Chemezov reports to President of Russia on Rostec 2021 performance
Sergey Chemezov, CEO of Rosteс State Corporation, presented the Company’s 2021 annual report to Russian President Vladimir Putin. One of the key achievements of the Corporation is a 9.9% increase in its consolidated revenue, which amounted to 2.06 trillion rubles in 2021, and an increase in the share of civilian products in its sales mix, which amounted to 45.5%.
In monetary terms, sales of civilian products generated over 900 billion rubles. This result is due to the implementation of large-scale projects in aviation and engine construction, automotive manufacturing, electronics and IT, health care, and other areas.
The consolidated net profit of the Corporation increased by 47% to 163.5 billion rubles, while its EBITDA was up 18.3% and amounted to 334.9 billion rubles. The output per employee was 3.5 million rubles (+ 9.5%).
Rostec always pays special attention to technological advances and the development of new products. In 2021, the Corporation’s enterprises registered 834 patents and 474 know-how and developed more than 230 innovative products. The total investment in R&D reached 170 billion rubles.
More than 70 technological modernization projects were implemented. Among other things, the Company upgraded the facilities producing helicopter engines of the VK-2500 family in St. Petersburg and the enterprises of optical industry in the Vologda and Novosibirsk regions.
Sergey Chemezov mentioned several premieres of the last year as the most memorable projects in the aviation industry – a prototype of the Checkmate light tactical aircraft, the Okhotnik UAV with a flat jet nozzle and the Mi-171A3 offshore helicopter for servicing fuel and energy facilities.
The Company also received the certificate for the series production of PD-14 engines in 2021, tested the aircraft equipped with the power plant of this type under the MC-21 program, and its first MC-21 with the “black wing” made of domestic composite materials took off for the first time.
Reporting on the achievements of the engine industry, the head of Rostec also spoke in detail about the first Russian marine diesel-gas turbine unit M55R, which is supplied in series for the “Admiral” frigates of Project 22350 under the import substitution program.
“Rostec is celebrating its 15th anniversary this year. The Corporation approaches this date with renewed vigor and a substantial margin of safety. Let me remind you that Rostec made about 511 billion rubles in revenues in 2009. Last year, the Company passed the 2 trillion ruble milestone, an almost fourfold increase. We ensured almost 100% fulfillment of the state defense order. At the same time, more than 45% of the revenues came from civilian production, which is a record achievement for the defense industry. Our next target is 50% by 2025. First and foremost, we are talking about industries that are of vital importance to the state, such as aircraft and automotive engineering and manufacturing, engines, electronics, new materials, and healthcare. For the Corporation, it is not just a business task, it is our responsibility before the country,” CEO of Rosteс State Corporation Sergey Chemezov said.
The head of Rostec elaborated on the latest developments for healthcare. Among them are the Aventa-Vita portable ventilator, the SLE 6000 lung ventilation apparatus for newborns and the Oxypolus device which produces medical grade oxygen from ambient air.
Among the significant achievements, the head of Rostec also named the delivery of more than 100 million sets of vaccines against COVID-19 and the market launch of a new anti-coronavirus drug, COVID-globulin, which has been used to treat patients in the country’s hospitals since 2021.
Sergey Chemezov stated that Rostec views its employees as its main asset. Over the year, the Company’s expenses for social benefits provided to its staff (voluntary medical insurance, health resort treatment, corporate sports activities, etc.) increased by 13% from 10.8 to 12.2 billion rubles. This includes about 1 billion rubles for the housing program to help the company’s employees buy new homes.
Rostec also continues to set up a non-state pension system. The average salary in the Corporation’s organizations increased to 61.600 rubles in 2021, which is 14% higher than the national average salary.