Annual Report 2010 AERO Vodochody A.S
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annual report 2010 AERO Vodochody a.s. ANNUAL REPORT annual report 2010 AERO Vodochody a.s. | contents Contents 04 Foreword by the company 18 Organisational structure 24 Company’s 38 Opinion 44 Financial statement 54 Notes to the financial president business report of the supervisory board statement Technological Development 19 Company bodies Aerostructures Division Organisational Changes and management Divize Defence&MRO 40 Auditor’s statement 74 Report on relations Results 25 Sikorsky S-76 of the annual report between the related 20 Key events of 2010 26 Sikorsky UH-60M Black Hawk entities 08 Company profile 27 Alenia C-27J Spartan Corporate Profile 28 Bombardier CSeries Aerostructures Division 29 Further Programs Defence & MRO Division 30 Investments, Development Programs, Strategic Objective Research and Development Corporate Portfolio of AERO Vodochody a.s. Company Income 12 History Aero 31 Revenues Early Years 32 Income Expansion Asset structure War Production 33 Financial Situation Jet Age 34 Human resources In-house Jet Trainers Quality Policy - Quality Management System 14 Aero’s History by Dates 35 Environment Major Events after the Balance Date 02 | | 03 annual report 2010 AERO Vodochody a.s. | foreword by the company president Foreword by the company president 2010 was a year of major changes and significant commercial and economic success for AERO Vodochody a.s. The global market of aviation Organisational Changes products was marked in 2010 by positive development which was also displayed by an increase in customers’ interest in AERO Vodochody a.s. In view of the fact that Aero operates on two significantly different markets with a different products, with the exception of the S-76 helicopter where the transition continues to the latest version, the S-76D and a fall in deliveries. customer portfolio and different nature of provided products, it was decided to split 2 divisions The key subject for all of 2010 continued to be the increase in the efficiency of production and non-production activities, nevertheless the recovery • Aerostructures – combines activities associated with the cooperation programs of the market demanded an increase in the company’s capacities. In 2010 AERO Vodochody a.s. created 71 new job positions and recruited 159 • Defence&MRO – focuses on in the manufacture and support of the company’s in-house products new employees. The company achieved marked commercial success. In January 2010 a contract was signed for the manufacture of cockpits for (L-39, L-59, L-159, Ae-270) and commercial provision of MRO services to aircraft of other „ Sikorsky UH-60M Black Hawk helicopters with the first delivery planned for August 2011. manufacturers, civil and military customers During 2010 the AERO Vodochody a.s. team worked on other business cases of which the most important successfully culminated in April 2011 The split came about at the start of January 2010. The objective of the split is to strengthen with the signing of a contract for the development, industrialisation and production of 4 structural units for the KC-390 aircraft. In terms of size customer focus and specialisation and optimisation of processes in both divisions. The first steps and once production starts, this will be one of the company’s biggest programs with added value equal to the S-76 Program. AERO Vodochody a.s. were also taken to detach the development worksite and make it a separate division planned was successful in talks in Algeria for deliveries as part of the L-39 Program and in Tunisia for repairs of DV-2 engines and co ntinued support for July 2011. The abovementioned need for intensive cooperation with other companies in the of the operation of L-59 aircraft. Aero is also working intensively on the development of the leading wing for the Bombardier CSeries aircraft, Czech Republic and the region of Central and Eastern Europe resulted in creating an independent and the project successfully completed the Joint Definition Phase in August 2010 and entered the Detailed Design Phase. As regards existing programs Strategic Sourcing Division in July 2010, which is engaged in systematically building a supply Aero worked with Sikorsky on the introducing the production of the latest version of the S-76 – variant D helicopter. In 2010 AERO Vodochody a.s. chain and the application of the WING System at selected business partners. AERO IS SUCCESSFULLY supplied the first two series aircraft together with 16 versions of the S-76 C++ aircraft, but has seen a significant fall in total deliveries against 26 S-76C++ aircraft supplied in 2009. Despite this Aero achieved a record pre-tax income of 431 mil. CZK. FULFILLING ITS Results LONG-TERM VISION OF The commercial success confirmed the leading position of Aero Vodochody a.s. among aviation technology manufacturers in the Czech Republic. The most important criterion of the accuracy of the company’s strategy is the continuing A KEY DEVELOPMENT Aero is successfully meeting its long-term vision of being a key development and production partner for leading global aircraft manufacturers success among customers. Further proof of the success of this strategy is also the awards and an integrator of important aviation projects. In addition, commercial success means that Aero is bringing more contracts to the Czech Republic the company received in 2010. Thanks to the long-term emphasis of the entire company AND MANUFACTURING than its present production capacities can handle and in view of the fact that the company’s objective is to invest in development and expansion efficiency and first-class processes, AERO Vodochody a.s. achieved important awards by being PARTNER OF LEADING of new technologies in the next few years and not into extensive growth of existing capacities cooperation is becoming crucial for Aero and other presented with the UTC Gold Supplier Award for 2009 (presented in January 2010). Being companies in the sector in the Czech Republic and neighbouring countries. presented with this award confirms the position of AERO Vodochody a.s. among the top WORLD AIRCRAFT companies in the global aviation business. Aero confirmed its position of top aviation product MANUFACTURERS supplier by again being presented with the UTC Gold Supplier Award for 2010. AERO Vodochody a.s. AND INTEGRATOR Technological Development was also made the Best Supplier of the Helicopter Industry (Supplier Excellence Award) Composites are irreplaceable technology in aircraft construction and their importance will continue to grow in the forthcoming years. In the interest by the American Helicopter Society. OF SIGNIFICANT of strengthening its position on the market AERO Vodochody a.s. has decided to expand and intensify its capabilities in the manufacture of composite AIRCRAFT PROJECTS. structures and also for providing higher efficiency, to transfer the focal point of these activities from the subsidiary Rotortech in Great Britain AERO Vodochody a.s. has unquestionably become a highly attractive business partner to the Czech Republic. In September the first phase was launched of the expansion of composite production at the small composite worksite and employer for all who want to develop and contribute to the successes of the Czech which will become the development and prototype plant in future. In addition, the second phase of composite expansion was launched in the aviation industry on an international scale. form of construction of a large series production site with an area of 5600 m2. The launch of series production at this site is planned in April 2012. In order to secure support for the operation of L-59 aircraft operated by the Tunisian Air Force, Aero purchased equipment and recruited personnel essential for the overhaul of DV-2 engines from the manufacturer, the company HTC. These activities are concentrated at the com pany Clarex a.s., based in Povážská Bystrice, Slovakia. Clarex, a 100% subsidiary of AERO Vodochody a.s., successfully took over the first engine for overhaul at the end of 2010. As of June the transfer was completed of activities of the subsidiary Technometra to the AERO Vodochody a.s. site, where Ladislav Šimek all the activities of AERO Vodochody a.s. are now concentrated, with the exception of the repair of aircraft engines. President and Chairman of the Board of Directors 04 | | 05 UH-60M Black Hawk IN JANUARY 2010, AERO VODOCHODY AND ITS LONG-TERM PARTNER SIKORSKY AIRCRAFT CORPORATION SIGNED A CONTRACT FOR MANUFACTURING OF A COCKPIT FOR THE UH-60M BLACK HAWK HELICOPTER. THE FIRST COCKPITS SHALL BE SUPPLIED BY AERO TO ITS CUSTOMER IN 2011. annual report 2010 AERO Vodochody a.s. | company profile Company profile Corporate Profile Defence & MRO Division AERO Vodochody a.s. (hereinafter “Aero”) based in Odolena Voda, Dolínek, ul. U Letiště no. 374, PCN 250 70 is a joint stock company registered The Defence&MRO Division (Maintenance, Repair and Overhaul) of AERO Vodochody a.s. on 2 January 1991 in the Commercial Register at the Municipal Court in Prague, Section B, File No. 449, company ID No: 00010545, Tax ID No: CZ00010545. specialised in the support and expansion of its final products – the L-159, L-39 and L-59 aircraft and for providing various services in aircraft repair, modernisation, modification By the end of 2006 the Czech Consolidation Agency owned almost 100 % of Aero’s shares. On 4 January 2007 the Penta Group become Aero’s and aviation technology tests. sole shareholder and successfully completed the restructuring project in the company in the same year and from 2007 to 2009 Aero achieved „ a profit of 917 mil. CZK. In 2010 the profit was 431 mil. CZK. Aero’s registered capital is 1,884 mil. CZK and has been repaid in full. In 2009 losses The L-159 system, which involves integrated logistic support, ground training system, of previous years were settled amounting to 4,081 mil.