RUSNANO’s Profits for 9 Months of 2018 Reached RUB 2 Bln

01 November 2018

According to the Russian Accounting Standards (RAS) RUSNANO registered a net profit in the amount of RUB 2 bln during the first three quarters of 2018. The turnover for the reporting period amounted to RUB 14.2 bln, while gross profit was RUB 5.5 bln.

RUSNANO’s positive financial results in the first 9 months of 2018 can be accounted for by the increasing income from the Company’s investment portfolio. RUSNANO’s investment activity, including selling equity stakes in RUSNANO portfolio companies and income distribution from foreign projects, brought in RUB 11.4 bln as compared to the earnings of RUB 9 bln during the same period of 2017.

According to financial statements, RUSNANO realized savings on main expense items. The Company’s aggregate operating expenses for the reporting period declined to RUB 3.1 bln, with a decrease in administrative expenses by more than 22%, to RUB 2.7 bln.

Expenses for servicing external debt remain high, which is uncharacteristic of direct and venture capital investment funds, and continue substantially influencing financial results. In this reporting period, RUB 20.5 bln were spent on debt servicing, which is RUB 2.4 bln higher than the amount spent in same period in 2017. Over the first three quarters of 2018, RUB 6.1 bln were repaid ahead of schedule.

According to the Executive Director of RUSNANO Management Company Boris Podolsky: “RUSNANO JSC demonstrated a 2 RUB bln profit for [the first] 9 months of the year; with earnings from selling stakes in its portfolio companies reaching RUB 11.4 bln. Combined proceeds in the reporting period exceeded the Company’s investments by RUB 2.1 bln. Our future efforts will be focused on reinforcing the results achieved as of the end of 2018 using increasing earnings from our investment activity.”

Additional information

Reference

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 RUSNANO’s shares are state owned. Thanks to RUSNANO’s investments, there are currently 97 factories and R&D Centers opened in 37 regions in Russia. JSC RUSNANO has profit for the last 4 years.

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.