1. Written by: Pak S.I. Student of ЕП-09 м group Scientific supervisor: Candidate of Economic Sciences, Scientific supervisor: Candidate of Economic Sciences, Associate professor V.P.Valikov Associate professor V.P.Valikov INCREASE IN EFFECTIVE USE OF FIXED ASSETS OF ENTERPRISE

2. The aim of this diploma paper is to give theoretical proof and recommend how to increase fixed assets use efficiency at the enterprise. The subject of research is DniproAzot, Public Joint-Stock Company. The object of the research is fixed assets use and productive capacities efficiency increase at DniproAzot, Public Joint-Stock Company under market economy conditions. 2

3. structure of main types of production at DniproAzot enterprise in 2012 structure of main types of production at DniproAzot enterprise in 2013 3 Fig.1 Fig.2

4. The results of analysing general fixed assets use rates RatesMarc20122013 Deviation, +/- Yield on capital investment, hrn./hrn. fВfВ 0,220,390,17 Capital coefficient, hrn./hrn. fЄfЄ 4,552,56-1,99 Availability of funds, thousand of hrn/person f ОЗБ 74,779,154,45 Costs for 1 hrn of commodity output, hrn./hrn. Zm0,760,66-0,1 Profitability of fixed assets, % R ОВФ 5,2813,267,98 4 Table.1

5. Sum of capital investments into reconstruction MeasureSum, thousand hrn 1. Replacement of reforming furnace pipes and heat insulation 67260 2. Reconstruction of ammonia converter 26600 3. Installation of membrane hydrogen separator 22971 4. Complete replacement of instrumentation and controls for up-to-date computer TES-3000 type system 29355 5. Replacement of catalytic agents 15893,5 6. Repair and renewal operations of pump and compressor and column equipment 10961,1 7. Projecting 2791,1 8. Buying equipment 5586 9. Repair works 8582,3 Total 190000 5 Table.2

6. After the reconstruction of the aggregate and stabilization of work the production and consumption will amount to: Ammonia production: shop № 1 (aggregate TEK) - 1360 t/day or 430 000t/year shop № 1 (aggregate АМ-76) - 1360 t/day або 430 000 t/year Total - 860 000 t/year 6

7. The basic data for investments efficiency estimation Rates Duration of the project, years5 General investments volume, thousand of hrn.210000 Share of investments into fixed assets, %90,47 Residual cost of fixed assets, %25 Share of equity capital in fundraising structure, %20 Equity capital cost, %30 Borrowed capital cost, %38 Earnings (profit) of the enterprise after the first year, thousand of hrn. 438600 Annual profit growth rate, %5 Selling profitability after the first year of project, %15 Variable costs share in the product price, %70,8 7 Table.3

8. Financial results forecast based on the project, thousand of hrn. Year12345 Profit380800,00399840,00419832,00440823,60462864,78 Variable costs269606,40283086,72297241,06312103,11327708,26 Constant expenditures without depreciation 25573,6 Depreciation28500,0 EBIT57120,062679,6868517,3474646,8981082,92 Interest payments42000,036882,4430485,4822489,2912494,05 EBT15120,025797,2438031,8652157,668588,87 Income tax3780,06449,319507,9713039,417147,22 Net profit11340,019347,9328523,939118,251441,65 Selling profitability, % 15,015,6816,3216,9317,52 8 Table.4

9. The project investments efficiency rates RateUnit of measurem ent Value Net investments costsThousand of hryvnas 64415,55 Internal rate of return %86,5 Discounted pay-back period years1,61 9 Table.5

10. Thank you for your attention!