITDA if it decides To restructure business

But high debt to EBITDA multiples do not imply financial susceptibility of the company. It could be compared to operating income to liabilities of the financial institution and yields 12% return on liabilities for OVK vs. only e.g. 2.8% for Sberbank. Even if EBITDA of OVK is accounted for interest expense which is roughly 8% of Net Debt, EBTDA/Net Debt comes to 4.2% and this is still higher number than for Sberbank