MOTOR SICH PJSC 2009 MOTOR SICH annual report ANNUAL REPORT 2009 MOTOR SICH annual report 2009 CONTENTS BASIC DATA ABOUT COMPANY MANAGEMENT BODIES OF JSC “MOTOR SICH” Information About Company . 5 Corporate Management . 29 Information About Registrar . 5 Board of Directors . 30 Quantity and Structure of Shareholders . 5 Supervisory Board . 33 Internal Audit Commission . 36 Acquiring banks . 6 Information About Statutory Capital . 8 FOREIGN ECONOMIC ACTIVITY Strategy of Company . 8 Business Strategy . 39 Priority Activities of Company . 9 Mission of Company . 10 PRODUCTION ACTIVITY Specialization . 10 Main Aspects of Production and Financial Activity . 45 Positioning in Industry . 11 Production Activity . 46 Certification . 13 Advanced Technologies . 48 Securities of JSC “Motor Sich” . 15 Service Maintenance . 50 Structure of Company . 16 Capital Construction . .51 Air Company . 18 Prospects for 2010 . 52 Subsidiary Companies . 19 FINANCIAL AND ECONOMIC ACTIVITY . 55 MAIN RISK FACTORS PERSONNEL POLICY Industry Risks . 21 Labour and Wages . 57 Financial Risks . 24 Legal Risks . 25 SOCIAL SPHERE . 61 FINANCIAL REPORT INVESTMENT ACTIVITIES Balance . 63 Trend Analysis of Stock Value . 27 Report on Financial Results . 64 Preproduction Activities . 27 Main Aspects of Accounting Policy . 65 Involvement of Budget and Credit Funds . 27 Notes to Financial Report . 66 MOTOR SICH annual report 3 2009 Motor Sich PJSC is one of the leading aircraft engine- We are always open to all enterprises and organizations building factories of the world in the field of develop- ready to extend their relations for mutually-beneficial and ment, production, testing, in-service support and promising cooperation in the field of development, man- overhauling of modern aircraft engines. ufacturing and operation of aviation equipment. The factory products are used in versatile airplanes and helicopters in more than 120 countries worldwide. All products offered by the company to the world market possess high functional characteristics and are produced by means of certified production facilities. V.A. Boguslayev Modern technologies developed and incorporated at Motor Chairman of the Board of Directors Sich PJSC, new engineering and technological solutions, Motor Sich PJSC well-developed scientific and technical infrastructure and highly qualified personnel establish the basis of success and continuous development of Motor Sich PJSC. Efficient system of the delivered products servicing allows rendering highly competitive services in maintenance of engines practically in any part of the globe. BASIC DATA ABOUT COMPANY MOTOR SICH annual report 5 2009 Information About Company Information About State Short title: Motor Sich PJSC Registration Full title: Motor Sich Public Joint-Stock Company Company Code 14307794 Legal address: 15 Motorostroiteley Avenue, Certificate Series and No. – А00 207866. Zaporozhye 69068, Ukraine Record No. – 1 103 107 0031 005089. Phone: (380 61) 720-48-14 Registration place – the Executive Committee of Fax: (380 61) 720-50-00 Zaporozhye City Council. E-mail: [email protected] Date of registration – 25.05.1994. Web page: www.motorsich.com Quantity and Structure of Shareholders as of 31.12.2009 Owners of shares Q-ty of entities Share in Statutory Capital Q-ty of shares pc. (Shareholders) (persons) of MOTOR SICH PJSC (%) Legal entities 26 3 515 0,17 Natural persons 9 145 466 881 22,47 Nominee shareholders * 4 1 509 996 72,70 Emitter 97 598 4,70 State 0 0,00 Total 2 077 990 100,00 * Nominee shareholders are not owners of securities As of 01.02.2010 (registration date – date of opening the register for mailing Notifications to the shareholders about holding the general meeting of shareholders on 25.03.2010) shareholders of the company are natural persons and legal entities, including: natural persons – 9 320 shareholders; legal entities – 210 shareholders. Holders of More Than 10% Share of Statutory Capital Title Total nominal value, Share in Statutory Q-ty, pc. (Full name for natural persons) UAH Capital, % Vyacheslav Alexandrovich Boguslayev 311 421 42 041 835,00 14,99 Information About Registrar Information About Auditor Records on the right of ownership of securities of Reliability and completeness of financial reports of MOTOR SICH PJSC are kept by an independent regis- MOTOR SICH PJSC for 2009 is confirmed by an auditing trar – Sich-Register Ltd. (Enterprise Code 30801610). company ZaporozhAudit-Consult CJSC (Enterprise Code Location: 21 Omelchenko Street, Zaporozhye 69068, 13625523) according to Agreement No 3/2/2140/08 – Д Zaporozhye region. (general accounting) dated 27.02.2008. Operating license – АВ No. 115244 dated 14.06.2006. Location of auditing company: 6 Tikhy Pereulok Street, Phone: 7204863, Fax: 2139764. Zaporozhye.Date of state registration of ZaporozhAudit- Web-page: www.s-reestr.com.ua Consult JSC – 21.01.1994; E-mail: [email protected]. Enterprise code – 1 103 120 0000 012930. Certificate of Auditing chamber No. 0057, dated 26.01.2001, about registration as a subject of auditing activity. Validity term of Certificate is extended till December 15, 2010. MOTOR SICH 6 annual report 2009 SERVICING BANKS List of current accounts of Motor Sich PJSC FULL TITLE OF BANKING DATE OF ACCOUNT NAME NUMBER INSTITUTION, MFO OPENING Branch of FUIB PJSC Current (main) - (980 - UAH) No. 26000976712139 23.11.99 MFO 313623 69035 Zaporozhye Currency - (643 - Rus. Rub.) No. 26000976712139 29.11.99 57, 40 Let Sovetskoy Ukrainy Street Enterprise Code – 20513546 Currency - (840 - USA dollars) No. 26000976712139 23.11.00 Currency - (978 - Euro) No. 26000976712139 15.09.00 Donetsk Branch of Current - (980 - UAH) No. 26007198002341 29.04.98 Creditprombank OJSC MFO 335593 Currency - (643 - Rus. Rub.) No. 26003181002341 29.04.98 83062 Donetsk 113, I. Tkachenko Street Currency - (840 - USA dollars) No. 26000184002341 29.04.98 Enterprise Code - 25098916 Currency - (978 - Euro) No. 26004197802341 21.04.99 Zaporozhye Branch of Current - (980 - UAH) No. 26004099800012 01.02.05 Creditprombank OJSC MFO 373135 Currency - (840 - USA dollars) No. 26007098400012 01.02.05 69005 Zaporozhye 5 Gagarina Str., office 106 Currency -(978 - Euro) No. 26005099780012 24.03.05 Enterprise Code – 33151845 Currency - (643 - Rus. Rub.) No. 26002096430012 21.03.06 State credit-import bank of Current - (980 - UAH) No. 260090175838 14.02.02 Ukraine PJSC MFO 313979 Currency - (643 - Rus. Rub.) No. 260090175838 11.01.05 69063 Zaporozhye Enterprise Code – 24905013 Currency - (840 - USA dollars) No. 260090175838 11.01.05 Currency -(978 - Euro) No. 260090175838 11.01.05 Central Department of Current - (980 - UAH) No. 26006450001000 26.09.03 Dongorbank CJSC MFO 334970 01021 Kiev Currency - (643 - Rus. Rub.) No. 26003450001003 26.09.03 5 Klovsky Spusk Street Enterprise Code – 20365318 Currency - (840 - USA dollars) No. 26005450001001 26.09.03 OTP Bank PJSC Current - (980 - UAH) No. 26006001301191 24.09.03 MFO 300528 69063 Zaporozhye Currency - (643 - Rus. Rub.) No. 26006001301191 24.09.03 66 Lenin Avenue Enterprise Code – 21685166 Currency - (840 - USA dollars) No. 26006001301191 24.09.03 Currency - (978 - Euro) No. 26006001301191 24.09.03 MOTOR SICH annual report 7 2009 FULL TITLE OF BANKING DATE OF ACCOUNT NAME NUMBER INSTITUTION, MFO OPENING Rodovid Bank OJSC Current - (980 - UAH) No. 260056640 26.05.04 MFO 471717 04136 Kiev Currency - (840 - USA dollars) No. 260056640 26.05.04 Enterprise Code -14349442 Currency - (643 - Rus. Rub.) No. 260056640 01.10.04 UkrSibbank JSC Current - (980 - UAH) No. 26003044619000 19.06.06 MFO 351005 61050 Kharkiv Currency - (643 - Rus. Rub.) No. 26000044619003 19.06.06 60 Moskovsky Avenue Currency - (840 - USA dollars) No. 26002044619001 19.06.06 Enterprise Code – 09807750 Currency - (978 - Euro) No. 26001044619002 19.06.06 Zaporozhye Branch of Current - (980 - UAH) No. 26006301001537 VTB Bank OJSC 11.10.07 69001 Zaporozhye Currency - (840 - USA dollars) No. 26006301001537 11.10.07 35А Pobedy Street Enterprise Code – 25970260 Currency - (643 - Rus. Rub.) No. 26006301001537 11.10.07 Ukrainian Bank for Reconstruction and Development OJSC MFO 380883 Current - (980 - UAH) No. 260050011066 24.10.07 04080 Kiev 4 Alexey Terehin Street Enterprise Code – 26520688 MOTOR-BANK OJSC Current - (980 - UAH) No. 26006001000017 17.01.08 MFO 313009 69068 Zaporozhye Currency - (643 - Rus. Rub.) No. 26006001000017 17.01.08 54-b 8 March Street Currency - (840 - USA dollars) No. 26006001000017 17.01.08 Enterprise Code – 35345213 Currency - (978 - Euro) No. 26006001000017 03.07.08 BROKBUSINESSBANK PJSC Current - (980 - UAH) No. 260075025801 03.12.08 MFO 373254 69005 Zaporozhye Currency - (643 - Rus. Rub.) No. 260075025801 03.12.08 5 Gagarina Street, office 107 Enterprise Code – 34540988 Currency - (840 - USA dollars) No. 260075025801 03.12.08 Currency - (978 - Euro) No. 260075025801 03.12.08 Swedbank PJSC Current - (980 - UAH) No. 26008003842801 04.02.09 MFO 300164 69091 Zaporozhye Currency - (643 - Rus. Rub.) No. 26008003842801 04.02.09 52 А Pobedy Street Currency - (840 - USA dollars) No. 26008003842801 04.02.09 Enterprise Code – 19356840 Currency - (978 - Euro) No. 26008003842801 04.02.09 Credit Dnepr Bank PJSC Current - (980 - UAH) MFO 305749 No. 2600430373402 19.10.09 69035 Zaporozhye 153 Lenin Avenue, Office 89 Currency - (840 - USA dollars) No. 2600430373402 19.10.09 Enterprise Code – 14352406 MOTOR SICH 8 annual report 2009 INFORMATION ABOUT STATUTORY CAPITAL The statutory capital of MOTOR SICH PJSC is UAH 280 528 650 (Two hundred and eighty million, five