JSC United Aircraft Corporation Company Overview Areas of research and technology interest

Company United Aircraft Corporation (UAC or the Company) at the moment of preparation.
Some of the information in this presentation may contain projections or other forward-looking statements regarding future events or future operating
The Company does not intend to or undertake any obligation to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.
Technical data and engineering aspects are for the reference and should not be treated as the absolute information.
All data presented are limited for further distribution
The official information in case of interest should be requested from UAC Department on Public Relations and Media

stock companies was approved by President Decree as of August 4, 2004 No. 1009 ‘On the approval of the list of strategic enterprises and strategic joint stock companies’
** Federal Agency for State Property Management
Source: UAC

JSC “ United Aircraft Corporation” was incorporated for the purposes of Russian aviation industry efficient development according to President Decree as of February 20, 2006 No. 140 ‘On Joint Stock Company United Aircraft Corporation’. UAC is on the list of strategic enterprises of the Russian Federation*
Company’s priorities:
Design, manufacture, sales, operation maintenance, guarantee and service maintenance, upgrading, repair and utilization of military, civil, transport and special purpose aircraft for Russian state and private customers as well as foreign customers, and new technologies implementation for the aircraft construction industry
Primary objectives:
Performance efficiency improvement by means of assets consolidation and restructuring; state and private customer orders execution; product line development; market share increase; human resources and social policy development, investment in human capital; corporate governance system improvement
Key performance indicators in 2007-2011:
Revenue – approx. RR 567 bln (IFRS), including RR 162 bln in 2011
378 aircraft delivered, including 102 aircraft in 2011
Brends: ‘Su’, ‘MiG’, ‘Il’, ‘Tu’, ‘Yak’
Headcount: over 92 thousand people

aircraft production plants produced over 150 civil aircraft and over 620 military aircraft per year
The 1990s reforms lead to assets privatization and fragmentation, and R&D reduction
JSC UAC was incorporated in 2006 for the purposes of Russian aircraft construction industry development

shares with nominal value of RR 1 per share
UAC shares are listed on MICEX on the quotation list B
(ticker: UNAC)

Shareholding Structure

Comments

Vladimir A. Dmitriev
(Chairman)

Boris S. Alyeshin

Yuri I. Borisov

Oleg F. Demchenko

Iliya V. Eliseev

Alexander N. Zelin

Andrey N. Klepach

Evgeny V. Lyamtsev

Valery M. Okulov

Mikhail A. Pogosyan

Vladislav N. Putilin

Andrei G. Reus

Yuri A. Soloviev

Sergey V. Chemezov

Development of competitive civil aircraft product line relative to foreign counterparts
Dynamical increase in sales of civil aircraft segment and its share of the Company’s consolidated revenue
Gaining parity positions in selected-for-positioning niches of the open foreign civil aircraft markets
Increase in the world’s civil aviation market share to 5% in the medium term, and to 10% till 2025

МS-21 is Company’s perspective strategic project designed for the purposes of market presence expansion

Aircraft

Su-27/30/34/35

MiG-29/35

PAK FA

Тu-160

Yak-130

Priorities:
Increase in the share of deliveries for domestic market out of total Company’s military deliveries
Satisfying the requirements of state customers
Maintaining parity with American and European vendors in third countries’ military aircraft markets
Maintaining 15% world market share by means of annual deliveries increase

PAK FA is a perspective fifth generation fighter

Transport Aircraft

Heavy Transport Aircraft

Special Purpose Aircraft

Тu-204/214

MTA

Il-96

Il-76

Be-200

Priorities:
Increase in the share of transport and special purpose segments revenue of the Company’s consolidated revenue
MTA is a multirole transport aircraft developed within the framework of the Russian-Indian intergovernmental agreement
Be-200 is a multipurpose amphibian aircraft designed for suppressing forest fires, search and rescue, ecological monitoring, passenger/ cargo transportation

Аn-124

resource efficiency increase
Innovative development
Annual revenue growth (CAGR +20%)
Positive dynamics in financial results since 2009

Aircraft production and deliveries increase
International projects in civil, military and transport aviation
SSJ-100 development and production launch
МS-21 development
serial production of short-haul civil aircraft Аn-148
Serial production of “4++” generation fighters,
combat trainer aircraft Yak-130
PAK FA trials

UAC is committed to provide transparency for its shareholders and investors:
UAC discloses consolidated financial statements for the year in accordance with IFRS
UAC plans to disclose half-year consolidated financial statements
UAC discloses consolidated annual report for the year
UAC enhances corporate governance level
Company’s Management participate in press conferences and are open for mass media representatives
UAC and its companies publish news releases for mass media and investment professionals

Organizational structure and financials:

Product line:

by production volume

Transfer to target integrated structure
Global outreach
Satisfying the requirements of state customers
Balanced and diversified product portfolio
Manufacturing competitive products relative to foreign counterparts
Building 3rd aviation industry center
Creating conditions for government and private investment attractiveness
Providing advanced Russian aircraft performance and economic level

UAC’s long-term objective is to become one of the world’s largest aircraft construction centers with a broad diversified product portfolio
#3 aircraft manufacturer in the world
10% share in the world’s civil aircraft construction market
12-15% share in the world’s military aircraft construction market
Civil aircraft construction segment’s revenue → 40% of Company’s consolidated revenue

Program primary objective

Developing competitive aircraft industry and becoming #3 player in the world’s aircraft construction market*

Program issues
Creating a world level manufacturer in key aircraft construction segments
Designing advanced technologies to gain world leadership in aviation technology
Improving regulatory framework of aircraft construction industry
Human capital development in aircraft construction industry
Promoting Russian aircraft products in domestic and foreign markets, leading foreign industry players’ manufacturing allocation and import substitution

share of the world military aircraft market in 2011

2011 civil aircraft deliveries in Russia

Military aircraft deliveries for the Ministry of Defense of the Russian Federation are planned according to the State Armaments Program till 2020 and State Military Order for 2011-2013. The requirements are increasing in terms of delivery volumes and product range
The Company successfully fulfilled the state order for military aircraft in 2012

Domestic market military aircraft deliveries

2007-2011 (IFRS), RR bln

Revenue and gross profit margin

Operating segments

UAC’s reportable segments:
Sukhoi holding (development and production of military combat aircraft and development of the civil aircraft programme SSJ-100)
- over 45% of total revenue for 2011
Irkut Corporation (production of military combat aircraft, development of the training military aircraft Yak-130 and civil aircraft programme MS-21)
- over 25% of total revenue for 2011
Other units (designing and manufacturing of various types of aircraft, repair and maintenance of existing civil and military aircraft produced in Russia and the former Soviet Union)
- over 25% of total revenue for 2011

technology \ manufacturing technology \ Services
Innovation Development program introduced aimed to incorporate the advance technologies to ensure high level of product quality.

RESEARCH for KEY AVIATION PROGRAMS

NG

MS-21

SSJ – 100

Source: UAC
* by deliveries

2020 Program

structure

Composites in SSJ 100 structure

structure\detail\component

Certification

Testing

Operation

Advanced materials

materials, their modifications, an perspective materials for future application:
Material qualification
Improvements for epoxy characteristics
Improvements for impact damage properties
Special Qualification tests
Test for repairs technologies while AC operation
Nano-composites
QMS for materials
Improvements for environmental effects and time-related degradation of properties for composite materials

modeling
Defects in manufacturing
Defects \damage propagation
Impact damage growth\ development scenarios
Probability modeling for damages
Time-related degradation modeling of properties for composite structures
Repairs behavior modeling

Math modeling for structure\detail\component

for manufacturing primary structures: recommendations, optimization, requirements for equipment etc
Modeling of manufacturing processes, optimizations
Requirements and recommendation for the given process
QMC System and procedures
CPRF Materials advanced technologies
Technical requirements for detail\part manufacturing.
Manufacturing standards, certification.
CPRF details mechanical processing
Detail design optimization, multidisciplinary design (including smart structure)

Composite structure manufacturing

, overall
Issues on methods and analysis to substitute certification tests
FAA \EASA related requirements for composite structure : practice , experience, forthcoming requirements
QMC System and procedures

Certification

etc
Material special qualification tests

Testing