Английский язык. Практический курс для решения бизнес-задач

3. measurement of the firm’s performance before the effects of financing or taxes

4. a contractual arrangement whereby the firm has the right to use the asset in return for making periodic payments to the owner of the asset

5. the flows of cash arising from the operation of the firm, normally defined as profit after taxes plus non-cash charges such as depreciation

6. the nominal or face value of the share of stock

7. the excess of revenues over expenses during a given time period

8. the difference between the required rate of return on a particular risky asset and the rate of return on a riskless asset with the same expected life

9. an estimate of the value of the cash flows of an investment project generated beyond the final point of the analysis and treated as a cash inflow in the final year of the analysis

10. shares of stock in a company that uses no debt

Exercise 3. Explain the meaning of the words «exposure», «exposed» in the following context and make sentences of your own using these words.

Aeroflot, Russia’s leading airline, offers attractively valued exposure to strong GDP growth in Russia and increasing disposable incomes.

Nowadays, many economies are increasingly exposed to the rigors of international competition.

Exercise 4*. Fill in the blanks using terms given below.

Company Upgrade. Aeroflot: Better Value All Round

The Aeroflot share price has reached our previous…… of USD1.0. We…….. the price for Russia’s largest airline by 15%, to USD1.15, and reiterate our Buy……..

The upgrade is based on strong 1Q04…….. results that significantly exceeded our expectations. We see three main reasons for this strong……..: (1) continuous growth of GDP and real…….. income per……. in Russia; (2) a strong ruble, which boosted overall…….; and (3) better services, aircraft (through fleet restructuring) and flight…….

We…… our 2004E passenger……. forecast for Aeroflot by 2.4%, and our revenue forecast by 4.3%.

We also revise our future cost…….. upwards, though to a lesser extent than our revenue forecast. Hence, our 2004E EBITDA forecast has increased by 9.4%, and net income by 15.4%, and we expect 2004 earnings to improve by about 33%…….. to USD136 million.

We have increased the…….. rate used in our model following the recent increase in the Russian…….. rate from below 6% to 6.5%. Our new Aeroflot…….. is 16%, compared with 14.3% previously.

Aeroflot has the lowest……. in 2003E and going forward among emerging market (EM) and developed market (DM) airlines. While many large European airlines……. losses in 2003, Aeroflot’s expected 2003 profit is above USD100 million.

The stock presently……. at a 44% discount on 2004E P/E and a 40% discount on EV/EBITDA relative to EM……., despite an 11.7% increase in Aeroflot’s share price since February. Aeroflot’s discounts to DM airlines on 2004E…… are 67% on P/E and 20% on EV/EBITDA.

Source: N. Zagvozdina, V. Tskhovrebov, Renaissance Capital, May 2004, www.aeroflot.ru

Terms:

WACC, consumption, trades, multiples, P/E, target, posted, upgrade, risk-free, disposable, schedules, turnover, year-on-year, recommendation, peers, operating, performance, capita, raise, projections, discount

Exercise 5. Translate into English.

Аэрофлот

Повышение ожидаемой через год цены акций на фоне новых макроэкономических прогнозов

Мы повышаем наши прогнозы прибыли на 2004—2005 гг.

В свете наших новых макроэкономических прогнозов, в частности ожидаемого дальнейшего укрепления рубля в номинальном и реальном выражении и замедления инфляции, мы повышаем наши прогнозы прибыли Аэрофлота на 2004—2005 гг. Мы также уменьшаем используемую ставку дисконтирования с 8,4% до 7,8%, что отражает снижение доходности суверенных еврооблигаций.

Мы повышаем ожидаемую через год цену акций Аэфролота до $0,85 и оставляем в силе рейтинг «держать».

Мы используем анализ, основанный на прогнозируемом оценочном коэффициенте, в качестве основной методики оценки Аэрофлота. В результате указанных выше изменений и повышения используемого нами оценочного коэффициента (обусловленного увеличением оценочных коэффициентов зарубежных аналогов Аэрофлота), мы повышаем ожидаемую через год цену акций Аэрофлота с $0,60 до $0,85. Поскольку избыточный доход по акциям компании составляет 3,5%, мы оставляем в силе рейтинг «держать».

Высокие операционные риски оправдывают дисконты.