United Aircraft Corporation UAC

PJSC United Aircraft Corporation is a Russian public joint stock company uniting the largest aircraft manufacturers in Russia.

Aktivs

The corporation includes the following enterprises (according to information posted on the official website of the UAC for January 2024):

• Aviastar
• JSC "Tupolev"
• Aero composite
• VASO
• IAZ
• KAZ named after S.P. Gorbunova
• KAPO Composite
• KnAAZ named after Yu.A. Gagarin
• P.A. Voronin LAZ
• LII named after M.M. Gromova
• NAZ "Sokol"
• NAZ named after V.P. Chkalova
• KLA - Resource
• QAD - Procurement
• UAC Engineering
• PJSC "Il"
• PJSC Yakovlev
• Regional aircraft
• TANTK named after G.M. Berieva
• Branch of AeroComposite JSC in Ulyanovsk
• Branch of PJSC "Il" in Zhukovsky
• Complex Center
• EMZ named after V.M. Myasishcheva

Performance indicators

2022: Reduction of losses by 9 times to 468 billion rubles

Losses of the United Aircraft Corporation (UAC) in 2021 reached 468 billion rubles, which is 8% more than a year earlier. Sales were a record in the history of the company. However, UAC remains a unprofitable producer: in 2021, net losses amounted to 19 billion rubles (including asset impairment), which is 9 times less than in 2020. Such data in accordance with international financial reporting standards were published in April 2022.

According to Aleksey Demidov, Deputy General Director of the UAC for Economics and Finance, who are quoted in the corporation's message, in 2021 the UAC achieved record revenue and demonstrated positive dynamics of other indicators.

Losses of the United Aircraft Corporation for the year decreased by 9 times

Шаблон:Quote 'This was facilitated by the work on financial recovery and timely support measures provided, including in terms of stimulating sales of Russian-made civilian aircraft, - said Demidov. According to the press service of the corporation, in 2021 the UAC was able to achieve a profit from operating activities of 1.1 billion rubles (in 2020 this figure amounted to minus 112 billion rubles). It also follows from the reporting corporation that the revenue of the civil segment in 2021 increased by 73% and reached 140 billion rubles.

By April 2022, the UAC unites large aircraft manufacturers in Russia. Among them are Sukhoi, Tupolev and Irkut. In March 2022, the Government of the Russian Federation issued a decree on the allocation of subsidies for the restoration of airworthiness of the Il-96, Tu-204 and An-124 aircraft belonging to the UAC. Part of the money will be spent on research and development work to improve Tu-214 systems and units, the decree says.^[1]

Information Technology in the UAC

2024: Creation of an ERP system for the aircraft industry for 400 million rubles

The United Aircraft Corporation (UAC) creates an ERP system for the aircraft industry for 400 million rubles. The press service of the Skolkovo Foundation (provided the company with the corresponding grant for the implementation of the project) announced this on January 15, 2024.

According to Alexander Lebedev, Director for Digital Transformation and Information Technologies of PJSC UAC, the ERP solution is being developed jointly with 1C. Lebedev added that the new product should fully take into account the requirements of the industry to manage the production program of the corporation and the processes of manufacturing products at individual enterprises, solve the problems of supply, internal inter-plant cooperation, management of available resources and product quality assurance in a single information loop.

United Aircraft Corporation (UAC) creates an ERP system for aircraft production for 400 million rubles

As explained by Ekaterina Stolbova, director of the Skolkovo digital economy project office, the UAC project is aimed at creating an import-independent ERP platform that will solve the problems of production management and product quality control for the aircraft industry.

At the same time, by mid-January 2024, any details of the project were not disclosed. In particular, the name of the future ERP system for the aircraft industry is unknown.

Anton Malkov, Chairman of the Board of Directors of Galactica Corporation, in a conversation with Vedomosti, noted that the average period for introducing a heavy-class ERP system is from three to five years. If we imagine that all customers will begin to implement them tomorrow, it will be possible to talk about the complete import substitution of foreign solutions already in 2029, he noted.

According to the executive director of the APKITNikolai Komlev association, the complete replacement of enterprise resource management systems is not very useful. It is important to ensure independence in the field of software development and its application at critical facilities, he said.

2022: "Spy" cyber attack using RAT Trojan WoodyRat

Antivirus vendor MalwareBytes on August 3, 2022 announced a series of cyber attacks aimed at Russian organizations. In particular, attackers attacked the United Aircraft Corporation (UAC) using the WoodyRat RAT Trojan. Read more here.

2019

"The key factor in competitiveness is time. Time to create and market new products. The only way to radically reduce the time is to use information technology. Therefore, we strive to digitalize all business processes. Digital design, virtual testing, the formation of a production environment around the "digital twin" of the product is an urgent need for us and a key factor in increasing competitiveness. Moreover, the peculiarity of the digital approach is that each "digitized" element of the system forces others to also transform, otherwise it itself will not be effective, "the UAC President said in June 2019 at the XXIII St. Petersburg International Economic Forum, speaking about the future of aircraft industry.

UAC introduces digital technologies at all stages of the life cycle of the aircraft. All the latest models of aviation equipment, aircraft MS-21, SSJ-100, IL-114-300, CR929, are designed using paperless technologies based on 3D modeling, digital product doubles are created, which allows you to analyze and predict many aspects of aircraft behavior using modern software.

In the interests of the reproduction program of the modernized Tu-160 aircraft, a single information environment has been created, within the framework of which, with the help of modern software systems, more than 1800 designers and technologists in different cities are combined and work in on-line mode, creating a new aircraft. Computing power allows you to store and process terabytes of data and transmit information over secure communication channels.

Supercomputer modeling technologies are being introduced, which significantly reduce the conduct of field tests and semi-natural modeling with pilot testing. This optimizes costs and shortens the time to bring new aircraft to market. For example, the introduction of such technologies in the interests of the IL-114-300 program will lead to a 15% reduction in the number of test flights.

At the production sites where SSJ-100 aircraft are assembled, MS-21, Il-76MD-90A, robotic lines are used, which reduce the production cycle time and ensure the positioning of individual elements when docking the airframe structure with maximum accuracy. Moreover, at the production of a heavy transport aircraft of the Il-76 type, a domestic robotic line of slipless assembly was first created, which allows you to increase the speed of assembly of aircraft by 4 times. A significant part of the processes in the production of a composite wing for MS-21, for example, carbon tape laying, are fully automated.

In the future, the UAC plans to create a service for the operators of its equipment, which will accumulate all data on the technical condition of the aircraft, which will predict and shorten the maintenance period, and, ultimately, optimize the direct operating costs of airlines to own the aircraft.

History

2024: Plan for more than 600 aircraft by 2030

More than 600 aircraft will create UAC for the fleet of the Russian Federation by 2030. Such information in its official Telegram channel was shared by Rostec on January 26, 2024.

The line of civilian vehicles of the United Aircraft Corporation, which is part of Rostec, includes models of all classes in demand in the country - from long-haul Il-96-300 to regional Il-114-300. MS-21-310 will have to become a medium-haul workhorse.

source = Official Telegram channel of Rostec

As of January 2024, 18 such aircraft are in different stages of readiness. And Superjets are already actively used by Russian carriers. The first recipient of new import-substituted SJ-100 will be Aeroflot.

2023

Change of strategy and focus on production of 5 civilian aircraft

The United Aircraft Corporation (UAC) has changed its strategy and will now focus on producing 5 civilian aircraft. The company's new plans became known in mid-August 2023. We are talking about the following aircraft models:

• short-haul SJ-100 ("Superjet-100");
• medium-haul MS-21-310;
• regional Il-114-300;
• medium-haul Tu-214;
• long-haul Il-96-400M.

United Aircraft Corporation (UAC) will focus on the production of 5 civilian aircraft

The first flight of the updated Sukhoi Superjet 100 (SSJ 100) narrow-body passenger aircraft will take place in September 2023, UAC General Director Yuri Slyusar said. According to him, by mid-August 2023, all systems for the board are already being developed. However, at the time of the first departure, it will not yet be fully equipped with Russian components, he added.

According to Kommersant on August 15, 2023, in the next 8 years, in accordance with the comprehensive program for the development of the air transport industry approved by the government, the UAC plans to supply more than half a thousand cars from this line to Russian airlines.

Before the introduction of Western sanctions, it was supposed to focus on new, world-competitive programs such as SSJ-100 and MS-21, as well as on the revival of the IL-114-300 project at the modern level. However, the changed political and economic realities have to take into account new factors, including the urgency of updating the park, the limited production capacity of enterprises, as well as the technical risks inevitable in the new programs. For this reason, deliveries of Tu-214 aircraft to commercial airlines are provided. Also in the UAC line there was a wide-body long-range Il-96-400M - an enlarged and modernized version of the Il-96-300, produced in the last decade on a limited scale and only for state customers.^[2]

Agreement on the construction of a plant for the production of components for the Russian aircraft MS-21

A plant for the production of components for the Russian MS-21 aircraft will be built in Moscow. The corresponding agreement was concluded on July 10, 2023 by the capital's mayor Sergei Sobyanin, the head of the Ministry of Industry and Trade Denis Manturov and the general director of the United Aircraft Corporation PJSC Yuri Slyusar.

As reported on the website of the mayor of Moscow, in accordance with the document, a factory for the production of parts for a new generation of medium-haul aircraft will appear on the territory of the Rudnevo industrial park. MS-21 The timing of the project and investments in the construction of the plant are not specified in the message of the mayor's office. What exactly components for MS-21 will be produced at the site at Rudnevo is also not said. Earlier it was reported that Moscow could establish the production of components for the wing of the aircraft.

In Moscow, began to build a plant for the production of components for the Russian aircraft MS-21

By July 2023, Rudnevo has 18 production buildings, which house the production of the Federal Center for Unmanned Aircraft Systems, Aircraft, Radio Electronics and other industries. In 2023, the park was included in the SEZ Technopolice Moscow, whose residents are exempted from paying land, property and transport taxes, the profit rate for them has been reduced to 2%.

As it became known to Kommersant at the end of June 2023, the State Transport Leasing Company (GTLK) offered several airlines to lease the plane MS-21 based on its price of 4.3-4.6 billion rubles ($50-54 million), depending on the year of delivery. It was about deliveries in 2028-2030, the price took into account the receipt of subsidies from the NWF for the purchase of aircraft, but their size was not indicated.

The representative of Rostec said that "the cost of new MS-21 for Russian carriers will definitely be lower than the market."^[3]

2021: Association with MiG and Sukhoi

On December 2, 2021, it was announced the integration of the United Aircraft Corporation (UAC) and the two largest domestic creators of combat aviation - Company JSC and Sukhoy Joint Stock Company Russian Aircraft Corporation "MiG" (RSK MiG JSC). More. here

2020

The state will pay off the debts of the UAC for 250 billion rubles

In September 2020, it became known that the state would cover the debts of the United Aircraft Corporation (UAC) of the superjet manufacturer Sukhoi Superjet 100, the corporation's debts reached 530 billion rubles, said Anatoly Serdyukov, head of the Rostec aviation cluster.

Of the 530 billion rubles of debt, the state will pay off only 250 billion rubles. Debts for another 150 billion rubles will be restructured. To reduce the financial burden, the UAC will reduce 8-10% of employees. The ex-Minister of Defense promised that the layoffs would mainly affect "administrative and managerial personnel."

The main part of the debts of the UAC are "old debts," Serdyukov emphasized. He explained that the corporation "performed state tasks and was forced to lend to solve these problems on very unfavorable conditions."

UAC became part of Rostec

UAC entered Rostec in March 2020. She owns the Sukhoi Civil Aircraft company, which developed Russian superjets, as well as Irkut, Yakovlev Design Bureau, Sukhoi Design Bureau, MiG Design Bureau and other design bureaus.

2019: Military aircraft sales decline 23% to $4.19 billion

Sales of military aircraft of the United Aircraft Corporation in 2019 collapsed by $1.3 billion, or 23%. As a result, USC, which in 2018 ranked 17th in the list of the world's largest arms suppliers, flew out of the top 25, earning $4.19 billion for the year. Compared to 2017, the decline in sales reached 35%.

2018

Transfer of 92.3% of Rostec shares by the Government of the Russian Federation

On November 20, 2018, the Government of the Russian Federation ordered the transfer of 92.31% of the federally owned shares of the United Aircraft Corporation (OAK) to Rostec state corporation. The decree on the transfer of shares was signed on October 24, 2018 by Russian President Vladimir Putin. 18 months are given for execution. Read more here.

Election of the Board of Directors

At the next general meeting of shareholders of PJSC United Aircraft Corporation (PJSC UAC), held on June 29, 2018, the following composition of the Company's Board of Directors was elected:

Aleshin Boris Sergeevich; Yury Ivanovich Borisov; Ivanov Andrey Yuryevich; Manturov Denis Valentinovich; Vladimir Mikhailovich Potapov; Rassigin Mikhail Alekseevich; Anatoly Eduardovich Serdyukov; Slyusar Yuri Borisovich; Ivan Nikolaevich Kharchenko; Yurchenko Evgeny Valerievich; Yurchik Alexander Alekseevich.

The new members of the council were Deputy Minister of Economic Development of the Russian Federation Mikhail Rasstrigin and Deputy Minister of Transport Alexander Yurchik. At the time of appointment to the board of directors of the UAC, Yevgeny Yelin and Valery Okulov, who held the same positions in the government, respectively, dropped out of the board.

The shareholders of the UAC approved the annual report, the annual accounting (financial) statements of the Company and the distribution of profits based on the results of 2017. Shareholders voted not to pay dividends on 2017 results. According to the voting results, remuneration payments to members of the Board of Directors and members of the Audit Commission will not be made. In addition, an audit commission was elected at the general meeting of shareholders and the Company's auditor was approved.

2017

10% increase in net income

According to the results of 2017, the United Aircraft Corporation (UAC) received a net profit according to Russian accounting standards (RAS), as in 2016, said Alexey Demidov, vice president of the corporation for economics and finance, in March 2018. The size of the UAC Group's net profit for 2017 amounted to 1.1 billion rubles, which is 10% higher than the result of 2016. Revenue reached 428.8 billion rubles, exceeding the 2016 figure by 9%. A. Demidov stressed that the results according to international financial reporting standards (IFRS) will differ from the results under RAS. This is due to differences in the approaches to revenue estimation, the reflection of R&D costs and the creation of reserves.

Priorities for the year

The Board of Directors of the United Aircraft Corporation (PJSC UAC) approved in March the priority areas of the corporation's activities for 2017, which are in line with the implementation of the adopted UAC Strategy. The list of projects is grouped into four main sections.

• The section "Strategic Transformation" includes, in particular, projects for optimizing the organizational model and the phased transformation of the corporate structure, product portfolio, improving sales, quality and profitability of after-sales services (ASW).
• The section "Resource Support for Strategic Transformations" includes the formation of the principles of a single treasury, provides for the improvement of pricing and cost management in accordance with the target management structure and taking into account changes in the pricing mechanism of the state defense order (GOZ), the improvement of the UAC investment management system, the formation of the UAC Group policy in matters of state financing, the policy of insurance protection of the UAC Group, a number of other projects.
• The section "Strategic Management," in particular, involves the implementation of a number of projects in the field of strategic marketing.
• The Aviation Program Management section focuses on the tasks of implementing key programs of the UAC Group, for example, PAK FA, Tu-160, SSJ100, MS-21, Il-114, Il-112 and others.

To strengthen the control over the implementation of the BARS, the BARS department was created in the UAC. In addition, in order to improve the efficiency and transparency of the activities of the UAC, as well as strengthen the function of internal audit, by the decision of the Board of Directors, the position of Director for Internal Audit was introduced.

UAC changed its mind about moving to its new office in the Moscow region

The United Aircraft Corporation refused to transfer its head office to a new building in Zhukovsky near Moscow. Several real estate consultants told RBC about this at once and confirmed in the corporation itself. According to the sources of the publication, one of the main reasons was the reluctance of most employees to go to work in the Moscow region.

The UAC has been building a building in Zhukovsky at its own expense since 2012. Now the object is almost finished, finishing work is underway there. The area of ​ ​ the office center is 39.9 square meters. m, 1.6 thousand people were supposed to work there. The construction cost the corporation at least 1.6 billion rubles, said Alexey Bogdanov, managing partner of S.A. Ricci.

The refusal to move may be associated with a change in the leadership of the UAC after the start of the project. At the beginning of 2015, he left the post of head of the corporation. Mikhail Poghosyan He was replaced by the deputy head. Ministry of Industry and Trade Yuri Slyusar

The building is looking for another application, but no specific decisions have been made, the representative of the UAC explained. Perhaps engineering units will be located here. We can talk about specialists of the joint venture of the UAC and the Chinese COMAC for the design of a wide-body aircraft.

2016: Revenue growth of more than 20%

The Group's revenue for the year amounted to 395 billion rubles. At the same time, the Corporation first made a profit in 2016 in the amount of 1 billion rubles. The consolidated revenue of the UAC Group according to IFRS standards in 2016 amounted to 417 billion rubles. Revenue growth of more than 20% compared to the previous year was primarily due to a 60% increase in the volume of after-sales support and modernization of aviation equipment, including the supply of components (93 billion rubles). The increase in revenue from the supply of aircraft amounted to 6% (219 billion rubles). This is due to differences in the approaches to revenue valuation and provision creation. EBITDA, which characterizes operating profit, exceeded the mark of 30 billion rubles.

Due to differences in the revenue recognition methodology (according to IFRS principles, revenue from a number of contracts is recognized in proportion to the degree of aircraft completion) and due to the accumulated production reserve in accordance with the planned growth in aircraft deliveries in 2017, IFRS revenue exceeds the same RAS indicator by more than 20 billion rubles.

In the reporting year, UAC Group's export revenue more than doubled to RUB 203 billion. The revenue of the civil segment in the reporting year exceeded 69 billion rubles. Increasing both indicators is an important part of the implementation of the KLA strategy.

Over the past two years, revenue has grown by almost 40%. With a decrease in revenue from deliveries to the domestic market and through the state defense order, the main growth factor was export supplies and work on after-sales support and modernization of aviation equipment, including the supply of components. Revenue from the supply of aircraft for export in dollar terms for the period 2015-2016. more than doubled.

This result was achieved through the sale of aircraft of the Su-35, Su-30 types and deliveries of SSJ100 to foreign customers, including the first deliveries to the European market.

The level of debt (by the ratio of net debt to revenue) decreased from 0.8 in 2014 to 0.5 in 2016.

UAC expects further sustained revenue growth while maintaining a positive financial result for the Group as a whole. The Corporation expects to receive an increase in profit by increasing export supplies of aviation equipment and reducing costs, including as part of the implementation of measures to optimize the industrial model and organizational structure.

The implementation of the development plan of the Corporation will be ensured by the investment budget of the UAC Group, which for the period 2017-2019. will amount to 400 billion rubles. The main investments of the Corporation will be directed to the implementation of civil aviation programs, as well as the development and modernization of a model range of military equipment. In the civilian segment, this is primarily the MS-21 program, which is in the peak stage of investment, in development work and the preparation of serial production, as well as the SSJ100 program in terms of organizing service, sales support, reducing production costs and aircraft ownership costs.

2015

Assets and Priorities

As of December 2015, the UAC included about 30 aviation industry enterprises, including:

• Sukhoi Aviation Holding Company,
• Irkut Corporation,
• "Komsomolskoye-on-Amur Aviation Production Association named after Yu.A. Gagarin,"
• "AK named after S.V. Ilyushin,"
• Nizhny Novgorod Aircraft Manufacturing Plant "Sokol,"
• "Novosibirsk Aviation Production Association named after V.P. Chkalov,"
• "Tupolev,"
• Ilyushin Finance,
• Financial Leasing Company

and other companies.

and was one of the largest players in the global aircraft market. Companies included in the Corporation's structure have the rights to such world-famous brands as Su, MiG, Il, Tu, Yak, Beriev, as well as new ones - SSJ, MS-21.

Priority areas of the Corporation's activities are development, production, testing and maintenance of operation, warranty and service maintenance of civil and military aircraft.

In the field of work of UAC companies - modernization, repair and disposal of aircraft, training and advanced training of flight personnel.

In 2015, the largest share in the production structure is occupied by military products, both for the Ministry of Defense of the Russian Federation and for foreign customers. At the same time, since 2013, the bulk of the supply of military equipment has been in the domestic market.

Revenue growth of 19%

In the reporting year, the volume of aircraft sales remained at the level of the previous year - 156 units in 2015 compared to 159 units in 2014. The main share in consolidated supplies is provided by the military aviation segment: as a year earlier, customers received 124 combat aircraft. In 2015 Ministry of Defence Russia , 90 aircraft of the Su-30, Su-34, Su-35, MiG-29 and Yak-130 types were delivered in the interests. As part of export contracts for military equipment in 2015, a total of 34 aircraft of the Su-30, MiG-29 and Yak-130 types were delivered to a number of foreign customers.

Positive dynamics appeared in the segment of transport aviation: at the Ulyanovsk plant "Aviastar-SP" mass production of IL-76MD-90A aircraft was established and in 2015 customers received the first two aircraft.

In the civil aviation segment, the Sukhoi Superjet 100 (SSJ 100) accounted for the largest share of deliveries - 25 aircraft. Of these, 20 are new aircraft for Aeroflot, Interjet, Gazprom Avia and a number of other customers. In addition, 5 SSJ 100 aircraft were transferred to the State Transport Leasing Company as part of the remarketing procedures for their subsequent delivery to Russian regional carriers on operating lease terms.

The revenue of the UAC Group of Companies at the end of the year increased by 19% and reached 352 billion rubles. - this is the largest indicator in the entire history of the UAC. Revenue growth in the reporting year is primarily due to the growth of revenue from:

• fulfillment of contracts for the construction of ─ aircraft for 50 billion rubles;
• modernization and overhaul of equipment ─ by 10 billion rubles.

In the reporting year, the UAC Group of Companies managed to obtain gross profit in the amount of 45 billion rubles, while the gross profitability indicator at the level of 13% was due to a high share of revenue under the state defense order (these contracts have restrictions on margin income established by regulatory legal acts).

At the same time, during the preparation of the consolidated financial statements, it was decided to conduct one-time operations that resulted in a change in operating results, including:

• impairment of non-current assets ─ by RUB 30 billion;
• write-off and impairment of current assets ─ by RUB 17 billion;
• creation of ─ reserves for 12 billion rubles.

Impairment and write-off of assets formed on the balance sheet of the UAC Group over the past several years have been carried out based on the results of their fair value assessment.

In addition, an increase in financial expenses, including due to changes in macroeconomic conditions, had a significant impact on the final financial result:

• an increase in interest expenses ─ by 11 billion rubles;
• the growth of other financial expenses ─ by 14 billion rubles.

As a result, the measures taken resulted in a net loss of RUB 109 billion for the UAC Group of Companies.

At the same time, in the reporting year there was a decrease in consolidated net debt by 35% to 169 billion rubles, primarily due to strategic support from the main shareholder - the Russian Federation - expressed in the additional capitalization of the UAC by 100 billion rubles. in order to financially improve the Sukhoi Superjet 100 program.

Introduction of updated organizational structure

Since the end of 2015, the United Aircraft Corporation (UAC) has introduced an updated organizational structure designed to improve the company's manageability and strengthen key corporate functions. Among the key changes is the appointment of heads of two areas - civil and military aviation.

The Vice President for Civil and Transport Aviation will consolidate the management of Sukhoi Superjet 100, MS-21, Tu-204/214, Il-96 programs, transport aviation programs and other civilian projects.

Vice President for Military Aviation will be responsible for managing the combat aviation programs of MiG and Sukhoi, special aviation programs of Tupolev and TANTK named after Beriev and other military projects.

The position of general designer - vice president for innovation has been introduced. He will take part in the work of the Military-Industrial Commission as a general designer for combat aviation, and in the corporate center of the UAC he will be responsible for the distribution of work between design bureaus, the creation of a scientific and technical reserve and the coordination of innovative activities.

Cooperation between enterprises, the introduction of a new industrial model of the corporation, the development of suppliers and the introduction of best production practices, standardization - the area of ​ ​ responsibility of the vice president for production and technical development.

The vice president of programs and strategy should ensure a unified approach to program management throughout the corporation, control over the implementation of the production system, will develop the corporation's strategy, and be responsible for the configuration of strategic partnerships, including with foreign companies.

Another new vice president - chief of staff will build the effective work of supporting functions, such as personnel management, information technology, corporate communications, and others.

The number of vice presidents remains the same as in the previous structure. The UAC corporate center will also undergo other transformations, some functionalities will be redistributed and refined, the status and powers of a number of positions will be changed. The appointment of vice presidents will take place in the near future, a complete restructuring of the structure will take 4-5 months.

The new management structure was developed with the assistance of consultants Strategy Partners Group (a subsidiary of Sberbank of Russia).

2014: Aircraft supply growth

As part of the implementation of aircraft production contracts, there is an increase in the supply of aircraft from 111 units in 2013 to 159 units in 2014.

At the end of 2014, the company took 14th place in the list of 100 leading world arms manufacturers prepared by the Stockholm Institute for Peace Research (SIPRI). Arms sales of the enterprise in 2014 amounted to $6,110 million^[4]

The growth in aircraft sales is provided, first of all, by an increase in the supply of military aircraft for the Ministry of Defense of the Russian Federation by almost 2 times compared to last year - from 54 to 102 units. In addition, as part of the civil aviation business area, 27 SSJ 100 aircraft were delivered to customers in 2014, including 9 aircraft for export.

In 2014, the Group's revenue grew by 34% to RUB 295 billion. Revenue growth in the reporting year is primarily due to the growth of revenue from:

• modernization and overhaul of equipment for the Ministry of Defense of the Russian Federation, including at 15 aircraft repair plants included in the management loop of OJSC UAC in 2013-2014, ─ by 35 billion rubles;
• the sale of components for aircraft and aviation property ─ by 17 billion rubles.
• R&D ─ by 10 billion rubles.

In 2014, the UAC group of companies managed to increase gross profit by 10% to 48 billion rubles, while the decrease in gross profitability to the level of 16% was due to an increase in the share of revenue under the state defense order (these contracts have restrictions on margin income established by regulatory legal acts of the Russian Federation).

The growth in aircraft output and revenue provided an improvement in profit margins EBITDA and operating profit in absolute and relative terms. EBITDA in 2014 showed an increase of 45% and reached the value of 24 billion rubles.

Despite the positive dynamics, the corporation in 2014 failed to achieve net profit, which is primarily due to:

• a high level of depreciation in the total amount of RUB 22 billion due to the implementation of a wide range of investment programs for modernization and technical equipment;
• servicing of the loan portfolio: interest expenses amounted to almost 23 billion rubles;
• negative exchange rate differences: loss on foreign exchange differences exceeded 3 billion rubles.

File:Ключевые консолидированные финансовые показатели Группы компаний ОАК.jpg

2013:20% increase in product sales

According to the results of 2013, UAC became one of the three world leaders of the military-industrial complex in terms of sales growth. The United Aircraft Corporation became one of the three world leaders in terms of arms sales growth. With such data, a report by the authoritative Stockholm Peace Research Institute (SPIRI) was published, which drew a line under its own statistical calculations for 2013.

At the same time, as recorded in the rating, the UAC managed to increase sales of its products by 20%, to $5.5 billion. The SIPRI 100 rating of the world's largest military-industrial companies has been issued since 1990 and takes into account domestic and export supplies of military goods, as well as the provision of services for military customers.

The revenue of OJSC UAC in 2013 exceeded the same value in 2012 and amounted to 12.1 billion rubles. In 2013, as part of the optimized financing scheme, a subsidy in the amount of 1.8 billion rubles was received from the Federal Budget of OJSC UAC to compensate for the costs of paying the 5th coupon income on the bond loan dated February 22, 2011 No. 4-01-55306-E, which made it possible to ensure an increase in other revenues by 9.77% compared to 2012.

In addition, it was possible to reduce other expenses, including by reducing negative exchange rate differences. As a result, the delta of other income/expenses for the year amounted to almost 2.2 billion rubles, which allowed the Company to achieve a positive financial result of 0.7 billion rubles, net profit margin of 5.8%, as well as reduce the uncovered loss to 1.5 billion rubles.

The amount of net debt of OJSC UAC in 2013 decreased by more than 13.85% and amounted to about 31.0 billion rubles, while positive trends were noted both in reducing the share of short-term borrowings in the Company's total debt structure from 14.68% to 8.72% compared to the beginning of the reporting year, and in reducing interest expenses by 3.42% compared to 2012.

As part of the cash flow analysis, there was an inflow of cash from operating activities in the amount of almost 5.9 billion rubles, as well as an almost 6-fold increase in cash flow aimed at investment activities, which, nevertheless, made it possible to achieve a positive value of free cash flow and, accordingly, reduce the dependence of the Company's activities on external sources of financing.

The mission of the corporation, which is the basis of the strategy, is to achieve and maintain the long-term competitiveness of the corporation among the leaders of the global aircraft industry market engaged in the development, production and after-sales service of civilian and combat aircraft.

The corporation's target for the strategic perspective of 2025 is to achieve annual revenue of at least $25 billion and a net profit margin of at least 10%. At the same time, labor productivity should increase by 7.3 times.

The corporation's strategy, adopted in early 2011, requires updating, including in connection with the adjustment of government documents, such as:

• State program "Development of the aviation industry" for 2013-2025;
• Federal target program "Development of the military-industrial complex for 2011-2020";
• State Arms Program until 2020;
• "Fundamentals of the state policy of the Russian Federation in the field of aviation activities for the period up to 2020,"
• Transport strategy of the Russian Federation for the period up to 2030.

Notes