Subject: completion of plan arranged for 2014

JSC Electric Machine Building Works (hereinafter referred to as JSC RER) diligently works out development of new production offer and diversification of sales market of its production that allows reducing the currency risks of Russian Ruble. A number of contracts has been concluded with Tashkent and Baku metros. JSC RER maintains successful business relations with Polish and Slovenian cooperation partners as well; therefore, stable quantities of production supply have been provided. Successful completion of investment program started allows JSC RER to provide quality level required for the market therefore, cooperation with such partners as Deutsche Bahn, Hitachi etc. will be started.
In the frames of completion of the investment program for 2014 that is a part of three-year investment arrangements individual research has been started in cooperation with the Transport Machine Building Competence Centre. In the frames of the Competence Centre for 2014-2015a number of asynchronous traction electric motor systems of 400 KW- and 180 KW - output power as well as air conditioning system. The total arranged research budget is about EUR 3 mil. while ERAF support financing is about EUR 750 thousands.
Two projects have been commenced in “High value added investments” state support program, in project proposal calls three and four, respectively. The total amount of investment for both projects about which JSC RER already made announcements in 5 March 2014 and 17 July 2014 is 3,62 million EUR net of VAT or 3,94 million EUR, including VAT.
Based on signed sales agreements and in line with successful implementation of risk mitigation program in 2014, JSC RER forecasts profit for the year of no less than one million EUR, and expect sales growth in the nearest future.

Management Board