News
Russian Helicopters reveal financial results for 2016
28.04.2017 / Moscow

Russian Helicopters, part of State Corporation Rostec, has revealed consolidated audited financial statements for 2016 under IFRS. 

Main results for 2016:

- Revenues decreased by 2.5% and amounted to 214.3 billion rubles;

- EBITDA amounted to 40.9 billion rubles;

- EBITDA margin was 19%;

- Profit amounted to 16.2 billion rubles;

- 189 helicopters were delivered;

- Firm orders totaled 396 helicopters (as of January 1, 2017).

Million rubles

  2016 г.        

Revenue

  214 360 

EBITDA

  40 921        

EBITDA margin

  19,0%        

Profit

  16 204        

Number of helicopters, pcs.

Deliveries

     189        

Firm orders

     396       

 

 

"Compared to 2015, we see some decline in several financial results for 2016, which is confirmed by experts’ long-term forecast of stagnation in the global helicopter market.  We are talking, of course, about a demand drop for products of both Russian and foreign production. Given these trends, Russian Helicopters has paid particular attention to optimizing costs and further diversifying sources of profit. Management decisions aimed at stabilizing the financial situation allowed our holding company to complete the year with profit and fully provide the firm orders portfolio for 2017," said Russian Helicopters CEO Andrey Boginsky.

In 2016, the company focused on improving quality of after-sales service, which helped to significantly improve financial performance in this segment. For example, compared to 2015, sales revenue resulting from service and maintenance increased by more than 18%.

"Considering changes of the external competitive environment and the actualization of our strategy, we conducted an in-depth analysis of our prospects, opportunities and risks, and defined key directions for the next ten years by identifying growth vectors in the current situation," Boginsky emphasized. - By improving performance of our helicopters and after-sales service, we will be able to enter new client markets. And we will also continue to increase internal efficiency, thus ensuring production volumes and reducing costs and overheads. "

In accordance with the strategy of the aviation cluster, Russian Helicopters intends to expand its model lineup, which includes active development of civilian products. According to Mr. Boginsky, despite negative market forecasts and difficult economic situation in the world in general, the holding company intends to strengthen its position as one of the leading players in the global helicopter market.

Key Financial Results for 2016

Consolidated revenue for 2016 amounted to 214.3 billion rubles and showed a slight decrease of 2.5%. Revenues resulting from helicopter sales for the past year amounted to 165.7 billion rubles. Revenue from maintenance and after-sales services for 2016 amounted to 45.4 billion rubles, which is an increase of 18.4% compared to 2015.

The cost of production and services for 2016 amounted to 116.4 billion rubles, which is an increase of 13.6% compared to 2015. EBITDA for the period amounted to 40.9 billion rubles. EBITDA in the helicopter sales segment amounted to 22.3 billion rubles, in the maintenance and after-sales service segment – to 16 billion rubles.

Profit in 2016 reached 16.2 billion rubles, which is a decline of 61.1% compared to 2015.

Key Operational Results for 2016

In 2016 Russian Helicopters delivered 189 helicopters, which is 23 helicopters or 10.8% less than in 2015. In total, the holding company delivered helicopters to 13 countries. At the end of 2016, the company's firm orders portfolio was 396 helicopters with estimated value of 466 billion rubles. Supplies for 2017 are 100% secured by firm orders.

Russian Helicopters, (part of State Corporation Rostec), is one of the global leaders in helicopter production and the only helicopter design and production powerhouse in Russia. Russian Helicopters was founded in 2007 and is headquartered in Moscow. The company comprises five helicopter production facilities, two design bureaus, a spare parts production and repair facility, as well as an aftersale service branch responsible for maintenance and repair in Russia and all over the world. Its helicopters are popular among Russian ministries and state authorities (Ministry of Defence, Ministry of Internal Affairs, Emergency Control Ministry), operators (Gazpromavia, UTair), major Russian corporations. In 2015 its IFRS revenues increased 29.5% to RUB 220.0 billion. Deliveries reached 212 helicopters.

State Corporation Rostec is a Russian corporation founded in 2007 for the purpose of promoting the development, production and export of hi-tech civilian and military industry products. It comprises 700 organisations, nine of which have now been formed as holding companies of the military-industrial complex, six of them are involved in civil industries and 32 are directly controlled. Rostec’s portfolio includes recognised brands such as Avtovaz, Kamaz, Kalashnikov Concern, Russian Helicopters, and VSMPO-AVISMA. Rostec’s organisations are located in 60 constituent entities of the Russian Federation and supply their products to the markets of more than 70 countries. The revenue of Rostec in 2015 amounted to RUB 1.140 trillion. Average salaries within the Corporation amounted to RUB 41 thousand and tax deductions into the treasuries at all levels exceeded RUB 160 billion. According to the new Rostec strategy, the new main goal of the Corporation is to facilitate technological advantage of Russia at highly competitive international markets. Planned volume of investments into development until 2025 is RUB 4.3 trillion.

Russian helicopters magazine
Issue #1 (30) 2017
2017 year