Russian Helicopters Today 16
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DREAMS OF FLYING 1 Соntents: RUSSIAN HELICOPTERS AT A GLANCE 2 KEY 2015 HIGHLIGHTS 3 CHAIRman’s STATEMENT 10 DIRECTOR GENERal’s STATEMENT 12 RUSSIAN HELICOPTERS TODAY 16 MARKET OVERVIEW 26 Civil Helicopter 28 Military Helicopters 29 Company’s Market Positions 30 2015 – year of efficiency growth and strengthening the results obtained 34 Deliverie 34 Service and After-sales Support 36 Order Book 37 CAPEX 38 Organizational Development 39 2015 Financial Performance 39 strategy 44 Key objectives for 2016 45 social responsibility 46 corporate governance 47 Board of Directors 47 Management 57 Internal audit 62 Capital Markets and Investor Relations 63 risK ManageMent 64 ifrs financial stateMents for the year ended 31 deceMber 2015 70 2 DREAMS OF FLYING / ANNUAL REPORT 2015 KEY HIGHLIGHTS 3 RUSSIAN 20.15 HELICOPTERS EBITDA FIRM ORDER PROFIT AT A GLANCE 212 INCREASED BY BOOK TOTALED HELICOPTERS 39.5% TOTALED RUB 494 JSC “RUSSIAN HELICOPTERS” IS A LEADING PLAYER IN THE GLOBAL WERE SUPPLIED TO RUB 65.6 42.1 HELICOPTERS BILLION HELICOPTER INDUSTRY, THE SOLE RUSSIAN DESIGNER IN 2015 BILLION AS AT AND MANUFACTURER OF HELICOPTERS. 31.12. 2015 Headquartered in Moscow, “Russian Latin America, Russia, and the CIS Helicopters” Holding Company include countries. five helicopter plants, two design Although «Russian Helicopters» NON-CONTROLLING INTEREST IN THE SUBSIDIARIES IS bureaus, component production and was established only in 2007, some maintenance enterprise, a helicopter of the Company’s key entities have REVENUE service company, which ensures after- existed for more than 60 years. The EBITDA1 MARGIN GREW BY sales services in Russia and abroad new shape of the Holding Company AMOUNTED TO 29.5% and five aircraft repair enterprises. combines updated production and 29.8% TO RUB 220.0 BILLION Our helicopters are popular among leading intellectual potential of one the Russian ministries and state of the most historically successful authorities (Ministry of Defense, high-tech industries in Russia with the Ministry of Internal Affairs, and modern global system of service and ~12.2% EMERCOM), operators (Gazpromavia, after-sales maintenance. UTair) and major Russian JSC “UIC “OBORONPROM” is the 1 The Company defines EBITDA as operating profit before depreciation and amortization, adjusted for gain /loss on disposal of property plant and equipment, corporations. Over 8500 helicopters Company’s majority shareholder with impairment of property, plant and equipment with share in results of associates included. EBITDA is a non-IFRS financial measure; therefore, the Company’s of Soviet/Russian production are the ownership of 96.02%1 of shares, definition of EBITDA may differ from similar measures defined by other companies. operated in 100 countries worldwide. including nominal holders. State Traditionally the demand is higher in Corporation “Rostec” holds 3.98 % the Middle East, Africa, Asia-Pacific, of shares. REVENUE, BILLION RUB EBITDA, BILLION RUB PROFIT, BILLION RUB DELIVERY, BILLION RUB +29.5% +39.5% +103.7% -21.8% 169,8169.8 220.0 47.0 65.6 20.7 42.2 271 212 2015 2015 1 94.61% – direct ownership, 1.41% – through VTB Capital Asset Management 2014 2015 2014 2015 2014 2014 4 DREAMS OF FLYING / ANNUAL REPORT 2015 5 DREAM OF A HELICOPTER: AERODYNAMIC VEHICLE mazing as it may seem, but if we appeal to history we Afind that the mankind had dreamed of a helicopter since the dawn of time. The designs and models of rotary-wing vehicles had appeared long before the first of them cut the air with its rotor. For example, the Chinese scholar Ge Hong, who lived 17 centuries ago, mentioned in his notes a «flying Lomonosov’s “aerodynamic vehicle» which is lifted into the air machine” by «revolving blades resembling sword blade». The heritage of Leonardo da Vinci, genius of the the following: «The honorable Italian Renaissance, consists Advisor Lomonosov demonstrated of a sketch of a helicopter-like his invention called «Aerodynamic» device which is believed to be the to be used for the purpose of predecessor to the modern day depressing the air by means of flying machine. wings rotated horizontally in the In his sketch dated to 1475-1483 opposite directions powered by a he wrote that: «If the screw were wound-up spring device of the type made with linen surfaces airtight with used in clocks in order to lift the starch. The machine would be rotated machine into the upper layers of with speed that said screw bores the air...» through the air and climbs high...» This «aerodynamic machine» Three centuries later the model invented by Lomonosov, which, in of the helicopter was demonstrated fact, was the mechanical model of by the Russian genius - Mikhail the helicopter, was intended for Lomonosov. The records of the use in lifting thermometers and minutes of the meeting at the other small instruments into the Imperial Academy of Sciences and air. Almost two centuries were yet Arts (now the Russian Academy of to pass before the first helicopters Sciences) of 12 July 1754 contained appeared in Russia... 6 DREAMS OF FLYING / ANNUAL REPORT 2015 7 22.05.2015 / «Russian Helicopters» Holding 21.05.2015 / «Russian Helicopters» announces KEY NEWS OF 2015: Company announces the start of serial production IAC AR certification of Ka-226T of new heavy Mi-26T2 helicopter > «Russian Helicopters» obtained a type certificate > «Russian Helicopters» started delivering a new 21.05.2015 / «Russian Helicopters» successfully for Mi-38 helicopter batch of Mi-171Sh helicopters to Peru 21.05.2015 / Ansat and Ka-226T of «Russian completed flight testing phase of Mi-171A2 > «Ansat» helicopter was certified in VIP configuration > «Russian Helicopters» transferred first «arctic» Helicopters» production entered the Russian civil helicopter laboratory > «Russian Helicopters» successfully completed flight helicopter to the RF Ministry of Defence aviation market testing phase of Mi-171A2 helicopter laboratory > «Russian Helicopters» Holding Company fulfilled > Ansat helicopter (light utility helicopter) received the contract for the repair of 19 helicopters of the Certificate for transportation of commercial Mexican Air Force passengers HELICOPTER SUPPLIES 10.12.2015 / «Russian Helicopters» Holding 16.07.2015 / «Russian Helicopters» continues HELICOPTER PROGRAM Company delivered five Mi-171Sh helicopters to deliver Mi-8MTV-5-1 helicopters to the RF to Bangladesh Ministry of Defence 30.12.2015 / «Russian Helicopters» obtained a type 10.09.2015 / «Russian Helicopters» produced 03.12.2015 / «Russian Helicopters» Holding 17.04.2015 / «Russian Helicopters» transferred certificate for Mi-38 helicopter a fuselage of first serial Mi-38 Company will deliver Mi-8MTV-1 helicopter to the a batch of Ka-226 helicopters to the RF Ministry Nenets Autonomous Area of Defence 30.12.2015 / «Ansat» helicopter was certified 27.08.2015 / Passenger configuration of Ansat in VIP configuration helicopter became equipped with enhanced stability 26.10.2015 / «Russian Helicopters» Holding 05.05.2015 / «Russian Helicopters» supplied a first system Company signed the agreement for the delivery of batch of repaired Ka-31 helicopters to India 25.11.2015 / «Russian Helicopters» transferred first two Mi-171 helicopters and two Mi-8AMT helicopters «arctic» helicopter to the RF Ministry of Defence 27.08.2015 / «Russian Helicopters» Holding for Rosneft Oil Company Company entered a final stage of tests and 19.11.2015 / The flights within the framework of certification of Mi-38 test flight trials of Mi-8AMTSH-VA helicopter were completed at Ulan-Ude Aviation Plant 27.08.2015 / «Russian Helicopters» Holding Company started flight tests of arctic SERVICE SUPPORT 18.11.2015 / «Russian Helicopters» Holding Mi-8AMTSH-VA Company produced and delivered Mi-8AMT helicopter in a convertible configuration 26.08.2015 / «Russian Helicopters» Holding 21.12.2015 / «Russian Helicopters» will offer a system 22.05.2015 / «Helicopter service company» and Company will enhance flight and functional of after-sales support of Mi-8/17 type civil helicopters Strategy Partners Group will develop «After-sales 09.11.2015 / «Russian Helicopters» Holding characteristics of Ansat helicopter to the operators in the Middle East maintenance 2030» service strategy Company launched flight tests of the second prototype of Mi-171A2 helicopter 02.07.2015 / «Russian Helicopters» presents 02.11.2015 / «Russian Helicopters» proposes a project of Mi-14PS amphibian helicopter helicopter modernization and after-sales support 12.10.2015 / «Russian Helicopters» Holding production resumption program to the operators in Latin America and Company presented Mi-171A2 helicopter of new Caribbean countries generation to Vice Prime Ministers of Russia and 08.06.2015 / «Russian Helicopters» made China presentation of Ansat helicopters with hydro- mechanical control system (HMCS) 07.10.2015 / «Russian Helicopters» Holding Company presented Ka-52 Alligator helicopter 22.05.2015 / «Russian Helicopters» entered into within the framework of «Innovation days of the the first contracts for the delivery of light Ansat East military region» helicopters 8 DREAMS OF FLYING / ANNUAL REPORT 2015 9 PROMOTION IN HOLDING COMPANY NEWS INTERNATIONAL MARKETS 17.09.2015 / Dmitry Rogozin presented an award 25.08.2015 / «Russian Helicopters» Holding to «Russian Helicopters» for the implementation Company signed an agreement on cooperation 22.12.2015 / «Russian Helicopters» Holding Company 09.09.2015 / «Russian Helicopters» Holding Company of state defense order with VTB bank offers Mi-171, Mi-171E, Ka-32A11BC