RUSNANO Makes Record Profit of RUB 5.6 bln in 2018 According to IFRS
RUSNANO Group disclosed its financial performance for 2018 according to the International Financial Reporting Standards (IFRS).
RUSNANO’s net profit reached RUB 5.6 bln in 2018. This positive financial result comes from the investment portfolio fair value increase by RUB 14.9 bln, which is 2 times higher than the same indicator in 2017. The largest contribution to the increase in the fair value was made by the “historical portfolio” projects: Hevel, Novomet, OCSiAl, and RusnanoMedInvest.
A significant positive impact on the financial result for the reporting period also comes from a reduction in the management costs of RUSNANO by more than 27%.
The investment portfolio proceeds in 2018 increased by 17% compared with the same indicator in 2017, and amounted to RUB 19 bln. Investment portfolio financing grew by 62% and amounted to RUB 17.5 bln, including RUB 12.2 bln of investment in new funds. Over the whole RUSNANO operation period, by the end of 2018, the investment yielded positive results: the amount of proceeds from projects and the fair value by the end of 2018 exceeded the total portfolio financing by 19.5 bln, 12.2 bln of which are accounted for by new funds.
Anatoly Chubais, Chairman of the Executive Board of RUSNANO Management Company: “Thanks to the efficient investment portfolio management and the operating costs reduction, RUSNANO obtained a record profit. In 2018, the company successfully withdrew from reference solar energy, nuclear medicine and microelectronics projects and that step demonstrates the financial and technological soundness of investment. Rate of return of transactions confirms that RUSNANO portfolio companies are able to generate competitive technologies both on the Russian and global markets.”
High level of expenses for external debt servicing continues influencing the financial result, such level being untypical of direct and venture capital investment funds. In 2018, RUB 24.2 bln were spent on debt servicing, including RUB 12.3 bln for the principal repayment. Debt liabilities in the amount of RUB 6.7 bln were repaid prior to maturity. For the whole period of activity, RUSNANO allocated RUB 188.8 bln for debt servicing, including its timely payment of interest to banks and bondholders in the amount of RUB 88.8 bln.
In the reporting period, the company reduced interest expenses on loans and borrowings by RUB 2.7 bln compared to 2017, including due to a decrease in the debt burden, interest rates and optimization of the loan portfolio allocation.
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 119 factories and R&D Centers opened in 38 regions in 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.