ukroboronprom. annual report
TRANSCRIPT
New MaNaGeMeNt
Roman RomanovUKROBORONPROM Director GeneralAppointed on July 4, 2014
20+ years’ experience in variousmanagement positions, both inbusiness and in state governance.
Sergii Pinkas, First Deputy Director General (since October 3, 2014)
Arthur Heru vimov, Deputy Director General for Development (since July 1, 2015)
Denis Gurak, Deputy Director General of Foreign Economic Activity (since August 12, 2014)
Oleksandr Stetsenko, Deputy Director General (since March 27, 2014)
Yurii Pashchenko, Deputy Director General of Aircraft Industry and Operations (since June 10, 2015)
Svitlana Khromets, Deputy Director General of Financial and Economic Issues (since July 9, 2014)
On July 4, 2014 Roman Romanov was appointed UKROBORONPROM Director General by the Decree of the President of Ukraine, Petro Poroshenko. To cope with serious problems in the new Environment, he assembled a team of highly qualified (MBA) professionals with successful track records in working on leadership positions during crisis not only in Ukraine, but also abroad:
eCoNoMiC iNDiCators
11.2* bln. UAH.in goods produced
+5 000 new jobs
2.7 bln. UAHin taxes and other transfers to the
budget or 8% growth despite reduction of reporting enterprises from 120 to 96
+12.6* bln. UAH.in net revenue
4464 UAH.The average monthly salary of the Concern
employees, which is 15% more than the average one in Ukraine (May 2015) and + 18% growth
over the previous period
+4.9* billion. UAH. gross profit, or 11.3% growth
+810* million. UAH. net profit, compared with a loss of -99
million. UAH. for the comparable period **
*operational data** Excluding foreign exchange differences
96+ enterprises
3 more enterprises, transferred by the Government under the management of UKROBORONPROM (+ 20 thousands employees):
«Antonov» SE «Kharkiv State Aviation Production Enterprise» SE «Plant 410 civil aviation»
MaNaGeMeNt DeCisioNs
* Developed by Ukrainian company
The launch of the electronic trading platform «IT Enterprise» *:9912 tender procedures conducted (from 06/11/2014) - 171.1 million. UAH saved.: Q4 2014: 730 tenders conducted - 12.5 million. UAH saved; Q1 2015: 3876 tenders conducted - 65.5 million. UAH. Saved; Q2 2015: 5306 tenders conducted - 93.1 million. UAH. saved;
+ 2586 new contractors engaged due to electronic trading platform use
Implementation of the new system of payments monitoring - about 130 mln. UAH. saved
Launched efficient logistics system: the cost of freight container transportations declined by half, leading to saving of 1.2 mln. UAH. per month.
Signed contracts with insurance companies on competitive basis: 1 mln. USD. savings per month.
MaNaGeMeNt DeCisioNs
* plan
The launch of the enterprise restructuring process, including turn-around and bunkrapcy recovbery, as a result:
Attracting top specialists in management and engineering: Launching of http://ukroboronprof.com.ua/ to attract highly skilled professionals: + 586 CV of top candidates. + 16 new managers and, as a result, - 13+ enterprises, generating profits for the half year
Professional development of the State Concern management: Cooperation with the top 5 business schools in Ukraine. Five top managers of Concern accomplish MBA graduate
program of the International Institute of Management.
171 million UAH production growth
+ 23.6 billion. UAH. * - net profit of 2015
+ 3.3 bn. UAH. * - Transfer to budgets of different
levels in 2015
Cooperation with leading universities of Ukraine, such as Kyiv-Mohyla Academy and Kyiv Polytechnic Institute: The UAV project of KPI is planned to series production
at JSC «Meridian, n. S.P.Korolyov.»
oNe year oF work For tHe arMy 3936 units of new and modernized weapons and equipment, manufactured and delivered to the Armed Forces of Ukraine (which is 36 times more than in the previous period), including:
+2799 units of weapon systems were repaired and restored at the plants, including:
55 crews are organized (unique experience !!) to repair military equipment in ATO zone; restored:
+105 of armoured and special
vehicles
+ 2 686 units of missiles and
ammunition
+605 rocket and artillery units
+ 459 units of communications,
electronic warfare and navigation equipment
+1442 of armored and special
vehicles
641 units of rocket artillery and
equipment
+553 communications equipment
units
987units of armored and special vehicles
+36 units of air defence systems
ato ZoNe eNterPrises: saVeD PoteNtial
SE «Donetsk state enterprise ofChemical products», Donetsk
Branch №1 SE «EF «Artem»Malyn, Zhytomyr region.State Research Institute of Chemicalproducts, Shostka, Sumy region.
military precision weapons
SE «State MakyivkaDesign Institute», Makyivka,Donetsk region.
State Research Institute of Chemicalproducts, Shostka, Sumy region.
production design of special chemicals and ammunition
State Enterprise «Research Institute of integrated automation» Donetsk
SE «Scientific and Production Complex» Iskra»Zaporizhzhya
development and production of radio equipment and systems
SE «Lugansk Aviation repair plant», Lugansk
SE «Lviv State Aircraft Repair Plant», SE «Konotop Aviakon Plant»
repair of engines and major helicopter gearboxes
SE «Chemical State Association of Petrovsky» , Krasniy Luch, Luhansk region.
Shostka state «Zirka» plant, Shostka, Symi region Production of powder for ballistic missiles
ProDuCtioN CaPaCity: restart Import substitution: 11,185 units. mastered (~ 30% of the required total)
Memorandums with Regional State Administrations (on cooperation with regional authorities and solution of import substitution problems), with the following RSA: Lviv Regional State Administration Ternopil Regional State Administration Kherson Regional State Administration Mykolayiv Regional Administration Chernihiv Regional State Administration 12 more state administrations are planning to take part
in the given program
3500 units, mastered by aviation repair facilities (~ 46% of the required amount)
+ 4156 units are planned to master by armored industry enterprises, short and medium term (~ 40% of the required amount)
ProDuCtioN CaPaCity: restart
New developments: guided anti-tank missiles R-3, R-2M complex «Korsar» helicopter missiles «Alta» triaxial survey radar 80K6K1 special combat modules for imported armored vehicles «Saxon» and NMMWV tactical wheeled fighting vehicle «Dozor-B» (mass production)
New BRDM-2DI «Khazar» (armored reconnaissance patrolling vehicles)
Modernized heavy infantry fighting vehicle, based on the T-64
Cooperation for production of the following units: BTR-3 (10 enterprises- participants of the Concern) BTR-4 (13 enterprises- participants of the Concern) BM «Oplot» (8 enterprises- participants of the Concern)
CooPeratioN witH autHorities
More than 30 draft laws of Ukraine, decrees of the Government are prepared, aimed to reform defense industry to meet international standards
13 bills are prepared and submitted to the Chairman of the Verkhovna Rada of Ukraine on National Security and Defence, aimed to develop the defense industry
initiated the approved amendments to the Tax and Customs Codes of Ukraine, allowing to exempt from duties and taxes products (spare parts, and units), necessary for the production of arms and military equipment for the Armed Forces.
ukroboroNProM: FiGHtiNG CorruPtioN
28 agency checks: about 15 administrators were disciplined, 2 were fined Concern terminated employment relationship with 9 General Directors
of the enterprises-participants;
40 cases of information submition to law enforcement bodies: on the basis of material provided, 20 cases were commenced to criminal proceedings.
the illigal transfer of 600 million UAH to 622 contractors, whose activities were provedfictitious and money laundering stopped.
1.7 mln. UAH - the amount of funds, returned in the process of audit.
Since November 2014 electronic workflow was introduced. >50% of the approved list of documents has already been already translated into electronic format.
ForeiGN eCoNoMiC aCtiVity UKROBORONPROM works in cooperation with international partners and has signed agreements of
understanding with foreign partners to deploy production in Ukraine (for example, the letter of intent with the company Lubawa (Poland).
Negotiations with world-class companies are in progress; The Concern took part in all the major world exhibitions (10+), having signed
more than 150 contracts
Ensuring internal needs - establishing a system of import from scratch: + 312 of new partners-suppliers + 37 new contracts for the supply of arms and equipment
Resources for foreign exchange earnings to the country - export: 265 contracts, worth 1 billion US dollars, were signed (+ 17% similar
to the previous period) + 207 new partners-suppliers
Additional regulatory approvals income of 9.7 million US dollars are received due to optimization of regulatory procedures.
Nato: iNteGratioN Representatives of the State Concern, together with the Ministry of Defense of Ukraine, participated in group
meetings of the Conference of National Armaments Directors of NATO (CNAD).
NATO is considering the possibility of participation of the equipment, developed in Ukraine (including «OLIMP-2», developed by the state enterprise «Kyiv Research Institute of Hydrodevices»), in the military naval exercises in 2015.
Cooperation with NATO Agency NSPA
utilization of light weapons and small arms and ammunition in Ukraine (NATO Trust Fund
under the «Partnership for Peace»
participation in matters on logistics and standardization (2015), together with the MOU Trust Fund
negotiations on involving of the Agency in the recovery of lost capacity of ATO zone
NATO Industrial Advisory Group (NIAG)
Specialists of the state enterprises «Scientific and Production Complex» Iskra» were the first of Ukrainian enterprises, joined the study NIAG «combined radar use for detection of air attack.»
In addition, State Concern is actively working on modernization of Ukrainian defense industry products to up to NATO standards. A separate unit was organized within the Concern.
8 companies participated in the project with the working group on NATO Codification AS-135 and have access to the NATO database online.
we Make ukraiNe stroNG!
WE ExECUTE THE TASKS OF THE PRESIDENT: DEFENCE INDUSTRY IS THE ECONOMIC RECOVERY DRIVER OF UKRAINE!
WE BRING TECHNOLOGICAL DEVELOPMENT OF THE COUNTRY TO A NEW LEVEL!
WE ENCOURAGE THE ECONOMIC DEVELOPMENT OF THE COUNTRY!
WE ARE WORKING TO ENSURE PEACE IN OUR COUNTRY!