Rostec CEO Sergey Chemezov presented the company's annual report for 2022 to Russian President Vladimir Putin. Among the key achievements of the State Corporation are an increase in consolidated revenue and investments, an increase in production volumes for the defense industry, the release of new samples of military and civilian products.
Corporation in dynamics
The year 2022 was an anniversary in the history of the State Corporation: on November 23, it celebrated its 15th anniversary. During this time, the company has come a long way in its development. "Over these 15 years, we have grown, today the Corporation includes about 800 scientific and industrial associations in 60 regions of the country, thousands of different products, including military and civilian, are produced," Sergey Chemezov notes.
When the Corporation was created, in 2007, Rostec was transferred 443 enterprises, of which 148 were in crisis, 28 were in bankruptcy, 17 did not carry out their activities, and 27 partially lost their property or had significant risks of its loss. Production chains at enterprises were destroyed, fixed assets were worn out. In 2009, when submitting the first consolidated report, the revenue of the State Corporation was at the level of 511 billion rubles, and the loss was 64 billion rubles.
15 years later, in 2022, the State Corporation brought the country's industrial production to a new level, revenue increased to 2116 billion rubles, and net profit – up to 39 billion rubles, and this despite sanctions, disruption of component supplies and non-fulfillment of their obligations by Western suppliers. A year earlier, in 2021, the company's net profit reached 163 billion rubles. The decrease is primarily due to the priority in the implementation of the state defense order (GOZ), which has grown significantly in connection with the conduct of a special military operation. According to Sergey Chemezov, the profitability of GOZ is low, sometimes even negative: "The losses that we incur, we cover at the expense of civilian products that we already have today, and we can use this to tighten the financial component to be in the black."
The share of civilian products in the Corporation as a whole in 2022 was 44.5%. This is less by one percent than in 2021, which is explained by an increase in GOZ, although in absolute numbers civilian products still increased: in 2021, its share was 939 billion rubles, and in 2022 - 942 billion rubles.
In 2022, Rostec increased investments by 20.6%, the volume of which in absolute figures reached 292 billion rubles. Basically, these funds were used for technical re-equipment, expansion of production, creation of new products.
The struggle for personnel
Today Rostec is one of the three largest employers in the country: the total number of its employees is 591.6 thousand people. In 2022, the Corporation's holdings conducted an additional recruitment, not only for defense enterprises, but also for implementing large civil projects, primarily in the field of aircraft construction, IT and the radio-electronic complex. At the same time, the increased pace and volume of production require the emergence of new workers. According to Sergey Chemezov, this year the Corporation will need to recruit another 23 thousand people in addition to the annual standard staff requirements.
The country's leadership is taking serious measures to attract new specialists. In particular, in 2022, the government decided to increase the average salary at defense enterprises by 10% in relation to the average salary in the regions. At the same time, the salary of Rostec employees increased even more – by 17.2% compared to 2021. According to the CEO, this is due to the fact that many enterprises of the Corporation worked on weekends and holidays, as well as at night. Thus, according to the results of 2022, the average salary in the Corporation reached 72.2 thousand rubles. For comparison, the average salary in the country is 65.3 thousand rubles. Output per worker also increased by 2.5% compared to the previous year.
To attract employees, the Corporation offers a competitive social package, including additional medical insurance, financial assistance, housing program, non-state pension provision and much more.
Execution of the State Defense Order is a priority
Rostec's main task is to ensure the security of the Russian Federation: about half of the entire state defense order of the country rests on the shoulders of the State Corporation. And Rostec is successfully coping with it: last year, the state Budget was fulfilled by 99.5%. For this purpose, the enterprises have increased production for all types of military products, which are massively involved today in the course of their own, including switching to a round-the-clock mode of operation, in 3-4 shifts.
According to Sergey Chemezov, 90% of the products used during the SVO are manufactured by Rostec. First of all, these are barrel and rocket artillery, light and heavy armored vehicles, attack and transport helicopters, combat aircraft, heavy fire systems, small arms, all types of ammunition. The State Corporation provides the army with BMP-3, amphibious BTR-MDM, T-90 "Breakthrough" tanks, Iskander missile systems, Kinzhal hypersonic aviation missile systems, Ka-52, Mi-38 helicopters, Su-57, Su-35S fighters, Kub and Lancet drones, anti-UAV complexes. "All this equipment has proven itself superbly in today's fighting," says Sergey Chemezov. Rostec closes all the volumes that are required for the Ministry of Defense today completely, and in some positions even ahead of schedule.
In 2022, new capacities were put into operation for the production of the Su-57 multifunctional fifth-generation fighter, the Il-76MD-90A heavy military transport, the upgraded Tu-160 strategic supersonic missile carrier aircraft, aviation optoelectronic devices, special chemical products, as well as for testing aircraft complexes with unmanned aerial vehicles. Such steps led to the fact that the production of military aircraft in 2022 was doubled.
Developments in the civil sphere
Despite the growth in the production of defense products, Rostec does not slow down when creating civilian goods. Recall that the State Corporation faces a strategic task – to increase the share of civilian goods in total production to 50% by 2025. In this regard, Rostec enterprises demonstrated a number of unique solutions in 2022. In particular, the pharmaceutical holding "Natsibio" brought to the market a new drug for the treatment of immunodeficiency "BioGam" − the first domestic intravenous immunoglobulin. The drug is used as a replacement or immunomodulatory therapy, for example, for HIV infection, for the treatment and prevention of infectious diseases, as well as for organ transplantation.
Another development is the GTA–8 power plant for offshore production platforms, created by the United Engine Corporation. The unit is resistant to extreme conditions, can operate in the range from -50 to +50 °C on both gaseous and liquid fuels.
Achievements in the field of medicine include electron beam computed tomography, which is necessary for the study of internal organs by X-ray radiation. The equipment provides an opportunity to study in detail the structure of tissues and organs. Initially, the project was conceived as an international one, many countries participated in it. Due to the sanctions, the Corporation's engineers were forced to carry out extensive research and development work on the localization of the tomograph, which today reaches 25-30%. By 2026, this indicator should be at the level of 60%, and by 2029 - 90%. At the same time, Rostec specialists plan to launch the production of up to 100-150 tomographs per year.
A significant event of 2022 for domestic air carriers was the transition to the Russian Leonardo ticket booking system, developed with the participation of Rostec.
Previously, all booking systems were foreign, mainly American and European. Accordingly, all information about the movements of Russian citizens both inside the country and abroad was fully known to the creators of these systems. In addition, the risk of disconnecting Russian air carriers remained.
To eliminate these risks, the Russian Leonardo system was launched as soon as possible in 2022, and today all Russian carriers, including Aeroflot, Pobeda and others – more than 60 in total, work with the Rostec system. About 5 million passengers are registered in the system every month. All the usual operations with tickets and other functions are available in Leonardo: sale of additional services, check-in at airports, work with loyalty systems, and so on.
Separately, it is worth noting the "Honest Sign" product labeling system. A lot of work has been done in this direction in recent years. The system is already operating in Russia and five Union states with a total population coverage of 220 million people. Labeling applies to 10 product categories − medicine, dairy products, water, shoes, light, fur industry, tires, perfumes, photographic equipment, tobacco products, and in April of this year the labeling of beer began. There are already 570 thousand companies operating in the Russian system, all the country's cash registers are connected.
The result of the introduction of the labeling system was a decrease in the volume of illegal turnover of products and an increase in tax revenues to the budget. Approximately since the launch of the program, from 2019 to 2022, the budget has received 435 billion rubles.
One of the most innovative developments was also the facial recognition system developed by NtechLab in partnership with Rostec. It was first launched in 2018 at the FIFA World Cup. In 2021, the NtechLab facial recognition algorithm was recognized as the most accurate in the world.
Today, the system is used in 40 cities of Russia, while the detection rate of serious and especially serious crimes increases to 90% and higher, apartment thefts decrease significantly. In 2022, the company implemented projects in 36 countries, the Rostec system was used at the FIFA World Cup in Qatar. The widespread implementation of the system will significantly improve the security situation, including in the framework of anti-terrorist measures. However, there is not enough support at the state level to promote the program in friendly countries.
Aircraft and helicopter construction
Rostec pays special attention to the development of the domestic aircraft industry, an industry critically important for the country's technological security, where Rostec is one of the world's leading players.
For the domestic aircraft industry, 2022 is significant because the Government of the Russian Federation has approved a program for the development of the air transport industry until 2030. According to the plans, in 2024 Rostec will launch serial production of import-substituted Superjet 100. This aircraft will be almost completely assembled from Russian components: Russian PD-8 engines, domestic avionics, etc. 20 such machines will be produced annually. Rostec will also produce MS-21 and Tu-214 airliners – all these aircraft are in demand by Russian airlines, since the retirement of foreign models requiring major repairs will begin in 2025.
The State Corporation has made significant progress in the helicopter industry. For example, in 2022, the new Mi-171A3, demanded by fuel and energy companies and adapted for rescue operations in the Arctic, made the first full-fledged test flight and the first intercity flight.
The first flight with VK-2500PS-02 engines was made by a modernized Ka-32A11BC helicopter capable of extinguishing fires at subzero temperatures. The new engine will increase the stability and safety of helicopter control in strong crosswinds, including in high–altitude conditions.
In total, in 2022, the Russian Helicopters holding company produced 296 vehicles compared to 134 in the previous year. At the same time, it should be recognized that the main incentive for increasing production was the increased state budget – more than twice as many military helicopters were produced compared to 2021.
Educational activities
The State Corporation pays great attention to education, training and retraining of personnel. Together with more than 300 universities and secondary specialized educational institutions, it implements more than 400 general education programs. With the participation of Rostec, 130 basic departments work, three training programs have been developed: for the aviation industry − the Wings of Rostec project (the basic university is MAI), for the radioelectronic industry and the IT security sphere – Rostec Code (the supporting universities are MIREA and SFU), for the production of medical and optoelectronic equipment - "Rostec. Biotechmed" (the main university − Bauman Moscow State Technical University).
Currently, about 600 students are studying in several areas under the Wings of Rostec program, which started in 2020, and taking into account the new enrollment in 2023 – more than 1000. The purpose of the program is to train engineering and technical specialists for aircraft manufacturing enterprises. Students of the program actually begin to combine their studies with work at the enterprise from the first year. On the one hand, they receive salaries, additional financial support in addition to scholarships, on the other hand, students acquire skills and abilities at a specific enterprise where they will go to work in the future.
The Corporation also supports advanced engineering schools, the total amount of co-financing of which exceeded 350 million rubles. Together with colleges, Rostec strengthens the training of workers, participates in the Federal project "Professionalism". The number of future graduates of the set of 2022-23, studying at targeted programs in working professions and specialties in the interests of the Corporation, including within the framework of the "Professionalism" project, will amount to 4,000 people – these are highly qualified specialists who will come to work at the Corporation's enterprises.
In addition, production training centers are being created on the basis of the Corporation's organizations. In particular, in 2022, Ufa hosted the first graduation of students, including in the specialties of mechatronics, materials science, manufacture of electronic equipment, production assembly of aircraft, etc. In September 2023, together with 14 colleges, training of specialists will begin at the training center in Moscow. In the medium term, training centers are planned to be established in Perm, Rybinsk, Kazan and Samara and further in other cities where there are large Rostec enterprises.
