Russian Helicopters (“the Company”) – a subsidiary of Oboronprom, part of State Corporation Rostec – announces its non-audited consolidated financial results for the six months ended 30 June 2014 under IFRS.

1) Firm backlog totaled 794 helicopters as of 30 June 2014;
2)Revenue grew by 7.4% to RUB 69.2 billion;
3)EBITDA1 surged 16.1% to RUB 13.7 billion, representing an EBITDA margin of 19.8%;
4)Profit totaled RUB 4.4 billion, up 44.7% year-on-year.

RUB, million              1H2014    1H2013      Change, y-o-y (%)

Revenue                      69,230     64,470               7.4%

EBITDA                      13,686      11,791                16.1%

EBITDA margin        19.8%      18.3%                 1.5 pp

Profit                        4,411        3,049                44.7%

Financial Highlights

The Сompany’s consolidated revenues in 1H2014 totaled RUB 69.2 billion, an increase of 7.4% year-on-year. Revenues from helicopter sales amounted to RUB 58.7 billion, while revenues from services and support reached RUB 7.5 billion.

Cost of sales increased by 6.3% year-on-year and amounted to RUB 42.2 billion. Operating expenses increased by 6.4% year-on-year and totaled RUB 17.3 billion.

EBITDA surged 16.1% year-on-year and reached RUB 13.7 billion. The EBITDA margin was 19.8%.

Profit in 1H2014 totaled RUB 4.4 billion, up 44.7% year-on-year.

Backlog

The Сompany’s order book reached 794 helicopters, with a total value of about RUB 401 billion

1 – The Сompany defines EBITDA as operating profit before depreciation and amortization, adjusted for gain /loss on disposal of property plant and equipment, impairment of property, plant and equipment with share in results of associates included. EBITDA is a non-IFRS financial measure; therefore the Сompany’s definition of EBITDA may differ from similar measures defined by other companies.

Russian Helicopters, JSC is a subsidiary of UIC Oboronprom, which in turn is a part of State Corporation Rostec. It is one of the global leaders in helicopter production and the only helicopter design and production powerhouse in Russia. Russian Helicopters 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. Over 8000 helicopters of Soviet/Russian make are operated in 110 countries worldwide. Traditionally the demand is highest in the Middle East, Africa, Asia-Pacific, Latin America, Russia, and CIS countries. Russian Helicopters was established in 2007. In 2013 its IFRS revenues increased 10% to RUB 138.3 billion. Deliveries reached 275 helicopters.

UIC Oboronprom, JSC is a multi-profile industrial and investment group established in 2002. It is a part of Russian Technologies State Corporation. Its main tasks include: helicopter engineering (Russian Helicopters, JSC) and engine-building (United Engine Industry Corporation managing company).

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 663 organizations, nine of which have now been formed as holding companies of the military-industrial complex and five of them are involved in civil industries. Rostec’s organizations 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 2013 amounted to RUB 1, 04 trillion, with net profit of RUB 40 billion. The tax deductions into the treasuries at all levels exceeded RUB 138 billion.