Russian Helicopters announces results for year to 31 December 2014

Russian Helicopters announces results for year to 31 December 2014 15 Apr, 15, Source: Russian Helicopters

Russian Helicopters, part of State Corporation Rostec, a leading global designer and manufacturer of helicopters and manufacturer of some of the world’s most innovative and widely operated models, announces its consolidated operating and audited financial results for the year ended 31 December 2014 under IFRS.

Main results:

· Revenue grew by 22.8% to RUB 169.8 billion;

· EBITDA[1] rose 78.7% to RUB 47.0 billion, representing a solid EBITDA margin of 27.7%;

· Profit totaled RUB 20.7 billion.

· Helicopter deliveries for 2014 reached 271 units;

· Firm backlog totaled 546 helicopters as of 31 December 2014;

RUB, million          2014                   2013                     Change, y-o-y (%)
Revenue                  169,842               138,263                          22.8%

EBITDA                  47,014                 26,304                             78.7%

EBITDA margin   27.7%                  19.0%                                8.7 pp

Profit                      20,712                     9,473                              118.6%


Deliveries             271                         275                                    -1.5%

Firm backlog      546                        808                                    -32.4%
Russian Helicopters CEO Alexander Mikheev commented: “We are pleased to once again report positive yearend results. We have seen significant growth in the key indicators of revenue and EBITDA – 23% and 79% respectively, despite the slight decline in the number of helicopters delivered. Russian Helicopters achieved a record EBITDA margin of 27.7%. The changing rouble rate and a more diversified supply portfolio, half of which is export contracts denominated in foreign currency, helped achieve these results. However, even leaving these external economic factors aside, we anticipated growth.”

Alexander Mikheev said that, this year, Russian Helicopters will continue to focus on achieving its strategic goals, and under the priority goals set by State Corporation Rostec, will focus on improving operational efficiency in production, expanding both the range of models offered and our presence on the global market, and also on developing our network for the provision of high-quality after-sales service and maintenance.

Russian Helicopters will continue to strengthen its position as a leading global aerospace and defence enterprise, recognised for its high degree of efficiency and competitive production.

2014 Full Year Financial Highlights

Consolidated revenues in 2014 totaled RUB 169.8 billion, an increase of 22.8% compared to RUB 138.3 billion in 2013. Revenue from helicopter sales amounted to RUB 141.5 billion in 2014, while revenue from services and support reached RUB 21.6 billion.

Cost of sales increased by 1.0% compared to 2013 and amounted to RUB 88.9 billion in 2014. Operating expenses increased by 40.2% year-on-year and totaled RUB 41.5 billion.

EBITDA rose 78.7% year-on-year and reached RUB 47.0 billion in 2014. EBITDA for the helicopter sales segment amounted to RUB 39.9 billion, and EBITDA for the services and support segment amounted to RUB 6.2 billion.

Profit grew by 118.6% year-on-year and totaled RUB 20.7 billion for the year.

Cash CAPEX increased by 27.2% compared to 2013 and amounted to RUB 20.6 billion in 2014, including investments in production facilities of RUB 13.2 billion, an increase of 59.3% compared to 2013.

Development costs decreased by 6.4% compared to 2013 and amounted to RUB 7.4 billion in 2014. The Company continues to pursue a strategy designed to foster innovation.

2014 Full Year Operating Highlights

Helicopter deliveries in 2014 totaled 271 units, down 4 units or 1.5% compared to 2013. The Company delivered eight types of helicopters to clients from 11 countries during the year.

The firm backlog reached 546 units, with an order value of more than RUB 396.1 billion in 2014. The delivery plan for 2015 is 100% secured with 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 2014 its IFRS revenues increased 23% to RUB 169.8 billion. Deliveries reached 271 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, five of them are involved in civil industries and 22 are directly controlled. Rostec’s portfolio includes recognised brands such as Avtovaz, Kamaz, 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 2013 amounted to RUB 1.04 trillion. The tax deductions into the treasuries at all levels exceeded RUB 138 billion.

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