Transmashholding TMH

The company was established in 2002. Its sole shareholder is The Breakers Investments BV.

Transmashholding's 2020 development strategy assumes revenue growth of 20% and profit growth of 60% by 2019.

In 2009, Transmashholding demonstrated the following results

• The volume of sales of goods and services is 71 billion rubles;
• Tax payments - 10.1 billion rubles;
• The number of employees is 57 thousand people.

Holding enterprises:

• Novocherkassk Electric Locomotive Plant;
• Bryansk Machine-Building Plant;
• Kolomna plant;
• Penzadizelmash;
• Bezhitsky Steel Mill;
• Tver Carriage Works;
• Demikhov Machine-Building Plant;
• Metrovagonmash;
• Oktyabrsky Electric Car Repair Plant;
• Centrosvarmash;
• Transconverter (joint venture with Siemens AG);
• Production company "KMT";
• All-Russian Research and Design Institute of Electric Locomotive Engineering (VElNII).

Performance indicators

2023: Revenue growth by 31% to RUB 411.8 billion

At the end of 2023, Transmashholding received revenue of 411.8 billion rubles. This is approximately 31% more compared to the result for 2022, when the figure was 314.7 billion rubles. Such figures are reflected in the financial statement submitted on March 19, 2024.

In the total volume of receipts, the sale of locomotives provided 106.9 billion rubles against 82.1 billion rubles in 2022. Engine sales on an annualized basis rose from 3.5 billion rubles to 6.1 billion rubles, while supplies of spare parts and equipment, on the contrary, decreased from 24.6 billion rubles to 20.6 billion rubles. Sales of other rolling stock (except for metro cars) brought in 128 billion rubles in 2023 against 98.8 billion in 2022, and sales of metro cars increased year-on-year from 28.8 billion rubles to 51.7 billion rubles. Foundry products provided 5.8 billion rubles in revenue against 5.9 billion rubles a year earlier. The performance of repair work outside of warranty services brought 42.7 billion rubles (32.6 billion rubles in 2022), other activities - 49.9 billion rubles (38.5 billion rubles in 2022). Revenues from other areas, as stated in the document, were mainly formed from sales in sales and distribution activities.

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Transmashholding's net profit in 2023 amounted to 10.5 billion rubles. For comparison, a year earlier, the company suffered a net loss of 4.6 billion rubles.

It is noted that in 2023 and 2022, the amount of development projects that were recognized as expenses in the consolidated statement of profit or loss and other comprehensive income amounted to 150.3 million rubles and 489.9 million rubles, respectively. In 2023, a license of 3.2 billion rubles was written off due to the impossibility of using it.^[1]

2022: Revenue growth by 6.5% to RUB 109.7 billion; losses - 4.2 billion rubles

At the end of 2022, Transmashholding raised 109.7 billion rubles, which is 6.5% more than a year earlier. At the same time, the company showed losses in the amount of 4.2 billion rubles, while in 2021 there was a net profit of 6.4 billion rubles. Such data was disclosed by one of the largest manufacturers of railway and urban rail transport in Russia and the CIS in mid-February 2023.

As reported by Interfax with reference to the Transmashholding report, as of December 31, 2022, the company's long-term loans and loans amounted to 20 billion rubles, short-term - 24.4 billion rubles.

TMH plant in Kolomna

The holding's cost of sales in 2022 increased by 9.7% compared to 2021, amounting to 96.1 billion rubles. Gross profit decreased by 12%, to 13.6 billion rubles, profit from sales decreased by 28%, to 4.95 billion rubles.

The indicator "other expenses" increased nine times in 2022 (compared to 2021), reaching 9.4 billion rubles. In 2022, the company created a reserve for impairment of financial investments in the amount of 1.08 billion rubles, the agency notes.

As of the end of 2022, Transmashholding is the largest manufacturer of rolling stock for rail transport in the Russian Federation. The group's enterprises are located in, St. Petersburg,, Bryansk,,, and To Penza Tver, Moscow Rostovskaya Saratov regions as well as in,,,, and. Switzerland REPUBLIC OF SOUTH AFRICA Egypt To Argentina Belarus The service Kazakhstan block of the group represents a legally independent holding "." In 2022, Locomotive technology the holding liquidated its "daughter" TMH Diesel Engie B.V.

Transmashholding intends to invest at least 3 billion rubles until 2024 in the creation of a production site for the production of modern electric transport in Kolpino. Rolling stock will be produced there not only for St. Petersburg, but also for the whole of Russia.^[2]

Digitalization

2019: Digital Transformation Director Vyacheslav Alenkov leaves the company

In March 2019, Vyacheslav Alenkov, who served as director of the Transmashholding Department of Systems Engineering and Digital Transformation, was appointed Acting Deputy Prime Minister of the Sakhalin Region, the regional government portal said. Read more here.

2018: SAP Innovation Lab

On May 24, 2018, SAP, 2050 and Transmashholding announced at SPIEF that they plan to open an innovation laboratory. The memorandum was signed by SAP CISNatalia Parmenova, Transmashholding CEO Kirill Lipa and 2050 President Alexei Belinsky.

The main goals of the laboratory are to create, develop and implement IT solutions based on SAP technologies in terms of modernizing production, developing financial services and services, increasing labor productivity and entering new markets. The development platforms will be SAP Cloud Platform and SAP HANA.

Other areas for joint innovation include digital locomotive lifecycle management based on a digital twin, the Internet of Things for industry and transport.

2016-2017

Centralized payment management systems, byudzheta­mi, supply, sales, consolidation, corporate directories (nomenclature, cost items, DDS items, etc.) are deployed at the management company level. Each company has implemented a local version of the unified corporate information system that complies with the accounting policy of the holding. All in­formatsionnyye systems (both centralized and local) operate according to the same standards and are integrated with each other into a single information network by corporate data channels^[3]

Reduce costs

2017 was declared a cost year in the holding, and it is quite natural that cost reduction work is an absolute priorite­tom in choosing the directions of development of information business systems. It is planned to reduce costs in two large areas - reducing the actual cost of production and reducing operating costs. The cost reduction is supposed to be carried out at all stages of the product life cycle: from design development to service support.

At the initiative of the Directorate for Economics and Finance, DIT employees developed a draft conceptual schedule of measures to reduce costs at the holding's enterprises using IT systems. It is a comprehensive document that combines the areas of cost reduction, organizational tools and measures that determine the responsible and IT systems necessary for the effective operation of the organizational tools and methods being implemented.

On the IT side, three systems are key support systems for cost reduction:

• Integrated Material and Production Planning System (EPSM).
• Design and Process System for Production Preparation ­.
• Business Intelligence (BI) -based enterprise analytics system.

KSMPP is one of the modules of the unifitsirovan­noy corporate information system that provides an end-to-end process for planning and monitoring enterprise resources from the production program and operational production management to demand planning and control of the supply of inventory. This module provides MRP ERP Enterprise Resource Planning (Enterprise Resource Planning) functionality in enterprise information systems that complies with the globally recognized Enterprise Resource Planning Standard II.

The result of the implementation is optimal procurement planning and reduction of free, not involved in the production of inventories, release of working capital. Since the share of material costs at Transmashholding enterprises reaches 80%, the economic effect can be very significant. For example, at DMZ and MVM, the total effect of implementation in the initial stages amounted to 400 million rubles (due to a reduction in reserves in work in progress and optimization of the regulatory framework).

The main necessary element of the successful implementation of the material and production planning system is high-quality production regulatory information (NSI), namely information on the material structure of the product and labor standards. At the same time, the requirements for the quality of NSI during the implementation of MMCP are significantly increased. This is due to the fact that KSMPP is a rigid system, and if some specific material is included in the design documentation, it means that this material should be purchased. Not some similar one, but one that is defined by design and technological norms or is clearly acceptable for use through a replacement map.

The most reliable source of regulatory reference information at the enterprise should be the KTP system - design and technological preparation of production of the PDM (Product Data Management) type. And that is why it is the second most important element in the successful implementation of the cost reduction project.

PDM systems have long been used in the design and technological divisions of TMX Group of Companies, however, the information on the composition of the product located in them is mainly used by the designers and technologists themselves and is not yet used enough to solve the problems of operational material planning. As a result, the nomenclature directories of PDM systems and accounting systems are not connected, the relevance of information in PDM systems is insufficient for planning purposes.

Most of these issues are supposed to be solved in 2017 as part ­ the comprehensive ERP&PDM project, in which work on updating PDM system data is carried out in parallel with the implementation of ERP systems in such a way that updated information on the material structure of the PDM product is immediately used to solve planning problems in ERP. This pozvo­lit to combine PDM and ERP systems into a single loop and automatically provide high quality regulatory information.

For the automated exchange of information about the material structure of products between information systems, a corporate standard for the exchange of engineering data will be used, which will be "understandable" to all Transmashholding information systems. Such a standard will allow you to transfer data from one information system to another, from one enterprise to another, collect in the management company or transfer to organizations engaged in repair and maintenance of rolling stock. Now the pilot version of such a standard is already working at the Tver Carriage Building Plant.

Business analytics

Current and reliable information about the material structure of the product is not only data for material and production planning, but also the basis for cost control and cost reduction at all stages of the product life cycle from design and production to service. The economic potential for reducing material costs cannot be overestimated. Iskho­ya of the output indicators laid down in the Transmashholding development strategy calculated until 2020, a reduction in material cost by one percent gives a billion rubles of direct effect per year.

At the stage of design development, it is important to be able to correctly calculate and evaluate the sebestoi­most of the product being developed so that it is possible to make adjustments to the design and reach the specified target cost, and at the stage of experimental and serial production, it is important to be able to practically realize everything laid down during design development and keep the target ­ cost during the production process.

The design stage is key for managing the cost of products; according to Western companies, up to 80% of the cost optimization opportunities are present at this stage of the life cycle. To manage the cost at the development stage, the methodologies Design to cost, FSA (functional-cost analysis), etc. are used. The implementation of these methodologies requires serious support from IT.

The next stage of cost reduction is production cost management. This task is divided into several key areas: cost control, selection of optimal suppliers, monitoring of purchase prices. The most effective solution of these tasks is possible only when analyzing at the level of individual cost elements, for the material part of costs - at the level of individual item items. The situation is complicated by the fact that there are a lot of nomenclature positions in the structure of material cost, tens of thousands of elements, and it is almost impossible to analyze them manually, without the use of special technical means. To accomplish this, you plan to use BI (Business Intelligence) class systems.

Business Intelligence (business intelligence, business analysis) is a special software created for consolidation, analysis and visualization of information. BI technologies allow you to analyze large amounts of information, focusing on users only on key performance factors, modeling the outcome of various options for action, tracking the results of decision-making. Business Intelligence is relevant to the process of turning data into knowledge and knowledge into business actions for benefit.

This direction in Transmashholding is just beginning to develop, but it is with the help of BI systems that it is supposed to visualize, make "tangible," give the business "feel" the effect of introducing complex systems for managing material resources and finances at enterprises. And the first step on this path is to so­zdaniye the corporate BI-system of element-by-element cost analysis.

Using large amounts of data, specialists from specialized departments can easily identify factors that affect the reduction or increase in the cost of products, compare one reporting period with another, and analyze data for an individual enterprise or the entire group of companies as a whole. Within the framework of the current stage of development of BI-systems, a small pilot project has already been implemented to analyze the cost of single-storey and double-storey cars of the Tver Machine-Building Plant, within the framework of which a parallel analysis of the cost of their production was carried out "manually" and in the BI-system. The results coincided with an accuracy of one percent, while the "manual" analysis took about two weeks, and in the pilot BI system, after loading data into it and implementing the necessary algorithms, everything was calculated in a few seconds.

The priority step is to expand the BI system to the target and actual cost of production of the largest enterprises of TMX Group and to include element-by-element cost analysis procedures in the budget process.

In general, with the help of BI systems, we plan to gradually change the corporate approaches to information processing, create corporate data marts and significantly reduce the volume of manually developed Excel reporting. All this should help departments move from collecting and composing reports to analyzing data.

History

2024

Transfer of shares to Russian jurisdiction

In August 2024, it became known that one of the largest producers of railway transport in Russia and the CIS - Transmashholding - completed the process of transferring shares to Russian jurisdiction. As a result of this step, foreign legal entities no longer have participation in the company's shareholder structure, which confirms the transfer of ownership of shares exclusively under the control of Russian persons.

According to TASS, in July 2024, transactions with shares were carried out, which completed the process of Russification of the ownership structure. The company noted that now the shareholders are exclusively persons of Russian jurisdiction, which allows Transmashholding to strengthen its position against the background of a change in the international economic situation and the requirements of Russian legislation.

source = Transmashholding

Earlier, Transmashholding CEO Kirill Lipa confirmed plans to re-register the company from Cyprus to Russia. This measure was due to the inclusion of Cyprus in the list of unfriendly countries and the recognition of its tax offshore zone, which had a stimulating effect on the decision to redomicile. According to Kirill Lipa, this decision corresponds to the strategic interests of the company and its partners.

According to the agency, Transmashholding by August 2024 is the leader in the rail and urban rail transport market in Russia and the CIS countries. The holding's structure includes 16 production and assembly sites both in Russia and abroad, and the geography of work covers more than 30 countries. Transmashholding offers a wide range of services ranging from design and engineering, to modernization, service contracts and digital traffic control systems.^[4]

Sale of the Transmash plant to the Tractor Plants concern

JSC Transmashholding"" (TMH) completed the sale of the Transmash plant, located in the city of Engels, Saratov region to the concern Tractor plants"." This became known on July 12, 2024. The move is part of the company's asset restructuring strategy aimed at optimising its production portfolio. More. here

Bryansk plant "Transmashholding" entered the perimeter of the concern "Tractor Plants"

Bryansk plant "Transmashholding" (TMH) - JSC "Production Association" Bezhitskaya Steel "- officially became part of the concern" Tractor Plants "(KTZ). According to the Unified State Register of Legal Entities, the changes entered into force on June 13, 2024, when Aktiv LLC became the sole shareholder of Bezhitskaya Steel. Read more here.

Buying an office building in the center of Moscow for billions of rubles

On June 13, 2024, it became known about Transmashholding's decision to buy an office building on Smolensk Boulevard in the center of Moscow. The transaction value is measured in billions of rubles.

According to Kommersant, the object with an area of ​ ​ 20 thousand square meters. m will replace the current headquarters of the holding, located in the Skolkovo innovation center. By mid-June 2024, the head office of the company is located on Efremov Street, where 11.3 thousand square meters. m. The consolidation of several divisions in one area looks logical, given the convenience of location for employees, the publication says.

source = TMX

According to the director of the office real estateILM department Ksenia Kharkevich, the declared cost of the building on Smolensk Boulevard is 8.9 billion rubles. CMWP partner Natalya Nikitina estimates the asset at 7.14 billion rubles without. VAT

According to Andrei Kukhar, sales director of the Nikoliers office real estate department, this is one of the last large business centers in the center of Moscow, built recently and free to buy. Given the current market conditions, investments in the purchase of office real estate look justified, since the cost of objects in the city center will only grow.

The sale of TMX headquarters in Skolkovo is logical, believes Dmitry Antonov, director of the sales and acquisitions department at Ricci|Offices. According to him, the location in the city center for TMH employees, like any other corporation, is preferable than in an area remote from the center. In addition, after the Russian government transfers the management of the innovation center of the Moscow mayor's office, Skolkovo may lose its status, and at the same time the privileges of the innovation center, he does not exclude.^[5]

Sale of LCC interest to Wabtec

On February 14, 2024, the American company Wabtec announced a transaction to acquire a 50% stake in the locomotive assembly plant of Lokomotiv Kurastyru Zauyty JSC (LKZ) in Kazakhstan. The transaction amount amounted to $81 million. Read more here.

2023

Buyout of 20% stake from Alstom

In mid-November 2023, it became known that Transmashholding (TMH) was buying back 20% of its own shares from the French concern Alstom. After that, Alstom will completely withdraw from the TMH shareholders.

The deal was announced by TMH CEO Kirill Lipa. According to him, the transaction will be carried out by December 31, 2023. As of November 2023, 100% of Transmashholding JSC belongs to the Cypriot organization Transmashholding Ltd. The company does not publish the structure of shareholders. But it is known that 80% of the shares of Transmashholding Ltd. belong to Russian shareholders, including Lipa himself. The share of the French holding, according to the general director of TMH, is bought by the current Russian owners of the company.

Transmashholding (TMH) buys 20% of its own shares from the French concern Alstom

On September 14, 2023, TMH was included in the US sanctions list, in connection with which the French concern decided to withdraw from the company's capital. At the same time, back in March 2022, Alstom announced the suspension of all supplies and future investments in Russia due to the current geopolitical situation. Lipa also commented on plans to re-register the enterprise from Cyprus to Russia.

Until we close the deal with Alstom, there can be no re-registration, - said the head of the company.

According to TMH itself, by November 2023, the total staff of the organization exceeds 85 thousand people. The company supplies passenger trains and cars, metro trains, locomotives, engines and components to railway operators and manufacturers in 30 countries. TMH is headquartered in Moscow, and international units are located in Egypt, Belarus and Kazakhstan. The company develops solutions based on artificial intelligence, Industry 4.0 technologies, alternative energy sources, composite materials and other promising areas.^[6]

Change of registration from Cyprus to the Russian Federation

The largest Russian manufacturer of passenger cars Transmashholding will change registration from Cyprus to the Russian Federation. This was announced on October 9, 2023 by the general director of the company Kirill Lipa.

Kirill Lipa spoke about the final decision to re-register the parent company TMH from Cyprus back in August 2023. Then the company began to study the list of countries for possible redomication. Answering the question of Interfax on October 9, 2023, whether the company had decided on a new state for registration, Lipa said: "To Russia."

Transmashholding will change registration

Speaking about the timing of re-registration, Kirill Lipa noted that this is likely to happen before the end of 2023. At the same time, he did not specify which of the two special administrative regions (SAR) is in question. Russia By October 2023, there are two SARs, the so-called internal offshore: on the Russky and Oktyabrsky Islands Seaside Kaliningrad region in and, respectively.

The first, obviously, Cyprus is on the list today: a. unfriendly, b. tax black offshore zone on the part of the Russian Federation. Therefore, we are already legally stimulated to make such decisions... Therefore, the decision about the country of a specific location into which the redomication will be made will stem from the legislation of the Russian Federation, from the fact that we are Russians, and we are not going to change our status, and based on the fact that we have a European partner, - said Kirill Lipa.

By October 2023, TMH is the leader among manufacturers of railway and urban rail transport in Russia and the CIS. The company offers a full range of products and services ranging from design and engineering to upgrades, life cycle service contracts and digital traffic control systems.

The holding's structure includes 16 production and assembly sites in Russia and other countries of the world, and the geography of work covers more than 30 states.^[7]

Winning competition in India to produce 120 electric trains for $1.7 billion

The Russian-Indian consortium Transmashholding won a tender for the production and supply of 120 passenger electric trains (1920 cars) in India. The transaction amount is $1.7 billion, and this is the largest foreign order in Russian railway engineering. More than him is only a contract with the Russian "Federal Passenger Company."

Under the terms of the tender, production is to be set up in India at Indian Railways' plants in Latura and Chennai, the winner will upgrade their production facilities and depots and receive a rolling stock maintenance contract for 35 years.

The Russian-Indian consortium was able to bypass competitors from India, Germany, France and Switzerland due to the fact that it offered the lowest price - 1.2 billion rupees ($14.5 million) per train. France's Alstom wanted 1.6 billion rupees and Swiss-Indian consortium Stadler-Medha wanted 1.7 billion rupees. Indians from Bharat Heavy Electricals (BHEL) and Titagarh Wagons listed the second lowest base price of Rs 1.4 billion and German-Indian Siemens-Bharat Earth Movers (BEML) requested Rs 1.45 billion for each train.

2022: Sale of business in Hungary to a local partner against the background of Russia's special operation in Ukraine

In June 2022, Transmashholding sold its business in Hungary to local partner Magyar Vagon Zrt. It was necessary to get rid of the Hungarian unit due to difficulties with mutual settlements against the background of the special operation of Russia in Ukraine and the sanctions of the United States and their satellite countries. The companies worked through a Russian bank.

2021

Norwegian authorities ban on Bergen Engines from Rolls-Royce

Authorities Norway banned Transmashholding (TMH International) from buying from an Rolls-Royce engine plant. Bergen Engines This was announced on March 23, 2021 by the Minister of Justice of Norway Monica Malann. More. here

Bergen Engines Engine Plant Purchase

On February 4, 2021, the largest manufacturer of railway equipment in Russia announced the purchase of an engine plant in Norway from Rolls-Royce. We are talking about the Bergen Engines enterprise, which manufactures diesel and gas piston medium-speed engines. Rolls-Royce said the net proceeds of the deal would be €150m. Read more here.

2018: Creation of a blockchain system for analyzing data on the state of locomotive fleets

On October 4, 2018, it became known that Transmashholding decided to cooperate with Vostok, the purpose of which is to ensure verification and distributed storage of the system for collecting and analyzing data on the state of the locomotive fleet. Read more here.

2015: Russian Railways sells 25% of Transmashholding shares

The Board of Directors of Russian Railways decided to sell a 25% stake in Transmashholding. This is reported by TASS with reference to the head of the company Vladimir Yakunin. The estimated cost of the package is 13 billion rubles.

Earlier it was reported that the Transmashholding group, which owns 10 car factories, plans to cut 18% of employees (about 9 thousand people). All Transmashholding enterprises have now either been stopped or are partially idle.

Notes