OREANDA-NEWS. December 24, 2012. JSC “United Aircraft Corporation” has released its first Annual Report for 2011 based on Consolidated Financial Statements prepared in accordance with IFRS.

Since its incorporation at the end of 2006, JSC “UAC” has consolidated the Russian aircraft construction industry assets and modernized them to counter economic downturn. The Corporation developed serial production of new aircraft models, and launched new perspective projects.

The Corporation benefited from its key financial and operating indicators growth in 2011. Production and deliveries have increased to 111 and 102 aircraft respectively (compared to 79 and 74 aircraft in 2010 respectively).

JSC “UAC” holds a strong position in the world’s military aircraft market segment with a share of 12-13% by revenue and 17-18% by deliveries. The Corporation aims to increase its market share in civil, transport and special aircraft market segments. Although its share of the world’s civil aircraft market segment is close to 1%, the Corporation has already observed a significant deliveries increase in this segment in 2012.

In 2011 and 2012 the Corporation continued to benefit from positive financial dynamics observed in the past few years. Revenue for 2011 was RUB 161.7 bln, up by 15% from 2010. Gross profit margin increased to 29.3% from 25.9% in 2010.

In 2011 the Company’s operating profit was RUB 1.8 bln compared to operating loss of RUB 11.8 bln in 2010. Net loss for 2011 was RUB 11.9 bln, down by 41% from 2010. Net loss margin was -7.3% compared to -14.3% in 2010.

In 2011 the Company adopted its Development Strategy for a period up to 2025 (“Strategy”) with the aim to become one of the world’s largest aircraft industry centers with a diversified product portfolio. In terms of its financial strategy the Corporation takes measures to improve its operating efficiency, achieve financial stabilization and decrease borrowing costs in order to achieve break-even point and generate positive free cash flow.

The Corporation continues to consolidate its assets and optimize production structure, including modernization of its production facilities. UAC also works on improving financials of its subsidiaries and optimizing its own external debt structure. The Corporation also works on establishing competence centers, introducing modern management systems and developing industry innovations.

The JSC “UAC” Annual Report for 2011 (in Russian) is available at the Company’s corporate website www.uacrussia.ru/ in the “Investor Relations / Reports / Annual Reports” section or under a link http://www.uacrussia.ru/ru/investors/reports/annual_reports/. Should you require information in English please contact us http://uacrussia.ru/en/investors/contact_data/. JSC “UAC” Consolidated Financial Statements for the year ended December 31, 2011 prepared in accordance with IFRS (in English) are available at the Company’s corporate website www.uacrussia.ru/en/ in the “Investor Relations / Reports / IAS/IFRS Financials” section or under a link http://www.uacrussia.ru/en/investors/reports/ias_ifrs_financials/.