RTI GROUP

The enterprises of JSC RTI Group have their own R&D infrastructure and implement projects unique in complexity and scale in the field of radio and space technologies, navigation and microelectronic products. The product portfolio of OJSC RTI Group is represented by ready-made solutions in the field of complex communication and security systems, system integration, microelectronics, telecommunications, geoinformatics and radio navigation, as well as large defense projects of state importance. OJSC "RTI Group" is a participant in the ranking of the largest defense companies in the world TOP Defense 100.

Aktivs

For 2017, the business of the RTI Group concern is represented in three industries:

• defense solutions,
• microelectronics and instrumentation,
• threat monitoring and control systems.

Defense solutions

In the defense segment, the main activity of the holding is the creation of information tools for systems that ensure the strategic security of the country. This is done by:

• Radio Engineering Institute named after Academician A. L. Mints,
• OJSC NPK NIIDAR,
• OKB-Planeta,
• Yaroslavl Radio Plant,
• Dubnensky Machine-Building Plant named after N.P. Fedorov,
• Saransk Television Plant,
• CJSC RTI-Invest","
• JSC "R.O. S. Spettekhmontazh,"
• Elion
• RTIS-EKO

These research and production companies occupy leading positions in both the domestic and foreign markets in the field of high-potential over-horizon radar, over-horizon radar, radar facilities for field tests, modern radio communications for various purposes, aviation weapons and payloads for military spacecraft.

Products of the defense segment are:

• High factory-ready radar of the Voronezh type,
• over-horizon surface wave radars,
• over-horizon spatial wave radars,
• electronic complexes for the Outer Space Control System and
• high-speed broadband lines of multisystem means of network-centric control systems for species and genera of the Armed Forces of the Russian Federation.

Microelectronics and Instrumentation

• Micron
• NIIME
• VZPP-Micron
• NIITM
• Sitronics Smart Technology
• Representative offices in China and Taiwan

On the microelectronics market, RTI Group JSC is represented by the Micron group of companies, which became part of the holding as a result of the integration of Sitronics assets. For 2017, Micron is the largest manufacturer and exporter of microelectronics in Russia and the CIS.

Threat Monitoring and Control Systems

JSC RTI Group also develops and implements complexes of integrated information management and security systems for state authorities, as well as carries out their service. In particular, these are situational management systems for operators of strategically important facilities, law enforcement agencies and departments, as well as critical infrastructure in the B2G and B2B markets. Here RTI Group is represented by such companies as:

• NPC "High Technologies and Strategic Systems,"
• "MTU Saturn,"
• "Innovation Technology Center,"
• Sistema-Sarov and
• "Centre-Telko."

Key security and integration products and solutions:

• National Crisis Management Center and Regional Crisis Management Centers of EMERCOM of Russia,
• regional control centers for forces and means of the Ministry of Internal Affairs,
• city monitoring centers and situation centers of heads of regions, as well as
• information visualization systems and specialized software (ACS, STS software),
• departmental GIS systems,
• video conferencing systems and
• trunking communications.

Performance indicators

2021: Revenue growth by 43.6% to RUB 4,598 million

At the end of 2021, the revenue of the JOINT STOCK COMPANY "RTI" of Companies amounted to 4,598 million rubles, an increase of 43.6% compared to 2020, which allowed it to take 105th place in the ranking of TAdviser100: The largest IT companies in Russia 2022.

History

2022: Sistema's withdrawal from RTI Group capital

On May 4, 2022, it became known that PJSC AFK Sistema completely withdrew from the capital of the RTI Group and Kronstadt concern.

"The corporation reduced its stake in the RTI Group concern and in the Kronstadt company below the control in July 2021, and subsequently completely withdrew from the capital of these companies," Interfax reported with reference to the statement of AFK Sistema[1]

2020

Revenue growth by 46% to RUB 3,202 million.

At the end of 2020, RTI Group 's revenue amounted to 3,202 million rubles, an increase of 46% compared to 2019, which allowed it to take 98th place in the ranking of TAdviser100: The largest IT companies in Russia 2021.

Agreement with Huawei to localize production of server equipment

On October 1, 2020, Huawei announced to TAdviser the signing of a strategic agreement with RTI Group JSC. The parties agreed to cooperate in the development of joint software and hardware solutions in order to localize the production of specialized server industrial equipment based on the Huawei Kunpeng processor on the territory of the Russian Federation. Read more here.

2019: Appointment of Pavel Laptaev as CEO

On September 25, 2019, the Board of Directors of RTI Group JSC granted the request of General Director Maxim Kuzyuk to resign. Pavel Laptaev, who previously served as a member of the Management Board - Deputy General Director for Finance, Investment and Economics of RTI Group JSC, has been appointed General Director of RTI Group JSC. Read more here.

2018: RTI Group to export 'safe city' technologies

On July 18, 2018, it became known that the RTI Group Department of International Business and representatives of the business delegation of the Republic of South Africa identified the main areas of development within the framework of the Safe City joint project, the implementation of which involves the use of systems integration solutions and technologies developed by RTI Group. Earlier, RTI invested about 450 million rubles in the creation of such technologies.

As part of the negotiations, the parties discussed the creation of municipal centers for monitoring and managing the urban situation in South Africa, the modernization of the relevant infrastructure, as well as the form of public-private partnership that can be used to implement the project.

Participation in such joint projects is part of the corporate export strategy of RTI Group, where one of the priority tasks is to diversify the export portfolio through the supply of high-tech IT products. The company has competencies in demand on the world market and ready-made solutions that are competitive in price. This gives our South African partners the opportunity to get a solution that is not inferior to their global counterparts. For our company, this project is an opportunity to enter a promising market and at the same time a tool for developing its own IT solutions in cities that strive to meet world standards of security and municipal management in general, - commented on the event RTI Group CEO Maxim Kuzyuk.

At the invitation of the RTI Group, the foreign delegation also got acquainted with the work of the system video surveillances and the Unified Center storages and the city data processing Moscow and visited the National Center for Crisis Management. MINISTRY OF EMERGENCY SITUATIONS Russia South African specialists noted the high efficiency of solutions and systems developed and implemented in Russia.

2017

Sovcombank sold 10% of shares in RTI Group

In December 2017, it became known that Sovcombank reduced its stake in the capital of the largest Russian holding in the field of defense and microelectronic solutions - OJSC RTI Group - from 10% to 0%. This is stated in the materials of the bank. The date of termination of the reason to dispose of shares is indicated on December 25.

In April 2016, Sistema sold 10% of RTI Group holding to Sovcombank.

Multibillion-dollar Defense Ministry lawsuit

The Ministry of Defense expects to recover 4.97 billion rubles from the defense concern RTI Group owned by AFK Sistema. Information about the ministry's appeal to the Moscow Arbitration Court appeared on the Electronic Justice website on May 4, 2017. The essence of the claims in the public domain has not yet been submitted by the Ministry of^[2].

A RBC source in the Ministry of Defense suggested that the lawsuit was related to the breakdown of the state defense order. The main activities of the research and production complex RTI Group on its website announced the creation of ground-based information means for strategic systems of the aerospace defense of Russia, the mission of which is to ensure national security. RTI Group is the lead contractor for the creation and modernization of ground-based information tools for missile attack warning systems, missile defense and space control.

Sistema plans to buy 15.32% of RTI Group shares from VTB

AFK Sistema and VTB agreed on long-term financing of the RTI group of companies (Radio Engineering and Information Systems). The bank will become a key creditor of the project with a total amount of claims of up to 28.5 billion rubles, in 2016-2017 it refinances all debt obligations of the RTI Group, with the exception of obligations under the state defense order covered by state guarantees, the concern said in a statement.

Loan agreements provide for a deferral of repayment of a significant part of the debt of the RTI group of companies - about 60% of the total debt - until 2021 with subsequent annual payments until the end of 2026, as well as a grace period for interest repayment. The remainder of the debt will be refinanced with 5-year revolving credit lines, which should provide RTI Group with additional flexibility in working capital management.

Within the framework of the agreements reached, AFK Sistema will also buy 15.32% of ordinary shares of OJSC RTI Group from VTB for 4.5 billion rubles with a final settlement in January 2019. As a result of the transaction, Sistema's share in the company will be 87%. The Federal Antimonopoly Service of Russia had already agreed on a deal in November 2016.

2015: NVision Group sold to MTS

In July 2015, MTS and its controlling shareholder, AFK Sistema, announced a deal to buy and sell the system integrator NVision Group. It was announced that MTS would pay Sistema up to 15 billion rubles for this company. This amount takes into account the debts of the system integrator for 10 billion rubles, which will be covered by the transaction.

2013

Revenue for the year

In 2013, RTI Group 's revenue remained at the level of 2012, as revenue growth in the Defense Solutions segment by 23% year-on-year was largely offset by a decrease in revenues in the Information and Communication Technologies segment.

In 2013, RTI Group JSC improved its position in the prestigious international ranking of the world's largest defense companies Defense News Top 100, rising from 87th to 80th place.

Single contractor of the Research Center of MBU

At the end of 2013, JSC "RTI Group" by order of the Government of the Russian Federation was appointed the sole executor of a large-scale system project to create a National Integrated Center for Monitoring Biological Threats (NRC MBU). This project is aimed at ensuring awareness of the state, business and the population about the current biological situation using modern technologies.

2012

Completion of Sitronics consolidation and delisting from the London Exchange

On August 23, 2012, RTI Group completed the consolidation of Sitronics, forcibly buying 0.52% of the shares from minority shareholders. On the same day, the delisting of Sitronics from the London Stock Exchange ended.

In 2012, the RTI group included:

• OJSC "Sitronics" (63.074%),
• JSC Concern RTI Group Systems (97%),
• NVision Group.

The group included the 5 largest business units:

• BU "Defense Solutions,"
• BU "Integrated Safety Systems,"
• Business Unit "Telecommunication Solutions,"
• BU "Microelectronic Solutions" and
• Company Code "System Integration."

Purchase of "NVision Group"

In January 2012, Sistema OJSC, RTI Group OJSC and Envision Group Management Company LLC signed a framework agreement governing the principles of future relations between the parties and defining the terms of the transaction for the strategic integration of assets of RTI OJSC and Envision Group CJSC.

In accordance with the agreements reached, OJSC RTI Group will acquire 50% of the company's shares from the shareholders of ZAO NVision Group. In addition, the shareholders of ZAO NVision Group will exchange the remaining 50% of the company's shares for shares of OJSC RTI Group of an additional issue. As a result of the transaction, the shareholders of ZAO NVision Group will receive up to $200 million in cash and will become the owners of a significant share in the authorized capital of OJSC RTI Group, having received a significant representation on the Board of Directors of OJSC RTI Group and the opportunity to influence its key decisions.

Today, NVision Group is one of the largest ICT companies in Russia. We expect that the integration of AFK Sistema's high-tech assets, consolidated on the basis of OJSC RTI Group, with the assets of NVision Group as a leading industry partner will lead to an increase in the shareholder value of the company and create obvious advantages in terms of expanding the scale of the business and achieving industry synergy, "said Mikhail Shamolin, President of AFK Sistema

"The proposed transaction corresponds to our strategy to form the largest high-tech company in the CIS market with a diversified portfolio of clients and technologies capable of performing turnkey and servicing complex projects of any complexity for the largest public and private customers. Integration will make it possible to fully use the complementary market and technological competencies of the parties, "said Sushkevich Anton, President of NVision Group

"The integration of assets and competencies of NVision Group and RTI Group, which have obvious synergistic potential, will strengthen RTI Group position as one of the leading suppliers of complex technological solutions with a high share of its own knowledge-intensive product. The ICT expertise of NVision Group can be successfully used in the strategic areas of RTI Group 's activities, including integrated security and communications systems, microelectronic and telecommunication solutions, "said RTI Group, General Director of OJSC Sergei Boev

The completion of the transaction is due to the fulfillment of a number of preconditions, including its approval in accordance with the corporate procedures of the parties to the transaction, obtaining all the necessary permits from state regulatory bodies, as well as the signing of a number of separate agreements related to the transaction.

2011

Sales growth by 28% due to a project in the transport system of Moscow

The RTI Group revenue for the full year 2011 increased by 28.3% as a result of the successful implementation of the first stage of the project for the creation of the Intelligent Transport System of Moscow (BU "Integrated Security Systems), additional projects of BU" System Integration, "as well as due to the increase in the volume of work under the state defense order (BU" Defense Solutions ").

The OIBDA of RTI Group decreased in full 2011 compared to the same period last year due to the active market expansion of the Company "System Integration," an increase in current expenses of the Company "Microelectronic Solutions" due to a planned increase in expenses for the project of 90 nm; and in connection with the sale of RTI Group stake in Watt Drive.

Sale to Brazilians 74.9% in Austrian WattDrive and purchase 100% in RTI Estate

In December 2011, RTI Group Sistema completed the sale of a 74.9% stake in the Austrian group WattDrive to the Brazilian corporation WEG.

In December 2011, the RTI Group acquired 100% of the authorized capital of RTI Estate OJSC.

• In December 2011, RTI Group and OAO Bank of Moscow entered into a long-term financing agreement, according to which OAO Bank of Moscow, a shareholder of RTI Group, which owns 15.4% of the company's authorized capital, provides RTI Group with long-term financing in the amount of US $115 million and 3.6 billion rubles for a period of 7 years for business development.

• In December 2011, AFK Sistema, RTI Group and the non-profit organization Development Fund of the Center for the Development and Commercialization of New Technologies (Fund) Skolkovo entered into an agreement on comprehensive cooperation. The agreement is of a long-term strategic nature and provides for the innovative development of AFK Sistema's high-tech assets in cooperation with the Skolkovo project.

Purchase of 63% from Sitronics

On March 5, 2011, the Board of Directors of Sistema decided to sell 63.97% of Sitronics to RTI Group. Thus, "a hi tech concern is being created, in which there is money from an external partner (Bank of Moscow) and to which other potential partners may join." Sistema sells its stake, and Sitronics will deal with the shares circulating on the market separately when the moment comes.

In July 2011, the transaction on the purchase of RTI Group 63.074% of the shares of Citronx OJSC was completed.

In October 2011, OAO Sitronics, MTS and OAO LUKOIL launched the Quick Refueling project. MTS subscribers, purchasing a SIM card with NFC technology support and a special NFC antenna, will be able to make an instant payment for fuel at LUKOIL gas stations.

AFK Sistema and Bank of Moscow create RTI Group

February 17, 2011 AFK Sistema and OJSC Bank of Moscow created OJSC RTI Group. The Bank of Moscow, acting as an investor in RTI Group, contributed funds in the amount of 3 billion rubles to the authorized capital of the new company. AFK Sistema contributed 97% of the shares of Concern RTI Group Sistema to the authorized capital of the new company, as well as cash in the amount of 2.88 billion rubles. As a result, the share of the Bank of Moscow amounted to 15.4% of the authorized capital of RTI Group, the share of AFK Sistema - 84.6%.

For this transaction, Sistema's share in the concern was estimated at about 14 billion rubles, the assessment was carried out by Ernst & Young. The rest of the shares of the RTI Group Sistema concern belong to individuals, they were not included in the new company.

AFK and the Bank of Moscow intend to ensure the implementation of the investment program of the RTI Group System Concern, including in the field of large-scale state projects, such as geoinformatics and Glonass, says the vice president of Sistema and chairman of the board of directors of the Sergei Boev concern. The strategy of the RTI Group System concern is aimed at creating a leader in the Russian industry in the field of innovative radio technologies, including in the defense sector, and the Bank of Moscow has been working with many defense enterprises for 12 years, a bank representative adds. According to him, the financial capabilities of the bank will allow diversifying the activities of RTI Group and commercializing its developments.

The revenue of RTI Group Systems for the first nine months of 2010 amounted to $336 million, OIBDA - $56 million, and debt - $82 million. Thus, the concern was estimated for the transaction at 5.5-8 OIBDA indicators (depending on the indicators of the last quarter of 2010), said Uralsib analyst Konstantin Belov. Strategically, it can be considered as a continuation of the restructuring of the asset portfolio and the search for partners to participate in secondary businesses, he continues. He recalls that in November 2010, Sistema agreed to create a similar partnership with the British holding Thomas Cook in the field of travel business (AFK contributed a controlling stake in Intourist, and the British - $45 million), and in December, Sberbank acquired a block stake in Detsky Mir from AFK for 3.4 billion rubles.

Despite the creation of a new company, Sistema continues to consider the feasibility of combining RTI Group Systems and Sitronics (also controlled by AFK), says a representative of AFK. The decision will be made in February 2011.

2010: Joining the 100 largest defense companies in the world

In August 2011, JSC Concern RTI Group Sistema re-entered the list of 100 largest defense companies in the world at the end of 2010.

Notes