JSC “Russian Helicopters” (hereinafter – Company), one of the world’s leading developers and manufacturers of helicopters, including some of the most iconic, innovative and well-operated models, announces its consolidated operating and audited financial results for 2011 the year under IFRS.

• Deliveries of helicopters has increased by 22.4% to $ 262 helicopter;
• The solid order backlog increased by 2 times and amounted to 859 helicopters at December 31, 2011;
• Revenue grew by 27.8% [1] and was 103.9 billion rubles;
• Indicator EBITDA [2] increased by 31.7% [1] and was 18.0 billion rubles;
• EBITDA margin was 17.3%;
• Profit rose by 12.7% [1] and was 7.0 billion rubles.

Commenting on today’s announcement, Mr. Director General shall JSC “Russian Helicopters” Dmitry Petrov said: “I am pleased to announce the impressive performance of the Company in 2011, which once again confirmed our ability to achieve its goals and commitments to shareholders, partners and markets.

The company continues to develop and demonstrate an impressive growth. In the past year we have consolidated its leading position in the global helicopter industry. In 2011 we delivered 262 cars to customers in 19 countries, increasing supply by 22.4%, which allowed us to take up to 14% of the world market in monetary terms. In addition, we have twice increased a solid order book, which reached 859 helicopters, and its value at the end of 2011 exceeded 330 billion rubles.

We have set a strategic goal of further strengthening our position in the global market by improving the competitiveness and operating efficiency, and make every effort to increase its shareholder value.

In 2012 we plan to continue to work actively to ensure the long-term undertaking for the future through intensive research and development activities. We will continue to work on the development of the service and after sales service, maintenance and modernization, as well as continue to improve the management system “, – said Dmitry Petrov.

Key financial indicators in 2011

Company’s consolidated revenue for 2011 amounted to 103.9 billion rubles., Showing an increase of 27.8% [3] , due, primarily, a significant (22.4%) increase in the supply of helicopters. Proceeds from sales of helicopters for the past year amounted to 82.0 billion rubles. Revenues from service and after sales for 2011 amounted to 15.0 billion rubles.

Cost of products and services to the Company for 2011 amounted to -63.3 billion rubles., An increase of 29.2% compared with a 2010.

Operating expenses increased by 23.3% 1 and the results of 2011 amounted to -25.9 billion rubles.

EBITDA for the period grew by 31.7% and amounted to a 18.0 billion rubles. In this segment EBITDA in the sale of helicopters amounted to 14.3 billion rubles., In the segment of the service and after sales service – 3.5 billion rubles.

Profit of the Company as a result in 2011 amounted to 7.0 billion rubles., An increase of 12.7%[4] compared to 2010.

Capital costs of the Company for the last period grew by 90.3% and amounted to 13.7 billion rubles. Of these, investment in production capacity of 9.1 billion rubles., An increase of 65.5% compared with 2010. The program of modernization and technical re-equipment in 2011 JSC “Russian Helicopters” were sold the following key activities:

• establishment of the center of competence for the production of magnesium castings on the basis of AAK “Progress”;
• completion of the 1st phase of the competence center for machining on the basis of JSC “Kazan Helicopter Plant”;
• completion of the 1st phase of the competence center for the development and manufacture of helicopter units, and transmission test stands at the base of JSC “Gear-PM.”

The costs to the companies on research and development activities in 2011 totaled 4.6 billion rubles., An increase compared to 2010 by 2.7 times, indicating that the active implementation of the Company’s strategy to build innovation capacity. The bulk of research and development activities in 2011 was in the projects Ka-226/226T, Mi-38, Ka-62, Mi-171A2 and the draft Future high-speed helicopter.

Key Operating Indicators in 2011

Deliveries of helicopters in 2011 totaled 262 helicopter, an increase of 48 cars, or 22.4%, compared with 2010. Total in 2011, the Company has set nine types of helicopters to customers from 19 countries worldwide.

As part of a strategy to sell the product life cycle, the Company in 2011 were supplied aviation equipment (AIT) and the services are rendered after-sales service 175 customers in 25 countries. The company is focused on the priority need to develop service network in the most promising markets in 2011, construction began on the Service Center in Qingdao (China).

In 2011, the Company’s portfolio of firm orders rose almost doubled, from 430 to 859 helicopters, and its value exceeded 330 billion rubles. The main factor increasing the signing of long-term contracts with the Ministry of Defence to supply more than 600 helicopters for a period up to 2020. Plan for delivery in 2012 provided a firm order for 100% of the plan in 2013 – up to 94%.

In addition, in 2011, the Company continued its expansion into new emerging markets, starting to work in Brazil and Argentina.

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JSC “Russian Helicopters” – a subsidiary of JSC “UIC” Oboronprom “, included in the” Rostekhnologii “, one of the world’s leading helicopter industry, the only developer and manufacturer of helicopters in Russia. The head office of JSC “Russian Helicopters” is located in Moscow. The holding company “Russian Helicopters” has five helicopter plants, two design offices, production facility and service components and service company that provides after-sales support in Russia and abroad. Helicopters acquired by Russian ministries and agencies (Ministry of Defence of Russia, the Russian Interior Ministry, Emergency Situations Ministry of Russia), airlines (“Gazprom Avia”, “UTair”), large Russian companies. Over 8,000 helicopters of the Soviet / Russian production operated in 110 countries. Traditionally, the highest demand for Russian helicopters – in the Middle East, Africa, Asia Pacific, Latin America, Russia and CIS countries. Holding “Russian Helicopters” was founded in 2007.

JSC “UIC” Oboronprom “ – diversified engineering group, founded in 2002. Included in the Company “Russian Technologies”. The main activities include helicopter (JSC “Russian Helicopters”) and engine (MC “United Engine Corporation”).