ukroboronprom 2016
TRANSCRIPT
2016
2
UKROBORONPROM TODAY:
130+enterprises
~80 000employees
labour dynasties
missioned to ATO area
participated in military operations
368
400
262
R&D centerskey defence industries m2 production facilities
315 9 000 000
3
UKROBORONPROM 2016DEFENCE CAPABILITY COMPETITIVENESS
6 209weapons and military
equipment
Transferred to Ukrainian Security Authorities
growth +20% growth +9%
Export sales
mln $592 3,374Taxes paid
~700R&D projects from HEIs
Development of Applied Science and Education
Investments in production of new products carried out with the working
capital of enterprises
528through one of ProZorro platform
375Savings
mln UAH mln UAH
bln UAHunits
*as of 30.09.2016 and 30.09.2015
$ 494 mln for 2015 UAH 3,1 bln for 2015
growth +11% UAH 476 mln for 2015
4
KEY PERFORMANCE FIGURES
OF PROFIT UKROBORONPROM PAID TO THE STATE WHICH ELIMINATES THE POSSIBILITY TO REINVEST IN PRODUCTION AND DEVELOPMENT75%
*as of 30.09.2015 and 30.09.2016 **Capital investments were performed with no state budget participation***as of 30.09.2016
Average wage, UAHCAPEX, UAH **
475 933 500 5 354
527 729 900 6 897
Taxes paid, UAHNet revenue, UAH
14 431 758 000 3 099 565 3002015
18 535 698 000 3 374 550 2002016
Financial results from operations, mln UAH EBITDA, mln UAH Operating margin
Assets depreciation ratio
Number of full-time employees
1 394 2 452 7,5% 67% 77 925
*
OTHER RESULTS ***
5
6 209
1 019 19
units of weapons and military equipment
TRANSFERRED TO UKRAINIAN SECURITY AUTHORITIES
68256Precision weapons
and ammunitionAviation
1 362PRODUCED AND MODERNIZED
Armored vehicles, artillery, special
equipment
Radar systems, electronic
warfare and communications
323 64902 94Precision weapons
and ammunitionAviation
1 389REPAIRED
Armored vehicles, artillery, special
equipment
Radar systems, electronic
warfare and communications
6Shipbuilding
3 458
Nodes and aggregates
*as for 9 m 2016
6
DEFENCE STATE ORDER COMMITTED FOR 2016
4,22,8 PRODUCTION
OF NEW WEAPONS
REPAIRS
2,8 actually funded for 9 months 2016
overall defence state order comprises
UAH 11,3 bln Precision weapons and ammunition
AviationArmored vehicles, artillery, special
equipment
Radar systems, electronic warfare and
communications
67 % 38,9 %
SHARE OF UKROBORONPROM IN DEFENCE STATE ORDER FOR 2016
1,4
UKROBORONPROM UKROBORONPROMOTHER OTHER33 % 61,1 %
20162015
bln UAH
bln UAHbln UAH
bln UAH
7
digital fire control system
MYSLYVETS
60mm mortar
KBA.118
OUR RESPONSE TO HYBRID WAR
UAVs
GORLYTSYAmultipurpose unmanned
armored vehicle
PHANTOM
combat module combat module
TAIPAN DUPLETcombat module
KASTET
transport aircraft
АN-132
LIST OF INITIATIVE PROJECTS:UKROBORONPROM DEVELOPED AND INTRODUCED AT ITS OWN EXPENCE:
Mineral KRTSO «Kolchuga 2»
Modification number of the new generation armored combat vehicles based on a modular concept
120-mm self-propelled mortar, code «Nabat»
Efforts are being made with Ukrainian MoD as to the funding of R&D NABAT and development of operational-tactical requirements and tactical and technical assignments for the rest of projects
2016 - YEAR OF INNOVATIONS
and other...
INNOVATION PLATFORM (ANALOGUE OF AMERICAN DARPA) WILL UNITE DEVELOPERS, START-UPS, INVESTMENT FUNDS AND MILITARY (ITS ESTABLISHMENT WAS ANNOUNCED ON 11TH OCTOBER 2016)
8
IMPORT SUBSTITUTION - PRIORITY OF ENTERPRISES
30% 35%
13% 15%
70% 65%
87% 85%
2015
2016
BTR-3Е1 BTR-4Е
35%10%Russia RussiaOtherUkraine Ukraine
55% 45%10%45%2014
Ukraine Ukraine
Ukraine Ukraine
Other
Other Other
Other
Other
9
TRANSPARENT TENDERS - OUR COUNTERMEASURE TO CORRUPTION
for 9 months 2016 saved
mln UAH 375
Number of e-procurements conducted
14 483730
20 57120152014
2016
Number of new suppliers registered at ETP
4 836
12 3232015
2016
Average amount saved per one e-procurement, UAH
15 000
18 0002015
2016
+75%growth compared
to 9 m 2015
214mln UAH for
9 months 2015
UKROBORONPROM IS THE EARLY BIRD IN E-PROCUREMENTS IMPLEMENTATION
8302014
17 0002014
10
DEVELOPMENT OF EXPORT CAPACITY
9 m 2015 9 m 2016
+20%
EXPORT SALES
mln
SHARE OF EXPORTED MILITARY GOODS BY UKROBORONPROM IN TOTAL VOLUME OF
UKRAINIAN EXPORT
* expected for 2016 - certain volume of contracts are in the pre-conclusion stage
growth compared to 9 m 2015
VOLUME OF EXPORT CONTRACTS SIGNED DURING 2014 - 10 MONTHS 2016 COMPRISES $ 3,150 bln*ORDER BOOK AS OF NOVEMBER 30, 2016$1,446 bln
2% 1,9%
mln $ 592$ 494
11
MORE THAN 65 MEMORANDA WERE SIGNED ON NEW POINTS OF COOPERATION WITH 20 COUNTRIES
PARTNERSHIP ON THE GLOBAL MARKET
BELGIUM
FRANCE
CANADA
USA
MEXICO
EQUATORIAL GUINEA
CYPRUS
GREAT BRITAIN
GERMANY
POLAND
UAE
DENMARK
ISRAEL
SWITZERLAND
INDIA
TURKEY
MALAYSIA
SAUDI ARABIA
CHINA
INDONESIA
12
COOPERATION WITH NATO
for the first time in the history of Ukraine the Day of Ukrainian Defence Industry in NATO Headquarter (Brussels, Belgium) and NATO Agency HQ on NSPA Support and Supplies (Kappelen, Luxembourg) was held, where Ukroboronprom presented its products, particularly new projects
30.11.16 - 01.12.16
UKROBORONPROM JOINTLY WITH NATO INFORMATION AND DOCUMENTATION CENTER INTENDS TO CREATE CONCERN BASED TRAINING CENTRE FOR UKRAINIAN EXPERTS IN DEFENCE AND SECURITY SECTOR UNDER THE ALLIANCE PROGRAM.ASSUMED ENGAGEMENT OF EMPLOYEES FROM SUBJECT MINISTRIES, ENTITIES AND STATE ORGANISATIONS
NATO office of advisory support has been opened at Ukroboronprom
3 enterprises have inplemented the management and quality assurance system AQAP 2000, fourth enterpise - shortly
70% of enterprises certified for ISO 9001
SKDB Luch took part in the NIAG 204 Industrial Advisory Group study on lifecycle arms
NATO decided to use Ukrainian AN-124 for strategic transport carriages by the SALIS program
13
UKROBORONPROM AS DRIVER OF APPLIED SCIENCE AND EDUCATION IN UKRAINE. RESULTS:
491
20023
R&D projects from HEIs
R&D projects from NASU
is already being implemented at enterprises of Ukroboronprom
1024
54
89974
174
123
343 554
1306
60184
26 30
production of energy savings equipment and facilities, improvement of energy efficiency in production and reducing
energy and material intensity in production
production of new critical materials with specified physical and chemical features
production of equipment for communications and information space protection
VITAL DIRECTIONS OF COOPERATION WITH SCIENTISTS
students completed internships at 56 enterprises of Ukroboronprom
interns employed at enterprises of Ukroboronprom
3 681
370
under primary expertise
for 9 m 2016
14
KEY STRATEGIC INITIATIVESREFORM OF THE DEFENCE INDUSTRY COMPLEX IN UKRAINE:
CORPORATISATION
AUDIT
CLUSTERIZATION
INNOVATION PLATFORM
TECHNOLOGY PROTECTION
15
CORPORATISATIONTRANSPARENT AND EFFICIENT MANAGEMENT STRUCTURE
SUPERVISORY BOARD. COLLEGIATE DECISION MAKING
UNDERSTANDABLE PROCEDURES FOR INTERNATIONAL INVESTORS
CLEAR MECHANISMS OF FINANCING AND FINANCIAL FLOWS CONTROL
2015 - pilot project2016 - established aircraft building corporation on the basis of SE Antonov
2 enterprises in the course of corporatisation corporatisation is approved
by subject ministry5 enterprises
developed changes to the legislation and submitted for approval to the subject ministry
67 enterprises
16
AUDITOBJECTIVE VIEW ON THE CONCERN FROM THE LEADING INTERNATIONAL EXPERTS
JUSTIFIED ASSURANCE AND INVESTMENTS PROTECTION
CLEAR PRINCIPLE OF ENTRY INTO CAPITAL FOR INVESTORS
FOCUS ON EFFICIENT USE OF RESOURCES
DEVELOPED TERMS OF REFERENCE FOR THE INDEPENDENT AUDIT BY LEADING
INTERNATIONAL CONSULTING AND AUDIT COMPANIES
improving the business processes management, adoption of international standards
identification of unique market proposal and most promising markets
roadmap development for implementation of Concern` selected strategy
transition plan development as to preparation of financial statements in compliance with international standards
OBJECTIVES
17
CLUSTERIZATION5 PRODUCTION SEGMENTS
EFFECTIVE COLLABORATION WITH PRIVATE COMPANIES
OPTIMISATION OF COOPERATION BETWEEN PRODUCERS AND SCIENTISTSADVANCED TECHNOLOGIES AND INNOVATION EQUIPMENT
SYNERGY EFFECT AND CLOSED PRODUCTION CYCLE THROUGH INTEGRATION WITHIN THE INDUSTRY
IN JUNE 2016 AIRCRAFT CLUSTER WAS CREATED
4 clusters are under formation in armored vehicles, shipbuilding, precision weapons systems, radar, electronic warfare and communications
18
INNOVATION PLATFORM
DEVELOPING HI-TECH DECISIONS
EFFECTIVE TOOL FOR DEVELOPERS, INVESTORS AND MILITARISTS
POTENTIAL FOR POWERFUL BREAKTHROUGH IN DEFENCE INDUSTRY DEVELOPMENT
IN OCTOBER 2016, CONCERN INITIATED THE ESTABLISHMENT OF «INNOVATION PLATFORM» FOR DEVELOPMENT OF INNOVATION PROJECTS IN DEFENCE SECTOR AND ATTRACTING INVESTMENTS FOR THEIR REALIZATION
19
TECHNOLOGY PROTECTIONPROTECTION OF INTELLECTUAL PROPERTY ACCORDING TO INTERNATIONAL STANDARDS
SUSTAINING OF INTELLECTUAL CAPITAL OF THE COUNTRY
IMPROVING COMPETITIVENESS
BOOSTING FURTHER INNOVATIVE ACTIVITY
POWERFUL COMMUNITY OF SCIENTISTS AND ENGINEERS FROM 31 DESIGN BUREAU OF UKROBORONPROM MAKE SIGNIFICANT CONTRIBUTION TO PROGRESS OF THE COUNTRY IN SCIENCE AND TECHNOLOGY, THEREFORE INTELLECTUAL PROPERTY PROTECTION IS VERY IMPORTANT ASPECT TO DEVELOPMENT OF NATIONAL DEFENCE CAPABILITY
20
KEY REFORM OBJECTIVES
OPENNESS AND TRANSPARENCY
INNOVATIVENESS
PASSIONARITY
EFFICIENCY
RELIABILITY
elimination of corruption schemes, transparent ownership of assets, favorable information policy, openness to international investors
dynamic step in advancing the innovation development , engaging to cooperation ofall scientific links, partnership with global R&D centers
driver and encouragement of Ukrainian defence industry reform, creating a favorable regulatory environment
ultimate productivity, strengthening financial position, expansion of trade area, human capital development
national defence capability support, prevention of new security threats to the state, strengthening the international authority of Ukraine
21
CHANGES TO LEGISLATION - MANDATORY REQUIREMENT FOR REFORM
corporatization of enterprises
establishment of joint ventures with foreign partners
support of aircraft industry14 July 2016 was approved a legislative bill №4809 as to сreation of conditions for international cooperation of aircraft parties and development of domestic aviation20 October 2016 was adopted the Law «On debt restructuring of SE «Antonov»
26 October 2016 government allowed reversion of income tax rate from 75% to 35% since 01 January 2017
taxation of defence enterprises and other
3411
legislative drafts developed by Concern
amendments to primary laws were submitted to the Verkhovna Rada
22
PRIMARY EVENTS OF THE YEAR
UKROBORONPROM PRESENTED SNIPER RIFLE VM2 MP-UOS
UKROBORONPROM AND NAS OF UKRAINE AGREED FOR
COOPERATION. 200 JOINT R&D PROJECTS AVAILABLE
UKROBORONPROM TRANSFERRED TO UKRAINIAN
ARMY FIRST BATCH OF LOCALLY PRODUCED UAVS
BTR-4 WITH NEW NATO ENGINES WERE INTRODUCED INTO
SERVICE OF UKRAINIAN ARMY
UKROBORONPROM INITIATED FIRST «UKRAINIAN FORUM ON DEFENCE AND SECURITY 2016»
WAS SIGNED MEMORANDUM OF COOPERATION WITH
SAUDI ARABIA FOR AN-132 MANUFACTURING
UKRAINIAN MILITARY RECEIVED THE FIRST BATCH OF NEW
MORTARS «MOLOT»
«SHIPBUILDING PLANT NAMED 61 COMMUNARDS» FLOATED
OUT ON THE WATER THE MISSILE BOAT «PRYLUKY»
UKROBORONPROM ENTERED THE TOP-10 MOST INNOVATIVE
COMPANIES OF UKRAINE BY FORBES
KBTZ transferred to National Guard first batch of modern
BTR-3E1
UKRAINIAN AN-178 PERFORMED DEMONSTRATION FLIGHTS FOR THE FIRST TIME AT THE INTERNATIONAL EXHIBITION «ILA BERLIN AIR SHOW»
FIRST CLUSTER - UKRAINIAN AIRCRAFT CORPORATION WAS
CREATED
UKRAINIAN MILITARY AVIATION, MODERNIZED BY THE CONCERN IN
COMPLIANCE TO NATO STANDARDS, PARTICIPATED IN THE INTERNATIONAL AVIATION SHOW «SKRYDSTRUP-2016»
10 «DOZORS» WERE TRANSFERRED TO ARMED
FORCES OF UKRAINE
UKROBORONPROM TRANSFERRED OVER 71 UNITS OF WEAPONS AND MILITARY EQUIPMENT TO UKRAINIAN
MILITARY
UKROBORONPROM PRESENTED LATEST UAVS «PHANTOM» AND
«GORLYTSYA»
UKROBORONPROM MOVED UP 24 POSITIONS IN THE
WORLD RATING OF WEAPONS PRODUCERS BY «DEFENCE
NEWS»
15.01 25.01 26.01 05.02 18.02 24.02 03.03
16.03 04.05 16.05 06.06 10.06
17.06 20.07 23.08 29.08 15.09
UKROBORONPROM PRESENTED THE REFORM STRATEGY OF
DEFENCE INDUSTRY COMPLEX AND INNOVATION PLATFORM
PREMIERE AT THE EXHIBITION «ZBROYA TA BEZPEKA» OF
COMBAT MODULES «DUPLET», «TAIPAN», «VIY» AND UAVS
«ANSER»
UKRAINIAN DEFENDERS RECEIVED 119 UNITS OF WEAPONS AND MILITARY
EQUIPMENT FROM UKROBORONPROM
LATEST RADAR «PELICAN» FROM UKROBORONPROM WAS
SUCCESSFULLY TESTED BY UKRAINIAN MILITARY
UKROBORONPROM AGREED WITH MEDT OF UKRAINE THE
POSSIBILITY TO CORPORATISE 5 ENTERPRISES
DAYS OF UKRAINIAN DEFENCE AT THE NATO HEADQUARTERS: UKROBORONPROM AT FIRST
PRESENTS ITS POSSIBILITIES TO ALLIANCE
UKROBORONPROM MOVED UP 11 POSITIONS IN THE
WORLD RATING OF WEAPONS PRODUCERS BY «SIPRI»
ROLL OUT OF AIRCRAFT-DEMONSTRATOR AN-132D
11.10
12.10 17.10 23.10 28.11 29.11 05.12 20.12
33 UNITS OF WEAPONS AND MILITARY EQUIPMENT WERE TRANSFERRED TO
THE MILITARY ARMED FORCES WITH THE PARTICIPATION OF THE PRESIDENT OF
UKRAINE
HELD SUCCESSFUL TEST OPERATIONS OF NEW MISSILES
ARMS
23.03
26.08
16 BTR-4 WERE TRANSFERRED TO ARMED FORCES OF UKRAINE
27.04
AND MORE ...
23
INFORMATION ATTACKS ON UKROBORONPROM
WORLD EXPERT EVALUATION AND RECOGNITION
21%64% from Russian
mass media
from mass media of temporarily occupied territory
Each success of Ukrainian defence industry suffers attacks of aggressor`s propaganda machine that continues to disseminate false populist statements about Ukraine’s dependence on Russia
positions
2015
2016
92place
68place +24
in annual TOP-100 global defence companies
SEPTEMBER 2016
Rank Company
79 Pilatus Aircraft
80 Meggitt
81 UKROBORONPROM82 Cubic Corp.
83 Moog
92 UKROBORONPROMpositions+11
DECEMBER 2016
TOP-100 ARMS-PRODUCING COMPANIES
INFORMATION ATTACKS - PART OF AGGRESSOR`S HYBRID WARFARE
