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Press Conference of Yury Slyusar, UAC President, at MAKS-2015 Airshow

26 August, 2015

Good afternoon, distinguished colleagues,

If you allow me, I will briefly tell you about the certain matters, and then I will be pleased to answer your questions.

As far as goals are concerned, we still have two focal areas and two major priorities – the military and the civil elements. And certainly UAC’s business is first and foremost associated with defense support and safety assurance. You will recall that 80% of our profit still falls on military programmes. At the same time, as to the goals specified in our strategy by the year 2025, the share of the civil element should be 50% of UAC’s profit. We are very grateful to the State, our principal shareholder and our major customer, for the support we have been given. You will recall that this is a large-scale State Defense Procurement in itself which has been growing over the last few years in a row. This also involves measures assumed to promote civil aeronautical engineering which include tackling the issue related to the debts of JSC “SCA”, a company that manufactures and promotes Sukhoi Superjet 100 aircrafts. And this also involves measures related to capital top-ups for state leasing companies which mean for us a possibility to sell our aircrafts to the air carriers that do not have sufficient financial strength and to propose to them a financial package enabling to balance the demand in the falling market.

As is customarily, UAC has the biggest showroom. At our exhibition stand of almost 2000 square meters we have tried to give a vivid and clear description of all the areas of activity and to present the UAC member firms. There are around 30 aircrafts are demonstrated at the static stand. The flight program: I believe that Prospective Airborne Complex of Front Line Aviation (PAK FA) will generate the biggest interest. T-50 aircraft takes part in the flight program; it will complete a flight in the triad. Su-34, Su-35, MiG-29, Be-200, Yak-130 etc will also be present. We tried to demonstrate, to the maximum extent possible, all the aircrafts we produce. Unfortunately, due to inability to settle differences with the aviation authorities we could not demonstrate the interior of SSJ100 belonging to Interjet, a Mexican company. Those who participate in the international exhibitions Farnborough or Le Bourget etc had a chance to have a look at the interior of this aircraft. I specifically wanted to show it because this is the most up-to-date, advanced, stylish interior not only out of the whole line of Russian civil aircrafts, but out of the line of international aircrafts as well. We will try to bring the aircraft to Russia. This is synchronized with purchasers expansion program and development of optional proposal of several types of interior, including the interior designed by Alenia Aermacchi in conjunction with Pininfarina which are currently only supplied to Mexican customers. We strongly hope that this solution will be appraised within Russia and overseas and we will find purchasers for the aircrafts with such design.

I will briefly list what has already been signed. Yesterday an agreement was signed between Joint-Stock Company “Sukhoi Civil Aircraft” (JSC “SCA”) and “State Transport Leasing Company” (GTLK). I’ve already told that, owing to state support measures we have acquired a contract for 32 Sukhoi Superjet 100 aircrafts. It additionally includes an option, and this option has been developed based on negotiations held by our colleagues from “State Transport Leasing Company” with the airline. An option for 28 more aircrafts was signed. Thus, we added 32 firm and 28 soft orders to our portfolio. The first aircrafts under the contract will be delivered to “Yamal” air carrier. This is all synchronized with the measures assumed to develop the operative leasing system which we have spoken a lot about, and in this regard it is those measures that subsidize these models by the State that work - I will not list them, we mentioned them a lot at our meetings dedicated to operative leasing development, including introduction of amendments to regulatory acts.

Just two hours ago we signed a cooperation agreement with Sberbank in the sphere of implementation of residual value guarantee mechanism. We created “UAC Capital” company. Partnership with Sberbank serves for us as a guarantee of further stability, reliability and presentability in the endeavours we take up in this regard to ma