Russian Helicopters Announces 16% EBITDA Increase, 21% Growth in Revenues in 2012

Moscow, Russia /28^th March 2013–Russian Helicopters, JSC, a leading global designer and manufacturer of helicopters, and producer of some of the world’s most innovative and widely operated models, announces its consolidated operating and audited financial results for the year ended 31 December 2012 under IFRS.

•    Helicopter deliveries increasedby 10.7% and reached 290units;

•    Firm backlog totaled 817 helicoptersas of 31 December 2012;

•   Revenue grew by 21.0% to RUB 125.7billion;

•  BITDA[1]rose 16.0% to RUB 20.8billion, representing a solid EBITDA margin 

   of 16.6%;

•   Profit increased by 35.2% and totaled RUB 9.4billion.

RUB, million	2012	2011	Change, y-o-y (%)
Revenue	125,749	103,938	21.0%
EBITDA	20,823	17,957	16.0%
EBITDA margin	16.6%	17.3%	-0.7pp
Profit	9,442	6,985	35.2%
Helicopter units
Deliveries	290	262	10.7%
Firm backlog	817	859	-4.9%

Dmitry Petrov, CEO of Russian Helicopters, said, “Last year was another year of steady growth and successful achievements for the Company. We continued to increase deliveriesto our customers, which demonstratesthe growing global demand for our helicopters. In 2012we delivered 290 helicopters of nine different types to our clients from 19 countries – a 10.7%increase compared to the previous year. We maintainedour firm backlog at a high level; at the end of the year the backlog stood at 817 helicopterswith a value in excess of RUB 350 billion. During 2013 we will continue to focus our activities on key strategic areas: we will continue to modernize and diversify our model range, to develop our aftermarket service network and to increase operational efficiency.We aim to further strengthen Company’s global market position, and ensure its further dynamic growth and steady development.”

2012 Full Year Financial Highlights :

The Company’s consolidated revenues in 2012 totaled RUB 125.7billion, an increase of 21.0% compared to RUB 103.9 billionin 2011. This was driven primarily by growth of 10.7% in helicopter deliveries. Revenues from helicopter sales amounted to RUB 99.0 billion in 2012, while revenues from services and support reached RUB 18.4 billion.

Cost of sales increased by 26.3%compared to 2011 and amounted to RUB 79.9 billion in 2012. Operating expenses increased by 18.2% year-on-year and totaled RUB 30.6 billion.

EBITDA rose 16.0% year-on-yearand reached RUB 20.8 billion in 2012. EBITDA for the helicopter sales segment amounted to RUB 15.4 billion, and EBITDAfor our services and support segment amounted to RUB 4.2 billion.

The Company’s profit grew 35.2% year-on-year and totaled RUB 9.4 billionfor the year.

Cash CAPEXslightly decreased by 5.5% compared to 2011 and amounted to RUB 13.0 billionin 2012,including investments in production facilities of RUB 7.6 billion, a decrease of 16.4% compared to 2011.

Russian Helicopters’ development costs increased by 16.1% compared to 2011 and amounted to RUB 5.3 billion in 2012. The Company continues to pursue a strategy designed to foster innovation.

2012 Full Year Operating Highlights :

Helicopter deliveries in 2012 increased to 290 units, 28 unitsor 10.7% up compared to 2011. The Company delivered nine types of helicopters to clients from 19 countries in 2012.

The Company’s firm backlog reached 817 unitsand its value exceeded RUB 359.9 billion in 2012. In 2012 the Company signed several significant contracts for the supply of helicopters in 2012-2016with India, China and Brazil. The delivery plan for 2013 is 100% secured with firm orders.

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