Factbox-Companies count the cost of ditching Russia

div classBodysc17zpet90 cdBBJodivpReuters – Multinational companies that announced their exit from Russia, or suspension of activities there, after its invasion of Ukraine have started to calculate losses associated with their decisions.p

pBelow is an alphabetical list of firms that have provided cost estimates related to their temporary or permanent halt of business in Russia:pdivdivdiv classBodysc17zpet90 cdBBJodiv

pAB InBevp

pThe Belgian brewer announced on April 22 it would sell its noncontrolling stake in its Russian joint venture AB InBev Efes. The divestiture will result in a 1.1 billion impairment charge in the first quarter. The joint venture has 11 breweries in Russia and three in Ukraine. p

pADIDASp

pThe German sportswear company warned in March of a hit to sales from closing business in Russia, without giving an estimate. It operates 500 stores in the country, a quarter of its total. It also said Ukraine could pose a risk to sales of up to 250 million euros 271 million, or about 1 of the group total in 2021. p

pCARLSBERGp

pThe Danish brewer said the decision to sell its Russian business would result in a writedown of about 9.5 billion crowns 1.4 billion. The company generated 10 of its revenue and 6 of its operating profit in Russia in 2021. It also said it expected 300 million crowns of Ukraine impairment charges, plus goodwill writedowns of 700 million crowns for the Central and Eastern Europe region, which includes Ukraine. p

pCITIGROUP p

pThe U.S. bank said in connection with its quarterly report it sees a loss of up to 3.0 billion from its exposures in Russia in a severely adverse scenario. The company said it had reduced its total exposure to the country since December 2021 by 2.0 billion to 7.8 billion. The most global of the American banks added 1.9 billion to its reserves in the first quarter to prepare for losses from direct exposures in Russia and the economic impact of Ukraine war. p

pCREDIT SUISSE p

pThe Swiss bank estimated on April 20 the impact of the Russian war in Ukraine will cost it 200 million Swiss francs 209.10 million in Q1 2022. p

pESSITY p

pThe Swedish hygiene products group said it would record a writedown of 1.4 billion crowns 147.66 million after it shut down all production and sales in Russia in March. The company generated around 2 of its total sales in the country last year, amounting to 2.8 billion crowns 295.32 million. p

pEXXON MOBIL CORPp

pThe oil giant‘s decision to leave Russia and discontinue oil and gas operations will hit earnings, oil production between 1 and 2, the company’s CFO said. Exxon Mobils Russian oil and gas operations were valued at more than 4 billion. p

pHASBROp

pThe American toy maker warned on April 19 of a potential revenue hit of about 100 million this year due to its decision to pause toy shipments to Russia.p

pHEINEKEN NV p

pThe Amsterdambased brewer decided in late March to leave Russia, concluding that ownership of any business there is no longer sustainable or viable in current environment. Heineken added it will not profit from any transfer of ownership and expects an impairment and other noncash exceptional charges of about 0.4 billion euros 432.96 million in total. p

pHUSQVARNA p

pThe Swedish gardening equipment maker said April 21 it had booked writedowns of 119 million crowns 12.6 million in the first quarter of 2022 as a result of stopping all exports and investments in Russia. In 2021, Russia accounted for 1.5 of group sales. p

pKONECRANESp

pThe Finnish engineering group said it made a writedown of 79 million euros in orders from Russia in the first quarter. It also cancelled 32 million euros 34.62 million of sales to the country which negatively impacted the quarters operating profit by about 39 million euros.p

pLPPp

pFourthquarter results of LPP, Poland‘s biggest fashion retailer, were hit with a 335 million zloty 78.05 million writedown, covering closure of its stores in Russia. In 20212022, Russia was LPP’s secondbiggest market after Poland, constituting 19.2 of the retailers fullyear sales revenue. The company sees the suspension of business in Ukraine and closing stores in Russia to cost 25 of revenue. p

pMETSO OUTOTECp

pThe Finnish provider of mining solutions, which halted deliveries to Russia in March, said on April 21 that operative assets related to Russian customers of about 100 million euros 109 million could be at risk if is unable to wind down existing contracts in a controlled way. The company, which generated 10 of revenue from Russian sales in 2021, added it had 269 million euros of advance payment guarantees tied to deliveries to Russia at endMarch. p

pMCDONALDS p

pMcDonalds said in March the closure of its Russian restaurants would cost it about 50 million a month. The company operates 847 sites – of its global total of over 38,000 – in Russia. p

pBrokerage Piper Sandler expects the restaurant chains halt to operations in Russia to result in an earnings per share hit of 1.19 in 2022.p

pNETFLIXp

pThe global streaming giant said on April 19 its decision to suspend services in Russia resulted in the loss of 700,000 members as the company lost subscribers for the first time in more than a decade. p

pOMVp

pThe Austrian energy group said on April 8 it would take a 2 billioneuro hit in the first quarter from its pullback from Russia, split evenly between its connection with the Nord Stream 2 pipeline project and adjustments to the consolidation method of two Russian entities.p

pPHILIP MORRISp

pThe tobacco giant took a charge of 3 cents per share related to the war in Ukraine in Q1, after discontinuing sales of a number of Marlboro and Parliament cigarette products in Russia. Philip Morris Q1 earnings fell 3.6 to 2.32 billion, or 1.50 per share, including the 3cent charge. Russia generated revenue of more than 1.8 billion last year for the company, around 6 of its global sales p

pRENAULT p

pRenault said in March it considered a 2.2 billioneuro 2.38 billion noncash writedown to reflect the potential costs of suspending operations in Russia. Lost sales in Russia accounted for 166 million euros of revenue loss in Q1, though the country remained the companys secondlargest market after France.p

pSHELLp

pThe worlds largest liquefied natural gas trader will write down up to 5 billion following its decision to exit Russia, above the 3.4 billion previously disclosed, the company said on April 7. The increase was due to additional potential impacts around contracts, writedowns of receivables, and credit losses. p

pSOCIETE GENERALE p

pThe French bank said it would quit Russia and write off 3.1 billion euros 3.35 billion from selling its Rosbank unit to Interros Capital. The amount comprises a 2 billioneuro hit on Rosbanks book value and the rest linked to the reversal of rouble conversion reserves. p

pSKFp

pThe Swedish bearings and seal maker said on April 22 it will cease all operations in Russia and plans to divest its Russian business in a controlled manner. The decision triggers a writedown of about 500 million Swedish crowns 52.70 million in the second quarter. Russian sales accounted for about 2 of the groups total sales in 2021. p

pTJX p

pThe U.S.based fashion retailer TJX said it would sell its 25 stake in the Russian lowcost apparel shop chain Familia. The stake was valued at 186 million at the end of January, lower than the 225 million TJX paid for it in 2019. TJX said it might need to record an impairment due to the divestiture if the fair value of the Familia investment declines below its carrying value on the balance sheet. p

pVOLVOp

pThe Swedish truck maker said on April 8 it had set aside provisions worth 423 million after suspending activities in Russia that amounted to 3 of group sales.p

p1 0.9243 europ

p1 9.4870 Swedish crownsp

p1 6.8341 Danish crownsp

p1 4.2921 zlotysp

p1 0.9565 Swiss francp

p

pp Compiled by Padraic Halpin, Marie Mannes, Agata Rybska, Antonis Triantafyllou, Izabela Niemiec, Patrycja Zaras and Tristan Chabba Editing by Mark Potter and Matthew Lewisp

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