Kristall Production Corporation OAO 2011 Annual Results

Kristall Production Corporation OAO from Smolensk has summarized the official results for the year 2011. The joint-stock company has again topped its own record levels in its financial performance.

The company’s revenues totaled 16.732 billion roubles, this is 56% more than the planned figure, and 38% more than during the previous year (the revenues in 2010 totaled 12.103 billion roubles.

Kristall’s net profits in 2011 were 1,5 times higher that in 2010 – 287.995 million roubles compared to 187.825 million roubles in 2010.

In 2011, the average salary of the manufacturing personnel grew 20,6% year on year to 33,236 roubles.

Kristall’s tax proceedings to all budgets increased 80%. In 2011, the amount of monetary funds directed to taxes and dues payments reached 779.625 million roubles.

In 2011, a proprietary training centre was opened on the basis of the company. Its task is to provide formation of personnel reserve. The centre is training workers of all specializations, who are in demand at the manufacture.

In its activities, Kristall follows the Collective Agreement, that grants the employees a high kevel of motivation depending on the labour productivity by means of a progressive system of payment and social guarantees.

In 2011, the programme of the company’s innovative development continued to be implemented$ this programme includes global technical re-equipment, for which purpose more than 173 million roubles have been channeled.

In 2011, the company’s production capacities were used at 100 percent scale. Kristall remains a strategically important, socially significant and responsible company, both for the region, as for the country at large. 60% of the company’s demand in rough diamonds are provided within the frames of a long-term agreement with ALROSA, the major supplier of rough diamonds in the Russian Federation. Besides, Kristall has a long-term agreement with Nizhnelenskoye company, purchases rough diamonds at Gokhran of Russia, as well as in the open market. Kristall is also the sole Russian sightholder of the Diamond Trading Company (DTC) in 2011, the contract was prolonged for three more years.

There are 2500 people working at the company. The Kristall Group of companies is represented by four overseas trading companies in Hong Kong, Dubai, Antwerp and New York, as well as the Smolenskie Brillianty Jewellery Group, and Almas Service Ltd., specializing in manufacturing accessories, instruments and equipment for the diamond industry.

In 2013, the company will celebrate its 50th Anniversary, and now, has entered the active phase of preparations for this jubilee, including different significant repair and construction works and organizational arrangements.

Kristall Production Corporation OAO, the largest polished diamonds manufacturing enterprise in Europe, specializes in highest-level quality products, acknowledged in the whole world as the Russian Cut brand. Under the international classification the diamonds manufactured conform to the Double Excellent and Triple Excellent standards.

100% of the company’s shares belong to the Russian Federation.