RUSNANO Demonstrates IFRS Profit for the Third Consecutive Year
RUSNANO Group, consisting of RUSNANO and consolidated subsidiaries (including MC RUSNANO LLC), announces financial performance indicators based on 2016 results in accordance with the International Financial Reporting Standards (IFRS).
In 2016, RUSNANO Group received a profit of 4.5 billion RUR.
The net income from RUSNANO financial assets by fair value amounted to 5.6 billion RUR in 2016.
The fair value of the investment portfolio was 140.6 billion RUR in 2016 compared to 140.4 billion RUR in 2015. At the historical cost assessment, a growth in the value of assets denominated in every currency amounted to 11.4 billion RUR, 11.3 million USD, and 1 million EUR respectively. In general, the investment portfolio profit without taking into account exchange rate differences was about 12.3 billion RUR.
In 2016, revenues from exits from investment projects equalled 17.8 billion RUR, which is more than 2.6 times more than the same indicator of 2015 (6.8 billion RUR). The largest and most successful exits include the sale of RUSNANO shares in such companies as Micron, Danaflex-Nano, DSK Grad, Uralplastic, and Nikomag. The average yield (IRR) of 11 exits sold in 2016 calculated to the value of the portfolio at the time of transfer of assets under the management of MC RUSNANO was about 11%. The average IRR for all exits for all the time is 14.9%.
In 2016, the fair value of the portfolio taking into account revenues from exits exceeded investments by 1.7 billion RUR.
The RUSNANO debt in 2016 was reduced by 16.4 billion RUR including early repayment of obligations for 2.6 billion RUR. In 2016, interest payments amounted to 15.8 billion RUR compared to 13.2 billion RUR paid in 2015. In general, for the entire period of its activity, RUSNANO allocated 63.7 billion RUR to service the debt as interest and coupon payments and more than 41 billion RUR to repay the principal.
As a result of 2016, the total amount of funds attracted from third-party investors in 4 new funds amounted to 20 billion RUR. In addition, in early 2017 the creation of two more new funds was approved, thanks to which attracted investments will equal 48 billion RUR. In accordance with RUSNANO’s long term development strategy, the amount of funds attracted to new funds will be 150 billion RUR in 2020.
Boris Podolsky, Deputy Chairman of the Management Board—Managing Director of MC RUSNANO, said, “RUSNANO reporting clearly demonstrates the process we have been talked about: the first investment cycle is coming to an end; we are exiting portfolio companies and are starting the second investment cycle. By 2017, we have exited 27 projects and in the upcoming years this trend will increase. Most exits from RUSNANO projects are planned for 2017-2019.”
RUSNANO Joint-Stock Company was founded in March 2011 through reorganization of state corporation Russian Corporation of Nanotechnologies. JSC RUSNANO contributes to implementation of the state policy on the development of the nanotechnology industry by investing directly and through investment funds of nanotechnology in financially effective high-technology projects providing the development of new production facilities in the Russian Federation. Its primary investment focus is in electronics, optoelectronics and telecommunications, healthcare and biotechnology, metallurgy and metalwork, energy, mechanical engineering and instrument making, construction and industrial materials, chemicals and petrochemicals. 100 percent of shares of JSC RUSNANO are owned by the state. Thanks to investments RUSNANO currently opened 84 factories and R&D centers in 30 regions of Russia.
Management of assets of RUSNANO JSC is carried out by Limited Liability Company established in December 2013, RUSNANO Management Company. Anatoly Chubais is the Chairman of its Executive Board.
Work to establish nanotechnology infrastructure and carry out educational programs is fulfilled by RUSNANO’s Fund for Infrastructure and Educational Programs, which was also established during the reorganization of the Russian Corporation of Nanotechnologies.