UVZ CORPORATION: THREE-YEAR IFRS FINANCIAL STATEMENTS

UVZ Group has published its IFRS (International Financial Reporting Standards) consolidated financial statements 2010-2012 for the first time.

The management of the corporation takes it as a main step towards getting ratings from international agencies (Fitch, Moody`s, S&P) in the first quarter, 2014.

It will enhance investment prospects of the corporation and will give access to cheaper financial resources market.

The three-year consolidated financial statements were audited by KMPG – one of the world's largest auditing companies, a member of the "Big Four", along with Deloitte, Ernst & Young and PwC.

OJSC URALVAGONAVOD AND ELECTRO-MOTIVE DIESEL SIGN A MEMORANDUM OF UNDERSTANDING TO CONSIDER OPPORTUNITIES FOR MAINLINE LOCOMOTIVES IN RUSSIA

OJSC NPK UralVagonZavod (UVZ), a leading railway industry manufacturing corporation, has signed a Memorandum of Understanding with Electro-Motive Diesel, Inc. (EMD), a leading manufacturer of diesel-electric locomotives, to examine potential opportunities for the development and build out of mainline locomotives in Russia. Per the MOU, the companies anticipate having demonstration units in Russia for performance and certification testing in 2014.

The MOU also addressed the consideration of a joint engineering team to potentially develop a mainline locomotive model at 4500 BHP using an EMD AC transmission system, EMD 16-710 engine and other EMD service proven components, technologies and designs. EMD and UVZ will also examine adopting a goal to achieve 50 percent local content in Russia for the locomotive build program.

The manufacture of modern, mainline freight locomotives on Russian territory would bring opportunities for incorporating the latest EMD natural gas technologies.

EMD locomotives operate globally on railways in all climate zones, with proven reliability and relatively low lifecycle cost. The companies are working toward signing a definitive agreement in the coming months.

UVZ CORPORATION SUMMED UP THE YEAR

The corporation management held its final meeting with the directors of subsidiaries and affiliates in Moscow, chaired by UVZ CEO Oleg Sienko.

Chief Financial Officer Ruslan Kondrashov reported the expected consolidated receipts of corporation over $2,9 bln. For certain activities the receipts will exceed the plan. For instance, the receipts of "Logistics and Services" branch is $197 mln, that is $60 mln over the plan.

Net profit for the year is expected to exceed $9.1 mln. Thereby the corporation, due to increase of government defense contracts, maintained a positive trend in profitability, despite a significant decline in the rolling stock market both in quantity and price.

The  meeting noted an  important rate of internal cooperation, that indicates formed corporation structure and organized  co-operation between its companies. By the end of 2013 it amounts almost $ 455 mln, whereas five years ago in didn’t exceed $ 30 mln.

During the meeting it was pointed that the corporation strictly fulfills all social obligations stated in collective agreements, including wage growth, which is by the end of 2013 year $1000 on average. Meanwhile, number of employees in 2013 remains at the level of 2012.

The corporation’s main objectives for 2014 were pointed in the report of First Deputy Chief Executive Officer Yury Bodiaev. The planned volume of government defense contracts next year will twice against the 2013 volume. For the division of railway engineering it is planned to produce and sell about 22 000 freight railway cars of all kinds in 2014,  that means not less than 7% increase in sales compared to the current year.

It shows that despite the decline of demand the corporation maintains  the all-time high volume of production of freight railway cars and tanks achieved in the recent years. It was realized partly due to in advanced made decision on establishment and development of the subsidiary railway operator "UVZ –Logistics”.

UVZ also plans to enter new markets in 2014, to increase production of innovative products and line of specialized railway cars, to increase production and sales of trams.

In conclusion, Oleg Sienko, UVZ CEO, noticed that next year is also not expected to be economically easy, but companies of the corporation have everything essential to find new points of increase and keep the dynamical development, based on the achieved positions in the transport and special purpose machinery.

RUSSIA AND VIETNAM FACILITATE COOPERATION

OJSC “RPC “URALVAGONZAVOD” intends to participate in joint construction of a plant for rolling stock assembly in Vietnam.

A Memorandum of Cooperation between Vietnam-Russia Joint Venture Bank and OJSC “Research and Production Corporation “URALVAGONZAVOD” was signed in the presence of the President of the Russian Federation Vladimir Putin and the President of the Socialist Republic of Vietnam Truong Tan Sang on November 12, 2013 in Hanoi, Vietnam. The key point of the Memorandum is facilitating implementation of joint investment projects of UVZ within the territory of Vietnam and bank servicing of these projects by the Vietnam-Russia Joint Venture Bank.

On behalf of the UVZ Corporation the Memorandum has been signed by CEO Mr. Oleg Sienko and on behalf of Vietnam-Russia Joint Venture Bank – CEO Mr. Doan Minh Tien.

UVZ: JOINING EFFORTS WITH KAZAKHSTAN

OJSC “Research and Production Corporation “URALVAGONZAVOD” and JSC “Semey Engineering” (Kazakhstan) have signed a Founders Agreement to establish a joint venture for technical maintenance and repairs of armoured vehicles “UVZ – Semey Engineering.

The agreement has been signed in Yekaterinburg as a part of the anniversary X Trans-Regional Cooperation Forum “Russia-Kazakhstan”. The heads of the two states – Vladimir Putin and Nursultan Nazarbayev have participated in the forum.

JSC “Semey Engineering” is the only facility in Kazakhstan that provides heavy overhaul and modernization of armoured vehicles.

On behalf of the UVZ Corporation the Agreement has been signed by Oleg Sienko, CEO and on behalf of Semey Engineering – by Bakytzhan Seitov, CEO. According to the agreement, there is going to be established a service centre for maintenance, re-equipment and modernization of armoured vehicles and machines within the territory of Kazakhstan. It will supply repair parts, assemblies and subassemblies for armoured vehicles. URALVAGONZAVOD intends to maintain T-72 tanks at this facility.

CEO of JSC “Semey Engineering” Bakytzhan Seitov noted that “our prospective cooperation with Research and Production Corporation “URALVAGONZAVOD” is of high significance for us. It will give us prospects in expanding line of machines that are subject to heavy overhaul and modernization. I am positive that our cooperation will be effective. We will make every effort in order to achieve positive results. This result will develop from instructions of our Governments which we are to fulfil”.

OJSC “Research and Production Corporation “URALVAGONZAVOD” said: “Our role here is defining, because we are the developers of these products. But since the facility will be located within the territory of our partners, we have parity. Each of the parties has objectives, including mutual ones, within the Collective Security Treaty Organization. We owe to help our partners and colleagues increase the defence capabilities of the country. We’ve had a long way to this and we hope that our plans will be put into practice successfully”.

RUSSIAN-FRENCH COOPERATION

UVZ Corporation and French company SAGEM DefenseSecurite (a member of SAFRAN Group) have signed a Strategic Partnership Agreementin the presence of Prime Minister of the Russian Federation Dmitry Medvedev and Prime Minister of France Jean-Marc Ayrault.

The parties have agreed on organizing a long-term strategic partnershipconcerning usage of optonicequipment and other high-tech products produced by SAGEM DefenseSecuritefor UVZ armoured vehicles and artillery systems.

The Agreement was signed by CEO of UVZ Mr.Oleg Sienko and Executive Vice-President, International of SafranMr. Bruno Cotté.

The agreement was signed within the confines of Memorandum of Agreement dated July 27,2012.

During the Agreement signing ceremony the top-managers of Uralvagonzavod and Safran Group expressed mutual interest in long-term strategic partnership and thanked each other.

UVZ TO PARTNER POVETKIN VS KLITSCHKO FIGHT

URALVAGONZAVOD Research and Production Corporation became a partner of the Povetkin-Klitschko fight. WBA heavyweight regular champion Alexander Povetkin met Heavyweight Super World, WBA, WBF, WBO and IBO Champion Wladimir Klitschko in a 12-round fight at Olimpiyskiy Sports Complex.

DMITRY MEDVEDEV HAS HIGHLY APPRECIATED TERMINATOR-2 AND OTHER UVZ LATEST PRODUCTS

Research and Production Corporation “URALVAGONZAVOD” exhibited to public Tank Support Fighting Vehicle “Terminator-2”. The world premiere occurred on the second day of “RAE 2013” exhibition. Prime Minister of the Russian Federation Dmitry Medvedev was the honorary guest at the BMPT-72 unique presentation.  The Prime Minister has also visited the UVZ outdoors display of special equipment, which was the largest full-scale display at RAE 2013 and the demo show.

OLEG SIENKO: RAE 2015 TO SEE NEW COMBAT PLATFORM

The third day of RAE 2013 exhibition was as eventful as the previous ones. The business program continued with discussion of the prospects for the defence industry development. Foreign delegations have visited both the indoor exhibition stand and the outdoor display of the UVZ Corporation and examined the innovative products developed by the facilities of the integrated structure of corporation. UVZ held negotiations with its prospective partners. Besides business meetings, the exhibition has seen significant social events.

One of the main social events was when the Eparchy of Nizhny Tagil received a gift from OJSC “Research and Production Corporation “URALVAGONZAVOD”. UVZ CEO Oleg Sienko presented Bishop Innokentiy of Nizhniy Tagil and Serov with a gift certificate and keys to four-apartment house built for families of young clergymen.

“URALVAGONZAVOD pays attention to its social responsibility. We are aware of the fact that our employees are individuals with diverse personalities, interests and one of the most important aspects of spiritual education is bringing people closer to religion. It’s not only the church who should implement spiritual and moral principles, but also the company”, said Oleg Sienko in his speech.

His Grace in his turn congratulated the corporation on successful exhibition and noted that the exhibition in 2013 is a huge step forward. He thanked Oleg Sienko for the support and kind cooperation, presented him an icon of Christ the Saviour and gave his blessing to Sienko and all the UVZ employees.

UVZ TO DISPLAY 8 NEW PRODUCTS AT RAE 2013

UVZ Corporation presented 8 new products in its extensive line of special equipment at the 9th International Exhibition of Arms, Military Equipment and Ammunition “Russia Arms Expo 2013” that opened in Nizhny Tagil. Being the general coordinator of the salon, UVZ has the largest full-scale display that involves all the special equipment manufacturers of the corporation at the exhibition.

The centrepiece of the new products is Tank Support Fighting Vehicle BMPT-72 also known as Terminator-2 - a breakthrough modernization of the T-72 tank. Presentation of the unique product will take place on the second day of the exhibition. In general, URALVAGONZAVOD Corporation today puts emphasis on modernization of T-72 tank and there are two new designs among the UVZ products - modernized T-72 tanks.

The first one is the modernized T-72 tank with a set of protection equipment for allowing survival of the tank and the crew in urban combat against extensively used anti-tank means including radio-controlled mines and explosive devices. As part of the demonstration program it will use a special kit designed for action in the city to clear away road blocks. Moreover, the tank commander can fire from a protected machine gun.

The second product is the modernized tank T-72 with "Arena-E" active protection system. The active protection system "Arena-E" is designed to protect the tank from anti-tank weapons – LAW rockets, high-explosive antitank projectiles and anti-tank guided missiles including overfly top attack weapons.

One of the most interesting innovations is the model of a heavy wheeled infantry fighting vehicle “ATOM” with a 57-mm automatic turret. It is a joint design of UVZ (OJSC “Central Scientific Research Institute “Burevestnik”) and the French Renault Trucks Defense – one of the world’s leading companies in manufacturing a wide range of tactical vehicles, wheeled armoured vehicles and power units for armoured vehicles. ATOM is designed for troop transportation, shooting from inside the vehicle and dismounted shooters fire support. There is a weapon station equipped with 57-mm automatic turret for location and strike of light armour and soft-target, troops, air threats like UAV, aircrafts and helicopters both at day and at night, on the move or from a stationary position.

For the first time a special fire truck was presented. It was developed by OJSC “Design Office OF Transport Mechanical Engineering” (located in Omsk) using systems of T-72 and T-80 tanks. Its purpose is fire-fighting, accident rescue operations and preventive measures at arsenals, bases and rocket and ammunition warehouses of the Ministry of Defence of the Russian Federation. It can clear passages to points of outbreak of fire, make fire breaks in case of forest fires. This machine is unique because it allows to upgrade old armoured vehicles, and for its technical capabilities. The volume of its water tank is 25 cubic meters - almost a full reservoir. The machine can operate without the crew - in a remote control mode.

Another new product of "Uralvagonzavod" Corporation is a two-section crawler-transporter DT30P1 (OJSC “Engineering Company “Knight” located in Ishimbay) with an exceptional lifting capacity of 30 tons. There is also a 152-mm self-propelled howitzer 2S19M2 (OJSC “Ural Transport Machinery Plant” (URALTRANSMASH) located in Yekaterinburg) with improved tactical and technical performance, increased firing speed of up to 10 rounds per minute, reduced deployment time at the firing position, and also a floating transporter PTS-4 (OJSC “Design Office OF Transport Mechanical Engineering” (located in Omsk) .

Besides the new products Research and Production Corporation "Uralvagonzavod" displays designs that have proven themselves on the world stage.

RUSSIA ARMS EXPO 2013: STEPPING INTO THE FUTURE

Research and Production Corporation “URALVAGONZAVOD” became the general coordinator of the 9th International Exhibition of Arms, Military Equipment and Ammunition “Russia Arms Expo 2013”, which has opened in Nizhny Tagil.

Nizhny Tagil hosts armament exhibitions since 1999, and this year the military salon has reached a new level. Innovation is everywhere: the identity of the exhibition, new and renovated pavilions and presentation centres and new kind of demonstration program.

Deputy Prime Minister of the Russian Federation Dmitry Rogozin inaugurated the exhibition.

“Up until now the Nizhny Tagil exhibition was considered to be an event on a federal scale. Today for the first time the number of foreign participants brings it to a new level. This year Russia hosted many exhibitions of this kind, still RAE is a major international forum. The unique training range gives the exhibition its main distinction from others: besides static display, it allows to show the power of Russian equipment and the development of the domestic defence industry in action”, he said.

Due to the Nizhny Tagil training range features, the demonstration was spectacular, outstanding and as close to real combat. The new program united the show with the demonstration of firing capabilities, special features and mobility of equipment in real combat scenes. This all was supported by unmanned aircrafts and aviation.

All elements of the program are shown in the screens. Viewers can watch the vehicles control systems in action and see the situation on the battlefield through tactical maps. Attached cameras allowed watching the crew inside the vehicles. For those who are unable to visit the exhibition, there is a live webcast in 3D.

The new concept of the RAE exhibition also involves an extended and more efficient business program.

On the first day a plenary discussion "Innovation and quality: a formula for success in the global arms market" was held. It was attended by Deputy Prime Minister Dmitry Rogozin, Sverdlovsk Region Governor Yevgeny Kuyvashev, CEO of OJSC “Research and Production Corporation “URALVAGONZAVOD” Oleg Sienko and others.

In discussion Oleg Sienko said that there is intense competition at the global arms market today. UVZ Corporation is seeking to promote high-quality and more advanced products on the Russian and world arms markets, including within cooperation ties. In increasing competition the corporation will develop cooperation with the world's leading companies.

As a real life example Oleg Sienko mentioned cooperation of UVZ with the French Renault Trucks Defense. They have combined their know-how to develop a prototype infantry combat vehicle of the future – Atom. Each company has contributed 50%. The French party designed transmission, engine and fire control system. UVZ Corporation has developed weapons system. Instead of 30-mm machine guns it got 57-mm automatic gun that can increase the firing distance up to 16 kilometres.

“I’m positive that in the future this vehicle will be in demand and able to meet competition in the global arms market”, Oleg Sienko said.

One more example is cooperation with another French company Sagem in terms of optical systems (thermal viewers) development. We are considering building a joint venture.

Also as part of the business program OJSC “Research and Production Corporation “URALVAGONZAVOD” and Siemens have signed a protocol of intentions concerning the special conditions for purchase and use of software by Uralvagonzavod Corporation and its subsidiaries.

T-90C TO CONQUER PERU

On September 19 a firing range in Peru saw demonstration of the T-90C tank of the Uralvagonzavod produce for Gen. Ricardo Moncada Novoa, Commander-in-Chief Land Forces and 300 officers.

The command authorities of the South American republic were shown the T-90C tank combat and running capabilities by day and at night as well as accuracy of fire with all types of weapons at different ranges from a halt and on the move under conditions of limited visibility and mountainous terrain.

The combat vehicle crew completed all missions successfully having demonstrated high potential of the Russian tank manufactured by Uralvagonzavod.

After the major demonstration one of the Peruvian drivers of the T-55s being in service with the Peruvian Army was offered to “take a drive” of the T-90C tank. After a 5-min briefing, he made a run showing a good skill level and brought the tank to a halt by the Commander-in-Chief. The experiment is a proof that the advanced T-90C tank is as resoponsive and simple as its predecessor T-55 produced by Uralvagonzavod 40 years ago.

Senior officers of the Peruvian Army appreciated the T-90C tank capabilities and the skill of the tank crew members.

RUSSIA ARMS EXPO IN 3D

Russia Arms EXPO 2013 (RAE 2013), the IX International Exhibition of Arms, Military Equipment, and Ammunition to become the world's first fair to feature a live 3D broadcast of military demonstration program. All people whose computers, smart phones, and TVs support the 3D technology will be able to receive a high-quality three-dimensional image online from the battle demonstrations, taking place at the show. The broadcast will be carried out at the Globalmedialine Youtube channel. A link to the live broadcast will be available at:

http://www.youtube.com/playlist?list=PLsLhl4ZDKG3jv9V-9So5z5tl-rCVlI7xF

There you can also find a 4K 3D infomercial about the latest "Uralvagonzavod" products. The 4K format has up to four times the resolution of traditional Full-HD systems that are now considered standard for high definition resolution.

Visitors of the Exhibition will also have a chance to enjoy another technological innovation - latest Glasses-free 3D monitors will be placed throughout the exhibition halls and the stands, allowing all visitors to see the 3D footage. The monitors are built around the so-called lenticular graphics technology that provides a comfortable viewing of 3D images without glasses even at acute angles. It will be the first time in Russia that a 3D live internet broadcast will be combined with a transmission on Glasses-free 3D monitors.

Russia Arms EXPO 2013 is taking place at the Nizhniy Tagil State Demonstration and Exhibition Center of Armaments and Military Equipment of the Nizhniy Tagil Metal Testing Institute (NTIIM). Over a period of four days, participants and visitors of the Exhibition will see the latest and greatest achievements of Russia's defense industry along with the most advanced examples of international military equipment. In general, RAE 2013 will outline a full picture of the priorities, achievements, and future potential of not only Russia's, but the world's defense industry.

RAE 2013: TERMINATOR-2 — WORLD PREMIERE

A world premiere will take place on the first day of the 9th International Exhibition of Arms, Military Equipment and Ammunition — Russia Arms EXPO 2013 (RAE 2013) on September 26, 2013.

Research and Production Corporation URALVAGONZAVOD will present its latest design — Tank Support Fighting Vehicle BMPT-72. BMPT-72 is a breakthrough modernization of the world-famous URALVAGONZAVOD T-72 tank. When designing BMPT-72, engineers relied on experience of creation and exploitation of BMPT, also known as Terminator for its gun power.

Just as its basic model, Terminator-2 is a multipurpose tank and infantry fire support vehicle that can operate in any combat mode, complicated geographic area, light conditions and against any enemy. Still, it has some new features: upgraded fire-control system and turret weapon station protection. The breakthrough vehicle is built on the platform of the most widely manufactured and used T-72 tank.

Given that, the key advantage that BMPT-72 gives to all the counties that operate T-72 tanks, is that they can promptly and at minimum cost upgrade their armies to ultra-modern level, enhance its capacity, mobility, protection and armament without purchasing new high cost machines. Terminator-2 is to premiere in a multimedia lightshow at a 900 m2 presentation centre built especially for that purpose. Foreign visitors and official delegation are expected to attend the presentation.

RUSSIA-INDIA BUSINESS DIALOGUE

On the first day of the St. Petersburg International Economic Forum, Denis Manturov, Minister of Industry and Trade of the Russian Federation and Union Commerce and Industry Minister Anand Sharma participated in a business-dialogue between Russia and India.

They noticed that the two countries are involved in an exclusive strategic partnership, which is based on comprehensive trade and economic and investment relations. The parties have discussed prospective extension of bilateral cooperation and addressed both systemic issues of cooperation and the implementation of specific projects in areas such as energy, industry, transport and communications, IT and high technologies, pharmaceuticals and agriculture.

Oleg Sienko’s, CEO of OJSC «Research and Production Corporation «Uralvagonzavod» participated in the business dialogue. In his speech, he pointed out a serious contribution of the UVZ to the strengthening of cooperation between the two countries. «The Corporation is well known in the Indian market in the field of military-technical cooperation. Still, Uralvagonzavod capabilities and its product range are much wider. In this respect, we are looking forward to the implementation of plans for the development of a mutually beneficial partnership between Russia and India in the civil sphere», Sienko said.

The leader of «Uralvagonzavod» noted that being a leader of the Russian Transport Engineering, the corporation is ready for partnership with the Ministry of Railways of India in terms of expansion and modernization of production facilities. «By using all the latest technology at our disposal, we are able to offer cooperation in joint development and production of freight cars, components of structures and parts production, creating assembly lines,» — said in his speech, CEO of «Uralvagonzavod».

UVZ LAUNCHES CONSTRUCTION OF PLANT IN LATVIA

State officials of Russia and Latvia and managers of URALVAGONZAVOD and UVZ Baltija marked the start of construction of a railway car building plant in Jelgava by immuring a time-capsule with a message to future generations during a formal ceremony.

President of Latvia Andris Berzins, Minister of Industry and Trade of Russia Denis Manturov, Chief Executive Officer of OJSC «RPC «URALVAGONZAVOD» Oleg Sienko took part in the ceremony.

«This plant is more than just a new production facility. It symbolizes renaissance of the whole branch of the machine building industry in Latvia, which is production of freight railway cars. It testifies to the successful synergy of URALVAGONZAVOD technological competence and Jelgavian traditions of machine building»- these are words which make part of the message to future generations signed by the above officials.

The construction of UVZ Baltija railway car building plant designed by a Latvian design bureau is to be completed in 12-15 months in the territory of the former Jelgavian sugar factory. Initially about 200 jobs will be created by the plant of UVZ Baltija. The amount of investment into the project planned by UVZ Baltija will total 20 million euros. This amount includes both construction costs and expenses related to procurement of equipment and technologies. The investment is aimed at creation of a modern production facility which will assemble various types of freight railway cars including flat, tank, hopper, grain cars and a 21-meter-long box car, and will ensure high-quality of the products.

UVZ Baltija has received all the necessary environmental certificates and has submitted the draft project designs to the respective competent agencies. Based on this work a construction permit will be obtained in the middle of June and will enable the company to start zero-cycle construction works. The enterprise plans to put out an international tender for the construction of the plant and the railway siding facilities.

The railway car plant will start operation to its full capacity in early 2015. The plant will be specialized in assembly of railway cars, their maintenance and repair. The assembly target is set at 2000 various freight cars per year, while the turnover target is 80 million lats. The finished products of the enterprise are to be supplied to the Baltic States and the CIS, and in the future to western markets as well.

T-90S: LEFT IN PERU FOR TRIALS

Admiral Jose Cueto Aservi, the head of the Joint Command of the Armed Forces of Peru, has visited the UVZ exhibition stand. At the sand of Research and Production Corporation «URALVAGONZAVOD» Admiral Aservi was interviewed by the Peruvian national television. He said that the Russian T-90 tank was the major exhibit at SITDEF 2013 and its capabilities and capacities deserved the highest possible ratings.

The exhibition stand has also been visited by the Deputy Minister of Defence of Peru retired Rear Admiral Mario Sanchez de Bernardi and Commander-in-Chief Land Forces Ricardo Moncada Novoa. The machine was shown in detailed presentation to military officers and military academy students. The Peruvian military have shown interest in this fighting vehicle for a long time. The Russian tank is superior to foreign machines in terms of price and quality. It shows capabilities and performance that are up to and even surpass the latest models of foreign weapons.

The T-90S is designed for operation in any light conditions and in emergency situations, among its features are high reliability and simplicity of the design of all components, assemblies and systems. Moreover, the cost of training crews and specialists are minimal. Today, T-90 is in service with the armies of many countries. May 17, the third day of the exhibition SITDEF-2013, a delegation headed by the Commander-in-Chief Land Forces of Peru Ricardo Moncada Novoa visited the stand of the corporation Uralvagonzavod for the second time.

Commander-in-Chief personally studied a full-scale working model of the T-90S. Design features of the model of the armoured vehicle were shown in detail. Afterwards, the Commander-in-Chief Land Forces of the Republic of Peru, the OJSC «Rosoboronexport» and OJSC «Research and Production Corporation «URALVAGONZAVOD» had negotiations and as a result, decided to leave the T-90S to show the senior military authorities of Peru.

VLADIMIR PUTIN AND ANGELA MERKEL HAVE APPRECIATED UVZ PROJECTS

Research and Production Corporation “Uralvagonzavod” participates in the International Trade Show Hannover Messe 2013, which was opened on April 8 in Hannover. Uralvagonzavod exhibits its products in two halls simultaneously: at joint stand with the Bombardier and at the stand of the major exposition of the Russian Federation.

On the opening day of this prestigious show the Corporation stands were visited by the Russian President Vladimir Putin and the German Chancellor Angela Merkel. The leaders of two states have shown great interest in the full-scale tram cab Flexity Outlook and the model of the new generation train for the Moscow Metro from Uralvagonzavod and the Bombardier. Vladimir Putin is well aware of the Corporation prospects to produce advanced public transport vehicles jointly. That is why he made explanations to Angela Merkel himself.

Oleg Sienko, Director General of Uralvagonzavod, took active part in a very eventful business programme of Hannover Messe. He was one of the speakers of the Russian-German Business Summit. The main topic of the economic dialogue was high-tech cooperation between the two countries. Research and Production Corporation “Uralvagonzavod” is a partner of several German industrial companies and banks. In particular he spoke of the Uralvagonzavod-Bombardier partnership in creation of the new tram car for Moscow. The partner-companies have won the auction for supply of 120 up-to-date comfortable tram cars for the Russian capital.

Besides, Uralvagonzavod collaborates with the Siemens: last year an agreement was signed to promote life-cycle servicing of the vehicles. This is very important as the Corporation intends to drastically re-equip its production facilities by 2018. It will cost the Russian side about 4 billion Euro. The collaboration of Uralvagonzavod with German companies is not confined by the production upgrade. The Siemens will provide a new polyclinic in Nizhny Tagil with medical equipment as has been already agreed. The construction of the polyclinic is financed by Uralvagonzavod. In conclusion Oleg Sienko, CEO of UVZ, said: Having new equipment and technologies, we all hope to indigenize our joint projects, as it will create jobs and give impetus for the partners to move further. I expect that our relations with the German companies will be expanded greatly, and our meeting at various events like Hannover Messe will bring the economics of both countries closer.

Within the Business Summit, Oleg Sienko, CEO of UVZ and Laurent Troger, President, Services & UK Bombardier Transportation, have signed an agreement governing joint creation of metro cars for the markets of Russia and CIS, and agreement to start joint production and maintenance of metro cars for Moscow. The documents have been signed in the presence of Denis Manturov, Russian Minister of Industry and Trade, and Philipp Rösler, German Minister of Economics and Technology.

RUSSIA AND CHINA STRIKE A DEAL

During the visit of Vice Premier of the People’s Republic of China Wang Yang to the Russian Federation, the founders of «Honghua CIS» Co., Ltd: OJSC «Research and Production Corporation «Uralvagonzavod», OJSC VTB Leasing and Sichuan company Honghua Group Limited signed «Agreement on production of the heavy drilling rigs in the Russian Federation». Within the frame of the signed agreement the parties continue developing a joint Russian-Chinese drilling rig manufacturing and maintenance plant.

The agreement was signed by Oleg Sienko’s, CEO of OJSC «Research and Production Corporation «Uralvagonzavod», Andrei Konoplev, CEO OJSC VTB Leasing and Yuan Hai, Honghua Group Limited Chief Vice President. In accordance to the signed document, the parties agreed to produce 28 heavy echelon rigs at the joint plant from 2013 to 2014.
The planned revenue will exceed 13 billion rubles. Production localization of up to 100% of metal structures and up to 50% of drilling rigs components base in the territory of the Russian Federation is another point of the agreement. In terms of the signed agreement the parties are to arrange the financing of the production, to provide the production facilities, competent engineering staff and support during the certification process.

For information:
OJSC «Research and Production Corporation «Uralvagonzavod» is a Russian corporation that integrates over 30 industrial enterprises, R&D establishments and design engineering bureaus in Russia and Europe. It produces military equipment, road-building machinery and railway vehicles.

OJSC VTB Leasing, established in 2002 is the largest Russian leasing company, that offers a wide range of services throughout the territory of the Russian Federation and abroad. The main activities are large and medium transactions in the railway, aircraft and machinery industries.

Honghua Group Limited — is a Sichuan company that produces petroleum equipment. It was established in 1997. Today it is the largest PRC manufacturer of heavy equipment drilling equipment. It is focused on researching, engineering, production of oil drilling rigs, oil exploration and production. «Honghua CIS» Co., Ltd was established in September 2012 by OJSC VTB Leasing, OJSC «SPC «Uralvagonzavod» and Honghua Group Limited.

The main activity is production of drilling equipment, spare parts and accessories and maintenance services. Production facilities are located at OJSC «Machine building company «Vityaz» (part of «UVZ» corporation) in Ishimbai.

RAE-2013 introduction

During IDEX-2013, Russian delegation introduced Russia Arms EXPO 2013 – IX International Exhibition of Arms, Military Equipment and Ammunition. The exhibition will be held from 25 to 28 September in Nizhny Tagil by Uralvagonzavod.

New rhomb-shaped logo of the Nizhny Tagil exhibition has also been demonstrated. It means tank in military map symbols. Moreover, the official RAE web-site http://rae2013.ru/ has been presented. On it you can find official information about the exhibition, learn about the exhibition centre and terms and conditions.

The presentation was held by UVZ CEO Oleg Sienko, the mayor of Nizhny Tagil Sergey Nosov and Deputy Director of the Federal Service for Military - Technical Cooperation of the Russian Federation Viacheslav Dzirkaln. On behalf of the Government of the Russian Federation I invite you to visit the Exhibition of Arms, Military Equipment and Ammunition in Nizhny Tagil. Manufacturers will demonstrate their achievements there and communicate. And I hope that it will become another step towards joining efforts of military equipment developers and producers, said Viacheslav Dzirkaln.

Being a host of the exhibition together with the Government of the Russian Federation, we will do our best to provide the finest conditions for product demonstration, said Oleg Sienko. The world top shooting range of the federal exhibition centre in Nizhny Tagil is 50 km lengthwise and 1.5 km across. According to guests of the exhibition and foreign specialists, its infrastructure is unique in many ways. 300 Russian companies participate in the exhibition, as well as 20 other countries with more than 40 foreign delegations. Exhibition managers are focused on turning RAE into a large international salon. This is why the exhibition centre is being renovated and infrastructure of it and the city is being developed.

Meanwhile, T-90S modernized tank was for the first time shown in operation at a foreign salon. At high speed it navigated a challenging obstacle course.

UVZ and Renault Trucks DEFENSE signed a cooperation agreement at the International Defence Exhibition and Conference, IDEX.


The agreement has been signed by Oleg Sienko, CEO of OJSC «Research and Production Corporation «Uralvagonzavod» and Gérard Amiel, CEO and President of Renault Trucks DEFENSE. Renault Trucks DEFENSE incorporates Acmat and Panhard. It is a world leading tactical transport, wheeled armoured vehicles and power devices for armoured vehicles manufacturer.

While Research and Production Corporation «Uralvagonzavod» is the largest ground heavy equipment manufacturer in Russia and it produces top-level tanks. The agreement was signed as a result of lengthy negotiations between the two companies. Enhanced cooperation within defence industry between Russia and France and the fact that Russian government is open to “mild” cooperation with the western countries, have also contributed to the developments.

The two companies will establish working groups that will bring together specialists of various fields – primarily, engineers of armoured vehicles, industrial marketing specialists, lawyers and specialists for cooperation between companies of different origins.

UVZ unique designs at IDEX-2013

The International Defence Exhibition and Conference, IDEX, saw Research and Production Corporation Uralvagonzavod demonstrate its leading designs in ground forces and artillery equipment.

The exhibition started on February 17, 2013 in Abu-Dhabi. Denis Manturov, Minister of Industry and Trade of the Russian Federation, opened the Russian exhibit at IDEX and visited the UVZ stand. According to Manturov, the most interesting showpieces presented by the Russian exhibitors were the modernized T-90S tank and the “Terminator” tank support fighting vehicle, designed by UVZ for fighting in the urban area.

The vehicle is equipped with powerful multi-channel armament and it has a protection level of a tank. Mohammed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces was another distinguished guest at UVZ exhibition stand. The 1000 m2 Russian exhibit at IDEX presents about 30 top Russian armament manufacturers.

The UVZ stand takes up 80 m2 of indoor space and 252 m2 outdoors. For the first time UVZ lets any visitor try on the role of a “Terminator” commander, aim the turret, choose and aim a gun vertically. This unique opportunity is provided by a module that remotely controls all the armament in the tank support fighting vehicle.

The module was built by Ural Design Office of Transport Mechanical Engineering that belongs to the UVZ Corporation. Central Research Institute “Burevestnik” is also represented at the UVZ stand. The stand emphasizes that “Burevestnik” is focused mainly on naval products. “Burevestnik” exhibits a model of 1I37E-2 CTV Check & Test Vehicle and for the first time – full-scaled 82mm 2B24 and 2B25 Mortars. The portable mortar 2B24 is by key parameters superior to similar Russian and foreign products. For instance, compared to previous models, shooting range of 2B24 is extended 1.5 times. Advanced materials made it lighter, safer and easy to use, allowed more mobility and unfailing performance. For Special forces “Burevestnik” developed a 2B25 Mortar, which is highly efficient and completely stealth (shots are noise-, smoke- and fire-free).

UVZ engaged with the Republic of Bashkortostan

The government of Bashkortostan and the founders of Honghua CIS LLC (OJSC «Research and Production Corporation «Uralvagonzavod», OJSC VTB Leasing, Sichuan company Honghua Group, signed a Memorandum of Cooperation during Oleg Sienko’s, CEO of OJSC «Research and Production Corporation «Uralvagonzavod» business visit to the Republic of Bashkortostan.

According to the document signed in Ufa, the parties are to provide favourable environment to create a rig manufacturing and maintenance plant for oil and gas exploration and development, using Bashkortostan facilities. As a part of the investment project, Honghua CIS LLC will locate its production facilities at OJSC «Engineering Company «Knight» (a part of UVZ Corporation) in Ishimbay.

At current an engineering project of the plant and a construction plan are under development. Aside from positive economic effect such large scale investment project will bring to Bashkortostan social significance. It will create new well-paid jobs and provide decent working conditions. The President of the Republic of Bashkortostan Rustem Khamitov stressed: «I am twice as happy to discuss today implementation of the project that will be located in the Republic of Bashkortostan. I would like to notice straight away that for us, for the government agencies of the republic, it is a very significant and interesting offer... We know that we will have to work closely together. I have no doubt we will carry out this project. I am sure the project will be a success. I see it that such a strong, large, powerful constituent unit as Bashkortostan will do its best to accelerate the project. I would like to thank you, Oleg Viktorovich, for choosing our republic as a location for this project. I thank your colleagues, who work with you today. I hope that we will have the first results in 2014.»

«The key point here is developing Ishimbay facility, which produces tracked vehicles. We have planned a project for heavy rig production and assembly for oil and gas industry and have already started it. We have outlined ways and we work as planned. This spring we start working at the production site to execute the project. Of course, this is a crucial step. It is important that everybody involved is ready for it, because it determines the success of the project», said Oleg Sienko, CEO of OJSC «Research and Production Corporation «Uralvagonzavod». «We expect yearly turnout to equal 9 billion roubles. We set such standards for ourselves. At first, it will be a localized assembly plant. We do not indent to wait. We already receive requests from leasing companies, such as OJSC VTB Leasing. We already participate in auctions and tenders held by oil companies, Rosneft, for example», Oleg Sienko said.

UVZ Year-end meeting

UVZ CEO Oleg Sienko held end of the year meeting of the corporation executives and directors of its subsidiaries and affiliates in Moscow.

UVZ as anticipated showed high financial and economic performance in 2012. Expected revenue will be up to $4.083 billion, including other affiliates, it will exceed $6.514 billon. EBITDA will equal $660.944 million, EBITDA margin — 16.2%, and net income — $394.983 million. In 2012 the Corporation shows high growth rate: sales revenue is 44% higher, compared to 2011, profit on sales is 21% higher, net income is 26% higher.

Over the last three years (2010-2012) UVZ has doubled its key figures (revenue, EBITDA, net income). UVZ is expected to own 38.8% of freight cars manufacturing market share in Russia and 23% in CIS. In 2012 UVZ produced and sold about 28 000 rolling stock units, which is 12% higher than what has been planned for 2012.

The Corporation won a $225.806 million tender for 120 tram cars supply for Moscow. They will be manufactured in 2014-2015 jointly with Bombardier Transportation at OJSC «Uraltransmash». This will be an impetus for the corporation in terms of urban rail transport production, according to UVZ top managers. In 2012 80% (compared to 67% planned) of sales pattern was export of military products, which contributed to over-fulfilling main financial and economic plan of the Corporation. Investment amount in 2012 is more that 30% higher in 2011.

UVZ provides steady rise in labour productivity. Among industrial enterprises in 2012 this figure is expected to equal $78 827, which is 32.2% higher compared to 2011. Generally, in 2012 «Uralvagonzavod» Corporation showed high production rates and financial and economic performance. Defence Procurement and Acquisition for 2013 is estimated to be 1.5 more than in 2012.

At the end of the meeting Oleg Sienko, CEO of OJSC «Research and Production Corporation «Uralvagonzavod», said that global and domestic economy is expected to face challenges in 2013. Still, according to Sienko, the Corporation is prepared for difficult economic conditions by cost saving, increasing labour productivity and diversifying its product line.