Consolidated Statement of Cash Flows for the year ended 31 December 2016 (in millions of Russian rubles, unless otherwise stated)

Notes 31 December 2016 31 December 2015
OPERATING ACTIVITIES
Profit for the year98,34181,602
Adjustments for:
Depreciation and amortization of property, plant and equipment and intangible assets10113,766100,529
Impairment of property, plant and equipment1438,503(5,090)
Finance costs1237,18738,865
Finance income12(13,915)(16,238)
Loss on disposal of property, plant and equipment7512,773
Share of loss of associates and joint ventures, net of income tax3434
Impairment of accounts receivable1019,56228,778
Proceeds from subsidiary disposal9(12,318)(12,410)
Bad debt write-off387381
Non-cash receipt of property, plant and equipment(5,650)(7,687)
Non-cash settlement of technological connection agreements(1,973)(954)
Other non-cash transactions(2,513)177
Income tax expense21,50132,110
Operating profit before changes in working capital293,972242,840
Change in trade and other receivables (before impairment)(65,734)(25,118)
Change in inventories (before impairment)919(6,414)
Change in trade and other payables23,84225,510
Change in employee benefit liabilities(1,611)(3,965)
Change in provisions2,884(7,136)
Other(91)(65)
Cash flows from operating activities before income tax and interest paid254,181225,652
Income tax paid(20,247)(6,196)
Interest paid(58,370)(62,768)
Net cash flows from operating activities175,564156,688
INVESTING ACTIVITIES
Acquisition of property, plant and equipment and intangible assets(196,178)(174,052)
Proceeds from the sale of property, plant and equipment5,6922,265
Acquisition of investments and placement of bank deposits(34,636)(188,769)
Proceeds from disposal of investments and withdrawal of bank deposits59,239169,110
Dividends received34844
Interest received11,60315,662
Acquisition of subsidiaries1,221
Net cash flows used in investing activities(153,932)(174,519)
FINANCING ACTIVITIES
Proceeds from loans and borrowings302,878153,716
Repayment of loans and borrowings(327,288)(152,154)
Proceeds from share premium3,12233,473
Acquisition of non-controlling interest in subsidiaries(413)
Dividends paid(10,275)(2,032)
Repayment of finance lease liabilities(189)(245)
Net cash flows from financing activities(31,752)32,345
Net increase in cash and cash equivalents(10,120)14,514
Cash and cash equivalents at the beginning of year97,09082,576
Cash and cash equivalents at the end of year2086,97097,090