OF PJSC UAC
The UAC Group of Companies was established over a decade ago to consolidate the efforts of the Russian aircraft manufacturing and engineering companies.
Today we can safely say that we have delivered on this objective. In place of the rival Soviet-style ‘enterprises’ we now have a solid corporation with shared goals, transparent governance and a well-defined structure.
In the reporting year we worked further to consolidate the success. In particular, we implemented the decisions of the Board of Directors to create four Divisions within the Corporation corresponding to its four areas of business: the civil, military, transport and strategic, and special-purpose aircraft. I strongly believe that streamlining the UAC’s structure will ensure increased transparency, improved operational efficiency and enhanced aircraft programme management effectiveness. In addition, it will facilitate the concentration of engineering and intellectual resources and the reduction of transaction and non-manufacturing costs through the centralisation of management, in particular, as the result of greater coordination in performing the obligations on building new aircraft. Ultimately, we expect that the steps we take will enable us to make a more valuable contribution to ensuring the country’s defence, and also to improve the UAC’s global competitiveness.
While in 2015 and 2016 we focused on developing and making first progress on our strategy in the new geopolitical realities, in 2017 the Corporation really gained momentum in implementing the provisions of the updated strategy. The Board has actively contributed to the Corporation’s development. The UAC’s corporate governance system that relies on the current legislation and builds on the best practices of Russian and foreign companies makes it possible to timely detect and addressthreats, as well as to identify and use growth opportunities. All Board committees, i.e. the Strategy Committee, the Audit Committee, the Budget Committee, the HR and Remuneration Committee, also worked very intensively in the past year, and the Board itself made every effort to assist the Corporation.
The goals for 2018 and beyond include a number of very ambitious tasks that will require even greater concentration of effort and resources. We will do our best to facilitate the Corporation’s long-term growth and the strengthening of its position in the global market, and to ensure that the UAC’s products contribute to enhancing strategic stability and improving the standards of living.