The state concern " Ukroboronprom" gives a summary of company's results for the past year under the current management team.

1. First year of work: results
04.07.2014 - 04.07.2015

2. NEW MANAGEMENT
Roman Romanov
UKROBORONPROM Director General
Appointed on July 4, 2014
20+ years’ experience in various
management positions, both in
business 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:

3. ECONOMIC INDICATORS
11.2* bln. UAH.
in goods produced
+5 000
new jobs
2.7 bln. UAH
in 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»

4. 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.

5. 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.»

6. 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
987
units of armored and special vehicles
+36
units of air defence systems

7. ATO ZONE ENTERPRISES: SAVED POTENTIAL
SE «Donetsk state enterprise of
Chemical products», Donetsk
Branch №1 SE «EF «Artem»
Malyn, Zhytomyr region.
State Research Institute of Chemical
products, Shostka, Sumy region.
military precision weapons
SE «State Makyivka
Design Institute», Makyivka,
Donetsk region.
State Research Institute of Chemical
products, 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

8. 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)

9. 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)

10. 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.

11. 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 proved
fictitious 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.

12. 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.

13. 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.

14. 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!